VANCOUVER, Aug. 25, 2016 /CNW/ - Fireswirl
Technologies Inc. (TSXV: FSW), "the
Company", today announced its financial results for the second
quarter ended June 30, 2016.
All figures are quoted in Canadian dollars. Financial
statements and accompanying MD&A are available on SEDAR.
Financial Highlights for Q2:
- On February 29, 2016, The Company
entered into a purchase and sale agreement, pursuant to which the
Company agreed to sell its controlling interest in XCXD to the
non-controlling shareholders of XCXD in consideration for an
aggregate of 6,057,673 common shares of the Company held by the
purchasers and cash in the amount of RMB5,000,000 in exchange for a full settlement of
XCXD's outstanding indebtedness to the Company and its
subsidiaries. On April 5, 2016, an
amendment to the purchase and sale agreement was signed to extend
the closing date of sale of all of XCXD's equity interest held by
the Company to December 31, 2016. The
assets and liabilities of XCXD have been classified as held for
sale as at June 30, 2016. The
operational results of XCXD have been presented as a discontinued
operation for the three and six months ended June 30, 2016.
The sale of XCXD is consistent with the Company's strategic plan
for its future development. XCXD has not generated significant
operating profit since it was acquired in October 2009. Management has decided to divert
its focus from XCXD and is working on identifying and developing
other suitable business for the Company.
- For the three and six months ended June
30, 2016, total operating revenue from continuing operations
was $156,449 and $245,339, respectively compared to $Nil and
$365,689 for the same period in 2015.
Net loss from continuing operations was $471,104 and $878,340 for the three and six months ended
June 30, 2016, respectively compared
to a net loss of $304,828 and a net
income of $1,810,196 for the same
period in 2015. The net income for the six months ended
June 30, 2015 was a result from the
gain recognized on the sale of the Shenzhen e-commerce platform in an amount of
$2,950,385. If the gain from the
disposition of the Shenzhen
e-Commerce Platform was excluded, the Company would have had a net
loss of $1,140,189 for the six months
ended June 30, 2015.
- For the three and six months ended June
30, 2016, the Company had a net loss from continuing
operations attributable to shareholders of the Company of
$471,104 and $878,340, respectively compared to a net loss of
$304,828 and a net income of
$1,810,196 for the same period in
2015.
- For the three and six months ended June
30, 2016, the Company had a net loss from discontinued
operations of $699,703 and
$1,189,053, respectively compared to
a net loss of $135,441 and a net
income of $157,318 for the same
period in 2015.
- For the three and six months ended June
30, 2016, the Company had a total loss attributable to
shareholders of the Company of $686,155 and $1,472,866, respectively compared to a net loss
of $372,549 and a net income of
$1,888,856 for the same period in
2015.
"We continue to evaluate new strategic opportunities in creating
shareholder value." Stated Lawrence
Ng, CEO, "The management team with the full support of the
Board is confident in our business strategy and are excited for the
opportunities that lie ahead.
About Fireswirl
Fireswirl Technologies Inc. (TSXV: FSW) is focused on creating
transactional revenue by engineering electronic and mobile commerce
solutions for content providers. The Company's technology has broad
applications for solutions requiring multiple payment interfaces,
multicurrency and multi-language capabilities. Our solutions can be
adapted to any industry seeking high volume or micro-payment
solutions involving a wide base of users through internet or
wireless applications.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
This news release contains certain forward-looking statements that
reflect the current views and/or expectations of Fireswirl
Technologies Inc. with respect to its performance, business and
future events. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without
limitation, those relating to changes in the market, potential
downturns in economic conditions, foreign exchange fluctuations,
general demand, competition and our ability to implement our
business plans and strategies in a timely manner or at all. These
risks, as well as others, could cause actual results and events to
vary significantly. Fireswirl Technologies Inc. does not undertake
any obligations to release publicly any revisions for updating any
voluntary forward-looking statements.
SOURCE Fireswirl Technologies Inc.