Troubled HR tech Tikforce might be able to turn a corner if sales keep rising
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Troubled Tikforce received $254,000 in the March quarter, indicating that if it can get its house in order the company might be able to move forward.
At the end of March the HR technology provider had just $48,000 in the bank — while expenses this quarter were expected to be nine times that figure.
It made $80,000 in the December quarter.
Tikforce said earlier in April it had received $1.2 million from a convertible note. The stock is still suspended from trade on the ASX, despite receiving the funds.
Tikforce (ASX:TKF) — a platform that performs background checks on employees — has had a number of stumbles this year such as shareholder requisitioned meetings trying to kick out the board.
Those shareholders are now suing Tikforce over allegations it defaulted on another convertible note.
The company announced several times last year a deal with the government’s JobActive program worth up to $1.9 million that was variously described as a contract or a trial.
It then went dark on the deal — not mentioning it again after September.
Stockhead understands that Tikforce’s failure to announce it had lost the deal may arguably constitute grounds for default under the note.
Tikforce denies the JobActive deal was a contract, and denies there was any default.
The company has at least four contracts that Stockhead has confirmed to be still active.
It has lost contracts in the past however, which it has never told the market about, including one with Australia Post that it used extensively in IPO marketing, another with Davidson HR Consulting in 2016 which was torn up by the latter, and with Perth rideshare platform Kapuddle last year.
Tikforce has failed to respond to Stockhead questions on these issues on multiple occasions.