KUALA LUMPUR (Nov 11): Nova MSC Bhd (KL:NOVAMSC) said its audited financial statement for its latest financial year shows an over 11% deeper net loss versus its previously reported unaudited figure.
Audited net loss for the 15 months ended June 30, 2025 (FY2025) stood at RM9.87 million versus the RM8.84 million previously disclosed — a deviation of 11.6%, the software services provider’s bourse filing on Tuesday showed.
The deviation was due to additional impairment charges on goodwill and intangible assets identified during the finalisation of the audit, as well as other minor audit adjustments.
The company booked RM633,000 in additional impairment on intangible assets, RM274,000 in additional impairment on goodwill, and RM120,000 in additional administrative and other expenses.
“These adjustments were made upon completion of the auditors’ review and final assessment of the recoverable amounts of certain assets in accordance with the relevant accounting standards.
“The board wishes to highlight that the adjustments are non-cash in nature and do not affect the group’s operational performance or cash flow position,” the company said.
On Oct 31, Nova MSC's external auditor LTTH PLT raised doubts about the valuation of the company's new software assets, citing insufficient evidence to support its sales or revenue prediction that was used to justify the value of these assets recorded.
LTTH said it was unable to verify the value the company placed on these intangible assets or cash-generating unit (CGU) that accounts for RM9.55 million of Nova MSC's total RM29 million in capitalised development spending or project investment cost.
The limitations in verification arose due to the absence of corroborative documentation. Hence, the auditor believed that the projects used by Nova MSC to justify the value of the CGU may be too optimistic.
Shares in Nova MSC ended unchanged at 5.5 sen on Tuesday, valuing the company at RM109.97 million