GETT:CC - G.E.T.T to Restate Issued Financial Statements
(TheNewswire)
Brossard QC - TheNewswire - January 30, 2023 - G.E.T.T Gold Inc. (“GETT” or the “Company”)(TSXV:GETT), announces a restatement of theCompany’s financial statements for the years ended September 30,2022 and 2021.
All references herein to $ refer to Canadiandollars.
Restatement of Financial Statementsfor the years ended September 30, 2022 and 2021
The Company determined that its interpretation andapplication of certain technical accounting standards related to anadvance on profit-sharing and the gold ounces to be delivered whichrequires the Company to make a restatement to the audited consolidatedfinancial statements for the years ended September 30, 2022 andSeptember 30, 2021. The Company has restated, due to material errors,the comparative information included in the financial statements forthe year ended September 30, 2022 and in the management’s discussionand analysis (the “MD&A”).
Users of the Company’s financial statements shouldnote that the restatement and the associated adjustments are not as aresult of any change to the Company’s operations or the Company’sbusiness. For any and all of the aforementioned periods there is noimpact on the overall cash position, or net cash flows from operating,investment or financing activities on the statement of cashflows.
Advance on profit-sharing
As at September 30, 2022, Management of the Companydetermined that its initial interpretation of the accounting treatmentof an advance received under an agreement dated March 15, 2019 was notin accordance with IFRS 9. Management reassessed its interpretationand concluded that the advance on profit-sharing received under theagreement at the contract date should have been recorded as afinancial liability since inception of the contract instead of as acredit against exploration and evaluation expenses incurred in 2019and 2020 as part of this agreement.
Gold ounces to be delivered
As at September 30, 2022, Management of the Companydetermined that its interpretation and application of certaintechnical accounting standards related to gold ounces to be deliveredsigned in prior years was not in accordance with the IFRS. Previously,gold ounces payable were recorded at historical cost as thetransaction contracts was considered to be entered into and continuedto be held for the purpose of the delivery of a non-financial item inaccordance with the entity's expected sale requirements (or the“own-use” exemption). However, following the agreement to sell themining properties on August 30, 2021 (Note 6 of the annual financialstatements), the gold ounces to be delivered were no longer held forthe purpose of the delivery of a non-financial item in accordance withthe entity's expected sale requirements. Consequently, the gold ouncesto be delivered are considered a derivative instrument and accountedfor at fair value.
A summary of the restatement is described in furtherdetail below. More details can be found in the Financial Statementsand the MD&A that will be available on the System for ElectronicDocument Analysis and Retrieval (SEDAR) website atwww.sedar.com.
Statements of financial position:
| As of October 1 st , 2020 |
| As previously reported |
| Impact |
| Adjusted |
| Liabilities |
| Advance on profit-sharing |
| $ |
| - |
| $ |
| 2,500,000 |
| $ |
| 2,500,000 |
| Total Liabilities |
| $ |
| - |
| $ |
| 2,500,000 |
| $ |
| 2,500,000 |
| Equity |
| Deficit |
| $ |
| (68,524,977) |
| $ |
| (2,500,000) |
| $ |
| (71,024,977) |
| Total equity |
| $ |
| (68,524,977) |
| $ |
| (2,500,000) |
| $ |
| (71,024,977) |
| As of September 30, 2021 |
| As previously reported |
| Impact |
| Adjusted |
| Liabilities |
| Current portion of gold ounces to be delivered |
| $ |
| 6,049,500 |
| $ |
| 4,105,917 |
| $ |
| 10,155,417 |
| Non-current portion of gold ounces to be delivered |
| 19,500 |
| 2,888 |
| 22,388 |
| Advance on profit-sharing |
| - |
| 2,500,000 |
| 2,500,000 |
| Total Liabilities |
| $ |
| 6,069,000 |
| $ |
| 6,608,805 |
| $ |
| 12,677,805 |
| Equity |
| Deficit |
| $ |
| (71,769,706) |
| $ |
| (6,608,805) |
| $ |
| (78,378,511) |
| Total equity |
| $ |
| (71,769,706) |
| $ |
| (6,608,805) |
| $ |
| (78,378,511) |
Impact on the statements of income (loss) andcomprehensive income (loss) :
| For the year ended September 30, 2021 |
| As previously reported |
| Impact |
| Adjusted |
| OTHER EXPENSES (INCOME) |
| Change in fair value of gold ounces to bedelivered |
| $ |
| - |
| $ |
| 4,108,805 |
| $ |
| 4108,805 |
| Net loss |
| $ |
| - |
| $ |
| 4,108,805 |
| $ |
| 4,108,805 |
The impact of the restatements on the statements ofchange in equity resulted in an increase of the deficit by $2,500,000as at October 1, 2020 and an increase of the deficit by $6,608,805 asat September 30, 2021.
The restatements had no impact on the net cash flowsrelated to operating, investing and financing activities reported inthe statement of cash flows as the adjustments were limited toelements reported within operating activities in 2021.
About G.E.T.T Gold
G.E.T.T Gold is active in the exploration and thedevelopment of gold resources in Quebec. G.E.T.T Gold also has anexclusive license for the Thermal Fragmentation mining method.
The company’s growth strategy is based on:
-
The development of its gold deposit with the objectiveof producing revenue from its operations;
-
Increasing the value of its mining asset byprioritizing its exploration targets; and
-
The commercialization and deployment of its thermalfragmentation technology.
Follow the link to view G.E.T.T Gold’s website www.gettgold.com
For additional information:
John Stella, Investor relations (514) 718-7976 jstella@gettgold.com
Fabien Miller, President & CEO (514) 892-1935 fmiller@gettgold.com
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release. This press releaseincludes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other thanstatements of historical facts, that address future explorationdrilling, exploration and production activities and events ordevelopments that the Corporation expects, are forward lookingstatements. Although the Corporation believes the expectationsexpressed in such forward-looking statements are based on reasonableassumptions, such statements are not guarantees of future performanceand actual results or developments may differ materially from those inforward-looking statements. Factors that could cause actual results todiffer materially from those in forward looking statements includemarket prices, exploitation and exploration successes, continuedavailability of capital and financing, and general economic, market orbusiness conditions.
G.E.T.T Gold inc. 7055 TaschereauBlvd., suite 500, Brossard (Québec) J4Z 1A7
Tel: (450)510-4442 www.gettgold.com
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