Xcelerate, Inc. Issues Shareholder Update

Rhea-AI Summary

Xcelerate, Inc. (OTCQB:XCRT) CEO Mike O'Shea released a shareholder update highlighting challenges and progress in 2024. Key points include:

1. SEC's ban on their former auditor BF Borgers CPA PC necessitated a re-audit of financial statements.

2. New auditors, Bush and Associates CPA , completed the re-audit with no material deviations.

3. An amended registration statement was filed on July 30, 2024.

4. The company received new SEC comments on August 22, 2024, requiring additional third-party reports.

5. Semi-Annual Report highlights:

• Revenue of $1,577,720 from ESN Group operations in H1 2024
• Total assets increased to $1,829,980 as of June 30, 2024
• Related party loans increased to $1,706,110
• No derivative securities issued or outstanding

Positive

• Revenue of $1,577,720 generated from ESN Group operations in H1 2024
• Total assets increased to $1,829,980 as of June 30, 2024, compared to $309,639 in the previous year
• No derivative securities issued or outstanding, including warrants or options
• Successful completion of re-audit with no material deviations from initial audit

Negative

• SEC ban on former auditor BF Borgers CPA PC caused delays and additional costs for re-audit
• New SEC comments require additional third-party tax and valuation reports, potentially causing further delays
• Related party loans increased from $1,420,793 to $1,706,110, indicating reliance on insider funding
• Impediments to fundraising and expansion plans encountered in H1 2024

MAULDIN, SC / ACCESSWIRE / October 15, 2024 / Xcelerate, Inc.'s (OTCQB:XCRT) CEO, Mike O'Shea, today released this letter and shareholder update.

Dear Shareholder,

During the first six months of 2024, we encountered several impediments to our fundraising and expansion plans. Most notably, on May 03, 2024, the SEC issued an announcement concerning our independent auditors at the time, BF Borgers CPA PC. The announcement stated, "Ben Borgers and his audit firm, BF Borgers, CPA PC, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets," and permanently banned Mr. Borgers and his firm from ever practicing before the Commission. The SEC also announced that, while it would accept all audits issued by Borgers through the date of the announcement, it would not accept audits undertaken by BF Borgers as part of any registration statement. As a result, because we had filed a registration statement relating to an underwritten public offering and up-listing of our stock to trade on NASDAQ, this action required us to re-audit our financial statements that had been completed by BF Borgers for the years ended December 31, 2022, and 2023, and included in our S-1 registration statement.

We then retained new auditors, Bush and Associates CPA LLC, Henderson, NV, at significant cost, who worked tirelessly with our management to re-audit our financial statements for the years ended December 31, 2022, and 2023, as well as the financial statement audits for the years ended December 31, 2021, and 2022 for the ESN Group. We note that this second audit resulted in no material deviation from the initial audit.

Once these projects were completed, on July 30, 2024, we filed an amendment to our registration statement which included these new, re-audited financial statements.

Thereafter, on August 22, 2024, we received a new comment letter from the SEC. We are currently addressing these comments which, among other items, require us to include tax and valuation reports from third-party consultants in our next amendment.

Additionally, because we are a reporting company with the SEC pursuant to Regulation A, on September 24, 2024, we timely filed our Semi-Annual Report on Form 1-SA with the SEC. Some highlights of this filing include:

• Revenue of $1,577,720 was generated from the operations of ESN Group during the six months ended June 30, 2024. Because we did not own any interest in the ESN Group on June 30, 2023, we did not book any revenue or other results of operations attributable to the ESN Group for the six months ended June 30, 2023. Total revenue of the ESN Group for the year ended December 31, 2023, was $1,122,085.

• Total assets at June 30, 2024, were $1,829,980, compared to $309,639 at June 30, 2023.

• Other than the $400,000 raised in the Company's Reg A offering, all of the Company's operations to date have been funded by our CEO and our principal investors. These related party loans, which are not convertible, and which are interest-free, increased from $1,420,793 on December 31, 2023, to $1,706,110 at June 30, 2024.

• The Company continues to have no derivative securities issued or outstanding, including any warrants or options, and no shares were issued during 2024.

All of our SEC filings are available for viewing at www.sec.gov.

"I would personally and professionally like to thank our staff, advisors, and consultants as we continue our efforts to move forward with the implementation of our business plan," said Mike O'Shea, CEO.

Investors and stakeholders are encouraged to stay updated on the latest developments by visiting the Company's website at https://xcelerate.global.

ABOUT XCELERATE INC.

In May 2020, Xcelerate commenced implementation of a new business plan that encompasses two separate but related businesses within the medical industry, including (i) owning and licensing the rights to various forms of medical equipment and portfolio of patents, patents pending and technology licenses and (ii) development of virtual health technology to assist patients in developing countries obtain medical care by extending the reach of physicians through the use of that technology. For more information visit www.xcelerate.global or contact us at 854-900-2020 or email info@xcelerate.global.

SAFE HARBOR

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and actual results may differ materially from those projected in forward-looking statements resulting from various factors.

SOURCE: Xcelerate

View the original press release on accesswire.com

FAQ

What was Xcelerate's (XCRT) revenue for the first half of 2024?

Xcelerate (XCRT) reported revenue of $1,577,720 from ESN Group operations for the six months ended June 30, 2024.

Why did Xcelerate (XCRT) need to re-audit its financial statements in 2024?

Xcelerate (XCRT) had to re-audit its financial statements due to the SEC's ban on their former auditor, BF Borgers CPA PC, on May 03, 2024.

What was the total asset value of Xcelerate (XCRT) as of June 30, 2024?

Xcelerate (XCRT) reported total assets of $1,829,980 as of June 30, 2024, compared to $309,639 on June 30, 2023.

When did Xcelerate (XCRT) file its amended registration statement in 2024?

Xcelerate (XCRT) filed an amendment to its registration statement on July 30, 2024, which included the re-audited financial statements.