Ocean Sciences faces capital test after going concern warning

Seaweed revenue reaches A$3.444 million

Ocean Sciences Ltd (ASX:OSS), formerly BPH Global Ltd, has turned its Indonesian seaweed trading operation into a meaningful source of revenue, but not yet a profitable one. Continuing-operations revenue climbed to A$3.444 million in FY2026 from A$235,990 a year earlier, reflecting the first full year of continuous commercial operations in Indonesia.

The result came with a continuing-operations loss after tax of A$1.612 million, wider than the A$1.314 million loss recorded in FY2025. The group’s total loss after tax, including its Chinese discontinued operation, was A$1.739 million. Revenue was generated from a limited number of customers, a concentration risk the report explicitly identifies.

Cash burn leaves funding as the immediate test

Cash generation remains the central weakness in the numbers. Ocean Sciences used A$2.319 million in operating cash during the year, compared with A$929,812 in FY2025, and held A$259,882 in cash at 30 June. The balance sheet showed net liabilities of A$635,573, although that was an improvement from A$1.464 million a year earlier.

HLB Mann Judd issued an unmodified audit opinion, but drew attention to a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern. Management says it is working with brokers on a capital raising of up to A$3 million in October 2026, while also negotiating payment plans with creditors. The proposed raise is not yet completed, and the report says further fundraising is expected over the coming 12 months.

Trade finance extended as Indonesia expands

The company’s Indonesian operation was supported by a fully drawn US$375,000 trade finance facility carrying annual interest of 15% and secured against seaweed stock held at its warehouse. After year end, the facility was extended to 19 August 2027. The group says the operation has commenced direct export sales to Chinese customers, widening its available market, though the financial statements do not establish that the expansion has yet produced positive operating cash flow.

Ocean Sciences is also moving beyond raw seaweed trading. It secured a lease over an approximately 3.4-hectare coastal site at Laikang Village in South Sulawesi for a Seaweed Innovation and Application Centre, with plans for cultivation tanks, processing, drying, storage and laboratory facilities. Research programs span bio-stimulant and bio-fertiliser products, green seaweed kefir, fucoidan extraction and the Project Giddy-Up men’s vitality nutraceutical. These remain development programs, with commercialisation pathways described but no revenue contribution disclosed.

Share structure reset after year end

Shareholders approved a 1-for-10 consolidation on 11 September, completed on 24 September, reducing issued shares from 2.353 billion to 235.348 million. Options and performance rights were adjusted in the same ratio, with exercise or barrier prices multiplied by 10. The company also changed its name to Ocean Sciences, signalling its increased focus on seaweed and other blue technologies.

The capital history is relevant to the funding question: the group raised A$2.1 million before costs during FY2026, issued 227.5 million shares to settle outstanding director fees and issued further shares through placements and transaction arrangements. At 30 June, trade and other payables stood at A$1.204 million. The next financing will therefore need to support the Indonesian business while addressing a balance sheet that remains in deficit.