Mint Technology Corp.
TSX VENTURE : MIT

Mint Technology Corp.

June 18, 2013 16:52 ET

Mint Files Restated Financial Statements

TORONTO, ONTARIO--(Marketwired - June 18, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Mint Technology Corp. (TSX VENTURE:MIT) ("Mint" or the "Company") today announced that is has filed restated unaudited financial statements and MD&As for Q1, Q2, and Q3 2012. The reasons for and impacts of the restatements are as follows:

  1. During the audit of the 2012 annual financial statements, the Company determined that the acquisition of the remaining 40% of Mint Middle East LLC ("MME") on July 6, 2011, was incorrectly accounted for as an increase in goodwill as at August 31, 2011. In accordance with IAS 27, Consolidated and separate financial statements, changes in a parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

    As there was no change in the Company's control over MME on July 6, 2011, these interim condensed consolidated financial statements have been restated to retrospectively account for the acquisition of the remaining 40% of MME as an equity transaction by adjusting goodwill and the deficit for the year ended August 31, 2011, the period ended December 31, 2011 and nine months ended September 30, 2012 by $3,975,528. The opening deficit for the four month period ended December 31, 2011 has been increased by $3,975,528. There was no net impact as a result of this restatement on the consolidated statements of operations or cash flows for the three and nine months ended September 30, 2012.

  2. On January 20, 2012, the Company approved the restructuring of the private placement previously announced November 17, 2011. The restructuring resulted in a loss on extinguishment of debt in the amount of $615,649, representing the excess of the fair value of the common share purchase warrants and common shares over the carrying value of the outstanding payable. This loss was incorrectly omitted from the financial statements as originally prepared. There was no net impact as a result of this restatement on the consolidated statements of operations or cash flows for the three months ended September 30, 2012 but for the nine months ended September 30, 2012 interim condensed consolidated financial statements have been restated to retrospectively reflect the effect of the loss as follows:

    • the condensed consolidated statements of loss and comprehensive loss for the nine months ended September 30, 2012 have been restated to increase other expense and deficit by $615,649;

    • loss per share for the nine months ended September 30, 2012 has been increased by $0.003 from $0.026 to $0.029;

    • capital stock as at September 30, 2012 has been increased by $615,649; and

    • the condensed consolidated statements of cash flow for the nine months ended September 30, 2012 have been adjusted by $615,649, to give effect to the increased loss

  3. The Corporation's subsidiary in the United Arab Emirates, Mint Electronic Payment Services LLC (MEPS), commenced trading in July 2012. MEPS earns revenues from the sale of mobile air time top up minutes by the distribution of e-vouchers (point of sale activated PINs). The revenues are recognized at the time of sale to the customer, net of the amount the Corporation pays to Etisalat for the mobile airtime top up minutes and commission paid to its distributors. The Corporation has reassessed revenue recognition on a net basis as the Corporation is not considered to be the primary obligor to its customer and is deemed to incur minimal credit and inventory risk. There was no net impact as a result of this restatement on the consolidated statements of operations or cash flows for the three and nine months ended September 30, 2012.

ABOUT MINT TECHNOLOGY CORP

Established in 2004, Mint is the world's first vertically integrated prepaid card and payroll services provider with its own ATM network, payment processing platform and proprietary branded card product delivered to workers in the United Arab Emirates and expanding to other parts of the Middle East. Mint operates through 4 subsidiaries, Mint Middle East LLC, a payroll card services provider; Mint Capital LLC, a financial products distribution company; Mint Global Processing Inc., a fully integrated third party processing platform; and ePAY, a mobile airtime POS and Merchant network solutions business. Mint has 98 employees in 8 offices in UAE (3), Qatar, Jordan, Egypt, USA and Canada where Mint is listed on the TSX Venture Exchange: MIT.

NEITHER 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 RELEASE.

For additional information please visit www.mintinc.com.

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