XTM Announces Delay in Filing Audited Annual Financial Statements

Rhea-AI Summary

XTM Inc. (QB: XTMIF / CSE: PAID) announced it will be unable to file its audited annual financial statements for the fiscal year ending December 31, 2022, by the May 1, 2023 deadline due to a recent auditor change and increased transaction volumes. In response, the company has requested a management cease trade order to allow continued trading of its shares by non-insiders. XTM expects to complete the audit and file the necessary statements by May 19, 2023. The corporation confirms it is not facing insolvency and will provide bi-weekly updates regarding the status of the filing. XTM is a fintech innovator providing wage access solutions to the hospitality and personal care sectors through its Today™ app.

Positive

• The corporation is actively working with auditors to resolve the filing issue, showing commitment to compliance.
• No insolvency proceedings are currently facing the corporation, indicating financial stability.
• XTM provides an innovative wage access solution, which presents growth potential in the fintech sector.

Negative

• Failure to meet the May 1, 2023 filing deadline could lead to regulatory scrutiny or trading restrictions.
• The recent change in auditors may indicate underlying issues with financial management or reporting.

TORONTO--(BUSINESS WIRE)-- XTM Inc. (“XTM” or the “Corporation”) (QB: XTMIF / CSE:PAID / FSE:7XT) announced today that it will not be in a position to file its audited annual financial statements (the “Issuer Statements”), management’s discussion and analysis and related certifications for the financial year ended December 31, 2022 on or before May 1, 2023, as required, due to a recent change of auditor for the Corporation and audit requirements resulting from increased transaction volume experienced by the Company.

Accordingly, the Corporation has requested the issuance of a management cease trade order under the provisions of National Policy 12-203 Management Cease Trade Orders (“NP 12-203”) so as to permit the continued trading in the Corporation’s common shares by persons other than insiders and employees of the Corporation. The Corporation’s finance and accounting teams are working diligently with its auditors, and the Corporation expects to have the audit of the Issuer Statements completed, and the Issuer Statements filed, no later than May 19, 2023.

The Corporation confirms that it intends to satisfy the provisions of NP 12-203 and issue bi‑weekly default status reports for so long as the Corporation remains in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by the Corporation to remedy the default; particulars of any failure by the Corporation to fulfill these provisions, any subsequent defaults of the Corporation requiring a default announcement and any other material information concerning the affairs of the Corporation not previously disclosed. The Corporation is not subject to any insolvency proceedings nor is there in other material information concerning the affairs of the Corporation that has not been generally disclosed.

About XTM

XTM, www.xtminc.com, is a Miami and Toronto-based fintech innovator in the neo-banking space, helping businesses and service workers in the hospitality and personal care space disseminate and access earned wages and gratuities. XTM’s Today™ Solution, comprised of a free mobile app and a Visa or Mastercard debit card with free banking features, is used by thousands of restaurants, salons and staff across Canada and the United States. XTM is a global card issuer and real-time payment specialist. Our technology is used by Restaurants, Salons and service staff at no charge to automate and expedite Earned Wage and Gratuity Access, increasing time and attendance and eliminating cash from ecosystems. XTM’s Today solution drives operational efficiencies and delivers a bespoke user experience designed specifically for service workers.

The CSE has not approved nor disapproved the contents of this press release, and the CSE does not accept responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230425006206/en/

Marilyn Schaffer

E: finance@xtminc.com

T: 416.260.1641

Source: XTM Inc.

FAQ

Why is XTM Inc. unable to file its audited financial statements by May 1, 2023?

XTM Inc. announced it is unable to file its audited financial statements by May 1, 2023, due to a recent change of auditor and increased transaction volumes.

What is the deadline for XTM Inc. to file its financial statements?

XTM Inc. expects to file its audited financial statements no later than May 19, 2023.

What actions is XTM Inc. taking regarding its financial statement filing default?

XTM Inc. has requested a management cease trade order and will issue bi-weekly default status reports until the issue is resolved.

Is XTM Inc. currently facing any insolvency proceedings?

No, XTM Inc. confirms it is not subject to any insolvency proceedings.