The £1.8 billion London tech unicorn that's struggling to pay its staff is worried about going bust
Summary
Management says they are confident they can secure new funding but admit that funding issues “have cast significant doubts about the Group’s and the Company’s ability to continue as a going concern.” The phrase “going concern” is the legal term used when there is some risk of a company failing completely. The board says it and existing shareholders will put more money into the business to keep the lights on for the next three to four months until long-term funding can be secured. The accounts of Powa Technologies (UK) also give an insight into the high burn-rate and low revenues that have got the business into trouble. Powa has a mobile app called PowaTag that allows people to buy and order something by taking a photo of it on their smartphone. In that same year, which the accounts cover, the company had revenues of just £120, while running up administrative expenses of £2.3 million.