SOURCE: Axios Mobile Assets Corp.

Axios Mobile Assets Corp.

April 05, 2016 16:24 ET

Axios Provides Update on Review of Accounting Policies and Financial Disclosure

MISSISSAUGA, ON--(Marketwired - Apr 5, 2016) - Axios Mobile Assets Corp. (TSX VENTURE: AXA) (OTCQB: AXBSF) ("Axios" or the "Company") announced today that further to its press release of March 4, 2016 it has identified certain errors in the financial statements previously filed for the periods ended March 31, 2015, June 30, 2015 and September 30, 2015 as well as the disclosure contained in its associated management's discussion and analysis for such periods.

The following is a summary of the material revisions to the Company's amended and restated financial statements and MD&A that have been identified to this point:

  • Consolidation entries were recorded, which primarily reduced revenue and operating expenses in Q2 and Q3 of 2015, and reduced accounts receivable and accounts payable at June 30, 2015 and September 30, 2015. These entries had no impact on net loss in any period.

  • Timing errors between fiscal quarters within 2015 were corrected. The corrections primarily impacted the timing of cost of goods sold, stock based compensation expense, and debt settlement expense. The entries had no impact on year-to-date net loss for the nine months ended September 30, 2015.

  • 2014 comparative figures were adjusted to correct timings errors between fiscal quarters within 2014. These corrections impacted the timing of depreciation and amortization expense, interest expense, accretion expense, and other operating expenses. The entries had no impact on 2014 full year revenue or net loss.

  • Reallocations were made between line items within the statements of cash flows for Q1 and Q2 of 2015. These changes had no impact on the ending cash balance in any period.

  • Changes were made to account groupings and presentation of the statements of loss and comprehensive loss. Revenue previously shown in a single category has been separated into two categories, categories of operating expenses have been updated and expense previously reported as cost of goods sold are now presented within operating expenses. These changes, along with updates to the discussion in the MD&A, were made in order to more clearly reflect the results of the business in light of a shift in the Company's business model from a pallet manufacturer to a pallet pooling service provider in late 2014 to early 2015.

The revisions outlined above have no impact on the previously reported net loss for the year ended December 31, 2014, or for the nine months ended September 30, 2015. Total equity on the Company's statement of financial position at December 31, 2014 and September 30, 2015 also remained unchanged.

In addition to the items noted above, management is reviewing equity transactions that occurred throughout 2015 to assess the valuation and accounting treatment of equity instruments included in those transactions. Any errors that may be identified during that review, and any others errors that may identified during the Company's concurrent work to finalize its year-end financial statements, will be incorporated in revised interim financial statements.

The Company is proceeding to revise such financial statements and associated management's discussion and analysis with a view to filing them on or before April 30, 2016.

The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found in sections 4.3 and 4.4 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults until the financial statements and related MD&A and CEO and CFO certificates are filed. The Company is not aware of any other material information concerning its affairs which has not been generally disclosed.

In view of this restatement, the Company has applied to the applicable Canadian securities regulatory authorities for a management cease trade order. There can be no certainty that such an order will be granted. The applicable regulatory authorities may instead issue cease trade orders against the Company for failure to file its annual financial statements and related MD&A and CEO and CFO certificates within the prescribed time period. If a management cease trade order is granted it would generally not affect the ability of persons who are not, or who have not been, directors, officers or other insiders of the Company to trade in the Company's securities.

About Axios Mobile Assets

Axios Mobile Assets Corp. is a supply chain logistics company. Axios is becoming a key supplier of pooled pallets primarily in the perishable food category. The Axios Solution includes proprietary tracking and information systems that deliver actionable data that helps improve supply chain visibility and food safety. The Axios Solution is gaining market acceptance based on its unique attributes: lower total cost, lighter weight, sanitary pallets, and real time data.

Further information concerning the Company can be found at www.axiosma.com and www.sedar.com.

Forward-Looking Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the timing of the filing of any updated disclosure documents and the granting of a management cease trade order. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the period ended September 30, 2015 under the heading "Risk Factors", a copy of which is filed on SEDAR at www.SEDAR.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

Contact Information

  • CONTACT:
    Richard MacDonald
    President & CEO
    Email Contact
    877-762-9467 x601

    Peter Murray
    Shareholder Contact
    Email Contact
    778-839-8382