LOS ANGELES, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Toga Limited, a Nevada corporation (OTC: TOGL) today announces its unaudited financial results for fiscal years ended July 31, 2020 and 2019.

Year-End 2020 and 2019 Unaudited Financial Highlights

The Company is posting its unaudited financial results as of and for the year-ended July 31, 2020 along with its unaudited, as restated financial results as of and for the year-ended July 31, 2019.

Results of Operations

Fiscal Year Ended July 31, 2020 (Unaudited) Compared to Fiscal Year Ended July 31, 2019 (Unaudited) (As restated)

  Year ended       
  July 31,       
  2020
(Unaudited)		  2019
(Unaudited)
(As
restated)		  Change  % 
Revenue $16,488,953  $5,888,234  $10,600,719   180.0%
Cost of Goods Sold  10,347,848   1,729,748   8,618,100   498.2%
Gross Profit (Loss) $6,141,105  $4,158,486  $1,982,619   47.7%
Gross Margin  37.24%  70.62%        

Gross Margin by product for the year ended July 31, 2020 (Unaudited)

  Product Sales  Advertising  Royalty
Fee		  Yippi  TogaGo  Total 
Revenue $7,945,893  $801,034  $400,000  $6,353,451  $988,575  $16,488,953 
Cost of Goods Sold  3,901,950   -   -   5,531,377   914,521   10,347,848 
Gross Profit (Loss) $4,043,943  $801,034  $400,000  $822,074  $74,054  $6,141,105 
Gross Margin  50.89%  100.00%  100.00%  12.94%  7.49%  37.24%

Gross Margin by product for the year ended July 31, 2019 (Unaudited) (as restated)

                    Software
Maintenance 		    
  Product     Royalty  Management        &    
  Sales  Advertising  Fee  Fee  Yippi  TogaGo  Subscription  Total
Revenue $4,273,252  $190,400  $240,000  $1,072,630  $-  $-  $111,952  $5,888,234
Cost of Goods Sold  379,237   -   -   -   1,337,477   13,034   -   1,729,748
Gross Profit (Loss) $3,894,015  $190,400  $240,000  $1,072,630  $(1,337,477) $(13,034) $111,952  $4,158,486

Gross Margin  91.13%  100.00%  100.00%  100.00%  -   -   100.00%  70.62%

Revenue increased by approximately $10.6 million in the year ended July 31, 2020, compared to the prior year period, driven by a $6.4 million increase in Yippi in-app purchases, a $989,000 increase in TogaGo platform sales, and a $3.7 million increase in direct marketing network revenue.

Gross profit also increased by approximately $2.0 million in the year ended July 31, 2020, compared to the prior year period, due to the new business lines. We invested significantly in staff and infrastructure, which was in the early implementation stage, but management expects reductions in our general and administrative expenses as a percentage of revenue going forward.

  Year ended       
   July 31,        
  2020
(Unaudited)		  2019
(Unaudited)
(As restated)		  Change  % 
Operating expenses:            
General and administrative expenses $6,748,888   3,183,220   3,565,668   112.0%
Salaries and wages  6,515,159   13,074,717   (6,559,558) (50.2)%
Professional fees  2,457,035   1,110,236   1,346,799   121.3%
Depreciation  278,247   93,426   184,821   197.8%
Total operating expenses  15,999,329   17,461,599   (1,462,270) (8.4)%
Loss from Operations  (9,858,224)  (13,303,113)  3,444,889  (25.9)%
Other Income (Expense)  560,044   3,246,419   (2,686,375) (82.7)%
Net Loss $(9,868,611)  (10,212,214)  343,603  (3.4)%

Net loss decreased by approximately $344,000, or 3.4%, in the year ended July 31, 2020, compared to the prior year period, due to an increase in gross profit offset by a decrease in other income of $2.7 million and a decrease in loss from operations primarily attributed to the decreases in salary and wages, including stock-based compensation, offset by an increase in general and administrative expenses of approximately $3.6 million.

Liquidity and Capital Resources

  July 31,   July 31,       
  
2020
(Unaudited)		  2019
(Unaudited)
(As
restated)		  Change  % 
Cash and cash equivalents $9,374,314  $14,916,556  $(5,542,242) (37.2%)
Total Assets $18,026,404  $23,554,425  $(5,528,021) (23.5%
Total Liabilities $10,269,467  $9,049,782  $1,219,685   13.5%
Working Capital $3,270,210  $10,080,247  $(6,810,037) (67.6%)

As of July 31, 2020, our total assets were $18.0 million, and our total liabilities were $10.0 million. Liabilities were comprised primarily of current liabilities of $10.3 million, of which included accounts payable and accrued liabilities of $3.5 million and deferred revenue of $6.6 million.

Our stockholders’ equity decreased from $14.7 million as of July 31, 2019 to $7.8 million as of July 31, 2020.

We had $9.4 million in cash as of July 31, 2020, and we had assets to meet ongoing expenses or debts that may accumulate. Accumulated deficit was $34.5 million as of July 31, 2020, compared to accumulated deficit of approximately $24.6 million as of July 31, 2019.

Our working capital decreased by $6.8 million to $3.3 million at July 31, 2020, as compared to $10.1 million at July 31, 2019, due primarily to the decrease in our current assets, consisting of a decrease in cash and cash equivalents of $5.5 million and prepaid expense and other current assets of $2.8 million, and the increase in our current liabilities, consisting of an increase in and deferred revenue of $1.8 million.

Cash Flow

  Year ended      
  July 31,  Change
  
  2020
(Unaudited)		  2019
(Unaudited)
(As
restated)		  Amount  %
  
Cash Flows provided by (used in) operating activities $(5,345,401) $2,729,719  $(8,075,120) (295.8%)
Cash Flows (used in) investing activities  (351,600)  (372,077)  20,477  (5.5%)
Cash Flows provided by (used in) financing activities  (36,616)  11,371,008   (11,407,624) (100.3%)
Effects on changes in foreign exchange rate  191,375   123,234   68,141   55.3%
Net change in cash and cash equivalents during period $(5,542,242) $1,064,572  $(6,606,814) (620.6%)

Cash Flow from Operating Activities

As of July 31, 2020, we had not generated positive cash flow from operating activities. For the year ended July 31, 2020, net cash flows used in operating activities was $5.3 million compared to $2.7 provided by operating activities during the year ended July 31, 2019. Cash flows provided by operating activities for the year ended July 31, 2020 was comprised of a net loss of $9.9 million, which was offset by non-cash expenses of $4.2 million, of which $3.5 million for loss on for stock-based compensation, and a net change in working capital of $2.8 million. Cash flows provided by operating activities for the year ended July 31, 2019 was comprised of a net loss of $10.2 million, which was increased by non-cash income of $3.2 million for gain on sale of digital currency, and was offset by non-cash expenses of $93,000 for depreciation, $11.1 million for stock-based compensation, and a net change in working capital of $5.0 million.

Cash Flows from Investing Activities

During the year ended July 31, 2020, we used $351,000 for the purchase of property and equipment. During the year ended July 31, 2019, we used $372,000 in investing activities for the purchase of property and equipment.

Cash Flows from Financing Activities

We have financed our operations primarily from either advances and loans from related and third parties or the issuance of equity instruments. For the year ended July 31, 2020, net cash used in financing activities was $37,000, consisting of proceeds from subscription receivable and proceeds from related parties of $224,000, offset by repayment to related parties of $107,000 and redemption of stock options of $157,000. For the year ended July 31, 2019, net cash provided by financing activities was $11.4 million, consisting of proceeds from the sale of shares of our Common Stock of $2.1 million, and proceeds from sales of digital currency of $9.5 million, offset by repayment to related parties of $185,000.

Contact:

Alexander D. Henderson
TOGA LIMITED, 515 S. Flower Street, 18th Floor, Los Angeles, CA 90071
(949) 333-1603
info@togalimited.com 


Source(s) : TOGA Limited