As at January 31/21, Zenith had $186,000 cash. They had payables of $2.4 million, promissory notes of $870,000 and a burn rate of about $500,000/month.

In Feb., there was a PP generating $150,000; in March there was a Promissory Note for $1.5 million (appears to be the Newsoara loan described below) and in April a Promissory note for $250,000. This would raise the cash to $2,086,000 and the three months of burn would raise payables, etc. to $3,900,000. These numbers would each be reduced by a similar amount according to what payables and wages, etc. were paid but the difference should be approximately the same. The promissory note liability would rise to $2,620,000. Essentially, Newsoara loaned the money to cover the burn rate for the last three months.

In an event subsequent to Jan. 31, Newsoara loaned Zenith $1.5 million. It is unsecured and non-interest bearing but it appears that they reversed the license agreement amendment and the Territories patents are out of Zenith’s hands again. Below is taken from the Jan. 31 financial statements that were posted on SEDAR on April 6th under Subsequent event at the end.

“Subsequent to January 31, 2021, the Company closed a $1.5 million loan with Newsoara. The loan is non-interest bearing, unsecured and has a maturity date of March 5, 2022. In connection with the loan, the Company canceled the reversionary right in the Newsoara license agreement that previously entitled Zenith, for no additional consideration, to re-acquire ownership of patents in the Territories previously assigned to Newsoara.”