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.
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.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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