RE: Website25 Sep 2023 13:14
Caveat Emptor
As set out in the Company's annual report and the results for the year ended 31 December 2022, the Company is taking careful steps towards generating positive cash flow from its operations during FY2023, which includes a combination of the modified business model to focus on licensing and a reduction in costs. The delays in existing customer contracts, combined with the extended sales cycles being experienced by the Company place significant uncertainty over the Company's ability to achieve the revenues previously targeted for FY2023. Whilst revenue is therefore expected to be lower than previously anticipated, the focus on the higher margin licensing contracts is expected to contribute to an improved gross margin once licensing sales commence and combined with the cost savings, an improved EBITDA.
Based on the above-mentioned description, and in the light of enquiries made by the Directors as to the current liquidity position of the Company, as well as bearing in mind the ability and success of the Company to raise funds previously, the Directors have a reasonable expectation that the Company will have access to adequate resources to continue in operational existence for the foreseeable future and therefore have adopted the going concern basis of preparation in the financial statements. The directors recognize that their expectations are based on the success of the new business model as well as the Company succeeding to raise funds, however should events occur that could materially impact the forecasts and cashflows of the Company, a material uncertainty remains that may cast a significant doubt on the Company's ability to continue as a going concern and fulfil its obligations and liabilities in the normal course of business in the future.
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