Audited Financial Statements: March 31, 2022 Results


(via TheNewswire)

MontréalTheNewswire – September22nd, 2022 –ZeU Technologies, Inc.(CSE:ZEU) (OTC:ZEUCF) would like to inform its shareholders that it has released its audited financial statements for the past 15 month period March 31, 2022 and the previous year ended December 31, 2020and the corresponding Management Discussion & Analysis on SEDAR.

ZeU also provides an update on its previously announced cessation of administration trade order (“MCTO“), initially announced on August 2, 2022in relation to the interim financial statements and related management’s discussion and analysis for the period just ended June 30, 2022including associated Chief Executive Officer and Chief Financial Officer certifications (collectively, the “financial records’) that have not been submitted by the registration deadline August 29, 2022.

The Company has filed an application with the relevant securities regulators and received a cessation of administration trade order (“MCTO”) imposed on the company’s chief executive officer (CEO) and chief financial officer (CFO), barring them from trading in the company’s securities. The MCTO is effective until the filing of financial documents and requires that financial documents be filed on or before 09/30/2022.

The ZeU management aims to publish the preliminary financial documents by January 1stSt Quarter of fiscal year 2022 covering the period from April 1, 2022 to June 30, 2022 At the end of the month.

ZeU as a going concern

Since withdrawing from the planned transaction with a Chinese company in Aug 2018, Management was forced to work with limited skills. From the need to redefine, fund and develop a new business model from scratch to the impending launch of some of its products, the company has been hampered in its ability to complete acquisitions and meet its funding needs due to the existence of significant debt restricted and inherited from the proposed formation transaction.

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To mitigate this issue, management expects a restructuring of the company’s debt and business silos in the coming weeks. Debt renegotiations are set to take place with parties willing to work together on a more permanent solution, and certain companies are expected to be fired. This measure is being implemented with the interests of shareholders in mind and should allow the company to grow without financial or legal threats to its existence.

More information should be available for disclosure in the coming weeks.

FINANCIAL RESULTS AT A GLANCE

Summary of Operating Results

For the expired fifteen month period March 31, 2022the company recorded a net loss of $14,274,215 (December 31, 2020$9,504,212) and had a total deficit of $31,216,162 (December 31, 2020$16,941,947). The company had no source of operating income or related operating expenses.

Management has recorded an impairment of 13,320,813 on the goodwill of ZeUPay (Prego) during the past 15 month period March 31, 2022

The following table summarizes the Company’s financial operations for the previous two fiscal years.

Fifteen months passed

March 31, 2022

year ended

December 31, 2020

$

$

Cash

24,281

1,944

working capital (shortage)

(5,872,304)

(5,166,513)

total assets

584,824

16,944

Equity (deficit)

(12.096.035)

(9,419,731)

revenue

354,860

Net loss and total loss for the period

(14.274.215)

(9,504,212)

Basic and diluted loss per share

(0.41)

(0.39)

Fifteen months passed March 31, 2022

The company suffered a net loss of $14,274,215 in the fifteen months. operating expenses were $5,790,195and the Company posted a loss of $23,755 upon the sale of certain marketable securities. The company also posted recognized earnings of $4,491,806 on the repayment of $3,917,000 Convertible Kamari Bonds plus accrued interest by transferring 18,705,115 Kamari Tokens to the bondholder. The company reports a loss of $13,320,813 in the case of impairment of the goodwill of a subsidiary.

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year ended December 31, 2020

The company reported revenue from development services of $354,860 for services to a subsidiary of St Georges, a shareholder of the company. The company suffered a net loss of $9,504,212 in 2020. Operating costs were $2,393,115and the company recorded an unrealized loss on digital assets of $6,881,396 since the Kamari tokens were not currently traded. As a result, no fair value could be determined, which resulted in them being assigned a value of zero.

Quarterly Results Summary

The following table contains selected unaudited financial information for the company for the last eight quarters.

Mar 31,

2022

Dec 31,

2021

30. September

2021

30.06.

2021

total assets

584,824

13,685,663

13,897,972

13,979,779

working capital (shortage)

(5,872,304)

(8,276,982)

(4,804,887)

(4,171,766)

Long-term liabilities

(6,223,731)

(5,209,749)

(8,117,434)

(7,657,429)

Equity (deficit)

(12.096.035)

(1,674,434)

(1,106,428)

74,667

revenue

net income (loss)

(10.436.131)

(1,333,757)

(1,069,805)

(1,971,674)

Net Earnings (Loss) per Share

(0.28)

(0.04)

(0.03)

(0.06)

Mar 31,

2021

Dec 31,

2020

30. September

2020

30.06.

2020

total assets

14.516.214

16,944

6,434,989

6,566,875

working capital (shortage)

(3,422,589)

(5,166,513)

(71,490)

(623.007)

Long-term liabilities

(7.105.381)

(3,904,516)

(4,289,359)

(3,986,915)

Equity (deficit)

1,098,542

(9,419,731)

(2,774,397)

(2,331,781)

revenue

173,951

36,530

70,450

net income (loss)

537,152

7,873,657

(628,452)

(15,703,409)

Net Earnings (Loss) per Share

0.02

0.32

(0.03)

(0.64)

The main factors that contribute to variances in the quarters up March 31, 2022were a profit in the settlement of Kamari convertible bonds March 2022 from $3,391,988a loss of $13,320,813 in the event of impairment of goodwill in March 2022a loss of $23,874 in the sale of marketable securities in September 30, 2021stock-based compensation $727,630 in June 30, 2021a gain from the settlement of Kamari’s convertible debenture in March 2021 from $1,099,818stock-based compensation $527,332 and an unrealized loss of $6,881,396 on digital assets in December 2020Development services revenue from $173,951 (December 2020), $36,530 (Sept 2020), $70,450 (June 2020) and $73,929 (March 2020) excluding corresponding amounts in 2021. Also unrealized losses on digital assets of $147,845 (Sept 2020) $15,309,139 (June 2020) and other quarters in early 2020 of $487,241 were offset by a gain of $9,062,829 in the last quarter of 2020.

In 2020, the company reduced the value of its Kamari tokens as there was no longer any objective market value for the tokens other than the right to repay its Kamari debt at a mark-to-market rate.

ON BEHALF OF THE BOARD OF DIRECTORS

“Frank Duma”

Frank DumaPresident and CEO

About ZeU

ZeU is a forward-thinking Canadian technology company that has developed a state-of-the-art DLT protocol that forms the basis for the next generation of encrypted and distributed networks. Thanks to its high level of sophistication, the ZeU technology maximizes transparency, security and scalability as well as big data management. ZeU’s strategy is to monetize DLT transactions in various sectors such as payment, gaming, data and healthcare.

The Canadian Securities Exchange (CSE) has not reviewed the contents of this press release and accepts no responsibility for the adequacy or accuracy of the contents of this press release.

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