HPQ Silicon Inc V.HPQ

RE:RE:RE:Financials out

[Saint2709]

Saint2709 wrote:

developbc wrote:

Thanks SN for pointing that out but more often than not we need to look at the overall picture to ensure the financials are normalized.  In this case, apparently the current financials appear to show a massive increase whereas management was owed back pay for past fiscal year(s). Also options were included as income.  Therefore, in actuality  nothing to be alarmed.  Purevap looks strongly on its way to being scaled....this will be a viable business with disruptive tech that will have the industry in shock and awe imho.

 

All the best guys!!

 

stocknews101 wrote:

 

Salaries up 300 percent from 2015-2016

 

NET LOSS ANALYSIS

The increase of its Net Loss by $1,052,544 (248%) ($1,476,982 vs $424,438), comparatively to the same period in 2015, comes from an increase in the operational expenses of $997,154 (235 %) ($1,421,465 vs $424,311). This increase in operational costs is mainly related to salaries and employee benefits expense .

The increase in salaries and employee benefits expense of $912,142 (623%) ($1,058,506 vs $146,364) is manly related three areas: to the value of the Options granted to the Company Officers and Directors and is included in the Share-based payments account. This difference was $638,199 ($638,199 vs $0), Salaries and employee benefits expense $207,509 (or 288%) ($279,555 vs $72,046) as well as management fees $150,000 (or 400%) ($187,500 vs $37,500). These increases represent performance bonuses granted to management as well as options granted to Officers and Directors of the Company.

There was an increase in operating expenses of $88,384 (32 %) ($361,962 vs $273,578). This increase is due to a number of factors: professional fees of $68,898 (or 34%) ($268,792 vs $199,894), Investor Relations $10,077 ($10,077 vs $0). The increase in Professional Fees compared to the same period last year is due to work done for the research and marketing of Quartz and its derivatives as well as to increased legal fees. The increase in Investor Relations fees is made up of the value of share-based payments. All other expenses are similar to the same period last year.

In the section Other income and expenses increased by $51,578 ($43,996 vs -$7,612). This increase in due mainly to the difference between the Net Present Value of the Royalties to be Paid of $44,848 and the reduction in the Interest costs to pay on the outstanding Note. 

OVERALL PERFORMANCE

To date, in comparison to 2015, the Company has seen an increase in its Net Loss of $1,286,672 (98%) ($2,589,682 vs $1,303,010), while costs of operations went up by $1,234,422 (97 %) ($2,502,220 vs $1,267,798) while during the last three previous periods these costs averaged respectively $1,219,063 and $1,299,254.

DISCUSSION ON NET RESULTS

There was an increase in Net Loss of $1,286,672 (98%) ($2,589,682 vs $1,303,010), compared to 2015, while its costs of operations increased by $1,234,422 (97 %) ($2,502,220 vs $1,267,798). This is divided amongst Salaries and employee benefits expense $906,654 and other operating expenses $329,349.

The increase in Salaries and expenses is related to personnel Benefits of $906,654 (160%) ($1,472,786 vs $566,132). This increase is caused by the value of the options granted to Officers, Directors and Consultants for an amount of $638,199. During the period the Company granted 4,600,000 options compared to 3,600,000 options during 2015. The weighted adjusted value of the granted option is higher than for the same period last year. As the Company’s share price evolved rapidly in relation to the average of the previous years the volatility index used to calculate the value of the options has gone up similarly. This impacted directly the accounting value of the options. During the period the Board of Directors granted performance bonuses to the Officers of the Company in an amount of $350,000. The value of the Directors Tokens for the year totaled $70,500 and increase of $18,500 compared to the previous year. This amount was not paid during the year but appears as a Due to Directors, Officers and a corporation held by a Director.

There was an increase in other operating expenses of $329,349 (57%) ($1,026,396 vs $697,047) compared to 2015. This increase is directly due to an increase of $256,173 (50%) ($770,584 vs $514,411) in professional and consultation fees; an increase in Investor Relations fees of $24,754 ($24,754 vs $0); to an increase in travel expenses of $34,306 (85%) ($74,796 vs $40,490), an increase in Shareholder Information charges of $11,911 (24%) ($62,319 vs $50,408). The exceptional increase in professional and consultation fees is due to the development, research and marketing of quartz and its derivatives as well as to legal fees. The increase in Investor Relations costs of $24,754 is mainly made up of share-based payments of $16,354 issued in accordance with the service contract with Paradox Public Relations Inc.

The increase in traveling expenses is due to added travels in Quebec and Ontario as part of the efforts to raise Private Placement Financings. In early November 2016, the Company made a number of presentations in Europe with various players in the Silicon markets and a participation in the “International Metals and Commodities Show” in Munich, Germany. The increase of $11,911 (24%) ($62,319 vs $50,408) in shareholder information is due to an increase in the number of shareholders well as to a greater number of share certificates being issued as a result of the exercise of Options, Warrants and Broker’s Options.

In the section Other income and expenses, financial income increased by $34,345 ($87,979 vs $53,634). An amount of $10,000 came from the variation in the fair value of the marketable securities between its acquisition costs and the market value at the end of the period. As far as Financial costs the Company amortization change of the present value of the royalties payable for an amount of $44,848. During the period there was no gain on Debt Settlement compared to 2015. This represented an amount of $17,741.