Nuheara spruiks strong sales but auditors are concerned about its future
Link copied to
Wearable hearing tech company Nuheara was spruiking strong product sales as it released its 2019 half-year financials to the market this morning, but under the hood its auditors are concerned about the business’ viability.
Nuheara (ASX:NUH) makes intelligent, next-generation earbuds called IQbuds and has previously spoken of the strong take-up the products have had.
This morning it was talking up strong sales for the half-year, with the average sales price of its products increasing 86 per cent to $337 per unit.
But revenue overall fell 28 per cent to $1.4 million and it is still operating at a loss, albeit a slightly narrower one, losing $4 million for the half-year.
And that’s what concerns auditors, who concluded that there is a “material uncertainty” as to whether Nuheara can start operating at a profit and “extinguish its liabilities in the normal course of business and at amounts stated in the financial report”.
Company directors noted the concerns but said there are “reasonable grounds to believe that the Group will be able to continue as a going concern” due to ongoing sales growth, purported new products and new customers and the appointment of a chief sales officer, which Stockhead reported last September.
Nuhera chief Justin Miller told Stockhead back in August the 2019 financial year would be the company’s “statement year, when we can actually start to really see improvements in both the top and bottom line”.
Stockhead has approached Nuheara for comment.
Shares fell 5 per cent to 7.5c.