This was primarily due to a US$8 million loss from the change in the fair value of Trendlines’ portfolio companies during the year, versus a net gain of about $5 million in FY15, which was partially attributable to a write-off of nine portfolio companies due to lack of funding.
Another factor was the decrease in fair market value of various companies after the completion of “fund raising exercises at less favourable terms to the company”, in addition to “general commercial or technological difficulties demonstrated in some portfolio companies” during the financial year, says the group.
Operating, general and administrative expenses grew 29.1% to US$8.7 million in FY16 from US$6.7 million a year ago, mainly due to an increase in employment costs due to recruitment of new high level employees as part of the Company expansion, and listing expenses as a public company.
Current assets for FY16 were US$17.3 million, down from US$24.0 million for FY15.
The fair value of portfolio companies was US$83.7 million as at Dec 31, compared to a portfolio value of approximately US$84.4 million at end-2015.
“In 2016, Trendlines succeeded in achieving significant goals that we set for ourselves and our investors. The accomplishment of these objectives has set the stage for strong portfolio expansion in 2017 and beyond,” says chairman and CEO Steve Rhodes on the group’s corporate developments during the year.
In the group’s outlook, Trendlines says it remains committed to its stated plans in the medical and agricultural technologies fields, and believes that the continued need for new and improved products in these fields represents investment opportunities for the company.
Shares of Trendlines closed 1 cent lower at 19 cents on Tuesday.
