22:05:56 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



AlarmForce Industries Inc
Symbol AF
Shares Issued 11,570,258
Close 2016-10-25 C$ 10.20
Market Cap C$ 118,016,632
Recent Sedar Documents

AlarmForce special committee to review internal control

2016-10-26 18:42 ET - News Release

Mr. Hugh Mansfield reports

ALARMFORCE PROVIDES UPDATE ON THE STATUS OF ONGOING REVIEW

AlarmForce Industries Inc. has provided an update on its review of its revenue-recognition practices for the periods starting fiscal fourth quarter 2013 for revenue generated from customer contracts after a customer had requested cancellation of services as described in the company's Aug. 24, 2016, news release.

The company reports that it has made significant progress in its extensive review of customer contracts and accounts, which continues. However, further work is still required before it can be determined whether any restatement of AlarmForce's historical financial statements will be required and when it will be in a position to file its financial statements for the third quarter of fiscal 2016.

The company continues to engage with the Ontario Ministry of Finance regarding the ministry's proposed employer health tax (EHT) assessment of incremental taxes and penalties driven by its conclusion that the company's independent contractors should be classified as employees for the purposes of the Employer Health Tax Act. AlarmForce is working with its legal and accounting advisers in evaluating its response to the proposed EHT assessment, and the continuing IRS and Florida payroll audits. As well, it is evaluating the impact of whether this assessment and the other possible employee tax liabilities in connection with the classification of its independent contractors affect third quarter 2016 and/or prior-period reported financial results, including the appropriate accounting treatment of any taxes and other amounts that may be found owing, which may require a restatement of the company's historical financial statements.

The company anticipates that a decision regarding whether a restatement will be required will be made by the end of the third week of November, 2016.

Additionally, the board of directors of AlarmForce has struck an independent special committee in order to assess the company's internal control environment. The committee has retained external counsel to assist in this review.

This status update is provided pursuant to the alternative information guidelines in National Policy 12-203 -- Management Cease Trade Orders (NP 12-203), which require the company to provide biweekly updates on its affairs until such time as the company is current with its filing obligations under Canadian securities laws. In accordance with those requirements, the company advises that: (i) there has not been any material changes to the information contained in its Aug. 24, 2016, Sept. 14, 2016, Sept. 28, 2016, and Oct. 12, 2016, news releases; (ii) there has not been any failure by the company to fulfill its publicly disclosed intentions with respect to satisfying the provisions of the alternative information guidelines of NP 12-203; (iii) there are no subsequent specified defaults (actual or anticipated) within the meaning of NP 12-203; and (iv) there is no other material information concerning the company and its affairs that has not been generally disclosed as of the date of this press release.

About AlarmForce

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States.

We seek Safe Harbor.

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