The lights are still out for smart LIFX light globe Company Buddy Technologies who is still losing money and has more liabilities than they have assets.
Suspended by the ASX earlier this year for questionable reporting the business that reported a $6.6M loss this week, has also struggled to raise capital to fund the business going forward.
After launching a $10M entitlement offer last month the business has only managed to raise $220,455 dollars which is being used to reduce the Company’s debt.
Buddy’s current assets came in at $20.5m while current liabilities were $31.8m.
Also impacting the business whose products are extensively ranged at JB Hi Fi and in the past Bunnings also appear to be impacted by the global shortage of components.
In a statement to the ASX today the business said that they expected to receive 1.0 million pieces of a critical component previously subjected to shortages, by the end of August 2021.
In the past manufacturers in China have sold components scheduled for Buddy Technologies products because of their prior cashflow problems.
The only problem is that other components needed to finalise a product are not going to be available till later this month, September 2021.
The Company said its manufacturers are in receipt of approximately 655,000 pieces of the component, with a further 288,000 pieces expected to be delivered in early September, a further 170,000 pieces are expected to be delivered in mid-September and approximately 180,000 pieces are subject to delivery scheduling but are expected to be delivered by mid-October (for a total of nearly 1.3 million pieces).
The Company has not said how they will ship their finished products or whether the new products will be subject to price rises.
Problems in the Company were exposed after Buddy shares were suspended in April, due to serious accounting errors which had caused it to forecast a “record-breaking March”, investigations by the ASX found this not to be the case.
The company’s shares were reinstated to trade in July, but at level well-below their 10c, 12-month high, and on Wednesday the stock was trading at 1.8c which is significantly below its recent entitlement offer price of 2.5c per share.
In the previous year the business made a loss of $45.3m.
Preliminary revenue numbers reveal that sales fell 7 per cent to $28.77m. Management attributed the decrease to being “primarily the result of reduced service revenue in their commercial business, which was significantly impacted by the Covid-19 pandemic’’.
“Further, growth in the consumer business (LIFX) was also impacted by the Covid-19 pandemic, both due to closure of retail locations caused by lockdowns, and impact on the supply chain.’’
Buddy’s current assets came in at $20.5m while current liabilities were $31.8m.
