The independent auditor's review of the latest financial report of Mint Wireless, the mobile payments company, has cast doubt on the company's future.
The company made a net loss of A$1.6 million in the six months to December, and suffered a net cash outflow from its operations of $678,000. At December 31, it had cash assets of $2.4 million, current assets of $3 million and current liabilities of $7 million.
Auditor Pitcher Partners said in its review: "These matters indicate the existence of a material uncertainty which may cast significant doubt on the entity's ability to continue as a going concern and therefore whether the consolidated entity will realise its assets and extinguish its liabilities in the normal course of business."
Mint Wireless sells mobile point-of-sale terminals and supporting payments infrastructure. The company is yet to make of profit since listing on the Australian Securities Exchange in 2007.
The company put a positive spin on things in a release to the ASX on Friday. It said its revenue from continuing activities rose from $173,000, in the six months to December 2012, to $854,000 in the latest half-year.
The improvement came after the company closed a loss-making "micro-transactions" business and also divested itself of a Malaysian subsidiary.
It said its loss, of $1.6 million, was a 35 per cent improvement on the previous corresponding period.
However, its loss from continuing operations increased from $1.1 million to $1.6 million.
The company highlighted a couple of recent deals that it hopes will drive future growth. Last year, it entered into an agreement with BNZ to provide BNZ's PayClip mobile payments service.
It also signed a deal with the business management software company MYOB that will allow MYOB to integrate Mint Wireless's mobile payments technology with its software products.
Mint Wireless has card scheme certifications with Bendigo and Adelaide Bank, enabling the company's mobile payment system to process all card types. It also has a wholesale merchant acquiring partnership agreement with Bendigo and Adelaide Bank.