ICOA Announces Decision To Write-Off Its Goodwill As Part Of Its Ongoing CE-Removal Discussions With OTCMarkets
Las Vegas, Nevada, July 21, 2023: ICOA Inc. (OTC: ICOA) ($ICOA; “the Company”), a publicly-traded Nevada company that acquires blockchain-enabled projects and companies, has today announced its board’s decision to write-off its Goodwill in its entirety.
This decision is a consequence of ICOA’s ongoing discussions with OTCMarkets in respect to the removal of the CE (Caveat Emptor) that was designated to the ICOA ticker on May 13, 2022.
During such discussions, OTCMarkets requested that the Company review and re-evaluate the Goodwill for impairment for FY22. In the interest of time, and to allow OTCMarkets to proceed with the CE removal process, the Company’s number one priority, ICOA’s Board of Directors decided to write-off the Goodwill entirely. Based on US GAAP Standards, It is required that the impairment be reflected as of 12/31/2022 and onwards, and ICOA has therefore restated its FY22 Annual Report and Q123 Quarterly Report.
Writing-off the Goodwill ($488,957,569) has created an extraordinary net loss of ($490,766,698) for FY 2022, up from ($1,804,513) as previously reported before the write-off.
The Goodwill write-off is due to deteriorating market parameters within the blockchain sector in which the company operates, and to the depletion in the ICOA share price caused mainly by the CE placement. These two factors mean that the Board of Directors believe the Company does not have a Fair Market Value. Writing-off the goodwill entirely, therefore, has been decided as the most appropriate and time efficient action to take and in the best interest of all its stockholders.
Comments Hadria Wong, CEO ICOA:
“Writing off the Goodwill of ICOA is a decision we have made as part of our conversations with OTC Markets, and is undoubtedly in the best interests of the Company and our stockholders. After this balance sheet clean-up, we are well-prepared for the road ahead and are working on a strategy update in an effort to improve future profitability. We are confident that the market will set the proper Fair Market Value once the CE is removed.
“We continue to work diligently to help OTCMarkets in their review of the company and the CE removal process. We are confident that OTCMarkets will conclude their review positively and look forward to going back to being able to focus entirely on growing the business once the CE is removed.”
