ALEXIUM INTERNATIONAL GROUP LIMITED
ANNUAL REPORT
For the Year Ended 30 June 2021
ABN 91 064 820 408
PRESENTED IN US DOLLARS
TABLE OF CONTENTS
Company Directory
Letter from the Chair and CEO
Directors’ Report
Declaration of Independence
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes on the Consolidated Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
1
2
3
17
18
19
20
21
22
44
45
48
ALEXIUM INTERNATIONAL GROUP LIMITED
COMPANY DIRECTORY
DIRECTORS
COMPANY SECRETARY
REGISTERED OFFICE
AUDITORS
SHARE REGISTRY
BANKERS
SOLICITORS
ABN
Mrs Rosheen Garnon
Brigadier General Stephen Cheney, USMC(Ret)
Mr Simon Moore
Dr Paul Stenson
Dr Robert Brookins
Mark Licciardo
Belinda Cleminson (Resigned 01 December 2020)
Level 7, 330 Collins Street
Melbourne VIC 3000
Telephone: +61 8 9384 3160
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Automic Registry Services
Level 5, 126 Phillip St
Sydney NSW 2000
Telephone: 1300 288 664
Macquarie Bank
Level 23, 235 St Georges Terrace
Perth WA 6000
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth WA 6000
91 064 820 408
DOMICILE AND COUNTRY OF INCORPORATION
Australia
LEGAL FORM OF ENTITY
SECURITY EXCHANGE
Listed Public Company
Australian Securities Exchange Limited
Home Exchange: Perth
ASX Code: AJX
ALEXIUM INTERNATIONAL GROUP LIMITED
1
LETTER FROM THE CHAIR AND CEO
Dear Shareholders,
We bring FY2021 to a close with a series of commercial successes that will have greater future revenue and profitability impact than in the Company’s
history. Over the past twelve months, key commercial & product-line milestones have been realized that significantly expand our market opportunities
and establish new revenue streams for FY2022. Notable examples of this include the following:
•
•
•
Total mattress cooling system (TMCS) – Developed with commercial partners over the past 18 months, the TMCS initiative brings
a diverse set up Alexicool® products into a single mattress design. Initial sales began in FY2021 with the full run rate expected in
1H FY2022.
Eclipsys™ – Commercially launched in Q2 FY2021, this product line provides continual cooling via our proprietary technology.
While bedding applications were the initial target market, we have identified a number of applicable markets with first revenue
for the body armor market anticipated in 1H FY2022.
BioCool™ – also commercially launched in Q2 FY2021, this product line launched a proprietary biobased and biodegradable phase
change material (PCM) which has had fast adoption in the bedding market and will continue to grow market share in 1H FY2022.
Coupling these developments with the new commercial team in place plus growth in other product lines (Alexiflam NF for mattress FR barriers and
Eclipsys™ for mattresses), shareholders can clearly see the Company is focused on executing its growth strategy in FY2022.
Our year-over-year growth of 20% in FY2021 speaks well for our team’s performance given this growth is on existing markets with established
products. As outlined above, we are working towards a stronger growth profile which will be driven by new products and new markets.
While the COVID-19 pandemic continues to present its challenges, the majority of our team has been vaccinated, allowing our Company and our
customers to get back to “normal” in 2H FY2021. As we all know, this continues to be a fluid situation, but the board and management team
believe the Company is well-positioned to manage any issues as they arise.
Thank you to all of our shareholders for your support.
Sincerely,
Mrs Rosheen Garnon
Chair of the Board
Dr Bob Brookins
Chief Executive Officer
ALEXIUM INTERNATIONAL GROUP LIMITED
2
DIRECTORS’ REPORT
Your Directors present their report on Alexium International Group Limited and its subsidiaries (‘Company’) for the period ended 30 June 2021.
DIRECTORS
The Directors of the Company in office during the period ended 30 June 2021 and until the date of this report are as follows. Directors were in
office for the entire period unless otherwise stated.
Brigadier General Stephen Cheney
Dr Robert Brookins
• Mrs Rosheen Garnon
•
•
• Mr Simon Moore
•
Dr Paul Stenson
PRINCIPAL ACTIVITIES
The development of advanced materials where there is a market opportunity for commercialisation. During the period activities included:
Research and development in consultation with end clients;
•
• Obtaining patents in relation to new products developed; and
•
Commercialisation and sales of the products.
DIVIDENDS
No dividend was paid during the period and the Board has not recommended the payment of a dividend (2020: Nil).
SHARE CAPITAL
The following were on issue:
Type
Ordinary shares
Unlisted options
Outstanding warrants
Share appreciation rights
Performance rights
30-Jun-21
640,197,246
-
3,829,787
16,150,924
1,226,076
30-Jun-20
634,456,542
1,500,000
3,829,787
-
2,992,160
OPERATING AND FINANCIAL REVIEW
Operations and Technology Review
The Company’s corporate and operating activities are performed from our single facility located in Greer, South Carolina, USA. The Company utilises
contract manufacturers to produce finished goods; this creates a variable cost model for manufacturing and allows the Company to focus its efforts
on product development and commercialisation of high-performance products. The main product families are phase change material (“PCM”) and
cooling products for the bedding industry and flame retardant (“FR”) technologies for markets such as bedding, military, and workwear.
Alexium’s focus areas during the year:
Alexicool®: PCM-based cooling products for textile and foam applications. This product line is the key driver of sales of the Company. Its performance
is reliable and drives value for customers.
BioCool™: Commercialised proprietary biobased cooling products for textile and foam applications with a product line that has a USDA BioPreferred
Certification with 92% biobased content with initial sales and increasing adoption rates by customers in 2H FY2021.
Total Mattress Cooling System (TMCS): Technology based on the Company’s Alexicool® product line, TMCS provides a higher level of cooling
performance using multiple products integrated into various components within the mattress. First sales started in H2 with the full run rate expected
to be established in 1H FY2022.
Phonon™ / Eclipsys™: Perpetual cooling technology for textile and foam-based products. This IP protected technology is a lightweight product that
has benefits of being adaptive/responsive cooling, non-flammable, non-toxic and is environmentally friendly. In contrast to PCM Technology, which
works by absorbing heat, this technology builds on this by counteracting the insulative effects of foam and textiles, constantly moving heat away
from the consumer. Customer trials are expected in 1H FY 2022 for body armor.
ALEXIUM INTERNATIONAL GROUP LIMITED
3
DIRECTORS’ REPORT
Alexiflam® NF-treated Sock for Foam Mattresses: This initiative applies the Company’s FR product to a cotton-based mattress sock to provide a flame
barrier in foam mattresses. For the year, marketing to mattress-component manufacturers and brands has been successful in driving market interest
in the technology. Successful production runs with manufacturers have further solidified the supply chain to support customers in the US. The
Company is leveraging current customer relationship to penetrate the market.
Alexiflam® FR for military uniforms: Joint efforts have continued during the year with Pine Belt Processing (a subsidiary of Warmkraft, Inc.) on the
manufacturing process application of Alexiflam® with some progress. To accelerate our progress, the Company is now pursuing a two-prong
commercial strategy that includes rolled goods application. This moves the application of Alexiflam® to earlier in the supply chain to the point where
fabric is rolled up onto a core after it has been woven ensuring a consistent application of chemistry.
Commercialisation of Alexiflam® NF: The Company signed a supply and evaluation agreement for the commercialisation of Alexiflam® NF with a
major flame-retardant chemical company (“Business Partner”) following an MOU announced April 4, 2019. The agreement grants access to the
technology for the Business Partner to actively evaluate the potential uses with target markets of global FR cotton including workwear. The
technology in FR socks for foam mattresses, cotton fleece, and military uniforms is not included in the agreement.
Financing: The Company obtained a second $0.5M loan from the US CARES Act Paycheck Protection Program which is expected to be forgiven based
on the submission of qualifying expenses. The first loan that was received in FY2020 for $0.5M was forgiven in Q4 FY2021.
COVID-19: The company responded to COVID-19 through adaptations to various aspects of the business including implementing safety protocols for
employees, restricting access to the operations, implementing more regular communications with both toller manufacturers and suppliers along
with increasing engagement with both current and potential customers.
Management implemented restrictions to the Company’s facility which identified and required certain employees to work from home. The Company
also implemented a strict check in process for those who came to work and severely restricted visitors of any kind. Our toll manufacturer remained
open during the entire year and manufactured product without interruption. Materials suppliers and logistics for the most part remained intact.
Customer engagement remained high but without on-site visits for most of the year. With the roll out of the vaccine program came some relief of
restrictions. The Company ceased their check-in and work from home mandate on 1 June2021 for employees once we reached a majority of people
vaccinated. In addition, the Company allowed select customer and supplier visits to our facility with temperature check and questionnaire
completion. We also experienced customers allowing Company employees to visit their businesses.
The company did not experience a significant downturn or loss of business with its existing customer base and was able to increase sales by 20%
year over year with strong demand for bedding related products from consumers. The Company did observe through its customers that as producers
of bedding went into the start of COVID-19 they purposefully reduced inventories to lower inventory carrying costs during the period of uncertainty.
This action caused delays to the supply chain particularly when demand started to increase back to pre-COVID-19 levels.
Operationally, employee headcount remained consistent through the year. Travel restrictions are easing, customer in-person visits and industry
conferences/trade shows are returning. There are no significant changes to operating costs due to COVID-19.
Management has taken a multifaceted approach to reviewing the balance sheet for COVID-19 related asset impairment. Management has
considered potential impacts by estimating the recoverable amount of intangible assets as part of impairment testing. The results of our assessment
indicate that assets are not held at amounts higher than the recoverable amount. Further, no expected credit losses are recognised, and year end
customer receivables are considered fully collectable.
Financial Result Overview
The Company’s net loss attributable to members of the Company for the financial year ended 30 June 2021 was $1,445,319 (2020: $6,125,476). This
represents a 76% decrease in net loss over the prior period. The primary drivers behind this are described below.
Revenues from ordinary operating activities increased 20% from the prior year at $7,276,399 (2020: $6,078,857). Gross profit increased 14% year
over year at $2,641,907 (2020: $2,313,099) while gross margins decreased two percentage points to 36% (2020: 38%) mainly due to product mix.
Operating costs increased 7% from $5,025,347 to $5,377,173. The net change of $351,826 is comprised of $239,536 decrease on selling, general and
administrative expenses offset by increases in depreciation and amortisation expense of $322,404, decrease in capitalised internal development
costs to non-current assets resulted in an increase of $216,450 to operational expenses, and loss on sale/disposal of fixed assets for $52,508.
Interest expense decreased by $1,200,493 which together with the loss of extinguishment of debt in the prior year of $1,522,033 resulted in a
positive change year over year due to the refinancing of the company debt in December 2019. The gain on embedded derivative on the existing loan
increased income by $1,071,435.
Finally, the company recognised the forgiveness of both loans received under the US CARES Act PPP program in the amount of $921,315. The first
loan that was received in FY2020 was forgiven, and the second loan that was received in FY2021 is expected to be forgiven sometime in 1H FY2022
which is when the forgiveness process is expected to open.
ALEXIUM INTERNATIONAL GROUP LIMITED
4
DIRECTORS’ REPORT
As at 30 June 2021 the cash position was $2,932,673 (2020: $4,741,251). Cash changes were from normal operating and investing activities. The
company was also able to obtain $460,352 loan from the US CARES Act Paycheck Protection Program which is part of the financing activities on the
cash flow statement.
Material Business Risks
The Company has identified below the specific risks which could impact upon its prospects:
Maintaining strong intellectual property position: Product innovation is key to the Company's business model, thus maintaining a strong intellectual
property position is critical. To ensure this, the Company is attentive to developing next-generation products that are not only well-differentiated in
the market but are also inventive and meet market needs. Maintaining a well-educated and highly experienced technical staff will continue to be a
focus for the Company.
Competition in key markets: The Company has worked diligently on its PCM-based products to ensure that market competition is well understood,
and that the Company’s product portfolio adequately responds to these competitors. This response includes:
• Effective pricing strategies and product innovation;
• Analytical tools and methods that objectively demonstrate the value of the Company’s products versus competitor’s; and
• Identification of market gaps where current commercial technologies are not effective.
Sufficient capital for achieving profitability: The Company monitors and manages its resources to ensure there is sufficient capital to achieve
profitability. Based on the Company’s budget, the Board is confident that the Company’s revenue forecasts, commercial pipeline, and funding options
will ensure that the Company is sufficiently capitalised for the upcoming twelve months.
Commercial risks due to market dynamics: Beyond threats from competitors, the Company identifies changes in the markets themselves as
potential risks and works to mitigate these risks through diversification of its product portfolio, customer driven product innovation, and building a
broader customer base.
Covid-19 Impact: COVID-19 presents business challenges due to the uncertainty of long-term impact to consumer spending and potential supply-
chain disruption in the bedding related industry. The Company is proactively managing the circumstances as it evolves its strategies and processes
to protect employees and stakeholder’s interests.
Likely Developments
In FY2022, Alexium is committed to:
• Further commercialisation of BioCool™ product line which is USDA BioPreferred certified
• Diversify efforts for FR NyCo technology for military uniforms using parallel paths to market
• Commercialisation of the Eclipsys™/ Phonon® product line
• First revenues from Alexiflam® FR Sock
• Significant revenue growth with achieving positive EBITDA; and
• Ensuring a financially strong and stable business through detailed planning, responsible management and transparency of strategy and
outcomes.
The Company’s business strategies to achieve the above goals include:
• Leveraging market position and Company resources for greater market penetration;
• Strengthening and maintaining key relationships supporting the Company’s initiatives; and
• Disciplined and conservative approach to increasing expenditures relative to sales growth.
EVENTS SINCE THE END OF THE FINANCIAL PERIOD
There has not arisen any item, transaction, or event of a material and unusual nature, which in the opinion of the Directors is likely to significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
No other significant event has occurred since the end of the financial year that may have a significant impact on the financial position of the Company.
ENVIRONMENTAL REGULATIONS
The Company’s operations are currently located solely in the United States, and as such are not regulated by any significant environmental regulation
under a law of the Commonwealth or of a State or Territory in Australia. The Directors have considered compliance with the National Greenhouse
and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use.
US Laws concerning the environment that affect or could affect our operations include, among others, the Clean Water Act, the Resource
Conservation and Recovery Act, the Occupational Safety and Health Act, the National Environmental Policy Act, the Toxic Substances Control Act,
ALEXIUM INTERNATIONAL GROUP LIMITED
5
DIRECTORS’ REPORT
regulations promogulated under these Acts, and any other federal, state, or local laws or regulations governing environmental matters. We believe
that the Company is in compliance with these laws and that future compliance will not materially affect our earnings or competitive position.
A key feature of the Company’s product portfolio is their environmentally friendly natures. This focus ensures that there is positive impact to the
environmental standing of its customers. Additionally, the Company’s manufacturing partners are selected in part based on their adherence to
established environmental standards as well as compliance with manufacturing standards such as ISO 9001.
For the period ended 30 June 2021, the Board is not aware of any breach of applicable environmental regulations by the Company.
CORPORATE GOVERNANCE STATEMENT
The documents that govern the Company’s corporate governance framework, including its Constitution, charters and polices are available in the
Corporate Governance section on the Company’s website - www.alexiuminternational.com/about/#corpGov
INFORMATION ON DIRECTORS
The names of the Directors holding office during the period ended 30 June 2021 are set out below, together with details of Directors’ experience,
qualifications, special responsibilities, and other company directorships during the past three financial years.
Mrs Rosheen Garnon
Mrs Garnon has been an independent Non-Executive Director of the Company since 19 September 2018. She was appointed Non-Executive Chair
of the Board of Directors on 31 March 2019.
Experience:
Mrs Garnon has had a distinguished career in the accounting profession as a chartered accountant and taxation advisor. She was a senior partner
with KPMG and held senior executive leadership roles with the firm in Australia and at a global level. Mrs Garnon was a member of the KPMG
Australian Executive Leadership Team for six years as the National Managing Partner for the Taxation Division. She has extensive experience of
working with Boards and C Suite executives.
Mrs Garnon is a Non-Executive Director of Australian Rail Track Corporation, a Non-Executive Director of Resolution Life Australia, and a Non-
Executive Director of Venues NSW. She is Chair of the Board of Taxation, an independent advisory board, that advises the Federal Treasurer and the
Assistant Treasurer on Australia’s taxation system. Her not for profit and volunteer roles include a Non-Executive Director of The Smith Family;
Deputy Chair of the Australia Council for the Arts; a Non-Executive Director of Creative Partnerships Australia; Member of the Finance Committee,
The University of Sydney, and a Non-Executive Director of Women Corporate Directors.
Mrs Garnon’s qualifications include a Bachelor of Economics (Accounting Major) and Bachelor of Laws from the Australian National University. She
is a Fellow of Chartered Accountants in Australia and New Zealand, a Chartered Tax Advisor, and a Graduate of the Australian Institute of Company
Directors.
Qualifications: BEc (Accounting major), LLB, FCA, CTA, GAICD
Other directorships during the last 3 financial years:
Company
Resolution Life Australia Pty Limited
Australian Rail Track Corporation
The Smith Family
Creative Partnerships Australia
Women Corporate Directors Limited
Venues NSW
Australian Council for the Arts
Commenced
Nov-19
Nov-18
Feb-19
May-13
2012
Mar-21
Aug-21
Ceased
Current
Current
Current
Current
Current
Current
Current
Residence: Mrs Garnon is an Australian resident and resides in Sydney, New South Wales, Australia.
Brigadier General Stephen Cheney
General Cheney has been an independent Non-Executive Director of the Company since 15 April 2015. General Cheney is the Chairman of the
Nomination and Remuneration Committee and a member of the Audit Committee and Risk Committee.
Experience:
General Cheney is the former Inspector General of the Marine Corps and Commanding General of Parris Island Marine Base. He is also the former
Deputy Executive Secretary to US Defence Secretary Dick Cheney under President George H.W. Bush. General Cheney sat on Secretary of State John
Kerry’s Foreign Affairs Policy Board and is the President of the Washington D.C. based 501(C)3 policy group The American Security Project as well as
President of their 501(C)(4) company The American Security Action Fund.
Qualifications: BS, Marine Engineering (U.S. Naval Academy); MS, Systems Management (Univ. of Southern California); Graduate, U.S. National War
College; BGen USMC(Retired).
ALEXIUM INTERNATIONAL GROUP LIMITED
6
DIRECTORS’ REPORT
Other directorships during the last 3 financial years:
Company
American Security Project
The American Security Action Fund
Commenced
2007
2017
Ceased
Current
Current
Mr Simon Moore
Mr Moore has been an independent Non-Executive Director of the Company since January 2020 and is currently Chair of the Audit Committee and
a member of the Nomination and Remuneration Committee and the Risk Committee.
Experience:
Mr Moore is the Senior Partner of investment firm, Colinton Capital Partners. Prior to establishing Colinton Capital Partners in 2017, Mr Moore was
a Global Partner of The Carlyle Group having established their operation in Australia in 2005. In his time at The Carlyle Group, he oversaw the Firm’s
investments in and served on the Boards of Directors of Coates Hire, Healthscope and Qube.
Mr Moore’s qualifications include a Bachelor of Commerce (Hons) and a Bachelor of Laws (Hons) from the University of Queensland
Qualifications: BComm (Hons); LLB (Hons) University of Queensland, Brisbane, Australia.
Other directorships during the last 3 financial years:
Company
Palla Pharma - Chairman
AMA Group – Deputy Chairman
Megaport – Deputy Chairman
FirstWave Cloud Technology – Non-executive Director
Commenced
Jul-16
Nov-18
Nov-14
Feb-17
Ceased
Current
Current
Sep-19
Aug-19
Residence: Mr Moore is an Australian resident and resides in Sydney, New South Wales.
Dr Paul H. Stenson
Dr Stenson has been an independent Non-Executive Director of the Company since 15 June 2020. Dr Stenson is the chair of the Risk Committee
and a member of the Audit Committee and Remuneration Committee.
Experience:
Dr Stenson has a distinguished career with the research, development, manufacture, and commercialisation of new materials in the fields of coatings,
adhesives, nonwovens, and pharmaceuticals.
Dr Stenson has been President and CEO of StanChem Inc. since January 2018. StanChem Inc. comprises two companies – StanChem Polymers which
is a manufacturer of water-based polymers for the coatings and adhesives industries, and Albi Protective Coatings which focuses on the specialty
sector of fire protective intumescent paints.
Prior to joining StanChem in 2017, Dr Stenson worked as a global technology director at Axalta Coating Systems. Between 2011 and 2016, Dr Stenson
was the executive vice president of technology and product development at Ahlstrom for nonwoven and specialty high performance paper products.
Prior to joining Ahlstrom, Dr Stenson was the vice president of technology for industrial and packaging coatings at Valspar based in Minneapolis and
Zurich, Switzerland from 1993 until 2011. Dr Stenson is also the chairman of TopChem Pharmaceuticals (Ireland) which is a manufacturer of active
pharmaceutical ingredients.
Dr Stenson earned a PhD in chemistry from University College Dublin, Ireland in 1986 and studied at Institute Chimie Substances Naturelles – Paris,
France.
Qualifications: BSc (Science), PhD (Chemistry).
Other directorships during the last 3 financial years:
Company
TopChem Pharmaceuticals (Ireland) Limited
StanChem Holdings LLC
Residence: Dr Stenson is a citizen of Ireland and the USA and resides in Connecticut, USA
Commenced
Jul-09
Jul-17
Ceased
Current
Current
ALEXIUM INTERNATIONAL GROUP LIMITED
7
DIRECTORS’ REPORT
Dr Robert Brookins
Dr Brookins was appointed as the Company’s Chief Executive Officer and Managing Director on 13 July 2018.
Experience:
Dr Brookins has more than 15 years of experience in organic synthesis and materials chemistry. He received his PhD from the University of Florida
in the areas of synthesis and characterisation of conjugated polyelectrolytes and polymers with an emphasis on developing new polymerisation
methods. Upon completion of his PhD, he worked at the US Air Force Research Laboratory at Tyndall AFB, FL where he developed decontamination
methods for chemical and biological threats and developed novel synthetic routes for reactive and functional surfaces. In 2010, Dr Brookins joined
Alexium where he and his team pioneered new classes of flame retardants for key textile markets. Additionally, his research focuses on phase change
materials, particularly novel application methods and analytical tools.
Dr Brookins has been instrumental in the research and development of the Company’s innovative technologies. Dr Brookins led the development
and commercialisation of Alexium’s phase change material (PCM) platform technologies and the Alexicool® product line, which is the foundation of
the Company’s success in the bedding and top-of-bed markets.
Dr Brookins has, during his 8 years with the Company, been involved in multiple facets of the business, including working with customers on product
design and marketing, analysing markets to assess opportunities, and planning for logistics and supply-chain management. In addition, Dr Brookins
co-invented Alexium’s flame retardant (FR) technologies for military uniforms and formaldehyde-free, flame retardant products for cotton-based
materials. Dr Brookins has been immersed in the operations and strategy of the business and has gained significant experience working within the
senior leadership team of the Company.
Qualifications : PhD, M.A.E. BA, BSc
Other listed directorships in the past 3 financial years: N/A
Other directorships in the past 3 financial years: N/A
Residence: Greer, South Carolina, USA
COMPANY SECRETARY
Mr Mark Licciardo of Mertons Corporate Services Pty Ltd was appointed as Company Secretary effective 01 March 2020. Mertons was established
in 2007 by Mr Licciardo as a specialist corporate governance and company secretarial consultancy. His 35-year corporate career has encompassed
executive roles in banking, finance, funds management, investment, and infrastructure development.
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors and of each Board committee held during the reporting period, and the number of
meetings attended and number of meetings applicable based on appointment/resignation date for each Director were:
Directors
Board of
Directors
Audit
Committee
Risk
Committee
Mrs Garnon
Mr Cheney
Mr Moore
Dr Stenson
Dr Brookins
12/12
12/12
12/12
11/12
12/12
-
5/5
5/5
5/5
-
4/4
4/4
4/4
4/4
-
Remuneration &
Nomination
Committee
6/6
6/6
6/6
2/2
1/1
The Board and committees meet regularly on an informal basis in addition to the above meetings.
ALEXIUM INTERNATIONAL GROUP LIMITED
8
DIRECTORS’ REPORT - REMUNERATION REPORT
REMUNERATION REPORT – AUDITED
The information provided in this Remuneration Report has been audited as required under section 308(3C) of the Corporations Act (Cth).
A. Key Management Personnel (‘KMP’)
For the purposes of this report personnel deemed KMP at any time during the reporting period ended 30 June 2021 are:
Name
Position
Appointed
Resigned
Mrs Rosheen Garnon
Brigadier General Stephen Cheney
Mr Simon Moore
Dr Paul Stenson
Dr Robert Brookins
Mr Jason Lewis
Mr Allen Reihman
Non-Executive Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Chief Executive Officer
Chief Financial Officer
Chief Commercial Officer
-
-
-
-
-
-
-
-
-
-
-
-
-
02-Nov-20
B. Remuneration Policy
The objective of the Company’s remuneration framework is to ensure reward for performance is competitive; appropriate for the stage of
development of the Company and the results delivered, and set to attract and retain suitably qualified and experienced candidates. The
Remuneration and Nomination Committee continuously monitors the remuneration framework with a goal of ensuring that remuneration is aligned
with performance and the creation of value for shareholders. The Company’s remuneration framework aims to ensure that:
•
•
•
•
•
Rewards reflect the competitive global market in which the Company operates;
Incentive remuneration is linked to KPI’s, which are designed to encourage behaviours that are short, medium and long term in nature;
Rewards to executives are linked to the creation of value to shareholders;
Executives are rewarded for both financial and non-financial performance; and
Remuneration arrangements ensure equity between executives and facilitate the deployment of human resources.
The Board seeks independent advice on remuneration policies and practices. In accordance with best practice corporate governance, the structure
of Non-Executive and Executive remuneration is separate and distinct. Remuneration Committee responsibilities are carried out by Brigadier General
Cheney (Chair), Mr Moore, Mrs Garnon and Dr Stenson.
Non-Executive Director Remuneration Policy
Fees and payments to the Non-Executive Directors reflect the demands which are made on and the responsibilities of the Directors. The Non-
Executive Director’s fees and payments are reviewed by the Remuneration Committee to ensure they are appropriate and in line with the market.
Non-Executive Directors receive a fixed fee for service.
The Non-Executive Directors’ fees are determined within an aggregate director’s’ fee pool limit, which is periodically recommended for approval by
shareholders. The maximum currently stands at 375,000 per fiscal year and was approved by shareholders at the 2016 Annual General Meeting.
No retirement benefits are provided other than compulsory superannuation.
Executive Remuneration Policy
The Company’s Managing Director and Executives remuneration packages contain the following key elements:
• Primary benefits – base salary, short-term incentives, pension contributions and medical benefit plan for US based executives.
• Long term incentives – performance rights and shares under the Company’s Performance Rights Plan and Incentive Share Plan. This year, the
company introduced a new Share Appreciation Rights Plan.
External remuneration information provides benchmark information to ensure remuneration is set to reflect the market for a comparable role. Base
fees are reviewed annually to ensure the level is competitive with the market. There is no guaranteed salary increase included.
ALEXIUM INTERNATIONAL GROUP LIMITED
9
DIRECTORS’ REPORT - REMUNERATION REPORT
C. Consequence on Shareholder Wealth
In considering the performance of the Company and the benefits for shareholder wealth, the Remuneration Committee has regard to a range of
indicators in respect of senior executive remuneration and have linked these to the previously described short- and long-term incentives.
The following table presents these indicators over the past five financial years:
Net profit/ (loss)
Dividends declared
Share price as at 30 June (A$)
EPS (cents)
D. Details of Remuneration
2021
2020
2019
2018
2017
(1,445,319)
(6,125,476)
(6,939,521)
(3,691,119)
(9,136,923)
Nil
0.049
(0.23)
Nil
0.060
(1.26)
Nil
0.155
(2.01)
Nil
0.120
(1.22)
Nil
0.560
(3.03)
Details of the remuneration of the KMP of the Company is set out below:
Short-term benefits
Share-based payments
Other Benefits
Salary
and fees
Non-
Monetary
benefits
Short
Term
Incentives
Performance
Rights
Share
Appreciation
Rights
Shares in
lieu of
salary
Super-
annuation
Termination
Benefits
Total
Performance
based % of
Total
2021
Non-Executive
Directors
Mrs Garnon
BGen Cheney
Mr Moore
Dr Stenson
Total
59,101
50,500
69,825
70,000
249,426
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,681
19,500
-
-
8,675
-
-
-
50,181
8,675
Managing Director
Dr Brookins
315,000
14,378
23,625
Total
315,000
14,378
23,625
42,767
42,767
55,125
55,125
Executives
Mr Lewis
Mr Reihman
Total
Total
265,000
14,378
39,750
23,738
46,375
97,044
6,120
-
362,044
20,498
39,750
926,470
34,876
63,375
-
23,738
66,505
-
46,375
-
-
-
-
-
-
-
-
-
-
98,457
70,000
69,825
70,000
308,282
0.0%
0.0%
0.0%
0.0%
450,895
450,895
27.0%
-
-
-
-
-
-
-
-
389,241
116,500
219,664
116,500
608,905
28.2%
0.0%
101,500
50,181
8,675
116,500
1,368,082
Short-term incentive plan (“STI”) is paid in cash for the achievement of a range of financial and non-financial performance criteria based on corporate objectives:
(a) Financial – Revenue Growth and EBITDA;
(b) Non-Financial – numerous and distinct key performance goals approved by the board each having its own weight of the total bonus targets
(c)
FY 21 STIs forfeited due to not meeting performance criteria are:
a. Dr Brookins – 75%
b. Mr Lewis – 50%
Long term incentive plans (“LTI”) are provided with the objectives to:
(a) provide an incentive and to reward, retain and motivate participants.
(b)
(c) provide participants with the opportunity to acquire or increase their ownership interest in the Group.
recognise the abilities, efforts, and contributions of participants to the performance and success of the Group; and
See F. Share Based Compensation section for detail on long term incentives.
Share Appreciation Rights expense is recognized on the current period accounting value of the plan. Realized remuneration will occur only when all vesting
conditions are met.
Shares in lieu of salary to directors were approved by shareholder at the 2020 and 2019 AGMs respectively.
Mr Reihman resigned 2 November 2020.
ALEXIUM INTERNATIONAL GROUP LIMITED
10
DIRECTORS’ REPORT - REMUNERATION REPORT
Short-term benefits
Share-based payments
Other Benefits
Salary and
fees
Non-
Monetary
benefits
Short
Term
Incentives
Performance
Rights
Share
Appreciation
Rights
Shares in
lieu of
salary
Super-
annuation
Termination
Benefits
Total
Performance
based % of
Total
2020
Non-Executive
Directors
Mrs Garnon
BGen Cheney
Mr Moore
Dr Stenson
Ms Poll
Total
72,777
49,637
29,166
2,916
47,290
201,786
-
-
-
-
-
-
-
-
-
-
-
-
Managing Director
Dr Brookins
314,269
15,953
18,900
Total
314,269
15,953
18,900
Executives
Mr Lewis
Mr Reihman
Total
Total
264,039
232,692
496,731
15,953
15,900
12,779
9,320
28,732
25,220
1,012,786
44,685
44,120
-
-
-
-
-
-
42,767
42,767
23,738
22,071
45,809
88,576
-
-
-
-
-
-
-
-
-
-
-
-
30,068
19,944
-
-
-
10,154
-
-
-
-
50,012
10,154
-
-
-
-
-
-
-
-
-
-
50,012
10,154
-
-
-
-
-
-
-
-
-
-
-
-
112,999
69,581
29,166
2,916
47,290
261,952
0.0%
0.0%
0.0%
0.0%
0.0%
391,889
391,889
15.7%
12.4%
11.3%
319,630
276,862
596,492
1,250,333
Short-term incentive plans (“STI”) are paid in cash for the achievement of a range of financial and non-financial performance criteria based on
corporate objectives:
(a) Financial – EBITDA and cash improvements targets
(b) Non-Financial - Securing supply contracts and licensing agreements with key partners and new product commercialisation
(c)
(d) For all KMPs, 80% of STIs were forfeited due to not meeting performance criteria.
Shareholder Value – increase in share price
Performance Rights Plan details are found at Note 16
Shares granted to directors in lieu of salary included 12,705 of total shares awarded under the FY 19 performance rights plan approved by shareholder at the 2018
AGM, and 37,307 approved by shareholders at the 2019 AGM but are not under a performance rights plan.
Ms Poll resigned 01 March 2020.
E. Service Agreements
On appointment, the Non-Executive Directors enter into an agreement with the Company in the form of a letter of appointment. The letter outlines
the Board’s policies and terms, including remuneration relevant to the office of director. Non-Executive directors are compensated for their
contributions to the board and any committees they lead or serve. These agreements can be terminated without cause by either party at any time.
The Company has also entered into service agreements with executives, which contain standard terms and conditions for agreements of this nature,
including confidentiality restraint on competition and intellectual property provisions. These agreements may be terminated by six months’ notice
by either party, or earlier in the event of certain breaches of the terms and conditions. The Company may at its sole discretion terminate the
employment without cause by giving six months written notice or make a payment of six months’ salary in lieu of notice. Remuneration is reviewed
annually and approved by the Board of Directors and includes potential short-term and long-term incentive opportunities as well as salary and other
benefits.
ALEXIUM INTERNATIONAL GROUP LIMITED
11
DIRECTORS’ REPORT - REMUNERATION REPORT
F. Share-based Compensation
Performance Rights
Prior year plans for performance rights vest annually over three-year periods. The rights vested in the current reporting period were based on
prior years objectives and continued employment requirement.
The valuation of performance rights granted and vested to KMP is detailed below:
2021
2020
Granted ($)
Vested ($)
Forfeited ($)
Granted ($)
Vested ($)
Forfeited ($)
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Mr Reihman
Total Executives
Total KMP
-
-
-
-
-
-
42,767
42,767
23,738
-
23,738
66,505
-
-
14,046
14,046
42,767
42,767
-
(24,841)
(24,841)
(24,841)
9,453
8,312
17,765
31,811
23,738
22,071
45,809
88,576
-
-
-
-
-
-
The number of performance rights held during the reporting periods to KMP including their personally related parties is set out below:
2021
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Mr Reihman
Total Executives
Total KMP
2020
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Mr Reihman
Total Executives
Total KMP
Granted
Issued
Forfeited
Balance at
end of year
Vested- not
issued
-
-
-
-
-
-
(471,213)
(471,213)
-
-
610,763
610,763
471,211
471,211
(273,198)
(250,652)
(523,850)
(995,063)
-
(333,228)
(333,228)
(333,228)
367,115
-
367,115
977,879
273,196
-
273,196
744,407
Balance at
start of year
1,081,976
1,081,976
640,313
583,880
1,224,193
2,306,170
Balance at
start of year
Granted
Issued
Forfeited
1,282,584
1,282,584
418,654
418,654
(619,262)
(619,262)
537,829
504,215
1,042,044
2,324,628
281,761
247,737
529,498
948,152
(179,277)
(168,072)
(347,349)
(966,611)
Balance at
end of year
Vested-not
issued
1,081,976
1,081,976
471,214
471,214
640,313
583,880
1,224,193
2,306,169
273,198
250,652
523,850
995,064
-
-
-
-
-
-
ALEXIUM INTERNATIONAL GROUP LIMITED
12
DIRECTORS’ REPORT - REMUNERATION REPORT
Share Appreciation Rights:
The share appreciation rights granted and vested to KMP is detailed below:
Grant
Date
Vesting
Date
Expiry
Date
Opening
Price
FV at
Grant
SARs
Granted
Current Year
Expense
Full
Vesting
Target
Price
23-Sep-20
23-Sep-23
23-Sep-23
A$0.071
A$0.139
A$0.048
6,505,703
55,125
23-Sep-20
23-Sep-23
23-Sep-23
A$0.071
A$0.139
A$0.048
5,473,052
46,375
Dr Brookins, CEO and MD
2021
Mr Lewis, CFO
2021
In the current period, a share appreciation rights plan (“SAR”) was adopted and approved by the Company directors. SAR expense is recognized on
the current period accounting value of the plan. Realized remuneration will occur only when all vesting conditions are met.
Vesting conditions:
(a) 25% compounded annual growth rate (“CAGR”) on the opening share price over of a three-year term. Opening price is determined as the 20-
day volume weighted average price (“VWAP”) from the lodgement of the annual report. Fully vested target price is defined as the 20-day VWAP
from lodgement of the annual report three years after. Partial vesting begins at 10% CAGR and pays 33% of the total SAR grants. CAGR achieved
between 10% and 25% vest SAR grants on a linear scale between 33% and 100%.
(b) Continued employment through the vesting date.
Vested Rights:
(a) Participants are entitled to the amount by which the closing share price exceeds the opening share price.
(b) Shares will be issued in the amount equal to the value in (a) divided by the share closing share price.
Options:
No options were granted to directors during the reportable financial years. The movement in the number of options held by the KMP’s, including
their personally related parties, are set out below:
BGen Cheney
2021
2020
Balance at
start of year
Granted
Exercised
Expired
Balance at
end of year
Vested and
exercisable
750,000
750,000
-
-
-
-
(750,000)
-
-
750,000
-
750,000
ALEXIUM INTERNATIONAL GROUP LIMITED
13
DIRECTORS’ REPORT - REMUNERATION REPORT
Shares:
The value of shares issued or agreed to be issued in lieu of salary during the year was 50,181 (2020: 50,012) which was calculated based on
an issue price of A$0.0598 and was approved at the 2020 Annual General Meeting on 13 November 2020. The issue price represents volume
weighted average closing price of shares on ASX in the fourteen trading days prior to 04 November 2020. The movement in the number of
shares held by the KMP, including their personally related parties, are set out below:
2021
Non-Executive Directors
Mrs Garnon
BGen Cheney
Mr Moore
Dr Stenson
Total Directors
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Mr Reihman
Total Executives
Total KMP
Balance at
start of year
Granted as
remuneration
in lieu of salary
Granted as
remuneration
in lieu of salary
Not yet issued
Received on
conversion of
performance
rights
Other changes
Balance at end
of year
2,206,170
422,248
71,145,234
-
828,185
538,620
-
-
73,773,652
1,366,805
(148,676)
(96,939)
-
-
(245,615)
-
-
-
-
-
(102,221)
-
5,000,000
-
4,897,779
2,783,458
863,929
76,145,234
-
79,792,621
4,719,662
4,719,662
-
-
-
-
471,213
471,213
-
-
5,190,875
5,190,875
179,277
168,072
347,349
78,840,663
-
-
-
1,366,805
-
-
-
(245,615)
273,198
250,652
523,850
995,063
-
-
-
4,897,779
452,475
418,724
871,199
85,854,695
1 Other changes in shares held by KMP include reconciliation of shares purchased in Jan 2020 Rights Issue and shares granted as remuneration in lieu of salary not yet issued on 30 June 2020
2020
Non-Executive Directors
Mrs Garnon
BGen Cheney
Mr Moore
Ms Poll
Total Directors
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Mr Reihman
Total Executives
Balance at start
of year
Granted as
remuneration
in lieu of salary
Granted as
remuneration
in lieu of salary
Not yet issued
Received on
conversion of
performance
rights
Other changes
Balance at end
of year
227,159
219,225
-
28,572
312,344
203,023
-
-
474,956
515,367
3,120,000
3,120,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,666,667
2,206,170
-
422,248
71,145,234
71,145,234
333,333
361,905
73,145,234
74,135,557
619,262
619,262
980,400
4,719,662
980,400
4,719,662
179,277
168,072
347,349
-
-
-
179,277
168,072
347,349
ALEXIUM INTERNATIONAL GROUP LIMITED
14
DIRECTORS’ REPORT - REMUNERATION REPORT
G. Additional Disclosures Relating to KMP
The interests of the Directors and other KMP of the Company in the shares and options is set out below:
Non-Executive Directors
Mrs Garnon
BGen Cheney
Mr Moore
Dr Stenson
Total Directors
Managing Director
Dr Brookins
Total Managing Director
Executives
Mr Lewis
Total Executives
Total Directors and Executives
H. Loans to KMP
No. of
ordinary
shares
No. of
performance
rights
No. of share
appreciation
rights
2,783,458
863,929
76,145,234
-
79,792,621
-
-
-
-
-
-
-
-
-
-
5,190,875
5,190,875
610,763
610,763
6,505,703
6,505,703
452,475
452,475
85,435,971
367,115
367,115
977,878
5,473,052
5,473,052
11,978,755
No loans have currently been provided to KMP of the Company.
THIS IS THE END OF THE AUDITED REMUNERATION REPORT
ALEXIUM INTERNATIONAL GROUP LIMITED
15
DIRECTORS’ REPORT
SHARES UNDER OPTION/WARRANT
As at the date of this report there were 3,829,787 unlisted options and warrants (2020: 5,329,787).
Details of these options are as follows:
Date Options
Granted
31-Dec-19
Expiry Date
29-Mar-23
Exercise price of
shares
A$ 0.06
No. under
options
3,829,787
No option/warrant holder has any right under the options/warrants to participate in any other share issue of the Company or any other entity. The
options/warrants are exercisable at any time after vesting and on or before the expiry date. Refer to Note 16 for details of the movements of the
options during the year and ASX announcements for options exercised after the year end and to the date of this report.
The performance rights granted were Nil (2020: 1,286,182) for the reporting period. These rights have been allocated to staff based on the rules set
forth in the performance rights plan.
INSURANCE OF OFFICERS
During the reporting period, the Company paid a premium in respect of a contract ensuring the Directors and Officers of the Company against a
liability incurred as a Director or Officer to the extent permitted by the Corporations Act 2001 (Cth). Due to a confidentiality clause in the policy, the
amount of the premium has not been disclosed.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their
capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in connection with such proceedings,
other than where such liabilities arise out of conduct involving a willful breach of duty by the officers or the improper use by the officers of their
position or of information to gain advantage for themselves or someone else or to cause detriment to the Company. It is not possible to apportion
the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 (Cth) for leave to bring proceedings on behalf of the economic
entity, or to intervene in any proceedings to which the entity is a party, for the purpose of taking responsibility on behalf of the entity for all or part
of those proceedings. No proceedings have been brought or intervened in or on behalf of the entity with leave of the Court under section 237 of the
Corporations Act 2001 (Cth).
ROUNDING OFF AMOUNTS
Amounts in the financial statements and Directors’ report are presented in US dollars and all values are rounded to the nearest dollar, unless
otherwise stated.
INDEMNITY OF AUDITORS
The Company has agreed to indemnify their auditors, Grant Thornton Audit Pty Ltd, to the extent permitted by law, against any claim by a third party
arising from the Company’s breach of their agreement. The indemnity stipulates that Alexium will meet the full amount of any such liabilities
including a reasonable amount of legal costs.
NON-AUDIT SERVICES
The Company’s auditor, Grant Thornton Audit Pty Ltd corporate tax group has provided services to the Company beginning with the tax year ending
30 June 2021. The Board has considered the non-audit services provided during the year by the auditor and is satisfied that the provision of those
non-audit services during the year by the auditor is compatible with, and did not compromise, the auditor independence requirements of the
Corporations Act 2001.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 (Cth) is attached.
This report is made in accordance with a resolution of the Directors.
Rosheen Garnon
Chair
Dated 27 August 2021
ALEXIUM INTERNATIONAL GROUP LIMITED
16
DECLARATION OF INDEPENDENCE
ALEXIUM INTERNATIONAL GROUP LIMITED
17
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 June 2021
Revenue
Cost of sales
Gross Profit
Other income
Administrative expenses
Sales and marketing expenses
Occupancy expenses
Research and development costs
Other expenses
Operating expenses
Loss before finance costs
Interest expense
Gain/ (Loss) on debt extinguishment
Gain/ (Loss) on embedded derivative
Interest earned
Total finance costs
Loss before tax
Tax expense
Loss for the year after tax
Other comprehensive income - Exchange differences on translation of foreign operations
which may subsequently be reclassified to profit or loss
Total comprehensive loss for the year
Loss for the year attributable to members of the group
Total comprehensive loss for the year attributable to members of the group
Note
3
3
4
15
15
3
7
30-Jun-21
30-Jun-20
US$
7,276,399
(4,634,492)
2,641,907
US$
6,078,857
(3,765,758)
2,313,099
921,315
-
(2,868,073)
(1,058,579)
(520,014)
(814,220)
(116,287)
(5,377,173)
(3,000,901)
(935,575)
(553,061)
(353,285)
(182,525)
(5,025,347)
(1,813,951)
(2,712,248)
(681,865)
-
1,043,912
6,585
368,632
(1,445,319)
-
(1,882,358)
(1,522,003)
(27,523)
18,656
(3,413,228)
(6,125,476)
-
(1,445,319)
(6,125,476)
(233,646)
(1,678,965)
(188,947)
(6,314,423)
(1,445,319)
(1,678,965)
(6,125,476)
(6,314,423)
Basic and diluted loss per share (cents)
8
(0.23)
(1.26)
This consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes to
the financial statement
ALEXIUM INTERNATIONAL GROUP LIMITED
18
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2021
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total Current Assets
Non-Current Assets
Other financial assets
Property, plant and equipment
Intangible assets
Right of use asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Total Current Liabilities
Non-Current Liabilities
Borrowings
Derivative liability
Lease liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
30-Jun-21
30-Jun-20
Note
US$
US$
18
9
10
11
12
11
13
14
15
15
14
16
2,932,673
1,367,592
1,224,090
74,843
5,599,198
17,681
1,055,780
2,961,411
846,106
4,880,978
10,480,176
1,892,523
81,221
1,973,744
2,510,345
949,126
868,564
4,328,035
6,301,779
4,178,397
4,741,251
979,680
921,554
41,500
6,683,985
17,682
1,095,886
2,678,615
1,194,166
4,986,349
11,670,334
905,514
136,753
1,042,267
2,440,230
1,810,494
949,786
5,200,510
6,242,777
5,427,557
66,265,398
(1,694,804)
(60,392,197)
4,178,397
65,943,807
(927,236)
(59,589,014)
5,427,557
This consolidated statement of financial position should be read in conjunction with the accompanying notes to the financial statement
ALEXIUM INTERNATIONAL GROUP LIMITED
19
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 30 June 2021
Balance at 1 July 2020
Loss for the period
Foreign currency translation
Total comprehensive income / (loss)
Transactions with owners in their capacity
as owners:
Expiration of outstanding options
Issued capital
Capital raising costs
Share appreciation rights expense
Performance rights issued
Performance rights exercised
Share-based payment in lieu of salary
Share-based payment for services
Balance at 30 June 2021
Balance at 1 July 2019
Loss for the period
Foreign currency translation
Total comprehensive income / (loss)
Transactions with owners in their capacity as
owners:
Reclass to accumulated losses
Issued capital
Capital raising costs
Performance rights issued
Performance rights exercised
Share-based payments
Warrants outstanding
Balance at 30 June 2020
Contributed
equity
$
65,943,807
Options &
Warrants
Reserve
$
726,070
Performance
Rights
Reserve
$
113,569
Foreign
Currency
Translation
Reserve
$
(1,766,875)
Consolidated
Accumulated
Losses
$
(59,589,014)
Total
$
5,427,557
-
-
-
-
-
-
-
-
-
-
(233,646)
(233,646)
(1,445,319)
-
(1,445,319)
(1,445,319)
(233,646)
(1,678,965)
-
-
(17,364)
(642,136)
-
-
-
113,569
74,250
151,136
66,265,398
-
-
-
-
83,934
-
-
-
141,876
79,907
(113,569)
-
-
221,783
-
-
-
642,136
-
-
-
-
-
-
(2,000,521)
-
-
-
-
(60,392,197)
Contributed
equity
$
54,367,832
Options &
Warrants
Reserve
$
5,634,968
Performance
Rights
Reserve
$
1,021,204
Foreign
Currency
Translation
Reserve
$
(1,577,928)
Consolidated
Accumulated
Losses
$
(59,063,080)
-
-
(17,364)
141,876
79,907
-
74,250
151,136
4,178,397
Total
$
382,996
-
-
-
-
-
-
-
-
-
-
(188,947)
(188,947)
(6,125,476)
-
(6,125,476)
(6,125,476)
(188,947)
(6,314,423)
-
11,768,661
(634,502)
-
427,199
14,617
-
65,943,807
(4,992,832)
-
-
-
-
-
83,934
726,070
(606,710)
-
-
113,569
(427,199)
12,705
-
113,569
-
-
-
-
-
-
-
(1,766,875)
5,599,542
-
-
-
-
-
-
(59,589,014)
-
11,768,661
(634,502)
113,569
-
27,322
83,934
5,427,557
This consolidated statement of changes in equity should be read in conjunction with the accompanying notes to the financial statement
ALEXIUM INTERNATIONAL GROUP LIMITED
20
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
30 June 2021
Cash flow from operating activities
Receipts from customers and other income
Payments to suppliers and employees
Interest received
Interest and other costs of finance paid
Goods & services tax received from ATO
Net cash flows (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Payments for development costs
Proceeds from disposal of property, plant and equipment
Net cash flows (used in) investing activities
Cash flows provided by financing activities
Proceeds from issue of ordinary shares
Proceeds from borrowings
Transaction costs related to issues of shares
Transaction costs related to issues of convertible notes
Repayment of borrowings
Net cash flows from/(used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
2021
US$
7,041,916
(8,136,774)
5,586
(330,539)
28,044
(1,391,766)
(112,463)
(774,033)
4,945
(881,552)
-
468,427
(2,189)
-
(143,265)
322,973
(1,950,345)
4,741,251
141,767
2,932,673
Note
18(b)
18(c)
18(a)
2020
US$
6,422,456
(8,762,060)
18,656
(906,208)
52,021
(3,175,135)
(102,281)
(1,098,264)
430
(1,200,115)
11,768,661
4,071,918
(634,502)
(111,952)
(9,587,714)
5,506,411
1,131,162
3,843,343
(233,254)
4,741,251
This consolidated statement of cash flows should be read in conjunction with the accompanying notes to the financial statement
ALEXIUM INTERNATIONAL GROUP LIMITED
21
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
1. CORPORATE INFORMATION
The consolidated financial statements of Alexium International Group Limited and its subsidiaries (collectively ‘Company’) for the year ended 30
June 2021 were authorised for issue in accordance with a resolution of the directors on 27 August 2021. Alexium International Group Limited
(‘Parent’) is a company limited by shares incorporated and domiciled in Australia, whose shares are publicly traded on the Australian Securities
Exchange under the trading AJX. These financial statements include the consolidated financial statements and notes of Alexium International Group
Limited and its controlled entities. This financial report, the comparative period within, and all future financial reports, are presented in US Dollars.
This presentation aligns the Company’s financial reporting with the nature of the business operations which primarily occur in the United States. The
nature of the operations and principal activities of the Company are described in the Directors’ Report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001 (Cth).
The Company is a for-profit entity for the purpose of preparing the financial statements. Australian Accounting Standards set out accounting policies
that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events, and
conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with
International Financial Reporting Standards as issued by the International Accounting Standards Board. Material accounting policies adopted in the
preparation of the financial statements are presented below. They have been consistently applied unless otherwise stated. The financial statements
have been prepared on an accrual basis and are based on historical costs, modified where applicable by the measurement at fair value. Separate
financial statements for the Company as an individual entity are no longer presented as the consequence of a change to the Corporations Act 2001
(Cth), however, required financial information for the Company as an individual entity is included in Note 23.
(b) New and amended standards adopted by the Company in this financial report
There were no new or revised Standards and Interpretations issued by the AASB that were adopted by the Company that are relevant to its
operations and effective for the reporting period.
(c) Impact of standards issued but not yet applied by the Company
There will be no new or revised Standards and Interpretations issued by the AASB that will be adopted by the Company that are relevant to its
operations and effective for the upcoming reporting period.
(d) Company Accounting Policies
Fair Value of Assets and Liabilities
The Company 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 Australian Accounting Standard. Fair value is the price the Company would receive to sell an asset or would have to pay to transfer a
liability in an orderly (i.e. unforced) transaction between independent, knowledgeable, and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments
to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are
not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible,
the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest
volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at
the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer
the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into
account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset
in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based payment arrangements) may be valued,
where there is no observable market price in relation to the transfer of such financial instruments, 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.
ALEXIUM INTERNATIONAL GROUP LIMITED
22
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
Valuation techniques
In the absence of an active market for an identical asset or liability, the Company selects and uses one or more valuation techniques to measure the
fair value of the asset or liability. The Company selects a valuation technique that is appropriate in the circumstances and for which sufficient data
is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the Company are consistent with one or more of the following valuation approaches:
• Market approach uses prices and other relevant information generated by market transactions for identical or similar assets or liabilities.
• Income approach converts estimated future cash flows or income and expenses into a single discounted present value.
• Cost approach reflects the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including
assumptions about risks. When selecting a valuation technique, the Company gives priority to those techniques that maximise the use of observable
inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual
transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable,
whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are
considered unobservable.
Fair value hierarchy
AASB 13: Fair value measurement requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value
measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised
into as follows:
Level 1: Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3: Measurements based on unobservable inputs for the 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. If all significant inputs required to measure fair value are observable,
the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included
in Level 3.
The Company would change the categorisation within the fair value hierarchy only in the following circumstances:
• if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
• if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Company recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out
of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.
(e) Principles of Consolidation
The consolidated financial statements incorporate all assets, liabilities, and results of the Company. 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 can affect those returns
through its power over the entity. A list of the subsidiaries is provided in Note 21.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Company from the date on which control
is obtained by the Company. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances
and unrealised gains or losses on transactions between Company 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 Company.
Equity interests in a subsidiary not attributable, directly, or indirectly, to the Company are presented as “non-controlling interests". The Company
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. After
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.
(f) Foreign currency translation
The consolidated financial statements are presented in United States Dollars ($). The functional currency of the Parent is Australian Dollar (A$) and
the functional currencies of the subsidiaries are the Pound Sterling and the US Dollar.
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the reporting date and exchange
differences are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the
ALEXIUM INTERNATIONAL GROUP LIMITED
23
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value was determined. All resulting exchange differences are recognised on other comprehensive income.
As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation currency at the rate of exchange ruling at
the reporting date and the statements of comprehensive income are translated at the weighted average exchange rates for the year. All resulting
exchange differences are recognised on other comprehensive income.
On disposal of a foreign entity, the cumulative exchange differences are reclassified to profit or loss as part of the gain or loss on sale.
(g) Property, plant, and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses. Where parts of an item
of property, plant and equipment have different useful lives, they are accounted for as separate items.
Leased assets
Right-of-use assets under lease agreements are initially measured at the present value of future lease payments using an incremental borrowing
rate. Book value is stated as net present value less accumulated depreciation. Upon completion of the certain finance lease terms, ownership of the
subject asset is transferred to the Company which begins recognition as property, plant, and equipment.
Subsequent costs
The Company recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that
cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the consolidated entity and the cost of the
item can be measured reliably. All other costs are recognised in profit or loss as an expense as incurred.
Depreciation
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each asset.
The estimated useful lives in the current and comparative years are as follows:
Asset Type
Computer equipment
Machinery and equipment
Furniture, fixtures and office equipment
Leased plant and equipment
Years
3 years
3 to 15 years
3 to 10 years
Shorter of the lease term or the useful life
The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually.
(h) Intangible assets
Acquired intangible assets
Intangible assets acquired separately are capitalised at cost. Following initial recognition, the cost model is applied to the class of intangible assets
whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives, which is considered five years, as these assets are
considered finite. Other intangible assets that are acquired by the Company are stated at cost less accumulated amortisation and impairment losses.
Internally Generated Intangible Assets
Expenditure on internally generated goodwill and brands is recognised in the statement of comprehensive income as an expense as incurred.
Expenditure on the research phase of projects to develop new specialty chemicals is recognised as an expense as incurred. Costs that are directly
attributable to a project’s development phase are recognised as intangible assets, provided they meet the following recognition requirements:
• Development costs can be measured reliably;
• Project is technically and commercially feasible,
• The Company intends to and has sufficient resources to complete the project,
• The Company has the ability to use or sell the asset; and
• The asset will generate probable future economic benefits.
Costs directly attributable to capitalised development include employee expenses incurred on technology development, external testing fees, and
product trial costs. Costs not meeting these criteria are expensed as incurred. The ultimate recoupment of costs carried forward for capitalised
development is dependent on the successful development and commercialisation of the Company’s technology. Any internally generated asset that
is not yet complete and not fully amortised is subject to impairment testing.
Subsequent expenditure
Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditures are expensed as incurred.
Amortisation
Goodwill and intangible assets with an indefinite life are systematically tested for impairment at each annual reporting date. Capitalised
development costs, patents, and trademarks with a finite life are amortised based on estimated future economic life. Amortisation charges are
included as an expense in the consolidated statement of profit or loss and other comprehensive income.
ALEXIUM INTERNATIONAL GROUP LIMITED
24
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the profit or loss. The useful lives of intangible assets are assessed to be either finite or indefinite. Where
amortisation is charged on assets with finite lives, this expense is taken to the profit or loss. Intangible assets are tested for impairment where an
indicator of impairment exists. Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted as
appropriate.
(i) Impairment of assets
At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment
exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the
asset is considered impaired and is written down to its recoverable amount to profit or loss.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the asset’s value in
use cannot be estimated to be close to its fair value less cost to sell and it does not generate cash inflows that are largely independent of those from
other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
(j) Trade and other receivables
Trade receivables are recognised and carried at original invoice amount less any expected credit losses (ECL) determined under the simplified
approach to accounting for trade and other receivables as detailed in AASB 9. These are the expected shortfalls in contractual cash flows, considering
the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external
indicators, and forward-looking information to calculate the expected credit losses. The Group assess impairment of trade receivables on a collective
basis as they possess shared credit risk characteristics they have been grouped based on the days past due.
(k) Determination and presentation of operating segments
For management purposes, the Company is organised into one main operating segment which involves the development and commercialisation of
its proprietary flame retardant and phase change material technologies and selling its specialised chemistry to customers. All the Company’s activities
are interrelated, and discrete financial information is reported to the Chief Executive Officer as a single segment. Accordingly, all significant operating
decisions are based upon analysis of the Company as one segment. The Company has applied AASB 8 Operating Segments from 01 July 2009. AASB
8 requires a ‘management approach’ under which segment information is presented on the same basis as that used for internal reporting purposes.
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Company’s other components. An operating segment’s results are
reviewed regularly by the Board to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available. The Board considers the business from both a product and a geographical perspective and takes the view that the
Company operates under a single operating segment.
(l) Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash on hand and short-term deposits. For the purposes of the Statement of Cash Flows,
cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
(m) Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and
substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled, or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance
with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).
Financial assets, other than those designated and effective as hedging instruments, are classified into the following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive income (FVOCI).
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other
financial items, except for impairment of trade receivables which is presented within other expenses.
ALEXIUM INTERNATIONAL GROUP LIMITED
25
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
• they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of
discounting is immaterial. The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value
through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal
and interest are accounted for at FVTPL. All derivative financial instruments fall into this category, except for those designated and effective as
hedging instruments, for which the hedge accounting requirements apply (see below).
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this category
are determined by reference to active market transactions or using a valuation technique where no active market exists.
Financial assets at fair value through other comprehensive income (FVOCI)
The Company accounts for financial assets at FVOCI if the assets meet the following conditions:
• they are held under a business model whose objective it is “hold to collect” the associated cash flows and sell and
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Any gains or losses recognised in other comprehensive income (OCI) will be recycled upon derecognition of the asset. The Company does not have
any financial assets categorised as FVOCI.
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognise expected credit losses – the ‘expected credit loss (ECL)
model’. Instruments within the scope of the ECL model included loans and other debt-type financial assets measured at amortised cost and FVOCI,
trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial guarantee contracts (for the
issuer) that are not measured at fair value through profit or loss.
Recognition of credit losses is not dependent on the Company first identifying a credit loss event. Instead, the Company considers a broader range
of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and
supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
• Financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’)
• Financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’).
• ‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-month expected credit losses’ are
recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second category.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial
instrument.
Trade and other receivables and contract assets
The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss
allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any
point during the life of the financial instrument. In calculating, the Company uses its historical experience, external indicators, and forward-looking
information to calculate the expected credit losses using a provision matrix. The Company assess impairment of trade receivables on a collective
basis as they possess shared credit risk characteristics they have been grouped based on the days past due. At the reporting date expected lifetime
credit losses are Nil.
Classification and measurement of financial liabilities
The Company’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are initially
measured at fair value, and, where applicable, adjusted for transaction costs unless the Company designated a financial liability at fair value through
profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than
derivative financial instruments that are designated and effective as hedging instruments). All interest-related charges and, if applicable, changes in
an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income.
(n) Embedded Derivative
The Company has issued liability classified embedded derivatives in connection with its convertible debt. An embedded derivative is a component
of a hybrid instrument that also includes a non-derivative host contract with the effect that some of the cash flows of the combined instrument vary
ALEXIUM INTERNATIONAL GROUP LIMITED
26
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
in a way like a standalone derivative. The embedded derivative is separated from the host contract and accounted for as a derivative if the economic
characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract. The
embedded derivative is measured at fair value with changes in value being recorded in profit or loss.
(o) Trade and other payables
Trade and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the Company prior to the end
of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these
goods and services. The amounts are unsecured and are usually paid within 60 days of recognition.
(p) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) because of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement
is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the
statement of comprehensive income, net of any reimbursement. Provisions are measured at the estimated expenditure required to settle the
present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the
present obligation. Where there are several similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations. Provisions are discounted to their present values, where the time value of money is material.
(q) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(r) Revenue recognition
In accordance with the standard, revenue is recognised and measured when the entity satisfies a performance obligation by transferring a promised
good or service (i.e., an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset [AASB 15.31] and no
additional goods or services, warranties, repurchase agreements, or public return policies, or other limitations exist that that would not allow the
Company to consider its performance completed at this time of transfer. The Company considers the transfer complete in line with “FOB Shipping
Point” Incoterms and recognises the completion of this performance obligation when the finished product is shipped at which time revenue is
recognised.
Sale of goods
Revenue is recognised at a specific point in time and measured when the entity satisfies a performance obligation by transferring a promised good
or service (i.e., an asset) to a customer. AASB 15 - Revenue from Contracts with Customers outlines the accounting requirements for when and how
revenue is recognised using one core principle: “Recognise revenue to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. “This is accomplished by using a 5-
step recognition process consisting of the following:
1.)
2.)
Identify the contract - The Company utilises a set of criteria to clearly identify the existence of contracts with customers, which includes contract
approval by both parties, identification of each parties’ rights and commitments, determination of payment terms, presence of commercial
substance and a probability consideration will be collected.
Identify the performance obligations - The Company has identified the sole performance obligation of customer contracts to be the complete
transfer of the goods to the customer. In accordance with AASB 15.24, there are no additional goods or services, warranties, repurchase
agreements, or public return policies, or other limitations of the seller that would not allow the Company to consider its performance completed
at this time of transfer. The Company considers the transfer complete in line with “FOB Shipping Point” Incoterms and recognises the
completion of this performance obligation when products are shipped.
3.) Determine the transaction price - The Company considers the transaction price to be the amount of consideration to which it expects to be
entitled in exchange for transferring promised goods or services to a customer. As and when a performance obligation is satisfied the Company
recognises revenue to the extent of the transaction price allocated to that performance obligation considering the impact of constraints arising
from variable consideration [AASB 15.46].
4.) Allocate the transaction price to separate performance obligations - Given that there is a single performance obligation to each contract, and
the price is clearly identified in the contract, the Company allocates the full contract price to the transfer of goods discussed in Step 2, except
for combined contracts noted as having variable consideration.
5.) Recognise revenue when each obligation is satisfied - at contract inception the Company has determined that the sole performance obligation
is the complete transfer of goods to the customer. The Company must then determine the specific point in time at which it is appropriate to
recognise revenue for the contract. AASB 15 states that an entity shall consider indicators of the transfer of control, which include, but are not
limited to, the following
• Company has a present right to payment for the asset;
• Customer has legal title to the asset;
• Company has transferred physical possession of the asset;
ALEXIUM INTERNATIONAL GROUP LIMITED
27
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
• Customer has the significant risks and rewards of ownership of the asset; and
• Customer has accepted the asset.
Management recognises that the application of the control criteria requires judgment and there are various factors to consider, as described above.
Accordingly, management believes that control is transferred in accordance with the shipping terms, as this is the point in time that the customer
obtains legal title, when customer obtains the risk and rewards of ownership, and when the customer has an obligation to pay for the asset. The
standard discusses that an entity should consider whether there is any agreement to repurchase the asset transferred to the customer, or a
component. This topic is not applicable to the Company as it is not the practice nor discussed in any contracts. Management recognises that contracts
and arrangements could change as the Company enters new markets and expands its customer base. Management will continue to monitor any
changes to ensure the accounting is in line with the context of AASB 15.
Interest and dividends
Interest income is recorded when earned based on cash balances. Interest expenses are reported on an accrual basis using the effective interest
method. Dividends are recognised at the time the right to receive payment is established.
(s) Income and other taxes
Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities
and their carrying amounts for the financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
• Except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
• In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except where
the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.
• Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to
the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of
unused tax assets and unused tax losses can be utilised:
• Except where the deferred income tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; and
• In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax
assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit
will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred income tax
assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised, or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date. Income taxes relating to
items recognised directly in equity are recognised in equity and not in the statement of comprehensive income.
Other taxes
Revenues, expenses, and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of
financial position. Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing
and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. Commitments and
contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(t) Earnings per share
Basic earnings per share (‘EPS’) is calculated by dividing the net profit attributable to members of the parent entity for the reporting year, after
excluding any costs of servicing equity (other than ordinary shares and converting preference shares classified as ordinary shares of EPS calculation
purposes), by weighted average number of ordinary shares of the Company.
(u) Employee benefits
Termination benefits
Termination benefits are recognised as an expense when the Company is committed demonstrably, without realistic possibility of withdrawal, to a
formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits because of an offer
made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made
an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits
are payable more than 12 months after the reporting date, then they are discounted to their present value.
ALEXIUM INTERNATIONAL GROUP LIMITED
28
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
Long-Term Employee Benefits
The Company’s liabilities for annual leave are included in other current liabilities. Any adjustments and changes in assumptions are recognised in
profit or loss in the periods in which the changes occur. The Company presents employee benefit obligations as current liabilities in the statement
of financial position if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period,
irrespective of when the actual settlement is expected to take place.
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after
the end of the period in which the employees render the related service. Examples of such benefits include wages and salaries, non-monetary
benefits and accumulating sick leave. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the
liabilities are settled. There are no employee-benefit expenses recognised within cost of sales.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase
in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as an expense is adjusted to
reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount
ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the
vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to
reflect such conditions and there is no true-up for differences between expected and actual outcomes.
(v) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and condition are
accounted for, as follows:
• Raw materials: average cost; and
• Finished goods and work in progress: cost of direct materials and manufacturing charges from contract manufacturer.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale.
(w) Significant accounting judgements, estimates and assumptions
The preparation of the Company’s consolidated financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods. The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances
arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Share-based payments
The Company initially measures the cost of cash-settled transactions with employees using a binomial model to determine the fair value of the
liability incurred. The Company initially measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most
appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most
appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about
them. For cash-settled share-based payment transactions, the liability needs to be remeasured at the end of each reporting period up to the date of
settlement, with any changes in fair value recognised in profit or loss. This requires a reassessment of the estimates used at the end of each reporting
period. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 17.
Fair value of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (DCF) and Black-Scholes option
pricing models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. The assessed fair
values of the embedded derivatives were determined using a Black-Scholes option pricing model which approximates the results that would have
been achieved by using a binomial lattice. The model considers the expected price volatility of the underlying instrument, expected dividend yield
and the risk-free interest rate. The twelve-month share price history has been used to determine the expected price volatility. Changes in
assumptions in relation to these factors could affect the reported fair value of financial instruments. See Note 22(f) for further disclosures.
Intangible Assets
The Company assesses at initial recognition whether an internally developed asset has met the recognition requirements established in AASB 138
and measures the direct and indirect costs of development using several estimates and assumptions. After capitalisation, management monitors
whether the recognition requirements continue to be met and whether there are any indicators that capitalised costs may be impaired. In assessing
impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an
interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results, the determination of a suitable discount
rate, and the appropriate classification of cash generating units. See Note 12 for further disclosures.
ALEXIUM INTERNATIONAL GROUP LIMITED
29
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
(x) Going Concern
These financial statements have been prepared based on going concern, which contemplates the continuity of normal business activities and the
realisation of assets and settlement of liabilities in the ordinary course of business. The director’s assessment is based on forecasted growth in
commercial sales, which the Company expects to continue over the next twelve months.
During the financial year ended 30 June 2021, the Company generated a loss of 1,445,319 (2020: 6,125,476) and the Company has used cash in
operating and investing activities of 2,273,318 (2020: 4,375,250). As of 30 June 2021, the Company had net assets of 4,178,397 (2020: 5,427,557)
and a cash balance of 2,932,673 (2020: 4,741,251).
3. REVENUE & OTHER INCOME
Revenue is recognised at a specific point in time and measured when the entity satisfies a performance obligation by transferring a promised good
or service (i.e., an asset) to a customer. Other income is exclusively the forgiveness of two borrowings received under the US CARES Act stimulus
package. See Other Borrowings in Note 15 for details.
Sale of goods
Rebates
Total
Interest earned
Other income
4. ADMINISTRATIVE EXPENSES
Employee benefits expense
Professional fees
Other administrative expenses
Insurance expenses
Amortisation
Total
5. DEPRECIATION AND AMORTISATION EXPENSE
Depreciation
Amortisation
Total
6. AUDITORS’ REMUNERATION
Amount received or due and receivable by Grant Thornton Australia for:
(a) an audit or review of the financial report of the Company
(b) Tax compliance services in relation to the entity and any other entity in the Company
(b) Other services in relation to the entity and any other entity in the Company
Total auditor remuneration
2021
7,457,229
(180,830)
7,276,399
6,585
921,315
2021
2,103,142
398,910
153,172
212,849
-
2,868,073
2021
423,055
487,915
910,970
2020
6,422,859
(344,002)
6,078,857
18,656
-
2020
2,168,879
482,245
146,949
177,080
25,748
3,000,901
2020
430,526
158,041
588,567
2021
2020
103,450
13,352
6,420
123,222
141,770
7,954
7,132
156,856
ALEXIUM INTERNATIONAL GROUP LIMITED
30
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
7. TAXATION
(a) Income tax recognised in profit and loss
Profit /(loss) before tax
Prima facie tax on operating loss before income tax at 30.0%
Deferred tax asset not recognised
Temporary differences not recognized
Tax effect of permanent differences:
Other
Meals and entertainment
Interest on convertible note
Fair value movement
Share-based payments expense
Effective interest on convertible note
Differences in jurisdictional tax rates
Tax losses not brought to account
Income tax benefit attributable to reversal of deferred tax liability on intangible assets
(b) Deferred tax assets
Deferred tax assets at 30 June brought to account:
Accrued expenses
Expenses deducted over 5 years
Income tax losses
(c) Deferred tax liability
Unrealised FX
Basis difference on fixed assets
(d) Net deferred tax position
Deferred tax assets
Deferred tax liabilities
Net deferred tax position
(e) Deferred tax assets not recognised
Unrealised FX
Accrued and prepaid expenses
Other
Fixed assets
263A costs
Expenses deducted over 5 years
Charitable contributions
Income tax losses
Net deferred tax position
2021
2020
(1,445,319)
(6,125,476)
(433,596)
(1,837,643)
(147,956)
(387,962)
(181,912)
-
66,505
(294,536)
-
100,090
134,269
757,136
-
-
-
683,707
683,707
683,707
-
683,707
683,707
683,707
-
1,223,806
101,422
60,656
3,957
2,072
32,347
-
11,727,227
13,151,487
558,706
3,216
329,749
8,196
-
-
235,152
1,090,586
-
25,909
58,734
2,021,908
2,106,551
1,575,652
530,899
2,106,551
2,106,551
2,106,551
-
-
58,840
23,587
-
1,271
-
20,107
9,255,446
9,359,251
No income tax is payable by the Company. The Directors have considered it prudent not to bring to account the future income tax benefit of
income tax losses until it is probable of deriving assessable income of a nature and amount to enable such benefit to be realised. The Company
has estimated unrecouped income tax losses of 64,480,646 (2020: 52,753,419) which may be available to offset against taxable income in future
years. The benefit of these losses and timing differences will only be obtained if there is sufficient probability that taxable profits will be generated
by the Company in future periods. Deferred tax assets and liabilities which relate to income taxes levied by the same taxation authority are offset
where the Company intends to settle those tax assets and liabilities on a net basis.
ALEXIUM INTERNATIONAL GROUP LIMITED
31
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
8. EARNINGS PER SHARE
Classification of securities as ordinary shares
The Company has only one category of ordinary shares included in basic earnings per share.
Classification of securities as potential ordinary shares
There are currently no securities to be classified as dilutive potential ordinary shares on issue.
Weighted average number of ordinary shares
Basic loss ($)
Basic / Diluted loss per share (cents)
2021
2020
637,295,944
486,421,703
(1,445,319)
(0.23)
(6,125,476)
(1.26)
The above calculation does not include instruments that could potentially dilute basic earnings per share in the future as these instruments were
anti-dilutive in the years presented. A summary of such instruments is as follows:
Equity securities
As the Company has incurred a loss for the year, the diluted earnings per share is therefore disclosed as the same as the basic earnings per share.
Options over ordinary shares
Warrant options
Performance rights
Total
9. TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables
Total
2021
Number
-
3,829,787
915,625
4,745,412
2021
1,357,413
10,179
1,367,592
2020
Number
1,500,000
3,829,787
1,286,182
6,615,969
2020
944,496
35,184
979,680
None of the trade and other receivables are past due or impaired. All amounts are short term. The net carrying value of trade receivables is
considered a reasonable approximation of fair value.
10. INVENTORIES
Raw materials
Finished goods
Provision for obsolescence
Total
2021
734,583
492,493
(2,986)
1,224,090
2020
500,566
426,453
(5,465)
921,554
ALEXIUM INTERNATIONAL GROUP LIMITED
32
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
11. PROPERTY, PLANT AND EQUIPMENT
Cost
Balance at 30 June 2019
Initial application of AASB 16
Additions
Disposals
Transfers
Balance at 30 June 2020
Additions
Disposals
Transfers
Balance at 30 June 2021
Depreciation and impairment
Balance at 30 June 2019
Initial application of AASB 16
Depreciation
Disposals
Transfers
Balance at 30 June 2020
Depreciation
Disposals
Transfers
Balance at 30 June 2021
Net book value
At 30 June 2019
At 30 June 2020
At 30 June 2021
Furniture and
equipment
Right-of-use
equipment
Right-of-use
building
1,692,151
-
94,122
(62,597)
328,876
2,052,552
95,374
(18,381)
194,122
2,323,667
594,114
-
199,394
(59,100)
222,258
956,666
217,874
(18,086)
111,433
1,267,887
1,098,037
1,095,886
1,055,780
1,006,817
-
-
(328,876)
677,941
-
(164,142)
(194,122)
319,677
377,853
-
121,683
-
(222,258)
277,278
95,733
(103,953)
(111,433)
157,625
628,964
400,663
162,052
-
902,952
-
-
-
902,952
-
-
-
902,952
-
-
109,449
-
-
109,449
109,449
-
-
218,898
-
793,503
684,054
Total
2,698,968
902,952
94,122
(62,597)
-
3,633,445
95,374
(182,523)
-
3,546,296
971,967
-
430,526
(59,100)
-
1,343,393
423,056
(122,039)
-
1,644,410
1,727,001
2,290,052
1,901,886
ALEXIUM INTERNATIONAL GROUP LIMITED
33
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
12. INTANGIBLE ASSETS
Cost
Balance at 30 June 2019
Additions
Disposals
Balance at 30 June 2020
Additions
Disposals
Balance at 30 June 2021
Amortization and impairment
Balance at 30 June 2019
Amortisation
Disposals
Foreign exchange movements
Balance at 30 June 2020
Amortisation
Disposals
Balance at 30 June 2021
Net book value
At 30 June 2019
At 30 June 2020
Balance at 30 June 2021
Patents and
trademarks
40,522
-
-
40,522
-
(40,522)
-
Capitalised
development
costs
1,686,291
1,098,264
-
2,784,555
774,033
-
3,558,588
10,493
25,748
-
92
36,333
-
(36,333)
-
1,583
108,546
-
-
110,129
487,914
(866)
597,177
Software
75,377
-
(40,000)
35,377
-
(35,377)
-
11,630
23,747
-
-
35,377
-
(35,377)
-
Total
1,802,190
1,098,264
(40,000)
2,860,454
774,033
(75,899)
3,558,588
23,706
158,041
-
92
181,839
487,914
(72,576)
597,177
30,029
4,189
1,684,708
2,674,426
63,747
-
1,778,484
2,678,615
- 2,961,411
-
2,961,411
Impairment testing for intangible assets
Intangible assets are tested for impairment annually when the asset is not yet available for use or more frequently when an indication of impairment
arises during the reporting period.
An asset is impaired when the carrying amount exceeds the recoverable amount. When this occurs an impairment loss is recognised for the amount
by which the carrying amount of an asset exceeds its recoverable amount. Management has used AASB 136 Impairment of Assets as the basis for
impairment testing.
Recoverable amount is the higher of fair value less costs of disposal and value-in-use and has been determined for assets not being amortised. To
determine recoverable amount, management have used a fair value less costs of disposal approach. The fair value has been calculated using a
replacement costs methodology through a cost model.
Management has set out to determine the replacement cost of the technology, which approximates the price that would be received for the asset
based on the cost to a market participant to acquire or construct a substitute asset of comparable utility. In constructing a replacement cost
assessment, the Company considered all necessary components required for a market participant to construct an asset of comparable utility. These
costs include, internal development expenses (employee costs), analytical equipment, external testing and trial fees, and research lab overhead. The
determined replacement value under the cost method, indicates there is no impairment on the asset.
For assets ready for use and being amortised, management has assessed for indications of impairment according to AASB 136 paragraphs 12-14,
which include considerations of external and internal sources of information. The series of indications management considered included: significant
changes with adverse effects having taken place, evidence of obsolescence, evidence of economic performance being worse than expected, and
other observable indications that an assets value has declined significantly during the period. No impairment loss has been recognised for the
reporting period.
ALEXIUM INTERNATIONAL GROUP LIMITED
34
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
13. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Interest payable
Total
2021
1,331,437
522,324
38,762
1,892,523
2020
230,846
639,159
35,509
905,514
Trade and other payable amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and
which are unpaid. The amounts are unsecured and are usually paid within 60 days or recognition.
14. LEASE LIABILITIES
Lease payments during the period:
Principal payments
Interest
Variable lease payments not included in measurement of lease liability
Total
Minimum future rental payments under non-cancellable leases:
Current
Non-current
Total
Present value of future minimum rental payments under leases:
Current commitments:
Lease liability
Finance charges
Total
Non-current commitments:
Lease liability
Finance charges
Net present value
Total
2021
2020
146,249
99,549
33,713
279,511
178,319
112,899
33,081
324,299
169,672
1,115,585
1,285,257
235,484
1,285,257
1,520,741
81,221
88,452
169,673
868,564
247,021
1,115,585
1,285,258
136,753
98,731
235,484
949,786
335,471
1,285,257
1,520,741
The Company leases facilities, office and lab equipment, and IT infrastructure under various agreements. These assets are used for administration
and operational activities with remaining lease terms of 1-7 years. Where a right to control an asset specified in a lease agreement exists, the
Company recognises a right-of-use asset, representing its right to use the underlying leased asset, and a lease liability representing its obligation to
make lease payments. Lease liabilities are recognised similarly to financial liabilities with cash repayments recorded into a principal portion and an
interest portion and presents them as such in the statement of cash flows. Assets and liabilities arising from a lease are initially measured on a
present value basis. The measurement includes non-variable lease payments expected to be incurred for the term of the lease. The term of the lease
is determined by reference to non-cancellable periods and those periods subject to exercise of an option, where that option is considered reasonably
certain to be exercised.
ALEXIUM INTERNATIONAL GROUP LIMITED
35
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
15. BORROWINGS
Convertible note carrying value
Other borrowings
Principal balance outstanding
2021
2,510,345
-
2,510,345
2020
1,979,878
460,352
2,440,230
Convertible note
On 24 December 2019, the Company entered a convertible note, secured by the Company’s assets, with an institutional lender. The $3.5 million
(A$5.15M) note carries a four-year term and 6.0% annual interest rate with coupon interest payments due quarterly. The note is convertible into
ordinary shares at the holder’s discretion and with shareholder approval. The proceeds from the funding were used to pay down the loan facility
originated on 30 September 2017, which carried a higher interest rate and was due to expire on 30 September 2020.
The Borrowings have been measured at amortised cost in accordance with AASB 9 and gain or loss is recognised in profit or loss through the
amortisation process and when the borrowings are derecognised. The Company allocates interest payments over the term of the borrowings at a
constant rate on the carrying value. The carrying balance over the remaining life of the facility will increase to the current principal balance of $3.9
million.
Convertible note carrying value
Remaining amortisation of effective interest
Foreign currency exchange rate impact
Principal balance outstanding
2021
2,510,345
1,101,222
254,060
3,865,627
2020
1,979,878
1,631,688
(70,370)
3,541,197
Other borrowings
On 06 May 2020, the Company was granted a loan in the amount of 460,352 funded by the Small Business Administration and administered by Wells
Fargo. Under Division A, Title I of the CARES Act enacted 27 March 2020. The program called Paycheck Protection Program was created with the goal
to support small businesses during the COVID-19 pandemic. On 29 January 21, the Company received a second loan in the amount of 468,428 under
a new phase of the economic stimulus package.
Under the program, loans were designed to be up to 100% forgivable if the borrower maintains employment levels and payrates over the selected
covered period. After submission of all necessary documentation, the loan that originated on 06 May 2020 was fully forgiven on 15 April 2021. At
the forgiveness date, the Company recognised the forgiven principal balance as Other Income in accordance with the AASB 120 Accounting for
Government Grants and Disclosing Government Assistance.
Forgiveness has not been applied for on the loan originated on 29 January 2021 as of the close of the reporting period. However, based on the
forgiveness of the first loan and an understanding of the terms of the program, the Company has determined there is “reasonable assurance that
the entity will comply with the conditions attaching to it” and therefore this second loan will also be forgiven. The Company has adopted the income
approach to presentation as all related expenses intended to be compensated for fall in the current reporting period and all conditions and
contingencies have been fulfilled. The Company has recognised the full balance of the loan as Other Income on 30 June 2021 in accordance with the
AASB 120. No other forms of government assistance have been received.
Derivative liability
The current and previous borrowings are considered hybrid instruments with host and derivative liability components. When initially recorded the
derivative is measured at fair value and separated from the host liability. Subsequently changes in value are recorded in profit or loss upon
revaluation. This has been valued using a Black-Scholes option pricing model. Pricing model inputs of the current derivative include exercise price
(A$0.075), risk-free rate (0.350%), remaining term (2.5 years) and volatility (82.2%).
Derivative liability
Gain/ (Loss) on embedded derivative
2021
949,126
1,043,912
2020
1,810,494
(27,523)
Loss on debt extinguishment
The previous loan with a 9,000,000 balance was paid in full on 31 December 2019 and was measured at the amortised cost using the effective
interest method. The residual value was amortised to face value over the life of the note. On extinguishment, the liability was derecognised and the
difference between the carrying amount of the extinguished liability and the consideration paid is recognised in profit or loss. The attached
embedded derivative liability is also derecognised and netted against the residual value of the host liability and the consideration paid.
Gain/ (Loss) on debt extinguishment
2021
-
2020
(1,522,003)
ALEXIUM INTERNATIONAL GROUP LIMITED
36
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
16. CONTRIBUTED EQUITY
(a) Issued capital
Ordinary shares fully paid
(b) Movement in share capital
Balance at 01 July
Capital raising
Costs of capital raising
Conversion of performance rights
Share-based payments
Balance at 30 June
(c) Movements in performance rights
Balance at 01 July
Granted not yet vested- Not Issued at 01 July
Granted in lieu of director's fees
Converted to shares
Forfeited
Granted
Granted not yet vested at 30 June
Balance at 30 June
(d) Share appreciation rights (“SAR”)
2021
Shares
2020
Shares
2021
$
2020
$
640,197,246
634,456,542
66,265,398
65,943,807
634,456,542
-
-
1,286,181
4,454,523
345,443,598
285,727,610
-
2,068,366
1,216,968
65,943,807
-
(17,364)
113,569
225,386
54,367,832
11,768,661
(634,502)
331,213
110,603
640,197,246
634,456,542
66,265,398
65,943,807
1,286,182
1,705,978
-
(1,286,181)
(479,903)
-
(310,451)
915,625
2,989,775
1,971,163
140,554
(3,130,334)
(238,480)
1,259,482
(1,705,978)
1,286,182
113,569
127,654
-
(113,569)
(37,330)
-
(10,417)
79,907
414,501
226,352
12,705
(427,213)
(27,378)
42,256
(127,654)
113,569
Grant
Date
Vesting
Date
Expiry
Date
Opening
Price
Full
Vesting
Target
Price
FV at
Grant
Open
Balance
SARs
Granted
2021
23-Sep-20
23-Sep-23
23-Sep-23 A$0.071 A$0.139 A$0.048
- 17,357,031
SARs
Forfeited
(1,206,107)
SARs
Outstanding
16,150,924
The plan was adopted and approved by the board of directors to replace the performance rights plan.
The objective of the plan is to:
(a) provide an incentive and to reward, retain and motivate participants.
(b) recognise the abilities, efforts, and contributions of participants to the performance and success of the Group; and
(c) provide participants with the opportunity to acquire or increase their ownership interest in the Group.
Vesting conditions:
(a) 25% compounded annual growth rate (“CAGR”) on the opening share price over of a three-year term. Opening price is determined as the
20-day volume weighted average price (“VWAP”) from the lodgement of the annual report. Fully vested target price is defined as the 20-day
VWAP from lodgement of the annual report three years after. Partial vesting begins at 10% CAGR and pays 33% of the of the total SAR grants.
CAGR achieved between 10% and 25% vest SAR grants on a linear scale between 33% and 100%.
(b) Continued employment through the vesting date.
Vested Rights:
(a) Participants are entitled to the amount by which the closing share price exceeds the opening share price.
(b) Shares will be issued in the amount equal to the value in (a) divided by the share closing share price.
All eligible employees are offered SARs. The award is calculated by multiplying a defined percentage by the fixed component of compensation.
ALEXIUM INTERNATIONAL GROUP LIMITED
37
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
(e) Share options issued
At year-end there were Nil free attaching options outstanding (2020: Nil) and Nil share-based payment options outstanding (2020: 1,500,000).
Warrants issued under the extinguished convertible note and previously recognised as a derivative liability were transferred to the option reserve
account at the payoff date.
(f) Movements in share options
Grant
Date
Exercise
Price
Expiry
date
Balance at
start of year
Granted
Exercised
Expired
Balance at
end of year
2021
Unlisted options
Warrants
Total
2020
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Warrants
Total
01-Oct-15
31-Dec-19
$0.75
$0.06
30-Sep-20
29-Mar-23
01-Oct-15
04-Nov-16
04-Nov-16
04-Nov-16
31-Dec-19
$0.75
$0.75
$1.25
$1.75
$0.06
30-Sep-20
04-Nov-19
04-Nov-19
04-Nov-19
29-Mar-23
1,500,000
3,829,787
5,329,787
1,500,000
300,000
300,000
300,000
-
2,400,000
-
-
-
-
-
-
-
3,829,787
3,829,787
-
-
-
-
-
-
-
-
-
(1,500,000)
-
(1,500,000)
-
3,829,787
3,829,787
-
(300,000)
(300,000)
(300,000)
-
(900,000)
1,500,000
-
-
-
3,829,787
5,329,787
(g) Details of share options
Outstanding at 01 July
Granted
Exercised
Expired
Outstanding at 30 June
(1) Weighted average exercise price
(2) Weighted average remaining contractual life
a) Warrants
b) Directors
Number
5,329,787
-
-
(1,500,000)
3,829,787
2021
WAEP1
WARCL2
0.25
-
-
(0.75)
0.06
2.04
-
-
-
1.75
Number
2,400,000
3,829,787
-
(900,000)
5,329,787
2020
WAEP
WARCL
0.94
0.04
-
(1.25)
0.25
0.91
1.97
-
-
2.04
2021
Average fair
value per
option
0.01
-
Number
3,829,787
-
3,829,787
2020
Average fair
value per
option
0.04
-
$
Number
52,922
-
52,922
3,829,787
1,500,000
5,329,787
$
142,025
-
142,025
(h) Terms and conditions of contributed equity
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’
meetings. In the event of winding up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to
any proceeds of liquidation.
(i) Capital management
The Company’s objectives in managing capital are to safeguard the Company’s ability to continue as a going concern, so that it can continue to
provide returns to shareholders and benefits for the stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
ALEXIUM INTERNATIONAL GROUP LIMITED
38
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
17. SHARE-BASED PAYMENTS
The following is the summary of share-based payments expensed during the year:
2021
2020
Shares in lieu of salary
Performance rights vested but not issued
Professional services
Total
Number
$
552,024
915,625
1,879,629
3,347,278
50,181
79,907
82,321
212,409
Number
526,523
$
50,012
1,286,182 113,569
1,453,704
56,763
3,266,409 220,344
In addition to the above table Share appreciation rights expensed during the year were $141,876 (2020: Nil). See Note 16 for vesting conditions and
plan details.
18. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Cash and cash equivalents
Cash on hand
2021
2020
2,932,673
4,741,251
(b) Reconciliation of operating loss after income tax to net cash used in operating activities
Operating loss after income tax
(1,445,319)
(6,125,476)
Non-cash items:
Depreciation and amortisation of non-current assets
Share-based payment
Amortisation on borrowings
Loss on debt extinguishment
(Gain) / Loss on fair value movement- embedded derivative
Loss on disposal of assets
Forgiveness of CARES Act PPP Loans
Changes in assets and liabilities net of effect of purchase of subsidiaries:
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in inventories on hand
(Increase) / Decrease in other current assets
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in other current liabilities
Net cash (used in) operating activities
(c) Reconciliation to net cash used in investing activities
Property, plant, and equipment additions and proceeds from disposal
Intangible asset additions
Non-cash items
Foreign exchange movement on transfers
(Increase) / Decrease in PPE payments
Net cash flows (used in) investing activities
910,970
354,285
348,119
-
(1,043,912)
55,539
(928,779)
(387,912)
(302,535)
(33,343)
1,136,655
(55,532)
(1,391,764)
90,429
774,033
-
17,089
881,551
588,567
220,344
1,084,075
1,522,003
27,523
2,694
-
(17,657)
231,899
33,417
(708,304)
(34,221)
(3,175,136)
93,691
1,098,264
-
8,160
1,200,115
ALEXIUM INTERNATIONAL GROUP LIMITED
39
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
19. RELATED PARTY TRANSACTIONS
(a) Related party transactions
Colinton Capital Partners
During the period, 230,766 (2020: 333,904) was paid to Colinton Capital Partners, a related party of Simon Moore, Non-Executive Director
Coupon interest on convertible note
Due Diligence
Underwriting fee
Total
20. SEGMENT REPORTING
The financial results from this segment are equivalent to the financial statements of the Company as a whole.
Geographic information of revenue and non-current assets excluding financial instruments are as follows:
2021
230,766
-
-
230,766
2020
105,381
103,305
125,218
333,904
2021
Revenue
Interest received
Other income
Interest expense
Property, plant, and equipment
Right of use asset
Intangible assets
Depreciation and amortisation expenses
2020
Revenue
Interest received
Other income
Interest expense
Property, plant, and equipment
Right of use asset
Intangible assets
Depreciation and amortisation
21. INVESTMENTS IN CONTROLLED ENTITIES
Australia
US
Cyprus
-
-
-
578,881
-
-
-
-
7,276,399
-
1,171,963
102,983
1,055,780
846,106
2,961,411
910,970
-
-
(250,648)
-
-
-
-
-
Australia
US
Cyprus
-
15,468
-
1,192,013
-
-
-
-
6,078,857
3,189
-
690,345
1,095,886
1,194,166
2,675,292
562,819
-
-
-
-
-
-
3,323
25,748
Total
7,276,399
-
921,315
681,864
1,055,780
846,106
2,961,411
910,970
Total
6,078,857
18,657
-
1,882,358
1,095,886
1,194,166
2,678,615
588,567
Parent Entity
Alexium International Group Limited
Subsidiaries of Alexium International Group Limited
Alexium Limited
Alexium Inc.
The parent entity has an interest free unsecured loan with Alexium Inc. amounting to 42,864,433 (2020: 42,523,293).
Percentage Owned
(ordinary shares)
2021
2020
Country of
Incorporation
Australia
Cyprus
USA
100
100
100
100
ALEXIUM INTERNATIONAL GROUP LIMITED
40
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
22. FINANCIAL INSTRUMENTS
(a) Interest rate risk exposures
The Company is exposed to interest rate risk through primary financial assets and liabilities. The carrying amounts of financial assets and financial
liabilities held at balance date approximate their estimated net fair values and are given below. The net fair value of a financial asset or a financial
liability is the amount at which the asset could be exchanged, or liability settled in a current transaction between willing parties after allowing for
transaction costs.
The Company’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is
set out below:
Weighted
Fixed Maturity Dates
Average
Effective Interest
Rate
%
Variable
Interest
Rate
$
< 1 Year
$
1-5 Years
$
5+ years
$
Non-
Interest
Bearing
$
Total
$
2021
Financial Assets
Cash and cash equivalents
Trade and other receivables/other
financial assets
Financial Liabilities
Trade and other payables
Lease liabilities
Convertible note
Derivative liability
2020
Financial Assets
Cash and cash equivalents
Trade and other receivables/other
financial assets
Financial Liabilities
Trade and other payables
Lease liabilities
Convertible note
Derivative liability
Other Borrowings
0.48
2,332,187
600,486
-
-
-
2,332,187
-
600,486
-
-
-
-
-
-
-
2,932,673
1,367,592
1,367,592
1,367,592
4,300,265
-
9.80
6.00
-
-
-
-
-
-
-
-
169,672
-
-
169,672
-
852,186
3,611,566
949,126
5,412,878
-
263,399
-
-
263,399
1,892,523
-
-
-
1,892,523
1,892,523
1,285,257
3,611,566
949,126
7,738,472
0.27
3,503,515
1,237,736
-
-
-
3,503,515
-
1,237,736
-
-
-
-
-
-
-
4,741,251
979,680
979,680
979,680
5,720,931
-
9.60
6.00
-
1.00
-
-
-
-
-
-
-
235,484
-
-
235,484
-
1,004,491
3,611,566
1,810,494
460,352
6,886,903
-
280,766
-
-
-
280,766
905,513
-
-
-
-
905,513
905,513
1,520,741
3,611,566
1,810,494
460,352
8,308,666
(b) Interest rate risk
At 30 June 2021, if interest rates had increased by 1% from the year end variable rates with all other variables held constant, post tax profit and
equity for the Company would have been a 29,327 increase (2020: 47,413 increase) based on cash and cash equivalents.
The 1% sensitivity is based on reasonable possible changes using an observed range of historical interest rate movements.
(c) Foreign currency risk
The Company currently conducts its operations across international borders. A large proportion of the Company’s revenues, cash inflows, other
expenses, capital expenditure and commitments are denominated in foreign currencies, mostly with costs and income in US dollars with smaller,
less frequent transactions in GBP, Euros and Australian Dollars. Exposure to foreign exchange risk may result in the fair value or future cash flows of
a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Company holds financial instruments which
are other than the AUD functional currency of the parent or USD functional currency of US Alexium, Inc., or the UK pound sterling functional currency
of Alexium Ltd.
ALEXIUM INTERNATIONAL GROUP LIMITED
41
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
With instruments being held by overseas operations, fluctuations in the Australian dollar and to a lesser degree UK pound sterling may impact on
the Company’s financial results. The following table shows the foreign currency risk on the financial assets and liabilities of the Company’s operations
denominated in currencies other than the functional currency of the operations.
2021
Australian dollar
US dollar
UK pound sterling
Statement of financial position exposure
2020
Australian dollar
US dollar
UK pound sterling
Statement of financial position exposure
Net Financial Assets/(Liabilities) in USD
USD
AUD
GBP
Total USD
42,864,433
-
-
42,864,433
-
(42,864,433)
-
(42,864,433)
-
-
-
-
42,864,433
(42,864,433)
-
-
42,523,293
-
559,032
43,082,325
-
(42,523,293)
(282,820)
(42,806,113)
282,820
(559,032)
-
(276,212)
42,806,113
(43,082,325)
276,212
-
The above balances relate to intercompany loans between member companies of the Company.
(d) Credit Risk
Credit risk arises from the financial assets of the Company, which comprise cash and cash equivalents. The Company's exposure to credit risk arises
from potential default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Company does not
hold any credit derivatives to offset its credit exposure. The Company’s exposure to credit risk is minimal. Total bad debt expense for the year was
Nil. As the Company does not currently have any significant debtors, lending, stock levels or any other credit risk, a formal credit risk management
policy is not maintained.
(e) Liquidity risk
The Company manages liquidity risk by continuously monitoring scheduled debt servicing payments for long-term financial liabilities as well as
forecasted cash inflows and outflows due in day-to-day business. Liquidity needs are monitored in various time bands, on a day-to-day basis, as well
as based on a rolling 30-day projection. Long-term liquidity needs for a 180-day and 360-day period are identified monthly. Net cash requirements
are compared to available borrowing facilities to determine headroom or shortfalls.
The Company’s non-derivative financial liabilities have contractual maturities as summarised below:
2021
Trade and other payables
Lease liabilities
Borrowings
Statement of financial position exposure
2020
Trade and other payables
Finance lease obligations
Borrowings
Statement of financial position exposure
Current
1-5 Years
5+ years
1,892,523
169,672
-
2,062,195
-
852,186
3,865,627
4,717,813
905,513
235,484
-
1,140,997
-
1,004,491
4,001,549
5,006,040
-
263,399
-
263,399
-
280,766
-
280,766
(f) Fair values of financial assets and liabilities
Cash and cash equivalents
The carrying amount approximates fair value because of their short-term to maturity.
Trade receivables and trade creditors
The carrying amount approximates fair value
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value
hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3: unobservable inputs for the asset or liability.
There were no other financial assets and liabilities other than cash, trade receivables and payables, and borrowings at the close of the reporting
periods.
ALEXIUM INTERNATIONAL GROUP LIMITED
42
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 30 June 2021
Measurement of fair value of financial instruments
The Company’s finance team performs valuations of financial items for financial reporting purposes, including Level 3 fair values, in consultation
with third party valuation specialists for complex valuations. Valuation techniques are selected based on the characteristics of each instrument, with
the overall objective of maximising the use of market-based information. Valuation processes and fair value changes are discussed among the audit
committee and the valuation team at least every year.
Embedded derivatives (Level 3)
The assessed fair values of the derivatives were determined using a Black-Scholes option pricing model. The model considers the expected price
volatility of the underlying instrument, expected dividend yield and the risk-free interest rate. A collection of comparable companies has been used
as a proxy for the volatility determined. The embedded derivative liability is classified as non-current based on a convertible note maturity of four
years.
The following shows the levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis:
2021
Derivative liability
Statement of financial position exposure
2020
Derivative liability
Statement of financial position exposure
Level 1
Level 2
Level 3
Total
-
-
-
-
-
-
-
-
949,126
949,126
949,126
949,126
1,810,494
1,810,494
1,810,494
1,810,494
There were no Level 1 or Level 2 transfers in the current and prior reporting periods.
23. PARENT ENTITY INFORMATION
The following details information related to the parent entity, Alexium International Group Limited. The information presented here has been
prepared using consistent accounting policies as presented in Note 2.
Current Assets
Non-current assets
Total Assets
Current Liabilities
Long Term Liabilities
Total Liabilities
Contributed equity
Accumulated losses
Performance rights reserves
Option reserves
Total Equity
Loss for the year
2021
1,109,530
6,681,134
7,790,664
152,795
3,459,471
3,612,266
2020
1,656,632
7,794,935
9,451,567
233,638
3,790,372
4,024,010
66,265,398
(62,392,717)
221,783
83,934
4,178,398
65,943,807
(61,355,889)
113,569
726,070
5,427,557
(1,445,319)
(6,314,423)
24. COMMITMENTS AND CONTINGENCIES
The Company does not have any commitments or contingencies beyond those disclosed as disclosed in the notes above.
25. DIVIDENDS
No dividend has been declared or paid during the current financial year or the prior financial year. The Company does not have any franking credits
available for current or future years as it is not in a tax paying position.
26. SUBSEQUENT EVENTS
There has not arisen any item, transaction, or event of a material and unusual nature, which in the opinion of the Directors of the Company, is likely
to significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.
ALEXIUM INTERNATIONAL GROUP LIMITED
43
DIRECTOR’S DECLARATION
The Directors of the Company declare that:
1. The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity and accompanying
notes, are in accordance with the Corporations Act 2001 and:
a.
comply with Accounting Standards and the Corporations Regulations 2001, other mandatory professional reporting requirements
b. give a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year ended on
that date; and
c.
comply with International Financial Reporting Standards as disclosed in Note 2 of the financial statements.
2. The remuneration disclosures included in the Directors’ Report (as part of the audited Remuneration Report) for the year ended 30 June
2021, comply with section 300A of the Corporations Act 2001 (Cth).
3.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
4. The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A
of the Corporations Act 2001 (Cth).
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:
Rosheen Garnon
Chair
Dated: 27 August 2021
ALEXIUM INTERNATIONAL GROUP LIMITED
44
INDEPENDENT AUDITOR’S REPORT
ALEXIUM INTERNATIONAL GROUP LIMITED
45
INDEPENDENT AUDITOR’S REPORT
ALEXIUM INTERNATIONAL GROUP LIMITED
46
INDEPENDENT AUDITOR’S REPORT
ALEXIUM INTERNATIONAL GROUP LIMITED
47
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 7 August 2021.
Quoted equity securities
640,197,246 fully paid ordinary shares are held by 4,979 shareholders.
Unquoted equity securities
Date
Options/Warrants
Granted
31-Dec-19
Expiry Date
Exercise price of
shares
No. under options
29-Mar-23
A$ 0.06
3,829,787
Shareholder distribution
The number of shareholders, by size of holding, are:
Holding Range Units
Holders
Total Units
1
1,001
5,001
10,001
100,001
-
-
-
-
-
1,000
5,000
10,000
100,000
999,999,999
478
911
815
2,155
620
4,979
186,175
2,660,254
6,685,514
83,578,178
547,087,125
640,197,246
% Issued
Share Capital
0.03%
0.42%
1.04%
13.06%
85.46%
100.00%
Unmarketable parcels
Minimum parcel A$500 at $0.049 per unit
Holding Range Units
Holders
Total Units
2,229
9,784,117
Substantial holders
Rank
Name
Total Units
1
2
3
4
COLINTON CAPITAL PARTNERS PTY LTD
Continue reading text version or see original annual report in PDF format above