Archer Materials Limited
Appendix 4E
Preliminary Final Report for the year ended 30 June 2023
1.
Company Details
Name of entity:
ABN:
Reporting period:
Previous period:
Archer Materials Limited
64 123 993 233
For the year ended 30 June 2023
For the year ended 30 June 2022
2.
Results for announcement to the market
30 June 2023
$
30 June 2022
$
Variance
$
Variance
%
Revenue from ordinary activities
-
-
-
-
Profit/(loss) from ordinary activities
after tax attributable to members
Net profit/(loss) for the period
attributable to members
(9,049,457)
(14,115,728)
5,066,271
(36%)
(9,049,457)
(14,115,728)
5,066,271
(36%)
Dividends
No dividends have been paid or proposed during the current reporting period.
Key notes
The net loss of the Group for the year ended 30 June 2023 was $9,049,457 (2022: $14,115,728)
and includes:
• Share based payments expense of $5,554,843 representing the fair value of unlisted share
options granted during the year ended 30 June 2023 (2022: $9,945,024) net of forfeitures.
• Direct expenditure on quantum and biochip technology research activities (including allocation
of direct personnel costs) of $2,965,560 (2022: $2,259,068).
• Unreaslised loss associated with the fair value adjustment of Archer’s share and option
investments in:
o Volatus Capital Corp (shares) as at 30 June 2023 of $128,088 (2022: $695,939); and
o ChemX Materials Limited (shares and options) as at 30 June 2023 of $720,303 (2022:
$752,123)
The above expense items are offset by:
•
Interest income of $677,248 (2022: $86,248); and
• An income amount of $1,450,000, being the estimated research and development tax incentive
receivable based on associated expenditure for the year ended 30 June 2023.
.
Archer Materials Limited
Appendix 4E
Preliminary Final Report for the year ended 30 June 2023
3.
Net tangible assets
Net tangible assets per share
10.06 cents
11.73 cents
(1.67) cents
14%
30 June 2023
(cents)
30 June 2022
(cents)
Variance
(cents)
Variance
The net tangible assets calculation does not include rights-of-use assets of $9,097 (30 June 2022:
$19,750) or intangible assets of $353,694 (30 June 2022: $248,340) but includes the lease
liabilities of $9,097 (30 June 2022: $19,749).
4.
Control gained over entities
Not applicable.
5.
Loss of control over entities
Not applicable.
6.
Dividends
No dividends have been paid or proposed during the current or prior reporting period.
7.
Dividend reinvestment plans
Not applicable.
8.
Details of associates and joint venture entities
Not applicable.
9.
Foreign entities
Details of origin of accounting standards used in compiling the report:
Not applicable.
10. Audit qualification or review
Details of audit/review dispute or qualification (if any):
The Financial Statements and accompanying notes for the Group for the year ended 30 June 2023,
contained in the attached Annual Report, upon which this Appendix 4E is based, have been audited
by Grant Thornton Audit Pty Ltd. An unmodified audit report has been provided.
Archer Materials Limited
Appendix 4E
Preliminary Final Report for the year ended 30 June 2023
11. Attachments
Details of attachments (if any):
The Annual Report, which includes Financial Statements and accompanying notes for the Group for
the year ended 30 June 2023 is attached.
12.
Signed
As authorised by the Board of Directors
Signed
Date
24 August 2023
Greg English
Executive Chairman
Adelaide
Annual Report
For the year ended 30 June 2023
Annual Report
For the year ended 30 June 2023
2
Table of
Contents
Chairmans Letter
Operating and Financial Review
> Strategy
> Summary of Financial Performance
> Changes in Equity
> Factors and Risks Affecting Future Performance
> Advanced Semiconductors
Quantum Technology
Bioelectronics
Directors’ Report
Remuneration Report (audited)
Auditor’s Independence Declaration
Financial Information
> Statement of Profit or Loss and Other Comprehensive Income
> Statement of Financial Position
> Statement of Changes in Equity
> Statement of Cash Flows
> Notes to the Financial Statements
Archer Materials Limited
(ABN 64 123 993 233)
The laboratory plant and
equipment shown in the
photos and images in this
report are not assets of
the Company.
Directors’ Declaration
Independent Auditor’s Report
Additional Information
Corporate directory
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7
8
8
9
11
20
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77
79
3 | Archer Materials Limited 2023 Annual Report
Chairman’s
Letter
Greg English
Executive Chairman
Over the past year, we continued our efforts in driving
innovation in the quantum computer sector by optimising
and validating the performance of the 12CQ qubit material
and its incorporation with CMOS technology.
As a result of this work, we have achieved electron spin
coherence times that push the boundaries of room
temperature qubit materials.
Quantum algorithms and applications are evolving rapidly,
promising practical and impactful solutions for real-world
challenges.
In addition to the gains made in optimising the 12CQ qubit
material and related devices, our ongoing commitment to
research and development meant that the Archer team was
able to gain electronic control of the sensitivity of graphene
transistors to be incorporated into our “lab-on-a-chip”
biochip. This important development enables us to target
specific biomolecules with greater precision, opening new
possibilities in the field of biosensing.
With our 12CQ and biochip projects, we are developing
technologies that could spur transformational solutions
to complex global challenges. Over the course of FY23,
we made several significant steps towards achieving our
mission to put the power of quantum computing in the
palm of users’ hands, and improve the ability of medical
diagnostics to better detect multiple diseases in a much
more timely manner.
Over the past few years, Archer has been building the
foundations to advance its semiconductor development
for potential commercialisation in global markets. We have
formed a world-class team of innovators and technologists,
working with tier-one international tech institutes and
companies, and we have established a portfolio of patents
to protect our intellectual property (IP).
Whilst wide-scale adoption of quantum computing may
be some years off, we can rest assured that it is coming.
Major global companies are investing billions of dollars to
introduce quantum computing into daily life.
Quantum computing’s potential to revolutionise various
industries has become increasingly evident. From finance
and healthcare to logistics and scientific research, the
power of quantum computing to solve complex problems
and optimise processes is unparalleled.
4
Unlocking the power of quantum computing through
quantum bits, or qubits, will change society’s relationship
with technology and exponentially increase the power of
the next generation of computing, providing the ability to
solve much more complex problems that current computers
can’t do.
We still have some work to do to show that the 12CQ
qubit material can be used to make a commercially viable
quantum computer chip. However, if successful, then the
12CQ chip has the potential to provide quantum computing
power to users in everyday environments through their
mobile electronic devices such as laptops, tablets,
smartphones and wearable tech.
By achieving this, Archer’s 12CQ
technology would enhance how
humans interact with the world and
reshape multiple industries.
Others in the industry are working with quantum computers
and working towards quantum semiconductors. Rather than
competing directly with quantum computers that are under
production from some of the world’s most well-known
computing companies, Archer’s planned 12CQ chip would
be the only quantum chip made from carbon nanospheres
operating at room temperature and pressure.
Others use different materials such as silicon, quantum dots,
and diamonds, that operate at temperatures around minus
200 degrees centigrade or are difficult to integrate into
modern electronics (or both).
If a quantum chip can function properly in normal
environments and integrate with foundry manufactured
electronics, then it could have the potential for widespread
use in everyday modern devices – that is the goal of Archer.
The COVID-19 pandemic showed the clear need to contain
the spread of disease more effectively. This can be done
through more timely and better detection and analysis of
samples with improved medical diagnostics technologies.
Archer’s biochip development integrates graphene with
miniaturised lab-on-a-chip platforms, which aims to detect
and analyse disease samples to improve patient outcomes
through better diagnosis.
While Archer’s quantum and medical diagnostics solutions
are still in development phases, both made significant
steps towards potential commercialisation over the past
12 months. Archer optimised the 12CQ qubit material’s
coherence times and functionality at room temperature at
nano sizes. In parallel, advanced designs of the biochip’s
graphene field effect transistor (gFET) were developed and
sent to commercial foundries for validation ahead of test
runs for manufacture scalability before the end of the 2023
calendar year.
We are developing two products: a qubit processor
chip (12CQ) for use in mobile devices; and a biochip that
essentially creates a ‘lab-on-a-chip’ for advanced medical
diagnostics. The technological advancements Archer
made over the past year for both chips further de-risks the
technology and forms part of Archer’s IP.
Archer’s business model is to focus on developing IP
for the designs of the 12CQ chip and biochip, and to use
foundry partners in Europe, Asia, and the US, to run testing,
scalability, and manufacture of our chips. Archer also has
R&D partnerships with institutions such as the University
of Sydney and University of New South Wales in Australia,
and EPFL in Switzerland, to help test and develop our chip
designs.
We are plugged into a wider ecosystem of the
semiconductor industry through not just our foundry and
R&D partnerships, but our World Economic Forum Centre
for the Fourth Industrial Revolution (C4IR) partnership,
where Archer works with other organisations looking to
utilise its technology, public and private sector collaborators,
strategic partnerships for product development, and paths
to capital streams.
Archer is operating at the cutting-edge of the
semiconductor industry, which is an industry that continues
to play an ever-increasing role in our everyday lives. Huge
amounts of capital are being invested across the globe,
which is further aided by the current geopolitical landscape.
The IP portfolio that Archer has built, and continued
progress towards potential commercialisation, is creating
value in Archer. We continue to de-risk the technology and
we enter FY24 with a very strong cash balance to fund
continued technological and commercial developments.
As we move into the next financial year, our focus remains
on opportunities to commercialise our technologies and
expand our partnerships with commercial foundries and
manufacturers. We are excited about the prospect of
scaling up our 12CQ and biochip technologies, making them
more accessible for widespread integration into a broad
array of applications.
Additionally, our research and development efforts will
continue to explore approaches to further enhance
the capabilities of our quantum computing technology.
We firmly believe that our expertise and dedication will
contribute to the advancement and growth of quantum
computing worldwide. We are determined to play a pivotal
role in shaping the future of quantum computing. Our
commitment to excellence and innovation will continue as
we aim to push the boundaries of quantum technologies.
I want to thank the exceptional Archer team for getting
the company where it is today. Our accelerating pathway
to the potential commercialisation of technologies that will
really make a difference in the world is due to their tireless
commitment and expertise. I also want to thank our
shareholders for your commitment to our mission of
building devices that will shape future economies.
Yours sincerely,
Greg English
Executive Chairman
Adelaide
24 August 2023
5 | Archer Materials Limited 2023 Annual Report
Operating and
Financial Review
6
Strategy
Archer is a technology company that operates
within the semiconductor industry.
In 2022/2023 the Company:
In 2023/24, Archer’s growth involves:
Commenced working with world-leading and tier-one
semiconductor manufacturers towards industry
fabrication of Archer’s technology.
Progressing its world-first technology development,
including its 12CQ quantum computing chip and
graphene-based lab-on-a-chip biochip.
Progressed international patent applications and
Establishing and strengthening strategic commercial
partnerships, including securing future semiconductor
manufacturing capabilities advancing the Company’s
technology.
Utilising world-class technology development
infrastructure and facilities, R&D, people, and IP,
to support pre-market development.
Protecting intellectual property (e.g., patents and
international patent applications) with global
competitive advantages underpinning the Company’s
technology.
Hiring new staff to expedite developing and potentially
commercialising the Company’s technology.
Factors and Risks affecting future performance are included
on page 11.
patent grants in relation to the 12CQ chip and biochip
technologies.
Partnered with the World Economic Forum’s Centre
for the Fourth Industrial Revolution as Australia’s
first industry representative alongside other advanced
technology centres.
Detected quantum information in the 12CQ qubit
material on-chip and at room temperature for the first
time using CMOS technology.
Advanced the room temperature capabilities and
functionality of the 12CQ qubit material while achieving
unprecedented quantum coherence times.
Validated the key tech-enabling quantum phenomena
observed in the 12CQ qubit material using some of the
most powerful supercomputers in the world.
Developed an early-stage prototype of an integrated
biochip system platform for biosensing with automated
liquid sample handling and readout.
Gained commercial access to world class
semiconductor fabrication infrastructure and facilities,
and technical experts in Australia and internationally
to develop Archer’s technology.
7 | Archer Materials Limited 2023 Annual Report
Operating and Financial Review
OPERATING AND FINANCIAL REVIEW
Summary
of Financial
Performance
Changes in
Equity
The net loss of the Group for the year ended 30 June
2023 was $9,049,457 (2022: $14,115,728) and includes:
Share based payments expense of $5,554,843
representing the fair value of unlisted share options
granted during the year ended 30 June 2023 (2022:
$9,945,024) net of forfeitures.
Shares
The number of Archer ordinary shares (“Shares”) on issue
increased from 248,467,207 (1 July 2022) to 254,847,013
(30 June 2023) during the year as a result of the exercise of
unlisted share options (6,379,806 shares issued).
Direct expenditure on quantum and biochip technology
Unlisted Options
The number of unlisted share options on issue decreased
from 34,850,000 (1 July 2022) to 24,950,000 (30 June
2023) during the year as a result of the following events:
500,000 share options (exercise price of $0.1511 and
expiry date of 31 March 2023) were exercised into an
equivalent number of Shares.
Cashless exercise of 8,800,000 share options
(exercise price of $0.1511 and expiry date of 31 March
2023) into 5,879,806 Shares.
1,500,000 share options exercisable at $1.79 each and
expiring on 31 May 2025 were issued to employees.
2,100,000 share options with an exercise price of $1.79
and expiring on 31 May 2025, lapsed or were forfeited in
accordance with the terms of which they were issued.
Performance Rights
There were no performance rights issued during the year or
on issue as at the date of this report.
Dividends
There were no dividends paid, recommended or declared
during the current or previous reporting period, or as at the
date of this report.
research activities (including allocation of direct
personnel costs) of $2,965,560 (2022: $2,259,068).
Unreaslised loss associated with the fair value
adjustment Archer’s share and option investments in:
• Volatus Capital Corp (shares) as at 30 June 2023 of
$128,088 (2022: $695,939); and
• ChemX Materials Limited (shares and options) as at
30 June 2023 of $720,303 (2022: $752,123)
The above expense items are offset by:
An income amount of $1,450,000, being the estimated
research and development tax incentive receivable
based on associated expenditure for the year ended
30 June 2023; and
Interest income of $677,248 (2022: $86,248).
During the year ended 30 June 2023 the Group’s net
cash position (defined as cash and short term deposits)
decreased by $3,146,225 from $26,463,687 (1 July 2022)
to $23,317,462 (30 June 2023) and the Group has no
corporate debt.
This net decrease in cash and short term deposits was
predominantly influenced by the following cash outflows:
direct expenditure on quantum and biochip technology
research activities ($2,965,560); and
intellectual property assets and plant and equipment
($185,100); and
corporate, administration and wages (net of allocations
to quantum and biochip technology research activities)
expenditure ($1,334,837); and
These cash outflows were offset by inflows associated with:
research and development tax incentive in respect
of the claim for the year ended 30 June 2022
($1,021,471); and
interest receipts ($227,903); and
exercise of unlisted options ($75,550); and
receipt of Commonwealth innovation grant ($25,000).
8
Factors and risks affecting
future performance
The following describes some of the external factors
and business risks that could have a material impact
on the Company’s ability to deliver its strategy:
Access to Funding
The Company does not receive any income from its
operating business, and the Company is reliant on capital
raisings, Commonwealth Government research and
development tax incentives and the sale of non-core
assets to fund its future operations.
Therefore, the Company’s ability to continue to develop
its technology is contingent upon the Company’s ability to
source timely access to additional funding as it is required.
not have adequate patent or copyright protection for certain
innovations, that the scope of available protections is
insufficient, or that an issued patent may be deemed invalid
or unenforceable in certain jurisdictions.
As at the date of this document, the Company is not
aware of third-party claims against the Company’s owned
or licensed intellectual property or any patent or patent
application lapsing, being refused, or expiring
Key Agreements
Access to Facilities
Development and potential commercialisation of the 12CQ
quantum computing qubit processor chip intellectual
property and associated patents and patent applications
are dependent on the Licence Agreement with the
University of Sydney remaining in-place.
Termination of the Licence Agreement would mean that
Archer would be unable to access the intellectual property
required to commercialise the associated quantum
technology.
As at the date of this document, the Company is not aware
of any grounds that the University of Sydney may have to
terminate the Licence Agreement.
Intellectual Property
Commercially exploiting and legally protecting the intellectual
property underlying the Company’s technology, including
its graphene-based lab-on-a-chip biochip technology
development, is dependent on the Company progressing
its associated patent applications.
The protection of intellectual property, including patents
and patent applications, has the potential for third-party
claims against the Company’s owned or licensed intellectual
property. There is a risk that all reasonable efforts by the
Company to protect proprietary rights may not be sufficient
or effective, including risks that intellectual property may
The development of the Company’s technologies requires
access to institutional scale infrastructure and facilities
which if shutdown would restrict Company access during
the periods of closure. The Company currently has access
to facilities and collaborators in numerous locations in
Australia, Europe, Asia, and North America to help limit the
impact of any closures.
Key Personnel
The Company’s technology is unique, with very few people
available globally with the required knowledge, skills,
relationships, and experience to develop the technologies
towards future potential commercialisation. The Company’s
projects may be delayed if key personnel are not available
to work on the projects.
Potential commercial viability of products
The Company’s ability to commercialise the intellectual
property and sell products to customers may be affected
by many factors, including the commercial viability of, and
potential delays in, the delivery of products and technology
and the ability to find customers for the Company’s
products. There is no certainty that the Company will be
able to make and sell commercially viable products.
9 | Archer Materials Limited 2023 Annual Report
OPERATING AND FINANCIAL REVIEW
Advanced
Semiconductors
Archer is developing and working towards commercialising advanced
semiconductor devices, including chips relevant to quantum computing and
medical diagnostics. Archer is progressing the development of its 12CQ qubit
processor chip and graphene-based ‘lab-on-a-chip’ biochip technology.
10
Quantum
Technology
12CQ Chip
Archer’s 12CQ chip is a world-first qubit processor
technology the Company is developing.
To scale the fabrication of Archer’s 12CQ chip devices
and components, the Company must partner with
industrial-scale manufacturers in the global semiconductor
supply chain.
During the Year, Archer commenced working with
GlobalFoundries towards industry fabrication of its 12CQ chip
technology. Archer will access the technology facilities and
manufacturing processes of GlobalFoundries to explore
pathways for potential high-volume manufacturing of 12CQ
chip devices and components.
Taiwan Semiconductor Manufacturing Company (“TSMC”)
also accepted Archer as their customer after due diligence
and screening. This permits Archer to access TSMC
semiconductor fabrication process technologies, which
include the most advanced technologies and also more
mature process technologies (e.g. 180 nm and 130 nm
processes).
This will allow Archer to perform cost-effective multi-
project wafer runs, and potential tape out and industrial
production of future devices. Contractual relationships with
TSMC will be on a case by case basis. TSMC is the largest
semiconductor foundry in the world.
Archer become the first Australian company to partner
with the World Economic Forum’s Centre for the Fourth
Industrial Revolution (“C4IR”). Archer joined as an Australian
industry representative at C4IR alongside other advanced
technology centres.
The C4IR partnership complements Archer’s work at a
macro level through its other strategic cooperation with
GlobalFoundries, TSMC, the Australian Institute for Machine
Learning, and EPFL, to secure future semiconductor
product manufacturing capability and to support technology
development.
During the Year, the Company made significant steps in the
development of its 12CQ chip technology, and expanded
on its patent protection to now extend across the US, Asia,
Europe, and Australia.
Technology development included the nanofabrication of
devices that electrically integrate the 12CQ qubit material.
Integrating qubit materials with complex control and
readout electronics compatible with existing industrial-scale
foundries is a significant challenge in developing quantum
processors.
The devices integrating qubit material were fabricated
on a silicon wafer using foundry-compatible lithography
processes. Archer used the devices to demonstrate that a
controlled electric current can be passed through the qubit
material at room-temperature.
The on-chip electronic transport characteristics of the qubit
material were in agreement with previous state-of-the-art
electronic transport measurements performed on isolated
qubit material that qualitatively and quantitatively validated
the advantageous conductance properties of the qubit
material in the context of quantum technology applications.
Archer also performed state-of-the-art 3D Electrostatic
Finite Element Modelling with in-house software development
relevant to the Company’s qubit material. The modelling
simulated quantum electronic device (“QED”) architectures
related to qubit control and readout to obtain a precise
estimate for the lower-bound on QED critical feature size.
The complex simulations resulted in a minimum requirement
for QED feature sizes that would be specifically compatible
with existing standard industrial-foundry processes,
including Extreme Ultra Violet Photolithography.
11 | Archer Materials Limited 2022 Annual Report
On-chip electronic transport in Archer’s qubit
components and state-of-the-art instrumentation
used in the electronic transport measurements,
housed in an Australian semiconductor foundry.
OPERATING AND FINANCIAL REVIEW
Quantum
Technology
12CQ Chip
During the Year, Archer for the first time detected quantum
information in its qubit material at room temperature using
CMOS technology.
CMOS is the predominant technology used in designing
chips in the semiconductor industry and it is broadly used
today to form integrated circuits in numerous and varied
applications. Processors, memory, and sensors are among
many electronic devices that make use of this technology.
The CMOS single-chip detectors were developed by
Archer collaborators at École Polytechnique Fédérale de
Lausanne, Switzerland (“EPFL”), are potentially industrially
scalable, and were manufactured by TSMC. The use
of CMOS technology in the semiconductor industry is
expected to continue in the long-term therefore, it was
important to demonstrate the functional incorporation of
the 12CQ chip qubit material with CMOS devices.
The work is a major technological feat, as Archer used a
single-chip integrated electron spin resonance detector
based on CMOS technology to detect the quantum spin
states in the as-prepared 12CQ chip qubit material in a
controlled atmosphere at room temperature. The quantum
states were found to be sufficiently well preserved when
operating in the on-chip environment. The outcome of the
work paves the way for implementing complex qubit control
required in quantum circuits.
Archer continues to collaborate with researchers at EPFL.
The Company and EPFL have been developing second-
generation, unique integrated chip designs for the potential
complex spin manipulation of Archer’s qubit material.
The new chip designs significantly advance on CMOS
chip designs and functionality. The new chips are being
manufactured in a semiconductor foundry in Europe, with
ongoing testing, optimisation, and potential operation
anticipated throughout 2023/24.
12
CMOS single-chip
detectors
The integrated single-chip
electron spin resonance
detector based on CMOS
technology.
The CMOS single-chip detector is in a small region of approximately 0.5 mm x 0.5 mm on the printed circuit board
(main image). The inset (right) shows a microscope image magnifying the spin-sensitive region in the CMOS device
where the quantum spin states in Archer’s 12CQ qubit material are detected at room temperature by the miniaturised
on-chip componentry.
Swiss
supercomputing
cluster
Representative of the
Swiss supercomputing
cluster used by Archer
and EPFL. Reproduced
from the Swiss National
Supercomputing Centre
website.
The Piz Daint recently ranked 28 out of the top 500 of the most powerful
supercomputers in the world: www.top500.org/system/177824
13 | Archer Materials Limited 2023 Annual Report
OPERATING AND FINANCIAL REVIEW
Quantum
Technology
12CQ Chip
During the Year, Archer in a joint effort with collaborators
at EPFL, the Swiss National Supercomputing Centre
(“CSCS”) and the facilities of the Scientific IT and
Application Support Center (“SCITAS”) of EPFL, used
powerful supercomputers to provide the most accurate
simulations of Archer’s 12CQ chip qubit material and
validate its uniqueness.
During the Year, Archer developed a multi-scale
wafer fabrication process for its QEDs. Wafer-based
functional devices are a fundamental requirement to the
development of the 12CQ chip technology, as Archer’s
innovation aims to realise mobile-compatible quantum
processing that can easily be integrated into modern
electronic devices.
The complex atom-structure of the 12CQ chip qubit material
requires the enormous power of supercomputers for
predictive modelling and realistic simulations of the qubit
material properties. The results of such computation often
take the form of material behaviour and can be used to
validate (or refute) the material properties of interest for
technological applications.
For the computations performed by Archer and EPFL,
one of Europe’s most powerful supercomputers1, the Piz
Daint2, was utilised. The quantum chemistry simulation work
employed a Density-Functional Tight-Binding (“DFTB”)
methodology, i.e., a combined density functional theory and
tight binding model of the 12CQ chip qubit material at the
atom-scale.
The Company devised and applied methods that combine
both UV optical lithography and electron-beam (E-beam)
lithography to facilitate the fabrication of potentially
hundreds of advanced QEDs on a single silicon wafer.
This has greatly increased the yield of QEDs that are being
developed and optimised to address Archer’s technological
goals of quantum control and readout in the 12CQ chip-
based qubit system.
Archer continued to address the sector scarcity of available
and accessible world-class facilities to perform the
sophisticated quantum measurements required for 12CQ
chip development by securing access to local state-of-the-
art cryogenic quantum device measurement laboratories.
The results of the work validate Archer’s unique qubit
material properties, including confirming an intrinsic metallic-
like character of the qubit material. This directly translates
to supporting the material structure-property paradigm that
gives way to the quantum properties described in Archer’s
internationally patented qubit technology architecture.
Archer also advanced its methods for patterning
nanometre-scale qubit material into QEDs. The QEDs
integrating qubit material have allowed for ongoing testing
and measurements that aim to validate quantum electronic
properties that could potentially be exploited towards
qubit readout approaches.
The outcomes of the supercomputing simulations will be
used to fast-track and support the development of Archer’s
more advanced QEDs required for 12CQ chip operation.
The detailed scientific results of the work have undergone
the peer-review process and during the Year were
accepted for publication.
The improved device designs include an increased number
of electronic leads and gate electrodes to control the
electronic states within the devices.
The Archer team has been establishing its own, customised
laboratory facility, with the core of the facility now operational
and located in Sydney, Australia. The laboratory includes
specialty instruments assembled by Archer for the
electronic characterisation of its QEDs.
1 The Piz Daint recently ranked 28 out of the top 500 of the most powerful supercomputers in the world: www.top500.org/system/177824
2 www.cscs.ch/computers/piz-daint | www.cscs.ch/computers/overview | www.epfl.ch/about
14
A multitude of Archer
quantum electronic devices
defined by UV optical
lithography on a commercial
2” silicon-on-insulator wafer
substrate.
15 | Archer Materials Limited 2023 Annual Report
OPERATING AND FINANCIAL REVIEW
Quantum
Technology
12CQ Chip
An Archer 4 x 4 mm
single-chip quantum
electronic device after
installing and bonding
into a commercial
chip carrier.
During the Year, the Archer team reached significant
milestones in the room temperature functionality of its
cutting-edge qubit material.
This included unprecedented electron spin coherence
times exceeding 230 ns at room temperature3 while
maintaining the intrinsic metallic-like character of the qubit
material. This was achieved by making the qubit material
using a different precursor and applying post-synthesis
treatments.
Archer believes that no other similar nanomaterial has been
shown to achieve such long-lived electron spin coherence
at room temperature4. The long room temperature quantum
coherence times had previously5 only been achieved
for the qubit material at extremely low temperatures of
approximately -173°C. In the context of qubit processor
development, the increase in quantum coherence time at
room temperature is significant.
Archer increased its qubit material room temperature
capabilities by over 30%, meaning it can now routinely
prepare qubit material maintaining quantum superposition
states for over 30% longer than previously achieved at room
temperature. Extending quantum coherence times links
to executing more sophisticated quantum algorithms and
reliable quantum computations.
Despite the long quantum coherence times reached,
there was a need for a vacuum or inert atmosphere when
operating the qubit material to preserve viable quantum
coherence times. To advance the Company’s 12CQ chip
development, there is a requirement for simple and practical
solutions to address quantum decoherence caused by air
on the qubit material.
3 At 21.85°C. The quantum coherence measurement was performed with the qubit material sample under vacuum.
4 Origin of metallic-like behavior in disordered carbon nano-onions. Carbon, Vol 208, May 2023, Pages 303-310
www.sciencedirect.com/science/article/pii/S0008622323002166
5 Room temperature manipulation of long lifetime spins in metallic-like carbon nanospheres. Nature Communications, Vol 7, July 2016,
Article 12232 www.nature.com/articles/ncomms12232
16
During the Year, the Archer team for the first time also
preserved the qubit materials’ quantum coherence
times and properties at room temperature in air while
maintaining the intrinsic metallic-like character of the
qubit material.
The encapsulation processes are performed in a
semiconductor foundry. A typical example of encapsulation
included approximately 20-25 atomistic layers on the
nanometer sized qubit material that was processed in
conformations relevant to planar device architectures.
Importantly, the quantum coherence times meet the
lower-bound requirements to perform gate operations for
quantum information processing. In the context of qubit
processor development, applying foundry-compatible
processes to readily handle and process a qubit material
while preserving quantum coherence is significant.
The Archer team achieved this pivotal development
by applying methods of atomic layer deposition and
also plasma enhanced chemical vapour deposition, to
encapsulate the qubit material with atom-layer control
over nanometre and micrometre thin films of metal oxides
and other semiconductors.
The technological milestones reached during the Year
link to the future operation of Archer’s 12CQ chip, and in
particular, potentially broaden the application space for
Archer’s qubit material that would be suited to more normal
operating environments.
Archer staff in a research and prototyping semiconductor
foundry in Sydney, Australia, operating some of the
instruments used to encapsulate the qubit material.
17 | Archer Materials Limited 2023 Annual Report
OPERATING AND FINANCIAL REVIEW
Quantum
Technology
12CQ Chip
Exhibit 1. Description of Archer’s technology patents
and patent applications
Filing date Technology summary
3 Dec 2015
A QUANTUM ELECTRONIC DEVICE.
Stage & Coverage
Patent/Application Number
Granted
Japan
South Korea
China
United States of America
Europe
Australia
Hong Kong
6809670
10-2288974
4606612
11126925
3383792
2016363118
1256636
9 Jun 2023
ELECTRON SPIN CONTAINING MATERIALS AND METHODS FOR PRODUCING SAID MATERIALS.
Stage & Coverage
Provisional Patent
Australia
Patent/Application Number
2023901839
15 Feb 2019
GRAPHENE COMPLEXES AND COMPOSITIONS THEREOF.
Stage & Coverage
Patent/Application Number
Pending
Australia
PCT/AU2020/050128
United States of America
17429442
1 Dec 2021
DETECTION AND QUANTIFICATION OF NUCLEIC ACIDS.
Stage & Coverage
Patent/Application Number
Pending
Australia
PCT/AU2022/051434
18
Filing date Technology summary
31 Mar 2022
FABRICATION AND PROCESSING OF GRAPHENE ELECTRONIC DEVICES ON SILICON WITH A SIO2
PASSIVATION LAYER.
Stage & Coverage
Patent/Application Number
Pending
Australia
PCT/AU2023/050251
17 Oct 2022
NANOFABRICATION OF ELECTRONIC DEVICE COMPONENTS.
Stage & Coverage
Provisional patent
Australia
Patent/Application Number
2022903045
11 Nov 2022
A DEVICE, SYSTEM, AND METHOD FOR SENSING AN ELECTRONIC PROPERTY OF FLUID SAMPLE.
Stage & Coverage
Provisional Patent
Australia
Patent/Application Number
2022903393
23 Dec 2022
METHODS FOR FABRICATION OF GRAPHENE FIELD-EFFECT TRANSISTORS WITH A LIQUID
TOPGATE AND ASSOCIATED COMPONENTRY.
Stage & Coverage
Provisional Patent
Australia
Patent/Application Number
2022904006
Patent Family
12CQ chip
Biochip
19 | Archer Materials Limited 2023 Annual Report
OPERATING AND FINANCIAL REVIEW
Bioelectronics
Biochip
Archer’s biochip innovation aims to integrate graphene
field effect transistors (“gFETs”) into advanced fluidic
systems to create miniaturised lab-on-a-chip device
platforms for medical diagnostics.
Integration of gFETs with on-chip fluidics could potentially
enable multiplexing, i.e., the ability to parallelise the
detection of multiple biologically relevant target fluids,
on a chip. Archer owns 100% of the biochip technology
intellectual property.
During the Year, the Company advanced its in-house
nanofabrication processes with the aim of developing
sub-10 nm size biochip features representing the current
‘best-in-class’ in the semiconductor industry.
Archer reached this goal, and fabricated sub-10 nm features
reproducibly and reliably by developing several advanced
lithographic processes on a silicon wafer in a clean-room
environment.
Archer’s sub-10 nm feature fabrication is in line with the
current semiconductor industry best-in-class for chip
feature sizes and provides the Company with a significant
competitive advantage. The work is a significant technical
achievement and represents a technology development
breakthrough for the Company.
Schematic of the
liquid-gated gFET
The transistor is specially fabricated to prevent liquids from shorting the integrated circuit. Several advanced lithographic
processes are required to fabricate the device ‘layers’, while solving for complex fluid dynamics. The inset (right) shows
an actual microscope image magnifying the gFET sensing region with ‘open wells’ where analytes in fluids would be
detected by the miniaturised integrated graphene components.
20
The advanced lithographic processes required precision
engineering and state-of-the-art fabrication instruments
to reach lateral control over feature sizes below 10
nm, corresponding in the work to covering a width of
approximately 50 silicon atoms on the wafer surface.
The extreme miniaturisation would give Archer greater
flexibility, capability, and higher integration density in its
lithographic processes for the design and fabrication of its
technologies. For example, sub-10 nm fabrication could
allow for biochip device development to span a magnitude
of feature sizes for a broad range of potential sensing
applications.
Archer has made significant technological progress
during the Year that fundamentally link to development of
a prototype biochip technology system platform, including
designing and fabricating an operational liquid-gated
gFET, i.e., a wettable transistor.
The Company also developed, built, and configured a
method, device, and prototype operational system platform
for lab-on-a-chip sensing of the electronic properties of
biologically relevant fluid samples. This is a major milestone
towards the potential commercialisation of Archer’s biochip
technology.
The end-to-end prototype system platform enables high
throughput testing that incorporates gFET chips integrated
with multiple fluidic channels, an automated sample
handling robot, readout electronics, and software and user
interface on a laptop.
The software and user interface was custom built by Archer
and is designed to be used in development, e.g. providing
an easy way to run tests on Archer’s biochips with different
designs. The software is built on several packages in
Python. The automated testing uses a programmable robot
which directly communicates with the biochip hardware.
The system platform setup is a powerful tool in advancing
Archer’s biochip development, enabling the improvement of
the gFET sensing device active sites, and automating liquid
delivery to the chip using feedback from the sensor itself to
allow complete hands-off and remotely controllable testing
of prototype devices.
Archer will be able to quickly assess the impact of design
changes within the biochip and the effectiveness of
detection mechanisms. This is anticipated to lead to
accelerated development of the Company’s proposed
sensing pathways to detect biologically relevant information.
The current hardware and software in the system platform
is designed to run using a chip with single isolated gFETs
as sensors, as gFETs offer an ultrasensitive approach to
analyte detection over conventional electronic sensors
used in current lab-on-a-chip devices. The early system
platform paves the way for the possibility of single-device
multiplexing in future designs.
Archer’s
early-stage
prototype
biochip
system
platform
Software and user interface
Electronic module
gFETs with multiple fluidic channels
Automated robotic sample handling
21 | Archer Materials Limited 2021 Annual
21 | Archer Materials Limited 2023 Annual Report
Report
OPERATING AND FINANCIAL REVIEW
Bioelectronics
Biochip
During the Year, the Company progressed the
development of its biochip technology by electronically
controlling the sensitivity of incorporated gFET devices.
This involved the Archer team undertaking development
capable of overcoming conventional limitations of gFET
sensing.
The Company addressed the fundamental challenge of
disrupting electronic charge screening that attenuates
biosensing signals in gFETs. The development paves the
way for the specific binding of biomolecules to contribute
to usable gFET sensor responses, and is a significant
technological milestone towards Archer’s biochip function
and operation.
The electronic charge screening layer is less than 1 nm
in biologically relevant liquids, and generally, electronic
sensing beyond this distance is impossible. For sensing to
work in Archer’s biochip, the analyte charge must not be
screened, as most biological analytes are around 2-30 nm
in size, i.e., most of their charge is out of gFET sensitivity
range in liquids.
During Year, the Company advanced its technology
development to complete a proof of concept biosensing
graphene transistor for use in its biochip, and submitted
the technology design to a commercial foundry to verify
scalability.
The gFET design transfer to a foundry partner follows the
completion of Archer’s optical lithography-compatible chip
layout, which is designed to scale more easily to produce
complete wafers in collaboration with commercial foundries.
The Archer-designed gFET sensing chips will be produced
by a commercial foundry, with the aim of Archer validating
its design to ensure appropriate scalability for the
manufacturing process. The chips will be evaluated to test
which foundry and process are best suited to Archer’s
technology.
Archer’s design and process can then be scaled to
manufacture complete wafers containing the graphene-
based sensors for biochip integration in collaboration with a
range of different commercial foundries.
Overcoming this technological challenge is a significant
step in progressing towards a functional and operational
biosensing device as part of Archer’s biochip technology, as
it is critical for the selective detection of target molecules.
Archer, in parallel, started discussions with potential global
foundry partners for initial small production runs of its
graphene chip designs to evaluate the reliability of the
product.
Archer employed a sensor design strategy which involves
the use of a range of dynamic electric fields to rid the gFET
sensor of signal interference caused by the screening
layer and introduce practical device operation sensitivities.
Archer developed the software and incorporated the
hardware with the biochip system platform that allows the
Company to achieve electronic modulation and tuning of
gFET sensitivity.
Measurements were performed by Archer staff in the low
frequency range (1–10 Hz), which are relevant to penetrating
biological fluids. Results showed a 3x increase in the
sensitivity of the gFET to target analytes when compared
to the static case with no oscillating voltage. In the context
of overcoming charge screening in gFET devices, the 3x
increase in sensitivity is significant.
22
23 | Archer Materials Limited 2023 Annual Report
Directors’ Report
24
Directors’
Report
The Operating and Financial Review (which includes the
Chairman’s Letter) of this Annual Report is incorporated
by reference into, and can be found on pages 4 to 39
of this Annual Report.
Your Directors present this report on Archer Materials
Limited and its consolidated entities (‘Company’, ‘Group’
or ‘Archer’), for the year ended 30 June 2023.
Directors
The following Directors were in office at any time during or
since the end of the financial year:
Greg English
(Executive Chairman)
Kenneth Williams
(Independent Non-Executive Director)
Bernadette Harkin
(Independent Non-Executive Director
Chief Executive Officer
Dr Mohammad Choucair
Held the position of Chief Executive Officer during
the financial year and as at the date of this report.
Company Secretary
Damien Connor
Held the position of Company Secretary during the
financial year and as at the date of this report.
25 | Archer Materials Limited 2023 Annual Report
DIRECTORS’ REPORT
Information
on continuing
Directors
Greg English
(Executive Chairman)
LLB, BE (Mining)
Kenneth Williams
(Non-Executive Director)
B.Econ (HONS), MAppFin, FAICD
Greg English is the co-founder and Executive Chairman of
Archer. He has been Chairman of the board since 2008 and
has overseen Archer’s transition from a South Australian
focused minerals exploration company to a technology
company that operates within the semiconductor industry.
He has more than 25 years of engineering and legal
experience and has held senior roles for Australian and
multinational companies. Greg has received recognition
for his work as a lawyer.
Greg is an experienced company director and has also
served on the boards of other ASX listed companies.
He holds a bachelor’s degree in engineering and a law
degree (LLB).
Directorships of other ASX Listed entities in the last 3 years:
Core Lithium Limited (ASX: CXO) (current), Neurizer Ltd
(ASX: NRZ) [formerly Leigh Creek Energy Limited (ASX:
LCK)] (resigned 22 June 2021).
Interest in Shares and Options:
11,509,852 ordinary shares. 5,000,000 unlisted options,
exercisable at $1.79 and expiring on 31 May 2025.
Special Responsibilities:
Executive Chairman. Member, Audit & Risk Management
Committee. Member, Remuneration & Nomination
Committee.
26
Ken was appointed as a Director of the Company on 28
September 2020. Ken has over 30 years’ experience in
corporate finance and has held senior executive, director,
and Chair positions with leading ASX companies.
His extensive experience in corporate finance includes
diverse experience in mergers, acquisitions, divestments
and corporate reconstructions. Ken was the Independent
Chairman of Statewide Superannuation Trust (Statewide
Super), a South Australian based industry super fund with
over $12 billion in funds under management.
Ken was a member of Statewide Super’s Investment
Committee, and Remuneration & Nomination Committee.
In April 2022 Statewide Super merged with Hostplus. Ken
is also a Director of Lifetime Support Authority of South
Australia.
Ken holds the role as Deputy Chancellor of the University of
Adelaide and was also recently appointed to the Board of
SA Water, effective 3 August 2023.
Prior roles include Chair of AWE Limited, Chair of Havilah
Resources Limited, and Senior Finance Executive roles with
Newmont Corporation, Normandy Mining, and Qantas.
Directorships of other ASX Listed entities in the last 3 years:
Barton Gold Holdings Limited (ASX: BGD) (current), Lanyon
Investment Company Limited (ASX: LAN formerly 8IP
Emerging Companies Limited (ASX: 8EC)] (resigned 10 May
2022).
Interest in Shares and Options:
Nil Shares. 1,500,000 unlisted options, exercisable at
$0.7277 and expiring on 31 March 2024. 1,500,000 unlisted
options, exercisable at $1.79 and expiring on 31 May 2025.
Special Responsibilities:
Chair, Audit & Risk Management Committee. Member,
Remuneration & Nomination Committee.
Bernadette Harkin
(Non-Executive Director)
MBA, GAICD
Meetings of Directors
The number of meetings of the Company’s Board
of Directors and each Board committee held during
the year ended 30 June 2023, and the numbers of
meetings attended by each Director were as follows:
Bernadette was appointed as a Director of the Company
on 6 October 2021. Bernadette has over 30 years of
experience working as a business technologist across
strategy, sales, marketing, operations, and delivery for
multinational Information Technology companies including
IBM, Avanade, and CGI.
This includes 3 years at IBM where Bernadette served as a
board member for IBM Philippines. Bernadette’s experience
covers technology areas of Cloud, Analytics, Mobility, AI
and Security. Bernadette’s international experience spans
leadership within large corporate governance structures
and the start-up of new businesses.
Bernadette has led and held senior advisory roles involving
business transformations for businesses in the US, Europe,
and Asia, including those within the STEM sector, which
have been underpinned by corporate growth strategies
leveraging innovative technologies.
Directorships of other ASX Listed entities in the last 3 years:
Nil.
Interest in Shares and Options:
Nil Shares. 1,500,000 unlisted options, exercisable at $1.79
and expiring on 31 May 2025.
Special Responsibilities:
Chair, Remuneration & Nomination Committee. Member,
Audit & Risk Management Committee.
Director
Board of
Directors
Audit & Risk
Management
Committee
Remuneration
& Nomination
Committee
A
B
13
13
A
2
B
2
A
2
B
2
13
13
2
2
2
2
13
13
2
2
2
2
Greg
English
Kenneth
Williams
Bernadette
Harkin
Where:
Column A is the number of meetings the Director was
entitled to attend.
Column B is the number of meetings the Director attended.
During the reporting period the Company established a
Remuneration & Nomination Committee.
As at the date of this report, the Group has not formed
separate Governance Committee, as these matters are
handled by the Board as a whole. The Board considers this
appropriate given the size and nature of the Company at
this time.
27 | Archer Materials Limited 2023 Annual Report
DIRECTORS’ REPORT
Information
on continuing
Management
Dr Mohammad
Choucair
(Chief Executive Officer)
FRSN FRACI GAICD BSc
Nanotechnology (Hon. 1),
PhD (Chemistry)
Damien Connor
(Chief Financial Officer /
Company Secretary)
CA GAICD AGIA B.Com
Dr Mohammad Choucair was appointed CEO of Archer in
December 2017 and is leading the company to develop
disruptive deep tech that address complex global challenges.
Mohammad served a 2-year mandate at the World Economic
Forum on the Global Council for Advanced Materials and
is internationally recognised for his forward-thinking
breakthroughs in Nanotechnology.
Mohammad is Alumni of the World Economic Forum,
Alumni of the Australian Graduate School of Management,
Graduate Member of the Australian Institute of Company
Directors, and is an Honorary Fellow of the University of
Sydney.
He received the Royal Australian Chemical Institute
Cornforth Medal for the most outstanding Chemistry PhD in
Australia and is a Fellow of The Royal Society of New South
Wales and The Royal Australian Chemical Institute.
Damien Connor was appointed Company Secretary and
Chief Financial Officer on 1 August 2014.
Damien is an experienced Company Secretary and CFO,
with over 20 years finance and accounting experience
including over 15 years in the mining and mineral
exploration industry.
Damien has been providing Company Secretary and CFO
services to a number of ASX listed and unlisted entities
since 2011.
Damien is a member of the Chartered Accountants of
Australia and New Zealand (Chartered Accountant), an
associate member of the Governance Institute of Australia
(Chartered Secretary) and a Graduate of the Australian
Institute of Company Directors.
28
Principal
activities
Archer is a technology company with a focus
on developing innovative deep tech in the
semiconductor industry.
Significant changes to the state of affairs
The Directors are not aware of any significant changes in
the state of affairs of the Group occurring during the year
ended 30 June 2023, other than as disclosed in this report.
Events arising since the end of the
reporting period:
The Directors are not aware of any other matter or
circumstance that has arisen since the end of the year that
has significantly affected, or may significantly affect the
Group’s operations, the results of those operations, or the
Group’s state of affairs in future financial years.
The Company is developing and working towards
commercialising semiconductor devices including
processor chips and sensors relevant to quantum
computing and lab-on-a-chip medical diagnostics.
During the year, the principal activities of
the Group were:
Technology research and development of a quantum
computing qubit processor chip (“12CQ chip”) and
graphene-based lab-on-a-chip biosensing chip
(“biochip”).
Utilising semiconductor development infrastructure
and facilities, R&D, people, and IP, to support
pre-market technology development.
Internationally protecting and prosecuting intellectual
property (e.g. patents and patent applications).
Collaborating and partnering with organisations
in computing, deep tech, technology research and
development, and manufacturing as part of global
networks in the semiconductor industry.
29 | Archer Materials Limited 2023 Annual Report
The Directors of Archer
Materials Limited (the Group)
present the Remuneration Report
for Non-Executive Directors,
Executive Directors and other
Key Management Personnel,
prepared in accordance with the
Corporations Act 2001 and the
Corporations Regulations 2001.
The names and roles of the Company’s
key management personnel during the
year are:
Greg English
Executive Chairman
Kenneth Williams
Independent Non-Executive Director
Bernadette Harkin
Independent Non-Executive Director
Mohammad Choucair
Chief Executive Officer
Damien Connor
Chief Financial Officer & Company Secretary
DIRECTORS’ REPORT
Remuneration
Report (audited)
The Remuneration Report is set out
under the following main headings:
A. Principles used to determine the nature and
amounts of remuneration
B. Details of remuneration
C. Employment Contracts of Directors and
other Key Management Personnel
D. Share based remuneration
E. Bonuses included in remuneration
F. Other information
30
A. Principles used to determine the nature and amounts of remuneration
The Board established a Remuneration and Nomination
Committee effective 16 February 2023, comprising
Bernadette Harkin (Chair), Kenneth Williams and Greg
English.
The Remuneration and Nomination Committee assists the
Board in discharging its responsibilities in relation to people
and remuneration activities, including oversight of risks
related to people performance management, Company
culture, succession planning, capacity and capability, and
inclusion and diversity.
Archer’s remuneration philosophy is to seek, attract and
retain high performing staff and incentivise executives to
lead our Company in an inspiring way and to outperform.
We focus on demonstrating clear links between business
performance and remuneration outcomes while continuing
to build value for all stakeholders.
The Board believes that individual salary negotiation is
more appropriate than formal remuneration policies and
external advice and market comparisons are sought
where necessary.
The Group discloses the fees and remuneration paid to
all Directors as required by the Corporations Act 2001.
The Board recognises that the attraction of high calibre
executives is critical to generating shareholder value.
The directors and executives receive a superannuation
guarantee contribution required by the government of 10.5 %
per annum (11 % from 1 July 2023) and do not receive any
other retirement benefits. Some individuals, however, may
choose to sacrifice part of their salary to increase payments
towards superannuation and/or elected to increase
superannuation contributions a part of their salary package.
All remuneration paid to Directors and executives is valued
at the cost to the Group. The Group has established a
Performance Rights Plan and Share Option Plan (Plan) for
the benefit of Directors, officers, senior executives and
consultants.
The Board’s policy is to remunerate non-executive directors
at the market rates for time, commitment and responsibilities.
The Board determines payments to executives and reviews
their remuneration annually, based on market price, duties
and accountability. Independent external advice is sought
when required.
The maximum aggregate amount of fees that can be paid
to non-executive directors, in aggregate, is $500,000 per
annum which has not changed since Archer listed on the
ASX in August 2007. These amounts are not linked to the
financial performance of the consolidated Group. However,
to align director’s interests with shareholder interests, the
directors are encouraged to hold shares in Archer.
Each member of the executive team has signed a formal
contract at the time of their appointment covering a range of
matters including their duties, rights, responsibilities and any
entitlements on terminations. The standard contract sets out
the specific formal job description.
Remuneration changes for FY24
In June 2023, the Remuneration and Nomination
Committee undertook a review of staff, executive and board
fees and wages. The review was conducted to ensure that
wages are keeping up with recent CPI and interest rate
increases and that wages are not declining in real terms.
Consequently, the Board approved a 10% increase in wages
and fees for all Archer staff, KMP and directors with effect
on and from 1 July 2023. This represents the first increase
in Non-Executive Director fees and Executive Chairman
wages since 1 July 2020.
Use of remuneration consultants
The Company has not engaged the services of a
remuneration consultant during the year.
Voting and comments made at the
Company’s 2022 Annual General Meeting
The Company received 94.5 % ‘for’ votes on its
Remuneration Report for the financial year ending 30 June
2022. The Company received no specific feedback on its
Remuneration Report at the 2022 Annual General Meeting.
Consequences of performance on
shareholder wealth
In considering the Group’s performance and benefits for
shareholder wealth, the Board has regard to the Company’s
share price in respect of the current financial year and the
previous four (4) financial years:
Item
30 June
2023
30 June
2022
30 June
2021
30 June
2020
30 June
2019
Share
price
$0.595
$0.55
$0.95
$0.60
$0.11
31 | Archer Materials Limited 2023 Annual Report
REMUNERATION REPORT (AUDITED)
B. Details of Remuneration
Details of the nature and amount of each element of the remuneration of each Key Management Personnel (KMP) of the
Group are shown in the table below:
DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL
Short-term
Employee Benefits
Post
employment
Benefits
Termination
Benefits
Share
Based
Payments
Cash
Salary &
Fees
$
Cash
Bonus
$
Super-
annuation
$
Termination
Benefits
$
Unlisted
Options 1
$
Performance
based
%
Total
$
Employee
Year
Executive Directors
Mr English 2
2023
315,374
25,343 3
35,903
Executive Chairman
Not independent
Non-Executive Directors
2022
304,110
50,685 3
35,732
Mr Williams
2023
63,348
Independent
2022
63,636
Ms Harkin
2023
63,348
Independent
2022
46,993
Ms McCleary 4
2023
-
Independent
2022
25,551
Other Key Management Personnel
-
-
-
-
-
-
Dr Choucair
2023
298,654
51,000 5
Chief Executive Officer
2022
230,000
46,000 5
Mr Connor
2023
170,550
Company Secretary
& CFO
2022
174,243
-
-
6,652
6,364
6,652
4,699
-
2,555
36,969
27,830
-
-
2023 Total
2022 Total
2023
911,274
76,343
2022
844,533
96,685
86,176
77,180
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,271,087
1,647,707
1.7%
2,067,573
2,458,100
2.3%
381,326
451,326
620,272
690,272
381,326
451,326
620,272
671,964
-
-
-
28,106
1,525,305
1,911,928
2,481,087
2,784,917
381,326
551,876
620,272
794,515
3,940,370
5,014,163
6,409,476
7,427,874
-%
-%
-%
-%
-%
-%
3.0%
1.8%
-%
-%
1 In accordance with Accounting Standards, remuneration includes a portion of the notional value of the options granted during the year. The notional
value of options are determined as at the grant date and is progressively allocated over the vesting period. The amount included as remuneration is not
indicative of the benefit (if any) that the employee may ultimately realise should the option vest and become exercisable. The notional value of the options
as at the grant date has been determined in accordance with the accounting policy detailed at Note 1 and calculation details in Note 17.
2 Mr English agreed to temporarily reduce his salary by 40% for the period from 1 April 2022 to 31 August 2022 while attending to other commitments.
3 Short-term incentive cash bonus, approved by the non-executive directors, related to KPI achievement, pursuant to Mr English’s employment contract.
4 Ms McCleary resigned as a director on 24 November 2021.
5 Short-term incentive cash bonus, approved by the Board, related to KPI achievement, pursuant to Dr Choucair’s employment contract.
32
C. Employment Contracts of Directors and Other Key Management Personnel
Remuneration and other terms of employment for the Directors and other Key Management Personnel are formalised in
either contracts of employment or service agreements. The main provisions of the agreements relating to remuneration
are set out below:
Name
Remuneration
Greg English
(Executive
Chairman)
Base remuneration:
$337,900 per annum plus superannuation. 1, 2
Effective 1 July 2023 3
$371,690 per annum plus superannuation. 2
Unit of
Measure
Term of
agreement
Notice Period
Salaried
employee
Permanent
employee,
no fixed
term.
Between 1
month and 6
months’ notice
depending on the
circumstances.
Short-term incentive:
Discretionary up to 15% of salary each year, is determined
with reference to KPIs as set by the Board annually.
Long-term incentive:
Entitled to receive Options or Performance Rights equal to
the maximum number of Options or Performance Rights
granted to a director of the Company in the same financial
year, subject to shareholder approval and KPIs including the
Company’s share price movement compared with the ASX
Small Ordinaries Resources Index.
Any applicable
termination
payment is
calculated based
on reasons for
termination from 1
month salary plus
leave entitlements
up to 12 months’
salary plus leave
entitlements.
Kenneth
Williams
Non-Executive
Director
Bernadette
Harkin
Non-Executive
Director
Base remuneration:
$70,000 per annum inclusive of superannuation.2
Director
fees
No fixed
term.
None
Effective 1 July 2023 3
$70,000 per annum plus superannuation. 2
Base remuneration:
$70,000 per annum inclusive of superannuation.2
Director
fees
No fixed
term.
None
Effective 1 July 2023 3
$70,000 per annum plus superannuation. 2
Key Management Personnel
Dr Mohammad
Choucair
Chief Executive
Officer
Base Remuneration:
$300,000 per annum plus superannuation. 2
Effective 1 July 2023 3
$330,000 per annum plus superannuation. 2
Director
fees
Permanent
employee,
no fixed
term.
Either party
may terminate
by providing 6
months’ notice.
Short-term incentive:
Discretionary up to 25% of salary each year, is determined
with reference to KPIs as set by the Board annually.
Long-term incentive:
Entitled to receive Options or Performance Rights equal to
the maximum number of Options or Performance Rights
granted to a director of the Company in the same financial
year, subject to shareholder approval and KPIs including the
Company’s share price movement compared with the ASX
Small Ordinaries Resources Index.
Damien Connor 4
Company
Secretary /CFO
Variable
Services as required
Hourly
rate
contract
No fixed
term.
Either party
may terminate
by providing 3
months’ notice.
1 Mr English agreed to temporarily reduce his salary by 40% for the period from 1 April 2022 to 31 August 2022 while attending to other commitments.
2 Superannuation rate appliable to the year ended 30 June 2023 was 10.5% per annum. The superannuation rate will increase to 11% per annum from 1 July 2023.
3 In June 2023, the Remuneration and Nomination Committee undertook a review of staff, executive and board fees and wages. The review was conducted to
ensure that wages are keeping up with recent CPI and interest rate increases and that wages are not declining in real terms. Consequently, the Board approved
a 10% increase in wages and fees for all Archer staff, KMP and directors with effect on and from 1 July 2023.
4 Contract payments are made to Damien Connor Consulting Pty Ltd – an entity associated with Damien Connor.
33 | Archer Materials Limited 2023 Annual Report
REMUNERATION REPORT (AUDITED)
D. Share-based Remuneration
UNLISTED OPTIONS (OPTIONS)
All Options refer to Options over ordinary shares of the Company, which are exercisable on a one-for-one basis under the
terms of the agreements.
The Group has established a Performance Rights and Share Option Plan for the benefit of Directors, officers, senior
executives and consultants. Under the Performance Rights and Share Option Plan, the Company, through the Board, may
offer Options to eligible persons on such terms that the Board considers appropriate, including any performance or other
vesting hurdles that may apply.
Options granted to KMP during the reporting period
No Options were granted as remuneration to KMP during the year ended 30 June 2023.
Details of Options convertible to ordinary shares in the Company that were granted as remuneration to each KMP during
the prior year ended 30 June 2022 are set out below:
2022
Options
Granted to
Number
Granted
Grant
Date
Exercise
Price
Fair Value at
Grant Date 1
Vesting
Criteria
Expiry
Date
$/option
Full value ($) 2
Mr English
5,000,000
24/11/2021
$1.79
$0.7604
$3,802,018
Mr Williams
1,500,000
24/11/2021
$1.79
$0.7604
$1,140,605
Ms Harkin
1,500,000
24/11/2021
$1.79
$0.7604
$1,140,605
Dr Choucair
6,000,000
24/11/2021
$1.79
$0.7604
$4,562,421
Mr Connor
1,500,000
24/11/2021
$1.79
$0.7604
$1,140,605
Vest over 2 years
commencing 31 May
2022. ³
Vest over 2 years
commencing 31 May
2022. ³
Vest over 2 years
commencing 31 May
2022. ³
Vest over 2 years
commencing 31 May
2022. ³
Vest over 2 years
commencing 31 May
2022. ³
31/05/2025
31/05/2025
31/05/2025
31/05/2025
31/05/2025
15,500,000
$11,786,254
1 The fair value of Options at grant date is determined using a Black Scholes option pricing model as disclosed in the notes to the financial statements.
2 The fair value of the Options at the date of grant was $11,786,254 and is being expensed to the Statement of Profit or Loss and Other Comprehensive
Income over the vesting periods applicable to the Options. Accordingly, an amount of $6,409,476 has been expensed to the Statement of Profit or Loss
and Other Comprehensive Income under share based payments expense for the year ended 30 June 2022.
3 Options vest 1/3rd on 31 May 2022, 1/3rd on 31 May 2023, 1/3rd on 31 May 2024, provided that the recipient is an employee of the Company at the relevant
vesting date (service condition only).
The above 15,500,000 Options were issued following shareholder approval at the Company’s Annual General Meeting
held on 24 November 2021.
34
Options to KMP exercised during the reporting period
During the reporting period 9,300,000 Options, with an exercise price of $0.1511 each and expiring on 31 March 2023,
were exercised by KMP.
Options to KMP forfeited, cancelled or lapsed during the reporting period
No Options granted to KMP were forfeited, cancelled or lapsed during the reporting period.
PERFORMANCE RIGHTS (RIGHTS)
The Company’s Performance Rights and Share Option Plan provides for the issue of Rights to Directors, employees
and contractors of the Company and its associated body corporates.
All Rights issued under the Plan refer to Rights over ordinary shares of the Company, which are exercisable on a one-
for-one basis under the terms of the agreements. Vesting of Rights is generally subject to the achievement of particular
performance conditions as determined by the Board.
There were no Rights issued during the reporting period and none are on issue at the reporting date.
SHARES
There were no Shares issued as remuneration during year ended 30 June 2023 (30 June 2022: Nil) other than through
the exercise of Options previously accounted for.
E. Bonuses included in Remuneration
Details of the short-term incentive cash bonuses awarded as remuneration to each key management personnel, the
percentage of the available bonus that was paid in the financial year, and the percentage that was forfeited because the
person did not meet the performance criteria is set out below.
Employee
Included in remuneration ($)
Percentage vested
during the year
Percentage forfeited
during the year
Greg English 1
Executive Chairman
$28,131
(inclusive of superannuation)
Dr Mohammad Choucair 2
Chief Executive Officer
$56,610
(inclusive of superannuation)
50%
68%
50%
32%
1 Mr English’s contract of employment provides for a discretionary cash bonus of up to 15% of his salary each year, determined with reference to KPIs set by
the Board annually. The KPI’s subject of the bonus payable for the financial year were determined with reference to satisfaction of performance targets
relating to corporate strategy objectives, funding and stakeholder management.
2 Dr Choucair’s contract of employment provides for a discretionary cash bonus of up to 25% of his salary each year, determined with reference to KPIs set
by the Board annually. The KPI’s subject of the bonus payable for the financial year were determined with reference to satisfaction of performance targets
relating to key technical and corporate strategy objectives.
No other key management personnel were awarded short-term incentive cash bonuses as remuneration during the year
ended 30 June 2023.
35 | Archer Materials Limited 2023 Annual Report
REMUNERATION REPORT (AUDITED)
F. Other Information
Option Holdings of Key Management Personnel as at 30 June 2023
The number of Options over ordinary shares in the Company held, directly, indirectly, or beneficially, by each specified
Director and and other key management personnel, including their personally related entities as at reporting date, is as
follows:
2023
Key Management
Personnel
Held at
1 July 2022
Granted as
Remuneration
Mr English
10,000,000
Mr Williams
Ms Harkin
Dr Choucair
Mr Connor
3,000,000
1,500,000
9,300,000
2,500,000
Total
26,300,000
-
-
-
-
-
-
Exercised 1
(5,000,000)
-
-
(3,300,000)
(1,000,000)
(9,300,000)
Forfeited/
Lapsed/
Cancelled
Held at
30 June 2023
Vested and
Exercisable at
30 June 2023
-
-
-
-
-
5,000,000
3,333,334
3,000,000
2,500,000
1,500,000
1,000,000
6,000,000
4,000,000
1,500,000
1,000,000
17,000,000
11,833,334
1 A total of 6,379,806 Shares were issued from the exercise of 9,300,000 Options, including 5,879,806 Shares issued following the cashless exercise of
8,800,000 Options. Refer to Note 14 for details of the formula used for cashless exercise of Options.
Performance Rights Holdings of Key Management Personnel as at 30 June 2023
There were no Rights to acquire shares in the Company held by KMP during the current or prior reporting period.
Share Holdings of Key Management Personnel as at 30 June 2023
The number of ordinary shares of Archer Materials Limited held, directly, indirectly, or beneficially, by each Director and
and other key management personnel, including their personally related entities as at reporting date:
2023
Key Management
Personnel
Mr English
Mr Williams
Ms Harkin
Dr Choucair
Mr Connor
Total
Held at
1 July 2022
Granted as
Compensation
Options
Exercised
Other
Changes 1
Held at
30 June 2023
8,997,618
-
-
2,600,000
467,500
12,065,118
-
-
-
-
-
-
3,506,719
(994,485)
11,509,852
-
-
-
-
-
-
2,204,927
(950,000)
3,854,927
668,160
(191,829)
943,831
6,379,806
(2,136,314)
16,308,610
1 Shares sold on market during the year.
36
Transactions with Key Management Personnel
Transactions with key management personnel and related parties as disclosed below are made on normal commercial
terms and conditions. Outstanding balances are unsecured and are repayable in cash.
Amounts paid or payable to key management personnel and related parties/entities:
Related Party
Relationship to Key Management
Personnel/Director
Services Provided
2023
$
2022
$
Piper Alderman
Lawyers
A business of which Greg English
is a Consultant.
Legal advice
$14,172
$32,725
Damien Connor
Consulting Pty Ltd
A business of which Damien
Connor is a Director.
Finance/ Co.
Secretary consulting
fees.
$170,550
$174,243
Dr Choucair is a co-inventor of the 12CQ intellectual property licenced to Archer under a Licence Agreement with
The University of Sydney. During the year Dr Choucair was not paid by The University of Sydney (2022: $4,710).
END OF AUDITED REMUNERATION REPORT
37 | Archer Materials Limited 2023 Annual Report
DIRECTORS’ REPORT
Unissued Shares Under Option
Unissued ordinary shares of Archer Materials Limited under option at the date of this report are:
Issue Date
Grant Date
Number of
Options Granted
Option
Exercise Price
Expiry Date
30/11/2020
30/11/2020
1,500,000
$0.7277
31/03/2024
Issued to
Director 1
Directors 1
CEO 1
2/12/2021
24/11/2021
8,000,000
2/12/2021
24/11/2021
6,000,000
Company Secretary 1
2/12/2021
24/11/2021
1,500,000
Other Employees
2/12/2021
24/11/2021
6,450,000
Other Employee
29/8/2022
17/8/2022
1,500,000
24,950,000
1 Previously issued to members of key management personnel as remuneration.
$1.79
$1.79
$1.79
$1.79
$1.79
31/05/2025
31/05/2025
31/05/2025
31/05/2025
31/05/2025
All Options are unlisted and exercisable into fully paid ordinary shares in the Company on a one for one basis. These
Options do not entitle the holders to participate in any share issue of the Company.
Refer Note 17 for details of movement in Options during the reporting period. No Options over ordinary shares have
been issued, forfeited, cancelled or lapsed since the end of the reporting period.
Performance Rights (Rights)
There were no Rights on issue during the reporting period or as at the date of this report.
Environmental Issues
The Group’s operations are subject to significant environmental regulations under the laws of the Commonwealth and/
or State. No notice of any breach has been received and to the best of the Directors’ knowledge no breach of any
environmental regulations has occurred during the financial year or up to the date of this Annual Report.
Indemnity and insurance of officers
The Company’s Constitution provides that the Company indemnifies, on a full indemnity basis and to the full extent
permitted by law, officers of the Company for all losses or liabilities incurred by the person as an officer of the Company
or a related body corporate. In conformity with the Constitution, the Company is party to Deeds of Indemnity in favour
of each of the Directors referred to in this report who held office during the year.
The Company has paid premiums to insure each of the Directors, Officers and Consultants against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of
Director or Executive of the Company, other than conduct involving wilful breach of duty or a lack of good faith in relation
to the Company. The policy does not specify the individual premium for each officer covered and the amount paid is
confidential. Since the end of the year the Company has paid, or agreed to pay, premiums in respect of such contracts for
the year ending 30 June 2023.
38
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial period, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
Non-audit services
Details of the amounts paid or payable to the auditor (Grant Thornton) for services provided by them during the financial
year are outlined in Note 6 to the financial statements. No non-audit services were provided by the auditor during the year.
Proceedings on behalf of the company
As far as the Directors’ are aware, no person has applied to the Court for leave to bring proceedings on behalf of the
Company or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings
during the year.
Corporate Governance
The Board has adopted the ASX Corporate Governance Council’s “Corporate Governance Principles and
Recommendations – 4th Edition” (ASX Recommendations). The Board continually monitors and reviews its existing and
required policies, charters and procedures with a view to ensuring its compliance with the ASX Recommendations to
the extent deemed appropriate for the size of the Company and the status of its projects and activities. Good corporate
governance practices are also supported by the ongoing activities of the Audit & Risk Management Committee and the
Remuneration and Nomination Committee.
The Company’s Corporate Governance Statement for the financial year ending 30 June 2023 is dated 30 June 2023 and
was approved by the Board on 24 August 2023.
The Corporate Governance Statement provides a summary of the Company’s ongoing corporate governance practices in
accordance with the ASX Recommendations. The Corporate Governance Statement is supported by a number of policies,
procedures, code of conduct and formal charters, all of which are located in the Corporate Governance section of the
Company’s website: www.archerx.com.au.
Auditor’s Declaration
The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page
40 and forms part of the director’s report for the financial year ended 30 June 2023.
This report is signed in accordance with a resolution of the Board of Directors.
Gregory English
Chairman
Adelaide
Dated this 24th day of August 2023
39 | Archer Materials Limited 2023 Annual Report
AUDITOR’S INDEPENDENCE REPORT
40
Grant Thornton Audit Pty Ltd Grant Thornton House Level 3 170 Frome Street Adelaide SA 5000 GPO Box 1270 Adelaide SA 5001 T +61 8 8372 6666 w www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. Auditor’s Independence Declaration To the Directors of Archer Materials Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Archer Materials Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Grant Thornton Audit Pty Ltd Chartered Accountants J L Humphrey Partner – Audit & Assurance Adelaide, 24 August 2023 Financial
Information
41 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE
REVENUE
Revenue from ordinary activities
Research and development tax concession
Other income
EXPENSES
Depreciation expense
Amortisation of intangibles
Quantum and biochip technology research expenditure
Employee benefits expense
Share based payments expense
Fair value loss on financial assets
Corporate consultants/public relations expense
ASX listing and share registry expense
Other expenses
LOSS BEFORE INCOME TAX EXPENSE
Income tax expense
Notes
3
11
17
9
CONSOLIDATED GROUP
2023
$
-
1,498,471
702,248
2022
$
-
973,000
650,472
2,200,719
1,623,472
(34,395)
(19,344)
(37,829)
(12,577)
(2,965,560)
(2,259,068)
(1,098,392)
(1,081,234)
(5,554,843)
(9,945,024)
(848,391)
(216,325)
(163,923)
(349,003)
(1,448,062)
(131,026)
(345,000)
(412,157)
(9,049,457)
(14,048,505)
-
-
LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS
(9,049,457)
(14,048,505)
DISCONTINUED OPERATIONS
Loss after income tax for the period from discontinued operations
18
-
(67,223)
LOSS ATTRIBUTED TO MEMBERS OF THE PARENT ENTITY
(9,049,457)
(14,115,728)
Other comprehensive income
-
-
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO MEMBERS
OF THE PARENT ENTITY
(9,049,457)
(14,115,728)
Loss per share
Basic and diluted loss for the year per share
Loss per share for continuing operations
Basic and diluted loss for the year per share
15
15
The accompanying notes form part of the financial statements.
Cents
(3.62)
Cents
(5.84)
(3.62)
(5.81)
42
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
CONSOLIDATED GROUP
2023
$
2022
$
Notes
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Term deposits – short term
Trade and other receivables
Other financial assets
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Intangible assets
Property, plant and equipment
Right of use asset – office lease
TOTAL NON- CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liability
Employee entitlements
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liability
Employee entitlements
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of the financial statements.
7
7
8
9
11
12
13
13
14
16
772,317
22,545,145
2,032,765
874,879
537,127
1,418,542
25,045,145
1,094,018
1,708,806
583,713
26,762,233
29,850,224
353,694
83,880
9,097
446,671
248,340
47,220
19,750
315,310
27,208,904
30,165,534
785,719
9,097
378,868
1,173,684
-
34,983
34,983
348,759
10,652
336,403
695,814
9,097
41,322
50,419
1,208,667
746,233
26,000,237
29,419,301
47,799,119
15,371,834
(37,170,716)
26,000,237
47,723,569
10,893,334
(29,197,602)
29,419,301
43 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE
Issued
Capital
$
Retained
Earnings
$
Share Based
Payments
Reserve
$
Acquisition
Reserve
$
Total
$
BALANCE AT 1 JULY 2021
33,093,217
(15,522,377)
1,148,813
240,000
18,959,653
Expense associated with unlisted
option vesting during the period
(refer Note 17)
Shares issued during the year - net
of costs (refer Note 14)
Return of capital - by way of a pro-
rata in-specie distribution of iTech
shares to Archer shareholders
(refer Note 18)
Transfer of lapsed or exercised
share- based payments to
retained earnings
-
24,630,352
(10,000,000)
-
-
-
9,945,024
-
-
-
200,503
(200,503)
-
-
-
-
9,945,024
24,630,352
(10,000,000)
-
Transactions with owners
47,723,569
(15,321,874)
10,893,334
240,000
43,535,029
Transfer of acquisition reserve from
prior periods to retained earnings
Total loss for the year
Other comprehensive income
-
-
-
240,000
(14,115,728)
-
-
-
-
BALANCE AT 30 JUNE 2022
47,723,569
(29,197,602)
10,893,334
(240,000)
-
-
-
-
(14,115,728)
-
29,419,301
Issued
Capital
$
Retained
Earnings
$
Share Based
Payments
Reserve
$
Acquisition
Reserve
$
BALANCE AT 1 JULY 2022
47,723,569
(29,197,602)
10,893,334
Expense associated with unlisted
option vesting during the period
(refer Note 17)
Shares issued during the year
- net of costs (refer Note 14)
Transfer of lapsed or exercised
share- based payments to
retained earnings.
-
75,550
-
-
5,554,843
-
-
1,076,343
(1,076,343)
Transactions with owners
47,799,119
(28,121,259)
15,371,834
Total loss for the year
Other comprehensive income
-
-
(9,049,457)
-
-
-
BALANCE AT 30 JUNE 2023
47,799,119
(37,170,716)
15,371,834
The accompanying notes form part of the financial statements.
44
-
-
-
-
-
-
-
-
Total
$
29,419,301
5,554,843
75,550
-
35,049,694
(9,049,457)
-
26,000,237
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE
CONSOLIDATED GROUP
Notes
2023
$
2022
$
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(1,334,837)
(2,438,381)
Payments for quantum and biochip technology research activities
(2,965,560)
(2,259,068)
Interest received
Research and development tax concession received
Innovation grant received
Services Income
227,903
12,915
1,021,471
464,051
25,000
-
25,000
30,000
NET CASH USED IN OPERATING ACTIVITIES
19
(3,026,023)
(4,165,483)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for short term deposits
Proceeds from short term deposits
Payments for intellectual property
Payments for property, plant and equipment
Proceeds from the sale of property, plant and equipment
-
(25,045,145)
2,500,000
-
(124,698)
(120,709)
(60,402)
-
(19,120)
45,000
NET CASH PROVIDED (USED IN) / BY IN INVESTING ACTIVITIES
2,314,900
(25,139,974)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Payments for costs of capital raised
Payment of lease liability
NET CASH PROVIDED BY FINANCING ACTIVITIES
14
75,550
25,620,352
-
(990,000)
(10,652)
(10,341)
64,898
24,620,011
CASH FLOWS (USED) / PROVIDED BY DISCONTINUED OPERATIONS
19
-
(135,111)
Net (decrease) / increase in cash held
Cash at the beginning of the year
(646,225)
(4,820,557)
1,418,542
6,239,099
CASH AT THE END OF THE FINANCIAL YEAR
7
772,317
1,418,542
The accompanying notes form part of the financial statements.
45 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Non-current assets held for sale and discontinued
operations
The Group classifies non-current assets and disposal
groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather
than through continuing use. Non-current assets and
disposal groups classified as held for are measured at the
lower of their carrying amount and fair value less costs
to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset (disposal group),
excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as
met only when the sale is highly probable and the asset
or disposal group is available for immediate sale in its
present condition. Actions required to complete the sale
should indicate that it is unlikely that significant changes
to the sale will be made or that the decision to sell will be
withdrawn. Management must be committed to the plan
to sell the asset and the sale expected to be completed
within one year from the date of the classification.
Property, plant and equipment and intangible assets are
not depreciated or amortised once classified as held for
sale.
Assets and liabilities classified as held for sale are
presented separately as current items in the statement of
financial position.
A disposal group qualifies as discontinued operation if it
is a component of an entity that either has been disposed
of, or is classified as held for sale, and:
> Represents a separate major line of business or
geographical area of operations;
> Is part of a single co-ordinated plan to dispose of a
separate major line of business or geographical area of
operations; or
> Is a subsidiary acquired exclusively with a view to resale.
Discontinued operations are excluded from the results
of continuing operations and are presented as a single
amount as profit or loss after tax from discontinued
operations in the statement of profit or loss.
Additional disclosures are provided in Note 18. All other
notes to the financial statements include amounts for
continuing operations, unless indicated otherwise.
Basis of preparation
The financial report is a general purpose financial
report that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board (AASB) and
the Corporations Act 2001.
Archer Materials Limited is a for profit entity for the
purposes of preparing the financial statements. The
financial report has been presented in Australian dollars.
Australian Accounting Standards set out accounting
policies that the AASB has concluded would result
in a financial report containing relevant and reliable
information about transactions, events and conditions
to which they apply. Compliance with Australian
Accounting Standards ensures that the financial
statements and notes also comply with International
Financial Reporting Standards. Material accounting
policies adopted in the preparation of this financial
report are presented below. They have been consistently
applied unless otherwise stated.
The financial report has been prepared on an accruals
basis and is based on historical costs modified, where
applicable, by the measurement at fair value of selected
non-current assets, financial assets and financial liabilities.
The principal accounting policies adopted in the
preparation of the financial statements are set out below.
Principles of Consolidation
The parent entity controls a subsidiary if it is exposed,
or has rights, to variable returns from its involvement
with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. A list of
controlled entities is contained in Note 10 to the financial
statements.
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).
All inter-group balances and transactions between
entities in the consolidated group, including any
recognised profits or losses, have been eliminated on
consolidation. Accounting policies of subsidiaries have
been changed, where necessary, to ensure consistency
with those adopted by the parent entity.
46
Current and non-current classification
Depreciation
Assets and liabilities are presented in the statement
of financial position based on current and non-current
classification.
An asset is classified as current when: it is either
expected to be realised or intended to be sold or
consumed in the consolidated entity’s normal operating
cycle; it is held primarily for the purpose of trading; it
is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent
unless restricted from being exchanged or used to settle
a liability for at least 12 months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when: it is either
expected to be settled in the consolidated entity’s normal
operating cycle; it is held primarily for the purpose of
trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to
defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified
as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other
short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value. For the
statement of cash flows presentation purposes, cash and
cash equivalents also includes bank overdrafts, which
if applicable, will be shown within borrowings in current
liabilities on the Statement of Financial Position.
Property, plant and equipment
Property, plant and equipment is carried at cost less
where applicable, any accumulated depreciation and
impairment losses.
The carrying amount of property, plant and equipment
is reviewed annually by Directors to ensure it is not in
excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of
the expected net cash flows that will be received from
the assets employment and subsequent disposal. The
expected net cash flows have been discounted to their
present values in determining recoverable amounts.
Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group
and the cost of the item can be measured reliably.
All other repairs and maintenance are charged to the
Statement of Profit or Loss during the financial period in
which are they are incurred.
The depreciable amount of all fixed assets is depreciated
on a straight-line basis over their useful lives to the
consolidated entity commencing from the time the
asset is held ready for use. Leasehold improvements
are depreciated over the shorter of either the unexpired
period of the lease or the estimated useful lives of the
improvements.
The depreciation rates used for each class of depreciable
assets are:
Class of
Non-Current Asset
Depreciation
Rate
Basis of
Depreciation
Plant and
Equipment
10 – 33%
Straight Line
The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each reporting date. An
asset’s carrying amount is written down immediately to
its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
gains and losses are included in the Statement of Profit or
Loss.
Intangible assets
Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value
at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.
Internally generated intangibles, excluding capitalised
development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in
which the expenditure is incurred.
The useful lives of intangible assets are assessed as
either finite or indefinite.
Intangible assets with infinite lives are amortised over
the useful economic life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with a
finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or
the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify
the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite
lives is recognised in the statement of profit or loss in the
expense category that is consistent with the function of
the intangible assets.
47 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit level.
The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to
be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.
An intangible asset is derecognised upon disposal (i.e.,
at the date the recipient obtains control) or when no
future economic benefits are expected from its use or
disposal. Any gain or loss arising upon derecognition of
the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset)
is included in the statement of profit or loss.
Research and development costs
Research costs are expensed as incurred and included
in the statement of profit or loss as research and
development costs. Development expenditures on an
individual project are recognised as an intangible asset
when the Group can demonstrate:
> The technical feasibility of completing the intangible
asset so that the asset will be available for use or sale
> Its intention to complete and its ability and intention to
use or sell the asset
> How the asset will generate future economic benefits
> The availability of resources to complete the asset
> The ability to measure reliably the expenditure
during development
Following initial recognition of the development
expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins
when development is complete and the asset is available
for use. It is amortised over the period of expected
future benefit. Amortisation is recorded in cost of sales.
During the period of development, the asset is tested for
impairment annually.
Patents and licences
The Group has made payments in respect of patents and
licences and also pays for on-going patent prosecution
costs. The Licences have been granted for patents which
are undergoing prosecution by the relevant government
agencies and the Company also owns a patent
undergoing prosecution.
48
Patents have a life of up to 20 years and are assessed on
a case by case basis. Licences for the use of intellectual
property are granted for periods ranging between three
and five years depending on the specific licences. The
licences require an annual fee to be paid to continue
to access the licenses. As a result, those licences are
assessed as having a finite useful life.
A summary of the policies applied to the Group’s
intangible assets is, as follows:
Licences
Patents
Useful lives
Finite (5 years)
Finite (20 years)
Amortisation
method used
Internally
generated or
acquired
Amortised on
a straight-line
basis over the
period of the
licence
Amortised on
a straight-line
basis over the
period of the
patent
Acquired
Acquired
Trade and other payables
These amounts represent liabilities for goods and
services provided to the consolidated entity prior to the
end of the financial year/period and which are unpaid.
Due to their short-term nature they are measured at
amortised cost and are not discounted. The amounts
are unsecured and are usually paid within 30 days of
recognition.
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.
Employee Benefits
Provision is made for the Company’s liability for employee
benefits arising from services rendered by employees to
reporting date. Employee benefits that are expected to
be settled wholly within one year have been measured
at the amounts expected to be paid when the liability is
settled, plus related on-costs. Employee benefits payable
later than one year have been measured at the present
value of the estimated future cash outflows to be made
for these benefits. Those cashflows are discounted
using market yields on high quality corporation bonds
with terms to maturity that match the expected timing of
cashflows.
Share-based Payments
Equity-settled transactions
The Company provides benefits to employees
(including directors) in the form of share-based payment
transactions, whereby employees render services in
exchange for shares or rights over shares (‘equity-settled
transactions’).
The Company currently provides benefits under a
Performance Rights and Share Option Plan.
The cost of these equity-settled transactions with
employees and directors is measured by reference to the
fair value at the date at which they are granted.
In valuing equity-settled transactions, no account is taken
of any performance conditions, other than conditions
linked to the price of the shares of the Company (‘market
conditions’). The cost of equity-settled transactions is
recognised, together with a corresponding increase
in equity, over the period in which the performance
conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award
(‘vesting date’).
The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date
reflects:
i)
the extent to which the vesting period has expired;
and
ii) the number of awards that, in the opinion of the
directors, will ultimately vest. This opinion is formed
based on the best available information at reporting
date. No adjustment is made for the likelihood
of market performance conditions being met as
the effect of these conditions is included in the
determination of fair value at grant date.
No expense is recognised for awards that do not
ultimately vest, except for awards where vesting is
conditional upon a market condition.
Where the terms of an equity-settled award are modified,
as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense
is recognised for any increase in the value of the
transaction as a result of the modification, as measured at
the date of modification. Where an equity-settled award
is cancelled, it is treated as if it had vested on the date
of cancellation, and any expense not yet recognised
for the award is recognised immediately. However, if a
new award is substituted for the cancelled award, and
designated as a replacement award on the date that
it is granted, the cancelled and new award are treated
as if they were a modification of the original award, as
described in the previous paragraph.
The dilutive effect, if any, of outstanding Options and
Rights is reflected as additional share dilution in the
computation of earnings per share.
Issued capital
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
Options are shown in equity as a deduction, net of tax,
from the proceeds.
Leases
The Group assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration
Group as a lessee
The Group applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognises lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
i) Right-of-use assets
The Group recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter
of the lease term and the estimated useful lives of the
asset.
ii) Lease Liabilities
At the commencement date of the lease, the Group
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives
receivable.
In calculating the present value of lease payments,
the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
for the lease payments made.
49 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g., changes
to future payments resulting from a change in an index
or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the
underlying asset.
Financial Instruments - initial recognition and
subsequent measurement
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
i) Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value
through profit or loss.
The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or
for which the Group has applied the practical expedient,
the Group initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or
for which the Group has applied the practical expedient
are measured at the transaction price determined under
AASB 15.
In order for a financial asset to be classified and
measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments
of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI
test and is performed at an instrument level.
The Group’s business model for managing financial
assets refers to how it manages its financial assets
in order to generate cash flows. The business model
determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or
both.
Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or
convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Group
commits to purchase or sell the asset.
50
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
> Financial assets at amortised cost (debt instruments)
> Financial assets at fair value through OCI with
recycling of cumulative gains and losses (debt
instruments)
> Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
> Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The
Group measures financial assets at amortised cost if both
of the following conditions are met:
> The financial asset is held within a business model
with the objective to hold financial assets in order to
collect contractual cash flows; and
> The contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding
Financial assets at amortised cost are subsequently
measured using the effective interest (EIR) method
and are subject to impairment. Gains and losses
are recognised in profit or loss when the asset is
derecognised, modified or impaired.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognised (i.e., removed from the Group’s
consolidated statement of financial position) when:
> The rights to receive cash flows from the asset have
expired; or
> The Group has transferred its rights to receive cash
flows from the asset or has assumed an obligation
to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset,
or (b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but
has transferred control of the asset.
When the Group has transferred its rights to receive cash
flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has
retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the Group continues to recognise
the transferred asset to the extent of its continuing
involvement. In that case, the Group also recognises
an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects
the rights and obligations that the Group has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the
maximum amount of consideration that the Group could
be required to repay.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are
carried in the statement of financial position at fair value
with net changes in fair value recognised in the statement
of profit or loss.
This category includes listed equity investments which
the Group had not irrevocably elected to classify at
fair value through OCI. Dividends on listed equity
investments are recognised as other income in the
statement of profit or loss when the right of payment has
been established.
Impairment of financial assets
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance
with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of
the original effective interest rate. The expected cash
flows will include cash flows from the sale of collateral
held or other credit enhancements that are integral to the
contractual terms.
ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a
significant increase in credit risk since initial recognition,
a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the
timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group
applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Group
has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic
environment.
The Group considers a financial asset in default when
contractual payments are 90 days past due. However,
in certain cases, the Group may also consider a
financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive
the outstanding contractual amounts in full before
taking into account any credit enhancements held by
the Group. A financial asset is written off when there is
no reasonable expectation of recovering the contractual
cash flows.
ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated
as hedging instruments in an effective hedge, as
appropriate.
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
The Group’s financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the
derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
51 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
Deferred tax assets relating to temporary differences and
unused tax losses are recognised only to the extent that
it is probable that future taxable profit will be available
against which the benefits of the deferred tax asset can
be utilised.
Where temporary differences exist in relation to
investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are
not recognised where the timing of the reversal of the
temporary difference can be controlled and it is not
probable that the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are offset where a legally
enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and
settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a
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.
Tax Consolidation
Archer Materials Limited and its wholly-owned Australian
subsidiaries have formed an income tax consolidated
group under tax consolidation legislation. The Group
notified the Australian Tax Office that it had formed an
income tax consolidated group to apply from 1 July 2007.
Research and Development Tax Concession
To the extent that research and development costs are
eligible activities under the “Research and development
tax incentive” programme, a refundable tax offset is
available for companies with annual turnover of less than
$20 million. The Group recognises refundable tax offsets
received in the financial year as R&D tax concession
income in statement of profit or loss, resulting from
the monetisation of available tax losses that otherwise
would have been carried forward. These amounts are
recognised at their fair value only to the extent that where
there is reasonable assurance that the incentive will be
received.
Impairment of non-financial assets
At each reporting date, the Group reviews the carrying
values of its tangible and intangible assets to determine
whether there is any indication that those assets
have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the
asset’s fair value less costs to dispose and value in use,
is compared to the asset’s carrying value. Any excess of
the asset’s carrying value over its recoverable amount is
expensed to the Statement of Profit or Loss.
Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which
the asset belongs.
Income Tax
The income tax expense/(revenue) for the year comprises
current income tax expense/(income) and deferred tax
expense/(income).
Current income tax expense charged to 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 asset and deferred tax liability balances
during the year as well as unused tax losses. Current
and deferred income tax expense/(income) is charged
or credited directly to equity instead of the profit or loss
when the tax relates to items that are credited or charged
directly to equity.
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 or loss.
Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply to the period when the
asset recognised or the liability is settled, based on tax
rates enacted or substantively 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.
52
(ii) Research and development (R&D) tax concession
The Group is entitled to claim R&D tax incentives in
Australia. The R&D tax incentive is calculated using
the estimated expenditures multiplied by a 48.5%
non-refundable tax offset (as a non base rate entity)
or otherwise 43.5% (as a base rate entity). It has been
established that the conditions of the R&D incentive
have been met and that the expected amount of the
incentive can be reliably measured. Estimated amounts
receivable are recognised as research and development
tax concession income.
Comparative Figures
When required by accounting standards, comparative
figures have been adjusted to conform to changes in
presentation of the current financial year.
Adoption of New and Revised Accounting Standards
At the date of authorisation of these financial statements,
several new Standards and amendments to existing
Standards, and Interpretations have been published by
the AASB.
Management have adopted all relevant pronouncements,
as applicable, for the first period beginning on or after
the effective date of the pronouncement. New Standards,
amendments and Interpretations not adopted in the
current year have not been disclosed as they are not
expected to have a material impact on the Group’s
financial statements.
The financial report was authorised for issue on
24 August 2023 by the Board of Directors.
Revenue
Interest revenue is recognised on a proportional basis
taking into account the interest rates applicable to the
financial assets.
Revenue from the rendering of a service is recognised
upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and
services tax (GST).
Goods and Services Tax (‘GST’) and other similar taxes
Revenues, expenses and assets are recognised net of
the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office.
In these circumstances, the GST is recognised as part of
the cost of acquisition of the asset or as part of an item of
the 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 Tax Office is included in other receivables or
other payables 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.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
Australian Tax Office.
Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgments
incorporated into the financial report based on historical
knowledge and best available current information.
Estimates assume a reasonable expectation of future
events and are based on current trends and economic
data obtained both externally and within the Group.
Key estimates
(i) Impairment
The Company assesses impairment at the end of each
reporting period by evaluating conditions and events
specific to the Company that may be indicative of
impairment triggers. Recoverable amounts of relevant
assets are reassessed using fair value less cost of
disposal calculations which incorporate various key
assumptions.
53 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 2 – OPERATING SEGMENTS
The Directors have considered the requirements of AASB 8 - Operating segments and the internal reports that are reviewed
by the chief operating decision maker (the Board) in allocating resources have concluded at this time there are no separately
identifiable segments. The Group operates in one segment being materials technology research.
NOTE 3 – OTHER INCOME
CONSOLIDATED GROUP
Interest income
Commonwealth innovation grant
Gain on sale of plant and equipment
Consulting services income
Gain on sale of non-current assets – sale to ChemX Materials Ltd
Total income
NOTE 4 – INCOME TAX
30 JUNE
2023
$
677,248
25,000
-
-
-
702,248
30 JUNE
2022
$
86,248
25,000
45,000
30,000
464,224
650,472
30 JUNE
2023
$
30 JUNE
2022
$
a) The components of income tax benefit comprise:
Current tax
-
-
b) The prima facie tax on loss from before income tax is reconciled
to the income tax as follows:
30% (2022: 25%):
Net loss from continuing operations
Net loss from discontinued operations
Total loss from continued and discontinued operations
Income tax rate
Prima facie tax benefit on loss before income tax
Non-deductible expenses / (non-assessable income)
Tax effect of temporary differences not brought to account as they
do not meet the recognition criteria
(9,049,457)
(14,048,505)
-
(67,223)
(9,049,457)
(14,115,728)
30%
25%
(2,714,837)
(3,528,932)
968,198
2,486,256
1,746,639
1,042,676
Income tax attributable to loss from continued and discontinued operations
-
-
c) Unused tax losses where no deferred tax asset has been recognised at 30% (2022: 25%)
7,663,471
5,524,165
d) Timing difference for which no deferred tax (liability) / asset has been recognised
(36,595)
68,071
54
NOTE 5 – KEY MANAGEMENT PERSONNEL COMPENSATION
a) Names and positions held of consolidated entity key management personnel in office at any time during the
financial year are:
Mr Greg English
Chairman – Executive
Mr Kenneth Williams
Director – Non-executive
Ms Bernadette Harkin
Director – Non-executive
Dr Mohammad Choucair
Chief Executive Officer
Mr Damien Connor
Chief Financial Officer & Company Secretary
Other than the directors and officers of the company listed above, there are no additional key management personnel.
b) Key Management Personnel Compensation
Refer to the Remuneration Report for details of the remuneration paid or payable to each member of the Group’s Key
Management Personnel (KMP). Detailed disclosures regarding remuneration are found in the Remuneration report
contained in the Directors report.
The aggregate remuneration of KMP of the Group during the year is as follows:
Short term benefits
Post-employment benefit
Share - based payments
NOTE 6 – AUDITOR REMUNERATION
Total fees paid or payable for services provided by Grant Thornton Audit Pty Ltd
and its related practices were as follows:
Audit Services
Audit and review of Financial Reports
No non audit services were provided.
NOTE 7 – CASH AND CASH EQUIVALENTS AND TERM DEPOSITS
Cash at bank and on hand
Short term deposits
30 JUNE
2023
$
987,617
86,176
30 JUNE
2022
$
941,218
77,180
3,940,370
6,409,476
5,014,163
7,427,874
30 JUNE
2023
$
30 JUNE
2022
$
59,600
53,000
30 JUNE
2023
$
30 JUNE
2022
$
772,317
1,418,542
22,545,145
25,045,145
For the year ended 30 June 2023, the group has deposited any funds surplus to immediate requirements in higher yielding
short term deposits. Maturity dates for short term deposits vary between 30 and 457 days at 30 June 2023. The weighted
average interest rate on the short term deposits is 4.44%. Short term deposits are able to be converted to available cash
with 30 days’ notice. The Group’s exposure to interest rate risk is summarised at Note 22.
55 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 8 – TRADE AND OTHER RECEIVABLES
Research and development tax incentive receivable
Accrued interest
Other receivables
NOTE 9 – OTHER FINANCIAL ASSETS
Financial assets at fair value through profit or loss
- Listed Investment in Volatus Capital Corp (“Volatus”) - shares
- Listed Investment in ChemX Materials Ltd (“ChemX”) – shares
- Listed Investment in ChemX Materials Ltd (“ChemX”) - options
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and
previous financial year are set out below:
Opening fair value
Additions – listed options in ChemX (at cost)
Additions – consideration received ChemX
Revaluation decrements
Closing fair value
30 JUNE
2023
$
30 JUNE
2022
$
1,450,000
973,000
530,252
52,513
80,906
40,112
2,032,765
1,094,018
30 JUNE
2023
$
30 JUNE
2022
$
18,617
821,549
34,713
874,879
146,705
1,562,101
-
1,708,806
1,708,806
2,692,644
14,464
-
-
464,224
(848,391)
(1,448,062)
874,879
1,708,806
All financial assets designated at fair value through profit or loss utilise level 1.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
The fair value of listed investments (publicly traded equity securities) is based on quoted market prices at the end of the
reporting period (Level 1).
56
NOTE 10 – INVESTMENT IN CONTROLLED ENTITIES
Country of
Incorporation
PERCENTAGE OWNED
30 JUNE
2023
%
30 JUNE
2022
%
Australia
Australia
Australia
Australia
Australia
Parent Entity
- Archer Materials Limited
Subsidiaries of Archer Materials Limited:
- Carbon Allotropes Pty Limited
- Archer Energy and Resources Pty Ltd
- Archer Metals Pty Ltd
- Archer IOCG Pty Ltd
NOTE 11 – INTANGIBLE ASSETS
Patents, licences and trademarks - at cost
Accumulated amortisation
Movements in carrying amounts:
Balance at the beginning of the period
Additions
Amortisation
Balance at the end of the period
NOTE 12 – TRADE AND OTHER PAYABLES
Trade payables
Other creditors and accruals
NOTE 13 – EMPLOYEE ENTITLEMENTS
Current – annual leave, long service leave and other employee provisions
Non-current - long service leave provision
100
100
100
100
30 JUNE
2023
$
397,973
(44,279)
353,694
248,340
124,698
(19,344)
353,694
30 JUNE
2023
$
388,621
397,098
785,719
30 JUNE
2023
$
378,868
34,983
413,851
100
100
100
100
30 JUNE
2022
$
273,275
(24,935)
248,340
140,208
120,709
(12,577)
248,340
30 JUNE
2022
$
104,894
243,865
348,759
30 JUNE
2022
$
336,403
41,322
377,725
57 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 14 – ISSUED CAPITAL
CONSOLIDATED GROUP
30 JUNE
2023
$
30 JUNE
2022
$
254,847,013 (2022: 248,467,207) fully paid ordinary shares
47,799,119
47,723,569
a) Shares on issue
30 June 2023
Movements in fully paid shares
Balance as at 1 July 2022
Shares issued - exercise of Options (31 October 2022)
Shares issued - exercise of Options (27 March 2023) 1
Balance as at 30 June 2023
Number
$
248,467,207
47,723,569
500,000
5,879,806
75,550
-
254,847,013
47,799,119
1
5,879,806 Shares issued following the cashless exercise of 8,800,000 Options (exercisable at $0.1511 each and expiring or before 31 March 2023).
On 9 March 2023, the Board (with Mr English abstaining) approved an amendment to the Archer Performance Rights and Share Option Plan (the ‘Plan’),
to include a Cashless Exercise Mechanism. The formula for calculating the number of Shares to be issued on cashless exercise pursuant to the Plan,
as amended, is as follows as:
A = O – ((O x E)/ SP)
Where:
A =
O =
E =
SP =
the number of Shares required to be issued by the Company;
the number of Share Options for which the Cash-less Exercise Mechanism has been exercised;
the Exercise Price for the Share Options for which the Cash-less Exercise Mechanism has been exercised;
the volume weighted average market price (as defined in the ASX Listing Rules) of Shares over the five (5) trading days on
which trades in Shares are actually recorded immediately preceding (but excluding) the date of the Notice of Exercise.
Shares on issue
30 June 2022
Movements in fully paid shares
Balance as at 1 July 2021
Shares issued - exercise of Options (16 July 2021)
Number
$
227,506,546
33,093,217
200,000
38,580
Shares issued – placement (net of costs) (8 October 2021)
10,344,828
15,000,000
Shares issued - exercise of Options (8 October 2021)
1,200,000
231,480
Return of Capital - in-specie distribution 1
N/A
(10,000,000)
Shares issued – share purchase plan (27 October 2021)
6,897,556
10,000,000
Shares issued - exercise of Options (2 November 2021) ²
Shares issued - exercise of Options (29 November 2021) ²
Shares issued - exercise of Options (20 April 2022) ²
Shares issued - exercise of Options (27 May 2022) ²
Transaction costs of shares issued
Balance as at 30 June 2022
1,318,277
100,000
300,000
600,000
199,192
15,110
45,330
90,660
n/a
(990,000)
248,467,207
47,723,569
The value of the capital reduction effected by way of in-specie distribution of 50,000,000 shares in iTech Minerals Ltd (‘iTech’) to Archer shareholders
on 15 October 2021. The 50,000,000 shares in iTech were issued at $0.20 per share as consideration for the sale of the Company’s remaining mineral
exploration business to iTech. Refer to Note 18 for further details regarding the sale to iTech and pro-rata in-specie distribution of iTech shares to Archer
shareholders.
Following the return of capital by way of pro-rata in-specie distribution of 50,000,000 iTech shares (refer Note 18), on 15 October 2021 the exercise
price of outstanding Options were adjusted in accordance with the ASX Listing rules. Options previously exercisable at $0.1929 were adjusted to be
exercisable at $0.1511 each, and Options previously exercisable at $0.7695 were adjusted to be exercisable at $0.7277 each.
1
2
58
NOTE 14 – ISSUED CAPITAL (CONTINUED)
(b) Options on issue
All options on issue are unlisted options (Options). Details of the Options outstanding as at the end of the year are set
out below:
Issued to
Issue Date Grant Date
Number
of Options
Granted
Option
Exercise
Price
Expiry Date
Balance at
30 June
2023
Balance at
30 June
2022
Directors & CEO
12/11/2019
30/10/2019
11,500,000
$0.1511
31/03/2023
Other Employees
12/11/2019
12/11/2019
6,000,000
$0.1511
31/03/2023
-
-
8,300,000
1,000,000
Director
30/11/2020
30/11/2020
1,500,000
$0.7277
31/03/2024
1,500,000
1,500,000
Directors, CEO &
Other Employees
2/12/2021
24/11/2021 24,050,000
$1.79
31/05/2025
21,950,000 24,050,000
Other Employees
29/8/2022
28/8/2022
1,500,000
$1.79
31/03/2025
1,500,000
-
44,550,000
24,950,000 34,850,000
All Options are unlisted and are exercisable into fully paid ordinary shares in the Company on a one for one basis.
Options granted during the year
On 29 August 2022, 1,500,000 Options were issued to an employee of the Company. The Options were granted at no cost
to the recipient and 50% vest on 31 May 2023 and 50% vest on 31 May 2024 provided that the recipient is an employee of
the Company at the date of vesting.
Options exercised during the year
During the year 9,300,000 Options (with an exercise price of $0.1511 each and expiry by 31 March 2023) were exercised
into Shares. A total of 6,379,806 Shares were issued during the year from the exercise of those 9,300,000 Options,
including 5,879,806 Shares issued following the cashless exercise of 8,800,000 Options. Refer to Note 14 for details
of the formula used for cashless exercise of Options.
Options lapsed/forfeited during the year
During the year 2,100,000 Options with an exercise price of $1.79 and expiring on 31 May 2025, lapsed or forfeited in
accordance with the terms of which they were issued.
See Note 17 for further details regarding movements in Options during the year.
c) Performance Rights (Rights) on issue
There were no Rights on issue during the reporting period or as at the date of this report.
d) Capital Management
Management effectively manages the Group’s capital and capital structure by assessing the Group’s financial risks through
regular monitoring of budgets and forecast cashflows. The Board’s policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain future development of the business, including through
the issue of shares. The Group’s capital is shown as issued capital in the statement of financial position. The Group is not
subject to any external capital restrictions.
59 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 15 – LOSS PER SHARE
Reconciliation of earnings to Statement of Profit or Loss and other
Comprehensive Income
Loss for year used to calculate basic EPS
a) Weighted average number of shares outstanding during the year used in
calculation of basic EPS
b) In accordance with AASB 133 “Earnings per Share” as potential ordinary
shares may only result in a situation where their conversion results in a
decrease on profit per share or increase in loss per share, no dilutive effect
has been taken into account.
NOTE 16 – RESERVES
a) Share-based payments reserve
Share based payment reserve
30 JUNE
2023
$
30 JUNE
2022
$
(9,049,457)
(14,115,728)
Number
Number
250,329,074
241,767,819
30 JUNE
2023
$
30 JUNE
2022
$
15,371,834
10,893,334
Movement associated with Options during the year:
Opening Balance
10,893,334
1,148,813
Granted – expense associated with vesting during the year
5,890,941
9,945,024
Exercised
Forfeited
Lapsed
Closing Balance
(544,060)
(200,503)
(336,098)
(532,283)
-
-
15,371,834
10,893,334
The share-based payments reserve records items recognised as an expense on the valuation of Options or Rights.
Refer Note 17 for further details regarding the movement in Options issued during the reporting period.
60
NOTE 17 – SHARE BASED PAYMENTS
UNLISTED OPTIONS
30 JUNE 2023
The number of Options and weighted average exercise prices are as follows for the reporting period presented:
Number of
Options
Weighted Average
Exercise Price Per Option
$
$
Opening Balance (1 July 2022)
34,850,000
10,893,334
Granted
Exercised
Forfeited
Lapsed
1,500,000
5,890,941
(9,300,000)
(544,060)
(2,100,000)
(336,098)
(532,283)
Closing Balance (30 June 2022)
24,950,000
15,371,834
$1.30
$1.79
$0.1511
$1.79
$1.79
$1.73
The weighted average remaining contractual life of Options at 30 June 2023 is 1.85 years.
During the year, an amount of $1,076,343 was transferred to retained losses, relating to prior period share-based payments
associated with:
> Options that were exercised into shares during the year ($544,060); and
> Write-back to retained earnings of share-based payments expense associated with previously issued Options that had
not yet vested and were lapsed during the year ($532,283).
During the year an amount of $5,554,843 was recorded to the Statement of Profit or Loss and Other Comprehensive
Income under ‘share based payments expense’ (30 June 2022: $9,945,024), associated with:
> vesting of Options granted during the year ($310,867); and
> vesting of Options granted during the year ($5,580,074); and
> write back to profit and loss, associated with previously issued Options that had vested and were forfeited during the
current year $336,098.
Options granted during the year
On 29 August 2022, 1,500,000 Options were issued to an Archer employee. The Options were granted at no cost to the
recipient and 50% vest on 31 May 2023 and 50% vest on 31 May 2024 provided that the recipient is an employee of the
Company at the date of vesting. The Options have an exercise price of $1.79 each and expiry date of 31 May 2025.
The total fair value at the grant date for the 1,500,000 options was $421,047, and this amount is being expensed to the
Statement of Profit or Loss and Other Comprehensive Income under ‘share based payments expense’ over the vesting
periods applicable to the Options. Accordingly, an amount of $310,866 has been included in the Statement of Profit or
Loss and Other Comprehensive Income under ‘share based payments expense’ for the year ended 30 June 2023.
The Options were granted pursuant to the Company’s Performance Rights and Share Option Plan (“Plan”), which was
initially approved by shareholders at the Annual General Meeting (“AGM”) held on 30 October 2019 and subsequently
re-approved by shareholders at the AGM held on 23 November 2022. The Plan was amended by resolution of the Board
9 March 2023, to include a Cashless Exercise Mechanism. Refer Note 14 for further details of the formula for calculating
the number of Shares to be issued on cashless exercise of Share Options.
61 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 17 – SHARE BASED PAYMENTS (CONTINUED)
Details of the Options granted during the year ended 30 June 2023 are set out below:
Issued to
Grant
Date
Issue
Date
Number of
Options
Granted
Option
Exercise
Price
1st
Vesting Date
2nd
Vesting Date
Expiry
Date
Employee
28/08/2022 29/08/2022 1,500,000
$1.79
31/05/2023
31/05/2024
31/05/2025
All Options are unlisted and are exercisable into fully paid ordinary shares in the Company on a one for one basis.
The fair value of the Options issued during the year was calculated by using a Black-Scholes option pricing model and was
estimated on the date of the grant using the following assumptions:
Share price at date of grant ($)
Historic volatility (%)
Risk free interest rate (%)
Expected life of Options (days)
Employee Options
0.75
91.4
3.24
1007
Historical volatility has been the basis for determining expected share price volatility as it is assumed that this is indicative
of future tender, which may not eventuate.
The life of the Options is based on the historical exercise patterns, which may not eventuate in the future.
Options exercised during the year
During the year 9,300,000 Options (with an exercise price of $0.1511 each and expiry by 31 March 2023) were exercised
into Shares. A total of 6,379,806 Shares were issued during the year from the exercise of those 9,300,000 Options,
including 5,879,806 Shares issued following the cashless exercise of 8,800,000 Options. Refer to Note 14 for details of
the formula used for cashless exercise of Options.
An amount of $544,060 was written-back to retained losses for the year ended 30 June 2023, relating to prior period
share-based payments expense associated with the Options that were exercised into shares during the reporting period.
Options forfeited or lapsed during the year
During the year 2,100,000 Options with an exercise price of $1.79 and expiring on 31 May 2025, were lapsed or forfeited in
accordance with the terms of which they were issued.
An amount of $532,283 was written-back to retained losses for the year ended 30 June 2023, relating to prior period
share-based payments expense associated with the 700,000 vested Options that lapsed during the year.
An amount of $336,098 was written-back to the ‘share-based payments expense’ on the Statement of Profit or Loss and
Other Comprehensive Income’ for the year ended 30 June 2023, relating to prior period share-based payments expense
associated with the 1,400,000 unvested Options that were forfeited during the year.
PERFORMANCE RIGHTS
There were no performance rights on issue at any time during the current or prior reporting periods.
62
NOTE 18 – DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS
SALE OF SUBSIDIARIES TO ITECH MINERALS LTD
On 12 April 2021, the Company announced that it had signed a legally binding share sale agreement with iTech Minerals
Pty Ltd (“iTech”) for the sale of all of the three subsidiary companies that held Archer’s remaining mineral tenements (the
“Transaction”).
At the Company’s General Meeting held on 30 August 2021, Archer shareholders approved the sale of the Company’s
remaining mineral exploration projects to iTech in return for 50 million iTech shares (Resolution 1) and the reduction of
capital by way of pro-rata in-specie distribution of the 50 million iTech shares to eligible Archer shareholders (Resolution 2).
The Transaction completed on 14 October 2021, with the Company receiving received 50 million iTech shares (with a value
of $0.20 per iTech share), which were disbursed to Archer shareholders by way of a pro-rata in-specie distribution on 15
October 2021. The Company did not hold any iTech shares following completion of the Transaction.
The following table represents the carrying amounts of net assets over which control was lost at the date of completion.
Carrying amounts of net assets over which control was lost
Assets
Non-current exploration assets held for sale
Liabilities
Net assets disposed
Consideration received:
Fair value of equity received in iTech Minerals Ltd – 50,000,000 shares
Total consideration received
Gain / (loss) on disposal group classified as held for sale assets
Equity
Total $
10,000,000
10,000,000
-
10,000,000
10,000,000
10,000,000
-
Return of capital by way of pro-rata in-specie distribution of iTech shares
(10,000,000)
The combined net operating loss of the three companies sold to iTech namely SA Exploration Pty Ltd, Pirie Resources Pty
Ltd and Archer Pastoral Company Pty Ltd are shown below:
Interest income
Impairment of exploration assets
Exploration expenditure expensed
Depreciation
Other expenses
Loss for year from discontinued operations before tax
30 JUNE
2023
$
30 JUNE
2022
$
-
-
-
-
-
-
89
-
(56,799)
(9,682)
(831)
(67,223)
Given the Transaction completed prior to 30 June 2022, no Statement of Financial Position has been provided for the
combined assets and liabilities of SA Exploration Pty Ltd, Pirie Resources Pty Ltd and Archer Pastoral Company Pty Ltd.
63 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 19 – CASH FLOW INFORMATION
CONTINUING OPERATIONS
a) Reconciliation of cash flows from continuing operations
with loss after income tax
Loss after income tax
Depreciation (net of capitalised depreciation)
Amortisation of intangibles
Fair value loss on financial assets (Note 9)
Share based payments
Gain on sale of non-current assets – sale to ChemX
Gain on sale non-current assets - plant and equipment
Changes in assets and liabilities:
- Increase in trade and other receivables
- Increase in trade and other payables
- Increase in employee entitlements
30 JUNE
2023
$
30 JUNE
2022
$
(9,049,457)
(14,048,505)
34,395
19,344
37,829
12,577
848,391
1,448,062
5,554,843
9,945,024
-
-
(464,224)
(45,000)
(906,624)
(1,161,007)
436,959
36,126
99,288
10,473
Net cash used in operating activities from continuing operations
(3,026,023)
(4,165,483)
b) Non-Cash Financing and Investing Activities
There were no non-cash investing or financing activities undertaken during reporting period.
B. DISCONTINUED OPERATIONS
a) Reconciliation of cash flows from
discontinued operations
Loss after income tax (Note 18)
Depreciation
Impairment of exploration assets
Changes in liabilities:
- Decrease in trade and other receivables
- Decrease in trade and other payables
Net cash used in discontinued operating activities
Net cash used in discontinued investing activities
Total cash used in discontinued operations
64
30 JUNE
2023
$
-
-
-
-
-
-
-
-
30 JUNE
2022
$
(67,223)
9,682
-
8,324
(85,894)
(135,111)
-
(135,111)
65 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 20 – CONTINGENT ASSETS, LIABILITIES & COMMITMENTS
Sugarloaf Land Option
In November 2018 Archer announced the sale of its Sugarloaf farmland for $1.35 million. The transaction settled on 1 July
2019 with Archer receiving the $1.35 million sale proceeds in July 2019. The purchaser of the farmland has granted Archer
an option to buy back approximately 30% of the Sugarloaf farm land, which may be required for the construction of the
Sugarloaf Graphite Processing Facility (“Land Option”). The Land Option may be exercised by Archer any time before 31
December 2023. The Land Option was not assigned to iTech Minerals Ltd.
ChemX Materials Limited – royalty
In June 2021 Archer announced the completion of the sale of tenements to ChemX Materials Limited. In addition to the
consideration already received, Archer is also entitled to a 2% Net Smelter Return royalty on the value of all minerals
(excluding graphite) extracted from the tenements sold to ChemX.
Leigh Creek Project bonus payment
In August 2020, the Company sold the Leigh Creek Magnesite Project (“Project”) to Magmetal Tech Pty and Witchimag
Pty Ltd (“Witchimag”). Under the terms of the Project sale agreement, Archer is entitled to a bonus payment if Witchimag
lists on a stock exchange after completion. The bonus payment is equal to 5% of the value of the consideration paid to the
owners of Witchimag under the listing (“bonus payment”). In June 2022, Canadian Stock Exchange listed Crest Resources
Inc (“Crest”) announced that it had entered into a Letter of Intent to acquire a 69.5% interest in Witchimag. If Crests
acquisition of Witchimag proceeds, then the Company may become entitled to the bonus payment.
The Group did not have any further contingent assets or liabilities as at 30 June 2023.
NOTE 21 – RELATED PARTY TRANSACTIONS
a) Subsidiaries
Interests in subsidiaries are disclosed in Note 10.
b) Key Management Personnel
Disclosures relating to Key Management personnel are set out in Note 5 and the Remuneration Report contained within
the Directors’ Report.
c) Other transactions with related parties
Piper Alderman lawyers were paid a total of $14,172 (2022: $32,725) for legal services rendered to the Group. Mr English is
a Consultant at Piper Alderman lawyers.
Damien Connor Consulting Pty Ltd were paid a total of $170,550 (2022: $174,243) for Financial and Company Secretarial
consulting services to the Group. Mr Connor is a director of Damien Connor Consulting Pty Ltd.
Dr Choucair is a co-inventor of the 12CQ intellectual property licenced to Archer under a Licence Agreement with
The University of Sydney. During the year Dr Choucair was not paid by The University of Sydney (2022: $4,710).
66
NOTE 22 – FINANCIAL INSTRUMENTS
a) Financial Risk Management Policies
The Group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and
payables.
b) Interest Rate Risk
Interest rate risk is managed with a mixture of fixed and floating rate cash deposits. It is the policy of the group to keep
surplus cash in high yielding deposits.
i) Treasury Risk Management
The Board meets on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in
the context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks
to assist the Group in meeting its financial targets, whilst minimising potential adverse effects on financial performance.
ii) Financial Risk Exposure and Management
The main risk the group is exposed to through its financial instruments is interest rate risk.
c) Sensitivity Analysis
Interest Rate Sensitivity Analysis
At 30 June 2023, the effect on loss and equity as a result of changes in the interest rate, with all other variables remaining
constant would be as follows:
Change in loss
- Increase in interest rates by 2%
- Decrease in interest rates by 2%
Change in equity
- Increase in interest rates by 2%
- Decrease in interest rates by 2%
2023
$
2022
$
450,903
500,903
(450,903)
(500,903)
450,903
500,903
(450,903)
(500,903)
d) Net Fair Value of Financial Assets and Liabilities
The net fair value of cash and cash equivalent and noninterest bearing monetary financial assets and financial liabilities of
the consolidated entity approximate their carrying value. The net fair value of other monetary financial assets and financial
liabilities is based on discounting future cash flows by the current interest rates for assets and liabilities with similar risk
profiles. The balances are not materially different from those disclosed in the balance sheet of the consolidated entity.
e) Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised
financial assets, is the carrying amount, net of any provisions for doubtful debts of those assets, as disclosed in the balance
sheet and notes to the financial statements. The consolidated entity does not have any material credit risk exposure to any
single debtor or group of debtors under financial instruments entered into by the consolidated entity.
f) Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents)
to be able to pay debts as and when they become due and payable. The Group manages liquidity risk by maintaining
adequate cash reserves by continuously monitoring actual and forecast cash flows and matching the maturity profiles of
financial assets and liabilities. Trade payables are generally payable on 30-day terms.
67 | Archer Materials Limited 2023 Annual Report
FINANCIAL INFORMATION
Notes to the Financial Statements for the year ended 30 June 2023
NOTE 22 – FINANCIAL INSTRUMENTS (CONTINUED)
Remaining contractual maturities
The following tables detail the Group’s remaining contractual maturity for its financial instrument liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Consolidated - 30 June 2023
%
$
$
-
-
-
$
-
-
-
$
-
-
-
785,719
9,097
794,816
Non-interest bearing
Trade and other payables
Interest-bearing - variable
Lease liability
Total
4.1%
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Consolidated - 30 June 2022
%
$
Non-interest bearing
Trade and other payables
Interest-bearing - variable
Lease liability
Total
348,759
10,652
359,411
4.1%
$
-
9,097
9,097
$
-
-
-
$
-
-
-
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
g) Market risk
Foreign currency risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in
a currency that is not the Company’s functional currency. The Company operates internationally and is exposed to foreign
exchange risk arising from various currency exposures, primarily with respect to the United States Dollar (USD).
Price risk
The Group is exposed to price risk associated with the investments in listed company shares and options.
68
NOTE 23 – ARCHER MATERIALS LIMITED PARENT COMPANY INFORMATION
PARENT ENTITY
ASSETS
Current assets
Other financial assets
Investments in subsidiaries
Other Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-current liabilities
Loans to subsidiaries
TOTAL LIABILITIES
EQUITY
Issued capital
Share based payment reserve
Retained losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
(Loss) / Profit for the year
Other comprehensive income
TOTAL (LOSS) / PROFIT
30 JUNE
2023
$
30 JUNE
2022
$
25,885,383
28,138,988
874,879
1,708,806
1,971
1,802
446,671
315,310
27,208,904
30,164,906
1,173,684
34,983
-
695,186
50,419
-
1,208,667
745,605
47,799,119
47,723,569
15,371,834
10,893,334
(37,170,716)
(29,197,602)
26,000,237
29,419,301
(9,048,997)
(4,396,521)
-
-
(9,048,997)
(4,396,521)
Guarantees in relation to relation to the debts of subsidiaries
Archer Materials Limited has not entered into a deed of cross guarantee with its wholly-owned subsidiaries Archer Energy
& Resources Pty Ltd, Carbon Allotropes Pty Limited, Archer IOCG Pty Ltd and Archer Metals Pty Ltd.
Contingent assets, liabilities and commitments
Refer Note 20 for details of contingent assets, liabilities and commitments as at 30 June 2023.
NOTE 24 – EVENTS SUBSEQUENT TO REPORTING DATE
The Directors are not aware of any other matter or circumstance that has arisen since the end of the year that has significantly
affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in
future financial years.
69 | Archer Materials Limited 2023 Annual Report
70
Directors
Declaration
The Directors of the Company declare that:
1. the Financial Statements and Notes as set out on pages 42 to 69 are in accordance with the Corporations Act 2001 and:
a) comply with Australian Accounting Standards and International Financial Reporting Standards as disclosed in Note 1; and
b) give a true and fair view of the financial position as at 30 June 2023 and of the performance for the period ended on that date.
2. the Executive Chairman and the Chief Financial Officer have each declared that:
a) the financial records of the Company for the year ended have been properly maintained in accordance with section 286
of the Corporations Act 2001
b) the financial statements and notes for the financial year comply with the Accounting Standards; and
c) the financial statements and notes give a true and fair view;
3. in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Greg English
Executive Chairman
ADELAIDE
Dated this 24th day of August 2023
71 | Archer Materials Limited 2023 Annual Report
INDEPENDENT AUDITOR’S REPORT
Independent
Auditors Report
72
73 | Archer Materials Limited 2023 Annual Report
Grant Thornton Audit Pty Ltd Grant Thornton House Level 3 170 Frome Street Adelaide SA 5000 GPO Box 1270 Adelaide SA 5001 T +61 8 8372 6666 w www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the Members of Archer Materials Limited Report on the audit of the financial report Opinion We have audited the financial report of Archer Materials Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year ended on that date; and b 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. INDEPENDENT AUDITOR’S REPORT
74
Grant Thornton Audit Pty Ltd Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Recognition of research and development tax incentive – Notes 1 & 8 The Group receives a research and development (R&D) refundable tax offset from the Australian government, which represents 48.5 cents in each dollar of eligible annual R&D expenditure if its turnover is less than $20 million per annum. Registration of R&D Activities Application is filed with AusIndustry in the following financial year and, based on this filing, the Group receives the incentive in cash. Management reviewed the Group’s total R&D expenditure to estimate the refundable tax offset receivable under the R&D tax incentive legislation. This area is a key audit matter due to the size of the accrual and the degree of judgment and interpretation of the R&D tax legislation required by management to assess the eligibility of the R&D expenditure under the scheme. Our procedures included, amongst others: • obtaining through discussions with management and understanding of the process to estimate the claim; • utilising an internal R&D tax specialist to; − review the expenditure methodology employed by management for consistency with the R&D tax offset rules; and − consider the nature of the expenses against the eligibility criteria of the R&D tax incentive scheme to form a view about whether the expenses included in the estimate were likely to meet the eligibility criteria; • comparing the nature of the R&D expenditure included in the current year estimate to the prior year’s claim; • testing a sample of R&D expenditure and agreeing to supporting documentation to ensure appropriate classification, the validity of the claimed amount and eligibility against the R&D tax incentive scheme criteria; • assessing the appropriateness of the financial statement disclosures. Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. 75 | Archer Materials Limited 2023 Annual Report
Grant Thornton Audit Pty Ltd In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This description forms part of our auditor’s report. Report on the remuneration report 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. Grant Thornton Audit Pty Ltd Chartered Accountants J L Humphrey Partner – Audit & Assurance Adelaide, 24 August 2023 Opinion on the remuneration report We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Archer Materials Limited, for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Additional
information
76
Compiled
as at
16 August
2023
Additional information required by the ASX Listing Rules and not disclosed elsewhere in
this report is set out below.
Shareholder information
Substantial Shareholders
There are no substantial shareholders in the Company with 5% or greater relevant interest in
securities of the Company.
Distribution of equity securities
Number of security holders by size of holding:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Ordinary Shares
Unlisted Options
2,615
4,186
1,747
2,593
379
11,520
-
-
-
-
11
11
Unmarketable
Parcels
Minimum
parcel size
Holders
Ordinary
Shares
971 shares
2,126
1,080,865
Minimum $500.00
parcel at $0.5150
per share
Voting Rights
The voting rights attaching to each class of equity securities is set out below:
(a) Ordinary Shares: On a show of hands, every person present who is a member or proxy,
attorney or representative of a member has one vote and upon a poll each share shall
have one vote.
(b) Unlisted Options: No voting rights.
77 | Archer Materials Limited 2023 Annual Report
Shares
% Issued capital
Additional
Information
Twenty largest holders of each class of quoted equity security
Ordinary Shares
Rank
Name
1
BNP PARIBAS NOMS PTY LTD
GDE EXPLORATION (SA) PTY LTD
CITICORP NOMINEES PTY LIMITED
DR MOHAMMAD CHOUCAIR
INVERTON PTY LTD
GDE EXPLORATION (SA) PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
9,074,665
7,471,798
5,407,817
3,854,927
3,791,072
3,006,719
2,705,838
MR FORBES VALE SPRAWSON + MRS MARGARET MARY SPRAWSON
2,300,000
MR ROGER EDWARD KOCH
MR BASIL CATSIPORDAS
KOOYAP PTY LTD
2,150,000
2,000,000
1,896,534
BNP PARIBAS NOMINEES PTY LTD
1,796,060
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NETWEALTH INVESTMENTS LIMITED
MR ALISTAIR CHARLES JACKSON
MRS DEBORAH ANNETTE ROSSITER
1,795,853
1,626,230
1,547,347
1,463,679
MR STEPHEN MAHNKEN + MS DIOR MAHNKEN
1,428,571
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
MRS KAREN DRISCOLL + MR RAYMOND DRISCOLL
19
WADE BOLLENHAGEN
20
MR JARROD DRISCOLL
1,316,970
1,218,300
1,132,957
3.56
2.93
2.12
1.51
1.49
1.18
1.06
0.90
0.84
0.78
0.74
0.70
0.70
0.64
0.61
0.57
0.56
0.52
0.48
0.44
Total
56,985,337
22.36
Corporate Governance Statement
For the Year Ended 30 June 2023
The Corporate Governance Statement for the Group has been released as a separate document and is located in the Corporate
Governance section of the Company’s website at: www.archerx.com.au
78
Corporate
directory
Directors
Greg English
(Executive Chairman)
Kenneth Williams
(Independent Non-Executive Director)
Bernadette Harkin
(Independent Non-Executive Director
Chief Executive Officer
Dr Mohammad Choucair
Held the position of Chief Executive Officer during
the financial year and as at the date of this report.
Company Secretary
Damien Connor
Held the position of Company Secretary during the
financial year and as at the date of this report.
Registered Office
Lot Fourteen, Frome Road
ADELAIDE SA 5000
Telephone: +61 8 8272 3288
Email: hello@archerx.com.au
Share Registry
Computershare Investor Services Pty Ltd
Level 5, 115 Grenfell Street
ADELAIDE SA 5000
Auditors
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
ADELAIDE SA 5000
Australian Securities Exchange
The Company is listed on the Australian Securities
Exchange
ASX CODE: AXE
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79 | Archer Materials Limited 2023 Annual Report
Archer Materials Limited
(ABN 64 123 993 233)
Lot Fourteen,
Frome Road
ADELAIDE SA 5000
Contact:
P: +61 8 8272 3288
E: hello@archerx.com.au
archerx.com.au