REG - CAP-XX Limited - Audited results for the year ended 30 June 2022
29/09/2022 07:00
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RNS Number : 1325B CAP-XX Limited 29 September 2022
Dissemination of a Regulatory Announcement that contains inside information
for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310.
29 September 2022
CAP-XX Limited
("CAP-XX" or the "Company")
Audited results for the year ended 30 June 2022
CAP-XX Limited, a world leader in the design and manufacture of
supercapacitors and energy management systems, is pleased to announce its
audited results for the year ended 30 June 2022.
Key highlights
· Product sales revenue up 44% on last year
· Total revenue up 36% on last year
· Gross margin up 43% on last year
· Adjusted EBITDA loss* of A$0.5 million, is on par with the
previous year (A$0.4 million)
· Sales pipeline** increased by US$10 million to over US$60 million
p.a.
· Successful ramp up of ex-Murata lines - manufacturing costs per
unit, yield and capacity fast approaching ex-Murata levels of operational
performance despite limited time in situ
· CAP-XX continues to pursue patent infringement action against
Maxwell Technologies (which is still a wholly owned subsidiary of Tesla Inc.)
and other parties. Operating expenses were negatively impacted by A$2.3
million of associated legal expenditure, up A$1.9 million on last year
· Royalty contribution is primarily from AVX with court proceedings
in place to ensure payments reflect what is properly owed
· CAP-XX continues to develop new IP around supercapacitors and
energy storage with a number of new patent applications
· CAPXX had cash reserves (excluding any legal funding) as at 30
June 2022 of A$1.6 million and was debt free. A further R&D A$2.0m tax
rebate is anticipated later this calendar year. Litigation funding approved,
pending completion of due diligence process
* Adjusted to exclude legal expenses for patent infringement and the
amortisation of share-based payment expenses.
** Sale Pipeline is the total potential annual sales revenue of all known
projects which are curently under evaluation by CAP-XX. This total is not risk
weighted.
Anthony Kongats, Chief Executive of CAP-XX, said:
"The major focus for CAP-XX continues to be to become profitable and cashflow
positive as soon as possible by increasing product sales from the newly
installed former Murata production equipment, other new product families the
Company recently launched and new products and intellectual property the
Company is currently developing. We look forward to the future with increasing
confidence."
Electronic copies of CAP-XX's audited annual report and accounts for the year
ended 30 June 2022 will shortly be available from the Company's website:
www.cap-xx.com (http://www.cap-xx.com)
For further information contact:
CAP-XX Limited
Anthony Kongats (Chief Executive
Officer) +61
(0) 2 9428 0139
Kreab (Financial PR)
Robert
Speed
+44 (0) 20 7074 1800
Allenby Capital (Nominated Adviser and Joint Broker)
David Hart / Alex Brearley (Corporate
Finance) +44 (0) 20 3328
5656
Tony Quirke (Equity Sales)
Cenkos Securities plc (Joint Broker) +44 (0) 13 1220 6939
Neil McDonald / Pete Lynch
More information is available at www.cap-xx.com (http://www.cap-xx.com)
Notes to Editors:
CAP-XX (LSE: CPX) is a world leader in the design and manufacture of
supercapacitors and energy management systems used in portable and small-scale
electronic devices, and to an increasing extent, in larger applications such
as automotive and renewable energy. The unique feature of CAP-XX
supercapacitors is their very high-power density and high energy storage
capacity in a space-efficient prismatic package. These attributes are
essential in power-hungry consumer and industrial electronics and deliver
similar benefits in automotive and other transportation applications. For more
information about CAP-XX, visit www.cap-xx.com (http://www.cap-xx.com)
Chairman's Report
It has been another successful year for CAP-XX, with progress in a broad range
of areas setting the Company on a path to achieving sustained and growing
profitability. I am pleased to report that revenue has continued to grow
substantially. The efforts, previously reported to build sales are bearing
fruit, with product sales up 44% year-on-year following on from a 30% increase
in product sales the year before. All of this was achieved against a backdrop
of a very challenging global environment as we work hard to mitigate the
negative impact of the COVID-19 pandemic and global supply shortages.
The pipeline of sales opportunities** has grown to more than US$60 million
which greatly exceeds the full annual capacity of the current production lines
at the Seven Hills facility. Interest and shipments for these products
continue to increase. As the Board expected, the early product shipments have
been to former Murata customers. While full production capacity of the
coating, DMF and DMT production lines has not yet been reached, the Board is
very pleased with the demand expressed by both previous Murata customers, new
customers, and new applications. The Board still expects that more than 75% of
Murata's former customers by value will be retained.
Importantly, we are increasing new business in the internet of things (IoT)
devices, medical devices, asset tracking devices and wearables markets. As
demand builds, the Board will look at how to best continue the Company's sales
growth, potentially by adding new capacity and new product lines, in line with
the Company's plans. This includes the DMH line which is scheduled to be
commissioned around Q3 2023, subject to customer pull and available CAP-XX
resources. Customer's interest in DMH products are primarily for new
applications in development such as gaming, tracking, electronic shelf labels,
medical devices, IoT sensors and smart credit cards.
During the year ended 30 June 2022 and subsequently, CAP-XX announced a number
of new sales wins, including Spire Health, RGM, Kessler, Fiio, Xtel, MCCI,
Continental, Powerfilm and Ioxus. CAP-XX also launched a number of new product
families including CAPMOD high voltage modules for renewable energy
applications, CAPSTART for truck and car engine starting and Lithium-Ion
Capacitors (LICs) for applications requiring very low leakage current. A
number of new distributors were also added to our sales network. The Company
was also able to implement a price increase across the portfolio of product
lines which was effective from 30 June 2022.
The Board remains of the view that the installation of the additional
production facilities at the Seven Hills facility is transformational for the
Company's sales and profitability. The capacity of the Seven Hills plant is
around 4.8 million DMF or DMT products per year and more than 2.4 million DMH
products per year. Operations at Seven Hills have continued to improve in
yield, costs and output as expected. Production costs are currently more than
50% lower than the prismatic parts which the Company manufactures in Malaysia.
These production costs are expected to decrease further as further
improvements are commissioned. At Seven Hills, the Company is well advanced in
obtaining the German automotive quality accreditation VDA6.3 which the Board
considers necessary for expanding sales in automotive applications.
As previously reported, production efficiency and output from Malaysia was
impacted by COVID-19. The ban on CAP-XX engineers travelling to Malaysia; the
compulsory shut down of businesses there and a ban on bringing additional
labour into the country, have negatively impacted the Company's output. With
the reopening of Malaysia these impediments have been removed and the
Malaysian operational performance has started to improve. We are already
seeing the benefits from the time we are investing with the current staff at
NTS, our contract manufacturing partner in Malaysia, in terms of output and
yield.
With regard to new products, the Company has made excellent progress in
developing 3V products to run on the Seven Hills production lines; a low cost
fully Surface Mount Device (SMD) high power supercapacitor and a very thin and
low cost prismatic supercapacitor. The Company is currently in discussions
with key customers about when to bring these new products and the DMH product
to market. These new products are protected by various new patents and the
Company continues to further develop new intellectual property concerning
supercapacitors and energy storage devices. We remain committed to ensuring
that CAP-XX's technology is well ahead of competing technologies wherever
possible. This involves a major investment with some 18 R&D and
engineering personnel and an eligible R&D expenditure of $4.7 million,
which has been expensed for FY22 but is offset by the A$2.0 million R&D
rebate that is anticipated to be receive later this calendar year.
Licensing also remains an important revenue stream for CAP-XX and the Company
continues to vigorously defend its intellectual property. During the year, the
Company successfully settled its dispute with the new owner of the Ioxus
assets. In return for granting CAP-XX an exclusive licence for the sale of
Ioxus products outside of the USA, Canada and Japan, CAP-XX agreed not to
pursue the new owner for damages. CAP-XX continues to pursue a similar patent
infringement action against Maxwell Technologies, still a wholly owned
subsidiary of Tesla Inc. The Board is pleased with recent decisions handed
down by the judge hearing this matter and remains confident of a favourable
outcome. CAP-XX is also in dispute with AVX over its performance in relation
to the licence agreement granted by CAP-XX to AVX. The Company is steadfast in
its goal to be paid the royalties that it believes it is entitled to and will
continue to pursue payment as an integral part of vigorously defending its
intellectual property. Litigation funding has been approved subject to
completion of the due diligence process.
Total Company sales revenue for the year to 30 June 2022 increased by 36% to
A$5.6 million (2021: A$4.1 million). Pleasingly, product sales were up 44%
from FY 2021, which is a direct result of the Company starting to convert part
of its pipeline of opportunities which has been commented on previously.
Licensing and royalty revenues were down for the reasons mentioned above.
Gross margin increased by 43% to A$2.5 million (2021: A$1.8 million). All
product segments have shown a year-on-year increase in reported gross margin
due to improved production efficiencies, the highlight being the ex-Murata
products.
The EBITDA loss for the year to 30 June 2022 was a loss of A$2.8 million
(2021: loss of A$2.5 million), which includes legal expenses for patent
infringement of A$2.3 million (2021: A$0.4 million). When adjusted for this
one-off factor, the like for like comparison is an adjusted EBITDA loss of
A$0.5 million (2021: loss of A$0.4 million).
As previously reported, the Company raised £2.6 million (net of expenses) in
August 2021 through a placing of additional shares. The funds from this
placing are being used to commission the DMH line, for new product
development, new supply chain capability and legal fees associated with patent
infringement and licencing.
The Board is confident that the growth of sales from the former Murata
production lines and other new products is transforming the Company's sales,
and its cash flow position will therefore be strong in the new financial year.
Due to a very strong last quarter, which depleted the order book ahead of
our year-end price increases, combined with a global shortage of integrated
circuits and ongoing COVID related manufacturing bottlenecks especially in
Asia, the new financial year is expected to be second-half weighted. The Board
is confident that the growth of sales from the former Murata production lines
and other new products is transforming the Company's sales and cash flow
position.
Patrick Elliott
Chairman
29 September 2022
Business Review
Review of Operations and Activities
The EBITDA loss for the year to 30 June 2022 was a loss of A$2.8 million
(2021: loss of A$2.5 million), which includes legal expenses for patent
infringement. When adjusted for this one-off factor, the like for like
comparison was an adjusted EBITDA loss of A$0.45 million (2021: loss of A$0.40
million).
Cash reserves as at 30 June 2022 were A$1.61 million, up from A$0.18 million
as at 30 June 2021.
The cash reserves reflect the A$2.34 million paid in legal expenses for patent
infringement. The 2022 year end cash position also includes the proceeds after
expenses of the 2021 capital raise (£2.6 million net of expenses) and cash
receipts following the exercise of employee share options (£0.4 million).
In addition, the Board anticipates that the Company will be in receipt of a
Federal Government R&D tax rebate of approximately A$2.0 million, with
these funds expected to be received before the end of the current calendar
year. The Company has secured litigation funding, subject to the completion of
due diligence and continues to explore options to use a debt facility to fund
the Company's growth. However, in the current climate the Board considers that
many available debt-funding options are too expensive. The Company does have a
revolving line of credit secured by the R&D tax rebate.
The current sales pipeline** has grown to over US$60m with many of the
opportunities being converted to sales orders. Total product sales revenue for
the year to 30 June 2022 was A$5.1 million (2021: A$3.5 million) which
represents a 44% year-on-year increase. This follows a 30% increase in
year-on-year product sales in the previous year. The contributing factors
underlying this increase were sales of DMF and DMT products manufactured by
CAP-XX at Seven Hills and with a small contribution from new product families
recently introduced by the Company. These increases offset the contribution
from Licensing and Royalties which was down from the previous year.
Operational expenditure, excluding the legal costs for patent infringement and
direct costs of the Murata project, increased by 14% from A$5.4 million to
A$6.3 million. The increase in expenditure is primarily attributable to the
transition of engineering staff from the installation and commissioning of the
ex-Murata plant (project expenditure) to operations.
Business Environment
The Board believes that CAP-XX's technology provides a significant competitive
advantage over existing supercapacitor manufacturers such as TDK Corporation,
Skeleton, Eaton, LSMtron, Nippon Chemicon Corporation and other Chinese and
Korean competitors. The Board believes that these companies are unable to
match the CAP-XX technology in terms of thinness, power density, energy
density and reliability. Most of the Company's competitors only manufacture
higher-capacity cylindrical cells used in large package modules and focus on
applications where the combination of thinness, energy density and power
density are not important considerations for the customer. These competitor
products usually prove unsuitable for the various markets collectively
labelled the Internet of Things (IoT) market, which is the key area that
CAP-XX is targeting with the former Murata products and CAP-XX's existing
prismatic products.
As reported previously, IoT applications, one of the fastest growing segments
of the electronics market, provide one of the greatest opportunities for
CAP-XX's products. Driven by customer requests, manufacturers are constantly
moving to new wireless protocols and adding to the functions and applications
available on IoT enabled devices. Some of these new functions require high
electrical power within the actual IoT device. Examples are e-locks, drug
dispensing, facial recognition, and haptic feedback. Other devices are powered
by energy harvesting and are battery-less. Others use low power batteries such
as 3 Volt coin cell batteries. All of this means that power management
continues to be an increasingly important consideration. The other important
factor is size, as devices have tended to become smaller whilst their
electrical power demands have increased. The Company continues to be
successful in winning new business from a range of these markets, such as
industrial actuators, e-locks, agricultural sensors, wireless displays,
smart-meters, payment and handheld terminals, medical wearables, automotive
dashcams and communication systems.
In the past, CAP-XX has faced competition in various markets from cheaper
cylindrical supercapacitors where our thin form factor, high power and long
life are not valued as highly as lower initial cost components from
competitors. To counteract this, the Company released a range of cylindrical
cells. Modest sales revenue for these products was first recorded during FY
2019. Since then, sales have continued to grow strongly, with the Company
being successful in winning significant large volume orders. Several new large
volume opportunities are currently being evaluated by customers.
As previously articulated, automotive applications such as TruckStart,
Stop-Start systems, regenerative energy capture or KERS (Kinetic Energy
Recovery Systems), distributed power, hybrid electric vehicles and electric
vehicles still present substantial opportunities for large supercapacitors. A
number of CAP-XX's competitors are active in these markets, and the Board
believes that the Company has significant advantages over the competition in
certain applications. However, because of the significant resources that each
project requires and the long time-lag between product evaluation and mass
production, the Board took the decision to focus the Company's engineering
resources on IoT applications and take a lower risk, longer-term, more patient
approach to the opportunities for large supercapacitors with the focus being
on a small number of key automotive projects. Consistent with this strategy,
the Board took the opportunity to sign an exclusive distribution agreement
with Ioxus's new owners who have a suite of qualified automotive products
ready to market. These products are sold under the CAP-XX brand and are known
as CAPMOD and TruckStart. CAPMOD is a range of large high voltage modules
intended to support a multitude of large automotive, transportation and
renewable energy applications such as wind farms and solar installations.
TruckStart is a relaunched version of our previous truckstart product.
During the year we also launched a new range of Lithium-ion supercapacitors
which is a hybrid device- part lithium ion and part supercapacitor - that have
excellent cycle life and very low leakage current. This makes these products
an attractive alternative to lithium-ion batteries and are used where high
power and long life are needed.
Opportunities
The overall direct sales pipeline** for CAP-XX's supercapacitors continues to
grow and is now in excess of US$60m in sales per annum up from US$50 million
the year before. Within this pipeline the largest end market applications are
IoT devices, medical devices, asset tracking and wearables. While many
applications are strictly confidential and cannot be disclosed, the Company
has, over the last year, announced details of several customers' applications
with the approval of those customers.
Our customers' markets are constantly evolving as new products and
technologies threaten the incumbents. In this environment, CAP-XX needs to
always remain alert and be flexible to changing business conditions and market
needs. This creates opportunities to offer products that address what our
markets want.
CAP-XX is continuing to refine the products that it offers for the various IoT
applications and other markets. The Company has introduced the Murata range of
DMF and DMT thin prismatic supercapacitors to address the space-constrained
and/or power-hungry needs of many IoT products. These products are already
being shipped from the Company's new Seven Hills factory. The Company plans to
commission and commence shipments of the very thin DMH supercapacitor around
Q3 2023. At only 400 microns in thickness, the Board believes that this is the
best performing supercapacitor in its class.
The Company also plans to use its 3 Volt chemistry in the DMF products made at
Seven Hills. The Company had previously planned to produce 3 Volt products at
NTS in Malaysia but the ongoing disruptions and travel restrictions caused by
COVID made this impractical. The first 3 Volt products from Seven Hills are
expected to ship to customers by the end of this calendar year. The
development of the 3 Volt product has been targeted to meet demand for small,
inexpensive, energy efficient power solutions for thin wearables, key FOBs and
other IoT devices, especially those using 3 Volt coin cell lithium ion
batteries, such as the CR2032 battery.
In the future, there is an opportunity to migrate this same 3 Volt technology
into larger prismatic supercapacitors, automotive modules and other products
for high-energy, high-power applications. As already noted, CAP-XX is
concentrating on a small number of automotive opportunities. To further
increase the Company's likelihood of success, the Board is investigating a
strategy of partnering with automotive and military Tier-1/Tier-2 suppliers,
through either a new license agreement or a joint venture, to supply the
automotive markets. The Board believes that such partnerships will be
beneficial for all parties involved.
The Company intends to continue using its intellectual property to develop
additional substantial and recurring income. A significant benefit of the
existing licencing agreements is that they validate CAP-XX's technology
leadership in the field of supercapacitors and energy storage, and the
potential for supercapacitors as a mainstream consumer electronics technology.
Our licensees' product lines and sales activities are also increasing our
exposure to markets and customers that were previously beyond the Company's
reach. It is also important to note that the strategy of our licensees is to
offer product ranges targeted at certain end markets. As such, none of them
meet the product type or size requirements for all markets and all
applications, leaving scope for CAP-XX to supply these other markets directly
using products made by CAP-XX and its contract manufacturers.
There remain several additional opportunities for the Company to pursue new
licencing arrangements. Some of these are at differing stages of discussions.
Others may require the Company to enforce its patent rights through court
action, as already noted in the Chairman's statement.
Strategies for Growth
Given the increasing levels of market interest in CAP-XX's technology and its
high-performance supercapacitors, the Company believes that the IoT markets,
in particular, offer significant opportunities for growth and to reach the key
strategic objective of CAP-XX achieving profitability and positive cashflow.
The Company continues to engage in discussions aimed at securing business in
the IoT space with a significant number of global original equipment
manufacturers (OEMs). CAP-XX is strengthening its relationships with these
organisations and has regular engineering meetings with design teams,
manufacturing groups and contract manufacturers. The Company is unable to
comment on specific clients, but the Board is pleased with the overall
progress and is confident that the available market for supercapacitors is
increasing as manufacturers become more familiar with the technology.
Over the last year, the Company has aligned its marketing activities to
specifically focus on a number of different IoT markets, such as asset
tracking, automotive, e-locks, medical devices, handheld terminals, smart
meters, wearables and wireless sensors. The efforts to date have produced a
significant increase in visits to the Company's webpages and sales enquiries.
The Board expects for this growth to continue. CAP-XX's strong environmental
credentials, which have been recognised by the London Stock Exchange providing
the Company with its Green Economy Mark, are consistent with this strategy.
The Company will continue to monitor new opportunities to increase its sales,
through its current distributors, via direct sales to customers and new
product offerings. These offerings may take the form of complementary energy
storage devices and modules. The Company is also increasing the size of its
own sales force and adding new distributors to ensure that global coverage and
penetration is maximised.
It is important that the Company is able to benefit from the large investment
made over many years in building its patent portfolio. Where third parties are
found to be infringing these patent rights, the Company has and will continue
to vigorously defend its rights, even if this means pursuing legal action as
it did successfully against Ioxus.
Research and Development
The markets in which the Company operates are competitive and are
characterised by rapid technological change. CAP-XX has a strong competitive
position in prismatic supercapacitors in all of its target markets as a result
of its capability to produce supercapacitors with a high energy and power
density in a small, conveniently sized, flat package. CAP-XX's devices are
also lightweight, work over a broad temperature range and have an operating
lifetime measured in years.
To stay ahead of the competition, the Company is developing a strong pipeline
of new products to follow the DMH and 3 Volt products already discussed.
CAP-XX's R&D efforts are focused on a mix of short, medium and long-term
opportunities, covering new products, cost reductions and improved product
performance. CAP-XX has a research facility within its Seven Hills site in
Sydney, Australia, where a team of six scientists work to maintain CAP-XX's
leading technology position in electrodes, separators and electrolyte
materials and their assembly into supercapacitor devices. This team is
supported by 12 engineers. During 2021, significant progress has been made in
a number of key areas including improvements on the ex-Murata coating, DMF and
DMT lines, new cell chemistries, improving the life of cells, developing new
packaging concepts, reducing the cost per cell and developing new electronics
to optimise the performance of the Company's modules. CAP-XX has also signed
numerous collaboration agreements with leading research institutions, such as
the announced joint venture agreement with Ionic Industries, where work to
progress the conditions precedent continues, whilst the Company's Scientific
Advisory Board provides CAP-XX with clear direction on commercially relevant
technologies for its ongoing R&D programme.
The Company's success depends on its ability to protect and prevent any
infringements of its intellectual property. To protect this important asset,
the Company has considerable intellectual property embodied in its patents
covering the design, manufacture and use of its high-performance
supercapacitors. The CAP-XX patent portfolio currently consists of seven
patent families, with seven granted national patents with an additional two
patent applications pending in various jurisdictions. The Company's
intellectual property strategy has been to build value by focusing on
opportunities to capture market share and exclude competition, with an IP
portfolio capable of generating licensing revenue. The Directors believe that
comprehensive embodiments and interlocking patent groups, combined with a
'quick to file, quick to abandon' policy, have given the Company a strong and
focused IP portfolio.
Outlook
The major focus for CAP-XX continues to be to become profitable and cashflow
positive as soon as possible by increasing product sales from the newly
installed former Murata production equipment, other new product families the
Company recently launched and new products and intellectual property the
Company is currently developing.
CAP-XX Limited
Consolidated statement of profit or loss
For the year ended 30 June 2022
Consolidated
2022 2021
Currency: Australian Dollars Notes $ $
Revenue from continuing operations 1 5,557,260 4,100,853
Cost of sales 2 (3,032,921) (2,341,474)
Gross Profit 2,524,339 1,759,379
Other revenue 1 3,894 522
Other income 3 2,272,442 3,435,402
General and administrative expenses (4,478,616) (2,385,905)
Process and engineering expenses (1,222,409) (576,825)
Selling and marketing expenses (886,494) (902,950)
Research and development expenses (1,572,421) (1,484,203)
Project expenses - (2,766,537)
Share based payments expense (1,133,399) (105,113)
Other expenses 4 (446,196) (504,588)
Loss before income tax (4,938,860) (3,530,818)
Income tax benefit - -
Net loss for the year (4,938,860) (3,530,818)
Loss attributable to owners of CAP-XX Limited (4,938,860) (3,530,818)
Earnings per share for loss attributable to the ordinary equity holders of the Cents Cents
Company
Basic loss per share 5 (1.0) (0.8)
Diluted loss per share 5 (1.0) (0.8)
CAP-XX Limited
Consolidated statement of comprehensive income
For the year ended 30 June 2022
Consolidated
2022 2021
Currency: Australian Dollars Notes $ $
Loss for the year (4,938,860) (3,530,818)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (53,490) 38,766
Other comprehensive loss for the year, net of tax (53,490) 38,766
Total comprehensive loss for the year attributable to owners of CAP-XX Limited (4,992,350) (3,492,052)
CAP-XX Limited
Consolidated statement of financial position
As at 30 June 2022
Consolidated
June 30, 2022 June 30, 2021
Currency: Australian Dollars Notes $ $
ASSETS
Current assets
Cash and cash equivalents 1,614,714 182,601
Receivables 1,116,902 802,299
Inventories 1,836,148 1,066,265
Other 2,143,011 3,196,976
Total current assets 6,710,775 5,248,141
Non-current assets
Property, plant and equipment 2,696,120 3,039,208
Right of use assets 2,549,276 2,906,473
Other 204,808 204,808
Total non-current assets 5,450,204 6,150,489
Total assets 12,160,979 11,398,630
LIABILITIES
Current liabilities
Payables 1,281,367 980,708
Lease liabilities 193,261 165,852
Provisions 868,096 734,051
Interest bearing liabilities - 1,400,000
Total current liabilities 2,342,724 3,280,611
Non-current liabilities
Lease liabilities 2,218,062 2,414,646
Provisions 757,245 746,734
Total non-current liabilities 2,975,307 3,161,380
Total liabilities 5,318,031 6,441,991
Net assets 6,842,948 4,956,639
EQUITY
Contributed equity 114,511,790 108,766,530
Reserves 7,513,773 6,433,864
Accumulated losses (115,182,615) (110,243,755)
TOTAL EQUITY 6,842,948 4,956,639
Consolidated statement of cash flows
For the year ended 30 June 2022
Consolidated
2022 2021
Currency: Australian Dollars $ $
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax) 5,122,173 3,892,287
Payments to suppliers and employees (inclusive of goods and services tax) (10,604,235) (10,044,227)
(5,482,062) (6,1551,940)
Tax credit received 3,200,660 3,142,561
Grants Received - 387,902
Interest paid on lease liabilities (290,873) (229,010)
Interest received 3,894 522
Net cash (outflow) from operating activities (2,568,381) (2,849,965)
Cash flows from investing activities
Payments for property, plant and equipment (189,902) (1,708,614)
Contributions from lessor 163,000
Net cash (outflow) from investing activities (26,902) (1,708,614)
Cash flows from financing activities
Proceeds from issue of shares (net of costs) 5,650,531 613,224
(Repayment)/ Proceeds from borrowings (1,400,000) 1,329,530
Principal repayments for lease liability (169,175) (134,822)
Net cash inflow from financing activities 4,081,356 1,806,932
Net increase/(decrease) in cash and cash equivalents 1,486,073 (2,751,647)
Cash and cash equivalents at the beginning of the financial year 182,601 2,895,482
Effects of exchange rate changes on cash and cash equivalents (53,960) 38,766
Cash and cash equivalents at the end of the financial year 1,614,714 182,601
Notes to the financial statements
Basis of preparation
The financial information included in this announcement does not constitute
statutory accounts within the meaning of the Australian Corporations Act
2001. Whilst the financial information has been computed in accordance with
Australian equivalents to International Financial Reporting standards and
other authoritative pronouncements of the Australian Accounting Standards
Board, Urgent Issues Group Interpretations and the Corporations Act 2001, this
announcement does not itself contain sufficient information to comply with
those requirements.
Note 1 Revenue Consolidated
2022 2021
$ $
Sale of Goods 5,069,186 3,516,344
License Fees & Royalties 488,074 584,509
5,557,260 4,100,853
Other revenue
Interest 3,894 523
3,894 523
Note 2 Cost of Sale of Goods Consolidated
2022 2021
$ $
Direct materials and labour 2,685,204 2,155,076
Indirect manufacturing expenses 347,717 186,398
3,032,921 2,341,474
Note 3 Other income Consolidated
2022 2021
$ $
Foreign Exchange Gains - (net) -
R&D Tax Incentive 199,308 3,047,500
2,073,134
Miscellaneous Income - 387,902
2,272,442 3,435,402
Note 4 Other Expenses Consolidated
2021 2020
$ $
Provision for Withholding Tax Diminution 31,268 16,615
Foreign Exchange Losses - (net) - 24,923
Provision for expected credit loss 120,484 103,664
Provision for make good on premises - -
Interest - lease liabilities 225,151 232,666
Interest - R&D Advance 69,293 126,720
446,196 504,588
Note 5 Loss per share
Consolidated
2022 2021
$ $
Net loss (4,938,860) (3,530,818)
Loss per share - undiluted ($0.010) ($0.008)
Weighted Average Shares in Issue during the year 502,535,625 449,700,290
Note 6 AASB16 Reconciliation
Consolidated
2022 2021
$ $
Balance from previous year 2,580,498 2,659,829
Additions - 56,491
Interest on lease liabilities 221,580 229,010
Repayments on lease liabilities (390,755) (364,832)
Balance as at 30 June 2021 2,411,323 2,580,498
Consolidated
Note 7 EBITDA Calculation
2022 2021
$ $
Net loss - Reported (4,938,860) (3,530,818)
Depreciation 726,155 574,779
Interest Expense 294,444 359,386
Share Based payments 1,133,399 105,113
Interest Income (3,894) (522)
EBITDA (2,788,756) (2,492,062)
Net Project Expenditure - 1,563,093
Bad Debt Provision 210,000
Patent Infringement expense 2,338,322 315,421
Adjusted EBITDA (450,434) (403,548)
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