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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.
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