Jetcom Inc.
TSX VENTURE : JTM

Jetcom Inc.

August 03, 2005 15:11 ET

Jetcom Inc. 'TSXV:JTM' Announces Re-filing of its Consolidated Annual and Interim Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2005) - Jetcom Inc.(TSX VENTURE:JTM) announces it has re-filed its interim consolidated financial statements for the periods ending March 31, 2004, June 30, 2004, September 30, 2004 and its audited annual statements for the period ending December 31, 2004. The financial statements have been revised in accordance with Canadian Generally Accepted Accounting Principles. Revenue recognition has been expanded to more adequately describe the company's revenue recognition policy and in accordance with CICA 1701.10, revenue is segregated between Canada and the U.S.

Star Programming - The customer base, formerly classified as goodwill is now classified as an intangible assets. After careful analysis, management determined that the declining sales in Star Programming Center Inc. devalued the intangible asset and wrote it down to $100,000 and accelerated the amortization over 5 years. As a result $236,200 was written off in the current year.

The revised quarterly and annual financial statements in accordance with CICA 1540.22 reflect the following revisions:

1st Qtr - Mar. 31/04 - Minority interest and minority shareholders share of loss on balance sheet was originally stated as $590,000 and nil is revised to $484,323 and $ 105,677. Net loss and loss/share was originally stated $510,214 and .017/share is revised to $395,170 and .012/share. Cash Flow Statement - original filing - minority interest in subsidiary was not reflected is revised to $105,677.

6 month - June 30/04 - Minority interest and minority shareholders share of loss on balance sheet was originally stated as $921,650 and nil is revised to $685,807 and $ 235,843. Net loss and loss/share was originally stated $1,075,848 and .035/share is revised to $827,505 and .027/share Cash Flow Statement - original filing - minority interest in subsidiary was not reflected is revised to $253,843.

9 Month Sept.30/04- Minority interest and minority shareholders share of loss on balance sheet was originally stated as $1,825,150 and nil is revised to $1,367,400 and $475,750. Net loss and loss/share was originally stated $1,887,613 and .063/share is revised to $1,316,113 and .043/share. Cash Flow Statement - original filing - minority interest in subsidiary was not reflected is revised to $457,750.

Year End Financial Statement - Cash flow statement - cash expended in operating activities was originally stated as $1,534,264 is revised to $2,289,210 and minority interest in subsidiary was not reflected in original filing, the revised filing reflects minority interest of $754,946.

The 2004 quarterly financial statements, as originally filed did not reflect the write -off re the Online Hearing License. The Dec./03 annual statement as originally filed on May 18/04 carried the license at $206,250 and the revised Dec./03 annual statement filed on March 9/05 - reflected the total write-off of the license - note 4 of the revised Dec./03 statement. The revised quarterly statements have been adjusted to reflect this revision.

Shares Outstanding: 36,525,971

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Jetcom Inc.
    A. G. Dragone
    President
    (416) 447-4884
    (416) 447-8868 (FAX)