Relevium Reports Fiscal Year Ended June 30, 2020 Results
January 20 2021 - 6:10AM
Relevium Technologies Inc. (TSX.V:“RLV”, OTCQB:“RLLVF” and
Frankfurt: “6BX”) (the “
Company”
or “
Relevium”), is pleased to
report the completion of the financial audit for the fiscal year
ended June 30, 2020.
The Company’s overall performance for the fiscal
year ended June 30, 2020 was influenced primarily by the impact of
the Covid-19 global pandemic starting in the third quarter, and
secondarily, by major changes to our spend and product mix, both
implemented during the second quarter of the reporting period.
Covid-19 had an initial impact on the Company in
the six months ended June 30, 2020 and the Company experienced a
significant decrease in revenues from all our major online
marketplaces totalling 18% as compared to the previous year.
The overall effect of the pandemic on the
Company’s actual and forecasted revenues led to the additional
expense of $3,221,513 relating to the impairment of intangibles and
goodwill for the period. The Company reported a net loss, inclusive
of impairments, of $6,931,628 ($3,726,942 net loss in 2019).
FINANCIAL HIGHLIGHTS FOR THE FISCAL YEAR
ENDED JUNE 30, 2020
- Total assets of $4,334,466 as of
June 30, 2020 (June 30, 2019: $8,560,452), a decrease of
$4,225,986, primarily driven by a write-down in goodwill of
$2,067,246, a write-down of amortizable licenses (under intangible
assets) of $1,154,267, a decrease in cash and cash equivalents of
$680,081 and a decrease in inventory of $432,929. This was
counterbalanced by increases in receivables of $217,588.
- Total liabilities on June 30, 2020
were $4,278,944 (June 30, 2019: $3,512,144), an increase of
$766,800. This is primarily due to increases of bank of advances of
$237,373, accounts payable and accrued liabilities of $819,579, a
loan from an officer of $74,954 and short-term debt of $1,880,614.
This was counterbalanced by decreases in loan payable of $154,525,
warrant liability of $117,715 and long-term debt of $1,973,480
- Shareholders’ equity was $55,522 on
June 30, 2020 (June 30, 2019: $5,048,308), a decrease of
$4,992,786. This is primarily due to an increase in the deficit of
$6,934,532. This was counterbalanced by an increase of share
capital of $694,176 and share purchase warrants of $1,651,490,
which occurred as a result of private placements closed during the
Reporting Period, as previously described.
- The Company reported $2,974,161 in
revenues (June 30, 2019: $3,628,60), representing a decrease of
$654,489 over revenues generated in the fiscal year ended June 30,
2019. In the latter half of the Company’s fiscal year, the COVID-19
pandemic had the effect of reducing online sales of the Company’s
products. In addition to the effect of the pandemic, the
competitive environment also became more intense at that time.
- Cost of goods sold were $1,780,006
or 59.8% as compared to revenues ($1,862,094 for 2019 or 51% as
compared to revenues). This resulted in a gross profit of
$1,194,155 for the fiscal year ended June 30, 2020 (June 30, 2019:
$1,766,556), representing a decrease of $572,401. Gross profit
accounted for 40% of sales in the year ended June 30, 2020 (June
30, 2019: 49%).
- Total expenses for fiscal year
ended June 30, 2020, not including non-cash impairments of goodwill
and intangibles, were $4,904,270 (June 30, 2019: $5,493,498).
- Total non-cash impairment of
$1,154,267 of intangibles and $2,067,246 in goodwill resulted in
total expenses for the reporting period of $8,125,783, an increase
of $2,632,285.
- Most of the expense categories had
decreases, including particularly administration fees (decrease of
$309,113), general and administrative expenses (decrease of
$243,642), professional fees (decrease of $57,633) and selling and
marketing expenses (decrease of $383,697).
- The net comprehensive loss for the
year ended June 30, 2020 was $6,934,532 (June 30, 2019: loss of
$3,750,536), a difference of $3,183,996.
FINANCIAL HIGHLIGHTS FOR THE FOURTH
QUARTER ENDED JUNE 30, 2020
- Revenues in the fourth quarter of
fiscal year 2020 were $302,486 (Fourth quarter of 2019: $598,631),
a decrease of $296,145.
- The net loss and comprehensive loss
for the three-month period ended June 30, 2020 was $5,693,210 (June
30, 2019: $1,136,950), an increase of $4,556,260 primarily due to
two write-downs of goodwill and intangible assets, as described
above, which increased significantly the net loss and comprehensive
loss for this quarter.
- In order to comply with changes in
accounting standards from IFRS 15, the Company restated its 2019
results, with the result being a decrease of $424,967 in both
revenues and selling and marketing expenses; this amount was
charged against Q4 2019 results. Similar adjustments for the
Reporting Period ending June 30, 2020 were also recorded in Q4
2020, which had the effect of reducing revenues in that
quarter.
OUTLOOK
The most significant challenge for the Company,
in terms of its ability to execute on strategy, is its ability to
secure financing and to navigate the ongoing challenges, as well as
opportunities, posed by the current global pandemic.
The Company remains focused on existing
opportunities in the Personal Protective Equipment
(“PPE”) market as well as its proprietary disinfectant
line.
About Relevium
TechnologiesRelevium is a publicly traded Company that
operates in the health and wellness industry, including legal
cannabis, with a primary focus on online distribution. The
principal business of the Company is the identification,
evaluation, acquisition and operation of brands and businesses in
the health and wellness markets and medical cannabis. The Company
pursues its business strategy through an acquisition and
partnership model in a holistic approach to encompass a wide range
of health and wellness consumer products. Relevium operates through
two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando,
Florida, markets dietary supplements, nutraceuticals, sports
nutrition and cosmeceuticals primarily through its Bioganix® brand
portfolio in the US and Europe. Relevium’s premium brands are sold
at some of the world’s largest retailers including Walmart.com and
Amazon.com.
Biocannabix Health Corporation (BCX), based in
Montreal, Quebec, is a biopharma nutraceutical Company focused on
delivering pediatric endo-medicinal nutraceuticals for cannabinoid
therapy.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
StatementsThis release includes certain statements and
information that may constitute forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts,
including statements regarding future estimates, plans, objectives,
assumptions or expectations of future performance, including the
timing and completion of the proposed acquisitions, are
forward-looking statements and contain forward-looking information.
Generally, forward- looking statements and information can be
identified by the use of forward-looking terminology such as
"intends" or "anticipates", or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "should", "would" or "occur". Forward-looking statements
are based on certain material assumptions and analysis made by the
Company and the opinions and estimates of management as of the date
of this press release, including the assumptions that the Company
will be able to apply for and ultimately obtain an ACMPR licence,
the proposed business of Biocannabix will develop as anticipated,
that the Company will raise sufficient funds to develop the
Biocannabix business, and that the Company will obtain all
requisite regulatory approvals. These forward-looking statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
statements or forward-looking information. Important factors that
may cause actual results to vary, include, without limitation, the
risk that the proposed business developments may not occur as
planned; the timing and receipt of requisite approvals and failure
to raise sufficient funds.
Although management of the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward- looking
statements and forward-looking information. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any
forward-looking statement, forward-looking information or financial
outlook that are incorporated by reference herein, except in
accordance with applicable securities laws. We seek safe
harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES
INC.
Aurelio UsechePresident and CEO
For more information about this press release: Tel:
+1.888.528.8687
RELEVIUM TECHNOLOGIES INCEmail:
investors@releviumcorp.comWebsite: www.releviumtechnologies.comLike
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