going bust? has trevillion robbed you too?

It is now January 2012. Looks like they may have run out of cash and may wind up the company. This is what Trevillion tried to do to Meldex in the UK when he was CEO there. $200,000 paid to himself to do this to this company.

This what investors here should be worried about. From page 19-20 from the Annual Report. I have underlined the relevant passage.

http://hotcopper.com.au/asx_announcements.asp?id=359034


(b) Going Concern
For the year ended 30 June 2011, the Group incurred a loss after income tax of $2,402,326. At 30 June
2011, the Group had an excess of current liabilities over current assets of $1,015,240 and deficiency of
net assets of $984,772.
On 30 August 2011, the company announced that it was in negotiations on an acquisition opportunity in
the resources sector. As a consequence, and for working capital purposes generally, the company
raised $615,000 by way of a convertible note issue. Further details are available at Note 29.

Current forecasts prepared by management indicate that the consolidated entity has, at the date the
directors signed the Directors’ Declaration on page 48, sufficient cash to pay its debts as and when they
fall due. However, these forecasts anticipate that the Group will have spent all available cash by January 2012.
As indicated at Note 29, Fluorotechnics Limited is looking at new investment opportunities. Although the
directors are confident that they will find a new investment opportunity that will generate future cash
inflow through the receipt of additional debt or equity funds, other than the $615,600 raised by way of
convertible note issue, no additional debt or equity funding has been received prior to the date the
directors signed the Directors’ Declaration on page 48.
Accordingly, the Group currently does not have sufficient cash to allow the Group to continue as a going
concern for at least 12 months following the date the directors signed the Directors’ Declaration on page
48.
Under Australian Auditing Standards, financial statements are prepared on the going concern basis when
the entity is expected to:
(a) be able to pay its debts as and when they fall due; and
(b) continue in operation without any intention or necessity to liquidate or otherwise wind up its
operations.

(b) Going Concern (continued)
Given the above, it is possible that the consolidated entity may be required to liquidate or otherwise wind
up its operations prior to 30 June 2012. Accordingly, the financial report has been prepared on a
realisation basis rather than a going concern basis. The realisation basis assumes that the consolidated
entity is not expected to continue as a going concern. The carrying values of assets and liabilities in the
financial statements are based on current estimates of recoverable amounts.