Locafy Limited reports consolidated financial statements showing operating losses and continued cash outflows. The statements disclose operating loss and loss before tax figures of A$(3,786,219) and A$(3,891,586) in one presentation and comparatives of A$(4,342,137) and A$(5,090,327) elsewhere, with basic and diluted loss per share reported at (2.30) (and other historical per-share figures shown). Cash and cash equivalents are presented at A$275,875 (with a prior-period A$3,174,700) and a net decrease in cash of A$(2,898,361). The filing discloses a working capital deficit (current liabilities exceed current assets by A$1,033,667) and notes that during July 2024 the company sold 70,708 ordinary shares for gross proceeds of US$554,428, producing a pro forma cash position of A$1,097,689 as of 1 July 2024. Convertible notes are described as matured and due and payable. Significant expense line items include employee benefits A$(5,267,246), technology expense A$(1,718,974) and depreciation/amortisation A$(1,355,170). The report discloses segment reporting (publishing and SEO agency), R&D incentives and future accounting standard adoption dates.
Locafy Limited reports that its previously issued consolidated financial statements for the year ended June 30, 2024, included in its Form 20-F, should no longer be relied upon due to identified errors. The company plans to restate these financial statements in an Amendment No. 2 to its Form 20-F as soon as reasonably practicable and does not plan to amend earlier periods such as the year ended June 30, 2023.
The issue arose during preparation of results for the half year ended December 31, 2024, when a misstatement related to employee service Tranche 1 performance rights was found. Because the performance conditions for these rights had not been met as of June 30, 2024, the cumulative balance for these rights should have been reversed through profit or loss under IFRS 2. Locafy will adjust share-based payment expense and the share-based payment reserve in the restated financials. Management and the audit committee have discussed these matters with Grant Thornton Audit Pty Ltd., the company’s former independent registered public accounting firm.