AlarmForce Re-Files Q3 2016 Interim and Fiscal Year 2016 Financial Results to Correct Clerical Errors; No Impact on Revenue, Earnings or Financial Position

TORONTO, ONTARIO--(Marketwired - Feb. 16, 2017) - AlarmForce Industries Inc. (TSX:AF) (AlarmForce or the Company) announced today that it has re-filed its unaudited interim financial statements and related management discussion and analysis (MD&A) for the period ended July 31, 2016 and its audited financial statements for the fiscal year ended October 31, 2016 and related MD&A in order to correct minor clerical, classification and conforming errors. These errors have no impact on revenue, earnings or the presentation of the operating performance or cash profile of AlarmForce. This filing is being made at the request of the Ontario Securities Commission pursuant to a review by OSC staff.

Details of certain of the amendments are set out below.

Q3 2016 Interim Financial Statements and MD&A:

Financial Statements

1. Condensed Interim Consolidated Statements of Financial Position
   • The November 1, 2014 presentation of Deferred costs - current portion and Deferred costs (within non-current assets) contained clerical errors in the breakdown between current and non-current assets.
   • The October 31, 2015 cash and cash equivalents of $8,225,521 included $2,092,479 of Short-term investments. The balance has been corrected to split out the Short-term investments balance and the corresponding adjustments have been made to the Condensed Interim Consolidated Statements of Cash Flows.
   • The July 31, 2016 balance for intangible assets of $834,816 was understated by $196,308 of website development costs.

2. Condensed Interim Consolidated Statements of Cash Flows
   • Cash flows from investing activities included $196,308 for web development costs within Purchase of property, plant and equipment for the three months ended July 31, 2016 which should have been captured as Additions to intangible assets.
   • Cash flows from investing activities has been adjusted for the nine months ended July 31, 2016 to reflect the maturation of short-term investments totalling $2,092,479, with the corresponding amount adjusted within the cash and cash equivalents, beginning of period.
   • Cash flows from operating activities have been amended for the three and nine months ended July 31, 2015 and the three months ended July 31, 2016 to reflect a number of reclassification and conforming changes.

3. Note 2: Restatement of Previously Issued Interim Consolidated Financial Statements
   • Summary table of balance sheet impacts as at October 31, 2015 (on page 6) included an "Adjustment" of $4,999,670 related to Provisions, which represented the July 31, 2016 Provision liability, whereas it should have been $1,940,253. The summary table has been corrected to reflect the appropriate balance at October 31, 2015.
   • Summary table at the top of page 7 outlining the "As reported November 1, 2014" included Total liabilities of $9,147,689. This balance represented the total current liabilities. The balance has been corrected to $10,476,892 to reflect the Total liabilities.

4. Note 8: Intangible Assets
   • Intangible Assets table has been corrected to include Web Development additions of $196,308 in the table presentation.

MD&A

1. The Summary of Quarterly Results table on page 17 has been amended to adjust a number of clerical errors within the Total revenue, Net income/(loss), Total assets and Shareholders equity quarterly figures.

Annual Audited Consolidated Financial Statements and MD&A:

Financial Statements

1. Note 2: Restatement of Previously Issued Consolidated Financial Statements
   • Summary table at the top of page 13 has been corrected for the following:
     • "As reported November 1, 2014" included Total liabilities of $9,147,689. This balance represented the total current liabilities. The balance has been updated to $10,476,892 to reflect the Total liabilities.

MD&A

• The Summary of Quarterly Results table on page 18 has been amended to correct a number of clerical errors within Total Assets quarterly figures.

The unaudited interim financial statements and related MD&A for the period ended July 31, 2016 and the audited financial statements for the fiscal year ended October 31, 2016 and related MD&A originally filed on January 30, 2017 should not be relied upon.

About AlarmForce

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States. More information about AlarmForce's products and services can be found at alarmforce.com.