KNR sedar filing available
Some highlights- OBVIOUSLY A WORK IN PROGRESS
The Company generated annual revenue of $1,886,222 and reported a net loss of $747,141. Management is pleased with the acceleration of revenues and given the significant expenses of completing the RTO the net loss was in line with expectations. The Listing expense of $183,847 was a significant contributor of the net loss for the year. Non-cash expenses comprised of the Listing expense, share based compensation and amortization totalled $438,242 for the year
Gross profit and expenses Gross profit for the year was $381,331, which is a margin of 20%. The gross margin will vary by service offering. Expenses are in line with management’s expectations and reflect costs incurred to complete the RTO, acquisition of Kontrol Technologies Inc. and purchase of EMS Technology assets. Total assets and liabilities As at December 31, 2016, the Company had total assets of $2,367,414. Cash, accounts receivable and intangible assets were the most significant dollar account balances. Non-current liabilities of $568,676 is comprised of debenture financing and a loan from shareholder.
Subsequent Events On February 10, 2017, the Company completed its acquisition of Ortech Consulting Inc. (“ORTECH”). ORTECH is a leading engineering consulting firm specializing in Green House Gas (GHG) reporting, air quality testing, emission testing and renewable energy/power consulting. ORTECH has a 20-year successful operating history and has a stable client base, including some of Canada’s largest integrated oil and gas companies. A material portion of ORTECH’s annual revenue is from multi-year recurring contracts. For the last fiscal year ending March 31, 2016 ORTECH reported audited gross revenues of $5.3 Million and normalized EBITDA of $940,000. During February 2017, the Company completed a private placement for gross proceeds of $570,300, by issuance of 950,500 common shares. During March 2017, the Company completed a private placement for gross proceeds of $555,000, by issuance of 792,857 common shares. During February, March and April 2017, the Company issued its fourth, fifth and sixth tranches of Debenture units for aggregate gross proceeds of $592,000. Per the terms of the debentures agreement, the Company issued an aggregate of 59,200 commons shares. During February 2017, the Company issued 83,334 common shares to the former shareholders of Kontrol Technologies Inc. to settle debt of $50,000. During March 2017, the Company issued 17,143 common shares to settle debt of $12,000. During March and April 2017, 300,000 warrants were exercised at $0.30 per common share for gross proceeds of $90,000.
