XTM Provides Update on Status of Financial Statements

Rhea-AI Summary

XTM Inc. (XTMIF) announces a delay in filing its annual audited financial statements and related documents for the year ended December 31, 2023. The Ontario Securities Commission (OSC) has granted a Management Cease Trade Order (MCTO) under National Policy 12-203, impacting the trading activities of XTM's CEO and CFO until the required documents are filed. Other shareholders are not affected. The delay is attributed to audit procedures and a quality review for third-party service organizations. XTM is collaborating with auditors and aims to file the documents promptly. The company will issue bi-weekly status reports until compliance is achieved, detailing any material changes and actions taken to resolve the default.

Positive

• XTM is actively working with auditors to complete the required financial statements.
• The delay is mainly due to thorough audit procedures and quality reviews.

Negative

• Financial statements for the year ended December 31, 2023, have not been filed yet.
• Management Cease Trade Order (MCTO) restricts trading activities of CEO and CFO.
• Company remains non-compliant with financial statement filing requirements.
• Potential uncertainty for investors due to delayed financial disclosures.

TORONTO--(BUSINESS WIRE)-- XTM Inc. ("XTM" or the "Corporation") (QB: XTMIF / CSE: PAID / FSE: 7XT) is providing an update to its previously announced management cease trade order (the "MCTO") granted by the Ontario Securities Commission (the “OSC”) under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").

Pursuant to the MCTO, the Corporation’s CEO, Marilyn Schaffer, and the Corporation’s CFO, Swapan Kakumanu, may not trade in securities of the Corporation until such time as the Corporation files its annual audited financial statements, annual management's discussion and analysis and related certifications for the year ended December 31, 2023 (collectively, the "Required Documents"), and the OSC revokes the MCTO.

The MCTO does not affect the ability of other shareholders to trade their securities.

The Corporation has not yet filed the Required Documents, however XTM is working diligently with its auditors and expects that the Required Documents will be filed as soon as possible.

As previously reported, the delay is related to audit procedures and a quality review to support reliance on third party service organizations.

XTM also confirms that it intends to satisfy the provisions of NP 12-203 and issue bi-weekly default status reports for so long as they remain in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by XTM to remedy the default, particulars of any failure by the Corporation to fulfill these provisions, any subsequent defaults of XTM requiring a default announcement and any other material information concerning the affairs of the Corporation not previously disclosed.

About XTM

XTM with offices in Miami, Toronto, Denver and London is a Fintech creator of payment innovations including fully certified Earned Wage Access through its AnyDay™ product. Founded in the cloud-banking space to further support businesses to inspire their workforce in the hospitality, personal care and services staffing industries, XTM provides on-demand pay for many large brands including Earls, Maple Leaf Sports & Entertainment, Cactus Club, Marriott Hotels and Live Nation. QRails is a fully owned subsidiary of XTM. A cloud-based, API-driven issuer-processor, QRails enables payroll providers, financial institutions and other global fintech companies to keep up with the on-demand economy by delivering innovative digital payment solutions to their employees. QRails helps companies modernize and leverage payroll as a differentiator in attracting and retaining talent all at low to no cost for the employee and employer. QRails’ flagship solution, AnyDay™, is the first provider to own their full tech stack that powers their Earned Wage Access solution. Founded in 2016, QRails, Inc., together with its U.K. subsidiary, QRails Limited is SAP-certified, QRails also has earned several industry certifications under PCI DSS, and SOC. For more information, please visit www.QRails.com.

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.

Disclaimer for Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this press release includes, without limitation, statements relating to the date of filing of the Required Documents and the satisfaction of the provisions of NP 12- 203.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Corporation undertakes no obligation to update or revise any forward looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward looking information, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240618721177/en/

Marilyn Schaffer

E: finance@xtminc.com

T: 416.260.1641

Source: XTM Inc.

FAQ

What is the latest update on XTMIF's financial statement filings?

XTMIF has announced a delay in filing its annual audited financial statements for the year ended December 31, 2023, due to audit procedures and a quality review.

What is a Management Cease Trade Order (MCTO) in relation to XTMIF?

An MCTO restricts XTMIF's CEO and CFO from trading in the company's securities until they file the required financial documents and the OSC revokes the order.

Does the MCTO affect XTMIF shareholders?

No, the MCTO only restricts trading activities of XTMIF's CEO and CFO, not other shareholders.

When does XTMIF expect to file the delayed financial documents?

XTMIF is working diligently with auditors and expects to file the required documents as soon as possible.

What actions is XTMIF taking to address the financial statement filing delay?

XTMIF is collaborating with auditors and will issue bi-weekly default status reports to comply with NP 12-203 provisions until the filing requirements are met.