Going concern
As discussed in Note 1(iii) to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency. Management’s evaluation of the events and conditions and managements’ plans to mitigate these matters are also described in Note 1(iii).
Basis of preparation and going concern
119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
iii)
Basis of preparation (continued)
Under the fifth amendment to the credit agreement, the minimum liquidity covenant was reduced to US$1million through to October 31, 2025, after which it reverts to US$3million. While management is confident in the Group’s ability to maintain compliance with this covenant, it is noted that the Group has planned significant R&D expenditure related to its CGM development program in the second half of 2025. However, the Group retains full discretion over the timing and phasing of these activities, which enables management to align expenditure with available funding and preserve liquidity if required.
In addition to lender support, our going concern forecasts include expected equity raises. These funds are expected to support ongoing CGM development activities. The Group has a strong track record of capital raising, including over US$7million secured in 2024, and maintains active engagement with existing and potential investors. Management believes that the equity raise is achievable based on the Group’s strategic focus and transformation progress to date.
The directors have considered the Group’s current financial position and cash flow projections, taking into account all known events and developments including the amendment and restatement of the term loan with Perceptive, The directors believe that, based on currently available information and reasonable assumptions, the Group will be able to continue its operations for at least the next 12 months from the year-end date, and that it is appropriate to continue to prepare the consolidated financial statements on a going concern basis.
120
v)
Property, plant and equipment (continued)
121
vi)
Business combinations & goodwill (continued)
122
vii)
Intangibles, including research and development (other than goodwill) (continued)
123
124
125
126
xvi)
Revenue recognition (continued)
127
xviii)
Foreign currency (continued)
128
xxi)
Senior secured term loan (continued)
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
The following amounts relating to the Biosynth transaction were recognised in 2024 as post-disposal adjustments, reflecting the write-off of receivables and provision for settlement costs:
146
147
10.
148
149
150
151
152
Carrying amount At December 31, 2024
0to 9
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
The fair value of the options is expensed over the vesting period of the option. In 2024, US$1,316,000(2023: US$2,069,000) (2022: US$1,755,000) was charged to the statement of operations split as follows:
172
The model assumed an expected dividend yield of 0%, consistent with the Group’s current dividend policy.
173
174
175
The issuance of additional warrants and repricing of existing warrants was not considered a modification of the original financial liability under IFRS. All warrants are classified as financial liabilities and are measured at fair value through profit or loss. For the year ended December 31, 2024, a non-cash fair value loss of US$2.1million was recognized in finance expense, reflecting the initial recognition of the newly issued warrants, the repricing of existing warrants, and subsequent remeasurement of all warrant liabilities.
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Remeasurement of ROU assets
-
192
193
194
The fair value of intellectual property related to the acquired technology at the Closing Date was derived using the multi-period excess earnings method. Significant assumptions used in the valuation including CGM cash flow projections which were based on estimates used to price the Waveform acquisition, and the discount rate applied was benchmarked with reference to the implied rate of return to the Company’s pricing model and the weighted-average cost of capital. The intangible asset for acquired technology will be amortized over the respective estimated periods for which the intangible assets will provide economic benefit to the Company, which is 15 years.
195
196
197
198
31.
199
ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
200
Allowance for slow-moving and obsolete inventory (continued)
201
202
Principal Country ofincorporation andoperation
203
Research and development
Ireland
100%
Manufacturing, development, and sale of biosensors
Slovenia