- UGE International Ltd. (UGE) will restate and refile its interim financial statements and MD&A
- The affected periods are the three and six months ended June 30, 2020 and for the three and nine months ended September 30, 2020
- Computational errors resulted in an overstatement of gross profit for the above mentioned periods
- The changes had no effect on the company’s cash position or business operations
- UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad
- UGE International Ltd. (UGE) opened trading at C$1.78 per share
UGE International Ltd. (UGE) will restate and refile its interim financial statements and management’s discussion and analysis (“MD&A”).
The affected periods are the three and six months ended June 30, 2020 and for the three and nine months ended September 30, 2020.
As part of a review of its financial statements in connection with 2020 year-end activities, the company determined that its originally issued interim financial statements for the above mentioned time periods contained the following material accounting errors:
- An overstatement of gross profit of approximately $230,000 in the three months ended June 30, 2020 and an overstatement of approximately $225,000 in the three months ended September 30, 2020;
- Net overstatement of Solar Assets and Construction in Progress of approximately $382,000 at September 30, 2020;
- Costs associated with the development of Solar Assets were incorrectly expensed rather than capitalized as required under IFRS resulting in an understatement of intangible assets of approximately $117,000 at September 30, 2020; and
- Net understatement of both right-of-use assets and lease liabilities of approximately $1,300,000 at September 30, 2020. These right-of-use assets and lease liabilities are not current assets or liabilities and reflect the value of long-term contracts for Solar Assets.
The changes noted above had no effect on the company’s cash position, business operations, or the economics of any of the company’s commercial arrangements.
“In the past year we have experienced tremendous growth and maturation as a company,” said UGE’s CEO, Nick Blitterswyk.
“I would like to thank our finance team for their hard work on our 2020 year-end audit, during which these necessary changes were identified from earlier in the year.”
The company intends to file its restated documents as soon as possible, in line with the release of its 2020 audited annual financial statements and MD&A for the three and twelve months ended December 31, 2020, which are expected to be filed by April 30, 2021.
Taking into account the time required for management to complete its analysis, as well as the need for the company’s auditors to complete their work, the company cannot assure that the intended timing of filing will be met.
The restated documents will replace and supersede the respective previously filed interim financial statements and MD&As for such periods. The previously filed interim financial statements and MD&As should no longer be relied on.
UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad.
UGE International Ltd. (UGE) opened trading at C$1.78 per share.