Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Non-Controlling Interest in Versus LLC

v3.23.3
Non-Controlling Interest in Versus LLC
9 Months Ended
Sep. 30, 2023
Non-Controlling Interest in Versus LLC [Abstract]  
NON-CONTROLLING INTEREST IN VERSUS LLC
8. NON-CONTROLLING INTEREST IN VERSUS LLC

 

As of December 31, 2018, the Company held a 41.3% ownership interest in Versus LLC, a privately held limited liability company organized under the laws of the state of Nevada. The Company consolidates Versus LLC as a result of having full control over the voting shares. Versus LLC is a technology company that is developing a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players.

 

On May 21, 2019, the Company acquired an additional 25.2% interest in Versus LLC in exchange for 38,268 common shares of the Company and 19,134 share purchase warrants. The common shares and the share purchase warrants were determined to have a fair value of $1,403,675 and $116,595, respectively. As a result, the Company increased its ownership interest to 66.5% and recorded the excess purchase price over net identifiable liabilities of $3,575,884 against reserves. The effect on non-controlling interest was a reduction of $2,053,199.

 

On June 21, 2019, the Company acquired an additional 0.3% interest in Versus LLC in exchange for 189 common shares of the Company and 95 share purchase warrants. The common shares and the share purchase warrants were determined to have a fair value of $6,906 and $2,527, respectively. As a result, the Company increased its ownership interest to 66.8% and recorded the excess purchase price over net identifiable assets of $26,448 against reserves. The effect on non-controlling interest was a reduction of $19,433.

 

On March 1, 2022, the Company acquired an additional 15.1% interest in Versus LLC in exchange for 11,441 common shares of the Company. The common shares were determined to have a fair value of $186,294. As a result, the Company increased its ownership interest to 81.9% and recorded the excess purchase price over net identifiable assets of $4,562,631 against reserves. The effect on non-controlling interest was a reduction of $4,376,337.

 

The following table presents summarized financial information before intragroup eliminations for the non-wholly owned subsidiary as of September 30, 2023 and September 30, 2022 and the nine month periods then ended:

 

    2023     2022  
Non-controlling interest percentage   18.1%     18.1%  
    ($)     ($)  
Assets            
Current     947,592       863,885  
Non-current     1,646,934       3,083,039  
      2,594,226       3,946,924  
                 
Liabilities                
Current     170,543       752,003  
Non-current     43,183,941       37,355,830  
      43,354,484       38,107,833  
Net liabilities     (40,760,259 )     (34,160,909 )
Non-controlling interest     (7,000,675 )     (5,932,235 )
Net loss     (3,411,858 )     (7,621,560 )
Net loss attributed to non-controlling interest     (401,588 )     (1,686,991 )