1
Annual Report
2024
2
3
Chairman’s Letter to Shareholders
4
Corporate Directory
9
Corporate Governance
9
Financial Statements
10
Directors’ Report
11
Declaration of Independence
20
Statement of Profit or Loss
24
and Other Comprehensive Income
Statement of Financial Position
25
Statement of Changes in Equity
26
Statement of Cash Flows
27
Notes to the Financial Statements
28
Consolidated entity disclosure statement 48
Directors’ Declaration
49
Independent Auditor’s Report
50
Shareholder Information
54
4
Chairman’s Letter
to Shareholders
Dear Shareholders,
I am pleased to present 1414 Degrees’
2024 Annual Report, highlighting a
transformative year for the Company.
During this financial year we made
significant advancements in the
commercial readiness of our proprietary
technology and strengthened strategic
partnerships. These achievements
are paving the way to successfully
commercialise our innovative solutions
in thermal energy storage and
hydrogen production.
The successful testing of our SiBox®
thermal energy storage system has
been a major milestone. This year SiBox
technology has proven its ability to
deliver a continuous supply of clean
air at temperatures up to 900°C, with
remarkable precision, while charging
from intermittent power supply.
This means we have a groundbreaking
solution to help industries decarbonise,
without compromising operational
efficiency. SiBox is the only product in
the market that can provide frequency
control ancillary services (FCAS) in
the energy markets, as well as stable,
high-temperature heat directly from
intermittent renewable electricity.
It’s a technological advancement
unmatched by any other energy storage
solution available today. This sets
SiBox apart as the leading choice for
industries aiming to reduce carbon
emissions, while optimising energy use.
Our vision for SiBox extends beyond
energy storage. We see it as a gas
replacement technology ready to
help industries meet their Scope 1
and 2 emission reduction targets. The
immediate market opportunities are
in decarbonising steam production
whereby industries can purchase
and store electricity during low-cost
periods, optimising energy use while
significantly reducing emissions. This
offers a compelling value proposition
for industries looking to enhance both
their sustainability and cost-efficiency.
Customer interest in SiBox has surged,
and our commercial team is actively
engaged in feasibility studies with
potential industry partners, moving
several proposals to the tender stage.
Additionally, our strategy to minimise
capital expenditure by using existing
mass production facilities for our
SiBrick technology ensures we can
scale efficiently and cost-effectively as
we move towards commercialisation.
Our commercial strategy received
further support through our
partnership with Woodside Energy
24
5
Technologies, which increased its
contribution to our SiPHyR™ hydrogen
reactor technology development,
raising total cash grants to $3.2
million. SiPHyR is designed to produce
low-cost hydrogen and solid carbon
via methane pyrolysis, powered
by intermittent renewable energy
stored in our silicon media. This
technology holds the potential to
decarbonise existing natural gas and
biogas supplies, enabling customers
to meet emissions targets while
leveraging current infrastructure. In
collaboration with RMIT, Woodside, and
the University of Adelaide, we are on
track to commercialise a device that
will enable industries to meet their
emissions targets with existing heat
equipment and energy infrastructure.
We have also expanded our engineering
team to accelerate the development
of these technologies. We see a clear
commercialisation pathway delivering
reliable and cost-competitive hydrogen
solutions to our customers.
Further progress was made on
development of the Aurora Energy
Precinct, our joint venture with Vast
Renewables. This year, we executed
a term sheet with BHP to gain
access to the 275kV transmission
line, connecting the precinct to BHP
mines in the north and the national
electricity grid to the south. This
critical infrastructure will support the
integration of renewable generation
and storage in the National Electricity
Market (NEM), enhancing the project’s
viability.
At the same time, we have engaged
Hannam & Partners, a London-based
investment bank, to explore funding
options for the 140MW/280MWh
battery energy storage system (BESS)
we are developing at the precinct.
We are confident your Company is
positioned for significant commercial
growth. Our technologies not only
address the pressing need for
decarbonisation but also offer practical,
scalable solutions for energy storage
and hydrogen production, setting new
industry standards.
Thank you for your continued support
as we advance towards a cleaner, more
sustainable future.
Dr Kevin Moriarty
Executive Chairman
6
The Future
of Clean Heat
7
8
Low-cost, reliable,
clean energy
9
DIRECTORS
Kevin Moriarty - Executive Chairman
Graham Dooley - Non-executive
Director
Randolph Bowen - Non-executive
Director
COMPANY SECRETARY
Katelyn Adams
REGISTERED OFFICE & PRINCIPAL
PLACE OF BUSINESS
Western Plant, Door 1
1 Watts Road, Tonsley
South Australia, 5042
T + 61 8357 8273
E info@1414degrees.com.au
SHARE REGISTRY
Computershare Investor Services Pty
Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000
T + 61 3 9415 4000
W computershare.com.au
AUDITOR
BDO Audit Pty Ltd
Level 7, 420 King William Street
Adelaide SA 5000
SOLICITORS
Thomson Geer
23/525 Collins Street
Melbourne VIC 3004
PATENT & TRADE MARK ATTORNEYS
Madderns
Level 4, 19 Gouger Street
Adelaide SA 5000
ACCOUNTANTS
HLB Mann Judd
169 Fullarton Road
Dulwich SA 5065
STOCK EXCHANGE LISTING
1414 Degrees Ltd shares are quoted
on the Australian Securities Exchange
(ASX: 14D)
WEBSITE
1414degrees.com.au
CORPORATE GOVERNANCE
STATEMENT
1414 Degrees Limited and the Board
are committed to achieving and
demonstrating the highest standards
of corporate governance.
The Company has reviewed its
corporate governance practices against
the Corporate Governance Principles
and Recommendations (4th edition)
published by the ASX Corporate
Governance Council.
The 2024 Corporate Governance
Statement is dated as at 30 June 2024
and reflects the corporate governance
practices in place throughout the 2024
year.
The 2024 Corporate Governance
Statement has been approved by the
Board.
A description of the Company’s current
corporate governance practices is
set out in the Corporate Governance
Statement which can be viewed at
1414degrees.com.au
Corporate Directory
Corporate Governance
10
Financial
Statements
11
The Directors present their report,
together with the financial statements,
on the Company for the year ended 30
June 2024.
DIRECTORS
The following persons were Directors of
the Company during the whole of the
financial year and up to the date of this
report, unless otherwise stated:
Kevin Moriarty - Executive Chairman
Graham Dooley - Non-Executive Director
Randolph Bowen - Non-Executive
Director
COMPANY SECRETARY
The following persons were Company
Secretary of the Company during the
whole of the financial year and up to the
date of this report, unless otherwise
stated:
Katelyn Adams
PRINCIPAL ACTIVITIES
The principal activity of the Company
since 2009 is developing and
commercialising its silicon-based
thermal energy storage SiBrick to
provide industrial high temperature heat
from low-cost electricity and biogas.
Its SiBox modular product uses SiBrick
to provide a scalable decarbonisation
pathway for diverse industrial energy
users in, for example, manufacture of
building products, mineral processing,
and thermal power stations.
The Company acquired the exclusive
rights to reactor patents for hydrogen
production during the year, and is now
incorporating its SiBrick technology
to develop and commercialise
an integrated reactor, SiPHyR, to
decarbonise natural gas inexpensively.
The Company has been developing its
Aurora Renewable Energy Precinct since
2019. The aim is to develop a hybrid
renewable energy project delivering
reliable electricity to the Upper Spencer
Gulf region and National Electricity
Market. The recent focus is developing
a 140MW 2-hour battery energy storage
system (BESS). The Aurora site is also an
opportunity to build and demonstrate a
large-scale pilot of the SiBox technology.
DIVIDENDS
There were no dividends paid,
recommended or declared during the
current or previous financial year.
REVIEW OF OPERATIONS
Corporate and financial
The loss for the Company after providing
for income tax amounted to $2,505,500
(30 June 2023: $1,831,251). Notable
non-recurring contributions to the loss
included relocation and fit out costs
at the new Tonsley site, and loans to
SiliconAurora Pty Ltd to progress the
Aurora BESS development.
The Company raised $1.47m through
a non-renounceable Rights Issue to
shareholders at 4.5 cents per share. It
received the final instalments under the
$2.2m Australian Government Modern
Manufacturing Initiative.
Woodside Energy Technologies Pty
Ltd provided an additional $750,000
under the SiBox Development
Agreement and committed $700,000
for SiPHyR development. The Australian
Government announced a grant of
$2.5m over three years for SiPHyR
development under the Cooperative
Research Centres Projects (CRC-P). Its
technology development programs
qualified for a research and development
tax rebate of $1.47m in the year.
The Company continued to finance BESS
development on the Aurora Precinct
with a view to realising near term value
on transmission connection, at which
point Vast Solar Pty Ltd must pay
$1.5million to 1414 Degrees to complete
its purchase of a 50% stake in the joint
venture company.
Projects
During the 2023-24 financial year your
Company significantly advanced the
commercial readiness of its technology
and its strategic partnerships;
successfully completing industrial
process tests of SiBox®, obtaining
exclusive rights to two patents and new
grants to commercialise its SiPHyR™
hydrogen reactor technology. 1414
Degrees also progressed its negotiations
to connect the Aurora Renewable Energy
Precinct to the national electricity grid,
executing a term sheet with BHP for
access to the high voltage transmission
line.
Cash grants for SiPHyR™ development
increased to $3.2m after Woodside
Energy Technologies Ltd (Woodside)
raised its contribution to $1m,
consisting of $700,000 in cash and
$300,000 in technical support.
The $5.2m SiPHyR project involves
significant engineering and scientific
expertise from the Royal Melbourne
Institute Technology (RMIT), Woodside
and the University of Adelaide (UoA) to
design and test this innovative solution
for decarbonisation.
1414 Degrees’ aim is to own and
commercialise a SiPHyR device that can
be connected to existing natural gas
and biogas supplies, replacing methane
with hydrogen. Hydrogen was a major
constituent of piped town gas supplies
up to 50 years ago. Your Company’s very
high temperature silicon storage media
makes it possible to power continuous
hydrogen production, using intermittent
electricity supply, as we recently
demonstrated in SiBox.
We have created additional engineering
positions to speed-up development
and commercialisation of the hydrogen
technology. The commercialisation
strategy will target a pipeline of
customers for hydrogen at a competitive
rate, enabling them to meet their
emissions target without substantial
Director’s Report
12
Director’s Report
modifications of their equipment.
We have the only energy storage
system (SiBox) that has demonstrated
reliable supply of hot, clean air at stable
temperatures (+-1.5°C) up to 900°C.
Customer enquiries about the SiBox
system increased when we announced
completion of testing for commercial
readiness. Our commercial team was
invited to study prospective industry
sites and, in turn, hosted several
industry teams to view our SiBox
Demonstration Module. Commercial
and technical feasibility assessments
progressed to proposal and tender.
The SiBox Development Agreement is
progressing to a point when Woodside
will decide if it wishes to jointly
commercialise SiBox to earn up to 49%
of the SiBox IP.
Our current choice of silicon phase-
change material (PCM) allows SiBox to
supply constant temperature clean air
up to 1000°C, meeting the temperature
requirements of most industries.
The SiBrick technology continued
development toward mass production
in existing refractory brick plants,
particularly through our partnership
agreement with Refratechnik-Steel
Gmbh (Refratechnik). This strategy
eliminates the need to build new
production facilities and makes it
possible to manufacture larger storage
capacities. We envisage future SiBox
models using up to 100,000 SiBrick
in a 1GWh facility, underpinning our
commercialisation strategy with lower
unit production costs.
During the review year, a term
sheet was executed to progress
negotiations to obtain access to the
275 kV transmission line at the Aurora
Energy Precinct. This transmission
line connects BHP mines to the north,
through Davenport substation at Port
Augusta, to the National Electricity
Market (NEM). The SiliconAurora Pty Ltd
joint venture company is negotiating
technical and commercial terms
with BHP and advancing applications
with ElectraNet and AEMO for a
transmission connection agreement
(TCA).
Early in the reporting year, 1414 Degrees
engaged London investment bank
Hannam & Partners to seek investors
for the 140MW/280MWh lithium-ion
battery energy storage system (BESS)
that the SiliconAurora partnership has
been developing.
Intellectual property
The Company continues to actively
manage, document and protect all its
intellectual property.
Current status of patents:
—
“Thermal Energy Storage
Apparatus, Arrangement and
Method”. Granted AU, NZL, EU,
China and US.
—
“Energy Storage and Retrieval
System” (TESS_IND). Granted in US
and AU, in progress in EU.
—
PCT Application PCT/
AU2022/051323 (SiBox Storage
Media). Application pending in AU,
CN, EU, IN and US.
—
PCT Application PCT/
AU2023/051036 (Fluid Reactor).
Application pending.
—
PCT Application PCT/
AU2023/900742 (H2-process).
Application pending.
Registered trademarks:
—
1414 Degrees (Logo) registered in
AU
—
Clean Scalable Energy Storage
(Logo), registered in AU
—
SiBox registered in AU, UK, PRC,
USA, EU
—
SiBrick registered in Australia,
trademark application in Madrid
Protocol countries, CAN, EU, UK,
NZ, US
—
SiPHyR trademark - in application
stage
Risks specific to the Company
Some key risks of the Company are
detailed below. The list of risks is not
exhaustive.
—
Commercialisation of technology
risk - The Company will need
to design a commercial
demonstration pilot in order to
effect the second stage of its
business plan and meet some
contractual milestones. Delays
or failure to identify or secure a
site would significantly disrupt
the business plan. Achieving its
goals requires expansion of its in-
house team to build and maintain
business growth and attract
funding, and there is a risk that
growth is disrupted if funding and
expertise are insufficient.
—
Competition and intellectual
property (IP) risk - 1414 Degrees
participates in a new high
temperature thermal energy
storage market. There are currently
no commercial technologies
with the attributes of the 1414
Degrees products in its potential
markets. 1414 Degrees will
need to participate in the more
competitive lower temperature
market to demonstrate technical
readiness for future high
temperature application. The
Company’s must enforce and
defend its IP against third party
challengers and such action could
have a material adverse impact
on 1414 Degrees performance and
prospects of the business.
—
Core technology performance risk
- For over 15 years the Company
has developed and continues to
develop its core silicon-based
thermal storage media however
the products have not been tested
in long-term operation. There is a
13
risk that the storage media does
not meet the expectation of a 20-
year operating lifetime, and this
could delay the commercialisation
of its SiBox technology, with
significant adverse effects on
investment in the Company.
—
Commercial risks relating to
Aurora Energy Precinct - The
Company has invested in
development of a battery energy
storage project as part of the
Aurora precinct, relying upon
independent positive net revenue
projections from operating in
the national electricity market.
Realisation of a profit on this
investment requires the Company
to obtain access to private
electricity transmission lines and
the conversion of the status of
those lines to participate in the
national electricity market. There is
a risk that it will not obtain access
to transmission, or that cost of
access could make the project
unprofitable. The Company’s
joint-venture partner in the Aurora
project must pay the Company
$1.5 million when connection to
the transmission lines is approved.
There is a risk that this payment
will not occur if connection is not
achieved.
—
Operating experience and reliance
on key personnel risk - The
Company relies on the experience
of its management team and
Directors. The loss of the services
of certain personnel could have an
adverse effect on the Company and
its activities, including delays in
realising the commercial potential
of the technology.
—
Business strategy execution -
The Company’s future growth,
profitability and cash flows depend
on the ability of its management
to successfully execute its
business strategy. There can be no
assurance that 1414 Degrees can
successfully achieve its business
objectives and this could have
a material adverse effect on the
Company’s business, financial
condition, and operations.
SIGNIFICANT CHANGES IN THE STATE
OF AFFAIRS
There were no significant changes in
the state of affairs of the Company
during the financial year other than
matters reported under the Review of
Operations.
MATTERS SUBSEQUENT TO THE END
OF THE FINANCIAL YEAR
On 16 August 2024 the Company
announced a Share Purchase Plan
(SPP) to issue up to 16,666,667 ordinary
fully paid shares. Under the SPP
eligible shareholders will be invited to
subscribe for up to $30,000 of new fully
paid ordinary shares at an issue price
of $0.06 per share. The SPP closed on
18 September 2024 raising $1,076,640
(excluding costs) from the issue of
17,944,075 shares.
On 16 September 2024 the Company
secured institutional investment of
up to $4,700,000. The Company will
receive an initial $1,300,000 under a
Share Subscription Agreement and
has an additional $3,400,000 funding
available over the next 12 months under
a Monthly Purchase Agreement.
On 27 September 2024 the company
issued 20,000,000 ordinary full paid
shares at $0.078 per share under the
Share Subscription Agreement that
was announced on 16 September 2024.
No other matter or circumstance
has arisen since 30 June 2024 that
has significantly affected, or may
significantly affect the Company’s
operations, the results of those
operations, or the Company’s state of
affairs in future financial years.
LIKELY DEVELOPMENTS AND
EXPECTED RESULTS OF OPERATIONS
Information pertaining to likely
developments and expected results of
operations can be found in the review
of operations. The directors cannot
disclose any additional information.
ENVIRONMENTAL REGULATION
The Company is not subject to any
significant environmental regulation
under Australian Commonwealth or
State law.
Director’s Report
14
DR KEVIN MORIARTY
Title
Executive Chairman
Qualifications
BSc (Hons), Ph.D., MAusIMM
Experience and expertise
Dr. Kevin Charles Moriarty, BSc
(Hons), Ph.D., MAusIMM has 35 years
corporate experience in roles including
Chairman and Managing Director of
listed companies. He founded and
led several companies to develop
mines in Australia and Africa. He was
Executive Chairman of 1414 Degrees
Ltd for 5 years until retiring in 2021.
During his term, 1414 Degrees built
several prototype devices utilising high
temperature silicon energy storage to
produce electricity. Two charged from
electricity and one by burning biogas.
They did not perform to specification
and Dr Moriarty brought in more
highly qualified technical team with
material science background as well as
engineering. This team developed the
new SiBox technology aimed at very
efficient energy storage and recovery
at high temperatures to replace gas
burning in industry. This attracted
major support from Woodside
Energy Ltd and the Commonwealth
government. In 2019 he negotiated the
purchase of the Aurora Solar project
for 1414 Degrees. He was re-elected
to the board of 1414 Degrees and re-
appointed executive chairman in 2022.
Other current directorships
None
Former directorships (last 3 years)
None
Interests in shares
16,737,916 ordinary shares
Interests in options
3,322,222 options
Interests in performance rights
1,600,000 performance rights
GRAHAM DOOLEY
Title
Non-Executive Director
Qualifications
BSc, BE (Hons), MPA, FAICD, FIEAust
Experience and expertise
Graham is an accomplished Non-
Executive Director, Managing
Director and Chairman with extensive
infrastructure and investment
experience. As well as serving as a
Director of the businesses below,
Graham is also Chairman of the
Northern Adelaide Waste Management
Authority and the SA Hydrogen Hub,
and a Director of the Water Authority
of Fiji and the Salisbury Water business
unit of the City of Salisbury. He is also
a senior adviser to a large housing
industry company and to two South
Australian Local Government Councils.
He has been a Senior Advisor to Igneo
Infrastructure Partners, one of the top
10 infrastructure investors world-wide
and a Director of a solid waste company
acquired by Igneo.
Graham established and was the
Managing Director of United Utilities
Australia (now Trility) from 1991-2007.
Following this, he founded and held an
Executive Chairman role with the Water
Utilities Australia Group of companies
and its sister company that invested
in agricultural water entitlements.
He is a past National President of the
Australian Water Association, a Fellow
of the Australian Institute of Company
Directors and a Fellow of the Institution
of Engineers, Australia.
Other current directorships
None
Former directorships (last 3 years)
None
Interests in shares
507,846 ordinary shares
Interests in options
85,949 options
Interests in performance rights
1,600,000 performance rights
RANDOLPH BOWEN
Title
Non-Executive Director
Qualifications
BAppSc (Oen), GAICD
Experience and expertise
Randolph is a management
executive with strong domestic and
international profit and loss and
operational management experience.
Randolph successfully established a
fully integrated global supply chain
for Fosters Wine Group resulting
in significant improvement in the
planning, production, delivery and
customer service systems at reduced
cost to the business. He has a talent
for making rapid assessments of
challenges and then developing and
leading the resulting action plan.
Key areas of expertise include:
—
Strategic/operational planning,
forecasting, budgeting and cost
control
—
Infrastructure design and
production maximisation
—
Quality and productivity
improvement
—
Business integration
—
Team building and organisational
change management
—
Leader in Occupational Health,
Safety & Environmental (OHSE)
practices and culture
Other current directorships
None
Former directorships (last 3 years)
None
Interests in shares
3,500,000 ordinary shares
Interests in options
1,000,000 options
Interests in performance rights
1,600,000 performance rights
‘Other current directorships’ quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless
otherwise stated.
‘Former directorships (last 3 years)’ quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other
types of entities, unless otherwise stated.
Director’s Report — Information on Directors
15
COMPANY SECRETARY
Katelyn Adams has over 15 years of
accounting and board experience,
servicing predominantly ASX listed
companies. Katelyn is a Chartered
Accountant and Partner of the
Corporate Advisory division of HLB
Mann Judd in Adelaide, as well as
the Company Secretary of various
listed and private companies and a
Non-executive Director of Clean Seas
Seafood Ltd. Katelyn has extensive
knowledge in corporate governance,
ASX Listing Rule requirements, IPO
and capital raising processes, as well
as a strong technical accounting
background.
MEETINGS OF DIRECTORS
The number of meetings of the
Company’s Board of Directors (‘the
Board’) and of each Board committee
held during the year ended 30 June
2024, and the number of meetings
attended by each Director were:
Full Board
Attended/Held
Kevin Moriarty
8/8
Graham Dooley
7/8
Randolph Bowen
7/8
Audit Committee
Attended/Held
Kevin Moriarty
3/3
Graham Dooley
3/3
Randolph Bowen
3/3
Held: represents the number of
meetings held during the time the
Director held office or was a member of
the relevant committee.
REMUNERATION REPORT (AUDITED)
The remuneration report details the key
management personnel remuneration
arrangements for the Company, in
accordance with the requirements
of the Corporations Act 2001 and its
Regulations.
Key management personnel are
those persons having authority and
responsibility for planning, directing
and controlling the activities of the
entity, directly or indirectly, including all
Directors.
The remuneration report is set out
under the following main headings:
—
Principles used to determine
the nature and amount of
remuneration
—
Details of remuneration
—
Service agreements
—
Share-based compensation
—
Additional disclosures relating to
key management personnel
PRINCIPLES USED TO DETERMINE
THE NATURE AND AMOUNT OF
REMUNERATION
The objective of the Company’s
executive reward framework is to
ensure reward for performance is
competitive and appropriate for the
results delivered. The framework aligns
executive reward with the achievement
of strategic objectives and the creation
of value for shareholders, and it is
considered to conform to the market
best practice for the delivery of reward.
The Board of Directors (‘the Board’)
ensures that executive reward satisfies
the following key criteria for good
reward governance practices:
—
competitiveness and
reasonableness
—
acceptability to shareholders
—
performance linkage / alignment of
executive compensation
—
transparency
The Board is responsible for
determining and reviewing
remuneration arrangements for
its directors and executives. The
performance of the Company
depends on the quality of its directors
and executives. The remuneration
philosophy is to attract, motivate and
retain high performance and high
quality personnel.
The board has structured an executive
remuneration framework that is market
competitive and complementary to
the reward strategy of the Company,
with an appropriate level of fixed
remuneration for key management
personnel, as well as a proportion of
performance based remuneration.
The reward framework is designed
to align executive reward and their
performance hurdles to the targets of
the Company as well as shareholders’
interests. In considering shareholder
wealth, the Board considers that
this is generally driven by successful
commercialisation and long-term
proposition, rather than being directly
linked to financial performance. The
Board also considers the Enterprise
Value of the Company, being the
market capitalisation at the end of each
period end, adjusted for cash held at
year end.
Additionally, the reward framework
should seek to enhance executives’
interests by:
—
rewarding capability and
experience
—
reflecting competitive reward
for contribution to growth in
shareholder wealth
—
providing a clear structure for
earning rewards
In accordance with best practice
corporate governance, the structure of
non-executive Director and executive
Director remuneration is separate.
Non-Executive Directors remuneration
Fees and payments to Non-Executive
directors reflect the demands
and responsibilities of their role.
Non-Executive Directors’ fees and
payments are reviewed periodically
by the Board and are regularly
compared with companies with
comparable market capitalisation
and stage of development. Non-
Executive Directors do not receive
Director’s Report
16
share Performance Rights or other
incentives. The Chairman’s fees are
determined independently to the fees
of Non-Executive Directors based
on comparative roles in the external
market.
ASX listing rules require the aggregate
Non-Executive Director’s remuneration
to be determined periodically by a
general meeting. The maximum annual
aggregate remuneration for Non-
Executive Directors has been set at
$300,000.
Executive remuneration
The Company aims to reward
executives based on their position and
responsibility, with a level and mix of
remuneration which has both fixed and
variable components.
The executive remuneration and reward
framework has three components:
—
base pay and non-monetary
benefits
—
share-based payments
—
other remuneration such as
superannuation and long service
leave
The combination of these comprises
the executive’s total remuneration.
Fixed remuneration, consisting
of base salary, superannuation
and non-monetary benefits, are
reviewed annually by the board based
on individual and business unit
performance, the overall performance
of the Company and comparable
market remunerations.
Executives may receive their fixed
remuneration in the form of cash or
other fringe benefits (for example
motor vehicle benefits) where it does
not create any additional costs to the
Company and provides additional value
to the executive.
The Company has a Performance
Rights Plan under which it can issue
Performance Rights to staff and
executives.
Company performance and link to
remuneration
The remuneration of key management
personnel is linked to the development
of the Company’s intangible assets, the
continued progress towards developing
the TESS technology and progress on
the Aurora site at Port Augusta. Various
performance criteria are linked to
Performance Rights granted.
Voting and comments made at the
Company’s 2023 Annual General
Meeting (‘AGM’)
At the 10 November 2023 AGM, 92%
of the votes received supported the
adoption of the remuneration report
for the year ended 2023. The Company
did not receive any specific feedback
at the AGM regarding its remuneration
practices.
Director’s Report
1414 Degrees Ltd
Directors' report
30 June 2024
17
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Company are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
settled
Equity-
settled
and fees
bonus
monetary
annuation
leave
shares
performanc
e rights
Total
30 June 2024
$
$
$
$
$
$
$
$
Non-Executive
Directors:
Graham Dooley
50,000
-
-
-
-
-
2,073
52,073
Randolph Bowen
50,000
-
-
-
-
-
2,073
52,073
Executive
chairman:
Kevin Moriarty
193,333
-
-
21,267
7,885
-
2,073
224,558
293,333
-
-
21,267
7,885
-
6,219
328,704
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
settled
Equity-
settled
and fees
bonus
monetary
annuation
leave
shares
performanc
e rights
Total
30 June 2023
$
$
$
$
$
$
$
$
Non-Executive
Directors:
Graham Dooley *
33,056
-
-
-
-
-
-
33,056
Randolph Bowen
*
33,333
-
-
-
-
-
-
33,333
Alison Evans **
19,583
-
-
-
-
-
-
19,583
Dana Larson **
15,410
-
-
-
-
-
-
15,410
Peter Gan **
15,417
-
-
-
-
-
-
15,417
Tony Sacre **
23,750
-
-
-
-
-
-
23,750
Sheree Ford ***
8,333
-
-
-
-
-
-
8,333
Executive
chairman:
Kevin Moriarty
81,250
-
-
7,350
-
-
-
88,600
Other Key
Management
Personnel:
Jordan Parham
126,854
-
-
10,899
-
-
-
137,753
356,986
-
-
18,249
-
-
-
375,235
1414 Degrees Ltd
Directors' report
30 June 2024
18
*
Represents remuneration from 1 November 2022 to 30 June 2023
**
Represents remuneration from 1 July 2022 to 31 October 2022
*** Represents remuneration from 1 July 2022 to 15 September 2022
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Kevin Moriarty
Title:
Executive Chairman
Agreement commenced:
28 July 2022
Term of agreement:
Ongoing
Details:
The initial agreement was for an annual salary of $45,000 effective 1 August 2022.
Effective 30 November 2022 the annual salary was updated to $120,000 per annum.
Effective 1 August 2023 the annual salary was updated to $200,000 per annum.
Name:
Graham Dooley
Title:
Non-Executive Director
Agreement commenced:
3 November 2022
Term of agreement:
Ongoing
Details:
Annual fee effective 3 November 2022 of $50,000
Name:
Randolph Bowen
Title:
Non-Executive Director
Agreement commenced:
3 November 2022
Term of agreement:
Ongoing
Details:
Annual fee effective 3 November 2022 of $50,000
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year
ended 30 June 2024.
Options
There were no options over ordinary shares issued to Directors and other key management personnel as part of compensation
that were outstanding as at 30 June 2024.
There were no options over ordinary shares granted to or vested by Directors and other key management personnel as part
of compensation during the year ended 30 June 2024.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors and
other key management personnel in this financial year or future reporting years are as follows:
Number of
Share price
Fair value
rights
hurdle for
per right
Name
granted
Grant date
Vesting date
Expiry date
vesting
at grant date
Kevin Moriarty
800,000 10/11/2023
30/06/2024
30/06/2024
$0.1500
$0.0005
Kevin Moriarty
800,000 10/11/2023
31/12/2024
31/12/2024
$0.2500
$0.0008
Kevin Moriarty
800,000 10/11/2023
31/12/2024
31/12/2024
$0.4000
$0.0021
Graham Dooley
800,000 10/11/2023
30/06/2024
30/06/2024
$0.1500
$0.0005
Graham Dooley
800,000 10/11/2023
31/12/2024
31/12/2024
$0.2500
$0.0008
Graham Dooley
800,000 10/11/2023
31/12/2025
31/12/2025
$0.4000
$0.0021
Randolph Bowen
800,000 10/11/2023
30/06/2024
30/06/2024
$0.1500
$0.0005
Randolph Bowen
800,000 10/11/2023
31/12/2024
31/12/2024
$0.2500
$0.0008
Randolph Bowen
800,000 10/11/2023
31/12/2025
31/12/2025
$0.4000
$0.0021
1414 Degrees Ltd
Directors' report
30 June 2024
19
Performance rights granted carry no dividend or voting rights.
Details of performance rights over ordinary shares granted, vested and lapsed for Directors and other key management
personnel as part of compensation during the year ended 30 June 2024 are set out below:
Number of
Value of
Number of
Value of
rights
rights
rights
rights
Name
Grant date
Lapsed date
granted
granted
lapsed
lapsed
$
$
Kevin Moriarty
10/11/2023
30/06/2024
2,400,000
2,073
800,000
372
Graham Dooley
10/11/2023
30/06/2024
2,400,000
2,073
800,000
372
Randolph Bowen
10/11/2023
30/06/2024
2,400,000
2,073
800,000
372
Additional disclosures relating to key management personnel
Shareholdings
The number of shares in the Company held during the financial year by each Director and other members of key management
personnel of the Company, including their personally related parties, is set out below:
Balance at
Received
Balance at
the start of
as part of
Disposals/
the end of
the year
Additions
remuneration
other
the year
Ordinary shares
Kevin Moriarty
12,915,694
3,322,222
-
-
16,237,916
Graham Dooley
171,897
85,949
-
-
257,846
Randolph Bowen
2,000,000
1,000,000
-
-
3,000,000
15,087,591
4,408,171
-
-
19,495,762
Performance rights
The number of Performance Rights over ordinary shares in the Company held during the financial year by each Director and
other members of key management personnel of the Company, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Exercised
other
the year
Performance Rights over ordinary shares
Kevin Moriarty
-
2,400,000
-
(800,000)
1,600,000
Graham Dooley
-
2,400,000
-
(800,000)
1,600,000
Randolph Bowen
-
2,400,000
-
(800,000)
1,600,000
-
7,200,000
-
(2,400,000)
4,800,000
Options
The number of Options over ordinary shares in the Company held during the financial year by each Director and other
members of key management personnel of the Company, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Additions
Exercised
other
the year
Options over ordinary shares
Kevin Moriarty
-
3,322,222
-
-
3,322,222
Graham Dooley
-
85,949
-
-
85,949
Randolph Bowen
-
1,000,000
-
-
1,000,000
-
4,408,171
-
-
4,408,171
This concludes the remuneration report, which has been audited.
1414 Degrees Ltd
Directors' report
30 June 2024
20
Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under option
21/08/2023
21/08/2025
$0.1000
35,683,063
Shares under performance rights
There were no unissued ordinary shares of the Company under performance rights outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of the Company issued on the exercise of options during the year ended 30 June 2024 and
up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of the Company issued on the exercise of performance rights during the year ended 30 June
2024 and up to the date of this report.
Indemnity and insurance of officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as a Director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to 'rounding-off". Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest dollar.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the Company who are former partners of BDO Audit Pty Ltd
There are no officers of the Company who are former partners of BDO Audit Pty Ltd.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
1414 Degrees Ltd
Directors' report
30 June 2024
21
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Kevin Moriarty
Executive Chairman
30 September 2024
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
DECLARATION OF INDEPENDENCE
BY PAUL GOSNOLD
TO THE DIRECTORS OF 1414 DEGREES LIMITED
As lead auditor of 1414 Degrees Limited for the year ended 30 June 2024, I declare that, to the best of
my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
Paul Gosnold
Director
BDO Audit Pty Ltd
Adelaide, 30 September 2024
22
1414 Degrees Ltd
Contents
30 June 2024
23
Statement of profit or loss and other comprehensive income
24
Statement of financial position
25
Statement of changes in equity
26
Statement of cash flows
27
Notes to the financial statements
28
Consolidated entity disclosure statement
48
Directors' declaration
49
Independent auditor's report to the members of 1414 Degrees Ltd
50
Shareholder information
54
General information
The financial statements cover 1414 Degrees Ltd as an individual entity. The financial statements are presented in Australian
dollars, which is 1414 Degrees Ltd's functional and presentation currency.
1414 Degrees Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business is:
Western Plant, Door 1
1 Watts Road, Tonsley
South Australia, 5042
A description of the nature of the Company's operations and its principal activities are included in the Directors' report, which
is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 September 2024. The
Directors have the power to amend and reissue the financial statements.
1414 Degrees Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
24
Revenue
Other income
4
41,713
115,386
Total income
41,713
115,386
Expenses
Administration and professional expenses
(1,282,421)
(1,226,067)
Depreciation and amortisation
(35,242)
(30,200)
Employee benefits expense
(245,301)
(338,035)
Finance costs
(40,529)
(1,022)
Loss on disposal of assets
(74,694)
-
Provision for Gas-TESS decommissioning (Glenelg project)
18
-
466,000
Relocation costs
(135,333)
-
Share based payments (equity settled)
33
165,081
87,175
Share of loss - SiliconAurora joint venture
(342,571)
(375,488)
Other expenses
5
(556,203)
(529,000)
Total expenses
(2,547,213)
(1,946,637)
Loss before income tax expense
(2,505,500)
(1,831,251)
Income tax expense
6
-
-
Loss after income tax expense for the year attributable to the owners of 1414
Degrees Ltd
21
(2,505,500)
(1,831,251)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of 1414
Degrees Ltd
(2,505,500)
(1,831,251)
Cents
Cents
Basic earnings per share
32
(1.07)
(0.91)
Diluted earnings per share
32
(1.07)
(0.91)
1414 Degrees Ltd
Statement of financial position
As at 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
25
Assets
Current assets
Cash and cash equivalents
7
1,707,352
1,948,457
Trade and other receivables
8
3,409,024
2,484,996
Financial assets
9
164,377
-
Other
12
155,006
172,486
Total current assets
5,435,759
4,605,939
Non-current assets
Trade and other receivables
8
-
360,456
Joint venture investment
10
1,781,941
2,124,512
Property, plant and equipment
13
152,840
48,139
Right-of-use assets
11
910,697
226,192
Intangibles
14
1,110,783
2,362,069
Total non-current assets
3,956,261
5,121,368
Total assets
9,392,020
9,727,307
Liabilities
Current liabilities
Trade and other payables
15
760,767
485,546
Lease liabilities
16
150,039
227,357
Employee benefits
17
152,677
124,829
Provisions
18
34,000
34,000
Total current liabilities
1,097,483
871,732
Non-current liabilities
Lease liabilities
16
704,747
-
Employee benefits
17
23,498
21,457
Provisions
18
70,000
-
Total non-current liabilities
798,245
21,457
Total liabilities
1,895,728
893,189
Net assets
7,496,292
8,834,118
Equity
Contributed equity
19
34,334,940
33,002,185
Reserves
20
2,639
167,720
Accumulated losses
21
(26,841,287) (24,335,787)
Total equity
7,496,292
8,834,118
1414 Degrees Ltd
Statement of changes in equity
For the year ended 30 June 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
26
Contributed
Accumulated
Total equity
equity
Reserves
losses
$
$
$
$
Balance at 1 July 2022
32,656,879
323,395
(22,504,536)
10,475,738
Loss after income tax expense for the year
-
-
(1,831,251)
(1,831,251)
Other comprehensive income for the year, net of tax
-
-
-
-
Total comprehensive income for the year
-
-
(1,831,251)
(1,831,251)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 19)
276,806
-
-
276,806
Performance Rights Valuation
-
15,681
-
15,681
Performance Rights Lapsed
-
(102,856)
-
(102,856)
Conversion of Performance Rights
68,500
(68,500)
-
-
Balance at 30 June 2023
33,002,185
167,720
(24,335,787)
8,834,118
Contributed
Accumulated
Total equity
equity
Reserves
losses
$
$
$
$
Balance at 1 July 2023
33,002,185
167,720
(24,335,787)
8,834,118
Loss after income tax expense for the year
-
-
(2,505,500)
(2,505,500)
Other comprehensive income for the year, net of tax
-
-
-
-
Total comprehensive income for the year
-
-
(2,505,500)
(2,505,500)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 19)
1,332,755
-
-
1,332,755
Performance Rights Valuation
-
3,946
-
3,946
Performance Rights Lapsed
-
(1,435)
-
(1,435)
Options Lapsed
-
(167,592)
-
(167,592)
Balance at 30 June 2024
34,334,940
2,639
(26,841,287)
7,496,292
1414 Degrees Ltd
Statement of cash flows
For the year ended 30 June 2024
Note 30 June 2024 30 June 2023
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
27
Cash flows from operating activities
Receipts from customers (inclusive of GST)
36,111
30,090
Payments to suppliers and employees (inclusive of GST)
(2,120,252)
(2,069,145)
Interest received
29,826
29,277
Interest and other finance costs paid
(40,529)
(1,022)
Net cash used in operating activities
31
(2,094,844)
(2,010,800)
Cash flows from investing activities
Payments for property, plant and equipment
13
(142,439)
(9,715)
Payments for security deposits
(164,377)
-
Payments for product development activities
(1,749,626)
(2,924,637)
Partner project contributions
900,000
600,000
Research and development tax offset received and used for intangible asset
14
1,467,591
1,271,760
Government grant received and used for intangible asset
14
865,121
847,000
Proceeds from disposal of investments
-
900,000
Loans to SiliconAurora joint venture
(401,069)
(296,381)
Proceeds from disposal of property, plant and equipment
6,982
-
Net cash from investing activities
782,183
388,027
Cash flows from financing activities
Proceeds from issue of shares
19
1,470,739
276,806
Share issue transaction costs
(137,984)
-
Repayment of lease liabilities
(261,199)
(254,992)
Net cash from financing activities
1,071,556
21,814
Net decrease in cash and cash equivalents
(241,105)
(1,600,959)
Cash and cash equivalents at the beginning of the financial year
1,948,457
3,549,416
Cash and cash equivalents at the end of the financial year
7
1,707,352
1,948,457
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
28
Note 1. Material accounting policy information
Going concern
The annual report has been prepared on the basis of a going concern. The annual report shows the Company incurred a net
loss of $2,505,500 and a net cash outflow from activities of $241,105 during the reporting period. The Company's ability to
continue as a going concern is contingent upon generation of cash inflow from its business and/or successfully raising
additional capital. The circumstances represent a material uncertainty that may cast significant doubt about the Company's
ability to continue as a going concern and therefore the Company may be unable to realise its assets and discharge its
liabilities in the normal course of business. No allowance for such circumstances has been made in the annual report.
New or amended Accounting Standards and Interpretations adopted
The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to 'rounding-off". Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest dollar.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 2.
Other material accounting policies
Other material accounting policies are separately disclosed in their corresponding note.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, 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 judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
Key estimates - impairment
The Company assesses impairment at the end of each reporting period by evaluating conditions and events specific to the
Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-
in-use calculations which incorporate various key assumptions.
With respect to cash flow projections for intangible assets and those with a finite useful life but not yet considered ready for
use, relevant inputs have been factored into valuation models on the basis of management’s expectations regarding the
growth of the market and the Company’s ability to capture market share. Pre-tax discount rates of 15.8% have been used in
all models.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 2. Critical accounting judgements, estimates and assumptions (continued)
29
Key judgements - product development
Included within intangible assets at the end of the reporting period is Product Development with a net carrying value of
$386,991 (30 June 2023: $2,349,225). The Directors believe that while the development and commercialisation of the
technology remains in-progress and the asset is not yet generating economic benefits (beyond customer trials), it is not
considered ready for use. A reliable estimate for the useful life of the asset will only be capable of being determined once the
asset is assessed as ready for use, after which point, amortisation will commence. The Directors are satisfied that it is probable
that the intangible asset will generate future economic benefits based on internal financial models and potential project
scenario analysis.
SiliconAurora Joint Control
Management have determined that the Company has joint control of SiliconAurora Pty Ltd ("SiliconAurora") with Vast Solar
Pty Ltd ("Vast"). The arrangement between the two parties is governed by a contractual agreement requiring the unanimous
consent of the parties involved when relevant activities are undertaken.
The company has an investment in and a loan to the jointly controlled entity as shown in note 8 and note 10 respectively.
These assets are recoverable based on management judgement associated with their expectation that the project will be
developed once an offer to connect to the electricity transmission system is received and that Silicon Aurora will be
appropriately capitalised to fund its strategic objectives.
Note 3. Restatement of comparatives
Statement of profit or loss and other comprehensive income
When there is a restatement of comparatives, it is mandatory to provide a statement of profit or loss and other comprehensive
income for the year ended 30 June 2023. However, as there were no adjustments made, the Company has elected not to
show the statement of profit or loss and other comprehensive income.
Statement of financial position at the beginning of the earliest comparative period
When there is a restatement of comparatives, it is mandatory to provide a third statement of financial position at the beginning
of the earliest comparative period, being 1 July 2022. However, as there were no adjustments made as at 1 July 2022, the
Company has elected not to show the 1 July 2022 statement of financial position.
Note 4. Other income
30 June 2024 30 June 2023
$
$
Gain on sale of plant and equipment
6,982
-
Interest received
29,826
29,290
Other income
4,905
86,096
41,713
115,386
Note 5. Other expenses
30 June 2024 30 June 2023
$
$
Directors fees
100,000
160,132
Marketing
135,562
129,639
Other expenses
320,641
239,229
556,203
529,000
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
30
Note 6. Income tax expense
30 June 2024 30 June 2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(2,505,500)
(1,831,251)
Tax at the statutory tax rate of 25%
(626,375)
(457,813)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
(41,270)
(21,794)
Share of loss - SiliconAurora Joint Venture
85,643
93,872
Non-deductible expenses
196
658
(581,806)
(385,077)
Current year tax losses not recognised
524,096
464,873
Current year temporary differences not recognised
57,710
(79,796)
Income tax expense
-
-
30 June 2024 30 June 2023
$
$
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
9,301,428
7,205,044
Potential tax benefit @ 25%
2,325,357
1,801,261
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
30 June 2024 30 June 2023
$
$
Deferred tax assets/liabilities not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Right of use assets
(227,674)
(56,548)
Lease liabilities
213,697
56,839
Employee benefits
51,680
43,731
Provision for lease make good
17,500
-
Provision for remediation
8,500
8,500
Accrued expenses
45,250
2,792
Accrued income
-
(3)
Total deferred tax not recognised
108,953
55,311
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in
the statement of financial position as the recovery of this benefit is uncertain.
Note 7. Cash and cash equivalents
30 June 2024 30 June 2023
$
$
Current assets
Cash at bank
1,707,352
1,948,457
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 7. Cash and cash equivalents (continued)
31
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 8. Trade and other receivables
30 June 2024 30 June 2023
$
$
Current assets
Trade receivables
-
31,206
R & D refundable tax offset
970,733
878,000
SiliconAurora sale proceeds receivable
1,500,000
1,500,000
SiliconAurora Pty Ltd loan
761,525
-
Other receivables
176,766
75,790
3,409,024
2,484,996
Non-current assets
SiliconAurora Pty Ltd loan
-
360,456
3,409,024
2,845,452
SiliconAurora sale proceeds receivable
On 19 June 2022 the Company entered into an agreement for the sale of 50% of the shares in SiliconAurora Pty Ltd to a
wholly owned subsidiary of Vast Solar Pty Ltd (Vast Solar). Part of the consideration for the sale is deferred until 30 days after
SiliconAurora receives a written offer to connect to the transmission system from the relevant Network Service Provider under
the rules of the National Electricity Market.
SiliconAurora Pty Ltd loan
The loan to SiliconAurora Pty Ltd is unsecured with a term of 36 months. No interest is charged on the loan balance.
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
32
Note 9. Financial assets
30 June 2024 30 June 2023
$
$
Current assets
Term deposit - 12 month maturity
164,377
-
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous financial
year are set out below:
Opening fair value
-
-
Additions
164,377
-
Closing fair value
164,377
-
Note 10. Joint venture investment
30 June 2024 30 June 2023
$
$
Non-current assets
SiliconAurora Pty Ltd
1,781,941
2,124,512
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous financial
year are set out below:
Opening fair value
2,124,512
2,500,000
Share of loss
(342,571)
(375,488)
Closing fair value
1,781,941
2,124,512
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the arrangement. Investments in joint ventures are accounted for using the equity method. Under the equity method,
the share of the profits or losses of the joint venture is recognised in profit or loss and the share of the movements in equity is
recognised in other comprehensive income. Investments in joint ventures are carried in the statement of financial position at
cost plus post-acquisition changes in the Company's share of net assets of the joint venture. Goodwill relating to the joint
venture is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment.
Income earned from joint venture entities reduce the carrying amount of the investment.
On 19 June 2022 the Company entered into an agreement for the sale of 50% of the shares in SiliconAurora Pty Ltd to a
wholly owned subsidiary of Vast Solar Pty Ltd (Vast).
Under the terms of the sale agreement the purchase price of $2,500,000 was payable in two instalments. An initial $1,000,000
was received upon completion and a further $1,500,000 will be paid when SiliconAurora receives a written offer to connect to
the transmission system from the relevant Network Service Provider under the rules of the National Electricity Market. The
$1,500,000 was still outstanding as at 30 June 2024 (note 8).
In addition to the sale agreement Vast and the Company have executed a Shareholders Agreement that will govern the
ongoing operation of SiliconAurora and the development of the Aurora Energy Project.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
33
Note 11. Right-of-use assets
30 June 2024 30 June 2023
$
$
Non-current assets
Land and buildings - right-of-use
958,629
761,469
Less: Accumulated depreciation
(47,932)
(535,277)
910,697
226,192
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Daws Road Watts Road
Total
$
$
$
Balance at 1 July 2022
414,705
-
414,705
Revaluation increments
45,162
-
45,162
Depreciation expense
(233,675)
-
(233,675)
Balance at 30 June 2023
226,192
-
226,192
Additions
-
958,629
958,629
Depreciation expense*
(226,192)
(47,932)
(274,124)
Balance at 30 June 2024
-
910,697
910,697
During the year the Company relocated its principal place of business to Western Plant, Door 1, 1 Watts Road, Tonsley, South
Australia 5042. The lease expires on 31 March 2029, with a right to renew for an additional five years.
* The depreciation on the Right of Use asset has been capitalised into the intangible asset (note 14), not recognised as an
expense in the statement of profit or loss and other comprehensive income.
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the Company expects to obtain ownership of the leased asset at the end of the
lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as
incurred.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
34
Note 12. Other
30 June 2024 30 June 2023
$
$
Current assets
Prepayments
153,834
169,798
Other current assets
1,172
2,688
155,006
172,486
Note 13. Property, plant and equipment
30 June 2024 30 June 2023
$
$
Non-current assets
Plant and equipment - at cost
80,780
2,830
Less: Accumulated depreciation
(5,231)
(391)
75,549
2,439
Fixtures and fittings - at cost
118,073
140,515
Less: Accumulated depreciation
(45,903)
(103,975)
72,170
36,540
Office equipment - at cost
52,133
71,351
Less: Accumulated depreciation
(47,012)
(62,191)
5,121
9,160
152,840
48,139
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Plant and
equipment
Fixtures and
fittings
Office
equipment
Total
$
$
$
$
Balance at 1 July 2022
-
51,228
9,732
60,960
Additions
2,830
-
6,885
9,715
Depreciation expense
(391)
(14,689)
(7,456)
(22,536)
Balance at 30 June 2023
2,439
36,539
9,161
48,139
Additions
77,950
59,909
1,750
139,609
Write off of assets*
-
(16,586)
(551)
(17,137)
Depreciation expense
(4,840)
(7,693)
(5,238)
(17,771)
Balance at 30 June 2024
75,549
72,169
5,122
152,840
*
During the year the company relocated business premises. The write off of assets are fixtures and fitting and office
equipment that were disposed of during the relocation.
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 13. Property, plant and equipment (continued)
35
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
3-7 years
Fixtures and fittings
3-10 years
Office equipment
3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
Company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 14. Intangibles
30 June 2024 30 June 2023
$
$
Non-current assets
SiBox demonstration model
14,868,132
-
Government grants, tax offsets and Woodside funding applied
(14,125,833)
-
Less: Accumulated amortisation
(18,507)
-
723,792
-
Product development - intellectual property
536,991
13,162,457
Government grants and R & D refundable tax offsets applied
-
(9,150,388)
Woodside funding applied
(150,000)
(1,650,000)
386,991
2,362,069
1,110,783
2,362,069
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Product
Development
SiBox
demonstration
model
Total
$
$
$
Balance at 1 July 2022
1,822,904
-
1,822,904
Additions
3,144,292
-
3,144,292
Government grants applied
(847,000)
-
(847,000)
R & D tax offset applied
(1,158,127)
-
(1,158,127)
Woodside funding applied
(600,000)
-
(600,000)
Balance at 30 June 2023
2,362,069
-
2,362,069
Additions
2,242,667
-
2,242,667
Government grants applied
(865,121)
-
(865,121)
R & D tax offset applied
(1,560,325)
-
(1,560,325)
Woodside funding applied
(1,050,000)
-
(1,050,000)
Transfers in/(out)
(742,299)
742,299
-
Amortisation expense
-
(18,507)
(18,507)
Balance at 30 June 2024
386,991
723,792
1,110,783
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 14. Intangibles (continued)
36
Intellectual property consists of TESS (thermal energy storage system) development of bulk energy storage solutions and
SiPHyR (SiBrick integrated Pyrolytic Hydrogen Reactor) development. The government grants relate to accelerating the
commercialisation of the Company's intellectual property.
The intangible assets are tested for impairment annually.
The recoverable amount of the Company's Product Development intangible asset has been determined by a value-in-use
calculation using a discounted cash flow model, based on an 7 year projection period approved by management.
The following key assumptions were used in the discounted cash flow model:
● 16.7% pre-tax discount rate;
● No revenue earned until 2025;
● Major project deliverable in 2025 and 2026
The discount rate of 16.7% pre-tax reflects management’s estimate of the time value of money and the Company’s weighted
average cost of capital, the risk free rate and the volatility of the share price relative to market movements.
Management believes the revenue presented in the model is justified, based on the potential indicated in the market.
There were no other key assumptions.
Research and development
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable
that the project will be a success considering its commercial and technical feasibility; the Company is able to use or sell the
asset; the Company has sufficient resources and intent to complete the development; and its costs can be measured reliably.
Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite
life of 10 years.
SiBox demonstration model
On 28 March 2024 the company successfully completed a 12 month testing phase of the SiBox Demonstration Module. The
project is now ready for commericalisation and the demonstration model has been recognised as a separate class of intangible
asset on the statement of financial position.
Note 15. Trade and other payables
30 June 2024 30 June 2023
$
$
Current liabilities
Trade payables
491,505
382,575
Other payables and accruals
269,262
102,971
760,767
485,546
Refer to note 23 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and
which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts
are unsecured and are usually paid within 30 days of recognition.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
37
Note 16. Lease liabilities
30 June 2024 30 June 2023
$
$
Current liabilities
Lease liability
150,039
227,357
Non-current liabilities
Lease liability
704,747
-
854,786
227,357
Refer to note 23 for further information on financial instruments.
Total interest incurred on the lease liability for the year was $40,529 (2023: $17,041).
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
Note 17. Employee benefits
30 June 2024 30 June 2023
$
$
Current liabilities
Annual leave
101,765
86,731
Long service leave
50,912
38,098
152,677
124,829
Non-current liabilities
Long service leave
23,498
21,457
176,175
146,286
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 17. Employee benefits (continued)
38
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Note 18. Provisions
30 June 2024 30 June 2023
$
$
Current liabilities
Provision for Gas-TESS decommissioning
34,000
34,000
Non-current liabilities
Lease make good
70,000
-
104,000
34,000
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Gas-TESS
Decommissioni
ng
Provision
Lease make
good
30 June 2024
$
$
Carrying amount at the start of the year
34,000
-
Additional provisions recognised
-
70,000
Carrying amount at the end of the year
34,000
70,000
Gas-TESS Decommissioning Provision
The provision for decommissioning the GAS-TESS (Glenelg Project) site is an estimate of the costs to demolish and reinstate
the site.
Accounting policy for provisions
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event, it is
probable the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of
money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision
resulting from the passage of time is recognised as a finance cost.
Note 19. Contributed equity
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Shares
Shares
$
$
Ordinary shares - fully paid
238,168,521
205,485,458
34,334,940
33,002,185
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 19. Contributed equity (continued)
39
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2022
201,985,458
32,656,879
Placement of shares
17 March 2023
3,000,000
$0.1000
300,000
Conversion of performance rights
12 April 2023
500,000
$0.1370
68,500
Transaction costs
-
$0.0000
(23,194)
Balance
30 June 2023
205,485,458
33,002,185
Issue of shares
21 August 2023
32,683,063
$0.0450
1,470,739
Transaction costs
-
$0.0000
(137,984)
Balance
30 June 2024
238,168,521
34,334,940
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Company's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce
the cost of capital.
The Company would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current Company's share price at the time of the investment. The Company is not actively pursuing additional
investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
The Company's debt and capital includes ordinary shares capital and financial liabilities, supported by financial assets. There
are no externally imposed capital requirements.
Management effectively manages the Company's capital by assessing the Company's financial risks and adjusting its capital
structure in response to changes in these risks and in the market.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
Accounting policy for 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.
Note 20. Reserves
30 June 2024 30 June 2023
$
$
Share-based payments reserve
2,639
167,720
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 20. Reserves (continued)
40
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Share based
payments
reserve - ESS
Share based
payments
reserve - Call
Option
Total
$
$
$
Balance at 1 July 2022
155,803
167,592
323,395
Performance rights valuation recognised
15,681
-
15,681
Performance rights lapsed
(102,856)
-
(102,856)
Conversion of Performance Rights to Ordinary Shares
(68,500)
-
(68,500)
Balance at 30 June 2023
128
167,592
167,720
Employee Share Scheme - Performance Rights Valuation
3,946
-
3,946
Employee Share Scheme - Performance Rights Lapsed
(1,435)
-
(1,435)
Options lapsed
-
(167,592)
(167,592)
Balance at 30 June 2024
2,639
-
2,639
Share-based payments reserve - ESS
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration.
Share-based payments reserve - Call Option
As part of the sale agreement of SiliconAurora Pty Ltd entities associated with the owners of Vast Solar were granted Call
Options with a strike price of $0.16 per share. The call options were valued at $167,592 and a share based payment was
recognised in the year ended 30 June 2021, reducing the profit on the sale of the shares in SiliconAurora Pty Ltd. The options
lapsed during the year ended 30 June 2024.
Note 21. Accumulated losses
30 June 2024 30 June 2023
$
$
Accumulated losses at the beginning of the financial year
(24,335,787) (22,504,536)
Loss after income tax expense for the year
(2,505,500)
(1,831,251)
Accumulated losses at the end of the financial year
(26,841,287) (24,335,787)
Note 22. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 23. Financial instruments
Financial risk management objectives
The Company's financial instruments consist mainly of deposits with banks, accounts receivable and payable.
The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting
policies to these financial statements, are as follows:
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 23. Financial instruments (continued)
41
Financial assets
30 June 2024 30 June 2023
$
$
Financial assets at amortised cost:
Cash and cash equivalents
1,707,352
1,948,567
Trade and other receivables - SiliconAurora Sales Proceeds
1,500,000
1,500,000
Trade and other receivables - R&D tax refund
487,966
878,000
Trade and other receivables - other
177,938
106,996
Total financial assets
3,873,256
4,433,563
Financial liabilities
Trade and other payables
760,763
446,993
Lease liabilities
921,873
227,357
Total financial liabilities
1,682,636
674,350
General objectives, policies and processes
In common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This
note describes the Company's objectives, policies and processes for managing those risks and the methods used to measure
them. Further quantitative information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the Company's exposure to financial instrument risks, its objectives, polices and
processes for managing those risks or the methods to measure them from previous periods unless otherwise stated in this
note.
Market risk
The Company’s activities have no material exposure to financial risks of changes in interest rates. The Company analyses it’s
risk by considering sensitivity on its interest rate exposures and determining the potential impact on it’s effected expenses and
revenue of movements in these rates. If the potential variance is material then management may seek to minimise this
exposure but it does not consider this to be the case at this time.
Foreign currency risk
The Company undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through
foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash
flow forecasting.
The carrying amount of the Company's foreign currency denominated financial assets and financial liabilities at the reporting
date were as follows:
Assets
Liabilities
30 June 2024 30 June 2023 30 June 2024 30 June 2023
$
$
$
$
US dollars
131
131
-
-
Euros
249
542
-
-
380
673
-
-
The Company had net assets denominated in foreign currencies of $380 as at 30 June 2024 (2023: $673).
The actual foreign exchange loss for the year ended 30 June 2024 was $1,610 (2023: loss of $5,014).
Interest rate risk
At 30 June 2024 investment in Cash, Fixed Interest and Floating Interest rate deposits amounted to $1,707,351. A +/-1%
change in interest rates during the year ended 30t June 2024 will result in a +/- change in net interest income of $17,074.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 23. Financial instruments (continued)
42
At 30 June 2023 investment in Cash, Fixed Interest and Floating Interest rate deposits amounted to $1,948,457. A +/-1%
change in interest rates during the year ended 30 June 2023 will result in a +/- change in net interest income of $19,485.
Management have considered that both a positive and negative 1% variance is sufficient to illustrate the potential variations
in interest income.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company.
The Company does not have any material credit risk exposure to any single debtor or group of debtors under financial
instruments entered into by the Company, except for the Australian Taxation Office which is the counter party to the R & D
Offset shown in note 8 and Vast Solar Pty Ltd which is our Joint Venture partner following their purchase of 50% of the shares
in SiliconAurora Pty Ltd. Trade receivables represent the maximum exposure to credit risk, credit quality is considered good.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Directors
manage liquidity risk by monitoring forecast cashflows and ensuring that the Company's operations are adequate to meet
liabilities due.
Financial liability and financial asset maturity analysis
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Total
30 June 2024
$
$
$
$
$
Financial liabilities due for settlement
Trade and other payables
(760,763)
-
-
-
(760,763)
Lease liabilities
(145,671)
(169,078)
(607,124)
-
(921,873)
Financial assets - cash flows realisable
Cast at bank
1,707,352
-
-
-
1,707,352
Term deposits
-
164,377
-
-
164,377
Trade and other receivables
2,165,904
-
-
-
2,165,904
Other loans
64,075
296,381
401,069
-
761,525
Total non-derivatives
3,030,897
291,680
(206,055)
-
3,116,522
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Note 24. Key management personnel disclosures
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Company is set out
below:
30 June 2024 30 June 2023
$
$
Short-term employee benefits
307,437
356,986
Post-employment benefits
21,267
18,249
328,704
375,235
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
43
Note 25. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of
the Company:
30 June 2024 30 June 2023
$
$
Audit services - BDO Audit Pty Ltd
Audit or review of the financial statements
53,000
33,500
Note 26. Contingent liabilities
As at 30 June 2024 those charged with governance of the Company note that there are no known contingent liabilities (2023:
nil).
Note 27. Commitments
Aurora Energy Project
On 15 June 2022 the Company and a wholly owned subsidiary of Vast Solar Pty Ltd (Vast) entered into a Shareholder
Agreement (SA) with for the 50/50 incorporated Joint Venture of SiliconAurora Pty Ltd (SiliconAurora). The SA governs the
ongoing operation of SiliconAurora and the development of the Aurora Energy Project (Aurora).
The SA includes an agreement to complete all development activities required to get to Stage 1 of Aurora (a 140 MW 1-2 hour
Battery Energy Storage System or BESS) to a position of readiness for a Final Investment Decision (FID). Under the terms of
the agreement, Vast and the Company will each contribute 50% of the development costs associated with the Stage 1
Development. At 30 June 2024 the Joint Venture partners had contributed $1,521,999 in total (2023: $719,863). Total budget
for the Stage 1 development costs up until FID is estimated to be approximately $1.8million.
Note 28. Related party transactions
Joint ventures
Interests in joint ventures are set out in note 29.
Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the Directors'
report.
Transactions with related parties
The following transactions occurred with related parties:
30 June 2024 30 June 2023
$
$
Payment for other expenses:
Other expenses paid on behalf of joint venture
62,394
296,381
Other expenses paid to key management personnel
-
23,350
A related party of the Executive Chairman is an employee and shareholder of the Company. Their employment arrangements
are set by an employment contract as agreed by the board.
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
30 June 2024 30 June 2023
$
$
Current receivables:
Trade receivables from joint venture
11,326
-
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 28. Related party transactions (continued)
44
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
30 June 2024 30 June 2023
$
$
Current receivables:
Loan to joint venture
761,526
360,456
The loan to the joint venture is interest-free and unsecured.
Note 29. Interests in joint ventures
Interests in joint ventures are accounted for using the equity method of accounting. Information relating to joint ventures that
are material to the Company are set out below:
Ownership interest
Principal place of business /
30 June 2024 30 June 2023
Name
Country of incorporation
%
%
SiliconAurora Pty Ltd
Australia
50.00%
50.00%
Note 30. Events after the reporting period
On 16 August 2024 the Company announced a Share Purchase Plan (SPP) to issue up to 16,666,667 ordinary fully paid
shares. Under the SPP eligible shareholders will be invited to subscribe for up to $30,000 of new fully paid ordinary shares at
an issue price of $0.06 per share. The SPP closed on 18 September 2024 raising $1,076,640 (excluding costs) from the issue
of 17,944,075 shares.
On 16 September 2024 the Company secured institutional investment of up to $4,700,000. The Company will receive an initial
$1,300,000 under a Share Subscription Agreement and has an additional $3,400,000 funding available over the next 12
months under a Monthly Purchase Agreement.
On 27 September 2024 the company issued 20,000,000 ordinary full paid shares at $0.078 per share under the Share
Subscription Agreement that was announced on 16 September 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Company's operations, the results of those operations, or the Company's state of affairs in future financial years.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
45
Note 31. Reconciliation of loss after income tax to net cash used in operating activities
30 June 2024 30 June 2023
$
$
Loss after income tax expense for the year
(2,505,500)
(1,831,251)
Adjustments for:
Depreciation and amortisation
35,242
30,200
Write off of property, plant and equipment
17,137
-
Share of loss - joint ventures
342,571
375,488
Share-based payments
(165,081)
(87,175)
Provision for Gas-TESS decommissioning (Glenelg project)
-
(466,000)
Other
20,700
6,382
Change in operating assets and liabilities:
Increase in trade and other receivables
(162,503)
(56,006)
Decrease/(increase) in other operating assets
17,480
(35,463)
Increase in trade and other payables
275,221
40,554
Increase in employee benefits
29,889
12,471
Net cash used in operating activities
(2,094,844)
(2,010,800)
Note 32. Earnings per share
30 June 2024 30 June 2023
$
$
Loss after income tax attributable to the owners of 1414 Degrees Ltd
(2,505,500)
(1,831,251)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
233,614,324
201,291,280
Weighted average number of ordinary shares used in calculating diluted earnings per share
233,614,324
201,291,280
Cents
Cents
Basic earnings per share
(1.07)
(0.91)
Diluted earnings per share
(1.07)
(0.91)
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of 1414 Degrees Ltd, 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 financial year.
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.
The potential ordinary shares are considered to be anti-dilutive as it is unlikely that they will be issued.
Note 33. Share-based payments
No shares were issued to employees of the Company in this financial year as part of the Company's Performance Right's plan
(2023: 500,000).
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 33. Share-based payments (continued)
46
During the year no shares were issued to key management personnel as part of the Company's Performance Rights Plan
(2023: Nil), During the year no shares were issued to key management personnel as part of compensation (2023: Nil).
A Performance Rights Plan was established by the Company in the 2019 financial year, whereby the Company may, at the
discretion of the board, grant Performance Rights over ordinary shares in the Company to certain employees of the Company.
The performance rights are issued for nil consideration and vest in accordance with performance guidelines established by
the board.
Set out below are summaries of performance rights outstanding at the end of the financial year:
30 June 2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
25/05/2023
25/05/2024
$0.0000
855,000
-
-
(855,000)
-
25/05/2023
25/05/2025
$0.0000
1,210,000
-
-
(100,000)
1,110,000
25/05/2023
25/05/2026
$0.0000
2,400,000
-
-
(200,000)
2,200,000
10/11/2023
30/06/2024
$0.0000
-
3,200,000
-
(3,200,000)
-
10/11/2023
31/12/2024
$0.0000
-
3,200,000
-
-
3,200,000
10/11/2023
31/12/2025
$0.0000
-
3,200,000
-
-
3,200,000
4,465,000
9,600,000
-
(4,355,000)
9,710,000
●
The fair value of the performance rights that expired on 25 May 2024 was $2,025 ($0.00167 per performance right).
●
The fair value of the performance rights expiring on 25 May 2025 is $128 ($0.00018 per performance right).
●
The fair value of the performance rights expiring on 25 May 2026 is $24 ($0.00003 per performance right).
●
The fair value of the performance rights that expired on 30 June 2024 was $1,487 ($0.00050 per performance right).
●
The fair value of the performance rights expiring on 31 December 2024 is $2,025 ($0.00079 per performance right).
●
The fair value of the performance rights expiring on 31 December 2025 is $4,780 ($0.00213 per performance right).
30 June 2023
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
02/04/2019
15/01/2023
$0.0000
500,000
-
(250,000)
(250,000)
-
23/07/2020
15/01/2023
$0.0000
1,000,000
-
(250,000)
(750,000)
-
09/04/2021
15/01/2023
$0.0000
50,000
-
-
(50,000)
-
09/04/2023
15/01/2023
$0.0000
500,000
-
-
(500,000)
-
06/06/2022
15/06/2023
$0.0000
200,000
-
-
(200,000)
-
25/05/2023
25/05/2024
$0.0000
-
855,000
-
-
855,000
25/05/2023
25/05/2025
$0.0000
-
1,210,000
-
-
1,210,000
25/05/2023
25/08/2026
$0.0000
-
2,400,000
-
-
2,400,000
2,250,000
4,465,000
(500,000)
(1,750,000)
4,465,000
There are no performance rights exercisable at the end of the financial year.
The weighted average exercise price during the financial year was $0 (2023: $0).
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 1.2
years (2023: 2.3 years).
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services.
1414 Degrees Ltd
Notes to the financial statements
30 June 2024
Note 33. Share-based payments (continued)
47
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company
receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Company or employee, the failure to satisfy the condition is treated as
a cancellation. If the condition is not within the control of the Company or employee and is not satisfied during the vesting
period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
1414 Degrees Ltd
Consolidated entity disclosure statement
As at 30 June 2024
48
Place formed /
Ownership
interest
Entity name
Entity type
Country of incorporation
%
Tax residency
1414 Degrees Limited
Body corporate
Australia
100.00% Australia
SiliconAurora Pty Ltd
Body corporate
Australia
50.00% Australia
Aurora Finco Pty Ltd
Body corporate
Australia
50.00% Australia
This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and
includes information for each entity that was part of the public company as at the end of the financial year.
1414 Degrees Ltd
Directors' declaration
30 June 2024
49
In the Directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the Company's financial position as at 30 June
2024 and of its performance for the financial year ended on that date;
●
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Kevin Moriarty
Executive Chairman
30 September 2024
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 1414 DEGREES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of 1414 Degrees Limited (the Company), which comprises the
statement of financial position as at 30 June 2024, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the
year then ended, and notes to the financial report, including material accounting policy information,
the consolidated entity disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of 1414 Degrees Limited, is in accordance with the
Corporations Act 2001, including:
(i)
Giving a true and fair view of the Company’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Company in accordance with the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the entity’s
ability to continue as a going concern and therefore the entity may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
50
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Intangible Assets – Sibox Demonstration Model and Product Development
Key audit matter
How the matter was addressed in our audit
The carrying value of the Sibox
Demonstration Model and Product
Development intangible assets as set out in
note 14 is a key audit matter due to:
The significance of the total balance.
The level of audit procedures
undertaken to evaluate management’s
application of the recognition criteria
for internally generated intangible
assets required by AASB 138 Intangible
Assets.
The level of judgment applied by
management and inherent subjectivity
in their assessment of the potential
impairment of the assets and
compliance with the requirements of
AASB 136 Impairment of Assets.
Our audit procedures included, but were not limited to:
Assessing the composition of development costs and the
capitalisation criteria against the requirements of AASB 138 –
Intangible Assets.
Agreeing a sample of additions to supporting documentation,
and ensuring the amounts were appropriately capitalised.
Obtaining an understanding of the key processes and controls
associated with the allocation of costs to the product
development category.
Considering and evaluating assumptions contained within
management’s impairment assessment and assessing the
discount rate applied.
Performing a sensitivity analysis on the key financial
assumptions of the forecasted cash flows and discount rate in
the model and considering the likelihood of such movements
in these key assumptions.
Joint Venture Investment and Loan to Joint Venture Entity – Judgement regarding carrying value
Key audit matter
How the matter was addressed in our audit
The carrying value of the Joint Venture
Investment asset and the Loan receivable
from the joint venture entity (SiliconAurora
Pty Ltd) as set out in notes 8 and 10
respectively is a key audit matter due to:
The significance of the total balances.
The level of judgment applied by
management and inherent subjectivity
in their assessment of impairment
indicators and the consequential impact
on the carrying value of these assets as
disclosed in note 2.
Our audit procedures included, but were not limited to:
Checking the accuracy of the reconciliation of each balance
including examining the underlying transactions associated
with each balance.
Consideration of the assumptions made by management in
their assessment of the value of each asset and whether they
are reasonable given the underlying contracts.
Considering the publicised information about the Joint
Venture Entity according to the other partner to the joint
venture and considering that partners ability to continue to
contribute funding and management services to the joint
venture project.
51
Key audit matter
How the matter was addressed in our audit
The level of audit procedures
undertaken to evaluate management’s
judgement involved in determining
whether the carrying value of these
assets exceed their recoverable value.
Comparing the internally produced information about
management’s judgements to independently sourced
information about the project being undertaken by the joint
venture entity.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Company’s annual report for the year ended 30 June 2024, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
52
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 11 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of 1414 Degrees Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards
BDO Audit Pty Ltd
Paul Gosnold
Director
Adelaide, 30 September 2024
53
1414 Degrees Limited
Shareholder Information
30 June 2024
54
The shareholder information set out below was applicable as at 27 September 2024
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Number
shares
of holders
issued
1 to 1,000
67
0.01
1,001 to 5,000
559
0.63
5,001 to 10,000
796
2.18
10,001 to 100,000
1,530
18.49
100,001 and over
402
78.69
3,354
100.00
Holding less than the minimum $500.00 parcel (at $0.07 per share)
1,045
1.57%
Equity security holders
Twenty largest quoted equity security holders:
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
CITICORP NOMINEES PTY LIMITED
22,346,543
8.09
FOCEM PTY LTD
15,937,916
5.77
AMMJOHN PTY LTD
6,466,039
2.34
MR JOHN HENRY MOSS + MRS WENDY ELIZABETH MOSS
5,249,188
1.90
MEWTWO GLOBAL INVESTMENTS
4,333,333
1.57
MR HAROLD TOMBLIN + MRS JUDITH JOHNSTON
4,106,976
1.49
RANAT INVESTMENTS PTY LTD
3,500,000
1.27
JA & JK INVESTMENTS PTY LTD
3,100,130
1.12
BNP PARIBAS NOMS PTY LTD
3,031,196
1.10
BLAKFORD PTY LIMITED
3,000,000
1.09
MR IAN ROSS BURDON + MS CATHERINE LOUISE TAYLOR
3,000,000
1.09
MR BRENTON MARK MADDEN
2,831,606
1.03
MARHFEL PTY LTD
2,809,570
1.02
MR JOHN LANGLEY HANCOCK
2,778,333
1.01
MRS SUSAN JACQUELINE JOHNSON
2,657,448
0.96
RJK SHEPHERD SUPER PTY LTD
2,399,741
0.87
MR IAN ROSS BURDON + MS CATHERINE LOUISE TAYLOR
2,250,000
0.81
LHO LA PTY LTD
2,137,309
0.77
BENGER SUPERANNUATION PTY LIMITED
1,900,000
0.69
R & C SWANN PTY LTD
1,750,000
0.63
95,585,328
34.62
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (TOTAL)
180,527,268
65.38
Total Remaining Holders Balance
22,346,543
8.09
1414 Degrees Limited
Shareholder Information
30 June 2023
55
Unquoted equity securities
35,683,063 Options over Ordinary Shares held by 661 holders.
9,710,000 Performance Rights over Ordinary Shares held by 11 holders.
Substantial holders (based on last substantial holder notice)
Shareholders
Shares
% Interest
Robert John Keith Shepherd as trustee for RJK Shepherd & Assoc
SF, John Henry Moss and Wendy Elizabeth Moss (Moss
Retirement Account) and Ammjohn Pty Ltd
15,740,443
6.61%
Dr Kevin Moriarty
16,237,916
6.82%
Voting rights
Unquoted equity securities have no voting rights. The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have
one vote.
Restricted Securities
No restricted securities were on issue at 27 September 2024.
There are no other classes of equity securities.
17
1414 Degrees Ltd
ABN 57 138 803 620
Western Plant, Door 1
1 Watts Road, Tonsley
South Australia, 5042
E info@1414degrees.com.au
T +61 8 8357 8273
W 1414degrees.com.au