ADVANCED BRAKING TECHNOLOGY LTD
AND CONTROLLED ENTITIES
ABN 66 099 107 623
CORPORATE DIRECTORY
Directors
Dagmar Parsons
David Slack
Adam Levine
Mark Lindh
Company Secretary
Kaitlin Smith
Registered Office
19 Creative Street
Wangara, WA 6065
Telephone: + 61 8 9302 1922
Telephone: 1800 317 543
Auditors
Moore Australia Audit (WA)
Level 15, Exchange Tower
2 The Esplanade
Perth, WA, 6000
Country of Incorporation
Australia
Legal form of entity
Listed public company
Chief Executive Officer
John Annand
Chief Financial Officer
Paige Exley
Bankers
National Australia Bank Ltd
12 / 100 St Georges Terrace
Perth, WA, 6000
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth, WA, 6000
Telephone: + 61 8 9323 2000
Facsimile: + 61 8 9323 2033
ASX Home Branch
Australian Securities Exchange (ASX)
Level 40, Central Park
152-158 St George’s Terrace
Perth, WA, 6000
ASX Code
ABV – Ordinary shares
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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TABLE OF CONTENTS
TABLE OF CONTENTS
CORPORATE DIRECTORY
TABLE OF CONTENTS
CHAIRMAN’S REVIEW
CHIEF EXECUTIVE OFFICER’S REVIEW
OPERATING AND FINANCIAL REVIEW
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
2
3
4
5
6
10
21
22
23
24
25
26
59
60
65
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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CHAIRMAN’S REVIEW
CHAIRMAN’S REVIEW
Dear Shareholder,
I am pleased to present to our shareholders and broader stakeholders our 2021 Annual Report.
It is satisfying to report further improvements in our financial performance, notwithstanding the ongoing challenges
due to COVID-19 and the impacts from lockdowns globally. Advanced Braking Technology (‘ABT’ or the ‘Company’)
remained resilient from the impacts of the pandemic with minimal disruption to manufacturing with our largely
Australian-based supply chain and increasing time to secure supply of components from overseas. We are aware that,
despite this backdrop, we are incredibly fortunate to have finished the year in a far stronger position than when it
began. This was achieved through an ongoing commitment to increasing sales through broadening our customer base
within the mining industry as well as other markets, prudent cost management and our strategic objective to build a
robust business.
The strategic decision made by the Board and Management, over two years ago, to run the business in a more cost-
effective manner has paid off in the last two financial years. The Company made a concerted effort to discharge all
significant debt in prior periods, including the extinguishment of our convertible notes. This has ensured that the
Company can focus on growing organically in a sustainable manner while also better structuring ABT to pursue
inorganic growth prospects through either acquisitions, strategic partnerships or joint ventures. Having delivered
significantly improved financial results over the last two years and with a strong product portfolio, the Company is
now positioned to actively deliver its strategic objectives, ensuring increased shareholder value as we investigate
opportunities that will allow ABT to achieve size, and to significantly upscale the business.
With the increased focus on electric, autonomous and connected vehicles, and the environmental considerations
regarding brake emissions, we continue to explore opportunities as a business to actively engage in these megatrends.
Management are focused on ensuring that we will play a role in these trends. Underpinning our future growth
prospects are the recent addition of a Director of Strategy and Commercial to drive business growth through inorganic
growth opportunities and the appointment, just prior to FY21, of a new Director of Sales and Marketing to drive organic
growth. These key appointments ensure ABT can actively engage both in the Australian and global marketplace. This
is demonstrated in the consistent improvement of sales in FY21. It also allowed ABT to participate in signature events
to raise awareness of ABT’s capabilities and product offering, as evidenced by our recent award-winning presentation
at the EuroBrake virtual conference in May 2021 and participation in various high profile Australian conferences
throughout the year.
We are focused on building on our 20+ years of experience as the original manufacturer of sealed wet brake
technology, remaining true to our Australian origins and continuing to protect people, equipment and the
environment. We will continue to deliver on innovation, safety and environmental responsibility as a reflection of
ABT’s ethos. We are looking forward to the future and are really pleased with the results achieved over the past two
years. I would like to thank the Board and the entire ABT team for their efforts and contribution. The leadership of
the business, headed by CEO, John Annand is acknowledged and the focus on delivering sustainable results has
ensured that we have a viable and stable platform for future growth.
Finally, I would like to thank our shareholders for their continued support of ABT and look forward to engaging with
you at our upcoming Annual General Meeting.
Dagmar Parsons
Chairman
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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CHIEF EXECUTIVE OFFICER’S REVIEW
CHIEF EXECUTIVE OFFICER’S REVIEW
Dear Shareholder,
FY21 has been a significant year for Advanced Braking Technology (‘ABT’) as we continued to execute our strategy and demonstrate
financial results that support our growth objectives.
Operationally, we have seen the result of this strategy through the continued support of our existing customer base, coupled with
progressing our strategy of driving further diversification across both our customer base and the industries that we service. This
includes investigating opportunities that exist within the heavy vehicle transport sector, where maintenance and safety issues have
identified a need for a sealed heavy duty brake solution. We have worked hard to deepen our relationships with the broader global
market by participating in both the EuroBrake virtual conference and Land Forces conference in Brisbane. These events created
opportunities for us to demonstrate our products and enhance education and awareness amongst our sector, and we continue to
explore opportunities to engage with new partners and customers to broaden our reach and product scope.
ABT has had a strong year with our core product portfolio, delivering $9.7m in operating revenue, driving a 15% uplift in total
revenue to $10.45m. Additionally, we delivered stable product sales margins of 46.3% and a positive EBITDA result at $0.91m for
the year compared to $0.65m for FY20. With a focus on both prudent cost management initiatives and driving improvements in
sales, alongside stable gross margins, we delivered a significantly improved net profit of $0.62m (FY20: $0.17m).
We remain prudently resourced and finished the year with a cash balance of $1.41m as at 30 June 2021. These cash reserves ensure
we can continue to fund our ongoing operations and drive innovation in our products.
As touched on in the letter from the Chairman, we have made a number of strategic hires that will be instrumental in driving our
strategy forward over the coming years. In particular, ABT appointed Andrew Booth, as Director of Strategy and Commercial.
Andrew will be critical in identifying and assessing opportunities for the business including acquisitions, strategic alliances or joint
ventures, in order to accelerate the upscaling of the business.
Ben Suda was appointed as Director of Sales and Marketing and has been instrumental in ensuring ABT is positioned to engage
with industry leaders, partners and sector participants to ensure we remain actively engaged in conversations on environmental
concerns, and current trends in autonomous and electric vehicles. Additionally, we appointed a new Engineering Manager in David
Newcombe who will continue to drive innovation in our product portfolio to deliver advancements to position us for the future to
ensure we can participate in the industry megatrends.
We revised our strategy and structure nearly two years ago and we continue to demonstrate the success of these initiatives in our
results at each reporting period. We are pleased, once more, to deliver growth in our key metrics, allowing us to pursue
opportunities that will deliver further growth in the business.
The delivery of our organic growth strategy is evidenced in our numbers. We are pleased with the progress made to date to increase
sales, control costs and maintain margins across our core product portfolio, as we also continue to assess inorganic growth
opportunities that can accelerate our growth and broaden our product offering.
We thank our employees, stakeholders and shareholders for their ongoing support over the past year.
John Annand
Chief Executive Officer
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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OPERATING AND FINANCIAL REVIEW
OPERATING AND FINANCIAL REVIEW
Business Overview
Advanced Braking Technology Ltd (‘ABT’ or the ‘Company’) is an Australian company listed on the Australian Securities Exchange
(ASX:ABV) that designs, manufactures and distributes its innovative braking solutions worldwide. From its head office in Perth,
Western Australia, ABT continues to develop its product portfolio for a diverse range of industries that have a strong requirement
for safety and environmental responsibility, including the mining, defence, civil construction and waste management industries.
ABT’s innovative braking solutions are well known for their unparalleled safety, improved productivity, zero emissions and
durability in the world’s harshest conditions. As the Company’s reputation has grown, demand for ABT's brakes has expanded
internationally with its braking solutions being used in all seven continents across the globe. Approximately 32% of operating sales
comes from overseas locations including Canada, Europe, Asia-Pacific, South Africa and Chile in which ABT has key distribution
partners.
ABT has three key suppliers who are all located in Australia and represent approximately 60% of ABT’s supply chain inputs. ABT’s
primarily Australian-based supply chain has contributed to the Company’s operational resilience to deliver ongoing sales growth
and record financial year results despite the global impact of coronavirus (COVID-19).
During FY21, ABT offered three key products:
• ABT Failsafe Brakes
• ABT Failsafe Emergency Driveline Brakes
•
Terra Dura Brakes
During FY21, the Company continued to deliver improvements in our financial and operational performance. These improvements
included:
•
strengthening its financial and working capital position through record year-on-year sales growth, maintaining margins
and focused cost control on expenses, resulting in a positive cash flow from operations for the year;
further diversifying the product portfolio, customer base and the industries to which we supply our innovative braking
solutions;
strengthening our Intellectual Property and patent protection; and
•
• maintaining a low debt structure, following $2.25million (m) of debt extinguished in FY20.
•
The improvements outlined above have set the Company up for a strong FY22 and will support ABT’s growth strategy.
In addition to product development and sales growth, the Company continues to work on the intangible aspects of the business
including corporate culture, systems and processes and stakeholder management, all of which improves business performance
and creates the foundation for the Company to execute its growth strategy.
Impact of COVID-19
In FY21, the impact on ABT’s operations due to COVID-19 was not material. ABT continues to review the COVID-19 operating
environment and has continued to amend its business operations to reflect the changing operating environment. The Company’s
primary customer base remains within the mining and civil construction industries, which to-date, have continued to operate
during this challenging period. The Company has benefited from the financial assistance measures provided by both the Federal
and Western Australian governments, to help protect both the business operations and its employees. During FY21, ABT received
approximately $0.105m in financial assistance.
Financial Summary
ABT achieved revenues of $10.45m for FY21 (FY20: $9.08m), which represents an approximately 15% increase on the prior year.
The net profit for the year is $0.62m (FY20: $0.17m), an improvement of 263% on the prior year. These results were achieved
through an increase in sales revenue, with controlled expense increases of 4%, when compared to FY20.
The Company’s net assets as at 30 June 2021 have increased approximately 18% or $0.73m on FY20 balances, primarily due to an
increased cash balance of $1.41m, which is up $0.9m from the 30 June 2020 balance of $0.52m. ABT experienced only minor
increases in total liabilities of $0.15m at 30 June 2021, which relates primarily to higher levels of inventory purchasing to support
the increasing operating sales revenues and the annual renewal of ABT’s insurance premium financing facility. The increase in
liabilities is offset by a similar increase in trade receivables of $0.15m to $1.43m at 30 June 2021 on the prior year (FY20: $1.28m).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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OPERATING AND FINANCIAL REVIEW
Revenue
Operating revenue in FY21 of $9.7m (FY20: $8.35m) was achieved primarily from sales of the Company’s core Failsafe
products and associated spares and consumables into the mining and civil construction industries.
The product margin for brake kits and consumable sales was slightly lower than the prior year at 46.3% (FY20: 48.5%) however the
gross margin for FY21 is 46.3% was consistent with the prior year (FY20: 46.3%).
The estimated research and development (R&D) tax incentive refund for the year of $512k (FY20: $520k) remains at a similar level
to the prior year, as the Company engaged in a focused product research and development program. During FY21, ABT received
approximately $0.105m in financial assistance related to COVID-19 and received funds of $0.096m in relation to a Defence Global
Competitiveness Grant of up to $0.24m. The balance of the grant funding of $0.144m is expected to be received in the first half of
FY22.
Expenses
Expenses for FY21 totalled $4.62m (FY20: $4.43m) representing a 4% or $0.19m increase on FY20 expenses. Cost reductions in
FY21 were primarily finance expenses, with a reduction of $0.21m to $0.083m on FY20 costs of $0.3m, following the
extinguishment of $2.25m of borrowings during FY20. ABT has maintained a low level of working capital finance facilities during
the year for operational purposes, including equipment finance and insurance premium funding of $0.231m.
Cost increases during FY21 were primarily employee expenses resulting in a $0.187m increase to $2.91m on FY20 expenses of
$2.72m, due to increasing operational requirements. Focused inventory management resulted in an increase in inventory
obsolescence expenses totalling $0.079m, representing an increase of $0.078m on FY20 expenses of $0.001m and global insurance
market increases resulted in an increase to insurance costs of $0.067m on FY20 expenses of $0.14m to FY21 insurance expense of
$0.21m.
Cash
Sales revenue growth of approximately $1.35m on the prior year and a Company-wide controlled cost focus, has resulted in a net
cash inflow from operating activities of $1.21m for the year and a cash balance of $1.41m, which has increased $0.9m from the 30
June 2020 balance of $0.52m.
Strategy implementation and product development
With the improved financial and operational performance achieved during FY21, the Company is now well placed to
implement its growth strategy, which is depicted below.
The growth strategy will be implemented through:
•
•
•
organic growth of our existing business through continual internal innovation;
pursuing high impact growth opportunities in markets that require innovative braking systems for transport
and mobility solutions of the future;
inorganic growth through implementing our Joint Ventures, Partnering and Acquisitions strategy; and
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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OPERATING AND FINANCIAL REVIEW
•
increasing control of our supply chain.
Diversification has been a key theme for the Company in FY21 and this will continue into FY22 through the further
diversification of:
•
•
•
•
•
our product offering;
the industries which we supply;
our customer base;
the geographic locations in which our products are found; and
our network of suppliers and distributors.
This objective was achieved in FY21 by being successful in expanding product sales within the mining, defence and
civil construction industries. Of particular note was the Company entering into its first long term supply agreement
for the supply of 1,100 hill-hold brakes to Thales Australia for installation on the Hawkei Protected Mobility Vehicle –
Light, a project which demonstrated our ability to design, prototype and test braking solutions to the highest defence
standards.
With a focus on exploiting our existing product range and capitalising on our historical R&D, the Company is well
placed to increase sales during FY22 to a broad range of customers in a diverse range of industries across a number of
geographic regions. Our future product offering will be primarily based on the existing Failsafe and Terra Dura brake
technology. The vehicle variants to which these products can be fitted will be prioritised based on market intelligence
and listening to the requirements of the customer, whilst at the same time ensuring an acceptable return on
investment is achieved.
The Company will continue to develop its product offering through ongoing R&D to ensure it remains relevant long
into the future as automation and electrification of vehicles gains momentum around the world, and the
environmental impacts from non-exhaust vehicle emissions, including brake dust particles, are better understood by
government and consumers.
Business Risk
The material business risks faced by the company that are likely to have an effect on the financial prospects of the company are
detailed below. In addition to general market and economic risks, such as share market risk, shareholder dilution, general economic
conditions, legislative change and unforeseen expenses, shareholders should be aware of risk specific to ABT, which may include
but are not limited to the following:
(a) Operational Risk - The current and future operations of the Company, including development, assembly, manufacturing
and sales may be effected by a range of factors including:
(1) Production may not be able to keep up with demand because of component shortages outside of the
Company’s control;
(2) Shortage of supply of customer vehicles to customers fleets;
(3) Sales targets may not be met because of a downturn in the industries which the Company supplies or through
sales and operational staff shortages due to the inability to recruit suitably qualified staff in a very tight labour
market to service our customers;
(4) (A) competitor(s) developing a product range that emulates the performance of the Company’s products;
(5) The mining industry may use vehicles in its operations for which the Company has not yet developed a suitable
brake; and
(6) The inherent risk of supplying safety critical products to motor vehicles where any defect or failure may give
rise to direct or consequential harm to plant or personnel.
(b) Performance Risk - The financial performance of the Company in any given year may have an adverse effect on the net
carrying value of the Company’s intellectual property as well as the Company’s capacity to achieve an acceptable financial
result and cash flow balance.
(c) Currency Risk - The Company trades with over ninety percent (90%) of its suppliers in Australian dollars. As a result,
currency risk on purchases is negligible. The Company sells product into foreign markets and the sales are rarely
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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OPERATING AND FINANCIAL REVIEW
denominated in a foreign currency. In the financial year 2021, sales receipt from overseas currencies accounted for less
than one percent (1%) of total operational sales and is therefore considered to have a negligible risk. The Company
therefore, has minimal exposure to foreign currency fluctuations against AUD between the date of sale or purchase and
the date of receipt or payment. Refer to Note 27 for more information.
(d) Interest rate risk - The Company invests working capital cash surpluses by placing funds on a short-term deposit and/or
cash maximiser account at the prevailing interest rates. There is a risk that income earned from interest bearing accounts,
will fall short of target or the Company’s target rate of return. Refer to Note 27 for more information.
(e) Credit Risk - The Company sells product on 30-day net credit terms. Although the Company insures customers
domestically and internationally, were it is able to, there is still an exposure of $5,000 for each claim, plus 10% of the
remaining balance on the customers account up to insured limits. The insurer has the right to refuse insurance on specific
or new debtors based on their credit assessment. Refer to Note 27 for more information.
(f) Warranty - The Company’s products are sold under a twelve (12) month warranty. If a product fails during the period
there is a risk that the product may have to be replaced under warranty, free of charge. In addition, in the event of product
failure and consequential loss, the Company may be liable to pay damages for product failure. The Company has product
liability insurance for a limit of up to $20m.
(g) Obsolescence - The Company assembles its products from components purchased and stocked at various locations.
Technology is constantly providing improvements in components and there is a risk that either component stock of the
Company’s products could be subject to obsolescence due to technical innovations in materials, applications or methods.
ABT has a focused inventory management program to identify components or applications that may be approaching
obsolescence.
(h) Global Climate Change – The Company is exposed to climate change impacts that effect the production of metal
components and oil. Impacts to these raw commodities would have a significant financial impact on the Company’s
operations and product offering. ABT seeks to reduce its environmental impacts in meaningful ways, such as recycling
and seeking alternative low environmental impact substitutes for its product inputs.
Growth and Outlook
For FY22 and beyond, revenues will be derived from a broader product offering. Furthermore, the Company has
diversified its customer base to include customers not only in our primary mining market, but also the defence, waste
management and civil construction industries.
ABT not only has the product portfolio to meet the existing needs of both current and future customers, but we believe
we have the intellectual property that will ensure we can participate in future braking technology that will not only
assist the environment but will help create a sustainable future for vehicle transportation.
The growth plan will deliver a greater product offering to a broader customer base across diverse industries which in
turn will lead to increasing revenues, profits and ultimately shareholder value. With the strong foundations we now
have in place, ABT is now well placed to reward shareholders for their continued support.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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DIRECTORS’ REPORT
DIRECTORS’ REPORT
The Directors of Advanced Braking Technology Ltd (‘Company’ or ‘ABT’) and its controlled entity Advanced Braking Pty Ltd (the ‘Group’
or the ‘Consolidated Group’ or the ‘Consolidated Entity’), present the annual financial report for the financial year ended 30 June 2021.
For the purposes of the Corporations Act 2001, the Directors provide the report as follows:
Directors
The following persons were Directors of the Company during or since the end of the financial year up to the date of this report:
Name
Dagmar Parsons
David Slack
Adam Levine
Mark Lindh
Position
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointment Date
22 April 2018
9 September 2009
9 April 2013
27 June 2017
Particulars of each director’s experience and qualifications are set out later in this report.
Principal activities
The principal activity of the Consolidated Group during the course of the year was the research, development, design,
commercialisation and manufacture of the ABT Failsafe Brakes, ABT Failsafe Emergency Driveline Brakes and Terra Dura Brakes and
associated braking systems.
Operating results
The results of the Consolidated Group for the year ended 30 June 2021 were a net profit from continuing activities, after income tax,
of $620,000 (2020: net profit $171,000). Revenues from trading activities were $9,701,000 (2020: $8,349,000). Revenues from other
activities were $747,000 (2020: $730,000).
Dividends
There have been no dividends paid or declared by the Company in the last two years.
Summary of Material Transactions
Issue of Securities
On 18 February 2021, the Company issued 5,958,109 unlisted options to an employee and key management personnel, Mr Ben Suda
as approved by shareholders at the Company’s Annual General Meeting (AGM) held on 18 November 2020 and pursuant to the
Company’s Share Option Plan approved by shareholders at the Company’s AGM held 27 November 2019. The terms of the options
are:
Number
1,489,527
1,489,527
2,979,055
Exercise Price
$0.04
$0.04
$0.04
Vesting condition
1 Year Vesting
2 Year Vesting
3 Year Vesting
Expiry Date
30 June 2023
30 June 2023
30 June 2024
Licence agreement for Thales Australia Hawkei PMV-L project
ABT has entered into a Technology Licence Agreement with VEEM Ltd (VEEM) for VEEM to manufacture and supply ABT’s specialised
park brake mechanism for Thales’ Hawkei Protected Mobility Vehicle – Light project.
In May 2019, ABT was selected to provide brake related design, prototype development and testing services to Thales, who have been
contracted by the Commonwealth of Australia to supply 1,100 Hawkei PMV-L vehicles as part of the LAND 121 project. Following the
successful design and testing of a prototype, ABT worked closely with Thales to determine how the Company was best placed to
participate in the manufacture and supply phase. It was agreed that ABT would participate through a Technology Licence Agreement
that protects its Intellectual Property and provides the best risk and return outcome.
ABT has licenced the manufacture and supply of 1,100 park brake mechanisms for consideration of approximately $630,000 in licence
and engineering support fees and product revenue for the supply of specified components for 1,100 brake mechanisms, by the earlier
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
10
DIRECTORS’ REPORT
of 29 April 2022 or the date that VEEM sells 1,100 brake mechanisms to Thales Australia Ltd. In addition, ABT will supply spare parts
and consumables for the life of product.
VEEM’s supply of the brake mechanisms to Thales Australia Ltd for Thales’ Hawkei Protected Mobility Vehicle – Light project
commenced in July 2020. During the year, ABT supplied components for approximately 55% of the 1,100 park brake mechanisms to
be manufactured and supplied by VEEM. In addition to component sales, ABT has also generated licence and engineering support fees
resulting from VEEM’s supply of completed brake mechanisms to Thales.
Defence Global Competitiveness Grant
ABT was awarded a Defence Global Competitiveness Grant (‘Grant’) to the value of $0.24m by the Centre for Defence Industry
Capability. The Grant was awarded to provide funding for the manufacturing of defence vehicle components for use within ABT
designed braking mechanisms. The Grant funds were used primarily to acquire machinery to allow ABT to manufacture specific
components that form part of the braking mechanism, as well as internal training and progressing the Company’s ISO accreditation.
Grant funding will be provided over two financial years with $0.096m provided in FY21, and the balance of $0.144m to be provided in
FY22.
Research and Development tax incentive
On 17 September 2020, ABT received $534,000 as a refundable tax offset for eligible research and development expenditure relating
to the development of its innovative braking solutions during FY20, following the lodgement of the Company’s FY20 income tax return.
Significant Changes in the State of Affairs
On 6 December 2020, Mr Andrew Booth was appointed as Director - Strategy & Commercial of the Group to actively identify inorganic
growth opportunities for the Company.
On 22 March 2021, the Company appointed Mr David Newcombe as Engineering Manager of the Group, following the resignation of
Mr Tony Van Litsenborgh as Engineering Manager on 16 April 2021.
During the prior reporting period, global health warnings were made by the World Health organisation (WHO) regarding the
Coronavirus (COVID-19) pandemic and the Australian Governor General declared that a human biosecurity emergency exists on 18
March 2020. There have been widespread and varying operational impacts to many industries that form ABT’s supply chain and
customers in Australia and overseas. During FY21, the impact on ABT’s operations was not material and ABT amended its business
operations to reflect the changing operating environment. The Company’s primary customer base remains within the mining and civil
construction industries, which to-date have continued to operate during the period of emergency. The Company has benefited from
the financial assistance measures provided by both the Federal and Western Australian governments, to help protect both the business
operations and its employees. During FY21, ABT received approximately $0.105m in financial assistance from government sources.
Other than as described elsewhere in this report there were no significant changes in the state of affairs of the Company during the
financial year.
Events subsequent to balance date
The impact of COVID-19 pandemic is ongoing and while it has been financially positive for the Group up to 30 June 2021, it is not
practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is
dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
On 19 July 2021, ABT announced to the ASX the lapse of 5,958,109 KMP Options, exercisable at $0.04 and expiring 30 June 2023,
following the resignation of Mr Tony Van Litsenborgh.
No other matter or circumstance has arisen since 30 June 2021 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.
Future developments
The Group will continue to commercialise the FailSafe sealed wet braking system and Terra Dura sealed dry braking system business
in Australia and Overseas markets.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
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DIRECTORS’ REPORT
Environmental regulation
The Consolidated Entity is not subject to any particular and significant environmental regulation under a law of the Commonwealth or
of a State or Territory.
Information Relating to Directors and Officers
Ms Dagmar Parsons Dipl.-Ing. (TH), MBA, GAICD Chairman and Non-Executive Director, Appointed 22 April 2018
Ms Parsons has more than 25 years of experience in the mining and resources industry across a range of functions, working in senior
executive roles with Worley Parsons, AECOM and Downer.
Ms Parsons has worked with major national and multinational entities to drive critical market success by providing strategic direction,
visionary leadership and innovative thinking. As a Mechanical Engineer, Ms Parsons has developed an in-depth knowledge of
engineering, manufacturing, and service industry environments in the Mining, Oil and Gas, Power and Infrastructure sectors.
Ms Parsons has considerable experience in transforming and growing complex businesses across diverse corporate, operational and
entrepreneurial roles in Australia, Asia and Europe. She has a strong appreciation of the role of good governance in setting,
implementing and over sighting strategic imperatives. Ms Parsons is the Managing Director of Rail Safety Systems Pty Ltd, a Non-
Executive Director of Transport Safety Systems Group Ltd and a Non-Executive Director of Greenvale Mining Limited. Ms Parsons holds
a Masters Degree in Mechanical Engineering and a Masters in Business Administration. She is also a graduate member of the Australian
Institute of Company Directors.
Mr David Slack Non-Executive Director, Appointed 9 September 2009
Mr Slack is the founding Managing Director of Australian equity fund manager Karara Capital Pty Ltd. Mr Slack is also a director of a
private company, Transport Safety Group Ltd, which has developed an innovative wireless solar rail crossing technology in the
commercialisation phase. Over the past 30 years, Mr Slack has made a significant contribution to the Australian funds management
industry. Notably, he was co-founder and joint managing director of Portfolio Partners Limited, which was sold to Norwich Union in
1998. Prior to that, Mr Slack was a founding executive director of County Nat West Investment Management, where he was head of
Australian Equities. He was a non-executive director of the Victorian Funds Management Corporation until 2007, holding positions of
deputy Chair and Chair of the Board Investment Committee. David has a Bachelor of Economics with Honours and is a fellow of FINSIA.
He is a member of the Australian Institute of Company Directors.
Mr Adam Levine LL.B (Hon), B.Ec (Acc). Non-Executive Director, Appointed 9 April 2013
Mr Levine, a lawyer by profession, has over 25 years national and global experience in structuring and executing private equity
investments and corporate finance transactions both as legal advisor and a principal investor.
The Founder and Executive Chair of law firm Rockwell Bates, Mr Levine has grown the storied Melbourne based legal firm from a
boutique M&A practice established during the height of the 2008 GFC, into a pre-eminent private wealth law firm focused on building
and protecting clients’ wealth.
Mr Levine is also the Executive Chair and Founder of the Rockwell Group which undertakes principal investments into regulated
financial and professional services businesses. Mr Levine’s extensive private equity experience and proactive investment practice have
been the major contributory factor to the Rockwell Group’s success with a portfolio IRR in excess of most leading national and global
private equity funds.
Mr Levine is the Chair of the Audit & Risk Committee (a position which he has held for several years). He brings a very analytical and
inquiring mind when engaging with, challenging and supporting the key Executives of the company.
His current outside directorships include Rockwell Group Holdings Pty Ltd, Rockwell Bates Pty Ltd, FMD Financial Pty Ltd, and a number
of other private companies. Mr Levine is also the founder (with his wife) and Chair of the Rockwell Foundation, a private ancillary fund,
which focuses on supporting opportunities for under privileged youth. He is also a Trustee Director of the Australian Jewish Museum
Foundation Limited.
Mr Mark Lindh Non-Executive Director, Appointed 27 June 2017
Mr Mark Lindh is an investment banker and corporate advisor, with in excess of 15 years of experience in Australian equity and debt
markets as well as advising on capital raisings, mergers and acquisitions and investor relations.
He is a founding executive director of Adelaide Equity Partners Limited, an Australian investment and advisory company and is non-
executive director of Bass Oil Limited and Aerometrex Ltd.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
12
DIRECTORS’ REPORT
Directorships of other listed companies
Directorships of other listed companies held by Directors in the 3 years immediately before the end of the financial year, or at date of
retirement if earlier, are as follows:
Name
Mr Mark Lindh
Company
Period of Directorship
Bass Oil Limited (ASX code: BAS)
Aerometrex Ltd (ASX code: AMX)
December 2014 to date
May 2019 to date
Ms Dagmar Parsons
Greenvale Mining Ltd (ASX code: GRV)
June 2021 to date
Chief Executive Officer
Mr John Annand B.Bus, CA, AGIA ACG, A Fin
Mr Annand brings significant experience to the role of CEO gained in executive finance and operations roles with ASX-listed and multi-
national resources and pharmaceutical companies. Prior to his current role at ABT, he held the role of Acting CEO and Chief Financial
Officer at Norwest Energy NL and more recently Chief Operations Officer at AusCann Group Holdings Limited. He also held a number
of management roles during his 16 years with Woodside Energy including Commercial Manager and Finance Manager.
Mr Annand’s prior experience has seen him responsible for strategy development and execution, marketing, research and
development, operations, supply chain management, contract management, capital raisings, investor relations and corporate
governance. He also brings to the CEO role customer, stakeholder, and joint venture relationship skills gained from working across
international jurisdictions and diverse industries.
In addition to his accounting and corporate governance qualifications, John also holds a Bachelor of Business and a Graduate Diploma
in Applied Finance and Investment.
Chief Financial Officer
Ms Paige Exley B.Com, CA, FGIA FCG (CS)
Ms Exley is a Chartered Accountant and Chartered Secretary, with over 20 years of experience in financial and management
accounting. She brings significant experience to the position, gained in finance and governance roles with ASX-listed companies in
Australia, with domestic and overseas operations, in industries such as resources, mining services, information technology, professional
services, not-for-profit and retail. Ms Exley’s prior experience has seen her responsible for business finance functions, asset
development, corporate compliance, continuous process improvement, treasury management, capital raisings, investor relations and
corporate governance.
Company Secretary
Ms Kaitlin Smith B.Com (Acc), CA, FGIA
Ms Smith was appointed joint Company Secretary 19 July 2018 and Company Secretary on 10 August 2018. Ms Smith provides
Company Secretarial and Accounting services to various public and proprietary companies. She holds a Bachelor of Commerce
(Accounting), is a Chartered Accountant and is a fellow member of the Governance Institute of Australia.
Directors’ interests
The relevant interest of each Director in the share capital of the Company, as notified by the Directors to the Australian Securities
Exchange in accordance with s205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Director
D Parsons
D Slack
A Levine
M Lindh
Ordinary shares (as at 30/09/2021)
840,000
69,169,252
777,778
3,033,334
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
13
DIRECTORS’ REPORT
Directors’ meetings
During the financial year there were 18 meetings of Directors, including committees of Directors but excluding circulating and written
resolutions.
The attendances of the Directors at these meetings were:
Directors’ Meetings
Audit Committee
Number
eligible to
attend
11
11
11
11
Number
attended
11
11
11
11
Number
eligible to
attend
5
5
5
5
Number
attended
5
4
5
5
Remuneration &
Nomination Committee
Number
Number
attended
eligible to
attend
2
2
2
2
2
2
2
2
D Parsons
D Slack
A Levine
M Lindh
REMUNERATION REPORT (AUDITED)
This remuneration report for the year ended 30 June 2021 outlines the remuneration arrangements of the Company and the Group
in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been audited as
required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined as those
persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group,
directly or indirectly, including any Director (whether executive or otherwise) of the Parent Company.
Individual key management personnel disclosures
Details of KMP of the Parent and Group are set out below.
Directors
Name
D Parsons
D Slack
A Levine
M Lindh
Executives
Name
J Annand
P Exley
T Van Litsenborgh
B Suda
A Booth
D Newcombe
Position
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointment Date
22 April 2018
9 September 2009
9 April 2013
27 June 2017
Position
Chief Executive Officer
Chief Financial Officer
Engineering Manager
Director - Sales & Marketing
Director - Strategy & Commercial
Engineering Manager
Appointment Date
20 August 2018
20 November 2018
10 December 2018
1 June 2020
6 December 2020
22 March 2021
Board Oversight of Remuneration
Remuneration Committee
Resignation Date
-
-
-
-
Resignation Date
-
-
16 April 2021
-
-
-
During the year, the Remuneration Committee met two times to make recommendations to the Board on remuneration policy and
to recommend salary reviews and short and long-term incentives for the Company’s executives.
Remuneration Policy
The remuneration policy of the Company is to pay executive directors and executives at market rates which are sourced from average
wage and salary publications are subject to periodic reviews by external consultants and which may include a mix of short and long-
term incentives linked to performance and aligned with market practice. In addition, Directors and employees may be issued shares
and share options to encourage loyalty and to provide an incentive through the sharing of wealth created through equity growth which
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
14
DIRECTORS’ REPORT
is linked to Company performance. The Remuneration Committee members believe the remuneration policy to be appropriate and
effective and tailored to increase congruence between shareholders and Directors and executives.
The following table shows the gross revenue, net profit / loss and ABV share price of the Company at the end of each respective
financial year.
Company Performance
Total Revenue ($‘000)
Net profit / (loss) ($‘000)
ABV Share price
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
10,448
620
3.5 cents
9,079
171
2.4 cents
7,430
(1,713)
1.9 cents
7,870
(1,656)
2.8 cents
7,686
(565)
5.5 cents
Non-Executive Director remuneration arrangements
Remuneration policy
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain directors of
the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The amount of aggregate remuneration sought to be approved by Shareholders and the fee structure is reviewed against fees paid to
non-executive directors of comparable companies. The Company’s Constitution and the ASX listing rules specify that the Non-
Executive Directors’ fee pool shall be determined from time to time by a general meeting. The latest determination was at the 2005
Annual General Meeting (AGM) held on 1 November 2005 when Shareholders approved an aggregate fee pool of $300,000 per year.
Structure
The remuneration of Non-Executive Directors consists of directors’ fees. There are no schemes for retirement benefits for Non-
Executive Directors other than statutory superannuation and Non-Executive Directors do not participate in any incentive programs.
Other than the Chairman, each Non-Executive Director received a base fee of $55,000 per annum plus the superannuation guarantee
contribution. The Chairman received a base fee of $85,000 plus the superannuation guarantee contribution.
Voting and comments from the Company’s 2020 Annual General Meeting
At the Company’s most recent Annual General Meeting held in November 2020, over 96% of eligible votes were cast for the adoption
of the 30 June 2020 remuneration report. As no comments were received from shareholders who had voted against the resolution at
that meeting, the Board does not propose any action with respect to its resolution at this time. The Board considers its remuneration
policy to be appropriate and properly aligned with the current size and performance of the Group.
Executive remuneration arrangements
Remuneration level and mix
The Group aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities
within the Group and aligned with market practice. ABT undertakes an annual remuneration review to determine the total
remuneration positioning against the market.
Remuneration Structure
In the financial year ended 30 June 2021, the executive remuneration framework consisted of the following components:
-
-
Fixed remuneration; and
Variable remuneration
The table below illustrates the structure of Advanced Braking Technology Ltd’s executive remuneration arrangements:
Remuneration
component
Fixed
remuneration
Short-term
incentive
component (STI)
Payment Vehicle
Purpose
Link to performance
Represented by total
employment cost (TEC).
Comprises base salary, plus
superannuation contributions.
Paid in cash or share based
incentives for KMPs.
A share-based scheme was put
in place for KMP executives.
Set with reference to role,
market and experience.
Based on annual appraisal and
reference to market rates.
Rewards executives for their
contribution to
achievement of Group and
business unit outcomes.
Linked to key performance indicators
including group performance such as
sales revenue, profit targets, and
performance against budget and
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
15
DIRECTORS’ REPORT
Long-term
incentive
component (LTI)
Paid in cash or share based
incentives for KMPs.
During the FY20 year, a new
share-based scheme was put
in place for KMP executives.
Equity holdings and transactions
Rewards executives for
their contribution to
performance of Group.
targets such as product
commercialisation.
All grants are at the discretion of the
Board of Directors.
Linked to Total Shareholder Return,
sales budgets and profit targets.
At judgement and discretion of the
Board of Directors.
The movement during the reporting period in the number of securities of Advanced Braking Technology Ltd held, directly,
indirectly or beneficially, by each Director or Executive, including their related party entities, are as follows:
i) Ordinary Shares
(a) Directors
D Parsons
D Slack
A Levine
M Lindh
Total
(b) Executives
J Annand
P Exley
T Van Litsenborgh
B Suda
A Booth
D Newcombe
Note
Held at 1 July
2020
Granted as
compensatio
n during year
Exercise of
options
during
year
500,000
67,645,664
777,778
3,033,334
71,956,776
-
36,000
-
-
-
-
1.
2.
3.
-
-
-
-
-
-
-
-
-
-
-
Other
movement
during year
340,000
1,523,588
-
-
1,863,588
220,000
164,000
-
-
-
-
384,000
Held at date of
resignation
n/a
n/a
n/a
n/a
n/a
n/a
-
n/a
n/a
n/a
-
Held at 30
June 2021
840,000
69,169,252
777,778
3,033,334
73,820,364
220,000
200,000
-
-
-
-
420,000
-
-
-
-
-
-
-
-
-
-
-
-
Total
1. T Van Litsenborgh ceased employment on 16 April 2021.
2. A Booth commenced employment on 6 December 2020.
3. D Newcombe commenced employment on 22 March 2021.
36,000
-
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
16
DIRECTORS’ REPORT
ii) Unlisted Options
(a) Directors
D Parsons
D Slack
A Levine
M Lindh
Total
(b) Executives
J Annand
P Exley
T Van Litsenborgh
B Suda
A Booth
D Newcombe
Total
Held at 1 July
2020
-
-
-
-
-
11,916,217
5,958,109
5,958,109
Granted during
the period as
compensation 1
-
-
-
-
-
-
-
-
-
-
-
5,958,109
-
-
23,832,435
5,958,109
Exercised
during the
period
Held at 30 June
2021 (or date of
resignation)
Vested and
exercisable at 30
June 2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,916,217
5,958,109
5,958,109
5,958,109
-
-
-
-
-
-
-
2,979,054
1,489,527
-
-
-
-
29,790,544
4,468,581
1. The unlisted options granted and issued during the period are unvested and subject to vesting conditions. Refer to Note 22
for further details.
Details of Remuneration of Directors and Executives
The details of the nature and amount of remuneration for each Director and Executive (Key Management Personnel) of the Company
are:
Directors
Year 2021
Directors
D Parsons
D Slack
A Levine
M Lindh
Total
Short term benefits
Salary & Fees
$000’s
85
55
65
55
260
Share based
remuneration
$000’s
-
-
-
-
-
Post-Employment
Superannuation
$000’s
8
5
-
5
18
Termination
Benefits
$000’s
-
-
-
-
-
Note
1.
2021
Total
$000’s
93
60
65
60
278
Performance based
Remuneration
%
-
-
-
-
-
1. Mr A Levine - $5,019 of Directors fee paid during the period related to a prepayment of services provided for the financial year ended 30
June 2022.
Year 2020
Directors
D Parsons
D Slack
A Levine
M Lindh
Total
Note
2020
Short term benefits
Salary & Fees
$000’s
85
27
58
55
225
Share based
remuneration
$000’s
-
-
-
-
-
Post-Employment
Superannuation
$000’s
8
3
2
5
18
Termination
Benefits
$000’s
-
-
-
-
-
Total
$000’s
93
30
60
60
243
Performance based
Remuneration
%
-
-
-
-
-
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
17
DIRECTORS’ REPORT
Executives
Year 2021
Executives
J Annand
P Exley
T Van Litsenborgh
B Suda
A Booth
D Newcombe
Total
Note
1
2
3
2021
Short-term benefits
Salary & fees
Bonus or
Commission
$000’s
308
174
157
210
120
42
1,011
$000’s
-
-
-
-
-
-
-
Share based
remuneration
$000’s
72
36
(26)
27
-
-
109
Post-
Employment
Superannuation
$000’s
22
17
14
20
11
4
88
Performance-
based
remuneration
%
18
16
(18)
11
-
-
9
Total
$000’s
402
227
145
257
131
46
1,208
1. T Van Litsenborgh resigned on 16 April 2021
2. A Booth commenced employment on 6 December 2020.
3. D Newcombe commenced employment on 22 March 2021.
Year 2020
Executives
J Annand
P Exley
T Van Litsenborgh
G Lewis
B Suda
Total
Note
1
2
3
2020
Short-term benefits
Salary & fees
Bonus or
Commission
$000’s
303
157
182
146
18
806
$000’s
-
-
-
-
-
-
Share based
remuneration
$000’s
53
26
26
-
-
105
Post-
Employment
Superannuation
$000’s
26
15
17
13
2
73
Performance-
based
remuneration
%
14
13
12
-
-
11
Total
$000’s
382
198
225
159
20
984
1. P Exley was appointed Chief Financial Officer on 31 October 2019.
2. G Lewis ceased employment on 28 February 2020.
3. B Suda commenced employment on 1 June 2020.
Cash Bonuses, Performance-related Bonuses and Share-based Payments
Details of STI’s and LTI’s are as follows:
Short term incentives
No STI’s were accrued, earned or provided during the financial year’s 2021 or 2020.
Long term incentive plan
On 27 November 2019, shareholders approved the adoption of the ABT Share Option Plan. The issue of unlisted options pursuant to
the ABT Share Option plan are as follows:
Executive
Issue Date
26 Feb 2020
J Annand
P Exley
26 Feb 2020
T Van Litsenborgh 1. 26 Feb 2020
18 Feb 2021
B Suda
Number of KMP
Options -
Vesting 1 year
from issue
2,979,054
1,489,527
1,489,527
1,489,527
7,447,635
Number of KMP
Options - Vesting
2 years from
issue
2,979,054
1,489,527
1,489,527
1,489,527
7,447,635
Number of KMP
Options - Vesting
3 years from
issue
5,958,109
2,979,055
2,979,055
2,979,055
14,895,274
Total KMP
Options on
Expiring 30
June 2023
11,916,217
5,958,109
5,958,109
2,979,054
26,811,489
Total KMP
Options on
Expiring 30
June 2024
-
-
-
2,979,055
2,979,055
Exercise
Price
$0.04
$0.04
$0.04
$0.04
Total
1. 5,958,109 unlisted options lapsed on 19/7/2021 following Mr Van Litsenborgh’s resignation.
The unlisted options vest over a 3-year period from issue date and are subject to vesting conditions. Refer to Note 22 for details of the
valuation methodology and assumptions for these share options.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
18
Executive Contracts
The employment terms and conditions of all Executive KMP are formalised in contracts of employment.
DIRECTORS’ REPORT
The terms of the employment contracts with all Executives require both parties to provide three months of notice to terminate the
contract.
Other Equity-related KMP Transactions
There have been no other transactions involving equity instruments apart from those described in the tables above relating to options
and shareholdings.
Loans to KMP
No loans have been provided to Directors or Executive during the period.
Transactions with key management personnel
Refer to Note 26 for details of transactions with Directors and key management personnel.
Options
As at the date of this report, the Group has options over ordinary shares. These issues have been issued on the following terms:
Options on issue
Unlisted Options
KMP Options
KMP Options
Total
Number
5,000,000
20,853,380
2,979,055
28,832,435
Exercise Price
$0.025
$0.04
$0.04
Expiry date
30 June 2022
30 June 2023
30 June 2024
Vested /Exercisable
5,000,000
4,468,581
-
9,468,581
Indemnification and Insurance of Directors, Officers and Auditor
During the course of the year the Company has paid $27,850 in premiums for Directors and Officers liability insurance for costs and
expenses incurred by them in defending legal proceedings arising out of their conduct while acting in the capacity of director or officer
of the Company, other than conduct involving wilful breach of duty in relation to the Company. The Company has not during or since
the end of the financial year, in respect of an auditor of the Consolidated Group, paid a premium to indemnify an auditor against a
liability incurred as an auditor, including costs and expenses in successfully defending legal proceedings.
Proceedings on behalf of the Company
No person has applied for leave of court to bring proceedings on behalf of the Company or 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 any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
The Auditor’s independence declaration is included after this Directors’ Report.
Non-Audit Services
The Board of Directors, in accordance with advice from the audit committee, is satisfied that the provision of non-audit services during
the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors
are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons:
all non-audit services are reviewed and approved to ensure they do not adversely affect the integrity and
–
objectivity of the auditor; and
–
the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
19
The following fees were paid or payable to the auditor for non-audit services provided during the year ended 30
June 2021:
DIRECTORS’ REPORT
AUDITOR’S REMUNERATION
Remuneration of the auditor of the Consolidated Group for:
Moore Australia Audit (WA) Pty Ltd
Audit or review of the financial statements
Moore Australia (WA) Pty Ltd
Taxation services
CONSOLIDATED GROUP
2020
$’000
2021
$’000
49
10
59
43
12
55
Rounding of Amounts
The Company is an entity to which ASIC Class Order 98/100 applies and accordingly, amounts in the financial statements and Directors’
report have been rounded to the nearest thousand dollars.
Signed in accordance with a resolution of the Board of Directors.
Dagmar Parsons
Non-Executive Chairman
30 September 2021
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
20
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
AUDITORS’ INDEPENDENCE DECLARATION
UNDER S307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF ADVANCED BRAKING TECHNOLOGY LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021 there have been no
contraventions of:
i.
ii.
SL Tan
Partner
The auditor independence requirements as set out in the Corporations Act 2001 in relation to the
audit; and
Any applicable code of professional conduct in relation to the audit.
Moore Australia Audit (WA)
Chartered Accountants
Signed at Perth on the 30thday of September 2021
Moore Australia Audit (WA) – ABN 16 874 357 907
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation
21
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE 13CONSOLIDATED GROUP
2020
$'000
8,349
(4,482)
2021
$'000
9,701
(5,211)
NOTES
3
Revenues from trading activities
Cost of sales
Gross Profit
Revenues from other activities
Expenses
Amortisation of intellectual property
Audit and accounting fees
Bad and doubtful debts
Consulting and contract labour expenses
Consumables and minor equipment
Depreciation expense
Employee expenses
Finance expenses
Information technology expenses
Insurance
Inventory obsolescence expense
Legal fees
Marketing and advertising expenses
Patent expense
Property expenses
Telephone and other communication
Travel and accommodation
Warranty expense
Other expenses
Total expenses
Profit / (loss) from continuing operations
Profit / (loss) before income tax
Income tax
Profit / (loss) after income tax
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss
Total comprehensive profit / (loss) for the period
Basic profit / (loss) per share (cents)
Diluted earnings per share (cents)
4,490
3,867
747
730
(64)
(71)
-
(305)
(177)
(180)
(2,905)
(83)
(84)
(207)
(79)
(17)
(68)
(49)
(52)
(33)
(70)
(24)
(149)
(64)
(54)
(10)
(311)
(113)
(206)
(2,718)
(295)
(49)
(140)
(1)
(33)
(26)
(40)
(47)
(32)
(114)
(50)
(123)
(4,617)
(4,426)
620
620
-
620
-
620
Cents
0.16
0.15
171
171
-
171
-
171
Cents
0.05
0.05
2
3
3
3
4
7
7
The consolidated statement of profit and loss and other comprehensive income should be read in conjunction with the notes
to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
22
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITI3CONSOLIDATED GROUP
NOTES
2021
$'000
2020
$'000
CURRENT ASSETS
Cash and Cash equivalents
Trade and other Receivables
Inventories
Other current assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Right of use assets
Intangibles
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other Payables
Interest bearing liabilities
Provisions
Total current liabilities
NON-CURRENT LIABILITIES
Interest-bearing liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
8
9
10
11
13
14
15
16
17
18
17
18
19
20
21
1,411
516
1,426
1,275
1,773
2,001
743
714
5,353
4,506
450
292
422
487
607
671
1,479
1,450
6,832
5,956
1,147
283
256
1,686
406
18
424
1,165
55
257
1,477
472
14
486
2,110
1,963
4,722
3,993
55,819
55,819
278
169
(51,375)
(51,995)
4,722
3,993
The consolidated statement of financial position should be read in conjunction with the notes to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
23
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED GROUP
2021
$'000
2020
$'000
NOTES
Net cash flows from operating activities
Receipts from customers
Payments to suppliers, consultants and employees
Interest paid
Interest received
Other – Grants and R&D tax incentive
Net cash provided by / (used in) operating activities
25
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment
Purchase of property, plant and equipment
Net cash provided by / (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Borrowing costs
Proceeds from issue of shares
Cost of issuing shares
Net cash provided by / (used in) financing activities
10,209
(9,727)
(9)
4
735
1,212
-
(274)
(274)
-
(18)
(25)
-
-
(43)
8,941
(9,274)
(227)
3
799
242
79
(26)
53
517
(944)
(20)
-
(48)
(495)
Net increase / (decrease) in cash and cash equivalents held
895
(200)
Cash and Cash equivalents at the beginning of the financial year
Cash and Cash equivalents at the end of the financial year
8
516
1,411
716
516
The consolidated statement of cash flow should be read in conjunction with the notes to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
24
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED GROUP
At 1 July 2020
Profit for the year
Share-based payments
Total comprehensive income / (loss) for the year
Issue of ordinary shares
Transaction costs relating to share issues
Total transactions with owners
Attributable to equity holders of the parent
Issued
Capital
Accumulated
Losses
Other
Reserves
Total
$'000
$'000
$'000
$'000
55,819
(51,995)
-
-
-
-
-
-
620
-
620
-
-
-
169
-
109
109
-
-
-
3,993
620
109
729
-
-
-
At 30 June 2021
55,819
(51,375)
278
4,722
CONSOLIDATED GROUP
At 1 July 2019
Profit for the year
Total comprehensive income / (loss) for the year
Issue of ordinary shares
Transaction costs relating to share issues
Total transactions with owners
-
-
-
1,636
(17)
1,619
171
-
171
-
-
-
-
169
169
-
-
-
171
169
340
1,636
(17)
1,619
At 30 June 2020
55,819
(51,995)
169
3,993
The consolidated statement of changes in equity should be read in conjunction with the notes to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE FINANCIAL STATEMENTS
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These general-purpose financial statements have been prepared in accordance with the Corporations Act 2001, Australian
Accounting Standards and Interpretations of the Australian Accounting Standards Board and International Financial Reporting
Standards as issued by the International Accounting Standards Board. The Group is a for-profit entity for financial reporting purposes
under Australian Accounting Standards. The financial report is presented in Australian dollars. Material accounting policies adopted
in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
These financial statements were authorised for issue by the Board of Directors on 30 September 2021.
New and amended accounting policies adopted by the Group
(a)
The Company has considered the implications of new or amended Accounting Standards which have become applicable
for the current financial report and the Company has not changed its accounting policies as there were no new standards
for adoption during the period.
Principles of Consolidation
(b)
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Advanced Braking Technology
Ltd) and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. A list of the subsidiaries is provided in Note 12.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date on
which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on
consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity
of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-controlling interests”. The
Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a
proportionate share of the subsidiary’s net assets on liquidation at either fair value or at the non-controlling interests’ proportionate
share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or
loss and each component of other comprehensive income. Non-controlling interests are shown separately within the equity section
of the statement of financial position and statement of comprehensive income.
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses
under common control. The business combination will be accounted for from the date that control is attained, whereby the fair
value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain
limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not
remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability
is remeasured each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can
be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed as incurred.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
Foreign Currency Transactions and Balances
(c)
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in
which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s
functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at
historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value
are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in equity
as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to
the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange difference is
recognised in profit or loss.
Group companies
The financial results and position of foreign operations, whose functional currency is different from the Group’s presentation
currency, are translated as follows:
-
-
-
assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
income and expenses are translated at average exchange rates for the period; and
Exchange differences arising on translation of foreign operations with functional currencies other than Australian dollars are
recognised in other comprehensive income and included in the foreign currency translation reserve in the statement of financial
position. These differences are recognised in profit or loss in the period in which the operation is disposed.
Cash and Cash Equivalents
(d)
Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid
investments, net of any bank overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the
statement of financial position.
Goods and Services Tax (GST)
(e)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from,
or payable to, the ATO is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to
suppliers.
Impairment of Assets
(f)
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources of information including dividends received from
subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable
amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another
Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a
revaluation decrease in accordance with that other Standard.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
(g)
Income Tax
The income tax expense / (revenue) for the year comprises current income tax expense / (income) and deferred tax expense /
(income).
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities / (assets) are
measured at the amounts expected to be paid to / (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well
unused tax losses.
Current and deferred income tax expense / (income) is charged or credited outside profit or loss when the tax relates to items that
are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where
there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that
future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax
assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not
probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or
simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset
where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by
the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant
amounts of deferred tax assets or liabilities are expected to be recovered or settled.
(h)
Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the
instrument. For financial assets, this is equivalent to the date that the Company commits itself to either the purchase or sale of the
asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except
where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to
profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other
circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant
financing component or if the practical expedient was applied as specified in AASB 15.63.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at:
•
•
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
-
-
-
a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations
applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if:
-
-
-
it is incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative
that is in effective a hedging relationship).
Any gains or losses arising on changes in fair value are recognised in profit or loss, to the extent that they are not part
of a designated hedging relationship recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other
comprehensive income and are not subsequently reclassified to profit or loss. Instead, they are transferred to retained
earnings upon derecognition of the financial liability. If taking the change in credit risk in other comprehensive income
enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit or loss rather than
other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
-
-
-
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
-
-
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
-
-
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified dates;
-
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
-
the business model for managing the financial assets comprises both contractual cash flows collection and the
selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
-
-
-
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as
“accounting mismatch”) that would otherwise arise from measuring assets or liabilities or recognising the gains
and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and information about the
groupings was documented appropriately, so that the performance of the financial liability that was part of a
Company of financial liabilities or financial assets can be managed and evaluated consistently on a fair value
basis;
it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise
required by the contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option
on initial classification and is irrevocable until the financial asset is derecognised.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration
recognised by an acquirer in a business combination to which AASB 3: Business Combinations applies, the Group has the
option to make an irrevocable election to measure any subsequent changes in fair value of the equity instruments in
other comprehensive income, while the dividend revenue received on underlying equity instruments investment will
still be recognised in profit or loss. The Group currently has no equity instrument financial assets.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance
with the Company's accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement
of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or
expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition
of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred
in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
-
-
-
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Company no longer controls the asset (ie the Group has no practical ability to make a unilateral decision to
sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount
and the sum of the consideration received and receivable is recognised in profit or loss.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative
gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other
comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not
reclassified to profit or loss but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
-
-
-
-
financial assets that are measured at amortised cost or fair value through other comprehensive income;
contract assets (eg amounts due from customers under construction contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
-
-
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial
instrument. A credit loss is the difference between all contractual cash flows that are due, and all cash flows expected
to be received, all discounted at the original effective interest rate of the financial instrument.
The Group uses the following approach to impairment, as applicable under AASB 9: Financial Instruments:
-
the simplified approach
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires
the recognition of lifetime expected credit loss at all times. This approach is applicable to:
-
trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from
Contracts with Customers and which do not contain a significant financing component
In measuring the expected credit loss, a provision matrix for trade receivables is used taking into consideration various
data to get to an expected credit loss (ie diversity of customer base, appropriate groupings of historical loss experience,
etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the
statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
Provisions
(i)
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable
that an outflow of economic benefits will result, and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
Earnings per share
(j)
Basic earnings per share (“EPS”) is calculated by dividing the net profit or loss attributable to members of the parent entity for the
reporting period, after excluding any costs of servicing equity (other than ordinary shares and converting preference shares classified
as ordinary shares for EPS calculation purposes), by the weighted average number of ordinary shares of the Company, adjusted for
any bonus issue.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs associated with dilutive
potential ordinary shares and the effect on revenues and expenses of conversion to ordinary shares associated with dilutive potential
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
ordinary shares, by the weighted average number of ordinary shares and dilutive potential ordinary shares adjusted for any bonus
issue.
Inventories
(k)
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials,
direct labour and an appropriate portion of variable and fixed overheads. Such costs are assigned to inventory on hand by the
method most appropriate to each particular class of inventory, with the majority being valued on a weighted average basis. Net
realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing,
selling and distribution.
Revenue and Other Income
(l)
The Group has adopted AASB 15 Revenue from Contracts with Customers from 1 July 2018.
Under AASB 15, revenues are generated by the Group through the design, development, manufacture and distribution of improved
vehicle braking systems based on the Group’s patented technology to customers worldwide.
For sales of products, revenue is recognised in a point in time when control of the products has transferred to the customer, which
is usually when the products are delivered to the customers. Volume discounts could be provided with the sale of these items
depending on the volume of aggregate sales made to eligible customers. Revenue from the rendering of services is recognised upon
the delivery of the service to the customer. A receivable will be recognised when the goods or services are delivered. The Group’s
right to consideration is deemed unconditional at this time as only the passage of time is required before payment of that
consideration is due. There is no financing component because sales are made within standard credit terms as agreed with the
customers. All sales revenues to external customers are recognised at a point in time.
Other Revenue
Interest revenue is recognised using the effective interest rate method.
Dividend revenue is recognised when the right to receive a dividend has been established.
(m) Government Grants
Government grants are recognised at fair value where there is reasonable assurance that the grant will be received, and all grant
conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to
the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income
over the expected useful life of the asset.
Where it is expected that a grant will be repaid if certain conditions are met, the liability to repay the grant is recognised as the
conditions are met and the liability crystallises.
R&D Tax incentives have been accounted for as government grants and are recognised on an accruals basis.
Intangibles Other than Goodwill
(n)
Technology Assets / Patents
Such assets are recognised at cost of acquisition. The cost of technology assets is amortised over the average life of the patents
granted for each technology asset on a straight-line basis. The average life of a patent varies between 10 and 20 years and technology
assets in the Intellectual Property purchased from Safe Effect Technologies International Ltd (SETI) was initially amortised over 15
years. The estimated useful life and amortisation method is reviewed at the end of each annual reporting period.
The amortisation rate was reassessed in prior years, based on the extended patents, which currently run through to December 2030.
Research and development
Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised
only when technical feasibility studies identify that the project is expected to deliver future economic benefits and these benefits can
be measured reliably.
Development costs have a finite life and are amortised on a systematic basis based on the future economic benefits over the useful
life of the project.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
An intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all
of the following are demonstrated:
•
•
•
•
•
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the ability to measure reliably the expenditure attributed to the intangible asset during its development.
Capitalised development costs will be amortised over their expected useful lives once commercial sales commence.
(o)
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-
use asset and a corresponding lease liability are recognised by the Group where the Group is a lessee. However, all
contracts that are classified as short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases
of low-value assets are recognised as an operating expenses on a straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at the commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily
determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
–
–
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
–
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
–
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
–
– payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease payments made at or before
the commencement date and any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to
exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
Property, Plant and Equipment
(p)
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated
depreciation and impairment losses.
Plant and equipment
Plant and equipment is measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated
impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the
carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in
profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable
amount is made when impairment indicators are present.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The carrying amount of plant and equipment is reviewed periodically by Directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from
the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in
determining recoverable amounts.
The cost of fixed assets constructed within the consolidated group includes the cost of materials and externally supplied services.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance are expensed to profit and loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold land, is depreciated
on a straight-line basis over the asset’s useful life to the consolidated group commencing from the time the asset is held ready for
use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful
lives of the improvements.
The following estimated useful lives are used in the calculation of depreciation:
Class of Fixed Asset
Plant and equipment
Motor vehicles
Office equipment and furniture
Software
Leasehold improvements
2-5 years
3-15 years
3-5 years
3-5 years
5-10 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in profit and loss. When revalued assets are sold, amounts included in the revaluation surplus
relating to that asset are transferred to retained earnings.
(q)
Employee Benefits
Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other
than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in
which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are
measured at the (undiscounted) amounts expected to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current
trade and other payables in the statement of financial position. The Group’s obligations for employees’ annual leave and long service
leave entitlements are recognised as provisions in the statement of financial position.
Other long-term employee benefits
Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12
months after the end of the annual reporting period in which the employees render the related service. Other long-term employee
benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments
incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that
approximate the terms of the obligations. Any re-measurements for changes in assumptions of obligations for other long-term
employee benefits are recognised in profit or loss in the periods in which the changes occur.
The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial
position, except where the Group does not have an unconditional right to defer settlement for at least 12 months after the end of
the reporting period, in which case the obligations are presented as current provisions.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Equity-settled compensation
The Group operates an employee share/option ownership plan. Share-based payments to employees and Directors are measured
at the fair value of the instruments issued and amortised over the vesting periods. Share-based payments to non-employees are
measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair
value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The
corresponding amount is recorded to the option reserve. The fair value of options is determined using the Black-Scholes pricing
model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that
the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity
instruments that eventually vest.
Comparative Figures
(r)
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
Where the Group has retrospectively applied an accounting policy, made a retrospective restatement of items in the financial
statements or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the
earliest comparative period will be disclosed.
Rounding of Amounts
(s)
The parent entity has applied the relief available to it under ASIC Class Order 98/100 and accordingly, amounts in the financial
statements and Directors’ report have been rounded off to the nearest $1,000.
Fair Value of Assets and Liabilities
(t)
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the
requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced)
transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value.
Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of
assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation
techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with
the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market
available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or
minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest
and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment arrangements)
may be valued, where there is no observable market price in relation to the transfer of such financial instrument, by reference to
observable market information where such instruments are held as assets. Where this information is not available, other valuation
techniques are adopted and, where significant, are detailed in the respective note to the financial statements.
Critical Accounting Judgements, Estimates and Judgments
(u)
The Directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Group.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the
company based on known information. This consideration extends to the nature of the products and services offered, customers,
supply chain, staffing and geographic regions in which the company operates. Other than as addressed in specific notes, there does
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to
events or conditions which may impact the Company unfavourably as at the reporting date or subsequently as a result of the
Coronavirus (COVID-19) pandemic.
Key Estimates – Impairment
The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to the impairment
of assets. Where an impairment trigger exists, the recoverable amount of the assets is determined. Fair value less cost to sell and
value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
Key Estimates - Share based payment transactions
The fair value of any options issued as remuneration is measured using the Black-Scholes model. Measurement inputs include share
price on measurement date, exercise price of the instrument, expected volatility (based on historic volatility adjusted for changes
expected due to publicly available information, if any), weighted average expected life of the instruments (based on historical
experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).
Key Estimates - Recoverability of Intangible Assets (Development Expenditure)
The recoverability of capitalised development expenditure recognised as a non-current asset is dependent upon the successful
commercialisation, or alternatively sale, of the respective intellectual property which comprise the assets.
New Standards and Interpretations not yet adopted
(v)
A number of new accounting standards, amendments to standards and interpretations are not yet effective for 30 June 2021
reporting period and have not been early adopted in preparing these financial statements.
The directors' assessment of these new accounting standards (to the extent relevant to the Group) and interpretations is that they
are not expected to have a material effect on the financial statements of the Group.
Going Concern Basis of Preparation
(w)
The financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities and
the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the year ended 30 June 2021, the
Group recorded a profit after tax of $0.620m (2020: $0.171m) and reported operating cash inflows of $1.212m (2020: inflows
$0.242m). At balance date and as detailed in Note 17, the Company has current borrowings of $0.283m (2020: $0.055m).
The ability of the Company to continue as a going concern is dependent on it being able successfully raise further funding or generate
adequate cashflows from its operations or a combination of both. The Directors believe that the going concern basis is appropriate,
primarily based on current working capital available combined with budgeted cashflows expected to be generated from trading
operations over the next 12 months.
The Directors believe that as at the date of signing the financial statements, there are reasonable grounds to believe that, having
regards to the matters set out above, the Group will be able to continue to operate as a going concern and to meet its obligations as
and when they fall due, for at least the next 12 months.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2
REVENUES FROM OTHER ACTIVITIES
Other activities
- interest received
- net foreign exchange (loss) / gain
- profit / (loss) from sale of fixed assets
- R&D Tax Incentive
- CDIC Defence Grant
- other Government Grants related to the coronavirus (COVID-19)
- Other income
Total revenue from other activities
3
PROFIT / (LOSS) BEFORE INCOME TAX
Profit / (Loss) before income tax has been determined after
deducting the following expenses:
Cost of sales
Finance expenses
Depreciation of non-current assets
- plant and equipment
- motor vehicle
- office equipment and furniture
- leasehold improvements
- software
-right of use assets
Total depreciation
Bad and doubtful debts
- trade debtors
Total bad and doubtful debts
Inventory obsolescence expense
CONSOLIDATED GROUP
2020
$’000
2021
$’000
4
(1)
(1)
526
96
105
18
747
3
(7)
14
609
-
110
1
730
5,211
4,482
83
72
15
18
9
1
65
180
-
-
79
295
90
17
18
9
6
66
206
10
10
1
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
4.
INCOME TAX EXPENSE
Note
a.
b.
c.
d.
The components of tax expense comprise:
Current tax
Deferred tax
Income tax
The prima facie tax benefit on profit / (loss) from ordinary activities
before income tax is reconciled to the income tax as follows:
Prima facie tax benefit on profit / (loss) from ordinary activities before
income tax at 26% (2020: 27.5%)
Add tax effect of:
- Non-allowable items
- Revenue losses and other deferred tax balances not recognised
- Recoupment of prior year losses not previously recognised
- R&D tax incentive
- Other non-assessable items
Income tax
Deferred tax recognised at 26% (2020:26%):
Deferred tax liabilities:
Prepayments
Intellectual Property
Deferred tax assets:
Carry forward revenue losses
Net deferred tax
Unrecognised deferred tax assets at 26% (2020:26%):
Carry forward revenue losses
Carry forward capital losses
Capital raising costs
Provisions and accruals
Leases
Intangible assets
Other
4e
4e
CONSOLIDATED GROUP
2020
$’000
2021
$’000
-
-
-
161
352
60
(416)
(136)
(21)
-
(6)
(74)
80
-
4,602
76
20
132
9
5
4
4,848
-
-
-
47
379
154
(391)
(168)
(21)
-
(6)
(42)
48
-
5,149
79
40
118
6
2
5
5,399
The tax benefits of the above deferred tax assets will only be obtained if:
(a)
the company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be
utilised;
the company continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the company in utilising the benefits.
(b)
(c)
Corporate Tax Rate:
e.
The corporate tax rate for eligible companies will reduce from 30% to 25% by 30 June 2022 providing certain turnover thresholds
and other criteria are met. Deferred tax assets and liabilities are required to be measured at the tax rate that is expected to apply in
the future income year when the asset is realised, or the liability is settled. The Directors have determined that the deferred tax
balances be measured at the tax rates stated.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
5.
Key Management Personnel Compensation
Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or payable to each
member of the Group’s key management personnel (KMP) for the year ended 30 June 2021.
The totals of remuneration paid to KMP’s of the company and the Group during the year are as follows:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share-based payments
Total KMP compensation
2021
$000
1,271
106
-
135
1,512
2020
$000
1,031
91
-
105
1,227
Short-term employee benefits
These amounts include fees and benefits paid to the Non-Executive Chairman and Non-Executive Directors as well as all
salary, paid leave benefits, fringe benefits and cash bonuses awarded to Executive Directors and other KMP.
Post-employment benefits
These amounts are the superannuation contributions made during the year.
6.
AUDITOR’S REMUNERATION
Remuneration of the auditor of the Consolidated Group for:
Audit or review of the financial statements
Taxation services
7.
EARNINGS PER SHARE
Basic Earnings per share
Net profit / (loss) ($’000’s)
CONSOLIDATED GROUP
2021
$’000
49
10
59
$’000
620
Number
(‘000’s)
2020
$’000
43
12
55
$’000
171
Number
(‘000’s)
i) Weighted average number of ordinary shares
during the year used in calculation of basic EPS (in ‘000’s)
379,149
349,097
ii) Weighted average number of diluted options
during the year used in calculation of basic EPS (in ‘000’s)
30,987
12,846
Basic profit / (loss) per share (cents)
Diluted profit / (loss) per share (cents)
Cents
0.16
0.15
Cents
0.05
0.05
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
8 CASH AND CASH EQUIVALENTS
Cash at bank
Short term bank
deposits
CONSOLIDATED GROUP
2021
$’000
1,369
42
1,411
2020
$’000
474
42
516
The effective interest rate on short-term bank deposits was 0.42% (2020: 2.01%) and can mature with 30 days of notice.
Reconciliation of cash
Cash at the end of the financial year as shown in the Cash Flows Statement is reconciled to items in the Balance Sheet as
follows:
Cash at bank
1,411
516
Advanced Braking Pty Ltd has an invoice finance facility agreement with NAB under which it may borrow up to $0.5m or
80% secured against debtors. The amount which may be borrowed at any time varies depending on the trade debtor
balance.
At 30 June 2021, the borrowing facility available was $500,000 (2020: $500,000) and the amount borrowed was nil (2020:
nil).
Borrowings are secured by a general security agreement over the assets of Advanced Braking Pty Ltd and are guaranteed
by Advanced Braking Technology Ltd.
9 TRADE AND OTHER RECEIVABLES
Note
CONSOLIDATED GROUP
Current
Trade receivables
Provision for impairment
Total current trade and other receivables
2021
$’000
1,446
(20)
1,426
2020
$’000
1,295
(20)
1,275
9a(i)
The following table shows the movement in lifetime expected credit loss that has been recognised for trade and other
receivables in accordance with the simplified approach set out in AASB 9: Financial Instruments.
Note
CONSOLIDATED GROUP
Net
measure-
ment of
loss
allowance
Opening
balance under
AASB 139
Adjust-
ment for
AASB 9
1 July 2019
Amounts
written off Closing balance
30 June 2020
$000
$000
$000
$000
$000
a.
Lifetime Expected Credit Loss: Credit Impaired
(i)
Current trade receivables
(10)
(10)
-
-
(10)
(10)
-
-
(20)
(20)
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9 TRADE AND OTHER RECEIVABLES
(Continued)
(i)
Current trade receivables
Note
CONSOLIDATED GROUP
Opening
balance under
AASB 139
Adjust-
ment for
AASB 9
1 July 2020
Net
measure-
ment of loss
allowance
Amounts
written
off
Closing
balance
30 June 2021
$000
(20)
(20)
$000
$000
$000
-
-
-
-
-
-
$000
(20)
(20)
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits
the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade
receivables have been grouped based on shared credit risk characteristics and the days past due. The loss allowance
provision as at 30 June 2021 is determined as follows:
-
-
the expected credit losses also incorporate forward-looking information.
The amounts written off are all due to customers declaring bankruptcy, or term receivables that have now
become unrecoverable.
2021
Expected loss rate
Gross carrying amount
Loss allowing provision
2020
Expected loss rate
Gross carrying amount
Loss allowing provision
10
INVENTORIES
Current
Finished goods
Components and WIP
Less: Provision for obsolescence
11
OTHER CURRENT ASSETS
Prepayments
Other receivables - R&D Tax incentive
Current
>30 days
past due
>60 days
past due
>90 days
past due
$000
$000
$000
$000
0%
1,053
-
0%
335
-
35%
58
(20)
0%
-
-
Current
>30 days
past due
>60 days
past due
>90 days
past due
$000
$000
$000
$000
0%
1,116
-
0%
149
-
68%
30
(20)
0%
-
-
Total
$000
1.38%
1,446
(20)
Total
$000
1.5%
1,295
(20)
CONSOLIDATED GROUP
2020
$’000
-
2,085
(84)
2,001
194
520
714
2021
$’000
-
1,886
(113)
1,773
231
512
743
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
12. CONTROLLED ENTITES
Advanced Braking Pty Ltd ACN 088 129 917 (Incorporated in WA)
Class and number of shares: ordinary
2021
Number
200,002
PARENT ENTITY
2020
Number
200,002
On 28 May 2002, the parent entity acquired 100% of Advanced Braking Pty Ltd for a purchase consideration of $200,002.
The principal activity of the Company is brake research, design, engineering and commercialisation, and sales of brakes and
brake parts.
CONSOLIDATED GROUP
13
PROPERTY, PLANT AND EQUIPMENT
Plant and equipment at cost
Less: accumulated depreciation
Motor vehicles at cost
Less: accumulated depreciation
Leasehold Improvements at cost
Less: accumulated depreciation
Office equipment and furniture at cost
Less: accumulated depreciation
Software at cost
Less: accumulated depreciation
Total at net written down value
2021
$’000
874
(520)
354
75
(66)
9
94
(35)
59
100
(72)
28
80
(80)
-
450
2020
$’000
620
(457)
163
75
(51)
24
91
(26)
65
151
(112)
39
120
(119)
1
292
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13
PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliation
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of
the current financial year.
CONSOLIDATED GROUP
Plant &
Equipment
Motor
Vehicles
Office
Equipment &
Furniture
Leasehold
Improvements
Software
Total
2021
$'000
$'000
$'000
Balance at the beginning of year
Additions
Disposals
Written-off
163
263
-
-
24
-
-
-
Depreciation expense
(72)
(15)
Carrying amount at the end of year
354
9
39
8
(1)
-
(18)
28
$'000
65
3
-
-
(9)
59
$'000
$'000
1
-
-
-
292
274
(1)
-
(1)
(115)
-
450
2020
$'000 $'000
$'000
$'000
$'000
$'000
Balance at the beginning of year
Additions
Disposals
Written-off
Depreciation expense
240
13
-
-
(90)
98
-
(57)
-
(17)
Carrying amount at the end of year
163
24
47
10
-
-
(18)
39
71
3
-
-
(9)
65
7
-
-
-
463
26
(57)
-
(6)
(140)
1
292
14. RIGHT-OF-USE ASSETS
The Group's lease portfolio currently includes buildings. This lease runs for a period of 5 years with an option
to renew for a further 5-year period after that period. The extension option which management were
reasonably certain to be exercised have been included in the calculation of the lease liability.
The Group has elected not to recognise right-of-use assets for low value items and any short-term leases.
(i) AASB 16 related amounts recognised in the balance sheet
Right-of-use assets
Leased building
Accumulated depreciation
Depreciation expense for the year ended
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
CONSOLIDATED GROUP
2020
$’000
2021
$’000
553
(131)
422
65
553
(66)
487
66
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. RIGHT-OF-USE ASSETS (continued)
(ii) AASB 16 related amounts recognised in the statement of profit or loss
Depreciation charge related to right-of-use assets
Interest expense on lease liabilities (under finance cost)
Short-term leases expense
Low-value asset leases expense
Variable lease payment expense
(iii) Total cash outflows for leases
- Financing cash outflow (principal repaid)
- Operating cash outflow (finance costs)
15.
INTANGIBLES
Wet Brake technology assigned from
Safe Effect Technologies International Ltd
Less - Accumulated amortisation
Carrying amount at the end of year
CONSOLIDATED GROUP
2020
$’000
2021
$’000
65
39
-
27
-
2021
$’000
85
39
66
43
-
14
-
2020
$’000
92
43
CONSOLIDATED GROUP
2020
$’000
2021
$’000
2,984
(2,377)
607
2,984
(2,313)
671
Total carrying amount at the end of year
607
671
Reconciliation
Movement in the carrying amounts for each class of intangible asset between the beginning and the end of the current
financial year:
CONSOLIDATED GROUP
2021
Balance at the beginning of year
Amortisation expense
Carrying amount at the end of year
Wet Brake Technology
$'000
671
(64)
607
Total
$'000
671
(64)
607
2020
Balance at the beginning of year
Amortisation expense
Carrying amount at the end of year
$'000
735
(64)
671
$'000
735
(64)
671
Impairment Disclosure
An impairment assessment of intangibles was performed in April 2017, triggered by the impending introduction of the new
polymer Terra Durra brake. This assessment confirmed the carrying amount of the SIBS (Failsafe) Wet Brake Intellectual
Property and extended the amortisation period to December 2030 to coincide with the expiry date of the existing patents.
No impairment assessment of intangibles was performed 2021 or 2020, as there were no impairment triggers.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
16
TRADE AND OTHER PAYABLES
Current (unsecured)
Trade creditors
Other payables
Accrued expenses
17
(a)
INTEREST BEARING LIABILITIES
Current
Insurance Premium funding (i)
Other (secured)
Lease liability – Right-of-use assets
Total
CONSOLIDATED GROUP
2020
$’000
771
283
111
2021
$’000
1,092
56
(1)
1,147
1,165
214
17
231
52
283
-
7
7
48
55
(i)
The insurance premium funding is an unsecured finance arrangement for the Company’s annual insurance premiums
with Attvest Finance Pty Ltd. The amount outstanding for the remaining period of the arrangement, being 10 months
is $214,000. The interest rate of the funding is approx. 4.43% pa.
(b) Non-current
Other
Lease Liability – Right of use asset (c)
Total
CONSOLIDATED GROUP
2020
$’000
16
2021
$’000
-
406
406
456
472
(c)
Lease Liability – Right of use asset
The measurement principles of AASB 16 are only applied from 1 July 2019. At the date of initial application, the right-of-use
assets equals to the lease liabilities and there was no adjustment to the retained earnings. The lease liabilities are presented
below:
Balance at 1 July
Payments
Interest charges during the period
Balance at 30 June 2020
CONSOLIDATED GROUP
2020
$’000
553
(92)
43
2021
$’000
504
(85)
39
458
504
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
18
PROVISIONS
Current
Warranties
Employee entitlements
Total
Non-Current
Employee Entitlements
Total
(b) Number of Employees
Number of employees at year-end
Australia
Total
19
ISSUED CAPITAL
(a) Ordinary Shares
CONSOLIDATED GROUP
2020
$’000
82
175
2021
$’000
96
160
256
257
18
14
14
14
Number
Number
15
15
18
18
The Parent Entity had issued 379,148,766 (2020: 379,148,766) fully paid ordinary shares as at the 30 June 2021.
Ordinary shares
Balance at beginning of the financial year 1 July
24 July 2019 – Issue of shares to a consultant
24 July 2019 – Issue of shares to a consultant
24 July 2019 – Issue of shares to a consultant
23 October 2019 – Convertible Notes converted to shares
29 October 2019 – Convertible Notes converted to shares
11 November 2019 – Convertible Notes converted to shares
14 November 2019 – Convertible Notes converted to shares
09 December 2019 – Convertible Notes converted to shares
Transaction costs relating to share issues
Balance at end of financial year
2021
Number of
shares
$’000
2020
Number of
shares
$’000
379,148,766
55,819
379,148,766
379,148,766
55,819
-
55,819
150,754
184,049
520,833
500,000
950,000
72,541,668
1,500,000
5,751,666
297,049,796 54,200
3
3
5
10
19
1,451
30
115
379,148,766 55,836
(17)
379,148,766 55,819
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(b)
Options
Unlisted Options
Balance at beginning of the financial year 1 July 2019
24 July 2019 – Issue of unlisted options to a consultant
26 February 2020 – Issue of KMP Options
18 February 2021 – Issue of KMP Options
18 February 2021 – Issue of KMP Options
Balance at end of financial year 30 June 2021
(i) Weighted Average exercise price
(c) Capital Management
Number of
options
Exercise
price
$
Expiry date
-
5,000,000
23,832,435
2,979,054
2,979,055
34,790,544
0.025
0.040
0.040
0.040
0.038
30 June 2022
30 June 2023
30 June 2023
30 June 2024
WAEP (i)
Management controls the capital of the Group in order to maintain a good debt to equity ratio, provide the Shareholders
with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
Advanced Braking Pty Ltd has a finance agreement with NAB under which it may borrow up to $500,000 secured against
debtors. The amount which may be drawn down at any time is dependent on the debtor balance - see note 9.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of debt levels,
distributions to Shareholders, share issues and convertible note issues.
Management aims to maintain a capital structure that ensures the lowest cost of capital available to the entity. The gearing
ratios for the years ended 30 June 2021 and 30 June 2020 are as below.
The gearing ratio is calculated as net debt divided by total capital. Net debt is defined as interest bearing liabilities less cash
and cash equivalents. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt.
Gearing ratio
CONSOLIDATED GROUP
2020
0.3%
2021
(18.1%)
As the Group’s gearing ratio has dropped significantly in 2021 due to the Group’s increased equity position and low levels
of interest bearing liabilities, the Group’s capital risk management focus has become the management of its current
working capital position to meet anticipated operating requirements.
The working capital positions of the Group at 30 June 2021 and 30 June 2020 were as follows:
Cash and cash equivalents
Trade and other receivables
Other current assets
Trade and other payables
Current interest bearing liabilities
Current provisions
Working Capital Position as at 30 June
CONSOLIDATED GROUP
2020
$’000
516
1,275
714
(1,165)
(55)
(257)
1,028
2021
$’000
1,411
1,426
743
(1,147)
(283)
(256)
1,894
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
20 RESERVES
Option reserve
Share based payment reserve
Total reserves at the end of the financial year
21 ACCUMULATED LOSSES
Accumulated losses at the beginning of the financial year
Net profit / (loss) attributable to members of the parent entity
Accumulated losses at the end of the financial year
22
SHARE-BASED PAYMENTS
(a) Share-based payment expense
Shares
Schedule of share-based payments
(i)
24 July 2019 – Issue of 150,754 shares to a consultant
24 July 2019 – Issue of 184,049 shares to a consultant
24 July 2019 – Issue of 520,833 shares to a consultant
Total allocated to Issued Capital
Options
(ii)
24 July 2019 – Issue of 5,000,000 unlisted options to a consultant
Total allocated to Issued Capital
26 February 2020 – Issue of 23,832,435 unlisted options to KMP
18 February 2021 – Issue of 5,958,109 unlisted options to KMP (1.)
16 April 2021 – Lapse of 5,958,109 unlisted options to KMP (2.)
Total allocated to Share-based Payment Reserve
CONSOLIDATED GROUP
2020
$’000
64
105
169
2021
$’000
64
214
278
CONSOLIDATED GROUP
2020
$’000
(52,166)
171
(51,995)
2021
$’000
(51,995)
620
(51,375)
CONSOLIDATED GROUP
2020
$’000
180
2021
$’000
109
-
-
-
-
-
-
137
27
(55)
109
3
3
5
11
64
64
105
-
-
105
(b) Options issued during the period
1. Pursuant to ABT’s Share Option Plan, key management personnel, Mr Ben Suda was granted and issued a total of
5,958,109 unlisted options which have an exercise price of $0.04 per share which are subject to vesting conditions
(KMP Options).
The KMP Options were issued on 18 February 2021 and are subject to the following vesting conditions:
• Ongoing employment; and
• Vesting in 3 tranches over a 3-year period, as below.
KMP Options Vesting 1
year
issue date
(Tranche 1) 25%
from
KMP Options Vesting 2
years
issue date
(Tranche 2) 25%
from
KMP Options Vesting 3
years
issue date
(Tranche 3) 50%
from
1,489,527
1,489,527
2,979,055
Total
5,958,109
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. During the period, 5,958,109 unlisted options issued to a KMP in 2020 were not able to meet the vesting
conditions, due to the resignation of KMP Mr Tony Van Litsenborgh on 16 April 2021. An amount of $55,000 was
reversed in relation to the total valuation of the KMP options amortised to his resignation date, comprised of
$26,000 and $29,000 related to the amortisation during the years ended 30 June 2020 and 30 June 2021
respectively.
(c) Unlisted options valuation
The fair value of the equity settled share options granted during the period are estimated at the date of grant using a
Black-Scholes model taking into account the terms and conditions upon which the options were granted. The following
table lists the inputs to the model used for the year ended 30 June 2021
Fair value at grant date
Share price at grant date
Exercise price
Expected volatility
Expected life
Expected dividends
Risk-free interest rate
Number of options issued
Valuation
KMP Options
Tranche 1
KMP Options
Tranche 2
KMP Options
Tranche 3
$0.019
$0.043
$0.04
111%
1 year
Nil
0.1%
1,489,527
$28,352
$0.0251
$0.043
$0.04
111%
2 years
Nil
0.09%
1,489,527
$37,389
$0.0291
$0.043
$0.04
111%
3 years
Nil
0.11%
2,979,055
$86,667
The total value of the KMP Options is $152,407 at the date they were granted. The KMP Options are subject to vesting
conditions:
•
•
ongoing service and
vest in three tranches at 1, 2 and 3 years from the date of issue.
The KMP Option valuations are amortised over the period of vesting for each tranche, as follows:
2021 KMP Options
Tranche 1
Tranche 2
Tranche 3
Total
FY2021
$10,253
$6,761
$10,447
$27,462
FY2022
$18,099
$18,695
$28,889
$65,682
FY2023
-
$11,934
$28,889
$40,822
FY2024
-
-
$18,441
$18,441
Total
$28,352
$37,389
$86,667
$152,407
KMP Options issued in during the prior year, FY20, have a remaining value of $92,510. The KMP Options are subject to vesting
conditions:
•
•
ongoing service and
vest in three tranches at 1, 2 and 3 years from the date of issue.
The KMP Option valuations are amortised over the remaining period of vesting, as follows:
2020 KMP Options
Tranche 1
Tranche 2
Tranche 3
Total
FY2021
$19,162
$33,988
$55,146
$108,297
FY2022
-
$14,247
$55,146
$69,394
FY2023
-
-
$23,116
$23,116
Total
$19,162
$48,236
$133,409
$200,807
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
23 CONTRACT AND LEASING COMMITMENTS
(a)
Finance lease commitments
Payable
- not later than 1 year
- later than 1 year but not later than 5 years
Less future finance charges
CONSOLIDATED GROUP
2020
$’000
-
-
-
-
-
2021
$’000
-
-
-
-
-
(b) Operating lease commitments
Non-cancellable operating lease contracted for but not capitalised in the financial statements
Payable
- not later than 1 year
- later than 1 year but not later than 5 years
-
-
-
-
-
-
The liabilities associated with leases now form part of the borrowings disclosure at Note 17.
24 SEGMENT REPORTING
The Consolidated Group’s principal activities are research and development, commercialisation and manufacture of
Failsafe wet sealed braking systems and the Terra Dura dry sealed braking systems, predominantly in Australia and via
distribution arrangements to other countries.
For management purposes, the Group is organised into one main operating segment. All of the Group’s activities are
interrelated and discrete financial information is reported to the Board (Chief Operating Decision Maker) as a single
segment. The financial results from this segment are equivalent to the financial statements of the group.
(a) Revenue by geographical region
Revenue attributable to external customers is disclosed below based on the location of the external customer.
Australia
Oversea / Export
Total revenue from trading activities
(b) Assets by geographical region
The location of segment assets by geographical location of the assets is disclosed below:
Australia
Total assets
(c) Major customers
CONSOLIDATED GROUP
2020
$’000
5,684
2,665
8,349
2021
$’000
6,683
3,018
9,701
6,832
6,832
5,956
5,956
The Group has a number of customers to whom it provides both products and services. The four most significant
customers comprise:
Significance
1st
2nd
3rd
4th
2021
% of total revenue
from trading activities
2020
% of total revenue from
trading activities
9.6%
8.3%
8.0%
7.9%
7.6%
7.1%
6.9%
5.1%
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
25
(a)
CASH FLOW INFORMATION
Reconciliation of Cash Flow from operations with profit / (loss) after income tax
Profit / (loss) from ordinary activities after income tax
(Profit) / loss on disposal of property, plant and equipment
Share-based payment expense
Non-cash flows in loss from ordinary activities
Depreciation and impairment
Amortisation of IP
Other
Changes in assets and liabilities
(Increase) / decrease in trade and other receivables
(Increase) / decrease in inventories
(Increase) / decrease in other current assets
Increase / (decrease) in trade and other payables
Increase / (decrease) in provisions
Cash inflows / (outflows) from operations
(b)
Non-cash financing and investing activities
2021
During the year to 30 June 2021,
CONSOLIDATED GROUP
2020
$’000
2021
$’000
620
-
109
180
64
221
(150)
229
(29)
198
(9)
1,212
171
(14)
180
206
64
(66)
20
(165)
(117)
(123)
66
222
a) On 18 November 2021, the Company received shareholder approval to issue 5,958,109 options to key
management personnel.
On 18 February 2021, pursuant to the Share Option Plan, key management personnel were granted and
issued a total of 5,958,109 unlisted options (KMP Options). 2,979,054 unlisted options have an exercise price
of $0.04 per share and an expiry date of 30 June 2023, subject to vesting conditions and a further 2,979,055
unlisted options exercisable at $0.04 and an expiry date of 30 June 2024, subject to vesting conditions.
2020
During the year to 30 June 2020,
b) On 24 July 2019, the Company issued:
a. 855,636 ordinary shares to a consultant, K S Capital Pty Limited, in lieu of $11,000 in fees for services under
an agreement to provide corporate advisory services to ABT dated 7 May 2019.
b. 5,000,000 unlisted options with an exercise of $0.025 and an expiry date of 30 June 2022 to a consultant, K
S Capital Pty Limited under an agreement to provide corporate advisory services dated 7 May 2019.
c) During November and December 2019, the Company converted convertible notes with a face value of
$1,624,867 into 81,243,334 ordinary shares at $0.02 per share.
d) On 27 November 2019, the Company received shareholder approval for the adoption of a new Share Option
Plan and key management personnel were granted and issued a total of 23,832,435 unlisted options which
have an exercise price of $0.04 per share and an expiry date of 30 June 2023, subject to vesting conditions
(KMP Options).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
26
(a)
RELATED PARTY TRANSACTIONS
Intercompany transactions
Transactions between related parties are on normal commercial terms and conditions except for intercompany loans
which are provided at no interest and are treated by the Parent Entity as an investment in the subsidiary. Related party
transactions are eliminated on consolidation.
(b)
Transactions with Directors and Key Management Personnel
(i)
(ii)
(iii)
During the reporting period the Company made payments of $3,497 to Rockwell Bates Pty Ltd T/A R. B. Flinders
for legal services on an arms-length basis at commercial rates. R. B. Flinders is a related party of Director, Adam
Levine of which he is a director and shareholder.
During the reporting period the Company made payments totalling $60,225 to Rockwell Group Holdings Pty Ltd
for director’s fees for Adam Levine for FY21 and $5,019 as a prepayment for director’s fees for FY22. Rockwell
Group Holdings Pty Ltd is a related party of Director, Adam Levine of which he is a director and shareholder.
During the reporting period the Company made payments totalling $40,875 to AE Administrative Services Pty Ltd
for company secretarial, accounting and administration services on an arms-length basis at commercial rates. AE
Administrative Services Pty Ltd is a related party of Director, Mark Lindh of which he is a director.
(iv)
During 2021, no securities were issued to directors as remuneration.
27
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Overview
The Company and its Subsidiary (“Group”) have exposure to the risks below from financial instruments:
i) Market risk;
ii)
Liquidity risk;
iii) Credit risk.
The Directors have responsibility for the development and control of the risk management framework. The Audit
Committee, established by the Directors, is responsible for development and monitoring of risk management policies.
The Group’s principal financial instruments comprise cash, interest bearing deposits, lease and an invoice finance facility
(see note 8). The purpose of these financial instruments is to finance the growth of the Group and to provide working
capital for the Group’s operations.
The Group has various other financial instruments including trade debtors and trade creditors which arise directly out of
its operations and through the negotiation of trading terms with customers and suppliers. During the period under
review, the Group has not traded in financial instruments. However, it is Group policy to hedge foreign currency against
fluctuations where appropriate, which may result in exchange losses.
The main risks arising from the Group’s financial instruments are market risk, including interest rate risk and foreign
currency risk, liquidity risk and credit risk. The Directors review and agree policy for managing each of these risks and
they are summarised as follows:
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(a)
Market Risk
Interest rate risk
The economic entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as
a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets
and financial liabilities, is as follows:
2021
Financial assets
Cash
Receivables - current
Other receivables (note 11)
R&D Tax incentive
Total financial assets
Financial liabilities
Payables
Interest Payable
Insurance Premium funding
Finance lease liabilities
Total financial liabilities
Average
Interest
Rate
%
Floating
Interest
Rate
$’000
Within 1
Year
1 to 5
Years
$’000
$’000
Non-
Interest
Bearing
$’000
0.34%
-
-
-
-
4.43%
7.91%
1,411
-
-
1,411
-
-
-
-
-
-
-
-
-
-
-
214
69
283
-
-
-
-
-
-
-
406
406
-
1,426
512
1,938
1,147
-
-
-
1,147
Total
$’000
1,411
1,426
512
3,349
1,147
-
214
475
1,836
Net Financial Assets / (Liabilities)
1,411
(283)
(406)
791
1,513
Interest rate risk
2020
Financial assets
Cash
Receivables - current
Other receivables (note 11)
R&D Tax incentive
Total financial assets
Financial liabilities
Payables
Interest Payable
Finance lease liabilities
Convertible notes
Total financial liabilities
Average
Interest
Rate
%
Floating
Interest
Rate
$’000
Within 1
Year
1 to 5
Years
$’000
$’000
Non-
Interest
Bearing
$’000
0.15%
-
-
-
-
7.89%
15.0%
516
-
-
516
-
-
-
-
-
-
-
-
-
-
-
55
-
55
-
-
-
-
-
-
472
-
472
-
1,275
520
1,795
1,165
-
-
-
1,165
Total
$’000
516
1,275
520
2,311
1,165
-
527
-
1,692
Net Financial Assets / (Liabilities)
516
(55)
(472)
630
619
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
As at 30 June 2021 Advanced Braking Pty Ltd was entitled to interest on deposits at the National Australia Bank at rates
at the weighted average of 0.34% per annum (2020: 0.15% per annum).
The sensitivity analysis below is based on the interest rate risk exposure in existence at the balance sheet date. The 0.25%
(2020: 0.50%) interest rate sensitivity is based on reasonable possible changes, over a financial year, using an observed
range of historical Australian Reserve Bank rate movement over the last two years.
Possible movements before tax:
+0.25% (2020: 0.5%) per annum
-0.25% (2020: -0.5%) per annum
Net financial (liabilities)/assets as above
Non-financial assets and liabilities
-Inventories
-Property, plant & equipment
-Right-of-use assets
-Intangible Assets
-Other current assets-prepayments (note 11)
-Provisions - Current
-Provisions - Non-current
Net (liabilities)/assets as per the Balance Sheet
CONSOLIDATED GROUP
2020
2021
$’000
$’000
4
(4)
3
(3)
CONSOLIDATED GROUP
2020
2021
$’000
1,513
1,773
450
422
607
231
(256)
(18)
4,722
$’000
619
2,001
292
487
671
194
(257)
(14)
3,993
The Directors’ objective is to earn the highest rate of interest on deposits with minimum risk. The Directors’ policy
therefore is to place deposits with recognised banks which offer the highest variable and/or fixed rates. Similarly, loans
and asset finance contracts are shopped to find the lowest rates of interest expense.
Foreign Currency Risk
The Company currently has minimal foreign exchange exposure with regard to both the receivables and payables and
currently has no offshore assets.
At 30 June 2021, the Company does not have any forward foreign exchange contracts in place. As at 30 June 2021 the
Group had the following exposure to foreign currency:
Financial Asset
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Payables
Net Exposure
CONSOLIDATED GROUP
2020
2021
$’000
$’000
-
-
-
-
-
-
(17)
(17)
(14)
(14)
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The following sensitivity analysis is based on the foreign currency risk exposure in existence at the balance sheet date.
The 11% (2020: 7%) sensitivity is based on reasonable possible changes, over a financial year, using an observed range of
actual historical rates in foreign exchange movements over the last two years.
In the year to 30 June 2021, if the Australian Dollar had moved, as illustrated in the table below, with all other variables
held constant, the results before tax relating to financial assets and would have been affected as shown below:
Possible movements before tax:
Pre-Tax Profit – higher/(lower)
+11% (2020: +7%) per annum
-11% (2020: -7%) per annum
CONSOLIDATED GROUP
2020
2021
$’000
$’000
(2)
2
(1)
1
(b)
Liquidity Risk
The Group’s objective is to fund new product development and commercialisation through Shareholder equity,
convertible notes, government grants, R&D tax incentives, lease finance and bank funding where available.
The Group manages liquidity risk by maintaining adequate cash reserves through share issues, convertible note issues,
debtor finance, secured bank lending and asset finance. Future funding requirements are determined through the
monitoring of regular cash flow forecasts, which reflect management’s expectations in respect of future turnover,
development of new markets and products, capital investment and the settlement of financial assets and liabilities.
The following are the contractual maturities of financial liabilities, including estimated interest payments:
CONSOLIDATED GROUP
2020
$’000
2021
$’000
0 – 6 months
6 – 12 months
1 – 5 years
29
40
286
355
27
28
472
527
The following table discloses maturity analysis of financial assets and liabilities based on management expectation:
CONSOLIDATED GROUP AS AT 30 JUNE 2021
< 6 Mths
$'000
6 - 12 Mths
$'000
1 - 5 Years
$'000
Financial Assets
Cash and cash equivalents
Trade and other receivables
Accrued Income
R&D tax incentive
Total financial assets
Financial Liabilities
Payables
Lease liabilities
Insurance Premium funding
Total financial liabilities
Net exposure
1,411
1,426
512
3,349
1,147
29
214
1,390
1,959
-
-
-
-
-
40
-
40
-
-
-
-
-
286
-
286
(40)
(286)
Total
$'000
1,411
1,426
512
3,349
1,147
355
214
1,716
1,633
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED GROUP AS AT 30 JUNE 2020
< 6 Mths
$'000
6 - 12 Mths
$'000
1 - 5 Years
$'000
Financial Assets
Cash and cash equivalents
Trade and other receivables
Accrued Income
R&D tax incentive
Total financial assets
Financial Liabilities
Payables
Hire purchase and finance lease liabilities
R&D rebate loan
Convertible Note accrued interest
Convertible notes
Total financial liabilities
Net exposure
(c)
Credit risk
516
1,275
520
2,311
1,165
27
-
-
-
1,192
1,119
Total
$'000
516
1,275
520
2,311
1,165
527
-
-
-
1,692
-
-
-
-
-
28
-
-
-
28
-
-
-
-
-
472
-
-
-
472
(28)
(472)
619
The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties
other than those receivables specifically provided for and mentioned within Note 9. The class of assets described as "trade
and other receivables" is considered to be the main source of credit risk related to the Group.
On a geographical basis, the Group has significant credit risk exposures in Australia given the substantial
operations in that region. The Group’s exposure to credit risk for receivables at the end of the reporting period
in that regions is as follows:
AUD
Australia
CONSOLIDATED GROUP
2021
$’000
1,426
1,426
2020
$’000
1,275
1,275
There has been no change in the estimation techniques used or significant assumptions made during the current reporting
period.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty
and there is no realistic prospect of recovery; for example, when the debtor has been placed under liquidation or has entered
into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. None of
the trade receivables that have been written off are subject to enforcement activities.
(d)
Net fair values
The financial assets and liabilities included in current asset and current liabilities in the Balance Sheet position are carried at
amounts that approximate net fair values or recoverable amount. Impairment assessments in financial year 2021 resulted
in no adjustment to the provision for obsolete inventory.
Intangible assets as at 30 June 2021 only comprises the Wet Brake technology assigned from Safe Effect Technologies
International Ltd on 27 June 2006. The amortisation period is to December 2030, being the current life of patents, which
underpin the carrying value.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
28
CONTINGENT LIABILITIES
There are no contingent liabilities.
29
EVENTS SUBSEQUENT TO BALANCE DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the company
up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The
situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries,
such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be
provided.
On 19 July 2021, ABT announced to the ASX the lapse of 5,958,109 KMP Options, exercisable at $0.04 and expiring 30 June
2023, following the resignation of KMP, Mr Tony Van Litsenborgh.
No other matter or circumstance has arisen since 30 June 2021 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.
30
PARENT INFORMATION
The following information has been extracted from the books and records of the parent company and has been
prepared in accordance with Accounting Standards.
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
EQUITY
Issued Capital
Other reserves
Accumulated losses
TOTAL EQUITY
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Total profit/(loss) after tax
Total Comprehensive Income/(Loss)
PARENT ENTITY
2020
$'000
2021
$'000
30
7,309
7,339
63
-
63
7
7,338
7,345
63
-
63
55,819
278
(48,821)
7,276
55,819
169
(48,706)
7,282
PARENT ENTITY
2020
$'000
(504)
(504)
2021
$'000
(115)
(115)
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Guarantees
At 30 June 2021, Advanced Braking Technology Ltd provides a guarantee and indemnity in relation to the obligations of
Advanced Braking Pty Ltd in favour of NAB in connection with an invoice finance facility which was established during
the 2013 financial year.
Advanced Braking Technology Ltd has provided guarantees to a number of suppliers of Advanced Braking Pty Ltd in
connection with the subsidiary negotiating finance under lease agreements, the R&D rebate loan and in relation to the
Perth leased premises. The Directors have also resolved that the Company will continue to provide financial support to
its subsidiaries for as long as it is required.
Contingent Liabilities
There are no contingent liabilities.
Contractual Commitments
As at 30 June 2021, Advanced Braking Technology Ltd had not entered into any contractual commitments for the
acquisition of property, plant and equipment (2020: Nil).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
58
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 22 to 58, are in accordance with the Corporations Act 2001:
a) comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements, constitutes
compliance with International Financial Reporting Standards (IFRS); and
b) give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that
date of the Consolidated Group.
2. The Chief Executive Officer and Chief Finance Officer have each given the declarations required by s295A of the Corporations
Act 2001.
3.
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed by authority for and on behalf of
the Directors by:
Dagmar Parsons
Chairman
Sydney, New South Wales
30 September 2021
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
59
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Advanced Braking Technology Limited (the Company) and its
subsidiary (the “Group”), which comprises the consolidated statement of financial position as at 30 June
2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a) the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year then ended; 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
We are independent of the Group in accordance with the auditor independence requirements of 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 (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.
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 year. 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.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation
60
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
Key Audit Matters (continued)
Valuation of Failsafe (WET) Brake Technology
Refer to Notes 1(n) & 15 Intangibles
The carrying value of Advanced Braking’s Failsafe
Brake Technology as at 30 June 2021 was
$607,000 and the related amortisation charge
for the year ended 30 June 2021 was $64,000.
The carrying value and amortisation rate are
reviewed annually by management with
reference to current and forecast trading
performance, relevant technological factors and
other operational indicators. This involves a
significant amount of management judgement.
This is a key area of audit focus because the
carrying value is material and the value is subject
to significant management
judgement and
estimates.
Our audit procedures included, amongst others:
• Assessed the reasonableness of management’s
assertions and estimates regarding estimated
useful life of the asset with reference to its patent
information currently registered with local and
foreign intellectual property government agencies.
• Held discussions with management that the
amortisation period (useful life) at the end of the
financial year remained appropriate and that there
were no conditions which would adversely affect
the valuation of the intangibles
• Assessment of any
impairment
the market capitalisation of
triggers by
the
comparing
Company against the carrying value of its total net
assets at balance date. The year-end market
capitalisation of $13.27 million far exceeded the net
asset value. There were no other impairment
triggers based on the Group’s improved financial
performance and position during the year and its
future budgeted performance.
• Tested the amortisation expense recorded and
ensured consistency with the accounting policy.
• Considered whether the relevant disclosures in the
statements were appropriate and
financial
adequate.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
61
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
Key Matters (continued)
Existence and Valuation of Inventories
Refer to Note 10 Inventories
The carrying value of inventory as at 30 June 2021
was $1.77 million. Inventory comprises finished
goods and components.
Inventories are held in significant quantities and are
valued at the lower of cost and net realisable value
(NRV).
A provision for obsolete and slow-moving inventory
is raised by management, the assessment of which
is subject to significant management judgement.
Obsolete and slow-moving inventory could result in
an overstatement of
the carrying value of
inventories as the recorded cost may be higher than
the net realisable value.
Given inventories are the Company’s single largest
asset, we have therefore
inventory
existence and valuation as a key audit matter.
identified
Our procedures to test the existence and valuation
of inventories included, amongst others:
• Testing the relevant internal control procedures
relating to the existence and valuation of
inventory, including attendance at the physical
near
count
inventory
and
undertaking our own test counts
period-end
• Testing a sample of
items and
comparing our count results with those of the
Group's representative and investigating any
variances
inventory
• Performing test of details on historical costs,
including testing the mathematical accuracy of
the final inventory listing.
• Held discussions with management
to
corroborate assumptions
understand and
applied in ensuring slow moving, old and certain
inventory lines have been appropriately valued
or adequately provided for or impaired
• Testing a sample of
to
subsequent sales to ensure that they were
recorded at the lower of cost and net realisable
value
inventory
items
• Reviewing gross margins
for any unusual
patterns compared to prior periods
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
62
Key Matters (continued)
Valuation of Receivables
Refer to Note 9 Trade & Other Receivables
Valuation of receivables is a key audit matter.
It is due to the size of the account balances and the
judgements required in determining their carrying
value that this is a key area of audit focus.
Trade debtors amounted to $1.43 million as at 30
June 2021.
The Group assesses periodically and at each year
end the expected credit loss associated with its
receivables. When there is expected credit loss
impairment, the amount and timing of future cash
flows are estimated based on historical, current and
forward-looking loss experience for assets with
similar credit risk characteristics.
Our procedures included, amongst others:
• Review of the level of export trade credit
insurance
debtors,
for
subsequent receipt collections from debtors and
ageing analysis post year end.
relevant
cover
• Review of expected credit loss workings and
assessments prepared by management
in
including an
relation to trade receivables,
analysis of
the credit risk characteristics
attributed to significant trade debtors as part of
our assessment of the adequacy of impairment
provisions.
• Discussion with management and the directors
as to the existence of any arrears/disputes with
debtors and the impact these factors have had
on the assessment of impairment provisions by
management.
• Review of disclosures made in the notes to the
financial statements
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, 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 accordingly 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
63
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group 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 Group or to cease operations,
or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2021.pdf.
This description forms part of our audit report.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report as included in the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Advanced Braking Technology Limited, for the year ended
30 June 2021 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.
SL TAN
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth on the 30th day of September 2021
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
64
SHAREHOLDER INFORMATION
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this
report is set out below.
1.
Statement of issued capital at 27 September 2021.
(a)
Distribution of fully paid ordinary shares
Size of Holding
1
1,001
5,001
10,001
100,001
Total
-
-
-
-
and
1,000
5,000
10,000
100,000
Over
Number of
Shareholders
Shares Held
% Units
230
298
165
519
268
1,480
135,024
816,580
1,284,456
20,448,990
356,463,716
379,148,766
0.04
0.22
0.34
5.39
94.01
100.00
(b)
(c)
There are 767 Shareholders with less than a marketable parcel.
There are no restrictions on voting rights attached to the ordinary shares on issue. On a show of hands, every
member present in person shall have one vote and upon a poll, every member present in person or by proxy
shall have one vote for every share held.
2.
Substantial Shareholders
The Company has the following substantial Shareholder at 27 September 2021:
Mr Keith Knowles
Mr David Slack
Mr Craig Chapman
28.94% 109,736,141 ordinary shares
18.24% 69,169,252 ordinary shares
5.26% 19,961,975 ordinary shares
3.
Shareholders
The twenty largest Shareholders hold 66.61% of the total issued ordinary shares in the Company as at 27 September
2021.
4.
Share Options on issue at 27 September 2021
The Company has the following unquoted equity securities on issue:
•
•
•
5,000,000 unlisted options, exercisable at $0.025 on or before 30 June 2022, which are held by 1 holder, K. S. Capital
Pty Ltd.
20,853,380 unlisted options, exercisable at $0.04 on or before 30 June 2023, which are held by 3 holders who are
Key Management Personnel and are subject to vesting conditions. Refer to Note 22 for more information.
2,979,055 unlisted options, exercisable at $0.04 on or before 30 June 2024, which are held by 1 holder who is a
member of Key Management Personnel and are subject to vesting conditions. Refer to Note 22 for more
information.
The options held by Key Management Personnel were issued pursuant to an employee incentive scheme.
5.
6.
On-market buy-back.
There is no current on-market buy-back.
Quotation
Ordinary shares in Advanced Braking Technology Ltd are listed on the Australian Securities Exchange (ASX:ABV).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
65
SHAREHOLDER INFORMATION
8.
Largest Fully Paid Ordinary Shareholders
The names of the twenty largest Shareholders at 27 September 2021, who hold 66.61% of the fully paid ordinary shares in the
Company, are:
Rank Name
MR KEITH KNOWLES
PARKS AUSTRALIA PTY LTD
DASI INVESTMENTS PTY LTD
MR CRAIG GRAEME CHAPMAN
WINDPAC PTY LTD
WINDPAC PTY LTD
MR PETER RODNEY BOWER
RP INVEST PTY LTD
HIMSTEDT & CO PTY LTD
MR EVAN PHILIP CLUCAS + MS LEANNE JANE WESTON
CHARMED5 PTY LTD
MR DAVID EARL SLACK
MR KEITH KNOWLES
SCINTILLA STRATEGIC INVESTMENTS LIMITED
MR KYM FRAHN + MRS WENDY LEANNE FRAHN
TOKEN NOMINEES PTY LTD
ONKAPARINGA HOLDINGS PTY LTD
MYALL RESOURCES PTY LTD
M/S TRACEY-ANN PALMER
MR COLIN JAMES SHARP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Number of
Shares
53,859,731
52,936,086
26,523,588
19,961,975
19,622,167
18,981,633
11,100,000
8,600,000
5,000,000
4,606,250
4,134,042
4,041,864
3,813,967
3,750,000
3,398,504
2,533,334
2,500,000
2,450,000
2,414,490
2,325,000
% of
Issued
Shares
14.21
13.96
7.00
5.26
5.18
5.01
2.93
2.27
1.32
1.21
1.09
1.07
1.01
0.99
0.90
0.67
0.66
0.65
0.64
0.61
252,552,631
66.61
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
66
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ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021
67
ABN 66 099 107 623
19 Creative Street
Wangara, Western Australia 6065
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2021