Page 20 of the Annual Report 2015 says "These conditions indicate a material uncertainty that may cast significant doubt about the Consolidated Entity’s ability to continue as a going concern.
The Directors believe that it is appropriate to prepare the financial report on a going concern basis after consideration of the following matters:
• The consolidated entity has received applications for $150,000 (up to 29 September 2015) through a rights issue subsequent to year end. This offer is still open at the date of this report.
• The consolidated entity receives an R&D rebate for approximately $125,000 in November 2015.
• There is capacity for the Consolidated Entity to reduce its operating cost structure and related cash outflows. In this regard, the Non‐Executive Directors are deferring all of their fees and the total amount of
$195,278 outstanding as at 30 June 2015 is being accrued as a loan subordinated to all other debts of the company, to be repaid in cash or, possibly, shares at an appropriate time not less than 12 months from the date of this report.
Should the Consolidated Entity be unable to achieve the matters set out above, there is material uncertainty whether the Consolidated Entity will be able to continue as a going concern and therefore, whether they will be able to realise their assets and extinguish their liabilities in the normal course of business. The financial report does not include adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification or liabilities that might be necessary should the Consolidated Entity not
continue as a going concern."
Unless there is outstanding news regarding the prospect of a JV or equity partner within the next week or so SPX is in a bit of bother financially.
The end may be very near.
