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YuuZoo says it has 'in principle' agreement with auditor to resolve S$8m query

YUUZOO Corporation, which has had its shares suspended by the regulator, said it has agreed "in principle" for its auditor to assess the veracity of an S$8 million in income that has been the subject of a regulatory query.

The Singapore Exchange (SGX) had suspended trading of shares in YuuZoo in March, after the company missed a disclosure deadline tied to regulatory queries over YuuZoo's full-year results for the 12 months ended Dec 31, 2017.

The regulator called on YuuZoo to have its statutory auditors provide an opinion on the veracity of S$8 million posted as "other income" in its fourth-quarter results. This amount had soared from S$159,000 in the same period the year before, with YuuZoo saying that the income had been primarily based on the gain from the acquisition of real estate assets in France.

YuuZoo added that it is awaiting a response from the auditor of the French component. It did not provide further details on the terms of this "in principle" agreement with its auditor, RT LLP, other than saying it had reached an agreement with RT to "resolve this".

The company added that it has provided "updated evidence" to the auditor on Wednesday over queried numbers tied to an available-for-sale balance of S$54.2 million as at Dec 31, 2017, and corresponding revenue of S$38.4 million from network development and franchise sales for the full year of 2017.

An available-for-sale item is one form of classification for financial assets.

YuuZoo is billed as a social media and e-commerce firm.

YuuZoo said this month that it had been given an "impossible" timeframe to put together material required by the auditors.

YuuZoo had asked the SGX for an extension until the end of March, but the request was rejected on March 13.