Eqonex : Singapore Statutory Financial Statements - Form 6-K

Singapore Statutory Financial Statements

EQONEX LIMITED (the "Company") has, in connection with its Annual General Meeting of Shareholders (the "Annual General Meeting") to be held on November 29, 2022 and in accordance with Singapore law, prepared Singapore statutory financial statements for the Company and its subsidiaries (collectively, the "Group") for the year ended March 31, 2022, to be delivered to the Company's shareholders prior to the Annual General Meeting. The Singapore statutory financial statements were prepared in accordance with the provisions of the Singapore Companies Act and the Singapore Financial Reporting Standards (International) issued by the Accounting Standards Council which are simultaneously compliant with the International Financial Reporting Standards issued by the International Accounting Standards Board.

Going Concern Assumption

In preparing the Singapore statutory financial statements, management of the Group has given careful consideration to the going concern status of the Group in light of the fact that the Group has incurred a loss for the year of $75,819,128 and cash outflows from operating activities of $42,607,632 for the year ended March 31, 2022, and as of that date, the Group had net current assets of $4,155,521 and net assets of $4,098,206, among which the Group had cash and cash equivalents of $4,882,410 and a non-current convertible loan (the "Bifinity Loan") of $2,774,692, which was under a $36 million convertible loan agreement (the "Loan Agreement") with Bifinity UAB ("Bifinity") with details set out in Note 30 to the consolidated financial statements contained in the Company's annual report for the year ended March 31, 2022 on Form 20-F filed with the Securities and Exchange Commission on August 15, 2022.

Subsequent to March 31, 2022, the end of the reporting period of the Singapore statutory financial statements, the Group is currently in breach of certain provisions of the Loan Agreement and consequently seeking a waiver from Bifinity on such breaches. Pursuant to a third amendment agreement to the Loan Agreement entered into by the Company and Bifinity on September 30, 2022, the drawdown of the fifth tranche of the Bifinity Loan was postponed from September 15, 2022 to October 27, 2022. Up to the date of this Form 6-K, the fifth tranche of the Bifinity Loan has not been drawn down. Based on the working capital forecast prepared by management of the Group, the financial resources available to the Group as of March 31, 2022 and up to the date of this Form-6-K may not be sufficient to satisfy the working capital requirements of the Group for a period of twelve months from the date of this 6-K, which may cast significant doubt on the Group's ability to continue as a going concern. The Group is pursuing financing options including, but not limited to, equity financing from the issuance of new shares, where negotiation with potential investors is ongoing as of the date of this Form 6-K.