{"id":485419,"date":"2021-04-30T17:33:45","date_gmt":"2021-04-30T21:33:45","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/blueberries-medical-reports-2020-financial-results\/"},"modified":"2021-04-30T17:33:45","modified_gmt":"2021-04-30T21:33:45","slug":"blueberries-medical-reports-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/blueberries-medical-reports-2020-financial-results\/","title":{"rendered":"Blueberries Medical Reports 2020 Financial Results"},"content":{"rendered":"
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TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA) the Canadian parent of Blueberries S.A.S. (\u201cBBSAS<\/strong>\u201d), the premier Latin American licensed cultivator and producer of medicinal cannabis and medicinal-grade cannabis extracts, (together the \u201cCompany<\/strong>\u201d or \u201cBlueberries<\/strong>\u201d), is pleased to report its financial results for the year ended December 31, 2020. Blueberries has filed today its audited consolidated financial statements and related management\u2019s discussion and analysis, both of which are available on Blueberries\u2019 profile at www.sedar.com<\/a>. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.<\/p>\n

\u201c2020 was a year of significant changes at Blueberries,\u201d said Facundo Garreton, Chairman and Chief Executive Officer, \u201cOur new management team has been focusing on achieving three primary objectives: cash management, establishing processing and extraction capabilities, and laying the groundwork for meaningful commercial sales growth in 2021. Because of these efforts, Blueberries is well-positioned to move forward with its strategy despite COVID-19 related disruptions.\u201d<\/p>\n

\n Financial Highlights<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n Year ended December 31,<\/strong>
\n
\n
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n<\/tr>\n
\n (Expressed in Canadian Dollars)<\/em>\n <\/td>\n\u00a0<\/td>\n\n 2020<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 2019<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Revenues<\/strong>\n <\/td>\n$<\/td>\n65,978<\/td>\n\u00a0<\/td>\n$<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cost of sales<\/td>\n\u00a0<\/td>\n(3,579<\/td>\n)<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Gross profit<\/strong>\n <\/td>\n$<\/td>\n62,399<\/td>\n\u00a0<\/td>\n$<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Expenses<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Pre-operating expenses<\/td>\n$<\/td>\n(988,577<\/td>\n)<\/td>\n$<\/td>\n(1,042,256<\/td>\n)<\/td>\n<\/tr>\n
General and administrative expenses<\/td>\n\u00a0<\/td>\n(2,484,721<\/td>\n)<\/td>\n\u00a0<\/td>\n(5,462,462<\/td>\n)<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n(713,739<\/td>\n)<\/td>\n\u00a0<\/td>\n(294,129<\/td>\n)<\/td>\n<\/tr>\n
Listing expense<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(4,004,312<\/td>\n)<\/td>\n<\/tr>\n
Finance expense<\/td>\n\u00a0<\/td>\n(119,688<\/td>\n)<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
Changes in fair value of derivative liabilities<\/td>\n\u00a0<\/td>\n(575,471<\/td>\n)<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other income (expense)<\/td>\n\u00a0<\/td>\n(79,246<\/td>\n)<\/td>\n\u00a0<\/td>\n2,396<\/td>\n\u00a0<\/td>\n<\/tr>\n
Foreign exchange gain (loss)<\/td>\n\u00a0<\/td>\n(41,064<\/td>\n)<\/td>\n\u00a0<\/td>\n12,887<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current and deferred income tax<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n–<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Net loss<\/strong>\n <\/td>\n$<\/td>\n(4,940,107<\/td>\n)<\/td>\n$<\/td>\n(10,787,876<\/td>\n)<\/td>\n<\/tr>\n
\n Other Comprehensive Loss<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Foreign currency translation adjustment<\/td>\n\u00a0<\/td>\n(201,440<\/td>\n)<\/td>\n\u00a0<\/td>\n(378,766<\/td>\n)<\/td>\n<\/tr>\n
\n Comprehensive loss<\/strong>\n <\/td>\n$<\/td>\n(5,141,547<\/td>\n)<\/td>\n$<\/td>\n(11,166,642<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss per share – basic and diluted<\/td>\n$<\/td>\n(0.040<\/td>\n)<\/td>\n$<\/td>\n(0.099<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n As at December 31,<\/strong>
\n
\n
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n<\/tr>\n
\n \u00a0<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2020<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 2019<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
Total assets<\/td>\n$<\/td>\n7,270,212<\/td>\n\u00a0<\/td>\n$<\/td>\n9,786,447<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total liabilities<\/td>\n\u00a0<\/td>\n3,380,433<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,711,035<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total equity<\/td>\n\u00a0<\/td>\n3,889,779<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8,075,412<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n Financial Highlights Commentary<\/strong>
\n \n <\/p>\n

\n Revenues <\/strong>– Blueberries commenced commercial operations in late Q2, 2020 with sales of cloned cuttings of its cultivars to associate growers ($59,308) and introductory sales of its cosmetics products ($6,670).<\/p>\n

\n Pre-operating expenses<\/strong> – Since the Company is in early stages of commercial operations, material operational costs are included under pre-operating expenses, which are non-capital expenditures relating to Blueberries\u2019 cannabis cultivation and extraction operations. During 2020, due to COVID-19, the company implemented voluntary salary reductions for personnel in management positions, which is reflected in the lower pre-operating expenses in the year.<\/p>\n

\n General and Administrative (\u201cG&A\u201d) Expenses<\/strong> \u2013 An analysis of selected G&A expenses is as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n Year ended December 31,<\/strong>\n <\/td>\n<\/tr>\n
\n \u00a0<\/strong>\n <\/td>\n\n 2020<\/strong>\n <\/td>\n\n 2019<\/strong>\n <\/td>\n<\/tr>\n
Share based compensation<\/td>\n805,914<\/td>\n2,450,488<\/td>\n<\/tr>\n
Marketing and investor relations<\/td>\n68,990<\/td>\n670,327<\/td>\n<\/tr>\n
Director and management fees<\/td>\n464,701<\/td>\n494,847<\/td>\n<\/tr>\n
Legal<\/td>\n149,552<\/td>\n389,350<\/td>\n<\/tr>\n
Consulting<\/td>\n219,943<\/td>\n356,729<\/td>\n<\/tr>\n
Salary, wages, and benefits<\/td>\n418,007<\/td>\n406,528<\/td>\n<\/tr>\n
Audit and accounting<\/td>\n76,800<\/td>\n241,738<\/td>\n<\/tr>\n
General office<\/td>\n109,381<\/td>\n191,430<\/td>\n<\/tr>\n
Travel<\/td>\n10,340<\/td>\n106,765<\/td>\n<\/tr>\n
Filing and transfer agent fees<\/td>\n55,409<\/td>\n69,487<\/td>\n<\/tr>\n
Insurance<\/td>\n53,645<\/td>\n37,147<\/td>\n<\/tr>\n
Other<\/td>\n52,039<\/td>\n47,626<\/td>\n<\/tr>\n
\n Total general and administrative expenses<\/strong>\n <\/td>\n\n 2,484,721 <\/strong>\n <\/td>\n\n 5,462,462 <\/strong>\n <\/td>\n<\/tr>\n<\/table>\n

Share based compensation\u00a0\u2013 During 2020, 1,320,000 unvested options were forfeited resulting in a reversal of stock-based compensation of $186,446.<\/p>\n

Marketing and investor relations\u00a0\u2013 The 2019 costs were incurred initially relating to promotion of Blueberries stock and communication with investors as part of investor relations. These costs were considered necessary to begin trading on the CSE in order to help promote the Company, raise capital, and also included other business initiatives towards promotion, development, and growth of the Company\u2019s operations and assets.<\/p>\n

Legal fees\u00a0\u2013 The 2020 legal fees were incurred in relation to issuing of convertible debenture, private placements, ongoing administrative matters and legal counsel regarding the structure and format of potential business ventures the Company is pursuing. The fees incurred in 2019 mainly relate to the reverse takeover transaction and consecutive public listing of the company.<\/p>\n

Consulting \u2013 includes advice and assistance on operations, quality management, facility development, financial and technical counsel, human resources services, and regulatory compliance. The reduction of consulting fees from 2019 to 2020 are due to the Company having incurred start-up related consulting fees in 2019, mainly engagement of new services at the start of the operations on compliance with EU-GMP standards. The 2020 consulting fees are also lower because of savings realized by financial services being internalized.<\/p>\n

Audit and accounting fees\u00a0\u2013 include cost of audit, accounting and taxation services provided by the Company\u2019s external auditor and other third parties. The 2019 fees included the reverse takeover transaction related audit fees incurred to comply with public company listing requirements and fees from a third-party contractor for accounting and taxation services. The decrease in fees in 2020 reflect internalization of the accounting function.<\/p>\n

General office expenditures\u00a0\u2013 include office and equipment rent, utilities, communication, and cleaning services. The year-on-year decrease reflects savings measures implemented due to COVID-19 pandemic. Blueberries closed its Toronto and Bogota offices, with significant monthly rental fee savings.<\/p>\n

Travel \u2013 The decrease in travel expenses from 2019 to 2020 is due to tighter cost control on discretionary expenses and the impact of COVID-19 travel restrictions.<\/p>\n

\n Finance Expense –<\/strong> The finance expense consists of accrued interest of $60,667 on the convertible debenture and the accretion of convertible debt liability of $59,021.<\/p>\n

\n Changes in Fair Value of Derivative Liabilities<\/strong> \u2013 include unrealized gain on the change in fair value of the convertible debenture related derivative liability.<\/p>\n

\n Highlights<\/strong>\n <\/p>\n