RE: What does Note 34(b) say?31 Oct 2024 10:25
This is Note 34 (b)
(b) Going concern
The financial report has been prepared on the going concern basis which assumes the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the normal course of business.
The Group has made a loss for the year of $31,276,000 (FY2023: loss of $15,548,000) and incurred net cash
outflows in operating and investing activities of $11,944,000 (FY2023: $50,667,000). The Group has net current
assets at 30 June 2024 of $29,088,000 (FY2023: $60,908,000). The balance of cash and cash equivalents at 30
June 2024 is $23,361,000 (FY2023: $36,139,000).
The ability of the Group to continue its activities as a going concern is dependent on a range of factors and initiatives
including:
(i) against the backdrop of global uncertainty regarding vehicle production, achieving projected increases
in OEM royalty revenue as car production with Seeing Machines DMS technology continues to increase;
(ii) achieving Aftermarket hardware revenues and gross margins related to the transition to third generation
Guardian technology;
(iii) achieving efficiencies in Aftermarket operations as the volume of customers and monitoring activity
increases following the implementation of standardised and automated processes during FY2024;
(iv) ongoing management of working capital levels and strategies to advance the timing of cash receipts;
(v) completing customer and new product development projects on schedule; and
(vi) managing research and development and operating expenses to within budgeted levels.
Should the Group be unsuccessful in achieving these aims,
(vii) securing access to additional funding, including receivables funding, from new or existing sources to
support the Group’s activities as it transitions to profitability and sustained positive operating and
investment cash flow operations.
As a result of these matters, there is a material uncertainty related to events or conditions that may cast significant
doubt on the Group’s ability to continue as a going concern and, therefore, that the Group may be unable to realise
its assets and discharge its liability in the normal course of business. The consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
The Group has a strong track record in recent years of sourcing non-dilutive and/or strategic funding and the
Directors are of the view that, should such a step be necessary, such funding could be achieved.
The Directors are of the view that the Group will be successful in the above matters and accordingly have prepared
the financial statements on a going concern basis.
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