SINGAPORE - As part of No Signboard’s annual report release on Jan 19, the company’s auditor, PKF-CAP, flagged uncertainty over the company’s ability to continue as a going concern.
The auditor noted that the company posted a net loss of $4.7 million for the financial year ended Sept 30, 2022, with net cash outflow from operating activities of $982,000.
In addition, it noted that the company’s current liabilities exceeded current assets by $6.6 million, while total liabilities exceeded total assets by $7.1 million as at Sept 30, 2022.
The net current liabilities included bank borrowings of $2.1 million that were reclassified from non-current to current as the company defaulted on monthly repayments due to insufficient funds.
“These factors indicate the existence of a material uncertainty that may cast significant doubt on the group’s and company’s ability to continue as going concerns,” the auditor said.
However, the company’s board remains confident that the memorandum of understanding (MOU) signed between the company and Gazelle Ventures for up to $5 million in investments as well as its restructuring exercise will help it generate cashflows from operations, and meet the company’s and group’s working capital requirements, and to operate as going concerns.
The company had earlier entered into a MOU with Gazelle Ventures for $5 million, of which $500,000 would be secured through subscription of new ordinary shares representing 75 per cent of the enlarged issued and paid-up share capital of the company. The remaining $4.5 million would be provided through a convertible instrument.
https://www.straitstimes.com/busine...s-going-concern-uncertainty-asset-impairments
