| SEGMENT INFORMATION |
The
Company operated in two reportable segments within the USA during the year ended August 31, 2021 and 2020, 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, 2021 and 2020. Other information
about reportable segments are:
| |
|
August 31, 2021 |
| |
|
Oil |
|
Mining |
|
|
| (in ’000s of dollars) |
|
Extraction |
|
Operations |
|
Consolidated |
| Additions to non-current assets |
|
$ |
5,513 |
|
|
|
- |
|
|
|
5,513 |
|
| Reportable segment assets |
|
|
47,795 |
|
|
|
33,240 |
|
|
|
81,035 |
|
| Reportable segment liabilities |
|
$ |
(14,782 |
) |
|
|
(100 |
) |
|
|
(14,882 |
) |
| |
|
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, 2021 |
| (in ’000s of dollars) |
|
Oil
Extraction |
|
Mining
operations |
|
Consolidated |
| Revenue from license fees |
|
$ |
2,000 |
|
|
$ |
- |
|
|
$ |
2,000 |
|
| Revenues from hydrocarbon sales |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Production and maintenance costs |
|
|
(2,091 |
) |
|
|
- |
|
|
|
(2,091 |
) |
| Gross Loss |
|
|
(91 |
) |
|
|
- |
|
|
|
(91 |
) |
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
46 |
|
|
|
- |
|
|
|
46 |
|
| Selling, general and administrative expenses |
|
|
4,219 |
|
|
|
- |
|
|
|
4,219 |
|
| Investor relations |
|
|
45 |
|
|
|
- |
|
|
|
45 |
|
| Professional fees |
|
|
1,597 |
|
|
|
- |
|
|
|
1,597 |
|
| Salaries and wages |
|
|
350 |
|
|
|
- |
|
|
|
350 |
|
| Share-based compensation |
|
|
666 |
|
|
|
- |
|
|
|
666 |
|
| Travel and promotional expenses |
|
|
701 |
|
|
|
- |
|
|
|
701 |
|
| Other |
|
|
860 |
|
|
|
- |
|
|
|
860 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financing costs |
|
|
4,727 |
|
|
|
- |
|
|
|
4,727 |
|
| Other expense (income) |
|
|
1,564 |
|
|
|
- |
|
|
|
1,564 |
|
| Loss on settlement of liabilities |
|
|
48 |
|
|
|
- |
|
|
|
48 |
|
| Loss on conversion of convertible debt |
|
|
1,034 |
|
|
|
- |
|
|
|
1,034 |
|
| Loss on debt extinguishment |
|
|
417 |
|
|
|
- |
|
|
|
417 |
|
| Penalty on convertible notes |
|
|
203 |
|
|
|
|
|
|
|
203 |
|
| Forgiveness of federal relief loans |
|
|
(134 |
) |
|
|
|
|
|
|
(134 |
) |
| Interest income |
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
| Derivative liability movements |
|
|
(1,173 |
) |
|
|
- |
|
|
|
(1,173 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(9,474 |
) |
|
$ |
- |
|
|
$ |
(9,474 |
) |
| |
|
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 |
) |
| 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 |
|
|