NoviqTech Limited reported a widening loss of $2.83 million for 2025, alongside a severe drop in cash reserves and a looming going concern uncertainty flagged in its upcoming audit.
- Loss increased 11.56% to $2.83 million in 2025
- Revenue remains minimal at $9,100, doubling from zero in 2024
- Cash reserves plunged from $753,145 to just $22,642
- Material uncertainty over going concern flagged ahead of audit
- Significant borrowings with $1.4 million loan facility partially drawn
Financial Performance and Revenue
NoviqTech Limited has released its preliminary final report for the year ended 31 December 2025, revealing a net loss of $2.83 million. This represents an 11.56% increase compared to the prior year’s loss of $2.53 million. Revenue remains negligible, with only $9,100 recorded for the year, albeit doubling from zero in 2024. The company continues to operate in the blockchain and cryptocurrency space, but its core income streams have yet to gain meaningful traction.
Liquidity and Cash Position
One of the most striking aspects of the report is the dramatic decline in cash and cash equivalents, which fell from $753,145 at the end of 2024 to a mere $22,642 by the end of 2025. This sharp depletion raises immediate concerns about the company’s ability to fund ongoing operations without additional capital injections or financing. The company’s net tangible liabilities per share worsened to negative 0.41 cents from negative 0.09 cents, underscoring the deteriorating balance sheet strength.
Going Concern and Audit Outlook
NoviqTech has disclosed that its upcoming audited financial statements, due in March 2026, may include a material uncertainty related to going concern. This signals that auditors have identified significant doubt about the company’s ability to continue as a going concern without securing additional funding or improving operational cash flow. Such a qualification could weigh heavily on investor confidence and share price performance.
Capital Structure and Borrowings
The company completed a 10:1 share consolidation in mid-2024 to enhance comparability and has since issued shares through private placements and loan conversions. Borrowings remain substantial, with a $1.4 million loan facility from Copeak Pty Ltd partially drawn down to $263,730, alongside interest-free loans from CEO Fady El Turk. These financing arrangements provide some runway but also highlight ongoing reliance on external funding sources.
Digital Assets and Impairment
NoviqTech holds digital assets in the form of HBAR cryptocurrency. While the company recognised a gain on reversal of impairment in 2024 due to rising HBAR prices, 2025 saw impairment losses recorded, reflecting the volatile nature of cryptocurrency valuations. This adds an additional layer of uncertainty to the company’s asset base and future earnings potential.
Outlook and Strategic Considerations
With limited revenue growth, a worsening loss position, and a critical cash crunch, NoviqTech faces a challenging road ahead. The flagged going concern uncertainty will likely prompt stakeholders to scrutinise management’s plans for liquidity, operational sustainability, and potential capital raising initiatives. The company’s ability to stabilise its financial footing will be key to maintaining investor support in a competitive and rapidly evolving technology sector.
Bottom Line?
NoviqTech’s 2025 results underscore urgent financial challenges, with the coming audit set to reveal if the company can sustain operations or faces deeper distress.
Questions in the middle?
- What specific plans does management have to address the going concern uncertainty?
- Will NoviqTech seek additional capital raises or strategic partnerships to bolster liquidity?
- How will volatility in cryptocurrency valuations impact future asset impairment and earnings?