Noontalk Media takes steps to ensure working capital until mid-2025

NOONTALK Media said on Friday (Oct 11) that it would have sufficient working capital and financial resources to meet its liabilities up to mid-2025, through various measures aimed at boosting its finances.

The entertainment company had total liabilities of S$2.8 million as at end-June 2024, up from S$2.4 million in the previous corresponding period.

The measures it is taking include tightening controls over expenses and entering into a S$2 million interest-free loan agreement with the company’s executive director and chief executive officer, Dasmond Koh.

As at Wednesday, when the loan was announced, he held a deemed interest of an aggregate of around 123.8 million ordinary shares in Noontalk, representing a stake of 62.6 per cent.

The loan is to be repaid in full on or after Jul 1, 2026. The money will provided to Noontalk in tranches upon signing, and from December 2024 to April 2025, as well as whenever necessary, in line with the company’s cash-flow requirements.

The funds will go towards Noontalk’s working capital, business expansion and cash-flow needs, said the company.

The entertainment company sank deeper into the red with a net loss of S$3.8 million for financial year 2024, up from S$3.2 million the year before. Its net operating cash outflow amounted to S$876,207, down from S$1.7 million in the previous year.

Noontalk’s auditor said in a note: “These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”

In view of the net loss and cash outflow, the auditor tested the company’s assets and film products for impairment, evaluated the appropriateness of its accounting policies for film products, and analysed revenue estimates from its film production.

Additionally, the auditor highlighted expected credit losses on finance lease receivable, trade receivables and contract assets.

It noted that as at Jun 30, Noontalk’s finance lease receivable, trade receivables and contract assets amounted to S$445,231 and S$262,133, respectively, representing 17 per cent of the company’s total assets.

It then discussed with the company the status of long-outstanding balances and its consideration of debtor’s credit risks, among other measures.

Shares of NoonTalk were trading up 1.4 per cent or S$0.001 at S$0.073 as at 10.21 am on Friday, after the news.