TORONTO, ONTARIO–(Marketwired – Sept. 14, 2016) – AlarmForce Industries Inc. (TSX:AF) (AlarmForce or the Company) today provides this status update pursuant to the alternative information guidelines as set out in National Policy 12-203 – Management Cease Trade Orders. These guidelines contemplate that the Company will normally provide bi-weekly updates on its affairs until such time as the Company is current with its filing obligations under Canadian securities laws.
The Company hereby reports that the Company’s examination of its revenue recognition policies for the periods starting fiscal Q4 2013 for revenue generated from customer contracts after a customer had requested cancellation of services is ongoing. As previously announced, where legislation governing consumer agreements prohibit charges made after cancellation notices, the Company’s preliminary conclusion is that the cancelled subscription revenue should not have been recognized.
Further as previously announced, the Company continues to consider its cancellation and other practices relating to existing residential customer contracts in all jurisdictions. The results of that review, and the financial impact of any decisions that may be made as a result of the review have not yet been determined.
The Company intends to complete its review, determine whether any restatement of historical financial statements is necessary and file its financial statements for the third quarter of fiscal 2016 as soon as possible. The Company is not in a position at this time to determine (i) the likelihood that a restatement of historical financial statements will be required; or (ii) in the event that a restatement of historical financial statements is required, the expected date of filing of such restatements and the financial statements for the third quarter of fiscal 2016. The Company does not expect that it will be able to make such determination until its review of individual subscriber accounts is completed. Due to the scope and work involved in the review of individual subscriber accounts, the Company does not know when the review will be completed but expects that such review will not be completed prior to November 1, 2016.
About AlarmForce
AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States. More information about AlarmForce’s products and services can be found at alarmforce.com.
Forward Looking Statements
Certain statements contained in this document constitute forward-looking statements or information (collectively “forward-looking statements“) within the meaning of applicable securities legislation. Forward-looking statements are often identified by words such as “may”, “will”, “should”, “could”, “anticipate”, “believe”, “expect”, “intend”, “plan”, “potential”, “continue” and similar expressions. Forward-looking statements contained or referred to in this press release includes, but may not be limited to: the Company continuing to consider its cancellation and other practices relating to existing residential customer contracts in all jurisdictions; the Company undertaking a detailed examination of its revenue recognition policies for the periods starting fiscal Q4 2013; the Company’s intention to complete its review, determine whether any restatement of historical financial statements is necessary and file its financial statements for the third quarter of fiscal 2016 as soon as possible; the Company’s expectation that the review will not be completed prior to November 1, 2016.
The forward-looking statements in this press release reflects the current expectations, assumptions and/or beliefs of AlarmForce about future events based on information currently available to AlarmForce. In connection with the forward-looking statements contained in this press release, AlarmForce has made assumptions about, among other things: AlarmForce’s business, the economy and AlarmForce’s industry in general; no significant events occur outside of AlarmForce’s normal course of business; that the Company ought not to have continued charging monitoring fees in some jurisdictions for the period following certain residential customers’ subscription cancellations; the quantum of refunds to be made to customers; that the cancelled subscription revenue should not have been recognized; the scope and work necessary to assess any required restatement and for the reporting of its quarterly financial results.
Although AlarmForce believes that the expectations reflected in the forward-looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve risks, uncertainties and other factors that could cause actual events, results, liabilities and financial results in future periods to differ materially from those expressed or implied by such forward-looking statements.
These risks and uncertainties include, among other things: the possibility that the final results of the review identify additional issues or different impacts not identified in the preliminary results of the review identified above; that the quantum of refunds to be made to customers is significantly different than preliminarily determined; that the consumer law, tax and any other possible consequences relating to the Company’s past and current treatment of cancellations is significantly different than preliminarily determined; and the other factors described in AlarmForce’s public filings (including its Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this press release speak only as of the date of this press release. Except as may be required by applicable securities laws, AlarmForce disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise.
Hugh Mansfield
(416) 599-0024 ext 237
(212) 370-5045 ext 237
hugh@mansfieldinc.com
Nila Halycia
(416) 599-0024 ext 236
nila@mansfieldinc.com