Toronto, Canada – The press wire – October 1, 2021 – Ventripoint Diagnostics Ltd. (“Ventripoint“or the”Society“) (TSXV: VPT) (OTC: VPTDF), announces that it has filed amended and restated unaudited condensed consolidated interim financial statements for the quarter and six-month period ended June 30, 2021 (the âAmended Statementsâ) and the amended and updated MD&A corresponding. The amended statements were to correct accounting errors, which were identified during an internal review in an effort to supplement the recently announced funding.
Management has restated the current period presented for the three and six month periods ended June 30, 2021 to correct the following:
On February 2, 2021, the Company issued 666,666 common shares to a consultant in payment of $ 60,000 in consulting fees. The issued common shares were priced at $ 0.19 based on fair value. The company previously recorded this transaction at a deemed price of $ 60,000. The financial statements have been restated to correctly account for the fair value of the issued shares of $ 126,667 and to record a loss on debt settlement of $ 66,667.
On February 23, 2021, the Company issued 96,961 common shares in payment of $ 23,270 of interest due on convertible debentures I and II. The issued common shares were priced at $ 0.41 based on fair value. The company previously recorded this transaction at a deemed price of $ 23,274. The financial statements have been restated to correctly account for the fair value of the issued shares of $ 39,754 and to record a loss on debt settlement of $ 16,480.
Management has restated the comparative periods presented for the three and six month periods ended June 30, 2020 in order to correct the following items:
The financing costs recognized on convertible debentures and the revaluation adjustment on its derivative warrants to correct the initial recognition of the convertible debt issued in 2020. On initial recognition, the translation item was incorrectly recognized as a derivative liability rather than an adjustment to equity. The adjustment resulted in a decrease in derivative liabilities of $ 303,821, an increase in convertible debt of $ 441,370, a decrease in net loss of $ 388,743 and a decrease in equity of $ 526,292.
The modification of the debenture was treated as an extinguishment of the old debenture and the recognition of a new debenture with a gain on modification of $ 35,329 recognized in the income statement. The adjustment resulted in a decrease in net loss of $ 35,329 and a decrease in convertible debt of $ 35,329.
To record a provision of $ 17,000 to record options payable that were granted as a management bonus in 2020. The adjustment resulted in an increase in net loss of $ 17,000 and an increase in liability of 17 $ 000 for options to be issued.
To record an impairment on inventory of $ 21,207, resulting in an increase in net loss of $ 21,207 and a decrease in inventory of $ 21,207.
To correct the fair value of the recognized CEBA loan. In April 2020, the Company received a loan of $ 40,000 under the Canada Emergency Business Account (âCEBAâ) program. After June 30, 2020, the grant portion of the loan was recorded as a government grant and the company recorded a benefit of $ 10,000 as other income. The adjustment resulted in a decrease in loans payable of $ 10,000 and a decrease in net loss of $ 10,000.
To adjust the foreign exchange difference of $ 2,710 to other comprehensive income.
$ 190,000 has been adjusted for operating and financing cash flow to reflect working capital items in their correct categories.
In connection with the filing of the amended declarations, the Company also files (i) the amended and updated MD&A in accordance with the requirements of Regulation 51-102 respecting Continuous Disclosure Obligations, and (ii) the attestations of the chief executive officer. management and the Chief Financial Officer in accordance with National Instrument 52-109 Certification of Disclosure in Annual and Interim Documents of Issuers.
ABOUT VENTRIPOINT DIAGNOSTICS LTD.
Ventripoint has become an industry leader in the application of AI (artificial intelligence) to echocardiography. Ventripoint’s VMS products are powered by its proprietary KBR technology, which is the result of a decade of development and provides precise volumetric cardiac measurements equivalent to MRI. This affordable and benchmark alternative allows cardiologists to have greater confidence in the management of their patients. Providing better patient care serves as the springboard and basic standard for all of Ventripoint’s products that guide our future developments. Additionally, VMS + is versatile and can be used with any ultrasound system from any vendor supported by market regulatory approvals in the United States, Europe, and Canada. For more information, please visit www.ventripoint.com
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This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “in progress”, “may”, “will”, “project”, ” should â,â believe â,â plans â,â intentions âand similar expressions are intended to identify forward-looking information or statements. Forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which these forward-looking statements and information are based are reasonable, One should not place undue reliance on forward-looking statements and information as the Company cannot guarantee that they will prove to be accurate. Because forward-looking statements and information deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. The factors that could have a material impact on this forward-looking information are described in the risk factors in the most recent annual MD&A of the Company which is available on the Company’s profile on SEDAR at www.sedar.com.
Readers are cautioned that the above list of factors is not exhaustive. The forward-looking statements included in this press release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this press release are made as of the date hereof and the Company assumes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. , unless required by applicable securities laws.