Toronto, Ontario--(Newsfile Corp. - August 8, 2022) - Personas Social Incorporated (TSXV: PRSN) (the "Company") announces that the Company has filed its 2021 year end financial statements with SEDAR.
Throughout 2020 and 2021 the Company had engaged in corporate restructuring efforts in a drive towards profitability. The Company's objective was to fund growth by generating free cashflow to spend towards sales growth initiatives. To achieve this, the Company focussed solely on its revenue generating service, Peeks Social. This decision allowed the Company to streamline its operations resulting in a significant reduction in expenses while maintaining sales. The Company's 2020 year-end financials were calculated for a period of 10 months compared to 12 months for 2021. On a normalized basis and before extraordinary items, expenses for 2021 were $2,677,742 compared to $4,442,408 for 2020. Normalized revenues held steady at $3,839,064 for 2021 compared to $3,839,836 in 2020. Losses before extraordinary items were reduced from $ 2,834,346 in 2020 (annualized) to $1,109,617 in 2021, which represents 61% decrease in loss for the same level of activity.
There were three extraordinary items affecting the Company's balance sheet in 2021; impairment of Goodwill, a change to the Company's recorded assets pertaining to a corporate lease agreement and a reserve against potential liability pertaining to lease termination.
The Company identified an impairment to goodwill equalling $2,969,585. Although Goodwill is a intangible non-cash item, it was recorded as a loss as per IFRS standards as a result of amalgamation transaction took place in 2018, and as part of the restructuring efforts, the Company reassessed this intangible assets estimated value and reach to the above-mentioned impairment. Also, the Company terminated its corporate lease of the premises at 181 University Ave in Toronto. As per IFRS 16 standards corporate leases are treated as an asset. Although the Company did not own the premises, the termination of the lease resulted in $126,333 gain and corresponding reduction of Company's assets and liabilities. The Company has also taken a $1,129,456 reserve against potential liability resulting from an existing lawsuit filed by the Company's previous landlord. The Company has filed a countersuit and expects the issue to be resolved in the next 2 years.
Management is very pleased to have accomplished these results.
For further information, please contact:
Personas Social Incorporated
Chairman & Chief Executive Officer
Mark Itwaru email@example.com
This news release contains forward-looking statements relating to the expected timing of the filing of the Annual Filings. 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. Important factors that could cause actual results to differ materially from the Corporation's expectations are risks detailed from time to time in the filings made by the Corporation with securities regulations. 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 of the date of this news release and the Corporation will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
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