"
The report looks great"
Let's examine some of the details and see if we can reconcile "great" with the facts.
Here's one of the opening sentences in the financial review section.
"
Financial review: Progressing business and productivity initiatives with a focus on profitability."
Profitability ... where is that to be found in this report? Or is it just a focus on profitability without actual profitability?
Followed by;
"
Sales revenue for the year was $0.56m, a 62% decrease on the prior year (FY21 $1.48m). (my bold)
Can someone please highlight the
great in that sentence?
Followed by;
"
In addition, Hemp Hulling Co (QLD) Pty Ltd (HHC) went into voluntary administration in March 2022 thereby causing a loss of control of that entity and which required the derecognition of all balances relating to HHC, including goodwill, at that time. Accordingly, in the profit and loss account the goodwill balance relating to HHC of $1.6M has been included in the loss upon disposal of HHC derecognition transaction of $1.88M and not in the goodwill impairment charge."
Can someone please highlight the great in that paragraph?
"
The Group also reported an impairment in investment in Joint Venture of $0.27m which is a result of the dissolution of the
Joint Venture with Pharmocann"
Can someone please highlight the great in that sentence?
"
The Costs of Goods Sold is also significantly higher due to the accounting treatment associated with slow-moving and
obsolete inventory resulting in the write-off of $0.11m further impacting the Group’s net losses for the year and decreasing
our gross profit."
Can someone please highlight the great in that sentence?
"
Administrative and corporate expenses were $2.2m for the year, a decrease of 12% from the prior year."
Well, that's a good thing - any reduction in administrative and corporate expenses is positive.
"
Directors’ fees of $0.4m was a decrease of 42% on prior year."
That's a good thing as well. However, I think the company could and should cut much harder. I think $312,000.00 seems far too much when there is no discernible return to the shareholders.
Accumulated losses now exceed an eye-watering $50,000,000 (i.e., 50 million dollars). I am not clear on why anyone would be paid $312,000 while the accumulated losses for shareholders continue to rise year, after year, after year.
