Question 9: Given the Auditor has raised a material uncertainty as to whether BUD can
continue as a going concern and BUD has cash and cash equivalents of $1,334,183 and
total current liabilities of $24,786,724, on what basis do the Directors consider that BUD
is a going concern?
14. The Directors consider that BUD is a going concern, based on:
a) BUD's improved financial position (compared to the prior period ending 31 December 2020)
– noting that A$16,098,518 of BUD's borrowings, whilst classified as current liabilities in the
Half Year Report, remain due and payable in December 2023 and May 2024;
Comment: The actual reality here is PFG are within their rights to call these loans in at any time for as long as BUD remains in default.
b) the Company's improved trading and financial position in recent months (refer to paragraph
4(c) for further details);
Comment: This is pure shithousery from DM. Here is the para 4(c) BUD being EBITDA positive for the Q2 FY22 period and cash flow positive in January 2022 and having cash at bank of approximately A$1.3 million as at 31 January 2022;
Now, that positive EBITDA figure was a whopping $91k. In just two months since, BUD has generated EBITDA losses in excess of $1m. That cash is already effectively spent.
c) the continued implementation of the Company's restructuring plan (refer to the ASX
announcements on 16 July 2021 and 20 July 2021 and BUD's response to ASX's queries on
10 November 2021 for further details), which is delivering margins ahead of budget,
significantly improving EBITDA, whilst maintaining a substantially reduced cost structure
(noting that the restructure plan also includes the introduction of new products, new services
and new customer channels, which are scheduled for H2 FY22); and
Comment: Please tell everyone again DM, how great a CEO you are. The actual numbers reported do not support your rhetoric.
d) the Company's historic track record of being able to raise funds to support its business plan
as and when required.
Comment: Go on, try and raise capital again. It was such a success last time.
