(TheNewswire)
Montréal, QC - TheNewswire - July 31, 2023 - ZeU Technologies, Inc. (CSE:ZEU) (OTC:ZEUCF) would like toinform its shareholders that it has posted its Audited FinancialStatements for the year ended March 31, 2023 and the fifteen monthperiod ended March 31, 2022, and the corresponding ManagementDiscussion & Analysis on SEDAR.
Since the withdrawal of the proposed transaction with a Chinese entityin August 2018, Management has been forced to operate with limitedcapabilities. From having to define from scratch, finance and developa new business model to the upcoming deployment of some of itsproducts, the Company has been limited in its capacity to concludeacquisitions and see to its financing needs due to the existence of asignificant debt related and inherited from the proposed foundingtransaction.
Attempts to mitigate the situation and renegotiate the last importantblock of debts owed since the maturation of the 2018 debentures in2020 have failed.
No compensation is currently paid to directors, management,consultants, or employees. Important amounts accrued and related tocompensation to management and consultants have been eliminated viamutual agreements with the creditors.
On March 31, 2023, the largest group of creditors agreed to convertalmost $10,000,000 of debt against the issuance of 4,130,000 shares ofthe Company and a promissory note of $175,000 with a payment schedulespread over 2 years. The initial payment has been met but theCompany has failed to meet its payment obligation on June 15, 2023.
Current design and development are severely hindered as all externaldevelopers have been furloughed for more than 3 quarters and theCompany must rely on directors who volunteer to advance thedevelopment and negotiations with no financial resources beingavailable.
Summary of the Results of Operation
For the year ended March 31, 2023, the Company recorded a net gain of$4,988,774 (2022 – $14,274,215 loss), and had accumulative deficitof $26,227,388 (2022 - $31,216,162).
The following table provides a summary of the Company’s financialoperations for the prior two fiscal years.
Twelve months ended March 31, 2023
The Company incurred a net gain of $4,988,774 in theyear. Operating expenses were $2,699,541, and the Company recorded again of $8,020,949 in the debt settlements and recognized a loss of$446,400 in the impairment of intangible assets.
Fifteen months ended March 31, 2022
The Company incurred a net loss of $14,274,215 in thefifteen months. Operating expenses were $5,790,195, and the Companyrecognized a loss of $23,755 upon the sale of certain marketablesecurities. The Company also recorded a recognized gain of $4,491,806on the repayment of $3,917,000 Kamari convertible debentures plusaccrued interest by transferring 18,705,115 Kamari tokens to thedebenture holder. The Company recognized a loss of $13,320,813 on theimpairment of goodwill in a subsidiary.
Summary of the Quarterly Results
The following table outlines selected unaudited financial informationof the Company for the last eight quarters.
The main factors contributing to variances to thequarters up to March 31, 2023, were a gain of $8,020,949 in the debtsettlement on March 31, 2023, a gain on Kamari convertible debtsettlement in March 2022 of $3,391,988, a loss of $13,320,813 onimpairment of goodwill in March 2022, a loss of $23,874 on sale ofmarketable securities in September 30, 2021, and stock-basedcompensation of $727,630 in June 30, 2021.
ON BEHALF OF THE BOARD OF DIRECTORS
“MarkBillings ”
Mark Billings, CFO
ZeU is a forward-thinking Canadian technology company that hasdeveloped a state-of-the-art DLT
protocol, providing the foundation for the next generation ofencrypted and distributed networks. Thanks
to its high level of sophistication, ZeU’s technology maximizestransparency, security and scalability as
well as big data management. ZeU’s strategy is to monetize DLTtransactions in diverse sectors such as
payment, gaming, data, and healthcare.
The Canadian Securities Exchange(CSE) has not reviewed and does not accept responsibility for theadequacy or the accuracy of the contents of this release.
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