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Toga Limited Reports 2019 and 2020 Unaudited Year End Financial Results

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

Poor Countries Begin to Buy Vaccines

Some poorer countries, alarmed at watching rich countries receiving millions of COVID-19 vaccines, are deciding not to wait for vaccines from the World Health Organization and other groups, and have, instead, started striking their own vaccine deals.

Juan Carlos Sikaffy, president of the Honduran Private Business Council, told the Associated Press that Honduras “cannot wait on bureaucratic processes or misguided decisions” to give citizens “the peace of mind” offered by the COVID-19 vaccine.

The Honduran Private Business Council participated in a vaccine-buying deal for the Central American country by providing a bank guarantee.

Serbia has also gone to the vaccine market even though it has already paid 4 million euros to WHO’s COVAX program, created to distribute the COVID vaccines fairly.

Serbian President Aleksandar Vucic said he could not wait for COVAX after watching rich countries buy up so many of the precious shots.

“It’s as if they intend to vaccinate all their cats and dogs,” he said.

The head of the World Health Organization called Friday for pharmaceutical companies to share manufacturing facilities to increase the production of COVID-19 vaccines.

Speaking at an online news briefing from Geneva, Tedros Adhanom Ghebreyesus said what is needed is “a massive scale-up in production.”

He noted that France’s pharmaceutical company Sanofi announced it would make its manufacturing infrastructure available to support production of the Pfizer/BioNTech vaccine and called on other companies to do the same.

“We encourage all manufacturers to share their data and technology to ensure global, equitable access to vaccines.”

He also repeated his call for rich nations to share doses with poorer countries once they have vaccinated health workers and older people.

Tedros said 75% of all COVID-19 vaccinations worldwide have been given in just 10 countries, while nearly 130 nations have not given a single vaccination.

“The longer it takes to vaccinate those most at risk everywhere, the more opportunity we give the virus to mutate and evade vaccines,” said Tedros said, adding that unless the virus is suppressed everywhere, it could resurge globally.

China’s Sinovac Biotech said Friday that late-stage trial data of its COVID-19 vaccine from Brazil and Turkey showed the vaccine prevented hospitalization and death in COVID-19 patients in 100% of participants, but said it was only 50.65% effective at keeping people from getting infected.

The trial of Sinovac’s CoronaVac vaccine involved nearly 12,400 people and also found the vaccine was 83.7% effective in preventing COVID-19 cases that required any medical treatment.

In the United States, President Joe Biden’s administration announced Friday that the Pentagon had approved the deployment of 1,100 active-duty troops to assist with COVID-19 vaccination efforts. It said that number will likely rise soon.

Yankee Stadium was transformed Friday into a COVID-19 vaccination hub. The iconic stadium is located in the Bronx, a mostly Black and Hispanic New York City borough that has experienced high infection and death rates from the coronavirus.

Currently, only Bronx residents are eligible to receive the COVID shots at the stadium where members of the National Guard have been deployed to assist in the vaccine campaign.

Jacqueline Soto, a 55-year-old school secretary from the Bronx, told Reuters Friday “I was on a wait list for three weeks, desperate to get a vaccine … I was unsuccessful. But today I’m here. I just went on the link yesterday and already I got the appointment today and I’m happy to be here.”

The U.S. supermarket chain Kroger said Friday it would give $100 to workers who get a COVID-19 vaccination, joining a growing number of companies who are incentivizing employees to get vaccinated.

Coronavirus cases in the United States have been decreasing in recent weeks. However, medical officials are urging U.S. residents to not turn Sunday’s Super Bowl, a yearly football game, into a superspreader event. Fans usually gather at large home parties or in bars and restaurants to watch the game on television. Medical authorities this year, however, are urging football fans to watch the game “with the people you live with.”

Greece has announced stricter lockdown restrictions in the capital, Athens, as well as other parts of the country to stop the spread of the pandemic. The restrictions include a curfew that will start at 6:00 pm Saturday.

Also Saturday, South Korea begins easing its restrictions on businesses outside of the capital, allowing them to stay open an additional hour to 10 p.m. Small business owners and self-employed people have been calling for an easing of restrictions imposed as the country seeks to control the coronavirus outbreak. However, business in Seoul, the capital, will still close at 9 p.m.

There are more than 105 million global GOVID-19 cases and 2.3 million deaths from the coronavirus, according to the Johns Hopkins Coronavirus Resource Center.

The United States remains at the top of the list as the location with the most infections, with more than 26.8 million cases, followed by India with 10.8 million and Brazil with 9.4 million.

Source: Voice of America

Justices: California Can’t Enforce Indoor Church Service Ban

The Supreme Court is telling California that it can’t bar indoor church services because of the coronavirus pandemic, but it can keep for now a ban on singing and chanting indoors.

The high court issued orders late Friday in two cases where churches had sued over coronavirus-related restrictions in the state. The high court said that for now, California can’t ban indoor worship as it had in almost all of the state because virus cases are high. The justices said the state can cap indoor services at 25% of a building’s capacity.

The justices also declined to stop California from enforcing a ban put in place last summer on indoor singing and chanting. California had put the restrictions in place because the virus is more easily transmitted indoors and singing releases tiny droplets that can carry the disease.

The justices were acting on emergency requests to halt the restrictions from South Bay United Pentecostal Church in Chula Vista and Pasadena-based Harvest Rock Church and Harvest International Ministry, which has more than 160 churches across the state.

Chief Justice John Roberts wrote that “federal courts owe significant deference to politically accountable officials” when it comes to public health restrictions, but he said deference “has its limits.”

Roberts wrote that California’s determination “that the maximum number of adherents who can safely worship in the most cavernous cathedral is zero—appears to reflect not expertise or discretion, but instead insufficient appreciation or consideration of the interests at stake.”

In addition to Roberts, Justice Neil Gorsuch and Justice Amy Coney Barrett also wrote to explain their views. Gorsuch and Justice Clarence Thomas would have kept California from enforcing its singing ban. Barrett, the court’s newest justice, disagreed. Writing for herself and Justice Brett Kavanaugh, she said it wasn’t clear at this point whether the singing ban was being applied “across the board.”

She wrote that “if a chorister can sing in a Hollywood studio but not in her church, California’s regulations cannot be viewed as neutral,” triggering a stricter review by courts. The justices said the churches who sued can submit new evidence to a lower court that the singing ban is not being applied generally.

The court’s three liberal justices dissented, saying they would have upheld California’s restrictions. Justice Elena Kagan wrote in a dissent for herself, Justice Stephen Breyer and Justice Sonia Sotomayor that the court’s action “risks worsening the pandemic.”

She said that the court was “making a special exception for worship services” rather than treating them like other activities where large groups of people come together “in close proximity for extended periods of time.” In areas of California where COVID-19 is widespread, which includes most of the state, activities including indoor dining and going to the movies are banned.

“I fervently hope that the Court’s intervention will not worsen the Nation’s COVID crisis. But if this decision causes suffering, we will not pay. Our marble halls are now closed to the public, and our life tenure forever insulates us from responsibility for our errors. That would seem good reason to avoid disrupting a State’s pandemic response. But the Court forges ahead regardless, insisting that science-based policy yield to judicial edict,” she wrote.

Charles LiMandri, an attorney for South Bay United Pentecostal Church, said in a statement that he and his clients were “heartened by this order” and “thank the high court for upholding religious liberty.”

The court’s action follows a decision in a case from New York late last year in which the justices split 5-4 in barring the state from enforcing certain limits on attendance at churches and synagogues. Shortly after, the justices told a federal court to reexamine California’s restrictions in light of the ruling.

Source: Voice of America