Just in case it was cryptic ...
Audited June 30, 2015 Balance sheet from Rights Prospectus has
Total Current Assets = $2,054,470
Total Current Liabilities = $2,484,626
That yield a "Current Ratio" of 0.827. A ratio value of below 1 is a problem
More restrictive is the "Acid Test" or "Quick Ratio" which only include cash and marketable securities and receivables in Current Assets (excludes inventory and other)
Total C&CE&Receivables = $2,003,932 (assuming all receivables are collectable). Ratio is 0.806
Keep in mind its a "snapshot" in time - so the current current ratio will be different and you need to see cash balance at Sep 30 but it does serve to highlight why the rights issue was necessary (even without a drill plan) IMO. The material emphasis note by Grant Thornton in AR also points out the concern.
Just in case it was cryptic ... Audited June 30, 2015 Balance...
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