Revenue collapsed 94.6% and NPAT loss widened to $8.6m on tax reversal

What changed

FY22 revenue fell to roughly $24k from $451k in FY21, a 94.6% decline on the like-for-like basis. Pre-tax loss widened 21.2% to -$7.5m, but NPAT deteriorated far more sharply – 95.5% – to -$8.6m, because the prior-year tax credit flipped to a tax expense in FY22. Operating cash outflow worsened 53.9% to -$6.8m, and cash on hand fell 43.5% to $1.9m. Capex stepped down to -$0.4m (from -$1.4m), so pre-lease FCF still came in at -$7.2m versus -$5.8m. Borrowings went from $10.8k to zero, but total liabilities rose 364.7% to $9.4m, and equity fell 16.1% to $24.2m.

What matters

• Tax distortion at the bottom line. The 74pp gap between PBT and NPAT growth rates is driven by a swing from tax credit to tax expense, with the release explicitly flagging deferred-tax asset reassessment linked to the timeframe to taxable profit. PBT at -$7.5m (down 21.2%) is the cleaner operating read; the headline -95.5% NPAT move overstates the operational deterioration.
• Cash runway is the dominant balance-sheet question. With $1.9m of cash against an FY22 operating burn of $6.8m and pre-lease FCF of -$7.2m, the current cash pile does not cover a further twelve months at this run rate. Borrowings have been extinguished, so there is no debt stack to refinance, but the liabilities increase of $7.4m and equity decline of $4.6m both point in the wrong direction.
• Revenue shape is internally inconsistent. HY22 reported revenue of $360k; FY22 revenue is $24k. That implies a materially negative second-half revenue contribution, which is more consistent with reversals, reclassification, or returns than with underlying trading. This undermines the ability to read FY22 revenue as a trading run rate.

Expectations

No explicit revenue, earnings, or forward-work targets were disclosed. The FY21 release had positioned the company as "on track to deliver revenue," but the FY22 print is materially below the HY22 interim revenue figure, so the full-year outcome does not support the half-year trajectory. On profit and cash, the second-half share of losses (NPAT H2 implied at -$6.2m versus HY22 -$2.5m; operating cash H2 -$3.1m versus HY22 -$3.7m) shows the second half was the heavier loss period for earnings but slightly lighter for cash burn. Without stated guidance or a run-rate anchor, the release does not support a specific FY23 revenue or cash-burn expectation.

Quality of result

The operating loss looks structural rather than timing-driven: revenue is effectively absent, capex was pared back, and the worsening of operating cash flow moved broadly in line with the pre-tax loss. Capex compression – from -$1.4m to -$0.4m – flattered FCF relative to prior year, but did not change the direction. The NPAT deterioration is partly tax-driven and therefore less repeatable; the PBT deterioration is the more durable signal. Inventory was disclosed at $0.2m with no prior comparative, and neither receivables nor payables were separately disclosed, so working-capital contribution to cash flow cannot be isolated. The 364.7% rise in total liabilities, without any gross borrowings, warrants attention as a source of non-cash balance-sheet pressure.

Unresolved

• What explains the apparent reversal of revenue between HY22 ($360k) and FY22 ($24k), and is any of the FY22 result a reclassification of previously recognised revenue?
• What is the composition of the $7.4m increase in total liabilities, given borrowings went to zero?
• How was the deferred-tax asset position adjusted, and what profitability assumptions underpin the remaining carrying value?
• With $1.9m of cash against a $6.8m annual operating burn, what is management's funding plan, and is further equity issuance contemplated?
• No dividend was declared, consistent with loss-making status; no capital-return framework is articulated.

This briefing cannot assess product pipeline, regulatory milestones, customer contract status, or the recoverability of the deferred tax asset, as none were quantified in the extracted material.

Key metrics

Analytical metrics

This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.