In making this assessment, the Board has considered the recently completed capital raising providing proceeds of $1,021,065as at the date of this report (refer to note 14), ongoing cost management initiatives, expected improved recoveries from loanbook receivables through more rigorous credit assessment processes, and forecast growth in the loan book to the facility limitof $7.5m.
At 30 Dec they had $1.6m in unused finance facilities.
However loans receivable is only $2.4m due to substantial write-offs over the last few years.
$2.4m + $1.6m = $4m
That's a $3.5m funding shortfall to meet the forecast of a $7.5m loan book. They are basing their going concern assessment on a very interesting assumption here that somehow a magic fairy will leave $3.5m on their doorstep so the facility limit can equal the loan book.
