MCW Energy Group Refiles Financial Statements and MD&A
December 4, 2013 (Source: Marketwired) — MCW Energy Group (TSX-V: MCW) (MCW.V) (“MCW”), a Canadian holding company involved in fuel distribution and the creation of oil sands extraction technology, announced today that it has refiled certain previously filed financial statements and management discussion and analysis (“MD&A“).
During the three months ended May 31, 2013, MCW changed the software which it uses for accounting for its fuel operations. Following that change, MCW identified a major difference between the new and old software which results in the excise taxes and environmental fees charged to MCW by its suppliers being excluded from cost of goods sold and the excise taxes and environmental fees collected by MCW from customers being excluded from net revenue.
MCW, as reported in the press release of August 2, 2013, initially concluded that the old software that MCW had previously used was not in compliance with International Financial Reporting Standards and expected to amend and refile its financial statements and MD&A for the three months ended November 30, 2012 and for the three and six months ended February 28, 2013, as well as for the years ended August 31, 2010, 2011 and 2012.
Following an extensive review of revenue and cost recognition policies under International Financial Reporting Standards, MCW concluded that the only revision which is, in fact, required would be to the previously filed condensed consolidated interim financial statements and MD&A for the three and nine months ended May 31, 2013 and 2012, in which the excise taxes and environmental fees received from customers and the identical amounts charged by its suppliers were both excluded from reported revenues and cost of sales in the financial statements and MD&A.
The effect of these changes on the previously reported condensed consolidated interim financial statements and MD&A for the three and nine months ended May 31, 2013 resulted in both the previously reported net revenue and cost of goods sold being increased by identical amounts, to include the excise taxes and environmental fees collected by MCW from customers and amounts charged to MCW by its suppliers. These amounts are identical increases in net revenues and cost of goods of $46,779,932 for the nine months ended May 31, 2013, $36,877,522 for the nine months ended May 31, 2012, $16,714,410 for the three months ended May 31, 2013 and $12,856,396 for the three months ended May 31, 2012. These changes do not affected MCW’s previously reported gross profit from fuel operations and the results of operations.
About MCW Energy Group:
MCW Energy Group Limited is focused on value creation as (i) a distributor of gasoline and diesel fuels to service stations in Southern California for over 72 years, having revenue in the fiscal year ending August 31, 2011, of US$241.5 million, most recently reported having revenue of USD$363.3 million for the fiscal year ending August 31, 2012 and, (ii) as a developer of proprietary technology for the extraction of oil from oil sands at its first field in the Uinta Basin of Utah, USA. MCW’s management team is comprised of individuals who have extensive knowledge in both conventional and unconventional oil and gas projects and production, as well as refinery and fuel distribution experience.
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward -looking statements in this news release, include, but are not limited to the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although MCW believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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