The men behind Xurpas – Raymond Racaza, Nico Jose Nolledo and Fernando Jude “Andy” Garcia – have no plans of shutting down the IT flop despite being on the verge of bankruptcy.
In its latest financial report, Xurpas said its management has assessed its ability to continue as a going concern “and is satisfied that it can continue in business for the foreseeable future.”
Xurpas made this evaluation after incurring a net loss of P32.15 million in the first nine months of 2020 and its liabilities exceeding its current assets by P373.17 million.
“The ability to continue as a going concern is mainly dependent on future actions such as continuous venture into new revenue potentials, cost cutting measures, and entry of new strategic investors,” said Xurpas.
Racaza, Nolleda and Garcia have agreed to be diluted and cede control of Xurpas to Wavemaker Partners in a proposed backdoor listing still waiting approval from the Philippine Stock Exchange. Xurpas is currently suspended from trading.
“Management does not have plans to liquidate and continues to believe that the group is in a unique position being one of the few technology companies that can assist companies in their digital transformation initiatives and develop marketing promotions for consumer and enterprise businesses,” Xurpas said.
Xurpas said its financial performance improved in the third quarter of 2020 with revenues increasing 137 percent to P46.55 million from ₱19.67 million in the previous quarter.
Xurpas posted a net income of P16.42 million during the period, including an “extraordinary income from Art of Click for its collection from Pocketmath of US$400,000, which has already been classified and provided for, as bad debts.”
“The enterprise business grew by 120 percent attributed to software development and staff augmentation. Other Services, on the other hand, saw a 117 percent revenue increase across all of its business sub segments: service revenues, sale of goods, and AllCare, which provides HMO and other employee benefits to small firms and freelancers,” Xurpas said.