|
Québec
(State or other jurisdiction of incorporation or organization) |
| |
3730
(Primary Standard Industrial Classification Code Number) |
| |
N/A
(I.R.S. Employer Identification Number) |
|
|
William Rosenstadt, Esq.
Tim Dockery, Esq. Ortoli Rosenstadt LLP 501 Madison Avenue, 14th Floor New York, New York 10022 Telephone: (302) 738-6680 |
| |
Rob Condon, Esq.
Dentons US LLP 1221 Avenue of the Americas New York, New York 10020 Telephone: (212) 768-6800 |
|
Title of each class of securities to be registered(2)
|
| |
Proposed
maximum aggregate offering price(1) |
| |
Amount of
registration fee |
| ||||||
Common shares
|
| | | US$ | 17,250,000 | | | | | US$ | 2,239 | | |
Warrants to be issued to the underwriter
|
| | | | —(3) | | | | | | —(3) | | |
Common shares underlying warrants to be issued to the
underwriter(4) |
| | | US$ | 1,185,938 | | | | | US$ | 154 | | |
| | | US$ | 18,435,938 | | | | | US$ | 2,393(5) | | |
| | |
Per Common
Share |
| |
Total
|
| ||||||
Public offering price
|
| | | US$ | | | | | US$ | | | ||
Underwriter discounts and commissions(1)
|
| | | US$ | | | | | US$ | | | ||
Proceeds to us, before expenses(2)
|
| | | US$ | | | | | US$ | | | |
| | |
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| | | | F-1 | | |
|
Maximum power
Max torque Continuous power Voltage Efficiency Weight Lithium Battery Shaft Length Cooling Control |
| |
180 HP, 135 Kw
250 ft.lb, 340 Nm 90 kW 650 V 94% at 8,000 rpm 413 Lbs., 188 kg 60 – 420 kW S – XL Water Can bus |
| |
|
| |
|
|
|
|
| |
Phoenix 290:
|
| |
Our latest model that we recently unveiled and which we are planning to begin production of in 2021. It is a 29-foot powerboat capable of accommodating up to 12 people, comes equipped with two Torqeedo Deep Blue engines.
|
|
|
|
| |
Bruce 22:
|
| |
Our current flagship boat. It is capable of reaching speeds of up to approximately 41 miles per hour (66 kph). We offer three variations of the Bruce 22 with starting prices between $69,995 and $289,995. Purchasers may customize the Bruce 22 by choosing among various options including type of propulsion, inserts, other options and batteries. In our 2019 fiscal year, we sold 5 Bruce 22s.
|
|
|
|
| |
Volt 180:
|
| |
A powerful boat that can reach speeds of up to approximately 30 miles per hour (48 kph). In our 2019 fiscal year, we sold 14 Volt 180s.
|
|
|
|
| |
Fantail 217:
|
| |
A boat designed with a view towards relaxation rather than speed. The Fantail 217 starts at $38,995, seats up to ten people and has a maximum speed of approximately 10 miles per hour (6 kph). In our 2019 fiscal year, we sold 23 Fantail 217s
|
|
|
|
| |
Quietude 156:
|
| |
A boat with an eye towards tranquility over speed or power. The Quietude 156 starts at $22,995, seats four passengers and reaches a top speed approximately 5 miles per hour (8 kph). In our 2019 fiscal year, we sold 4 Quietude 156s.
|
|
|
• technological innovation;
• product quality and safety;
• service options;
• product performance;
• environmental friendliness;
• design and styling; and
• brand perception.
|
| |
|
|
| | |
Year ended
August 31, |
| |
Six months ended
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
February 29,
2020 |
| |
February 28,
2019 |
| ||||||||||||
Revenue
|
| | | $ | 2,869,377 | | | | | $ | 1,271,566 | | | | | $ | 436,193 | | | | | $ | 1,271,552 | | |
Gross profit
|
| | | $ | 1,285,364 | | | | | $ | 501,727 | | | | | $ | 233,560 | | | | | $ | 589,844 | | |
Net and comprehensive income (loss)
|
| | | $ | 233,066 | | | | | $ | (185,848) | | | | | $ | (477,797) | | | | | $ | 54,647 | | |
Basic and diluted income (loss) per share(1)
|
| | | $ | 0.06 | | | | | $ | (0.05) | | | | | $ | (0.13) | | | | | $ | 0.01 | | |
| | |
Year ended
August 31, |
| |
Six months ended
February 29, 2020 |
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
Actual
|
| |
Pro
Forma |
| |
Pro Forma As
Adjusted(1) |
| |||||||||||||||
Current Assets
|
| | | $ | 1,366,769 | | | | | $ | 1,578,282 | | | | | $ | 1,855,030 | | | | | $ | 5,649,530 | | | | | $ | 23,553,215 | | |
Total Assets
|
| | | $ | 1,914,562 | | | | | $ | 1,993,194 | | | | | $ | 3,043,903 | | | | | $ | 6,838,403 | | | | | $ | 24,742,088 | | |
Current Liabilities
|
| | | $ | 1,459,534 | | | | | $ | 1,890,278 | | | | | $ | 1,731,886 | | | | | $ | 1,731,886 | | | | | $ | 1,731,886 | | |
Total Liabilities
|
| | | $ | 2,046,864 | | | | | $ | 2,395,987 | | | | | $ | 3,478,927 | | | | | $ | 3,478,927 | | | | | $ | 3,478,927 | | |
Total equity (deficit)
|
| | | $ | (132,302) | | | | | $ | (402,793) | | | | | $ | (435,024) | | | | | $ | 3,359,476 | | | | | $ | 21,263,161 | | |
Description of Use
|
| |
Estimated Amount of
Net Proceeds |
| |||
Sales & Marketing
|
| | | US$ | 2,000,000 | | |
Build Up Inventory for Order Fulfilment
|
| | | US$ | 3,000,000 | | |
Research & Development
|
| | | US$ | 350,000 | | |
Unallocated Working Capital
|
| | | US$ | 3,000,000 | | |
Development of Rental Sales
|
| | | US$ | 5,000,000 | | |
Total
|
| | | US$ | 13,350,000 | | |
| | |
As of February 29, 2020
|
| |||||||||||||||
| | |
Actual
(unaudited) |
| |
Pro Forma(1)
|
| |
Pro forma as
adjusted(2) |
| |||||||||
Cash and Cash Equivalents
|
| | | $ | — | | | | | $ | 3,794,500 | | | | | $ | 21,698,185 | | |
Bank indebtedness
|
| | | $ | 278,683 | | | | | $ | 278,683 | | | | | $ | 278,683 | | |
Current portion of long-term debt
|
| | | | 33,701 | | | | | | 33,701 | | | | | | 33,701 | | |
Long-term Debt
|
| | | | 349,169 | | | | | | 349,169 | | | | | | 349,169 | | |
Shareholders Equity/(deficiency) | | | | | | | | | | | | | | | | | | | |
Capital Stock
|
| | | $ | 213,100 | | | | | $ | 4,007,600 | | | | | $ | 21,911,285 | | |
Retained earnings (deficit)
|
| | | | (648,124) | | | | | | (648,124) | | | | | | (648,124) | | |
Total Equity
|
| | | $ | (435,024) | | | | | $ | 3,359,476 | | | | | $ | 21,263,161 | | |
Total Capitalization
|
| | | $ | 226,529 | | | | | $ | 4,021,029 | | | | | $ | 21,924,714 | | |
| | |
Offering
Without Over- Allotment(1) |
| |
Offering
With Over- Allotment(1) |
| ||||||
Assumed offering price per common share (US$9.00)
|
| | | $ | 12.0699 | | | | | $ | 12.0699 | | |
Historical net tangible book value per common share before the offering
|
| | | $ | (0.1139) | | | | | $ | (0.1139) | | |
Increase in net tangible book value per share attributable to the Post-February 29, 2020 Issuances
|
| | | | 0.7627 | | | | | | 0.7627 | | |
Pro forma net tangible book value per share
|
| | | $ | 0.6488 | | | | | $ | 0.6488 | | |
Increase per common share attributable to this offering
|
| | | | 2.4579 | | | | | | 2.7397 | | |
Pro forma as adjusted net tangible book value after the offering
|
| | | $ | 3.1067 | | | | | $ | 3.3885 | | |
Pro forma as adjusted dilution per common share to new investors in this offering
|
| | | $ | 8.9632 | | | | | $ | 8.6814 | | |
| | |
Period End
|
| |
Period Average
Rate |
| |
High Rate
|
| |
Low Rate
|
| ||||||||||||
Year Ended | | | | | | | | | | | | | | | | | | | | | | | | | |
August 31, 2019
|
| | | $ | 1.3290 | | | | | $ | 1.3260 | | | | | $ | 1.3644 | | | | | $ | 1.2799 | | |
August 31, 2018
|
| | | $ | 1.3072 | | | | | $ | 1.2812 | | | | | $ | 1.3319 | | | | | $ | 1.2131 | | |
Month Ended | | | | | | | | | | | | | | | | | | | | | | | | | |
May 31, 2020
|
| | | $ | 1.4021 | | | | | $ | 1.3972 | | | | | $ | 1.4143 | | | | | $ | 1.3879 | | |
June 30, 2020
|
| | | $ | 1.3614 | | | | | $ | 1.3552 | | | | | $ | 1.3695 | | | | | $ | 1.3379 | | |
July 31, 2020
|
| | | $ | 1.3384 | | | | | $ | 1.3497 | | | | | $ | 1.3606 | | | | | $ | 1.3364 | | |
August 31, 2020
|
| | | $ | 1.3034 | | | | | $ | 1.3235 | | | | | $ | 1.3408 | | | | | $ | 1.3034 | | |
September 30, 2020
|
| | | $ | 1.3323 | | | | | $ | 1.3230 | | | | | $ | 1.3411 | | | | | $ | 1.3043 | | |
October 31, 2020
|
| | | $ | 1.3332 | | | | | $ | 1.3218 | | | | | $ | 1.3365 | | | | | $ | 1.3120 | | |
|
|
| |
|
|
|
Maximum power
Max torque Continuous power Voltage Efficiency Weight Lithium Battery Shaft Length Cooling Control |
| |
180 HP, 135 kW
250 ft.lb, 340 Nm 90 kW 650 V 94% 413 Lbs., 188 kg 60 – 420 kW S – XL Water Can bus |
| |
|
| |
|
|
| | |
Phoenix 290*
|
| |
Bruce 22
|
| |
Volt 180
|
| |
Fantail 217
|
| |
Quietude 156
|
|
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Price Range
|
| | $175,000 – $325,000 | | | $68,995 – $289,995 | | | $34,995 – $190,000 | | | $38,995 – $90,000 | | | $22,995 – $38,000 | |
Maximum speed
|
| |
51.5 km/h (32 mph)
|
| |
65.9 km/h (41 mph)
|
| | 48 km/h (30 mph) | | | 9.66 km/h (6 mph) | | | 8.05 km/h (5 mph) | |
Cruising speed
|
| |
32.2 km/h (20 mph)
|
| | Up to 32 km/h (20 mph) | | | Up to 24 km/h (15 mph) | | | 8.05 km/h (5 mph) | | | 6 – 13 km/h (4-8 mph) | |
Capacity
|
| | 10 passengers | | | 5 – 8 passengers | | | 11 Canada, 14 US | | | 8 – 10 passengers | | | 4 passengers | |
Dry Weight
|
| | 1996 Kg (4400 pounds) | | | 1088 Kg (2400 pounds) | | | 720 kg (1600 pounds) | | | 775 kg (1705 lbs.) | | | 800lbs | |
Hull Material
|
| | Fiberglass | | | Fiberglass | | | Fiberglass (Infusion Sandwich) | | | Fiberglass | | | Fiberglass | |
Overall Length
|
| | 8.3 m (29 feet) | | | 6.7 m (22′) | | | 5.4 m (17’9”) | | | 6.6 m (21’7”) | | | 4.7 m (15’6”) | |
Overall Width
|
| | 2.6 meters (8’5”) | | | 2.08 m (6’6”) | | | 2.13 m (7’) | | | 2.03 m (6’8”) | | | 1.5 m (4’11”) | |
Draft
|
| | | | | 0.45 m (18”) | | | 0.30 m (12”) | | | 0.43 m (20”) | | | 0.18 m (8”) | |
Homologation
|
| |
USA, Canada, EU
|
| |
USA, Canada, EU
|
| |
USA, Canada, EU
|
| |
USA, Canada, EU
|
| |
USA, Canada, EU
|
|
Woodwork
|
| | | | | Mahogany, Teak | | | Synthetic | | | Synthetic | | | Synthetic | |
Propulsion
|
| | Twin Deep Blue 80 HP | | | Minn Kota, Torqeedo or Piktronic | | | Minn-Kota or Torqeedo | | | Minn-Kota, E-Tech engine, E-Tech Propulsion, Torqeedo salt-water engine | | | Minn-Kota | |
Battery Type
|
| | Lithium ion/80 kW BMW i3 | | | Lithium ion | | | Lead Acid, Lithium Relion or Lithium BMW | | | Lead Acid, Lithium Relion or Lithium BMW | | | Lead Acid | |
|
|
| |
We have been developing the Phoenix 290 as the next in our line of boats. The Phoenix 290, a 29-foot powerboat capable of accommodating up to 12 people, comes equipped with two Torqeedo Deep Blue engines. We unveiled the Phoenix 290 at the Miami boat show in February 2020. We anticipate that we will begin production of the Phoenix 290 in 2021.
|
|
|
|
| |
Reaching speeds of up to approximately 41 miles per hour (66 kph), the Bruce 22 is our flagship boat. We offer three variations of the Bruce 22: a Hatchback Classic (a 100 kWh five-seater starting at $279,995), an Open Utility (a 100 kWh eight-seater starting at $289,995) and the Bruce22 T (a 4 kWh eight-seater starting at $68,995). In addition to the customizations that are available for each of our boats, purchasers may customize the Bruce 22 by choosing among various options including type of propulsion (Piktronic, Torqeedo or Min-Kota), inserts (mahogany, permatek and fiber glass) and other options (including ski pole, underwater light and a swim platform). In our 2019 fiscal year, we sold 5 Bruce 22s.
|
|
|
|
| |
Reaching speeds of up to approximately 30 miles per hour (48 kph), the Volt 180 is a powerful boat that can be used for various watersports. In addition to the customizations that are available for each of our boats, purchasers may customize the Volt 180 by choosing among various options including the power of the motor (available in 2, 3, 6, 10 and 60 kilowatts), accessories (including racing seats, fish rod holder, depth finder and anchor) and other options (including bumper, types of canopies and a premium sound system). In our 2019 fiscal year, we sold 14 Volt 180s.
|
|
|
|
| |
We designed the Fantail 217 with a view towards relaxation rather than speed. The Fantail 217 starts at $38,995, seats up to ten people and has a maximum speed of approximately 10 miles per hour (6 kph). In addition to the customizations that are available for each of our boats, purchasers may customize the Fantail 217 by choosing among various options including the type of motor (Torqeedo Salt Water, E-Tech, Min-Kota or E-Propulsion), type of battery (lead acid, lithium relion, lithium BMW 48-5000), number of batteries (up to eight), type of canopy (aluminum, stainless steel or fiberglass) and other options (including night navigation light, a double horn and bottom paint). In our 2019 fiscal year, we sold 23 Fantail 217s.
|
|
|
|
| |
As the name suggests, we designed the Quietude 156 with an eye towards tranquility over speed or power. The Quietude 156 starts at $22,995, seats four passengers and reaches a top speed approximately 5 miles per hour (8 kph). The Quietude 156 comes with a Min-Kota 36V motor and three lead acid batteries, but purchasers may still customize other aspects of the Quietude 156 by choosing among various options including the type of table to be used, the type of canopy and electronics that can be included (such as a bluetooth marine radio and a depth meter). In our 2019 fiscal year, we sold 4 Quietude 156s.
|
|
Activity
|
| |
Number of
Full-Time Employees |
| |||
Administration
|
| | | | 6 | | |
Manufacturing
|
| | | | 8 | | |
| | |
Year ended August 31,
|
| |
Six months ended
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
February 29,
2020 |
| |
February 28,
2019 |
| ||||||||||||
Revenue
|
| | | $ | 2,869,377 | | | | | $ | 1,271,566 | | | | | $ | 436,193 | | | | | $ | 1,271,552 | | |
Gross Profit
|
| | | $ | 1,285,364 | | | | | $ | 501,727 | | | | | $ | 233,560 | | | | | $ | 589,844 | | |
Net and Comprehensive Income/(Loss)
|
| | | $ | 233,066 | | | | | $ | (185,848) | | | | | $ | (477,797) | | | | | $ | 54,647 | | |
Income/(Loss) per Share – Basic and Fully Diluted
|
| | | $ | 0.06 | | | | | $ | (0.05) | | | | | $ | (0.13) | | | | | $ | 0.01 | | |
| | |
August 31,
2019 |
| |
August 31,
2018 |
| |
For the six
months ended February 29, 2020 |
| |||||||||
Cash
|
| | | $ | Nil | | | | | $ | Nil | | | | | $ | Nil | | |
Current Assets
|
| | | $ | 1,366,769 | | | | | $ | 1,578,282 | | | | | $ | 1,855,030 | | |
Total Assets
|
| | | $ | 1,914,562 | | | | | $ | 1,993,194 | | | | | $ | 3,043,903 | | |
Current Liabilities
|
| | | $ | 1,459,534 | | | | | $ | 1,890,278 | | | | | $ | 1,731,886 | | |
Total Liabilities
|
| | | $ | 2,046,864 | | | | | $ | 2,395,987 | | | | | $ | 3,478,927 | | |
Total Equity (Deficiency)
|
| | | $ | (132,302) | | | | | $ | (402,793) | | | | | $ | (435,024) | | |
Securities
|
| |
Outstanding
|
|
Voting equity securities issued and outstanding
|
| | 5,177,677 | |
Preferred shares
|
| | nil | |
Securities convertible or exercisable into voting equity securities – stock options
|
| | 524,324 | |
Securities convertible or exercisable into voting equity securities – warrants
|
| | nil | |
| | |
Payments due by period
|
| |||||||||||||||||||||||||||
Contractual
Obligations |
| |
Total
|
| |
Less than 1
year |
| |
2-3 years
|
| |
4-5 years
|
| |
Greater than
5 years |
| |||||||||||||||
Operating Lease Obligations
|
| | | $ | 543,300 | | | | | $ | 211,100 | | | | | $ | 266,000 | | | | | $ | 66,200 | | | | | $ | nil | | |
Bank Indebtedness
|
| | | $ | 283,813 | | | | | $ | 283,813 | | | | | $ | nil | | | | | $ | nil | | | | | $ | nil | | |
Other Long-Term Liabilities Reflected on the
Registrant’s Balance Sheet under IFRS |
| | | $ | 1,195,994 | | | | | $ | 22,005 | | | | | $ | 1,086,753 | | | | | $ | 15,632 | | | | | $ | 71,604 | | |
Name, Province/State and
Country of Residence |
| |
Age
|
| |
Position
|
| |
Director/Officer
Since |
|
Alexandre Mongeon
Quebec, Canada |
| | 44 | | | Chief Executive Officer and Chairman | | | August 2014 | |
Patrick Bobby
Quebec, Canada |
| | 49 | | |
Chief Operating Officer, Secretary and Director
|
| | August 2014 | |
Kulwant Sandher
British Columbia, Canada |
| | 58 | | | Chief Financial Officer | | | July 2019 | |
Robert Ghetti
Quebec, Canada |
| | 57 | | | Vice Chairman | | | August 2012 | |
Renaud Cloutier
Quebec, Canada |
| | 56 | | | Director | | | September 2020 | |
Steve P. Barrenechea
California, United States |
| | 62 | | | Director | | | September 2020 | |
Luisa Ingargiola
Florida, United States |
| | 57 | | | Director | | | September 2020 | |
Named Executive Officer
and Principal Position |
| |
Year
|
| |
Salary
($) |
| |
Share-
based awards ($) |
| |
Option-
based awards ($)(1) |
| |
Annual
Incentive Plan ($) |
| |
Long-term
Incentive Plan ($) |
| |
Pension
Value ($) |
| |
All Other
Compensation ($) |
| |
Total
Compensation ($) |
| |||||||||||||||||||||||||||
Alexandre Mongeon
|
| | | | 2020 | | | | | | 136,262 | | | | | | Nil | | | | | | 88,940 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 225,202 | | |
Chief Executive Officer
|
| | | | 2019 | | | | | | 111,635 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 111,635 | | |
Patrick Bobby
|
| | | | 2020 | | | | | | 102,606 | | | | | | Nil | | | | | | 88,940 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 191,546 | | |
Chief Operating Officer
|
| | | | 2019 | | | | | | 96,116 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 96,116 | | |
Kulwant Sandher
|
| | | | 2020 | | | | | | 70,000 | | | | | | 761,442(2) | | | | | | 81,529 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 912,971 | | |
Chief Financial Officer
|
| | | | 2019 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | |
Plan Category
|
| |
Number of securities to
be issued upon exercise of outstanding options, warrants and rights (a) |
| |
Weighted-
average exercise price of outstanding options, warrants and rights ($) (b) |
| |
Number of
securities remaining available for future issuance under equity compensation plans (excluding Securities reflected in column (a)) (c) |
| |||||||||
Equity compensation plans approved by securityholders
|
| | | | — | | | | | $ | — | | | | | | — | | |
Equity compensation plans not approved by securityholders
|
| | | | 524,324 | | | | | $ | 3.415 | | | | | | 88,288 | | |
Total
|
| | | | 524,324 | | | | | $ | 3.415 | | | | | | 88,288 | | |
| | |
Option – based Awards
|
| | | | |||||||||
Named Executive Officer or Director
|
| |
Number of securities
underlying unexercised options (#)(1) |
| |
Option exercise
price ($) |
| |
Option expiration
date |
| ||||||
Alexandre Mongeon, Chief Executive Officer
|
| | | | 64,864 | | | | | $ | 3.70 | | | |
May 27, 2024
|
|
Patrick Bobby, Chief Operating Officer
|
| | | | 64,864 | | | | | $ | 3.70 | | | |
May 27, 2024
|
|
Kulwant Sandher, Chief Financial Officer
|
| | | | 59,459 | | | | | $ | 3.70 | | | |
May 27, 2024
|
|
Named Executive Officer and Director
|
| |
Option-based Awards – Value Vested
During the Year ($)(1) |
| |
Non-Equity Incentive
Plan Compensation – Value Vested During the Year ($) |
| |||
Alexandre Mongeon, Chief Executive Officer
|
| | | $ | Nil | | | | | |
Patrick Bobby, Chief Operating Officer
|
| | | $ | Nil | | | | | |
Kulwant Sandher, Chief Financial Officer
|
| | | $ | Nil | | | | | |
Name
|
| |
Common
Shares Beneficially Owned(1) |
| |
Percentage of
Common Shares Beneficially Owned(2) |
| |
Percentage of
Common Shares Beneficially Owned After Offering(2) |
| |||||||||
Directors and Executive Officers: | | | | | | | | | | | | | | | | | | | |
Alexandre Mongeon, Chief Executive Officer, Director(3)(4)
|
| | | | 2,202,597 | | | | | | 42.0% | | | | | | 31.9% | | |
Patrick Bobby, Chief Operating Officer, Director(3)(5)
|
| | | | 2,201,181 | | | | | | 42.0% | | | | | | 31.9% | | |
Kulwant Sandher, Chief Financial Officer(6)
|
| | | | 240,473 | | | | | | 4.6% | | | | | | 3.5% | | |
Robert Ghetti, Director(7)
|
| | | | 1,135,302 | | | | | | 21.6% | | | | | | 16.4% | | |
Renaud Cloutier, Director
|
| | | | 0 | | | | | | — | | | | | | — | | |
Steve P. Barrenechea, Director
|
| | | | 0 | | | | | | — | | | | | | — | | |
Luisa Ingargiola, Director
|
| | | | 0 | | | | | | — | | | | | | — | | |
Directors and Executive Officers as a Group (Seven Persons)
|
| | | | 3,608,474 | | | | | | 67.2% | | | | | | 51.3% | | |
Other 5% or more Shareholders: | | | | | | | | | | | | | | | | | | | |
Michel Amyot(8)
|
| | | | 567,481 | | | | | | 10.9% | | | | | | 8.3% | | |
James Stafford
|
| | | | 547,298 | | | | | | 10.6% | | | | | | 8.0% | | |
|
Non-Current advances from shareholders or indirect shareholders subordinated in favor of the Company’s lender:
|
| | | | | | |
|
Alexandre Mongeon
|
| | | $ | 141,972 | | |
|
Patrick Bobby
|
| | | $ | 139,472 | | |
|
Robert Ghetti
|
| | | $ | 64,749 | | |
|
Immobilier R. Ghetti Inc.
|
| | | $ | 16,487 | | |
|
Société de Placement Robert Ghetti Inc.
|
| | | $ | 279,376 | | |
|
Gestion Toyma
|
| | | $ | 151,500 | | |
|
Total:
|
| | | $ | 793,556 | | |
| Current advances from shareholders or indirect shareholders: | | | | | | | |
|
9335-1427 Quebec Inc.
|
| | | $ | 129,932 | | |
|
Gestion Toyma Inc.
|
| | | $ | 24,394 | | |
|
Alexandre Mongeon
|
| | | $ | 14,201 | | |
|
Total:
|
| | | | 168,527 | | |
| Due to shareholders and included in Trade and other payables | | | | | | | |
|
Alexandre Mongeon
|
| | | $ | 39,668 | | |
|
Patrick Bobby
|
| | | $ | 5,091 | | |
|
Total:
|
| | | $ | 44,759 | | |
Name of Underwriter
|
| |
Number of common shares
|
|
ThinkEquity, a division of Fordham Financial Management, Inc.
|
| | | |
Total
|
| | | |
| | |
Per Share
|
| |
Total Without
Over-Allotment Option |
| |
Total With Full
Over-Allotment Option |
| |||||||||
Public offering price
|
| | | US$ | | | | | | US$ | | | | | | US$ | | | |
Underwriting discount (7%)
|
| | | US$ | | | | | | US$ | | | | | | US$ | | | |
Non-accountable expense allowance (1%)
|
| | | US$ | | | | | | US$ | | | | | | US$ | | | |
Proceeds, before expenses, to us
|
| | | US$ | | | | | | US$ | | | | | | US$ | | | |
|
Securities and Exchange Commission Registration Fee
|
| | | US$ | 2,513 | | |
|
Nasdaq Capital Market Listing Fee
|
| | | US$ | 48,000 | | |
|
FINRA
|
| | | US$ | 2,905 | | |
|
Legal Fees and Expenses
|
| | | US$ | 154,113 | | |
|
Accounting Fees and Expenses
|
| | | US$ | 20,000 | | |
|
Printing and Engraving Expenses
|
| | | US$ | 5,000 | | |
|
Miscellaneous Expenses
|
| | | US$ | 25,000 | | |
|
Total Expenses
|
| | | US$ | 257,531 | | |
| Annual Financial Statements for the Year Ended August 31, 2019 | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
|
Amended Condensed Interim Financial Statements for the Six-Month Period Ended February 29, 2020
and February 28, 2019 |
| | | | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | |
|
|
| |
Tel: 514-931-0841
Fax: 514-931-9491 |
| |
BDO Canada s.r.l./S.E.N.C.R.L./LLP
1000 De La Gachetière Street West Suite 200 |
|
| | | | www.bdo.ca | | | Montréal, Québec H3B 4W5 | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Assets | | | | | | | | | | | | | |
Current | | | | | | | | | | | | | |
Trade and other receivables (note 7)
|
| | |
|
101,784
|
| | | | | 59,248 | | |
Inventories (note 8)
|
| | |
|
818,811
|
| | | | | 931,706 | | |
Cash held in trust
|
| | |
|
37,500
|
| | | | | — | | |
Prepaid expenses
|
| | |
|
8,595
|
| | | | | — | | |
Grants and investment tax credits receivable
|
| | |
|
400,079
|
| | | | | 518,960 | | |
Term deposit
|
| | |
|
—
|
| | | | | 68,368 | | |
Total current assets
|
| | |
|
1,366,769
|
| | | | | 1,578,282 | | |
Advances to related parties (note 13)
|
| | |
|
40,310
|
| | | | | 38,710 | | |
Property and equipment (note 9)
|
| | |
|
507,483
|
| | | | | 355,307 | | |
Deferred income taxes (note 18)
|
| | |
|
—
|
| | | | | 20,895 | | |
Total non-current assets
|
| | |
|
547,793
|
| | | | | 414,912 | | |
Total assets
|
| | |
|
1,914,562
|
| | | | | 1,993,194 | | |
Liabilities | | | | | | | | | | | | | |
Current | | | | | | | | | | | | | |
Bank indebtedness (note 10)
|
| | |
|
283,813
|
| | | | | 87,937 | | |
Trade and other payables (note 11)
|
| | |
|
376,303
|
| | | | | 472,437 | | |
Contract liabilities (note 12)
|
| | |
|
180,072
|
| | | | | 676,070 | | |
Advances from related parties (note 13)
|
| | |
|
597,341
|
| | | | | 601,282 | | |
Current portion of long-term debt (note 14)
|
| | |
|
17,628
|
| | | | | 52,552 | | |
Current portion of obligation under finance lease (note 15)
|
| | |
|
4,377
|
| | | | | — | | |
Total current liabilities
|
| | |
|
1,459,534
|
| | | | | 1,890,278 | | |
Non-current | | | | | | | | | | | | | |
Advances from related parties (note 13)
|
| | |
|
452,723
|
| | | | | 444,732 | | |
Long-term debt (note 14)
|
| | |
|
125,862
|
| | | | | 60,977 | | |
Finance lease (note 15)
|
| | |
|
3,839
|
| | | | | — | | |
Deferred income taxes (note 18)
|
| | |
|
4,906
|
| | | | | — | | |
Total non-current liabilities
|
| | |
|
587,330
|
| | | | | 505,709 | | |
Total liabilities
|
| | |
|
2,046,864
|
| | | | | 2,395,987 | | |
Commitments (note 16) | | | | | | | | | | | | | |
Shareholders’ deficiency | | | | | | | | | | | | | |
Capital stock (note 17)
|
| | |
|
525
|
| | | | | 600 | | |
Capital stock to be issued (note 17)
|
| | |
|
37,500
|
| | | | | — | | |
Deficit
|
| | |
|
(170,327)
|
| | | | | (403,393) | | |
| | | |
|
(132,302)
|
| | | | | (402,793) | | |
| | | |
|
1,914,562
|
| | | | | 1,993,194 | | |
| | |
Capital stock
|
| |
Capital
stock to be issued $ |
| |
Deficit
$ |
| |
Total
$ |
| ||||||||||||||||||
| | |
units
(Restated) (note 1) |
| |
$
|
| ||||||||||||||||||||||||
Shareholders’ deficiency as at August 31, 2017
|
| | |
|
3,743,491
|
| | | | | 600 | | | | | | — | | | | |
|
(217,545)
|
| | | |
|
(216,945)
|
| |
Net and comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (185,848) | | | | | | (185,848) | | |
Shareholders’ deficiency as at August 31, 2018
|
| | |
|
3,743,491
|
| | | |
|
600
|
| | | | | — | | | | |
|
(403,393)
|
| | | |
|
(402,793)
|
| |
Net and comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 233,066 | | | | | | 233,066 | | |
Repurchase of capital stock (note 17)
|
| | | | (467,936) | | | | | | (75) | | | | | | — | | | | | | — | | | | | | (75) | | |
Subscriptions to capital stock received in advance of issuance (note 17)
|
| | | | — | | | | | | — | | | | | | 37,500 | | | | | | — | | | | | | 37,500 | | |
Shareholders’ deficiency as at August 31, 2019
|
| | | | 3,275,555 | | | | | | 525 | | | | | | 37,500 | | | | | | (170,327) | | | | | | (132,302) | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Revenues (notes 13 and 21)
|
| | |
|
2,869,377
|
| | | | | 1,271,566 | | |
Cost of sales (note 22)
|
| | |
|
1,584,013
|
| | | | | 769,839 | | |
Gross profit
|
| | |
|
1,285,364
|
| | | | | 501,727 | | |
Expenses | | | | | | | | | | | | | |
Office salaries and benefits
|
| | |
|
372,961
|
| | | | | 105,101 | | |
Rent
|
| | |
|
204,596
|
| | | | | 108,137 | | |
Professional fees
|
| | |
|
111,653
|
| | | | | 104,294 | | |
Travel and entertainment
|
| | |
|
30,199
|
| | | | | 23,295 | | |
Advertising and promotion
|
| | |
|
157,276
|
| | | | | 111,198 | | |
Office and general
|
| | |
|
69,737
|
| | | | | 55,325 | | |
Impairment of trade and other receivables
|
| | |
|
3,729
|
| | | | | — | | |
Interest and bank charges
|
| | |
|
18,788
|
| | | | | 17,013 | | |
Interest on long-term debt and finance lease
|
| | |
|
15,669
|
| | | | | 22,938 | | |
Foreign exchange
|
| | |
|
1,790
|
| | | | | (11,959) | | |
Depreciation
|
| | |
|
1,513
|
| | | | | 500 | | |
| | | |
|
987,911
|
| | | | | 535,842 | | |
Earnings (loss) before income taxes
|
| | |
|
297,453
|
| | | | | (34,115) | | |
Income taxes | | | | | | | | | | | | | |
Current
|
| | |
|
38,586
|
| | | | | 65,023 | | |
Deferred
|
| | |
|
25,801
|
| | | | | 86,710 | | |
| | | |
|
64,387
|
| | | | | 151,733 | | |
Net and comprehensive income (loss)
|
| | |
|
233,066
|
| | | | | (185,848) | | |
| | |
(Restated)
(note 1) |
| |
(Restated)
(note 1) |
| ||||||
Weighted average shares outstanding
|
| | |
|
3,730,611
|
| | | | | 3,743,491 | | |
Basic and diluted income (loss) per share
|
| | |
|
0.06
|
| | | | | (0.05) | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Operating activities | | | | | | | | | | | | | |
Net and comprehensive income (loss)
|
| | |
|
233,066
|
| | | | | (185,848) | | |
Depreciation
|
| | |
|
35,109
|
| | | | | 30,371 | | |
Accretion on long-term debt
|
| | |
|
5,143
|
| | | | | 9,309 | | |
Deferred income taxes
|
| | |
|
25,801
|
| | | | | 86,710 | | |
| | | |
|
299,119
|
| | | | | (59,458) | | |
Net change in non-cash working capital items Trade and other receivables
|
| | |
|
(42,536)
|
| | | | | (23,414) | | |
Inventories
|
| | |
|
112,895
|
| | | | | (507,093) | | |
Grants and investment tax credits receivable
|
| | |
|
118,881
|
| | | | | 4,047 | | |
Prepaid expenses
|
| | |
|
(8,595)
|
| | | | | 5,142 | | |
Trade and other payables
|
| | |
|
(96,134)
|
| | | | | 105,253 | | |
Contract liabilities
|
| | |
|
(495,998)
|
| | | | | 600,560 | | |
| | | |
|
(411,487)
|
| | | | | 184,495 | | |
| | | |
|
(112,368)
|
| | | | | 125,037 | | |
Investing activities | | | | | | | | | | | | | |
Additions to property and equipment
|
| | |
|
(175,952)
|
| | | | | (1,755) | | |
Advances to related parties
|
| | |
|
(1,600)
|
| | | | | (38,252) | | |
Term deposit
|
| | |
|
68,368
|
| | | | | (68,368) | | |
| | | |
|
(109,184)
|
| | | | | (108,375) | | |
Financing activities | | | | | | | | | | | | | |
Change in bank indebtedness
|
| | |
|
195,876
|
| | | | | (5,795) | | |
Increase in long-term debt
|
| | |
|
84,818
|
| | | | | — | | |
Repayment of long-term debt
|
| | |
|
(60,000)
|
| | | | | (83,326) | | |
Repayment of obligations under finance leases
|
| | |
|
(3,117)
|
| | | | | — | | |
Repurchase of capital stock
|
| | |
|
(75)
|
| | | | | — | | |
Advances from related parties
|
| | |
|
4,050
|
| | | | | 72,459 | | |
Subscriptions to capital stock received in advance of issuance
|
| | |
|
37,500
|
| | | | | — | | |
| | | |
|
259,052
|
| | | | | (16,662) | | |
Increase in cash and cash equivalents
|
| | |
|
37,500
|
| | | | | — | | |
Cash and cash equivalents – end of year
|
| | | | 37,500 | | | | |
|
—
|
| |
Cash and cash equivalents | | | | | | | | | | | | | |
Cash held in trust
|
| | |
|
37,500
|
| | | | | — | | |
| | |
Methods
|
| |
Rates and period
|
|
Computer equipment
|
| |
Declining balance method
|
| |
55%
|
|
Machinery and equipment
|
| |
Declining balance method
|
| |
20%
|
|
Rolling stock
|
| |
Declining balance method
|
| |
30%
|
|
Moulds
|
| | Straight-line method | | |
25 years
|
|
| | |
2019
$ |
| |
2018
$ |
| ||||||
Trade receivable
|
| | |
|
73,597
|
| | | | | 9,298 | | |
Allowance for expected credit losses
|
| | |
|
—
|
| | | | | (3,196) | | |
Sales taxes receivable
|
| | |
|
28,187
|
| | | | | 53,146 | | |
| | | |
|
101,784
|
| | | | | 59,248 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
0 – 30
|
| | |
|
67,887
|
| | | | | — | | |
31 – 60
|
| | |
|
—
|
| | | | | 1,714 | | |
61 – 90
|
| | |
|
—
|
| | | |
|
—
|
| |
91 and over
|
| | |
|
5,710
|
| | | | | — | | |
| | | |
|
73,597
|
| | | | | 1,714 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Opening balance
|
| | |
|
3,196
|
| | | | | — | | |
Provision recognized
|
| | |
|
530
|
| | | | | 3,196 | | |
Receivables written-off as uncollectable
|
| | |
|
(3,726)
|
| | | | | — | | |
Closing balance
|
| | |
|
—
|
| | | | | 3,196 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Raw materials
|
| | |
|
301,939
|
| | | | | 175,620 | | |
Work-in-process
|
| | |
|
147,388
|
| | | | | 361,047 | | |
Finished goods
|
| | |
|
369,484
|
| | | | | 395,039 | | |
| | | |
|
818,811
|
| | | | | 931,706 | | |
| | |
Machinery
and equipment $ |
| |
Rolling
stock $ |
| |
Computer
equipment $ |
| |
Computer
equipment under lease $ |
| |
Moulds
$ |
| |
Total
$ |
| ||||||||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at August 31, 2017
|
| | | | 187,850 | | | | | | 19,875 | | | | | | 758 | | | | | | — | | | | | | 305,295 | | | | | | 513,778 | | |
Additions
|
| | | | — | | | | | | — | | | | | | 1,755 | | | | | | — | | | | | | — | | | | | | 1,755 | | |
Balance at August 31, 2018
|
| | | | 187,850 | | | | | | 19,875 | | | | | | 2,513 | | | | | | — | | | | | | 305,295 | | | | | | 515,533 | | |
Additions
|
| | | | — | | | | | | 5,800 | | | | | | 2,918 | | | | | | 11,333 | | | | | | 167,234 | | | | | | 187,285 | | |
Balance at August 31, 2019
|
| | | | 187,850 | | | | | | 25,675 | | | | | | 5,431 | | | | | | 11,333 | | | | | | 472,529 | | | | | | 702,818 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at August 31, 2017
|
| | | | 110,324 | | | | | | 12,700 | | | | | | 726 | | | | | | — | | | | | | 6,105 | | | | | | 129,855 | | |
Depreciation
|
| | | | 15,505 | | | | | | 2,153 | | | | | | 500 | | | | | | — | | | | | | 12,213 | | | | | | 30,371 | | |
Balance at August 31, 2018
|
| | | | 125,829 | | | | | | 14,853 | | | | | | 1,226 | | | | | | — | | | | | | 18,318 | | | | | | 160,226 | | |
Depreciation
|
| | | | 12,404 | | | | | | 2,377 | | | | | | 1,513 | | | | | | 453 | | | | | | 18,362 | | | | | | 35,109 | | |
Balance at August 31, 2019
|
| | | | 138,233 | | | | | | 17,230 | | | | | | 2,739 | | | | | | 453 | | | | | | 36,680 | | | | | | 195,335 | | |
Net carrying amount | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As at August 31, 2018
|
| | | | 62,021 | | | | | | 5,022 | | | | | | 1,287 | | | | | | — | | | | | | 286,977 | | | | | | 355,307 | | |
As at August 31, 2019
|
| | | | 49,617 | | | | | | 8,445 | | | | | | 2,692 | | | | | | 10,880 | | | | | | 435,849 | | | | | | 507,483 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Trade payable
|
| | |
|
372,217
|
| | | | | 469,231 | | |
Government remittances
|
| | |
|
4,086
|
| | | | | 3,206 | | |
| | | |
|
376,303
|
| | | | | 472,437 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Opening balance
|
| | |
|
676,070
|
| | | | | 75,509 | | |
Payments received in advance
|
| | |
|
140,872
|
| | | | | 676,070 | | |
Transferred to revenues
|
| | |
|
(636,870)
|
| | | | | (75,509) | | |
Closing balance
|
| | |
|
180,072
|
| | | | | 676,070 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Revenues | | | | | | | | | | | | | |
Sales of boats | | | | | | | | | | | | | |
EBR Ltd.
|
| | |
|
429,132
|
| | | | | 327,932 | | |
Sales of parts and boat maintenance | | | | | | | | | | | | | |
EBR Ltd.
|
| | |
|
26,399
|
| | | | | 42,187 | | |
Claude Beaulac
|
| | |
|
—
|
| | | | | 1,740 | | |
Other | | | | | | | | | | | | | |
EBR Ltd.
|
| | |
|
—
|
| | | | | 2,600 | | |
7858078 Canada Inc
|
| | |
|
5,000
|
| | | | | — | | |
Expenses | | | | | | | | | | | | | |
Rent expense | | | | | | | | | | | | | |
California Electric Boat Company Inc.
|
| | |
|
143,376
|
| | | | | 35,056 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Advances to related party | | | | | | | | | | | | | |
California Electric Boat Company Inc.
|
| | |
|
40,310
|
| | | | | 38,710 | | |
Non-current advances from related parties | | | | | | | | | | | | | |
Alexandre Mongeon (subordinated in favor of the Company’s lender)
|
| | |
|
81,061
|
| | | | | 81,061 | | |
Patrick Bobby (subordinated in favor of the Company’s lender)
|
| | |
|
82,534
|
| | | | | 82,534 | | |
Robert Ghetti (subordinated in favor of the Company’s lender)
|
| | |
|
45,215
|
| | | | | 45,215 | | |
Immobilier R. Ghetti Inc. (subordinated in favor of the Company’s lender)
|
| | |
|
1,487
|
| | | | | 1,487 | | |
Société de Placement Robert Ghetti Inc. (subordinated in favor of the Company’s lender)
|
| | |
|
242,426
|
| | | | | 234,426 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Current advances from related parties | | | | | | | | | | | | | |
9335-1427 Quebec Inc.
|
| | |
|
104,931
|
| | | | | 100,956 | | |
Alexandre Mongeon
|
| | |
|
60,911
|
| | | | | 60,911 | | |
Patrick Bobby
|
| | |
|
56,939
|
| | | | | 56,939 | | |
Robert Ghetti
|
| | |
|
19,535
|
| | | | | 19,535 | | |
Immobilier R. Ghetti Inc.
|
| | |
|
15,000
|
| | | | | 15,000 | | |
Société de Placement Robert Ghetti Inc.
|
| | |
|
36,950
|
| | | | | 44,950 | | |
Gestion Toyma Inc.
|
| | |
|
151,500
|
| | | | | 151,500 | | |
Entreprises Claude Beaulac Inc. (former shareholder)
|
| | |
|
151,575
|
| | | | | 101,000 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Gestion Moka Inc. (former shareholder)
|
| | |
|
—
|
| | | | | 50,500 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Loan from Canada Economic Development for Quebec Regions, non-interest bearing,
repayable in monthly instalments of $1,667 starting July 2018 and maturing in June 2023. The loan was discounted using an effective interest rate of 8.85%(a) |
| | |
|
58,672
|
| | | | | 73,533 | | |
Term loan, bearing interest at prime rate plus 6%, repaid during the year(b)
|
| | |
|
—
|
| | | | | 39,996 | | |
Term loan, bearing interest at 6.24%, repayable in monthly instalments of $630, including principal and interest, and maturing in December 2038
|
| | |
|
84,818
|
| | | | | — | | |
| | | |
|
143,490
|
| | | | | 113,529 | | |
Current portion of long-term debt
|
| | |
|
17,628
|
| | | | | 52,552 | | |
| | | |
|
125,862
|
| | | | | 60,977 | | |
| | |
$
|
| |||
2020
|
| | |
|
17,628
|
| |
2021
|
| | |
|
16,485
|
| |
2022
|
| | |
|
15,462
|
| |
2023
|
| | |
|
12,650
|
| |
2024
|
| | |
|
2,982
|
| |
Thereafter
|
| | |
|
71,604
|
| |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Finance lease, bearing interest at 9.34%, secured by the leased equipment, payable in
monthly instalments of $365 including principal and interest, maturing in November 2022 |
| | |
|
8,216
|
| | | | | — | | |
Current portion of obligation under finance lease
|
| | |
|
4,377
|
| | | | | — | | |
| | | |
|
3,839
|
| | | | | — | | |
| | |
$
|
| |||
2020
|
| | |
|
4,377
|
| |
2021
|
| | |
|
4,377
|
| |
2022
|
| | |
|
365
|
| |
| | | | | 9,119 | | |
Interest included in instalments
|
| | |
|
903
|
| |
| | | | | 8,216 | | |
| | |
Equipment
$ |
| |
Premise
leases (California Electric Boat Company Inc.) $ |
| |
EB Rentals
$ |
| |||||||||
2020
|
| | |
|
12,700
|
| | | |
|
138,700
|
| | | |
|
59,700
|
| |
2021
|
| | |
|
12,800
|
| | | |
|
138,700
|
| | | |
|
—
|
| |
2022
|
| | |
|
1,500
|
| | | |
|
113,000
|
| | | |
|
—
|
| |
2023
|
| | |
|
—
|
| | | |
|
36,100
|
| | | |
|
—
|
| |
2024
|
| | |
|
—
|
| | | |
|
30,100
|
| | | |
|
—
|
| |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Issued – 3,275,555 (2018 – 3,743,491) Class A shares
|
| | |
|
525
|
| | | | | 600 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Income taxes at the applicable tax rate of 15% (2018 – 17%)
|
| | |
|
44,618
|
| | | | | (5,800) | | |
Permanent differences
|
| | |
|
(6,032)
|
| | | | | 70,823 | | |
Temporary differences
|
| | |
|
25,801
|
| | | | | 86,710 | | |
Income tax expense
|
| | |
|
64,387
|
| | | | | 151,733 | | |
| | |
Balance as at
August 31, 2018 $ |
| |
Recognized
in profit and loss $ |
| |
Balance as at
August 31, 2019 $ |
| |||||||||
Temporary differences | | | | | | | | | | | | | | | | | | | |
Property and equipment
|
| | | | (26,389) | | | | | | (2,102) | | | | |
|
(28,491)
|
| |
Research and development
|
| | | | 47,284 | | | | | | (23,699) | | | | |
|
23,585
|
| |
Deferred tax (liability) asset
|
| | | | 20,895 | | | | | | (25,801) | | | | |
|
(4,906)
|
| |
|
| | |
Balance as at
August 31, 2017 $ |
| |
Recognized
in profit and loss $ |
| |
Balance as at
August 31, 2018 $ |
| |||||||||
Temporary differences | | | | | | | | | | | | | | | | | | | |
Losses carried forward
|
| | | | 62,736 | | | | | | (62,736) | | | | | | — | | |
Property and equipment
|
| | | | (12,629) | | | | | | (13,760) | | | | | | (26,389) | | |
Research and development
|
| | | | 57,498 | | | | | | (10,214) | | | | | | 47,284 | | |
Deferred tax (liability) asset
|
| | | | 107,605 | | | | | | (86,710) | | | | | | 20,895 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Sale of boats
|
| | |
|
2,664,001
|
| | | | | 1,036,379 | | |
Sales of parts and boat maintenance
|
| | |
|
171,217
|
| | | | | 222,945 | | |
Commission
|
| | |
|
—
|
| | | | | 6,052 | | |
Other
|
| | |
|
34,159
|
| | | | | 6,190 | | |
| | | |
|
2,869,377
|
| | | | | 1,271,566 | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Inventories – beginning of year
|
| | |
|
931,706
|
| | | | | 424,613 | | |
Purchases
|
| | |
|
1,453,051
|
| | | | | 1,485,452 | | |
Salaries and benefits
|
| | |
|
297,670
|
| | | | | 301,215 | | |
Transport costs
|
| | |
|
66,328
|
| | | | | 30,652 | | |
Sub-contracting
|
| | |
|
17,870
|
| | | | | 121,205 | | |
Depreciation
|
| | |
|
33,596
|
| | | | | 29,870 | | |
Grants and investment tax credits
|
| | |
|
(397,397)
|
| | | | | (691,462) | | |
| | | |
|
2,402,824
|
| | | | | 1,701,545 | | |
Inventories – end of year
|
| | |
|
818,811
|
| | | | | 931,706 | | |
| | | |
|
1,584,013
|
| | | | | 769,839 | | |
| | |
Contractual
cash flows |
| |
Less than
one year |
| |
1 – 5 years
|
| |
Greater than
5 years |
| ||||||||||||
August 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | |
|
376,303
|
| | | |
|
376,303
|
| | | | | — | | | | | | — | | |
Advances from related parties
|
| | |
|
1,050,064
|
| | | |
|
—
|
| | | |
|
1,050,064
|
| | | |
|
—
|
| |
Long-term debt
|
| | |
|
136,810
|
| | | |
|
17,628
|
| | | |
|
47,578
|
| | | |
|
71,604
|
| |
| | | | | 1,563,177 | | | | | | 393,931 | | | | | | 1,097,642 | | | | | | 71,604 | | |
August 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 472,437 | | | | | | 472,437 | | | | | | — | | | | | | — | | |
Advances from related parties
|
| | | | 1,046,014 | | | | | | — | | | | | | 1,046,014 | | | | | | — | | |
Long-term debt
|
| | | | 113,529 | | | | | | 52,552 | | | | | | 60,977 | | | | | | — | | |
| | | | | 1,631,980 | | | | | | 524,989 | | | | | | 1,106,991 | | | | | | — | | |
| | |
2019
$ |
| |
2018
$ |
| ||||||
Additions to property and equipment by way of finance lease
|
| | |
|
11,333
|
| | | | | — | | |
| | |
Note
|
| |
As at
February 29, 2020 $ |
| |
As at
August 31, 2019 $ |
| ||||||
Assets | | | | | | | | | | | | | | | | |
Current | | | | | | | | | | | | | | | | |
Trade and other receivables
|
| | | | | | | 90,946 | | | | | | 101,784 | | |
Inventories
|
| | | | | | | 1,102,864 | | | | | | 818,811 | | |
Cash held in trust
|
| | | | | | | 89,675 | | | | | | 37,500 | | |
Prepaid expenses
|
| | | | | | | 77,163 | | | | | | 8,595 | | |
Grants and investment tax credits receivable
|
| | | | | | | 494,382 | | | | | | 400,079 | | |
Total current assets
|
| | | | | | | 1,855,030 | | | | | | 1,366,769 | | |
Non-current assets | | | | | | | | | | | | | | | | |
Advances to related parties
|
| | | | | | | — | | | | | | 40,310 | | |
Property and equipment
|
| | | | | | | 483,136 | | | | | | 507,483 | | |
Right-of-use assets
|
| |
6
|
| | | | 705,737 | | | | | | — | | |
Total non-current assets
|
| | | | | | | 1,188,873 | | | | | | 547,793 | | |
Total assets
|
| | | | | | | 3,043,903 | | | | | | 1,914,562 | | |
Liabilities | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | |
Bank indebtedness
|
| | | | | | | 278,683 | | | | | | 283,813 | | |
Trade and other payables
|
| | | | | | | 526,315 | | | | | | 376,303 | | |
Contract liabilities
|
| | | | | | | 585,060 | | | | | | 180,072 | | |
Advances from related parties
|
| | | | | | | 168,527 | | | | | | 597,341 | | |
Advances payable, non-interest bearing and repayable on demand
|
| | | | | | | 25,000 | | | | | | — | | |
Current portion of long-term debt
|
| |
8
|
| | | | 33,701 | | | | | | 17,628 | | |
Current portion of lease liabilities
|
| |
7
|
| | | | 114,600 | | | | | | — | | |
Current portion of obligation under finance lease
|
| | | | | | | — | | | | | | 4,377 | | |
Total current liabilities
|
| | | | | | | 1,731,886 | | | | | | 1,459,534 | | |
Non-current liabilities | | | | | | | | | | | | | | | | |
Advances from related parties
|
| |
11
|
| | | | 793,556 | | | | | | 452,723 | | |
Long-term debt
|
| |
8
|
| | | | 349,169 | | | | | | 125,862 | | |
Finance lease
|
| | | | | | | — | | | | | | 3,839 | | |
Deferred income taxes
|
| | | | | | | 4,906 | | | | | | 4,906 | | |
Lease liabilities
|
| |
7
|
| | | | 599,410 | | | | | | — | | |
Total non-current liabilities
|
| | | | | | | 1,747,041 | | | | | | 587,330 | | |
Total liabilities
|
| | | | | | | 3,478,927 | | | | | | 2,046,864 | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | |
Capital stock
|
| |
9
|
| | | | 213,100 | | | | | | 525 | | |
Capital stock to be issued
|
| | | | | | | — | | | | | | 37,500 | | |
Retained earnings (deficit)
|
| | | | | | | (648,124) | | | | | | (170,327) | | |
Total shareholders’ equity (deficit)
|
| | | | | | | (435,024) | | | | | | (132,302) | | |
Total liabilities and shareholders’ equity (deficit)
|
| | | | | | | 3,043,903 | | | | | | 1,914,562 | | |
Subsequent events
|
| |
15
|
| | | | | | | | | | | | |
| | | | | |
Capital stock
|
| |
Capital
stock to be issued |
| |
Deficit
|
| |
Total
|
| ||||||||||||||||||
| | |
Note
|
| |
Units
|
| |
$
|
| |
$
|
| |
$
|
| |
$
|
| |||||||||||||||
Shareholders’ deficiency as at August 31, 2018
|
| | | | | | | 600 | | | | | | 600 | | | | | | — | | | | | | (403,393) | | | | | | (402,793) | | |
Net and comprehensive income
|
| | | | | |
|
—
|
| | | | | — | | | | | | — | | | | | | 54,647 | | | | | | 54,647 | | |
Shareholders’ deficiency as at February 28, 2019
|
| | | | | | | 600 | | | | | | 600 | | | | | | — | | | | | | (348,746) | | | | | | (348,746) | | |
Shareholders’ deficiency as at August 31, 2019
|
| | | | | | | 525 | | | | | | 525 | | | | | | 37,500 | | | | | | (170,327) | | | | | | (132,302) | | |
Share issuance (pre-conversion)
|
| |
9
|
| | | | 75 | | | | | | 75 | | | | | | — | | | | | | — | | | | | | 75 | | |
Share conversion
|
| |
9
|
| | | | 3,743,491 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Share issuance
|
| |
9
|
| | | | 77,291 | | | | | | 212,500 | | | | | | (37,500) | | | | | | | | | | | | 175,000 | | |
Net and comprehensive loss
|
| | | | | | | — | | | | | | | | | | | | — | | | | | | (477,797) | | | | | | (477,797) | | |
Shareholders’ deficiency as at February 29, 2020
|
| | | | | | | 3,820,782 | | | | | | 213,100 | | | | | | — | | | | | | (648,124) | | | | | | (435,024) | | |
| | |
Note
|
| |
Three months
ended February 29, 2020 $ |
| |
Three months
ended February 28, 2019 |
| |
Six months
ended February 29, 2020 |
| |
Six months
ended February 28, 2019 |
| ||||||||||||
Revenues
|
| |
11, 12
|
| | | | 383,190 | | | | | | 332,645 | | | | | | 436,193 | | | | | | 1,271,552 | | |
Cost of sales
|
| |
13
|
| | | | 162,634 | | | | | | 156,190 | | | | | | 202,633 | | | | | | 681,708 | | |
Gross profit
|
| | | | | | | 220,556 | | | | | | 176,455 | | | | | | 233,560 | | | | | | 589,844 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Office salaries and benefits
|
| | | | | | | 92,447 | | | | | | 92,447 | | | | | | 167,603 | | | | | | 177,885 | | |
Rent
|
| | | | | | | 9,118 | | | | | | 78,052 | | | | | | 39,262 | | | | | | 131,311 | | |
Professional fees
|
| | | | | | | 138,871 | | | | | | 33,644 | | | | | | 180,895 | | | | | | 62,146 | | |
Travel and entertainment
|
| | | | | | | 16,044 | | | | | | 9,256 | | | | | | 37,945 | | | | | | 13,738 | | |
Advertising and promotion
|
| | | | | | | 75,619 | | | | | | 66,847 | | | | | | 155,599 | | | | | | 110,568 | | |
Office and general
|
| | | | | | | 39,668 | | | | | | 18,417 | | | | | | 59,602 | | | | | | 33,244 | | |
Interest and bank charges
|
| | | | | | | 2,290 | | | | | | 3,326 | | | | | | 10,614 | | | | | | 7,864 | | |
Interest on long-term debt and finance lease
|
| | | | | | | 16,049 | | | | | | 861 | | | | | | 29,744 | | | | | | 1,773 | | |
Foreign exchange
|
| | | | | | | (3,016) | | | | | | (47,237) | | | | | | (35,260) | | | | | | (19,374) | | |
Depreciation of right-of-use asset
|
| | | | | | | 32,437 | | | | | | — | | | | | | 64,076 | | | | | | — | | |
Depreciation
|
| | | | | | | 639 | | | | | | 445 | | | | | | 1,277 | | | | | | 622 | | |
| | | | | | | | 420,166 | | | | | | 256,058 | | | | | | 711,357 | | | | | | 519,777 | | |
(Loss) earnings before income taxes
|
| | | | | | | (199,609) | | | | | | (79,603) | | | | | | (477,797) | | | | | | 70,068 | | |
Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Deferred
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,421 | | |
| | | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,421 | | |
Net and comprehensive (loss) income
|
| | | | | | | (199,609) | | | | | | (79,603) | | | | | | (477,797) | | | | | | 54,647 | | |
Basic and diluted weighted average number of shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | 3,778,314 | | | | | | 3,743,491 | | | | | | 3,755,760 | | | | | | 3,743,491 | | |
Diluted
|
| | | | | | | 3,778,314 | | | | | | 3,743,491 | | | | | | 3,755,760 | | | | | | 3,743,491 | | |
Income (loss) per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | (0.05) | | | | | | (0.02) | | | | | | (0.13) | | | | | | 0.01 | | |
Diluted
|
| | | | | | | (0.05) | | | | | | (0.02) | | | | | | (0.13) | | | | | | -0.01 | | |
| | |
Note
|
| |
Six months
ended February 29, 2020 $ |
| |
Six months
ended February 28, 2019 $ |
| ||||||
Operating activities | | | | | | | | | | | | | | | | |
Net and comprehensive income (loss)
|
| | | | | | | (477,797) | | | | | | 54,647 | | |
Depreciation of property and equipment
|
| | | | | | | 19,217 | | | | | | 17,150 | | |
Depreciation of right-of-use asset
|
| | | | | | | 64,076 | | | | | | — | | |
Accretion on long-term debt and on lease liabilities
|
| | | | | | | 22,913 | | | | | | (227) | | |
Deferred income taxes
|
| | | | | | | — | | | | | | 15,421 | | |
| | | | | | | | (371,591) | | | | | | 86,991 | | |
Net change in non-cash working capital items
|
| | | | | | | | | | | | | | | |
Trade and other receivables
|
| | | | | | | 10,838 | | | | | | (88,451) | | |
Inventories
|
| | | | | | | (284,053) | | | | | | 135,751 | | |
Grants and investment tax credits receivable
|
| | | | | | | (94,303) | | | | | | 270,904 | | |
Prepaid expenses
|
| | | | | | | (68,568) | | | | | | (8,065) | | |
Trade and other payables
|
| | | | | | | 150,012 | | | | | | (142,297) | | |
Contract liabilities
|
| | | | | | | 404,988 | | | | | | (84,883) | | |
| | | | | | | | 118,914 | | | | | | 82,959 | | |
Cash provided (used) by operating activities
|
| | | | | | | (252,677) | | | | | | 169,950 | | |
Investing activities | | | | | | | | | | | | | | | | |
Additions to property and equipment
|
| | | | | | | (5,750) | | | | | | (132,705) | | |
Advances to related parties
|
| | | | | | | 40,310 | | | | | | (1,600) | | |
Term deposit
|
| | | | | | | — | | | | | | 68,368 | | |
Cash provided (used) by investing activities
|
| | | | | | | 34,560 | | | | | | (65,937) | | |
Financing activities | | | | | | | | | | | | | | | | |
Change in bank indebtedness
|
| | | | | | | (5,130) | | | | | | (87,937) | | |
Increase in long-term debt
|
| | | | | | | 250,000 | | | | | | — | | |
Repayment of long-term debt
|
| | | | | | | (10,620) | | | | | | (49,998) | | |
Repayment of obligation under finance lease
|
| | | | | | | — | | | | | | (1,039) | | |
Repayment of lease liability
|
| | | | | | | (76,052) | | | | | | — | | |
Advances from related parties
|
| | | | | | | (87,981) | | | | | | 17,800 | | |
Advance payable
|
| | | | | | | 25,000 | | | | | | 50,000 | | |
Capital stock issued
|
| | | | | | | 175,075 | | | | | | — | | |
Cash provided (used) by investing activities
|
| | | | | | | 270,292 | | | | | | (71,174) | | |
Increase in cash and cash equivalents
|
| | | | | | | 52,175 | | | | | | 32,839 | | |
Cash and cash equivalents – beginning of period
|
| | | | | |
|
37,500
|
| | | |
|
—
|
| |
Cash and cash equivalents – end of period
|
| | | | | | | 89,675 | | | | | | 32,839 | | |
Non-cash activities include: | | | | | | | | | | | | | | | | |
Additions to property and equipment
|
| | | | | | | | | | | | | (11,333) | | |
Finance lease
|
| | | | | | | | | | | | | 11,333 | | |
| | |
August 31,
2019 $ |
| |
Impact of
adoption of IFRS 16 $ |
| |
September 1,
2019 $ |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Noncurrent assets | | | | | | | | | | | | | | | | | | | |
Property and equipment
|
| | | | 507,483 | | | | | | (10,880) | | | | | | 496,603 | | |
Right-of-use assets
|
| | | | — | | | | | | 760,217 | | | | | | 760,217 | | |
Total noncurrent assets
|
| | | | 507,483 | | | | | | 749,337 | | | | | | 1,256,820 | | |
Total assets
|
| | | | 507,483 | | | | | | 749,337 | | | | | | 1,256,820 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | |
Current portion of obligation under finance lease
|
| | | | 4,377 | | | | | | (4,377) | | | | | | — | | |
Current portion of lease liabilities
|
| | | | — | | | | | | 106,724 | | | | | | 106,724 | | |
Total current liabilities
|
| | | | 4,377 | | | | | | 102,347 | | | | | | 106,724 | | |
Noncurrent liabilities | | | | | | | | | | | | | | | | | | | |
Finance lease
|
| | | | 3,839 | | | | | | (3,839) | | | | | | — | | |
Lease liabilities
|
| | | | — | | | | | | 650,829 | | | | | | 650,829 | | |
Total noncurrent liabilities
|
| | | | 3,839 | | | | | | 646,990 | | | | | | 650,829 | | |
Total liabilities
|
| | | | 8,216 | | | | | | 749,337 | | | | | | 757,553 | | |
| | |
$
|
| |||
Operating lease commitments as at August 31, 2019
|
| | | | 543,300 | | |
Finance leases as at August 31, 2019
|
| | | | 8,216 | | |
Lease payments relating to periods not included in operating lease commitments as at August 31, 2019
|
| | | | 367,065 | | |
Effect of discounting using the weighted average incremental borrowing rate
|
| | | | (161,028) | | |
Lease liability recognized as at September 1, 2019
|
| | | | 757,553 | | |
| | |
Premises
$ |
| |
Computer
equipment $ |
| |
Rolling stock
$ |
| |
Total
$ |
| ||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at August 31, 2019
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Impact of adoption of IFRS 16
|
| | |
|
737,066
|
| | | |
|
11,333
|
| | | |
|
12,271
|
| | | |
|
760,670
|
| |
Additions
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
9,596
|
| | | |
|
9,596
|
| |
Balance at February 29, 2020
|
| | | | 737,066 | | | | | | 11,333 | | | | | | 21,867 | | | | | | 770,266 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at August 31, 2019
|
| | |
|
—
|
| | | | | | | | | |
|
—
|
| | | |
|
—
|
| |
Impact of adoption of IFRS 16
|
| | |
|
—
|
| | | |
|
453
|
| | | |
|
—
|
| | | |
|
453
|
| |
Depreciation
|
| | |
|
58,903
|
| | | |
|
227
|
| | | |
|
4,946
|
| | | |
|
64,076
|
| |
Balance at February 29, 2020
|
| | | | 58,903 | | | | | | 680 | | | | | | 4,946 | | | | | | 64,529 | | |
Net carrying amount | | | | | | | | | | | | | | | | | | | | | | | | | |
As at February 29, 2020
|
| | | | 678,163 | | | | | | 10,653 | | | | | | 16,921 | | | | | | 705,737 | | |
| | |
$
|
| |||
Balance at August 31, 2019
|
| | |
|
—
|
| |
Impact of adoption of IFRS 16
|
| | |
|
757,553
|
| |
Additions
|
| | |
|
9,596
|
| |
Repayment
|
| | |
|
(76,052)
|
| |
Accretion of interest
|
| | |
|
22,913
|
| |
Balance at February 29, 2020
|
| | | | 714,010 | | |
Current
|
| | |
|
114,600
|
| |
Noncurrent
|
| | |
|
599,510
|
| |
| | |
$
|
| |||
Less than one year
|
| | |
|
151,024
|
| |
One year to five years
|
| | |
|
583,185
|
| |
Greater than five years
|
| | |
|
111,872
|
| |
| | | | | 846,081 | | |
| | |
As at
February 29, 2020 $ |
| |
As at
August 31, 2019 $ |
| ||||||
Loan from Canada Economic Development for Quebec Regions, non-interest
bearing, repayable in monthly instalments of $1,667 starting July 2018 and maturing in June 2023. The loan was discounted using an effective interest rate of 8.85%(a) |
| | | | 52,829 | | | | | | 58,672 | | |
Term loan, bearing interest at 6.24%, repayable in monthly instalments of $630, including principal and interest, and maturing in December 2038
|
| | | | 80,041 | | | | | | 84,818 | | |
Term loan, bearing interest at prime plus 3.68%, repayable in monthly principal payments of $4,165 starting 12 months after the original disbursement date(b)
|
| | | | 250,000 | | | | | | — | | |
| | | | | 382,870 | | | | | | 143,490 | | |
Current portion of long-term debt
|
| | | | 33,701 | | | | | | 17,628 | | |
| | | | | 349,169 | | | | | | 125,862 | | |
| | |
As at
February 29, 2020 $ |
| |
As at
August 31, 2019 $ |
| ||||||
3,820,782 Voting Common Shares
|
| | | | 213,100 | | | | | | — | | |
Nil (2019 – 525) Class A shares
|
| | | | — | | | | | | 525 | | |
| | | | | 213,100 | | | | | | 525 | | |
| | |
Three months ended
|
| |
Six months ended
|
| ||||||||||||||||||
| | |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| ||||||||||||
Salaries
|
| | |
|
55,000
|
| | | | | 52,000 | | | | |
|
109,000
|
| | | | | 104,000 | | |
| | |
Three months ended
|
| |
Six months ended
|
| ||||||||||||||||||
| | |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale of boats | | | | | | | | | | | | | | | | | | | | | | | | | |
EBR Ltd.
|
| | |
|
—
|
| | | | | 22,851 | | | | |
|
—
|
| | | | | 100,866 | | |
Sales of parts and boat maintenance | | | | | | | | | | | | | | | | | | | | | | | | | |
EBR Ltd.
|
| | |
|
23,746
|
| | | | | — | | | | |
|
66,077
|
| | | | | 9,369 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Rent expense | | | | | | | | | | | | | | | | | | | | | | | | | |
California Electric Boat Company Inc.
|
| | |
|
—
|
| | | | | 67,556 | | | | |
|
—
|
| | | | | 80,702 | | |
| | |
As at
February 29, 2020 $ |
| |
As at
August 31, 2019 $ |
| ||||||
Advances to a company under common control | | | | | | | | | | | | | |
California Electric Boat Company Inc.
|
| | |
|
—
|
| | | | | 40,310 | | |
Non-current advances from shareholders or indirect shareholders subordinated in favor
of the Company’s lender |
| | | | | | | | | | | | |
Alexandre Mongeon (subordinated in favor of the Company’s lenders)
|
| | |
|
141,972
|
| | | | | 81,061 | | |
Patrick Bobby (subordinated in favor of the Company’s lenders)
|
| | |
|
139,472
|
| | | | | 82,534 | | |
Robert Ghetti (subordinated in favor of the Company’s lenders)
|
| | |
|
64,749
|
| | | | | 45,215 | | |
Immobilier R. Ghetti Inc. (subordinated in favor of the Company’s lenders)
|
| | |
|
16,487
|
| | | | | 1,487 | | |
Société de Placement Robert Ghetti Inc. (subordinated in favor of the Company’s lenders)
|
| | |
|
279,376
|
| | | | | 242,426 | | |
Gestion Toyma (subordinated in favor of the Company’s lenders)
|
| | |
|
151,500
|
| | | | | — | | |
| | | |
|
793,556
|
| | | | | 452,723 | | |
|
| | |
As at
February 29, 2020 $ |
| |
As at
August 31, 2019 $ |
| ||||||
Current advances from shareholders or indirect shareholders | | | | | | | | | | | | | |
9335-1427 Quebec Inc.
|
| | |
|
129,932
|
| | | | | 104,931 | | |
Alexandre Mongeon
|
| | |
|
14,201
|
| | | | | 60,911 | | |
Patrick Bobby
|
| | |
|
—
|
| | | | | 56,939 | | |
Robert Ghetti
|
| | |
|
—
|
| | | | | 19,535 | | |
Immobilier R. Ghetti Inc.
|
| | |
|
—
|
| | | | | 15,000 | | |
Société de Placement Robert Ghetti Inc.
|
| | |
|
—
|
| | | | | 36,950 | | |
Gestion Toyma
|
| | |
|
24,394
|
| | | | | 151,500 | | |
Entreprises Claude Beaulac Inc. (former shareholder)
|
| | |
|
—
|
| | | | | 151,575 | | |
| | | |
|
168,527
|
| | | | | 597,341 | | |
Due to shareholders and included in trade and other payables | | | | | | | | | | | | | |
Alexandre Mongeon
|
| | |
|
39,668
|
| | | | | — | | |
Patrick Bobby
|
| | |
|
5,091
|
| | | | | — | | |
| | | |
|
44,759
|
| | | | | — | | |
| | |
Three months ended
|
| |
Six months ended
|
| ||||||||||||||||||
| | |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| ||||||||||||
Sale of boats
|
| | |
|
349,479
|
| | | | | 262,929 | | | | |
|
353,148
|
| | | | | 1,135,407 | | |
Sales of parts and boat maintenance
|
| | |
|
33,711
|
| | | | | 69,716 | | | | |
|
83,045
|
| | | | | 105,929 | | |
Other
|
| | |
|
—
|
| | | | | | | | | |
|
—
|
| | | | | 30,216 | | |
| | | |
|
383,190
|
| | | | | 332,645 | | | | |
|
436,193
|
| | | | | 1,271,552 | | |
| | |
Three months ended
|
| |
Six months ended
|
| ||||||||||||||||||
| | |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| |
February 29,
2020 $ |
| |
February 28,
2019 $ |
| ||||||||||||
Inventories – beginning of period
|
| | |
|
1,138,064
|
| | | | | 815,675 | | | | |
|
818,811
|
| | | | | 931,707 | | |
Purchases
|
| | |
|
87,043
|
| | | | | 139,626 | | | | |
|
399,083
|
| | | | | 567,050 | | |
Salaries and benefits
|
| | |
|
62,772
|
| | | | | 61,447 | | | | |
|
129,824
|
| | | | | 121,426 | | |
Transport costs
|
| | |
|
16,433
|
| | | | | 19,891 | | | | |
|
31,496
|
| | | | | 32,634 | | |
Sub-contracting
|
| | |
|
12,216
|
| | | | | 6,166 | | | | |
|
28,343
|
| | | | | 6,167 | | |
Depreciation
|
| | |
|
8,970
|
| | | | | 8,264 | | | | |
|
17,940
|
| | | | | 16,528 | | |
Grants and investment tax credits
|
| | |
|
(60,000)
|
| | | | | (98,924) | | | | |
|
(120,000)
|
| | | | | (197,849) | | |
| | | |
|
1,265,498
|
| | | | | 952,145 | | | | |
|
1,305,497
|
| | | | | 1,477,663 | | |
Inventories – end of period
|
| | |
|
(1,102,864)
|
| | | | | (795,955) | | | | |
|
(1,102,864)
|
| | | | | (795,955) | | |
| | | |
|
162,634
|
| | | | | 156,190 | | | | |
|
202,633
|
| | | | | 681,708 | | |
|
VISION MARINE TECHNOLOGIES INC.
(Registrant) |
| | ||
|
By:
/s/ Alexandre Mongeon
Alexandre Mongeon, Chief Executive Officer
(Principal Executive Officer) |
| | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Alexandre Mongeon
Alexandre Mongeon
|
| |
Chief Executive Officer (Principal
Executive Officer), Chairman |
| |
November 5, 2020
|
|
|
/s/ Kulwant Sandher
Kulwant Sandher
|
| |
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
| |
November 5, 2020
|
|
|
/s/ Robert Ghetti
Robert Ghetti
|
| |
Director
|
| |
November 5, 2020
|
|
|
/s/ Patrick Bobby
Patrick Bobby
|
| |
Director
|
| |
November 5, 2020
|
|
|
/s/ Luisa Ingargiola
Luisa Ingargiola
|
| |
Director
|
| |
November 5, 2020
|
|
|
/s/ Steve Barrenechea
Steve Barrenechea
|
| |
Director
|
| |
November 5, 2020
|
|
|
/s/ Renaud Cloutier
Renaud Cloutier
|
| |
Director
|
| |
November 5, 2020
|
|
| Ortoli Rosenstadt LLP | | | | |
|
By:
/s/ William S. Rosenstadt
Name: William S. Rosenstadt
Title: Managing Partner |
| | | |