Poynt Corporation

Poynt Corporation

September 09, 2011 18:31 ET

Poynt Corporation Completes Restatement of 2010 Financial Statements

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2011) - Poynt Corporation ("Poynt Corp." or the Company) (TSX VENTURE:PYN), a leading provider of mobile local search services, today announced as a result of the review and change over to IFRS (International Financial Reporting Standards), it was concluded that the accounting rules required the Company to restate its audited consolidated 2010 financial statements. The Company has now completed the restatement of its audited financial statements for the year ended December 31, 2010, the requirement for which was previously disclosed in prior earnings releases (2011 first and second quarter releases).

Accordingly, with the concurrence of the Company's Board of Directors, audit committee and external auditors, Poynt has restated its audited 2010 financial statements to reflect higher values assigned to two patents and one pending patent acquired in the Unomobi asset purchase ("the Transaction"). These patents have priority to 1999 and concern the pushing of commercial offers to users of GPS-equipped portable wireless devices who provide limited profile data. The adjustment was required due to accounting rules requiring the share price on the date of closing of the Transaction be used when determining the purchase price. This required the Company to adjust the share price on the date of closing of the Transaction (February 16, 2010) when determining the purchase price. Based on the closing price of the Company's common shares of $0.27 on February 16, 2010, the share-based consideration has been restated to a total of $25.6 million. Previously, the Company recorded the Transaction using $0.065 per share based on an average closing price over a reasonable period before and after the date on which the terms of purchase consideration was agreed to and announced with a total share based consideration of $6.2 million. The restatement has resulted in an increase to the purchase price allocation, net of future taxes, to the acquired patent portfolio of $19.5 million, from $7.9 million to $27.4 million. The restatement affects the value of the intangible assets, the amortization of the intangible assets and future income taxes related to the amortization.

As the result of this change, the Company is also currently in the process of restating its unaudited interim financial statements and management's discussion and analysis for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010 and intends to file such restated items shortly. For further information regarding the restatement, please refer to note 3 in the Company's restated audited December 31, 2010 consolidated financial statements and restated management's discussion and analysis that can be found on SEDAR at www.sedar.com.

About Poynt Corporation

Poynt Corp. (about.poynt.com) is a global leader in the mobile local advertising space. Their Location Based Search application, Poynt (www.poynt.com), enhances the consumers' ability to connect with the people, businesses and events most important to them. Poynt is available on iPhone and iPod Touch, Android, Nokia QT and Windows Phone 7 devices, BlackBerry® smartphones and BlackBerry PlayBook™ Tablets in Canada, the United States, Europe and Australia. Poynt Corp. entered the mobile publishing space with the recent acquisition of an advertising publishing platform. Key contracts on both the supply and demand sides of advertising are in place to provide inventory into the platform and publishers to display the inventory. Whether through the Poynt Local Search App or the Ad Publishing Platform, Poynt Corp. simplifies connecting consumers with businesses, retailers and events.

Headquartered in Calgary, AB, Canada, Poynt Corp. trades on the TSX Venture Exchange under the symbol PYN.

Forward Looking Statement

This news release contains forward-looking statements within the meaning of Canadian securities laws relating to current and future financial statements and the timing and intention to file updated and restated interim financial statements and related management discussion and analysis. The terms and phrases, "anticipate" and "intends" and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience, its current assessment of matters relating to its ongoing internal and external reviews as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, or future events to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: final determinations made by the Company's audit committee, board of directors, outside advisors, auditors and others; additional corrections that may be required based on factual findings and analysis in the ongoing review and legal and accounting developments and interpretations of such guidance. The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. Apple App Store and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Windows is a registered trademark of Microsoft Corporation in the United States and other countries. Android is a registered trademark of Google Inc.

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 release.

Contact Information