Ourgame International Holdings addresses past financial irregularities and implements controls

Ourgame International Holdings Limited has completed investigations and internal control reviews into five key matters, including expense payment transactions, prepayment offsets, cash advances to a former chief executive, debt collection, and shareholder complaints. Baker Tilly's investigation identified control deficiencies in expense management, vendor selection, and cash advance processes. HLB's internal control review confirmed these deficiencies and recommended improvements, which management has adopted.

Adjustments will be made to consolidated financial statements for prior years (FY2021-FY2023) to correct expense recognition errors. The former chief executive, who resigned, repaid RMB200,000 for unsubstantiated legal fees and RMB2.64 million in outstanding cash advances. An RMB8 million promotion prepayment was offset against amounts due to the former chief executive. The company also engaged debt collectors for three loans, including a $430,000 payment for Loan B and ongoing arbitration for Loan C.

The Special Investigation Committee concluded the investigation was adequate and found no reasonable regulatory concern regarding current management's integrity. New policies and procedures have been implemented, including documented invoice submission, standardized vendor selection, and improved cash advance monitoring.