TSX Venture Exchange Symbol: ZAO
CALGARY, June 1 /CNW/ - Zaio Corporation (TSX-V ZAO) announced today that
it has filed its financial statements for the first quarter ended March 31,
2009. Audited financial statements for the year ended December 31, 2008 have
not yet been filed and accordingly amounts appearing as comparative numbers in
the current financial statements are noted as unaudited. While the field work
related to the 2008 audit has been completed, the internal review process is
nearing completion and the Company anticipates filing these statements very
During the first quarter the Company continued its efforts to restructure
and settle liabilities and obligations arising from its decision last year to
close the US offices and wind down the US subsidiary. As of the date of this
report the subsidiary has been substantially wound down and virtually all of
the assets have been liquidated and proceeds distributed to creditors.
The recent announcement of a letter of intent with Zone Appraisers has
sparked renewed interest from potential investors which will allow the Company
to revise its business plan and focus on raising new capital to implement the
The Company did not carry on any revenue generating activities during the
first quarter as management was focused on restructuring and negotiations with
the Zone Appraisers. Revenue in the first quarter of 2008 amounted to $1.4.
Selling, General and Administrative expense in the first quarter of 2009
was $265,000 compared to $1.4 million in the prior year from continuing
operations. The 2009 expense includes amounts related to data acquisition and
software development. In prior years these costs would have been capitalized,
however, all database development costs incurred since the Company's inception
were written off at the end of 2008 as it was determined that the costs do not
meet the existing CICA requirements for capitalization.
Net loss from continuing operations for the first quarter amounted to
$432,000 or $0.01 per share compared to a loss of $500,000 or $0.01 per share
In the opinion of management, the write down of the database containing
20 million photographs and related property data and the patent pending
valuation technology does not in any way reflect the real value of this asset.
Its underlying value will be realized from future revenues once the recently
announced transaction with the Zone Appraisers is finalized.
Management remains confident that new capital will be invested in the
Company in the near future. In addition, the Company expects the current Cease
Trade Order to be lifted once the year end audited financial statements are
Zaio develops and maintains a site-verified database of photos,
valuations and property information of virtually every property in entire
cities, using a proprietary "GeoScore" property rating system. Zaio and its
network of premiere, local appraiser experts photograph and appraise entire
cities, one building at a time from the street. Zaio is a public Company that
trades under the symbol "ZAO" on the TSX Venture Exchange in Canada. Zaio
shares are also available in the U.S. under the trading symbol "ZAOFF". For
more company information, visit www.zaio.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking statements which may include
financial and business prospects, as well as statements regarding the
Company's future plans, objectives or economic performance and financial
outlooks. Such statements are subject to risk factors associated with the real
estate industry, and the overall economy in both Canada and the United States.
The Company believes that the expectations reflected in this news release are
reasonable but actual results may be affected by a variety of variables and
may be materially different from the results or events predicted in the
forward-looking statements. Readers are therefore cautioned not to place undue
reliance on these forward-looking statements.
In evaluating forward-looking statements readers should consider the risk
factors which could cause actual results or events to differ materially from
those indicated by such forward-looking statements. These forward-looking
statements are made as of the date hereof, and unless otherwise required by
applicable securities laws, the Company does not intend nor does it undertake
any obligation to update or revise any forward-looking statements.
For further information:
For further information: Bradley Stinson, CEO, (877) 318-0537; Rodney
Mitton, CFO, (877) 318-0537