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THE Singapore Institute of Advanced Medicine (SAM) announced that external auditors of the company issued a disclaimer of opinion on the group’s results for the financial year ended Jun 30.

In a report dated Dec 9, the auditors noted the presence of material uncertainties that could cast significant doubt on the ability of SAM to continue as a going concern.

The group reported a loss after tax of S$37.4 million for FY2024, from continuing operations and net cash used in operating activities that amounted to S$12.9 million.

The wider company has other receivables from a subsidiary that manages the radiation therapy services. This is a cash-generating unit with a net carrying amount of S$84.3 million, which accounts for around 87 per cent of its total assets.

However, this subsidiary reported a loss after tax of S$21.1 million for FY2024, and its current liabilities exceeded its current assets by S$146.6 million as at Jun 30.

The company is dependent on the cash flows from this subsidiary to discharge its liabilities as and when they fall due.

Considering how the subsidiary was in a net liability position as at Jun 30, and its performance for FY2024 was worse than expected, the company determined that there is a significant increase in the credit risk of this subsidiary.

SAM’s financial statements have been prepared on a going-concern basis due to key assumptions that depend on the outcome of future events which cannot be determined as at the date of the independent auditors’ report. This includes the ability of SAM to draw down on financial support, bridge loans and ramp up the radiation therapy business of its subsidiary.

As at Jun 30, the group’s current liabilities exceeded its current assets by S$7.9 million.

Shares of SAM closed flat at S$0.085 on Monday (Dec 9) before the announcement.