Mr. Jonathan Pasternak reports

EFT CANADA REPORTS ANNUAL FINANCIAL RESULTS

EFT Canada Inc. has recognized an impairment charge in respect of its card gateway technology, which is reflected in its audited financial results for the year ended June 30, 2014.

For the year ended June 30, 2014, the company reported a net loss of $2,081,766 or 15.2 cents on revenues of $2,279,088 (2013 revenue: $2,417,487), compared with net income of $239,457 or 1.8 cents per share for the period ending June 30, 2013.

The loss includes fourth-quarter impairment charges of $1,054,742 for software and $174,514 for hardware, both related to the card gateway. The carrying value of the software has been written down to nil and $40,000 of remaining hardware.

The impairment charge, which is a non-cash using adjustment, resulted from of a review of the carrying value of technology related to the card processing gateway. The charge was taken because the financial benefit associated with the software had come to be substantially less than what had originally been anticipated and the service did not warrant projected expenditures. The company has therefore ceased gateway operations and many of its expenditures, which averaged $30,000 per month.

The gateway closure has not affected operations, and EFT Canada has successfully transferred all existing gateway clients to its partner's software (gateway) without loss of revenue. Moving forward, the company will continue to market card processing services while earning the same share of processing revenue.

Discontinuing the card gateway will result in a significant reduction of the company's cash requirements and improvement in its operating cost structure.

The reported loss includes a bad debt expense of $591,459, of which $540,000 is related to a previously reported client receivable as to which collectability is in doubt. The company is dependent upon the collection of this receivable or raising additional funds in order to maintain sufficient working capital.

EFT Canada had a gross profit margin of $1,561,577 for the year ending June 30, 2014, or 68.5 per cent, compared with $1,601,732 or 66 per cent for the year ending June 30, 2013.

The audited financial statements have been filed on SEDAR.

We seek Safe Harbor.