imJack's losses increase

In the six months ended March 31 2010, revenue amounted to 5,692, compared to 172,585 in the same period the year before. The loss before and after tax was 1.85m, compared to 969,419 in the first half of the previous year.

The company said these results did not reflect any of the progress made in the last three months, in particular with regard to cost reduction.

The funding for the company's business model which involved matched funding for re-designating schools was withdrawn by the Government on June 10 2010.

In a statement, the company said: "Since then the company has been developing a new business model along with the schools. Further information will be announced at the appropriate time."

The business raised 900,000 from a share placing earlier this month which is forecast to provide working capital to pay off CVA creditors, and to enable the company to trade until revenues are generated from the sale of the imJack product.

Jeffrey Morris, the founder of imJack and its interim chief executive, has agreed to provide up to a 500,000 drawdown facility for the purposes of working capital if required.

In a statement, imJack said today: "The directors acknowledge that in light of the recent withdrawal of Government funding relating to imJack's project and continuing difficult credit market conditions, additional diligence on the part of preparers of accounts and members of audit committees is required and, in particular, the need for clarity as to the basis on which judgements have been exercised.

"The directors have prepared a forecast to December 2011, which assumes certain service level agreement revenue being achieved.

"Nevertheless, having successfully completed the placing and after making enquiries and considering the uncertainties described above, the directors have concluded that the going concern basis is appropriate and that the company will continue in operational existence for the foreseeable future."