1
ANNUAL
REPORT
2025
1414DEGREES.COM.AU
Chairman’s Letter to Shareholders
4
Corporate Directory
9
Corporate Governance
9
Financial Statements
10
Directors’ Report
12
Declaration of Independence
24
Statement of Profit or Loss
25
and Other Comprehensive Income
Statement of Financial Position
26
Statement of Changes in Equity
27
Statement of Cash Flows
28
Notes to the Financial Statements
29
Consolidated entity disclosure statement
47
Directors’ Declaration
48
Independent Auditor’s Report
49
Shareholder Information
53
CONTENTS
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2
Dear Shareholders,
The 2025 financial year has been one
of both consolidation and forward
momentum for 1414 Degrees. We have
moved beyond demonstration into
commercial readiness across several of
our technologies.
We refined and validated our Heat-
as-a-Service (HaaS) business model,
supported by Deloitte’s financial
modelling, and tested it with prospective
customers. This approach allows
industry to access renewable heat
without needing specialised energy
market skills. It’s gaining real traction
among energy-intensive manufacturers.
At a New South Wales factory we
completed feasibility work for a 10 MWh
SiBox pilot, as the first stage toward
full gas replacement. Results to date
confirm that SiBox can deliver clean,
dispatchable heat that is already cheaper
than gas.
Our HaaS approach lets 1414 Degrees
deliver decarbonised steam and hot
air directly to industry. By overlaying
an energy management system on our
energy storage technology, we are able to
smooth out intermittent electricity and
transform it into steady, controllable heat
for industrial processes. We provide the
specialised engineering and sophisticated
algorithms—so our clients don’t need
to worry about the complexities. The
outcome is simple: a seamless solution
that lets industry adopt clean heat and
focus on what they do best - producing
their goods and materials.
The SiPHyR turquoise hydrogen program
made strong progress this year. In
May 2025, a technical workshop with
partners Woodside Energy Technologies,
the University of Adelaide and RMIT
confirmed promising results: methane
conversion efficiencies above 70%. Earlier
reactor campaigns showed over 30%
methane conversion at 1000 °C, with
hydrogen concentrations above 50% in
the exhaust. These results confirm viable
pathways to delivering low-cost hydrogen
and valuable solid carbon products. To
accelerate development, we secured a
$492,526 AEA Ignite grant during the
year, building on the $2,500,000 CRC-P
program already in place.
At Aurora, our renewable energy project
near Port Augusta, development of
the 140 MW / 280 MWh battery energy
storage system (BESS) advanced
through generator due diligence and
network impact assessments - critical
milestones on the path to securing
connection approval. Aurora continues
to be central to our vision: anchoring
renewable generation, long-duration
storage, and industrial decarbonisation.
We recognise the patience required
during this phase of development.
However, with solid technology
validation, market-ready business
models, and grant-assisted R&D, 1414
Degrees is well-positioned to translate
its potential into real-world impact.
Looking ahead, in the coming year we
aim to:
•
Deploy a commercial pilot of SiBox
in an industrial setting;
•
Advance Aurora toward
construction readiness;
•
Progress SiPHyR from lab-scale
campaigns toward pilot-scale
demonstration, targeting high
hydrogen output and saleable solid
carbon co-products;
•
Continue securing customer
agreements under the HaaS model.
On behalf of the Board, I thank you for
your support and ongoing confidence in
our mission to deliver clean industrial
heat and hydrogen solutions.
Dr Kevin Moriarty
Executive Chairman
CHAIRMAN’S
LETTER
2025
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THE FUTURE OF CLEAN HEAT
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7
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 2025 Corporate Governance
Statement is dated as at 30 June 2025
and reflects the corporate governance
practices in place throughout the
2025 year.
The 2025 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
LOW-COST,
RELIABLE,
CLEAN ENERGY
9
8
FINANCIAL
STATEMENTS
11
10
DIRECTOR’S
REPORT
12
13
The Directors present their report,
together with the financial statements,
on the Company for the year ended 30
June 2025.
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 $3,340,190
(30 June 2024: $2,505,500). Key
contributors to the result included
increased investment in engineering
resources for the commercialisation of
SiBox® and SiPHyR™, as well as ongoing
expenditure in progressing the Aurora
Energy Precinct transmission connection.
The Company raised a total of $2,516,737
(net of transaction costs) throughout the
period. The funds raised include
$1,080,000 raised through an
oversubscribed Share Purchase Plan
(SPP), followed by an institutional
investment agreement with Lind
Global Fund II, LP for up to $4,700,000,
comprising $1,300,000 in upfront
funding and up to $3,400,000 available
via monthly tranches.
The total funds received from Lind
Global Fund II, LP as at 30 June 2025 is
$1,650,000. These funds are directed
towards the installation of commercial
SiBox systems, SiPHyR development, and
general working capital.
Woodside Energy Technologies Pty Ltd
increased its contribution to the SiPHyR
development program to $1,000,000,
comprising $700,000 in cash and
$300,000 in technical support. The total
value of the SiPHyR program now stands
at $5,200,000, including the $2,500,000
CRC-P grant from the Australian
Government.
The Company continues to support
development activities at the Aurora
Energy Precinct, with the aim of securing
near-term value on transmission access
approval. A payment of $1,500,000
remains due from Vast Solar Pty Ltd upon
successful execution of a transmission
connection agreement.
Projects
During the 2024–25 financial year, your
Company progressed its transition from
technology development to commercial
deployment across its energy storage
and hydrogen technology platforms.
SiBox
The SiBox Demonstration Module
completed its formal evaluation in
the previous financial year, achieving
Technology Readiness Level 7. In
FY2025, the Company’s focus shifted to
commercial rollout. Engagement with
prospective customers increased, with
multiple industrial users seeking solutions
to decarbonise heat processes. Feasibility
assessments and sitespecific
engineering progressed to proposal and
tender phases.
The Company continued to promote
SiBox as the only demonstrated high-
temperature energy storage system
and it remains a standout in the energy
storage sector for its ability to deliver high-
temperature heat with high precision,
independent charging and discharging,
and suitability for frequency control
ancillary services (FCAS) in the National
Electricity Market.
DIRECTOR’S REPORT
DIRECTOR’S REPORT
SiPHyR
The Company formally launched
development of its SiPHyR (Storage-
integrated Pyrolytic Hydrogen
Reactor) technology, which integrates
its silicon-based thermal storage
with a catalytic methane pyrolysis
reactor licensed from the University
of Adelaide. The process is designed
to produce hydrogen and solid carbon
while using significantly less electricity
than electrolysis, and is compatible
with existing gas infrastructure.
The project is being progressed under
the CRC-P grant and in collaboration
with Woodside Energy Technologies,
the University of Adelaide, RMIT
and Vulcan Steel. In April 2025, the
Company acquired exclusive rights
to a second University of Adelaide
patent covering a gas-recycling and
heat recovery process, which further
enhances the energy efficiency of
the system. The SiPHyR project is
expected to advance from Technology
Readiness Level 2 to 5 over three years,
with a scaled demonstration at TRL 7
planned thereafter.
Aurora Energy Precinct
The Company, through its SiliconAurora
Pty Ltd joint venture with Vast Solar Pty
Ltd, executed a term sheet with BHP
Group subsidiary OZ Minerals Services in
April 2025 for access to the 275kV Hill-
to-Hill transmission line. The proposed
connection to the National Electricity
Market (NEM) will enable the development
of a 140MW/280MWh battery energy
storage system (BESS). Technical and
commercial negotiations progressed
during the period, supported by advisory
firm Hannam & Partners, which was
engaged to assist with capital raising and
project funding initiatives.
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, Germany, PRC, UK and US.
•
“Energy Storage and Retrieval
System” (TESS_IND). Granted in US
and AU.
•
“SiBox Storage Media”. Application
pending in AU, PRC, EU, IN and US.
•
“Fluid Reactor”. Application pending
in AU, PRC, IN and US.
•
PCT Application PCT/
AU2024/050238 (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 and EU.
•
SiBrick registered in AU, Madrid
Protocol countries, EU, UK and US.
Application pending in CAN.
•
SiPHyR trademark registered in AU.
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 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
DIRECTOR’S REPORT
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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 $1,500,000 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 5 June 2025 the Company received
$50,000 from Lind Global Fund pursuant
to the Share Purchase Agreement dated
19 August 2024. 3,846,154 shares were
subsequently issued on 3 July 2025.
On 8 July 2025 the company announced
that SiPHyR technology has been
awarded an Australia’s Economic
Accelerator (AEA) Ignite grant of
$492,526 for catalyst development
by universities of Adelaide and
Queensland. SiPHyR development is
further supported by $2,500,000
contribution from the Cooperative
Research Centres Projects (CRC-P)
program as part of a $5,200,000
collaborative project with the University
of Adelaide, Woodside Energy, RMIT and
Vulcan Steel.
250,000 performance rights were
cancelled on 21 August 2025 in
accordance with the terms and
conditions they were issued under as
they will not meet their vesting criteria.
On 21 August 2025, 35,650,988 options
with an exercise price of $0.10 expired,
unexercised.
On 22 August 2025 32,075 ordinary fully
paid shares were issued pursuant to the
exercise of options with an exercise price
of $0.10.
50,000 performance rights were
cancelled on 11 September 2025
in accordance with the terms and
conditions they were issued under as
they will not meet their vesting criteria.
No other matter or circumstance has
arisen since 30 June 2025 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.
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 performance rights
1,800,000 performance rights
GRAHAM DOOLEY
Title
Non-Executive Director
Qualifications
BSc, BE (Hons), MPA, FAICD, FIEAust
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 a Director of 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)
Water Authority of Fiji and SA Hydrogen
Hubs Inc
Interests in shares
507,846 ordinary shares
Interests in performance rights
1,800,000 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 performance rights
1,800,000 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
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. 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
2025, and the number of meetings
attended by each Director were:
Full Board
Attended/Held
Kevin Moriarty
7/7
Graham Dooley
7/7
Randolph Bowen
6/7
Audit Committee
Attended/Held
Kevin Moriarty
2/2
Graham Dooley
2/2
Randolph Bowen
2/2
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.
DIRECTOR’S REPORT
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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
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.
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19
Corporate performance
The performance of the Group for the past 5 years is:
Number of
shares
Net loss for the
year
Shareholder's
equity
on issue at year
end
Share price at
end of year
Net asset
position
Year
$
Loss per share
Cents
$
No.
$
$
2021
(5,974,178)
3.110
32,486,429
200,310,458
$0.092
11,528,336
2022
(1,369,310)
0.680
32,656,879
201,985,458
$0.073
10,475,738
2023
(1,831,521)
0.910
33,002,185
205,485,458
$0.046
8,834,118
2024
(2,505,500)
1.070
34,334,940
238,168,521
$0.058
7,496,292
2025
(3,340,190)
1.230
36,851,677
291,625,172
$0.017
6,679,793
Voting and comments made at the Company's 2024 Annual General Meeting ('AGM')
At the 14 November 2024 AGM, 96% of the votes received supported the adoption of the remuneration report for the year
ended 2024. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
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 2025
$
$
$
$
$
$
$
$
Non-Executive
Directors:
Graham Dooley
66,711
-
-
-
-
-
1,195
67,906
Randolph Bowen
50,000
-
-
-
-
-
1,195
51,195
Executive
chairman:
Kevin Moriarty
200,000
-
-
23,000
5,000
-
1,195
229,195
316,711
-
-
23,000
5,000
-
3,585
348,296
DIRECTOR’S REPORT
1414 Degrees Ltd
Directors' report
30 June 2025
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
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
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. On 3 March 2025 Mr Dooley agreed
to a variation of his appointment to reflect his increase in work load for the duration of
the commercialisation project his monthly fee increased to $8,333.
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 2025.
Options
There were no options over ordinary shares issued to Directors and other key management personnel as part of compensation
during the year ended 30 June 2025.
1414 Degrees Ltd
Directors' report
30 June 2025
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
31/12/2025
31/12/2025
$0.4000
$0.0021
Graham Dooley
800,000 10/11/2023
31/12/2025
31/12/2025
$0.4000
$0.0021
Randolph Bowen
800,000 10/11/2023
31/12/2025
31/12/2025
$0.4000
$0.0021
Kevin Moriarty
1,000,000 19/11/2024
31/12/2025
31/12/2025
$0.1200
$0.0023
Graham Dooley
1,000,000 19/11/2024
31/12/2025
31/12/2025
$0.1200
$0.0023
Randolph Bowen
1,000,000 19/11/2024
31/12/2025
31/12/2025
$0.1200
$0.0023
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 2025 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
-
-
800,000
878
Graham Dooley
10/11/2023
30/06/2024
-
-
800,000
878
Randolph Bowen
10/11/2023
30/06/2024
-
-
800,000
878
Kevin Moriarty
19/11/2024
1,000,000
1,574
-
-
Graham Dooley
19/11/2024
1,000,000
1,574
-
-
Randolph Bowen
19/11/2024
1,000,000
1,574
-
-
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
16,737,916
-
-
-
16,737,916
Graham Dooley
257,846
250,000
-
-
507,846
Randolph Bowen
3,000,000
500,000
-
-
3,500,000
19,995,762
750,000
-
-
20,745,762
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
1,600,000
1,000,000
-
(800,000)
1,800,000
Graham Dooley
1,600,000
1,000,000
-
(800,000)
1,800,000
Randolph Bowen
1,600,000
1,000,000
-
(800,000)
1,800,000
4,800,000
3,000,000
-
(2,400,000)
5,400,000
20
21
1414 Degrees Ltd
Directors' report
30 June 2025
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
The 4,408,171 options held by the directors on 30 June 2025 expired unexercised on 21 August 2025.
This concludes the remuneration report, which has been audited.
Shares under option
There were no unissued ordinary shares of the Company under option outstanding at the date of this report.
Shares under performance rights
Unissued ordinary shares of the Company under performance rights at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under rights
10 November 2023
31 December 2025
$0.0000
3,200,000
19 November 2024
31 December 2025
$0.0000
4,000,000
25 May 2023
23 May 2026
$0.0000
1,900,000
9,100,000
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in
any share issue of the Company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of the Company were issued during the year ended 30 June 2025 and up to the date of this
report on the exercise of options granted:
Exercise
Number of
Date options granted
price
shares issued
21 August 2023
$0.1000
32,075
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
2025 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.
1414 Degrees Ltd
Directors' report
30 June 2025
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.
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
22 September 2025
22
23
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 A.C.N. 050
110 275 Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 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 JOSH CARVER
TO THE DIRECTORS OF 1414 DEGREES LIMITED
As lead auditor of 1414 Degrees Limited for the year ended 30 June 2025, 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.
BDO Audit Pty Ltd
Josh Carver
Director
Adelaide, 22 September 2025
25
24
1414 Degrees Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2025
Note
2025
2024
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
Revenue
Other income
4
53,621
41,713
Total income
53,621
41,713
Expenses
Administration and professional expenses
(1,048,729)
(1,282,421)
Depreciation and amortisation
(312,371)
(35,242)
Employee benefits expense
(622,909)
(245,301)
Finance costs
(78,258)
(40,529)
Loss on disposal of assets
-
(74,694)
Relocation costs
(1,705)
(135,333)
Share based payments (equity settled)
33
(6,954)
165,081
Share of loss - SiliconAurora joint venture
(830,428)
(342,571)
Other expenses
5
(492,457)
(556,203)
Total expenses
(3,393,811)
(2,547,213)
Loss before income tax expense
(3,340,190)
(2,505,500)
Income tax expense
6
-
-
Loss after income tax expense for the year
21
(3,340,190)
(2,505,500)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year
(3,340,190)
(2,505,500)
Cents
Cents
Basic earnings per share
32
(1.23)
(1.07)
Diluted earnings per share
32
(1.23)
(1.07)
1414 Degrees Ltd
Statement of financial position
As at 30 June 2025
Note
2025
2024
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
Assets
Current assets
Cash and cash equivalents
7
1,799,915
1,707,352
Trade and other receivables
8
3,986,471
3,409,024
Financial assets
9
174,437
164,377
Other assets
12
84,282
155,006
Total current assets
6,045,105
5,435,759
Non-current assets
Joint venture investment
10
951,513
1,781,941
Property, plant and equipment
13
206,854
152,840
Right-of-use assets
11
743,584
910,697
Intangibles assets
14
449,562
1,110,783
Total non-current assets
2,351,513
3,956,261
Total assets
8,396,618
9,392,020
Liabilities
Current liabilities
Trade and other payables
15
675,761
760,767
Lease liabilities
16
170,962
150,039
Employee benefits
17
168,964
152,677
Provisions
18
34,000
34,000
Total current liabilities
1,049,687
1,097,483
Non-current liabilities
Lease liabilities
16
556,247
704,747
Employee benefits
17
40,891
23,498
Provisions
18
70,000
70,000
Total non-current liabilities
667,138
798,245
Total liabilities
1,716,825
1,895,728
Net assets
6,679,793
7,496,292
Equity
Contributed equity
19
36,851,677
34,334,940
Reserves
20
8,548
2,639
Accumulated losses
21
(30,180,432)
(26,841,287)
Total equity
6,679,793
7,496,292
27
26
1414 Degrees Ltd
Statement of changes in equity
For the year ended 30 June 2025
The above statement of changes in equity should be read in conjunction with the accompanying notes
Contributed
Accumulated
equity
Reserves
losses
Total equity
$
$
$
$
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
Contributed
Accumulated
equity
Reserves
losses
Total equity
$
$
$
$
Balance at 1 July 2024
34,334,940
2,639
(26,841,287)
7,496,292
Loss after income tax expense for the year
-
-
(3,340,190)
(3,340,190)
Other comprehensive income for the year, net of tax
-
-
-
-
Total comprehensive income for the year
-
-
(3,340,190)
(3,340,190)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 19)
2,466,737
-
-
2,466,737
Contribution of unissued equity (note 19)
50,000
-
-
50,000
Performance Rights Valuation
-
6,954
-
6,954
Performance Rights Lapsed
-
(1,045)
1,045
-
Balance at 30 June 2025
36,851,677
8,548
(30,180,432)
6,679,793
1414 Degrees Ltd
Statement of cash flows
For the year ended 30 June 2025
Note
2025
2024
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
Cash flows from operating activities
Receipts from customers
-
36,111
Payments to suppliers and employees
(2,437,114)
(2,120,252)
Interest received
40,677
29,826
Interest and other finance costs paid
(78,258)
(40,529)
Net cash used in operating activities
31
(2,474,695)
(2,094,844)
Cash flows from investing activities
Payments for property, plant and equipment
13
(98,789)
(142,439)
Payments for security deposits
-
(164,377)
Payments for product development activities
(720,342)
(1,749,626)
Partner project contributions
750,000
900,000
Research and development tax offset received and used for intangible asset
14
1,055,959
1,467,591
Government grant received and used for intangible asset
14
-
865,121
Loans to SiliconAurora joint venture
(800,000)
(401,069)
Proceeds from disposal of property, plant and equipment
-
6,982
Net cash from investing activities
186,828
782,183
Cash flows from financing activities
Proceeds from issue of shares
19
2,726,640
1,470,739
Proceeds from borrowings
264,327
-
Share issue transaction costs
(209,903)
(137,984)
Repayment of borrowings
(264,327)
-
Repayment of lease liabilities
(136,307)
(261,199)
Net cash from financing activities
2,380,430
1,071,556
Net increase/(decrease) in cash and cash equivalents
92,563
(241,105)
Cash and cash equivalents at the beginning of the financial year
1,707,352
1,948,457
Cash and cash equivalents at the end of the financial year
7
1,799,915
1,707,352
29
28
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 1. 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 22 September 2025. The
Directors have the power to amend and reissue the financial statements.
Note 2. Material accounting policy information
Going concern
The financial statements has been prepared on the basis of a going concern. The annual report shows the Company incurred
a net loss of $3,340,190 and a net cash inflow from activities of $92,563 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 Accounting
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 3.
Other material accounting policies
Other material accounting policies are separately disclosed in their corresponding note.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 3. 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. There are no critical accounting judgements, estimates and assumptions
that are likely to affect the current or future financial years.
Note 4. Other income
2025
2024
$
$
Gain on sale of plant and equipment
-
6,982
Interest received
53,621
29,826
Other income
-
4,905
53,621
41,713
Note 5. Other expenses
2025
2024
$
$
Non-executive Director's fees
116,711
100,000
Marketing
117,350
135,562
Other expenses
258,396
320,641
492,457
556,203
Note 6. Income tax expense
2025
2024
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(3,340,190)
(2,505,500)
Tax at the statutory tax rate of 25%
(835,048)
(626,375)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
1,477
(41,270)
Share of loss - SiliconAurora Joint Venture
207,607
85,643
Non-deductible expenses
254
196
(625,710)
(581,806)
Current year tax losses not recognised
624,191
524,096
Current year temporary differences not recognised
1,519
57,710
Income tax expense
-
-
2025
2024
$
$
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
11,887,699
9,301,428
Potential tax benefit @ 25%
2,971,925
2,325,357
31
30
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 6. Income tax expense (continued)
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.
2025
2024
$
$
Deferred tax assets/(liabilities) not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Right of use assets
(185,896)
(227,674)
Lease liabilities
181,803
213,697
Employee benefits
52,463
51,680
Provision for lease make good
17,500
17,500
Provision for remediation
8,500
8,500
Accrued expenses
19,627
45,250
Trade and other payables
13,448
-
Plant and equipment
3,027
-
Total deferred tax not recognised
110,472
108,953
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
2025
2024
$
$
Current assets
Cash at bank
1,799,915
1,707,352
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
2025
2024
$
$
Current assets
R & D refundable tax offset
881,925
970,733
SiliconAurora sale proceeds receivable
1,500,000
1,500,000
SiliconAurora Pty Ltd loan
1,561,525
761,525
Other receivables
43,021
176,766
3,986,471
3,409,024
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 term of the loan as outlined in the shareholder agreement has expired. As a result, the company retains the right to recall
the loaned funds at its discretion. The loan remains unsecured, with no interest charged on the loan balance.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 8. Trade and other receivables (continued)
Accounting policy for research & development tax incentives
To the extent that research and development costs are eligible activities under the "Research and development tax incentive"
programme, a refundable tax offset is available for companies with annual turnover of less than $20 million. The Company
recognises a receivable offset in the financial year at its fair value only to the extent that where there is reasonable assurance
that the incentive will be received.
Accounting policy for trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Note 9. Financial assets
2025
2024
$
$
Current assets
Term deposit - 12 month maturity
174,437
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 carrying amount at amortised cost
164,377
-
Additions
-
164,377
Interest
10,060
-
Closing carrying amount at amortised cost
174,437
164,377
Note 10. Joint venture investment
2025
2024
$
$
Non-current assets
SiliconAurora Pty Ltd
951,513
1,781,941
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
1,781,941
2,124,512
Share of loss
(830,428)
(342,571)
Closing fair value
951,513
1,781,941
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.
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).
33
32
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 10. Joint venture investment (continued)
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 2025 (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.
Note 11. Right-of-use assets
2025
2024
$
$
Non-current assets
Land and buildings - right-of-use
984,882
958,629
Less: Accumulated depreciation
(241,298)
(47,932)
743,584
910,697
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 2023
226,192
-
226,192
Additions
-
958,629
958,629
Amortisation expense
(226,192)
(47,932)
(274,124)
Balance at 30 June 2024
-
910,697
910,697
Modification
-
26,254
26,254
Amortisation expense
-
(193,367)
(193,367)
Balance at 30 June 2025
-
743,584
743,584
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 2025
Note 12. Other
2025
2024
$
$
Current assets
Prepayments
83,110
153,834
Other current assets
1,172
1,172
84,282
155,006
Note 13. Property, plant and equipment
2025
2024
$
$
Non-current assets
Plant and equipment - at cost
156,055
80,780
Less: Accumulated depreciation
(27,678)
(5,231)
128,377
75,549
Fixtures and fittings - at cost
118,746
118,073
Less: Accumulated depreciation
(61,745)
(45,903)
57,001
72,170
Office equipment - at cost
74,973
52,133
Less: Accumulated depreciation
(53,497)
(47,012)
21,476
5,121
206,854
152,840
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Plant and
equipment
Fixtures and
fittings
Office
equipment
Total
$
$
$
$
Balance at 1 July 2024
75,549
72,170
5,121
152,840
Additions
75,274
674
22,841
98,789
Depreciation expense
(22,446)
(15,843)
(6,486)
(44,775)
Balance at 30 June 2025
128,377
57,001
21,476
206,854
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.
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.
An item of 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.
35
34
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 14. Intangibles
2025
2024
$
$
Non-current assets
SiBox demonstration model
14,868,132
14,868,132
Government grants, tax offsets and Woodside funding applied
(14,325,833)
(14,125,833)
Less: Accumulated amortisation
(92,737)
(18,507)
449,562
723,792
Product development - intellectual property
1,257,333
536,991
Government grants and R & D refundable tax offsets applied
(967,151)
-
Woodside funding applied
(290,182)
(150,000)
-
386,991
449,562
1,110,783
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Product
Development
SiBox
demonstration
model
Total
$
$
$
Balance at 1 July 2024
386,991
723,792
1,110,783
Additions
720,342
-
720,342
R & D tax offset applied
(967,151)
-
(967,151)
Woodside funding applied
(140,182)
(200,000)
(340,182)
Amortisation expense
-
(74,230)
(74,230)
Balance at 30 June 2025
-
449,562
449,562
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 when an impairment indicator is detected.
Research and development tax offset
Research and development tax incentives are assistance by government in the form of refund research and development
expenses to an entity in return for past and future compliance with certain conditions related to the operating activities of the
entity. The tax offset received are presented in the statement of financial position by deducting the grant from the carrying
amount of the intangible asset.
Woodside funding
1414 Degrees Limited have entered into an agreement with Woodside Energy Technologies to further develop and
commercialise SiBox and SiPHyR technologies. Funding receipts from Woodside Energy Group Ltd are accounted for as a
deduction against the cost of the intangible asset to extent that it has been expended. Funding received in excess of the
amount expended while developing the intangible asset is recognised as a trade and other payables in the statement of
financial position (note 15).
Intellectual property
Significant costs associated with intellectual property are deferred and amortised on a straight-line basis over the period of
their expected benefit, being their finite life of 10 years.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 14. Intangibles (continued)
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
2025
2024
$
$
Current liabilities
Trade payables
208,425
491,505
Woodside funding received in advance
259,818
-
BAS payable
-
24,938
Other payables and accruals
207,518
244,324
675,761
760,767
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.
Note 16. Lease liabilities
2025
2024
$
$
Current liabilities
Lease liability
170,962
150,039
Non-current liabilities
Lease liability
556,247
704,747
727,209
854,786
Refer to note 23 for further information on financial instruments.
Total interest incurred on the lease liability for the year was $69,423 (2024: $40,529).
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.
37
36
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 17. Employee benefits
2025
2024
$
$
Current liabilities
Annual leave
118,314
101,765
Long service leave
50,650
50,912
168,964
152,677
Non-current liabilities
Long service leave
40,891
23,498
209,855
176,175
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.
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
2025
2024
$
$
Current liabilities
Provision for Gas-TESS decommissioning
34,000
34,000
Non-current liabilities
Lease make good
70,000
70,000
104,000
104,000
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.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 19. Contributed equity
2025
2024
2025
2024
Shares
Shares
$
$
Ordinary shares - fully paid
287,779,018
238,168,521
36,801,677
34,334,940
Unissued ordinary shares
3,846,154
-
50,000
-
291,625,172
238,168,521
36,851,677
34,334,940
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 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
Issue of shares - share purchase plan
25/09/2024
17,944,075
$0.0600
1,076,640
Issue of shares - placement
27/09/2024
20,000,000
$0.0780
1,300,000
Issue of shares - placement
22/10/2024
2,040,817
$0.0490
100,000
Issue of shares - placement
30/12/2024
4,347,827
$0.0230
100,000
Issue of shares - placement
29/01/2025
2,500,000
$0.0200
50,000
Issue of shares - placement
04/03/2025
2,777,778
$0.0180
50,000
Transaction costs
-
$0.0000
(209,903)
Balance
30 June 2025
287,779,018
36,801,677
Movements in unissued share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2024
-
-
Unissued shares
5 June 2025
3,846,154
$0.0130
50,000
Balance
30 June 2025
3,846,154
50,000
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.
Unissued shares
On 5 June 2025 the Company received $50,000 from Lind Global Fund pursuant to the Share Purchase Agreement dated 19
August 2024. 3,846,154 shares were subsequently issued on 3 July 2025.
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.
39
38
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 19. Contributed equity (continued)
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 2024 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
2025
2024
$
$
Share-based payments reserve
8,548
2,639
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 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
Employee Share Scheme - Performance Rights Valuation
6,954
-
6,954
Employee Share Scheme - Performance Rights Lapsed
(1,045)
-
(1,045)
Balance at 30 June 2025
8,548
-
8,548
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.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 21. Accumulated losses
2025
2024
$
$
Accumulated losses at the beginning of the financial year
(26,841,287)
(24,335,787)
Loss after income tax expense for the year
(3,340,190)
(2,505,500)
Transfer from options reserve
1,045
-
Accumulated losses at the end of the financial year
(30,180,432)
(26,841,287)
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:
Financial assets
2025
2024
$
$
Financial assets at amortised cost:
Cash and cash equivalents
1,799,915
1,707,352
Term deposits
174,437
164,377
Trade and other receivables - SiliconAurora sales proceeds
1,500,000
1,500,000
Trade and other receivables - SiliconAurora loan
1,561,525
761,525
Trade and other receivables - R&D tax refund
881,925
970,733
Trade and other receivables - other
43,021
177,938
Total financial assets
5,960,823
5,281,925
Financial liabilities
Trade and other payables
675,761
760,763
Lease liabilities
727,209
921,873
Total financial liabilities
1,402,970
1,682,636
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.
41
40
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 23. Financial instruments (continued)
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
2025
2024
2025
2024
$
$
$
$
US dollars
133
131
-
-
Euros
279
249
-
-
412
380
-
-
The Company had net assets denominated in foreign currencies of $412 as at 30 June 2025 (2024: $380).
The actual foreign exchange loss for the year ended 30 June 2025 was $1,950 (2024: loss of $1,610).
Interest rate risk
At 30 June 2025 investment in Cash, Fixed Interest and Floating Interest rate deposits amounted to $1,799,915. A +/-1%
change in interest rates during the year ended 30 June 2025 will result in a +/- change in net interest income of $17,999.
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 30 June 2024 will result in a +/- change in net interest income of $17,074.
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.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 23. Financial instruments (continued)
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
2025
$
$
$
$
$
Financial liabilities due for settlement
Trade and other payables
(415,943)
-
-
-
(415,943)
Lease liabilities
(170,963)
(392,906)
(163,341)
-
(727,210)
Financial assets - cash flows realisable
Cast at bank
1,799,915
-
-
-
1,799,915
Term deposits
-
174,437
-
-
174,437
Trade and other receivables
2,424,946
-
-
-
2,424,946
Other loans
1,561,525
-
-
-
1,561,525
Total non-derivatives
5,199,480
(218,469)
(163,341)
-
4,817,670
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:
2025
2024
$
$
Short-term employee benefits
316,711
293,333
Post-employment benefits
23,000
21,267
Long-term benefits
5,000
7,885
Share-based payments
3,585
6,219
348,296
328,704
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:
2025
2024
$
$
Audit services - BDO Audit Pty Ltd
Audit or review of the financial statements
61,740
53,000
Note 26. Contingent liabilities
As at 30 June 2025 those charged with governance of the Company note that there are no known contingent liabilities (2024:
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).
43
42
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 27. Commitments (continued)
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 2025 the Joint Venture partners had contributed $3,123,051 in total (2024: $1,521,999).
Note 28. Related party transactions
Transactions with related parties
The following transactions occurred with related parties:
2025
2024
$
$
Payment for other expenses:
Other expenses paid on behalf of joint venture
-
62,394
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:
2025
2024
$
$
Current receivables:
Trade receivables from joint venture
11,799
11,326
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
2025
2024
$
$
Current receivables:
Loan to joint venture
1,561,525
761,526
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 /
2025
2024
Name
Country of incorporation
%
%
SiliconAurora Pty Ltd
Australia
50.00%
50.00%
Note 30. Events after the reporting period
On 5 June 2025 the Company received $50,000 from Lind Global Fund pursuant to the Share Purchase Agreement dated 19
August 2024. 3,846,154 shares were subsequently issued on 3 July 2025.
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 30. Events after the reporting period (continued)
On 8 July 2025 the company announced that SiPHyR technology has been awarded an Australia's Economic Accelerator
(AEA) Ignite grant of $492,526 for catalyst development by universities of Adelaide and Queensland. SiPHyR development is
further supported by $2,500,000 contribution from the Cooperative Research Centres Projects (CRC-P) program as
part of a $5,200,000 collaborative project with the University of Adelaide, Woodside Energy, RMIT and Vulcan Steel.
250,000 performance rights were cancelled on 21 August 2025 in accordance with the terms and conditions they were issued
under as they will not meet their vesting criteria.
On 21 August 2025, 35,650,988 options with an exercise price of $0.10 expired, unexercised.
On 22 August 2025 32,075 ordinary fully paid shares were issued pursuant to the exercise of options with an exercise price
of $0.10.
50,000 performance rights were cancelled on 11 September 2025 in accordance with the terms and conditions they were
issued under as they will not meet their vesting criteria.
No other matter or circumstance has arisen since 30 June 2025 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.
Note 31. Reconciliation of loss after income tax to net cash used in operating activities
2025
2024
$
$
Loss after income tax expense for the year
(3,340,190)
(2,505,500)
Adjustments for:
Depreciation and amortisation
312,371
35,242
Write off of property, plant and equipment
-
17,137
Share of loss - joint ventures
830,428
342,571
Share-based payments
6,954
(165,081)
Other
33,609
20,700
Change in operating assets and liabilities:
Increase in trade and other receivables
(77,447)
(162,503)
Decrease in other operating assets
70,724
17,480
Decrease/(increase) trade and other payables
(344,824)
275,221
Increase in employee benefits
33,680
29,889
Net cash used in operating activities
(2,474,695)
(2,094,844)
Note 32. Earnings per share
2025
2024
$
$
Loss after income tax
(3,340,190)
(2,505,500)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
272,605,209
233,614,324
Weighted average number of ordinary shares used in calculating diluted earnings per share
272,605,209
233,614,324
45
44
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 32. Earnings per share (continued)
Cents
Cents
Basic earnings per share
(1.23)
(1.07)
Diluted earnings per share
(1.23)
(1.07)
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
(2024: Nil).
During the year no shares were issued to key management personnel as part of the Company's Performance Rights Plan
(2024: Nil), During the year no shares were issued to key management personnel as part of compensation (2024: 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:
2025
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
23/05/2025
$0.0000
1,110,000
-
-
(1,110,000)
-
25/05/2023
23/05/2026
$0.0000
2,200,000
-
-
-
2,200,000
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
19/11/2024
31/12/2025
$0.0000
-
4,000,000
-
-
4,000,000
9,710,000
4,000,000
-
(4,310,000)
9,400,000
●
The fair value of the 1,110,000 performance rights that expired on 23 May 2025 was $128 ($0.00018 per performance
right).
●
The fair value of the 2,000,000 performance rights expiring on 23 May 2026 is $24 ($0.00003 per performance right).
●
The fair value of the 3,200,000 performance rights that expired on 31 December 2024 was $2,025 ($0.00079 per
performance right).
●
The fair value of the 3,200,000 performance rights expiring on 31 December 2025 is $4,780 ($0.00213 per
performance right).
●
The fair value of the 4,000,000 performance rights expiring on 31 December 2025 is $6,295 ($0.00225 per
performance right).
1414 Degrees Ltd
Notes to the financial statements
30 June 2025
Note 33. Share-based payments (continued)
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
23/05/2024
$0.0000
855,000
-
-
(855,000)
-
25/05/2023
23/05/2025
$0.0000
1,210,000
-
-
(100,000)
1,110,000
25/05/2023
23/05/2026
$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
There are no performance rights exercisable at the end of the financial year.
The weighted average exercise price during the financial year was $0 (2024: $0).
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 0.59
years (2024: 1.2 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.
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.
47
46
1414 Degrees Ltd
Consolidated entity disclosure statement
As at 30 June 2025
1414 Degrees Ltd does not have any controlled entities and is not required by the Accounting Standards to prepare
consolidated financial statements. Therefore, section 295(3A)(a) of the Corporations Act 2001 does not apply to the entity.
49
48
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 A.C.N. 050
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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 2025, 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 2025 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.
1414 Degrees Ltd
Directors' declaration
30 June 2025
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 Accounting Standards as
issued by the International Accounting Standards Board as described in note 2 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
2025 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
22 September 2025
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.
Joint venture investment, loan receivable from joint venture entity, and sale proceeds receivable
– judgement regarding carrying value
Key audit matter
How the matter was addressed in our audit
The carrying value of the joint venture investment
(note 10), loan receivable from joint venture entity
SiliconAurora Pty Ltd (note 8) and sale proceeds
receivable from Vast Solar Pty Ltd (note 8) is a key
audit matter due to:
•
The significance of the 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 3, and
•
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.
Our audit procedures included, but were not limited
to:
•
Checking the accuracy of the reconciliation of the
balances including examining the underlying
transactions,
•
Consideration of the assumptions made by
management in their assessment of the value of
the assets and whether they are reasonable given
the underlying contracts including the likelihood of
SiliconAurora Pty Ltd receiving a written offer to
connect to the transmission system from the
relevant Network Service Provider under the rules
of the National Electricity Market,
•
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 contributing funding and
management services to the joint venture project
through to completion, and
•
Comparing the internally produced information
about management’s judgements to independently
sourced information about the project being
undertaken by the joint venture entity.
R&D Tax claim receivable estimate
Key audit matters
How the matter was addressed in our audit
The carrying value of the R&D tax refund as set out in
note 8 is a key audit matter due to:
•
The significance of the total balance,
Our audit procedures included, but were not limited
to:
51
50
Key audit matters
How the matter was addressed in our audit
•
The level of judgment applied by management and
inherent subjectivity in their assessment of eligible
R&D activities and associated costs, as well as
interpretation of complex tax legislation in
accordance with the ATO, and
•
The level of audit procedures undertaken to
evaluate the reasonableness of judgement applied
by management, including the classification of
projects and costs as qualifying R&D.
•
Checking accuracy of the tax claim and sources of
expenditure being the audited ledger record,
•
Assessing whether R&D expenditure associated
with intangible assets and determining if the
recognition has been applied to the appropriate
financial statement area, and
•
Engaging an auditor’s export for R&D review of the
eligibility of amounts claimed.
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 2025, 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.
52
53
1414 Degrees Ltd
Shareholder information
30 June 2025
The shareholder information set out below was applicable as at 25 August 2025
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
66
0.01
1,001 to 5,000
511
0.54
5,001 to 10,000
753
1.95
10,001 to 100,000
1,453
17.17
100,001 and over
431
80.33
3,214
100.00
Holding less than a marketable parcel at $500 ($0.028 per unit)
1,750
4.47
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
FOCEM PTY LTD - TOWARNIE SUPER FUND A/C
15,937,916
5.54
CITICORP NOMINEES PTY LIMITED
12,859,474
4.47
AMMJOHN PTY LTD
6,466,039
2.25
MRS WENDY ELIZABETH MOSS - MOSS RETIREMENT A/C
5,249,188
1.82
MR BRENTON MARK MADDEN
4,581,606
1.59
MEWTWO GLOBAL INVESTMENTS
4,333,333
1.51
KATHERINE GRACE LITTLECHILD + PAUL JEFFREY LITTLECHILD
4,261,373
1.48
MR HAROLD TOMBLIN + MRS JUDITH JOHNSTON - HAROLD TOMBLIN S/F A/C
4,106,976
1.43
RANAT INVESTMENTS PTY LTD - MARANANGA A/C
3,500,000
1.22
MARHFEL PTY LTD - HUNTLEY A/C
3,250,000
1.13
JA & JK INVESTMENTS PTY LTD - JJ INVESTMENT A/C
3,100,130
1.08
BLAKFORD PTY LIMITED
3,000,000
1.04
MR IAN ROSS BURDON + MS CATHERINE LOUISE TAYLOR - IAN BURDON S/F A/C
3,000,000
1.04
R & C SWANN PTY LTD - R & C SWANN SUPER FUND A/C
3,000,000
1.04
MRS SUSAN JACQUELINE JOHNSON - LATENT HEAT HOLDINGS A/C
2,657,448
0.92
BNP PARIBAS NOMS PTY LTD
2,528,460
0.88
MR IAN ROSS BURDON + MS CATHERINE LOUISE TAYLOR
2,250,000
0.78
LHO LA PTY LTD - ACME FOUNDATION A/C
2,137,309
0.74
BENGER SUPERANNUATION PTY LIMITED - BENGER SUPER FUND A/C
2,000,000
0.69
MR MICHAEL NOEL MASON + MS KIM MAREE FOWLER + MR DEAGLAN MASON-
FOWLER - MASON FOWLER FAMILY S/F A/C
1,872,738
0.65
90,091,990
31.30
Unquoted equity securities
The following unquoted securities are on issue:
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.
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 17 to 22 of the directors’ report for the
year ended 30 June 2025.
In our opinion, the Remuneration Report of 1414 Degrees Limited, for the year ended 30 June 2025,
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
Josh Carver
Director
Adelaide, 22 September 2025
1414 Degrees Ltd
Shareholder information
30 June 2025
43
Number
Number
on issue
of holders
Performance rights - expiry date 23 May 2026
1,950,000
5
Performance rights - expiry date 31 December 2025
7,200,000
4
Substantial holders
Substantial holders in the Company are set out below:
Ordinary shares
% of total
shares
Number held
issued
Dr Kevin Moriarty
16,737,916
5.82
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.
There are no other classes of equity securities.
55
54
CLEAN HEAT
CLEAN POWER
56
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