PowerBand Announces Filing of Quarterly Financial Statements

Rhea-AI Summary

PowerBand Solutions Inc. reported its financial results for Q2 of 2020, highlighting total revenue of $409,330, down from $566,601 in Q2 2019. The company faced a net loss of $2,384,849, compared to a loss of $1,109,882 the previous year. Despite these challenges, PowerBand launched its D2D Auto Auctions platform, achieving a successful pilot program with a national ridesharing company, selling over 230 vehicles in one day. Furthermore, its subsidiary, MUSA Auto Finance, secured a $300 million financing facility and plans to expand operations.

Positive

• Successful launch of D2D Auto Auctions platform with strong dealer interest.
• Sold over 230 vehicles in one day during a pilot with a national ridesharing company.
• MUSA Auto Finance secured a $300 million financing facility to expand lease originations.

Negative

• Total revenue decreased by $157,271 (27.8%) compared to Q2 2019.
• Net loss increased by $1,274,967 (115%) compared to Q2 2019.

VANCOUVER, BC / ACCESSWIRE / August 31, 2020 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(FRA:1ZVA) ("PowerBand", "PBX" or the "Company") announces the filing of its condensed interim consolidated financial statements, MD&A and related CEO and CFO certificates for the three and six month periods ended June 30, 2020. These documents can be found under the Company's SEDAR profile at www.sedar.com.

Total Revenue for the three months ended June 30, 2020 was $409,330, as compared to $566,601 for the same period in 2019. The Net Loss for the period was $2,384,849, as compared to a Net Loss of $1,109,882 for the same period in 2019.

"In the second quarter of 2020 PowerBand continued with the advancement of its comprehensive online platform for the purchase, sale, trade-in, and financing of new and used vehicles," said PowerBand CEO Kelly Jennings. "The D2D Auto Auctions ("D2D") platform in the U.S. was commercialized and there was great interest from the dealer community, including a successful pilot program for a national ridesharing company. That pilot program led to a very successful auction for the ridesharing company in the third quarter of 2020, where over 230 vehicles were sold in one day."

Also in the third quarter new and used vehicle lease originations re-commenced for MUSA Auto Finance, LLC ("MUSA"), which is 60-per-cent owned by PowerBand, in the states of Texas, Florida and California. MUSA is presently looking to expand lease originations to an additional 13 states. MUSA has secured an initial USD $300-million finance facility with a major U.S. financial institution. Once that facility has been utilized it will be securitized, resulting in the replenishing of the original USD $300 million, which the company believes will happen many times annually.

Added Jennings: "We are very excited about the growth of D2D and the re-launch of MUSA in the United States. We continue to achieve milestones that we have set for the Company and we are looking forward to continued advancements of the PowerBand virtual platform and to the announcement of additional strategic partnerships in the months ahead."

About PowerBand Solutions Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric- and non-electric vehicles, on smart phones or any other online digital devices, from any location. PowerBand's transaction platform - being trademarked under DRIVRZ - is being made available across North American and global markets.

For further information, please contact:
Richard Goldman
VP Corporate Development
P: 1-866-768-7653
rgoldman@powerbandsolutions.com

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, we cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as at the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

SOURCE: PowerBand Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/604165/PowerBand-Announces-Filing-of-Quarterly-Financial-Statements

FAQ

What were PowerBand Solutions' Q2 2020 financial results?

In Q2 2020, PowerBand reported total revenue of $409,330 and a net loss of $2,384,849.

How did PowerBand Solutions perform compared to Q2 2019?

PowerBand's revenue decreased from $566,601 in Q2 2019 to $409,330 in Q2 2020, while the net loss grew from $1,109,882 to $2,384,849.

What is the D2D Auto Auctions platform launched by PowerBand Solutions?

D2D Auto Auctions is a platform for buying and selling vehicles that generated significant dealer interest and saw successful vehicle sales during its pilot program.

What financing facility did MUSA Auto Finance secure?

MUSA Auto Finance secured a $300 million financing facility with a major U.S. financial institution to expand its lease originations.

What are the future plans for PowerBand Solutions after Q2 2020?

PowerBand aims to continue expanding its D2D platform and MUSA's operations, with expectations for additional strategic partnerships.