Hipo Resources Limited (ASX: HIP) which is into the acquisition, identification, exploration, and development of minerals have made further progress at Next-Battery which is company dealing in lithium-ion battery technology where HIPO has 35% earn-in interest along with 25% shareholding at this company.
The UK affiliate company of Next-Battery, NextMetals (UK) Ltd has made its recent collaboration with Dendrobium Automotive which is taking up the prestigious Faraday Battery Challenge to produce recyclable batteries which has the following features- low cost, high performance, durable and have a low weight.
The main aim of the Faraday Battery Challenge is to reduce the existing cost of the Lithium-ion batteries followed by increasing the energy density for which scientific and development work is in process. Another important point which forms a part of this challenge is to improve the production of battery packaging and the structure of the cell and finally combining these batteries to the vehicle using the expertise of Dendrobium Automotive.
Once this challenge gets completed, it will invite massive revenue to the company. Further discussion regarding the establishment of the manufacturing facilities is in progress with the UK government.
The company is an average performer. Till the last five years, the performance of the company is negative. After that, there was positive performance seen frequently. The year to date performance of the company reports 55.42%.
The balance sheet of the company appears a little healthy. Its debt-equity ratio is 0.302. Another reason is that the company holds a net asset of $1,444,961 which implies that the company is in a position where it can meet its long-term obligations. The company owns a total current asset of $1,881,909 and a total current liabilities of $436,948 which is proof that the company can efficiently manage its working capital as well as its short-term obligations. At the same time, there is a minor increase in the accumulated losses which might create a negative impact on shareholders of the company. The total shareholder’s equity of the company is $1,444,961.
Through the operating activities of the company, there was a net cash outflow of $883,203. Here, the main source of cash outflow was in the form of payment made to the employees and the suppliers. The other sources of cash outflow are payment of the royalties and the interest.
Through the investing activities of the company, there was a net cash outflow of $978,420. Here, the main source of cash outflow was in the form exploration and evaluation expenditure and payment for plant and equipment, payment of refundable deposit and disposal of the subsidiary.
Through the financing activities of the company, there was a net cash inflow was $3,533,401. Here, the main source of cash inflow was through the issue of shares and advance payment received for the issue of shares. The company also generated proceeds from borrowing.
By the end of FY2018, the net cash and cash equivalent available with the company was $1,729,055. By the end of the trading on 13 December 2018, the market price of the share was A$0.018 with the stock holding a market capitalization of A$6.18 million.
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