CALGARY, Alberta, March 28, 2018 (GLOBE NEWSWIRE) --
GINSMS Inc. (TSXV:GOK) (the “Corporation” or “GINSMS”) is pleased to announce that its audited financial statements for the twelve-month period ended December 31, 2017 have been filed today on SEDAR and are available at www.sedar.com.
On February 13, 2018, GINSMS had disclosed through the issuance of a press release unaudited financial results for the three- and the twelve-month periods ended December 31, 2017 and provided financial forecasts for the 2018 financial year. This financial disclosure was done in advance of today’s filing of the audited financial statements of the Corporation to allow GINSMS’ ultimate holding company, Beat Holdings Limited (“BHL”), a public company in Japan, to use certain of GINSMS’ financial information in the preparation of BHL’s financial statements.
GINSMS’ financial information for the twelve-month period ended December 31, 2017 was prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
GINSMS is pleased to report that there is no significant change between the audited financial statements filed today and the unaudited financial information it disclosed earlier on February 13, 2018, except for the reclassification of an impairment loss on property, plant and equipment to loss on written-off of property, plant and equipment for the year ended December 31, 2017.
The auditors of the Corporation are of the opinion that the impairment loss on property, plant and equipment amounting to $52,444 should be reclassified as property, plant and equipment written off for the year ended December 31, 2017. This will reflect the nature of the expense more appropriately. Accordingly, the “Operating Expenses and Finance Costs” and “Selected Liquidity and Capital Resources Information” are amended.
Operating Expenses and Finance Costs
| Three-month period ended December 31, 2017 (Unaudited) | Three-month period ended December 31, 2016 (Unaudited) | Twelve-month period ended December 31, 2017 (Audited) | Twelve-month period ended December 31, 2016 (Audited) | |||||
| Salaries and wages | 180,886 | 189,229 | 715,827 | 923,961 | ||||
| Directors’ fees | 40,000 | 40,000 | 40,000 | 40,000 | ||||
| Professional fees | 75,323 | 66,573 | 339,362 | 329,742 | ||||
| Foreign exchange (gain)/loss | (39,450 | ) | 79,400 | (130,096 | ) | 95,904 | ||
| Other general & administrative expenses | 53,955 | 62,640 | 236,205 | 261,935 | ||||
| Allowance/(Reversal of allowance) for doubtful debts | - | (8,249 | ) | 7,489 | (8,249 | ) | ||
| Depreciation | ||||||||
| -Property, plant and equipment | 292 | 1,292 | 1,438 | 11,234 | ||||
| Interest expenses | 142,862 | 249,422 | 629,799 | 896,777 | ||||
| Loss on written-off of property, plant and equipment | 52,667 | - | 52,667 | - | ||||
| 506,535 | 680,307 | 1,892,691 | 2,551,304 | |||||
Selected Liquidity and Capital Resources Information
| Financial Highlights | Three-month period ended December 31, 2017 (Unaudited) ($) | Three-month period ended December 31, 2016 (Unaudited) ($) | Twelve-month period ended December 31 2017 (Audited) ($) | Twelve-month period ended December 31, 2016 (Audited) ($) | ||||
| Cash, beginning of period/year | 121,245 | 106,047 | 139,808 | 310,805 | ||||
| Operating activities | ||||||||
| Net loss for the period/year | (307,059 | ) | (429,983 | ) | (1,124,717 | ) | (1,507,635 | ) |
| Current tax expense | 9 | 845 | - | 2,317 | ||||
| Deferred tax (credit)/expense | (79 | ) | 35 | (79 | ) | (2,197 | ) | |
| Interest expenses | 142,862 | 249,422 | 629,799 | 896,777 | ||||
| Foreign currency exchange (gain)/loss | (39,450 | ) | 79,400 | (130,096 | ) | 95,904 | ||
| Allowance/(Reversal of allowance) for doubtful accounts | - | (8,249 | ) | 7,489 | (8,249 | ) | ||
| Loss on written-off of property, plant and equipment | 52,667 | - | 52,667 | - | ||||
| Amortization and depreciation | 93,854 | 37,041 | 191,632 | 163,512 | ||||
| Changes in working capital items | 325,843 | 72,853 | 44,772 | (66,264 | ) | |||
| Income tax paid | - | (599 | ) | - | (88,101 | ) | ||
| Net cash generated from/(used in) operating activities | 268,647 | 765 | (328,533 | ) | (513,936 | ) | ||
| Financing activities | ||||||||
| Advances from related parties | 38,120 | 67,007 | 241,024 | 320,835 | ||||
| Repayment of advance from a related party | (2,335 | ) | (56,369 | ) | (494,542 | ) | (123,104 | ) |
| Loans from related parties | - | - | - | 219,029 | ||||
| Repayment of loan from a related party | - | - | (13,997 | ) | - | |||
| Proceed from private placement | - | - | 931,280 | - | ||||
| Net cash generated from financing activities | 35,785 | 10,638 | 663,765 | 416,760 | ||||
| Investing activities | ||||||||
| Development expenditures | - | - | (112 | ) | (2,865 | ) | ||
| Purchase of property, plant and equipment | (58,951 | ) | (684 | ) | (77,783 | ) | (29,667 | ) |
| Net cash used in investing activities | (58,951 | ) | (684 | ) | (77,895 | ) | (32,532 | ) |
| Effect of exchange rate changes on cash held in foreign currencies | (25,961 | ) | 23,042 | (56,380 | ) | (41,289 | ) | |
| Increase/(Decrease) in cash | 219,520 | 33,761 | 200,957 | (170,997 | ) | |||
| Cash, end of period/year | 340,765 | 139,808 | 340,765 | 139,808 | ||||
About GINSMS
GINSMS is a mobile technology and services company focusing on 2 areas namely its A2P Messaging Service and its Software Products and Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distributes innovative software products and services for mobile operators and enterprises and has successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.
For further information, please contact:
GINSMS Inc.
Joel Chin, CEO
Tel: +65-6441-1029
Email: investor.relations@ginsms.com
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