NoonTalk Media Limited FY2024: Navigating Financial Challenges with External Support

Report Summary: NoonTalk Media Limited Financial Year Ended June 30, 2024

Key Facts from the Report:

1. Material Uncertainty and Financial Performance:

   • The company reported a net loss of S$3,806,739 for the financial year ending June 30, 2024, which was an increase from the previous year’s loss of S$3,242,676.
   • The company experienced net operating cash outflows of S$876,207, a reduction from the previous year’s S$1,678,677.
   • Despite these losses, the company’s directors believe the going concern assumption is appropriate based on available cash and financial support.

2. Cash Position:

   • The company had net current assets of S$716,328 and net assets of S$1,399,069 as of June 30, 2024.
   • Cash and cash equivalents decreased to S$1,613,496 compared to S$3,461,818 in the prior year.

3. Financial Support:

   • A loan of S$2,000,000 from the Executive Director and CEO is arranged to support working capital needs. This loan is interest-free and repayable on demand after July 2026.

4. Impairment Testing:

   • Key audit areas included impairment testing on plant and equipment, and film product assets. Judgments on the recoverable amounts were based on fair value and use calculations.

5. No Dividends Declared:

   • The report does not mention any dividends being declared for the financial year ended June 30, 2024.

6. Special Actions to Improve Profitability:

   • The company plans to manage its cash flow tightly and has secured additional funding through the loan agreement to ensure continued operations and cover liabilities for the next 12 months.
   • Management has prepared cash flow forecasts for the year ending June 30, 2025, and believes it has adequate resources to continue operations.

Investor Actions:

• For Investors Currently Holding the Stock:
  Investors holding this stock should exercise caution. While management believes the company can continue as a going concern, the company is facing significant financial challenges. The S$2,000,000 loan provides temporary relief, but with continued losses, it is critical to monitor future financial performance and cash flow closely. Hold only if you are prepared to withstand further uncertainty and possible volatility in the stock price.

• For Investors Not Holding the Stock:
  Potential investors should avoid entering a position until the company shows clear signs of financial recovery and consistent profitability. The company is relying on financial assistance and has yet to demonstrate sustainable earnings.

Special Notes for Investors:

• The company’s reliance on external financial support to meet working capital needs should be carefully considered.
• The absence of dividends and the significant losses incurred are red flags for income-seeking and conservative investors.

Report Date:

• October 11, 2024

Disclaimer: This recommendation is based solely on the provided financial report and should not substitute for professional investment advice. Investors should consult with their financial advisors considering their personal financial situation.