iFabric Corp.
TSX VENTURE : IFA

January 27, 2015 08:30 ET

iFabric Corp Issues Restated Financial Statements for Its Three Months Ended December 31, 2013

MARKHAM, ONTARIO--(Marketwired - Jan. 27, 2015) - iFabric Corp (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced that during the course of its September 30, 2014 year end audit, the Company revisited an issue with respect to its accounting treatment of the fair value of warrants issued pursuant a private placement of units, which closed on December 13, 2013.

The Company determined, after further review of the applicable accounting standards, namely IFRS 2, share-based payment, and IAS 39, financial instruments: recognition and measurement, that the fair value of shareholder and agent warrants amounting to $704,861 should have been reflected as a reduction in the amount of capital stock as opposed to being charged to earnings, as was originally reflected in the in the consolidated interim financial statements for the three month period ended December 31, 2013 and originally approved by the Company's Board of Directors and filed on SEDAR on February 27, 2014.

Accordingly, the Company has amended and restated its consolidated interim statement of financial position as at December 31, 2013 and its consolidated interim statement of earnings and comprehensive earnings, changes in shareholders' equity, and cash flows for the three month period ended December 31, 2013.

After making the adjustment, net earnings and total comprehensive earnings for the three month period ended December 31, 2013 have been restated to reflect an amount of $213,330 ($0.008 earnings per share, basic and diluted) as opposed to the previously reported net loss and total comprehensive loss of $491,531 ($0.019 loss per share, basic and diluted). In addition, capital stock has been reduced from $3,409,275 to $2,704,414 and retained earnings have been increased from $2,242,790 to $2,947,651. As the adjustment affects different components of shareholders' equity, the net amount of shareholders' equity as at December 31, 2013 is not affected by the adjustment and remains as previously reported. In addition, there is no effect on the reported cash flows for the three months ended December 31, 2013.

The Company has also restated the consolidated interim financial statements for the three and six months ended March 31, 2014, and three and nine months ended June 30, 2014, in order to reflect the year to date effect of the adjustment. The operating results and cash-flows for these respective three month periods are not affected by these restatements and remain as previously reported. The consolidated interim financial statements as at and for the three and six months ended March 31, 2014 were originally approved by the Board of Directors and filed on SEDAR on May 15, 2014, and the consolidated interim financial statements as at and for the three and nine months ended June 30, 2014 were originally approved by the Board of Directors and filed on SEDAR on August 20, 2014.

The amended and restated financial statements, management's discussion and analysis, and refiled certifications on the consolidated interim filings as at and for the three months ended December 31, 2013, as at and for the three and six months ended March 31, 2014 and, as at and for the three and nine months ended June 30, 2014 are available for review under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.ifabriccorp.com.

The Company will release its fiscal fourth quarter and year-ended September 30, 2014 financial results and related management discussion and analysis on January 28, 2015.

ABOUT iFABRIC CORP:

iFABRIC CORP www.ifabriccorp.com currently has 25.8 million shares issued and outstanding.

iFABRIC is a manufacturer, distributor, licensor and licensee of proprietary compounds that render soft and hard porous surfaces intelligent, thereby improving the safety, health and well-being of the public at large. iFABRIC is also a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories.

FORWARD LOOKING STATEMENTS

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company's products.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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