Ayondo, a troubled investment firm based in Zurich, disclosed its financials for the fourth quarter of 2020, ending on December 31, and also consolidated the numbers for the entire year.
Without any activity in the trading business, the company ended the year with a total of CHF 720,000, which is down from the previous year’s amount, CHF1.55 million in losses. The quarterly loss in the final three months remained at CHF286,000.
It trimmed down its operational losses as all its employees left in the previous fiscal year.
The company already halted all its business activities which resulted in zero revenue from its core trading business. However, it gained CHF220,000 in the year from other sources of income.
Troubles of a High Flying Fintech
Ayondo offers a broad spectrum of social trading and brokerage services that cover both retail and institutional sectors and claimed to have 210,000 users across 195 countries on its social trading platform. It was also the first fintech company to launch an initial public offering (IPO) on the Singapore Stock Exchange (SGX).
The group’s troubles began when it faced working capital deficiency from continued losses and later blamed regulatory changes relating to product intervention imposed by European and UK regulators for its business woes.
“The Group’s current liabilities and total liabilities exceeded its current assets and total assets by approximately CHF2.2 million and CHF3.3 million, respectively as of 31 December 2019,” the filing stated.
Moreover, the group filed for insolvency in Germany and later in Switzerland.
“The ability of the Company to continue as a going concern would depend on the continued support from GN to finance the Company via subscribing for the remaining convertible notes and/or the completion of the reverse takeover of the Company,” the Ayondo added.