Nine months ended June 30, 2017 compared with nine months ended June 30, 2016
The Company incurred a net loss of $3,953,413 during the period ended June 30, 2017 an increase of $2,372,871 when compared with the loss of $1,580,542 for the period ended June 30, 2016. The increase in net loss is primarily the result of the change in the followings expenses during the period ended June 30,2017:
• Accounting and audit fees increased from $20,000 to $88,904 for the period ended June 30, 2017. This increase is
primarily due to a focus on cost containment and efficiency as well as establishing the in-house accounting.
• Advertising expenses decreased to $38,061 for the period ended June 30, 2017, from $69,094 for the period ended June 30,2016.Thisdecreaseisprimarilyduetoafocusoncost containment andefficiency.
• Legal fees increased to $93,362 for the period ended June 30, 2017, from $49,549 for the period ended June 30, 2016. This increase is primarily due to higher legal fees incurred in respect of the acquisitions, issuance of stock options and share issuances during the period ended June 30, 2017.
• Management and consulting fees increased to $2,795,925 for the period ended June 30, 2017 from $893,407 for the period ended June 30, 2016. The increase was primarily a result of different fees charged to consultants for new business ventures as well as payments made on management changes.
• Office and general administration fees decreased to $375,809 for the period ended June 30,2017,from $341,453 for the period ended June 30, 2016. This decrease is primarily due to lesser corporate activity in the Company’s subsidiaries duringtheperiod.
•Regulatoryandtransferagentfeesincreasedto$47,811fortheperiodendedJune30,2017,from$39,375fortheperiod ended June 30, 2016. This increase is primarily due to expenses related to the Annual General Meeting and postponement thereof.
• Research costs decreased to $20,658 for the period ended June 30, 2017, from $34,647 for the period ended June 30, 2016. This decrease is primarily attributed to the Company’s focus on due diligence relating to the acquisition of the technology distribution agreement for extraction machines.
• Share based payment increased to $540,017 for the period ended June 30,2017,from $4,886 fort heperiod ended June 30, 2016. This increase is due to an increase in personnel and the wish to conserve cash for business development purposes during the period ended June 30,2017.
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Key management personnel compensation During the periods ended June 30, 2017 and 2016, compensation to key management personnel and related parties were as follows:
June 30, 2017 June 30, 2016 Remuneration, fees and short-term benefits 0$
Management and consulting fees (1) 1,769,685 (2017)
277,951 (2016)
(1)Includes directors’ bonus paid by issuance of 5,500,000 shares with an aggregate fair value of $934,063.
Source: www.sedar.com / abattis - Management Discussion and Analysis For the nine months ended June 30, 2017
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