To raise $200K for Spark NZ deal, page-477

The big item of interest to me is their current liabilities and Quick Ratio. At the end of December I couldn't understand how they were operating as they must have been running on fumes. I figured that the raise must have gone directly to retiring debt. That and the $274k taken against their R&D loan.

Last December they had $680k current assets ($418k in cash) and $944k in current liabilities. And actual negative net assets (-$163k), something you just should never see, that brings up all sorts of trading while insolvent questions from auditors - something that created over half a page of 'Going Concern' detail in the last half yearly.

This year we know they only had $180k in cash at the end of December. An even worse position than the year before. If it turns out that the Spark deal isn't profit making so far then there is real risk that current liabilities could increase and return and even worse negative assets result than the year before.

There was a CR after the period end for $200k, you'd want to see positive assets to feel content the company was on the mend and at the bare minimum no more than -$200k in net assets to think Norwood can survive.