Telecure Technologies Inc. Announces Amended & Restated Interim Q1 and Q2 Financial Statements and MD&A of MyApps, Suspension of CEO Adnan Malik, and Continuing and Ongoing Role of Joshua Rosenberg as COO
VANCOUVER, BC, Dec. 10, 2021 /CNW/ - Telecure Technologies Inc. (CSE: TELE) (FSE: 6MZ) (the "Company" or "Telecure") announces that it will amend and refile the following past financial statements and management discussion and analysis ("MD&A") of its wholly-owned subsidiary, MyApps Corp. ("MyApps"): the condensed interim financial statements for the three months ended March 31, 2021 and the six months ended June 30, 2021 (the "MyApps Amended Financial Statements"), along with the corresponding restated MD&A for the three months ended March 31, 2021 (together with the MyApps Amended Financial Statements, the "MyApps Amended Financial Reports").
The Company also announces that Adnan Malik, the Company's CEO, has been suspended, pending the completion of an internal review, and that an unauthorized news release issued on December 7, 2021 by Mr. Malik is retracted in its entirety.
Restated Financial Statements
In preparing its third quarter financial results – the first since the completion of the plan of arrangement pursuant to which Telecure acquired the issued and outstanding securities of MyApps – Telecure's management became aware of three instances of incorrect classification under accounting standards by MyApps when it was a private company:
- the head office lease for MyApps met the definition of a lease under IFRS 16, Leases, resulting in the need to applying lease accounting and accordingly has amended the MyApps Amended Financial Statements to recognize a right-of-use asset and a lease liability on the balance sheet. The Company has also recognized depreciation on the right-of-use asset on a straight-line basis and interest expense on the lease liability;
- for the six months ended June 30, 2021, $304,000 (three months ended March 31, 2021 - $150,000) in loans to the Company from Telecure Technologies Inc. were previously recognized as revenues;
- for the six months ended June 30, 2021, $148,716 (three months ended March 31, 2021 - $74,358) in payments to certain officers of the Company were not disclosed as related party compensation.
The correct accounting for each of the above was included in Telecure's Q3 financial report for the nine months ended September 30, 2021.
In conjunction with the preparation of the Q3 financial report, the Audit Committee of the Board of Directors, with the assistance of special counsel, initiated an internal review ("Internal Review") in respect of these matters, which is currently ongoing.
The Company's CEO, Mr. Malik, a founder of MyApps, has been suspended pending completion of the Internal Review. The MyApps Amended Financial Reports will be filed shortly. Copies of the MyApps Amended Financial Reports will be available under the Company's profile on SEDAR at www.sedar.com. Each of the MyApps Amended Financial Reports will replace and supersede the respective previously filed original financial statements and corresponding management's discussion and analysis. Such previously filed original financial statements and management's discussion and analyses should be disregarded.
Retraction of December 7 news release
On December 7, 2021, an unauthorized news release was disseminated by the Company's CEO, Mr. Malik, containing disclosures that were incorrect regarding the Company's Chief Operating Officer, Joshua Rosenberg (the "Unauthorized Disclosure"). The full Board of Directors was only made aware of the news release issued by and quoting Mr. Malik following its public dissemination. Upon learning of this disclosure, the Company immediately requested a trading halt. Both the substance and process of this disclosure were erroneous. The Company retracts the entirety of the Unauthorized Disclosure, and confirms that Mr. Rosenberg continues to be the Company's Chief Operating Officer. He also continues to be Chair of the Board.
The Unauthorized Disclosure contained very serious allegations against Mr. Rosenberg. The Board has a well prescribed process with respect to allegations of this nature; these allegations were never brought to the full Board's attention prior to the Unauthorized Disclosure, and nothing to substantiate the allegations has since been provided to the Board.
On Behalf of the Board of Directors
Faizaan Lalani
Chair of the Audit Committee
About Telecure Technologies Inc.
Telecure is a U.S. focused health IT company that specializes in using technology to make healthcare more accessible and efficient. Telecure offers customized solutions for telemedicine needs. Through an acquisition strategy and unique customization capabilities, Telecure is focused on advancing its patient and user base. The Company provides a complete telemedicine solution via its platforms CallingDrTM and FindingDrTM.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future of the Company's business, its product offerings and plans for marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward- looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported.
The Canadian Securities Exchange (CSE) has not reviewed, approved or disapproved the contents of this news release.
SOURCE Telecure Technologies Inc.
Eli Dusenbury, Chief Financial Officer, [email protected]
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