3rd May 20193 May 2019 09:09
3rd anniversary of "founder loan" - and for balance
"Included in non-current liabilities as at 30 September 2016 was a balance of £469,140, being the present value of the Founder Loan (the non-discounted cash value is £606,756). Due to the passage of time, the present value of the loan increased to £517,842 as at 30 September 2017 and £544,296 as at 31 March 2018. The loan is interest free and the balance of the loan cannot be recalled by David Breith until the 3 May 2019 and is then only repayable in the event the Board consider the Company to be in a positon to service the debt, therefore, the balance outstanding has been classified a non-current liability. For comparative purposes it should be noted that in the year ended September 2015, prior to the terms of the Founder Loan being formalised, this loan was noted as a current liability for £507,014."
The terms of the "Loan" repayment will surely require negotiation, based on performance to date.
Add to that:
current cash circa £1m - if the 2nd half of this FY is a repeat performance of the first half, how long will the cash last?
Is there an overdraft facility in place for the provision of working capital for when the current cash balance has been depleted? If not, then where is the provision of working capital coming from?