FINGERMOTION, INC. The terms the "Registrant", "we", "us", "our", "FingerMotion" and the "Company"
mean
Cautionary Note Regarding Forward-Looking Statements
The following management's discussion and analysis of the Company's financial condition and results of operations (the "MD&A") contains forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations. In evaluating these statements, you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to theSEC and, including, without limitation, this Quarterly Report on Form 10-Q for the nine months endedNovember 30, 2020 , and our Annual Report on Form 10-K for the fiscal year endedFebruary 29, 2020 , including the consolidated financial statements and related notes contained therein. These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking statement made in this document. Refer to "Cautionary Note Regarding Forward-looking Statements" as disclosed in our Annual Report on Form 10-K for the fiscal year endedFebruary 29, 2020 , and Item 1A, Risk Factors, under Part II - Other Information of this Quarterly Report. Introduction This MD&A is focused on material changes in our financial condition fromFebruary 29, 2020 , our most recently completed year end, toNovember 30, 2020 , and our results of operations for the three and nine months endedNovember 30, 2020 , and should be read in conjunction with Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations as contained in our Annual Report on Form 10-K for the fiscal year endedFebruary 29, 2020 . Corporate Information
The Company was initially incorporated as
OnJune 21, 2017 , the Company amended its certificate of incorporation to effect a 1-for-4 reverse stock split of the Company's outstanding common stock, to increase the authorized shares of common stock to 200,000,000 shares and to change the name of the Company from "Property Management Corporation of America " to "FingerMotion, Inc. " (the "Corporate Actions"). The Corporate Actions and the amended certificate of incorporation became effective onJune 21, 2017 . EffectiveJuly 13, 2017 , the Company entered into that certain Share Exchange Agreement (the "Share Exchange Agreement") by and among the Company,Finger Motion Company Limited , aHong Kong corporation ("FMCL") and certain shareholders of FMCL (the "FMCL Shareholders"). Pursuant to the Share Exchange Agreement, the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. On the closing date of the Share Exchange Agreement, the Company issued 12,000,000 shares of common stock to the FMCL shareholders. In addition, the Company issued 600,000 shares to consultants in connection with the transactions contemplated by the Share Exchange Agreement, and 2,562,500 additional shares to accredited investors, which was a concurrent financing but not a condition of closing
the
Share Exchange Agreement.
-23-
Table of Contents
As a result of the Share Exchange Agreement and the other transactions
contemplated thereunder, FMCL became a wholly owned subsidiary of the Company.
FMCL, a Hong Kong corporation, was formed on April 6, 2016 and is an information
technology company that specializes in operating and publishing mobile games. We
operate our video game division through FMCL.
On October 16, 2018 , the Company, through its indirect wholly owned subsidiary,
Shanghai JiuGe Business Management Co., Ltd. ("JiuGe Management"), entered into
a series of agreements known as variable interest agreements (the "VIE
Agreements") pursuant to which Shanghai JiuGe Information Technology Co., Ltd.
("JiuGe Technology") became our contractually controlled affiliate. The use of
VIE agreements is a common structure used to acquire PRC corporations,
particularly in certain industries in which foreign investment is restricted or
forbidden by the PRC government. The VIE Agreements include a Consulting
Services Agreement, a Loan Agreement, a Power of Attorney Agreement, a Call
Option Agreement, and a Share Pledge Agreement in order to secure the connection
and commitments of the JiuGe Technology. We operate our mobile payment platform
business through JiuGe Technology.
Intercorporate Relationships
The following is a list of all of our subsidiaries and the corresponding date of
jurisdiction of incorporation or organization and the ownership interest of
each. All of our subsidiaries are directly or indirectly owned or controlled by
us:
Name of Entity Place of Ownership
Incorporation/Formation Interest
Finger Motion Company Limited(1) Hong Kong 100%
Finger Motion (CN) Global Limited (2)Samoa
100%
Finger Motion (CN) Limited (3)Hong Kong
100%
Finger Motion Financial Group Limited (4)Samoa
100%
Finger Motion Financial Company Limited (5)Hong Kong
100%
Shanghai JiuGe Business Management Co. , PRC
100%
Ltd.(6)
Shanghai JiuGe Information Technology Co. , PRC
Contractually
Ltd.(7) controlled (7)Beijing XunLian TianXia Technology Co. , PRC
99%
Ltd.(8)
Suzhou BuGuNiao Digital Technology Co., PRC 99% Ltd.(9) Notes:
(1)
Inc.
(2)
(3)
Global Limited.
(4)
(5)
(6)
(7)
that is contractually controlled by
Ltd.
(8)
(9)
Shanghai JiuGe Information Technology Co., Ltd. Overview We operate three principal lines of business, a video game division, a mobile payment platform and a mass SMS text message service. We operate our video
game
platform through FMCL.
-24-
Table of Contents
The video game industry covers multiple sectors and is currently experiencing a
move away from physical games towards digital software. Advances in technology
and streaming now allow users to download games rather than visiting retailers.
Video game publishers are expanding their direct-to-consumer channels, with
mobile gaming current growth leader, and eSports and virtual reality gaining
momentum as the next big sectors. This is the business focus for FMCL.
In June 2018 , FMCL temporarily paused its publishing and operating plans for
existing games and other projects. The Company's board of directors decided to
re-focus the Company's resources into the new business opportunities in China ,
particularly the mobile data business.
We conduct our mobile payment and recharge business through JiuGe Technology, our contractually controlled affiliate.
In the first half of 2018, JiuGe Technology secured contracts with China United
Network Communications Group Co., Ltd. ("China Unicom ") and China Mobile
Communications Corporation ("China Mobile") to distribute mobile data for
businesses and corporations in nine provinces/municipalities, namely Chengdu ,
Jiangxi , Jiangsu , Chongqing , Shanghai , Zhuhai, Zhejiang , Shaanxi and Inner
Mongolia . In September 2018 , JiuGe Technology launched and commercialized mobile
payment and recharge services to businesses for China Unicom. The JiuGe
Technology mobile payment and recharge platform enables the seamless delivery of
real-time payment and recharge services to third-party channels and businesses.
We earn a rebate from each telecommunications company on the funds paid by
consumers to the telecommunications companies we process. To encourage consumers
to utilize our portal instead of using our competitors' platforms or paying
China Unicom or China Mobile directly, we offer mobile data and talk time at a
rate discounted from these companies' stated rates, which are also the rates we
must pay to them to purchase the mobile data and talk time provided to consumers
through the use of our platform. Accordingly, we earn income on the rebates we
receive from China Unicom and China Mobile, reduced by the amounts by which we
discount the mobile data and talk time sold through our platform.
Recent Developments
InMarch 2019 , JiuGe Technology acquiredBeijing XunLian TianXia Technology Co., Ltd. ("Beijing Technology") and, through Beijing Technology, entered into the business of mass SMS text message service as a compliment to its mobile payment and recharge business. The mass SMS text message service offers bulk SMS services to end consumers with competitive pricing. Currently, our SMS integrated platform is scalable to process more than 150 million SMS text messages per month. Beijing Technology retains a license from theMinistry of Industry and Information Technology to operate SMS and MMS business in the PRC. Similar to the mobile payment and recharge business, Beijing Technology is required to make a deposit or bulk purchase in advance and has secured business customers that will utilize Beijing Technology's SMS integrated platform to send bulk SMS text messages monthly. Beijing Technology has the capability to manage and track the entire process, including obtaining government approval, until the SMS messages have been delivered successfully. InJuly 2019 , JiuGe Technology entered into that certainYunnan Unicom Electronic Sales Platform Construction and Operation Cooperation Agreement (the "Cooperation Agreement") with China Unicom'sYunnan subsidiary. Under the Cooperation Agreement, JiuGe Technology is responsible for constructing and operating China Unicom's electronic sales platform through which consumers can purchase various goods and services from China Unicom, including mobile telephones, mobile telephone service, broadband data services, terminals, "smart" devices and related financial insurance. The Cooperation Agreement provides that JiuGe Technology is required to construct and operate the platform's webpage in accordance with China Unicom's specifications and policies, and applicable law, and bear all expenses in connection therewith. As consideration for the services it provides under the Cooperation Agreement, JiuGe Technology receives a percentage of the revenue received from all sales it processes for China Unicom on the platform. The Cooperation Agreement expires three years from the date of its signature, but it may be terminated by (i) JiuGe Technology upon three months' written notice or (ii) by China Unicom
unilaterally.
-25-
Table of Contents
Results of Operations
Three Months Ended
The following table sets forth our results of operations for the periods
indicated:
For the Three Months Ended
November 30, 2020 November 30, 2019
Revenue $ 4,881,601 $ 2,692,734
Cost of revenue $ (4,261,058 ) $ (2,255,274 )
Total operating expenses $ (1,301,974 ) $ (1,002,230 ) Total other income (expenses) $ (24,215 ) $ 68,077 Net Loss attributable to the Company's shareholders $ (708,153 ) $ (496,693 ) Foreign currency translation adjustment $ 94,707 $ 18,003 Comprehensive loss attributable to the Company $ (613,761 ) $ (478,690 ) Basic Loss Per Share attributable to the Company $ (0.02 ) $ (0.02 ) Diluted Loss Per Share attributable to the Company $ (0.02 )
$ (0.02 ) Revenue
The following table sets forth the Company's revenue from its different lines of businesses for the periods indicated:
For the Three Months Ended Change
November 30, 2020 November 30, 2019 (%)Telecommunication Products & Services $ 482,575
261,748 84 % SMS & MMS Business$ 4,399,026 2,430,985 81 % Total Revenue$ 4,881,601 2,692,733 81 % We recorded$4,881,601 in revenue for the three months period endedNovember 30, 2020 , an increase of$2,188,868 or 81%, compared to the three months period endedNovember 30, 2019 . This increase resulted from an increase in revenue of$220,827 and$1,968,040 from our Telecommunication Products & Services and SMS & MMS businesses, respectively. The SMS & MMS business have improved and will continue to provide the solid revenue stream for the Company in the future. The Company acquired the SMS & MMS business inApril 2019 and have since contributed to the total revenue. As for the Telecommunication Products & Services, we earn revenue by providing mobile payment and recharge services to customers of telecommunications companies inChina . Specifically, we earn a negotiated rebate amount from the telecommunications companies for all monies paid by consumers to those companies that we process. As we continue to develop our mobile payment business, we expect that revenues will continue to grow. Cost of Revenue The following table sets forth the Company's cost of revenue for the periods indicated: For the Three Months Ended November 30, 2020 November 30, 2019 Telecommunication Products & Services $ 159,592 $ 182,653 SMS & MMS Business$ 4,101,466 $ 2,072,620 Total Cost of Revenue$ 4,261,058 $ 2,255,273 -26- Table of Contents We recorded$4,261,058 in costs of revenue for the three months period endedNovember 30, 2020 , an increase of$2,005,785 or 89%, compared to the three months period endedNovember 30, 2019 . As previously mentioned, we principally earn revenue by providing mobile payment and recharge services to customers of telecommunications companies inChina . To earn this revenue, we incur certain customer acquisition costs, including discounts to our customers and promotional expenses, which is reflected in our cost of revenue. Gross profit (loss)
Our gross profit for the three months period ended
Amortization & Depreciation We recorded depreciation of$45,734 for fixed assets for the three months period endedNovember 30, 2020 , an increase of$33,879 or 286%, compared to the three months period endedNovember 30, 2019 . This increase resulted in purchase of equipment and investment in platforms.
General & Administrative Expenses
The following table sets forth the Company's general and administrative expenses for the periods indicated:
For the Three Months Ended
November 30, 2020 November 30, 2019
Accounting $ 15,650 $ 14,219
Consulting $ 304,277 $ 280,323
Entertainment $ 37,602 $ 60,927
IT $ 16,826 $ -
Rent $ 14,320 $ 18,775
Salaries and Wages $ 338,156 $ 270,667
Technical Fee $ - $ -
Others $ 66,719 $ 21,038
Total G&A Expenses $ 793,550 $ 665,949
We recorded $793,550 in general and administrative expenses for the three months
period ended November 30, 2020 , an increase of $127,601 or 19%, compared to the
three months period ended November 30, 2019 . The increase of consulting, and
staff salaries are principally the result of the building of our mobile payment
and SMS businesses.
Marketing Cost
The following table sets forth the Company's marketing cost for the periods
indicated:
For the Three Months Ended
November 30, 2020 November 30, 2019
Marketing Cost $ 136,960 $ -
We incurred fees of
-27-
Table of Contents
Research & Development
The following table sets forth the Company's research & development for the
periods indicated:
For the Three Months Ended
November 30, 2020 November 30, 2019 Research & Development - Big Data $ 124,723 $ 96,627
We incurred fees of
The Insurtech division of the Company that focuses on consumer behavioral insights extraction for the purpose of risk assessment. Insights are derived from various data sources with the primary sources being the telecommunication data. The initial phase of business application is to focus on insurance industry particularly in the area of underwriting risk rating, complementary claims adjudication and assessment, and risk segmentation & market penetration.
This division comprises of experienced actuaries, data scientists and computer programmers.
The expenses for research & development include associated wages and salaries, data access fees and IT infrastructure.
The 1st stage of prototyping on Phase 1 - analytical framework and business applications have been completed and target to commercialize by mid of 2021.
Share Compensation Expenses
The following table sets forth the Company's share compensation expenses for the
periods indicated:
For the Three Months Ended
November 30, 2020 November 30, 2019 Share compensation expenses $ 201,007 $ 227,799 We incurred fees of$201,007 in share issuance for consultants in consideration of the services which have been provided to the company for the three months period endedNovember 30, 2020 as compared to$227,799 for the three months period endedNovember 30, 2019 . Operating Expenses We recorded$1,301,974 in operating expenses for the three months period endedNovember 30, 2020 , as compared to$1,002,230 in operating expenses for the three months period endedNovember 30, 2019 . The increase of$299,744 or 30%, for the three months period endedNovember 30, 2020 is as set forth above. Net Loss from Operations As a result of the foregoing, our net loss from operations for the three month period endedNovember 30, 2020 was$681,431 , an increase of$116,661 or 21%, compared to the three month period endedNovember 30, 2019 . -28- Table of Contents
Nine Months Ended
The following table sets forth our results of operations for the periods
indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019
Revenue $ 11,245,589 $ 5,665,479
Cost of revenue $ (10,072,216 ) $ (4,939,664 )
Total operating expenses $ (3,324,717 ) $ (3,080,900 ) Total other income (expenses) $ (93,069 ) $ 79,217 Net Loss attributable to the Company's shareholders$ (2,247,253 ) $ (2,275,868 ) Foreign currency translation adjustment $ 106,446 $ 22,737 Comprehensive loss attributable to the Company$ (2,141,218 ) $ (2,253,131 ) Basic Loss Per Share attributable to the Company $ (0.07 ) $ (0.09 ) Diluted Loss Per Share attributable to the Company $ (0.07 ) $ (0.09 ) -29- Table of Contents Revenue
The following table sets forth the Company's revenue from its different lines of businesses for the periods indicated:
For the Nine Months Ended Change
November 30, 2020 November 30, 2019 (%)Telecommunication Products & Services$ 1,583,461
1,754,793 (10 %) SMS & MMS Business$ 9,662,128 3,910,686 147 % Total Revenue$ 11,245,589 5,665,479 98 % We recorded$11,245,589 in revenue for the nine months period endedNovember 30, 2020 , an increase of 5,580,011 or 98%, compared to the nine months period endedNovember 30, 2019 . This increase resulted from an increase in revenue of$5,751,442 from our SMS & MMS business, offset in part by a decrease of$171,332 from our Telecommunication Products & Services business. The SMS & MMS business have improved and will continue to provide the solid revenue stream for the Company in the future. The Company acquired the SMS & MMS business inApril 2019 and have since contributed to the total revenue. As for the Telecommunication Products & Services, we earn revenue by providing mobile payment and recharge services to customers of telecommunications companies inChina . Specifically, we earn a negotiated rebate amount from the telecommunications companies for all monies paid by consumers to those companies that we process. As we continue to develop our mobile payment business, we expect that revenues will continue
to
grow.
Cost of Revenue
The following table sets forth the Company's cost of revenue for the periods
indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019
Telecommunication Products & Services $ 928,451 $ 1,513,799
SMS & MMS Business $ 9,143,765 $ 3,425,865
Total Cost of Revenue $ 10,072,216 $ 4,939,664
We recorded $10,072,216 in costs of revenue for the nine months period ended
November 30, 2020 , an increase of $5,132,552 or 104%, compared to the nine
months period ended November 30, 2019 . As previously mentioned, we principally
earn revenue by providing mobile payment and recharge services to customers of
telecommunications companies in China . To earn this revenue, we incur certain
customer acquisition costs, including discounts to our customers and promotional
expenses, which is reflected in our cost of revenue.
Gross profit (loss)
Our gross profit for the nine months period ended
Amortization & Depreciation We recorded depreciation of$53,351 for fixed assets for the nine months period endedNovember 30, 2020 , an increase of$19,151 or 56%, compared to the nine months period endedNovember 30, 2019 . This increase resulted in purchase of equipment and investment in platforms. -30- Table of Contents
General & Administrative Expenses
The following table sets forth the Company's general and administrative expenses for the periods indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019
Accounting $ 41,995 $ 115,368
Consulting $ 844,805 $ 702,951
Entertainment $ 98,264 $ 193,516
IT $ 62,408 $ -
Rent $ 86,431 $ 58,209
Salaries and Wages $ 982,735 $ 587,990
Technical Fee $ 25,197 $ -
Others $ 236,731 $ 218,764
Total G&A Expenses $ 2,378,566 $ 1,876,798 We recorded$2,378,566 in general and administrative expenses for the nine months period endedNovember 30, 2020 , an increase of$501,768 or 27%, compared to the nine months period endedNovember 30, 2019 . The increase of consulting, and staff salaries are principally the result of the building of our mobile
payment and SMS businesses.
Marketing Cost
The following table sets forth the Company's marketing cost for the periods
indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019
Marketing Cost $ 268,216 $ -
We incurred fees of
Research & Development
The following table sets forth the Company's research & development for the
periods indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019 Research & Development - Big Data $ 351,867 $ 280,615
We incurred fees of$351,867 in research & development for the nine months period endedNovember 30, 2020 as compared to$280 ,615for the nine months period endedNovember 30, 2019 . The increase of$71,252 or 25% was due to increase in headcount for the Research & Development team and higher data access and usage fee charged by the telecommunications company The Insurtech division of Finger Motion that focus on consumer behavioral insights extraction for the purpose of risk assessment. Insights are derived from various data sources with the primary sources being the telecommunication data. The initial phase of business application is to focus on insurance industry particularly in the area of underwriting risk rating, complementary claims adjudication and assessment, and risk segmentation & market penetration. -31- Table of Contents
This division comprises of experienced actuaries, data scientists and computer programmers.
The expenses for research & development include associated wages and salaries, data access fees and IT infrastructure.
The 1st stage of prototyping on Phase 1 - analytical framework and business applications have been completed and target to commercialize by mid of 2021.
Share Compensation Expenses
The following table sets forth the Company's share compensation expenses for the
periods indicated:
For the Nine Months Ended
November 30, 2020 November 30, 2019 Share compensation expenses $ 272,717 $ 889,287
We incurred fees of
Operating Expenses We recorded$3,324,717 in operating expenses for the nine months period endedNovember 30, 2020 , as compared to$3,080,900 in operating expenses for the nine months period endedNovember 30, 2019 . The increase of$243,817 or 8%, for the nine months period endedNovember 30, 2020 is as set forth above. Net Loss from Operations
As a result of the foregoing, our net loss for the nine month period ended
Liquidity and Capital Resources
AtNovember 30, 2020 , we had cash and cash equivalents of$989,103 as compared to cash and cash equivalents of$102,919 atFebruary 29, 2020 . In order for us to continue to operate our mobile payment business, we must deposit funds with our telecommunication companies from time to time in order to obtain access to the mobile data and talk-time we make available to consumers on our portal. Accordingly, the amount of cash we have on hand fluctuates significantly from period to period. The Company otherwise does not have any planned capital expenditures and has historically funded its operations from revenues and sales of securities, including convertible debt securities. We believe that our cash on hand, cash equivalents and short-term investments, along with our revenues from operations, will fund our projected operating requirements, fund our current operations and repay our outstanding indebtedness, in each case, for at least the next 12 months. However, to grow our business substantially, we will need to increase the amount of funds we have deposited with the telecommunications companies for which we process mobile recharge payments. Accordingly, we expect to seek additional capital through public or private sales of our equity or debt securities, or both. We might also enter into financing arrangements with commercial banks or nontraditional lenders. We cannot provide investors with any assurance that we will be able to raise additional funding from the sale of our equity or debt securities, or both, in order to increase our deposits with our telecommunications company clients, or if available, that such funding will be on terms acceptable to us. -32- Table of Contents During the nine month period endedNovember 30, 2020 , we raised 1,361,000 from the sale of shares of our common stock in private placement transactions exempt from the registration requirements of the Securities Act of 1933, which included common stock purchase warrants as part of some of the private placement offerings. In addition, we raised$1,654,207 from the loans to the Company during the nine month period endedNovember 30, 2020 . In addition, during the nine month period endedNovember 30, 2020 , we received$1,345,999.50 from subscriptions for the purchase of 897,333 units (each, a "Unit") of the Company at a price of$1.50 per Unit from 17 individuals and 4 entities, which securities have not been issued as ofNovember 30, 2020 . Each Unit consists of one share of common stock and one common stock purchase warrant (each, a "Warrant") with each Warrant entitling the holder thereof to purchase one additional share of common stock (each, a "Warrant Share") at an exercise price of$3.00 per Warrant Share having an expiry date of two years form the date of issuance of the Warrants. Furthermore, during the nine month period endedNovember 30, 2020 , we received$880,000 from subscriptions for the purchase of 440,000 shares of our common stock at a price of$2.00 per share from 12 individuals, which securities have not been issued as ofNovember 30, 2020 . Statement of Cashflows The following table provides a summary of cash flows for the periods presented: For the Nine Months EndedNovember 30, 2020 November 30, 2019
Net cash used in operating activities$ (4,133,370 ) $ (1,581,076 ) Net cash used in investing activities $ (320,629 ) $ (16,291 ) Net cash provided by financing activities$ 5,226,207 $ 910,729 Effect of exchange rates on cash & cash equivalents $ 113,976 $ (7,261 ) Net (decrease) increase in cash and cash equivalents $ 886,184 $ (693,899 )
Cash Flow used in Operating Activities
Net cash used in operating activities increased by$2,552,294 in the nine months endedNovember 30, 2020 compared to the nine months endedNovember 30, 2019 , primarily due to increase in accounts payable of$386,507 (November 30, 2019 :$1,342,326 ), decrease in prepayment and deposit of$814,310 (November 30, 2019 : ($821,236)) offset by an increase in accounts receivable of ($1,382,141 ) (November 30, 2019 : ($1,461,642)) , increase in other receivable of ($1,278,777 ) (November 30, 2019 : ($359,441)) , increase in inventories of ($1,380 ) (November 30, 2019 : $Nil), decrease in accrual and other payable of ($66,702 ) (November 30, 2019 :$1,808,777 ), decrease in due to related parties of ($687,515 ) (November 30, 2019 : ($674,584)) and decrease in lease liability of ($17,797 ) (November 30, 2019 :$322 ).
Cash Flow used in Investing Activities
During the nine months period ended
Cash Flow provided by Financing Activities
During the nine months period endedNovember 30, 2020 , financing activities increased by$4,315,478 compared to the nine months period endedNovember 30, 2019 , primarily due to loan from non-controlling stockholder and proceeds from issuance of shares of our common stock. -33- Table of Contents Trends and Uncertainties
The impact of Coronavirus (COVID-19)
The Company has analyzed its operations and has found that the impact of COVID-19 on the Company is minimal. As the PRC has been reopening with more businesses and the enforcing on strict controls by the PRC Government on the containment of the spread of this virus since March, the Company's business is expected to continually improve for the fiscal year 2021. However, there will be a possibility that the outbreak may worsen at a later point in time where it may impact the growth of the business, all of which are uncertain and cannot be predicted at this point.
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors. Subsequent Events OnJanuary 13, 2021 , we issued 1,604,334 units (each, a "Unit") to 28 individuals and five entities due to the closing of our private placement at$1.50 per Unit for gross proceeds of$2,406,501 . Each Unit consists of one share of our common stock and one common stock purchase warrant (each, a "Warrant") with each Warrant entitling the holder thereof to purchase one additional share of our common stock (each, a "Warrant Share") at an exercise price of$3.00 per Warrant Share having an expiry date of two years from the date of issuance
of the Warrants.
On
On
On
On
Critical Accounting Policies
For a complete summary of all of our significant accounting policies refer to
Note 2: Summary of Principal Accounting Policies of the Notes to the
Consolidated Financial Statements as presented under Item 8, Financial
Statements and Supplementary Data in our Annual Report on Form 10-K for our
fiscal year ended
Refer to "Critical Accounting Policies" under Item 7, Management's Discussion
and Analysis of Financial Condition and Results of Operations in our Annual
Report on Form 10-K for our fiscal year ended
Recently Issued Accounting Pronouncements
The Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.
-34-
Table of Contents© Edgar Online, source
