iseemedia restates historical financials



    (TSX-V:IEE)

    TORONTO, June 6 /CNW/ - iseemedia Inc. announced today that it has filed
restated audited annual financial statements for the fiscal years ended
March 31, 2004 and June 30, 2005 and restated quarterly financial statements
for each of the quarters in fiscal 2006 and 2007 as a result of the Company's
current auditors discovering that there are prior period adjustments
applicable to the fiscal years ended March 31, 2004 and June 30, 2005.
    In connection with the filing of the restated financial statements, the
Company's former auditors, Cogan & Associates, have provided the Company with
a restated audit report in respect of the restated audited annual financial
statements for the year ended June 30, 2006. In addition, the Company's
current auditors, Danziger Hochman Partners LLP, have completed a formal
review engagement of the financial statements in accordance with Canadian
generally accepted standards for review of interim financial statements for
the nine month period ended March 31, 2007.

    Summary of restated items

    The Company's previously filed financial statements for the fiscal year
ended March 31, 2004 did not account for the beneficial conversion features
included in its convertible debentures and loans payable. Upon further
evaluation by management, it has been determined that these beneficial
conversion features should have been capitalized and recorded as debt
discounts. As a result, the financial statements for the fiscal year ended
March 31, 2004 have been restated to recognize the following:

    
    -   $181,374 of unamortized debt discounts related to the convertible
        debentures;
    -   $108,325 of unamortized debt discounts related to the loans payable;
    -   $338,505 of contributed surplus; and
    -   $48,806 expense relating to the amortization of debt discounts.
    

    The net impact on the Company's consolidated statement of operations for
the fiscal year ended March 31, 2004 was an increase in financing costs of
$48,806 relating to the amortization of debt discounts.
    The Company's previously filed financial statements for the fiscal year
ended June 30, 2005 did not account for the value related to the issuance of
292,118 common shares for the purchase of certain computer technology, the
subsequent amortization of such computer technology, and the issuance of
305,401 common shares issued as a penalty related to a delay in going public.
Additionally, these financial statements did not record the effects of the
aforementioned restatements to the fiscal year ended March 31, 2004. As a
result, the financial statements for the fiscal year ended June 30, 2005 have
bee restated to recognize the following:

    
    -   $248,300 increase in gross property and equipment related to the
        292,118 common shares issued for the purchase of certain computer
        technology;
    -   $248,300 increase in amortization of property and equipment related
        to the purchased computer technology;
    -   $259,591 increase in administrative and general expenses related to
        the 305,401 common shares issued as a penalty related to a delay in
        going public;
    -   $507,621 in capital stock related to the 292,118 and 305,401 common
        shares issued in the aforementioned; and
    -   $289,699 expense relating to the amortization of the debt discounts
        recognized in the restated financials for the fiscal year ended
        March 31, 2004.
    

    The net impact on the Company's consolidated statements of operations for
the fiscal year ended June 30, 2005 were an increase in amortization of
property and equipment of $248,300; an increase in administrative and general
expense of $259,591; and an increase in financing costs of $289,699, resulting
in an overall increase in expenses of $797,590.
    For the fiscal years ended June 30, 2006 and 2005, and related quarters,
the consolidated statements of cash flows have been restated to reflect the
above-noted adjustments and to net certain non-cash financing and investing
activities.
    In addition, the significant accounting policies relating to foreign
currency translations and financial instruments have been revised.

    About iseemedia

    iseemedia Inc. is a software company focused on the commercialization of
advanced, rich content adaptation and delivery solutions for Web and wireless
applications. The Corporation has perpetual licenses to 39 U.S. patents (and
patents on the same technology registered in other jurisdictions) and to
patents pending in respect of technology involving ImageServer, panoramas and
viewers and image editing, forming the core technology that supports the
Company's wireless strategy. The Company also has filed three (3) applications
in respect of wireless patents relating to its content delivery and mobile
device solutions. iseemedia is listed on the TSX Venture Exchange
(Symbol:IEE). For more information, visit www.iseemedia.com.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

    %SEDAR: 00020202E




For further information:

For further information: Investor Relations Contact: David Berman, CFO,
iseemedia Inc, DavidB@iseemedia.com

Organization Profile

ISEEMEDIA INC.

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