Going Concern

Devils in the detail:

Going Concern
These financial statements have been prepared on the going concern basis which contemplates the continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.
For the year ended 30 June 2018, the Company incurred an operating loss of $13,919,468, which includes $12,105,207 in respect of share-based payments to suppliers, directors and employees under the Company’s incentive plans. Notwithstanding the fact that the Company incurred an operating loss, has a working capital deficit of $460,951, and a net cash outflow from operating activities amounting to $1,286,211, the Directors are of the opinion that the Company is a going concern for the following reasons:
• The Company has available for working capital $1.5m in undrawn committed borrowing facilities at 30 June 2018. Subsequent to year end, the Company secured an additional $800,000 convertible note facility.
• A significant Research & Development tax incentive payment is expected to be received for the 2018 financial year (2017: $521,731).
• Under the joint venture with Gold Quay Capital Pte Ltd, the Company is expecting a further $500k in licence fees on the completion of Gold Quay’s capital raising which is expected to occur in Q4 2018.
• The directors are assessing a number of funding initiatives available to the company to meet further working capital requirements as required.
The Company’s ability to continue as a going concern and meet future working capital requirements is dependent on the above points being realised. Should the Company not be successful in generating the required cash flows, there is a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern.