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Smile fades as dental group admits to reporting errors

Business

Smiles Inclusive has been forced to correct its financial reporting by more than $1 million and admitted it has so far been unable to raise capital.

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After telling the market in April that it was in advanced negotiations to improve its capital position, the company told the ASX that “the timing for completion of the transaction is still not yet known”.

“SIL confirms it remains in negotiations with potential investors,” the company said.

However, it also told the ASX that it had made some reporting errors in the March quarter including its opening cash balance and staff costs of $1.1 million.

“Upon review of the December 2019 and March 2020 Appendix 4C statements, it was clear that incorrect figures had been recorded in the statements lodged, which had a flow-through impact and resulted in errors,” the company disclosed.

“Following on from the review of the cash flow calculations, and the reconciliation of the cash balances to the bank statements noted in the response to question 2 above, it was discovered that $1,114,000 of cost was not recorded for the quarter. From analysing the cash flow workings, the costs were related to staff expenses.

“SIL have addressed the issue by reviewing its systems and resource capability. An experienced consultant with a background in senior finance and ASX listed organisation has been engaged to assist with SIL’s reporting and to finalise the half-year financial report. The recruitment of a permanent CFO is also being progressed.”

The disclosure follows a string of controversies for the Gold Coast-based company including the loss of a chief executive and a chief financial officer.

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