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AYO Technology Solutions Updates Financial Statements, Reflecting Changes in VAT and Operating Losses

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Cape Town, AYO Technology Solutions Limited, a key player in the South African technology sector, has issued an update to its audited consolidated financial statements for the year ended August 31, 2023. This update follows a change statement released on January 31, 2024, which outlined modifications between the reviewed condensed consolidated financial statements published on December 6, 2023, and the audited financial statements (AFS) made available on January 31, 2024.

The company has now included notes impacted by the changes, with no further adjustments to the numbers previously reported in the change statement and the AFS. Notably, the adjustments include a write-back of the VAT receivable asset following a final assessment by the company's auditors, which had been previously expensed. This adjustment resulted in a decrease in operating expenses and an equivalent increase in VAT receivable, totaling R26.148 million, leading to a decrease in retained loss by the same amount.

Further, changes in the allocation of amounts in other operating losses, amounting to R24.221 million, are detailed, impacting the overall net loss after tax. This adjustment contributed to a decrease in loss after tax by R1.927 million, from R640.741 million to R638.814 million, affecting both the loss per share (LPS) and headline loss per share (HLPS).

The company highlighted specific notes that have been amended due to these adjustments, including notes on trade and other receivables, operating expenses, other operating losses, and earnings per share. The detailed changes in these areas reflect the financial recalibrations undertaken to provide a clearer view of AYO's financial health for the year ended August 31, 2023.

AYO Technology Solutions has taken steps to ensure transparency and accuracy in its financial reporting, offering a comprehensive view of its financial position and performance over the reported period. With the provision of this updated information, shareholders and investors are given a revised insight into the company's financial dynamics, particularly concerning VAT adjustments and the reallocation of operating losses.

Jointly sponsored by Vunani Sponsors and Merchantec Capital, this announcement marks a significant update to AYO Technology Solutions' financial narrative for the fiscal year, reinforcing the company's commitment to rigorous financial scrutiny and stakeholder communication.