Toronto, ON / ACCESSWIRE / April 14, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), announces that following a review by staff of the Ontario Securities Commission (the "OSC") in connection with the filing of the Company's annual consolidated financial statements, notes and related Management's Discussion and Analysis for the year ended December 31, 2012 (the "2012 Annual Filings") and the interim consolidated financial statements, notes and related Management's Discussion and Analysis (the "Q2 2013 Interim Filings"), the OSC has determined that Company is in default of its continuous disclosure requirements under the Securities Act (Ontario) (the "Default"). These filings amend those made on April 2, 2014.
1. For NTG's 2012 Annual Filings, the following have been corrected:
-Expand/enhance the Company's revenue recognition policy
-Correct the label in Trade and Other Receivables, Note 12, now on page 62 to read "Trade receivables after impairment" instead of Related Party.
-Update Financial Risk Management Objectives and Policies, Note 21, under Liquidity Risk, now on page 68 to remove reference to "operating losses in the current year" and "...to reach profitable levels of operation".
-Update the MD&A to enhance analysis and comparisons and other requirements of 51-102F1.
These changes have no effect on figures previously reported in the 2012 financial statements (the Audited Consolidated Statement of Financial Position, the Audited Consolidated Statements of Changes in Shareholders' Equity, the Audited Statement of Comprehensive Income, or the Audited Consolidated Statement of Cash Flows).
2. For NTG's Q2 2013 Interim Filings, the following have been corrected:
-revenue recognition policy found in Note 3 on page 31 should be consistent with that of the revised 2012 Annual Filings (above)
-Condensed Consolidated Interim Statement of Cash Flow on page 28, remove long term debt from Operation Activities and correct decrease in long term debt under Financing for three and six months. Correct the accounts payable and accrued liabilities number. Changes to MD&A section on Liquidity to reflect the adjusted numbers.
-Under Operating Segments, Note 6 on page 50, for the Six Months ended June 30, 2013, replaced the table with the correct 6 month figures. Three months was mistakenly duplicated.
-Under Related Party Disclosures, Note 19, Key Management Compensation, on page 66, corrected June 30, 2013 and June30, 2012 figures that were mistakenly reversed.
-Update the MD&A to enhance analysis and comparisons and other requirements of 51-102F1.
-On Statement of Financial Position on page 25, correct typo for June 30, 2013 Total non-current assets number to $3,081,461.
-On Statement of Comprehensive Income on page 26, Other Expenses, add Write Down of investment of $2,489 for Six Month 2012 comparative. This was mistakenly left out. Adding of section components remains the same.
These changes have no effect on figures previously reported in the Interim Q2 2013 (the Condensed Consolidated Interim Statement of Financial Position, the Condensed Consolidated Interim Statement of Comprehensive Income, or the Condensed Consolidated Interim Statement of Changes in Shareholders' Equity).
For Cash Flow:
-Increase in accounts payable and accrued liabilities changes to $878,544 from $635,715 (for 3 months) and $878,227 from $635,398 (for 6 months)
-Net Cash From Operations changes to $202,578 from $85,911 (for 3 months) and $615,558 from $474,892 (for 6 months)
-Increase (decrease) in long-term debt changes to $($20,747) from $95,920 (for 3 months) and ($65,491) from $75,174 (for 6 months)
-Cash From (Used For) Financing changes to $12,667 from $129,334 (3 months) and ($71,031) from ($69,634) (for 6 months)
-Cash From Investing changes to ($453,227) from ($69,634) (for 6 months).
The Company has made the necessary updates and the revised MD&A for the year ended December 31, 2012 and the Q2 2013 Interim Filings that were refiled on April 2, 2014 were amended and refiled on April 14, 2014 to remedy the Default.
ABOUT NTG CLARITY NETWORKS
NTG Clarity Networks' vision is to be a global leader in providing networking solutions. Established in 1992, NTG Clarity is a leader in Canada in delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 200 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.
This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future. These statements are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. There can be no assurance that forward looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and NTG Clarity disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future, except as required by applicable securities laws. Additional risks relating to NTG Clarity may be found in the current and periodic reports filed by NTG Clarity with Canadian securities regulatory authorities on www.sedar.com.
TSX does not accept responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION:
Doren Quinton, President QIS Capital
Ph: 250-377-1182
Fax: 250-377-1183
Email: [email protected]