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The situation at Smiles Inclusive (ASX: SIL) has gone from bad to worse, with an amended quarterly cash flow statement showing the struggling Gold Coast-based dental company has much less cash than previously thought.
With its shares already suspended from trading, a March quarter update released on 30 April claimed the company had net cash from operating activities of $500,000.
It now turns out the real figure was a cash outflow of $614,000, representing an error of more than $1.11 million.
For most companies on the ASX a mistake of this degree would mean little, but the 1.1-cent per share sell-off from founder Mike Timoney indicates the group is only worth $1.59 million.
Smiles also corrected its cash for the end of the quarter to $145,000, whereas it was previously reported as $242,000.
The new cash position equates to 0.236 quarters worth of funding available, which would seemingly indicate Smiles' money ran out around 21 April.
The group has a history of making announcements that underestimate the problems at hand. In September last year the company reported an unaudited $19 million loss for FY19, only to have that figure inflated to a loss of $31 million a month later.
This year Smiles' CEO and CFO have both left the company, which in its darkest hour is now being led by Michelle Aquilina.
In an exclusive interview with Business News Australia recently, founder Mike Timoney spoke highly of Aquilina, but he believes it would be a miracle for the company to survive.
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