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AML3D Limited // ASX: AL3 // ABN 55 602 857 983
Annual Report
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
1
Contents
Chairman’s and Managing Director’s Report
3
Board
6
Directors’ Report
8
Remuneration Report
12
Auditor Independence Declaration
23
Audit Report
24
Financial Statements
29
Consolidated Entity Disclosure Statement
51
Directors’ Declaration
51
Additional Shareholder Information
53
Corporate Directory
54
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Chairman’s &
Managing Director’s Report
Dear Shareholders,
It is our pleasure to present to you AML3D Limited’s (‘AML3D’ or
the ‘Company’) Annual Report for the year ended 30 June 2024.
AML3D’s primary focus during the year was continued delivery of
the Company’s successful “US Scale-up” strategy. The “US Scale-
up” strategy is focused on supplying the AML3D’s proprietary
ARCEMY® metal 3D printing systems and contract manufacturing
services to industrial manufacturers in and supporting the US
Defence, marine and aerospace industries. The “US Scale-up”
strategy underpinned a more than ten-fold increase in AML3D’s
revenues during the financial year, when compared to the prior year.
Some significant achievements during the year include:
•
The appointment of Peter Goumas as President
AML3D USA Inc.
•
Establishing a US headquarters and manufacturing hub
to reduce lead and delivery times and support access to
US Defence contracts.
•
An order for a large scale, ARCEMY® ‘X – Edition 6700’
system for use at the US Navy’s Centre of Excellence in
Danville, Virginia.
•
The lease of an ARCEMY® system to US Navy submarine
component partner, Laser Welding Solutions, was subsequently
converted into a sale.
•
An order for a large scale, ARCEMY® ‘X – Edition 6700’
system to allow US Defence contractor Cogitic Corporation
to supply metal 3D printed components to the US Navy
Submarine program.
•
An order for the largest, custom built ARCEMY® system ever
built for Austal USA’s Advanced manufacturing centre in
Charlottesville Virginia.
•
A contract manufacturing order to solve a US Navy supply
chain challenge by developing and 3D metal printing a high
demand, non-safety critical, replacement component
no longer available from the OEM.
•
A Nickle-Aluminium-Bronze component order to supply a 1 tonne
prototype part to support the US Navy’s Submarine program.
•
An extension of an alloy testing contract to demonstrate
AML3D’s ability to metal 3D print Nickel-Aluminium-Bronze
alloys that meet the standards needed to support the
US Navy’s Submarine Industrial Base.
•
A Copper-Nickel alloy testing contract for US Department
of Defence applications and a subsequent expanded
Copper Nickel alloy testing program for the US Navy’s
submarine qualification program.
•
A part manufacturing and testing contract to supply BAE Systems
Maritime Australia with a prototype component in support of the
Royal Australian Navy’s new Hunter class frigate program.
•
Contracts to support Aerospace and Marine applications of
advanced metal 3D printing for the Australian Government
Defence Science and Technology Group.
Through the “US Scale-up” strategy AML3D is realising significant
value from the Company’s proven, proprietary, metal 3D-printing
technology and delivered its most successful year on record in FY24.
95% of AML3D’s revenues in the year were derived from US sales.
The Company is expanding its sales of ARCEMY® industrial scale,
advanced Wire-arc Additive Manufacturing (WAM®) systems, with
a total of 4 systems commissioned in FY24. A further 4 systems
have been constructed, including 2 additional systems that have
been leased with an option to buy by US Navy supplier Laser
Welding Solutions. Post year end, the option to purchase the initial
ARCEMY® system leased to Laser Welding Solutions was exercised,
which includes a one-year service and maintenance contract.
Alongside ARCEMY® system sales to the US Defence sector, AML3D
continues to win contract manufacturing orders that demonstrate
how the Company’s technology advantage can solve supply change
challenges. AML3D used its proprietary software to reverse engineer
and 3D metal print a high demand, non-safety critical US Navy
Submarine component that was no longer being supplied by the
original equipment manufacturer. AML3D also demonstrated additional
applications for its advanced manufacturing technology within the
US Defence sector through alloy testing and prototyping contracts.
During the year, AML3D announced the establishment of a US
headquarters and manufacturing hub. This US hub is expected to be
fully operational in the first half of the 2025 Financial Year and allow
AML3D to significantly reduce production lead and delivery times and
to be better positioned to compete for lucrative US Defence contracts
restricted to US based manufacturers and access opportunities in
the wider US Defence, Aerospace, Marine and Oil & Gas sectors.
AML3D also made significant progress in its strategy to access
significant global Defence, Aerospace, Marine and Oil & Gas
markets outside of the US. The Company signed contracts to
supply BAE Systems Maritime Australia with a prototype part to
support the Royal Australian Navy’s Hunter class frigate program,
and to supply a complex rocket nose cone assembly and marine
test parts to the Australian Government Defence Science and
Technology Group. AML3D is also in the early stages of building
a sales pipeline to meet demand for the Company’s advanced
manufacturing technology from the UK Defence sector.
AML3D believes our technology advantage will transform metal
manufacturing and help to rebuild sovereign manufacturing capabilities
in the markets we serve. AML3D’s ARCEMY® systems can be
deployed at the point of need to deliver large-scale, custom-built
components with significantly shorter lead times. Our technology
has met some of the most rigorous civil and military accreditation
standards, including the award, in FY24, of the AS9100D:2016
Aerospace Quality Systems Accreditation. The ability to manufacture
high quality metal components faster than traditional casting and
forging processes, with lower waste, reduced emissions and
lower electricity consumption means AML3D can also be price
competitive and address customers sustainability requirements.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Financial Results
Revenue for the 2024 financial year was $7.32 million, compared
to $0.60 million in the prior year, which represents a 1,055%
increase. At $4.44 million, more than half, 61%, of AML3D’s FY24
revenues were derived from ARCEMY® system sales in the US.
A further 36%, or $2.66 million, of revenue was generated from
component manufacturing and alloy characterization and testing
contracts with the remaining 3% of revenue from recurring license
and lease fees. The EBITDA loss for FY24 of $3.31 million is 31%
lower than in the prior comparable period. The net loss after tax for
FY24 of $4.17 million, down 23% on the prior comparable period.
AML3D’s position at the leading edge of advanced manufacturing
technology is a key competitive advantage and one the Company
has invested in FY24 with an expansion of its software development
team and capabilities. AML3D is also investing to establish a
manufacturing hub in the US to maximise the growth opportunities
in that market. Overhead expenses of $8.09 million were $2.81
million higher than in FY23, largely attributable to the investment
in the “US Scale-up” strategy and software development team.
Immediate term value drivers – US Market
The US market remains AML3D’s most important growth market,
with the US Defence sector a primary driver of demand for ARCEMY®
system sales and contract manufacturing orders. The Company
signed a 64-month lease, in May 2024, on a modern, purpose-
built US manufacturing facility. This ready to use facility is in Stow,
Ohio, the manufacturing heartland of the US, is expected to be
fully operational in the first half of Financial Year 2025 and act as
AML3D’s US corporate, sales and manufacturing hub. AML3D’s
US operations are led by President, Pete Goumas, who is actively
building AML3D’s US teams. The US manufacturing hub will allow
AML3D to be more responsive to US customers needs and also
support access to lucrative International Traffic in Arms Regulated
(ITAR) Defence contracts that are limited to US based manufacturers.
During the year, AML3D received orders for ARCEMY® metal
3D printing systems to be deployed to the US Navy’s Centre of
Excellence in Danville, Virginia; US Navy supplier, Laser Welding
Solutions, manufacturing base in Houston Texas; US Defence
contractor Cogitic Corporation’s Colorado Springs facility and Austal
USA’s Advanced Technologies facility in Charlottesville Virginia.
Commissioning of the large scale ARCEMY® X 6700 system at
US Navy’s Centre of Excellence was completed in April 2024,
and commissioning of the Cogitic ARCEMY® X 6700 system was
completed in August 2024. An operational, small industrial scale
ARCEMY® 2600 system was air freighted to Laser Welding Solutions
from AML3D’s Adelaide, Australia base, in September 2023. The
Laser Welding Solutions ARCEMY® 2600 system was operating
under a lease agreement that was converted to sale in July 2024.
Two additional ARCEMY® 2600 systems have, subsequently, been
leased with an option to buy for use by Laser Welding Solutions.
Commissioning of the largest ever custom ARCEMY® system ordered
by Austal USA for its purpose-built Advanced Technologies facility
is expected in the first half of FY25. Austal’s investment in future
manufacturing capabilities and AML3D’s ARCEMY® system is to
allow Austal to support shipbuilding maintenance and the US Navy,
The acceleration of ARCEMY® system sales to support the US
Defence sector and in particular the US Navy’s Submarine industrial
base was complemented by several contract manufacturing
orders. In August 2023, AML3D received an order to 3D metal
print a complex, non-safety critical, replacement component used
in US Navy submarines. The replacement component was no
longer being produced by the original manufacturer and could not
be sourced from traditional manufacturers. AML3D solved this
supply chain issue by using its proprietary software to reverse
engineer the components design and then ARCEMY® 3D metal
print the part. This was followed, In September 2023, by an order to
produce a 1 tonne prototype part for the US submarine program.
In addition to fulfilling US Navy component orders, AML3D continued
to progress its US Navy alloy testing programs. In August 2023
the contract to test AML3D’s Nickel-Aluminium-Bronze alloys
and demonstrate they meet US Defence Additive Manufacturing
qualification thresholds was expanded to include additional
applications. This contract was followed in September 2023 by
a US submarine program Copper-Nickel alloy testing program that
was expanded in May 2024 with the signing of an additional purchased
order to increase the funding and scope of Copper-Nickel testing.
The US market is the largest additive manufacturing market in
the world. AML3D deployed 7 ARCEMY® systems to the US in
FY24, continues to experience strong demand for its technology
and is confident ARCEMY® sales momentum will continue.
Medium term value drivers
– additional significant global markets.
While AML3D’s primary focus is on maximizing growth opportunities
in the US market the Company’s growth strategy includes accessing
additional significant global Defence, Marine, Aerospace and Oil &
Gas markets. In December 2023, a prototype part manufacture and
testing contract was signed with BAE Systems Maritime Australia in
support for the Royal Australian Navy’s Hunter class frigate program.
This contract follows feasibility and commercial validation testing
programs that demonstrated the AML3D’s Advanced Wire-arc
Manufacturing (“WAM®”) meets the Royal Australian Navy’s standards.
The Company also signed a contract in April 2024 to provide Nickel-
Aluminium-Bronze and high strength duplex steel components
to the Australian Government Defence Science and Technology
Group for testing in marine applications. A second contract in
support of the Australian Government Defence Science and
Technology Group was signed with Toolcraft Australia in May
2024. This contract involved 3D metal printing a multi-stage nozzle
assembly for an aerospace Defence project. The multi-stage
nozzle assembly contract followed the success of a previous
contract to 3D print a 4-stage nozzle assembly in November 2021,
that delivered superior operational performance during testing.
AML3D has also identified demand for large-scale,
Advanced Wire-arc Manufacturing technology from the
UK Defence sector and has already begun the process of
developing and early-stage sales pipeline in the UK.
The establishment by AML3D of the US manufacturing hub, once
operational, is expected to free up capacity at AML3D’s Adelaide
manufacturing facility to support an ongoing expansion into the
Australian and UK Defence, Marine, Aerospace and Oil & Gas markets.
Medium and longer-term value drivers
– Technology Leadership
AML3D’s success in securing ARCEMY® system sales and contract
manufacturing orders are predicated on the Company’s technology
leadership. Maintaining this technology advantage is essential
to driving AML3D’s continued growth over the medium to longer
term. To ensure AML3D remains at the leading edge of advanced
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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manufacturing technology the Company has invested in expanding
its software development capabilities and the next generation of its
metal 3D printing technology. In June 2024, the Company announced
a $2.24 million investment to accelerate its next generation ARCEMY®
Increase Deposition Rates project. This new investment will be funded
by a $1.12 million grant from South Australia’s Economic Recovery
Fund, matched by contributions totalling the same value by AML3D.
In March 2024, AML3D announced it received the Aerospace
Quality Management System, AS9100D:2016 Accreditation for its
technology. This accreditation demonstrates the Company operates
to highest levels of quality, safety and reliability, as set out by the
Aerospace industry. AML3D is now one of only two wire additive
manufacturing companies in the world to have the competitive
advantage of AS9100D accreditation. This accreditation is expected
to strengthen AML3D’s existing relationship with existing, Tier 1,
global aerospace customers such as Boeing and the Company’s
ability to access new Aerospace markets and opportunities.
In addition to building AML3D’s technology leadership, the
Company continues to take steps to protect its technology.
Early in FY2024, AML3D secured a European patent for its
WAM® process, that is aligned with the Australian patent granted
in June 2021 and provides coverage over AML3D’s method
and apparatus for manufacturing 3D metal parts. European
patent protection for AML3D’s WAM® process strengthens the
Company’s competitive advantage as it begins to develop its
presence in key European Defence markets such as the UK.
Capital Management
The Company’s balance sheet remains strong following
a successful $6.9 million (before costs) capital raise in
May 2024. As at 30 June 2024, the Company had $7.79
million in cash and cash equivalents on hand.
Proceeds from the capital raise are being used to:
•
Establish AML3D’s US manufacturing hub and build the US
corporate, sales, and maintenance teams;
•
Invest in research and development to maintain AML3D’s
technology advantage;
•
Increase its strategic position in the US Defence sector.
Events subsequent to FY24
The momentum within AML3D’s Us “Scale-up” strategy
continued post year end with the sale of an ARCEMY® 2600
Edition system for $1.1 million to Laser Welding Solutions.
Laser Welding Solutions had been operating the ARCEMY®
system under a lease agreement since September 2023.
AML3D also advanced its broader growth strategy to access
additional significant global markets with an order to upgrade a
robotic, point to point, welding system to ARCEMY® specification
for Century Engineering based in Adelaide Australia. Century
Engineering manufactures equipment & components for the
Australian Defence, Mining, Power and Water industries.
Board and Governance
In September 2023, the Board announced the appointment
of Mr. Sean Ebert to the role of Managing Director and
CEO. Mr. Ebert joined the Board of AML3D in 2019 and
filled the role of interim CEO from June 2023.
In January 2024, the Board announced the appointment of Mr. Peter
Siebels as a Non-Executive Director and Chair of the Audit and
Risk Committee. Mr. Siebels is a chartered accountant and former
partner at KPMG with extensive local and international experience
across property and construction, mergers and acquisitions and
as a director of specialist advisory firm 4D Advisory Pty Ltd.
The appointments of Mr. Ebert and Mr. Siebels ensure the composition
of AML3D’s Board has the appropriate mix and depth of skills
and experience to achieve its strategy and growth ambitions.
Outlook
Through AML3D’s US “Scale-up” strategy the Company is well
positioned as a supplier of ARCEMY® industrial scale, advanced Wire-
arc Additive Manufacturing (WAM®) metal 3D printing systems in the
US, the world’s largest additive manufacturing market. As a result of
this strategy, AML3D has achieved its most successful year on record.
The US “Scale-up” strategy is designed to underpin a sustainable
business with reliable, predictable and expanding revenue, and
can rapidly grow to meet the strong demand in the US market and
enter additional globally significant markets, such as Australia and
the UK. AML3D also plans to generate additional revenues by
accessing aligned R&D and contract manufacturing opportunities.
The establishment of a US manufacturing hub is expected to support
strong growth in the US and create additional capacity across AML3D’s
manufacturing footprint to support access to additional global markets.
AML3D is confident the demand from the US Defence market will
remain strong and convert into continued US ARCEMY® sales and
contract manufacturing orders during FY25 and are pleased to have
already recorded the sale of an ARCEMY® 2600 Edition system
to US Defence supplier Laser Welding Solutions in July 2024.
The Company is also continuing to invest in its advanced
Wire-arc Additive Manufacturing technology to maintain its
competitive advantage in the Defence sector and across
the Oil & Gas, Marine and Aerospace industries.
AML3D’s contract wins in support of Australian Government
Defence Science and Technology Group in the fourth quarter of
FY24 demonstrate momentum in the Australian market, which the
Company expects to carry into the FY25. The Company is also
in the early stage of building a UK sales pipeline and is looking
forward to converting these sales leads into orders over the course
of FY25. AML3D’s contract manufacturing facility continues to
deliver on the Company’s current order book and retains the
capacity to support additional contract manufacturing orders.
The Board would like to thank the capable AML3D team that has
delivered the success the Company has enjoyed to date and we
also welcome new team members at our new US manufacturing
hub who have the opportunity to contribute greatly to the next
phase in AML3D’s growth and success. At AML3D we operate as
one team, dedicated to an overarching goal of becoming a leading
diversified large-scale metal fabrication company globally.
Finally, to our shareholders, thank you for your continuing support.
Your Board and management team are committed to building a
profitable and sustainable company for the benefit of all stakeholders.
AML3D is entering a significant phase of growth in the US,
balanced by opportunities to leverage your established Australian
operations across additional and significant global markets.
Noel Cornish AM
Chairman
Sean Ebert
Managing Director & CEO
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Board
Noel Cornish AM //
B.Sc, M.Eng.Sc., FAICD, FUOW
Chairman
Chairman of the Remuneration Committee
Member of the Audit & Risk Committee
Appointed as Chairman 5 October 2022
Noel Cornish joined the Board of AML3D
as a Non-executive Director and Chairman
in October 2022. His former roles
include Chief Executive of BlueScope
Limited’s Australian and New Zealand
steel manufacturing businesses, Deputy
Chancellor University of Wollongong,
President Northstar BHP LLC in Ohio USA,
Chairman of Snowy Hydro Limited and IMB
Bank, as well as past National President Ai
Group. Noel is currently Chairman of the
Hunter Valley Coal Chain and a member
of the University of Newcastle Council.
Noel was appointed a Member of the
Order of Australia in 2017 for his business
leadership and community service.
The Board considers that Mr Cornish
is an independent director.
Sean Ebert //
B.Eng Hons(Electrical), MAICD
Executive Director
Appointed as Director 30 August 2019
Appointed as Managing Director
and CEO 18 September 2023
Sean has over 25 years of executive
experience in both public and private
sectors across high growth companies
within the engineering, technology and
consumer goods sectors in Australia,
US, China and Europe. Sean is currently
a Non-Executive Director of FCT
International, as well as Non-Executive
Director on a range of other privately
owned Australian growth companies. Sean
was previously the Chief Executive Officer
(CEO) of Beston Asset Management,
Global Director M&A of Worley, CEO of
Camms Pty Ltd and CEO of Profit Impact
Pty Ltd. Sean is a former director of Mighty
Craft (ASX: MCL, resigned 20 July 2024).
Sean brings listed company and
international experience to AML3D, is
a Member of the Institute of Company
Directors and holds a Bachelor Degree
in Engineering with honours.
The Board considers that Mr Ebert
is not an independent Director.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Andrew Sales //
M.Eng, M.Sc, C.Eng, CMatP
Executive Director
Member of the Remuneration Committee
Appointed as Director 14 November 2014
Appointed as CTO 26 September 2022
Andrew is a Chartered Engineer
with a Master of Engineering and
Master of Science and is a renowned
expert in welding technology with
over 28 years of global experience
(Australia, Europe, South America,
Africa and Asia). Andrew has held
varying roles across upper management
and senior leadership within the oil
and gas, resources and mining sectors
as well as advanced manufacturing,
heavy engineering and fabrication.
He is also the author of numerous
technical papers in the field of welding
high strength corrosion resistant alloys.
In addition to Science and Engineering
qualifications at Masters level, he also
holds a Diploma in Quality Management
and Auditing. He is a Chartered
Engineer through ECUK and TWI (UK),
a professional member of Materials
Australia holding a CMatP, and also sits
on two Standards Australia committees
including the newly established
committee for Additive Manufacturing.
Andrew founded AML Technologies,
now known as AML3D, in 2014.
The Board considers that Mr Sales
is not an independent Director.
Peter Siebels //
B.Ec, FCA, FAICD
Non-Executive Director
Chairman of the Audit & Risk Committee
Member of the Remuneration Committee
Appointed as Director 15 January 2024
Following a thirty year career with
KPMG including roles on the Australian
National Board and National Executive
Committee, Peter has pursued a career
in Governance and Advisory, since 2015.
Governance positions include Chair roles
with the RAA, RAA Insurance, Electricity
Industry Superannuation Scheme,
Hood Sweeney, Robern Menz and also
non-executive director roles with ECH,
Adelaide University and GCF Investments
Pty Ltd . Through these roles, Peter
has Chaired many Board Committees,
including Investment, Finance and Audit,
Governance and Nominations and Risk.
The Board considers that Mr Siebels
is an independent director.
Kaitlin Smith //
B.Com (Acc), CA, FGIA
Company Secretary
Appointed 30 November 2022
Kaitlin Smith was appointed to the
position of Company Secretary on 30
November 2022. Kaitlin provides company
secretarial and accounting services to
various public and proprietary companies.
She is a Chartered Accountant, a
fellow member of the Governance
Institute of Australia and holds a
Bachelor of Commerce (Accounting).
The Company Secretary is accountable
to the Board, through the Chair, on all
matters to do with the effective functioning
of the Board. All directors have direct
access to the Company Secretary.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Directors’ Report
The Directors of AML3D Limited (AML3D or the Company)
present their report, together with the financial statements
of the Company and its controlled entities (the Group)
for the financial year ended 30 June 2024.
Directors
The following persons were Directors of the Company
during the financial year and to the date of this report:
Noel Cornish
Non-executive Chairman
Sean Ebert
Executive Director
Andrew Sales
Executive Director
Peter Siebels
Non-executive Director
Appointed 15 January 2024
Directors have been in office since the start of the financial
period to the date of this report unless otherwise stated.
Information Relating to Directors
and Company Secretary
Details of each Director’s experience, qualifications and
responsibilities are set out on pages 6 to 7. This includes
information on other listed company directorships in the last
three years. The Company Secretary is Kaitlin Smith. Details
of her experience and qualifications are set out on page 7.
Company Overview
AML3D is an Australian public company incorporated on
14 November 2014. The Company was admitted to the
Official List of ASX on 16 April 2020 and commenced trading
on ASX on 20 April 2020. AML3D is a welding, robotics,
metallurgy and software business which uses automated wire-
fed 3D printing in a large free-form environment to produce
metal components and structures for commercial use.
AML3D has commercialised its wire arc additive manufacturing
technology (under the trademark WAM®), an innovative metal
additive manufacturing technology for the cost-effective production
of large, high performance metal components and structures.
AML3D’s proprietary WAM® process is part of the spectrum
of 3D metal printing that focuses on larger industrial
applications with flexibility across multiple classes of metals
including titanium alloys, nickel alloys and steel alloys.
AML3D’s WAM® technology combines electric arc as a heat source
with wire as a feedstock and welds sequential layers of metal to
produce near-net shape metal components. WAM® technology
provides an alternative manufacturing and fabrication method
for the production of components in industry sectors such as
aerospace, marine, defence, oil and gas, mining and general
manufacturing which vary from high-end aerospace parts to
general engineering, with the value proposition being significant
in the case of larger scale industrial grade and complex parts.
In conjunction with its WAM® technology, AML3D has developed its
own proprietary software, WAMSoft ®, which combines metallurgical
science and engineering design to automate the 3D printing process
utilising advanced robotics technology. The WAMSoft ® software
enables a highly tailored approach to the needs of each client by
enabling different pathways and welding operations for different
products and materials. Depending on material type, thickness of
part, geometry and final size, the software identifies optimal path
models using an extensive library of weld bead geometries.
Principal Activities
The principal activities of AML3D during the financial year were to:
a. Design and construct ARCEMY ® 3D printing modules
for sale or lease with an option to buy;
b. Design and construct 3D parts using Wire-arc Additive
Manufacturing technology and to develop that technology;
c. Research and development into the refinement of the
companies products, including alternative applications.
No significant changes in the nature of the Company’s
activity occurred during the financial year.
Operating and Financial Review
Review of Operations
The Company’s revenue is derived from:
a. ARCEMY® sales with customers acquiring the ARCEMY®
3D printing modules for their own fabrication needs or research
and learning purposes; or
b. Contract manufacturing, which is fulfilling manufacturing orders
for customers using our ARCEMY® 3D printing module; and
c. Licensing, service and technical support for customers using our
ARCEMY® 3D printing module.
AML3D has maintained its focus on executing the US “Scale-
up” strategy and developing the Company’s position as
supplier of ARCEMY® industrial scale, advanced Wire-arc
Additive Manufacturing (WAM®) metal 3D printing systems.
The US “Scale-up” strategy is designed to create a sustainable
business with a reliable, predictable and expanding revenue
base that can also generate additional earnings by accessing
aligned R&D and contract manufacturing opportunities.
Through this strategy, AML3D has achieved its most successful year
on record with revenue of $7,324,869, 95% of which was obtained
through key target markets in the United States of America.
Four ARCEMY® units were commissioned during the year, including
one leased unit converted to a sales after year end. A further four units
have been constructed, including two additional leased units for Laser
Welding Solutions, with installation and final commissioning of these
units expected during the first half of FY25.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
9
The Company has continued to develop its technology including the
printing of a range of metal pieces for use in a variety of industries such
as defence, oil and gas, marine and aerospace.
The establishment of the US facility is well underway. Once complete it
will provide capacity similar to that of the Australian operations, focused
on servicing the US markets with the construction of ARCEMY® units
and printing of qualification parts. The Ohio facility will significantly
reduce production lead and delivery times, and alleviate issues with the
handling of sensitive US defence related information.
Financial Results and Position
Revenue for the year was $7,324,869, up $6,690,447 on the prior
corresponding period (PCP). 61% of revenue was generated
through the sale of ARCEMY® units, 36% from print revenue,
and the remainder from recurring licence and lease fees.
Gross profit margin improved to 63% (PCP: 52%)
assisted by the stronger US dollar.
EBITDA was a loss of $3,309,606 (PCP: $4,793,053) for the full year,
with a small loss of $246,690 for H2FY24. Overhead expenses of
$8,091,958 were $2,810,158 higher on PCP, $2,356,988 in director
and employee benefits largely attributable to the “US Scale-up”
and expansion of the dedicated software development team.
The net loss after tax for the year was $4,169,846
(PCP: $5,436,253) with potential carried forward tax
benefits not brought to account of $5,354,603.
Having completed a further capital raise in May 2024, at
the end of the financial year the Company had $7,790,323
in cash and cash equivalents on hand. During the year
$1,750,089 of cash was used in operating activities, down
$1,892,796 on cash consumed during the PCP.
Business Strategies and Prospects
The Company plans to build on the successes
achieved in FY24 with a continued focus on:
•
Pursuing global business opportunities, focusing initially on
creating customer and industry partnerships in high margin
sectors such as defence, oil and gas, and marine;
•
Building ARCEMY® modules for customers looking to establish
in-house 3D printing capability;
•
Growing recurring revenue through annual software licensing,
service and maintenance agreements;
•
Continuing with our research and development activities to
refine and broaden our range of products and processes,
further developing our environmental sustainability credentials
by reviewing options for use of renewable energy and lowering
energy inputs with the aim of reducing the carbon footprint of the
WAM® process; and
•
Building the global profile of AML3D and its products through
collaborations with universities and key industry players.
AML3D currently has the only diversified large-scale WAM®
metal fabrication facility in the Southern Hemisphere that can
produce finished parts and components to a certified standard
under an accredited Quality Management System. With the
granting of patents in Australian, Europe, India, Japan, New
Zealand, Republic of Korea and Singapore this protection validates
the Company’s market leadership in advanced 3D printing
solutions and opens up new markets for our technology. These
are the advantage that the Company will look to leverage.
Material Business Risks
There are a number of material business risks which could affect
the Company’s ability to achieve its business strategies as follows.
Market Acceptance of New Technology
AML3D has commercialised its WAM® technology and has
established a number of important relationships and research
collaborations. However, there can be no assurances that the
market will accept the WAM® technology, given that it is challenging
traditional and well-tried processes such as machining, casting
and forging. WAM® is a disruptive technology in traditional
manufacturing industries where many potential users of WAM®
have existing sunk investments in existing processes.
Wire arc additive manufacturing is a new technology in a relatively
young industry of 3D metal printing. Widespread awareness-
raising of the advantages and value proposition associated
with the Company’s WAM® technology will be required to lift
the profile of the technology and educate the market
Customer Conversion
Although the Company’s client base is expected to diversify as a result
of the expansion of the Company’s revenue streams, the Company
is substantially reliant on a select number of clients. The loss of
any of these clients may have a negative impact on the Company’s
revenues and profits unless they can be replaced with new clients.
The Company’s future activities are specifically designed
around further business development activities in order to
grow the client base in Australia, US, and other markets.
Reliance on Key Personnel
The responsibility of overseeing the day-to-day operations and the
strategic management of the Company depends substantially on its
senior management, technical experts and its Directors. The Company
has reduced this risk by the appointment of additional technical staff.
Access to Raw Materials
The Company requires access to markets for its raw materials
including titanium alloys, nickel alloys, stainless steel,
aluminium alloys and bronze alloys in order to manufacture
components. If the Company is unable to secure these
materials, this would likely have a material adverse effect on
the business and financial performance of the Company.
Accreditation
The reputation of AML3D’s products and services is largely
dependent on retaining Lloyd’s Register and ISO 9001
accreditation. The loss of these accreditations would significantly
impact the demand for AML3D’s products and services.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
10
Climate Change Risk
The Board is not aware of any current material exposure to risks
brought about, or likely to be brought about, by climate change.
Research & Development and Technical Risk
The Company’s products and technology are the subject of continuous
research and development which will likely need to be developed
further in order to enable the Company to remain competitive, increase
sales and improve the scalability of products and technology. There
are no guarantees that the Company will be able to undertake such
research and development successfully. Failure to successfully
undertake such research and development, anticipate technical
problems, or estimate research and development costs or time
frames accurately will adversely affect the Company’s results.
Intellectual Property
The Company has been granted patent in Australian, Europe,
India, Japan, New Zealand, Republic of Korea and Singapore,
which provides coverage over the method and apparatus for
manufacturing 3D metal parts. Despite the granting of the patent, it
may not be of commercial benefit to the Company, or may not afford
the Company adequate protection from competing products.
Data Loss and Cyber Security
The Company is reliant on the security of its network environment,
vendor environments and websites. Breaches of security
including hacking, denial of service attacks, malicious software
use, internal Intellectual Property theft, data theft or other
external or internal security threats could put the integrity and
privacy of customers’ data and business systems used by the
Company at risk which could impact technology operations and
ultimately customer satisfaction with the Company’s products
and services, leading to lost customers and revenue.
The Company has implemented a Cyber Security system
and will continue to monitor its effectiveness.
Environmental and Sustainability Risk
The Board is not aware of any material exposure
to economic, environmental or social sustainability
risks to which the Company may be subject.
Risk Management
The Board determines the Company’s risk profile and is responsible
for establishing, overseeing and approving the Company’s risk
management framework, strategy and policies, internal compliance
and internal control. The Board has delegated to the Audit and Risk
Committee the responsibility for overseeing the risk management
system. The Company’s risk management policy sets out the
requirements for the Company’s risk management framework, the
process for identification and management of risks and regular reviews.
Sustainability
AML3D is committed to developing and maintaining sustainable
and environmentally conscious operations. One of the benefits of
AML3D’s manufacturing process is that it generates considerably
less waste material than traditional casting and machining
processes. Additive Manufacturing, with wire feedstock, has also
been shown to have a lower carbon foot-print and use less energy
when compared to conventional manufacturing processes.
Environmental Regulation
The Group’s activities are subject to general environmental
laws and regulations relating to manufacturing operations, in
particular for the disposal and storage of scrap and hazardous
materials. No breaches of environmental regulation occurred
during the financial year and to the date of this report.
Significant Changes in the State of Affairs
The following significant changes in the state of affairs of
the Company occurred during the financial year:
i. The Company issued 33,767,789 shares on 16 May 2024 via a
rights issue to existing shareholders at an issue price of $0.05
per share for a total consideration of $1,688,389.
ii. 44,749,084 shares were issued on 23 May 2024 via a private
placement at an issue price of $0.05 for a total consideration of
$2,237,454.
iii. 51,250,916 shares were issued on 23 May 2024 via a private
placement at an issue price of $0.05 for a total consideration of
$2,562,546.
iv. 7,000,000 shares were issued on 27 May 2024 via a private
placement at an issue price of $0.05 for a total consideration of
$350,000.
v. 4,777,530 shares were issued on 26 June 2024 to S3
Consortium Pty Ltd at an issue price of $0.06956 based on
the 5 day VWAP prior to issue for a total valuation of $332,325.
The shares were issue as consideration for investor relations
services for the period June 2024 to June 2026, and are subject
to a 24 months escrow.
Significant Events after the Balance Date
No matters or circumstances have arisen since the end of the
financial year which significantly affected or may significantly affect
the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years, except for:
i. On 2 July 2024, AML3D announced the sale of a 2600 Edition
ARCEMY® system for $1.1 million to Laser Welding Solutions
(“LWS”). LWS had been operating the ARCEMY® system under
a lease agreement since September 2023.
ii. On 18 July 2024, 2,000,000 Director Options were issued to Mr
Peter Siebels for nil consideration. The options have an exercise
price of $0.16 and an expiry date of 18 July 2029.
iii. On 18 July 2024, 11,981,973 Advisor Options were issued
to Joint Lead Managers of the May 2024 capital raise for nil
consideration. The options have an exercise price of $0.10 and
an expiry date of 30 June 2026.
iv. On 26 July 2024, 15,723,215 Advisor Options were issued
for services provided for nil consideration. The options have
an exercise price of $0.10 and an expiry date of 30 June
2026.
v. On 6 August 2024, 2,000,000 shares were issued to Mr Peter
Siebels at $0.05 per shares in accordance with the Director
Placement Shares as approved at the Company’s EGM on 17
July 2024.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
11
Dividends
No dividends were declared or paid during the year.
Corporate Governance
The Board oversees the Company’s business and is responsible for the overall corporate governance of the
Company. It monitors the operations, financial position and performance of the Company and oversees its
business strategy, including approving the strategy and performance objectives of the Company.
The Board is committed to maximising performance and generating value and financial returns for Shareholders. To further these
objectives, the Board has created a framework for managing the Company, including the adoption of relevant internal controls,
risk management processes and corporate governance policies and practices which the Board believes are appropriate for
the business and which are designed to promote the responsible management and conduct of the Company. To the
extent relevant and practical, the Company has adopted a corporate governance framework that is consistent with the
ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition).
The Company’s Corporate Governance Plan, including key policies, is available on the Company’s website at www.aml3d.com
Directors’ Meetings
During the financial year, 15 meetings of Directors, including Committees of Directors, were
held. Attendances by each Director during the year were as follows:
Directors
Board
Meetings
Audit and Risk
Committee Meetings
Remuneration & Nomination
Committee Meetings
Eligible to
attend
Meetings
attended
Eligible to
attend
Meetings
attended
Eligible to
attend
Meetings
attended
Noel Cornish
11
11
3
3
1
1
Sean Ebert
11
11
3
3
1
1
Andrew Sales
11
11
-
-
1
1
Peter Siebels
4
4
2
2
1
1
Directors’ Shareholdings
The following table sets out each Director’s relevant interest in shares, debentures, and rights or options in shares or debentures of the
Company or a related body corporate, including securities held directly, indirectly or by related parties, as at the date of this report:
Director
Fully paid
ordinary shares
Share Options
Performance
Rights
Noel Cornish
700,280
4,000,000
-
Sean Ebert
1,087,499
4,000,000
2,285,714
Andrew Sales
33,207,707
2,000,000
-
Peter Siebels
2,000,000
2,000,000
-
Further details of Directors’ security holdings, including the numbers subject to escrow
restrictions, are provided in the Remuneration Report commencing on page 12.
Directors’ and Senior Executives’ Remuneration
Details of the Company’s remuneration policies and the nature and amount of the remuneration for the Directors and senior
management (including shares, options and rights granted during the financial year) are set out in the Remuneration Report
commencing on page 12 and in Notes 9 and 10 to the financial statements. The Directors of the Company present this
Remuneration Report for the Group for the year ended 30 June 2024. The information provided in this Report has been audited
as required by s308(3C) of the Corporations Act 2001 (Cth) (Corporations Act) and forms part of the Director’s Report.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
12
The Remuneration Report outlines the Company’s key
remuneration activities during the financial year ended 30 June
2024 and remuneration information pertaining to the Company’s
Directors and senior management personnel who are the Key
Management Personnel (KMP) of the Group for the purpose of
the Corporations Act and Accounting Standards. These are the
personnel who have authority and responsibility for planning,
directing and controlling the activities of the Company.
The report is structured as follows:
1. Remuneration Governance
2. Directors and Key Management Personnel (KMP)
3. Remuneration Policy
4. Remuneration Components
5. Relationship between Remuneration and Group
Performance
6. Details of Directors’ and KMP Remuneration
7. Key Terms of Employment Contracts
8. Terms and Conditions of Share-based Payment
Arrangements
9. Directors’ and KMP Equity Holdings
10. Other Transactions with Directors and KMP
1. Remuneration Governance
Consistent with the Board’s Charter, the Board has
established a Remuneration and Nomination Committee.
The functions of the Committee are described in the
Committee Charter. Where appropriate, these functions
are undertaken by Non-executive Directors only, without
the presence or participation of any Executive Director.
Functions
The Committee reviews any matters of significance affecting the
remuneration of the Board and employees of the Company.
The primary remuneration purpose of the Committee is to
fulfil its responsibilities to shareholders, including by:
a. Ensuring that the approach to executive remuneration
demonstrates a clear relationship between key executive
performance and remuneration;
b. Fairly and responsibly rewarding executives, having regard
to the performance of the Company, the performance of the
executive and the prevailing remuneration expectations in
the market;
c. Reviewing the Company’s remuneration, recruitment,
retention and termination policies and procedures for senior
management;
d. Reviewing and approving any equity-based plans and other
incentive schemes;
e. Clearly distinguishing the structure of Non-executive
Director (NED) remuneration from that of executive
directors and senior executives, and recommending NED
remuneration to the Board;
f. Arranging the performance evaluation of the Board, its
Committees, individual Directors and senior executives on
an annual basis; and
g. Overseeing the annual remuneration and performance
evaluation of the senior executive team.
The Board has adopted protocols for engaging and seeking
advice from independent remuneration consultants.
Further information about remuneration structures
and the relationship between remuneration policy
and company performance is set out below.
The Board Charter and the Remuneration and Nomination
Committee Charter, which outline the terms of reference
under which the Committee operates, are available in the
Corporate Governance Plan at www.aml3d.com/investors.
Remuneration
Report (audited)
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
13
2. Directors and Key Management Personnel (KMP)
The directors and KMP of the Group during the year were:
Period of
Responsibility in FY24
Position
Non-executives
Noel
Cornish
Full year
Independent Non-
executive Chairman
Peter
Siebels
From 15 January 2024
Independent Non-
executive Director
Executives
Sean
Ebert
Full year
Managing Director, Chief
Executive Officer (CEO)
Andrew
Sales
Full year
Chief Technology
Officer (CTO)
Hamish
McEwin
Full year
Chief Financial
Officer (CFO)
Pete
Goumas
From 18 September
2023
President AML3D
USA Inc.
3. Remuneration Policy
The Company’s remuneration framework for Directors and
senior executives has been designed to remunerate fairly
and responsibly, balancing the need to attract and retain key
personnel with a prudent approach to management of costs.
The Board’s policy for determining the nature and
amount of remuneration for Board members and
senior executives of the Company is as follows:
Non-Executive Director Remuneration
The Board aims to remunerate each Non-executive Director (NED)
for their time, commitment and responsibilities at market rates
for comparable companies. The Board determines and reviews
the level of fees payable to Non-executive Directors annually,
based on market practice, duties and accountability and subject
to the maximum aggregate amount per annum as approved by
shareholders. Fees for Non-executive Directors are not linked
to the performance of the Group, other than participation in
share options (refer to section 8 for share option plans).
The Board approves a letter of appointment setting
out the key terms and conditions of appointment for
each Non-executive Director. Non-executive Directors
receive statutory superannuation guarantee payments
and do not receive any other retirement benefits.
Executive Remuneration
The Board reviews the executive structure and framework
on an annual basis to ensure that the remuneration
framework remains aligned to business needs. The Board
aims to ensure that remuneration practices are:
• Competitive and reasonable, enabling the Company to
attract and retain key talent; and
• Aligned to the Company’s strategic and business
objectives and the creation of shareholder value.
4. Remuneration Components
Non-Executive Directors
Non-executive Directors receive a fixed fee for their
participation on the Board. No additional fee is paid for
service on Board sub-committees. Directors do not receive
performance-based incentives but they are eligible, subject
to shareholder approval, for the grant of options that do
not include performance-based vesting criteria.
Non-Executive Director fees are determined by the Board
within an aggregate fee pool limit as approved by shareholders.
The current aggregate fee pool, as set out in the Constitution
in Rule 14.8 detailing initial fees to Directors, is $400,000.
In addition, Directors are eligible to participate in the
Concessional Incentive Option Plan and the Performance
Rights and Option Plan, subject to approval by shareholders.
Executives
Executive remuneration comprises fixed remuneration (salary)
and may include short-term and long-term incentive plan
components. These are set with reference to the Company’s
performance and the market. Fixed remuneration, which
reflects the individual’s role and responsibility as well as
their experience and skills, includes base pay and statutory
superannuation. Remuneration at risk may be provided
through short-term and long-term incentive plan components,
linked to performance measured against operational and
financial targets set by the Company, designed to achieve
operational and strategic targets for the sustainable growth
of the Company and long-term shareholder value. Short-
term or long-term incentive elements for KMP’s are detailed
in section 7 of this report. The Board will continue to review
the remuneration framework during the coming year.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
14
5. Relationship between Remuneration and Group Performance
The Board aims to align executive remuneration to the Company’s
strategic and business objectives and the creation of shareholder
wealth. The table below sets out key metrics in respect of the
Group’s performance over the past five years. The remuneration
framework is designed to take account of a suitable level for the
fixed remuneration in the context of balancing the requirements of
a rapidly growing and newly ASX-listed company and focussing
on strategic and business objectives to ensure shareholder value.
There are currently no short-term or long-term incentives on foot.
2024
$
2023
$
2022
$
2021
$
2020
$
Cash and cash equivalents
7,790,323
4,533,957
2,933,482
7,200,707
8,227,986
Net assets/equity
9,993,008
6,925,158
6,631,120
11,528,148
9,712,920
Revenue
7,324,869
634,422
2,014,828
644,486
288,516
EBITDA
(3,309,607)
(4,793,053)
(4,158,702)
(5,108,666)
(3,008,192)
Loss from ordinary activities after
income tax expense
(4,169,846)
(5,436,253)
(4,897,029)
(5,515,272)
(3,094,021)
No of issued shares
377,099,032
235,553,713
150,458,386
150,458,386
132,366,163
Basic earnings per share (cents)2
(1.7)
(2.7)
(3.3)
(3.8)
(3.8)
Diluted earnings per share (cents)2
(1.7)
(2.7)
(3.3)
(3.8)
(3.8)
Share price at start of year (cents)1
0.048
0.052
0.205
0.155
0.20
Share price at end of year (cents)
0.095
0.048
0.052
0.205
0.155
Market capitalisation (Undiluted)
35,824,408
11,306,578
7,823,836
30,843,969
20,516,755
Interim and final dividend (cents)
N/A
N/A
N/A
N/A
N/A
1. The Company was incorporated in 2014 as a proprietary company
and was changed to an unlisted public company on 5 December
2019. Share price at start of FY20 is shown as at commencement
of ASX quotation on 20 April 2020 following admission to the official
list of ASX on 16 April 2020, based on the value of shares taken up
pursuant to the prospectus.
2. Basic earnings per share and diluted earnings per share have
been retrospectively restated to account for a capital restructure of
shares. A capital reconstruction was undertaken on 29 July 2019
and 4.2348 shares were issued for every 1 share. The number of
shares issued in the previous financial periods have been multiplied
by 4.2348 for the purpose of EPS calculation.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
15
6. Directors’ and KMP Remuneration
Remuneration for the financial year ended 30 June 2024
Short-term employee benefits
Post-
employment
Share-based
payments
Salary
& Fees
Short-term
incentive
Annual Leave
Long Service
Leave
Super-
annuation /
401(k) Plan
Shares
Options or
Rights
Total share-
based payments
Termination
Other long-term
benefits
Total
Total
‘at risk’
$
$
$
$
$
$
$
$
$
$
$
%
Non-executive Directors
Noel
Cornish
100,000
-
-
-
11,000
-
100,000
100,000
-
-
211,000
-
Peter
Siebels1
30,000
-
-
-
3,300
-
-
-
-
-
33,300
-
Subtotal
130,000
-
-
-
14,300
-
100,000
100,000
-
-
244,300
Executives
Sean
Ebert
385,692
120,0003
22,168
-
42,427
-
130,755
130,755
-
-
701,042
22%
Andrew
Sales
242,539
-
14,663
2,961
31,341
-
100,000
100,000
-
-
391,504
-
Hamish
McEwin
249,583
-
12,595
-
27,454
-
26,134
26,134
-
-
315,766
5%
Pete
Goumas2
289,853
-
-
-
13,730
-
183,241
183,241
-
-
486,824
7%
Subtotal
1,167,667
120,000
49,426
2,961
114,952
-
440,130
440,130
-
-
1,895,136
TOTAL
1,297,667
120,000
49,426
2,961
129,252
-
540,130
540,130
-
-
2,139,436
1. Appointed as Director 15 January 2024.
2. Appointed as President AML3D USA Inc.
18 September 2023.
3. Short-term Incentive granted in full
18 July 2024 on successful delivery of KPIs
including budgeted EBITDA, cashflow,
sales, and establishment of US facility.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
16
Remuneration for the financial year ended 30 June 2023
Short-term employee benefits
Post-
employment
Share-based
payments
Salary
& Fees
Short-term
incentive
Annual leave
Long Service
Leave
Super-
annuation
Shares
Options or
Rights
Total share-
based payments
Termination
Other long-term
benefits
Total
Total
‘at risk’
$
$
$
$
$
$
$
$
$
$
$
%
Non-executive Directors
Noel
Cornish1
75,000
-
-
-
7,875
-
58,000
58,000
-
-
140,875
-
Leonard
Piro2
20,000
-
-
-
2,100
-
-
-
-
-
22,100
-
Subtotal
95,000
-
-
-
9,975
-
58,000
58,000
-
-
162,975
-
Executives
Sean
Ebert3
77,000
-
-
-
8,085
-
-
-
-
-
85,085
-
Andrew
Sales
236,154
-
14,942
14,300
24,796
-
-
-
-
-
290,192
-
Ryan
Millar4
339,484
25,500
-
-
31,314
14,433
7,658
22,091
79,290
-
497,678
-
Hamish
McEwin
228,311
-
7,441
-
23,973
-
-
-
-
-
259,724
-
Subtotal
880,948
25,500
22,383
14,300
88,167
14,433
7,658
22,091
79,290
-
1,132,679
-
TOTAL
975,948
25,500
22,383
14,300
98,142
14,433
65,658
80,091
79,290
-
1,295,654
-
1. Appointed as Chairman 5 October 2022.
2. Resigned 23 November 2022.
3. Appointed as Interim CEO 15 June 2023
4. Appointed as CEO 26 September 2022. Resigned 15 June 2023. Prior
to his appointment as CEO, Mr Millar received $99,000 for consulting
services during the months of July, August and September 2022
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
17
7. Key Terms of Employment Contracts
Non-Executive Directors
The Company has entered into Non-Executive Director
letters of appointment with each of Noel Cornish, Leonard
Piro and Sean Ebert (Letters of Appointment). Each of the
Letters of Appointment provide that amongst other things,
in consideration for their services, the Company will pay the
following fees, exclusive of statutory superannuation:
Chairman:
$100,000 per annum
Non-Executive Directors:
$60,000 per annum
Each Non-Executive Director is also entitled to be reimbursed
reasonable expenses incurred in performing their duties.
The appointment of the Non-Executive Directors is subject to
the provisions of the Constitution and the ASX Listing Rules
relating to retirement by rotation and re-election of directors. The
appointment of a Non-Executive Director will automatically cease
at the end of any meeting at which the relevant Director is not
re-elected as a Director by shareholders. A Director may terminate
their directorship at any time by advising the Board in writing.
The Letters of Appointment otherwise contain terms and
conditions that are considered standard for agreements
of this nature and are in accordance with the ASX
Corporate Governance Council’s Corporate Governance
Principles and Recommendations (4th Ed).
Executives
Chief Executive Officer
The Company entered into an executive services agreement
with Sean Ebert effective 18 September 2023, whereby he
was engaged as the Chief Executive Officer (CEO) of the
Company. Mr Ebert receives a base salary of $410,000 per
annum (exclusive of superannuation) for services rendered
under the executive services agreement. The Company will
also, subject to certain conditions, reimburse Mr Ebert for all
reasonable travelling intra/interstate or overseas, accommodation
and general expenses incurred in the performance of all
duties in connection with the business of the Company.
Mr Ebert’s remuneration includes “at risk” components
in the form of short-term and long-term incentive:
STI - up to 30% of base salary payable annually
in cash on achievement of agreed KPI’s.
LTI - up to 40% of base salary payable in performance
rights on achievement of a Total Shareholder Return
(TSR) Compound Annual Growth Rate (CAGR) of
45% over a vesting period of three years.
The executive service agreement has a maximum term of three
years which may be extended by written agreement between
Mr Ebert and the Company. The termination provisions in the
executive services agreement are on standard commercial
terms and generally require a minimum period of notice prior to
termination. In the event that the Company elects to terminate
the executive services agreement without reason, it must pay
the Mr Ebert the salary payable over a three-month period.
Chief Technology Officer
The Company has entered into an executive services
agreement with Andrew Sales, whereby he was engaged as
the Chief Technology Officer (CTO) of the Company. Mr Sales
receives a base salary of $252,000 per annum (exclusive of
superannuation) for services rendered under the executive
services agreement. The Company will also, subject to certain
conditions, reimburse Mr Sales for all reasonable travelling
intra/interstate or overseas, accommodation and general
expenses incurred in the performance of all duties in connection
with the business of the Company. There is no short-term
or long-term incentive component to his remuneration.
The termination provisions in the executive services
agreement are on standard commercial terms and generally
require a minimum period of notice prior to termination.
In the event that the Company elects to terminate the
executive services agreement without reason, it must pay
Mr Sales the salary payable over a six-month period.
Chief Financial Officer
The Company has entered into an executive services
agreement with Hamish McEwin, whereby he was engaged as
the Chief Financial Officer (CFO) of the Company. Mr McEwin
receives a base salary of $300,000 per annum (exclusive of
superannuation) for services rendered under the executive
services agreement. The Company will also, subject to
certain conditions, reimburse Mr McEwin for all reasonable
travelling intra/interstate or overseas, accommodation
and general expenses incurred in the performance of all
duties in connection with the business of the Company.
Mr McEwin’s remuneration includes “at risk” components
in the form of short-term and long-term incentive:
STI - up to 30% of base salary payable annually
in cash on achievement of agreed KPI’s.
LTI - up to 40% of base salary payable in performance
rights on achievement of a Total Shareholder Return
(TSR) Compound Annual Growth Rate (CAGR) of
45% over a vesting period of three years.
The termination provisions in the executive services
agreement are on standard commercial terms and generally
require a minimum period of notice prior to termination.
In the event that the Company elects to terminate the
executive services agreement without reason, it must pay
Mr McEwin the salary payable over a three-month period.
President AML3D USA Inc.
The Company has entered into an executive services agreement
with Pete Goumas, whereby he was engaged as the President
of the wholly owned subsidiary AML3D USA Inc. Mr Goumas
receives a base salary of US$300,000 per annum (exclusive
of superannuation) for services rendered under the executive
services agreement. The Company will also, subject to
certain conditions, reimburse Mr Goumas for all reasonable
travelling intra/interstate or overseas, accommodation
and general expenses incurred in the performance of all
duties in connection with the business of the Company.
Mr Goumas’ remuneration includes “at risk” components
in the form of short-term and long-term incentive:
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
18
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
19
STI - up to 40% of base salary payable annually in cash on
achievement of agreed KPI’s.
LTI - up to 40% of base salary payable in performance rights on
achievement of a Total Shareholder Return (TSR) Compound Annual
Growth Rate (CAGR) of 45% over a vesting period of three years.
The termination provisions in the executive services
agreement are on standard commercial terms and generally
require a minimum period of notice prior to termination.
In the event that the Company elects to terminate the
executive services agreement without reason, it must pay Mr
Goumas the salary payable over a three-month period.
8. Terms and Conditions of
Share-based Payment Arrangements
The following share-based payments were made during the
current financial year (2023: $80,091):
i. On 13 September 2023 the Company issued 1,664,285 unvested
performance rights to key members of staff under an employee
incentive scheme, including 1,428,571 to the Chief Financial
Officer, Mr Hamish McEwin. The Trinomial Barrier Option valuation
method has been applied to determine a fair value of $114,669 which
is being expensed as a share-based payment proportionally from
grant date to expected vesting date. The performance rights have an
ending date of 13 September 2026 with vesting conditions as follows:
•
Achievement of a Total Shareholder Return (TSR) Compound
Annual Growth Rate (CAGR) of 45%.
•
Continuity of employment during the vesting performance.
ii. On 8 November 2023 the Company issued 8,942,165 fully vested
options to the following Directors and Key Management Personnel:
•
Non-executive Chairman, Mr Noel Cornish; 2,000,000.
•
Executive Director, Mr Sean Ebert; 2,000,000.
•
Executive Director, Mr Andrew Sales; 2,000,000.
•
President US Operation, Mr Pete Goumas; 2,942,165.
The options are exercisable at $0.16 each on or before five years from
the date of issue. The Black-Scholes valuation method determined
a fair value of $447,108 which has been immediately expensed as a
share-based payment.
iii. On 8 November 2023 the Company issued 2,285,714 unvested
performance rights to the Chief Executive Officer, Mr Sean Ebert. The
number of performance rights granted to Mr Ebert was determined
using the ‘face value’ methodology, that is, by dividing an amount
equivalent to 40% of Mr Ebert’s total fixed remuneration at that date of
$400,000 by a share price of $0.07 for the base Long-term Incentive
award. The Trinomial Barrier Option valuation method has been
applied to determine a fair value of $162,057 which is being expensed
as a share-based payment proportionally from grant date to expected
vesting date. The performance rights have an ending date of 8
November 2026 with vesting conditions as follows:
•
Achievement of a Total Shareholder Return (TSR) Compound
Annual Growth Rate (CAGR) of 45%.
•
Continuity of employment during the vesting performance.
At the Board’s discretion vesting may occur at the time of achievement
of each performance condition within the performance period.
iv. On 8 November 2023 the Company issued 2,685,394 unvested
performance rights to the President of US Operations, Mr Pete
Goumas. The number of performance rights granted to Mr Goumas
was determined using the ‘face value’ methodology, that is, by dividing
an amount equivalent to 40% of Mr Goumas’ current total fixed
remuneration of US$300,000 by a share price of $0.07 for the base
Long-term Incentive award. The Trinomial Barrier Option valuation
method has been applied to determine a fair value of $190,394 which
is being expensed as a share-based payment proportionally from
grant date to expected vesting date. The performance rights have an
ending date of 8 November 2026 with vesting conditions as follows:
• Achievement of a Total Shareholder Return (TSR)
Compound Annual Growth Rate (CAGR) of 45%.
• Continuity of employment during the vesting period.
At the Board’s discretion vesting may occur at the time
of achievement of each performance condition within the
performance period.
Concessional Incentive Option Plan
The key terms of the Concessional Incentive Option Plan are
as follows:
Eligibility
Employees, contractors or directors (Participants)
Offers
The Board may in its absolute discretion make a
written offer to any Participant to apply for options
upon the terms set out in the Concessional
Incentive Option Plan and upon such additional
terms and conditions as the Board determines.
Vesting
Conditions
Options may be made subject to vesting
conditions. Options will only vest while
the Participant remains employed,
engaged or is an officer of the Company.
Where a Participant becomes a:
• Good Leaver, unless the Board in
its sole and absolute discretion determines
otherwise, unvested options will lapse
and vested options that have not been
exercised will remain exercisable for
a period of three months;
• Bad Leaver, unvested options will lapse
and subject to the discretion of the Board,
vested options that have not been exercised
will lapse on the date of cessation of
employment, engagement or office of
the Participant.
Disposal
Disposal restrictions apply, including either
three years after the date of issue of the option or
when the option holder ceases to be a Participant.
Details of the Concessional Incentive Option Plan were included
in the Company’s Prospectus and a copy of the Plan was released
to the ASX market announcements platform on 16 April 2020.
A copy of the Concessional Incentive Option Plan is available
on the Company’s website at www.aml3d.com/investors.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
20
AML3D attended Sea Air Space 2024, Washington DC with Australian Industries Team Defence Australia.
AML3D’s Adelaide Technology Facility.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
21
Performance Rights and Option Plan
A Performance Rights and Option Plan is also in place to accommodate future long-term remuneration incentives. Details of the grants of
performance rights or options are included in Note 10 of Notes to the Financial Statements. Details of the Performance Rights and Option
Plan were included in the Company’s Prospectus and a copy of the Plan was released to the ASX market announcements platform on
16 April 2020. A copy of the Performance Rights and Option Plan is available on the Company’s website at www.aml3d.com/investors.
Directors’ and KMP Equity Holdings
Details of the number of ordinary shares held by Directors and KMP in the Company are set out below. This includes
shares held directly, indirectly or beneficially by Directors and KMP, including related party holdings.
Balance at
1 July 2023
Purchased
Sold
Other Changes
Balance at
30 June 2024
Non-executive Directors
Noel Cornish
700,280
-
-
-
700,280
Executives
Sean Ebert
1,087,499
-
-
-
1,087,499
Andrew Sales
35,559,850
707,857
(3,000,000)
(60,000)
33,207,707
Pete Goumas1
-
3,000,000
-
-
3,000,000
TOTAL
37,347,629
3,707,857
(3,000,000)
(60,000)
37,995,486
1. Appointed 18 September 2023.
Details of the number of options held by Directors and KMP in the Company are set out below. This includes
options held directly, indirectly or beneficially by Directors and KMP, including their related parties.
Balance at
1 July 2023
Granted
Purchased
Options
Exercised
Expired/
Lapsed
Other
Changes
Balance at
30 June
2024
Vested
Unvested
Non-executive Directors
Noel Cornish
2,000,000
2,000,000
-
-
-
-
4,000,000
4,000,000
-
Executives
Sean Ebert
2,000,000
2,000,000
-
-
-
-
4,000,000
4,000,000
-
Andrew Sales
-
2,000,000
-
-
-
-
2,000,000
2,000,000
-
Pete Goumas
-
2,942,165
-
-
-
-
2,942,165
2,942,165
-
TOTAL
4,000,000
8,942,165
-
-
-
-
12,942,165
12,942,165
-
Terms of the options granted to Directors are provided in section 8 of this report, above.
Details of the number of performance rights held by Directors and KMP in the Company are set out below. This includes
performance rights held directly, indirectly or beneficially by Directors and KMP, including their related parties.
Balance at
1 July 2023
Granted
Purchased
Rights
Exercised
Expired/
Lapsed
Other
Changes
Balance at
30 June
2024
Vested
Unvested
Executives
Sean Ebert
-
2,285,714
-
-
-
-
2,285,714
-
2,285,714
Hamish McEwin
-
1,428,571
-
-
-
-
1,428,571
-
1,428,571
Pete Goumas
-
2,685,394
-
-
-
-
2,685,394
-
2,685,394
TOTAL
-
6,399,679
-
-
-
-
6,399,679
-
6,399,679
9. Other Transactions with Directors and KMP
There have been no transactions with Directors and KMP other than those described in this Remuneration Report.
Related Party Transactions
Details of transactions with related parties including KMP are provided at Note 26 to the financial statements.
-- End of Remuneration Report --
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
22
Options and Performance Rights
Holders of options and performance rights do not have any rights
to participate in any issue of shares or other interests of the
Company or any other entity.
During the financial year ended 30 June 2024, 8,942,165
options were issued (2023: 2,000,000). Subsequent to year
end a further 13,981,973 options were issued. No shares were
issued on the exercise of options during the financial year
ended 30 June 2024 (2023: Nil) or to the date of this report.
As at the date of this report, the unissued ordinary shares of
the Company under option are as follows.
Grant date
Expiry Date
Exercise
Price
Number of
Options
4 December
2019
4 December
2024
$0.30
7,500,000*
22 December
2022
22 December
2027
$0.30
2,000,000
8 November
2023
8 November
2028
$0.16
8,942,165
17 July 2024
17 July
2029
$0.16
2,000,000
17 July 2024
30 June
2026
$0.10
11,981,973
26 July 2024
30 June
2026
$0.10
15,723,215
Total
48,147,353
*Comprises 2,000,000 options issued to Directors,
5,000,000 options issued to former Directors and 500,000
options issued to the former Company Secretary.
6,635,393 performance rights were issued during the financial
year ended 30 June 2024 (2023: 1,700,000). No shares
were issued on the exercise of performance rights during
the financial year ended 30 June 2024 (2023: 268,067).
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 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 financial year.
Indemnification and Insurance of Officers or Auditor
During the financial year, in accordance with the provisions of
the Company’s Constitution, the Company paid a premium in
respect of a contract insuring the Directors of the Company, the
Company Secretary and all Executive Officers of the Company
against a liability incurred as such a director, secretary or
executive officer to the extent permitted by the Corporations
Act 2001 (Cth). The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
In accordance with the Constitution, the Company has entered
into Deeds of Indemnity in favour of each of the current Directors
and Company Secretary. The indemnities operate to the full
extent permitted by law. The Company is not aware of any liability
having arisen, and no claims have been made during or since the
financial year ending 30 June 2024 under the Deeds of Indemnity.
The Company’s subsidiaries, AML Technologies
(Asia) Pte Limited and AML3D USA Inc. has provided
letters of indemnity to its Company Secretary.
The Company has not otherwise, during or since the
end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnity an officer or
auditor of the Company or of any related body corporate
against a liability incurred as such an officer or auditor.
Non-Audit Services
The directors are of the opinion that the services as disclosed
in note 11 to the financial statements do not compromise
the external auditor’s independence requirements of the
Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed and approved to
ensure that they do not impact the integrity and objectivity of the
auditor; and
•
none of the services undermine the general principles relating
to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting
Professional and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a management or
decision-making capacity for the company, acting as advocate
for the company or jointly sharing economic risks and rewards.
Auditor’s Independence Declaration
The Auditor’s Independence Declaration is included on page 23,
of this annual report.
This Directors’ Report is signed in accordance with a resolution of
Directors made pursuant to s298(2) of the Corporations Act 2001.
On behalf of the Directors
Noel Cornish
Chairman
26 August 2024
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
TO THE DIRECTORS OF AML3D LIMITED
I declare that, to the best of my knowledge and belief, the only contravention during the
year ended 30 June 2024:
— of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— of any applicable code of professional conduct in relation to the audit,
is the contravention set out below.
A breach of the auditor rotation obligations contained in sections 324DA(1) and 324DB of
the Corporations Act 2001 (Cth) and rule 540 of the APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) due to the previous lead
engagement partner proceeding on the understanding that time served before AML3D
Limited was listed on the ASX did not count in determining the timing of rotation. This
matter was rectified by appointing another eligible engagement partner on 18 July 2024 to
complete the full year audit for the financial year ending 30 June 2024.
William Buck (SA)
ABN: 38 280 203 274
Grant Martinella
Partner
Dated this 26th day of August, 2024 in Adelaide, South Australia.
Auditor
Independence
Declaration
23
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
AML3D Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of AML3D Limited (the Company) and its subsidiary
(together, the Group), which comprises the consolidated statement of financial position as
at 30 June 2024, the consolidated statement of loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of
its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group
in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards)
(the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We 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.
24
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
KEY AUDIT MATTER
Research and development expenditure -
existence and valuation. Refer also to
notes 3(i) and 12.
How our audit addressed it
The Group incurs significant amounts of
research and development costs each year. In
2024 these costs amounted to $578,943.
Each year the Group makes an assessment as
to the amount it expects to claim from the
Australian Government by the way of a
Research & Development Tax Offset Refund. At
30 June 2024 the amount disclosed as a current
trade and other receivable in relation to the
refund is $354,907.
Overall due to the high level of judgement
involved, and the significant carrying amount
involved, we have determined that this is a key
audit matter area that our audit concentrated on.
Our audit procedures included:
‒
A detailed evaluation of the Group’s research and
development strategy;
‒
Testing the costs incurred;
‒
Engaging our own taxation specialists to consider
the appropriateness of the Group's substantiation
for the claim;
‒
Reviewing the historical accuracy by comparing
actual Tax offset refunds with the original
estimations.
We assessed the adequacy of the Group's disclosures
in respect of the transactions.
KEY AUDIT MATTER
Revenue recognition. Refer also to notes
2(j) and 6.
How our audit addressed it
The Group derives income from the following:
-
Sale of the ARCEMY 3D printing module
-
Contract manufacturing for customers
using owned ARCEMY 3D printing
modules
-
Contract service or technical support for
customers using owned ARCEMY 3D
printing modules
Each revenue stream requires a bespoke
revenue recognition model to ensure that
— The performance obligations for each
revenue contract are identified;
— The
correct
determination
of
whether
performance obligations are satisfied over
time or at a point in time; and
— Revenue is only recognised when a
performance obligation is satisfied.
The application of AASB 15 Revenue from
Contracts with Customers can require
judgement, thus we considered this area to be a
key audit matter.
Our audit procedures included:
— determining whether revenue recognised is in
accordance with the Group’s accounting policies;
— Identifying and verifying the achievement of
performance milestones and recognition of revenue
relative to that achievement;
— Examining the existence of revenue by testing both
the contract and subsequent receipt of invoicing of
the revenue to the customer;
— Substantively testing revenue cut-off and the
income in advance balance to ensure revenue has
been recognised in the correct period.
We also assessed the appropriateness of disclosures
attached to revenues as required by Accounting
Standard AASB 15 Revenue from Contracts with
Customers.
25
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
KEY AUDIT MATTER
Liquidity and capital management
Refer also to note 2(r).
How our audit addressed it
To support the basis of preparation of the
financial statements, the Group has prepared a
forecast of its cash flows, which includes a
number of significant assumptions about sales,
production and estimates of cash outflows.
The Group has incurred significant losses in the
current and prior financial year. As a result, our
assessment of liquidity and capital management
as it relates to the basis of preparation of the
financial statements is considered a key audit
matter.
We assessed the main assumptions in the Group’s
cash flow forecast for at least 12 months from the
date of signing the auditor’s report, by performing the
following procedures, amongst others:
— Evaluating the assumptions used in
management’s cash flow forecasts including an
analysis of committed customer orders;
— Compared actual revenue and cost outcomes for
the prior period and the current year to date to
Group forecasts;
— Ensuring that all committed capital purchases
and future capital raising initiatives are taken into
consideration.
— Evaluating management’s ability to reduce
expenditure if necessary.
We also considered the appropriateness of the
liquidity risk disclosures included within the financial
statements.
26
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
27
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of these financial statements is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 22 of the directors’ report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of AML3D Limited, for the year ended 30 June 2024, complies with
section 300A of the Corporations Act 2001.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
28
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck (SA)
ABN: 38 280 203 274
Grant Martinella
Partner
Dated this 26th day of August, 2024 in Adelaide, South Australia.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
29
Consolidated Statement of Loss and
Other Comprehensive Income
30
Consolidated Statement of Financial Position 31
Consolidated Statement of Changes in Equity 32
Consolidated Statement of Cashflows
32
Notes to Financial Statements
33
Consolidated Entity Disclosure Statement
51
Directors Declaration
51
Financial
Statements
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
30
Consolidated Statement of Loss and Other Comprehensive Income
For the year ended 30 June 2024
Note
2024
$
2023
$
Revenue
6
7,324,869
634,422
Cost of goods sold
(2,736,462)
(329,686)
Gross profit
4,588,407
304,736
R&D Tax Offset
183,703
178,422
Gain on disposal of property, plant and equipment
10,203
5,589
Interest received
49,501
64,902
Depreciation and amortisation
7
(822,951)
(688,594)
Director and employee benefits
(4,729,864)
(2,372,876)
Interest expense
(86,789)
(19,508)
Insurance expense
(212,971)
(230,097)
Occupancy costs
(144,731)
(113,808)
Professional fees expense
(1,182,628)
(953,818)
Research and development
(578,943)
(729,518)
Workshop expenses
(73,391)
(273,525)
Equity settled share based payments
10
(544,443)
(80,091)
Other expenses
(624,949)
(528,067)
Loss before income tax expense
7
(4,169,846)
(5,436,253)
Income tax
8
-
-
Loss after tax attributable to the owners of the Company
(4,169,846)
(5,436,253)
Other comprehensive (loss) net of tax
-
-
Total comprehensive loss for the year attributable to the
owners of the Company
(4,169,846)
(5,436,253)
Basic and diluted loss per share (cents)
25
(1.7)
(2.7)
The Consolidated Statement of Loss and Other Comprehensive Income
should be read in conjunction with the accompanying notes, which form
an integral part of the financial report.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
31
Consolidated Statement of Financial Position
As at 30 June 2024
Note
2024
$
2023
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
30(a)
7,790,323
4,533,957
Trade and other receivables
12
2,795,197
580,829
Inventory
13
1,667,511
1,031,404
Other financial assets
14
79,840
56,000
Other assets
15
625,816
222,550
TOTAL CURRENT ASSETS
12,958,687
6,424,740
NON-CURRENT ASSETS
Property, plant and equipment
16
2,493,005
2,221,916
Right of use assets
17
1,847,729
158,116
Intangible assets
18
50,431
32,113
TOTAL NON-CURRENT ASSETS
4,391,165
2,412,145
TOTAL ASSETS
17,349,852
8,836,885
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
19
1,252,748
469,901
Contract liabilities
20
3,585,265
867,700
Borrowings
35
219,003
178,608
Derivative financial instrument
36
16,366
-
Lease liabilities
21
165,122
169,507
Employee benefits
22
267,289
167,409
TOTAL CURRENT LIABILITIES
5,505,793
1,853,125
NON-CURRENT LIABILITIES
Lease Liabilities
21
1,789,485
-
Employee benefits
22
61,566
58,602
TOTAL NON-CURRENT LIABILITIES
1,851,051
58,602
TOTAL LIABILITIES
7,356,844
1,911,727
NET ASSETS
9,993,008
6,925,158
EQUITY
Issued capital
23(a)
32,999,158
26,305,905
Accumulated losses
24
(24,289,216)
(20,119,370)
Reserves
23(d)
1,283,066
738,623
TOTAL EQUITY
9,993,008
6,925,158
The Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes, which form
an integral part of the financial report.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
32
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
Issued Capital
$
Share Options
Reserve
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 July 2022
20,641,272
672,965
(14,683,117)
6,631,120
Loss after income tax expense for the year
-
-
(5,436,253)
(5,436,253)
Shares issued during the year, net of transaction costs
5,664,633
-
-
5,664,633
Options and performance rights issued during the year
-
65,658
-
65,658
Balance at 30 June 2023
26,305,905
738,623
(20,119,370)
6,925,158
Balance at 1 July 2023
26,305,905
738,623
(20,119,370)
6,925,158
Loss after income tax expense for the year
-
-
(4,169,846)
(4,169,846)
Shares issued during the year, net of transaction costs
6,693,253
-
-
6,693,253
Options and performance rights issued during the year
-
544,443
-
544,443
Balance at 30 June 2024
32,999,158
1,283,066
(24,289,216)
9,993,008
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes,
which form an integral part of the financial report.
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
Note
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
8,303,459
1,409,143
Receipts from R&D tax incentive
-
469,592
Payments to suppliers and employees
(10,032,505)
(5,563,286)
Interest received
46,698
61,173
Finance costs
(67,740)
(19,508)
Net cash (used in) operating activities
30(b)
(1,750,089)
(3,642,885)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of property, plant and equipment
12,350
102,399
Proceeds from investments
36,000
-
Payments for investments
(59,840)
-
Payments for intangible assets
(30,114)
(10,605)
Purchase of plant and equipment
(857,730)
(70,935)
Net cash provided by (used in) investing activities
(899,334)
20,859
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issues of shares, net of costs
6,360,927
5,650,201
Repayment of borrowings
(233,344)
(236,364)
Repayment of lease liabilities
(221,794)
(191,336)
Net cash provided by (used in) financing activities
5,905,789
5,222,501
Net increase (decrease) in cash and cash equivalents held
3,256,366
1,600.475
Cash and cash equivalents at the beginning of year
4,533,957
2,933,482
Cash and cash equivalents at end of financial year
30(a)
7,790,323
4,533,957
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes,
which form an integral part of the financial report.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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Notes to the Financial Statements
For the year ended 30 June 2024
1. General Information
AML3D Limited (AML3D or the Company) is a limited liability company
incorporated in Australia, whose shares are listed on the ASX.
The financial statements were authorised for issue by the directors
on 26 August 2024. The Directors have the power to amend and
reissue the financial statements.
The financial statements comprise the consolidated financial
statements of the Company and its controlled entity (the Group).
The principle accounting policies adopted in the preparation
of these consolidated financial statements are set out below
or included in the accompanying notes. Unless otherwise
stated, these policies have been consistently applied to all
the years presented.
2. Material Accounting Policy Information
a. Basis of Preparation
These general purpose financial statements have been
prepared in accordance with Australian Accounting
Standards and Interpretations of the Australian Accounting
Standards Board and the Corporations Act 2001 (Cth). The
Company is a for profit entity for the purpose of preparing
the financial statements.
The consolidated financial statements of AML3D comply
with International Financial Reporting Standards issued by
the International Accounting Standards Board (IASB).
The consolidated financial statements have been prepared
on an accruals basis, except for cashflow information and
are based on historical costs, except for the circumstances
where the fair value method has been applied as detailed in
these accounting policies.
The financial statements have been prepared on a going
concern basis which contemplates the continuity of normal
business activity and the realisation of assets and the
settlement of liabilities in the ordinary course of business.
Comparatives are consistent with prior years, unless
otherwise stated.
b. Principles of Consolidation
As at reporting date, the assets and liabilities of all
controlled entities have been incorporated into the
consolidated financial statements as well as their results for
the year then ended. Where controlled entities have entered
(left) the Consolidated Group during the year, their operating
results have been included (excluded) from the date control
was obtained (ceased).
i. Subsidiaries
Subsidiaries are entities controlled by the Group.
A list of subsidiaries is provided in Note 5.
ii. Transactions eliminated on consolidation
All intra-group balances and transactions, and any unrealised
income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements.
c. Taxation
i. Income Tax
The income tax expense/(income) of the year comprises
current income tax expense/(income) and deferred tax
expense/(income).
Current income tax expense/(income) charged to the profit
or loss is the tax payable on taxable income calculated
using applicable income tax rates enacted, or substantially
enacted, as at reporting date. Current tax liabilities (assets)
are therefore measured at the amounts expected to be paid
to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in
deferred tax assets and deferred tax liabilities during the
year as well as unused tax losses.
Deferred tax assets and liabilities are ascertained based
on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions
are available. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding
a business combination, where there is no effect on
accounting or taxable profit and 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, based on tax
rates enacted or substantially enacted at reporting date.
Their measurement also reflects the manner in which
management expects to recover or settle the carrying
amount of the related asset or liability.
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.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable
that future tax amounts will be available to utilise those
temporary differences and losses.
Current tax assets and liabilities are offset where a legally
enforceable right of offset 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 legally enforceable right of
set-off exists, 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.
ii. Goods and Services Tax (GST)
Revenues, expenses, and assets are recognised net of the
amount of GST, except where the amount of GST incurred
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
34
is not recoverable from the taxation authority. In these
circumstances, the GST is recognised as part of the cost
of acquisition of the asset or as part of an item of expense.
Receivables and payables in the Statement of Financial
Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the
Australian Taxation Office is included as a current asset or
liability in the Statement of Financial Position.
Cash flows are presented in the statement of cash flows on
a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating
cash flows included in cash inflows from operations or
payments to suppliers and employees.
d. Plant and Equipment
i. Recognition and Measurement
Items of plant and equipment are measured on the cost
basis and carried at cost less accumulated depreciation and
impairment losses. 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.
Cost includes expenditure that is directly attributable to the
acquisition of the asset.
The carrying amount of plant and equipment is reviewed
annually by Directors to ensure it is not more than the
recoverable amount from these assets. The recoverable
amount is assessed based on the expected net cash flows
that will be received from the asset’s employment and
subsequent disposal. The expected net cash flows have
not been discounted to their present values in determining
recoverable amounts.
Where parts of an item of plant and equipment have
different useful lives, they are accounted for as separate
items of plant and equipment.
ii. Subsequent Costs
The cost of replacing part of an item of plant and equipment
is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within
the part will flow to the Group and its cost can be measured
reliably. Any costs of the day-to-day servicing of plant and
equipment are recognised in the Statement of Profit or
Loss and Other Comprehensive Income as an expense as
incurred.
iii. Depreciation
Depreciation is charged to the Statement of Profit or Loss
and Other Comprehensive Income on a straight-line basis
over the asset’s useful life to the Group commencing from
the time the asset is held ready for use.
Depreciation rates and methods are reviewed annually for
appropriateness. The straight-line depreciation rates used
for the current period are as follows:
Class of fixed asset
Depreciation rate (%)
Office and Computer equipment
20 - 33
Plant and Equipment
10 - 20
Motor Vehicles
22.5
Leasehold improvements
Over the term of the lease
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 disposal of an item of plant
and equipment are determined by comparing the
proceeds from disposal with the carrying amount of
plant and equipment and are recognised net within
“other income” in the Statement of Profit or Loss and
Other Comprehensive Income.
e. Impairment of Non-Financial Assets
The carrying amounts of the Group’s non-financial assets,
other than deferred tax assets (see accounting policy 2(c)) are
reviewed at each reporting date to determine whether there
is any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of
an asset or its cash-generating unit exceeds its recoverable
amount. A cash-generating unit is the smallest identifiable
asset group that generates cash flows that largely
are independent from other assets and asset groups.
Impairment losses are recognised in the Statement of Profit
or Loss and Other Comprehensive Income, unless the asset
has previously been revalued, in which case the impairment
loss is recognised as a reversal to the extent of that
previous revaluation with any excess recognised through
the Statement of Profit or Loss and Other Comprehensive
Income. Impairment losses recognised in respect of cash-
generating units are allocated to the other assets in the unit
on a prorata basis.
The recoverable amount of an asset or cash generating unit
is the greater of its fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent
cash flows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs.
Impairment losses recognised in prior periods are assessed
at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have been
determined, net of depreciation and amortisation, if no
impairment loss had been recognised.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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f. Financial Instruments
i. 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 equivalent to the date
that the entity commits itself to either the purchase or sale of the
asset (i.e. trade date accounting is adopted).
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.
Where available, quoted prices in an active market are used
to determine fair value. In other circumstances, valuation
techniques are adopted. Trade receivables are initially
measured at the transaction price. Trade receivables do not
contain a significant financing component.
ii. Classification and Subsequent Measurement
Financial Liabilities
A financial liability is measured at fair value through profit
and loss if the financial liability is:
• A contingent consideration of an acquirer in
a business combination to which AASB 3:
Business Combinations applies;
• Held for trading; or
• Initially designated as “at fair value through
profit or loss”.
All other financial liabilities are subsequently measured at
amortised cost using the effective interest rate method.
The effective interest rate method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period.
The effective interest rate is the internal rate of return of
the financial asset or liability. That is, it is the rate that
discounts the estimated future cash flows through the
expected life of the instrument to the net carrying
amount at initial recognition.
Any gains or losses arising on changes in fair value are
recognised in profit or loss to the extent they are not part
of a designated hedging relationship are recognised in
profit or loss.
The change in fair value of the financial liability
attributable to changes in the issuer’s credit risk
is taken to other comprehensive income and are
not subsequently reclassified to profit or loss. Instead,
they are transferred to retained earnings upon
derecognition of the financial liability. If taking the change
in credit risk in other comprehensive income enlarges
or creates an accounting mismatch, then these gains or
losses should be taken to profit or loss rather than other
comprehensive income.
A financial liability is derecognised when it is extinguished (i.e.
when the obligation in the contact is discharged, cancelled
or expires). An exchange of an existing financial liability for
a new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as an
extinguishment of the existing liability and recognition of new
financial liability. The difference between the carrying amount
of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred
or liabilities assumed, is recognised in the Statement of Profit
or Loss, and other comprehensive income.
Other Financial Assets
A financial asset that meets the following conditions is
subsequently measured at amortised cost:
• The financial asset is managed solely to collect
contractual cash flows; and
• The contractual terms within the financial asset
give rise to cash flows that are solely payments
of principal and interest on the principal amount
outstanding on specified dates.
A financial asset that meets the following conditions
is subsequently measured at fair value through other
comprehensive income:
• The contractual terms within the financial asset
give rise to cash flows that are solely payments
of principal and interest on the principal amount
outstanding on specified; and
• The business model for managing the
financial assets comprises both contractual
cash flows’ collection and the selling of the
financial asset.
By default, all other financial assets that do not meet the
measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently
measured at fair value through profit or loss.
The initial designation of the financial instruments to
measure at fair value through profit or loss is a one-time
option on initial classification and is irrevocable until the
financial asset is derecognised.
A financial asset is derecognised when the holder’s
contractual rights to its cash flows expires, or the asset is
transferred in such a way that all the risks and rewards of
ownership are substantially transferred. On derecognition of
a financial asset measured at amortised cost, the difference
between the asset’s carrying amount and the sum of the
consideration received and receivable is recognised
in profit or loss.
Derivative Financial Instruments
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The
accounting for subsequent changes in fair value depends
on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged.
Cash Flow Hedges
Cash flow hedges are used to cover the consolidated
entity’s exposure to variability in cash flows that is
attributable to particular risks associated with a recognised
asset or liability or a firm commitment which could affect
profit or loss. The effective portion of the gain or loss on the
hedging instrument is recognised in other comprehensive
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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income through the cash flow hedges reserve in equity,
whilst the ineffective portion is recognised in profit and loss.
Amounts taken to equity are transferred out of equity and
included in the measurement of the hedged transaction
when the forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a regular
basis both retrospectively and prospectively to ensure
that each hedge is highly effective and continues to be
designated as a cash flow hedge. If the forecast transaction
is no longer expected to occur, the amounts recognised in
equity in equity are transferred to profit or loss.
If the hedging instrument is sold, terminated, expires,
exercised without replacement or roll-over, or if the hedge
becomes ineffective and is no longer a designated hedge,
the amount previously recognised in equity remains in
equity until the forecast transaction occurs.
Cash and Cash Equivalents
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or
less, and bank overdrafts. Bank overdrafts, if any, are shown
within short-term borrowings in current liabilities on the
Statement of Financial Position.
Trade and Other Receivables
Receivables are usually settled within 60 days. 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.
Collectability of trade and other receivables are reviewed on an
ongoing basis.
Trade and Other Payables
These amounts represent liabilities for goods and services
provided to the Group prior to the end of financial year which
are unpaid and stated at their amortised cost. The amounts are
unsecured and are generally settled on 30 day terms.
iii. Impairment of Financial Assets
Impairment of financial assets is recognised on an expected
credit loss (ECL) basis for the following assets:
• Financial assets measured at amortised cost
• Debt investments measured at FVOCI
When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating ECL, the Group considers
reasonable and supportable information that is relevant
and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis
based on the Group’s historical experience and informed
credit assessment and including forward looking
information.
The Group uses the presumption that an asset which is
more than 30 days past due has seen a significant increase
in credit risk.
The Group uses the presumption that a financial asset is in
default when:
• The other party is unlikely to pay its credit
obligations to the Group in full, without recourse
to the Group to actions such as realising security
(if any is held); or
• The financial asset is more than 90 days
past due.
Impairment of trade receivables is determined using the
simplified approach in AASB 9 which uses an estimation of
lifetime expected losses.
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.
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.
iv. Finance Income and Expenses
Finance income comprises interest income on funds
invested, gains on the disposal of financial assets and
changes in the fair value of financial assets at fair value
through profit or loss. Interest income is recognised
as it accrues in profit or loss, using the effective
interest method.
g. Employee Benefits
i. Short-term Employee Benefits
Provision for employee benefits for wages, salaries, annual
leave and long service leave that are expected to be settled
wholly within 12 months of the reporting date represent
obligations resulting from the employee’s services provided
to the reporting date and are calculated at undiscounted
amounts based on remuneration wage and salary rates that
the Group expects to pay at the reporting date including
related payroll on-costs, such as worker’s compensation
insurance and payroll tax.
ii. Other Long-Term Employee Benefits
The Group’s obligation in respect of long-term employee
benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior
periods plus related on-costs; that benefit is discounted to
determine its present value. The discount rate applied is
determined by reference to market yields on high quality
corporate bonds at the reporting date that have maturity dates
approximating the terms of the Group’s obligations.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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iii. Retirement benefit Obligations: Defined contribution
superannuation funds
A defined contribution plan is a post-employment benefit
plan under which an entity pays fixed contributions into
a separate entity and will have no legal or constructive
obligation to pay further amounts. Obligations for
contributions to defined contribution superannuation funds
are recognised as an expense in the Statement of Profit or
Loss and Other Comprehensive Income as incurred.
iv. Equity-settled Compensation
The Group operates an employee share option plan. The fair
value of options granted is recognised as an employee benefit
expense with a corresponding increase in equity. The fair value
is measured at grant date and spread over the period during
which the employees become unconditionally entitled to the
options. The fair value of the options granted is measured using
the Black-Scholes pricing model, considering the terms and
conditions upon which the options were granted. The amount
recognised is adjusted to reflect the actual number of share
options that vest except where forfeiture is only due to market
conditions not being met.
h. 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
amount required to settle the obligation at the end of the
reporting period.
i. Leases
The Group as Lessee
At inception of a contract, the Group assesses if the
contract contains or is a lease. If there is a lease present,
a right of use asset and a corresponding lease liability
are recognised by the Group where the Group is a
lessee. However, all contracts that are classified as short
term leases (i.e. a lease with a remaining lease term of
12-months or less) and leases of low value assets are
recognised as an operating expense on a straight line basis
over the term of the lease.
Initially the lease liability is measured at the present value
of the lease payments still to be paid at the commencement
date. The lease payments are discounted at the interest rate
implicit in the lease. If this rate cannot be readily determined,
the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease
liability are as follows:
• Fixed lease payments less any lease incentives;
• Variable lease payments that depend on an index or
rate, initially measured using the index or rate at the
commencement date;
• The amount expected to be payable by the lessee
under residual value guarantees;
• The exercise price of purchase options, if the lessee
is reasonably certain to exercise the options;
• Lease payments under extension options, if the
lessee is reasonably certain to exercise the
options; and
• Payments of penalties for terminating the lease,
if the lease term reflects the exercise of an option
to terminate the lease.
The right of use assets are recognised at an amount
equal to the lease liability at the initial date of application,
adjusted for previously recognised prepaid or accrued
lease payments. The subsequent measurement of the right
of use asset is at cost less accumulated depreciation and
impairment losses.
Right of use assets are depreciated over the lease
term or useful life of the underlying asset, whichever is
the shortest.
Where a lease transfers ownership of an underlying
asset or the cost of the right of use asset reflects that
the Group anticipates to exercise a purchase option, the
specific asset is depreciated over the useful life of the
underlying asset.
j. Revenue and Other Income
i. Revenue from Contracts with Customers
The core principle of AASB 15: Revenue from Contracts with
Customers is that revenue is recognised on a basis that reflects
the transfer of promised goods or service to customers at an
amount that reflects the consideration the Group expects to
receive in exchange for those goods or services.
Revenue is recognised by applying a five-step process
outlined in ASSB 15 which is as follows:
Step 1: Identify the contract with a customer;
Step 2: Identify the performance obligations in the contract
and determine at what point they are satisfied;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance
obligations;
Step 5: Recognise revenue as the performance obligations
are satisfied.
Following the adoption of AASB 15 the Group’s revenue
recognition accounting policy is that:
The Group derives revenue from the sale of 3D printed
metal structures and the sale or right to use 3D metal
printing machines. Revenue from the sale of manufactured
metal structures and sale of 3D metal printing machines
is recognised upon delivery to the customer. Revenue
from right to use 3D metal printing machines is recognised
once performance obligations in the contract are satisfied.
Broadly, these obligations relate to the delivery of software,
training and the machine itself.
ii. Service or Technical Support Contracts
For service or technical support contracts where the
services provided are substantially the same, for example
maintenance and technical support, which are transferred
with the same pattern of consumption over time and whose
consideration consists of a recurring fixed amount over the
term of the contract (e.g. monthly or annual payment), in
such a way that the customer receives and consumes the
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
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benefits of the services as the Group provides them, the
revenue recognition model is based on the time elapsed
output method. Under this method, revenue is recognised
on a straight-line basis over the term of the contract.
iii. Grant Revenue
Government grants are recognised at fair value where there
is reasonable assurance that the grant will be received and
all grant conditions will be met. Grants relating to expense
items are recognised as income over the periods necessary
to match the grant to the costs they are compensating.
Grants relating to assets are credited to deferred income
at fair value and are credited to income over the expected
useful life of the asset on a straight-line basis.
All revenue is stated net of the amount of GST.
k. Segment Reporting
An operating segment is a component of the Group that
engages in business activities from which it may earn
revenues and incur expenses. Currently, the Group
comprises one operating segment. Further details of the
segment reporting are disclosed in Note 28.
l. Intangible Assets
i. Patents and Trademarks
Costs incurred for patents and trademarks are
capitalised and amortised over the life of the patent or
trademark. The residual value and useful life are reviewed
at each balance date and adjusted if appropriate.
Amortisation is calculated on a straight-line basis over
periods ranging from one to five years.
ii. Software and Website Development Costs
Costs incurred in acquiring software and licences that
will contribute to future period financial benefits through
revenue generation and or cost reduction are capitalised.
Amortisation is calculated on a straight-line basis over
periods ranging from one to three years.
m. Foreign Currency Translation
i. Functional and Presentation Currency
Items included in the financial statement of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial
statements are presented in Australian dollars, which is
AML3D’s functional and presentation currency.
ii. Transactions and Balances
Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions
and from the translation at year end exchange rates of
monetary assets and liabilities denominated in foreign
currencies, are recognised in the income statement or
deferred in equity if the gain or loss relates to a qualifying
cash flow hedge.
iii. Foreign Operations
The results and financial position of all the foreign
operations that have a functional currency different from
the presentation currency are translated into the
presentation currency as follows:
a. Assets and liabilities for each balance sheet
presented are translated at the closing rate
at the date of that balance sheet;
b. Income and expenses for each income
statement and statement of comprehensive
income are translated at average exchange rates
(unless this is not a reasonable approximation
of the cumulative effect of the rates prevailing
on the transaction dates, in which case income
and expenses are translated at the dates of the
transactions); and
c. All resulting exchange differences are recognised in
other comprehensive income.
n. Inventory
Inventories consists of finished goods, work in progress and
raw materials which are measured at the lower of cost and
net realisable value.
Cost comprises direct materials, direct labour and an
appropriate portion of variable and fixed overhead
expenditure.
o. Earnings per Share
Both the basic and diluted earnings per share have been
calculated using the loss attributable to shareholders of the parent
company as the numerator, i.e. no adjustments to loss were
necessary in respect of the reported figures, which is divided by
the weighted average number or ordinary shares outstanding
during the year.
p. Share-based Payments
All goods and services received in exchange for the grant
of any share-based payment are measured at their fair values.
Where employees are rewarded using share-based payments,
the fair values of employees’ services are determined indirectly
by reference to the fair value of the equity instruments
granted. This fair value is appraised at the grant date and
excludes the impact of non-market vesting conditions (for
example profitability and earnings per share growth targets
and performance conditions).
q. Research and Development Expenditure
Research and development costs are expensed in the period in
which they are incurred. Development costs are not capitalised
as there is uncertainty on whether the costs will provide a future
economic benefit to the consolidated group.
r. Going Concern
As at 30 June 2024, the Group had a net asset position of
$9,993,008 (2023: $6,925,158) and cash and cash equivalents of
$7,790,323 (2023: $4,533,957).
The Group expects that cash and cash equivalents, supported by
work in progress and orders received to the date of this report, in
conjunction with stringent controls over the net cash outflows from
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
39
operating activities will be sufficient to cover ongoing operations
for at least 12 months from the date of this report.
Moreover, the Directors have pro actively sought to improved cash
performance via the following initiatives:
• Continued focus on expanding revenue; and
• Continued focus on cost containment in all areas of business.
As a result of the above matters, the Directors are of the view
that the consolidated entity will continue as a going concern and,
therefore, will realise its assets and liabilities and commitments
in the normal course of business and at the amounts stated in
the financial statements. The Directors remain confident about
the successful achievement of projected targets and therefore
no adjustments have been made to these financial statements
relating to the recoverability and classification of the asset carrying
amounts or the amounts and classification of liabilities that might
be necessary should the consolidated entity not continue as a
going concern.
3. Critical Accounting Estimates and Assumptions
The Group makes estimates and assumptions in preparing the
financial statements. The resulting accounting estimates will,
by definition, seldom equal the related actual results. This note
provides an overview of the areas that involve a higher degree of
judgement or complexity and of items which are more likely to be
materially adjusted due to estimates and assumptions differing to
actual outcomes. The areas involving significant estimates and
assumptions are:
i. Key Estimate – R&D Tax Incentive
Where the Group expects to receive the Australian
Government’s Research and Development Tax Incentive,
the Group accounts for the amount refundable on an
accruals basis. In determining the amount of the R&D Tax
Offset Incentive at year end, there is an estimation process
to determine what expenditure will qualify for the incentive.
External advice is sought to provide assurance that the
estimates are reasonable.
ii. Key Estimate – Lease Term
The lease term is defined as the non-cancellable period
of a lease together with both periods covered by an option
to extend the lease if the lessee is reasonably certain to
exercise that option; and also periods covered by an option
to terminate the lease where the lessee is reasonably
certain not to exercise that option. The decision on whether
or not the options to extend are reasonably going to be
exercised is a key management judgement that the entity
will make. The Group determines the likelihood to exercise
on a lease-by-lease basis looking at various factors such as
which assets are strategic and which are key to the future
strategy of the entity.
iii. Key Estimate – Share-based Payments
The Group operates equity-settled share-based payment
and option schemes.
Option
The fair value of the equity to which option holders become
entitled is measured at grant date and recognised as an
expense over the vesting period, with a corresponding
increase to an equity account. The fair value of shares is
ascertained as the market bid price. The fair value of options
is ascertained using the Black-Scholes pricing model, which
incorporates all market vesting conditions. The amount to be
expensed is determined by reference to the fair value of the
options or shares granted. This expense takes in account
any market performance conditions and the impact of any
non-vesting conditions but ignores the effect of any service
and non-market performance vesting conditions.
Non-market vesting conditions are taken into account when
considering the number of options expected to vest. At the
end of each reporting period, the Group revises its estimates
of the number of options which are expected to vest based
on the non-market vesting conditions. Revisions to prior
period estimate are recognised in profit or loss and equity.
Any changes to the estimation are adjusted in the
subsequent financial year.
Fair value of options issued for services from suppliers is
determined with reference to the supplier’s invoice value.
Performance Rights
The fair value of performance rights is measured at grant
date and recognised as an expense over the vesting period,
with a corresponding increase to an equity account. The
fair value is ascertained using the Trinomal Barrier Option
valuation method, which incorporates all market vesting
conditions. The amount to be expensed is determined by
reference to the fair value of the performance rights granted.
This expense takes in account any market performance
conditions and the impact of any non-vesting conditions
but ignores the effect of any service and non-market
performance vesting conditions.
Non-market vesting conditions are taken into account when
considering the number of performance rights expected to
vest. At the end of each reporting period, the Group revises
its estimates of the number of performance rights which
are expected to vest based on the non-market vesting
conditions. Revisions to prior period estimate are recognised
in profit or loss and equity.
Any changes to the estimation are adjusted in the
subsequent financial year.
iv. Key Judgements – Performance obligations relating
to revenue recognition under AASB 15
To identify a performance obligation under AASB 15,
the promise must be distinct to be able to determine when
the obligation is satisfied. Management exercises judgement
to determine whether the promise is distinct by taking into
account any conditions specified in the arrangement, explicit
or implicit, regarding the promised goods and services. In
making this assessment, management includes the nature/
type, cost/value, quantity and the period of transfer related
to the goods or services promised.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
40
4. New, Revised or Amended Accounting Standards
The Group has adopted all the new, revised or amended
Accounting Standards issued by the Australian Accounting
Standards Board (AASB) which are effective for the current
reporting period with no material impact to the financial
statements.
5. Interest in Controlled Entities
The consolidated financial statements incorporate the assets,
liabilities and results of the following subsidiaries:
Name of Entity
Country of
Incorporation /
Tax Jurisdiction
Percentage Owned
2024
2023
AML Technologies
(Asia) Pte Ltd
Singapore
100%
100%
AML3D USA Inc.
United States
100%
100%
6. Revenue
2024
$
2023
$
Revenue from contracts
with customers
7,324,869
634,422
Timing of revenue recognition:
- At a point in time
7,119,175
579,133
- Over time
205,694
55,289
7,324,869
634,422
7. Expenses
Loss before income tax has been arrived at after charging the
following losses and expenses from continuing operations:
2024
$
2023
$
Depreciation of non-
current assets
498,933
473,867
Amortisation of intangible assets
25,786
25,007
Depreciation of right
of use assets
298,232
189,720
822,951
688,594
8. Income Tax
a. Income Tax Expense
2024
$
2023
$
Current tax expense
-
-
Deferred tax expense
-
-
Total tax benefit
-
-
b. The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax
expense as follows:
2024
$
2023
$
Prima facie tax payable on (loss)
from ordinary activities before
income tax at 25% (2023: 25%)
(1,723,232)
(1,401,434)
Add tax effect of:
Permanent Differences
197,115
68,429
Less tax effect of:
Temporary Differences
636,562
194,852
Add: Tax losses not recognised
889,555
1,138,154
Income Tax Expense/(Benefit)
-
-
Tax Losses and Unrecognised
Temporary Differences
Due to inherent uncertainty surrounding forward forecasts,
and therefore the Group’s ability to fully utilise tax losses in the
future, a deferred tax asset for tax losses and deferred tax assets
for temporary differences have only been recognised to the
extent that they offset deferred tax liabilities. The tax losses and
temporary differences for which no deferred tax assets have been
recognised are as follows:
2024
$
2023
$
Available tax losses for which
no deferred tax asset is
recognised
15,772,662
14,948,176
Potential tax benefit at 25%
(2023: 25%)
3,943,165
3,737,044
Net deductible temporary
differences for which no deferred
tax asset has been recognised
5,645,752
1,684,631
Potential tax benefit at 25%
(2023: 25%)
1,411,438
421,158
Income Tax Expense/(Benefit)
-
-
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
41
The taxation benefits of utilised tax losses and temporary
difference not brought to account will only be obtained if:
• The Group derives assessable income of a nature and an
amount sufficient for tax losses and future deductions to be
offset against;
• The Group continues to comply with the condition for
utilisation of tax loses imposed by law; and
• No change in tax legislation affecting the availability of
utilisation losses.
9. Key Management Personnel Disclosures
a. Details of Key Management Personnel (KMP’s)
The directors and KMP’s of AML3D Limited during the financial
year were:
Names
Appointed
Resigned
Directors
Noel Cornish
(Chairman)
5 October
2022
-
Sean Ebert
(Managing Director)
30 August
2019
-
Andrew Sales
(Executive Director)
14 November
2014
-
Peter Siebels
15 January
2024
-
Key Management Personnel
Hamish McEwin
(Chief Financial Officer)
1 March
2021
-
Pete Goumas
(President US Operations)
18 September
2023
-
b. Key Management Personnel Compensation
The aggregate compensation made to Key Management
Personnel of the company is set out below:
2024
$
2023
$
Short-term employee benefits
1,470,054
1,038,131
Post-employment benefits
129,252
98,142
Share-based payments
540,130
80,091
Termination benefits
-
79,290
Total
2,139,436
1,295,654
The compensation of each member of the Key Management
Personnel of the Company is set out in the Remuneration Report.
10. Equity Settled Share-based Payments
During the year, the Company issued the following options and
performance rights.
i. On 13 September 2023 the Company issued 1,664,285
unvested performance rights to key members of staff under
an employee incentive scheme, including 1,428,571 to the
Chief Financial Officer, Mr Hamish McEwin. The Trinomial
Barrier Option valuation method has been applied to
determine a fair value of $114,669 which is being expensed
as a share-based payment proportionally from grant date
to expected vesting date. The performance rights have an
ending date of 13 September 2026 with vesting conditions
as follows:
• Achievement of a Total Shareholder Return (TSR)
Compound Annual Growth Rate (CAGR) of 45%.
• Continuity of employment during the vesting performance.
ii. On 8 November 2023 the Company issued 8,942,165
fully vested options to the following Directors and Key
Management Personnel:
• Non-executive Chairman, Mr Noel Cornish; 2,000,000.
• Executive Director, Mr Sean Ebert; 2,000,000.
• Executive Director, Mr Andrew Sales; 2,000,000.
• President AML3D USA Inc, Mr Pete Goumas; 2,942,165.
The options are exercisable at $0.16 each on or before five years
from the date of issue. The Black-Scholes valuation method
determined a fair value of $447,108 which has been immediately
expensed as a share-based payment.
iii. On 8 November 2023 the Company issued 2,285,714 unvested
performance rights to the Chief Executive Officer, Mr Sean Ebert.
The number of performance rights granted to Mr Ebert was
determined using the ‘face value’ methodology, that is, by dividing
an amount equivalent to 40% of Mr Ebert’s total fixed remuneration
at that date of $400,000 by a share price of $0.07 for the base
Long-term Incentive award. The Trinomial Barrier Option valuation
method has been applied to determine a fair value of $162,057
which is being expensed as a share-based payment proportionally
from grant date to expected vesting date. The performance rights
have an ending date of 8 November 2026 with vesting conditions
as follows:
• Achievement of a Total Shareholder Return (TSR)
Compound Annual Growth Rate (CAGR) of 45%.
• Continuity of employment during the vesting performance.
At the Board’s discretion vesting may occur at the time
of achievement of each performance condition within the
performance period.
iv. On 8 November 2023 the Company issued 2,685,394 unvested
performance rights to the President of AML3D USA Inc, Mr
Pete Goumas. The number of performance rights granted to Mr
Goumas was determined using the ‘face value’ methodology,
that is, by dividing an amount equivalent to 40% of Mr Goumas’
current total fixed remuneration of US$300,000 by a share price
of $0.07 for the base Long-term Incentive award. The Trinomial
Barrier Option valuation method has been applied to determine a
fair value of $190,394 which is being expensed as a share-based
payment proportionally from grant date to expected vesting date.
The performance rights have an ending date of 8 November 2026
with vesting conditions as follows:
• Achievement of a Total Shareholder Return (TSR)
Compound Annual Growth Rate (CAGR) of 45%.
• Continuity of employment during the vesting period.
At the Board’s discretion vesting may occur at the time
of achievement of each performance condition within the
performance period.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
42
11. Remuneration of Auditors
During the year, the following fees were paid or payable for
services provided by the auditor of the parent entity and non-
related audit firms:
2024
$
2023
$
a. William Buck Adelaide
i. Audit and other assurance services
Audit and review of
the financial report
40,450
34,550
ii. Taxation services
Tax compliance and advisory
services
1,390
25,745
b. Fiducia LLP Audit Fees
Audit and review of
subsidiary financial report
3,601
3,210
12. Trade and Other Receivables
2024
$
2023
$
Trade receivables
2,425,166
444,391
Less: Allowance for
expected credit loss
(40,000)
(40,000)
Sub Total
2,385,166
404,391
R&D Tax Offset Refund Due
354,907
171,204
Other receivables
55,124
5,234
Total
2,795,197
580,829
Trade receivables are non-interest bearing and generally on
terms of 14-45 days. The receivables at reporting date have been
reviewed to determine whether there are any expected credit
losses. An allowance for credit loss is included for any receivable
where the entire balance is not considered collectible.
Additional information in relation to financial risks concerning
or with a potential impact on financial assets and liabilities is
disclosed in Note 31 – Financial Risk Management.
13. Inventory
2024
$
2023
$
Finished goods
380,066
405,250
Work in progress
1,119,588
572,430
Raw materials
167,857
53,724
Total
1,667,511
1,031,404
14. Other Financial Assets
2024
$
2023
$
Term deposit (current)
79,840
56,000
Total
79,840
56,000
15. Other Assets
2024
$
2023
$
Prepayments
625,816
222,550
Total
625,816
222,550
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
43
16. Plant and Equipment
Cost
Office and
Computer
Equipment
$
Plant and
Equipment
$
Plant and
Equipment Held
for Lease
$
Motor
Vehicles
$
Leasehold
Improvements
$
Total
$
Balance 1 July 2022
243,355
2,878,406
-
136,902
217,666
3,476,329
Additions
8,280
228,133
-
-
-
236,413
Disposals
(10,600)
(23,271)
-
(114,429)
-
(148,300)
Transfers between asset
categories
-
(4,497)
-
-
-
(4,497)
Balance at 30 June 2023
241,035
3,078,771
-
22,473
217,666
3,559,945
Additions
179,416
129,474
193,217
-
299,724
801,831
Disposals
-
(21,222)
-
-
-
(21,222)
Transfers between asset
categories
-
(193,050)
154,297
-
-
(38,753)
Balance at 30 June 2024
420,451
2,993,974
347,514
22,473
517,390
4,301,802
Accumulated Depreciation
and Impairment
Office and
Computer
Equipment
$
Plant and
Equipment
$
Plant and
Equipment Held
for Lease
$
Motor
Vehicles
$
Leasehold
Improvements
$
Total
$
Balance 1 July 2022
80,981
756,529
-
29,694
33,924
901,128
Depreciation expense
68,641
366,052
-
7,507
31,667
473,867
Depreciation written back
on disposal
(4,402)
(7,448)
-
(25,116)
-
(36,966)
Balance 30 June 2023
145,220
1,115,133
-
12,085
65,591
1,338,029
Depreciation expense
72,264
342,478
29,539
5,576
49,075
498,933
Depreciation written back
on disposal
-
(20,425)
-
-
-
(20,425)
Transfers between asset
categories
-
(59,858)
52,119
-
-
(7,740)
Balance at 30 June 2024
217,484
1,377,327
81,658
17,661
114,666
1,808,797
Net book value
At 30 June 2023
95,815
1,963,638
-
10,388
152,075
2,221,916
At 30 June 2024
202,967
1,616,647
265,856
4,812
402,723
2,493,005
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
44
17. Right of Use Assets
The Group’s lease portfolio comprises two leased buildings:
Units 3&4, 136 Mooringe Avenue, North Plympton, South Australia
The lease has an remaining term of four years and four months.
An option to extend or terminate is contained in the lease
agreement. These clauses provide the Group opportunities
to manage the lease in order to align with its strategies. All
the extension or termination options are only exercisable by
the Group. The extension options, which management were
reasonably certain to be exercised, have been included in the
calculation of the lease liability.
1000 Campus Drive, Suite 300, Stow, Ohio
The lease has an remaining term of four years and eleven
months. An option to extend or terminate is contained in the
lease agreement. These clauses provide the Group opportunities
to manage the lease in order to align with its strategies. All
the extension or termination options are only exercisable by
the Group. The extension options, which management were
reasonably certain would not be exercised, have not been
included in the calculation of the lease liability.
i. AASB 16 related amounts recognised in the statement of
financial position:
Right-of-use Assets
2024
$
2023
$
Leased buildings
1,987,861
584,986
Accumulated depreciation
(140,132)
(426,870)
Net carrying amount
1,847,729
158,116
Movement in Carrying Amounts
Leased buildings:
Opening balance
158,116
347,836
Recognition of new lease
agreements
1,987,845
-
Depreciation expense for
the year ended
(298,232)
(189,720)
Net carrying amount
1,847,729
158,116
ii. AASB 16 related amounts recognised in the
statement of loss:
2024
$
2023
$
Depreciation charge related
to right of use assets
298,232
189,720
Interest expense on
lease liabilities
70,387
13,696
18. Intangible Assets
2024
$
2023
$
Patents and Trademarks
– at cost
34,550
34,550
– accumulated amortisation
(34,550)
(28,154)
Net carrying value
-
6,395
Software – at cost
169,842
134,694
– accumulated amortisation
(137,992)
(118,617)
Net carrying value
31,850
16,077
Website – at cost
35,166
26,210
– accumulated amortisation
(16,585)
(16,569)
Net carrying value
8,581
9,641
Total intangibles
50,431
32,113
Reconciliation of Movements
in Intangible Assets:
2024
$
2023
$
Balance at the beginning
of the year
32,113
47,479
Additions to intangible assets
44,104
9,641
Amortisation charged to
intangible assets
(25,786)
(25,007)
Balance at the end of the year
50,431
32,113
Intangible assets have finite useful lives. The current amortisation
charges for intangible assets are included under depreciation and
amortisation expense in the statement of profit and loss and other
comprehensive income.
At each reporting date the directors review intangible assets for
impairment. No impairment was assessed as necessary in the
2024 financial year (2023: Nil).
19. Trade and Other Payables
2024
$
2023
$
Trade payables
822,683
231,249
Other payables and
accrued expenses
430,065
238,652
Total
1,252,748
469,901
Trade and other payables are unsecured, non-interest bearing and
normally settled within 30 days.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
45
20. Contract Liabilities
2024
$
2023
$
Customer deposits
3,585,265
867,700
Total
3,585,265
867,700
Contract liabilities include non-interest bearing customers
deposits for which not all contractual performance obligations
have been met.
Reconciliation of Movements
in Customer Deposits:
2024
$
2023
$
Balance at the beginning
of the year
867,700
5,624
Payments received in advance
6,611,658
1,232,428
Transfer to revenue -
performance obligations
satisfied
(3,894,093)
(370,352)
Balance at the end of the year
3,585,265
867,700
21. Lease Liabilities
2024
$
2023
$
Lease liability (current)
165,122
169,507
Lease liability (non-current)
1,789,485
-
Total
1,954,607
169,507
22. Employee Benefits
Current
2024
$
2023
$
Annual Leave
253,211
146,135
RDO Accrual
14,078
21,274
Total
267,289
167,409
Non-current
2024
$
2023
$
Long Service Leave
61,566
58,602
Total
61,566
58,602
23. Equity
a. Issued Capital
2024
$
2023
$
377,099,023 fully paid ordinary
shares (2023: 235,553,713)
32,999,158
26,305,905
Ordinary shares participate in dividends and the proceeds
on winding of the Company in proportion to the number of
shares held.
On a show of hands, every holder of ordinary shares present at
a meeting or by proxy is entitled to one vote, and on a poll each
share is entitled to one vote.
The Company does not have authorised capital or par value in
respect of its shares.
b. Movement in Ordinary Shares:
2024
Number
$
Balance at beginning
of financial year
235,553,713
26,305,905
Shares issued during the year
141,545,310
7,170,714
Total shares issued
141,545,310
7,170,714
Costs of the
shares issued
(477,461)
Balance at end of
financial year
377,099,023
32,999,158
2023
Number
$
Balance at beginning
of financial year
150,458,386
20,641,272
Shares issued during the year
84,827,260
6,085,000
Performance Rights exercised
during the year
268,067
14,433
Total shares issued
85,095,327
6,099,433
Costs of the
shares issued
(434,800)
Balance at end of
financial year
235,553,713
26,305,905
i. The Company issued 33,767,789 shares on 16 May 2024 via
a rights issue to existing shareholders at an issue price of
$0.05 per share for a total consideration of $1,688,389.
ii. 44,749,084 shares were issued on 23 May 2024 via a private
placement at an issue price of $0.05 for a total consideration
of $2,237,454.
iii. 51,250,916 shares were issued on 23 May 2024 via a private
placement at an issue price of $0.05 for a total consideration
of $2,562,546.
iv. 7,000,000 shares were issued on 27 May 2024 via a private
placement at an issue price of $0.05 for a total consideration
of $350,000.
v. 4,777,530 shares were issued on 26 June 2024 to S3
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
46
Consortium Pty Ltd at an issue price of $0.06956 based
on the 5 day VWAP prior to issue for a total valuation of
$332,325. The shares were issue as consideration for
investor relations services for the period June 2024 to June
2026, and are subject to a 24 months escrow.
c. Capital Management
Management controls the capital of the Company in
order to generate long-term shareholder value and ensure
that the Company can fund its operations and continue as
a going concern.
The Company is not subject to externally imposed
capital requirements.
There have been no changes in the strategy adopted by
management to control the capital of the Group since the issue of
the prospectus.
d. Reserves
The Group’s reserves comprise a share-based payments reserve.
A summary of the movements in the reserve is as follows:
Current
2024
$
2023
$
Balance at beginning
of financial year
738,623
672,965
Share-based payment
expense - Options issued
447,108
58,000
Share-based payment
expense - Performance Rights
issued
97,335
7,658
Balance end of financial year
1,283,066
738,623
The reserve records the value of share-based payments provided.
The following table details the tranches of options outstanding as at 30 June 2024.
Number of
Options
Grant
Date
Expiry
Date
Share Price
at Grant Date
Exercise
Price
Fair value
at Grant Date
Value
$
7,500,000 4 December 2019 4 December 2024
$0.15
$0.30
$0.06
451,408
2,000,000
22 December
2022
22 December
2027
$0.074
$0.30
$0.029
58,000
8,942,165
8 November 2023
8 November 2028
$0.079
$0.16
$0.05
447,108
18,442,165
956,516
All options are currently exercisable. The Black-Scholes valuation method was applied to determine the fair value of the options. For
options issued during the year, key inputs included; share price volatility of 94.17%, and implied interest rate of 3.75%.
The following table details the tranches of performance rights issued during the year ended 30 June 2024.
Number of Performance Rights
Grant Date
Expiry Date
Share Price at
Grant Date
Fair Value at
Grant Date
Value
$
1,664,285
13 September
2023
13 September
2026
$0.077
$0.069
114,669
4,971,108
8 November
2023
8 November
2026
$0.079
$0.071
352,452
6,635,393
467,121
The Trinomal Barrier Option valuation method was applied to determine the fair value of the performance rights. The value is being
expensed as a share-based payment proportionally from grant date to expected vesting date. An expense of $97,335 has been
recognised during the financial year (2023: $7,658).
Movement in Options on Issue
2024
Number of Options
2023
Number of Options
Balance at beginning
of financial year
11,500,000
9,500,000
Options issued
8,942,165
2,000,000
Option expired
(2,000,000)
-
Balance at end
of financial year
18,442,165
11,500,000
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
47
24. Accumulated Losses
2024
$
2023
$
Balance at beginning
of financial year
(20,119,370)
(14,683,117)
Loss attributable to members
of the entity
(4,169,846)
(5,436,253)
Balance at end of
financial year
(24,289,216)
(20,119,370)
25. Loss per Share
2024
$
2023
$
Basic (loss) per share (cents):
(1.7)
(2.7)
Loss used in calculating basic
earnings per share
(4,169,846)
(5,436,253)
2024
No.
2023
No.
Weighted average number
of ordinary shares for the
purposes of basic earnings
per share
250,451,693
202,950,544
The rights of options are non-dilutive as the Company has incurred
a loss for the year.
26. Related Party Disclosures
The following paragraphs provide details of transactions
and balances with related parties.
a. Compensation of Key Management Personnel
Details of Key Management Personnel compensation are recorded
in Note 9(b).
b. Other transactions with Key Management Personnel
There were no related party transactions during the financial year
ended 30 June 2024 (2023: $165,978). There were no outstanding
related party balances as at 30 June 2024.
c. Controlled Entities
During the financial year, the Company provided loan funds to its
Singaporean and United States subsidiaries, AML Technologies
(Asia) Pte Ltd and AML3D USA Inc., to enable its subsidiaries
to meet start-up expenses. The transactions were conducted on
commercial terms and conditions.
With the change in the Company’s focus to US markets, the
decision has been made to service South East Asia through
Australian operations. As a result, the Singaporean subsidiary
is in the process of being wound up. Accordingly the loan from the
Parent entity of $27,445 (2023: $555,648) has been forgiven as at
30 June 2024.
27. Contingencies
In the opinion of the Directors, besides the guarantees disclosed
in Note 33, the Group did not have any contingent liabilities or
assets as 30 June 2024 (2023: Nil).
28. Segment Reporting
i. Operating segments
The Company operates in the additive manufacturing
sector in Australia, United States and South East Asia.
For management purposes, the Group has one main
operating segment which involves the provision of
3D printing services and machinery sales in all territories
in which it operates. All of the Group’s activities are inter-
related and discrete financial information is reported to
the (Chief Operating Decision Maker), being the Chief
Executive Officer, as a single segment. Accordingly, all
significant operating decisions are based upon analysis
of the Group as one segment. The financial results for
this segment are equivalent to the financial statements
of the Group as a whole.
All amounts reported to the Chief Executive Officer, being
the chief operating decision maker with respect to operating
segments, are determined in accordance with accounting
policies that are consistent with those adopted in the annual
financial statements of the Group.
ii. Geographic area
Revenues from external customers attributed to Australia
and other countries is as follows:
2024
$
2023
$
Australia
331,190
195,455
United States
6,978,679
347,795
Singapore
15,000
91,173
Total Revenue
7,324,869
634,422
iii. Major customers
The Group has certain customers which represent more
than 10% of the Group’s revenue from contracts with
customers. Each customer is a customer of the 3D printing
services and machine sales operating segment. Revenue
for those customers is as follows:
2024
%
2023
%
3 Customer
92%
-
1 Customers
-
55%
29. Subsequent Events
No matters or circumstances have arisen since the end of the
financial year which significantly affected or may significantly affect
the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years, except for:
i. On 2 July 2024, AML3D announced the sale of a 2600
Edition ARCEMY® system for $1.1 million to Laser Welding
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
48
Solutions (“LWS”). LWS had been operating the ARCEMY®
system under a lease agreement since September 2023.
ii. On 18 July 2024, 2,000,000 Director Options were issued to
Mr Peter Siebels for nil consideration. The options have an
exercise price of $0.16 and an expiry date of 18 July 2029.
iii. On 18 July 2024, 11,981,973 Advisor Options were issued
to Joint Lead Managers of the May 2024 capital raise for nil
consideration. The options have an exercise price of $0.10
and an expiry date of 30 June 2026.
iv. On 26 July 2024, 15,723,215 Advisor Options were issued
for services provided for nil consideration. The options have
an exercise price of $0.10 and an expiry date of 30 June
2026.
v. On 6 August 2024, 2,000,000 shares were issued to
Mr Peter Siebels at $0.05 per shares in accordance with the
Director Placement Shares as approved at the Company’s
EGM on 17 July 2024.
30. Notes to the Statements of Cashflows
a. Reconciliation of Cash and Cash Equivalents
2024
$
2023
$
Cash and cash at bank
7,790,323
4,533,957
b. Reconciliation of loss for the year to net cash flows
used in operating activities
2024
$
2023
$
(Loss) for the year after
income tax
(4,169,846)
(5,436,253)
Non-cash items
Depreciation and amortisation of
non-current assets
822,951
688,594
Expected credit losses
-
30,980
Share based payments
544,443
80,091
Unrealised foreign currency loss
16,366
-
Gain on disposal of property,
plant and equipment
(10,203)
(5,589)
Changes in assets and liabilities
(Increase) / decrease in trade
and other receivables
(2,164,978)
163,954
(Increase) / decrease in
prepayments and other assets
(267,765)
199,280
(Increase) / decrease in
inventories
(636,107)
(269,917)
Increase / (decrease) in trade
and other payables
895,999
(41,834)
Increase in
contract liabilities
2,873,420
883,831
Increase in financial liabilities
292,788
-
Increase in employee benefits
102,844
63,978
Net cash (used) in
operating activities
(1,750,089)
(3,642,885)
31. Financial Risk Management
The Group’s financial risk management is predominantly controlled
by the Managing Director and Chief Financial Officer with the
oversight of the Board and the Audit and Risk Committee.
a. Financial Risk Management
The Group enters into financial instruments which consist of
deposits with banks, accounts receivable and payables. The totals
for each category of financial instrument is shown in this Note.
The Group uses derivative financial instruments such as forward
foreign exchange contracts to hedge certain risk exposures.
Derivatives are exclusively used for hedging purposes, i.e. not as
trading or other speculative instruments.
b. Significant Accounting Policies
Details of significant accounting policies and methods adopted,
including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised,
in respect of each class of financial asset, financial liability
and equity instrument are disclosed in Note 2 to the financial
statements.
c. Interest Rate Risk Management
The Group is exposed to interest rate risk as it places funds at
floating interest rates. In the current low interest environment, the
Group is exposed to minimal interest rate risk.
d. Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group.
The Group has adopted a policy of dealing only with creditworthy
counterparties (where such information is available) and obtaining
sufficient collateral (such as up front deposits before commencing
work), as a means of mitigating the risk of financial loss from
defaults. The Group’s exposure is constantly monitored.
The Group has significant credit risk exposure to an number
of counterparties having similar characteristics. Sales to these
customer are denominated in US dollars and the Group has
hedged approximately 50% of the receivables.
The credit risk on liquid funds is limited because the counterparties
are banks with high credit ratings assigned by international credit-
rating agencies.
The quality of debtors is monitored by the ageing of open invoices
in accounts receivable. Trade receivables are analysed as follows:
2024
$
2023
$
Not impaired
- Within trade terms
2,231,816
272,791
- Past due but not impaired
153,350
131,600
Impaired
- Past due and impaired
40,000
40,000
Total trade receivables
2,425,166
444,391
Receivables that are past due but not impaired comprise
customers which do not have any objective evidence that the
receivable may be impaired. The Company knows why certain
customers are past due and expects that they will be paid.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
49
An allowance for expected credit losses has however been recognised at 30 June 2024 for balances past due.
Analysis of trade receivables:
Per aged debtors report
Not past Due
$
60-90 days
$
>90 days
$
Total
$
2024
Trade receivables
2,231,816
21,750
171,600
2,425,166
Total
2,231,816
21.750
171,600
2,425,166
2023
Trade receivables
272,791
-
171,600
444,391
Total
272,791
-
171,600
444,391
For the year ended 30 June 2024, no expense has been recognised during the financial year then ended for the allowance for expected
credit losses (2023: $30,980).
Maturity profile of financial instruments
Weighted
average interest
rate (%)
Expected Maturity dates
Interest Bearing
Less than 1 year
$
1 - 10 years
$
Non interest
bearing
$
Total
$
2024
Financial Assets
Other financial assets
4%
79,840
-
-
79,840
Cash and cash equivalents
2%
7,790,323
-
-
7,790,323
Trade and other receivables
-
-
2,795,197
2,795,197
Total
7,870,163
-
2,795,197
10,665,360
Financial Liabilities
Trade and other payables
-
-
1,252,748
1,252,748
Contract liabilities
-
-
3,585,265
3,585,265
Derivative financial instruments
-
-
16,366
16,366
Borrowings
5%
219,003
-
-
219,003
Lease liabilities
9%
165,122
1,789,485
-
1,954,607
Total
384,125
1,789,485
4,854,379
7,027,989
2023
Financial Assets
Other financial assets
4%
56,000
-
-
56,000
Cash and cash equivalents
2%
4,533,957
-
-
4,533,957
Trade and other receivables
-
-
580,829
580,829
Total
4,589,957
-
580,829
5,170,786
Financial Liabilities
Trade and other payables
-
-
469,901
469,901
Contract liabilities
-
-
867,700
867,700
Borrowings
5%
178,608
-
-
178,608
Lease liabilities
5%
169,507
-
-
169,507
Total
348,115
-
1,337,601
1,685,716
The amounts listed above equate to fair value. The cashflows in the maturity analysis above are not expected to occur significantly earlier
than disclosed.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
50
e. Liquidity Risk Management
Liquidity risk arises from the possibility that the Group may encounter
difficulty in settling its debts or otherwise meeting its obligations related
to financial liabilities.
The Group manages liquidity risk by maintaining adequate cash
reserves and monitoring its actual and forecast cashflows and financial
obligations. The Group endeavours to pay its creditors within
agreed trade terms.
f. Currency Risk
Foreign exchange risk arises from future commercial transactions
and recognised financial assets and financial liabilities denominated
in a currency that is not the Group’s functional currency. The risk is
measured using sensitivity analysis and cash flow forecasting.
In order to protect against exchange rate movements, the Group
has entered into a forward foreign exchange contract. This contract
is hedging probable forecasted cash flows for the ensuing financial
year. Management has a risk management policy to hedge 50% of
anticipated foreign currency transactions for the subsequent 3 months.
The maturity, settlement amounts and the average contractual
exchange rate of the Group’s outstanding forward foreign exchange
contract at reporting date is as follows:
Sell US
dollars
Average exchange
rate
2024
$
2024
Buy Australian dollars
Maturity: 0 - 3 months
16,366
0.6715
32. Information relating to AML3D Limited (the Parent)
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
Statement of Financial Position
2024
$
2023
$
Assets
Current assets
12,805,365
6,410,291
Non-current assets
5,052,712
2,468,145
Total assets
17,858,076
8,878,436
Liabilities
Current liabilities
5,438,480
1,853,087
Non-current liabilities
1,494,821
58,602
Total liabilities
6,933,301
1,911,689
Net assets
10,924,776
6,966,747
Equity
Issued capital
32,999,158
26,305,906
Reserves
1,283,066
738,623
Accumulated losses
(23,357,448)
(20,077,782)
Total equity
10,924,776
6,966,747
Statement of Profit or Loss
and Other Comprehensive Income
2024
$
2023
$
Total loss for the year
3,279,666
5,936,342
Total comprehensive
loss for the year
3,279,666
5,936,342
The parent entity has entered into two bank guarantees
represented by term deposits, the first for $59,840 in respect of the
leased premises at North Plympton, Adelaide, and the second for
$20,000 in respect of a corporate credit card facility provided by
the Group’s banker Commonwealth Bank of Australia. Other than
these guarantees, the parent entity had no contingent liabilities
at 30 June 2024.
33. Guarantees
AML3D has the following guarantee in place:
• A guarantee secured by a bank term deposit of $59,840
for the lease of its premises at units 3&4, 136 Mooringe
Avenue, North Plympton SA 5037.
• A guarantee secured by a bank term deposit of $20,000
for a corporate credit card facility provided by the Group’s
banker Commonwealth Bank of Australia.
34. Capital Commitments
At 30 June 2024, AML3D had no commitments for capital
equipment ordered but not yet received (2023: Nil).
35. Borrowings
2024
$
2023
$
Insurance premium funding
219,003
178,608
Total borrowings
219,003
178,608
Reconciliation of movements in borrowings
Balance at the beginning
of the year
178,608
189,062
Additional borrowings
273,739
225,910
Repayment of borrowings
(233,344)
(236,364)
Balance at the end of the year
219,003
178,608
36. Derivative Financial Instruments
2024
$
2023
$
Forward foreign exchange
contracts - cash flow hedges
16,366
-
Total derivative financial
instruments
16,366
-
Refer to note 31 for further information on financial instruments.
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
51
Consolidated Entity Disclosure Statement
For the year ended 30 June 2024
Name of entity
Entity Type
Body Corporation
Tax Residency
Country of
incorporation
Percentage of
Share Capital Held
Australian or
Foreign
Foreign
Jurisdiction
AML3D Limited
Body Corporate
Australia
N/A
Australian
N/A
AML Technologies
(Asia) Pte Ltd
Body Corporate
Singapore
100%
Foreign
Singapore
AML3D USA Inc.
Body Corporate
United States
100%
Foreign
United States
Directors’
Declaration
Directors’ Declaration
In accordance with a resolution of the Directors of AML3D Limited
(Company), the Directors of the Company declare that:
1. In the opinion of the Directors, the financial statements and
notes for the year ended 30 June 2024 are in accordance
with the Corporations Act 2001 and:
a. Comply with Accounting Standards, which, as
stated in basis of preparation Note 2 to the financial
statements, constitutes explicit and unreserved
compliance with International Financial Reporting
Standards (IFRS); and
b. Give a true and fair view of the consolidated
entity’s financial position as at 30 June 2023 and its
performance for the year ended on that date;
2. In the opinion of the Directors, there are reasonable grounds
to believe that the Company will be able to pay its debts
as and when they become due and payable; and
3. In the opinion of the Directors, the Consolidated Entity
Disclosure Statement required by subsection (3A) is true
and correct; and
4. The Directors have been given the declarations required by
Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer.
Noel Cornish AM
Chairman
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
52
AML3D Limited // ASX: AL3 // ABN 55 602 857 983
53
Dated this 26th day of August 2024
Additional
Shareholder Information
The following information is current as at 21 August 2024:
Shareholding
Following are details of fully paid ordinary shares on issue:
Fully Paid
Ordinary Shares on Issue
Number of
holders
Number of
shares
Quoted on ASX
4,855
379,099,032
There are 14 holders of 48,147,353 unquoted options each of
which converts to 1 share upon exercise.
Distribution of Shareholders
Range of Units
Number of
Holders
Percentage of
total securities
1 – 1,000
109
0.02%
1,001 – 5,000
1,294
1.09%
5,001 – 10,000
1,019
2.10%
10,001 – 20,000
746
3.03%
20,001 – 50,000
787
7.15%
50,001 and over
900
86.61%
Total
4,855
100.00%
Unmarketable Parcels
The number of shareholders holding less than a marketable
parcel is 1,025.
Substantial Shareholders
Substantial shareholders as disclosed by notices received by the
Company as at 21 August 2024 are:
Shareholder
Number of
ordinary shares
Andrew Michael Clayton Sales
33,207,707
Voting Rights
The voting rights attached to each class of equity security
are as follows:
Ordinary Shares:
• Each ordinary share is entitled to one vote when a poll is
called, otherwise each member at a meeting or by proxy
has one vote on a show of hands.
Other:
• Options do not confer upon the holder an entitlement to vote
on any resolutions proposed by the Company except as
required by law.
Stock Exchange Listing
Admitted to the Official List of ASX on 16 April 2020; quotation
commenced on 20 April 2020.
ASX:AL3
20 Largest Shareholders – Ordinary Shares
Name
Number of
Shares held
%
1
MR ANDREW MICHAEL
CLAYTON SALES
32,657,707
8.61
2
NETWEALTH INVESTMENTS
LIMITED
3,703,702
0.98
11
CERTANE CT PTY LTD
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