Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2021 | Apr. 19, 2022 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F/A | |
Amendment Flag | true | |
Amendment Description | 2 | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38018 | |
Entity Registrant Name | Integrated Media Technology Ltd | |
Entity Central Index Key | 0001668438 | |
Entity Incorporation, State or Country Code | C3 | |
Entity Address, Address Line One | Level 7 | |
Entity Address, Address Line Two | 420 King William Street | |
Entity Address, City or Town | Adelaide | |
Entity Address, Country | AU | |
Entity Address, Postal Zip Code | SA 5000 | |
Country Region | +61 | |
City Area Code | 8 | |
Local Phone Number | 8233 0881 | |
Title of 12(b) Security | Ordinary Shares | |
Trading Symbol | IMTE | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Document Accounting Standard | International Financial Reporting Standards | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,753,331 | |
Contact Personnel Email Address | corporate@imtechltd.com | |
Auditor Firm ID | 3487 | |
Auditor Name | Audit Alliance LLP | |
Auditor Location | Singapore | |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | Level 7 | |
Entity Address, Address Line Two | 420 King William Street | |
Entity Address, City or Town | Adelaide | |
Entity Address, Country | AU | |
Entity Address, Postal Zip Code | SA 5000 | |
Contact Personnel Name | Xiaodong Zhang |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Revenue, net | $ 193,113 | $ 1,744,629 | $ 1,275,425 |
Cost of sales | (149,447) | (1,311,566) | (1,008,821) |
43,666 | 433,063 | 266,604 | |
Interest income | 18,864 | 6,197 | 115,762 |
Gain on disposal of plant and equipment | 212,195 | ||
(Loss)/gain on fair value change in derivative financial instruments | (842,463) | 2,312,197 | 127,551 |
Other income | 335,807 | 82,561 | 807,831 |
(444,126) | 2,834,018 | 1,529,943 | |
Expenses | |||
Employee benefit expenses | (1,613,922) | (2,212,643) | (4,034,378) |
Depreciation and amortization expenses | (1,326,811) | (2,078,762) | (3,174,784) |
Professional and consulting expenses | (2,376,038) | (1,373,907) | (2,019,970) |
Travel and accommodation expenses | (91,385) | (40,895) | (281,895) |
Office expenses and supplies | (142,482) | (310,360) | (312,343) |
Rental costs | (116,406) | (126,382) | (637,321) |
Other operating expenses | (378,500) | (480,015) | (794,036) |
Finance costs | (2,000,952) | (2,100,272) | (1,561,625) |
Provision for impairment loss of goodwill | 4,486,301 | ||
Reversal/ (Provision) of allowance for inventory obsolescence | 9,439 | 17,671 | (799,871) |
Provision for bad debt | (14,390) | (58,932) | |
Gain/ (loss) on disposal of subsidiaries | 1,998,269 | (28,990) | |
Plant and equipment written off | (110) | ||
Provision for impairment loss on intangible assets | (3,459,340) | ||
Development projects written off | (930,356) | ||
Exchange loss | (88,322) | (194,383) | (10,296) |
Total expenses | (6,141,500) | (13,377,676) | (18,112,820) |
Loss before income tax | (6,585,626) | (10,543,658) | (16,582,877) |
Income tax expense | (117,322) | ||
Loss for the year | (6,585,626) | (10,543,658) | (16,700,199) |
Items that may be re-classified subsequently to profit or loss: | |||
Fair value through other comprehensive income | 62,500 | ||
Exchange differences on translation of financial statements of overseas subsidiaries | 158,547 | 55,673 | 157,471 |
Other comprehensive income for the year, net of tax | 221,047 | 55,673 | 157,471 |
(6,364,579) | (10,487,985) | (16,542,728) | |
Loss for the year attributable to: | |||
Equity shareholders of Integrated Media Technology Limited | (5,771,510) | (10,034,077) | (15,646,147) |
Non-controlling interests | (814,116) | (509,581) | (1,054,052) |
(6,585,626) | (10,543,658) | (16,700,199) | |
Total comprehensive loss for the year attributable to: | |||
Equity shareholders of Integrated Media Technology Limited | (5,830,540) | (9,885,412) | (15,540,317) |
Non-controlling interests | $ (534,039) | $ (602,573) | $ (1,002,411) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - AUD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of financial position [abstract] | ||
Cash and cash equivalents | $ 274,767 | $ 2,194,084 |
Inventories | 187,401 | |
Right-of-use assets | 513,942 | |
Trade and other receivables | 486,121 | 1,164,605 |
Other assets | 2,006,636 | 2,089,897 |
Total Current Assets | 3,281,466 | 5,635,987 |
Plant and equipment, net | 6,441,734 | 7,317,678 |
Other assets - equipment deposits | 11,459,195 | |
Financial asset at fair value through other comprehensive income | 562,500 | |
Intangible assets and goodwill | 1,900,589 | |
Right-of-use assets | 1,444,927 | |
Total Non-Current Assets | 21,808,945 | 7,317,678 |
TOTAL ASSETS | 25,090,411 | 12,953,665 |
Trade and other liabilities | 2,424,717 | 3,589,164 |
Amounts due to related companies | 247,406 | 237,674 |
Amount due to holding company | 532,718 | |
Lease liabilities | 425,567 | |
Derivative financial instruments | 2,321,003 | |
Convertible promissory notes | 4,311,416 | |
Total Current Liabilities | 9,730,109 | 4,359,556 |
Lease liabilities | 1,403,932 | |
Derivative financial instruments | 1,478,540 | |
Deferred tax liabilities | 13,668 | |
Convertible promissory notes | 2,196,049 | |
Total Non-Current Liabilities | 1,403,932 | 3,688,257 |
TOTAL LIABILITIES | 11,134,041 | 8,047,813 |
NET CURRENT (LIABILTIES) / ASSETS | (6,448,643) | 1,276,431 |
NET ASSETS | 13,956,370 | 4,905,852 |
Issued capital (no par value, 9,329,420 and 6,513,671 ordinary shares issued and outstanding as of December 31, 2021 and 2020, respectively) | 48,144,406 | 32,089,997 |
Foreign currency translation reserve | 762,348 | 883,878 |
Other reserves | 62,500 | 2,704,452 |
Accumulated losses | (37,169,358) | (34,102,300) |
TOTAL EQUITY | $ 13,956,370 | $ 4,905,852 |
Ordinary shares issued | 9,329,420 | 6,513,671 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of financial position [abstract] | ||
Number of shares issued | 9,329,420 | 6,513,671 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - AUD ($) | Issued capital [member] | Accumulated other comprehensive income [member] | Reserve of change in value of foreign currency basis spreads [member] | Other reserves [member] | Non-controlling interests [member] |
Balance as of December 31, 2020 and as of January 1, 2021 at Dec. 31, 2018 | $ 18,902,029 | $ (10,676,713) | $ 629,383 | $ 4,959,089 | $ 2,807,963 |
IfrsStatementLineItems [Line Items] | |||||
Loss for the year | (15,646,147) | (1,054,052) | |||
Other comprehensive income for the year, net of tax | 105,830 | 51,641 | |||
Total comprehensive loss for the year | (15,646,147) | 105,830 | (1,002,411) | ||
Transfer convertible bond reserves (Note 26 (b)) | 535,948 | (535,948) | |||
Ending balance, value at Dec. 31, 2019 | 18,902,029 | (25,786,912) | 735,213 | 4,423,141 | 1,805,552 |
IfrsStatementLineItems [Line Items] | |||||
Loss for the year | (10,034,077) | (509,581) | |||
Other comprehensive income for the year, net of tax | 148,665 | (92,992) | |||
Total comprehensive loss for the year | (10,034,077) | 148,665 | (602,573) | ||
Transfer from other Reserve to Accumulated Loss | 1,718,689 | (1,718,689) | |||
Acquisition of subsidiary | 3,888,027 | ||||
Disposal of subsidiaries | (1,761,181) | ||||
Issuance of new ordinary shares for cash (Note 25(b)) | 7,121,283 | ||||
Issuance of new ordinary shares - conversion of debt (Note 25(b)) | 4,122,562 | ||||
Issuance of new ordinary shares - services (Note 25(b)) | 23,249 | ||||
Issuance of new ordinary shares - acquisition (Note 25(b)) | 2,060,000 | ||||
Legal expenses in respect of issuance of shares (Note 25(b)) | (139,126) | ||||
Ending balance, value at Dec. 31, 2020 | 32,089,997 | (34,102,300) | 883,878 | 2,704,452 | 3,329,825 |
IfrsStatementLineItems [Line Items] | |||||
Loss for the year | (5,771,510) | (814,116) | |||
Other comprehensive income for the year, net of tax | (121,530) | 280,077 | |||
Total comprehensive loss for the year | (5,771,510) | (121,530) | 62,500 | (534,039) | |
Transfer from other Reserve to Accumulated Loss | 2,704,452 | (2,704,452) | |||
Acquisition of subsidiary | 983,928 | ||||
Disposal of subsidiaries | (1,623,240) | ||||
Issuance of new ordinary shares for cash (Note 25(b)) | 16,054,409 | ||||
Fair value through other comprehensive income | 62,500 | ||||
Ending balance, value at Dec. 31, 2021 | $ 48,144,406 | $ (37,169,358) | $ 762,348 | $ 62,500 | $ 2,156,474 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of cash flows [abstract] | |||
Loss before income tax | $ (6,585,626) | $ (10,543,658) | $ (16,582,877) |
Depreciation and amortization | 1,326,811 | 2,078,762 | 3,174,784 |
Impairment loss of trade receivables | 14,390 | 58,932 | 11,052 |
Provision for inventories obsolescence | (9,439) | (17,671) | 799,871 |
Loss / (gain) on disposal of subsidiaries | (1,998,269) | 28,990 | |
Gain on disposal on plant and equipment | (212,195) | ||
Plant and equipment written off | 110 | ||
Provision for impairment loss on intangible assets | 3,459,340 | ||
Development projects written off | 930,356 | ||
Provision for impairment loss of goodwill | 4,486,301 | ||
Net cash (outflows) / inflows from changes in working capital | (719,193) | (2,186,276) | 1,783,050 |
Net cash used in operating activities | (7,971,326) | (6,191,115) | (6,540,014) |
Capital injection from minority shareholders | 542,887 | 1,920,153 | |
Payments for acquisition of plant and equipment | (71,109) | (7,236,260) | (1,223,028) |
Payments for other assets - equipment deposits | (11,459,195) | ||
Payments for intangible assets | (624,095) | (7,283) | |
Payments for development projects | (125,520) | (598,306) | |
Payments for investment in financial assets | (500,000) | ||
Disposal of subsidiaries, net of cash disposed of | (32,927) | 855,506 | |
Net cash used in investing activities | (12,144,439) | (4,586,121) | (1,828,617) |
Advances from of amounts due to related companies | 840,509 | 3,954,640 | |
Advance from other liabilities | 211,567 | 2,610,091 | |
Advance from / (repayment) to holding company | (562,201) | 501,343 | |
Fair value change in derivative financial instruments | 842,463 | (2,312,197) | (127,551) |
Interest income from ultimate holding company | (115,678) | ||
Interest received from ultimate holding company | 18,714 | ||
Interest accrued for lease liabilities | 28,371 | 32,526 | 109,675 |
Finance costs for convertible bonds | 1,895,371 | 1,693,890 | 1,316,702 |
Interest paid for convertible bonds | (185,469) | (209,392) | |
Proceeds from bank borrowings | 930,334 | ||
Repayment of bank borrowings | (840,285) | ||
Repayment for convertible bonds | (4,668,195) | ||
Payment of lease liabilities | (138,156) | (320,851) | (573,010) |
Proceeds from issuance of convertible promissory notes | 4,913,100 | ||
Net Proceeds from issuance of ordinary shares | 16,054,409 | 13,187,968 | |
Net cash provided by financing activities | 18,120,257 | 13,392,848 | 7,575,583 |
Net increase / (decrease) in cash and cash equivalents | (1,995,508) | 2,615,612 | (793,048) |
Effect of exchange rate changes on cash and cash equivalents | 76,191 | (254,770) | 619,705 |
Cash and cash equivalents at the beginning of financial year | 2,194,084 | (166,758) | 6,585 |
Cash and cash equivalents at the end of financial year | 274,767 | 2,194,084 | (166,758) |
Cash and bank balances | 274,767 | 2,194,084 | 735,724 |
Bank overdraft | $ (902,482) |
NOTE 1. REPORTING ENTITY
NOTE 1. REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 1. REPORTING ENTITY | NOTE 1. REPORTING ENTITY The consolidated financial report covers the entity of Integrated Media Technology Limited ("IMTE") and its controlled entities for the years ended December 31, 2021, 2020 and 2019 which were authorized for issue by the Board of Directors on April 28, 2022. IMTE is a for-profit public company limited by shares, incorporated and domiciled in Australia whose shares are publicly traded on the NASDAQ Capital Markets. IMTE is an investment holding company and its subsidiaries carry out the business of the Group in Australia, Korea, Hong Kong and China. The Company and its subsidiaries are referred to as the "Group". Going Concern The Group's consolidated financial statements are prepared using International Financial Reporting Standards as issued by the International Accounting Standards Board applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Group has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of December 31, 2021, the Group had accumulated losses of A$37,169,358 and generated a net loss in 2021 of A$6,585,626 and had net current liabilities of A$6,448,643. The ability of the Group to continue as a going concern is dependent on the Group obtaining adequate capital to fund operating losses until it becomes profitable. If the Group is unable to obtain adequate capital, it could be forced to cease or reduce its operations. In order to continue as a going concern, the Group will need, among other things, additional capital resources. For the year ended December 31, 2021, the Group was successful in raising a total of approximately US$12.3 million through equity financing for the repayment of debts and for working capital in the Group. Subsequent to the balance sheet date from January 2022 to the date of this report, the Group has raised a total of US$15.2 from debt and equity fund raising. The funds raised are to be used for the build out of infrastructure, purchase of equipment and working capital. The Group will need to continue to raise funds through the sale of its equity securities and issuance of debt instruments to obtain additional operating capital. The Group is and will continue to be dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing until the Group can earn revenue and realize positive cash flow from its operations. There are no assurances that the Group will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Group will continue as a going concern. Based on the Group's current rate of cash outflows, cash on hand and proceeds from the recent sales of equity securities and convertible notes after the year ended, management believes that its current cash may not be sufficient to meet the anticipated cash needs for working capital for the next 12 months for the investments in the switchable glass operations. The Group's plans with respect to its liquidity issues include, but are not limited to, the following: 1) Continue to raise financing through the sale of its equity and/or debt securities; 2) Continue developing its business, products and services and seek strategic partnerships and cooperative arrangement to grow our revenue and profitability. The Group is currently evaluating additional equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Group can consummate such a transaction, or consummate a transaction at favorable pricing. The ability of the Group to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. The consolidated financial statements of the Group are presented in Australian Dollars ("A$"), unless otherwise stated. |
NOTE 2. BASIS OF ACCOUNTING
NOTE 2. BASIS OF ACCOUNTING | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 2. BASIS OF ACCOUNTING | NOTE 2. BASIS OF ACCOUNTING The consolidated financial statements present general purpose financial report that have been prepared in accordance with Australian Accounting Standards ("AASBs"), including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 as appropriate for for-profit entities. The consolidated financial statements also comply with International Financial Reporting Standards ("IFRSs") as adopted by the International Accounting Standards Board. |
NOTE 3. SIGNIFICANT ACCOUNTING
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies adopted by the Group in the preparation of the consolidated financial statements. The accounting policies have been consistently applied, unless otherwise stated. (a) Basis of Preparation The consolidated financial statements have been prepared on the accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. (b) Principles of Consolidation The consolidated financial statements comprise the financial statements of IMTE and its subsidiaries as at December 31, 2021 (the "Group"). Subsidiaries are consolidated from the date on which control is transferred to the Group and are deconsolidated from the date that control ceases. A list of the controlled entities as at December 31, 2021 is disclosed in Note 23 to the consolidated financial statements. All inter-company balances and transactions between entities within the Group, including any unrealized profits or losses, have been eliminated upon consolidation. Non-controlling interest in the results and equity of subsidiaries are shown separately in the consolidated statements of profit or loss and other comprehensive income or loss and consolidated statements of financial position of the Group. (c) Business Combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred, except if related to the issue of debt or equity securities. The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair value of consideration transferred, (b) the recognized amount of any non-controlling interest in the acquiree, and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. Any contingent consideration to be transferred by the acquirer is recognized at acquisition-date fair value. Subsequent adjustments to consideration are recognized against goodwill only to the extent that they arise from new information obtained within the measurement period (a maximum of 12 months from the acquisition date) about the fair value at the acquisition date. All other subsequent adjustments to contingent consideration classified as an asset or a liability are recognized in the consolidated statement of profit or loss. (d) Current and deferred income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognised in profit or loss except to the extent that they relate to items recognised in other comprehensive income / loss or directly in equity, in which case the relevant amounts of tax are recognised in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be available against which the asset can be utilised, are recognised. Future taxable profits that may support the recognition of deferred tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits, that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and are expected to reverse in a period, or periods, in which the tax loss or credit can be utilised. The limited exceptions to recognition of deferred tax assets and liabilities are those temporary differences arising from goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a business combination), and temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Company or the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: (i) in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously; or (ii) in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: - the same taxable entity; or - different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realized and settle simultaneously. (e) Intangible Assets (i) Acquired both separately and from a business combination Purchased intangible assets are initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are measured at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at each financial year end. (ii) Autostereoscopic 3D display technologies and knowhow The autostereoscopic 3D display technologies and knowhow acquired in the business combination is measured at fair value as at the date of acquisition. These costs are amortized over the estimated useful life of 8 years and are tested for impairment where an indicator of impairment exists. The useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis. Please refer to Note 15 for impairment review of these autostereoscopic 3D display technologies and knowhow. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (iii) Research and development costs Development projects in the consolidated statements of financial position represent the development costs directly attributable to and incurred for internal technology projects of the Group. An intangible asset arising from development expenditure on an internal technology project is recognised and included in development projects only when the Group can demonstrate the technical feasibility of completing the intangible asset or technology so that it will be available for application in existing or new products or for sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development, the ability to measure reliably the expenditure attributable to the intangible asset during its development and the ability to use the tangible asset generated. For labour costs, all research and development member salaries that are directly attributable to the technology project are capitalised. Administrative staff and costs are recognised in the profit or loss instead of capitalising this portion of costs. Following the initial recognition of the development expenditure, the cost model is applied requiring the asset to be carried at cost less any accumulated impairment losses. The amortisation rate of these intangible assets was determined on the basis of the estimated useful life from the time that the relevant asset is taken into use. (iv) Intellectual property Expenditure incurred on patents, trademarks or licenses are capitalized from the date of application. They have a definite useful life and are carried at cost less accumulated amortization. They are amortized using the straight-line method over their estimated useful lives for a period of 8 to 15 years. (v) Computer software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives ranging (2-5 years). Costs associated with maintaining computer software are recognized as an expense when incurred. (f) Inventories Finished goods are stated at the lower of cost and net realizable value on a "first in first out" basis. Cost comprises direct materials and delivery costs, import duties and other taxes. Costs of purchased inventories are determined after deducting rebates and discounts received or receivable. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. (g) Leases The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately. The policy applicable from 1 January 2019 At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. This policy is applied to contracts entered into, on or after 1 January 2019. As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative and-alone prices. However, for the leases of property the Group has elected not to separate lease components and account for the lease and non-lease components as a single lease component. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following: - fixed payments, including in-substance fixed payments; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - amounts expected to be payable under a residual value guarantee; and - the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in property, plant and equipment' and lease liabilities in loans and borrowings' in the statement of financial position. Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Policy applicable before 1 January 2019 For contracts entered into before 1 January 2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether: fulfilment of the arrangement was dependent on the use of a specific asset or assets; and the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or; amounts expected to be payable under a residual value guarantee; and facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) As a lessee In the comparative period, where the Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are recognised as plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the life of the asset, as set out in note 3(k). Impairment losses are accounted for in accordance with an accounting policy as set out in note 3(h). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis unless another method is more representative of the pattern to the (h) Impairment of Assets Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in the case of goodwill, an impairment loss previously recognised no longer exists or may have decreased: - property, plant and equipment (other than properties carried at revalued amounts); - intangible assets; and - goodwill. If any such indication exists, the asset's recoverable amount is estimated. In addition for goodwill, intangible assets that are not yet available for use and intangible assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment. (i) Calculation of recoverable amount The recoverable amount of an asset is the greater of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). (ii) Recognition of impairment losses An impairment loss is recognized in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable) or value in use (if determinable). (iii) Reversals of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited to the asset's carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (i) Trade deposits Trade deposits are payments in advance to suppliers of equipment, products and services, which are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method less impairment losses, except where the effect of discounting would be immaterial. (j) Plant and Equipment Items of plant and equipment are measured at cost less accumulated depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciable amount of all fixed assets are depreciated over their estimated useful lives to the Group commencing from the time the assets is held ready for use. Depreciation is calculated on a straight-line basis to write the net cost of each item of plant and equipment over their expected useful lives. The depreciation rates used for each class of depreciable assets are generally as follows: Class of fixed assets Depreciation rate Leasehold Improvements lesser of 5 years or lease term Office Furniture and Equipment 5-12 years Machinery 5-12 years Gains and losses on disposal are determined by deducting the net book value of the assets from the proceeds of sale and are booked to the profit or loss in the year of disposal. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (k) Foreign Currency Translation (i) Functional and presentation currency Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in Australian Dollars ("A$"), which is the Group's presentation currency. (ii) Transactions and balances Foreign currency transactions during the year are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates ruling at the end of the reporting period. Exchange gains and losses are recognized in profit or loss, except those arising from foreign currency borrowings used to hedge a net investment in a foreign operation which are recognized in other comprehensive income. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the foreign exchange rates ruling at the transaction dates. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated using the foreign exchange rates ruling at the dates the fair value was measured. (iii) Group companies The results of foreign operations are translated into Australian Dollars at the exchange rates approximating the foreign exchange rates ruling at the dates of the transactions. Statement of financial position items, are translated into Australian Dollars at the closing foreign exchange rates at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to profit or loss when the profit or loss on disposal is recognized. For years ended December 31, 2021 and 2020, the comprehensive income was A$762,348 and A$883,878 respectively which was mainly resulted from the translation of the foreign operations in Hong Kong (HK$), China (RMB) and United States (USA) into Australia dollars. The significant monetary items denominated in currencies other than Australia dollars include intangible assets and goodwill, due to related companies, amount due to ultimate holding company, borrowings, convertible bonds and derivative financial instruments. (l) Trade and Other Receivables Trade receivables are recognized at original invoice amounts less an allowance for uncollectible amounts and have repayment terms between 30 and 90 days. Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms. Objective evidence of impairment includes financial difficulties of the debtor, default payments or debts more than 30 days overdue. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated provision. (m) Trade and Other Payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are paid on normal commercial terms. (n) Provisions and Contingent Liabilities Provisions are recognized for other liabilities of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (o) Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to the actual draw-down of the facility, are recognized as an offset against the liability balance and amortized on a straight-line basis over the term of the facility. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in other income or other expenses. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. (p) Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred. The capitalization of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete. (q) Convertible Promissory Note Convertible promissory note that can be converted into ordinary shares at the option of the holder, where the number of shares to be issued is fixed, are accounted for as compound financial instruments, i.e. they contain both a liability component and an equity component. At initial recognition the liability component of the convertible promissory note is measured at fair value based on the future interest and principal payments, discounted at the prevailing market rate of interest for similar non-convertible instruments. The equity component is the difference between the initial fair value of the convertible promissory note as a whole and the initial fair value of the liability component. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion to the allocation of proceeds. The liability component is subsequently carried at amortised cost. Interest expense recognised in profit or loss on the liability component is calculated using the effective interest method. The equity component is recognised in the capital reserve until either the bonds are converted or redeemed. If the note are converted, the capital reserve, together with the carrying amount of the liability component at the time of conversion, is transferred to share capital and share premium as consideration for the shares issued. If the note are redeemed, the capital reserve is released directly to retained profits. (r) Derivative Financial Instruments Derivative financial instruments are recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. (s) Employee Benefits (i) Employee leave entitlements Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the date of the statement of financial position. Employee entitlements to sick leave and maternity leave are not recognised until the time of leave. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (ii) Pension obligations Salaries, annual bonuses, paid annual leave, contributions to defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. (t) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and call deposits with banks or financial institutions and net of bank overdrafts. (u) Revenue Revenue is recognized in accordance with IFRS 15 Revenue from Contracts with Customers. The underlying principle is to recognize revenue when a customer obtains control of the promised goods at an amount that reflects the consideration that is expe |
NOTE 4. REVENUE AND SEGMENT INF
NOTE 4. REVENUE AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 4. REVENUE AND SEGMENT INFORMATION | NOTE 4. REVENUE AND SEGMENT INFORMATION Consolidated December 31, A$ December 31, A$ December 31, A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 3,980 1,427,157 1,273,921 Sales of software and technology solutions - - 1,504 Sales of air- filter products 189,133 317,472 - Total Revenue 193,113 1,744,629 1,275,425 Operating segments have been determined on the basis of reports reviewed by the executive director. The executive director is considered to be the chief operating decision maker of the Group. The executive director considers that the Group has assessed and allocated resources on this basis. The executive director considers that the Group has six operating segments for the year ended December 31, 2021 (2019: three and 2020: four), being (1) the development, sale and distribution of autostereoscopic 3D displays, conversion equipment, software and others, (2) the sale of electronic glass, (3) sale of nano coated plates and air filters, (4) provision of credit risk analysis, (5) IoT and (6) Corporate. Disaggregation of Revenue Timing of transfer of good or services 2021 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 3,980 - 3,980 Sales of air- filter products 189,133 - 189,133 Total Revenue 193,113 - 193,113 2020 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 1,342,444 84,713 1,427,157 Sales of air- filter products 317,472 - 317,472 Total Revenue 1,659,916 84,713 1,744,629 2019 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 1,164,103 109,818 1,273,921 Sales of software and technology solutions 1,504 - 1,504 Total Revenue 1,165,607 109,818 1,275,425 NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) Revenue by geographic location The Group's operations are located in Korea, Hong Kong and China. The following table provides an analysis of the Group's sales by geographical markets based on locations of customers: Consolidated December 31, December 31, December 31, Hong Kong 3,980 1,366,200 1,195,150 China 6,846 60,956 80,275 Korea - 315,034 - USA 104,164 - - Malaysia 78,123 - - Other - 2,439 - 193,113 1,744,629 1,275,425 Non-current assets by geographic location Consolidated December 31, 2021 A$ December 31, 2020 A$ December 31, 2019 A$ Australia 562,500 - - USA 4,599,618 - - Hong Kong 1,946,263 262,626 13,136,585 China 4,138,043 2,139,605 1,580,444 Korea 10,562,521 4,915,447 - 21,808,945 7,317,678 14,717,029 NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) Major customers For the year ended December 31, 2021, the Group has two individual customers (2020 and 2019: 4 and 2 respectively) with revenues comprising more than 10% of Group's revenues and their respective receivables due from these customers are disclosed below: December 31, 2021 December 31, 2020 December 31, 2019 Percentage of Revenue Balance due A$ Percentage of Revenue Balance due A$ Percentage of Revenue Balance due A$ Customer A - - 16.23% - 41.00% - Customer B 53.93% 104,645 - - - - Customer C - - - - 13.00% 116,488 Customer D 40.45% 78,483 - - - - Customer E - - 41.23% 628,621 - - Customer F - - 18.05% 314,892 - - Customer G - - 10.87% 179,338 - - Segment information for the reporting period is as follows: For the year ended December 31, 2021 Development, sale and distribution of 3D displays, conversion equipment, software and others A$ Sales of electronic glass A$ Sales of air- filter products A$ Provision of credit risk analysis A$ IoT A$ Corporate A$ Total A$ Revenue Revenue from operating activities 3,980 - 189,133 - - - 193,113 Interest income 18,859 - - 5 - - 18,864 Fair value change in derivative financial instruments - - - - - (842,463) (842,463) Other income - - - - 39,731 296,076 335,807 Segment revenue 22,839 - 189,133 5 39,731 (546,387) (294,679) Cost of sales 2,721 6,654 140,072 - - - 149,447 Employee benefit expenses 215,757 105,680 - 10,925 550,817 730,743 1,613,922 Depreciation and amortization expenses 109,325 913 1,049,125 - 25,976 141,472 1,326,811 Professional and consulting expenses 5,802 8,772 36,881 307,700 1,179,003 837,880 2,376,038 Travel and accommodation expenses 7,980 65,808 - 10,633 919 6,045 91,385 Other operating expenses 1,534,404 92,035 23,855 66,372 692,327 (1,683,283) 725,710 Provision for obsolence inventory (9,439) - - - - - (9,439) Provision for bad debts - - 14,390 - - - 14,390 (Gain)/ Loss disposal of subsidiaries (6,927,976) - - - - 4,929,707 (1,998,269) Finance costs 16,763 60,448 3,009 - (33,335) 1,954,067 2,000,952 Segment expenses (5,044,663) 340,310 1,267,332 395,630 2,415,707 6,916,631 6,290,947 Segment operating (loss) / profit 5,067,502 (340,310) (1,078,199) (395,625) (2,375,976) (7,463,018) (6,585,626) Segment assets 2021 - 15,645,858 6,417,042 2,049,261 767,670 210,580 25,090,411 Segment liabilities 2021 - (1,737,509) (457,741) (808,980) (287,802) (7,842,009) (11,134,041) - 13,908,349 5,959,301 1,240,281 479,868 (7,631,429) 13,956,370 NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) For the year ended December 31, 2020 Development, sale and distribution of 3D displays, conversion equipment, software and others A$ Sales of air- filter products A$ Consultancy services A$ Corporate A$ Total A$ Revenue Revenue from operating activities 1,427,157 317,472 - - 1,744,629 Interest income 6,197 - - - 6,197 Fair value change in derivative financial instruments - - - 2,312,197 2,312,197 Other income 82,561 - - - 82,561 Segment revenue 1,515,915 317,472 - 2,312,197 4,145,584 Cost of sales 1,155,006 156,560 - - 1,311,566 Employee benefit expenses 1,570,626 - 241,914 400,103 2,212,643 Depreciation and amortization expenses 1,897,243 179,144 2,307 68 2,078,762 Professional and consulting expenses (116,977) - 634,186 856,698 1,373,907 Travel and accommodation expenses 24,436 - 2,246 14,213 40,895 Other operating expenses 734,523 1,196 40,476 334,945 1,111,140 Provision for bad debt 58,932 - - - 58,932 Provision for inventory obsolescence (17,671) - - - (17,671) Loss disposal of subsidiaries (22,206,347) - - 22,235,337 28,990 Plant and equipment written off - - - 110 110 Provision for impairment loss on intangible assets 3,459,340 - - - 3,459,340 Development projects written off 930,356 - - - 930,356 Finance costs 408,054 - - 1,692,218 2,100,272 Segment expenses (12,102,479) 336,900 921,129 25,533,692 14,689,242 Segment operating (loss) / profit 13,618,394 (19,428) (921,129) (23,221,495) (10,543,658) Segment assets 2020 2,070,047 6,529,733 2,337,630 2,016,256 12,953,666 Segment liabilities 2020 5,015,497 2,733,042 5,888,659 (5,589,384) 8,047,814 NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) For the year ended December 31, 2019 Development, sale and distribution of 3D displays, conversion equipment, software and others A$ Sales and distribution of audio products* A$ Consultancy services A$ Corporate A$ Total A$ Revenue from operating activities 1,275,425 - - - 1,275,425 Interest income 115,707 - - 55 115,762 Fair value change in derivative financial instruments - - - 127,551 127,551 Other income 807,831 - - - 807,831 Gain on disposal of plant and equipment 212,195 - - - 212,195 Segment revenue 2,411,158 - - 127,606 2,538,764 Cost of sales 1,008,821 - - - 1,008,821 Employee benefit expenses 3,302,504 - 42,573 689,301 4,034,378 Depreciation and amortization expenses 3,166,643 - 7,375 766 3,174,784 Professional and consulting expenses 711,172 - 547,018 761,780 2,019,970 Travel and accommodation expenses 174,914 - 51,171 55,810 281,895 Other operating expenses 1,731,000 - 5,544 17,452 1,753,996 Provision for impairment loss of goodwill - - - 4,486,301 4,486,301 Provision for inventory obsolescence 799,871 - - - 799,871 Finance costs 1,561,625 - - - 1,561,625 Segment expenses 12,456,550 - 653,681 6,011,410 19,121,641 Segment operating (loss) / profit (10,045,392) - (653,681) (5,883,804) (16,582,877) Segment assets 2019 12,498,397 - 29,716 7,418,163 19,946,276 Segment liabilities 2019 16,209,166 - 3,004,589 653,498 19,867,253 * Discontinued in 2019 |
NOTE 5. OTHER INCOME
NOTE 5. OTHER INCOME | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 5. OTHER INCOME | NOTE 5. OTHER INCOME Consolidated December 31, A$ December 31, A$ December 31, A$ Government grant - 82,082 789,083 Sundry income 335,807 479 18,748 335,807 82,561 807,831 |
NOTE 6. FINANCE COSTS
NOTE 6. FINANCE COSTS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 6. FINANCE COSTS | NOTE 6. FINANCE COSTS Consolidated December 31, December 31, December 31, A$ Bank overdraft and borrowing interest - 37,091 84,920 Interest on revolving loan 16,763 228,627 50,328 Interest on operating lease liability 88,818 32,526 109,675 Interest on convertible bonds - 109,811 1,316,702 Interest on convertible promissory notes (Note 22) 1,895,371 1,692,217 - 2,000,952 2,100,272 1,561,625 |
NOTE 7. LOSS BEFORE INCOME TAX
NOTE 7. LOSS BEFORE INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 7. LOSS BEFORE INCOME TAX | NOTE 7. LOSS BEFORE INCOME TAX Consolidated December 31, A$ December 31, A$ December 31, A$ Employee benefit expenses: - Wages and salaries 851,073 1,482,072 3,352,495 - Defined contribution superannuation plan expenses 32,106 83,441 255,708 - Less: Labor cost allocated to development projects - (133,702) (289,126) 883,179 1,431,811 3,319,077 - Executive directors' remuneration 574,371 722,157 683,944 - Non-executive directors' remuneration 156,372 58,675 31,357 730,743 780,832 715,301 Total employee benefit expenses 1,613,922 2,212,643 4,034,378 Depreciation and amortization of non-current assets: - Leasehold improvements 18,978 10,385 44,698 - Office furniture and equipment 118,143 179,140 504,447 - Motor vehicles - - 18,757 - Machinery 1,049,125 172,982 - - Right of use assets 140,565 299,981 488,520 - Intangible assets - 1,416,274 2,118,362 Total depreciation and amortization 1,326,811 2,078,762 3,174,784 Other Expenses: Allowances for bad debts 14,390 58,932 11,052 Rental expense on operating lease 116,406 126,382 637,321 Reversal/(Provision) of allowance for inventory obsolescence (9,439) (17,671) 799,871 Audit and review of financial statements: - statutory audit of the Group in Australia - 25,000 55,157 - statutory audit of the Group in USA 185,272 76,780 435,899 - auditors of the subsidiaries in Hong Kong and China 10,922 - 14,246 - review for other reporting purposes 87,130 18,822 - Total audit and review fees 283,324 120,602 505,302 |
NOTE 8. INCOME TAX (EXPENSE) _
NOTE 8. INCOME TAX (EXPENSE) / CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 8. INCOME TAX (EXPENSE) / CREDIT | NOTE 8. INCOME TAX (EXPENSE) / CREDIT Consolidated December 31, A$ December 31, A$ December 31, A$ Income tax expenses - - - Deferred tax expenses - - (117,322) Income tax expenses - - (117,322) (a) The prima-facie tax on loss before income tax is reconciled to the income tax expense as follows: Consolidated December 31, A$ December 31, A$ December 31, Numerical reconciliation of income tax expense to prima facie tax payable Loss before income tax (6,585,626) (10,543,548) (16,582,877) Income tax expenses on loss before income tax at 30% 1,975,688 3,163,064 4,974,863 Difference in overseas tax rates (401,475) (148,299) (3,260,006) Add / (less) the tax effect of: Tax losses and temporary differences for the year for which no deferred tax is recognized (1,574,213) (3,014,765) (1,832,179) Income tax expenses - - (117,322) (b) Deferred tax liabilities arising from temporary differences and unused tax losses can be summarized as follows: Consolidated December 31, A$ December 31, A$ Balance brought forward (13,668) (1,372,653) Written off of the deferred tax liabilities - - Release of disposal of subsidiaries - 1,380,402 Exchange difference 13,668 (21,417) Total - (13,668) (c) There were no income tax payable in the consolidated statements of financial position in years 2021 and 2020. |
NOTE 9. DIVIDENDS
NOTE 9. DIVIDENDS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 9. DIVIDENDS | NOTE 9. DIVIDENDS No dividends were declared and paid during the financial year ended December 31, 2021 (2020: Nil). |
NOTE 10. LOSS PER SHARE
NOTE 10. LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 10. LOSS PER SHARE | NOTE 10. LOSS PER SHARE Consolidated December 31, December 31, December 31, Loss after income tax attributable to shareholders A$(5,771,510) A$(10,034,077) A$(15,646,147) Number of ordinary shares 9,329,420 6,513,671 3,377,386 Weighted average number of ordinary shares on issue 8,292,403 4,311,360 3,377,386 Basic and diluted loss per share A$(0.70) A$ (2.33) A$ (4.63) |
NOTE 11. INVENTORIES
NOTE 11. INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 11. INVENTORIES | NOTE 11. INVENTORIES Inventories consist of the following: Consolidated December 31, December 31, Raw materials - 296,472 Finished goods - displays and other products - 529,080 Provision for inventories obsolescence - (638,151) Total - 187,401 |
NOTE 12. TRADE AND OTHER RECEIV
NOTE 12. TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 12. TRADE AND OTHER RECEIVABLES | NOTE 12. TRADE AND OTHER RECEIVABLES Consolidated December 31, A$ December 31, A$ Trade receivables 480,095 1,233,709 Other receivables 20,482 1,689 500,577 1,235,398 Less: Allowances for doubtful debts (14,456) (70,793) 486,121 1,164,605 (a) Ageing Analysis The ageing analysis of trade receivables is as follows: Consolidated December 31, A$ December 31, A$ Past due: < 31 days Less than 31 days 190,969 711,754 31 - 90 days - 394,384 > 90 days 289,126 127,571 480,095 1,233,709 (b) Trade receivables which are past due but not impaired Included in the Group's trade receivable balances are debtors with an aggregate carrying amount of A$480,095 (2020: A$1,233,709) which are past due at the end of the reporting period for which the Group has made provision for impairment loss of A$14,456 (2020: A$70,793). The carrying value of trade receivables is considered reasonable approximation of fair value to the short-term nature of the balance. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivables in the consolidated financial statements. Refer to Note 28(e) for further details of credit risk management. |
NOTE 13. OTHER ASSETS
NOTE 13. OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 13. OTHER ASSETS | NOTE 13. OTHER ASSETS Consolidated December 31, December 31, Prepayments - 50,382 Trade deposits 432,236 692,026 Other deposits 1,574,128 1,347,360 VAT receivable 272 129 2,006,636 2,089,897 |
NOTE 14. PLANT AND EQUIPMENT
NOTE 14. PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 14. PLANT AND EQUIPMENT | NOTE 14. PLANT AND EQUIPMENT Consolidated Leasehold Improvements A$ Fixtures and Equipment A$ Machinery A$ Total A$ As of December 31, 2019 Cost 826,997 2,888,508 - 3,715,505 Accumulated depreciation (743,048) (2,243,340) - (2,986,388) Carrying amount as of December 31, 2019 83,949 645,168 - 729,117 Year ended December 31, 2020 Opening carrying amount 83,949 645,168 - 729,117 Additions 2,064 7,899 7,224,551 7,234,514 Disposals (80,581) (203,788) - (284,369 ) Depreciation expenses (10,385) (172,979) (179,144) (362,508) Exchange difference 4,953 (13,674) 9,645 924 Closing carrying amount as of December 31, 2020 - 262,626 7,055,052 7,317,678 As of December 31, 2020 Cost - 710,621 7,224,551 7,935,172 Accumulated depreciation - (447,995) (169,499) (617,494) Carrying amount as of December 31, 2020 - 262,626 7,055,052 7,317,678 Year ended December 31, 2021 Opening carrying amount - 262,626 7,055,052 7,317,678 Additions 42,392 28,717 - 71,109 Disposals - (164,829) - (164,829) Depreciation expenses (18,978) (118,143) (1,049,125) (1,186,246) Exchange difference (452) 14,341 390,133 404,022 Closing carrying amount as of December 31, 2021 22,962 22,712 6,396,060 6,441,734 As of December 31, 2021 Cost 42,392 199,798 7,655,465 7,897,655 Accumulated depreciation (19,430) (177,086) (1,259,405) (1,455,921) Carrying amount as of December 31, 2021 22,962 22,712 6,396,060 6,441,734 |
NOTE 15. INTANGIBLE ASSETS AND
NOTE 15. INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 15. INTANGIBLE ASSETS AND GOODWILL | NOTE 15. INTANGIBLE ASSETS AND GOODWILL Consolidated Goodwill A$ Technologies and Knowhow A$ Patents and Trademark A$ Software and License A$ Total A$ Cost As of January 1, 2020 14,578,707 14,880,322 1,283,700 531,471 31,274,200 Additions - 446,786 36,688 3,771 487,245 Disposal (14,578,707) 8,927,601 (976,692) (2,680) (24,485,680) Exchange difference - (181,683) (107,168) (45,698) (334,549) As of December 31, 2020 - 6,217,824 236,528 486,864 6,941,216 As of January 1, 2021 - 6,217,824 236,528 486,864 6,941,216 Additions - 1,900,589 - - 1,900,589 As of December 31, 2021 - 8,118,413 236,528 486,864 8,841,805 Accumulated Amortization and Impairment Losses As of January 1, 2020 (14,578,707) (6,157,872) (390,491) (196,327) (21,323,397) Amortization - (1,238,718) (82,474) (95,082) (1,416,274) Provision for impairment - (3,155,932) (81,875) (221,533) (3,459,340) Disposal 14,578,707 4,617,299 288,570 - 19,484,576 Exchange difference - (282,601) 29,742 26,078 (226,781) As of December 31, 2020 - (6,217,824) (236,528) (486,864) (6,941,216) As of January 1, 2021 - (6,217,824) (236,528) (486,864) (6,941,216) As of December 31, 2021 - (6,217,824) (236,528) (486,864) (6,941,216) Carrying Amount As of December 31, 2021 - 1,900,589 - - 1,900,589 As of December 31, 2020 - - - - - As at December 31, 2020, based on the results of impairment review and value-in-use assessment, the management considered that the goodwill and intangible assets have suffered an impairment loss and provision of impairment for goodwill of A$4,486,301 has been made in 2019, which then impaired the full value of the goodwill of A$14,578,707. During the year 2020, the Group restructured of certain subsidiaries which had intangible assets. The details of these disposals are set out in note 24. |
NOTE 16. FINANCIAL ASSETS AT FA
NOTE 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | NOTE 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Consolidated December 31 2021 A$ December 31 2020 A$ Investment in equity instrument designated at FVOCI Investment in Listed Shares 562,500 - On February 25, 2021, the Group completed the underwriting in Oakridge International Limited (formerly known as Xped Limited) ("Oakridge"), a company listed on the Australian Securities Exchange, for 500 million shares at a subscription price of A$0.001 per share for a total subscription amount of A$500,000 or equivalent to US$381,000. The 500 million shares represent approximately 15% of the then total outstanding shares in Oakridge. This investment in equity instrument is not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the directors of the Company have elected to designate this investment in equity instrument as at Fair Value Through Other Comprehensive Income (FVTOCI) as they believe that recognising short-term fluctuations in this investment"s fair value in profit or loss would not be consistent with the Group"s strategy of holding this investment for long-term purposes and realising their performance potential in the long run. |
NOTE 17. TRADE AND OTHER LIABIL
NOTE 17. TRADE AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 17. TRADE AND OTHER LIABILITIES | NOTE 17. TRADE AND OTHER LIABILITIES Consolidated December 31, A$ December 31, A$ Trade payables (Note 29 (diii)) 142,325 146,730 Accruals 1,014,368 385,888 Trade deposits received - 630,523 Other borrowing (i) - 211,567 Other payables 1,268,024 2,214,456 2,424,717 3,589,164 (i) The borrowing is unsecured, carry interest at 8% per annual, and full paid during the year. |
NOTE 18. AMOUNTS DUE TO RELATED
NOTE 18. AMOUNTS DUE TO RELATED COMPANIES | 12 Months Ended |
Dec. 31, 2021 | |
Note 18. Amounts Due To Related Companies | |
NOTE 18. AMOUNTS DUE TO RELATED COMPANIES | NOTE 18. AMOUNTS DUE TO RELATED COMPANIES Consolidated December 31, A$ December 31, A$ Current portion 247,406 237,674 247,406 237,674 As at December 31, 2021 and 2020, the non-trade amounts due to related companies are unsecured, non-interest bearing and repayable on demand. |
NOTE 19. AMOUNT DUE TO HOLDING
NOTE 19. AMOUNT DUE TO HOLDING COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
Note 19. Amount Due To Holding Company | |
NOTE 19. AMOUNT DUE TO HOLDING COMPANY | NOTE 19. AMOUNT DUE TO HOLDING COMPANY Consolidated December 31, A$ December 31, A$ Current portion - 532,718 - 532,718 As at December 31, 2020, the non-trade amounts due to the ultimate holding company is unsecured non-interest bearing and repayable on demand. |
NOTE 20. LEASES
NOTE 20. LEASES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 20. LEASES | NOTE 20. LEASES (a) Right of use assets The carrying amount of the Group's right of use assets and the movements during the year are as follows: Consolidated Lease Properties Motor Vehicles Total A$ A$ A$ As of January 1, 2020 1,064,986 42,906 1,107,892 Depreciation expenses (287,557) (12,427) (299,984) Disposal (862,109) (3,887) (865,996) Exchange difference 84,680 (26,592) 58,088 As of December 31, 2020 - - - Additions 2,086,229 - 2,086,229 Depreciation expenses (140,565) - (140,565) Exchange difference 13,205 - 13,205 As of December 31, 2021 1,958,869 - 1,958,869 (b) Lease liabilities Consolidated December 31, A$ December 31, A$ Within one year 425,567 - Two to five years 1,403,932 - 1,829,499 - Less: Amount due within one year shown under current liabilities (425,567) - Amount due after one year 1,403,932 - Analyzed into: Current portion 425,567 - Non-current portion 1,403,932 - 1,829,499 - Obligations under operating leases carried an interest rate of 2.5% per annum. |
NOTE 21. DERIVATIVE FINANCIAL I
NOTE 21. DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 21. DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 21. DERIVATIVE FINANCIAL INSTRUMENTS Consolidated December 31, December 31, Derivative financial liabilities: Carrying value as at beginning of year 1,478,540 - Derivates related to convertible promissory note (Note 22) - 3,790,737 Fair value change in derivative financial instruments during the year 842,463 (2,312,197) Exchange difference - - Carrying value as at end of year 2,321,003 1,478,540 As at December 31, 2021 and 2020, the derivatives related to two convertible promissory notes entered into during 2020 (details are set out in Note 22) were revalued using the weighted average assumptions: volatility 90.8% and 72.80%, the weighted expected term of two years, a discount rate of 3.51% and a dividend yield of 0%. The Group departed from IFRS 9 for certain disclosures for the note issued January 20, 2020 as not doing so would be misleading to the readers of the consolidated financial statements as it would greatly inflate the activity on the 2020 consolidated statement of activity but have no effect on the consolidated balance sheet or on the net loss of the Group. As such, the Group determined it was appropriate to present the change in fair value of this derivative instrument, net of interest expense recorded at the time of issuance |
NOTE 22. CONVERTIBLE PROMISSORY
NOTE 22. CONVERTIBLE PROMISSORY NOTES | 12 Months Ended |
Dec. 31, 2021 | |
Note 22. Convertible Promissory Notes | |
NOTE 22. CONVERTIBLE PROMISSORY NOTES | NOTE 22. CONVERTIBLE PROMISSORY NOTES Consolidated December 31, A$ December 31, A$ Face value of convertible promissory note issued on January 20, 2020 (note i) 2,621,360 2,621,360 Face value of convertible promissory note issued on August 6, 2020 (note ii) 2,291,740 2,291,740 Debt discount (3,790,737) (3,790,737) Liability component on initial recognition 1,122,363 1,122,363 Interest accrued but not yet paid for the period (Note 6) 3,587,588 1,692,217 Interest paid during the year (185,469) (185,469) Exchange differences (213,066) (433,062) Carrying value as at end of year 4,311,416 2,196,049 Note (i) On January 20, 2020, the Company entered into a Convertible Promissory Note Purchase Agreement the ("CN Agreement"), with an independent third party ("Noteholder"). Pursuant to CN Agreement, the Noteholder purchased from the Company a 10% convertible promissory note (the "Promissory Note") in the principal amount of HK$14 million (equivalent to approximately A$2.6 million) maturing in two (2) years from the date of the agreement. The Noteholder has the right to convert the principal amount to shares in the Company at a fixed conversion price of US$3.00, subject to adjustment, per share over the term of the Promissory Note. In October 2020, the Group settled the interest accrued of A$174,811 by issuing 46,741 shares to the Noteholder. Subsequent to the balance sheet date, on January 19, 2022, the Noteholder converted the Promissory Note and accrued interest to a total of 664,871 shares in the Company. Note (ii) On August 6, 2020, the Company entered into a second Convertible Promissory Note Agreement ("the Second CN Agreement") with a third party ("Second Noteholder"). Pursuant to the Second CN Agreement, the holder invested USD 1,650,000 under a convertible note (the "Second Note") without interest, maturing in two years from the date of the Second Note. The Second Noteholder or the Company has the right to convert the principal into ordinary shares of the Company at a conversion price of US$ 3.25 per share over the term of the Second Note. The conversion price is subject to downward adjustment and has a floor price of US$ 1.50 if the Company sells ordinary shares below the conversion price within 12 months after the date of the Second Note. The Second Note cannot be prepaid. The Second Noteholder agreed to waive piggyback registration rights. The conversion feature in convertible promissory notes were derivative liabilities based on the fact the conversion into shares could result in a variable number of shares to be issued. Subsequent to the balance sheet date, on April 13, 2022, the Second Noteholder converted the Second CN Agreement to a total of 507,692 shares in the Company. |
NOTE 23. CONTROLLED ENTITIES
NOTE 23. CONTROLLED ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 23. CONTROLLED ENTITIES | NOTE 23. CONTROLLED ENTITIES As at December 31, 2021, the entities controlled by the Company are as follows: Name of Subsidiary Country of Incorporation Principal Activities Paid Up Capital Percentage Owned 2021 2020 CIMC Marketing Pty Limited Australia Management services & Investment holding A$1 100% (Direct) 100% (Direct) Grand Dynasty Limited* Hong Kong Investment Holding HK$ 1 100% (Direct) - Grand Dynasty (Zhenjiang) Co., Limited* P.R.C Dormant RMB 1 100% (Indirect) - Greifenberg Digital Limited* Canada Investment Holding US$1 40.75% (Direct) - Greifenberg Analytics Limited* Canada Online analytic financial research services US$1 40.75% (Indirect) - Greifenberg Capital Limited* Hong Kong Administrative services HK$1 40.75% (Indirect) - IMTE Limited (Formerly known as Great Gold Investment Limited) Hong Kong Treasury and Administrative services HK$1 100% (Direct) 100% (Direct) IMTE Asia Limited* Hong Kong Administrative services HK$1 100% (Direct) - Itana Holdings Limited* Canada Investment Holding US$1 100% (Direct) - Renfrew International Limited* United State Investment Holding US$1 100% (Direct) - Lonsdale International Limited* United State Investment Holding US$1 100% (Direct) - Smart (Zhenjiang) Intelligent Technology Limited (Formerly known as Smart (Shenzhen) Technology Limited) P.R.C. Marketing, manufacturing and distribution RMB 5,000,000 100% (Indirect) 100% (Indirect) Smartglass Limited Hong Kong Sales of distribution of switchable glass and consultancy services HK$8 100% (Direct) 100% (Direct) Sunup Holdings Limited Hong Kong Manufacturing of filter plates US$ 1,290 51% (Direct) 51% (Direct) Sunup Korea Limited Hong Kong Sale of filter plates and air filter products US$ 0.13 51% (Indirect) 51% (Indirect) Binario Limited # British Virgin Island Investment Holding A$ 1 - 100% (Direct) Colour Investment Limited # Hong Kong Investment holdings HK$ 43,043,130 - 100% (Direct) Cystar International Limited # Hong Kong Sales of software and provision of consultancy services HK$ 1 - 100% (Indirect) Cystar International (Shenzhen) Limited # P.R.C. Dormant RMB 379,141 - 100% (Indirect) Digital Media Technology Limited # Malaysia Dormant US$ 100 - 100% (Indirect) GOXD International Limited # Hong Kong Distribution of Digital Picture Frame HK$ 56,803,913 - 80% (Indirect) * Established during the year # Disposed during the year |
NOTE 24. BUSINESS COMBINATIONS
NOTE 24. BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 24. BUSINESS COMBINATIONS | NOTE 24. BUSINESS COMBINATIONS (a) Disposal of subsidiaries During the year ended December 31, 2021, the Group disposed 6 subsidiaries namely: GOXD International Limited, Colour Investment Limited, Cystar International Limited, Cystar (Shenzhen) Limited, Binario Limited and Digital Media Technology Limited. In 2020, the Company disposed of its subsidiaries Marvel Digital Limited and its subsidiaries. The detail of the net gain / (loss) on the disposals during the year are set out below: 2021 2020 2019 A$ A$ A$ Total disposal consideration 538 25,129 - Carrying amount of net asset sold (note(i) below) 270,908 (230,294) - Gain on sales before income tax and reclassification of foreign currency translation reserve (270,370) 255,423 - Reclassification of foreign currency transaction reserve 645,399 (26,871) - Non-controlling interest 1,623,240 (257,542) - Gain/ (loss) on disposal after income tax 1,998,269 (28,990) - (i) Net assets disposed of: 2021 2020 2019 A$ A$ A$ Plant and equipment 164,829 284,240 - Development projects - 2,864,052 - Intangible assets - 4,790,784 - Right of use assets - 865,996 - Cash and bank balances 32,927 99,061 - Inventories 208,737 400,806 - Trade and others receivable 689,336 603,923 - Other deposit and prepayment 779,821 1,664,343 - Trade and other liabilities (1,560,899) (912,580) - Amount due to a related company (4,951) (6,689,290) - Bank overdraft - (929,438) - Bank loan - (966,747) - Lease liabilities - (925,042) - Income tax payables - - - Deferred tax liabilities (38,892) (1,380,402) - Obligation under finance lease - (33,329) - 270,908 (230,294) - (ii) Net cash flows from disposal of subsidiaries 2021 2020 2019 A$ A$ A$ Consideration received, satisfied in cash - 25,129 - Cash and cash equivalents of subsidiaries disposed of (included cash at bank and bank overdraft) 32,927 830,377 - 32,927 855,506 - (b) Acquisition of Subsidiaries During the year 2021, there was no acquisition of any subsidiary companies. |
NOTE 25. ISSUED CAPITAL
NOTE 25. ISSUED CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 25. ISSUED CAPITAL | NOTE 25. ISSUED CAPITAL (a) Share Capital December 31, 2021 December 31, 2020 December 31, 2019 Number of shares A$ Number of shares A$ Number of shares A$ Ordinary Shares fully paid 9,329,420 48,144,406 6,513,671 32,089,997 3,377,386 18,902,029 (b) Movements in ordinary share capital Number of Shares A$ January 1, 2019 3,377,386 18,902,029 Issue of shares during the year 2019 - - December 31, 2019 3,377,386 18,902,029 Issue of shares for cash 1,643,406 7,121,283 Issue of shares for conversion of debt 988,408 4,122,562 Issue of shares for services 4,471 23,249 Issue of shares for acquisition of shares in subsidiary companies 500,000 2,060,000 Legal expenses in respect of issuance of shares - (139,126) December 31, 2020 6,513,671 32,089,997 Issue of shares for services 20,512 97,282 Issue of shares for cash 2,795,237 16,019,301 Legal expenses in respect of issuance of shares - (62,174) December 31, 2021 9,329,420 48,144,406 (b) Movements in ordinary share capital There is only one class of share on issue being ordinary fully paid shares. Holders of ordinary shares are treated equally in all respects regarding voting rights and with respect to the participation in dividends and in the distribution of surplus assets upon a winding up. The fully paid ordinary shares have no par value. During the year 2020, the details of shares movements are as below: Issue of shares for cash On February 24, 2020, the Company issued 158,730 shares at a share price of US$6.30 per share for a total subscription amount of US$1,000,000 (or about A$1,514,284). The proceeds from this sale of shares were used for repaying debts and working capital in the Company. On May 12, 2020, the Company issued 126,984 shares as a result of the exercise of the warrants referred to (d) below. On September 15, 2020, the Company issued 450,000 shares at a share price of US$3.00 per share for a total subscription amount of US$1,350,000 (or about A$1,845,000). The proceeds from this sale of shares were used for the Company's operations and working capital. On December 2, 2020, the Company issued 600,000 shares at a share price of US$3.00 per share for a total subscription amount of US$1,800,000 (or about A$2,442,000). The proceeds from this sale of shares are intended to be used for working capital purposes and development of existing and new business. On December 21, 2020, the Company issued 307,692 shares at a share price of US$3.25 per share for a total subscription amount of US$1,000,000 (or about A$1,319,999). The proceeds from this sale of shares were intended to be used for the new product design for the filter business. NOTE 25. ISSUED CAPITAL (Continued) Issue of shares on conversion of debt On July 25, 2020, the Company issued 700,000 shares at a share price of US$3.00 per share for payment of debt in total of HK$16,380,000 (equivalent to about US$2,100,000 or about A$2,940,000). On October 6, 2020, the Company issued 241,667 shares at a share price of US$3.90 per share for payment of debt in total of HK$5,655,000 (equivalent to about A$1,007,751). On October 6, 2020, the Company issued 46,741 shares for US$125,852 (equivalent to about A$174,811) in interest payment on the Convertible Notes. Issue of shares for services On September 15, 2020, the Company issued 4,471 shares at a share price of US$3.81 per share for a total payment of US$17,035 (equivalent to about A$23,249) to a consultancy company for technical support services. Issue of shares for acquisition of subsidiary company On September 17, 2020, the Company issued a total of 500,000 shares at a price of US$3.00 per share for a total payment of US$1,500,000 (equivalent to about A$2,060,000) for the acquisition of 51% equity interest in Sunup Holdings Limited. During the year 2021, the details of shares movements are as below: Issue of shares for services On February 2, 2021, the Company issued 17,744 ordinary shares at a share price of US$3.6125 per share for a total of US$64,100 (or about A$84,106) to employees for performance remuneration. On February 5, 2021, the Company issued 2,768 ordinary shares at a share price of US$3.6125 per share for a total of US$10,000 (or about A$13,176) to a consultant for provision of accounting and administrative services. Issue of shares for cash On February 22, 2021, the Company entered into a Securities Purchase Agreement for the sale of 625,000 shares of the Company to an investor at a price of US$4.00 per share for US$2,500,000 (approximately A$3,162,500). The Company intends to use the net cash proceeds for working capital and development of existing and new businesses. On March 4, 2021, the Company entered into subscription agreements in a private placement with twelve investors outside the United States to subscribe a total of 573,350 shares in the Company at a price of US$4.00 per share for a total of US$2,293,400 (approximately A$2,964,220). The Company intends to use the net cash proceeds for building out manufacturing infrastructure and working capital. On March 23, 2021, the Company entered into a Securities Purchase Agreement for the sale of 708,000 shares of the Company at a price of US$6.50 per share for US$4,602,000 (approximately A$6,046,320) generating net cash proceeds of approximately US$4,577,000 (approximately A$6,013,000) after deducting estimated expenses in connection with the offering. The Company intends to use the net cash proceeds for developing its current businesses, corporate expenditures and general corporate purposes. Subsequent to the year end to the date of this report, the details of shares movement are as below: On January 3, 2022, the Company issued a US$10 million convertible note and warrants to subscribe another US$8 million as described in Note 25(d) below. In January 2022 all the convertible notes were converted into a total of 3,205,128 shares in the Company. As of the date of this report, the warrants remain outstanding. Further details of the warrants are set out in (d) below. On January 19, 2022, the Company issued 664,871 ordinary shares as a result of the conversion of convertible promissory note of HK$14 million as set out in (c) below. In March 2022, the Company announced the Board approved a share placement of up to US$20 million. The Company has since March 2022 to the date of this Report raised a total of US$6.7 million by selling 1,489,010 of our ordinary shares in the Company. On April 13, 2022, the Company issued 507,692 ordinary shares as a result of the conversion of convertible promissory note of US$1.65 million as set out in (c) below. NOTE 25. ISSUED CAPITAL (Continued) (c) Convertible Notes During the year 2020, the details of convertible notes movements are as below:- On January 20, 2020, the Company entered into a Convertible Note Purchase Agreement for an investor to purchase from the Company a 10% convertible promissory note ("the Note") in the principal amount of HK$14 million (or about A$2.6million or about US$1.8million) maturing in two (2) years from the date of the agreement. During the year the Company paid a total of US$125,852 (or equivalent to about A$174,811) in interest by issuance of 46,741 shares in the Company. Subsequent to the balance sheet date, on January 19, 2022 the noteholder converted the Note into a total of 664,871 shares in the Company. On August 6, 2020, the Company entered into a convertible note purchase agreement for Nextglass Technologies Corp. to purchase from the Company a convertible promissory note (the "NGT Note") in the principal amount of USD1,650,000 maturing in two (2) years from the date of the agreement. The NGT Note is interest free, non-secured, and each of the Company and noteholder has the right to convert the NGT Note into shares in the Company at a price of US$3.00 per share, subject to adjustment, over the term of the NGT Note. Subsequent to the balance sheet date, the noteholder has converted the NGT Note into 507,692 shares in the Company. (d) Warrants On February 20, 2020, the Company entered into a Securities Purchase Agreement for the sale of 158,730 ordinary shares of the Company and warrants ("Warrants") to purchase up to 126,984 ordinary shares. The Warrants were exercisable for the period of 12 months from the date of issuance, at an exercise price of US$10.50 per share. If the volume weighted average price ("VWAP") of the Company's ordinary shares on the trading day immediately prior to the exercise date is less than US$10.50, then the Warrants may be exercised at such time by means of a cashless exercise where each Warrant exercised would receive one share without any cash payment to the Company. On May 12, 2020, all the Warrants were exercised by means of a cashless exercise. On January 3, 2022 in connection with the sale of the convertible note and warrants to purchase up to 2,139,032 shares raising an additional US$8 million if all the warrants are exercised. The warrants are for a term of 2 years from the date of the convertible notes and can be exercised at US$3.74 for each share. Under the warrant agreement, the warrant holder cannot exercise the warrant to subscribe for shares in the Company if such exercise would take the warrant holder over 4.99% shareholding in the Company. The Company intends to use the net cash proceeds for supporting the acquisition and building out of manufacturing infrastructure and working capital of the Company. (e) Options The Company has no share options outstanding at the date of our Annual Report. 2020 Employee Share Option Plan In August 2020, an Employee Share Option Plan ("2020 ESOP") was approved and established by the board. The 2020 ESOP is available to employee, consultants and eligible persons (as the case may be) of the Company as the board may in its discretion determine. The total number of the shares which may be offered by the Company under the 2020 ESOP shall not at any time exceed 5% of the Company's total issued shares when aggregated with the number of shares issued or that may be issued as a result of offers made at any time during the previous 3-year period. The shares are to be issued at a price determined by the board. The options are to be issued for no consideration. The exercise price, duration and other relevant terms of an option is to be determined by the board at its sole discretion. In September 2020, the Company, subject to shareholders" approval, granted options to subscribe up to 261,000 ordinary shares for employees, directors and consultants under the 2020 ESOP. This term of the option is two years and have vesting period of the option holder over a two year vesting period. The exercise prices will range from US$3.50 to US$3.70 per share. Each option when exercised will entitle the option holder to one ordinary share in the Company. Options will be able to be exercisable on or before an expiry date, will not carry any voting or dividend rights and will not be transferable except on death of the option holder. In September 2021 these options and the 2020 ESOP were cancelled by the Board. 2021 Employee Share Option Plan In December 2021, the Company approved a new Employee Share Option Plan ("2021 ESOP"). The 2021 ESOP is available to employee, consultants, and eligible persons (as the case may be) of the Company as the board may in its discretion determine. |
NOTE 26. RESERVES
NOTE 26. RESERVES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 26. RESERVES | NOTE 26. RESERVES (a) The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations to Australian dollars. (b) (i) In 2020, the movement in other reserves represents the release of the reserve to accumulated losses as a result of the disposal of the subsidiary Marvel Digital Limited ("MDL") and its subsidiaries (Note 24). (ii) In 2021, the movement in other reserves represents the release of the reserve to accumulated losses as a result of the disposal of the subsidiary GOXD International Limited ("GOXD") and its subsidiaries (Note 24). |
NOTE 27. COMMITMENTS
NOTE 27. COMMITMENTS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 27. COMMITMENTS | NOTE 27. COMMITMENTS (a) Non-cancellable operating leases The Group has entered into a short-term commercial lease of total A$9,113 (2020:17,644) for rental office. The following table sets forth our contractual obligations as of December 31, 2021. Payment due by December 31 Total 2022 2023 2024 2025 2026 A$ A$ A$ A$ A$ A$ Operating lease commitments for property management expenses under lease agreements 1,439,299 300,553 287,535 299,373 314,342 237,496 (b) License Agreement with Versitech Limited In September 2015, Versitech Limited ("Versitech") and a former subsidiary Marvel Digital Limited ("MDL") entered into a License Agreement in respect to the sharing of income arising from the intellectual property rights in the video encoding and transmission worldwide. The agreement provided MDL and its affiliates for the term an exclusive and royalty-bearing license under the patent rights owned by Versitech to develop, make, have made, use, sell, offer to sell, lease, import, export or otherwise dispose of licensed product in 3D video encoding and transmission worldwide and with the right to grant sublicense pursuant to the terms of the agreement. MDL shall pay an upfront payment in the amount of HK$100,000 and a running royalty of 3% of net sales ("3% Royalty") on licensed product and licensed process by MDL and its affiliates and sublicensee. Beginning in 2019, the royalty will be the greater of 3% Royalty and HK$200,000 each year. MDL shall also pay Versitech a total of 15% of all sublicense income received by MDL or any of its affiliates. In addition, there are milestone payments payable to Versitech Limited upon the event when cumulative gross revenue arising from the licensed products reaching certain levels with the maximum cumulative total milestone payments of HK$2,000,000. This project was originally derived from an earlier agreement entered into among the Government of the Hong Kong Special Administrative Region, MDL and the University of Hong Kong ("HKU") under the Innovation and Technology Fund University-Industry Collaboration Programme entitled "Content Generation and Processing Technologies for 3D/Multiview Images and Videos". Versitech is a wholly-owned subsidiary and the technology transfer arm of HKU. During the year 2021, there was no royalty fee paid to Veritech (2020:HK$200,000). There was no sublicense fee paid in both years. On December 8, 2021, the Group disposed the subsidiary holding this license agreement and the Group did not have any commitments for the royalty fee and the sublicense fee. (c) Capital commitments (d) Share commitments On April 29, 2019, the Company and Teko International Limited ("Teko") entered into a distribution rights agreement for the territory of Hong Kong and Guangzhou Province, China ("Territories") for a proprietary conductive film and 3rd generation Polymer Dispersed Liquid Crystal ("PDLC") film. Pursuant to the Agreement, the Company shall pay 50,000 IMTE shares upon the commissioning of one (1) lamination line, (ii) for each of the next 3 years after the commissioning of the manufacturing line, IMTE shall pay Teko 50,000 IMTE shares should the annual revenue reach US$10 million or 100,000 IMTE shares should the revenue reach US$20 million, and (iii) 50,000 IMTE shares for each additional lamination line installed. In addition, for managing the operations, the Company will pay to Teko 25% of the net profits from the sale of the PDLC film products and the lamination operations. The Company and Teko has agreed to continue this arrangement for another 3 months until a new distribution rights agreement has been agreed. |
NOTE 28. FINANCIAL RISK MANAGEM
NOTE 28. FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 28. FINANCIAL RISK MANAGEMENT | NOTE 28. FINANCIAL RISK MANAGEMENT (a) Financial risk management objectives The Group is exposed to financial risk through the normal course of their business operations. The key risks impacting the Group's financial instruments are considered to be interest rate risk, foreign currency risk, liquidity risk, credit risk and capital risk. The Group's financial instruments exposed to these risks are cash and short term deposits, receivables, trade payables and borrowings. The Group's chief executive officer for operations is Xiaodong Zhang, who monitors the Group's risks on an ongoing basis and report to the Board. (b) Interest rate risk management The Group is exposed to interest rate risk (primarily on its cash and bank balances, amount due to ultimate holding company, and borrowings), which is the risk that a financial instrument's value will fluctuate as a result of changes in the market interest rates on interest-bearing financial instruments. The Group has adopted a policy of ensuring it maintains adequate cash and cash equivalents balances available at call. These accounts currently earn low interests. The sensitivity analyses below have been determined based on the exposure to interest rates at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease represents management's assessment of the possible change in interest rates. At reporting date, if interest rates had increased/decreased by 50 basis points from the weighted average effective rate for the year, with other variables constant, the profit for the year would have been A$1,019 lower (2020: A$9,130 lower) / A$1,019 higher (2020: A$9,130 higher). The following table summarizes interest rate risk for the Group, together with effective interest rates as at the reporting date. Weighted average effective interest rate Floating interest rate Non-interest bearing A$ Total A$ 2021 Financial Assets Cash and cash equivalents 0.18% 203,857 70,910 274,767 Trade and other receivables - 486,121 486,121 Other assets - 13,465,831 13,465,831 Total Financial Assets 203,857 14,022,862 14,226,719 Financial Liabilities Trade and other payables 8% - 2,424,717 2,424,717 Amounts due to related companies - 247,406 247,406 Lease liability 2.5% - 1,829,499 1,829,499 Convertible promissory notes 10% 4,311,416 - 4,311,416 Total Financial Liabilities 4,311,416 4,501,622 8,813,038 2020 Financial Assets Cash and cash equivalents 0.39% 2,037,502 156,582 2,194,084 Trade and other receivables - 1,164,605 1,164,605 Other assets - 2,089,897 2,089,897 Total Financial Assets 2,037,502 3,411,084 5,448,586 Financial Liabilities Trade and other payables 8% 211,567 2,747,074 2,958,641 Trade deposits received - 630,523 630,523 Amounts due to related companies - 237,674 237,674 Amount due to ultimate holding company - 532,718 532,718 Convertible promissory notes 10% 2,196,049 - 2,196,049 Total Financial Liabilities 2,407,616 4,147,989 6,555,605 NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (c) Foreign currency risk The Group has net assets denominated in certain foreign currencies as at December 31, 2021. Foreign currency denominated financial assets and liabilities which expose the Group to currency risk are disclosed below. The amounts are those reported to key management translated into AUD at the following closing rates, HK$0.17658, US$1.3769 and RMB1.22518: Short term exposure Long term exposure HK$ US$ RMB HK$ US$ RMB December 31, 2021 Financial assets - Cash and cash equivalents 70,053 187,400 13,295 - - - - Trade and other receivables 3,279 457,798 21,851 - - - - Other assets 63,841 13,323,142 78,576 - - - Financial liabilities - Trade and other liabilities (712,801) (1,142,816) (125,876) - - - - Amounts due to related companies - (247,406) - - - - - Convertible promissory notes (2,512,137) (1,799,278) - - - - - Derivates on financial statements (1,220,904) (1,100,099) - - - - Total exposure (4,308,669) 9,678,741 (12,154) - - - Short term exposure Long term exposure HK$ US$ RMB HK$ US$ RMB December 31, 2020 Financial assets - Cash and cash equivalents 156,753 2,029,569 65 - - - - Trade and other receivables 864,845 298,071 - - - - - Other assets 774,532 1,315,236 129 - - - Financial liabilities - Trade and other liabilities (1,219,242) (1,905,180) - - - - - Amounts due to related companies (4,592) (233,082) - - - - - Amount due to ultimate holding company (532,718) - - - - - - Convertible promissory notes - - - (981,459) (1,214,590) - - Derivates on financial statements - - - (438,286) (1,040,254) - Total exposure 39,578 1,504,614 194 (1,419,745) (2,254,844) - NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) The following table illustrates the sensitivity of loss and equity in regard to the Group's financial assets and financial liabilities and the HK$/AUD exchange rate, US$/AUD exchange rate and RMB/AUD exchange rate and assure "all other things being equal'. It assumes a +/- 5% change of the AUD/HK$ exchange rate for the year ended at December 31, 2021 (2020: 5%). A +/- 5% change is considered for the AUD/US$ exchange rate (2020: 5%). A +/- 10% change is considered for the AUD/RMB exchange rate (2020: 10%). These percentages have been determined based on the average market volatility in exchange rates in the previous twelve (12) months. The sensitivity analysis is based on the Group's foreign currency financial instruments held at each reporting date and also takes into account forward exchange contracts that offset effects from changes in currency exchange rates. If the AUD had strengthened against the HK$ by 5% (2020: 5%), the US$ by 5% (2020: 5%) and the RMB by 10% (2020: 10%) respectively then this would have had the following impact: Loss for the year Equity HK$ US$ RMB Total HK$ US$ RMB Total December 31, 2021 215,433 (483,937) 1,215 (267,289) 215,433 (483,937) 1,215 (267,289) December 31, 2020 69,008 37,512 (19) 106,501 69,008 37,512 (19) 106,501 If the AUD had weakened against the HK$ by 5% (2020: 5%), the US$ by 5% (2020: 5%) and the RMB by 10% (2020: 10%) respectively then this would have had the following impact: Loss for the year Equity HK$ US$ RMB Total HK$ US$ RMB Total December 31, 2021 (215,433) 483,937 (1,215) 267,289 (215,433) 483,937 (1,215) 267,289 December 31, 2020 (69,008) (37,512) 19 (106,501) (69,008) (37,512) 19 (106,501) Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Group's exposure to currency risk. NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (d) Liquidity risk management Prudent liquidity risk management implies maintaining sufficient cash and term deposits, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The following tables detail the Group's remaining contractual maturity for its non-derivative financial liabilities based on the agreed repayment terms or the earliest date on which the Group can be required to pay. The table has been drawn up based on the undiscounted cash flows of financial liabilities and include both interest and principal cash flows. 2021 Total contractual 0 - 30 days Carrying undiscounted or on 31 - 90 91 - 365 Over amount cash flow demand days Days 1 year A$ A$ A$ A$ A$ A$ Trade and other liabilities 2,424,717 2,424,717 2,424,717 - - - Amounts due to related companies 247,406 247,406 247,406 - - - Lease liability 1,829,499 1,829,499 - - 425,567 1,403,932 Convertible promissory notes 4,311,416 4,311,416 4,311,416 - - - 8,813,038 8,813,038 6,983,539 - 425,567 1,403,932 2020 Total contractual 0 - 30 days Carrying undiscounted or on 31 - 90 91 -365 Over amount cash flow demand days Days 1 year A$ A$ A$ A$ A$ A$ Trade and other liabilities 2,958,911 2,958,911 2,958,911 - - - Trade deposits received 630,523 630,523 630,523 - - - Amounts due to related companies 237,674 237,674 - - - 237,674 Amount due to ultimate holding company 532,718 532,718 532,718 - - - Convertible promissory notes 2,196,049 2,448,048 21,402 61,447 169,150 2,196,049 6,555,875 6,807,874 4,143,554 61,447 169,150 2,433,723 NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (e) Credit risk Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in a financial loss to the Group. The Group's potential concentration of credit risk consists mainly of cash deposits with banks and trade receivables with its customers. The Group's short term cash surpluses are placed with banks that have investment grade ratings. The Group considers the credit standing of counterparties and customers when making deposits and sales, respectively, to manage the credit risk. The Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Group. Considering the nature of the business at current, the Group believes that the credit risk is not material to the Group's operations. The maximum exposure to credit risk, excluding the value of any collateral or other security, at the end of the reporting period, to financial assets, is represented by the carrying amount of cash and bank balances, trade and other receivables, net of any provisions for doubtful debts, as disclosed in the consolidated statement of financial positions and notes to the consolidated financial statements. (f) Fair value of financial instruments The following liability is recognized and measured at fair value on a recurring basis: - Derivative financial instruments Fair value hierarchy All assets and liabilities for which fair value is measured or disclosed are categorized according to the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Recognized fair value measurements The following table sets out the Group's assets and liabilities that are measured at fair value in the consolidated financial statements. Level 2 A$ Derivative financial instruments December 31, 2021 2,321,003 December 31, 2020 1,478,540 The Group does not have any assets and liabilities that qualify for the level 1 category. There were no transfers between level 1, 2 and 3 during the year. An instrument is included in level 2 if the financial instrument is not traded in an active market and if the fair value is determined by using valuation techniques based on the maximum use of observable market data for all significant inputs. For the derivatives, the Group uses the estimated fair value of financial instruments determined by using available market information and appropriate valuation methods, including relevant credit risks. The estimated fair value approximates to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Specific valuation techniques used to value financial instruments include: • quoted market prices or dealer quotes for similar instruments; and • binomial options pricing models. NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) The reconciliation of the opening and closing fair value balance of level 2 financial instruments is provided below: Put Option A$ At January 1, 2021 - Issuance of derivatives at fair value 1,478,540 Gain included in profit or loss on change in fair value 842,463 At December 31, 2021 2,321,003 Disclosed fair values The Group also has assets and liabilities which are not measured at fair values, but for which fair values are disclosed in the notes to the consolidated financial statements. Due to their short term nature, the carrying amounts of trade receivables (refer to Note 12) and payables (refer to Note 17) are assumed to approximate their fair values because the impact of discounting is not significant. (g) Capital management risk The Group's objective when managing capital are to safeguard the Group's ability to continue as a going concern and to maintain a strong capital base sufficient to maintain future development of its business. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debts. The Group's focus has been to raise sufficient funds through equity to fund its business activities. There were no changes to the Group's approach to capital management during the year. Risk management policies and procedures are established with regular monitoring and reporting. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. The capital structure of the Group consists of equity attributable to equity holders of the parent, comprising issued capital, reserves and accumulated loss or retained earnings as disclosed in Notes 25 and 26 respectively. |
NOTE 29. RELATED PARTIES
NOTE 29. RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 29. RELATED PARTIES | NOTE 29. RELATED PARTIES (a) Parent and ultimate controlling party As at December 31, 2019 and 2020, Marvel Finance Limited ("MFL") owned 2,201,412 shares, representing approximately 65.18% and 33.80%, respectively in the Company. MFL was the ultimate controlling party of the Group as at December 31, 2019. However as at December 31, 2020, MFL's shareholding in the Company decreased to 33.80% and therefore MFL was not considered the ultimate controlling party of the Group from that date on. (b) Transactions with directors During the years ended December 31, 2021, 2020 and 2019, the remuneration of directors of the Company was as follows: Company December 31, A$ December 31, A$ December 31, A$ Short term benefits (1) 730,743 780,832 715,301 Post-employment benefits - - - Total 730,743 780,832 715,301 (1) NOTE 29. RELATED PARTIES (c) Other related party transactions During the years ended December 31, 2021, 2020 and 2019, the Group has the following material transactions with its related parties: Consolidated December 31, A$ December 31, A$ December 31, A$ Revenue received from related parties (1) - 8,490 - General consultancy and management fee paid to a related party (1) - 282,971 571,519 Purchase of products from related parties (1) - 29,794 22,588 Interest income earned from the former ultimate holding company (1) - - 115,678 Group Secretarial, taxation service and interim CFO fee paid to a related company (2) - - 40,000 Company Secretarial, taxation service and CFO fee paid to a related company (3) 561,758 607,659 523,196 Consultancy fee paid to a related party (6) 225,860 - - Purchase of products from a related party (4) - 274,417 501,062 Sales to a related party (5) - 315,034 - (1) Dr. Herbert Ying Chiu LEE, former director controlled the entities providing the consultancy and management services. These transactions were carried at market value in the ordinary course of business. (2) Mr. George Yatzis, former Company Secretary, is a director of the related party. (3) Mr. Cecil Ho, former Company Secretary and CFO controlled the entity providing professional services. (4) Mr.Wuhua Zhang, our former director of the Company controlled the entity. The transactions were carried at the then current market value in the ordinary course of business. (5) The related party is one of the subsidiaries of our shareholder. (6) Mr. Con Unerkov, former director, is a director of the related party. During the years ended December 31, 2021 and 2020, the Group did not charge any interest to MFL. For the year ended December 31, 2019, the Group charged MFL interest in relation to 2 loans a total of A$115,678. (d) Amounts due from / to related companies Other than the related party balances disclosed in Note 18 and 19, the other related party balances as of December 31, 2021 and 2020 are disclosed: (i) included in trade and other receivables in Note 12, there were amounts of Nil (2020: A$14,245) in respect to trade and non-trade in nature respectively and were due from certain related companies in which our former director, Dr. Herbert Ying Chiu LEE has control. The amounts due from the related companies are unsecured, non-interest bearing and repayable on demand; (ii) included in other assets in Note 13, there was amount of Nil (2020: A$603,600) in respect to trade in nature and was deposits paid to a related company in which our director, Mr. Michael Wuhua ZHANG has control; and (iii) included in trade and other liabilities in Note 17, there was amount of Nil (2020: A$5,329) in respect to trade in nature and was due to a related company in which our former director, Dr. Herbert Ying Chiu LEE has control. The amount due to the related company is unsecured, non-interest bearing and repayable on demand. |
NOTE 30. CASH FLOW INFORMATION
NOTE 30. CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 30. CASH FLOW INFORMATION | NOTE 30. CASH FLOW INFORMATION (a) Reconciliation of liabilities arising from financing activities Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Convertible promissory notes Lease liabilities Derivative embedded in convertible bonds issued Issue of shares Total A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2021 237,674 211,567 - 532,718 2,196,049 - 1,478,540 13,187,968 17,844,516 Cash flows from financing activities - - - (562,201) - (138,156) - 16,054,409 15,354,052 Inception of lease - - - - - 2,086,229 - - 2,086,229 Interest - - - - 1,848,947 28,371 - - 1,877,318 Put option liabilities in convertible bonds issued - - - - - - - - - Fair value change - 842,463 842,463 Disposal of plant and equipment (4,951) - - - - - - - (4,951) Foreign exchange movement 14,683 - - 29,483 266,420 (146,945) - - 163,641 Ending balance as of 31 December 2021 247,406 211,567 - - 4,311,416 1,829,499 2,321,003 29,242,377 38,163,268 NOTE 30. CASH FLOW INFORMATION Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Convertible promissory notes Convertible bonds by a subsidiary Lease liabilities Derivative embedded in convertible bonds issued Issue of shares Total A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2020 6,101,850 1,761,309 915,300 582,832 - 4,420,899 1,168,607 - - 14,950,797 Cash flows from financing activities 840,509 211,567 - - 4,913,100 (4,668,195) (320,851) - 13,187,968 14,164,098 Non-cash movement: Settled by issuing convertible promissory note - (1,761,309) - - - - - - - (1,761,309) Fair value change - - - - - - - (2,312,197) - (2,312,197) Put option liabilities in convertible bonds issued - - - - (3,790,737) - - 3,790,737 - - Interest - - - - 1,508,421 - - - - 1,508,421 Disposal of plant and equipment (6,689,290) - (966,747) - - - (925,042) - - (8,581,079) Foreign exchange movement (15,395) - 51,447 (50,114) (434,735) 247,296 77,286 - - (124,215) Ending balance as of 31 December 2020 237,674 211,567 - 532,718 2,196,049 - - 1,478,540 13,187,968 17,844,516 NOTE 30. CASH FLOW INFORMATION Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Obligation under finance lease Convertible bonds by a subsidiary Lease liabilities Derivative embedded in convertible bonds issued Total A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2019 2,130,368 - 814,365 172,773 - 3,280,744 1,163,778 126,095 7,688,123 Cash flows from financing activities 3,954,460 2,610,091 90,049 501,343 - - (573,010) - 6,583,113 Non-cash movement: Unpaid interest - - - - - 1,107,310 109,027 - 1,216,337 Interest - - - (96,965) - - 648 - (96,317) Inception of new lease - - - - - - 458,990 - 458,990 Fair value change - - - - - - - (127,551) (127,551) Disposal of plant and equipment - (848,782) - - - - - - (848,782) Foreign exchange movement 16,842 - 10,886 5,681 - 32,845 9,174 1,456 76,884 Ending balance as of 31 December 2019 6,101,850 1,761,309 915,300 582,832 - 4,420,899 1,168,607 - 14,950,797 NOTE 30. CASH FLOW INFORMATION (Continued) (b) Net cash inflows / (outflows) from changes in working capital Consolidated December 31, A$ December 31, A$ December 31, A$ Cash flows from changes in working capital (Increase) / Decrease in assets: Trade and other receivables (105,014) (1,016,464) (137,579) Inventories - 142,608 405,891 Other assets (295,635) (1,659,728) (361,676) Increase / (Decrease) in liabilities: Trade and other liabilities (318,544) 347,308 1,876,414 Net cash (outflows)/ inflows from changes in working capital (719,193) (2,186,276) 1,783,050 |
NOTE 31. KEY MANAGEMENT PERSONN
NOTE 31. KEY MANAGEMENT PERSONNEL DISCLOSURES | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 31. KEY MANAGEMENT PERSONNEL DISCLOSURES | NOTE 31. KEY MANAGEMENT PERSONNEL DISCLOSURES (a) Remuneration The total remuneration paid or payable to the directors and senior management of the Group during the year are as follows: Consolidated December 31, A$ December 31, A$ December 31, A$ Short-term employee benefits 1,929,914 1,586,604 1,645,794 Post-employment benefits 6,196 5,124 7,703 Total 1,936,110 1,591,728 1,653,497 During the year 2021, included in short term benefits for directors and officers included payments of A$561,758 (US$420,000) to a service companies owned by the then CFO for the provision of Chief Executive Officer and Chief Financial Officer services. (b) Loans to Key Management Personnel and their related parties Save as disclosed in Note 29(d), there were no other loans outstanding at the reporting date to Key Management Personnel and their related parties. Other transactions with Key Management Personnel Several key management persons, or their related parties, held positions in other entities that resulted in them having control or significant influences over the financials or operating policies of these entities. Transactions between related parties are in normal commercial terms and conditions unless otherwise stated in Notes 18 and 29. (c) Share Options - number of share options held by management There were no share options held outstanding held by the management. |
NOTE 32. PARENT ENTITY INFORMAT
NOTE 32. PARENT ENTITY INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Note 32. Parent Entity Information | |
NOTE 32. PARENT ENTITY INFORMATION (UNAUDITED) | NOTE 32. PARENT ENTITY INFORMATION (UNAUDITED) Set out below is the supplementary information about the parent entity. Statement of Comprehensive Income Company December 31, 2021 A$ December 31, 2020 A$ December 31, 2019 A$ Loss after income tax 9,287,226 2,097,600 1,635,241 Other comprehensive income - - - Total comprehensive loss 9,287,226 2,097,600 1,635,241 Statement of Financial Position Company December 31, 2021 December 31, 2020 A$ A$ Total non-current assets 1,245 2,382 Total current assets 39,664,914 28,456,242 Total assets 39,666,159 28,458,624 Total current liabilities 6,064,179 5,931,676 Total liabilities 6,064,179 5,931,676 Total assets less liabilities 33,601,980 22,526,948 Equity Issued capital 48,144,406 32,089,997 Accumulated losses (14,542,426) (9,563,049) Total equity 33,601,980 22,526,948 Guarantees entered into by the parent entity in relation to the debts of its subsidiary Other than as disclosed in this Annual Report, the parent entity had not guarantee debts of its subsidiary companies. Contingent liabilities Other than as disclosed in this Annual Report, the parent entity had no contingent liabilities as at December 31, 2021 and December 31, 2020. Capital commitments - plant and equipment The parent entity has no capital commitments for plant and equipment as at December 31, 2021 and December 31, 2020. Significant accounting policies The accounting policies of the parent entity are consistent with those of the Group, as disclosed in Note 3, except for: - Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity, - Dividends received from subsidiaries are recognized as other income by the parent entity and its receipt may be an indicator of impairment. |
NOTE 33. PRIOR YEAR RECLASSIFIC
NOTE 33. PRIOR YEAR RECLASSIFICATIONS | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 33. PRIOR YEAR RECLASSIFICATIONS | NOTE 33. PRIOR YEAR RECLASSIFICATIONS Certain comparative figures have been reclassified to conform with the current year's presentation of the consolidated financial statements. |
NOTE 34. EVENTS OCCURRING AFTER
NOTE 34. EVENTS OCCURRING AFTER THE REPORTING DATE | 12 Months Ended |
Dec. 31, 2021 | |
NOTE 34. EVENTS OCCURRING AFTER THE REPORTING DATE | NOTE 34. EVENTS OCCURRING AFTER THE REPORTING DATE Save as disclosed below, there is no other matter or circumstance arisen since December 31, 2021, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years. a) As announced in Form 6K on December 30, 2021, the Company entered into an Assignment and Assumption Agreement to take over the rights and obligation on a Cooperation Agreement on developing a Blockchain business focusing on digital asset market platform mainly focusing on NFT (Non Fungible Token) trading market. Under the Cooperation Agreement, the Group may invest up to US$1 million for 60% equity interests in Ace to develop, establish, and operate a trading platform called "Ouction". The development, marketing and operating team will receive the 40% of the equity interest in Ace. The Company will pay a deferred payment based on future earnings of Ace Corporation Limited ("Ace") and a bonus payment if Ace is listed on a recognized exchange in the next 5 years. b) As announced in the Form 6K on January 3, 2022, the Company entered into convertible note purchase agreements with individual investors outside the United States raising a total of US$10 million by the issuance of US$10 million convertible notes ("Note"). The Note bears interests at 6% per annum maturing in 2 years from the date of issuance of the Note. The holder of the Note has the right to convert the principal amount to shares in the Company at a fixed conversion price of US$3.12 per share, subject to adjustment, over the term of the Note. Under the Note, the holder of the Note cannot convert the shares in the Company if such conversion would take the noteholder over 4.99% shareholding in the Company. In January 2022, the noteholders converted all the notes into 3,205,128 shares in the Company. In addition, the noteholder also received a warrant representing 80% of the amount of the Note, raising an additional US$8 million if all the warrants are exercised. The warrants are for a term of 2 years from the date of the convertible notes and can be exercised at US$3.74 for each share. Under the warrant agreement, the warrant holder cannot exercise the warrant to subscribe for shares in the Company if such exercise would take the warrant holder over 4.99% shareholding in the Company. c) On January 19, 2022, the Company issued 664,871 ordinary shares as a result of the conversion of HK$14 million convertible promissory note dated January 20, 2020. d) As announced in Form 6K on January 20, 2022, the Company entered into a subscription agreement to subscribe US$1 million for 60% equity interests in World Integrated Supply Ecosystem Sdn Bhd ("WISE"). WISE, a Malaysia company based in Kuala Lumpur, is engaged in the business of the provision of Halal certification to qualified businesses/operations, the establishment Halal products supply chain, and sale of Halal products. e) As announced in Form 6K on March 17, 2022, the Company approved the fund raising of share placement of up to US$20 million, depending on market conditions. Since March 2022 to the date of this report, the Company has raised US$6.7 million by the issuance of a total of 1,489,010 shares in the Company. f) On April 13, 2022, the Company issued 507,692 ordinary shares as a result of the conversion of US$1.65 million convertible promissory note dated August 6, 2020 |
NOTE 35. GROUP DETAILS
NOTE 35. GROUP DETAILS | 12 Months Ended |
Dec. 31, 2021 | |
Note 35. Group Details | |
NOTE 35. GROUP DETAILS | NOTE 35. GROUP DETAILS The registered office and principal place of business is: Level 7, 420 King William Street Adelaide SA 5000 |
NOTE 3. SIGNIFICANT ACCOUNTIN_2
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
(a) Basis of Preparation | (a) Basis of Preparation The consolidated financial statements have been prepared on the accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. |
(b) Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements comprise the financial statements of IMTE and its subsidiaries as at December 31, 2021 (the "Group"). Subsidiaries are consolidated from the date on which control is transferred to the Group and are deconsolidated from the date that control ceases. A list of the controlled entities as at December 31, 2021 is disclosed in Note 23 to the consolidated financial statements. All inter-company balances and transactions between entities within the Group, including any unrealized profits or losses, have been eliminated upon consolidation. Non-controlling interest in the results and equity of subsidiaries are shown separately in the consolidated statements of profit or loss and other comprehensive income or loss and consolidated statements of financial position of the Group. |
(c) Business Combinations | (c) Business Combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred, except if related to the issue of debt or equity securities. The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair value of consideration transferred, (b) the recognized amount of any non-controlling interest in the acquiree, and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. Any contingent consideration to be transferred by the acquirer is recognized at acquisition-date fair value. Subsequent adjustments to consideration are recognized against goodwill only to the extent that they arise from new information obtained within the measurement period (a maximum of 12 months from the acquisition date) about the fair value at the acquisition date. All other subsequent adjustments to contingent consideration classified as an asset or a liability are recognized in the consolidated statement of profit or loss. |
(d) Current and deferred income tax | (d) Current and deferred income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognised in profit or loss except to the extent that they relate to items recognised in other comprehensive income / loss or directly in equity, in which case the relevant amounts of tax are recognised in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be available against which the asset can be utilised, are recognised. Future taxable profits that may support the recognition of deferred tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits, that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and are expected to reverse in a period, or periods, in which the tax loss or credit can be utilised. The limited exceptions to recognition of deferred tax assets and liabilities are those temporary differences arising from goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a business combination), and temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Company or the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: (i) in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously; or (ii) in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: - the same taxable entity; or - different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realized and settle simultaneously. |
(e) Intangible Assets | (e) Intangible Assets (i) Acquired both separately and from a business combination Purchased intangible assets are initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are measured at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at each financial year end. (ii) Autostereoscopic 3D display technologies and knowhow The autostereoscopic 3D display technologies and knowhow acquired in the business combination is measured at fair value as at the date of acquisition. These costs are amortized over the estimated useful life of 8 years and are tested for impairment where an indicator of impairment exists. The useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis. Please refer to Note 15 for impairment review of these autostereoscopic 3D display technologies and knowhow. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (iii) Research and development costs Development projects in the consolidated statements of financial position represent the development costs directly attributable to and incurred for internal technology projects of the Group. An intangible asset arising from development expenditure on an internal technology project is recognised and included in development projects only when the Group can demonstrate the technical feasibility of completing the intangible asset or technology so that it will be available for application in existing or new products or for sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development, the ability to measure reliably the expenditure attributable to the intangible asset during its development and the ability to use the tangible asset generated. For labour costs, all research and development member salaries that are directly attributable to the technology project are capitalised. Administrative staff and costs are recognised in the profit or loss instead of capitalising this portion of costs. Following the initial recognition of the development expenditure, the cost model is applied requiring the asset to be carried at cost less any accumulated impairment losses. The amortisation rate of these intangible assets was determined on the basis of the estimated useful life from the time that the relevant asset is taken into use. (iv) Intellectual property Expenditure incurred on patents, trademarks or licenses are capitalized from the date of application. They have a definite useful life and are carried at cost less accumulated amortization. They are amortized using the straight-line method over their estimated useful lives for a period of 8 to 15 years. (v) Computer software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives ranging (2-5 years). Costs associated with maintaining computer software are recognized as an expense when incurred. |
(f) Inventories | (f) Inventories Finished goods are stated at the lower of cost and net realizable value on a "first in first out" basis. Cost comprises direct materials and delivery costs, import duties and other taxes. Costs of purchased inventories are determined after deducting rebates and discounts received or receivable. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. |
(g) Leases | (g) Leases The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately. The policy applicable from 1 January 2019 At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. This policy is applied to contracts entered into, on or after 1 January 2019. As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative and-alone prices. However, for the leases of property the Group has elected not to separate lease components and account for the lease and non-lease components as a single lease component. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following: - fixed payments, including in-substance fixed payments; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - amounts expected to be payable under a residual value guarantee; and - the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in property, plant and equipment' and lease liabilities in loans and borrowings' in the statement of financial position. Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Policy applicable before 1 January 2019 For contracts entered into before 1 January 2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether: fulfilment of the arrangement was dependent on the use of a specific asset or assets; and the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or; amounts expected to be payable under a residual value guarantee; and facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) As a lessee In the comparative period, where the Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are recognised as plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the life of the asset, as set out in note 3(k). Impairment losses are accounted for in accordance with an accounting policy as set out in note 3(h). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis unless another method is more representative of the pattern to the |
(h) Impairment of Assets | (h) Impairment of Assets Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in the case of goodwill, an impairment loss previously recognised no longer exists or may have decreased: - property, plant and equipment (other than properties carried at revalued amounts); - intangible assets; and - goodwill. If any such indication exists, the asset's recoverable amount is estimated. In addition for goodwill, intangible assets that are not yet available for use and intangible assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment. (i) Calculation of recoverable amount The recoverable amount of an asset is the greater of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). (ii) Recognition of impairment losses An impairment loss is recognized in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable) or value in use (if determinable). (iii) Reversals of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited to the asset's carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(i) Trade deposits | (i) Trade deposits Trade deposits are payments in advance to suppliers of equipment, products and services, which are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method less impairment losses, except where the effect of discounting would be immaterial. |
(j) Plant and Equipment | (j) Plant and Equipment Items of plant and equipment are measured at cost less accumulated depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciable amount of all fixed assets are depreciated over their estimated useful lives to the Group commencing from the time the assets is held ready for use. Depreciation is calculated on a straight-line basis to write the net cost of each item of plant and equipment over their expected useful lives. The depreciation rates used for each class of depreciable assets are generally as follows: Class of fixed assets Depreciation rate Leasehold Improvements lesser of 5 years or lease term Office Furniture and Equipment 5-12 years Machinery 5-12 years Gains and losses on disposal are determined by deducting the net book value of the assets from the proceeds of sale and are booked to the profit or loss in the year of disposal. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(k) Foreign Currency Translation | (k) Foreign Currency Translation (i) Functional and presentation currency Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in Australian Dollars ("A$"), which is the Group's presentation currency. (ii) Transactions and balances Foreign currency transactions during the year are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates ruling at the end of the reporting period. Exchange gains and losses are recognized in profit or loss, except those arising from foreign currency borrowings used to hedge a net investment in a foreign operation which are recognized in other comprehensive income. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the foreign exchange rates ruling at the transaction dates. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated using the foreign exchange rates ruling at the dates the fair value was measured. (iii) Group companies The results of foreign operations are translated into Australian Dollars at the exchange rates approximating the foreign exchange rates ruling at the dates of the transactions. Statement of financial position items, are translated into Australian Dollars at the closing foreign exchange rates at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to profit or loss when the profit or loss on disposal is recognized. For years ended December 31, 2021 and 2020, the comprehensive income was A$762,348 and A$883,878 respectively which was mainly resulted from the translation of the foreign operations in Hong Kong (HK$), China (RMB) and United States (USA) into Australia dollars. The significant monetary items denominated in currencies other than Australia dollars include intangible assets and goodwill, due to related companies, amount due to ultimate holding company, borrowings, convertible bonds and derivative financial instruments. |
(l) Trade and Other Receivables | (l) Trade and Other Receivables Trade receivables are recognized at original invoice amounts less an allowance for uncollectible amounts and have repayment terms between 30 and 90 days. Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms. Objective evidence of impairment includes financial difficulties of the debtor, default payments or debts more than 30 days overdue. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated provision. |
(m) Trade and Other Payables | (m) Trade and Other Payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are paid on normal commercial terms. |
(n) Provisions and Contingent Liabilities | (n) Provisions and Contingent Liabilities Provisions are recognized for other liabilities of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(o) Borrowings | (o) Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to the actual draw-down of the facility, are recognized as an offset against the liability balance and amortized on a straight-line basis over the term of the facility. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in other income or other expenses. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. |
(p) Borrowing Costs | (p) Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred. The capitalization of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete. |
(q) Convertible Promissory Note | (q) Convertible Promissory Note Convertible promissory note that can be converted into ordinary shares at the option of the holder, where the number of shares to be issued is fixed, are accounted for as compound financial instruments, i.e. they contain both a liability component and an equity component. At initial recognition the liability component of the convertible promissory note is measured at fair value based on the future interest and principal payments, discounted at the prevailing market rate of interest for similar non-convertible instruments. The equity component is the difference between the initial fair value of the convertible promissory note as a whole and the initial fair value of the liability component. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion to the allocation of proceeds. The liability component is subsequently carried at amortised cost. Interest expense recognised in profit or loss on the liability component is calculated using the effective interest method. The equity component is recognised in the capital reserve until either the bonds are converted or redeemed. If the note are converted, the capital reserve, together with the carrying amount of the liability component at the time of conversion, is transferred to share capital and share premium as consideration for the shares issued. If the note are redeemed, the capital reserve is released directly to retained profits. |
(r) Derivative Financial Instruments | (r) Derivative Financial Instruments Derivative financial instruments are recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. |
(s) Employee Benefits | (s) Employee Benefits (i) Employee leave entitlements Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the date of the statement of financial position. Employee entitlements to sick leave and maternity leave are not recognised until the time of leave. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (ii) Pension obligations Salaries, annual bonuses, paid annual leave, contributions to defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. |
(t) Cash and Cash Equivalents | (t) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and call deposits with banks or financial institutions and net of bank overdrafts. |
(u) Revenue | (u) Revenue Revenue is recognized in accordance with IFRS 15 Revenue from Contracts with Customers. The underlying principle is to recognize revenue when a customer obtains control of the promised goods at an amount that reflects the consideration that is expected to be received in exchange for those goods. It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers. We adopted IFRS 15 Revenue from Contracts with Customers at the beginning of 2018, and implemented new accounting policies and internal controls necessary to support its requirements. The adoption of IFRS 15 did not have any impact on our revenue recognition. We recognize revenue upon transfer of control of the promised goods in a contract with a customer in an amount that reflects the consideration we expect to receive in exchange for those products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery and risk of loss has transferred to the customer. We account for a contract with customer when we have approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We identify separated contractual performance obligations and evaluate each distinct performance obligation within a contract, whether it is satisfied at a point in time or over time. All of our performance obligations for the reported periods were satisfied at a point in time. Revenue is allocated among performance obligations in a manner that reflects the consideration that we expect to be entitled to for the promised goods based on standalone selling prices (SSP). SSP are estimated for each distinct performance obligation and judgment may be required in their determination. The best evidence of SSP is the observable price of the product when we sell the goods separately in similar circumstances and to similar customers. Until January 1, 2018, revenues from sales of products and services were recognized upon delivery provided that the collection of the resulting receivable was reasonably assured, there was persuasive evidence of an arrangement, no significant obligations remained and the price was fixed or determinable. The product warranties, which in the great majority of cases includes component and functional errors, are usually granted for a one year period from legal transfer of the product. For the customers, the specific warranty period and the specific warranty terms are part of the basis of the individual contract. Warranty provisions include only standard warranty, whereas services purchased in addition to the standard warranty are included in the services contracts. Interest Income Revenue is recognized as interest accrues using the effective interest method. |
(v) Sales Taxes | (v) Sales Taxes Revenues, expenses and assets are recognized net of the amount of goods and services tax ("GST") or valued-added tax ("VAT"), except where the amount of GST or VAT incurred is not recoverable from the Australian Taxation Office or taxation authorities in other jurisdictions. In these circumstances, the GST or VAT is recognized as part of the cost of acquisition of the assets or as part of an item of expense. Receivables and payables in the consolidated statement of financial position are shown inclusive of GST or VAT. Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST or VAT component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(w) Earnings Per Share | (w) Earnings Per Share (i) Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. |
(x) Issued Capital | (x) Issued Capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration. |
(y) Related Party Transactions | (y) Related Party Transactions For the purpose of these consolidated financial statements, related party includes a person and entity as defined below: (i) A person, or a close member of that person's family, is related to the Group if that person: (i) has control or joint control over the Group; (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or the Group's parent. (ii) An entity is related to the Group if any of the following conditions applies: (i) the entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) both entities are joint ventures of the same third party. (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. (vi) the entity is controlled or jointly controlled by a person identified in (i). |
(z) Government grants | (z) Government grants Government grants are recognized at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expenses are recognised as income over the periods necessary to match grants to the costs are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the assets on a straight line basis. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(aa) Fair Value | (aa) Fair Value Fair values may be used for financial asset and liability measurement and for sundry disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is based on the presumption that the transaction takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market. The principal or most advantageous market must be accessible to, or by, the Group. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest. The fair value measurement of a non-financial asset takes into account the market participant's ability to generate economic benefits by using the asset at its highest and best use or by selling it to another market participant that would use the asset at its highest and best use. In measuring fair value, the Group uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. |
(ab) Financial assets | (ab) Financial assets The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Regular way purchases or sales of financial assets are recognized and derecognized on a trade date or settlement date basis for which financial assets were classified in the same way, respectively. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. (i) Category of financial assets and measurement Financial assets are classified into the following categories: financial assets at FVTPL, investments in debt instruments and equity instruments at FVTOCI, and financial assets at amortized cost. (i) Financial asset at FVTPL For certain financial assets which include debt instruments that do not meet the criteria of amortized cost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising from remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest earned on the financial asset. (ii) Investments in debt instruments at FVTOCI Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of collecting contractual cash flows and selling the financial assets, are measured at FVTOCI. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when these debt instruments are disposed. (iii) Investments in equity instruments at FVTOCI On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI. Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company's right to receive the dividends is established, unless the Company's rights clearly represent a recovery of part of the cost of the investment. (iv) Measured at amortized cost Cash and cash equivalents, debt instrument investments, notes and accounts receivable (including related parties), other receivables and refundable deposits are measured at amortized cost. Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of holding financial assets in order to collect contractual cash flows, are measured at amortized cost. (ii) Impairment of financial assets At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI. The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument. The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset. (iii) Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss. |
(ac) New, Revised or Amending Accounting Standards and Interpretations | (ac) New, Revised or Amending Accounting Standards and Interpretations (i) The Group has applied the following standards and amendments for first time in their annual reporting period commencing January 1, 2021: Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients: • A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest • Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued • Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component These amendments had no impact on the consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable. Covid-19-Related Rent Concessions beyond 30 June 2021 Amendments to IFRS 16 On 28 May 2020, the IASB issued Covid-19-Related Rent Concessions - amendment to IFRS 16 Leases The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification. The amendment was intended to apply until 30 June 2021, but as the impact of the Covid-19 pandemic is continuing, on 31 March 2021, the IASB extended the period of application of the practical expedient to 30 June 2022.The amendment applies to annual reporting periods beginning on or after 1 April 2021. However, the Group has not received Covid-19-related rent concessions but plans to apply the practical expedient if it becomes applicable within allowed period of application. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (ii) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations issued by the IASB which are not yet mandatorily applicable to the Group have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are set out as below and not expected to have a significant impact on the Group"s consolidated financial statements. The Group does not plan to adopt these standards early. New, Revised or Amended Standards and Interpretations Effective Date Issued by IASB Annual Improvements to IFRS Standards 2018-2020 Cycle "Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases and IAS 41 Agriculture" January 1, 2022 Amendments to IFRS 3 "Reference to the Conceptual Framework" January 1, 2022 Amendments to IFRS 10 and IAS 28 "Sales or Contribution of Assets between an Investor and its Associate or Joint Venture" To be determined by IASB Amendments to IAS 1 "Classification of Liabilities as Current or Non-current" January 1, 2023 Amendments to IAS 1 "Disclosure of Accounting Policies" January 1, 2023 Amendments to IAS 8 "Definition of Accounting Estimates" January 1, 2023 Amendments to IAS 12 "Deferred Tax related to Assets and Liabilities arising from a Single Transaction" January 1, 2023 Amendments to IAS 16 "Property, Plant and Equipment: Proceeds before Intended Use" January 1, 2022 Amendments to IAS 37 "Onerous Contracts - Costs of Fulfilling a Contract" January 1, 2022 |
(ad) Critical Accounting Judgments, Estimates and Assumptions | (ad) Critical Accounting Judgments, Estimates and Assumptions The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgments, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgments and estimates will seldom equal the related actual results. The judgments, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) Provision for impairment of receivables The provision for impairment of receivables assessment requires a degree of estimation and judgment. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtor's financial position. Refer to Note 12 for further details. (ii) Estimation of useful lives of assets The Group determines the estimated useful lives and related depreciation and amortization charges for its plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other events. The depreciation and amortization charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Please refer to Note 3(e) and 3(j) for further detail. |
NOTE 4. REVENUE AND SEGMENT I_2
NOTE 4. REVENUE AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:REVENUEANDSEGMENTINFORMATIONTableTextBlock] | Consolidated December 31, A$ December 31, A$ December 31, A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 3,980 1,427,157 1,273,921 Sales of software and technology solutions - - 1,504 Sales of air- filter products 189,133 317,472 - Total Revenue 193,113 1,744,629 1,275,425 Operating segments have been determined on the basis of reports reviewed by the executive director. The executive director is considered to be the chief operating decision maker of the Group. The executive director considers that the Group has assessed and allocated resources on this basis. The executive director considers that the Group has six operating segments for the year ended December 31, 2021 (2019: three and 2020: four), being (1) the development, sale and distribution of autostereoscopic 3D displays, conversion equipment, software and others, (2) the sale of electronic glass, (3) sale of nano coated plates and air filters, (4) provision of credit risk analysis, (5) IoT and (6) Corporate. Disaggregation of Revenue Timing of transfer of good or services 2021 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 3,980 - 3,980 Sales of air- filter products 189,133 - 189,133 Total Revenue 193,113 - 193,113 2020 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 1,342,444 84,713 1,427,157 Sales of air- filter products 317,472 - 317,472 Total Revenue 1,659,916 84,713 1,744,629 2019 At a point in time Over time A$ Total A$ Development, sales and distribution of 3D autostereoscopic products and conversion equipment 1,164,103 109,818 1,273,921 Sales of software and technology solutions 1,504 - 1,504 Total Revenue 1,165,607 109,818 1,275,425 NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) Revenue by geographic location The Group's operations are located in Korea, Hong Kong and China. The following table provides an analysis of the Group's sales by geographical markets based on locations of customers: |
Revenue by geographic location | Consolidated December 31, December 31, December 31, Hong Kong 3,980 1,366,200 1,195,150 China 6,846 60,956 80,275 Korea - 315,034 - USA 104,164 - - Malaysia 78,123 - - Other - 2,439 - 193,113 1,744,629 1,275,425 |
Non-current assets by geographic location | Consolidated December 31, 2021 A$ December 31, 2020 A$ December 31, 2019 A$ Australia 562,500 - - USA 4,599,618 - - Hong Kong 1,946,263 262,626 13,136,585 China 4,138,043 2,139,605 1,580,444 Korea 10,562,521 4,915,447 - 21,808,945 7,317,678 14,717,029 |
REVENUE AND SEGMENT INFORMATION
REVENUE AND SEGMENT INFORMATION - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue And Segment Information | |||
Development, sales and distribution of 3D autostereoscopic products and conversion equipment | $ 3,980 | $ 1,427,157 | $ 1,273,921 |
Sales of software and technology solutions | 1,504 | ||
Sales of air- filter products | 189,133 | 317,472 | |
Total Revenue | $ 193,113 | $ 1,744,629 | $ 1,275,425 |
Revenue by geographic location
Revenue by geographic location - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue By Geographic Location | |||
Hong Kong | $ 3,980 | $ 1,366,200 | $ 1,195,150 |
China | 6,846 | 60,956 | 80,275 |
Korea | 315,034 | ||
USA | 104,164 | ||
Malaysia | 78,123 | ||
Other | $ 2,439 |
Non-current assets by geographi
Non-current assets by geographic location - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current Assets By Geographic Location | |||
Australia | $ 562,500 | ||
USA | 4,599,618 | ||
Hong Kong | 1,946,263 | 262,626 | 13,136,585 |
China | 4,138,043 | 2,139,605 | 1,580,444 |
Korea | $ 10,562,521 | $ 4,915,447 |
NOTE 5. OTHER INCOME (Tables)
NOTE 5. OTHER INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INCOME | Consolidated December 31, A$ December 31, A$ December 31, A$ Government grant - 82,082 789,083 Sundry income 335,807 479 18,748 335,807 82,561 807,831 |
OTHER INCOME
OTHER INCOME - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income | |||
Government grant | $ 82,082 | $ 789,083 | |
Sundry income | $ 335,807 | $ 479 | $ 18,748 |
NOTE 6. FINANCE COSTS (Tables)
NOTE 6. FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCE COSTS | Consolidated December 31, December 31, December 31, A$ Bank overdraft and borrowing interest - 37,091 84,920 Interest on revolving loan 16,763 228,627 50,328 Interest on operating lease liability 88,818 32,526 109,675 Interest on convertible bonds - 109,811 1,316,702 Interest on convertible promissory notes (Note 22) 1,895,371 1,692,217 - 2,000,952 2,100,272 1,561,625 |
FINANCE COSTS
FINANCE COSTS - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance Costs | |||
Bank overdraft and borrowing interest | $ 37,091 | $ 84,920 | |
Interest on revolving loan | 16,763 | 228,627 | 50,328 |
Interest on operating lease liability | 88,818 | 32,526 | 109,675 |
Interest on convertible bonds | 109,811 | 1,316,702 | |
Interest on convertible promissory notes (Note 22) | $ 1,895,371 | $ 1,692,217 |
NOTE 7. LOSS BEFORE INCOME TAX
NOTE 7. LOSS BEFORE INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOSS BEFORE INCOME TAX | Consolidated December 31, A$ December 31, A$ December 31, A$ Employee benefit expenses: - Wages and salaries 851,073 1,482,072 3,352,495 - Defined contribution superannuation plan expenses 32,106 83,441 255,708 - Less: Labor cost allocated to development projects - (133,702) (289,126) 883,179 1,431,811 3,319,077 - Executive directors' remuneration 574,371 722,157 683,944 - Non-executive directors' remuneration 156,372 58,675 31,357 730,743 780,832 715,301 Total employee benefit expenses 1,613,922 2,212,643 4,034,378 Depreciation and amortization of non-current assets: - Leasehold improvements 18,978 10,385 44,698 - Office furniture and equipment 118,143 179,140 504,447 - Motor vehicles - - 18,757 - Machinery 1,049,125 172,982 - - Right of use assets 140,565 299,981 488,520 - Intangible assets - 1,416,274 2,118,362 Total depreciation and amortization 1,326,811 2,078,762 3,174,784 Other Expenses: Allowances for bad debts 14,390 58,932 11,052 Rental expense on operating lease 116,406 126,382 637,321 Reversal/(Provision) of allowance for inventory obsolescence (9,439) (17,671) 799,871 Audit and review of financial statements: - statutory audit of the Group in Australia - 25,000 55,157 - statutory audit of the Group in USA 185,272 76,780 435,899 - auditors of the subsidiaries in Hong Kong and China 10,922 - 14,246 - review for other reporting purposes 87,130 18,822 - Total audit and review fees 283,324 120,602 505,302 |
LOSS BEFORE INCOME TAX
LOSS BEFORE INCOME TAX - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Before Income Tax | |||
- Wages and salaries | $ 851,073 | $ 1,482,072 | $ 3,352,495 |
- Defined contribution superannuation plan expenses | 32,106 | 83,441 | 255,708 |
- Less: Labor cost allocated to development projects | (133,702) | (289,126) | |
- Executive directors' remuneration | 574,371 | 722,157 | 683,944 |
- Non-executive directors' remuneration | 156,372 | 58,675 | 31,357 |
Total employee benefit expenses | 1,613,922 | 2,212,643 | 4,034,378 |
- Leasehold improvements | 18,978 | 10,385 | 44,698 |
- Office furniture and equipment | 118,143 | 179,140 | 504,447 |
- Motor vehicles | 18,757 | ||
- Machinery | 1,049,125 | 172,982 | |
- Right of use assets | 140,565 | 299,981 | 488,520 |
- Intangible assets | 1,416,274 | 2,118,362 | |
Total depreciation and amortization | 1,326,811 | 2,078,762 | 3,174,784 |
Allowances for bad debts | 14,390 | 58,932 | 11,052 |
- statutory audit of the Group in Australia | 25,000 | 55,157 | |
- statutory audit of the Group in USA | 185,272 | 76,780 | 435,899 |
- auditors of the subsidiaries in Hong Kong and China | 10,922 | 14,246 | |
- review for other reporting purposes | 87,130 | 18,822 | |
Total audit and review fees | $ 283,324 | $ 120,602 | $ 505,302 |
NOTE 8. INCOME TAX (EXPENSE) _2
NOTE 8. INCOME TAX (EXPENSE) / CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:IncomeTaxExpenseCreditTableTextBlock] | Consolidated December 31, A$ December 31, A$ December 31, A$ Income tax expenses - - - Deferred tax expenses - - (117,322) Income tax expenses - - (117,322) (a) The prima-facie tax on loss before income tax is reconciled to the income tax expense as follows: Consolidated December 31, A$ December 31, A$ December 31, Numerical reconciliation of income tax expense to prima facie tax payable Loss before income tax (6,585,626) (10,543,548) (16,582,877) Income tax expenses on loss before income tax at 30% 1,975,688 3,163,064 4,974,863 Difference in overseas tax rates (401,475) (148,299) (3,260,006) Add / (less) the tax effect of: Tax losses and temporary differences for the year for which no deferred tax is recognized (1,574,213) (3,014,765) (1,832,179) Income tax expenses - - (117,322) (b) Deferred tax liabilities arising from temporary differences and unused tax losses can be summarized as follows: Consolidated December 31, A$ December 31, A$ Balance brought forward (13,668) (1,372,653) Written off of the deferred tax liabilities - - Release of disposal of subsidiaries - 1,380,402 Exchange difference 13,668 (21,417) Total - (13,668) |
INCOME TAX (EXPENSE) _ CREDIT
INCOME TAX (EXPENSE) / CREDIT - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense Credit | |||
Income tax expenses | |||
Deferred tax expenses | (117,322) | ||
Income tax expenses | $ (117,322) |
NOTE 10. LOSS PER SHARE (Tables
NOTE 10. LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | Consolidated December 31, December 31, December 31, Loss after income tax attributable to shareholders A$(5,771,510) A$(10,034,077) A$(15,646,147) Number of ordinary shares 9,329,420 6,513,671 3,377,386 Weighted average number of ordinary shares on issue 8,292,403 4,311,360 3,377,386 Basic and diluted loss per share A$(0.70) A$ (2.33) A$ (4.63) |
LOSS PER SHARE
LOSS PER SHARE - AUD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Per Share | |||
Loss after income tax attributable to shareholders | $ (5,771,510) | $ (10,034,077) | $ (15,646,147) |
Number of ordinary shares | 9,329,420 | 6,513,671 | 3,377,386 |
Weighted average number of ordinary shares on issue | 8,292,403 | 4,311,360 | 3,377,386 |
Basic and diluted loss per share | $ (0.70) | $ (2.33) | $ (4.63) |
NOTE 11. INVENTORIES (Tables)
NOTE 11. INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | Consolidated December 31, December 31, Raw materials - 296,472 Finished goods - displays and other products - 529,080 Provision for inventories obsolescence - (638,151) Total - 187,401 |
INVENTORIES
INVENTORIES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Inventories Abstract | ||
Raw materials | $ 296,472 | |
Finished goods - displays and other products | 529,080 | |
Provision for inventories obsolescence | (638,151) | |
Total | $ 187,401 |
NOTE 12. TRADE AND OTHER RECE_2
NOTE 12. TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:TradeAndOtherReceivablesTableTextBlock] | Consolidated December 31, A$ December 31, A$ Trade receivables 480,095 1,233,709 Other receivables 20,482 1,689 500,577 1,235,398 Less: Allowances for doubtful debts (14,456) (70,793) 486,121 1,164,605 (a) Ageing Analysis The ageing analysis of trade receivables is as follows: |
Ageing Analysis | Consolidated December 31, A$ December 31, A$ Past due: < 31 days Less than 31 days 190,969 711,754 31 - 90 days - 394,384 > 90 days 289,126 127,571 480,095 1,233,709 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade And Other Receivables | ||
Trade receivables | $ 480,095 | $ 1,233,709 |
Other receivables | 20,482 | 1,689 |
Less: Allowances for doubtful debts | $ (14,456) | $ (70,793) |
Ageing Analysis
Ageing Analysis - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Ageing Analysis Abstract | ||
Less than 31 days | $ 190,969 | $ 711,754 |
31 - 90 days | 394,384 | |
> 90 days | $ 289,126 | $ 127,571 |
NOTE 13. OTHER ASSETS (Tables)
NOTE 13. OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER ASSETS | Consolidated December 31, December 31, Prepayments - 50,382 Trade deposits 432,236 692,026 Other deposits 1,574,128 1,347,360 VAT receivable 272 129 2,006,636 2,089,897 |
OTHER ASSETS
OTHER ASSETS - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Assets | ||
Prepayments | $ 50,382 | |
Trade deposits | 432,236 | 692,026 |
Other deposits | 1,574,128 | 1,347,360 |
VAT receivable | $ 272 | $ 129 |
NOTE 14. PLANT AND EQUIPMENT (T
NOTE 14. PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PLANT AND EQUIPMENT | Consolidated Leasehold Improvements A$ Fixtures and Equipment A$ Machinery A$ Total A$ |
NOTE 15. INTANGIBLE ASSETS AN_2
NOTE 15. INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS AND GOODWILL | Consolidated Goodwill A$ Technologies and Knowhow A$ Patents and Trademark A$ Software and License A$ Total A$ Cost As of January 1, 2020 14,578,707 14,880,322 1,283,700 531,471 31,274,200 Additions - 446,786 36,688 3,771 487,245 Disposal (14,578,707) 8,927,601 (976,692) (2,680) (24,485,680) Exchange difference - (181,683) (107,168) (45,698) (334,549) As of December 31, 2020 - 6,217,824 236,528 486,864 6,941,216 As of January 1, 2021 - 6,217,824 236,528 486,864 6,941,216 Additions - 1,900,589 - - 1,900,589 As of December 31, 2021 - 8,118,413 236,528 486,864 8,841,805 Accumulated Amortization and Impairment Losses As of January 1, 2020 (14,578,707) (6,157,872) (390,491) (196,327) (21,323,397) Amortization - (1,238,718) (82,474) (95,082) (1,416,274) Provision for impairment - (3,155,932) (81,875) (221,533) (3,459,340) Disposal 14,578,707 4,617,299 288,570 - 19,484,576 Exchange difference - (282,601) 29,742 26,078 (226,781) As of December 31, 2020 - (6,217,824) (236,528) (486,864) (6,941,216) As of January 1, 2021 - (6,217,824) (236,528) (486,864) (6,941,216) As of December 31, 2021 - (6,217,824) (236,528) (486,864) (6,941,216) Carrying Amount As of December 31, 2021 - 1,900,589 - - 1,900,589 As of December 31, 2020 - - - - - |
NOTE 16. FINANCIAL ASSETS AT _2
NOTE 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | Consolidated December 31 2021 A$ December 31 2020 A$ Investment in equity instrument designated at FVOCI Investment in Listed Shares 562,500 - |
FINANCIAL ASSETS AT FAIR VALUE
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Assets At Fair Value Through Other Comprehensive Income | ||
Investment in Listed Shares | $ 562,500 |
NOTE 17. TRADE AND OTHER LIAB_2
NOTE 17. TRADE AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER LIABILITIES | Consolidated December 31, A$ December 31, A$ Trade payables (Note 29 (diii)) 142,325 146,730 Accruals 1,014,368 385,888 Trade deposits received - 630,523 Other borrowing (i) - 211,567 Other payables 1,268,024 2,214,456 2,424,717 3,589,164 |
TRADE AND OTHER LIABILITIES
TRADE AND OTHER LIABILITIES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade And Other Liabilities | ||
Trade payables (Note 29 (diii)) | $ 142,325 | $ 146,730 |
Accruals | 1,014,368 | 385,888 |
Trade deposits received | 630,523 | |
Other borrowing (i) | 211,567 | |
Other payables | $ 1,268,024 | $ 2,214,456 |
NOTE 18. AMOUNTS DUE TO RELAT_2
NOTE 18. AMOUNTS DUE TO RELATED COMPANIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Note 18. Amounts Due To Related Companies | |
AMOUNTS DUE TO RELATED COMPANIES | Consolidated December 31, A$ December 31, A$ Current portion 247,406 237,674 247,406 237,674 |
AMOUNTS DUE TO RELATED COMPANIE
AMOUNTS DUE TO RELATED COMPANIES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts Due To Related Companies | ||
Current portion | $ 247,406 | $ 237,674 |
NOTE 19. AMOUNT DUE TO HOLDIN_2
NOTE 19. AMOUNT DUE TO HOLDING COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Note 19. Amount Due To Holding Company | |
AMOUNT DUE TO HOLDING COMPANY | Consolidated December 31, A$ December 31, A$ Current portion - 532,718 - 532,718 |
AMOUNT DUE TO HOLDING COMPANY
AMOUNT DUE TO HOLDING COMPANY - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amount Due To Holding Company | ||
Current portion | $ 532,718 |
NOTE 20. LEASES (Tables)
NOTE 20. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:LeasesTableTextBlock] | Consolidated Lease Properties Motor Vehicles Total A$ A$ A$ As of January 1, 2020 1,064,986 42,906 1,107,892 Depreciation expenses (287,557) (12,427) (299,984) Disposal (862,109) (3,887) (865,996) Exchange difference 84,680 (26,592) 58,088 As of December 31, 2020 - - - Additions 2,086,229 - 2,086,229 Depreciation expenses (140,565) - (140,565) Exchange difference 13,205 - 13,205 As of December 31, 2021 1,958,869 - 1,958,869 (b) Lease liabilities Consolidated December 31, A$ December 31, A$ Within one year 425,567 - Two to five years 1,403,932 - 1,829,499 - Less: Amount due within one year shown under current liabilities (425,567) - Amount due after one year 1,403,932 - Analyzed into: Current portion 425,567 - Non-current portion 1,403,932 - 1,829,499 - |
LEASES
LEASES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Within one year | $ 425,567 | |
Two to five years | 1,403,932 | |
Less: Amount due within one year shown under current liabilities | (425,567) | |
Amount due after one year | 1,403,932 | |
Current portion | 425,567 | |
Non-current portion | $ 1,403,932 |
NOTE 21. DERIVATIVE FINANCIAL_2
NOTE 21. DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | Consolidated December 31, December 31, Derivative financial liabilities: Carrying value as at beginning of year 1,478,540 - Derivates related to convertible promissory note (Note 22) - 3,790,737 Fair value change in derivative financial instruments during the year 842,463 (2,312,197) Exchange difference - - Carrying value as at end of year 2,321,003 1,478,540 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Financial Instruments | ||
Carrying value as at beginning of year | $ 1,478,540 | |
Derivates related to convertible promissory note (Note 22) | 3,790,737 | |
Fair value change in derivative financial instruments during the year | 842,463 | (2,312,197) |
Exchange difference | ||
Carrying value as at end of year | $ 2,321,003 | $ 1,478,540 |
NOTE 22. CONVERTIBLE PROMISSO_2
NOTE 22. CONVERTIBLE PROMISSORY NOTES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Note 22. Convertible Promissory Notes | |
CONVERTIBLE PROMISSORY NOTES | Consolidated December 31, A$ December 31, A$ Face value of convertible promissory note issued on January 20, 2020 (note i) 2,621,360 2,621,360 Face value of convertible promissory note issued on August 6, 2020 (note ii) 2,291,740 2,291,740 Debt discount (3,790,737) (3,790,737) Liability component on initial recognition 1,122,363 1,122,363 Interest accrued but not yet paid for the period (Note 6) 3,587,588 1,692,217 Interest paid during the year (185,469) (185,469) Exchange differences (213,066) (433,062) Carrying value as at end of year 4,311,416 2,196,049 |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES - AUD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Convertible Promissory Notes | ||
Face value of convertible promissory note issued on January 20, 2020 (note i) | $ 2,621,360 | $ 2,621,360 |
Face value of convertible promissory note issued on August 6, 2020 (note ii) | 2,291,740 | 2,291,740 |
Debt discount | (3,790,737) | (3,790,737) |
Liability component on initial recognition | 1,122,363 | 1,122,363 |
Interest accrued but not yet paid for the period (Note 6) | 3,587,588 | 1,692,217 |
Interest paid during the year | (185,469) | (185,469) |
Exchange differences | (213,066) | (433,062) |
Carrying value as at end of year | $ 4,311,416 | $ 2,196,049 |
NOTE 23. CONTROLLED ENTITIES (T
NOTE 23. CONTROLLED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONTROLLED ENTITIES | Name of Subsidiary Country of Incorporation Principal Activities Paid Up Capital Percentage Owned 2021 2020 CIMC Marketing Pty Limited Australia Management services & Investment holding A$1 100% (Direct) 100% (Direct) Grand Dynasty Limited* Hong Kong Investment Holding HK$ 1 100% (Direct) - Grand Dynasty (Zhenjiang) Co., Limited* P.R.C Dormant RMB 1 100% (Indirect) - Greifenberg Digital Limited* Canada Investment Holding US$1 40.75% (Direct) - Greifenberg Analytics Limited* Canada Online analytic financial research services US$1 40.75% (Indirect) - Greifenberg Capital Limited* Hong Kong Administrative services HK$1 40.75% (Indirect) - IMTE Limited (Formerly known as Great Gold Investment Limited) Hong Kong Treasury and Administrative services HK$1 100% (Direct) 100% (Direct) IMTE Asia Limited* Hong Kong Administrative services HK$1 100% (Direct) - Itana Holdings Limited* Canada Investment Holding US$1 100% (Direct) - Renfrew International Limited* United State Investment Holding US$1 100% (Direct) - Lonsdale International Limited* United State Investment Holding US$1 100% (Direct) - Smart (Zhenjiang) Intelligent Technology Limited (Formerly known as Smart (Shenzhen) Technology Limited) P.R.C. Marketing, manufacturing and distribution RMB 5,000,000 100% (Indirect) 100% (Indirect) Smartglass Limited Hong Kong Sales of distribution of switchable glass and consultancy services HK$8 100% (Direct) 100% (Direct) Sunup Holdings Limited Hong Kong Manufacturing of filter plates US$ 1,290 51% (Direct) 51% (Direct) Sunup Korea Limited Hong Kong Sale of filter plates and air filter products US$ 0.13 51% (Indirect) 51% (Indirect) Binario Limited # British Virgin Island Investment Holding A$ 1 - 100% (Direct) Colour Investment Limited # Hong Kong Investment holdings HK$ 43,043,130 - 100% (Direct) Cystar International Limited # Hong Kong Sales of software and provision of consultancy services HK$ 1 - 100% (Indirect) Cystar International (Shenzhen) Limited # P.R.C. Dormant RMB 379,141 - 100% (Indirect) Digital Media Technology Limited # Malaysia Dormant US$ 100 - 100% (Indirect) GOXD International Limited # Hong Kong Distribution of Digital Picture Frame HK$ 56,803,913 - 80% (Indirect) |
NOTE 24. BUSINESS COMBINATIONS
NOTE 24. BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:BusinessCombinationsTableTextBlock] | 2021 2020 2019 A$ A$ A$ Total disposal consideration 538 25,129 - Carrying amount of net asset sold (note(i) below) 270,908 (230,294) - Gain on sales before income tax and reclassification of foreign currency translation reserve (270,370) 255,423 - Reclassification of foreign currency transaction reserve 645,399 (26,871) - Non-controlling interest 1,623,240 (257,542) - Gain/ (loss) on disposal after income tax 1,998,269 (28,990) - (i) Net assets disposed of: 2021 2020 2019 A$ A$ A$ Plant and equipment 164,829 284,240 - Development projects - 2,864,052 - Intangible assets - 4,790,784 - Right of use assets - 865,996 - Cash and bank balances 32,927 99,061 - Inventories 208,737 400,806 - Trade and others receivable 689,336 603,923 - Other deposit and prepayment 779,821 1,664,343 - Trade and other liabilities (1,560,899) (912,580) - Amount due to a related company (4,951) (6,689,290) - Bank overdraft - (929,438) - Bank loan - (966,747) - Lease liabilities - (925,042) - Income tax payables - - - Deferred tax liabilities (38,892) (1,380,402) - Obligation under finance lease - (33,329) - 270,908 (230,294) - (ii) Net cash flows from disposal of subsidiaries 2021 2020 2019 A$ A$ A$ Consideration received, satisfied in cash - 25,129 - Cash and cash equivalents of subsidiaries disposed of (included cash at bank and bank overdraft) 32,927 830,377 - 32,927 855,506 - |
NOTE 25. ISSUED CAPITAL (Tables
NOTE 25. ISSUED CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:IssuedCapitalTableTextBlock] | December 31, 2021 December 31, 2020 December 31, 2019 Number of shares A$ Number of shares A$ Number of shares A$ Ordinary Shares fully paid 9,329,420 48,144,406 6,513,671 32,089,997 3,377,386 18,902,029 (b) Movements in ordinary share capital Number of Shares A$ January 1, 2019 3,377,386 18,902,029 Issue of shares during the year 2019 - - December 31, 2019 3,377,386 18,902,029 Issue of shares for cash 1,643,406 7,121,283 Issue of shares for conversion of debt 988,408 4,122,562 Issue of shares for services 4,471 23,249 Issue of shares for acquisition of shares in subsidiary companies 500,000 2,060,000 Legal expenses in respect of issuance of shares - (139,126) December 31, 2020 6,513,671 32,089,997 Issue of shares for services 20,512 97,282 Issue of shares for cash 2,795,237 16,019,301 Legal expenses in respect of issuance of shares - (62,174) December 31, 2021 9,329,420 48,144,406 |
NOTE 27. COMMITMENTS (Tables)
NOTE 27. COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS | Payment due by December 31 Total 2022 2023 2024 2025 2026 A$ A$ A$ A$ A$ A$ Operating lease commitments for property management expenses under lease agreements 1,439,299 300,553 287,535 299,373 314,342 237,496 |
NOTE 28. FINANCIAL RISK MANAG_2
NOTE 28. FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:FinancialRiskManagementTableTextBlock] | Weighted average effective interest rate Floating interest rate Non-interest bearing A$ Total A$ 2021 Financial Assets Cash and cash equivalents 0.18% 203,857 70,910 274,767 Trade and other receivables - 486,121 486,121 Other assets - 13,465,831 13,465,831 Total Financial Assets 203,857 14,022,862 14,226,719 Financial Liabilities Trade and other payables 8% - 2,424,717 2,424,717 Amounts due to related companies - 247,406 247,406 Lease liability 2.5% - 1,829,499 1,829,499 Convertible promissory notes 10% 4,311,416 - 4,311,416 Total Financial Liabilities 4,311,416 4,501,622 8,813,038 2020 Financial Assets Cash and cash equivalents 0.39% 2,037,502 156,582 2,194,084 Trade and other receivables - 1,164,605 1,164,605 Other assets - 2,089,897 2,089,897 Total Financial Assets 2,037,502 3,411,084 5,448,586 Financial Liabilities Trade and other payables 8% 211,567 2,747,074 2,958,641 Trade deposits received - 630,523 630,523 Amounts due to related companies - 237,674 237,674 Amount due to ultimate holding company - 532,718 532,718 Convertible promissory notes 10% 2,196,049 - 2,196,049 Total Financial Liabilities 2,407,616 4,147,989 6,555,605 NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (c) Foreign currency risk The Group has net assets denominated in certain foreign currencies as at December 31, 2021. Foreign currency denominated financial assets and liabilities which expose the Group to currency risk are disclosed below. The amounts are those reported to key management translated into AUD at the following closing rates, HK$0.17658, US$1.3769 and RMB1.22518: Short term exposure Long term exposure HK$ US$ RMB HK$ US$ RMB December 31, 2021 Financial assets - Cash and cash equivalents 70,053 187,400 13,295 - - - - Trade and other receivables 3,279 457,798 21,851 - - - - Other assets 63,841 13,323,142 78,576 - - - Financial liabilities - Trade and other liabilities (712,801) (1,142,816) (125,876) - - - - Amounts due to related companies - (247,406) - - - - - Convertible promissory notes (2,512,137) (1,799,278) - - - - - Derivates on financial statements (1,220,904) (1,100,099) - - - - Total exposure (4,308,669) 9,678,741 (12,154) - - - Short term exposure Long term exposure HK$ US$ RMB HK$ US$ RMB December 31, 2020 Financial assets - Cash and cash equivalents 156,753 2,029,569 65 - - - - Trade and other receivables 864,845 298,071 - - - - - Other assets 774,532 1,315,236 129 - - - Financial liabilities - Trade and other liabilities (1,219,242) (1,905,180) - - - - - Amounts due to related companies (4,592) (233,082) - - - - - Amount due to ultimate holding company (532,718) - - - - - - Convertible promissory notes - - - (981,459) (1,214,590) - - Derivates on financial statements - - - (438,286) (1,040,254) - Total exposure 39,578 1,504,614 194 (1,419,745) (2,254,844) - NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) The following table illustrates the sensitivity of loss and equity in regard to the Group's financial assets and financial liabilities and the HK$/AUD exchange rate, US$/AUD exchange rate and RMB/AUD exchange rate and assure "all other things being equal'. It assumes a +/- 5% change of the AUD/HK$ exchange rate for the year ended at December 31, 2021 (2020: 5%). A +/- 5% change is considered for the AUD/US$ exchange rate (2020: 5%). A +/- 10% change is considered for the AUD/RMB exchange rate (2020: 10%). These percentages have been determined based on the average market volatility in exchange rates in the previous twelve (12) months. The sensitivity analysis is based on the Group's foreign currency financial instruments held at each reporting date and also takes into account forward exchange contracts that offset effects from changes in currency exchange rates. If the AUD had strengthened against the HK$ by 5% (2020: 5%), the US$ by 5% (2020: 5%) and the RMB by 10% (2020: 10%) respectively then this would have had the following impact: Loss for the year Equity HK$ US$ RMB Total HK$ US$ RMB Total December 31, 2021 215,433 (483,937) 1,215 (267,289) 215,433 (483,937) 1,215 (267,289) December 31, 2020 69,008 37,512 (19) 106,501 69,008 37,512 (19) 106,501 If the AUD had weakened against the HK$ by 5% (2020: 5%), the US$ by 5% (2020: 5%) and the RMB by 10% (2020: 10%) respectively then this would have had the following impact: Loss for the year Equity HK$ US$ RMB Total HK$ US$ RMB Total December 31, 2021 (215,433) 483,937 (1,215) 267,289 (215,433) 483,937 (1,215) 267,289 December 31, 2020 (69,008) (37,512) 19 (106,501) (69,008) (37,512) 19 (106,501) Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Group's exposure to currency risk. NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (d) Liquidity risk management Prudent liquidity risk management implies maintaining sufficient cash and term deposits, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The following tables detail the Group's remaining contractual maturity for its non-derivative financial liabilities based on the agreed repayment terms or the earliest date on which the Group can be required to pay. The table has been drawn up based on the undiscounted cash flows of financial liabilities and include both interest and principal cash flows. 2021 Total contractual 0 - 30 days Carrying undiscounted or on 31 - 90 91 - 365 Over amount cash flow demand days Days 1 year A$ A$ A$ A$ A$ A$ Trade and other liabilities 2,424,717 2,424,717 2,424,717 - - - Amounts due to related companies 247,406 247,406 247,406 - - - Lease liability 1,829,499 1,829,499 - - 425,567 1,403,932 Convertible promissory notes 4,311,416 4,311,416 4,311,416 - - - 8,813,038 8,813,038 6,983,539 - 425,567 1,403,932 2020 Total contractual 0 - 30 days Carrying undiscounted or on 31 - 90 91 -365 Over amount cash flow demand days Days 1 year A$ A$ A$ A$ A$ A$ Trade and other liabilities 2,958,911 2,958,911 2,958,911 - - - Trade deposits received 630,523 630,523 630,523 - - - Amounts due to related companies 237,674 237,674 - - - 237,674 Amount due to ultimate holding company 532,718 532,718 532,718 - - - Convertible promissory notes 2,196,049 2,448,048 21,402 61,447 169,150 2,196,049 6,555,875 6,807,874 4,143,554 61,447 169,150 2,433,723 NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) (e) Credit risk Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in a financial loss to the Group. The Group's potential concentration of credit risk consists mainly of cash deposits with banks and trade receivables with its customers. The Group's short term cash surpluses are placed with banks that have investment grade ratings. The Group considers the credit standing of counterparties and customers when making deposits and sales, respectively, to manage the credit risk. The Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Group. Considering the nature of the business at current, the Group believes that the credit risk is not material to the Group's operations. The maximum exposure to credit risk, excluding the value of any collateral or other security, at the end of the reporting period, to financial assets, is represented by the carrying amount of cash and bank balances, trade and other receivables, net of any provisions for doubtful debts, as disclosed in the consolidated statement of financial positions and notes to the consolidated financial statements. (f) Fair value of financial instruments The following liability is recognized and measured at fair value on a recurring basis: - Derivative financial instruments Fair value hierarchy All assets and liabilities for which fair value is measured or disclosed are categorized according to the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Recognized fair value measurements The following table sets out the Group's assets and liabilities that are measured at fair value in the consolidated financial statements. Level 2 A$ Derivative financial instruments December 31, 2021 2,321,003 December 31, 2020 1,478,540 The Group does not have any assets and liabilities that qualify for the level 1 category. There were no transfers between level 1, 2 and 3 during the year. An instrument is included in level 2 if the financial instrument is not traded in an active market and if the fair value is determined by using valuation techniques based on the maximum use of observable market data for all significant inputs. For the derivatives, the Group uses the estimated fair value of financial instruments determined by using available market information and appropriate valuation methods, including relevant credit risks. The estimated fair value approximates to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Specific valuation techniques used to value financial instruments include: • quoted market prices or dealer quotes for similar instruments; and • binomial options pricing models. NOTE 28. FINANCIAL RISK MANAGEMENT (Continued) The reconciliation of the opening and closing fair value balance of level 2 financial instruments is provided below: Put Option A$ At January 1, 2021 - Issuance of derivatives at fair value 1,478,540 Gain included in profit or loss on change in fair value 842,463 At December 31, 2021 2,321,003 |
NOTE 29. RELATED PARTIES (Table
NOTE 29. RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:TransactionsWithDirectorsTableTextBlock] | Company December 31, A$ December 31, A$ December 31, A$ Short term benefits (1) 730,743 780,832 715,301 Post-employment benefits - - - Total 730,743 780,832 715,301 (1) NOTE 29. RELATED PARTIES (c) Other related party transactions During the years ended December 31, 2021, 2020 and 2019, the Group has the following material transactions with its related parties: |
Other related party transactions | Consolidated December 31, A$ December 31, A$ December 31, A$ Revenue received from related parties (1) - 8,490 - General consultancy and management fee paid to a related party (1) - 282,971 571,519 Purchase of products from related parties (1) - 29,794 22,588 Interest income earned from the former ultimate holding company (1) - - 115,678 Group Secretarial, taxation service and interim CFO fee paid to a related company (2) - - 40,000 Company Secretarial, taxation service and CFO fee paid to a related company (3) 561,758 607,659 523,196 Consultancy fee paid to a related party (6) 225,860 - - Purchase of products from a related party (4) - 274,417 501,062 Sales to a related party (5) - 315,034 - |
Transactions with directors
Transactions with directors - AUD ($) | 12 Months Ended | 24 Months Ended | 36 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | |
Transactions With Directors | |||
Short term benefits (1) | $ 730,743 | $ 780,832 | $ 715,301 |
Post-employment benefits | |||
Total | $ 730,743 | $ 780,832 | $ 715,301 |
Other related party transaction
Other related party transactions - AUD ($) | 12 Months Ended | 24 Months Ended | 36 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | |
Other Related Party Transactions | |||
Revenue received from related parties (1) | $ 8,490 | ||
General consultancy and management fee paid to a related party (1) | 282,971 | 571,519 | |
Purchase of products from related parties (1) | 29,794 | 22,588 | |
Interest income earned from the former ultimate holding company (1) | 115,678 | ||
Group Secretarial, taxation service and interim CFO fee paid to a related company (2) | 40,000 | ||
Company Secretarial, taxation service and CFO fee paid to a related company (3) | 561,758 | 607,659 | 523,196 |
Consultancy fee paid to a related party (6) | 225,860 | ||
Purchase of products from a related party (4) | 274,417 | 501,062 | |
Sales to a related party (5) | $ 315,034 |
NOTE 30. CASH FLOW INFORMATION
NOTE 30. CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
[custom:CashFlowInformationTableTextBlock] | Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Convertible promissory notes Lease liabilities Derivative embedded in convertible bonds issued Issue of shares Total A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2021 237,674 211,567 - 532,718 2,196,049 - 1,478,540 13,187,968 17,844,516 Cash flows from financing activities - - - (562,201) - (138,156) - 16,054,409 15,354,052 Inception of lease - - - - - 2,086,229 - - 2,086,229 Interest - - - - 1,848,947 28,371 - - 1,877,318 Put option liabilities in convertible bonds issued - - - - - - - - - Fair value change - 842,463 842,463 Disposal of plant and equipment (4,951) - - - - - - - (4,951) Foreign exchange movement 14,683 - - 29,483 266,420 (146,945) - - 163,641 Ending balance as of 31 December 2021 247,406 211,567 - - 4,311,416 1,829,499 2,321,003 29,242,377 38,163,268 NOTE 30. CASH FLOW INFORMATION Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Convertible promissory notes Convertible bonds by a subsidiary Lease liabilities Derivative embedded in convertible bonds issued Issue of shares Total A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2020 6,101,850 1,761,309 915,300 582,832 - 4,420,899 1,168,607 - - 14,950,797 Cash flows from financing activities 840,509 211,567 - - 4,913,100 (4,668,195) (320,851) - 13,187,968 14,164,098 Non-cash movement: Settled by issuing convertible promissory note - (1,761,309) - - - - - - - (1,761,309) Fair value change - - - - - - - (2,312,197) - (2,312,197) Put option liabilities in convertible bonds issued - - - - (3,790,737) - - 3,790,737 - - Interest - - - - 1,508,421 - - - - 1,508,421 Disposal of plant and equipment (6,689,290) - (966,747) - - - (925,042) - - (8,581,079) Foreign exchange movement (15,395) - 51,447 (50,114) (434,735) 247,296 77,286 - - (124,215) Ending balance as of 31 December 2020 237,674 211,567 - 532,718 2,196,049 - - 1,478,540 13,187,968 17,844,516 NOTE 30. CASH FLOW INFORMATION Amounts due to related companies Other liabilities Bank borrowings, net Amount due to holding company Obligation under finance lease Convertible bonds by a subsidiary Lease liabilities Derivative embedded in convertible bonds issued Total A$ A$ A$ A$ A$ A$ A$ A$ A$ Beginning balance as of 1 January 2019 2,130,368 - 814,365 172,773 - 3,280,744 1,163,778 126,095 7,688,123 Cash flows from financing activities 3,954,460 2,610,091 90,049 501,343 - - (573,010) - 6,583,113 Non-cash movement: Unpaid interest - - - - - 1,107,310 109,027 - 1,216,337 Interest - - - (96,965) - - 648 - (96,317) Inception of new lease - - - - - - 458,990 - 458,990 Fair value change - - - - - - - (127,551) (127,551) Disposal of plant and equipment - (848,782) - - - - - - (848,782) Foreign exchange movement 16,842 - 10,886 5,681 - 32,845 9,174 1,456 76,884 Ending balance as of 31 December 2019 6,101,850 1,761,309 915,300 582,832 - 4,420,899 1,168,607 - 14,950,797 NOTE 30. CASH FLOW INFORMATION (Continued) (b) Net cash inflows / (outflows) from changes in working capital |
Ne tCash Inflows / (Outflows) | Consolidated December 31, A$ December 31, A$ December 31, A$ Cash flows from changes in working capital (Increase) / Decrease in assets: Trade and other receivables (105,014) (1,016,464) (137,579) Inventories - 142,608 405,891 Other assets (295,635) (1,659,728) (361,676) Increase / (Decrease) in liabilities: Trade and other liabilities (318,544) 347,308 1,876,414 Net cash (outflows)/ inflows from changes in working capital (719,193) (2,186,276) 1,783,050 |
Ne tCash Inflows _ (Outflows)
Ne tCash Inflows / (Outflows) - AUD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Ne Tcash Inflows | |||
Trade and other receivables | $ (105,014) | $ (1,016,464) | $ (137,579) |
Inventories | 142,608 | 405,891 | |
Other assets | (295,635) | (1,659,728) | (361,676) |
Trade and other liabilities | (318,544) | 347,308 | 1,876,414 |
Net cash (outflows)/ inflows from changes in working capital | $ (719,193) | $ (2,186,276) | $ 1,783,050 |
NOTE 31. KEY MANAGEMENT PERSO_2
NOTE 31. KEY MANAGEMENT PERSONNEL DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Remuneration | Consolidated December 31, A$ December 31, A$ December 31, A$ Short-term employee benefits 1,929,914 1,586,604 1,645,794 Post-employment benefits 6,196 5,124 7,703 Total 1,936,110 1,591,728 1,653,497 |
Remuneration
Remuneration - AUD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Remuneration Abstract | |||
Short-term employee benefits | $ 1,929,914 | $ 1,586,604 | $ 1,645,794 |
Post-employment benefits | 6,196 | 5,124 | 7,703 |
Total | $ 1,936,110 | $ 1,591,728 | $ 1,653,497 |
NOTE 32. PARENT ENTITY INFORM_2
NOTE 32. PARENT ENTITY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Note 32. Parent Entity Information | |
[custom:StatementofComprehensiveIncomeTableTextBlock] | Company December 31, 2021 A$ December 31, 2020 A$ December 31, 2019 A$ Loss after income tax 9,287,226 2,097,600 1,635,241 Other comprehensive income - - - Total comprehensive loss 9,287,226 2,097,600 1,635,241 Statement of Financial Position |
Statement of Financial Position | Company December 31, 2021 December 31, 2020 A$ A$ Total non-current assets 1,245 2,382 Total current assets 39,664,914 28,456,242 Total assets 39,666,159 28,458,624 Total current liabilities 6,064,179 5,931,676 Total liabilities 6,064,179 5,931,676 Total assets less liabilities 33,601,980 22,526,948 Equity Issued capital 48,144,406 32,089,997 Accumulated losses (14,542,426) (9,563,049) Total equity 33,601,980 22,526,948 |
Statement of Comprehensive Inco
Statement of Comprehensive Income - AUD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Comprehensive Income | |||
Loss after income tax | $ 9,287,226 | $ 2,097,600 | $ 1,635,241 |
Other comprehensive income | |||
Total comprehensive loss | $ 9,287,226 | $ 2,097,600 | $ 1,635,241 |
Statement of Financial Position
Statement of Financial Position - AUD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position | ||
Total non-current assets | $ 1,245 | $ 2,382 |
Total current assets | 39,664,914 | 28,456,242 |
Total assets | 39,666,159 | 28,458,624 |
Total current liabilities | 6,064,179 | 5,931,676 |
Total liabilities | 6,064,179 | 5,931,676 |
Total assets less liabilities | 33,601,980 | 22,526,948 |
Issued capital | 48,144,406 | 32,089,997 |
Accumulated losses | (14,542,426) | (9,563,049) |
Total equity | $ 33,601,980 | $ 22,526,948 |