Sat, 08 May 2021

PowerBand Clarifies Reported Gross Sales and Revenues

ACCESSWIRE
13 Apr 2021, 02:14 GMT+10

Gross sales will be reported monthly on total volume of dollar transactions on the DRIVRZ™ platform and offer an indication of future revenue from associated commissions and fees.

VANCOUVER, BC / ACCESSWIRE / April 12, 2021 / As usage of the DRIVRZ™ virtual marketplace by consumers and automotive dealers rises, PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ('PowerBand', 'PBX' or the 'Company') is reporting monthly gross platform sales as a method of indicating performance for investors in the Company.

PowerBand's gross sales are the total dollar value of transactions from the various components of the DRIVRZ™ platform, which continues to hit new monthly milestones.

As the Company has stated:

  • In March 2021, PowerBand recorded the best gross sales on record of CDN $11.5 million, a 44 per cent increase of the month.
  • As stated in the April 6, 2021 news release, year-to-date gross sales were CDN $26.3 million. This means the Company has already exceeded the entire annual gross sales for 2020 of CDN $21.7million by CDN $4.6 million, or 21 percent.
  • The gross margin for the period remained consistent in the range of 60% to 65%.

Gross sales are a Key Performance Indicator (KPI) that is acceptable for use by a Company to show platform performance. Gross sales are not, however, the revenues to the company, as defined under International Financial Reporting Standards ('IFRS') and GAAP.

'As a company, we report gross sales on DRIVRZ™ to ensure investors are getting a timely monthly update to gauge the performance of the DRIVRZ™ platform, ' said PowerBand CEO Kelly Jennings. 'We are on track to see DRIVRZ™ gross sales continue to increase in the foreseeable future, which means our revenues will also increase.'

To clarify, gross sales are expected to translate into increased PowerBand revenues, which are determined by commissions, fees and other arrangements that represent a percentage of gross sales carried out on the DRIVRZ™ platform. Revenue results will be released in audited statements as required by regulators.

Going forward, PowerBand will continue reporting monthly gross sales to investors, to provide this consistent indication of the DRIVRZ™ platform's performance.

PowerBand expects to see a steady growth in gross sales in 2021. The Company will be offering the DRIVRZ™ consumer-to-consumer virtual auction portal, branded DrivrzXchange, launched in March in northwest Arkansas, to other key U.S. markets. The DRIVRZ™ virtual platform, which includes the DRIVRZ leasing and financing component, will also be promoted in the second quarter to MotorTrend.com's monthly on-line audience of up to 12 million drivers.

We do wish to clarify details of the December 14, 2020 press release: The 'sales' of $1,024,762 reported for the first six months of 2020 are IFRS-GAAP revenue. The 'gross sales' of $21.7 million for the full 12 months of 2020 is non-IFRS-GAAP revenue. It's our intention to report Gross Sales to provide consistent reporting monthly and without violating any commercial non-disclosure agreements with our lending partners with respect to revenue reporting.

The Company will be offering a Zoom Meeting for anyone who would like to ask any questions or need any further clarifications.

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.

For further information, please contact:

Kelly Jennings
Chief Executive Officer
E: info@powerbandexchange.com
P: 1-866-768-7653

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Non-IFRS Measures:

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

SOURCE: PowerBand Solutions Inc.



View source version on accesswire.com:
https://www.accesswire.com/639949/PowerBand-Clarifies-Reported-Gross-Sales-and-Revenues

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