NetCents Technology Updates Stakeholders on Ongoing Advancements to its Accounting Processes

Rhea-AI Summary

NetCents Technology Inc., a cryptocurrency payments company, provides updates on its accounting and auditing processes. The company has responded to document requests from the British Columbia Securities Commission and has not faced any regulatory actions. The Canadian Public Accountability Board has contacted the auditors to review their processes, causing delays in the audit completion timeline. NetCents is scheduled to resume interaction with auditors in mid-August for the 2021-2023 fiscal years. The company has developed reporting processes and established a multi-currency accounting process to address complexities in its unique business model. NetCents will now primarily use US dollars for daily operations and financial reporting.

Positive

• NetCents has responded to document requests from the British Columbia Securities Commission and has not faced any regulatory actions.
• The company is scheduled to resume interaction with auditors in mid-August for the 2021-2023 fiscal years.
• NetCents has developed reporting processes and established a multi-currency accounting process to address complexities in its unique business model.
• The company will now primarily use US dollars for daily operations and financial reporting.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - July 28, 2023) - NetCents Technology Inc. (CSE: NC) (FSE: 26N) (OTC: NTTCF) ("NetCents" or the "Company"), a cryptocurrency payments company, is pleased to provide updates on the ongoing progress in its accounting and auditing processes.

Over the recent months, the NetCents team has been working hard to prepare its 2021 financial statements in anticipation of its 2021 year-end audit. Subsequent to the completion of the 2020 year-end filing in October 2022, the Company has received numerous document requests from the British Columbia Securities Commission (BCSC) between October 2022 and February 2023. These requests included the auditor's work papers and other documentation related to the 2020 audited financial statements. NetCents has promptly responded to all inquiries from the BCSC, demonstrating its commitment to transparency and cooperation. Importantly, no regulatory actions have been taken against the Company. Moreover, the Company has not received any further inquiries from the BCSC regarding this matter since February 2023.

The Canadian Public Accountability Board (CPAB) also has contacted the Company's auditors to review their processes and methods. Although these interactions have led to delays in the 2021 audit completion timeline, NetCents remains fully committed to working closely with the auditors to assist in their review and recommendations. The Company's primary objective is to assist the auditors in satisfying CPAB's recommendations, ensuring effective and transparent accounting procedures moving forward.

Looking ahead, NetCents is scheduled to recommence its interaction with the auditors in mid-August to initiate the 2021, 2022 and 2023 fiscal years end auditing procedures. Rest assured, the NetCents accounting team has painstakingly arranged all necessary paperwork to ensure a smooth auditing process.

These efforts align with the Company's unique business model as a cryptocurrency merchant processor, differentiating NetCents from traditional players such as Visa and Mastercard. The Company's role as a facilitator of payments between customers and merchants involves accepting cryptocurrency payments, converting them to fiat currencies, and remitting the value using traditional banking systems. This unique business model introduces complexities involving multiple asset classes transiting through the Company balance sheet, which we are committed to addressing efficiently.

To help bridge the gap between our innovative business model and conventional accounting practices, the accounting department has developed reporting processes that integrate transaction and payment data from the merchant gateway into the accounting system. The Company has established a multi-currency and asset accounting process within our existing infrastructure and engaged with industry experts to facilitate the implementation of these changes. The Company is now focusing on further automating and speeding up the reconciliation process for multiple bank accounts, crypto wallets, and currency pairs.

In addition, the Company has decided that its primary currency for daily operations and financial reporting will be US dollars (USD), shifting away from Canadian dollars (CAD). This decision aligns NetCents better with industry standards and further streamlines its accounting efforts.

With these updates and changes, NetCents remains committed to integrating our innovative business model with traditional accounting standards. We will continue to focus on making necessary updates and achieving compliance in the forthcoming months. As we prepare our quarterly filings for 2021 and 2022 which will occur in the coming months, we also look forward to progressing the audit process efficiently.

The timeline for completing the audit is influenced by various elements, with the efficiency of the audit process being paramount. The process has proven somewhat atypical and more intricate and time-consuming than usual. In response, strategies are being evaluated to ensure a smoother and quicker execution of tasks.

Following the audit, the focus will shift to the relisting process with the CSE, which calls for comprehensive information about directors, executives, and other relevant details. The documentation required by The CSE is already in the works. The objective is to wrap up all these proceedings by late winter or early in the new year. However, this timeline is an approximation and might require adjustments in the face of unforeseen challenges. Despite this, optimism remains high within the team, and progress is being made quickly and steadily.

It is crucial to acknowledge that despite numerous challenges and hurdles, the Company has persevered and achieved steady growth in its business operations and platform. In the face of delays, complications, and extensive reviews, alongside the additional burden on company resources, NetCents has managed to navigate these obstacles adeptly.

One noteworthy achievement is the substantial increase in monthly volumes and merchant adoption. Despite the aforementioned difficulties, the Company has successfully attracted a more extensive customer base and enticed more merchants to utilize our services. This growth is a testament to the Company's commitment to providing top-notch solutions and building strong partnerships within the industry.

Moreover, NetCents' expansion on a global scale has been commendable, now transacting in 47 countries and counting. Its successful penetration into new markets is exemplified by the recently obtained licensing in the Middle East. In addition, the Company is making significant strides in securing licensing in the UK and Europe, a move set to strengthen its presence in these regions substantially.

Furthermore, NetCents has set its sights on the burgeoning Latin American market, a region we firmly assert, contrary to common perception, is an under-appreciated market with enormous potential. This market is emerging as a prominent arena for the crypto payments and remittance industry. The Company also is earnestly striving to establish a firm foothold in Asia. These strategic moves underscore the Company's unwavering dedication to broadening its operations and reaching out to new customer segments across a diverse range of geographical landscapes.

As of today, the Company continues to be subject to a cease trade order and is working diligently to complete the annual financial statements for the fiscal year ending October 31, 2021, and the fiscal year ending October 31, 2022.

About NetCents
NetCents Technology Inc., the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a Money Services Business (MSB) with FINTRAC.

For more information, please visit the corporate website at www.net-cents.com or contact Investor Relations at investor@net-cents.com.

On Behalf of the Board of Directors

NetCents Technology Inc.

"Clayton Moore"

Clayton Moore, CEO, Founder and Director
NetCents Technology Inc.
350 - 375 Water Street
Vancouver, BC, V6B 5C6

Cautionary Note Regarding Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements" within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements including without limitation, timing of finalizing and filing of the Company's financial statements, expected growth and success of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/175249

FAQ

What updates did NetCents provide on its accounting and auditing processes?

NetCents has been working on its 2021 financial statements and has responded to document requests from the British Columbia Securities Commission. The company has not faced any regulatory actions.

What has caused delays in the audit completion timeline?

The Canadian Public Accountability Board has contacted the auditors to review their processes, leading to delays in the audit completion timeline.

When will NetCents resume interaction with auditors?

NetCents is scheduled to resume interaction with auditors in mid-August for the 2021-2023 fiscal years.

How is NetCents addressing complexities in its business model?

NetCents has developed reporting processes and established a multi-currency accounting process to address complexities in its unique business model.

What is the primary currency NetCents will use for daily operations and financial reporting?

NetCents will now primarily use US dollars for daily operations and financial reporting.