BioNeutra Global Corporation Announces Financial Results for Second Quarter Ended June 30, 2015 - Seite 3

The Company's level of net income in the most recent reporting periods is a result of having incurred several significant non-cash expenses, including:

• a $744,896 non-cash share-based compensation expense;
• a $686,834 non-cash deferred income tax expense; and
• a $349,818 one-time non-cash sales and marketing expense to related parties.

In addition, in the Second Quarter the Company recorded a one-time professional fee expense of $591,632 related to the favorable resolution and settlement of legal matters with a third party concerning the Company's intellectual property.

The effect of these non-cash expenses is reflected in the Company's positive Adjusted EBITDA which totals $2,291,317 for the six-month period ended June 30, 2015 as compared with $1,644,486 for the four months ended June 30, 2014.

Financial Condition & Liquidity

The Company's Adjusted EBITDA has had a positive effect on the operational strength of its balance sheet. As at June 30, 2015, the Company increased its cash balance to $4,186,822 and its working capital to $6,991,546, representing significant increases over the cash balance of $2,084,687 and working capital of $3,976,934 at December 31, 2014.

The Company also has access to a $500,000 credit facility to assist with working capital needs, if necessary, but this credit facility has not been drawn on as of the date of this press release.

Income Tax Recovery

Deferred income tax assets were recognized from the amalgamation of the Company's subsidiaries which provided loss carryforwards that the Company may use to offset taxable income in the future. As at June 30, 2015, the Company had Canadian tax losses with a tax benefit of $828,808.

Change in Year End and Comparison Period

Effective October 29, 2014, the Company completed the acquisition of BioNeutra North America Inc. and BioNeutra International Limited. The acquisition of BioNeutra North America Inc. was considered a reverse acquisition for accounting purposes, with BioNeutra North America Inc. identified as the acquirer. BioNeutra North America Inc.'s year-end was February 28, and as such the required comparison periods for the purpose of the Second Quarter interim condensed consolidated financial statements and the Management's Discussion and Analysis ("MD&A") are the three-month and four-month periods ended June 30, 2014.