MONTREAL, March 16, 2012 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU") (CNSX: IOU) recorded revenues of $141,606 and $51,231 as well as deferred revenues of $91,423 and $2,035, during both fiscal years ended December 31, 2011 and 2010 respectively. The Company closed fiscal 2011 with a net loss of $2,515,051, including a one time, mostly non-cash cost of listing expense of approximately $1,419,581, or $0.12 per share, compared with a net loss of $1,331,091 or $0.14 per share in 2010.
At the end of fiscal 2011, total assets stood at $3,346,513 compared with $279,562 on December 31, 2010, and consisted mainly of cash on hand of $1,107,465, commercial loans receivable of $1,969,259, prepaid and deposits of $52,316, and sales taxes receivable of $39,244. Total liabilities, in the amount of $767,460 consisted primarily of a convertible demand promissory note of $345,880, account and trade payables of $330,157 and deferred revenues of $91,423. Shareholders' equity showed a surplus of $2,579,053, compared with a deficit of $1,287,441 a year earlier.
IOU Financial's financial statements and management discussion & analysis for the year ended December 31, 2011 have been filed on SEDAR and are available at www.sedar.com.
About IOU Financial Inc.
IOU Financial Inc. ("IOU"), via its U.S. subsidiary, IOU Central Inc., operates an online lending platform which services store-front businesses (traditional and internet-based) throughout the United States, that it believes are under served by banks today. IOU allows these businesses to obtain loans of up to $100,000, without having to resort to more expensive factoring type products. Loan applications are done online and businesses can receive funding in as little as two business days. The Company's approach to lending is unique. Its underwriting model looks holistically at a business' financial realities, with an emphasis on its day-to-day cash flow trends, while its micro-payment system allows it to service the loans on a daily basis for easy cash flow management. To learn more visit: www.ioucentral.com
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Chief Executive Officer
(514) 789-0694 ext. 225
Chief Financial Officer
(514) 789-0694 ext. 298