Dubber Corporation's Interim Financial Report for the half-year ended 31 December 2023

Dubber Corporation Limited (ASX: $DUB) has released its Interim Financial Report for the half-year ended 31 December 2023. The report includes a review of operations, financial review, changes in the state of affairs, significant matters subsequent to the end of the reporting period, and notes to the financial consolidated statements.

Executive Commentary on Misuse of Company Funds and Financial Performance

The company uncovered potential misuse of company funds by its former Managing Director and CEO, Steve McGovern, and a third-party trustee. The matter has been referred to ASIC and the Legal Services Board of Victoria, and the company is cooperating with ASIC in its investigation. Dubber's strategy for the 2024 Financial Year focuses on revenue growth, cost efficiencies, and a higher margin recurring revenue model. It aims to achieve a break-even operating cash position during the 2025 Financial Year. The company's revenues are derived from call recording subscriptions, AI services subscriptions, and platform enablement agreements with Communications Service Providers. The group's revenue grew by 37% in the 6 months ended 31 December 2023, reaching $18,728,274, while operating costs reduced by 27% during the same period. The company has obtained a $5m secured bridging loan facility and appointed Peter Pawlowitsch as Acting CEO. The company is also at an advanced stage of executing a capital raise.

Summary of Dubber Corporation's Interim Financial Report and Future Plans

Dubber Corporation Limited has been dealing with a significant issue involving the suspected misuse of funds by its former employee, Mr. McGovern. The company has taken several steps to address the matter, including suspending Mr. McGovern's employment, terminating his employment, and cooperating with ASIC in the investigation. The investigation revealed that a substantial amount of the company's funds were misappropriated, leading to an overstatement of assets and earnings. The company is also exploring options for the recovery of the misappropriated funds. Additionally, the company has obtained a secured bridging loan facility and is at an advanced stage of executing a capital raise. The financial statements for the half-year ended 31 December 2023 have been restated to reflect the impact of the investigation's findings. The company's ability to continue as a going concern is dependent on its ability to execute planned activities and raise new funds.