Q4 & 2021 FY Results Key metrics for 2021 trended in the right direction..
Results of Operations
The following discussion of the Company’s financial performance is based on the financial statements for year ended September 30, 2021 compared to the year ended September 30, 2020
As at September 30, 2021 the Company had a cash and cash equivalents balance of $2,710,805 (September 30, 2020 - $303,241) and total current assets of $2,925,259 (September 30, 2020 - $449,411) (consisting of cash, sales tax and accounts receivable, inventory and prepaid expenses and deposits). During the period, long term assets increased to $2,327,348 due to the capitalization of a rights of use asset (related to the lease on the Company’s production facility), and costs related to the regulatory approvals, technology development costs, the registration of patents and other regulatory costs (included in intangible assets). Liabilities at September 30, 2021 totalled $722,079 (September 30, 2020 - $970,089) and comprised of $486,317 (September 30, 2020 - $889,460) of trade payables and accruals, a lease liability of $85,359 (September 30, 2020 - $nil) and loans payable of $150,403 (September 30, 2020 - $80,629).
Working capital (deficiency), which is comprised of current assets less current liabilities, was $2,360,434 at September 30, 2021 compared to working capital deficiency of $(440,049) at September 30, 2020.
For fiscal 2021, the Company had a net loss of $4,122,579 compared to a net loss of $6,715,391 in fiscal 2020. The decrease in loss is primarily related to the decrease of issuance of stock options during the year and the related share- based payment expense, and the decrease in investor and public relations programs compared to 2020.
Revenue and gross profit:
The company recognizes revenue to match the timing of the crop season for which its crop production system is used. The sales commenced at the end of December and increased due to an increase in customers and customer demand.
The company invoices and collects in USD since its customers are in the US. Sales are translated to CAD using the average exchange rate for the period. In USD terms, revenue increased by 47% for the year ended September 30, 2021 compared to the year ended September 30, 2020. The CAD was stronger vs the USD in 2021 compared to 2020, so reported revenue growth was slightly lower at 38%.
Overall gross margins for the fiscal 2021 were 41.7% which increased from 38.9% in 2020. Improvements in gross margin were driven by lower cost of production of BVT’s Clonostachys rosea strain BVT CR-7 through increased economies of scale from higher volumes, and a more favorable mix driven by the introduction of the honeybee system which has higher gross margins than the bumble bee system