Snakes & Lattes Inc. (OTC: FUNN) is pleased to update shareholders that the Company expects to receive close to $500,000 USD in credits from the ERC (Employee Retention Tax Credit) program shortly as a result of an ERC review and categorical Company changes that occurred throughout the process.
As with most large government programs, sometimes and unintentionally, when first setup it can be a bit of a complicated hurdle for Companies to work their way through. However, through significant process reviews, the Company discovered that it qualified for large tax credits due to the aggregate status of the Company as a whole vs all the individual Snakes & Lattes locations individually.
The program contained a number of challenges for Companies even if they would qualify, with an additional problem being that the government was receiving a number of unscrupulous applications on behalf of certain Companies due to the nature of the program’s incentives. This led to the approval times being dramatically slowed down across the board. In a large part, this was due to the fact that there were many individuals posing as ‘consultants’ asking for fees up front to ‘help’ facilitate small businesses through the process. Some of these so-called overnight ‘consultants’ would have their fees based on a percentage of the refund amount and were therefore pressuring Companies to get started quickly due to application deadlines without even fully understanding the Companies tax situation first or without care to what repercussions could arise from improper applications.
Restaurants in particular had some of the most complexities involved in their applications since many had received PPP loans where calculations were based on employee per pay period and were messy due to the 2020-2021 pandemic era. Depending on area, not all locations were mandated government closed equally, furthering complicating the application process for Companies.
The ERC was enacted for small businesses (less than 100 employees) which had different regulations for each year 2020 and 2021. In fact, Companies were considered one at the time thereby leaving many not to be eligible in 2021.
When we initially reviewed, we found individual locations were not eligible by themselves, e.g.:
- Our Snakes & Lattes ‘Tempe’ location couldn't show a 20% decrease in revenue for 2021 and was not under any mandate.
- Our Snakes & Lattes ‘Chicago’ location had mandates that were a bit more stringent, but PPP loans covered payroll and the number of employees didn’t allow for qualification.
- Our Snakes & Lattes ‘Tucson’ opened in Q2 2021, and had no mandate.
We initially were uncertain that we could even qualify to receive the extra tax credits. We became concerned that we could actually even end up getting penalized by the IRS should we over claim by mistake, and it seemed every consultant had drastically differing opinions and answers on how to proceed. However, we persevered and spent the time thoroughly reviewing the ERC in the US to understand the claims process. Obviously keeping precise control of our records and calculations was a must, with the understanding that audits, fines and penalties would occur if not. The review was a lengthy and time consuming process, but after all was said and done, in the end, it paid off very well for the Company.
Fortunately, what was uncovered were the rules regarding aggregation:
https://askfrost.com/news/erc-aggregation-rules-good-news-for-owners-of-multiple-businesses
The end result being that, while individual locations do not qualify for any tax credits for 2021, together, as an aggregate, they do. This is resulting in an estimated close to $500,000 USD in tax credits, and this is great news for the Company as those savings will not only preserve working capital but should help potentially speed up some of the on-going expansion plans that are currently in the works.
This very positive development ultimately should help pave the way for the future with the hope of even faster expansion due to the preservation of our capital reserves. We expect to have a number of exciting initiatives come to fruition over the next few months on varying topics and impact.
Additional updates to follow next week and will also be addressing questions posed and providing additional communication and news on the Snakes & Lattes COMMUNITY forum.
The Company COMMUNITY forum is a tool to facilitate communication between shareholders and management. This is meant to encourage meaningful exchanges, 2-way conversations, interaction with management through Q&A to the extent REG-FD and other regulatory restrictions allow, as well as exchanges between members / other shareholders regarding any and all on-going subjects Company related.
Feel free to join and be a part of the COMMUNITY at www.snakesandlattes.com/signup
As always, a big thanks to all our shareholders, supporters, loyal guests, and staff. Creating memorable, quality human interactive experiences is what keeps the company going, and at all times we keep the mission of Snakes & Lattes locations coast to coast at the forefront of our strategy.
See you at Snakes & Lattes!
About Snakes & Lattes:
Founded in Toronto, Canada, Snakes & Lattes is a pioneer in the tabletop gaming industry providing a unique social experience centered around board games, food, and drinks. The locations are dedicated to creating a fun and inclusive environment for gamers and non-gamers alike.
Snakes & Lattes opened the first and operates the largest board gaming entertainment venues in North America, with the highest volume and most diverse circulating public library of games in the world for players to choose from.
The Snakes & Lattes gaming locations also specialize in full-service bar & restaurant offerings and currently owns and operates 8 locations throughout the USA and Canada. Locations include Tempe and Tucson Arizona, Chicago Illinois, Virginia Beach Virginia, as well as 4 locations in Toronto, Ontario, Canada, known as Annex, College, Midtown and Wellington Market.
Snakes & Lattes is continuously in process of expanding throughout North America. For any and all inquiries regarding the company, expansions and partnerships, please email IR at investors@snakesandlattes.com and we will respond as soon as we can. Thank you kindly.
Forward Looking Statements (Safe Harbor):
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), as well as others, and it is intended that all forward-looking statements that are made will be subject to the safe harbor protections created thereby. Forward-looking statements can be identified by forward-looking terminology such as aim, anticipate, believe, continue, could, estimate, expect, confident, intend, may, might, plan, potential, predict, projection, seek, should, will or would, or the negative thereof or other variations thereon or comparable terminology. In particular, statements that address guidance, outlook, targets, market trends or projections about the future, and statements regarding the Company's expectations, beliefs, plans, strategies, objectives, prospects or assumptions, or future events or performance, contained in this release are forward-looking statements. The actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets, operating companies, etc. could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company has based these forward-looking statements on current expectations, assumptions, estimates and projections. Such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond FUNN’s control. These and other important factors, including those discussed more fully elsewhere in this release and in Company filings, may cause actual results, performance or achievements to differ materially from those expressed or implied in these forward-looking statements, and could ultimately affect FUNN’S share price as a result in the future. Any forward-looking statements contained in this release are not guarantees of future performance. Actual results of operations, financial condition, liquidity, and the development of the industry in which the Company operates, may differ materially from any forward-looking statements contained in this release, as well as any prior or future releases. Any forward-looking statement made in any release speaks only as of the date of such statement. Except as required by law, FUNN does not undertake any obligation to update, or revise, or to publicly announce any update or revision to any forward-looking statements made, whether due to a result of new information, future events, or otherwise after the date of any release made.
Contact:
Roger Mortimer
COB & Investor Relations Representative
Snakes & Lattes Inc.
Phone: (646) 992 3348
Phone: (647) 880 5887
Email: investors@snakesandlattes.com