These conditions"indicate that a material uncertainty exists that may cast significant doubt on its ability continue as a going concern,"said the auditor in its financial statements lodged with ASIC.
Xinja founder and chief executive Eric Wilson said the bank raised $10 million from investors in September and it is anticipating further fund raising from investors shortly,including the WIG deal that was delayed by the pandemic.
"Our cornerstone future investor announced in March,the Dubai based World Investment Group,was severely impacted as an organisation by COVID which caused a significant delay in due diligence for WIG's investment in Xinja,"he said in a statement.
According to Mr Wilson,the two parties have signed an updated fund agreement and Xinja has a team of four in Dubai working through various internal and external due diligence requirements.
"Attracting overseas investment to Australia is difficult when borders are closed and trade tensions with China are running high,and meeting stringent regulatory requirements in such a volatile economic and public health environment is challenging,"he said.
The lack of funding meant Xinja had to preserve cash and delay revenue-generating services like its loans business that would finally utilise the $500 million of deposits it is paying interest on.