Further to its press release dated June 24, 2009, Live Current
Media Inc. (the "Company") (OTCBB: LIVC) announced today further
details of the impact of errors in certain of its consolidated
financial statements. In that press release, the Company stated
that those consolidated financial statements should no longer be
relied upon due to errors 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
$187,775. The Company originally reported that we believed the
increase to its liabilities would be $90,000.
(ii) As part of the acquisition of Entity 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) As part of the employment agreement signed with its
President and Chief Corporate Development Officer that became
effective January 1, 2008, the Company is required to pay him a
bonus of CDN $100,000 on January 1, 2009 and CDN $100,000 on
January 1, 2010. These bonuses are to be paid only if he remains an
officer of the Company at those dates. A portion of these bonuses
should have been accrued as a liability and recorded as additional
compensation expense in the Company's compensation expense in our
consolidated financial statements at September 30, 2008, December
31, 2008 and March 31, 2009.
The Company has now determined the effects of the above listed
adjustments to the Company's consolidated financial statements
which are detailed below.
Originally Restated
Reported Adjustment Required Amounts
9 months ended
September 30, 2008
------------------
Consolidated Balance
Sheets
Total Assets $6,985,340 No adjustment required $6,985,340
Total Liabilities $3,336,998 (iii) Increase to liabilities $3,439,190
of $102,192
Total Stockholders' $3,648,342 (ii) Increase to Additional $3,546,150
Equity Paid-in Capital of
$149,577
(ii) Increase to Accumulated
Deficit of $149,577
(iii) Increase to Accumulated
Deficit of $102,192
Consolidated
Statements of
Operations
Net Loss and ($7,015,015) (ii) Increase to Management ($7,266.784)
Comprehensive Loss Fees and Employee
for the Period Salaries expense of
$149,577
(ii) Increase to Net Loss and
Comprehensive Loss of
$149,577
(iii) Increase to Management
Fees and Employee
Salaries expense of
$102,192
(iii) Increase to Net Loss and
Comprehensive Loss of
$102,192
Consolidated
Statements of
Stockholders'
Equity
Common Stock $13,150 No adjustment required $13,150
Additional Paid-in $13,175,885 (ii) Increase to Additional $13,325,462
Capital Paid-in Capital of
$149,577
Accumulated ($9,540,693) (ii) Increase to Net Loss and ($9,792,462)
Deficit Comprehensive Loss of
$149,577
(ii) Increase to Accumulated
Deficit of $149,577
(iii) Increase to Net Loss and
Comprehensive Loss of
$102,192
(iii) Increase to Accumulated
Deficit of $102,192
12 months ended
December 31, 2008
-----------------
Consolidated Balance
Sheets
Total Assets $7,608,288 No adjustment required $7,608,288
Total Liabilities $5,352,687 (i) Increase to liabilities $5,629,627
of $157,895
(iii) Increase to liabilities
of $119,045
Total Stockholders' $2,255,601 (i) Decrease to Additional $1,978,661
Equity Paid-in Capital of
$157,895
(ii) Increase to Additional
Paid-in Capital of
$170,065
(ii) Increase to Accumulated
Deficit of $170,065
(iii) Increase to Accumulated
Deficit of $119,045
Consolidated
Statements of
Operations
Net Loss and ($10,006,456) (ii) Increase to Management ($10,295,566)
Comprehensive Fees and Employee
Loss for the Salaries expense of
Period $170,065
(ii) Increase to Net Loss and
Comprehensive Loss of
$170,065
(iii) Increase to Management
Fees and Employee
Salaries expense of
$119,045
(iii) Increase to Net Loss and
Comprehensive Loss of
$119,045
Consolidated
Statements of
Stockholders'
Equity
Common Stock $14,855 No adjustment required $14,855
Additional Paid-in $14,772,880 (i) Decrease to Additional $14,785,050
Capital Paid-in Capital of
$157,895
(ii) Increase to Additional
Paid-in Capital of
$170,065
Accumulated ($12,532,134) (ii) Increase to Net Loss ($12,821,244)
Deficit and Comprehensive Loss
of $170,065
(ii) Increase to Accumulated
Deficit of $170,065
(iii) Increase to Net Loss and
Comprehensive Loss of
$119,045
(iii) Increase to Accumulated
Deficit of $119,045
3 months ended
March 31, 2009
--------------
Consolidated Balance
Sheets
Total Assets $6,116,931 No adjustment required $6,116,931
Total Liabilities $3,982,988 (i) Increase to liabilities $4,271,996
of $242,704
(iii) Increase to liabilities
of $46,304
Total Stockholders' $2,133,943 (i) Decrease to Additional $1,844,935
Equity Paid-in Capital of
$157,895
(i) Increase to Accumulated
Deficit of $84,809
(ii) Increase to Additional
Paid-in Capital of
$238,395
(ii) Increase to Accumulated
Deficit of $238,395
(iii) Increase to Accumulated
Deficit of $46,304
Consolidated
Statements of
Operations
Net Loss and ($634,647) (i) Increase to General and ($715,045)
Comprehensive Loss Administrative expenses
for the Period of $84,809
(i) Increase to Net Loss and
Comprehensive Loss of
$84,809
(ii) Increase to Management
Fees and Employee
Salaries expense of
$68,330
(ii) Increase to Net Loss and
Comprehensive Loss of
$68,330
(iii) Decrease to Management
Fees and Employee
Salaries expense of
$72,741
(iii) Decrease to Net Loss and
Comprehensive Loss of
$72,741
Consolidated
Statements of
Stockholders'
Equity
Common Stock $15,216 No adjustment required $15,216
Additional Paid-in $15,285,508 (i) Decrease to Additional $15,366,008
Capital Paid-in Capital of
$157,895
(ii) Increase to Additional
Paid-in Capital of
$238,395
Accumulated ($13,166,781) (i) Increase to Net Loss ($13,536,289)
Deficit and Comprehensive Loss
of $84,809
(i) Increase to Closing
Accumulated Deficit of
$84,809
(ii) Increase to Net Loss and
Comprehensive Loss of
$68,330
(ii) Increase to Opening
Accumulated Deficit of
$170,065
(ii) Increase to Closing
Accumulated Deficit of
$238,395
(iii) Decrease to Net Loss and
Comprehensive Loss of
$72,741
(iii) Increase to Opening
Accumulated Deficit of
$119,045
(iii) Increase to Closing
Accumulated Deficit of
$46,304
The Company restated its intention to file with the Securities
and Exchange Commission and the British Columbia Securities
Commission 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 as well
as any other potential additional adjustments.
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 DestinationHubsTM, 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.
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.
Contacts: Live Current Andrea Laird Investor Relations Contact
604-453-4870 or 1-866-898-4354 andrea@livecurrent.com
www.livecurrent.com
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