Mr. John Bonner reports
AXION VENTURES RE-FILES ITS 2017 INTERIM FINANCIAL STATEMENTS
Further to the press release dated May 31, 2018, Axion Ventures Inc. has filed its amended and restated unaudited condensed consolidated financial statements for the: three months ended March 31, 2017; three and six months ended June 30, 2017; and three and nine months ended Sept. 30, 2017. The quarterly refilings are available on the company's SEDAR profile.
As disclosed in its press release dated May 31, 2018, the quarterly refilings were a result of reassessed accounting standard treatment (with respect to the third quarter of 2017) and adjustments made in connection with the reaudit of the company's financial statements.
"We are very pleased with our team's effort in providing orderly and timely refilings of our annual financial statements and prior quarterly refilings," said John Todd Bonner, chairman and chief executive officer of Axion. "Upon receiving knowledge of deficiencies in our financial statement filings, we took immediate measures to ensure strict compliance, which included engaging a large international auditor, BDO Ltd., hiring additional accounting staff, and appointing an experienced partner from Grant Thornton as our chief financial officer. This is not a matter that we take lightly and shall continue allocating the appropriate resources to our continuous disclosure requirements. That said, we are excited about our recent launch of Rising Fire and shall continue to focus on maximizing game revenue."
Adjustments to amended and restated unaudited condensed consolidated financial statements for the three months ended March 31, 2017
A summary of the adjustments in the amended and restated unaudited condensed consolidated interim financial statements for period ended March 31, 2017, is detailed as shown in the associated table.
As previously reported Adjustments As restated
(thousands) (thousands of U.S. dollars) (thousands of U.S. dollars)
Non-current assets (loss) $10,764 ($3,078) $7,686
Total current assets (loss) 14,063 (2,934) 11,129
Total assets (loss) 24,827 (6,012) 18,815
Total current liabilities (loss) (8,976) 2,148 (6,828)
Net assets (loss) 15,851 (3,864) 11,987
Equity attributable
to owners of the company (loss) 17,007 (5,659) 11,348
Non-controlling interests (loss) (1,156) 1,795 639
Total equity (loss) 15,851 (3,864) 11,987
Revenue (loss) 1,877 (477) 1,400
Gross profit (loss) 830 (213) 617
(Loss) before taxation (1,743) (95) (1,838)
(Loss) for the period (1,744) (94) (1,838)
Adjustments to amended and restated unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017
A summary of the adjustments in the amended and restated unaudited condensed consolidated interim financial statements for the period ended June 30, 2018, is detailed as shown in the associated table.
As previously reported Adjustments As restated
(thousands) (thousands of U.S. dollars) (thousands of U.S. dollars)
Non-current assets (loss) $13,149 ($4,545) $8,604
Total current assets (loss) 9,764 (256) 9,508
Total assets (loss) 22,913 (4,801) 18,112
Total current liabilities (loss) (9,548) 2,406 (7,142)
Net assets (loss) 13,122 (2,152) 10,970
Equity attributable to
owners of the company (loss) 14,653 (4,258) 10,395
Non-controlling interests (loss) (1,531) 2,106 575
Total equity (loss) 13,122 (2,152) 10,970
Revenue (loss) 3,896 (984) 2,912
Gross profit (loss) 1,293 (52) 1,241
(Loss) before taxation (4,415) 1,010 (3,405)
(Loss) for the period (4,416) 1,010 (3,406)
The foregoing adjustments are consistent with those noted in the company's audited annual financial statements, as restated, and the related press release dated May 31, 2018.
Adjustments to amended and restated unaudited condensed consolidated financial statements for the three and nine months ended Sept. 30, 2017
In the company's quarterly filing of the unaudited consolidated condensed financial statements for the three and nine months ended Sept. 30, 2017, dated Nov. 29, 2017, the company considered itself an investment entity in accordance with the definition and characteristics of an investment entity set out in IFRS 10 (international financial reporting standards). As a result, the company ceased consolidation of its subsidiaries as at Sept. 30, 2017, and measured its subsidiaries and other investments at fair value through profit or loss in accordance with IFRS 9 Financial Instruments.
During the audit of the consolidated financial statements of the company as at and for the years ended Dec. 31, 2017, and 2016, the company reassessed its investment entity status with assistance from its professional advisers and determined that the company had not yet changed to investment entity status from the perspective of accounting standards. Therefore, no exception to consolidation should be adopted during the nine months ended Sept. 30, 2017, or the year ended Dec. 31, 2017.
As a result, the adjustments for the period ended Sept. 30, 2017, were more significant. A summary of the adjustments in these amended and restated unaudited condensed consolidated interim financial statements for the period ended Sept. 30, 2017, is detailed as shown in the associated table.
As previously reported Adjustments As restated
(thousands) (thousands of U.S. dollars) (thousands of U.S. dollars)
Non-current assets (loss) $176,338 ($166,608) $9,730
Total current assets 5,324 1,276 6,600
Total assets (loss) 181,662 (165,332) 16,330
Total current liabilities (loss) (69) (7,014) (7,083)
Net assets (loss) 181,593 (172,346) 9,247
Equity attributable to
owners of the company (loss) 181,605 (172,454) 9,151
Non-controlling interests (loss) (12) 108 96
Total equity (loss) 181,593 (172,346) 9,247
Revenue (loss) 125,356 (120,839) 4,517
Gross profit (loss) 121,267 (119,447) 1,820
Profit/(loss) before taxation 112,822 (118,311) (5,489)
Profit/(loss) for the period 112,821 (118,311) (5,490)
The foregoing adjustments were a result of the reversal of fair value gain recognized from the adoption of exception to consolidation from IFRS 10 that increased the company's total assets and profit for the period significantly in the previous third quarter 2017 filing. In addition, the adjustments are consistent with those noted in the company's audited annual financial statements, as restated, and the related press release dated May 31, 2018.
As a result of the quarterly refilings, the company anticipates that the applicable provincial securities commissions will remove the company on their respective defaulting reporting issuer lists.
About Axion Ventures Inc.
Axion Ventures is an investment issuer with majority ownership in Axion Games, an on-line video game development and publishing company headquartered in Shanghai, China, as well as in True Axion Interactive Ltd., a video game development company headquartered in Bangkok, Thailand, and co-founded with True Corp. Axion Ventures also maintains holdings in other innovative technology companies.
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