ImagineAR Responds to Continuous Disclosure Review
ImagineAR (IPNFF) has announced significant financial restatements following a British Columbia Securities Commission review. The company will amend and re-file interim financial statements and management discussion analyses for periods ending November 30, 2022, February 28, 2023, and May 31, 2023, due to material revenue misstatements.
Key disclosures include significant customer concentration risk, with one major customer contributing 52% and 66% of revenue during 2022 and 2023, respectively. Notable write-offs of accounts receivables from this customer amounted to $39,952 in 2022 and $173,547 in 2023.
The company also clarified that 10,000,000 common shares were issued on November 22, 2023, initially recorded as a transaction cost but later reclassified as share-payment compensation valued at $400,000. A previously disclosed refundable deposit for a Southern United States property project was returned to the original providers, not to the company.
ImagineAR (IPNFF) ha annunciato significative rettifiche finanziarie a seguito di una revisione da parte della British Columbia Securities Commission. L'azienda modificherà e ripresenterà i bilanci finanziari intermedi e le analisi di discussione della direzione per i periodi conclusisi il 30 novembre 2022, il 28 febbraio 2023 e il 31 maggio 2023, a causa di errori materiali nelle entrate.
Le divulgazioni chiave includono un significativo rischio di concentrazione della clientela, con un cliente principale che ha contribuito rispettivamente al 52% e al 66% delle entrate nel 2022 e nel 2023. Le cancellazioni notevoli dei crediti verso questo cliente ammontano a $39.952 nel 2022 e $173.547 nel 2023.
L'azienda ha anche chiarito che 10.000.000 di azioni ordinarie sono state emesse il 22 novembre 2023, inizialmente registrate come costo di transazione ma successivamente riclassificate come compenso in azioni valutato a $400.000. Un deposito rimborsabile precedentemente divulgato per un progetto immobiliare nel sud degli Stati Uniti è stato restituito ai fornitori originali, non all'azienda.
ImagineAR (IPNFF) ha anunciado importantes rectificaciones financieras tras una revisión de la British Columbia Securities Commission. La empresa enmendará y volverá a presentar los estados financieros intermedios y los análisis de discusión de la dirección para los períodos que finalizan el 30 de noviembre de 2022, el 28 de febrero de 2023 y el 31 de mayo de 2023, debido a declaraciones erróneas materiales de ingresos.
Las divulgaciones clave incluyen un riesgo significativo de concentración de clientes, con un cliente mayor que contribuyó con el 52% y el 66% de los ingresos durante 2022 y 2023, respectivamente. Las cancelaciones notables de cuentas por cobrar de este cliente ascendieron a $39,952 en 2022 y $173,547 en 2023.
La empresa también aclaró que se emitieron 10,000,000 de acciones comunes el 22 de noviembre de 2023,registradas inicialmente como costo de transacción pero posteriormente reclasificadas como compensación en acciones valoradas en $400,000. Un depósito reembolsable divulgado anteriormente para un proyecto de propiedad en el sur de Estados Unidos fue devuelto a los proveedores originales, no a la empresa.
ImagineAR (IPNFF)는 브리티시 컬럼비아 증권위원회(British Columbia Securities Commission)의 검토 후 중요한 재무 수정사항을 발표했습니다. 이 회사는 2022년 11월 30일, 2023년 2월 28일 및 2023년 5월 31일 종료된 기간에 대한 중간 재무제표 및 경영 논의 분석을 수정하고 재제출할 것입니다. 이는 재무적 수익의 중대한 오해로 인한 것입니다.
주요 공시는 고객 집중 위험이 크게 있다는 것으로, 한 주요 고객이 2022년과 2023년 동안 각각 52%와 66%의 수익을 차지했습니다. 이 고객으로부터의 매출채권의 주목할 만한 상각액은 2022년에 $39,952, 2023년에 $173,547에 달합니다.
회사는 또한 2023년 11월 22일에 10,000,000주의 보통주가 발행되었으며, 처음에는 거래 비용으로 기록되었지만 이후 $400,000 가치의 주식 지급 보상으로 재분류되었다고 밝혔습니다. 미국 남부 부동산 프로젝트에 대한 이전에 공시된 환불 가능 보증금은 회사가 아니라 원래 제공자에게 반환되었습니다.
ImagineAR (IPNFF) a annoncé d'importantes rectifications financières à la suite d'un examen par la British Columbia Securities Commission. L'entreprise modifiera et déposera à nouveau ses états financiers intermédiaires et ses analyses de discussion de direction pour les périodes se terminant le 30 novembre 2022, le 28 février 2023 et le 31 mai 2023, en raison d'erreurs matérielles dans les revenus.
Les divulgations clés incluent un risque significatif de concentration de clients, un client majeur contribuant respectivement à 52 % et 66 % des revenus en 2022 et 2023. Des amortissements notables des comptes clients de ce client se sont élevés à 39 952 $ en 2022 et 173 547 $ en 2023.
L'entreprise a également précisé que 10 000 000 d'actions ordinaires ont été émises le 22 novembre 2023, initialement enregistrées comme un coût de transaction puis reclassées comme une rémunération en actions d'une valeur de 400 000 $. Un dépôt remboursable précédemment communiqué pour un projet immobilier dans le sud des États-Unis a été restitué aux fournisseurs d'origine, et non à l'entreprise.
ImagineAR (IPNFF) hat bedeutende finanzielle Korrekturen nach einer Überprüfung durch die British Columbia Securities Commission angekündigt. Das Unternehmen wird die Zwischenfinanzberichte und die Managementdiskussionen für die Zeiträume, die am 30. November 2022, 28. Februar 2023 und 31. Mai 2023 enden, aufgrund erheblicher Fehler bei den Einnahmen ändern und erneut einreichen.
Wesentliche Offenlegungen umfassen ein erhebliches Risiko der Kundenkonzentration, wobei ein Hauptkunde 52% und 66% der Einnahmen in den Jahren 2022 und 2023 beitrug. Nennenswerte Abschreibungen von Forderungen aus Lieferungen und Leistungen von diesem Kunden beliefen sich auf 39.952 USD im Jahr 2022 und 173.547 USD im Jahr 2023.
Das Unternehmen klärte außerdem, dass am 22. November 2023 10.000.000 Stammaktien ausgegeben wurden, die zunächst als Transaktionskosten verbucht, dann jedoch als Aktienvergütung im Wert von 400.000 USD umklassifiziert wurden. Eine zuvor offengelegte rückzahlbare Einzahlung für ein Immobilienprojekt im Süden der Vereinigten Staaten wurde an die ursprünglichen Anbieter zurückgegeben, nicht an das Unternehmen.
- None.
- Material misstatement of revenue figures requiring financial restatements
- High customer concentration risk (66% revenue from single customer in 2023)
- Significant bad debt write-offs ($173,547 in 2023)
- Failed property acquisition attempt in Southern United States
- Share dilution through issuance of 10M shares
Vancouver, British Columbia--(Newsfile Corp. - February 7, 2025) - ImagineAR (CSE: IP) (OTCQB: IPNFF) (FSE: GMS1), As a result of a review by the British Columbia Securities Commission, we are issuing the following press release to correct and clarify our disclosure.
The Company will amend and re-file the interim financial statements and corresponding management discussion and analysis where revenue figures did not conform with International Financial Reporting Standards and were materially misstated for the periods ending November 30, 2022, February 28, 2023, and May 31, 2023. The revenue figures were adjusted in the company's annual audited financial statements for the year ended August 31, 2022. The Company's 2023 interim financial statements incorporated the prior 2022 interim financial statements as comparatives and, as a result, the company's 2023 interim financial statements and management discussion and analysis that contain comparative interim 2022 information will also be amended and re-filed. At the time the 2023 interim financial statements were certified by the CEO and CFO, the Company determined that the year end financial statements were adjusted so there was no need to adjust the comparable 2022 interim statements.
The statement disclosed in the August 31, 2023 annual financial statements, "Management does not consider the Company to have significant concentrations of credit risk", will be revised in the amended and re-filed financial statements as there was concentration and credit risk with one customer. The Company's major customer contributed to
With respect to the disclosure in paragraph 2 on page 5 of the management discussion and analysis for the above periods, the shares were issued on November 22, 2023. The potential purchase of a property located in the Southern United States ("Project") was not successful and the refundable deposit was returned to Gurdip Panaich and the other individual. The Company previously disclosed that a director and another individual provided a refundable deposit escrow on behalf of the Company. The Company would like to clarify that the refundable deposit was not owned by the Company, and it was not refunded to the Company when the Project did not proceed. The Company issued 10,000,000 common shares in consideration for funding committed and services provided for the Company to meet competitive bidding requirements for the Project detailed on June 25, 2023. The Company initially recorded the consideration as a transaction cost of the Project in the Company's financial statements during the period ended November 30, 2023. During the year ended August 31, 2024, an audit adjustment was made to correct the fair value of the shares to
The quantitative forward-looking information below was based on the following:
i. The interim May 31, 2024 MD&A discloses the Company signed a license agreement with S3iai and that the "total value for this license agreement is
- The contract valuation of
$203,397 was calculated based on the USD$150,000 over three years converted into Canadian Dollars. - No revenue was recorded to date
ii. On May 1, 2023, the Company announced contracts worth
- The amount of
$533,000 was the total bookings, which was the aggregation of all the executed contracts, of which$192,000 was recognized as revenue during the year ended August 31, 2023. However, due to unfavorable market conditions, the majority of the customers were not able to make payments, and ultimately the Company wrote off accounts receivable of$173,000 as bad debt expenses during the year ended August 31, 2023.
iii. On March 1, 2023 the Company executed a MoU with a global digital company to provide SDK licenses "expected to generate revenue in the range between
- The estimated revenue amounts were based the potential consideration to be received (translated to Canadian Dollars) in accordance with a non-binding Memorandum of Understanding with a global digital publishing company to purchase a range of minimum of 10 and a maximum of 25 three-year SDK mobile app licenses,
- No revenue was recorded
iv. The August 18, 2022 partnership with Hip Hop Hall of Fame Inc. was disclosed to provide the Company with "minimum revenue of US
- The amount disclosed was based on the consideration to be received in accordance to the executed agreement with Hip Hop Hall of Fame Inc.
- During the year ended August 31, 2023, the Company recorded revenue for the first year, which was
$127,982 (US$95,000) . - The Company collected
$10,124 (US$7,472) , but unfortunately had to write off the remaining accounts receivable of$118,596 (US$87,528) due to uncertainty with collectability.
At the start of fiscal 2024, the Company decided to remove the "Non-GAAP Measures" section from the MD&A. Given all the multi-year contracts that the Company previously entered into were terminated, there was no longer any important backlog information to disclose.
About ImagineAR
ImagineAR Inc. (CSE: IP) (OTCQB: IPNFF) (FSE: GMS1) is an augmented reality (AR) platform, ImagineAR.com, that enables businesses of any size to create and implement their own AR campaigns with no programming or technology experience. Every organization, from professional sports franchises to small retailers, can develop interactive AR campaigns that blend the real and digital worlds. Customers simply point their mobile device at logos, signs, buildings, (products, landmarks and more to instantly engage videos, information, advertisements, coupons,3D holograms and any interactive content all hosted in the cloud and managed using a menu-driven portal. Integrated real-time analytics means that all customer interaction is tracked and measured in real-time. The AR Enterprise platform supports both IOS and Android mobile devices and upcoming wearable technologies. The AR Platform is available as an SDK Plug-in for existing mobile apps.
For more information or to explore working with ImagineAR, please email info@imaginear.com, or visit www.imagineAR.com.
All trademarks of the property of respective owners.
ON BEHALF OF THE BOARD
Alen Paul Silverrstieen
President & CEO
(818) 850-2490
https://twitter.com/IPtechAR
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such information and statements.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240049
FAQ
What financial periods will IPNFF restate due to revenue misstatements?
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