An Update From the Team

An often overlooked fact is we are a publicly traded company while the vast majority of the other companies in our space are private and/or domiciled in a non-North American jurisdiction.  Being public comes with a much higher degree of scrutiny and reporting – something that is good for us, our shareholders, partners, merchants, and users. And while we welcome regulation, it’s often difficult to be a leader in the crypto space as rules for accounting and reporting are often being defined after the fact.

With that being said, let’s get to the meat of this blog.

Our audited financials for the year ending October 31, 2018, including the management discussing and analysis and CEO and CFO certifications were due to be filed on February 28, 2019. As you may be aware, we are delayed in filing our audited annual financial statements. We want to take this opportunity to give a bit more colour to the situation and provide you with an overall update.

First, we’re going to give you the background so that everyone is on the same page.

Our accounting and finance team along with our external accountants and auditors had been hard at work on everything that needs to be done to in order complete a public company’s audited financials. They had been working on this since November of last year in order to have it finished in time for our deadline.

On Friday, February 21, 2019, we were notified of recent changes to the audit requirements for companies in the crypto space. If you’re paying close attention to the dates, that is just a week prior to when our audited financials were due to be filed.

The additional work that was required was due to us being in the crypto and blockchain business. With just the one week notice, we rallied to engage the services of an independent third party. We engaged their services to validate our transactional data to determine if it could be relied upon for audit purposes.

Good news. They can.

All account balances tested were validated and successfully reconciled. The auditors are now able to rely upon transactional data as presented by us for audit purposes.

While this was happening, we were proactive in approaching both the BCSC and the CSE to apply for a voluntary management cease trade order to ensure that our shares would continue to trade and shareholder value would not be eroded.

With this third-party confirmation, DMCL, our auditors, are continuing to work hard around the clock to complete our audit. We are confident in DMCL’s ability to compete the audit for March 15, 2019.

More importantly, once again, with NetCents being at the forefront of the industry, we are able to pass a high-level of scrutiny and demonstrate a transparency that other privately held companies would either not subject themselves to or be able to pass.

While there may not have been guidelines in the beginning, our team knew that there would be increased regulation on our space and we anticipated and planned for what we thought that they may be. This has greatly contributed to the, although delayed, quick turnaround of our financials with the updated requirements.