CONSULTING FEES MENTIONED HERE !!Notice the whopping net loss of $94,940,970 CAD !!GLOBAL BLOCKCHAIN TECHNOLOGIES CORP. (formerly Carrus Capital Corporation) Management’s Discussion & Analysis For year ended April 30, 2018 Page 16 of 28 RESULTS OF OPERATIONS (continued) Year ended April 30, 2018 with comparatives to same period in the prior year: In August of 2017 the Company announced that they are exploring investment opportunities in a variety of technologies related to alternative emerging asset classes, specifically the blockchain and digital currencies. For the comparative period, the Company was rather inactive with a few non-material investments on its balance sheet. The previous period is therefore not indicative of the current period and therefore does not provide the reader with an appropriate benchmark to evaluate performance period over period. The Company recorded net loss of $94,940,970 for the year ended April 30, 2018 compared to a net loss of $772,866 for the corresponding period in 2017. Explanations of the nature of costs incurred, along with explanations for those changes in cost are discussed below: • Consulting Fees- The Company relies heavily on Consultants to help them achieve their goals on all facets of business. Consultants include Management, Advisors, Technical Support and other support roles. There were various investment opportunities and due diligence costs that required the use of consultants during the year ended April 30, 2018. • Corporate development expenditures- The Company incurred expenditures on Media, Public Relations and other forms of communication to create public awareness. This was a focus area as the Blockchain sector was relatively new to investors. The capital markets require patient guidance and resources to help the understanding and acceptance of a new emerging industry. Much of the Company's media relations, branding and investor relation activities are oriented to provide this education. • Investor Communications- Printing and news wire service. The Company also retained IRTH Communications, LLC (“IRTH”) to spearhead its shareholder communications and investor relations initiatives. IRTH is based in Santa Monica, California and is a provider of investor relations, financial marketing and strategic consulting services for highgrowth, small-cap companies. With IRTH’s expertise in navigating the finance world from a marketing and IR perspective, the Company and its shareholders look forward to the new opportunities that IRTH’s initiatives will generate. • Technology development - The Company incurs costs relating to technology development in the Blockchain space. These costs incurred in 2018 were due to costs related to the investigation of various technology and business opportunities. • Office, general and admin- expenditures on rent and administration. The increase is due to corporate travel to various Blockchain conferences and trips to view the Mozambique facility acquired during the year. • Professional fees- Legal and Accounting. • Transfer agent, regulatory and listing- All fees associated with transfer agent, TSXV and CSE fees. The Company was formerly listed on the TSXV and incurred fees for listing on the CSE • Payroll Expenses- Expenses relating to processing payments to employees • Share based payments (non-cash expenditure). The increase is mainly a result of the Company’s common shares issued to complete the acquisition of Coinstream. Also, the increase is a result of the approximately 43.5M options being granted to the Company’s directors, officers and consultants. The prior period had approximately 3M options granted. Other income / expenses • Mostly all non-cash except for interest income. • Most significant notable amount is the unrealized gain on investments. At each reporting to Investments are being revalued with the realized/unrealized gain or loss recorded through the statement of Operations and Comprehensive Loss. Refer to consolidated financial statements for detail. Management notes that over the past few months, the market capitalization of cryptocurrencies has fallen considerably. The total market capitalization on May 29, 2018 was just over US $330 billion. As of today, just one month later, that figure has sunk to US $234 billion. This decrease had an impact on the fair value of the Company’s investments. • The Company also recognized a $11.5M impairment on its equipment deposit. At the time the equipment was purchased, the value of Bitcoin was soaring and had high expectations for more rapid growth in 2018. There was a significant demand for the mining machines, which impacted the market price for these machines. As discussed above, with the decrease in valuation of cryptocurrency, the Company identified impairment indicators and as such the Company wrote down the equipment to its recoverable value.