Mr. Richard Patricio reports
MEGA URANIUM TO RESTATE FINANCIAL STATEMENTS
Mega Uranium Ltd. will be restating its audited annual financial statements for the year ended Sept. 30, 2017, and its interim financial statements for the first three quarters of the 2016, 2017 and 2018 financial years. The restatements are all due to deferred tax accounting errors that were identified during the preparation and audit of the company's annual financial statements for the 2018 financial year.
The incorrect tax rate was applied when calculating the unrealized gain on one of the company's investments, net of taxes, in the 2017 annual statements. Additionally, the company did not record deferred income tax recovery in respect of the investment on a quarterly basis in the interim statements. The adjustments to be made to all of the financial statements are quantitatively but not qualitatively material and impact non-cash items.
The 2017 annual statements will be restated in the company's audited annual consolidated financial statements for the year ended Sept. 30, 2018, which will be filed on SEDAR under Mega's issuer profile prior to the end of December. It is also anticipated that the restated interim statements (and related management's discussion and analysis) will be filed prior to the calendar year-end. The company will be undertaking a review of its processes and procedures relating to tax accounting in light of the restatements.
The adjustments to the financial statements are set out in the attached tables and are estimates. The final adjustments that are made as part of the restated financial statements may differ from the estimates. All financial information is reported in thousands of Canadian dollars, except for per-share amounts, which are in Canadian dollars.
Quarterly restatements
AS AT AND FOR THE THREE MONTHS ENDED DEC. 31, 2015
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- Dec. 31, 2015
Accumulated other comprehensive income 2,355 (306) 2,049
(Deficit) (323,024) 306 (322,718)
Statement of (loss) income and comprehensive
(loss) income -- three months ended Dec. 31, 2015
Deferred tax recovery nil 306 306
Net (loss) income for the period (1,468) 306 (1,162)
Change in fair value of long-term investment, net of tax 2,308 (306) 2,002
Total comprehensive income for the period 920 nil 920
Basic and diluted (loss) income per share (0.01) 0.00 (0.00)
Statement of cash flows -- three months
ended Dec. 31, 2015
Net income (loss) for the period (1,468) 306 (1,162)
Deferred income tax recovery nil (306) (306)
AS AT AND FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2016
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- March 31, 2016
Accumulated other comprehensive income 22,590 (3,002) 19,588
(Deficit) (323,178) 3,002 (320,176)
Statement of (loss) income and comprehensive
(loss) income -- three months ended March 31, 2016
Deferred tax recovery nil 2,696 2,696
Net income (loss) for the period (331) 2,696 2,365
Change in fair value of long-term investment, net of tax 20,345 (2,696) 17,649
Total comprehensive income for the period 20,004 nil 20,004
Basic and diluted income (loss) per share (0.00) 0.01 0.01
Statement of (loss) income and comprehensive
(loss) income -- six months ended March 31, 2016
Deferred tax recovery nil 3,002 3,002
Net income (loss) for the period (1,799) 3,002 1,203
Change in fair value of long-term investment, net of tax 22,653 (3,002) 19,651
Total comprehensive income for the period 20,924 nil 20,924
Basic and diluted income (loss) per share (0.01) 0.01 0.00
Statement of cash flows -- six months
ended March 31, 2016
Net income (loss) for the period (1,799) 3,002 1,203
Deferred income tax recovery nil (3,002) (3,002)
AS AT AND FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2016
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- June 30, 2016
Accumulated other comprehensive income 38,745 (5,184) 33,561
(Deficit) (325,229) 5,184 (320,045)
Statement of (loss) income and comprehensive
(loss) income -- three months ended June 30, 2016
Deferred tax recovery nil 2,182 2,182
Net income (loss) for the period (2,207) 2,182 (25)
Change in fair value of long-term investment, net of tax 16,469 (2,182) 14,287
Total comprehensive income for the period 14,183 nil 14,183
Basic and diluted income (loss) per share (0.01) 0.01 (0.00)
Statement of (loss) income and comprehensive
(loss) income -- nine months ended June 30, 2016
Deferred tax recovery nil 5,184 5,184
Net income (loss) for the period (4,006) 5,184 1,178
Change in fair value of long-term investment, net of tax 39,122 (5,184) 33,938
Total comprehensive income for the period 35,107 nil 35,107
Basic and diluted income (loss) per share (0.01) 0.02 0.00
Statement of cash flows -- six months
ended June 30, 2016
Net income (loss) for the period (4,006) 5,184 1,178
Deferred income tax recovery nil (5,184) (5,184)
AS AT AND FOR THE THREE MONTHS ENDED DEC. 31, 2016
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- Dec. 31, 2016
Accumulated other comprehensive income 31,392 (847) 30,545
(Deficit) (305,898) 847 (305,051)
Statement of (loss) income and comprehensive
(loss) income -- three months ended Dec. 31, 2016
Deferred tax recovery nil 847 847
Net income (loss) for the period (1,258) 847 (411)
Change in fair value of long-term investment, net of tax 6,394 (847) 5,547
Total comprehensive income for the period 5,112 nil 5,112
Basic and diluted income (loss) per share (0.00) 0.00 (0.00)
Statement of cash flows -- three months
ended Dec. 31, 2016
Net income (loss) for the period (1,258) 847 (411)
Deferred income tax recovery nil (847) (847)
AS AT AND FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2017
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- March 31, 2017
Accumulated other comprehensive income 46,929 (2,901) 44,028
(Deficit) (306,191) 2,901 (303,290)
Statement of (loss) income and comprehensive
(loss) income -- three months ended March 31, 2017
Deferred tax recovery nil 2,054 2,054
Net income (loss) for the period (293) 2,054 1,761
Change in fair value of long-term investment, net of tax 15,501 (2,054) 13,447
Total comprehensive income for the period 15,244 nil 15,244
Basic and diluted income (loss) per share (0.00) 0.01 0.01
Statement of (loss) income and comprehensive
(loss) income -- six months ended March 31, 2017
Deferred tax recovery nil 2,901 2,901
Net income (loss) for the period (1,551) 2,901 1,350
Change in fair value of long-term investment, net of tax 21,895 (2,901) 18,994
Total comprehensive income for the period 20,356 nil 20,356
Basic and diluted income (loss) per share (0.01) 0.01 0.00
Statement of cash flows -- six months
ended March 31, 2017
Net income (loss) for the period (1,551) 2,901 1,350
Deferred income tax recovery nil (2,901) (2,901)
AS AT AND FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2017
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- June 30, 2017
Accumulated other comprehensive income 41,097 (2,131) 38,966
(Deficit) (308,194) 2,131 (306,063)
Statement of (loss) income and comprehensive
(loss) income -- three months ended June 30, 2017
Deferred tax recovery nil (770) (770)
Net income (loss) for the period (2,003) (770) (2,773)
Change in fair value of long-term investment, net of tax (5,812) 770 (5,042)
Total comprehensive income for the period (7,835) nil (7,835)
Basic and diluted income (loss) per share (0.01) (0.00) (0.01)
Statement of (loss) income and comprehensive
(loss) income -- nine months ended June 30, 2017
Deferred tax recovery nil 2,131 2,131
Net income (loss) for the period (3,554) 2,131 (1,423)
Change in fair value of long-term investment, net of tax 16,083 (2,131) 13,952
Total comprehensive income for the period 12,521 nil 12,521
Basic and diluted income (loss) per share (0.01) 0.01 (0.00)
Statement of cash flows -- nine months
ended June 30, 2017
Net income (loss) for the period (3,554) 2,131 (1,423)
Deferred income tax recovery nil (2,131) (2,131)
AS AT AND FOR THE THREE MONTHS ENDED DEC. 31, 2017
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- Dec. 31, 2017
Accumulated other comprehensive income 44,633 (1,130) 43,503
(Deficit) (305,346) 1,130 (304,216)
Statement of (loss) income and comprehensive
(loss) income -- three months ended Dec. 31, 2017
Deferred tax recovery nil 1,130 1,130
Net income (loss) for the period (828) 1,130 302
Change in fair value of long-term investment, net of tax 8,525 (1,130) 7,395
Total comprehensive income for the period 7,697 nil 7,697
Basic and diluted income (loss) per share (0.00) 0.00 0.00
Statement of cash flows -- three months
ended Dec. 31, 2017
Net income (loss) for the period (828) 1,130 302
Deferred income tax recovery nil (1,130) (1,130)
AS AT AND FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2018
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- March 31, 2018
Accumulated other comprehensive income 25,458 1,412 26,870
(Deficit) (306,712) (1,412) (308,124)
Statement of (loss) income and comprehensive
(loss) income -- three months ended March 31, 2018
Deferred tax recovery nil (2,542) (2,542)
Net income (loss) for the period (1,366) (2,542) (3,908)
Change in fair value of long-term investment, net of tax (19,182) 2,542 (16,640)
Total comprehensive income for the period (20,541) nil (20,541)
Basic and diluted income (loss) per share (0.00) (0.01) (0.01)
Statement of (loss) income and comprehensive
(loss) income -- six months ended March 31, 2018
Deferred tax recovery nil (1,412) (1,412)
Net income (loss) for the period (2,194) (1,412) (3,606)
Change in fair value of long-term investment, net of tax (10,657) 1,412 (9,245)
Total comprehensive income for the period (12,844) nil (12,844)
Basic and diluted income (loss) per share (0.01) (0.00) (0.01)
Statement of cash flows -- six months
ended March 31, 2018
Net income (loss) for the period (2,194) (1,412) (3,606)
Deferred income tax recovery nil 1,412 1,412
AS AT AND FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2018
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- June 30, 2018
Accumulated other comprehensive income 29,331 899 30,230
(Deficit) (312,011) (899) (312,910)
Statement of (loss) income and comprehensive
(loss) income -- three months ended June 30, 2018
Deferred tax recovery nil 513 513
Net income (loss) for the period (5,299) 513 (4,786)
Change in fair value of long-term investment, net of tax 3,875 (513) 3,362
Total comprehensive income for the period (1,426) nil (1,426)
Basic and diluted income (loss) per share (0.02) 0.00 (0.02)
Statement of (loss) income and comprehensive
(loss) income -- nine months ended June 30, 2018
Deferred tax recovery nil (899) (899)
Net income (loss) for the period (7,493) (899) (8,392)
Change in fair value of long-term investment, net of tax (6,782) 899 (5,883)
Total comprehensive income for the period (14,270) nil (14,270)
Basic and diluted income (loss) per share (0.03) (0.00) (0.03)
Statement of cash flows -- nine months
ended June 30, 2018
Net income (loss) for the period (7,493) (899) (8,392)
Deferred income tax recovery nil 899 899
Sept. 30, 2017, year-end restatement
AS AT AND FOR THE YEAR ENDED SEPT. 30, 2017
As previously reported ($) Adjustment ($) As restated ($)
Statement of financial position -- Sept. 30, 2017
Accumulated other comprehensive income 36,108 2,002 38,110
(Deficit) (304,518) (2,002) (306,520)
Statement of (loss) income and comprehensive
(loss) income -- year ended Sept. 30, 2017
Deferred tax recovery 4,005 (2,002) 2,003
Net income (loss) for the year 386 (2,002) (1,616)
Change in fair value of long-term investment, net of tax 11,109 2,002 13,111
Total comprehensive income for the year 11,472 nil 11,472
Basic and diluted income (loss) per share 0.00 (0.01) (0.01)
Statement of cash flows -- year
ended Sept. 30, 2017
Net income (loss) for the year 386 (2,002) (1,616)
Deferred income tax recovery (4,005) 2,002 (2,003)
About Mega Uranium Ltd.
Mega Uranium is a Toronto-based mineral resources company with a focus on uranium properties in Australia and Canada, and a portfolio of equity investments in uranium-focused public and private companies.
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