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
Andrew Booth
Chief Financial Officer
Angela Godbeer
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 2022
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TABLE OF CONTENTS
TABLE OF CONTENTS
CORPORATE DIRECTORY
TABLE OF CONTENTS
CHAIR’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 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
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ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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CHAIR’S REVIEW
CHAIR’S REVIEW
Dear Shareholder,
I am once again very proud to present to our shareholders and broader stakeholders our 2022 Annual Report.
The 2022 Financial Year has been a year of disciplined delivery against our Strategic Roadmap, set against a backdrop
of the ongoing challenges associated with a COVID-19 impacted supply chain. The successful execution of our strategy
will ensure we deliver on our Purpose – to design, produce and sell innovative braking solutions with the commitment
to promoting sustainable business practices that protect people and the environment.
In the 2022 Financial Year, we experienced a year of strategic growth in key markets, robust operational performance
and deepened strategic partner relationships. Advanced Braking Technology (ABT) continues to build momentum
globally, providing a world class innovative failsafe brake solution for customers in more than 40 countries within the
mining services, defence and heavy industries.
During the year, we announced a change to the composition of ABT’s Executive Team. We were pleased to appoint Mr
Andrew Booth as Chief Executive Officer in March 2022 following an interim period where Andrew stepped into the
Acting Chief Executive role in January 2022. Andrew brings a strong strategic, commercial, investment and business
development skillset and experience to ABT, from a diversified career in Corporate Development and Strategic
leadership experience at an international level. This change was a result of Mr John Annand stepping down as Chief
Executive Officer. We thank John for his contributions and guidance of the Company since his appointment in late
2018 and wish him all the best in his future endeavours.
As always, safety is core to our ethos at ABT. Over the last year, we have continued to evolve our overall approach and
organisation wide safety culture as we build the foundations for next level growth. This is about supporting and
empowering our people to increase ABT’s capacity in how we manage risk. Further, ABT continues to focus on the
relevance of Environment, Social and Governance (ESG) trending across Industries in Australia and Globally. ABT
FailSafe solutions are strongly positioned to address all aspects of ESG encompassed within good corporate
governance and the social impact by addressing the working environments of our customers in challenging industrial
workplace settings.
ABT’s growth outlook for FY23 is underpinned by our proven intellectual property in Sealed Integrated Brake System
(SIBS) Design, our Bluechip customer base and our growth prospects internationally. We have now delivered a track
record of sustained profitability, supported by a strong and strategic supplier base. Above all, we have a talented team
which combined with the above, makes for a scalable business platform that is poised for growth.
On behalf of the Board, I would like to thank our shareholders for their ongoing support and reiterate our thanks to
our people for their unwavering commitment to ABT. I look forward to engaging with you at our upcoming Annual
General Meeting.
Dagmar Parsons
Chair
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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CHIEF EXECUTIVE OFFICER’S REVIEW
CHIEF EXECUTIVE OFFICER’S REVIEW
Dear Shareholder,
FY22 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.
ABT performed strongly, with record sales, solid product margins and positive trend continuing in EBITDA. With a sound cash flow
and balance sheet, ABT is well positioned to continue to grow and deliver value accretion. ABT has deepened our strong base of
customers and channel partners, expanding via both customer acquisition and further developing our existing customer
relationships.
ABT produced a strong year with our core product portfolio, delivering $11.09m in operating revenue, driving a repeated double
digit annual growth delta with an 12% uplift in total revenue to $11.74m. Additionally, we delivered product sales margins of 45.1%
and a positive EBITDA result at $0.966m for the year compared to $0.914m for FY21. With a focus on both driving sales, alongside
disciplined cost management, we delivered a net profit of $0.644m vs $0.620m for FY21. We remained prudently resourced in
FY22 and finished the year with a cash balance of $1.739m as at 30 June 2022. This cash reserve combined with no debt offers a
balance sheet which ensures that we can continue to fund our ongoing operations and drive innovation in our products. ABT
continues to consistently reinvest earnings in Research and Development, as for prior year FY21, equated to 12.7% of our Product
Sales.
Our location in Western Australia places us firmly in the epicentre of an exciting, technology driven industrial revolution. Western
Australia is a recognised world leader in the field of automation for the mining sector. As a result, ABT is proactively engaged on
industry trends and progress pertaining to the megatrends of automated, electric and connected vehicles in industrial settings. This
includes proactive engagement with automotive manufacturers and suppliers as well as purposeful dialogue with ABT partners
and as importantly; our customers, regarding this important topic. The increasing ESG focus within the industrial sector, both within
Australia and internationally, has benefited ABT with strong growth in export sales. In particular, this includes Africa and North
American markets.
The global underground mining market is anticipated to grow ~18% CAGR 2022 – 2030 resulting from rapid industrialisation in
developing nations and increasing implementation of Internet of Things, Automation and Electrification1
Demand for Battery
metals provides a springboard for growth for Mining and Mining Services as the world is going to need increasing supply of the
essential commodities in order to decarbonise the global economy. ABT’s strategic roadmap is subsequently clear. We will
continue to maintain and further deepen our dominant mining market penetration combined with a pursuit of new industry
opportunity for our FailSafe products. Equally, innovation in F23 is focussed on vehicle diversification, including but not limited to
the expansion of the failsafe applications for heavy vehicle applications.
To illustrate this, we categorise our projects into ABT Growth, ABT Foundation and ABT Corporate. The 2023 Growth Projects
address our key strengths and opportunities for ABT as well as mitigate current and future competitive market dynamics.
Fundamentally, our focus is on our customers’ needs being key. ABT has commenced a number of ‘Foundation projects’, focussed
on strengthening our Operating Platform to optimise current needs and importantly support our future growth. Here, ABT’s valued
strategic partnerships with our Supply Chain is key. Our Corporate Projects focus on inorganic and transformational opportunities
with a medium to long term horizon view. Innovation and Industry 4.0 technology is key.
In May I was pleased to announce the appointment of Ms Angela Godbeer as Chief Financial Officer. Angela brings substantial
corporate, strategic and finance leadership experience to ABT with significant experience in an ASX listed manufacturing
environment.
I want to thank our ABT team and all those who supported us in delivering these FY22 outcomes. Our operational and financial
results provide the strong foundation upon which we are advancing our key projects which will drive accelerated growth and
revenue diversification as part of our organic and inorganic growth agenda.
Andrew Booth
Chief Executive Officer
1. . Source: "Underground Mining Market: Global Demand Analysis & Opportunity Outlook 2030" Jul 22, 2022 Research Nester
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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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 40% 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 strategic key supplier relationships, all located in Australia, which represent approximately 60% of ABT’s supply chain
inputs. This primarily Australian-based supply chain has continued to contribute to the Company’s operational resilience to deliver
ongoing sales growth and financial year results despite the enduring COVID-19 impacted supply chains.
During FY22, ABT offered three key products:
•
•
•
The Sealed Failsafe Braking System providing safety and cost-effective wheel end braking solution for light commercial
vehicles operating in the harshest industrial environments (including Underground).
The Sealed Failsafe Emergency Driveline Braking System provides industry standard in fail-to-safe emergency braking in
all environments for medium to heavy commercial vehicles.
The Sealed Terra Dura Brake provides a durable and cost-effective wheel end braking solution for light commercial
vehicles operating in the harshest open cut mining and on road environments.
During FY22, the Company continued to deliver improvements in our customer engagement and strategic roadmap. These
included:
•
•
delivering sustained double-digit revenue growth;
strengthening financial and working capital position through record year-on-year sales growth, resulting in a positive cash
flow from operations for the year;
growing our export sales and international partners and deepening our valuable Bluechip customer relationships;
creating a 2025 roadmap which includes both organic and inorganic strategy for ABT;
focusing on strengthening ABT’s foundation capabilities to support scalability;
Invest in R&D and strong evidence-based support for ABT Products and their industrial ESG attributes;
supply chain strategy which increases strategic partnerships and a vertical integration where appropriate;
investing in new product development which will deliver revenue diversification and scale opportunity.
•
•
•
•
•
•
The initiatives outlined above have set the Company up for a strong FY23 and beyond.
Financial Summary
The Company reported financial results for the year end 30 June 2022, with revenue of $11.74m for FY22 (FY21: $10.45m), which
represents an 12.4% increase on the prior year. The net profit for the year of $0.64m (FY21: $0.62m) was achieved through an
increase in sales revenue and controlled expense.
The Company reports a balance sheet with cash and receivables of $3.7m (FY21: $2.8m). Net assets as at 30 June 2022 have
increased 13% ($0.6m) on FY21 balances. Cash balance of $1.7m, is up from the $1.4m at 30 June 2021. ABT experienced an
increase in trade and other payables $0.7m, which relates primarily to higher levels of inventory purchasing to support the
increasing operating sales revenues. The increase in liabilities is offset by a similar increase in trade receivables of $0.56m to $1.99m
at 30 June 2022 (FY21: $1.43m).
Revenue
Operating revenue in FY22 of $11.1m (FY21: $9.7m) was achieved primarily from sales of the Company’s core Failsafe
products and associated spares and consumables into the mining and civil construction industries.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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OPERATING AND FINANCIAL REVIEW
The product margin for brake kits and consumable sales was slightly lower than the prior year at 45.1% (FY21: 46.3%) and the gross
margin for FY22 is 44.4% (FY21: 46.3%).
The estimated research and development (R&D) tax incentive refund for the year of $400k (FY21: $512k) is lower than prior years.
The Company engaged in a focused product research and development program with a core customer who funded a portion of
the research and development. The funded portion is not accessible for R&D tax offset and has been excluded from the estimated
refund for the year ended 30 June 2022.
During FY22, ABT received funds of $0.12 (FY21: $0.1m) in relation to a Defence Global Competitiveness Grant of up to $0.24m.
The balance of the grant funding of $0.04m is expected to be received in the first half of FY23.
Expenses
Expenses for FY22 totalled $4.93m (FY21: $4.62m) representing a 6.9% increase on FY21 expenses. The increases in expenses were
mainly driven by increased employee costs where key skills were required to deliver on the Company’s strategy and opportunities.
With the easing of travel restrictions, and most national and international services recommencing, employees were able to
commence onsite meetings with key customers and suppliers, building on the business relationships following long periods of
virtual meetings. Travel costs in FY22 increased significantly from FY21 and contributed to the overall increase in expenses.
Cash
The cash balance of $1.7m (FY21: $1.4m) has increased on prior year due to higher revenue, however increased costs of materials
has influenced both the product margins as well as the cash balances. The ongoing impact of COVID-19 on global supply chains has
resulted in the Company taking a proactive approach to minimise disruption to customers by purchasing in advance and holding
higher stock levels than previously required. The Company have a solid order book on which to place orders on, and as the Company
looks to strengthen operations and build business resilience, the importance of supply chain risk management is more apparent
than ever. This is a prudent and mandatory investment in securing the opportunity sales pipeline.
Strategy implementation and product development
With the sustained financial and operational performance achieved during FY22, ABT is focussing on methodical
execution of its growth strategy.
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
increasing control of our supply chain.
•
•
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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Diversification is a key strategic theme in FY23 through the following:
OPERATING AND FINANCIAL REVIEW
• 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, installation and service partners, and our international distributors.
With a focus on leveraging our core SIBS intellectual property and existing product range as well as capitalising on our
historical R&D, the Company is positioned to grow sales during FY23 to a broader range of customers and geographic
regions. The diversification of vehicle variants to which these products can be fitted is based on market intelligence
and understanding the fleet and asset management requirements of the customer, with a diligent focus on investment
return benchmarks.
ABT’s 2025 strategic horizon model illustrates the themes over a medium-term time band. FY23 focuses on deepening
our market share across a global customer base parallel to strengthening our operating foundation to support growth.
Investing in technology innovation is a strategic theme which points to Industry 4.0, the Internet of Things (IIOT) and
the automotive megatrends in play presently. A combination of these two horizons will provide the foundations for
scaling ABT’s business operations to support a step change in growth.
ABT’s 2025 Strategic Horizon
Business Risk
The material business risks faced by the company that are likely to influence 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 affected by a range of factors including:
(1) Delays in manufacturing products due to long lead time items or shortages of components.
(2) Customers experiencing shortage of supply vehicles to maintain fleets;
(3) A lack of skilled workers in a tight labour market resulting in reduced customer service levels;
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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OPERATING AND FINANCIAL REVIEW
(4) (A) competitor(s) developing a product range that rivals the performance of the Company’s products;
(5) Customers may begin to use vehicles in their 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 assets.
(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 in Australian dollars only 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 26 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 26 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 26 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
The Company’s agenda is underpinned by a strong focus on solutioning the safety needs of our customers operating in both
developed and developing markets globally. This includes a clear and aligned channel to market strategy supported by a fully
integrated sales & marketing framework targeting heavy industrial, mining, mining services and international distribution.
The Company also continues to focus on strategic growth opportunities and are currently assessing key initiatives to drive scale,
revenue diversification and enhanced innovation for the business.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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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 2022.
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 Chair
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 2022 were a net profit from continuing activities, after income tax,
of $644,000 (2021: net profit $620,000). Revenues from trading activities were $11,088,000 (2021: $9,701,000). Revenues from other
activities were $653,000 (2021: $747,000).
Dividends
There have been no dividends paid or declared by the Company.
Summary of Material Transactions
Issue of Securities
On 8 November 2021, the Company issued 5,958,109 unlisted options to an employee and key management personnel, Mr Andrew
Booth 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 2024
30 June 2025
De-recognition of Right of Use Asset and Liability
On the 7th of June 2022 the Group signed an extension and variation on the building lease. The lease initially ran for a period of 5 years
with an option to renew for a further 5-year period. The extension option, which was reasonably certain to be exercised, was included
in the modified retrospective approach when adopted under AASB 16: Leases as at 1 July 2019.
The Group’s initial 5-year lease expired on the 30th June 2022, and the group signed a 12 month extension, waiving the option to extend
further than the 12 month period. Under AASB 16: Leases, a change in scope of a lease, that was not part of the original terms and
conditions of the lease, i.e., shortening the contractual lease term, results in a lease modification
The practical expedients used by the group when adoption AASB 16: Leases for the first time included leases, that have a remaining
term of 12 months or less, are accounted for in the same way as a short-term lease and expensed to the statement of profit or loss. As
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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DIRECTORS’ REPORT
such, the Right of Use Asset and Lease Liability have been derecognised as at the end of June 2022, resulting in a gain on derecognition
of $73k which has been recognised in the statement of profit or loss under revenues from other activities.
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.
Initially, grant funding was to be provided over two financial years with $0.1m provided in FY21, and the balance of $0.14m to be
provided in FY22.
ABT requested an extension to the Grant due to delays in training and ISO accreditation following COVID-19 impacts. The extension
was granted in June 22. The grant payments have been adjusted accordingly as follows:
FY21
FY22
FY23
$0.1m (received)
$0.12m (received)
$0.02m
Research and Development tax incentive
ABT received $512,000 as a refundable tax offset for eligible research and development expenditure relating to the development of
its innovative braking solutions during FY21, following the lodgement of the Company’s FY21 income tax return.
Significant Changes in the State of Affairs
Mr John Annand stepped down as Chief Executive Officer by mutual agreement with the Board. Mr Andrew Booth, Director of Strategy
and Commercial assumed the role of Acting Chief Executive Officer and was formally appointed as Chief Executive Officer in March
2022.
On the 2nd May 2022 the Company appointed Ms Angela Godbeer as Chief Financial Officer of the Group, following the resignation of
Ms Paige Exley as Chief Financial Officer on the 12th May 2022
Mr Ben Suda resigned his position as Director of Sales and Marketing on the 20th May 2022.
Throughout the COVID-19 pandemic, ABT has continued to implement proactive and ongoing risk mitigation to ensure its people
remain safe and well, and operations continue with minimal disruptions.
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
Unlisted options for Mr J Annand, Ms P Exley and Mr B Suda lapsed following their respective resignations as noted in the
Remuneration Report. No other matter or circumstance has arisen since 30 June 2022 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
With a focus on leveraging our core SIBS intellectual property and existing product range as well as capitalising on our
historical R&D, the Company is positioned to grow sales during FY23 to a broader range of customers and geographic
regions. The diversification of vehicle variants to which these products can be fitted is based on market intelligence and
understanding the fleet and asset management requirements of the customer, with a diligent focus on investment return
benchmarks.
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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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Environmental regulation
DIRECTORS’ REPORT
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 Chair 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. 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 Systems 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 2022
12
Directorships of other listed companies
DIRECTORS’ REPORT
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 August 2022
Chief Executive Officer
Mr Andrew Booth B.Com, MBA
Mr Booth has Corporate Development and Strategic leadership experience across Banking and Finance, Advisory, Private Equity,
Agriculture, FMCG and Logistics in the Asia Pacific region.
Prior to joining ABT, Andrew has lead transformational growth of a number organisations including a logistics company in WA through
to successful trade sale exit on behalf of investors. Formerly based in Hong Kong; Andrew managed Strategy and Governance across
34 Countries for ANZ Banking Group and Asia Pacific development, supporting inbound investment as well as export across a diverse
range of industry sectors in Australia.
Andrew has a Master of Business Administration from Australian Graduate School of Management, is a Member of Australian Institute
of Company Directors and is an Asialink Leadership Alumni
Chief Financial Officer
Ms Angela Godbeer CPA, ACMA, CGMA
Ms Godbeer has over 20 years of experience in Strategic and Financial leadership roles across a number of industries, including
Engineering, Manufacturing, Media and Financial Services in the United Kingdom and Australia.
Angela’s extensive and diverse finance leadership experience includes developing and implementing financial strategies, ERP
implementation, project management, business improvement and change management.
Angela is a Certified Practising Accountant (CPA), a Chartered Management Accountant (ACMA) and a Chartered Global Management
Accountant (CGMA).
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 30/06/2022)
840,000
69,169,252
777,778
3,033,334
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
13
Directors’ meetings
DIRECTORS’ REPORT
During the financial year there were 21 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
10
10
10
10
Number
attended
10
10
8
10
Number
eligible to
attend
5
5
5
5
Number
attended
5
5
5
4
Remuneration &
Nomination Committee
Number
Number
attended
eligible to
attend
6
6
6
5
6
6
6
6
D Parsons
D Slack
A Levine
M Lindh
REMUNERATION REPORT (AUDITED)
This remuneration report for the year ended 30 June 2022 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
A Booth
D Newcombe
A Godbeer
Position
Non-Executive Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointment Date
22 April 2018
9 September 2009
9 April 2013
27 June 2017
Resignation Date
-
-
-
-
Position
Chief Executive Officer
Chief Financial Officer
Engineering Manager
Director - Sales & Marketing
Director - Strategy & Commercial
Chief Executive Officer
Engineering Manager
Chief Financial Officer
Appointment Date
20 August 2018
20 November 2018
10 December 2018
1 June 2020
6 December 2020
15 March 2022
22 March 2021
2 May 2022
Resignation Date
11 April 2022
12 May 2022
16 April 2021
20 May 2022
14 March 2022 (promoted to CEO)
-
-
-
Board Oversight of Remuneration
Remuneration Committee
During the year, the Remuneration Committee met six 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
14
Remuneration Policy
DIRECTORS’ REPORT
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
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 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
11,741
644
2.6 cents
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
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 Chair, each Non-Executive Director received a base fee of $55,000 per annum plus the superannuation guarantee
contribution. The Chair received a base fee of $85,000 plus the superannuation guarantee contribution.
Voting and comments from the Company’s 2021 Annual General Meeting
At the Company’s most recent Annual General Meeting held in November 2021, over 99.24% of eligible votes were cast for the
adoption of the 30 June 2021 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 2022, the executive remuneration framework consisted of the following components:
-
-
Fixed remuneration; and
Variable remuneration
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
15
The table below illustrates the structure of Advanced Braking Technology Ltd’s executive remuneration arrangements:
DIRECTORS’ REPORT
Payment Vehicle
Purpose
Link to performance
Remuneration
component
Fixed
remuneration
Short-term
incentive
component (STI)
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.
Rewards executives for their
contribution to
achievement of Group and
business unit outcomes.
Set with reference to role,
market and experience.
Based on annual appraisal and
reference to market rates.
Linked to key performance indicators
including group performance such as
sales revenue, profit targets, and
performance against budget and
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.
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.
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
A Godbeer
Total
Note
Held at 1 July
2021
Granted as
compensation
during year
Exercise
of options
during
year
840,000
69,169,252
777,778
3,033,334
73,820,364
220,000
200,000
-
-
-
-
-
420,000
1.
2.
3.
4.
5.
6.
7.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
movement
during year
-
-
-
-
-
-
(100,000)
-
-
-
-
-
-100,000
Held at date of
resignation
n/a
n/a
n/a
n/a
220,000
100,000
n/a
n/a
n/a
n/a
n/a
320,000
Held at 30
June 2022
840,000
69,169,252
777,778
3,033,334
73,820,364
-
100,000
-
-
-
-
-
100,000
J Annand ceased employment on 11 April 2022
1.
2. P Exley ceased employment on 12 May 2022
3. T Van Litsenborgh ceased employment on 16 April 2021.
4. B Suda ceased employment on 20 May 2022
5. A Booth commenced employment on 6 December 2020 and promoted to CEO 15 March 2022.
6. D Newcombe commenced employment on 22 March 2021.
7. A Godbeer commenced employment on 2 May 2022
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
16
DIRECTORS’ REPORT
Unlisted Options
(a) Directors
D Parsons
D Slack
A Levine
M Lindh
Total
(b) Executives
J Annand 2
P Exley 2
T Van Litsenborgh 2
B Suda 2
A Booth 1
D Newcombe
A Godbeer
Total
Held at 1 July
2021
-
-
-
-
-
11,916,217
5,958,109
5,958,109
5,958,109
Granted during
the period as
compensation 1
-
-
-
-
-
-
-
-
-
-
-
-
5,958,109
-
-
Lapsed
during the
period
Held at 30 June
2022 (or date of
resignation)
Vested and
exercisable at 30
June 2022
-
-
-
-
-
-
-
5,958,109
-
-
-
-
-
-
-
-
-
11,916,217
5,958,109
-
5,958,109
5,958,109
-
-
-
-
-
-
-
5,958,109
2,979,054
-
1,489,527
-
-
-
29,790,544
5,958,109
5,958,109
29,790,544
10,426,689
1. The unlisted options granted and issued during the period are unvested and subject to vesting conditions. Refer to Note 22
for further details.
2. 11,916,217 unlisted options lapsed on 11/7/2022 following Mr John Annand’s resignation.
5,958,109 unlisted options lapsed on 12/8/2022 following Ms Paige Exley’s resignation.
5,958,109 unlisted options lapsed on 20/8/2022 following Mr Ben Suda’s resignation.
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 2022
Short term benefits
Salary & Fees
$000’s
85
55
55
55
250
Share based
remuneration
$000’s
-
-
-
-
-
Note
Directors
D Parsons
D Slack
A Levine
M Lindh
Total
1. Mr A Levine - $5,019 of Directors fee were prepaid provided for the financial year ended 30 June 2022.
2022
1.
Post-Employment
Superannuation
$000’s
9
5
-
5
19
Termination
Benefits
$000’s
-
-
-
-
-
Year 2021
Directors
D Parsons
D Slack
A Levine
M Lindh
Total
Note
2.
2021
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
-
-
-
-
-
Total
$000’s
94
60
55
60
269
Total
$000’s
93
60
65
60
278
Performance based
Remuneration
%
-
-
-
-
-
Performance based
Remuneration
%
-
-
-
-
-
2. 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
17
DIRECTORS’ REPORT
Executives
Year 2022
Executives
J Annand
P Exley
B Suda
A Booth
D Newcombe
A Godbeer
Total
Note
1
2
3
4
5
2022
Short-term benefits
Salary & fees
Bonus or
Commission
$000’s
276
164
193
244
210
33
1,120
$000’s
-
-
-
-
-
-
-
Share based
remuneration
$000’s
(49)
(24)
1
31
-
-
(67)
Post-
Employment
Superannuation
$000’s
18
16
19
24
21
3
101
Performance-
based
remuneration
%
(20)
(16)
0
10
0
0
(6)
Total
$000’s
245
156
213
299
231
36
1,154
J Annand ceased employment on 11 April 2022
1.
2. P Exley ceased employment on 12 May 2022
3. B Suda ceased employment on 20 May 2022
4. A Booth commenced employment on 6 December 2020 and promoted to CEO 15 March 2022.
5. A Godbeer commenced employment on 2 May 2022
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.
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 2022 or 2021
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
18
DIRECTORS’ REPORT
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
J Annand 2
26 Feb 2020
26 Feb 2020
P Exley 3
T Van Litsenborgh 1. 26 Feb 2020
18 Feb 2021
B Suda 4
8 Nov 2021
A Booth
Number of
KMP
Options -
Vesting 1 year
from issue
2,979,054
1,489,527
1,489,527
1,489,527
1,489,527
8,937,162
Exercise
Price
$0.04
$0.04
$0.04
$0.04
$0.04
Total
Number of
KMP
Options -
Vesting 2
years from
issue
2,979,054
1,489,527
1,489,527
1,489,527
1,489,527
8,937,162
Number of
KMP Options
- Vesting 3
years from
issue
5,958,109
2,979,055
2,979,055
2,979,055
2,979,055
17,874,329
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
Total KMP
Options on
Expiring 30
June 2025
2,979,055
2,979,055
2,979,055
1. 5,958,109 unlisted options lapsed on 19/7/2021 following Mr Van Litsenborgh’s resignation.
2. 11,916,217 unlisted options lapsed on 11/7/2022 following Mr John Annand’s resignation.
3. 5,958,109 unlisted options lapsed on 12/8/2022 following Ms Paige Exley’s resignation.
4. 5,958,109 unlisted options lapsed on 20/8/2022 following Mr Ben Suda’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.
Executive Contracts
The employment terms and conditions of all Executive KMP are formalised in contracts of employment.
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 25 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 options have been issued on the following terms:
Options on issue
KMP Options
KMP Options
Total
Number
2,979,054
2,979,055
5,958,109
Exercise Price
$0.04
$0.04
Expiry date
30 June 2024
30 June 2025
Vested /Exercisable
-
-
-
Indemnification and Insurance of Directors, Officers and Auditor
During the course of the year the Company has paid $32,480 in premiums for Directors and Officers liability insurance. The insurance
would cover costs and expenses incurred 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
19
DIRECTORS’ REPORT
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.
The following fees were paid or payable to the auditor for non-audit services provided during the year ended 30
June:
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
2021
$’000
2022
$’000
50
10
60
49
10
59
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 Chair
30 August 2022
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
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 2022, there have
been:
a)
no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit, and
b)
no contraventions of any applicable code of professional conduct in relation to the audit.
WEN-SHIEN CHAI
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 30th day of August 2022.
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 2022
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE 13CONSOLIDATED GROUP
2021
$'000
9,701
(5,211)
4,490
2022
$'000
11,088
(6,163)
4,925
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)
2
3
3
3
3
4
7
7
653
747
(64)
(58)
(20)
(248)
(121)
(203)
(3,042)
(85)
(127)
(254)
(80)
(32)
(57)
(46)
(51)
(32)
(107)
(21)
(286)
(4,934)
644
644
-
644
-
644
Cents
0.17
0.16
(64)
(71)
-
(305)
(177)
(180)
(2,905)
(83)
(84)
(207)
(79)
(17)
(68)
(49)
(52)
(33)
(70)
(24)
(149)
(4,617)
620
620
-
620
-
620
Cents
0.16
0.15
The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the notes to
the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
22
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITI3CONSOLIDATED GROUP
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
NOTES
8
9
10
11
13
14
15
16
17
18
17
18
19
20
21
2022
$'000
1,739
1,993
2,244
756
6,732
383
-
543
926
7,658
1,851
191
285
2,327
-
6
6
2,333
5,325
2021
$'000
1,411
1,426
1,773
743
5,353
450
422
607
1,479
6,832
1,147
283
256
1,686
406
18
424
2,110
4,722
55,819
237
(50,731)
5,325
55,819
278
(51,375)
4,722
The consolidated statement of financial position should be read in conjunction with the notes to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
23
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED GROUP
Net cash flows from operating activities
Receipts from customers
Payments to suppliers, consultants and employees
GST Paid
Interest paid
Interest received
Other – Grants and R&D tax incentive
NOTES
2022
$'000
11,164
(11,413)
(1)
(10)
4
654
Net cash provided by / (used in) operating activities
24
398
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
Repayment of borrowings
Borrowing costs
Net cash provided by / (used in) financing activities
26
(54)
(28)
(22)
(20)
(42)
2021
$'000
10,209
(9,727)
-
(9)
4
735
1,212
-
(274)
(274)
(18)
(25)
(43)
Net increase / (decrease) in cash and cash equivalents held
328
895
Cash and cash equivalents at the beginning of the financial year
1,411
516
Cash and cash equivalents at the end of the financial year
8
1,739
1,411
The consolidated statement of cash flow should be read in conjunction with the notes to the financial statements.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
24
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED GROUP
At 1 July 2021
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
$'000
Accumulated
Losses
Other Reserves
$'000
$'000
Total
$'000
55,819
(51,375)
278
4,722
-
-
-
-
-
-
644
-
644
-
(41)
(41)
644
(41)
603
-
-
-
-
-
-
-
-
-
At 30 June 2022
55,819
(50,731)
237
5,325
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
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
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 2022
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 30th August 2022.
New and amended accounting policies adopted by the Group
(a)
The Group has considered the implications of new or amended Accounting Standards which have become applicable
for the current financial report and the Group 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
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
-
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;
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 Group’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
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
-
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.
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 (e.g. 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 (i.e. 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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
2-10 years
3-15 years
3-8 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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
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 2022
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 2022,
the Group recorded a profit after tax of $0.644m (2021: $0.620m) and reported operating cash inflows of $0.398m (2021: inflows
$1.212m). At balance date and as detailed in Note 17, the Company has current borrowings of $0.191m (2021: $0.283m).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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
- gain on derecognition of right of use asset & liability
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
2021
$’000
2022
$’000
4
(6)
26
425
117
-
14
73
653
4
(1)
(1)
526
96
105
18
-
747
6,163
5,211
85
84
8
19
10
-
82
203
20
20
80
83
72
15
18
9
1
65
180
-
-
79
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 25% (2021: 26%)
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% (2021:26%):
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
2021
$’000
2022
$’000
-
-
-
-
-
-
161
161
276
111
(432)
(106)
(10)
-
-
(58)
58
-
4,220
76
11
179
-
7
37
4,848
352
60
(416)
(136)
(21)
-
(6)
(74)
80
-
4,602
76
20
132
9
5
4
4,848
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 2022
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 2022.
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
2022
$’000
1,377
2021
$’000
1,271
120
-
(67)
1,430
106
-
135
1,512
Short-term employee benefits
These amounts include fees and benefits paid to the Non-Executive Chair and Non-Executive Directors as well as all salary,
paid leave benefits, fringe benefits and cash bonuses awarded to Executive Directors and other KMP.
Post-employment benefits
These amounts are the superannuation contributions made during the year.
6.
AUDITOR’S REMUNERATION
Remuneration of the auditor of the Consolidated Group for:
Audit or review of the financial statements
Taxation services
7.
EARNINGS PER SHARE
Basic Earnings per share
Net profit / (loss) ($’000’s)
CONSOLIDATED GROUP
2022
$’000
50
10
60
2021
$’000
49
10
59
CONSOLIDATED GROUP
2022
$’000
644
2021
$’000
620
Number
(‘000’s)
Number
(‘000’s)
i) Weighted average number of ordinary shares
during the year used in calculation of basic EPS (in ‘000’s)
379,149
379,149
ii) Weighted average number of diluted options
during the year used in calculation of basic EPS (in ‘000’s)
34,791
30,987
Basic profit / (loss) per share (cents)
Diluted profit / (loss) per share (cents)
Cents
0.17
0.16
Cents
0.16
0.15
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
8 CASH AND CASH EQUIVALENTS
Cash at bank
Short term bank deposits
CONSOLIDATED GROUP
2022
$’000
1,739
-
1,739
2021
$’000
1,369
42
1,411
The effective interest rate on short-term bank deposits was 0.18% (2021: 0.42%) 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
1,739
1,411
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 2022, the borrowing facility available was $500,000 (2021: $500,000) and the amount borrowed was nil (2021:
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
9a(i)
2022
$’000
2,033
(40)
1,993
2021
$’000
1,446
(20)
1,426
The following table shows the movement in lifetime expected credit loss that has been recognised for trade and other
rreceivables in accordance with the simplified approach set out in AASB 9: Financial Instruments.
CONSOLIDATED GROUP
Opening
balance under
AASB 139
Adjust-
ment for
AASB 9
Net measure-
ment of loss
allowance
Amounts
written
off
1 July 2020
Closing
balance
30 June 2021
$000
$000
$000
$000
$000
(20)
(20)
-
-
-
-
-
-
(20)
(20)
a.
Lifetime Expected Credit Loss: Credit Impaired
(i)
Current trade receivables
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
9 TRADE AND OTHER RECEIVABLE
CONSOLIDATED GROUP
Opening
balance under
AASB 139
Adjust-
ment for
AASB 9
1 July 2021
Net
measure-
ment of loss
allowance
Amounts
written
off
Closing
balance
30 June 2022
$000
(20)
(20)
$000
$000
$000
-
-
(20)
(20)
-
-
$000
(40)
(40)
(i)
Current trade receivables
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 2022 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.
2022
Expected loss rate
Gross carrying amount
Loss allowing provision
2021
Expected loss rate
Gross carrying amount
Loss allowing provision
10
INVENTORIES
Current
Finished goods
Components and WIP
Less: Provision for obsolescence
Current
>30 days
past due
>60 days
past due
>90 days
past due
$000
$000
$000
$000
0%
967
-
0%
749
-
47%
85
(40)
11%
232
-
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%
-
-
Total
$000
1.97%
2,033
(40)
Total
$000
1.38%
1,446
(20)
CONSOLIDATED GROUP
2021
$’000
2022
$’000
-
2,318
(74)
2,244
-
1,886
(113)
1,773
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
11
OTHER CURRENT ASSETS
Prepayments
Refundable deposits paid
Other receivables - R&D Tax incentive
12. CONTROLLED ENTITES
Advanced Braking Pty Ltd ACN 088 129 917 (Incorporated in WA)
Class and number of shares: ordinary
CONSOLIDATED GROUP
2021
2022
$’000
43
400
756
$’000
-
512
743
2022
Number
PARENT ENTITY
2021
Number
200,002
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.
13
PROPERTY, PLANT AND EQUIPMENT
CONSOLIDATED GROUP
2021
2022
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
$’000
889
(604)
285
44
(44)
-
97
(44)
53
131
(86)
45
80
(80)
-
383
$’000
874
(520)
354
75
(66)
9
94
(35)
59
100
(72)
28
80
(80)
-
450
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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
2022
$'000
$'000
$'000
$'000
$'000
$'000
Balance at the beginning of year
Additions
Disposals
Written-off
354
15
-
-
-
-
-
Depreciation expense
(84)
(8)
Carrying amount at the end of year
285
-
8 29
59
38
(3)
-
(19)
45
4
-
-
(10)
53
-
-
-
-
-
-
450
57
(3)
-
(121)
383
2021
$'000 $'000
$'000
$'000
$'000
$'000
Balance at the beginning of year
Additions
Disposals
Written-off
163
263
-
-
23
-
-
-
Depreciation expense
(72)
(15)
Carrying amount at the end of year
354
8
40
8
(1)
-
(18)
29
65
3
-
-
(9)
59
1
-
-
-
292
274
(1)
-
(1)
(115)
-
450
14. RIGHT-OF-USE ASSETS
The Group's lease portfolio currently includes buildings. The lease ran for a period of 5 years with an option
to extend for 5 years. The extension option was reasonably certain to be exercised at the adoption of AASB
16: Leases.
Upon expiry of the initial 5-year term in June 2022, the Group elected to waiver the 5-year option, and to
extend for a period of 12 months only.
The Group recognises that the lease modification is not accounted for as a separate lease, but rather a
remeasurement of the lease liability, and decreased the carrying amount of the right of use asset to reflect
the partial termination of the lease.
The decrease in the scope of the lease is recognised as a lease modification and any gain or loss relating to the
partial termination of the lease is recognised in the statement of profit or loss in June 2022
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
14. RIGHT-OF-USE ASSETS (continued)
(i) AASB 16 related amounts recognised in the balance sheet
Right-of-use assets
Leased building
Accumulated depreciation
Derecognition of right of use asset
Depreciation expense for the year ended 30 June
(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)
Low-value asset leases 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
2021
$’000
2022
$’000
544
(214)
(330)
-
83
553
(131)
-
422
65
CONSOLIDATED GROUP
2021
$’000
2022
$’000
83
43
-
2022
$’000
90
35
65
39
27
2021
$’000
85
39
CONSOLIDATED GROUP
2021
$’000
2022
$’000
2,984
(2,441)
543
2,984
(2,377)
607
Total carrying amount at the end of year
543
607
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
2022
Balance at the beginning of year
Amortisation expense
Carrying amount at the end of year
Wet Brake Technology
$'000
607
(64)
543
Total
$'000
607
(64)
543
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
15.
INTANGIBLES (continued)
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
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 2022 or 2021, as there were no impairment
triggers.
16
TRADE AND OTHER PAYABLES
Current (unsecured)
Trade creditors
Other payables
Accrued expenses
INTEREST BEARING LIABILITIES
17
(a) Current
Insurance Premium funding (i)
Other (secured)
Lease liability – Right-of-use assets (ii)
Total
CONSOLIDATED GROUP
2021
$’000
1,092
56
(1)
1,147
2022
$’000
1,448
70
333
1,851
191
-
191
-
191
214
17
231
52
283
(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 $191,000. The interest rate of the funding is approx. 4.3% pa.
(b) Non-current
Lease Liability – Right of use asset (c)
Total
CONSOLIDATED GROUP
2021
$’000
406
406
2022
$’000
-
-
(ii) The Group recognises that the lease modification is not accounted for as a separate lease, but rather
a remeasurement of the lease liability, and decreased the carrying amount of the lease liability to
reflect the partial termination of the lease.
The decrease in the scope of the lease is recognised as a lease modification and any gain or loss
relating to the partial termination of the lease is recognised in the statement of profit or loss in June
2022.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
17
(c)
INTEREST BEARING LIABILITIES (continued)
Lease Liability – Right of use asset
The lease liabilities are presented below:
Balance at 1 July
Payments
Interest charges during the period
Derecognition of lease liability
Balance at 30 June
18
PROVISIONS
Current
Warranties
Employee entitlements
Total
Non-Current
Employee Entitlements
Total
(b) Number of Employees
Number of employees at year-end
Australia
Total
CONSOLIDATED GROUP
Opening balance as at 1 July 2021
Additional provisions
Amounts used
Unused amounts reversed
Increase in the discounted amount arising due to time and
effect of any change in the discount rate
Balance as at 30 June 2022
Warranties
96
14
-
-
-
110
CONSOLIDATED GROUP
2021
$’000
504
(85)
39
-
458
2022
$’000
458
(90)
35
(403)
-
CONSOLIDATED GROUP
2021
$’000
96
160
256
2022
$’000
110
175
285
6
6
18
18
Number
Number
23
23
Employee
Entitlements
178
193
(128)
(61)
(1)
181
15
15
Total
274
207
(128)
(61)
(1)
291
271
174
(146)
(24)
(1)
274
CONSOLIDATED GROUP
Opening balance as at 1 July 2020
Additional provisions
Amounts used
Unused amounts reversed
Increase in the discounted amount arising due to time and
effect of any change in the discount rate
Balance as at 30 June 2021
Warranties
Employee
Entitlements
Total
82
14
-
-
-
96
189
160
(146)
(24)
(1)
178
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
19
ISSUED CAPITAL
(a) Ordinary Shares
The Parent Entity had issued 379,148,766 (2021: 379,148,766) fully paid ordinary shares as at the 30 June 2022.
Ordinary shares
Balance at beginning of the financial year 1 July
Transaction costs relating to share issues
Balance at end of financial year
(b)
Options
Unlisted Options
Balance at beginning of the financial year 1 July 2021
Lapse of KMP Options
Issue KMP Options
Issue KMP Options
30 June 2022 – Lapse of Consultant Options
Balance at end of financial year 30 June 2022 (ii)
2022
Number of
shares
$’000
2021
Number of
shares
$’000
379,148,766
379,148,766
379,148,766
55,819
55,819
-
55,819
379,148,766 55,819
379,148,766 55,819
-
379,148,766 55,819
Number of
options
Exercise
price
$
Expiry date
34,790,544
(5,958,109)
2,979,054
2,979,055
(5,000,000)
29,790,544
0.038
0.040
0.040
0.040
0.038
WAEP (i)
30/6/2024
30/6/2025
WAEP (i)
(i) Weighted Average exercise price
(ii) 11,916,217 unlisted options lapsed on 11/7/2022, 5,958,109 unlisted options lapsed on 12/8/2022, 5,958,109
unlisted options lapsed on 20/8/2022, Balance as at the date of the report was 5,958,109
(c) Capital Management
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 2022 and 30 June 2021 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.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Gearing ratio
CONSOLIDATED GROUP
2021
(18.1%)
2022
(41.0%)
As the Group’s gearing ratio has dropped significantly in 2022 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 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
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
2022
$’000
1,739
1,993
756
(1,851)
CONSOLIDATED GROUP
2021
$’000
1,411
1,426
743
(1,147)
(191)
(285)
2,161
(283)
(256)
1,894
CONSOLIDATED GROUP
2021
$’000
64
214
278
2022
$’000
64
173
237
CONSOLIDATED GROUP
2021
$’000
(51,995)
620
(51,375)
2022
$’000
(51,375)
644
(50,731)
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22 SHARE-BASED PAYMENTS
(a) Share-based payment expense
Schedule of share-based payments
(i)
Total allocated to Issued Capital
Shares
Options
(ii)
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 (4)
8 November 2021 – Issue of 5,958,109 Unlisted options to KMP (2)
11 April 2022 – Lapse of 5,958,109 unlisted options to KMP (5)
12 May 2022 – Lapse of 2,979,055 unlisted options to KMP (6)
22 May 2022 – Lapse of 4,468,582 unlisted options to KMP (7)
30 June 2022 – Lapse of Consultant Options (3)
Total allocated to Share-based Payment Reserve
CONSOLIDATED GROUP
2021
$’000
109
2022
$’000
(41)
-
-
-
-
-
-
-
31
(48)
(23)
(1)
-
(41)
-
-
-
-
137
27
(55)
-
-
-
-
-
109
(b)
Options issued during the period
1. Pursuant to ABT’s Share Option Plan, 5,958,109 unlisted options lapsed upon resignation of Mr Tony Van Litsenborgh.
2. Pursuant to ABT’s Share Option Plan, key management personnel, Mr Andrew Booth 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).
3. 5,000,000 consultant options were not exercised before expiry and lapsed on 30 June 2022
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
from
(Tranche 1) 25%
KMP Options Vesting 2
years
issue date
(Tranche 2) 25%
from
KMP Options Vesting 3
years from
issue date
(Tranche 3) 50%
1,489,527
1,489,527
2,979,055
Total
5,958,109
4. 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.
5. 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 J Annand on 11 April 2022. An amount of $83,000 was reversed in relation to the
total valuation of the KMP options amortised to his resignation date, comprised of $22,000, $36,000 and $25,000
related to the amortisation during the years ended 30 June 2020, 30 June 2021 and 30 June 2022 respectively.
6. During the period, 2,979,055 unlisted options issued to a KMP in 2020 were not able to meet the vesting conditions,
due to the resignation of KMP Ms P Exley on 12 May 2022. An amount of $41,000 was reversed in relation to the total
valuation of the KMP options amortised to her resignation date, comprised of $11,000 , $18,000 and $12,000 related
to the amortisation during the years ended 30 June 2020, 30 June 2021 and 30 June 2022 respectively.
7. During the period, 4,468,582 unlisted options issued to a KMP in 2021 were not able to meet the vesting conditions,
due to the resignation of KMP Mr B Suda on 22 May 2022. An amount of $48,000 was reversed in relation to the total
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
valuation of the KMP options amortised to his resignation date, comprised of $17,000 and $31,000 related to the
amortisation during the years ended 30 June 2021 and 30 June 2022 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 2022
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
$0.0097
$0.036
$0.04
111%
1 year
Nil
0.1%
1,489,527
$14,411
$0.014
$0.036
$0.04
111%
2 years
Nil
0.05%
1,489,527
$20,895
$0.0172
$0.036
$0.04
111%
3 years
Ni
0.27%
2,979,055
$51,239
The total value of the KMP Options is $86,545 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
FY2022
$10,739
$7,786
$12,715
$31,240
FY2023
$3,671
$10,448
$17,064
$31,183
FY2024
-
$2,662
$17,111
$19,773
FY2025
-
-
$4,349
$4,349
Total
$14,410
$20,896
$51,239
$86,545
23 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
CONSOLIDATED GROUP
2021
$’000
6,683
3,018
9,701
2022
$’000
6,525
4,563
11,088
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23
SEGMENT REPORTING (continued)
(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
7,658
7,658
6,832
6,832
The Group has several customers to whom it provides both products and services. The four most significant customers
comprise:
2022
% of total revenue
from trading activities
2021
% of total revenue from
trading activities
Significance
1st
2nd
3rd
4th
11.1%
10.8%
8.5%
6.7%
24
(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
9.6%
8.3%
8.0%
7.9%
CONSOLIDATED GROUP
2021
2022
$’000
$’000
644
-
(41)
203
64
(26)
(610)
(471)
(87)
706
16
398
620
-
109
180
64
221
(150)
229
(29)
198
(9)
1,212
(b)
Non-cash financing and investing activities
2022
During the year to 30 June 2022
On 8 November 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 2024, subject to vesting conditions and a further 2,979,055 unlisted options exercisable at $0.04 and an expiry
date of 30 June 2025, subject to vesting conditions.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2021
During the year to 30 June 2021
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.
25
(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 $32,714 to Rockwell Bates Pty Ltd T/A Rockwell
Bates for legal services on an arms-length basis at commercial rates. Rockwell Bates 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 $45,398 to Rockwell Group Holdings Pty Ltd
for director’s fees for Adam Levine 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 $40,130 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 2022, no securities were issued to directors as remuneration.
26
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 2022
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(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:
Average
Interest
Rate
%
Floating
Interest
Rate
$’000
Within 1
Year
1 to 5
Years
$’000
$’000
Non-
Interest
Bearing
$’000
2022
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
0.27%
-
-
-
-
4.3%
1,739
-
-
1,739
-
-
-
-
-
-
-
-
-
-
-
191
-
191
Net Financial Assets / (Liabilities)
1,739
(191)
-
-
-
-
-
-
-
-
-
-
Total
$’000
1,739
1,993
400
4,132
1,851
-
191
-
2,042
-
1,993
400
2,393
1,851
-
-
-
1,851
542
2,090
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
As at 30 June 2022 Advanced Braking Pty Ltd was entitled to interest on deposits at the National Australia Bank at rates
at the weighted average of 0.27% per annum (2021: 0.34% per annum).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The sensitivity analysis below is based on the interest rate risk exposure in existence at the balance sheet date. The
0.25% (2021: 0.25%) 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% (2021: 0.5%) per annum
-0.25% (2021: -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)
Refundable deposits
-Provisions - Current
-Provisions - Non-current
Net (liabilities)/assets as per the Balance Sheet
CONSOLIDATED GROUP
2021
2022
$’000
$’000
4
(4)
4
(4)
CONSOLIDATED GROUP
2021
2022
$’000
2,090
2,244
383
-
543
313
43
(285)
(6)
5,325
$’000
1,513
1,773
450
422
607
231
-
(256)
(18)
4,722
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 2022, the Company does not have any forward foreign exchange contracts in place. As at 30 June 2022 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
2021
2022
$’000
$’000
-
-
-
-
-
-
(6)
(6)
(17)
(17)
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The following sensitivity analysis is based on the foreign currency risk exposure in existence at the balance sheet date.
The 11% (2021: 11%) 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 2022, 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% (2021: +7%) per annum
-11% (2021: -7%) per annum
CONSOLIDATED GROUP
2021
2022
$’000
$’000
(1)
1
(2)
2
(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
2021
$’000
2022
$’000
0 – 6 months
6 – 12 months
1 – 5 years
96
95
-
191
136
147
286
569
The following table discloses maturity analysis of financial assets and liabilities based on management expectation:
CONSOLIDATED GROUP AS AT 30 JUNE 2022
< 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
1,739
1,993
400
4,132
1,851
-
96
1,947
2,185
-
-
-
-
-
-
95
95
(95)
-
-
-
-
-
-
-
-
-
Total
$'000
1,739
1,993
400
4,132
1,851
-
191
2,042
2,090
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED GROUP AS AT 30 JUNE 2021
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
< 6 Mths
$'000
6 - 12 Mths
$'000
1 - 5 Years
$'000
1,411
1,426
512
3,349
1,147
29
107
1,283
2,066
-
-
-
-
-
40
107
147
-
-
-
-
-
286
-
286
(147)
(286)
Total
$'000
1,411
1,426
512
3,349
1,147
355
214
1,716
1,633
(c)
Credit risk
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:
CONSOLIDATED
Australia
2022
$’000
1,993
1,993
2021
$’000
1,426
1,426
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 2022
resulted in no adjustment to the provision for obsolete inventory.
Intangible assets as at 30 June 2022 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.
27
CONTINGENT LIABILITIES
There are no contingent liabilities.
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
28
EVENTS SUBSEQUENT TO BALANCE DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing, and the Company continues to monitor risks associated
with the impacts that the pandemic is having both domestically and globally.
No other matter or circumstance has arisen since 30 June 2022 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.
29
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)
2022
$'000
35
6,993
7,028
72
-
72
55,819
237
(49,100)
6,956
2022
$'000
(279)
(279)
PARENT ENTITY
2021
$'000
30
7,309
7,339
63
-
63
55,819
278
(48,821)
7,276
PARENT ENTITY
2021
$'000
(115)
(115)
Guarantees
At 30 June 2022, 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.
Contractual Commitments
As at 30 June 2022, Advanced Braking Technology Ltd had not entered into any contractual commitments for the
acquisition of property, plant and equipment (2021: Nil).
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
57
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
The financial statements and notes, as set out on pages 22 to 57, are in accordance with the Corporations Act 2001:
a)
b)
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
give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year ended on that
date of the Consolidated Group.
2.
3.
The Chief Executive Officer and Chief Finance Officer have each given the declarations required by s295A of the Corporations
Act 2001.
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
30th August 2022
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
58
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
2022, 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:
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year then ended; and
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 (including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the time
of this auditor’s report.
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.
59
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
Valuation of Failsafe (WET) Brake Technology
Refer to Notes 1(n), (u) key estimates – recoverability of intangible assets & 15 Intangibles
The carrying value of the Group’s Failsafe Brake
Technology as at 30 June 2022 was $543,397 and
the related amortisation charge for the year ended
30 June 2022 was $64,000.
The carrying value and amortisation rate are
reviewed annually by management with reference
to current and
trading performance,
relevant technological factors and other operational
indicators. This involves a significant amount of
management judgement.
forecast
This is a key area of audit focus because the
carrying value is material and the value is subject
judgement and
to significant management
estimates.
Existence and Valuation of Inventories
Refer to Note 10 Inventories
The carrying value of inventory as at 30 June 2022
was $2.24 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 Group’s single largest
inventory
therefore
asset, we have
existence and valuation as a key audit matter.
identified
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
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.
that
• Assessment of any impairment triggers by comparing
the market capitalisation of the 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
financial statements were appropriate and adequate.
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 inventory count
near period-end and undertaking our own test counts.
• Testing a sample of inventory items and comparing our
count results with those of the Group's representative
and investigating any variances.
• Performing test of details on historical costs, including
final
the mathematical accuracy of
the
testing
inventory listing.
• Held discussions with management to understand and
corroborate assumptions applied in ensuring slow
moving, old and certain inventory lines have been
appropriately valued or adequately provided for or
impaired
• Testing a sample of inventory items to subsequent
sales to ensure that they were recorded at the lower of
cost and net realisable value.
• Reviewing gross margins for any unusual patterns
compared to prior periods.
60
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
Valuation of Receivables
Refer to Note 9 Trade Receivables
Valuation of trade receivables is a key area of audit
focus due to the size of the account balances and
the
their
carrying value, and hence is a key audit matter.
judgements required
in determining
Trade debtors amounted to $2.0 million as at 30
June 2022.
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
cover
receipt
collections from debtors and ageing analysis post year
end.
relevant debtors, subsequent
for
• Review of expected credit
loss workings and
assessments prepared by management in relation to
trade receivables, including an 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 2022, 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.
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.
61
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ADVANCED BRAKING TECHNOLOGY LIMITED (CONTINUED)
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_2020.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 2022.
In our opinion, the Remuneration Report of Advanced Braking Technology Limited, for the year ended
30 June 2022 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.
WEN-SHIEN CHAI
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 30th day of August 2022.
62
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 23 August 2022.
(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
295
151
473
235
1,384
132,701
809,044
1,158,353
18,215,604
358,833,064
379,148,766
0.03
0.21
0.31
4.80
94.64
100.00
(b)
(c)
There are 793 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 23 August 2022:
Mr Keith Knowles
Mr David Slack
Mr Craig Chapman
34.70% 131,581,728 ordinary shares
18.24% 69,169,252 ordinary shares
5.26% 19,961,975 ordinary shares
3.
Shareholders
The twenty largest Shareholders hold 70.54% of the total issued ordinary shares in the Company as at 23 August 2022.
4.
Share Options on issue at 23 August 2022
The Company has the following unquoted equity securities on issue:
•
2,979,054 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.
2,979,054 unlisted options, exercisable at $0.04 on or before 30 June 2025, 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 2022
63
8.
Largest Fully Paid Ordinary Shareholders
SHAREHOLDER INFORMATION
The names of the twenty largest Shareholders at 23 August 2022, who hold 70.54% 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
RP INVEST PTY LTD
MR PETER RODNEY BOWER
HIMSTEDT & CO PTY LTD
MR EVAN PHILIP CLUCAS + MS LEANNE JANE WESTON
MR KEITH KNOWLES
MR DAVID EARL SLACK
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
MRS TERESA ELIZEABETH WILLIAMS
KIZOGO PTY LTD
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Number of
Shares
69,120,277
58,170,986
26,523,588
19,961,975
19,622,167
18,981,633
8,600,000
8,141,590
5,000,000
4,606,250
4,378,967
4,041,864
3,398,504
2,533,334
2,500,000
2,450,000
2,414,490
2,400,000
2,328,500
2,276,741
% of
Issued
Shares
18.23
15.34
7.00
5.26
5.18
5.01
2.27
2.15
1.32
1.21
1.15
1.07
0.90
0.67
0.66
0.65
0.64
0.63
0.61
0.60
267,450,866
70.54
ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022
64
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ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2022