The Half Year Financials were never going to be pretty. The Company is essentially in what they call Balance Sheet Insolvency. Whilst this is different to trading Insolvent (where you cannot TIMEOUSLY fulfil your obligations in terms of Liabilities),the underlying comparisons over the last 6 months do not point to an improving situation.
Negative NAV ...extends from AUD 1.581m to AUD 3.207m
Receivables... down from AUD 2.723m to AUD 0.606m (compared to Trade&Payables of AUD2.518m)
Deferred Revenue ...down from AUD 2.712m to AUD 2.270m. Note : A portion of this may be for Advanced Payments and therefore not Accessable.
And finally, the only 'small' positive
Trade & Other Payables .... down (less than previous) from AUD 2.615m to AUD 2.518m
Lots to digest in the report, but the above IMO points to the urgent need for a capital injection. CR, loan or if Directors stump up. Debtor Factoring... not much to work with.
The Company talk of a cash flow positive H2. Had they used the ' Changes since 31 Dec. comment section' to provide some numbers on Cash Receipts during Jan & Feb or booked Revenue since 1 Jan, may have supported their stated confidence on a rebound. But not to be, Just the confirmation of the AUD 1m placement to an original Founder. Helps but not enough to fix the above.
Next 4 months crucial IMO. Rokewa
3DP Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
