BCNN TEKUMO ANNOUNCES RECORD GROWTH & BREAKEVEN IN Q3 RESULTS

NEW YORK, Nov. 21, 2023 (GLOBE NEWSWIRE) -- Balincan USA Inc. ("Balincan" or the "Company") and Tekumo announced its financial results for the third quarter.

Revenue for the third quarter increased a record 194% over the second quarter to $846K. The first half of Q4 continues to grow at 70+% over Q3, and our current annualized revenue run rate exceeds $5 million.

Significantly, we established breakeven in our net ordinary income during the quarter.

FINANCIAL UPDATE

At the end of the quarter, we also reached an agreement with our convertible noteholders to exchange the outstanding debt and accrued interest on their matured notes for common shares that “meaningfully improves our balance sheet,” said Balincan Chief Financial Officer, Phillip Dignan.

Under the terms of the agreement, the note holders from our Series I and II Convertible Notes may convert $2.26 million in debt into shares of common stock at a price equal to the lowest trading price during the thirty (30) trading day period prior to any conversion, subject to a 9.99% limitation on beneficial ownership at the time such conversion. A Remittance Amount of 66.67% of the Net Proceeds from the sale of the Settlement Shares shall reduce the balance of the Notes outstanding. The conversion shares issued by the Company will be unrestricted in reliance on Section 3(a)(10) of the Securities Act of 1933.

Further, after engaging an SEC financial consultant, we are updating the Company’s valuation of Derivative Liabilities related to the Series A and B Preferred Stock, and the convertible notes.

As of September 30, 2023, this resulted in a reduction of our total derivative liability from a previously reported $9.43 million to $4.92 million, representing an increase in net other income of $4.51 million since our merger in June of 2022.

This will result in a restatement of the previously submitted financial statements for the periods ended June 30, 2022, September 30, 2022, December 31, 2022, March 31, 2023 and June 30, 2023 as soon as the reports are compiled. Such changes will be reflected in net additions to Other Income and will be marked-to-market each quarter.

As you review this MD&A, we encourage you to read our interim financial statements and notes for the quarter ended September 30, 2023, filed November 17 with OTC Markets.

CORPORATE OVERVIEW

The Company offers a service delivery platform that solves the "last-mile" of installing, monitoring, and maintaining technology systems and smart connected devices.