NO IMPACT ON CASHFLOWS AND BUSINESS OPERATIONS
TORONTO, Aug. 19,
2022 /CNW/ - Eddy Smart Home Solutions Ltd. (formerly
Aumento Capital VIII Corp.) ("Eddy" or the "Company") (TSXV: EDY)
today announced that after revisiting its interpretation and
application of certain technical accounting standards related to
non-cash consideration provided to a developer and customer (the
"Developer") through an amended exclusive supplier agreement dated
December 15, 2021 (the "Addendum"),
it will restate and refile its consolidated financial statements
for the year ended December 31, 2021,
which were originally filed on SEDAR on May
6, 2022, the condensed consolidated interim financial
statements for the three months ended March
31, 2022, which were originally filed on May 30, 2022, relevant comparative periods, and
the related management's discussion and analysis ("MD&A") for
those periods (collectively, the "Affected Disclosures").
On December 15, 2021, the Eddy
Smart Home Solutions Inc. entered the Addendum with the Developer
to amend an exclusive supplier agreement originally entered into in
January 2019. Pursuant to the
Addendum, Eddy Smart Home Solutions Inc. was obligated to issued to
the Developer 1,453,767 common shares and 1,900,000 common share
purchase warrants of the Company (the "RTO Securities") contingent
on the successful completion of the Company's reverse takeover
transaction (the "RTO Transaction") which was achieved on
January 12, 2022. In addition, the
Company agreed to issue 750,000 common shares of the Company
(together with the RTO Securities, the "Securities"), contingent on
the Developer providing contracts to the Company for at least
12,500 units at the Developer's condominium projects.
The board of directors of Eddy has determined that the Affected
Disclosures are required to be restated because of the magnitude of
the expected impact. For the year ended December 31, 2021, the impact is expected to be
isolated to the consolidated statement of financial position,
increasing prepaid expenses and contributed surplus by
approximately $1.6 million. For the
three months ended March 31, 2022,
the impact to prepaid expenses is expected to slightly less than
the December 31, 2021 impact, with a
further impact of an expected reduction to general and
administrative expenses and deficit of approximately $1.55 million, along with immaterial adjustments
to contributed surplus and revenue.
With the exception of potential cash flows received through the
exercise of the warrants, the restatement is not expected to have
an impact on the past, current or future cash flows of the
Company.
Management has determined that the application of the applicable
IFRS standards was done incorrectly with respect to how the
Securities were measured at the date of the amendment and
recognized once issued upon completion of the RTO Transaction.
Travis Allan, Chief Executive
Officer and Director of Eddy, said, "We take seriously our
obligation to provide accurate financial statements and we have
acted accordingly in providing this information".
The Company intends to file its restated financial statements
and the corresponding management discussion and analysis on or
about September 30, 2022.
About Eddy
Eddy is a North American provider and developer of residential
and commercial smart water metering products and monitoring
services, helping property owners protect, control, and conserve
water usage by combining water sensing devices with behavioural
learning software. For more detail on the Company's products or
corporate information please visit www.eddysolutions.com.
Forward-Looking Information and Statements
This news release contains forward-looking statements within the
meaning of applicable securities laws including, among others,
statements concerning our objectives, our strategies to achieve
those objectives, our performance, as well as statements with
respect to management's beliefs, estimates, and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance, or expectations that are not historical
facts. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "outlook",
"objective", "may", "will", "expect", "intent", "estimate",
"anticipate", "believe", "should", "plans", or "continue", or
similar expressions suggesting future outcomes or events. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management. Forward
looking information in this news release includes information
regarding the filing of the restated financial statements and the
expected changes that will be included therein. These statements
are not guarantees of future performance and are based on our
estimates and assumptions that are subject to risks and
uncertainties, including those described under the heading "Risk
Factors" in the Company's filing statement dated January 6, 2022 (a copy of which can be obtained
at www.sedar.com), which could cause our actual results and
performance to differ materially from the forward-looking
statements contained in this news release.
All forward-looking statements in this news release are
qualified by these cautionary statements. Except as required by
applicable law, the Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
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 Eddy Smart Home Solutions Ltd.