Facedrive Reports 2020 Financial Results and Provides Update

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TORONTO — Facedrive Inc. (“Facedrive” or the “Company”) (TSX-V: FD), a Canadian “people-and-planet first” tech ecosystem, at present introduced its yr finish fiscal 2020 (“Fiscal 2020”) operational and monetary outcomes. All monetary outcomes are reported in Canadian {dollars}, until in any other case said.

Facedrive is a multi-faceted “people-and-planet first” tech ecosystem providing socially-responsible companies to native communities with a robust dedication to doing enterprise pretty, equitably and sustainably. As a part of this dedication, Facedrive’s imaginative and prescient is to fulfil its mandate via a variety of companies and choices that both leverage present applied sciences of the Company or challenge initiatives with present traces of enterprise. Facedrive’s companies and choices embody eco-friendly rideshare; meals supply companies (Facedrive Foods); its Steer electrical and hybrid car subscription service; contact-tracing and related well being expertise companies (Facedrive Health); e-commerce; and e-social platform (Facedrive Social).

Fiscal 2020 Financial and Operational Highlights

  • Revenue for Fiscal 2020 was $3,934,354, up from $599,104 within the fiscal yr ended December 31, 2019 (“Fiscal 2019”).
  • Revenue for This autumn 2020 was $3,186,378, up from $234,525 in the identical interval a yr earlier.
  • Rideshare income was $512,000 in Fiscal 2020, up from $349,100 in Fiscal 2019.
  • Facedrive Foods income was $2,472,300 in Fiscal 2020, in comparison with $nil in Fiscal 2019.
  • Steer subscription income was $738,800 in Fiscal 2020, in comparison with $nil in Fiscal 2019.
  • Net loss was $17,756,043 in Fiscal 2020, as in comparison with a web lack of $6,942,357 in Fiscal 2019.
  • Cost of income in Fiscal 2020 was $3,228,263, a rise from $270,562 in Fiscal 2019.
  • General and administration bills had been $3,605,182 in Fiscal 2020, up from $848,809 in Fiscal 2019.
  • Operational assist bills elevated to $3,764,360 in Fiscal 2020, up from $1,542,753 in Fiscal 2019.
  • Research and improvement bills elevated to $1,444,153 in Fiscal 2020, as in comparison with $917,177 in Fiscal 2019.
  • Sales and advertising bills had been $8,933,587 in Fiscal 2020, as in comparison with $1,559,969 in Fiscal 2019.
  • Basic loss per share was $0.19 in Fiscal 2020, as in comparison with $0.08 in Fiscal 2019.
  • Facedrive Rideshare is at present operational in The Greater Toronto Area, Hamilton, London, Guelph, Kitchener, Waterloo, Cambridge, Orillia and Ottawa.
  • Steer is operational in Washington D.C. and Toronto, ON.
  • Facedrive Foods is at present operational in 19 cities throughout Canada, together with in Toronto, Montreal, Ottawa, Winnipeg, Kingston, London, Edmonton and Halifax.

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Selected Financial Highlights

For detailed info please check with Facedrive’s 2020 Annual Consolidated Financial Statements and its Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2020 and 2019 (the “2020 Annual MD&A”), filed on SEDAR at www.SEDAR.com. The following desk offers a abstract of the Company’s monetary outcomes for the years ended December 31, 2020 and 2019:

For the years ended December 31,

2020

2019

REVENUE

$

3,934,354

$

599,104

COSTS AND OPERATING EXPENSES

Cost of income

3,228,263

270,562

General and administration

3,605,182

848,809

Operational assist

3,764,360

1,542,753

Research and improvement

1,444,153

917,177

Sales and advertising

8,933,587

1,559,969

Amortization

1,010,239

Depreciation

76,130

16,563

Total working bills

$

22,061,914

$

5,155,833

OPERATING LOSS

$

(18,127,560)

$

(4,556,729)

OTHER INCOME (EXPENSES)

Government and different grants

1,127,130

Foreign trade loss

(217,610)

(15,327)

Interest bills

(252,680)

(4,421)

Interest revenue

41,663

10,172

Listing bills

(2,376,052)

Gain on lease terminations

23,014

Impairment of intangible property

350,000

NET LOSS

$

(17,756,043)

$

(6,942,357)

Cumulative translation adjustment

$

(75,835)

NET LOSS AND COMPREHENSIVE LOSS

$

(17,831,878)

$

(6,942,357)

Loss per share – fundamental and diluted

$

(0.19)

$

(0.08)

Weighted common shares excellent – fundamental and diluted

91,952,197

82,227,082

Update Regarding Prior Period Errors

During the Company’s 2020 year-end audit course of and on account of a Continuous Disclosure Review with workers of the Ontario Securities Commission (“OSC”) that commenced in 2020, the workers of the Corporate Finance Branch of the OSC recognized that the Company had made an error with respect to the computation of the truthful worth of shares issued to Medtronics Online Solutions Ltd. (“Medtronics”) in addition to the impairment cost referring to the guide worth of the Company’s intangible property associated to HiRide Share Ltd. (“HiRide”).

In the second quarter of 2020, the Company reported that the expense associated to the share-based compensation paid to Medtronics was decided to be $7,632,700; nonetheless, the Company has since decided that an accounting error had been made with regard to the computation of the truthful worth of the shares issued and recorded a better expense than it ought to have. The shares issued to Medtronics had been topic to lock-up restrictions and as such, an illiquidity low cost ought to have been utilized within the willpower of the truthful worth of the share-based compensation, which was not completed within the quarter ended June 30, 2020 (“Q2 2020”). The downward adjusted expense associated to the share-based compensation paid to Medtronics is set to be $4,932,696 by making use of a 35.6% illiquidity low cost. As a outcome, gross sales and advertising expense in Q2 2020 ought to have been decrease by $2,700,000 and web loss additionally decrease by $2,700,000. The capital inventory stability must also have been decreased by $2,700,000 as at June 30, 2020.

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In the fourth quarter of Fiscal 2020, so as to mirror the implications of the persevering with COVID-19 pandemic and its influence on the short-term discount in demand for commuting on account of college and faculty college students and their faculties transitioning to a learn-from-home and/or on-line classroom atmosphere, the Company took an impairment cost of $350,000 associated to the guide worth of the Company’s intangible property associated to HiRide. This impairment cost represented roughly two-thirds of the guide worth of those intangible property, decreasing the guide worth to $169,506 as at December 31, 2020 (see Note 22 within the Company’s audited annual monetary statements for the yr ended December 31, 2020). As the indications had been current in the course of the quarter ended September 30, 2020, the impairment cost ought to have been recorded in Q3 2020. As a outcome, impairment of intangible property in Q3 2020 ought to have been increased by $350,000 and web loss additionally elevated by $350,000. The carrying worth of intangible property must also have been decreased by $350,000 as at September 30, 2020.

The web loss for the 9 months ended September 30, 2020 was impacted by each errors (the unfavorable $2,700,000 change within the share based mostly compensation expense in Q2 2020 and the $350,000 impairment cost in Q3 2020). The cumulative impact of those errors on the web loss for the 9 months ended September 30, 2020 was that web loss decreased by $2,350,000.

The OSC requested that the Company embody within the 2020 Annual MD&A an in depth description of the influence of those misstatements on the Company’s Q2 2020 and Q3 2020 monetary statements. Please see “Summary of Quarterly Results – Prior Period Errors” of the 2020 Annual MD&A for an in depth description of the influence of those misstatements on the Company’s Q2 2020 and Q3 2020 monetary statements.

The OSC additionally decided that the Company was a late filer of a fabric change report with respect to its prior acquisition of Steer (the “Acquisition”), an electrical and hybrid car subscription enterprise extra notably described within the Company’s press launch dated September 8, 2020, in addition to the asset buy settlement between Exelorate Enterprises, LLC, Steer Holdings, LLC and the Company, dated September 4, 2020, which was entered into in respect of the Acquisition. After figuring out that the Company ought to have filed such report and settlement, respectively, on SEDAR inside the time intervals prescribed beneath National Instrument 51-102 Continuous Disclosure Obligations, the OSC requested that such materials change report and settlement, respectively, be filed. The Company confirms that very same had been filed on SEDAR on April 30, 2021 accordingly.

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The Company’s Board of Directors and its Senior Executives are working carefully with the Company’s auditors and exterior authorized counsel to evaluation and enhance, the place advisable, the design and effectiveness of the Company’s disclosure controls and procedures (DC&P) and inside management over monetary reporting (ICFR).

Conditional Approval of the Company’s Performance and Restricted Share Unit Plan

The Company confirms that it has acquired conditional approval for its efficiency and restricted share unit plan (“PRSU Plan”) from the TSX Venture Exchange. The most variety of grants issuable beneath the PRSU Plan might not exceed 3,728,584 widespread shares of the Company (“Common Shares”). In addition, the utmost variety of grants issuable beneath the PRSU Plan along with the variety of inventory choices issuable beneath the Company’s inventory choice plan (“Option Plan”) might not exceed 10% of the variety of issued and excellent Common Shares as on the date of a grant beneath the PRSU Plan or the Option Plan, because the case could also be. Grants to anybody participant beneath the PRSU Plan, along with any awards beneath the Option Plan to such participant inside anybody (1) yr interval, shall not exceed 5% of the issued and excellent Common Shares (until requisite disinterested shareholder approval is obtained). In addition, the combination variety of grants to insiders of the Company (as a gaggle) beneath the PRSU Plan inside a one (1) yr interval shall not exceed 5% of the issued and excellent Common Shares (until requisite disinterested shareholder approval is obtained). The PRSU Plan, and any grants beneath the PRSU Plan, stay topic to disinterested shareholder approval on the Company’s subsequent annual and particular assembly of shareholders, which is at present anticipated to be held within the early summer season of 2021 (the “Shareholders’ Meeting“). Pending such disinterested shareholder approval, no grants under the PRSU Plan will vest or settle. Further details regarding the PRSU Plan (including grants made thereunder) and the Option Plan will be included in the management information circular of the Company which will be sent to shareholders and will be filed on SEDAR in connection with the Shareholders’ Meeting.

About Facedrive

Facedrive is a multi-faceted “people-and-planet first” tech ecosystem providing socially-responsible companies to native communities with a robust dedication to doing enterprise pretty, equitably and sustainably. As a part of this dedication, Facedrive’s imaginative and prescient is to fulfil its mandate via a variety of companies that both leverage present applied sciences of the Company or challenge synergies with present traces of enterprise. Facedrive’s service choices embody: its (i) eco-friendly rideshare enterprise, Facedrive Rideshare; (ii) meals supply service, Facedrive Foods; (iii) electrical and hybrid car subscription enterprise, Steer; (iv) contact-tracing and related well being expertise companies, Facedrive Health; (v) e-commerce platform, Facedrive Marketplace; and (vi) e-social platform, Facedrive Social.

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Facedrive Rideshare was among the many first to supply all kinds of environmentally and socially accountable options within the Transportation as a Service (TaaS) area, planting hundreds of timber based mostly on person consumption and providing decisions between electrical, hybrid and standard automobiles (together with, extra just lately, electrical and hybrid automobiles on a subscription foundation via Steer). Facedrive Marketplace affords curated merchandise sometimes created from sustainably sourced supplies and linked to social causes. Facedrive Foods affords contactless supply of all kinds of meals proper to customers’ doorsteps, with a concentrate on doing so in a socially and environmentally-conscious method. Facedrive Social strives to maintain individuals related in a physically-distanced world via its HiQ and different e-socialization platforms that invite customers to work together based mostly on widespread pursuits and by providing gamification and mutual neighborhood assist options. Facedrive Health strives to develop and provide modern technological options to probably the most acute well being challenges together with its proprietary TraceSCAN wearable expertise for contact tracing. Facedrive envisions altering the ridesharing, meals supply, e-commerce, social and well being tech narratives for the higher, for everybody, and is at present operational in Canada and the United States.

For extra about Facedrive, go to www.facedrive.com.
100 Consilium Pl, Unit 104, Scarborough, ON, Canada M1H 3E3

Forward-Looking Statements

Certain info on this press launch accommodates forward-looking info. This info is predicated on administration’s cheap assumptions and beliefs in gentle of the knowledge at present out there to the Company and are made as of the date of this press launch. Actual outcomes and the timing of occasions might differ materially from these anticipated within the forward-looking info on account of numerous components. Information concerning the Company’s expectations of future outcomes, efficiency, achievements, prospects or alternatives or the markets through which we function is forward-looking info. Statements containing forward-looking info aren’t information however as an alternative signify administration’s expectations, estimates and projections concerning future occasions or circumstances. Many components may trigger the Company’s precise outcomes, degree of exercise, efficiency or achievements or future occasions or developments to vary materially from these expressed or implied by the forward-looking statements.

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See “Cautionary Note Regarding Forward-Looking Information” and the chance components beneath “Other Business Risks and Uncertainties” respectively, as set out within the Company’s 2020 Annual MD&A, filed on SEDAR, for a dialogue of the uncertainties, dangers and assumptions related to these statements. Readers are urged to think about the uncertainties, dangers and assumptions fastidiously in evaluating the forward-looking info and are cautioned to not place undue reliance on such info. The Company has no intention and undertakes no obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as required by relevant securities regulation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that time period is outlined in insurance policies of the TSX Venture Exchange) accepts duty for the adequacy or accuracy of this launch.

View supply model on businesswire.com: https://www.businesswire.com/news/home/20210430005636/en/

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Contacts

Media: Sana Srithas | [email protected]
Tel: 1-888-300-2228

#distro

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