Future Mobility Systems (FMS) – formerly Sealegs – has been placed in a trading halt by the alternative exchange, Unlisted, for not furnishing audited annual accounts for the March year, as required under its rules.
However FMS did supply unaudited annual accounts to Unlisted, which showed its net loss widened to $12 million in the March year from $8m in the previous year.
Revenue dropped to $25m from $42m over the previous corresponding period.
The company has been embroiled in long-running intellectual property litigation, and its accounts show its legal fees ballooned out to $16.4m in the March year from $0.8m a year earlier.
As of March 31, its shareholders equity came to $171,000. The company had cash and cash equivalents of $0.8m.
“In terms of shareholder loans, the ability of the group to settle these debt obligations will either be dependent on the continuing support of major shareholders through the issuance of further debt funding or the renegotiation of the repayment,” the annual report said.
“The dependency on a future debt or capital raising or renegotiation of debt repayment terms creates a material uncertainty with respect to meeting the Group’s cash requirements,” it said.
“Notwithstanding these dependencies the directors will continue to support the group as a going concern,” the report said.
Unlisted’s website says investors trading in securities quoted on the platform do so at their own risk and do not have the protections provided by the Financial Markets Conduct Act 2013 in relation to insider trading, market manipulation, continuous disclosure, substantial holding disclosure, relevant interest disclosures, and the monitoring of market obligations by the Financial Markets Authority.
FMS, which makes and sells amphibious boats and systems in New Zealand and overseas, delisted from the main exchange, the NZX, in 2019.
The company arose from the corporate restructure of Sealegs early 2017.
FMS’s last trade on the Unlisted platform was half a cent.
In a statement on its website, Unlisted said: “FMS has been placed into trading halt until it provides the market with its audited financial statements for the period ended March 31 2021 as required by the USX Market Rules.”
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