Intellabridge Technology Corporation Announces Change of Corporate Auditor, Change of Year End and Filing of Restated Financial Statements for the Years Ended December 31, 2018 and December 31, 2019
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Menlo Park, California and Vancouver, British Columbia–(Newsfile Corp. – April 29, 2022) – Intellabridge Technology Corporation (CSE: KASH) (OTCQB: KASHF) (FSE: KASH) (the “Company” or “Intellabridge”) , announces the filing of restated financial statements and a management report for the years ended December 31, 2018 and December 31, 2019, the change of auditor and the change of year-end.
Restatement of financial statements
The consolidated financial statements for the year ended December 31, 2018 have been restated. From August 2018 to November 2018, Cryptanite purchased telecom minutes from an entity called Travel Data Solutions LLC. These purchases totaled $1,084,360 and were recorded in Cryptanite’s cost of sales. From August 2018 to November 2018, Cryptanite sold telecom minutes to an entity called Success Zone Technology Limited. These sales totaled $1,100,649 and were recorded in Cryptanite’s sales of products and services. The difference between these sales and the cost of sales was a recorded profit of $16,289.
It was recently determined from all available information that Travel Data Solutions LLC and Success Zone Technology Limited are both owned and controlled by the same person. At that time, the individual in question did not disclose this information during the due diligence process. Following the restatement, the net income of $16,289 was applied against the impairment of the previously recognized security deposit for the amount that Cryptanite had paid in connection with the acquisition of this income stream.
Accordingly, Cryptanite has revised its accounting for the purchase and sale of telecommunications minutes, eliminating the recording of sales, cost of sales and resulting profits related to such telecommunications minutes. The telecom business has not been part of Cryptanite’s business since 2018.
commissary change in accounts
The Company has, after a review of audit services and requirements in the blockchain industry, agreed with Dale Matheson Carr-Hilton Labonte LLP (“Former Auditor”) to terminate the engagement effective March 18, 2022, and appointed EBT Chartered Professional Accountants (“Successor Auditor”) as external auditors effective April 25, 2022, until the close of the next annual general meeting of shareholders of Inllabridge.
There were no reservations or modified opinions in any of the former auditor’s audit reports for any financial period during which the former auditor was the auditor of the Company, except for the restated financial statements December 31, 2018 and December 31, 2019. Intellabridge confirms that there are no “Reportable Events” (as the term is defined in NI 51-102 Disclosure Obligations ongoing) between the Company and the former auditor and, in his opinion, there are no pending reportable events.
The Company and the Board of Directors would like to thank Dale Matheson Carr-Hilton Labonte LLP for the audit services to date.
In accordance with NI 51-102, the notice of change of auditor, together with the required letters from the former auditor and the successor auditor, have been reviewed by the Company’s Audit Committee and have been filed on SEDAR accordingly.
As part of the change of statutory auditors, the Company is changing its year-end to March 31, instead of its current year-end to December 31, in order to give the successor to the statutory auditors time to carry out their audit of annual financial statements. The year-end change notice required under National Instrument 51-102 has been filed under the Company’s profile at www.sedar.com. Accordingly, the company will release audited financial results for a 15-month period from January 1, 2021 through March 31, 2022. Thereafter, Intellabridge will revert to a regular quarterly reporting schedule based on a March 31 year-end, with fiscal quarters ending on the last day of June, September and December of each year.
About Intellabridge Technology Corporation
Intellabridge Technology Corporation (CSE: KASH) (OTCQB: KASHF) (FSE: KASH) operates Kash, a digital banking platform based on a hybrid of decentralized finance, stablecoin technology and traditional financial services. The Kash product includes DeFi interest-bearing savings accounts, stablecoin verification, fiat-crypto on-ramps, synthetic stocks, ETF and commodity investments, and other DeFi banking, with plans to offer debit cards, virtual cards, Apple Pay, Google Pay in a growing number of markets globally.
The Kash platform is available on the web and on mobile at kash.io.
For more information on Intellabridge, visit www.intellabridge.com.
ON BEHALF OF THE BOARD OF DIRECTORS
INTELLABRIDGE TECHNOLOGY CORPORATION
Maria Eagleton, COO
To contact Intellabridge:
E-mail: [email protected]
CSE does not accept responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, “forward-looking statements”). The use of the word “will” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. Undue reliance should not be placed on such forward-looking statements. Actual results obtained may differ from the information provided herein due to numerous known and unknown risks, uncertainties and other factors. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but there can be no assurance that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.
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