NEWSLETTER SIGNUP
VANCOUVER,
BC – June 24, 2009 – Live Current Media Inc. (the “Company”) announced
today that on June 18, 2009, it was advised by Ernst & Young, its
independent registered public accounting firm, that the audit opinion dated
March 24, 2009 on the Company’s December 31, 2008 consolidated financial
statements could no longer be relied upon. The Company was further advised by Ernst & Young that
there were errors in its September 30, 2008 interim consolidated financial
statements, in its December 31, 2008 consolidated financial statements and in
its March 31, 2009 interim consolidated financial statements. Based on the foregoing, C. Geoffrey
Hampson, the Company’s Chief Executive Officer and Chief Financial Officer,
concluded that the previously filed consolidated financial statements contained
in the Company’s Quarterly Report on Form 10-Q for the nine months ended
September 30, 2008, with was filed with the Securities and Exchange Commission
(the “SEC”) and the British Columbia Securities Commission (together with the
SEC, the “Commissions”) on November 14, 2008, the Company’s Annual Report on
Form 10-K for the year ended December 31, 2008, which was filed with the Commissions
on March 31, 2009 and the Company’s Quarterly Report on Form 10-Q for the three
months ended March 31, 2009, which was filed with the Commissions on May 15,
2009, should no longer be relied upon due to errors in the consolidated
financial statements which include the following:
I. Warrants
that the Company issued in conjunction with a financing that closed on November
19, 2008 should be valued and classified as a liability in the Company’s
financial statements, rather than as equity. Management of the Company believes that the resulting
increase to its liabilities will be approximately $90,000.
II. As part
of the acquisition of Auctomatic Inc. (“Auctomatic”), the Company agreed to
issue a total of approximately 1,000,000 shares to the former shareholders of
Auctomatic. Of these shares,
413,604 shares were to be issued to three members of Auctomatic’s management,
one third each on the first, second and third anniversaries of the transaction,
conditional on the individuals remaining as employees of the Company. The portion of the fair value of the
shares to be issued based on the period of service these individuals provided
to the Company, computed in relation to the period of service required for the
individuals to become entitled to the shares, should have been recorded as an
expense in 2008 and 2009.
III. On
January 1, 2009 the Company was to pay a bonus of CDN $100,000 to its President
and Chief Corporate Development Officer.
This bonus was not accrued as a liability as at December 31, 2008. The bonus is not discretionary;
therefore an additional liability and expense of $81,660 should have been
recorded in the Company’s financial statements at December 31, 2008. This item was erroneously included in
the Company’s financial statements for the three months ended March 31, 2009,
insofar as the compensation expense is recorded in 2009 and not 2008. The Company intends to file with the Commissions an amended Form 10-K/A
for the year ended December 31, 2008 and an amended Form 10-Q/A for the nine
months ended September 30, 2008 and for the three months ended March 31, 2009
as soon as practicable. Until the
restated reports are filed, the Company is continuing its investigations with
respect to these matters. Management is assessing the effect of the restatement on the Company’s internal
control over financial reporting and its disclosure controls and
procedures. Management will not
reach a final conclusion on the effect of the restatements on internal control
over financial reporting and disclosure controls and procedures until
completion of the restatement process. Mr. Hampson discussed these matters with the Company’s independent
registered public accounting firm. All statements in this press release that are not statements of
historical fact are forward-looking statements, including the impact of a
restatement of the Company’s financial results, the timeline respecting the
restatement, any potential impacts on disclosure controls and procedures or
internal control over financial reporting, any projections of earnings,
revenue, cash or other financial items, any statements of the plans,
strategies, objectives and goals of management for future operations, any
statements regarding future economic conditions or performance, statements of
belief and any statements of assumptions underlying any of the foregoing.
These statements are based on expectations and assumptions as of the date of
this press release and are subject to numerous risks and uncertainties, which
could cause actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties include, but
are not limited to, the
Company’s ongoing investigations regarding a restatement of the Company’s
financial results, and other factors. Except as
required by law, Live Current Media Inc. assumes no obligation to update these
forward-looking statements to reflect future events or actual outcomes and does
not intend to do so.
About Live Current Media Inc.
Live Current builds, owns and operates some of the most powerful and engaging
content and commerce destinations on the Internet, such as
www.perfume.com and www.cricket.com. Through subject-specific
DestinationHubs™, Live Current properties connect people to each other and to
the information, brands, and products they are passionate about. Live Current
has headquarters in Vancouver, Canada with a location in Seattle, WA and is
publicly traded on the OTCBB (LIVC). For more information, visit www.livecurrent.com.
Contact:
Live Current
Andrea Laird
Investor Relations Contact
604-453-4870 or 1-866-898-4354
andrea@livecurrent.com
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