Hey Stratguy,I don't want to get bogged down on this topic and I...

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spikeup

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20/09/22

10:45

Post #: 63788055
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Originally posted by Stretguy: ↑

Thankyou Kugor11.
My reference to the Going Concern issue was as raised by the Auditors in their 2021 report.
The Auditors raised the issue of going concern as one of two Key Audit Matters (KAMS).
From the Auditor's report:

At page 57 the Auditor's Report noted:
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.At Page 58 the Auditor's Report noted:
Going Concern
Refer to Note 1 in the financial statements
Historically, the consolidated entity has been lossmaking, has significant cash outflows and is dependent on continued support from investors
through ongoing capital raises to fund research and development activities during its current research and development phase. We note key financial indicators such as loss-making, operating cash outflows of $5.1m (net of R&D refund) for 12 months.
The consolidated entity had cash reserves of approximately $13.4m as at 31 December 2021. We note that the consolidated entity’s forecasted cash
burn rate for the coming financial year is approximately $18.3m. We identified going concern as a key audit matter as it relies on existing cash reserves to cover necessary expenditure and future activities.The auditors signed off on the 2021 Financial Statements so were obviously assured from their procedures that IBX was a Going Concern.
I assume that the Going Concern issue will be re-visited in the next (2022) Auditor's Report.
Prudent investors in IBX (existing or potential) would consider the Auditor's Report as part of their risk assessment procedures.
My apologies for my wordy response.

Regards
Stretguy.

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Hey Stratguy,
I don't want to get bogged down on this topic and I know this is a simplistic assumption...but I do see
the wording "Going Concern" on many of the auditors' reports of other companies too, therefore I can
only assume that it remains a standard inclusion of such reports if in fact the Co in question is/remains
viable.

Perhaps a very non-conservative bias on my part, but, I cannot read any more into the "Going Concern"
phrase as I believe it's just that, a standard characteristic mode of expression found in many such reports.

IBX Price at posting: 3.5¢ Sentiment: Buy Disclosure: Held
4 Upvote

1 Great analysis

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