Digital investment company Invigor Group has reported a net loss after tax of $15.95 million for the year to 31 December 2013 – and said it may struggle to remain afloat without renewed investment.
Invigor posted an 40 percent increase in revenue to $38 million, but plummeted into the red following a $9.6 million profit the previous year.
The company blamed the poor result on its long-running purchase dispute with Piksel Inc (formerly KIT Digital).
Back in 2012, US-based KIT Digital announced the purchase of the digital technology assets of Invigor, then known as Hyro.
Hyro was subsequently rebuilt as Invigor, thanks to investment from brothers Greg and Gary Cohen and their firm Marcel Equity.
However, the sale never concluded as KIT Digital ran into financial and regulatory trouble, sending its share price tumbling and leading to a dispute between KIT Digital and Hyro followed.
The saga ended up in court, and KIT Digital filed for bankruptcy in 2013.
In Invigor's annual report, executive chairman Gary Cohen said: "Management spent considerable time and effort during 2013 managing the exposure to KIT. We do expect to incur some further costs during 2014 as we manage out the KIT situation.
"We continue pursuing recovery of amounts due to the company following the Chapter 11 reorganisation by KIT... While disappointing, it should be remembered that the decision to enter into the transaction with KIT was made by the former board."
The current board includes Greg and Gary Cohen, media personality Vic Larusso, Daniel Seekers, Gary Munitz and John Hayson.
The Invigor report said that it "does not envisage that any return of capital will occur in the foreseeable future" from the KIT deal and that "additional longer-term funding maybe required to enable the company to achieve its business objectives".
If further funding was not forthcoming, it "will have difficulty continuing to operate as a going concern", the directors reported.
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