COOTWHIGH SIGNALRISK10-Q

COOTW's financial distress has significantly worsened with quarterly losses deepening by 97% and net current liabilities increasing by AUD $1.2 million over three months.

The company's deteriorating financial position represents a material risk escalation, with quarterly losses nearly doubling from AUD $320k to AUD $630k while nine-month losses expanded from AUD $967k to AUD $1.6 million. The substantial increase in net current liabilities from AUD $8.4 million to AUD $9.6 million in just three months indicates severe liquidity pressures that could threaten operational continuity.

Comparing 2025-05-30 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

COOTW's financial deterioration has accelerated dramatically, with quarterly losses nearly doubling to AUD $630k and nine-month losses expanding 65% to AUD $1.6 million, representing a stark reversal from profitable operations in the prior year. The company's net current liability position worsened by AUD $1.2 million in just three months, reaching AUD $9.6 million and indicating severe working capital constraints. This combination of deepening losses and rapidly deteriorating liquidity signals heightened distress and potential near-term viability concerns for investors.

LANGUAGE CHANGES
NEW — 2025-05-30
PRIOR — 2025-03-31
ADDED
The preparation of financial statements in compliance with adoption of IFRS Accounting Standards requires the use of certain critical accounting estimates.
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company s financial position as of 31 March 2025 and the results of operations and cash flows for the nine months ended 31 March 2025 and 2024.
The Company s financial statements comprise the financial statements of the Company and its subsidiaries as of June 30, each year.
Details of subsidiaries as of 31 March 2025 and 30 June 2024 were as follows: Schedule of Subsidiaries Subsidiaries % of legal ownership 31 Mar 2025 % of legal ownership 30 Jun 2024 Country of Incorporation Principal business activities Australian Oilseeds Pty Ltd.
(c) Substantial doubt regarding Going Concern The Company incurred a loss after income tax for three months ended 31 March 2025 of AUD$ 630,633 (31 March 2024: Profit AUD$ 41,185 ) and for nine months ended 31 March 2025 a loss of AUD$ 1,597,298 (31 March 2024: Profit AUD$ 2,422,104 ).
The Company was in a net current liability position of AUD$ 9,622,311 as of 31 March 2025 (30 June 2024: AUD$ 6,965,530 ).
Net cash outflow from operating activities was AUD$ 1,942,969 for the nine months ended 31 March 2025 (31 March 2024: Inflow AUD$ 1,259,485 ).
6 As of 31 March 2025, the consolidated entity had cash in hand and at bank of AUD$ 1,435,123 (30 June 2024: AUD$ 514,140 ).
As at 31 March 2025, all banking covenants associated with the borrowings from the Commonwealth Bank of Australia were in compliance.
For the three months ending 31 March 2025 and 2024, 87.9 % and 96.9 %, respectively, of total sales by the Company were to its top five customers.
REMOVED
The preparation of financial statements in compliance with adopted International Accounting Standards requires the use of certain critical accounting estimates.
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company s financial position as of 31 December 2024 and the results of operations and cash flows for the six months ended 31 December 2024 and 2023.
The Company s financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, each year.
Details of subsidiaries as of 31 December 2024 and 30 June 2024 were as follows: Schedule of Subsidiaries Subsidiaries % of legal ownership 31 Dec 2024 % of legal ownership 30 Jun 2024 Country of Incorporation Principal business activities Australian Oilseeds Pty Ltd.
(c) Substantial doubt regarding Going Concern The Company incurred a loss after income tax for 3 months ended 31 December 2024 of AUD$ 320,332 (31 December 2023: Profit AUD$ 970,388 ) and for six months ended 31 December 2024 a loss of AUD$ 966,665 (31 December 2023: Profit AUD$ 2,380,919 ).
The Company was in a net current liability position of AUD$ 8,392,672 as of 31 December 2024 (30 June 2024: AUD$ 6,965,530 ).
Net cash outflow from operating activities was AUD$ 2,468,989 for the six months ended 31 December 2024 (31 December 2023: AUD$ 1,587,408 ).
6 As of 31 December 2024, the consolidated entity had cash in hand and at bank of AUD$ 1,437,667 (30 June 2024: AUD$ 514,140 ).
As at 31 December 2024, all banking covenants associated with the borrowings from the Commonwealth Bank of Australia were in compliance.
For the three months ending 31 December 2024 and 2023, 74.9 % and 71.4 %, respectively, of total sales by the Company were to its top five customers.
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