NetCents Technology updates on audit progress

The cryptocurrency payments specialist said it has been granted an additional 10-day extension to provide its audited financials

NetCents - NetCents updates on audit progress
NetCents said due to an increase in transactions within its platform, auditors can no longer take the substantive approach to the audit

NetCents Technology Inc (CSE:NC) (OTCQB:NTTCF) has provided an update on its audit process, saying it has been granted an additional 10-day extension to provide its audited financials.

The company, which provides a transactional hub for cryptocurrency payments and equips businesses with technology to integrate crypto processing into their payment model without taking on the risk or volatility of the crypto market, said the extension had been granted for a number of reasons.

READ: NetCents plans to crack the Asian market with new advisor, venture capital expert Wang Qin

Firstly, NetCents said due to the exponential increase in volume of transactions within its platform, the auditors can no longer take the substantive approach to the audit and have transitioned to internal controls approach, validating and verifying its system and the controls that the company has implemented within the system. The firm said it has also used these audit extensions to test and confirm internal controls for its third-party auditors.

Secondly, the company said, although it has the internal processes implemented and ready, due to coronavirus and the limitations put in place, in-person testing of these controls has been delayed, and for that reason, it has been granted an additional extension of ten days to complete the audit.

In a statement, NetCents founder and chief executive Clayton Moore said: "In the past year, we've gone from doing $35,000 per month in transactions to exceeding that multiple times over in a single day. The audit process had to change as the substantive approach was no longer viable due to the sheer volume of transactions. As this is the first time that we have done an audit using the internal controls approach and the limitations put in place due to [coronavirus], the audit is taking longer than anticipated. While this is a lot more work for the company right now, moving forward we will have the road map in place for future audits."

The company also said it looked forward to demonstrating its internal control processes to prospective clients as it rolled out its business initiatives over the next six months, adding that it is continuing discussions with potential European banks regarding its "White-Label" crypto banking platform.

"We intend to hit the ground running as the European market opens back up. The European commercial banks are charging customers to hold currencies in FIAT currency by offering a negative interest rate, and we think this is a great opportunity to introduce crypto banking in this kind of environment. There is a new willingness to conduct significant business transactions remotely, so we can sell major projects via Zoom call - so we can effectively shorten our sales cycle for these types of customers, we're busier than ever," Moore added.

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Price: 1.19 CAD

Market: CSE
Market Cap: $83.7 m

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