MONTREAL, QB / ACCESSWIRE / December 30, 2015 / IOU Financial Inc. (TSXV: IOU) (“IOU Financial” or the “Company”), a leading online lender to small businesses, announces that it has refiled today its unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2015 and 2014 (the “Q3 Financial Statements”), which can be found under the Company’s profile on SEDAR at www.sedar.com.
Refiled Q3 Financial Statements
The Q3 Financial Statements are refiled to reflect amendments made by the Company to its condensed interim consolidated statement of financial position as of September 30, 2015 and its condensed interim consolidated statement of comprehensive loss for the three and nine month periods ended September 30, 2015. Certain transactions were not included in the calculation of financing revenue and consequently had the effect of overstating financing revenue for the period. Financing revenue for the three and nine months ended September 30, 2015 has been restated to $1,713,912 and $4,272,428, respectively, as opposed to the previously reported $2,036,877 and $4,595,393. In addition, currency translation differences have been reduced from $699,569 to $681,485 for the three months ended September 30, 2015, and from $1,398,232 to $1,380,148 for the nine months ended September 30, 2015, and commercial loans receivable – net as at September 30, 2015 has been reduced from $20,252,688 to $19,911,639.
The Company has also refiled today its management’s discussion & analysis for the three and nine months ended September 30, 2015, which can be found under the Company’s profile on SEDAR at www.sedar.com, to reflect the amendments to the Q3 Financial Statements.
Financial Disclosure Update
As a result of the amendments to the Q3 Financial Statements:
– IOU Financial recorded financial revenues for the quarter ended September 30, 2015 of $3.5 million, in comparison to $3.8 million as previously disclosed by the Company. For the nine month period ended September 30, 2015, IOU Financial recorded financial revenues of $9.0 million, in comparison to $9.3 million as previously-disclosed by the Company;
– IOU Financial recorded net financial income before operating expenses for the quarter ended September 30, 2015 of $2.4 million, in comparison to $2.7 million as previously disclosed. For the nine month period ended September 30, 2015, IOU Financial recorded net financial income before operating expenses of $6.2 million, in comparison to $6.5 million as previously disclosed;
– The Company closed its third quarter of 2015 with a net loss attributable to common shareholders of $1.3 million or $0.02 per share, in comparison to $929,100 or $0.02 per share, as previously disclosed. For the nine month period ended September 30, 2015, IOU Financial had a net loss attributable to common shareholders of $2.2 million or $0.06 per share, in comparison to $1.8 million or $0.05 per share as previously disclosed.
– For the quarter ended September 30, 2015, excluding non-recurring expenses that relate to the unsolicited takeover bid for the Company, IOU Financial had net loss attributable to common shareholders of $171,078, in comparison to net income attributable to common shareholders of $151,887 as previously disclosed by the Company. For the nine month period ended September 30, 2015, excluding non-recurring expenses that relate to the unsolicited takeover bid for the Company, IOU Financial had a net loss attributable to common shareholders of $994,763, in comparison to a net loss attributable to common shareholders of $671,798 as previously disclosed.
About IOU Financial
IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU Financial expects or anticipates may occur in the future. These forward looking statements can be identified by the use of words such as “anticipates”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, “should”, “will”, or the negative thereof or other variations thereon. These forward-looking statements reflect management’s current views and are based on certain assumptions including assumptions as to future economic conditions and courses of action, as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are subject to risks and uncertainties and no assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU Financial will derive from them. A number of factors could cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, risks related to the Company’s incapacity to execute on its business plan, risks inherent in growing a new business, dependence on third-party service providers, competition, regulatory risk, dependence on key personnel, risks related to rapid growth of IOU Financial, security and confidentiality risk, risk related to inability to attract borrowers and lenders, technological development risk, IT disruptions, maintenance of client relationships, litigation risk, volatility of stock price, and other factors that are beyond its control. Additional information concerning these and other factors can be found beginning on page 17 under the heading “Risks and Uncertainties” in IOU Financial’s management’s discussion and analysis dated December 18, 2015, which is available under IOU Financial’s profile on SEDAR at www.sedar.com. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225
Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298
SOURCE: IOU Financial Inc.
ReleaseID: 435235
