The Company incurred Operating expenses during the year of $62,416,710, compared to $25,358,651 in the prior year. Exclusive of the Impairment and other expenses, operating expenses were $12,290,694 in 2012 versus $15,737,679 in 2011.The primary components of this variance on a year-over-year basis were:
General & administrative expenses were reduced during the year as a result of the Company's previously noted cost reduction efforts.
During the year-ended December 31, 2011, the Company recognized impairment and other expenses in the amount of $9,620,672. As a result of additional scale-up engineering completed during the year-ended December 31, 2012 and the Company's aforementioned announcement that it intends to discontinue operations at its existing facility in Saskatoon, the Company recognized Impairment and other expenses in the amount of $50,126,016.
Plant commissioning and start-up expenses were $6,641,068 in 2012, versus $7,430,881 in 2011, with the lower amount resulting from several offsetting factors. As a result of the previously noted reduction in crushing operations, and the fact the Company did not generate significant oil and meal revenue during the third and fourth quarters, the Company presented fixed and variable crushing operational costs, including depreciation on crush PP&E assets, as a component of Plant commissioning and start-up expenses. The increase, as a result of including crush related costs, is offset by the Company's cost reduction efforts and reduced scope of plant operations.
Research and development expenses were $189,923 in 2012, down from $660,185 in 2011, as a result of the Company's previously noted cost reduction efforts.
Sales and marketing expenses were $266,921 in 2012 versus $490,368 in 2011, again as a result of on-going cost reduction efforts.
Net Loss for the year was $63,279,855, or 0.29 per share, versus $30,111,660, or $0.15 per share, in the prior year, primarily as a result of the various factors discussed above. Excluding impairment and other expenses, Net Loss for the year was $13,591,339 in 2012 versus $20,490,688 in 2011.
Financial Results for the Three Months Ended December 31, 2012
During the quarter, the Company generated $29,223 of revenue from canola oil and canola meal sales at its Saskatoon plant, versus revenue of $1,217,403 in Q4 2011. As previously discussed, during Q4 2012 the Company ran its crush operations only as required to support the development and piloting activity required for the completion of the Company's detailed engineering scale-up mandate. This resulted in low processing volumes and revenue earned during the quarter. Further, as previously discussed, to conserve capital and exercise appropriate fiscal discipline, the Company had scaled back plant operations generally, earlier in the year.
Gross Profit (Loss)
COGS for the quarter was $125,919, compared to $2,414,129 in Q4 of the prior year, with the decrease resulting from the aforementioned lower processing volumes and reduced scope of operations as discussed above. Gross Loss for the quarter was $96,696, compared with a loss of $1,196,726 for Q4 2011. The Gross Loss increased as a cumulative result of the above noted factors.
The Company incurred operating expenses during the quarter of $48,421,753, compared to $14,230,821 in Q4 2011. Exclusive of the Impairment and other expenses, the comparable periods are $1,593,204 in Q4 2012 versus $4,682,168 in Q4 2011. The basis for the quarterly changes other expenses follows the explanations and rationale discussed in the annual review section.
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