TORONTO, Feb. 28, 2022 /CNW/ - Facedrive Inc.
("Facedrive" or the "Company") (TSXV: FD), (OTC:
FDVRF), a Canadian "people-and-planet first" tech ecosystem
announces that, further to the Company's press release dated
February 10, 2022, the Company is
amending and restating its Q3 2021 Financial Statements and
MD&A (the "Refilings"). These documents are expected to
be filed on SEDAR today. In regard to the amended documents,
in summary, the Company has offset the following amounts against
its revenue throughout 2021: $771,882
in Q1 2021, resulting in revised downwards adjustments for the
Company's sales and marketing expenses and its revenue such that
total net revenues for the quarter was $2,772,834; $1,005,977 in Q2 2021, resulting in revised
downwards adjustments for the Company's sales and marketing
expenses and its revenue such that total net revenues for the
quarter was $4,521,548; and
$559,211 in Q3 2021, resulting in
revised downwards adjustments for the Company's sales and marketing
expenses and its revenue such that total net revenues for the
quarter was $7,811,810. The
cumulative result of these revisions is that an aggregate of
$2,337,070 has been netted off of
revenue ("Offset Amount") for the first 3 quarters of 2021
and the Company's reported expenses have also been reduced by the
exact same amount. Accordingly, the Company's reclassification of
certain sales and marketing expenses in 2021 did not result in any
changes to Facedrive's balance sheets, reported net earnings or
losses, and the reclassification was not a result of, and did not
result in, any changes to Facedrive's business, operations or
capital.
As previously disclosed, the Company retained an independent
national accounting firm in December
2021 to advise on an internal review of Facedrive Foods'
2021 sales and marketing expenses with a view to bringing the
Company further in line with evolving industry application of
accounting standards and practices. This internal review was
concurrent with an ongoing Continuous Disclosure Review involving
staff of the Corporate Finance Branch of the Ontario Securities
Commission ("OSC"). Among other things, the Company's review
focused on whether periodic promotions to customers already on its
platform – a common practice in the industry – could be treated as
an expense or whether, alternatively, they should be recorded as an
offset against revenue. The review found that, while some existing
reporting standards used by the Company's peers remain less than
clear (particularly as some new-age Fintech industries wrestle with
IFRS-15), it was most appropriate for the Company to deduct the
Offset Amount against both revenues and expenses throughout 2021
and progress the Company's accounting processes, controls and data
systems with these practices going forward, which it has done. The
review also concluded that no similar action was required for any
prior reporting period, when the Company's Foods platform remained
in nascent stages of its growth.
The review comes on the heels of large well-known industry
incumbents also reviewing and revising their revenue recognition
policies within the last year, reflecting an industry-wide movement
towards clarifying and refining how conventional accounting and
IFRS-15 standards apply to modern gig-economy based technology
platforms, particularly in the delivery and logistics space.
As stated earlier in the Company's February 10, 2022 press release, Mujir
Muneeruddin, Executive Vice President, Chief Legal Officer and
Director of Facedrive noted: "With the gig economy being a
relatively new phenomenon, many industry standards and practices
remain in the process of being fully understood by industry
participants and experts alike. Like other established incumbents
in our space, Facedrive is going through the important process of
better understanding the progressive reporting and compliance
standards specific to revenue recognition for gig-economy based
delivery. This is an essential step in our maturation as a new-age
ESG logistics and mobility platform."
The information in this press release and in the Refilings have
been provided in accordance with section 11.5 of National
Instrument 51-102 - Continuous Disclosure Obligations.
Shareholders and prospective investors in the Company should refer
to and utilize the information and tables provided in the Company's
Refilings when considering the financial performance and position
of the Company during the first nine months of the year ended
December 31, 2021, namely Q1 2021, Q2
2021 and Q3 2021. The Refilings as well as the applicable CEO and
CFO certificates for in Form 52-109F2R can be found on SEDAR.
About Facedrive
Facedrive is a multi-faceted
"people-and-planet first" tech ecosystem offering
socially-responsible services to local communities with a strong
commitment to doing business fairly, equitably and sustainably. As
part of this commitment, Facedrive's vision is to fulfil its
mandate through a number of services that either leverage existing
technologies of the Company or project synergies with existing
lines of business.
Facedrive's service offerings include its: (i) eco-friendly
rideshare business, Facedrive Rideshare; (ii) food delivery
service, Facedrive Foods; (iii) electric and hybrid vehicle
subscription business, Steer; (iv) contact-tracing and connected
health technology services, Facedrive Health; (v) e-commerce
platform, Facedrive Marketplace; and (vi) e-social platform,
Facedrive Social. Facedrive Rideshare was among the first to offer
a wide variety of environmentally and socially responsible
solutions in the Transportation as a Service (TaaS) space, planting
thousands of trees based on user consumption and offering choices
between electric, hybrid and conventional vehicles (including, more
recently, electric and hybrid vehicles on a subscription basis
through Steer). Facedrive Marketplace offers curated merchandise
typically created from sustainably sourced materials and linked to
social causes. Facedrive Foods offers contactless delivery of a
wide variety of foods right to consumers' doorsteps, with a focus
on doing so in a socially and environmentally-conscious manner.
Facedrive Social strives to keep people connected in a
physically-distanced world by offering gamification and mutual
community support features. Facedrive Health strives to develop and
offer innovative technological solutions to the most acute health
challenges including its proprietary TraceSCAN wearable technology
for contact tracing.
Facedrive envisions changing the ridesharing, food delivery,
e-commerce, social and health tech narratives for the better, for
everyone, and is currently operational
in Canada and the United
States.
For more about Facedrive,
visit www.facedrive.com.
Facedrive Inc.
100 Consilium Pl, Unit 104, Scarborough,
ON, Canada M1H 3E3
www.facedrive.com.
Forward-Looking Information
Certain information in this press release contains
forward-looking information. This information is based on
management's reasonable assumptions and beliefs in light of the
information currently available to us and are made as of the date
of this press release. Actual results and the timing of events
(such as the nature and magnitude of the impact of the amounts
being offset in the Refilings on the Company's financial position
may differ materially from those anticipated in the forward-looking
information as a result of various factors. Information regarding
our expectations of future results, performance, achievements,
prospects or opportunities or the markets in which we operate is
forward-looking information. Statements containing forward-looking
information are not facts but instead represent management's
expectations, estimates and projections regarding future events or
circumstances. Many factors could cause our actual results, level
of activity, performance or achievements or future events or
developments to differ materially from those expressed or implied
by the forward-looking statements.
See "Forward-Looking Information" and "Risk Factors" in
Facedrive's Annual Management Discussion & Analysis (MD&A)
for the year ended December 31, 2020 (filed on SEDAR
on April 30, 2021) and its interim MD&A for the period
ended March 31, 2021 (filed on SEDAR on May 31,
2021) and June 30, 2021 (filed on SEDAR on August
31, 2021) and September 30, 2021
(filed on SEDAR on February 28, 2022)
for a discussion of the uncertainties, risks and assumptions
associated with these statements and other risks. Readers are urged
to consider the uncertainties, risks and assumptions carefully in
evaluating the forward-looking information and are cautioned not to
place undue reliance on such information. We have no intention and
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation and regulatory requirements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Facedrive Inc.