NetCents Technology Provides Update on Delayed Yearly Audited Financial Statements
Vancouver, British Columbia--(Newsfile Corp. - May 18, 2021) - NetCents Technology Inc. (CSE: NC) (FSE: 26N) (OTCQB: NTTCF) ("NetCents" or the "Company"), a cryptocurrency payments technology solutions provider, is providing an update with respect to filing its annual financial statements, management's discussion and analysis and related officer certifications for the financial year ended October 31, 2020.
The Company has received updated information requests from Davidson & Company LLP's, the Company's auditors, in relation to the Company's operations for the fiscal year ended October 31, 2021. The outstanding items to be completed prior to finishing the audit include: reconciliation of year end merchant payout account balances with the Company's liquidity provider; user wallet balance confirmations from users; confirmation of outstanding merchant funds at the end of the fiscal year and when the funds were subsequently paid out; reconciliation of payroll accrued during the year; related party account balancing; loans payable and equity reconciliation; and operation expenses and accounts payable reconciliation.
The Company has subsequently provided Davidson & Company the requested information who are now conducting a full review of the information provided. Once the audit is completed and submitted to the BCSC, the cease trade order will be vacated.
Due to the lack of current regulations and processes in place for the cryptocurrency industry that are in place for legacy systems and companies, these regulations are being shoehorned into the cryptocurrency space and platforms like NetCents, regardless of fit. Until regulations and governance are put into place that were specifically designed for the cryptocurrency industry, the industry is nowhere moving past these complicated timelines and delays when it comes to these matters. There will continue to be delays and complications until there are definitive regulations and governance put in place.
"For example, one of the issues that I'm told is causing delay is user wallet confirmations. Now it's my opinion that this process works with confirmations that are being sent to a broker who then relays the info to the investor of the Company they have invested in to send that confirmation back to the auditors. While this process works in that regard, I don't see how that process works for users who have wallets on an exchange, I for example have multiple wallets on multiple exchanges," stated Clayton Moore, Founder and CEO of NetCents Technology. "The likelihood of a wallet holder sending a confirmation back is highly unlikely given their wallet may be inactive, they don't actively check the email they signed up with, or the emails are going to their spam folder. We've sent 42 confirmations and received 2 back. Now we are resending the confirmations again. The challenge with that process is motivating people who have no incentive to complete this process. It's processes like these when wallets have already been checked and confirmed by the blockchain and the miners. It is one of many examples that are causing delays."
The Company is viewed as a gold standard when it comes to KYC and AML and although there are processes that are not being asked of us, the Company is going to make sure that the proper processes are in place to protect merchants and will continue to forge forward and implement proper procedures, governance, and protocols.
The Company will continue to work in such a way that while new processes are being developed and updated for cryptocurrency companies, the Company continues to work towards where it believes the industry should be headed to protect all industry participants and continue to implement proper governance that is reflected throughout our entire business model that could become industry standard. While we enter this new regulation era, the Company will continue to disrupt all areas of the traditional landscape.
- The Company identifies that part of the issue of this audit delays were internal, the Company will continue to announce new senior executives, independent directors, and advisors joining the Company in the coming weeks.
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.
On Behalf of the Board of Directors
NetCents Technology Inc.
Clayton Moore, CEO, Founder and Director
NetCents Technology Inc.
1000 - 1021 West Hastings Street
Vancouver, BC, V6E 0C3
Cautionary Note Regarding Forward-Looking Information
This release includes certain statements that may be deemed "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. 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.
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