Dyesol announes half-year financials ending 31 December 2016

Dyesol has announce half-year financial 2017 ending 31st December 2017. Revenues increased by AU$175k arising mainly from the revenue recognition of an initial mobilisation payment that was received for a contract to supply a prototype manufacturing facility, which Dyesol has fulfilled its obligations.

The result for the half-year shows an improvement with a reduction in the Company net loss after income tax from continuing operations by $678k (14.5%) compared to the same period last year.

During the half year, the Company received AU$3.85m cash rebate from the Federal Government for its R&D activities during FY 2016. An accrual of AU$2m under the FY2017 R&D Tax Incentive (refundable tax offset) has been made based on the Company’s R&D expenditures for the last six months.

Net cash usage from operating and investing activities for the 6 months, excluding R&D tax rebates (AU$3.85m) was AU$864k average per month; with R&D tax rebates recovery included, the net cash usage decreased significantly to AU$223k average per month.

The Company’s balance sheet at the end of the half-year reporting period shows total net assets of AU$4.7m, a decrease of AU$3.8m during the six months from the last annual financial year end, mainly due to lower cash reserves balances (by AU$1.5m) and the six-monthly FY2017 R&D tax rebates accrual of AU$2m compared to AU$3.8m of an annualised FY2016 R&D tax rebates amount. Lease liabilities have increased by AU$380k due to the lease financing of the Company plant operating equipment.

Cash balance as at half-year end showed AU$3.1m. Since the end of the half-year period, Dyesol has drawn down an initial AU$1.75m from its CBA advance facility further increasing cash at bank.