Ann: Appendix 4E - FY 2022, page-2

2022 Financials.
Boy what a bin fire !!!

Profit & Loss
85% of revenue came from one customer - Brazil.

Total operating expenses were $13.6m

$5.4m in admin costs. These would be mostly staff costs. Bear in mind the new US and UK staff were engaged in the last few months of the year and so this year the costs will be higher.

$3.8m in professional fees. $627k paid to auditors, a large part of the rest would be legal fees. The company engages one of the most expensive corporate law firms in the country. They specialise in protecting corporates - not shareholders.

$1.6m in direct salaries to key management personnel.

$1.5m in defective stock was written off. They say the balance of inventory in the Balance Sheet $2.4m represents stock that is associated with a committed order or with MOA's under contract negotiation.
Sounds like they are expecting around $5m in sales for 2023. This won't even cover their wages bill.

All Plant & Equipment is written off. Also patents and any value in lease contracts.
The reasons given for these write-offs is basically this - "the impairment loss reflects the uncertainty regarding the future operating performance of the group in light of the loss incurred in the current year, the low volumes currently being achieved, volatile market conditions associated with Covid19 and uncertainty regarding the future performance of the groups operations".

Interestingly, $10k was paid in interest on a lease liability. How does that happen ??

Balance Sheet
This is interesting -

Lease provisions

During the period, the Company’s subsidiary in USA signed adevelopment agreement with Advanced Casper, based in Wyoming USA. The agreementprovided the option for the Group to establish a manufacturing facility inCasper Wyoming subject to a business case. As a consideration, the Group isobligated to pay up to $185,000 (in rental and outgoings) for 2 years.These amounts constitute all payments that the Group is obligated to pay forthe Casper project should the business decide not to go ahead with project.

This is interesting also -
Deferred tax assets on losses carried forward have not been recognised in the Balance Sheet for these stated reasons -
"These tax losses can only be utilised in the future if the continuity of ownership test is passed, or if failing that, the same business test is passed".

And finally Total Accumulated Losses = $78,885,000