MISSISSAUGA, Ontario, Sept. 23, 2016 (GLOBE NEWSWIRE) -- DataWind Inc. (TSX:DW), the leader in delivering Internet access to emerging markets, announces that it has filed its Change of Auditor Notice in accordance with s. 4.11 of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”) to report the resignation of Deloitte LLP (the “Former Auditor”) as its auditor.
The Former Auditor resigned at the request of the Company on September 9, 2016. The resignation of the Former Auditor was approved by the board of directors of the Company.
There were no reservations in the Former Auditor’s reports on the Company’s financial statements relating to the period during which the Former Auditor was the Company’s auditor.
There are no reportable events for disagreements or consultations (as those terms are defined in NI-51-102) in connection with the change of auditor. There is a reportable event for an unresolved issue.
As previously disclosed on September 6, 2016 the Company was discussing with the Former Auditor whether or not it was appropriate to move to a cash basis of accounting for one channel partner in the TV Home Shopping vertical. The channel partner in question has a long credit history with the Company and the Company had received payment in full subsequent to its March 31, 2016 year end. DataWind believes its application of accounting principles is correct.
The formal details of the unresolved issue are as follows:
- The Former Auditor has not received sufficient audit evidence to date in respect of the Company’s basis of revenue recognition related to when the Company has transferred the risks and rewards of ownership of goods sold to its customers.
- Neither of the audit committee of the Company’s board of directors nor the board of directors of the Company has discussed the issue with the Former Auditor; however the chair of the audit committee of the Company’s board of directors has discussed the issue with the Former Auditor.
- The reporting issuer has authorized the Former Auditor to respond fully to all enquiries by the any successor auditor concerning this issue.
Pursuant to NI 51-102, the letter from the Former Auditor has been reviewed, and the Notice of Change of Auditor has been approved, by the board of directors of the Company. Both of these documents are available on SEDAR.
The Company is in the process of engaging a successor auditor and will issue a press release once that engagement has been finalized.
This press release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions to the extent they relate to the company or its management. The forward- looking statements are not historical facts, but reflect management’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in the company’s expectations, except as prescribed by applicable securities laws.
No securities regulatory authority has either approved or disapproved the contents of this press release/media advisory.
DataWind, Inc. is a leader in providing affordable mobile Internet connectivity in emerging markets. The company's patented, cloud-based technology reduces up to 97% the amount of data needed for web browsing, providing a broadband experience on any network -- even on legacy 2G networks that are still prevalent in developing countries. DataWind also provides economical smartphones and tablets that come bundled with one year of unlimited Internet access, making it the largest tablet provider in India. DataWind's unique solution offers broad social and economic benefits for the billions of people around the world for whom an Internet connection was previously out of reach. DataWind is traded on the Toronto Stock Exchange (TSX:DW). For more information, visit www.datawind.com.