VPTDF - Ventripoint Diagnostics Ltd. Announces Filing of Amended and Restated Interim Financial Statements and MD&A
(TheNewswire)
Toronto, Canada - TheNewswire – October 1, 2021 –Ventripoint Diagnostics Ltd. (“ Ventripoint ” or the “ Company ”)(TSXV:VPT ) ( OTC:VPTDF), announces that it has filed amended and restatedunaudited condensed consolidated interim financial statements for thethree and six months ended June 30, 2021 (the "AmendedStatements") and related amended and restated management'sdiscussion and analysis. The Amended Statements were required tocorrect accounting errors, which were identified during an internalreview for the purposes of completing the recently announcedfinancing.
Management has restated the current period presentedfor the three and six month period ended June 30, 2021 to correct thefollowing:
On February 2, 2021, the Company issued 666,666 commonshares to a consultant in payment of $60,000 of consulting fees. Thecommon shares issued had a price of $0.19 based on the fair value. Thecompany previously recorded this transaction at a deemed price of$60,000. The financial statements have been restated to correctlyrecord the fair value of the shares issued of $126,667 and to record aloss on debt settlement of $66,667.
On February 23, 2021 the Company issued 96,961 commonshares in payment of $23,270 of interest owing on the ConvertibleDebentures I and II. The common shares issued had a price of $0.41based on the fair value. The company previously recorded thistransaction at a deemed price of $23,274. The financial statementshave been restated to correctly record the fair value of the sharesissued of $39,754 and to record a loss on debt settlement of$16,480.
Management has restated the comparative periodspresented for the three and six month period ended June 30, 2020 tocorrect the following:
Financing costs recorded on convertible debentures andthe revaluation adjustment on its derivative warrants to correct theinitial recognition of the convertible debt issued in 2020. On initialrecognition, the conversion feature was incorrectly recorded as aderivative liability rather than as an adjustment to equity. Theadjustment resulted in a decrease to derivative liabilities of$303,821, an increase in convertible debt of $441,370, a decrease innet loss of $388,743 and a decrease in equity of $526,292.
The amendment of the debenture was treated as anextinguishment of the old debenture and recognition of a new debenturewith a gain on modification of $35,329 recognized in the statement ofprofit and loss. The adjustment resulted in a decrease in net loss of$35,329 and a decrease to convertible debt of $35,329.
To record accrual of $17,000 to record options payablethat were granted as a bonus to management in 2020. The adjustmentresulted in an increase in net loss of $17,000 and an increase inliabilities of $17,000 for options to be issued.
To record impairment on inventory of $21,207, resultingin an increase to net loss of $21,207 and a decrease in inventory of$21,207.
To correct the fair value of the CEBA Loan recorded. InApril 2020, the Company received a $40,000 loan through the CanadaEmergency Business Account program (“CEBA”). Subsequent to June30, 2020, the forgivable portion of the loan has been accounted for asa government grant and the company recorded a benefit of $10,000 asOther Income. The adjustment resulted in a decrease in loan payablesof $10,000 and a decrease in net loss of $10,000.
To adjust the foreign exchange variance of $2,710 toother comprehensive income.
$190,000 was adjusted to operating and financingcashflows to reflect working capital items to their correctcategories.
In connection with thefiling of the Amended Statements, the Company is also filing (i)amended and restated management's discussion and analysis incompliance with the requirements of National Instrument 51-102Continuous Disclosure Obligations, and (ii) CEO and CFO certificationsin compliance with National Instrument 52-109 Certification ofDisclosure in Issuers’ Annual and Interim Filings.
ABOUT VENTRIPOINT DIAGNOSTICSLTD.
Ventripoint has become an industry leader in theapplication of AI (Artificial Intelligence) to echocardiography.Ventripoint’s VMS products are powered by its proprietary KBRtechnology, which is the result of a decade of development andprovides accurate volumetric cardiac measurements equivalent to MRI.This affordable, gold-standard alternative allows cardiologistsgreater confidence in the management of their patients. Providingbetter care to patients serves as a springboard and basic standard forall of Ventripoint’s products that guide our future developments. Inaddition, VMS+ is versatile and can be used with all ultrasoundsystems from any vendor supported by regulatory market approvals inthe U.S., Europe and Canada. For more information, please visitwww.ventripoint.com
FOR FURTHER INFORMATIONCONTACT
This news releasecontains forward-looking statements and forward-looking informationwithin the meaning of applicable securities laws. The use of any ofthe words “expect”, “anticipate”, “continue”,“estimate”, “objective”, “ongoing”, “may”, “will”,“project”, “should”, “believe”, “plans”, “intends”and similar expressions are intended to identify forward-lookinginformation or statements. The forward-looking statements andinformation are based on certain key expectations and assumptions madeby the Company. Although the Company believes that the expectationsand assumptions on which such forward-looking statements andinformation are based are reasonable, unduereliance should not be placed on the forward-looking statements andinformation because the Company can give no assurance that they willprove to be correct. Since forward-looking statements and informationaddress future events and conditions, by their very nature theyinvolve inherent risks and uncertainties. Actual results could differmaterially from those currently anticipated due to a number of factorsand risks. Factors which could materially affect such forward-lookinginformation are described in the risk factors in the Company’s mostrecent annual management’s discussion and analysis that is availableon the Company’s profile on SEDAR at www.sedar.com .
Readers are cautionedthat the foregoing list of factors is not exhaustive. Theforward-looking statements included in this news release are expresslyqualified by this cautionary statement. The forward-looking statementsand information contained in this news release are made as of the datehereof and the Company undertakes no obligation to update publicly orrevise any forward-looking statements or information, whether as aresult of new information, future events or otherwise, unless sorequired by applicable securities laws.
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