January 12, 2017
Legend Plans to Restate Audited Financial Information for the Year Ended September 30, 2015
Vancouver, BC – Legend Power Systems Inc. (“Legend” or “the Company”)(TSXV: LPS) announces it has decided to restate certain financial information for the year ended September 30, 2015 (the “2015 Restatement”).
The decision to restate followed a review conducted by the Company’s new auditor, Chief Financial Officer and Audit Committee Chairman, wherein it was determined that a specific sales transaction recorded in fiscal 2015 did not fully meet revenue recognition criteria.
The material changes to be included in the 2015 Restatement will affect the Company’s revenue, cost of goods sold, inventory, accounts receivable, warranty provision and accrued liabilities, and is projected to increase the Company’s loss and comprehensive loss for that year by $0.35 million, from $2.54 million to $2.89 million.
In consultation with both Legend’s former and current auditors, the Company intends is to file its 2016 audited financial statements before January 30, 2017 as planned, which statements will contain re-stated comparative amounts for the fiscal year ended 2015.
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legend20.wpengine.com) markets a proprietary device, the ‘Harmonizer’ that helps individual buildings reduce energy consumption through the utility-proven concept of Conservation Voltage Reduction, (CVR). Legend provides customers risk free energy savings, improves the value of their physical assets, and enhances their sustainability efforts. As an application with demand side benefits, Legend is also a key contributor toward utility conservation goals. Legend was recognized as the top performing cleantech company on the TSX Venture Exchange in 2015
For further information, please contact:
Randy Buchamer, CEO and President
+ 1 778 945 1501
Steve Vanry, CFO
+ 1 604 671 9522
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This Press Release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.