VSBLTY Groupe Technologies Corp. (CSE: VSBY) announced on September 29, 2026 that it has identified a classification error in comparative figures within its 2025 annual financial statements, affecting how research and development sub-expenses were categorised in Note 19. The company confirmed the error had no impact on total R&D expenses, net loss, loss per share, or overall financial position. The correction, made under IAS 8, was identified through the company's ongoing engagement with the British Columbia Securities Commission in connection with its application to revoke a cease trade order issued on May 5, 2026.

Key Points

  • VSBLTY Groupe Technologies Corp. (CSE: VSBY | OTCQB: VSGBF | FSE: 5VS)
  • A classification error in Note 19 — Expenses by Nature misallocated R&D sub-expense line items across salaries and wages, contract development expenses, and consulting fees for the year ended December 31, 2025
  • Total R&D expenses for 2025 were $1,442,346 and for 2024 were $1,203,563 — neither figure was affected by the error; the Audit Committee deemed the error immaterial to the financial statements as a whole
  • Investors may watch for the company's audited annual financial statements for the year ended December 31, 2026, which will include restated comparative figures, and for developments regarding the cease trade order revocation application

Nature of the R&D Sub-Classification Error in Note 19

The release states that during preparation of VSBLTY's 2025 annual financial statements, amounts within the research and development expense summary in Note 19 were placed on incorrect line items. Specifically, amounts intended as salaries and wages were reported as contract development expenses; amounts for contract development expenses were recorded as consulting fees; and amounts for consulting fees were reported as salaries and wages. The corrected figures show contract development and materials expense of $88,814, consulting fees of $783,532, and salaries and wages of $570,000 for the year ended December 31, 2025, totalling $1,442,346.

No Impact on VSBLTY's Reported Financial Results or Position

The company was explicit that the misclassification was confined solely to the allocation between individual sub-line items within Note 19. The error had no effect on the Statement of Comprehensive Loss, total operating expenses, net loss, loss per share, or the company's overall financial position. The Audit Committee reviewed the matter and concluded the error was immaterial to the financial statements taken as a whole. Notwithstanding that conclusion, VSBLTY stated it will restate the comparative figures in its 2026 audited annual financial statements in accordance with IAS 8 to preserve accuracy and comparability.

Connection to Cease Trade Order Revocation Application

The announcement discloses that the error was identified through the company's ongoing engagement with the British Columbia Securities Commission in connection with VSBLTY's application for full revocation of a cease trade order issued on May 5, 2026. The release does not provide further detail on the status or timeline of that application. Investors may be watching for updates regarding the revocation process, as the outcome could affect the company's ability to access capital markets. The immediate share price impact was not clear from available public information.