Link: https://links.sgx.com/1.0.0/corporate-announcements/ULV721XJUTWE4UFS/b01ece46bbddfb6d9501b93d09aa53c4342ed92e03daa8c7f611a26eb64481e4

Summary:

• Revenue jumped 32.2% to S$17.09 million in FY2024 driven by higher Equipment Contract Manufacturing Services demand, though net loss widened to S$7.4 million from S$4.0 million as general and administrative costs surged 103% to S$8.7 million from acquisition-related expenses

• Net asset value collapsed to S$6.5 million from S$33.0 million after audit revealed S$23.2 million goodwill reduction and S$1.7 million trade receivables impairment tied to August 2024 acquisition of aquaculture firm LSO Organization Holdings

• Strategic transformation into integrated aquaculture player faltered as LSO performance fell short of expectations post-acquisition, though company secured operational management agreements in Malaysia and Palau and partnered with Hewlett Packard Enterprise on AI-driven shrimp farming technology

• Company faces severe liquidity pressure with net current liabilities of S$17.13 million, driven by S$8.6 million reclassification of external loans from non-current to current and S$4.6 million deferred consideration payable to LSO vendors

• Gross profit margin compressed to 27.4% from 31.1% due to unfavorable sales mix changes, while operating cash flow swung to S$1.7 million outflow from S$0.25 million inflow as losses widened

• Management commitment to enhance documentation and control procedures across subsidiaries, particularly at LSO, while exploring cost reduction measures and potential capital raising to restructure liabilities and strengthen balance sheet amid going concern uncertainties