(TheNewswire)
Montréal - TheNewswire - July 5, 2021 - ZeU Technologies, Inc. (C NSX :ZEU. CN ) (OTC:ZEUCF) is pleased to disclosethat it has filed its 2020 Year EndAudited Financial Statements on SEDAR. The Financial Statementsincludes 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 offto NIL.
In November 2019, the Company received 24,000,000Kamari coins as consideration for the issuance of a convertibledebenture with a face value of $7,834,000. The transaction wasoriginally measured based on the fair value of the coins received,which the Company concluded could be estimated reliably based on thevolume and price of recent transactions of the coins.
Subsequent to the issuance of the December 31, 2019financial statements, it was determined that the price informationpreviously used may not continue to determine the future value theCompany would receive if it were to sell its coins in its principalmarket. Consequently, the Company revised its accounting for theacquisition of the coins and measured the transaction based on thefair value of the convertible debenture issued. As a result of therestatement, the assets and liabilities as at December 31, 2019decreased by $15.5 million and $21,000 respectively and have beenvalued at NIL at December 31, 2020 until such time as the coins may besold or used to repay the Kamari convertible debenture. On March 31,2021, the Company repaid $1,161,834 using 3,336,564 Kamari coins andwill recognize a gain on debt settlement in the quarter ending March31, 2021.
Future accounting treatment of digital assets nottrading on a market recognized by Canadian Regulators, like a futureDigital Exchange, will all be treated as such and will be valued atliquidation when a fiat Canadian cash counterpart is received andsecured in the Company bank accounts.
Management is expecting to implement major changes toits accounting and auditing processes to avoid a repeat of similardelays in filing in the future. The Company will communicate theseproposed 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 companythat has developed a state-of-the-art blockchain protocol, providingthe foundation for the next generation of encrypted and distributednetworks. Thanks to its high level of sophistication, ZeU’stechnology maximizes transparency, security and scalability as well asbig data management. ZeU’s strategy is to monetize blockchaintransactions in diverse sectors such as payment, gaming, data, andhealthcare.
Neither the CSE nor its RegulationServices Provider accepts responsibility for the adequacy or accuracyof this release.
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