CEO Andy Taylor
Douugh’s December half financial report reveals the fintech is technically insolvent, with total assets of A$822,351 and total liabilities of $1.8 million at December 31, leaving it with net liabilities of close to $1 million.
Revenue for the half was $177,911 and the loss was $1.6 million.
The company reported net cash flow from operating activities of $327,423 but the calculation of its cash flow included the addition of a $1.6 million government grant.
If the conventional definition of cash from operating activities is applied, which is sources and uses of cash from business activities, net cash used in operating activities during the half was $1.3 million.
At December 31, the company had cash and cash equivalents of $292,771.
Douugh’s business is developing money management tools for consumers. It offers these tools direct to consumers and is trying to establish a B2B side to its business as well.
Its money management tools include micro-investing and Stockback, a rewards program. It also offers a short-term loan, Spot.
It launched in the United States but started winding down that business last year.
The company is continuing to roll out new products in the hope that it can turn things around. Last month it launched Stakk, a B2B division that will offer white label versions of its products.
Also last month, it launched a merchant payment gateway, Douugh Pay. Its media statement said: “Douugh Pay gives merchants the ability to offer Douugh’s proprietary Stockbank rewards system and accept payments at checkout, and it also allows customers to connect their bank debit card and ‘Pay Now’ or ‘Pay Later’ to have Douugh convert their purchases into four weekly instalments.”
Douugh was launched in 2017 and listed on the ASX in 2020 via a reverse takeover by telco ZipTel.
After all that time, its revenues are negligible and it has accumulated losses of more than $36 million.
The company’s founder and chief executive Andy Taylor remains positive about its prospects. He said in a statement: “Having invested significantly into R&D over the last five years, we are now starting to reap the financial benefits of this strategy and we expect this to continue as we expand our sales pipeline and forge new strategic partnerships.”
As to the company’s ability to continue as a going concern, the financial statement said it has a $20 million equity facility agreement on call “subject to placement capacity rules”. It also said it is lodging an R&D claim this financial year.