Iota Communications Completes Restatement of its Second Quarter Fiscal Year 2020 Financial Statements

Rhea-AI Summary

Iota Communications, Inc. (OTC PINK: IOTC) has announced the completion of its restated unaudited financial statements for Q2 FY2020, ending November 30, 2019. The restatement is due to material errors in previously issued statements. IotaComm intends to file additional financial statements by March 31, 2021, though delays may occur due to the COVID-19 pandemic. CEO Terrence DeFranco highlighted the significant effort behind the restatement, allowing the company to focus on future filings and business development.

Positive

• Completion of the restated financial statements allows focus on future business growth.

Negative

• The restatement was necessary due to material errors, indicating prior financial inaccuracies.
• Potential delays in future filings due to COVID-19 risks affecting operational focus.

ALLENTOWN, PA / ACCESSWIRE / November 9, 2020 / Iota Communications, Inc. (OTC PINK:IOTC) ("IotaComm" or the "Company"), a wireless communication and data analytics software company, today announced the filing of the Company's restated unaudited financial statements and corresponding Management Discussion and Analysis ("MD&A") for the second quarter fiscal year 2020 ended November 30, 2019 (the "Restated Financial Statements"). The Restated Financial Statements can be found on the Company's investor section of its website, www.iotacommunications.com, or at the Company profile page at www.sec.gov.

The Company also announced that it intends to file the subsequent interim financial statements and audited financial statements and corresponding MD&A for the periods ended February 29, 2020, May 31, 2020, August 31, 2020 and November 30, 2020, respectively, by March 31, 2021, however no assurance can be given that the anticipated timing of filing will be met due to the unprecedented impact of the COVID-19 pandemic on the Company and its employees.

As previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 6, 2020, the Board of Directors of Iota Communications, Inc., after discussion with management of the Company, concluded that the Company's previously issued unaudited condensed consolidated interim financial statements as of and for the three and six months ended November 30, 2019, included in the Company's Quarterly Report on Form 10-Q and Form 10-Q/A for such period filed with the SEC on January 22, 2020, should be restated because of certain material errors and should no longer be relied upon. Disclosure of the nature of the restatement and adjustments and the impact of the restatement as of and for the three and six months ended November 30, 2019, is described in note 3 of the Restated Financial Statements.

"The restatement of the quarterly report for the period ended November 30, 2020 has been an extensive process primarily due to complexity of accounting related to the various aspects of our business," stated Terrence DeFranco, CEO of IotaComm. "This was a significant undertaking that required considerable diligence and we are very pleased to complete this restatement and turn our focus to completing the subsequent filings and building our business. I am extremely thankful to our team and our auditors for their work in getting this filing across the finish line."

About Iota Communications, Inc.

Iota Communications, Inc. (OTC: IOTC) is a wireless communication and data analytics software company that provides Internet of Things solutions which optimize energy efficiency, sustainability and operations for commercial customers. Our company is built on a foundation of a portfolio of FCC-licensed spectrum that is used to enable low-power, wide area connectivity, which serves as a unique capability in our Smart Building and Smart City data analytics applications. Our connectivity and analytics solutions help our customers achieve higher returns on assets and investment and more efficient and productive operations.

For more information about Iota Communications, Inc., please visit: https://www.iotacommunications.com

Forward-Looking Statements

This press release may contain "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our beliefs regarding the role that IoT will play in the future, our ability to implement our strategic goals, our ability to raise capital and reduce costs, and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include, but are not limited to: risks related to the acquisition and integration of the assets we acquired from Solbright Group, Inc., risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

Corporate & Investors:

Iota Communications, Inc.
600 Hamilton Street, 10th Floor
Allentown, PA 18101
Phone: 484-640-5321
investors@iotacommunications.com

ClearThink
nyc@clearthink.capital

SOURCE: Iota Communications, Inc.

View source version on accesswire.com:
https://www.accesswire.com/615370/Iota-Communications-Completes-Restatement-of-its-Second-Quarter-Fiscal-Year-2020-Financial-Statements

FAQ

What financial statements did Iota Communications restate?

Iota Communications restated its unaudited financial statements for Q2 FY2020, ending November 30, 2019.

When will Iota Communications file its next financial statements?

Iota Communications intends to file its subsequent financial statements by March 31, 2021.

What caused the need for Iota Communications' financial restatement?

The restatement was due to material errors in previously issued financial statements.

How did COVID-19 affect Iota Communications' financial reporting?

COVID-19 has created uncertainties that may delay the filing of Iota Communications' interim financial statements.

What is the significance of Iota Communications' restated financial statements?

The restatement signals the company's commitment to accurate reporting and transparency for investors.