Dubber at risk of insolvency as auditors flag 'material uncertainty'
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The news: Embattled voice recording tech company Dubber looks to be at risk of insolvency as auditors flagged 'material uncertainty' in its full-year results and issued a correction to previous years' accounts.
The numbers: Dubber acknowledged that $26.6 million of company money is still missing with the business alleging former CEO Steve McGovern and third party trustee Christopher William Legal may have been involved.
The investigation prompted a review of previous financial accounts, leading the company to conclude that there had been a "cumulative understatement of operating losses of $4,607,142" over 2022 and previous financial years .
A further $3.4 million was said to be understated in Dubber's 2023 accounts.
It places Dubber in a precarious position. The company had $10.6 million cash on its book at the end of FY24. Current liabilities to be repaid within the next 12 months were $27.5 million. Full year losses were at $40 million.
However, the company's shares soared 13.3% higher to $0.034. Over the last 12 months its shares have plummeted 51.43%.
The context: Dubber fired CEO Steve McGovern in April after it discovered the $26.6 million was missing from company accounts. The news and subsequent cap raise tanked the company's share price and threw the business into disarray.
A note in Friday's accounts flagged that an audit of Dubber was continuing and would likely raise concerns regarding the company's ability to operate.
What they said: "The company’s audit is continuing at present. Consistent with the half year accounts to 31 December, 2023, the company expects that the audit report will include an emphasis of matter paragraph highlighting a material uncertainty relating to the company’s ability to continue as a going concern and the need to strengthen the company's balance sheet, which may include future capital raisings, access to debt facilities, recovery of missing funds and/or finalising commercial disputes," Dubber said.
The source: ASX announcement
