The company formerly known as Xinja Bank continues to lose money in its new incarnation as a provider of investment platform services.
Accounts filed with the Australian Securities and Investments Commission show the company made a net loss of A$648,884 in the 12 months to the end of June 2022.
The company, which is now officially known by its company number – ACN 618 937 054 – did not generate a dollar of revenue from its core business activities.
All of its $1.5 million of revenue was attributable to tax refunds.
The company had almost $1 million of cash on its balance sheet on 30 June and net assets of $2.1 million.
However, there is some doubt surrounding the status of $1.6 million worth of intangible assets reported by the board.
The 2022 accounts were qualified by the company’s auditor Wali Aziz of Walker Wayland who said he was unable to verify the valuation of the intangibles, which are comprised of capitalised software development costs.
“The group has recognised capitalised development costs as disclosed in Note 9 Intangible Assets, which have a carrying value of $1,682,808 as at 30 June 2022,” Aziz wrote in his audit statement.
“We have been unable to obtain sufficient appropriate audit evidence to support the revenue forecasts used in the value in use model as prepared by management and therefore, we have been unable to confirm the carrying value of the capitalised development costs.
“The Group has not recognised an impairment write-down for the year ended 30 June 2022.”
There are inconsistencies throughout the annual accounts, which may require the attention of board chair Lindley Edwards and her directors.
The accounts may need to be recalled to correct errors in the dating of key disclosures including the Profit & Loss Statement and the Balance Sheet.These critical documents were both presented as “for the year ended 30 June 2021”.
The Cash Flow Statement was presented as “for the year ended 30 June 2022”
However, the directors did not forget to warn shareholders about a material uncertainty surrounding the company’s ability to continue as a going concern.
The company has made a two-year cash flow projection, which if realised would see the company improve its financial position if certain conditions are met.
These conditions include the company receiving a tax refund on research and development costs incurred in building its new software platforms and revenue generation through a share trading service.
The company is also hoping to integrate its operations with an unnamed “potential client” that could grow its customer base.
There was no disclosure by the board on whether a new chief executive had been appointed to lead the management team.
Former CEO Anna Burton vacated the position in March.