KUALA LUMPUR: JagaSolution Bhd's external auditors have flagged a material uncertainty over the company's ability to continue as a going concern following losses and negative operating cash flow in the financial year ended June 30, 2026 (FY26).
In a filing with Bursa Malaysia, the LEAP Market-listed company said its auditors, Crowe Malaysia PLT, highlighted the uncertainty after the group recorded a net loss of RM121,581, while the company incurred a net loss of RM192,944.
The company also recorded negative operating cash flow of RM227,282, while the group's current liabilities exceeded its current assets by RM809,241 as at June 30.
The auditors said these conditions raised significant doubt over the group's and company's ability to continue as going concerns, although their audit opinion was not modified.
JagaSolution said it was implementing cost-saving measures, including reducing system maintenance expenses and streamlining operations, which had helped the group return to profitability in the first quarter ended Sept 30, 2026.
It added that a director who is also a substantial shareholder had agreed to provide financial support when necessary to ensure sufficient cash flow for daily operations.
“The board is also in the process of exploring and evaluating the group’s future plans on collaboration with other parties to expand its customer base into a new geographical region with a wider customer audience which may positively impact the group's profitability moving forward,” it said.
Barring unforeseen circumstances, JagaSolution expects to address the going concern issues within the next year.
