Facephithe technological based in Alicante specialized in biometrics and facial recognition, has continued to increase its red numbers in the first half of this year. The company listed on the BME Growth lost 6.2 million euros until June, 33.9% more as their accounts reveal.
Although the company managed to increase its turnover, up to 11.7 million euroswhich represents a growth of 20% compared to the same semester of 2023. According to the firm itself, variable costs and fixed costs grew together by 13.9%especially due to the increase in staff to 233 workers, as well as the investment in R&D.
To those they added extraordinary expenses of 1 million euros “which are basically related to the restructuring of subsidiaries and corporate capital operations.” The company’s management “estimates to have already dimensioned its target operating structure” and downplays the losses since it considers that in “the technology sector, the cost of acquiring new markets, niches and clients occurs in time before the impact in turnover which, like ebitda, will experience notable growth in 2025”.
Despite the fact that the company cleared up part of the financial and equity balance problems with the entry of a new partner, the Korean group Hancomand the new financing agreement with its first partner, Nice&Green, the auditor includes in its limited review of the financial statements a “material uncertainty” about the company’s ability “to continue as a going concern.”
The uncertainties
Specifically, in addition to the high losses, the auditor cites the negative working capital recorded at the end of June and its treasury projections, for which it may need additional funds to finance itself in the short term.
The company also reflects in the semiannual accounts elements that reduce this risk, such as its negative working capital of 8.52 million euros will be reduced to 2.9 million with the transformation of convertible debt into capital planned for this year, like the 5 million euros that the Korean Hancom injected.
It has also formalized a financing commitment of 2 million euros for this year from Nice&Green, with which it is negotiating another 3 million for next year. In addition, he points out that his syndicated loan is being renegotiated and that it provides for R&D deductions and a new tax lease generate 3.6 million euros.
Regarding its commercial activity, Facephi continued to advance in its expansion and geographical diversification, with a new business alliance in Pakistan and entry into Poland and South Africa through its Partner strategy.
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