Liquidators probe Whanganui medical tech company’s transactions

A Whanganui-based medical tech company’s transactions to third parties are being probed by liquidators after its failure in part due to the impacts of Covid-19.

GPSOS Limited, which developed mobile emergency technology and operated a 24-hour alarm monitoring station, was placed into liquidation by the High Court earlier this year.

After launching in 2019 the company provided alarm pendants to people with health issues, the vulnerable, and those who worked in high-risk areas. When alarms were activated, the monitoring station was alerted and would dispatch emergency services while remaining in contact with its customer.

GPSOS director Mark Simmonds, who worked in the security industry for more than 40 years and was involved in the development of home detention for prisoners, has said he founded the company after a friend’s father was unable to activate their standard medical alert after suffering a stroke.

Last year GPSOS also sought to raise equity through the crowdfunding platform PledgeMe to grow their business. It asked for between $250,000 and $600,000, which represents 9.4–20 per cent of the company, and sold shares at $5 each with a minimum investment of $100.

Some $176,683 was invested by 114 people, according to the PledgeMe page.

But the business collapsed this year due to the impacts of Covid-19, the failure to obtain large contracts, lack of funding and poor management, Simmonds told liquidators from KPMG according to their first report.

The company was placed into liquidation on application of the Commissioner of Inland Revenue for failing to meet its obligations to Inland Revenue, consisting of overdue PAYE, together with associated penalties and interest.

The liquidators are now investigating the affairs of GPSOS and information requests have been made to third parties over any available assets, recoveries, or potential claims in the liquidation, the report said.

An analysis of the GPSOS bank statements identified transactions to third parties, which the liquidators said they had requested further details for.

Based on information provided by the Ministry of Social Development, GPSOS had received $225,558.40 of the Covid-19 wage-subsidy.

“The Liquidators’ staff are analysing the Company’s allocation of the wage-subsidy and will report to the appropriate authorities if any anomalies are identified,” the report reads.

The liquidators established that there were insufficient funds in the Company’s bank account to continue to trade the business.

But they were unable to close the business on appointment, however, as the monitoring services would have been impacted. The liquidators contacted the essential service providers of GPSOS to ensure services would remain active to enable the transition of customers to a new monitoring provider.

Whilst reviewing options, the liquidators’ staff met with the general security holder (GSH), and a significant investor, last month to discuss the affairs of the company.

The GSH elected to enforce his security over the business, take control of operations under a new entity and agreed to meet the costs incurred whilst continuing to trade the business from the date of liquidation.

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