Concern has been raised about risks to the future operations of listed company C2W Music.
Its auditors, Baker Tilly Strachan Lafayette, have highlighted in C2W's just released audited financial statements for 2017 that it made a loss of more than US$300 thousand and has an accumulated deficit of US$1.5 million .
In addition, C2W's current liabilities exceeded its current assets by US$234,565.
The auditors say from inception, the company has not achieved the level of revenues projected and required to sustain its operations.
They added that the ability of the company to generate sustained profitable operations depend on the successful implementation of the strategies, the key assumptions around revenue growth and continued cost reductions.
C2W has been told that if these assumptions do not materialize and it is unable to service its obligations when due, this will pose a going concern risk to the company.
Meanwhile,C2W’s financial statements show that the Performing Rights Societies of the Caribbean owes it publishing and sub-publishing royalties for 2012 to last year.
The company is working to rectify systems issues so the royalties can be identified and paid.
In addition, the company has moved into a 360 all Rights revenue model which will increase inflows based on other revenue streams other than music publishing earnings.
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