Montréal - TheNewswire - July 5, 2021 - ZeU Technologies, Inc. (CNSX:ZEU.CN) (OTC:ZEUCF) is pleased to disclose that it has filed its 2020 Year End Audited Financial Statements on SEDAR. The Financial Statements includes a restatement of 2019 Year End Audited Financial Statement.
The company has incurred losses of $9,504,212 for the year 2020 compared to losses of $3,025,675(restated) for the year 2019.
Digital assets have been written off to NIL.
In November 2019, the Company received 24,000,000 Kamari coins as consideration for the issuance of a convertible debenture with a face value of $7,834,000. The transaction was originally measured based on the fair value of the coins received, which the Company concluded could be estimated reliably based on the volume and price of recent transactions of the coins.
Subsequent to the issuance of the December 31, 2019 financial statements, it was determined that the price information previously used may not continue to determine the future value the Company would receive if it were to sell its coins in its principal market. Consequently, the Company revised its accounting for the acquisition of the coins and measured the transaction based on the fair value of the convertible debenture issued. As a result of the restatement, the assets and liabilities as at December 31, 2019 decreased by $15.5 million and $21,000 respectively and have been valued at NIL at December 31, 2020 until such time as the coins may be sold or used to repay the Kamari convertible debenture. On March 31, 2021, the Company repaid $1,161,834 using 3,336,564 Kamari coins and will recognize a gain on debt settlement in the quarter ending March 31, 2021.
Future accounting treatment of digital assets not trading on a market recognized by Canadian Regulators, like a future Digital Exchange, will all be treated as such and will be valued at liquidation when a fiat Canadian cash counterpart is received and secured in the Company bank accounts.
Management is expecting to implement major changes to its accounting and auditing processes to avoid a repeat of similar delays in filing in the future. The Company will communicate these proposed changes in an upcoming release.
ON BEHALF OF THE BOARD OF DIRECTORS
“ Frank Dumas”
FRANK DUMAS
President & CEO
ZeU is a forward-thinking Canadian technology company that has developed a state-of-the-art blockchain protocol, providing the foundation for the next generation of encrypted and distributed networks. Thanks to its high level of sophistication, ZeU’s technology maximizes transparency, security and scalability as well as big data management. ZeU’s strategy is to monetize blockchain transactions in diverse sectors such as payment, gaming, data, and healthcare.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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