No wonder karl was trying to hold onto his position as much as possible. He was trying to cover these things. Looks like a lot of fraud took place and funds where redirected.
Unusual transactions with customers and suppliers We have identified transactions with certain customers and suppliers that appear unusual. In some cases, the Company raised an invoice to the customer, the customer paid the invoice and then the Company repaid the same amount back to the customer. Whilst there is a nil net position with respect to their dealings with the Group, it is an unusual practice. In some cases, payments and receipts with these customers occur in and out on the same day and in some instances the customer/supplier was incorporated shortly before starting to transact with the Group. The customers in question include the following entities: Adaptive Media Technologies Pty Ltd Pummel Pty Ltd AI matrix Research Pty Ltd LCN Solutions Pty Ltd Engage Squared Pty Ltd CFour Research Pty Ltd FiveP Entities Australia Pty Ltd Go1 Pty Ltd Hide and Seek Pty Ltd Intelligent Membership Solutions Pty Ltd Map of Me Labs Pty Ltd OnePlace Labs Pty Ltd Search 365 Pty Ltd Social Scale AI Pty Ltd ADMINISTRATORS’ REPORT TO CREDITORS 29 July 2024 28We have written to the Former Director requesting that he provide further details/information on what services were provided/delivered by the above parties. As at the date of drafting this report, we have yet to receive a satisfactory response. In addition, we have also sought clarification from the Auditors as to what testing / enquiries were made by them in respect to the above transactions and requested that they provide copies of any documents provided by the Company that explain the transactions. Payments to Professional Advisors not engaged by the Company From our enquiries to date, it appears that the Company was making payments to certain professional advisors that had not been directly engaged by the Company and were not providing services to the Company. We have written to the Former Director and sought clarification as to what these services relate to. As at the date of this report, we have yet to receive a response but will continue our investigation into these payments as they could constitute unreasonable director related transactions. Investment in BrainPac Plus Laboratories Pty Ltd The Company agreed to acquire 19.87% of the share capital of this company for $1.8m of which $900k was paid in cash upfront. BrainPac was registered on 27 September 2021 and on the following day, the Company entered into a subscription agreement to acquire the shares. The value of the subscription would value the company at c$9m one day after its incorporation. Further, the total paid up share capital of BrainPac was $900,100. The business plan for BrainPac appears to copy a Monash University business called Brainpark and uses images from the Monash University website and lists the Brainpark leaders as the leaders of BrainPac. The legitimacy of this investment requires further investigation
LVT Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
