VANCOUVER, BC / ACCESSWIRE / April 12, 2021 / As DRIVRZ™ increases the number of leases financed for drivers and automotive dealers on its virtual platform, PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ('PowerBand,' 'PBX' or the 'Company') wishes to clarify the income reporting and liability aspects of its reporting.
Under pre-existing agreements with financial institutions, it is DRIVRZ™ role to receive requests for leasing and financing, approve the credit worthiness of applicants and accept the lease. These leases - carried out with the proprietary software of our DRIVRZ™ Finance division - are then formatted to meet the contract standards and protocols of our lending partners.
Once complete, usually within a business day or less, our financial lenders assume the lease, its benefits, and all potential liabilities.
PowerBand reports DRIVRZ Finance leasing sales as part of Company gross revenues, which in the case of DRIVRZ Finance are the adjusted capitalized cost on a lease (initial balance on the lease). Revenues derived from commissions, fees and other associated arrangements that form a percentage of the executed leases are paid in full at the time a lease contract is handed over to our lending partners.
At no time does PowerBand retain these leases on its books, nor does it assume the liability of non-performing leases,' said PowerBand CEO Kelly Jennings. PowerBand's associated lease revenues - fees and commissions - are immediate upon handing over a lease and are not compromised or reduced by any non-performance of the leases which our financial lenders assume from PowerBand and their DRIVRZ™ platform.'
'Simply stated, we sell the leases to our financial lenders, so PowerBand assumes no credit risk or customer default risk,' said PowerBand CEO Kelly Jennings.
'Because the lease and vehicle are transferred to our lender, we bear no risk for the actual cost or residual cost of the vehicle. In essence, we are able to recognize upfront revenue from acquiring a customer, transacting and selling the lease, as opposed to earning those revenues over the four-to-five-year life of the agreement as would be the case in a warehouse lease facility.'
The terms of these forward-flow sale agreements are confidential, and the Company is not able to publicly disclose the names of the lenders without their consent. To date, PowerBand has arranged lending agreements valued at $600 million, which are replenished as leases are securitized.
Powerband remains committed to transparency to its investors in order to maintain confidence in the organization. A member of PowerBand's executive is happy to discuss these lease reporting details with investors upon request.
About PowerBand Solutions, Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric and non-electric vehicles, on any phone, tablet or PC connected to the internet. PowerBand's transaction platform - being trademarked under DRIVRZ™ - is being made available across North American and global markets.
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This news release contains forward-looking statements relating to the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as 'will,' 'may,' 'should,' 'anticipate,' 'expects' and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. 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.
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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 at the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
SOURCE: PowerBand Solutions Inc.
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