FIRESWIRL ANNOUNCES 2016 Q1 FINANCIAL RESULTS
May 26, 2016 - Vancouver, British Columbia - Fireswirl Technologies Inc. (TSXV:FSW).
("Fireswirl" or "the Company"), today announced its financial results for the first quarter ended March 31, 2016. All figures are quoted in Canadian dollars. Financial statements and accompanying MD&A are available on SEDAR.
Financial Highlights for Q1:
* 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 its non-controlling shareholders 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 March 31, 2016. The operation results of XCXD have been presented as a discontinued operation for the three months ended March 31, 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 months ended March 31, 2016, total operating revenue from continuing operations was $88,890 compared to $365,689 for the same period in 2015. Net loss from continuing operations was $407,236 compared to $2,115,025 of net income for the same period in 2015. The net income for Q1 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 disposition on the sale of the Shenzhen e-Commerce Platform were excluded, the Company would have had a net loss of $835,360 for the three months ended March 31, 2015.
* For the three months ended March 31, 2016, the Company had a net loss from discontinued operations of $489,350 compared to net income of $292,759 for the same period in 2015.
* For the three months ended March 31, 2016, the Company had a net loss from continuing operations attributable to shareholders of the Company of $407,236 compared to $2,115,025 net income for the same period in 2015. For the three months ended March 31, 2016, the Company had a total loss attributable to shareholders of the Company of $786,711 compared to a total income of $2,261,405 for the same period in 2015.
"We are pleased to have the full support of the Board of Directors and Shareholders in moving towards a new direction." Stated Lawrence Ng, CEO, "Our management team is committed to developing our business model to adapt to the fast changing market environment by looking into different business opportunities and confidant in achieving our profitability targets."
About Fireswirl Technologies Inc.
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.
Further information can be found on the company at: www.fireswirl.com or contact:
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.