Post by
BywrongK on Feb 05, 2023 3:44pm
Grafraud and FMS
1st - FMS funded Grafraud 100% but only got 40% ownership...why?
2nd FMS mngmnt tried to lend, then write off $$3,092,739 of FMS money to Grafraud. This ended up getting repaid to FMS, perhaps due to irate shareholders writing to OSC....WTF is going on here?
3rd - once Grafraud repaid the $3.09M....they looted it back at $200K/month, as previously posted over $1M went Grafrauds way 2021,2022 end Sept. Why?
this is based on financials posted to SEDAR by FMS. NOTHING MADE UP HERE
During the 2017 fiscal year, loan advances were made to Grafoid in the amount of $3,092,739 that, in substance, form part of the Company’s net investment in Grafoid. At September 30, 2017, Management determined that there was objective evidence of an impairment of its equity interest in Grafoid taking into consideration factors including Grafoid’s financial position and results from operations. As a result, Management estimated the recoverable amount of the Company’s investment in Grafoid to be $Nil and recognized an impairment of the carrying amount of the net investment in Grafoid after the application of the equity method. There is estimation uncertainty associated with determining the recoverable amount for the investment in Grafoid as it is a privately held research and development company, has a net asset deficiency and is dependent on future financings to continue to operate as a going concern. An impairment loss is reversed if there has been favourable change in the estimates used to determine the recoverable amount. During the year ended September 30, 2018, there was a change in circumstances that enabled Grafoid to make loan repayments to Focus in the amount of $3,092,739. In that year, Grafoid raised US$6,000,000 through a series of private placements which enabled them to repay the Company in full. As a result, $360,000 included in amounts due from related parties was reclassified to be included in the net investment of Grafoid. There was no change in the determination by management that the recoverable amount of the investment in associate is $Nil due to uncertainty as to whether or not Grafoid will be successful in raising further capital or achieving profitable operations in the future. Therefore, the net investment in Grafoid continues to be $Nil and partial impairment reversal was taken to ensure that the net investment remained $Nil all the while still illustrating a recovery of the long-term receivable. As at September 30, 2022, the Company’s ownership interest in Grafoid was 7.3%. The Company has no obligation to fund Grafoid beyond its value, which remains $Nil at September 30, 2022, due to the accumulated share of losses in Grafoid.