Findev Inc. Issues Corrective Disclosure

Findev Inc. issued a corrective disclosure after an Ontario Securities Commission review of its fiscal 2025 interim financial statements. The company failed to record a $1,594,190 non‑cash loan modification loss on its Victoria project mortgage and omitted disclosure of increased credit risk stemming from additional senior‑ranking debt approved for the project’s developer. The correction turned Q1 FY2025 reported net income from a $146,295 profit to a $1,447,895 loss. The Victoria loan (now $16.8 million, extended to December 31, 2025 at prime + 1.75 %) carries an Expected Credit Loss of $8,254,000. An additional $15.8 million of senior debt has been authorized, pushing total debt ranking ahead of Findev to $45.2 million. As of December 31, 2025, the Victoria project had 82 units closed but 65 units remained unsold, valued at $65.3 million. The company’s other large asset is a $10.64 million loan to Plazacorp at 10 % interest secured by a Toronto construction project.

The disclosure is unequivocally material and negative. It reveals that financial statements were misstated for at least three quarters, that the company’s single largest asset is heavily impaired, and that the borrower has been authorized to layer on debt that further subordinates Findev’s position. The swing from a small profit to a significant loss for Q1 FY2025 alone demonstrates how quickly credit deterioration can overwhelm earnings. An $8.25 million ECL against a $16.8 million loan signals that the company itself views full recovery as highly uncertain. The existence of $45.2 million in senior obligations ahead of Findev on a project with 65 unsold units (estimated value $65.3 million) raises legitimate concern about whether Findev will recover anything beyond the $45.2 million priority debt. With a share price already near multi‑year lows, this corrective filing confirms that the balance‑sheet troubles are deeper than previously reported and erodes whatever trust remained in management’s earlier disclosures. Investors can no longer rely on past financials, and the