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YuuZoo's audited sums show reversal into S$101m net loss
A NET loss of S$101 million for its fiscal 2017 was reported by beleaguered online media company YuuZoo Networks Group Corporation - formerly known as YuuZoo Corporation - as according to its audited results that were disclosed on Wednesday.
This compared against the net profit of S$2.29 million for the 12 months ended Dec 31, 2017 that the group reported on its unaudited results.
Among other things, its revenue on its unaudited figure stood at S$62.2 million, while the audited set of results put revenue at just S$18 million. This was a result of "management's decision" to fully impair certain intangible assets, meaning that revenues from network development fees and franchise sales was reversed, the company said. This decision was made based on the recoverability of the assets and the "future economic benefits from the intangible assets, which had been impacted by the current change in the technological and industry landscape", the company said.
YuuZoo also recognised on an audited basis S$38.6 million as an impairment of assets available for sale, which is more than double the S$17.5 million that was earlier recognised in its unaudited sums as an impairment of assets available for sale.
Separately, the external auditors made a disclaimer of opinion on the firm's 2017 results. RT LLP highlighted YuuZoo's net operating cash outflow of S$11.5 million, saying that among other things, YuuZoo would need to secure financing in order to continue its operations.
YuuZoo had earlier been served a notice of compliance by the Singapore Exchange (SGX), with the regulator requiring it to submit information for an independent review by EY. SGX followed up in February by saying that EY had not been given the necessary access to information, and had been "restricted by scope exclusions".
"As at the date of our report, nothing has come to our attention that would cause us to believe that the observation by the SGX in the notice of compliance has changed. Correspondingly, we are not able to determine if any adjustment would have to be made to the financial statements had the EY report been completed and finalised," said RT LLP.