| SEGMENT INFORMATION |
The Company operated in two
reportable segments within the USA during the year ended August 31, 2020 and 2019, oil extraction and processing operations and
mining operations.
Once the expansion of the plant
has reached a stage of completion where it is viable to commence production and the requisite licenses have been obtained, the
Company’s oil extraction segment will be able to commence commercial production and will generate revenue from the sale
of hydrocarbon products to third parties.
The presentation of the consolidated
statements of loss and comprehensive loss provides information about the oil extraction and processing segment. There were limited
operations in the mining operations segment during the year ended August 31, 2020 and 2019. Other information about reportable
segments are:
| |
|
August 31, 2020 |
|
| |
|
Oil |
|
|
Mining |
|
|
|
|
| (in ’000s of dollars) |
|
Extraction |
|
|
Operations |
|
|
Consolidated |
|
| Additions to non-current assets |
|
$ |
2,073 |
|
|
$ |
50 |
|
|
$ |
2,123 |
|
| Reportable segment assets |
|
|
40,405 |
|
|
|
33,240 |
|
|
|
73,645 |
|
| Reportable segment liabilities |
|
$ |
19,416 |
|
|
$ |
100 |
|
|
$ |
19,516 |
|
| |
|
August 31, 2019 |
|
| |
|
Oil |
|
|
Mining |
|
|
|
|
| (in ’000s of dollars) |
|
Extraction |
|
|
Operations |
|
|
Consolidated |
|
| Additions to non-current assets |
|
$ |
12,498 |
|
|
|
23,800 |
|
|
|
36,298 |
|
| Reportable segment assets |
|
|
36,690 |
|
|
|
36,166 |
|
|
|
72,856 |
|
| Reportable segment liabilities |
|
$ |
11,663 |
|
|
|
3,374 |
|
|
|
15,037 |
|
| |
|
August 31, 2020 |
|
| (in ’000s of dollars) |
|
Oil
Extraction |
|
|
Mining operations |
|
|
Consolidated |
|
| Revenues from hydrocarbon sales |
|
$ |
291 |
|
|
$ |
- |
|
|
$ |
291 |
|
| Other production and maintenance costs |
|
|
(1,714 |
) |
|
|
- |
|
|
|
(1,714 |
) |
| Advance royalty payments |
|
|
- |
|
|
|
(988 |
) |
|
|
(988 |
) |
| Gross Loss |
|
|
(1,423 |
) |
|
|
(988 |
) |
|
|
(2,411 |
) |
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
104 |
|
|
|
- |
|
|
|
104 |
|
| Selling, general and administrative expenses |
|
|
6,180 |
|
|
|
4 |
|
|
|
6,184 |
|
| Investor relations |
|
|
(92 |
) |
|
|
- |
|
|
|
(92 |
) |
| Professional fees |
|
|
2,613 |
|
|
|
1 |
|
|
|
2,614 |
|
| Salaries and wages |
|
|
1,044 |
|
|
|
- |
|
|
|
1,044 |
|
| Share-based compensation |
|
|
888 |
|
|
|
- |
|
|
|
888 |
|
| Travel and promotional expenses |
|
|
714 |
|
|
|
- |
|
|
|
714 |
|
| Other |
|
|
1,013 |
|
|
|
3 |
|
|
|
1,016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financing costs |
|
|
2,672 |
|
|
|
- |
|
|
|
2,672 |
|
| Impairment of investments |
|
|
75 |
|
|
|
- |
|
|
|
75 |
|
| Other expense (income) |
|
|
746 |
|
|
|
- |
|
|
|
746 |
|
| Gain on settlement of liabilities |
|
|
(525 |
) |
|
|
- |
|
|
|
(525 |
) |
| Loss on conversion of convertible debt |
|
|
745 |
|
|
|
- |
|
|
|
745 |
|
| Gain on debt extinguishment |
|
|
(55 |
) |
|
|
- |
|
|
|
(55 |
) |
| Penalty on convertible note |
|
|
610 |
|
|
|
- |
|
|
|
610 |
|
| Other income |
|
|
(29 |
) |
|
|
- |
|
|
|
(29 |
) |
| Derivative liability movements |
|
|
187 |
|
|
|
- |
|
|
|
187 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
11,387 |
|
|
$ |
992 |
|
|
$ |
12,379 |
|
| |
|
August 31, 2019 |
|
| (in ’000s of dollars) |
|
Oil
Extraction |
|
|
Mining operations |
|
|
Consolidated |
|
| Revenues from hydrocarbon sales |
|
$ |
59 |
|
|
$ |
- |
|
|
$ |
59 |
|
| Other production and maintenance costs |
|
|
1,347 |
|
|
|
- |
|
|
|
1,347 |
|
| Advance royalty payments |
|
|
- |
|
|
|
291 |
|
|
|
291 |
|
| Gross Loss |
|
|
(1,288 |
) |
|
|
(291 |
) |
|
|
(1,579 |
) |
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
74 |
|
|
|
- |
|
|
|
74 |
|
| Selling, general and administrative expenses |
|
|
11,531 |
|
|
|
13 |
|
|
|
11,544 |
|
| Investor relations |
|
|
1,485 |
|
|
|
- |
|
|
|
1,485 |
|
| Professional fees |
|
|
6,194 |
|
|
|
- |
|
|
|
6,194 |
|
| Research and development expenses |
|
|
113 |
|
|
|
- |
|
|
|
113 |
|
| Salaries and wages |
|
|
1,405 |
|
|
|
- |
|
|
|
1,405 |
|
| Share-based compensation |
|
|
916 |
|
|
|
- |
|
|
|
916 |
|
| Travel and promotional expenses |
|
|
683 |
|
|
|
- |
|
|
|
683 |
|
| Other |
|
|
735 |
|
|
|
13 |
|
|
|
748 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financing costs |
|
|
1,225 |
|
|
|
- |
|
|
|
1,225 |
|
| Impairment of investments |
|
|
914 |
|
|
|
- |
|
|
|
914 |
|
| Other expense (income) |
|
|
452 |
|
|
|
- |
|
|
|
452 |
|
| Gain on settlement of liabilities |
|
|
535 |
|
|
|
- |
|
|
|
535 |
|
| Interest income |
|
|
(83 |
) |
|
|
- |
|
|
|
(83 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
15,484 |
|
|
$ |
304 |
|
|
$ |
15,788 |
|
|