ANNUAL REPORT 2021 I Table of Contents Chairman and CEO’s letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II Highlights 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV Financial Result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XII New Products Explained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIV NEW - Spatial Analysis Risk Platform (SARP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIV NEW - Climate Risk Analysis and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIV NEW – Hail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XV Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XVIII Scale – What’s the problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIX Operationalised, actionable, transparent and defensible data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XX EWN’s Unique Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXII Our Climate Risk Team Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXIV Additional Information for Listed Public Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXVIII Corporate Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXX Early Warning Network (EWN) is a 100% owned Subsidiary of Aeeris Limited II III ANNUAL REPORT 2 0 2 1 Chairman and CEO’s letter l For our shareholders and the business community at large, the financial year 2021 will be forever marked by the pandemic. It’s been a bumpy ride and it isn’t over yet. For many, this crisis has been a litmus test of resilience and response to the unexpected. l During FY21 EWN continued to grow revenue while at the same time developing and commercialising new products. Importantly, we have continued to provide critical services to our customers to help l Those efforts are improved earnings which have also revealed with l The digitising of our online and marketing activities has been very l Of note is the growth within the insurance industry where we launched successful, attracting more customers our new hail product to accompany our and delivering fresh annuity revenue. forecast and alerting services. I’m looking New sales enquiries are mostly inbound, forward to the next year as we continue to driven by a strong digital presence and deliver this and incorporate the Climate reputation. Risk Data as a fully commercialised product. l EWN $433,648 achieved an additional in new customer revenue driving cashflows exceeding $2.9M l I want to thank my team for a magnificent effort this year and welcome over the financial year. Cash and our new members on board for what customer receipts are up 55% over will be an exciting year ahead. Their FY20 revenues. Business acquisition talent, determination and pride in EWNs continues at a steady pace with vision provides the foundation for future material contracts signed in the first success. I am also deeply grateful for our quarter of FY22 exceeding $200k. This shareholders’ confidence in our company keep people safe while protecting assets allowed investment in groundbreaking consolidates revenue with similar multi- and our ability to address the challenges and operations. climate research to power our next year agreements contracted in the final of the current environment while also generation of products. This includes our quarter of FY21. capitalising on the opportunities that will l Our efforts over the last financial year are realising EWN’s vision of being leading-edge ‘Hail alert warning service’ and the provision of expanded Application Australia’s lead authority in the mapping Interfaces (API’s) which connect EWN data l Helping this growth trajectory is an increased sensitivity to risk, especially and analysis of physical climate risk. to our customers’ own systems. Most of that which is foreseeable. I have no be available. l We enter momentum, new product and increased FY22 with financial We couple this with the unique ability our clients are large businesses operating doubt the pandemic, combined with resources to scale the business. I have to provide immediate and effective their own platforms. The API allows them recent extreme weather-related events never been so confident in our future and mitigation of impacts that result from to easily import EWN data, ensuring real has heightened risk awareness within look forward to delivering a stronger set of acute and chronic weather and all natural time data to support their investment and both the corporate and government results this year.. hazards. decisions. Climate change is now the lens through which BlackRock, and everyone following the world’s largest asset manager, will need to assess its next investment. sectors, translating to an increase in business enquiries at the beginning of this calendar year. Recent lockdowns did interrupt the progression of some prospects. However, EWN has demonstrated exceptional resilience in BlackRock CEO Larry Fink, 16 January 2021 a challenging environment II II Kerry Plowright | Chairman & CEO III III ANNUAL REPORT 2 0 2 1 Highlights 2021 l Cash inflows from customers in the last quarter of FY2021 was l Total cash received FY21 $2,921,613 (incl GST) $700,815 l New contracts signed within the first two months of Q1 FY22 exceeding $200k in annuity revenue. l Embargo and new hail products scaled rapidly in FY2021 making up most of new revenue for FY21 l Total reported revenue (P&L) is $2,536,967, a 44% increase l A 78% increase in cash and cash equivalents $1,426,958 FY 2021 vs in total revenue in FY2021, $799,857 FY 2020 compared to FY2020 l New customers include one of Australia’s largest banks and Australia’s two largest insurers l Expanded team to meet new opportunities. New hires include Data Scientists, Spatial Risk Analysers and Senior Developers IV IV VV V ANNUAL REPORT 2 0 2 1 Short term risk (the next twenty years) is the critical ‘actionable horizon’. Having historical hazard data at a very detailed geospatial level allows us to calculate short-term risk in a very targeted way, particularly for impacts such as hail or tornados that other modelling cannot simulate. – Kathryn Turner, Lead Scientist VI VI VII VII ANNUAL REPORT 2 0 2 1 Financial Result l EWN predominately annuity based. This affords customer revenue is l During the second half of FY21 EWN invested in a digital marketing platform. the business the opportunity to accurately The results were immediate with the manage the cash flow well in advance. The business seeing increased customer main variable is how much new business enquiries and recording a strong fourth EWN might acquire in the forward outlook. quarter of $700,815 in customer revenue. l Our financial results showcase how the company uses this outlook to confidently invest in R&D and the development of new products and subsequently delivering these to current and new customers. Enquiries are continuing to flow through into this financial year and momentum has continued with over $200k in annuity proceeds signed in the first quarter of FY22. These annuity revenues will not be visible until the 2nd quarter of FY22. Federal Government 2% Education 3% Healthcare 3% Infrastructure 3% Water 6% Mining 9% Telecommunication 12% Tourism 15% VIII VIII Insurance 30% Local Government 17% E W N IX IX IX EARLY WARNING NETWORKRBA deputy governor Guy Debelle has stated that climate is a “first-order risk for the financial system”, one which Australian financial institutions now recognise. ANNUAL REPORT 2 0 2 1 ANNUAL REPORT 2 0 2 1 Introduction EWN established (arguably) EWN’s Spatial Analysis Risk EWN is the only weather and EWN Monitors, Measures and Australia’s first location-based, Platform (SARP) is unique in its risk business to maintain a Actively Mitigates Risk. multichannel warning system for all ability to map and track devices, round-the-clock 24HR operational natural hazards and weather. assets, remote sensor networks and team supported by specialised Our services means your business can operations. monitoring and spatial technology operate safely, save money and actively EWN is Australia’s most experienced alerts teams and systems. manage new Regulatory Obligations. operator, monitoring and mapping threats Combined with meteorological, all hazard for government, the public and business. event data and other telemetry, risks are Climate risk and all-natural hazards: We achieve this by persistent monitoring, The EWN mission is to protect people, relayed to customers based on thresholds measuring physical risk and warning of property and business operations from and individual vulnerabilities. Messaging l Are a critical strategic, security and imminent and long-term threats likely to all-natural hazards including physical and is transmitted by a multi-channel economic issue impact safety, business operations and chronic climate risk. communication and analytics engine. This l Frequently result in the loss of life and assets. provides users critical data and actionable critical injury intelligence (Decision Superiority) through l Cause enormous losses to assets and We are unique in the provision of mapping, responsive locational communications. infrastructure responding and communicating threats l Disrupt and prevent business operations which present a risk to our clients. This l Are foreseeable - meaning failure to act 24HR service is provided through a range creates significant liability of products: l Attract regulatory enforcement with quantification and inclusion of Climate Risk Disclosure within financial reporting, inclusive of mitigation actions and strategy X X XI XI XIXI Regulators are in lockstep on approaching climate change as a financial risk issue. The Reserve Bank of Australia has joined APRA, ASIC and the ASX in considering the implications of climate change through an overtly economic risk lens. ANNUAL REPORT 2 0 2 1 Products ALERTING FORECASTING GIS PLATFORM (SARP) WORKER ZONE MANAGEMENT EMBARGO API Product Summary Lightning 0% GNIS 1% Mobile Apps 3% Zone Management 3% Flood Alerts 3% Customised Flood System 4% Location Alerts 5% Situation Room 6% Regional Alerts 9% CLIMATE RISK FLOOD MONITORING Hail 12% XII XII Forecasts 20% Branded Alerts 19% Embargo 15% XIII XIII ANNUAL REPORT 2 0 2 1 New Products Explained Joining our existing list of solutions are the following new products: NEW NEW NEW Spatial Analysis Risk Platform (SARP) Climate Risk Analysis and Reporting L A U N C H E D F Y 2 1 L A U N C H E D F Y 2 1 Using our 12 years of non-stop operational With a data focus, our new climate risk experience and system development, analysis and reporting enables business EWN has evolved its primary platform and government to quickly and effectively to deliver a stand-alone cloud based measure and report on ‘actual’ exposure SaaSsolution we call SARP. SARP to acute or chronic natural disasters encompasses all of the features of our and weather-related events. It resolves original system but with considerable the problem of producing forensic and enhancement, new capabilities and trusted results by having the capability augmented commercial applications. to use ‘actual’ data to deliver actionable and operationalized reports and risk disclosure. https://www.earlywarningnetwork.com. au/services-climate-risk XIV XIV XV XV Hail LAUNCHED FY21An Australian first, our hail solution product enhances our alerting and forecasting portfolio. Powered by our 3D radar technology and decades of thunderstorm experience and hail research projects with some of Australia’s leading universities as well as utilising the latest research from the USA and the Bureau of Meteorology, we have created a service that calculates the estimated hail size in thunderstorms across Australia LIVE.Within minutes of each scan being taken, our radar alerts our users to the estimated size of hail and where damaging hailstorms have tracked with directional arrows showing where they are about to move. This allows businesses to immediately focus resource and effectively respond. This service is already being delivered to large customer organisations and government departments across Australia. Combined with SARP technology our customers and their customers are benefiting from actionable intelligence. https://www.earlywarningnetwork.com.au/hail-services ANNUAL REPORT 2 0 2 1 U N D E R D E V E L O P M E N T Seasonal to sub seasonal forecasting (S2S) Flood l Hail Radar report Map showing Hail tracks in Dark Brown and Large Hail in Pink - 17 Nov 2019 l Storm Tracker with Hail sizes and storm direction and time arrows - 31 October 2020 XVI XVI XVII ANNUAL REPORT 2 0 2 1 Growth EWN serves blue chip customers who The new hail and emergency data are increasingly concerned about risks products compliments our core alerting associated with climate and other natural service and will further enhance growth hazards. As a result, EWN has experienced attracting new customers. significant growth in business-as-usual products. While visible in the final quarters of FY21, our growth trajectory and current pipeline of prospects should boost FY22 customer revenues. EWN Data Services Scale – What’s the problem? EWN established (arguably) Australia’s first location based, multi-channel warning systems for all natural hazards and weather. We are Australia’s most experienced alerts operator, monitoring and mapping threats for government, the public and business. Climate risk and all-natural hazards: Predicting and warning since 2006. l Are a critical strategic, security and Recent extreme weather events have economic issue increased risk awareness. Climate and l Frequently result in the loss of life and weather risk is now legally recognised critical injury as foreseeable. The impact of both l Cause enormous losses to assets and near, medium-and-long term risks carry infrastructure substantial legal liability to companies, l Disrupt and prevent business management teams and boards of directors. operations l Are foreseeable - meaning failure to act With foreseeable risk mitigation now an creates significant liability expectation. The regulatory and investment l Attract regulatory enforcement with environment now demands quantifiable quantification and inclusion of Climate disclosure of physical and chronic climate Risk Disclosure within financial risk by reporting entities. Auditors have reporting, inclusive of mitigation identified that foreseeable risk is the missing actions and strategy data point in disclosures. XVIII XIX XIX ANNUAL REPORT 2 0 2 1 Operationalised, actionable, transparent and defensible data Climate risk data analyses and covers both physical and chronic risk. These are made up of the following perils: PHYSICAL RISK • Tropical cyclones • East Coast Lows • Extreme rainfall and riverine floods • Extreme sea level event • Large Hail • Extreme bushfire events CHRONIC RISK • Average temperature and extreme heat events • Average rainfall • Sea level rise • Drought DATA SOURCES • BoM • EWN Event (Historic) 1800 - present • EWN Operational • CSIRO RCP/NRM spatial Cluster data • Fire – EWN and State fire authorities • Flood – EWN and hydrologic expert spatial analysis XX XXIXXI XXI ANNUAL REPORT 2 0 2 1 EWN’s Unique Solution Risks can be visualized and queried based on thresholds, peril type and time period – this delivers unparalleled transparency and spatial accuracy. Illustrated are individual assets which are colored based on the level of threat for a particular peril. They can also be assessed on multiple or most likely risks. XXII XXII XXIII Risks to asset/s can be reported in a number of ways, with the example above illustrated in a graph over a selected period of time. ANNUAL REPORT 2 0 2 1 Our Climate Risk Team Leaders Michael Bath O P E R A T I O N S M A N A G E R Kathryn Turner Dave Evans L E A D C L I M A T E S C I E N T I S T I T M A N A G E R n Aeeris has built an expert team to create the first geospatial platform for modelling Michael has been with Aeeris since the With a background in meteorology and Using his 15 years of experience in IT Early Warning network first launched its climatology modelling & analysis, and development to assist business and and forecasting actual climate risks based proprietary GNIS natural hazard alerting extensive experience in developing communities to adapt to and mitigate on granular historical data. The proprietary platform and has led the evolution of custom web application products. Kathryn the impact of climate phenomena on dataset and our team’s combined expertise the company’s operational capabilities. is uniquely qualified to lead the Climate Risk their lives and assets is something Dave covers climate science, meteorology, risk He manages the team of spatial analysts Intelligence Platform development and is passionate about. His involvement with analysis, forecasting, alerting, IT and GIS and meteorologists who provide 24/7 delivery. She is excited by the opportunity the Climate Risk Intelligence platform applications. This means we can deliver alerting, forecast and support services to leverage the Aeeris proprietary dataset ensures the digital architecture, IT assets immediate and practical insights in real- to EWN customers in Australia and of granular geospatial and natural hazard and optimised cloud solution functionality time to assist business to report on and New Zealand and is integral to ongoing information to provide meaningful risk is state-of-the-art, seamless and secure. manage climate-driven natural hazard product development, system support analysis products for businesses. risks. and client setup including the Climate Risk Intelligence platform. XXIV XXV ANNUAL REPORT 2 0 2 1 Todd Cameron Ben McBurney C L I M A T E S C I E N T I S T R I S K A N A L Y S T T E A M L E A D E R Todd Cameron is a published researcher Ben McBurney is the lead Meteorologist with international experience in utilising and climate analyst for the Climate Risk geospatial technology to model and Intelligence platform. His background analyse atmospheric and meteorological includes masters degree research data and its physical impacts on into modelling of hail storm impacts, communities and landscapes. He holds professional experience In risk analysis qualifications including a Masters of and tertiary qualifications in atmospheric Environmental Sciences Engineering, and physics and meteorological forecasting. has been an ARC Climate Systems Science As a long-standing member of our scholar with the Bureau of Meteorology. alerting and forecast team, Ben also has As the Data Scientist for Aeeris, he is in-depth understanding of the practical instrumental in developing and delivering applications of climate and weather data robust, analytics-driven climate impact for the protection of lives and property. insights and risk modelling. XXVI XXVII XXVII The Australian Prudential Regulation Authority (APRA) chairman Wayne Byres said the climate risks to banks were “increasingly very real and immediate”. 28 April 2021 Aeeris Ltd ABN 18 166 705 595 and Controlled Entities Consolidated Financial Report For the year ended 30 June 2021 Aeeris Ltd ABN 18 166 705 595 Page 2 Aeeris Ltd ABN 18 166 705 595 and Controlled Entities Contents Financial Report Directors’ Report Remuneration Report Auditor’s Independence Declaration Consolidated Statement of Profit or Loss Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report 3 8 11 12 13 14 15 16 42 43 Aeeris Ltd ABN 18 166 705 595 Page 3 Aeeris Ltd ABN 18 166 705 595 and Controlled Entities Directors’ Report Your directors present their report on the consolidated entity (‘the Group’) consisting of Aeeris Ltd and its controlled entities for the financial year ended 30 June 2021. General Information Directors The following persons were directors of Aeeris Ltd during or since the end of the financial year up to the date of this report: Mr Kerry Plowright – Executive Chairman and CEO Mr Bryce Reynolds – Non-Executive Director Mr Nathan Young – Non-Executive Director Particulars of each director’s experience and qualifications are: Kerry Plowright Qualifications None Experience In 2007 Kerry founded the Early Warning Network’s Geographical Notification and Information System (GNIS) and has been the key driver behind the development of the Group’s technology platform. Kerry is responsible for leading the Aeeris team in both the operation and further technical evolution of the EWN platform. Previously an Army Officer, Founder-Editor of NZ Green Magazine and Director of Earthtrust South Pacific, he has a depth of experience in establishing and growing successful businesses. In 1995 he launched a digital publishing and software business called Ezimerchant, which created one of the world’s first out-of-the-box e-commerce and DIY product and payments platforms. Interest in Shares and Options 23,407,803 Shares 950,000 Performance Rights Special Responsibilities Executive Chairman and CEO Directorships held in other listed entities during the three years prior to the current year None Aeeris Ltd ABN 18 166 705 595 Page 4 Bryce Reynolds Qualifications B. Comm (Accounting/Finance) UNSW Experience In 2006, Bryce established Veritas Securities Limited as a founding director after working for a large investment bank and two mid tiered Australian securities firms. Since then, he has further added to his skill base by being an active company director for numerous private ventures in the funds management and IT/digital field. Interest in Shares and Options 4,591,320 Shares 625,000 Performance Rights Special Responsibilities Chairman of the Audit and Risk Committee Directorships held in other listed entities during the three years prior to the current year None Nathan Young Qualifications B. Comm Experience Nathan began his career in financial markets over 20 years ago. He holds a Bachelor of Commerce from The University of Melbourne and a Graduate Diploma in Applied Finance and Investment. He has previously been employed by a large Investment Bank and Hedge Fund focused on trading and investment strategies. In these organisations one of his roles was to evaluate seed capital, pre-IPO and listed investment opportunities in the technology sector. Interest in Shares and Options 500,000 Shares 500,000 Performance Rights Special Responsibilities Non-Executive Director Directorships held in other listed entities during the three years prior to the current year Bora Bora Resources Limited Company Secretary The company secretary is Elissa Hansen and details of her experience and qualifications are: Elissa Hansen Qualifications B.Com, Gdip.AppCorGov, GAICD, FGIA Experience Elissa is a Chartered Secretary with over fifteen years’ experience advising management and boards of ASX listed companies on governance, investor relations and other corporate issues. She has extensive company secretarial experience, acting as Company Secretary for a number of public, ASX listed and private companies. Aeeris Ltd ABN 18 166 705 595 Page 5 Principal Activities The principal activity of the consolidated group during the financial year was enterprise asset and people protection technologies. Significant Changes to Activities No significant changes in the nature of the principal activities occurred during the financial year. Operating Results The consolidated profit of the consolidated group amounted to $467,854 (2020: Loss of $154,801) after providing for income tax. Review of Operations Aeeris Limited is one of the World’s leading aggregators of geospatial data and provides unique location- based Safety, Operations Management, Severe Weather and All Hazards data and content services. The Group’s Early Warning Network (EWN) platform and proprietary GNIS technology system enable Aeeris to provide a range of critical services - Live data on natural and man-made hazards affecting our clients, various applications to protect workers and assets, aerial and ground-based imaging of facilities and infrastructure, and digital tracking, mapping and monitoring of assets and personnel. Additionally, the Group provides corporate and government clients with specific digital alerts and other content in real time regarding a range of disruptive geospatial events including storms, floods, damaging wind, hail, hurricanes and cyclones, as well as non-atmospheric hazards such as fire, tsunami, solar radiation, traffic and power outages. Its services solve natural disaster awareness problems and promote personal and employee safety, asset protection, risk management, as well as helping to mitigate the financial impact of adverse events. The GNIS system is globally scalable. COVID-19 Impact Assessment The COVID-19 pandemic appears to have increased risk awareness within both the corporate and government sectors. Since the beginning of the Calendar Year 2021, EWN has emerged with increased business enquiry and revenue. This has been supported at the same time by an improved digital presence and platform. Business acquisition continues in the first quarter of FY22 with material contracts being signed. Recent lockdowns have interrupted the progression of some prospects. Aeeris is listed on ASX with the ticker code AER. Financial Position The net assets of the consolidated group have increased by $467,854 from 30 June 2020 to $1,060,283 in 2021. This increase is largely due to the following factors: • An increase of $627,101 in cash and cash equivalents; • A decrease of $132,396 in trade and other receivables; and • An increase of $45,814 in trade & other payables. Significant Changes in State of Affairs There were no significant changes in the state of affairs of the parent entity during the financial year. Aeeris Ltd ABN 18 166 705 595 Page 6 Events After the Reporting Period There have been no events after the reporting period and there has been no material impact from COVID-19 after balance date. Future Developments, Prospects and Business Strategies Current areas of strategic focus of the Group include the following: • Focus on converting significant pipeline of potential clients and on-boarding new customer referrals and lines of enquiry. Several of these prospects would be material if realised and use established platforms and services. • Focus on distribution of our core IP (data) through channel partners in the GIS industry. • Pursue white labelling opportunities to leverage the company’s GIS platform and technology. • Further work on our Climate Risk Reporting platform and development of new services requested by our major customers. Environmental Issues The Group’s operations are not regulated by any significant environmental regulations under the laws of the Commonwealth or of a state or territory in Australia. Dividends Paid or Recommended No dividends were paid or declared since the start of the financial period. No recommendation for payment of dividends has been made. Insurance of Directors and Officers The company has entered into an agreement to insure the directors and officers of the company. The liabilities insured are legal costs that may be incurred defending civil or criminal proceedings that may be brought against the directors and officers in their capacity as officers of the entity, 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 wilful 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. Indemnifying Officers or Auditor The company has agreed to indemnify and keep indemnified Directors and officers against any liability: incurred in connection with, or as a consequence of the director or officer acting in that capacity, including representing the company on any body corporate; and for legal costs incurred in defending an action in connection with or as a consequence of the Director or officer acting in that capacity. The indemnity only applies to the extent of the amount that the Directors are not indemnified under any other indemnity, including an indemnity contained in any insurance policy taken out by the company, under the general law or otherwise. The indemnity does not extend to any liability: • to the company or a related body corporate of the company; • arising out of conduct of the Directors or officers involving a lack of good faith; or • which is in respect of any negligence, default, breach of duty or breach of trust of which the directors or officers may be guilty in relation to the company or related body corporate. No liability has arisen under these indemnities as at the date of this report. No indemnities have been given or insurance premiums paid during or since the end of the financial year, for any person who is or has been an auditor of the company. Aeeris Ltd ABN 18 166 705 595 Page 7 Proceedings on Behalf of the Company No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. Auditor’s Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found on page 11 of the financial report. Options At the date of this report, the were no unissued ordinary shares of Aeeris Ltd under option. There have been no options granted over unissued shares or interests of any controlled entity within the Group during or since the end of the reporting period. Meetings of Directors During the financial year, 11 meetings of directors, excluding committee of directors were held. Attendances by each director during the year were as follows: Directors’ Meetings Audit & Risk Committee Number eligible to attend Number attended Number eligible to attend Number attended Kerry Plowright 11 11 4 4 Bryce Reynolds 11 11 4 4 Nathan Young 11 11 4 4 The board comprises of three Directors. All directors attend the Audit & Risk Committee meetings. Corporate Governance Statement The company’s corporate governance practices and policies have been made publicly available on the Company’s website at www.aeeris.com/corporate_governance.html. Aeeris Ltd ABN 18 166 705 595 Page 8 Aeeris Ltd ABN 18 166 705 595 and Controlled Entities Remuneration Report Remuneration Policy All key management personnel (KMP) and directors of Aeeris Ltd were engaged on fixed remuneration consultancy agreements for the provision of services with no performance incentives. The Board of Aeeris Ltd believes, given the size and operations of the company during the period, that the remuneration policy to be appropriate. All KMP and directors are large shareholders in the company in their own right, providing them with appropriate incentives for outstanding performance. All remuneration paid to KMP is valued at the cost to the company and expensed. The Board’s policy is to remunerate non-executive directors at market rates for their time, commitment and responsibilities. The remuneration committee determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the annual general meeting. Employment Details of Members of Key Management Personnel (KMP) Group KMP Position held as at 30 June 2021 and any Change during the Year Contract Details (Duration and Termination) Proportions of Elements of Remuneration Related to Performance Proportions of Elements of Remuneration Not Related to Performance Mr K Plowright Executive Chairman and CEO • Executive Consulting contract with no fixed term. Can be terminated with 3 months notice. • As Managing Director, exempt from the requirement to stand for re-election as a director. - 100% Mr B Reynolds Non Executive Director • Re-election as director required every 3 years. - 100% Mr N Young Non Executive Director • Re-election as director required every 3 years. - 100% The employment terms and conditions of all KMP are formalised in contracts of employment. Aeeris Ltd ABN 18 166 705 595 Page 9 Changes in Directors and Executives Subsequent to Year-end Nil Remuneration Expense Details for the Year Ended 30 June 2021 The following table of benefits and payments represents the components of the current year and comparative year remuneration expenses for each member of KMP and director of the consolidated group. Such amounts have been calculated in accordance with Australian Accounting Standards. Table of Benefits and Payments for the Year Ended 30 June 2021 Short Term Benefits Equity-settled Share-based Payments 2021 Remuneration Shares/Options/Rights Total Mr. K Plowright * $128,382 - $128,382 Mr. B Reynolds * $24,000 - $24,000 Mr. N Young * $24,000 - $24,000 $176,382 - $176,382 Table of Benefits and Payments for the Year Ended 30 June 2020 Short Term Benefits Equity-settled Share-based Payments 2020 Remuneration Shares/Options/Rights Total Mr. K Plowright * $126,242 $46,550 $172,792 Mr. B Reynolds * $18,000 $30,625 $48,625 Mr. N Young * $18,000 $24,500 $42,500 $162,242 $101,675 $263,917 * Paid through their related entities, refer Note 24. Securities Received that are Not Performance-Related No members of KMP and directors are entitled to receive securities that are not performance-based as part of their remuneration package. Cash Bonuses, Performance-related Bonuses and Share-Based Payments There were no cash bonuses, performance-related bonuses and share based payments paid as remuneration to KMP. Options and Rights Granted as Remuneration There were no options or rights issued as remuneration to KMP. Aeeris Ltd ABN 18 166 705 595 Page 10 KMP Shareholdings The number of ordinary shares in Aeeris Ltd held by each KMP and director of the Group during the financial year is as follows: Balance at 1 July 2020 Granted as Remuneration during the Year Issued on Exercise of Performance Rights during the Year Other Changes during the Year Balance at 30 June 2021 Mr. K Plowright 23,326,622 - - 81,181 23,407,803 Mr. B Reynolds 4,468,708 - - 122,612 4,591,320 Mr. N Young 500,000 - - - 500,000 KMP Performance Rights The number of performance rights in Aeeris Ltd held by each KMP and director of the Group during the financial year is as follows: Balance at 1 July 2020 Issued during the year Exercised during the year Balance at 30 June 2021 Mr. K Plowright 950,000 - - 950,000 Mr. B Reynolds 625,000 - - 625,000 Mr. N Young 500,000 - - 500,000 Other Equity-related KMP Transactions There have been no other transactions involving equity instruments other than those described in the tables above relating to options, rights and shareholdings. Other Transactions with KMP and/or their Related Parties There were no other transactions conducted between the Group and KMP or their related parties, apart from those disclosed above relating to equity, compensation and loans, that were conducted other than in accordance with normal employee, customer or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons. This directors’ report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of Directors. Chairman: _____________________________________________________ Mr Kerry Plowright Dated this 30th day of August 2021 AEERIS LIMITED ABN 18 166 705 595 AND CONTROLLED ENTITIES AUDITOR’S INDEPENDENCE DECLARATION Auditor’s Independence Declaration under section 307C of the Corporations Act 2001 to the directors of Aeeris Limited and controlled entities. I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021 there have been no contraventions of: i. the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. any applicable code of professional conduct in relation to the audit. MNSA Pty Ltd Allan Facey Sydney 30th August 2021 Aeeris Ltd ABN 18 166 705 595 Page 12 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021 Notes Consolidated 30-Jun-2021Consolidated 30-Jun-2020$ $ Revenue from continuing operations Revenue 3 1,837,6911,661,248 Other income 3 699,276 102,898 Total Revenue 2,536,967 1,764,146 Expenses Consultants and subcontractors (496,210) (506,261) Depreciation and amortisation expense (3,874) (5,090) Employee benefits expense 4 (878,615) (639,441) Finance costs (1,954) (2,907) Share based payments 22 -(162,435)SMS communication (107,913) (122,743)Weather reports (201,029) (179,138)Other expenses from ordinary activities 5 (379,518) (300,932)Total Expenses (2,069,113) (1,918,947) Profit/(loss) before income tax 467,854 (154,801) Income tax expense 6 - - Net profit/(loss) for the year 467,854 (154,801) Earnings per share From continuing operations Basic profit/(loss) per share (cents) 10 0.78 (0.26) Diluted profit/(loss) per share (cents) 10 0.78 (0.26) The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes. Aeeris Ltd ABN 18 166 705 595 Page 13 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 Notes Consolidated 30-Jun-2021Consolidated 30-Jun-2020$ $ Current Assets Cash & cash equivalents 11 1,426,958799,857 Trade & other receivables 12 201,788 334,184 Prepayments 67,623 8,472 Total Current Assets 1,696,369 1,142,513 Non-Current Assets Property, plant & equipment 14 15,490 11,962 Total Non-Current Assets 15,490 11,962 Total Assets 1,711,859 1,154,475 Current Liabilities Trade & other payables 15 566,503 520,689 Provisions 16 35,539 41,357 Total Current Liabilities 602,042 562,046 Non-Current Liabilities Provisions 16 49,534 - Total Non-Current Liabilities 49,534 - Total Liabilities 651,576 562,046 Net Assets 1,060,283 592,429 Equity Issued capital 17 5,100,568 5,100,568 Share based payments reserve 27 81,218 81,218 Accumulated losses 28 (4,121,503) (4,589,357) Total Equity 1,060,283 592,429 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Aeeris Ltd ABN 18 166 705 595 Page 14 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Notes Issued capital Share based payments reserve Accumulated losses Total $ $ $ $ Balance at 1 July 2019 5,019,351 94,967 (4,529,523) 584,795 (Loss) for the financial year 28 - - (154,801) (154,801) Expiry of options -(94,967)94,967 - Issue of performance rights -162,435-162,435Conversion of performance rights 81,217 (81,217)- - Balance at 30 June 2020 5,100,568 81,218 (4,589,357) 592,429 Balance at 1 July 2020 5,100,568 81,218 (4,589,357) 592,429 Profit for the financial year 28 - - 467,854 467,854 Balance at 30 June 2021 5,100,568 81,218 (4,121,503) 1,060,283 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Aeeris Ltd ABN 18 166 705 595 Page 15 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 Notes Consolidated 30-Jun-2021Consolidated 30-Jun-2020$ $ Cash flow from operating activities Receipts from customers 1,991,544 1,568,986 COVID-19 Stimulus Support 222,127 97,923 Interest received 1,918 - Research and Development refund 475,231 - Payments to suppliers & employees (2,056,317) (1,744,070) Net cash provided by/(used in) operating activities 21 634,503 (77,161) Cash flow from investing activities Purchases of property, plant & equipment (7,402) (1,717) Net cash (used in) investing activities (7,402) (1,717) Cash flow from financing activities Proceeds from the issue of shares - - Fund raising expense - - Net cash provided by/(used in) financing activities - - Net increase/(decrease) in cash held 627,101 (78,878) Cash & cash equivalents at the beginning of the financial year 799,857 878,735 Cash & Cash Equivalents at the end of the financial year 11 1,426,958 799,857 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 16 These consolidated financial statements and notes represent those of Aeeris Ltd and Controlled Entities (the “consolidated group” or “group”). The separate financial statements of the parent entity, Aeeris Ltd, have not been presented within this financial report as permitted by the Corporations Act 2001. The financial statements were authorised for issue on 30 August 2021 by the directors of the company. NOTE 1. Significant Accounting Policies Basis of Preparation These general purpose consolidated financial statements have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. Except for the cash flow information, the financial statements, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. Going Concern The accounts have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and liabilities in the normal course of business. The directors are aware that the Group’s ability to continue as a going concern, and its ability to pay its debts as and when they fall due, is largely dependent on increases in revenue and successfully managing its short to medium term liquidity position. COVID-19 Impact Assessment on Going Concern The Company enjoys a reliable annuity income stream from blue chip customers. This annuity revenue stream enables us to map and comfortably manage cashflows for the next 12 months without the assumption of any new business. Principles of Consolidation The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Aeeris Ltd) and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in Note 13. The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 17 Business Combinations Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation of its assets and liabilities. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is obtained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed are recognised. When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date. All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial instrument, are recognised as expenses in profit or loss when incurred. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase. Goodwill Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess of the sum of:i.The consideration transferred;ii.Any non-controlling interest (determined under either the full goodwill or proportionate interestmethod); andiii.The acquisition date fair value of any previously held equity interest; over the acquisition date fairvalue of any identifiable assets acquired.The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity interest shall form the cost of the investment in the separate financial statements.Fair value remeasurements in any pre-existing equity holdings are recognised in profit or loss in the period in which they arise. Where changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profit or loss.Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates.Goodwill is tested for impairment annually and is allocated to the Group’s cash-generating units or groups of cash-generating units, representing the lowest level at which goodwill is monitored and not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the entity disposed of.Changes in the ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions and do not affect the carrying amounts of goodwill. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 18 Income Tax The income tax expense for the year comprises current income tax expense and deferred tax expense. Current income tax expense charged to profit or loss is the tax payable on taxable income for the current period. Current tax liabilities/(assets) are measured at the amounts expected to be paid to/(recovered from) the relevant taxation authority using the tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense is charged or credited directly to equity instead of profit or loss when the tax relates to items that are recognised outside profit or loss. Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. Fair Value of Assets and Liabilities The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly transaction between independent, knowledgeable and willing market participants at the measurement date. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 19 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 or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period. 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.Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.Property Freehold land and buildings are carried at their fair value (being the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less accumulated depreciation for buildings.Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in equity; all other decreases are recognised in profit or loss.Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.Plant and Equipment Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 20 Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.Depreciation The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over the asset’s useful life to the consolidated group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Plant and equipment 5-33%Plant and equipment leased to external parties 10-20%The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the entity commits itself to either the purchase or sale of the asset. Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 21 Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss. The Group does not designate any interests in subsidiaries, associates or joint ventures as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. i.Financial assets at fair value through profit or lossFinancial assets are classified at “fair value through profit or loss” when they are held for trading forthe purpose of short-term profit taking, derivatives not held for hedging purposes, or when they aredesignated as such to avoid an accounting mismatch or to enable performance evaluation where agroup of financial assets is managed by key management personnel on a fair value basis in accordancewith a documented risk management or investment strategy. Such assets are subsequently measuredat fair value with changes in carrying amount being included in profit or loss.ii.Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that arenot quoted in an active market and are subsequently measured at amortised cost. Gains or losses arerecognised in profit or loss through the amortisation process and when the financial asset isderecognised.iii.Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixedor determinable payments, and it is the Group’s intention to hold these investments to maturity. Theyare subsequently measured at amortised cost. Gains or losses are recognised in profit or loss throughthe amortisation process and when the financial asset is derecognised. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 22 iv.Available-for-sale investmentsAvailable-for-sale investments are non-derivative financial assets that are either not capable of beingclassified into other categories of financial assets due to their nature or they are designated as such bymanagement. They comprise investments in the equity of other entities where there is neither a fixedmaturity nor fixed or determinable payments.They are subsequently measured at fair value with any remeasurements other than impairment lossesand foreign exchange gains and losses recognised in other comprehensive income. When the financialasset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised inother comprehensive income is reclassified into profit or loss.Available-for-sale financial assets are classified as non-current assets when they are not expected tobe sold within 12 months after the end of the reporting period. All other available-for-sale financialassets are classified as current assets.v.Financial liabilitiesNon-derivative financial liabilities other than financial guarantees are subsequently measured atamortised cost. Gains or losses are recognised in profit or loss through the amortisation process andwhen the financial liability is derecognised.Impairment A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 23 When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Group recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.Derecognition Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.Impairment of Assets At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information, including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use.Intangibles Other Than Goodwill IT Research and Development Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when technical feasibility studies identify that the project is expected to deliver future economic benefits and these benefits can be measured reliably. IT research and development costs are amortised over 5 years using the prime cost method.Employee Benefits Short-Term Employee Benefits Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 24 The Group’s obligations for short-term employee benefits such as wages, salaries, superannuation and leave are recognised as a part of current trade and other payables in the statement of financial position. The Group’s obligations for employees’ annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.Other Long-Term Employee Benefits At this stage there are no long-term leave entitlements. Equity-Settled Compensation The Group provides compensation benefits to employees (including directors) of the Group in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by a Black Scholes model. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting date’). The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share. Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 25 Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the statement of financial position.Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. When the inflow of consideration is deferred, it is treated as the provision of financing and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.Subscription Income Revenue from subscriptions is recognised over the period which the relevant service is provided. Interest Revenue Interest revenue is recognised using the effective interest rate method. Rendering of Services Revenue in relation to rendering of services depends on whether the outcome of the services can be measured reliably. If this is the case, then the stage of completion of the service is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably measured, then revenue is recognised to the extent of expenses recognised that are recoverable. Trade and Other Receivables Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade and Other Payables Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 26 Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements is presented. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Key Estimates Capitalisation of development costs Development costs associated with intangible assets are only capitalised by the Group when it can demonstrate the technical feasibility of completing the asset so that the asset will be available for use or sale, how the asset will generate future economic benefits and the ability to measure reliably the expenditure attributable to the intangible asset during its development. Key Judgements Share-based payment transactions The directors measure the cost of equity-settled share-based payment transactions with employees by reference to the fair value of the equity instruments at grant date. The fair value is determined by an external valuer using the Black Scholes Model simulation. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the annual reporting period but may impact expenses and equity. Revenue The directors have assessed the impact of AASB 15: Revenue from Contracts with Customers on the financial statements and have determined that other than unearned revenue, the Group has recognised revenue to depict the transfer of services to customers in an amount that reflects the consideration to which the Group expects to be entitled in exchange for the services. Unearned revenue The directors have assessed the impact of AASB 15: Revenue from Contracts with Customers on the financial statements and have determined that unearned revenue reflects the value of consideration that has or will be received before the transfer of services is made to customers. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 27 NOTE 2. Parent Information The following information has been extracted from the books and records of the financial information of the parent entity and has been prepared in accordance with Australian Accounting Standards. 2021 2020 Statement of Financial Position $ $ ASSETS Current Assets 567,097 565,918 Non-Current Assets 4,725,228 4,400,358 TOTAL ASSETS 5,292,325 4,966,276 LIABILITIES Current Liabilities - - Non-Current Liabilities - - TOTAL LIABILITIES - - EQUITY Issued Capital 5,019,351 5,019,351 Share Based Payments Reserve 81,218 81,218 Retained Earnings 191,756 (134,293) TOTAL EQUITY 5,292,325 4,966,276 Statement of Profit or Loss Total Profit/(loss) 1,179 (143,761) Guarantees Aeeris Ltd did not enter into any deed of cross guarantees during the reporting period. Contingent Liabilities Aeeris Ltd does not have any contingent liabilities. Contractual Commitments Aeeris Ltd does not have any contractual commitments. Consolidated 30-Jun-2021Consolidated 30-Jun-2020NOTE 3. Revenue and Other Income $ $ Revenue from Ordinary Activities Sales Revenue: Subscription Income 1,603,096 1,504,450 Rendering of services 234,595 156,798 1,837,691 1,661,248 Other income: Interest received 1,918 4,975 COVID-19 stimulus support 222,127 97,923 Research and development refund 475,231 - 699,276 102,898 Total revenue and other income 2,536,967 1,764,146 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 28 Consolidated 30-Jun-2021Consolidated 30-Jun-2020$ $ NOTE 4. Employee Benefits Expense Total wages, salary, super and employee expense 878,615 639,411 NOTE 5. Other Expenses from Ordinary Activities Expenses included in other expenses Internet & Hosting Charges Legal Costs Travelling & Accommodation Corporate Expenses Corporate Secretarial Other Administration & Operating Costs 116,908 2,520 12,964 45,002 24,045 178,079 98,188 610 12,292 59,645 27,605 102,592 Total Other Expenses 379,518 300,932 NOTE 6. Income Tax Expense The components of tax (expense)/income comprise: Current year tax expense 121,642 - Recoupment of prior year tax losses (121,642) - - - NOTE 7. Key Management Personnel Compensation Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or payable to each member of the Group’s key management personnel (KMP) for the year ended 30 June 2021. The totals of remuneration paid to KMP of the company and the Group during the year are as follows: 2021 2020 $ $ Short-term employee benefits 176,382 162,242 Share-based payments -101,675Total KMP compensation 176,382 263,917 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 29 Short-term employee benefits These amounts include fees and benefits paid to the executive chair and non-executive directors as well as all salary, paid leave benefits, fringe benefits and cash bonuses awarded to executive directors and other KMP. Share-based Payments These amounts represent the expense related to the participation of KMP in equity-settled benefit schemes as measured by the fair value of the options, rights and shares granted on grant date. Further information in relation to KMP remuneration can be found in the directors’ report. Consolidated 30-Jun-2021Consolidated 30-Jun-2020$ $ NOTE 8. Auditors’ Remuneration Remuneration of the auditor for: •Auditing or reviewing the financial statements22,525 20,000 NOTE 9. Dividends No dividends were declared or paid during the 2021 financial year. NOTE 10. Earnings Per Share Basic and diluted earnings/(loss) per share (cents) 0.78 (0.26) Earnings/(loss) used to calculate basic and diluted earnings/(loss) per share ($) 467,854 (154,801) Weighted average number of ordinary shares used in the calculation of basic and diluted loss per share 59,973,858 59,693,079 The potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these options would result in a decrease in the net gain/(loss) per share. NOTE 11. Cash and Cash Equivalents Cash at Bank 1,426,958 799,857 Reconciliation of cash Cash and Cash Equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows: Cash at Bank 1,426,958 799,857 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 30 Consolidated 30-Jun-2021Consolidated 30-Jun-2020NOTE 12. Trade and Other Receivables $ $ Current Trade Receivables 191,354 326,376 GST Paid 10,434 7,808 Total current trade and other receivables 201,788 334,184 Credit Risk The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties other than those receivables specifically provided for and mentioned within Note 25. The class of assets described as “trade and other receivables” is considered to be the main source of credit risk related to the Group. The following table details the Group’s trade and other receivables exposure to credit risk with ageing analysis and impairment provided for thereon. Amounts are considered as “past due” when the debt has not been settled, with the terms and conditions agreed between the Group and the customer or counterparty to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group. The balances of receivables that remain within initial trade terms are considered to be of high credit quality. Gross Amount Past Due and Impaired Past Due but Not Impaired (Days Overdue) Within Initial Trade Terms 2021 <30 31-6061-90>90Trade Receivables 201,788 -171,476-- 30,312171,476 Total 201,788 -171,476-- 30,312171,476 2020 <30 31-6061-90>90Trade Receivables 334,184 -330,935-1,7201,529 334,184 Total 334,184 -330,935-1,7201,529 334,184 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 31 NOTE 13. Interests in Subsidiary Subsidiary The subsidiary listed below has share capital consisting solely of ordinary shares which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by the Group. The subsidiary’s principal place of business is also its country of incorporation. Name of Subsidiary Principle Place of Business Ownership Interest Held by the Group 2021 2020 Early Warning Network Pty Ltd Australia 100% 100% Consolidated 30-Jun-2021$ Consolidated 30-Jun-2020$ NOTE 14. Property, Plant and Equipment Office Equipment At cost 38,007 32,855 Accumulated depreciation (31,343) (29,576) 6,664 3,279 Camera Equipment At cost 50,288 50,288 Accumulated depreciation (48,642) (47,548) 1,646 2,740 Furniture and Fittings At cost 7,890 5,640 Accumulated depreciation (2,733) (2,394) 5,157 3,246 Motor Vehicles At cost 12,000 12,000 Accumulated depreciation (9,977) (9,303) 2,023 2,697 Total Property, Plant and Equipment 15,490 11,962 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 32 Consolidated 30-Jun-2021$ Consolidated 30-Jun-2020$ NOTE 15. Trade and Other Payables Current Trade Payables 79,998 143,959 Superannuation Liability 6,100 5,991 GST Collected 40,347 26,306 PAYG Withholding 26,641 10,702 Sundry Creditors 25,084 4,989 Unearned Income 388,333 328,742 566,503 520,689 NOTE 16. Provisions Current Annual Leave Provision Opening Balance at 1 July 41,357 32,584 Net movement during the year (5,818) 8,773 Balance at 30 June 35,539 41,357 Annual Leave Provision Provision for employee benefits represents amounts accrued for annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the Group does not expect the full amount of annual leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Group does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. Non-Current Long Service Leave Provision Opening Balance at 1 July - - Net movement during the year 49,534 - Balance at 30 June 49,534 - Long Service Leave Provision The non-current portion for the provision includes the total amount accrued for long service leave entitlements due to employees having completed between 5 to 10 years of service. The group does not expect the full amount of long service leave balances to be classified as current liabilities until any employees have completed 10 years of service. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 33 Consolidated 30-Jun-2021 $ Consolidated 30-Jun-2020 $ NOTE 17. Issued Capital 59,973,858 (2020: 59,973,858) Fully Paid Ordinary Shares 5,100,568 5,100,568 Consolidated 30-Jun-2021 No. Consolidated 30-Jun-2020 No. Ordinary Shares At the beginning of the reporting period 59,973,858 56,658,858 Shares Issued – 1 August 2019 - 3,315,000 At the end of the reporting period 59,973,858 59,973,858 Ordinary shareholders participate in dividends and the proceeds on winding-up of the parent entity in proportion to the number of shares held. At the shareholders’ meeting each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. Options For more information relating to the Aeeris Ltd employee option plan, including details of options issued, exercised and lapsed during the financial year and the options outstanding at year-end, refer to Note 22. For information relating to share options issued to key management personnel during the financial year, refer to Note 24. Capital Management Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term shareholder value and ensure that the Group can fund its operations and continue as a going concern. The Group’s debt and capital include financial liabilities and ordinary share capital and is not subject to any externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues. NOTE 18. Capital and Leasing Commitments There are no capital or leasing commitments at the date of this report. NOTE 19. Contingent Liabilities and Contingent Assets The company does not have any contingent liabilities or contingent assets. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 34 Note 20. Operating Segments The Group operates predominantly in one business and one geographical segment being early warning notifications within Australia. Consolidated 30-Jun-2021 $ Consolidated 30-Jun-2020 $ Revenue Operating revenue 1,837,691 1,661,248 Interest revenue 1,918 4,975 Other revenue 222,127 97,923 Research and development refund 475,231 - Total revenue 2,536,967 1,764,146 Expenses Other expenses (2,065,239) (1,913,857) Depreciation, amortisation & impairment expenses (3,874) (5,090) Total expenses (2,069,113) (1,918,947) Segment results 467,854 (154,801) Assets Current assets 1,696,369 1,142,513 Property plant & equipment 15,490 11,962 Total Assets 1,711,859 1,154,475 Current Liabilities 602,042 562,046 Non-current liabilities 49,534 - Total Liabilities 651,576 562,046 Net Assets 1,060,283 592,429 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 35 NOTE 21. Cash Flow Information Consolidated 30-Jun-2021 $ Consolidated 30-Jun-2020 $ Reconciliation of Cash Flow from Operating Activities Profit/(loss) during the year 467,854 (154,801) Non-Cash flows Depreciation, amortisation and impairment 3,874 5,090 Share based payments - 162,435 Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries Decrease/(increase) in trade and other receivables 132,396 (181,580) (Increase)/decrease in prepayments (59,151) (1,183) Increase/(decrease) in trade and other payables 45,814 84,105 Increase/(decrease) in provisions 43,716 8,773 Cash flows from operating activities 634,503 (77,161) NOTE 22. Share-Based Payments A summary of the movements of all options issued is as follows: Consolidated 30-Jun-2021 No. Consolidated 30-Jun-2020 No. Options Outstanding as at 1 July - 9,190,000 Movements during the year - (9,190,000) Options Outstanding at 30 June - - Options exercisable as at 30 June - - All options outstanding expired on the 31st of December 2019. Performance Rights Outstanding as at 1 July 3,312,500 - Performance Rights issued during the year - 6,630,000 Performances Rights converted during the year - (3,317,500) Performance Rights Outstanding at 30 June 3,312,500 3,312,500 The value of the performance rights issued during the year were $nil (2020: $162,435). There were no shares granted to key management personnel during the year. NOTE 23. Events after the Reporting Period There have been no events after the reporting period and there has been no material impact on the Financial Statements from COVID-19 after balance date. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 36 NOTE 24. Related Party Transactions The Group’s main related parties are as follows: • Key Management Personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel. For details of disclosures relating to key management personnel, refer to Note 7. • Entities subject to significant influence by the Group An entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity that holds significant influence. Significant influence may be gained by share ownership statute or agreement. • Other Related Parties Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control. Transactions with Related Parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The following transactions occurred with related parties: Kerry Plowright through his controlled entity WASPZ Pty Ltd, was paid $24,000 (2020: $18,000) for director’s fees including superannuation and $104,382 (2020: $108,242) for consulting services rendered during the year. Bryce Reynolds through his related party entity Bluestar Management Pty Ltd, was paid $24,000 (2020: $18,000) for director’s fees including superannuation during the year. Nathan Young through his related party entity Mychi Le Investments Pty Ltd, was paid $24,000 (2020: $18,000) for director’s fees including superannuation during the year. Margo Plowright was paid $24,914 (2020: $65,121) for services rendered during the year. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 37 NOTE 25. Financial Risk Management The Group’s financial instruments consist mainly of deposits with banks, accounts receivables and payables and loans to subsidiaries. The totals for each category of financial instruments, measured in accordance with AASB 139: Financial Instruments: Recognition and Measurement as detailed in the accounting policies to these financial statements, are as follows: Consolidated Group Note 2021 2020 $ $ Financial Assets Cash and Cash Equivalents 11 1,426,958 799,857 Trade and Other Receivables 12 201,788 334,184 Total Financial Assets 1,628,746 1,134,041 Financial Liabilities Trade and Other Payables 15 566,503 520,689 Total Financial Liabilities 566,503 520,689 Financial Risk Exposures and Management The Group has no exposure through financial instruments and therefore has minimal credit risk and liquidity risk. There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies and processes for managing or measuring the risks from the previous period. a)Credit RiskExposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. Credit risk is managed through the maintenance of procedures (such as the utilisation of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and counterparties), ensuring to the extent possible that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment. Depending on the division within the Group, credit terms are generally 30 days from the invoice date. Credit Risk Exposures The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period, excluding the value of any collateral or other security held, is equivalent to the carrying amount and classification of those financial assets (net of any provisions) as presented in the statement of financial position. Credit risk also arises through the provision of financial guarantees, as approved at board level, given to parties securing the liabilities of certain subsidiaries. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 38 The Group has no significant concentrations of credit risk with any single counterparty or group of counterparties. Details with respect to credit risk of trade and other receivables are provided in Note 12. Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality. Aggregates of such amounts are detailed in Note 12. b) Liquidity Risk Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms: • preparing forward-looking cash flow analysis in relation to its operating, investing and financing activities; • obtaining funding from a variety of sources; • maintaining a reputable credit profile; • managing credit risk related to financial assets; • only investing surplus cash with major financial institutions; and • comparing the maturity profile of financial liabilities with the realisation profile of financial assets. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management’s expectations that banking facilities will be rolled forward. Consolidated Group Within 1 Year 1 to 5 Years Over 5 Years Total 2021 2020 2021 2020 2021 2020 2021 2020 Financial Liabilities due for Payment Trade and other Payables 566,503 520,689 - - - - 566,503 520,689 Total Expected Outflows 566,503 520,689 - - - - 566,503 520,689 Financial Assets – Cash Flows Realisable Trade and other Receivables 201,788 334,184 - - - - 201,788 334,184 Total anticipated inflows 201,788 334,184 - - - - 201,788 334,184 Net (outflow)/inflow on financial instruments (364,715) (186,505) - - - - (364,715) (186,505) AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 39 Fair Value Estimations The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented in the statement of financial position. Refer to Note 26 for detailed disclosures regarding the fair value measurement of the Group’s financial assets and financial liabilities. Consolidated Group Note 2021 2020 Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets Cash and Cash Equivalents 11 1,426,958 1,426,958 799,857 799,857 Trade and Other Receivables 12 201,788 201,788 334,184 334,184 Total Financial Assets 1,628,746 1,628,746 1,134,041 1,134,041 Financial Liabilities Trade and Other Payables 15 566,503 566,503 520,689 520,689 Total Financial Liabilities 566,503 566,503 520,689 520,689 Cash and cash equivalents, trade and other receivables, and trade and other payables are short-term instruments in nature whose carrying amounts are equivalent to their fair values. NOTE 26. Fair Value Measurements The group does not subsequently measure any liabilities at fair value on a non-recurring basis. 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 Level 2 Level 3 Measurements based on quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. 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. AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 40 Valuation Techniques The Group 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 Group are consistent with one or more of the following valuation approaches: •Market Approach: valuation techniques that use prices and other relevant information generatedby market transactions for identical or similar assets or liabilities•Income Approach: valuation techniques that convert estimated future cash flows or income andexpenses into a single discounted present value•Cost Approach: valuation techniques that reflect the current replacement cost of an asset at itscurrent 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 Group 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. The following tables provide the fair values of the Group’s assets and liabilities measured and recognised on a recurring basis after initial recognition and their categorisation within the fair value hierarchy: 30 June 2021 Recurring Fair Value Measurements Note Level 1 Level 2 Level 3 Total Financial Assets Cash and Cash Equivalents 11 1,426,958 - - 1,426,958 Trade and other Receivables 12 201,788 - - 201,788 Prepayments 67,623 - - 67,623 Total Financial Assets 1,696,369 - - 1,696,369 Non Financial Assets Property Plant and Equipment 14 15,490 - - 15,490 Total Non Financial Assets 15,490 - - 15,490 Liabilities Trade and other Payables 15 566,503 - - 568,429 Provisions 16 85,073 - - 85,073 Total Liabilities 651,576 - - 653,502 There were no transfers between Level 1 and level 2 for assets and liabilities measured at fair value on a recurring basis during the reporting period (2020: no transfers). AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Aeeris Ltd ABN 18 166 705 595 Page 41 Consolidated 30-Jun-2021 $ Consolidated 30-Jun-2020 $ Note 27. Reserves Share based payments reserve The share based payments reserve records items recognised as expenses on valuation of employee share based payments. Opening Balance 81,218 94,967 Options forfeited during the year - (94,967) Performance rights issued during the year - 162,435 Conversion of performance rights - (81,217) Balance as at 30 June 81,218 81,218 NOTE 28. Accumulated Losses Accumulated losses at the beginning of the financial year (4,589,357) (4,529,523) Net profit/(loss) attributable to members of the group 467,854 (154,801) Transfer from share based payments reserve - 94,967 Accumulated losses at the end of the financial year (4,121,503) (4,589,357) NOTE 29. Company Details The registered office of the Company is: Level 12 225 George Street SYDNEY NSW 2000 The principal place of business is: Level 1 261 George Street SYDNEY NSW 2000 AEERIS LTD ABN 18 166 705 595 AND CONTROLLED ENTITIES Aeeris Ltd ABN 18 166 705 595 Page 42 Directors’ declaration In accordance with a resolution of the directors of Aeeris Ltd, the directors of the Company declare that: 1.The financial statements and notes, as set out on pages 12 to 41, are in accordance with theCorporations Act 2001 and:(a)comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to thefinancial statements, constitutes compliance with International Financial Reporting Standards(IFRS); and(b)give a true and fair view of the financial position as at 30 June 2021 and of the performance forthe year ended on that date of the consolidated group.2.In the director’s opinion there are reasonable grounds to believe that the Company will be able to payits debts as and when they become due and payable.3.The directors have been given the declarations required by s 295A of the Corporations Act 2001 fromthe Chief Executive Officer and Chief Financial Officer.Chairman: _____________________________ Mr Kerry Plowright Dated this 30th day of August 2021 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AEERIS LIMITED ABN 18 166 705 595 AND CONTROLLED ENTITIES Report on the Audit of the Financial Report Opinion We have audited the accompanying financial report of Aeeris Limited (the company) and it’s subsidiary (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion: (a) the financial report of the Group is in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and ii. complying with Australian Accounting Standards and the Corporations Regulations 2001. (b) the financial report also complies with the International Financial Reporting Standards as disclosed in Note 1. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Aeeris Limited, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How Our Audit Addressed the Key Audit Matter Revenue recognition – accuracy of revenue recorded given the complexity of systems Revenue represents a material balance and we have identified the following types of transactions and assertions related to revenue recognition which give rise to key risks: • the completeness of revenue recorded as a result of the reliance on output of the billing systems. Refer to note 1 – Basis of preparation (Critical accounting estimates and judgments). In responding to this area of focus, our audit approach included controls testing and substantive procedures covering, in particular: • testing control procedures in place around systems that bill revenue streams; • performing tests on the accuracy of customer bill generation on a sample basis and testing of a sample of the credits and discounts applied to enterprise customer bills; • testing cash receipts for a sample of customers back to the customer invoice; • testing the costs associated to the delivery of sales; and • considering COVID-19 impacts to collection of trade receivables. We also considered the application of the Group’s accounting policies to amounts billed. Based on our work, we noted no significant issues on the accuracy of revenue recorded in the year. Going Concern Following previous operating losses and cash flow deficits, there is a heightened degree of judgement as to the group’s ability to continue as a going concern through the assessment period. Accordingly, we considered the appropriateness of the going concern assumption, the question as to whether there is a material uncertainty and the adequacy of management’s disclosure to be a key risk. We have challenged the key assumptions in management’s forecast cash flows for the next 12 months (base case and downside possibilities) by: • • comparing the cash flow forecasts with the Board approved budget, and obtaining explanations for any significant differences; • • ensuring consistency between the forecasts in the group going concern model and those used in the asset value-in-use calculations for impairment assessment purposes; • • assessing the historical accuracy of forecasts prepared by management; • • testing the mechanical accuracy of the model used; • • performing stress tests for a range of reasonably possible scenarios on management’s cash flow for the going concern period; • • challenging management’s plans for mitigating any identified exposures, obtain additional sources of financing; • • considering whether the disclosures relating to going concern referred to in the basis of preparation section of the accounting policies are balanced, proportionate and clear; and • Consider COVID-19 impacts cash flow forecast assumptions. We have determined that there are no material uncertainties that may cast significant doubt on the group’s ability to continue as a going concern. (cid:3)(cid:3)There were no restrictions on our reporting of Key Audit matters. (cid:3) Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: – Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. – Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. – Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. – Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included on pages 8 to 10 of the directors’ report for the year ended 30 June 2021. In our opinion the remuneration report of Aeeris Limited for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of Aeeris Limited are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. MNSA Pty Ltd Allan Facey Sydney 30th August 2021 conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. – Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. – Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. ANNUAL REPORT 2 0 2 1 Additional Information for Listed Public Companies The following information is current as at 18 October 2021. SHAREHOLDING Distribution of Shareholders Category (size of holding) Holders 1-1,000 1,001-5,000 5,001-10,000 10,001-100,000 100,001-99,999,999,999 Totals VOTING RIGHTS 25 26 83 122 71 327 Units 2,139 86,195 677,594 4,301,464 Number % 0.000 0.120 0.960 6.070 65,746,466 92.840 70,813,858 100.000 Each ordinary share is entitled to one vote when a poll is called, otherwise each member 9 TELDAR CORPORATION PTY LIMITED10 UBS NOMINEES PTY LTD 11 VERITAS CONSOLIDATED PTY LTD 12 NATIONAL NOMINEES LIMITED 13 BNP PARIBAS NOMINEES PTY LTD 14 VERITAS CONSOLIDATED PTY LTD 15 BLUESTAR MANAGEMENT PTY LTD 16 MAD FISH MANAGEMENT PTY LTD 17 18 19 BLUESTAR MANAGEMENT PTY LTD SYMINGTON PTY LTD STEPHEN ALFRED ABOUD 20 MAMBAT PTY LTD 2,100,000 2,000,000 1,881,350 1,465,000 1,032,888 957,612 875,000 712,237 627,358 600,000 600,000 513,596 2.966% 2.824% 2.657% 2.069% 1.459% 1.352% 1.236% 1.006% 0.886% 0.847% 0.847% 0.725% Total Securities of Top 20 Holdings 54,017,821 76.281% Total Securities 70,813,858 The names of the substantial shareholders as disclosed in substantial holding notices given to the Company are: present at a meeting or by proxy has one vote on a show of hands. There are no other Shareholder Number of Shares % Issued Capital classes of equity securities. 20 LARGEST SHAREHOLDERS No. Name 1 2 K & M PLOWRIGHT SUPER PTY LIMITED JETOSEA PTY LIMITED 3 MR KERRY MAURICE PLOWRIGHT 4 MS MARGO PLOWRIGHT 5 JETOSEA PTY LTD 6 WASPZ PTY LIMITED 7 8 CERTANE CT PTY LTD DMX CAPITAL PARTNERS LIMITED XXVIII Number of Ordinary Shares Held % of Issued Capital 8,564,780 6,100,000 5,782,298 4,715,770 4,663,252 4,085,000 3,375,000 3,366,680 12.095% 8.614% 8.165% 6.659% 6.585% 5.769% 4.766% 4.754% Mr Kerry Plowright# K & M Plowright Super Pty Limited Waspz Pty Limited Ms Margo Plowright Mr. Bryce Reynolds* Jetosea Pty Limited 22,376,622 5,012,858 4,085,000 5,188,774 4,591,320 11,178,252 31.60% 7.08% 5.77% 7.33% 6.48% 15.79% # Includes the substantial shareholders associates’ holdings being K & M Plowright Super Pty Limited, Waspz Pty Limited and Ms. Margo Plowright * Includes related parties Unmarketable Holders Includes the substantial shareholders associates’ holdings being K & M Plowright Super Pty Limited, Waspz Pty Limited and Ms. Margo Plowright Performance Rights Aeeris has 3,312,500 Performance Rights on issue held by 13 holders. Each Performance Right converts into one fully paid ordinary share once vesting conditions have been met. XXIX ANNUAL REPORT 2 0 2 1 Corporate Directory Directors Kerry Plowright Share Registry Boardroom Pty Ltd Executive Chairman & CEO Level 12, 225 George Street Bryce Reynolds Non-Executive Director Nathan Young Non-Executive Director Company Secretary Elissa Hansen Registered Office Aeeris Limited ACN 166 705 595 Sydney NSW 2000 Telephone +61 2 9290 9600 Facsimile +61 2 9279 0664 Corporate Advisor Veritas Securities Limited Level 4, 175 Macquarie Street Sydney NSW 2000 Phone +61 2 8252 3201 Facsimile +61 2 8252 3299 Auditor Mark Schiliro & Associates (MNSA) Pty Ltd Level 12, 225 George Street Level 1, 283 George Street Sydney NSW 2000 Phone +61 2 6674 5717 Website: www.aeeris.com Sydney NSW 2000 ASX Code AER XXX XXXI XXXII 225 George Street | Sydney | NSW | 2000 | Australia PO Box 1915 | Kingscliff | NSW | 2487 | Australia aeeris.com | ewn.com.au