TORONTO and MELBOURNE, Australia, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa" or the "Company") announces an update on the audit from the Company's audit firm, PKF Antares ("PKF"). PKF has notified Banxa that the audit is moving to the final review stage with Senior Partners of the firm. PKF has provided a revised timeline to complete this final review process and it is anticipated to be completed by December 3, 2023.
This revised timeline is tentative due to PKF having challenged Banxa's revenue recognition policy as it relates to revenue recognized on an agency basis. Banxa is fully committed to ensuring all its accounting policies are sound and as such has engaged an independent third party to review its revenue recognition policy which has caused the additional delay in closing this year's audit. Banxa is in the process of compiling supporting documentation to defend its agency revenue recognition policy. Banxa's agency revenue recognition policy has been in place for the past four years. The outcome of Banxa's agency revenue recognition policy review does not have an impact on the financial statements beyond 'revenue' and 'cost of sale'. Gross profit and net income will remain unchanged, regardless.
Banxa and PKF are diligently working to finalize the audit as soon as November 30, 2023. This is still well within the deadline provided by the British Columbia Securities Commission of December 29, 2023. Banxa will continue to update the market on a bi-weekly frequency on the audit's progress.
"Although this delay is frustrating, it does not dim in any way Banxa's tremendous future prospects. Accounting conventions for crypto are complex and still being shaped, a reality faced by publicly traded companies in the industry. Banxa and PKF are committed to completing a thorough audit, which is critical for instilling confidence into all our stakeholders heading into 2024 and beyond," said Director and Head of Corporate Affairs, Zafer Qureshi.
CONTACTS
Investors:
Zafer Qureshi
investors@banxa.com
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "Holger Arians"
Holger Arians = Chairman and Chief Executive Officer (1-888-218-6863)
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Forward-Looking Information
This press release contains statements including "forward-looking information" ("Forward-looking statements"). Forward-looking statements in this news release include statements regarding the date of the Meeting. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will hold the Meeting on the expected date. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others that the Company will hold the Meeting on the expected date. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
