RE:RE:Timely update?So I decided to check their website and there have been a number of press releases over the past 2 months. Dec 7th they mention:
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 advisors in evaluating its response to the ongoing IRS and Florida payroll audits. As well, it is evaluating the impact, if any, of the EHT assessment and the other possible employee tax liabilities in connection with the classification of its independent contractors (including the significance of certain information that the Company received recently relating to such classification) upon Q3 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.
This could also be expensive depending on the outcome. Not just for the EHT but the company could then also be responsible for CPP and EI for the contractors/employees.
They had a couple more releases after that and then on Jan 13th they say:
Toronto, Ontario – January 13, 2017 — AlarmForce Industries Inc. (TSX:AF) (AlarmForce or the
Company) today provides an update on its review of its revenue recognition practices for the
periods starting fiscal Q4 2013 for revenue generated from customer contracts after a customer
had requested cancellation of services as described in the Company's August 24, 2016 news
release.
As previously announced, the Company has substantially completed its review of customer
contracts and accounts and as a result, the Company intends to restate its financial statements
for the year ended October 31, 2015 and the first and second quarters of 2016. In order for the
Company to become current with its filing obligations for its financial statements under
applicable Canadian securities laws, the Company intends to file by January 30, 2017:
Audited Annual Consolidated Financial Statements for fiscal 2016, which includes
restated financial information for fiscal 2015, and related MD&A; and
Unaudited Interim Consolidated Financial Statements for the third quarter of fiscal
2016, which includes restated financial information for the third quarter of 2015, and
related MD&A.
This status update is provided pursuant to the alternative information guidelines in National
Policy 12203 – Management Cease Trade Orders (NP 12203), 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 our August 24, September 14, September 28, October 12, October 26, November
9, November 23, 2016, December 7, 2016, December 16, 2016 and December 30, 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 12203; (iii) there are no subsequent specified defaults (actual or anticipated) within the
meaning of NP 12203; 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.
There may not be any material change to their previous press releases but they still have not given any indication as to the potential impact of these adjustments. The good news is that they intend to file by the end of Jan. My question still stands. How is the share price holding up so well with such an unknown hanging over their heads? Is there a buying opportunity looming on the horizon?
Cheers.