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GINSMS Announces Audited Financial Results for the Twelve-Month Period Ended December 31, 2017

CALGARY, Alberta, March 28, 2018 (GLOBE NEWSWIRE) --

GINSMS Inc. (TSXV:GOK) (the “Corporation” or “GINSMS”) is pleased to announce that its audited financial statements for the twelve-month period ended December 31, 2017 have been filed today on SEDAR and are available at www.sedar.com.

On February 13, 2018, GINSMS had disclosed through the issuance of a press release unaudited financial results for the three- and the twelve-month periods ended December 31, 2017 and provided financial forecasts for the 2018 financial year. This financial disclosure was done in advance of today’s filing of the audited financial statements of the Corporation to allow GINSMS’ ultimate holding company, Beat Holdings Limited (“BHL”), a public company in Japan, to use certain of GINSMS’ financial information in the preparation of BHL’s financial statements.

GINSMS’ financial information for the twelve-month period ended December 31, 2017 was prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

GINSMS is pleased to report that there is no significant change between the audited financial statements filed today and the unaudited financial information it disclosed earlier on February 13, 2018, except for the reclassification of an impairment loss on property, plant and equipment to loss on written-off of property, plant and equipment for the year ended December 31, 2017.

The auditors of the Corporation are of the opinion that the impairment loss on property, plant and equipment amounting to $52,444 should be reclassified as property, plant and equipment written off for the year ended December 31, 2017. This will reflect the nature of the expense more appropriately. Accordingly, the “Operating Expenses and Finance Costs” and “Selected Liquidity and Capital Resources Information” are amended.


Operating Expenses and Finance Costs

Three-month
period ended
December 31,
2017
(Unaudited)
Three-month
period ended
December 31,
2016
(Unaudited)
Twelve-month
period ended
December 31,
2017
(Audited)
Twelve-month
period ended
December 31,
2016
(Audited)
Salaries and wages180,886 189,229 715,827 923,961
Directors’ fees40,000 40,000 40,000 40,000
Professional fees75,323 66,573 339,362 329,742
Foreign exchange (gain)/loss(39,450)79,400 (130,096)95,904
Other general & administrative expenses53,955 62,640 236,205 261,935
Allowance/(Reversal of allowance) for doubtful debts- (8,249)7,489 (8,249)
Depreciation
-Property, plant and equipment292 1,292 1,438 11,234
Interest expenses142,862 249,422 629,799 896,777
Loss on written-off of property, plant and equipment 52,667 - 52,667 -
506,535 680,307 1,892,691 2,551,304


Selected Liquidity and Capital Resources Information

Financial HighlightsThree-month
period ended
December 31,
2017
(Unaudited)
($)
Three-month
period ended
December 31,
2016
(Unaudited)
($)
Twelve-month
period ended
December 31
2017
(Audited)
($)
Twelve-month
period ended
December 31,
2016
(Audited)
($)
Cash, beginning of period/year121,245 106,047 139,808 310,805
Operating activities
Net loss for the period/year (307,059)(429,983)(1,124,717)(1,507,635)
Current tax expense9 845 - 2,317
Deferred tax (credit)/expense(79)35 (79)(2,197)
Interest expenses142,862 249,422 629,799 896,777
Foreign currency exchange (gain)/loss (39,450)79,400 (130,096)95,904
Allowance/(Reversal of allowance) for doubtful accounts- (8,249)7,489 (8,249)
Loss on written-off of property, plant and equipment52,667 - 52,667 -
Amortization and depreciation93,854 37,041 191,632 163,512
Changes in working capital items325,843 72,853 44,772 (66,264)
Income tax paid- (599)- (88,101)
Net cash generated from/(used in) operating activities268,647 765 (328,533)(513,936)
Financing activities
Advances from related parties 38,120 67,007 241,024 320,835
Repayment of advance from a related party(2,335)(56,369)(494,542)(123,104)
Loans from related parties- - - 219,029
Repayment of loan from a related party- - (13,997)-
Proceed from private placement- - 931,280 -
Net cash generated from financing activities35,785 10,638 663,765 416,760
Investing activities
Development expenditures- - (112)(2,865)
Purchase of property, plant and equipment(58,951)(684)(77,783)(29,667)
Net cash used in investing activities(58,951)(684)(77,895)(32,532)
Effect of exchange rate changes on cash held in foreign currencies(25,961)23,042 (56,380)(41,289)
Increase/(Decrease) in cash219,520 33,761 200,957 (170,997)
Cash, end of period/year340,765 139,808 340,765 139,808

About GINSMS

GINSMS is a mobile technology and services company focusing on 2 areas namely its A2P Messaging Service and its Software Products and Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distributes innovative software products and services for mobile operators and enterprises and has successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.

For further information, please contact:

GINSMS Inc.
Joel Chin, CEO
Tel: +65-6441-1029
Email: investor.relations@ginsms.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Source:GINSMS Inc.