Cannabis Suisse Corp. developed an IT product called Cannabis Life. It is a
mobile application based on an AI-chatbot that will have access to the most
up-to-date information and find out data about companies and brands that sell
seeds, cannabis types, etc.
Cannabis Life is an innovative way of searching and learning any cannabis
related data. Using the most relevant sources of today, the app will keep its
users up with the trends and tendencies of cannabis industry. Communicating with
the chatbot will be as smooth as it would be with a real human being thus giving
users additional immersion into the learning process.
As of May 31, 2022, we had no operations and were no longer involved with any
aspect of the cannabis business.
The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this Annual
Report. The following discussion contains forward-looking statements that
reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Our audited
financial statements are stated in United States Dollars and are prepared in
accordance with United States Generally Accepted Accounting Principles.
Results of Operations for the years ended May 31, 2022, and 2021:
Revenue
For the year ended May 31, 2021, the Company generated total revenue of $50,850
from selling products to the customer. The cost of goods sold for the year ended
May 31, 2021, was $102,648, which represent the cost of raw materials.
For the year ended May 31, 2022, the Company generated total revenue of $7,770
from selling products to the customer. The cost of goods sold for the year ended
May 31, 2022, was $1,734.
The decrease in revenues and cost of goods sold is a result of the separation of
Cannabis Suisse LLC in November 2020.
Operating expenses
Total operating expenses for the year ended May 31, 2021, were $306,655. The
operating expenses for the year ended May 31, 2021 included professional fees of
$39,592; depreciation expense of $9,649 and general and administrative expenses
of $257,414.
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Total operating expenses for the year ended May 31, 2022, were $163,191. The
operating expenses for the year ended May 31, 2022 included professional fees of
$25,580; depreciation expense of $1,999 and general and administrative expenses
of $135,612.
The decrease in operating expenses is related to the decrease of general and
administrative expenses due to significant reduction of business activities in
the year ended May 31, 2022.
Changes in Fair Value of Derivatives
The gain in fair value of derivatives for the years ended May 31, 2022 and 2021,
was $2,454 and $7,903, respectively.
Net Loss
The net loss for the years ended May 31, 2022 and 2021 was $187,890 and
$410,894, respectively.
Comprehensive Loss
The comprehensive loss for the years ended May 31, 2022 and 2021 was $187,890
and $419,372, respectively.
Liquidity and Capital Resources and Cash Requirements
As of May 31, 2022, the Company had cash of $0. Furthermore, the Company had a
working capital deficit of $274,092 and $191,877 as of May 31, 2022 and 2021,
respectively.
During the year ended May 31, 2022, the Company used $32,089 of cash in
operating activities due to its net loss of $187,890; depreciation and
amortization of $1,999; gain on extinguishment of debt of $32,774; change in
fair value of derivative liability $2,454; amortization of debt discount
$63,579; increase in accounts payable of $883; increase in accrued wages of
$120,000, decrease in inventory of $1,734; increase in loss on asset disposal
of $2,384 and decrease in prepaid expenses of $450.
During the year ended May 31, 2021, the Company used $130,606 of cash in
operating activities due to its net loss of $419,372; depreciation and
amortization of $9,650; provision for doubtful accounts $78,827; amortization
expense $12,772, change in fair value of derivative liability $25,228; decrease
in accounts receivable of $1,979; decrease in related party receivables $8,422;
amortization of debt discount $27,213; decrease in VAT tax receivable $9,563;
decrease in inventory of $26,425; increase in accounts payable of $30,100;
increase in accrued wages of $62,995 and increase in prepaid expenses of $450.
During the years ended May 31, 2022 and 2021 the Company did not have cash in
investing activities.
During the year ended May 31, 2022, the Company increase $32,089 of cash in
financing activities, which came from advances from related parties.
During the year ended May 31, 2021, the Company generated $130,601 of cash in
financing activities, which came from advances from related parties of
$(20,414), convertible notes payable of $130,000 and bank indebtedness of
$21,015.
Our auditors have issued a "going concern" opinion, meaning that there is
substantial doubt we can continue as an on-going business for the next twelve
months unless we obtain additional capital. Our only sources for cash during the
period were investments by others, selling our products and loans from our
director.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on the Company's financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.
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Related Party Transactions
The Company's then CEO had agreed to provide interest free advances, due on
demand, to the Company up to $100,000. As of May 31, 2022 and 2021, Suneetha
Nandana Silva Sudusinghe advanced to the Company $1,589 and $0, respectively.
The Company also owed the former shareholder, then CEO, compensation for his
services as CEO. The Company accrued $70,000 and $56,620 for the years ended May
31, 2022 and 2021, respectively. As of May 31, 2022 and 2021, the Company owed
to the former CEO $126,620 and $56,620, respectively.
Critical Accounting Policies
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. A change in managements' estimates or assumptions
could have a material impact on our financial condition and results of
operations during the period in which such changes occurred. Actual results
could differ from those estimates. Our financial statements reflect all
adjustments that management believes are necessary for the fair presentation of
their financial condition and results of operations for the periods presented.
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CANNABIS SUISSE CORP. 
