RE:Financials and MD&A are on SedarFor the Year Ended December 31, 2017
Net loss for the year ended December 31, 2017 was $1,452,328 (2016 - $696,340), comprised of the following significant items:
• Revenue of $128,375 (2016 - $105,438); increased due to the addition of cryptocurrency mining activities.
• Depreciation of $17,000 (2016 - $3,589); increased due to additional equipment acquired (Note 6).
• Development expenses of $530,743 (2016 - $18,457); increased due to the $400,000 upgrade to datacenter
• Office and administrative expenses of $87,564 (2016 – $43,061) which includes rent expense, travel and license renewal fees have increased due to increased operating activities.
• Personnel costs of $292,876 (2016 - $123,410); higher due to increased operating and administrative activities.
• Professional and regulatory expenses of $95,186 (2016 - $63,832); increased due to the acquisition activities (Note 8).
• Share-based compensation of $344,169 (2016 - $358,412) was incurred due to stock options being granted
Cash generated from financing activities during the year ended December 31, 2017 was $1,515,324 (2016 - $451,432) from subscriptions received for a private placement financing.
Cash used in investing activities during the year ended December 31, 2017 was $446,568 (2016 - $50,000) for the acquisition of computer and other office equipment.
The Company had a working capital deficiency of $62,832 at December 31, 2017 (December 31, 2016 - $69,766 working capital surplus) and cash and cash equivalents of $393,676 (December 31, 2016 - $188,657).
The Company has incurred losses since inception and as at December 31, 2017, has an accumulated deficit of $11,017,087.