Mega Uranium To Restate Financial Statements
TORONTO, Dec. 14, 2018 - Mega Uranium Ltd. (TSX: MGA) announces that it will be restating its audited annual financial statements for the year ended September 30, 2017 (the “2017 Annual Statements”) and its interim financial statements for the first three quarters of the 2016, 2017 and 2018 financial years (the “Interim Statements”). The restatements are all due to deferred tax accounting errors that were identified during the preparation and audit of the company’s annual financial statements for the 2018 financial year.
The incorrect tax rate was applied when calculating the unrealized gain on one of the company’s investments, net of taxes, in the 2017 Annual Statements. Additionally, the company did not record deferred income tax recovery in respect of the investment on a quarterly basis in the Interim Statements. The adjustments to be made to all of the financial statements are quantitatively but not qualitatively material and impact non-cash items.
The 2017 Annual Statements will be restated in the company’s audited annual consolidated financial statements for the year ended September 30, 2018, which will be filed on SEDAR under Mega’s issuer profile prior to the end of December. It is also anticipated that the restated Interim Statements (and related Management’s Discussion & Analysis) will be filed prior to the calendar year end. The company will be undertaking a review of its processes and procedures relating to tax accounting in light of the restatements.
The adjustments to the financial statements are set out below and are estimates. The final adjustments that are made as part of the restated financial statements may differ from the estimates. All financial information is reported in thousands of Canadian dollars, except for per share amounts.
Quarterly Restatements
As at and for the three months ended December 31, 2015
| Statement of Financial Position – December 31, 2015 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 2,355 | (306 | ) | 2,049 | ||
| Deficit | (323,024 | ) | 306 | (322,718 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended December 31, 2015 | ||||||
| Deferred tax recovery | nil | 306 | 306 | |||
| Net (loss) income for the period | (1,468 | ) | 306 | (1,162 | ) | |
| Change in fair value of long-term investment, net of tax | 2,308 | (306 | ) | 2,002 | ||
| Total comprehensive income for the period | 920 | nil | 920 | |||
| Basic and diluted (loss) income per share | (0.01 | ) | 0.00 | (0.00 | ) | |
| Statement of Cash Flows - three months ended December 31, 2015 | ||||||
| Net income (loss) for the period | (1,468 | ) | 306 | (1,162 | ) | |
| Deferred income tax recovery | nil | (306 | ) | (306 | ) | |
As at and for the three and six months ended March 31, 2016
| Statement of Financial Position – March 31, 2016 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 22,590 | (3,002 | ) | 19,588 | ||
| Deficit | (323,178 | ) | 3,002 | (320,176 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended March 31, 2016 | ||||||
| Deferred tax recovery | nil | 2,696 | 2,696 | |||
| Net income (loss) for the period | (331 | ) | 2,696 | 2,365 | ||
| Change in fair value of long-term investment, net of tax | 20,345 | (2,696 | ) | 17,649 | ||
| Total comprehensive income for the period | 20,004 | nil | 20,004 | |||
| Basic and diluted income (loss) per share | (0.00 | ) | 0.01 | 0.01 | ||
| Statement of (Loss) Income and Comprehensive (Loss) Income - six months ended March 31, 2016 | ||||||
| Deferred tax recovery | nil | 3,002 | 3,002 | |||
| Net income (loss) for the period | (1,799 | ) | 3,002 | 1,203 | ||
| Change in fair value of long-term investment, net of tax | 22,653 | (3,002 | ) | 19,651 | ||
| Total comprehensive income for the period | 20,924 | nil | 20,924 | |||
| Basic and diluted income (loss) per share | (0.01 | ) | 0.01 | 0.00 | ||
| Statement of Cash Flows - six months ended March 31, 2016 | ||||||
| Net income (loss) for the period | (1,799 | ) | 3,002 | 1,203 | ||
| Deferred income tax recovery | nil | (3,002 | ) | (3,002 | ) | |
Three and Nine Months Ended June 30, 2016
| Statement of Financial Position – June 30, 2016 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 38,745 | (5,184 | ) | 33,561 | ||
| Deficit | (325,229 | ) | 5,184 | (320,045 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended June 30, 2016 | ||||||
| Deferred tax recovery | nil | 2,182 | 2,182 | |||
| Net income (loss) for the period | (2,207 | ) | 2,182 | (25 | ) | |
| Change in fair value of long-term investment, net of tax | 16,469 | (2,182 | ) | 14,287 | ||
| Total comprehensive income for the period | 14,183 | nil | 14,183 | |||
| Basic and diluted income (loss) per share | (0.01 | ) | 0.01 | (0.00 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income - nine months ended June 30, 2016 | ||||||
| Deferred tax recovery | nil | 5,184 | 5,184 | |||
| Net income (loss) for the period | (4,006 | ) | 5,184 | 1,178 | ||
| Change in fair value of long-term investment, net of tax | 39,122 | (5,184 | ) | 33,938 | ||
| Total comprehensive income for the period | 35,107 | nil | 35,107 | |||
| Basic and diluted income (loss) per share | (0.01 | ) | 0.02 | 0.00 | ||
| Statement of Cash Flows - six months ended June 30, 2016 | ||||||
| Net income (loss) for the period | (4,006 | ) | 5,184 | 1,178 | ||
| Deferred income tax recovery | nil | (5,184 | ) | (5,184 | ) | |
As at and for the three months ended December 31, 2016
| Statement of Financial Position – December 31, 2016 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 31,392 | (847 | ) | 30,545 | ||
| Deficit | (305,898 | ) | 847 | (305,051 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended December 31, 2016 | ||||||
| Deferred tax recovery | nil | 847 | 847 | |||
| Net income (loss) for the period | (1,258 | ) | 847 | (411 | ) | |
| Change in fair value of long-term investment, net of tax | 6,394 | (847 | ) | 5,547 | ||
| Total comprehensive income for the period | 5,112 | nil | 5,112 | |||
| Basic and diluted income (loss) per share | (0.00 | ) | 0.00 | (0.00 | ) | |
| Statement of Cash Flows – three months ended December 31, 2016 | ||||||
| Net income (loss) for the period | (1,258 | ) | 847 | (411 | ) | |
| Deferred income tax recovery | nil | (847 | ) | (847 | ) | |
Three and Six Months Ended March 31, 2017
| Statement of Financial Position – March 31, 2017 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 46,929 | (2,901 | ) | 44,028 | ||
| Deficit | (306,191 | ) | 2,901 | (303,290 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended March 31, 2017 | ||||||
| Deferred tax recovery | nil | 2,054 | 2,054 | |||
| Net income (loss) for the period | (293 | ) | 2,054 | 1,761 | ||
| Change in fair value of long-term investment, net of tax | 15,501 | (2,054 | ) | 13,447 | ||
| Total comprehensive income for the period | 15,244 | nil | 15,244 | |||
| Basic and diluted income (loss) per share | (0.00 | ) | 0.01 | 0.01 | ||
| Statement of (Loss) Income and Comprehensive (Loss) Income – six months ended March 31, 2017 | ||||||
| Deferred tax recovery | nil | 2,901 | 2,901 | |||
| Net income (loss) for the period | (1,551 | ) | 2,901 | 1,350 | ||
| Change in fair value of long-term investment, net of tax | 21,895 | (2,901 | ) | 18,994 | ||
| Total comprehensive income for the period | 20,356 | nil | 20,356 | |||
| Basic and diluted income (loss) per share | (0.01 | ) | 0.01 | 0.00 | ||
| Statement of Cash Flows – six months ended March 31, 2017 | ||||||
| Net income (loss) for the period | (1,551 | ) | 2,901 | 1,350 | ||
| Deferred income tax recovery | nil | (2,901 | ) | (2,901 | ) | |
Three and Nine Months Ended June 30, 2017
| Statement of Financial Position – June 30, 2017 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 41,097 | (2,131 | ) | 38,966 | ||
| Deficit | (308,194 | ) | 2,131 | (306,063 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended June 30, 2017 | ||||||
| Deferred tax recovery | nil | (770 | ) | (770 | ) | |
| Net income (loss) for the period | (2,003 | ) | (770 | ) | (2,773 | ) |
| Change in fair value of long-term investment, net of tax | (5,812 | ) | 770 | (5,042 | ) | |
| Total comprehensive income for the period | (7,835 | ) | nil | (7,835 | ) | |
| Basic and diluted income (loss) per share | (0.01 | ) | (0.00 | ) | (0.01 | ) |
| Statement of (Loss) Income and Comprehensive (Loss) Income – nine months ended June 30, 2017 | ||||||
| Deferred tax recovery | nil | 2,131 | 2,131 | |||
| Net income (loss) for the period | (3,554 | ) | 2,131 | (1,423 | ) | |
| Change in fair value of long-term investment, net of tax | 16,083 | (2,131 | ) | 13,952 | ||
| Total comprehensive income for the period | 12,521 | nil | 12,521 | |||
| Basic and diluted income (loss) per share | (0.01 | ) | 0.01 | (0.00 | ) | |
| Statement of Cash Flows – nine months ended June 30, 2017 | ||||||
| Net income (loss) for the period | (3,554 | ) | 2,131 | (1,423 | ) | |
| Deferred income tax recovery | nil | (2,131 | ) | (2,131 | ) | |
As at and for the three months ended December 31, 2017
| Statement of Financial Position – December 31, 2017 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 44,633 | (1,130 | ) | 43,503 | ||
| Deficit | (305,346 | ) | 1,130 | (304,216 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended December 31, 2017 | ||||||
| Deferred tax recovery | nil | 1,130 | 1,130 | |||
| Net income (loss) for the period | (828 | ) | 1,130 | 302 | ||
| Change in fair value of long-term investment, net of tax | 8,525 | (1,130 | ) | 7,395 | ||
| Total comprehensive income for the period | 7,697 | nil | 7,697 | |||
| Basic and diluted income (loss) per share | (0.00 | ) | 0.00 | 0.00 | ||
| Statement of Cash Flows – three months ended December 31, 2017 | ||||||
| Net income (loss) for the period | (828 | ) | 1,130 | 302 | ||
| Deferred income tax recovery | nil | (1,130 | ) | (1,130 | ) | |
Three and Six Months Ended March 31, 2018
| Statement of Financial Position – March 31, 2018 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 25,458 | 1,412 | 26,870 | |||
| Deficit | (306,712 | ) | (1,412 | ) | (308,124 | ) |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended March 31, 2018 | ||||||
| Deferred tax recovery | nil | (2,542 | ) | (2,542 | ) | |
| Net income (loss) for the period | (1,366 | ) | (2,542 | ) | (3,908 | ) |
| Change in fair value of long-term investment, net of tax | (19,182 | ) | 2,542 | (16,640 | ) | |
| Total comprehensive income for the period | (20,541 | ) | nil | (20,541 | ) | |
| Basic and diluted income (loss) per share | (0.00 | ) | (0.01 | ) | (0.01 | ) |
| Statement of (Loss) Income and Comprehensive (Loss) Income – six months ended March 31, 2018 | ||||||
| Deferred tax recovery | nil | (1,412 | ) | (1,412 | ) | |
| Net income (loss) for the period | (2,194 | ) | (1,412 | ) | (3,606 | ) |
| Change in fair value of long-term investment, net of tax | (10,657 | ) | 1,412 | (9,245 | ) | |
| Total comprehensive income for the period | (12,844 | ) | nil | (12,844 | ) | |
| Basic and diluted income (loss) per share | (0.01 | ) | (0.00 | ) | (0.01 | ) |
| Statement of Cash Flows – six months ended March 31, 2018 | ||||||
| Net income (loss) for the period | (2,194 | ) | (1,412 | ) | (3,606 | ) |
| Deferred income tax recovery | nil | 1,412 | 1,412 | |||
Three and Nine Months Ended June 30, 2018
| Statement of Financial Position – June 30, 2018 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 29,331 | 899 | 30,230 | |||
| Deficit | (312,011 | ) | (899 | ) | (312,910 | ) |
| Statement of (Loss) Income and Comprehensive (Loss) Income – three months ended June 30, 2018 | ||||||
| Deferred tax recovery | nil | 513 | 513 | |||
| Net income (loss) for the period | (5,299 | ) | 513 | (4,786 | ) | |
| Change in fair value of long-term investment, net of tax | 3,875 | (513 | ) | 3,362 | ||
| Total comprehensive income for the period | (1,426 | ) | nil | (1,426 | ) | |
| Basic and diluted income (loss) per share | (0.02 | ) | 0.00 | (0.02 | ) | |
| Statement of (Loss) Income and Comprehensive (Loss) Income – nine months ended June 30, 2018 | ||||||
| Deferred tax recovery | nil | (899 | ) | (899 | ) | |
| Net income (loss) for the period | (7,493 | ) | (899 | ) | (8,392 | ) |
| Change in fair value of long-term investment, net of tax | (6,782 | ) | 899 | (5,883 | ) | |
| Total comprehensive income for the period | (14,270 | ) | nil | (14,270 | ) | |
| Basic and diluted income (loss) per share | (0.03 | ) | (0.00 | ) | (0.03 | ) |
| Statement of Cash Flows – nine months ended June 30, 2018 | ||||||
| Net income (loss) for the period | (7,493 | ) | (899 | ) | (8,392 | ) |
| Deferred income tax recovery | nil | 899 | 899 | |||
September 30, 2017 Year End Restatement
As at and for the year ended September 30, 2017
| Statement of Financial Position – September 30, 2017 | As previously reported ($) | Adjustment ($) | As restated ($) | |||
| Accumulated other comprehensive income | 36,108 | 2,002 | 38,110 | |||
| Deficit | (304,518 | ) | (2,002 | ) | (306,520 | ) |
| Statement of (Loss) Income and Comprehensive (Loss) Income – year ended September 30, 2017 | ||||||
| Deferred tax recovery | 4,005 | (2,002 | ) | 2,003 | ||
| Net income (loss) for the year | 386 | (2,002 | ) | (1,616 | ) | |
| Change in fair value of long-term investment, net of tax | 11,109 | 2,002 | 13,111 | |||
| Total comprehensive income for the year | 11,472 | nil | 11,472 | |||
| Basic and diluted income (loss) per share | 0.00 | (0.01 | ) | (0.01 | ) | |
| Statement of Cash Flows – year ended September 30, 2017 | ||||||
| Net income (loss) for the year | 386 | (2,002 | ) | (1,616 | ) | |
| Deferred income tax recovery | (4,005 | ) | 2,002 | (2,003 | ) | |
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia and Canada and a portfolio of equity investments in uranium-focused public and private companies. Further information on Mega can be found on the company’s website at www.megauranium.com.
For further information please contact:
Investor Relations
Mega Uranium Ltd.
Richard Patricio
Chief Executive Officer
T: (416) 643-7630
info@megauranium.com
www.megauranium.com