Is it time for Care and Maintenance?, page-29

NRE funding or bust.

Financial position and going concern

The Group reported an excess of current liabilities over current assets of $4,109,975 at 30 June 2018 and reported a loss after tax for the year then ended of $18,497,161. Included in current liabilities are loans, trade payables and accruals amounting to $37,282,110.Management has prepared a cash flow forecast which indicates that the Group will need to raise additional funds. Part of the funding required was received subsequent to year end, from the following sources:• On 31 July 2018, $3 million for 38,461,538 shares at 7.8 cents per share was received via a private placement to sophisticated investors in lieu of the Group issuing the convertible security to Sinosteel that was approved by shareholders at the general meeting held on 8 June 2018. The funds raised from this placement were used to repay monies owed to Sinosteel meaning that the convertible security that was approved for issue to Sinosteel will not be issued;• On 30 August 2018 a further $3 million from Innovation Structured Finance Co.,LLC was received under its R & D Financing Facility as announced on 29 August 2017; and• The Group also made a further drawdown of $2 million under the Funding Agreement entered into with an entity controlled by The Lind Partners (Lind), as announced on 14 June 2017. This drawdown will be represented by the issue of 2 convertible securities each with a face value of $1.25 million and the face value of the convertible securities are repayable by the Group in accordance with the Funding Agreement.

addition, the claim for the research and development rebate for the year ending 2018 has been lodged subsequent to year end. The total value of claim is $21,562,688. This will be used to repay the outstanding amounts under the Innovation Structured Finance Co; LLC R & D Loan facility upon receipt with surplus funds available for use elsewhere. A further $1.9 million is due to be received under the Federal Governments Building Better Regions Fund (BBRF) subsequent to year end contributing towards the cost of the T2W project, as part of a consortium led by the Wunan Foundation.The Directors consider the going concern basis of preparation to be appropriate based on forecast cash flows and confidence in raising additional funds. In the event that the Group is not successful in raising sufficient funds, there exists material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

https://yourir.info/resources/a176952e509c6a29/announcements/ntu.asx/6A907314/NTU_Annual_Report_to_shareholders.pdf