Audit

Report

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Deloitte LLP
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Auditors’ report

To the management of PAXGlobalMedia Inc.


Subject: Auditor’s Report on distribution of three traveling sites, two digital magazines and a distribution service


Scope

We have performed an audit of the attached statement of distribution of on-line publications of paxglobalmedia media inc. extracted from the database that contains the distribution lists of the on-line subscribers for the following publications as at December 15, 2017:

  • Three sites: PAXnews.com, PAXnewsWest.com and PAXnouvelles.com;
  • Two digital magazines: PAX magazine in English and PAX magazine in French;
  • The distribution services: QuickPresse.com in English and French versions;
  • Printed magazines in English and French version: PAX magazine.

Management’s responsibilities

The management of PAXGlobalMedia is responsible for preparation of the statement of distribution of online publications and for the related data and database.

Our independence and quality control

We have complied with the relevant rules of professional conduct / code of ethics applicable to the practice of public accounting and related to assurance engagements, issued by various professional accounting bodies, which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

The firm applies Canadian Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditors’ responsibilities

Our responsibility is to express an opinion on the statement of distribution of on-line publications of PAXGlobalMedia based on our audit.

We conducted our audit in accordance with Canadian Standard on Assurance Engagements 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information, set out in the CPA Canada Handbook – Assurance. Those standards require that we plan and perform an audit to obtain reasonable assurance as to the basis of our opinion, specifically whether the statement of distribution of on-line publications is free of material misstatement. Our audit included examining, on a test basis, evidence supporting the amounts and disclosures in the attached statement of distribution of on-line publications.

Opinion

In our opinion, the statement of distribution of on-line publications of PAXGlobalMedia presents fairly, in all material respects, a complete and accurate summary of the on-line subscribers to the three sites PAXnews.com, PAXnewsWest.com and PAXnouvelles.com, to the two digital magazines PAX magazine in English and PAX magazine in French, the distribution service QuickPresse.com in English and in French and to the two printed magazine, PAX magazine, in English and in French of PAXGlobalMedia as at December 15, 2017.

Restricted use

This report is intended solely for the information and use of PAXGlobalMedia and user entities of paxglobalmedia media’s list of distribution. This report is not intended to be and should not be used by anyone other than these specified parties.

{{ 'Deloite audition signature'|_ }}
Chartered Professional Accountants
Montreal, Quebec

January 15, 2018

1CPA auditor, CA, Chartered accountant auditor permit no A106209

PAXGlobalMedia Inc.

Statement of distribution of online and printed publications

As at December 15, 2017

On-line publications Number of subscribers
Distribution services
QuickPresse.com (French) 8,682
QuickPresse.com (English) 17,497
Total 26,179
e-Magazines
PAXnouvelles.com 10,537
PAXnews.com 21,825
PAXNewsWest.com 6,598
Total 38,960
Digital Magazine
PAXmagazine (French) 11,060
PAXmagazine (English) 22,996
Total 34,056
Total distribution for online publication 99,195
Total unique e-mail addresses 31,441

Printed publications Printed Promotional copies Distribution
Printed magazines
PAXmagazine (French) 2,440 401 2,039
PAXmagazine (English) 7,560 455 7,105
Total distribution for printed publication 10 000 856 9,144

PAXGlobalMedia Inc.

Notes to statement of distribution of on-line and printed publications

1. Nature of activities

PAXGlobalMedia inc. distributes e-news magazine publications on-line to registered subscribers in the travel industry and distributes supplier promotions through the Company’s QuickPresse.com (English and French) distribution service. PAXGlobalMedia solicits new subscribers through publicity campaigns and travel industry trade shows.

The on-line publications include three sites: PAXnews.com, PAXnewsWest.com and PAXnouvelles.com; two digital magazines: PAX magazine in English and PAX magazine in French; and the distribution service QuickPresse.com in English and in French.

The printed publications include two magazines: PAX magazine in English and in French.

2. Registration and deregistration of subscribers

PAXGlobalMedia has implemented the following procedures for subscribers to register and deregister to its e-news and printed magazine publications.

a) Registration of subscribers – An individual from the travel industry can subscribe to PAXnews.com, PAXnewsWest.com and PAXnouvelles.com by completing an on-line subscription form and a security challenge (captcha). Subscription requests are validated and confirmed electronically within twentyfour hours to the requesting on-line address. An individual from the travel industry can subscribe to QuickPresse.com by following links at PAXnews.com, PAXnewsWest.com and PAXnouvelles.com and in ads included in e-mail communications of certain suppliers, and then completing the on-line subscription form and security challenge.

b) Deregistration of subscribers – An active subscriber can deregister their subscription by clicking on the unsubscribe link at the bottom page of each product received by e-mail and by entering the email address they would like to deregister. Upon submission of the request, a message confirming the deregistration is displayed. The subscription for that e-mail address will be automatically deregistered.

c) Security measures – A series of security measures are in place to ensure the integrity of the subscription process.

i) Each subscription requires the completion of numerous mandatory fields and a security challenge.

ii) Each subscription request is reviewed and approved by the subscription service of the Company.

iii) Subscribers have access to their subscription information to ensure it is accurate.

iv) Duplicate requests for the same address are automatically rejected.