StartMonday blasts "misleading" report on financials.. StartMonday blasts "misleading" report on financials
StartMonday Technology Corp (C:JOB)
Shares Issued 53,332,608
Last Close 2/14/2017 $0.47
Wednesday February 15 2017 - News Release
Mr. Ray Gibson reports
STARTMONDAY PROVIDES CLARITY IN RESPONSE TO RECENT BLOG REPORT -- COMPANY PROVIDES RESPONSE TO MISLEADING ARTICLE
StartMonday Technology Corp. has provided the following response to a German-based blog article has artificially created concerns regarding the financial performance of the company. As a continuously reporting public entity, StartMonday has, and always will, remain transparent in its dealings through its continuing public reporting. To further clarify matters, the company wishes to remind the investment community to review public filings for the facts and not rely on blog posts that may offer misleading conclusions based on unknown agendas.
For the record, StartMonday's management team, includes the dedicated guidance of CEO and co-founder Ray Gibson (41), who brings over 15 years in the HR and Recruitment industry throughout Europe, Chief Product Officer and co-founder Andrew Evans (52), who built the first job-board on the web at Careerbuilder.com, CSO Bryan Miller with over 20 years sales and leadership experience at some of the most prestigious talent acquisition and talent advisory service firms in the world, and CFO Michael Thome (62) who has overseen financial matters at numerous start-ups and public companies. The co-founders' extensive Human Resource sector experience directly led to the development of the StartMonday technology platform, an innovative, proven, award-winning and increasingly adopted tool by HR industry-leading partners. While the Company has rapidly progressed to an advanced phase as a start-up, it has proven its leadership in the field through repeated industry speaking engagements, and through the ongoing efforts of its growing sales team. Today StartMonday offers a truly unique value proposition to an expanding number of industry leading customers and prospects.
Comments in the blog article regarding a 2016 financial loss have been taken out of context, and are a key aspect of the misleading information. To clarify, StartMonday's Q3 financial statements show a fully anticipated operating loss of $CDN 474 thousand for the 9 months ended September 30, 2016. Also shown are planned listing expenses of $CDN 3.7 million which are separate from the operating loss. This is strictly an accounting entry and does not reflect cash or operating results. Under IFRS accounting rules, the transaction and the resulting shares of the Company that were issued on the transaction are recorded at their fair value, which were determined to be $.25 cents per share. This results in a valuation for the shares issued of $5.2 million. However, the historical carrying value of the underlying net assets acquired in the transaction is only $1.5 million. Under accounting rules, the net assets acquired continue to be recorded at their historical carrying value, and the difference of $3.7 million is not recorded on the balance sheet as goodwill or as an intangible asset, but is shown on the income statement. It is strictly an accounting item and is not an outlay that will be incurred by the Company. This accounting treatment was explained in note 5 in the September 30, 2016 financial statements. Additional financial information is readily available by reviewing the Company's full disclosure filings at: https://startmonday.com/investors.
StartMonday co-founder and CEO, Ray Gibson notes, "I am disappointed to learn of a review of our company that shows either an extraordinarily poor grasp of basic business and accounting practices or a blatant attempt to mislead the public. The blog article suggests we have nothing unique to offer customers, yet a review of our recent press releases readily shows that major organizations have opted to sign Europe-wide deals to secure our solutions and are pleased to announce they are innovating by partnering with us. Bringing 15-second videos to the start of the hiring process, backed up by careers pages, mobile apps and a full applicant tracking system creates a candidate journey for employers that is tough to match and helps their employer-brand stand out from the crowd. IBM Watson also selected StartMonday as their Ecosystem Partner as an innovative company bringing a fresh approach to the jobs market, and Computable Magazine awarded us a "Startup of the Year" prize in November 2016. We are further perplexed at how (and why) the blog author can infer that StartMonday is the subject of regulatory concern when in fact the Company has not had inquiries from any regulatory body either domestic or foreign.
We take our reputation seriously and aim to continue to work with our growing list of prospects to build on our successes to-date, and truly appreciate the interest and continued support of all those who understand the value of our business."
We seek Safe Harbor.
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