Going Concern Warning: My Foodie Box Faces Funding and Relisting Risks
My Foodie Box Ltd reported a net loss of $240,933 for FY25 following the divestment of its core meal kit business and is now pursuing a complex relisting on the ASX amid ongoing funding needs and going concern uncertainties.
- FY25 net loss of $240,933 after divesting core business
- 9.09% stake retained in MFB (WA) Pty Ltd after dilution
- Advanced talks for ASX Re-Compliance Transaction underway
- Over $300,000 raised via loans and promissory notes for working capital
- Directors have waived fees since May 2024 amid financial constraints
Financial Results and Business Divestment
My Foodie Box Ltd (ASX – MBX) has released its audited financial results for the year ended 30 June 2025, revealing a net loss of $240,933. This follows the strategic divestment of its primary meal kit business to MFB (WA) Pty Ltd in May 2024, which had previously been the company's main revenue driver. The sale included a 40% equity stake in MFB, which was subsequently diluted to 9.09% after capital raises by MFB during late 2024. The investment is now accounted for as a financial asset at fair value through profit or loss, with its carrying value impaired to nil due to MFB's net liability position.
Funding and Going Concern Challenges
The company faces significant financial headwinds, with net liabilities exceeding $1 million and net current liabilities of nearly $291,000 at year-end. The directors have flagged a material uncertainty regarding the company's ability to continue as a going concern, citing the need for additional funding to support operations and working capital. To address this, My Foodie Box has raised over $300,000 through unsecured loans and promissory notes, including a lead manager mandate with Kaai Pty Ltd initiated in October 2024. These loans carry a 10% interest rate and include options for lenders to convert debt into equity, subject to shareholder approval.
Path to ASX Relisting
Following the divestment, the company has minimal cash burn but is actively seeking new acquisition opportunities to restore shareholder value. It is currently in advanced discussions regarding a Re-Compliance Transaction aimed at reinstating its official quotation on the ASX. However, no formal agreements have been signed, and the outcome remains uncertain. The company is also undertaking a promissory note raising to fund the costs associated with this relisting effort and ongoing working capital needs.
Governance and Director Actions
Notably, all directors have waived their fees since May 2024, reflecting the company's constrained financial position. There were no dividends declared for the current or prior year. The auditor's report, issued by RSM Australia Partners, confirms the material uncertainty over going concern but provides an unmodified opinion on the financial statements. The board continues to monitor liquidity risks closely and is managing its capital structure to balance continuity and flexibility.
Outlook and Risks
While the company’s strategic pivot and capital raising efforts signal a commitment to recovery, the path ahead is fraught with challenges. The success of the Re-Compliance Transaction is critical to restoring market confidence and liquidity. Additionally, the company’s exposure to MFB’s financial health and repayment of vendor financing adds layers of risk. Investors will be watching closely for updates on the relisting progress, shareholder approvals for loan conversion options, and any further developments in the company’s acquisition strategy.
Bottom Line?
My Foodie Box’s next chapter hinges on securing new assets and successfully navigating its ASX relisting amid ongoing financial pressures.
Questions in the middle?
- Will the Re-Compliance Transaction proceed to completion and under what terms?
- How will My Foodie Box manage its exposure to MFB’s financial difficulties and loan repayments?
- What new acquisition opportunities is the company targeting to restore shareholder value?