Experience world class satellite solutions
2 0 2 3
A N N U A L
R E P O R T
Beam Communications Holdings Limited
DIRECTORS
Mr Simon Lister Wallace
Mr Michael Ian Capocchi
Mr Mark Allan Chartres
CO MPANY SECRETA RY
Mr Dennis Frank Payne
REGISTERED OFFICE &
PR INCIPAL PLACE
OF BUSIN ESS
Beam Communications
Holdings Limited
Unit 5/8 Anzed Court
Mulgrave, VIC, 3170
Ph: (03) 8561 4200
Email: investor@beamcommunications.com
SHARE REGI STER
Link Market Services Ltd
Locked Bag A14
Sydney South, NSW, 1235
Ph: 1300 554 474
AUDI TO R
RSM Australia Partners
Level 21, 55 Collins Street
Melbourne, VIC, 3000
Ph: (03) 9286 8000
SOLICITORS
Thomson Geer
Level 23, Rialto South Tower
525 Collins Street
Melbourne, VIC, 3000
Ph: (03) 8080 3500
STOCK EXCHANGE
LISTIN G
Beam Communications Holdings
Limited shares are listed on the
Australian Securities Exchange
(ASX code: BCC)
CORPORATE
GOVE RNAN CE
STATEMENT
The Corporate Governance
statement can be found on the
investors page at
https://www.beamcommunications.
com/investors/corporate-governance
EMAIL
investor@beamcommunications.com
ASX OFFICE
Based in Melbourne
ASX CODE
BCC
As a market leader,
Beam excels to meet
the emerging needs
of our customers
in mobile satellite
technology, tracking,
monitoring and
communication for
over two decades
C O N T E N T S
Company Directory
Chairman’s Report
Directors’ Report
Auditor’s Independence Declaration
Consolidated Financial Statements
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
Directors’ Declaration
Auditor’s Report
Security Holder Information
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W O R L D C L A S S
• Satellite Solutions • Innovative Technology • Customer Service
1
BEAM COMMUNICATIONS HOLDINGS LIMITED C H A I R M A N ' S
R E P O R T
Dear Shareholders,
I am delighted to address you today following a remarkable year
of accomplishments for our Company.
As Chairman, I am immensely proud to share that we have
achieved record-breaking results driven by strong sales and rising
recurring revenues across Beam’s key businesses. Our collective
efforts have not only propelled us to new financial heights but
have also solidified our leadership position in the global Mobile
Satellite Services (MSS) industry, thereby putting us at the
forefront of a rapidly growing market. The investment in our
sector and priorities being demonstrated by large global players is
testament to the opportunities that continue to exist in satellite
communications.
One of the driving forces behind our remarkable performance
has been the furtherance of an already impressive reputation
for innovation. We have relentlessly invested in research and
development to create products and services that not only meet,
but exceed, the expectations of our customers. Our ability to
anticipate market trends and evolving needs has allowed us to
stay ahead of the curve, resulting in products and technologies
that are truly cutting-edge.
Pleasingly, our success to date is not confined to a single market
or offering. We have expanded our global footprint and product
range, tapping into new markets and regions. This strategy has
not only contributed to our strong financial performance but has
also enhanced our brand presence and reputation on a global scale.
The full Directors’ Report contains more extensive information on
the Group’s performance in the financial year, but I would like to
present the following highlights.
P R O F I T
P E R F O R M A N C E
A N D M A J O R
I M P A C T S
Group revenue increased a significant 67.1%
year-on-year (YoY) in FY23 to $39.6 million, while
earnings before interest, tax, depreciation and
amortisation (EBITDA) increased to $4.3 million
(FY22: $1.5 million) and net profit after tax (NPAT) improved
to $2.1 million (FY22: loss of $177 thousand). Beam’s revenue,
EBITDA and NPAT are at their highest levels in the Company’s
history. On any measure, this has been a remarkable year.
One of the key contributors to these objectively impressive
results is the successful launch of the next-generation portable
satellite hotspot device, Iridium GO! exec®, with orders running
well ahead of schedule. Beam secured a US$12 million five-year
contract with Iridium Communications Inc (NASDAQ: IRDM) to
design, build and supply this world-first innovation, which is sold
globally to the enterprise, government and consumer markets.
Sales of Beam’s other equipment also contributed to the record
results. This includes docking units, satellite terminals, accessories
and the original Iridium GO!® hotspot, which was launched in
2014 and continues to enjoy strong market demand.
Importantly, Beam’s recurring revenues have increased 39.6% to
$1.6 million in FY23. This increase is driven by growth in ZOLEO
subscriptions in Australia and New Zealand with the total number
of net subscribers increasing by two-thirds compared to over
6,200 as of 30 June 2023. Beam receives a royalty payment for
each ANZ subscriber. Recurring revenues are also being bolstered
by the recently awarded Telstra subsidiary deal with MTData.
Another contributor to Beam’s strong financial performance
is the growth of SatPhone Shop, a wholly owned subsidiary of
Beam and the largest Telstra satellite equipment provider. The
business recorded a 6.7% increase in sales in FY23 compared to
the previous year to just over $2.5 million due to strong demand
for satellite equipment as Beam benefited from continued strong
growth in the mobile satellite services market.
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BEAM COMMUNICATIONS HOLDINGS LIMITED
O U T L O O K A N D P R O J E C T S
S T A F F A N D B O A R D
The momentum from FY23 is anticipated to carry over into the
new financial year as Beam is well positioned to benefit from the
significant uptick in the MSS market and from associated demand
for its range of world-first innovative offerings.
In keeping with our tradition of innovation, Beam is developing
a further Iridium Certus® offering following the successful launch
of the Iridium GO! exec®, and the development of a new Beam
branded device that will also generate recurring subscription
revenues in addition to hardware sales.
Market awareness about the importance and utility of satellite
services has recently been bolstered by high-profile brands like
Apple and Starlink, which are transforming what was regarded
as a niche application into more of a mainstream offering.
Beam’s products and services do not compete directly with these
companies and will benefit from the expected expansion in the
MSS market, which is driven by the increasing demand for reliable
and secure connectivity, particularly for data, in remote and
hard-to-reach areas where access to terrestrial networks is limited.
The sales performance of Iridium GO! exec® and other Beam
innovations are symptomatic of this uptrend, which also bodes
well for the continued growth of our recurring revenues from
ZOLEO subscriptions and satellite airtime sales.
Another positive driver for FY24 is the SatPhone Shop business,
which is leveraged to the organic growth in the MSS sector and
from rising demand for Beam’s solutions. Moreover, the business
is strategically important to Beam as it gives it a direct channel
to market.
The devotion and tenacity of our staff is a major reason behind
our success, and I cannot express enough my personal and
professional admiration and appreciation to everyone at Beam.
The fact that a small company like ours can develop so many
world-first innovations over the years from our humble offices
at Mulgrave, Victoria, is a testament to the quality of talent and
dedication in the team.
Even as we hand down record levels of revenue and earnings
from the commercial success of our products and services
portfolio, our dedicated team is already gearing up to launch new
innovations that will provide an important additional tailwind
for growth.
Beam did not issue new shares during the year but did issue
200,000 sign-on options to director Mark Chartres with an
exercisable price of $0.53 and expiring on 1 February 2025.
Finally, I would like to end by congratulating everyone in the
Beam family for achieving an outstanding full year result and for
playing an invaluable part in building a successful and innovative
company that punches above its weight in so many respects.
I have confidence the value of the company will transition to
reflect the recent and forecast performance of the company,
providing growth to shareholders and the capital position of
the company.
Mr Simon Wallace
Chairman
30 August 2023
2 0 + Y E A R S
• Experience • Expertise • Excellence
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BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam's
experience
fosters and
co-develops
partnerships
to deliver
world class
business
solutions
D I R E C T O R ' S
R E P O R T
The Directors present their report,
together with the financial statements,
on the consolidated entity (referred
to hereafter as the 'Group' or 'Beam')
consisting of Beam Communications or
Beam Communications Holdings Limited
(referred to hereafter as the 'Company'
or 'Parent Entity') and the entities it
controlled at the end of, or during, the
year ended 30 June 2023.
D I R E C T O R S
The following persons were directors of
Beam Communications Holdings Limited
during the whole of the financial year and
up to the date of this report, unless
otherwise stated:
Mr Simon Lister Wallace
(Non-executive chairman)
Mr Michael Ian Capocchi
(Managing director)
Mr David Paul James Stewart
(Non-executive director,
resigned 30 September 2022)
Mr Mark Allan Chartres
(Non-executive director)
C O M P A N Y S E C R E T A R Y
Mr Dennis Frank Payne
L E A D I N G
• Innovation • Communication • Connection
S I M O N L I S T E R W A L L A C E
Non Executive Chairman
M I C H A E L I A N C A P O C C H I
Managing Director
M A R K A L L A N C H A R T R E S
Non Executive Director
Age: 49
Age: 52
Age: 44
Mark Chartres was appointed to the
Board of Directors as an Independent
Non-Executive Director, commencing on
1 February 2022. Mark has spent nearly
two decades professionally engaged
in financial markets, including with
Macquarie Group and presently Shaw
and Partners. Mark’s knowledge of our
business, financial acumen and investment
experience will materially augment
the Board’s skills matrix.
Simon Wallace is a corporate lawyer and,
based in Melbourne, having previously
been an equity partner of the largest law
firm in the world, he is now the founder
& Managing Partner of his own boutique
legal practice.
With extensive legal and commercial
proficiency, and particular expertise in
the areas of project finance, fundraising
and corporate governance, Simon has
substantial professional experience in the
areas of investment banking, structured
and direct equity investments, product
formulation and sales.
Simon is admitted to practice as a barrister
and solicitor of the Supreme Court of
Victoria, the Federal Court of Australia and
the High Court of Australia, and he holds
degrees from the Australian National
University in both Law and Commerce.
Since its inception in August 2018,
Simon has been a Director of Zoleo Inc.
the joint venture entity of which the
Group is a 50% partner with Roadpost
Inc of Canada.
Simon Wallace has been a Director of
Beam Communications Holdings Limited
since 5 February 2015 and was elected
Chairman on 22 December 2016.
Michael Capocchi has over 25 years’
experience in the ICT industry and has
held several senior management positions.
Michael is based in Chicago, USA, which
places him closer to the important centres
for satellite communications in the USA
and UK/Europe.
Michael joined Beam Communications
Holdings Limited as the General Manager
of the subsidiary, Beam Communications
Pty Ltd, in 2003 and was appointed
as Managing Director of Beam
Communications Holdings Limited in
March 2008.
Prior to joining the Group, Michael was
the Regional Sales Director for Iridium
Satellite LLC, directly managing the sales,
distribution and channel management
strategies for the Asia-Pacific region.
Michael has held senior management
positions as the Sales and Marketing
Director of Pacific Internet responsible
for establishing the Australian operations
of the company and with Optus
Communications.
Since its inception in August 2018,
Michael has been a Director of Zoleo
Inc. the joint venture entity of which the
Group is a 50% partner with Roadpost Inc
of Canada.
Michael Capocchi is an integral part of
the Group’s business, including managing
the day to day operations of the group
which occasions extensive domestic and
international travel when possible.
B E A M C O M M U N I C A T I O N S H O L D I N G S L I M I T E D
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B E A M C O M M U N I C A T I O N S H O L D I N G S L I M I T E D
D I R E C T O R S H I P S O F O T H E R L I S T E D C O M P A N I E S
P R O F I T A N D P E R F O R M A N C E
C A S H A N D F U N D I N G
No Director of Beam Communications Holdings Limited has been a director of a listed company in the three years immediately before the end of the
financial year.
P R I N C I P A L A C T I V I T I E S
The activities of the Group and its controlled entities during year were the development and marketing of a range of communication products and
services, mainly satellite based.
D I V I D E N D S
There were no dividends paid, recommended or declared during the current financial year.
R E V I E W O F O P E R A T I O N S
The profit for the Group after providing for income tax amounted to $2,075,148 (30 June 2022: loss of $176,805).
A summary of the result for the year is as follows:
Revenue
Other income
Deduct:
Cost of goods sold, research & development,
administrative marketing and corporate expenses
Operating profit before amortisation, depreciation, interest and tax
Deduct:
Amortisation
Depreciation
Interest
Operating profit
Net tax credit/(expense)
Net profit/(loss) for year
Total comprehensive income/(loss) for year
2023
($000)
39,552
541
(35,829)
4,264
(1,987)
(200)
(152)
1,925
150
2,075
2,075
2022
($000)
23,663
665
(22,851)
1,477
(1,006)
(199)
(151)
121
(297)
(176)
(176)
The company achieved its third consecutive year of record revenue
in the financial year ended 30 June 2023 (FY23) driven by the
launch of the Iridium GO! exec® device and growing global demand
for its range of mobile satellite solutions.
Group operating revenue increased 67.1% in FY23 to $39.6 million,
while earnings before interest, tax, depreciation and amortisation
(EBITDA) increased to $4.3 million (FY22: $1.5 million) and net
profit after tax (NPAT) improved by $2.3 million to $2.1 million
(FY22: loss of $177 thousand). Beam’s revenue, EBITDA and NPAT
are at their highest levels in the Company’s history.
Beam’s cash holdings at 30 June, 2023, were $5 million and it had a
further $1.2 million in available but undrawn debt facilities.
The Company posted a positive operating cash flow of $2.4 million
in FY23, which was driven by the further unwinding of trade
working capital following the successful launch of the Iridium
GO! exec® device.
Beam capitalised $3.3 million in development costs primarily
relating to ZOLEO and Iridium GO! exec®, and received the federal
government’s R&D tax credit of $884,437 in the last financial year.
One of the key contributors to the solid results is the successful
launch of the next-generation portable satellite hotspot device,
Iridium GO! exec, with orders running well ahead of schedule.
Beam secured a US$12 million five-year contract with Iridium
Communications Inc (NASDAQ: IRDM) to design, build and supply
this world-first innovation, which is sold globally to the enterprise,
government and consumer markets.
Sales of Beam’s other equipment also contributed to the record
results. This includes docking units, satellite terminals, accessories
and the original Iridium GO!® hotspot, which was launched in
2014 and continues to enjoy strong market demand.
Importantly, Beam’s recurring revenues have increased 39.6% to
$1.6 million in FY23. This increase is driven by growth in ZOLEO
subscriptions in Australia and New Zealand with the total number
of net subscribers increasing by two-thirds compared to over 6,200
as of 30 June 2023. Beam receives a royalty payment for each
ANZ subscriber.
Group recurring revenue was also bolstered by the uplift in airtime
sales, particularly after Beam secured a contract to provide airtime
services to Telstra Group Limited’s (ASX: TLS) subsidiary, Mobile
Tracking and Data Pty Ltd, which is worth in excess of $1.2 million
over two years (the contract rolls over yearly, unless otherwise
ended, after the two-year minimum term).
Additionally, the launch of ZOLEO into the European region
gained further traction in FY23 as the seamless satellite messaging
solution was made available across all 30 countries in the European
Economic Area (EEA) compared with just five countries in the
region at its initial launch in May last year.
Another contributor to Beam’s pleasing financial performance
is the growth of SatPhone Shop, a wholly owned subsidiary of
Beam and the largest Telstra satellite equipment provider. The
business recorded a 6.7% increase in sales in FY23 to just over
$2.5 million due to strong demand for satellite equipment as
Beam benefited from continued strong growth in the mobile
satellite services market.
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BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
O U T L O O K A N D P R O J E C T S
M A T E R I A L B U S I N E S S R I S K S T O S T R A T E G Y A N D F I N A N C I A L P E R F O R M A N C E
Additionally, sales and subscriptions of the seamless satellite
communicator, ZOLEO, continues to grow. Beam believes that
royalty payments to the Company will continue to increase
year-on-year over the medium-term, if not longer-term. The
Company’s positive outlook for ZOLEO stems in part from the
recent introduction of the ZOLEO Track service, which will open
new opportunities to sell the solution to the global B2B market
and increase Average Revenue per User (ARPU). The feature allows
organisations to monitor, manage and locate staff in real-time to
improve safety and operational efficiency of their staff.
Further, ZOLEO Track is likely to increase enterprise and
government subscriptions to the Location Share+ value-added
service, which is in addition to the monthly ZOLEO subscription
plan. This is because when both services are active, customers can
also receive automatic location updates, check-ins, SOS events and
detailed breadcrumb track points.
Meanwhile, Beam is expecting sales and subscriptions of ZOLEO
in Europe to rise materially in FY24 as several key retailers in the
region have started carrying and promoting the product. The recent
availability of German language support will also help ZOLEO
gain stronger traction in countries like Germany, Austria and
Switzerland.
Another positive driver for FY24 is the SatPhone Shop business,
which is perfectly placed to benefit from organic growth in
the MSS sector and from rising demand for Beam’s solutions.
Moreover, the business is strategically important to Beam as
it gives it a direct channel to market. With the launch of a new
website and a variety of new products, we anticipate
further opportunities in the B2B space.
The momentum from FY23 is expected to carry over into the new
financial year as Beam is well positioned to benefit from the ongoing
growth of the Mobile Satellite Services (MSS) market and from
associated demand for its range of world-first innovative offerings.
The Company is forecasting CAPEX of circa $3 million in FY24,
which relates to two new projects that Beam is undertaking – a
further Iridium Certus® offering following the successful launch
of the Iridium GO! exec®, and the development of a new Beam
branded device that will also generate recurring subscription
revenues in addition to hardware sales.
Market awareness about the importance and utility of satellite
services has recently been bolstered by high-profile brands like
Apple and Starlink, which are transforming what was regarded as
a niche application into more of a mainstream offering. Beam’s
products and services do not compete directly with these
companies and will benefit from the expected expansion in the
MSS market.
The global MSS industry is forecast to expand at around 7%
compound annual growth rate (CAGR) from 2023 to 2030 to hit
US$9.7 billion, according to Grand View Research1. This growth
is driven by the increasing demand for reliable and secure
connectivity, particularly for data, in remote and hard-to-reach
areas where access to terrestrial networks is limited.
The sales performance of Iridium GO! exec is symptomatic of this
uptrend. Beam completed delivery of the first year’s minimum
commitment against its five-year contract in the first six months
of the launch of the device. Beam believes that the US$12 million
minimum order for the hotspot device will be exceeded before the
end of the contract and further anticipates that it will have fulfilled
circa 80% of the contract by end of the current financial year.
Meanwhile, there are few signs of a slowdown in global demand for
the original Iridium GO!® device, even though it was launched nine
years ago. This device is aimed at a different user demographic to
the Iridium GO! exec®, and the long lifecycle of satellite equipment
bolsters our confidence about the sustained growth of these
innovations.
A C C E S S T O C A P I T A L A N D D E B T
Beam’s ability to fund future growth and profitability may be affected
by its ability to access funding from equity investors, credit markets
and other financial institutions. This access is dependent on several
factors, such as the Company’s financial performance, but may also
include factors that are outside its control, such as general economic
and market conditions. There is a risk that the Company may be
unable to access debt or equity funding when required on favourable
terms, or at all.
R E G U L A T O R Y A N D C O M P L I A N C E R I S K S
The telecom and satcom industries are highly regulated in each
country. These rules and regulations allowing access to services
may change with little warning and can have a positive or negative
impact on Beam’s financial performance. Further, Beam has to ensure
it receives the necessary approvals and meet required industry
standards in all countries before it can sell its hardware in those
markets.
C Y B E R S E C U R I T Y R I S K S
Beam’s IT systems contain sensitive information on its products and
technology, along with customer and third-party information. While
Beam exercises due care in protecting its data, it is possible that these
measures will not be enough to prevent unauthorised access to its
systems and technologies. Such a breach may expose the Company
to financial loss, reputational damage and legal consequences,
including claims for compensation by customers or penalties by
telecommunications regulators or other authorities.
Beam has identified a number of material risks that may affect the
success of the business over the coming periods, including some that
are not directly within its control. The Company’s risk management
approach involves the ongoing assessment, monitoring and reporting of
risks that could impede its progress in delivering its strategic priorities.
The key risks are outlined below (not ranked in any order), although
it is important to note that as Beam’s business continues to grow and
evolve, these risks and the Company’s risk profile
may change.
F O R E I G N E X C H A N G E R I S K
Beam’s equipment and services are sold around the world and most
of its revenue is derived in US dollars. This exposes the Company
to fluctuations in exchange rates, which are driven by market forces
outside its control. A change in the exchange rate to the Australian
dollar may have a positive or negative effect on the business.
L O S S O F K E Y P E R S O N N E L
The Company’s ability to be productive, profitable and competitive,
and to implement its growth strategy, depends on the continued
employment and performance of senior executives and management.
Beam runs a globally complex operation and its performance also
depends on its ability to attract and retain skilled workers with the
relevant industry and technical experience. The loss of key personnel
or the inability to attract additional personnel may have an adverse
impact on its financial and operating performance. To mitigate some of
this risk, Beam has insurance cover for its Managing Director and Chief
Executive Officer, Michael Capocchi.
P A R T N E R S H I P R I S K S
Beam has established partnerships with most of the world’s largest
satellite operators, particularly Iridium Communications. A breakdown
of such partnerships is likely to impede on the Company’s ability to
offer hardware and services to Beam’s clients and such an outcome
may have a material and negative impact on its financial performance.
T E C H N O L O G I C A L C H A N G E S A N D C O M P E T I T I O N
The industry that Beam operates in is subject to constant technological
change. These changes often bring new opportunities and competitive
threats. To ensure the continual growth and profitability of the
business, Beam must constantly be vigilant of these changes and invest
in improving its existing offering and developing new innovations.
C H A N N E L P A R T N E R S U P P O R T
As Beam’s products and services are sold in Australia and globally, it
relies on its network of channel partners. Beam’s ability to acquire
and retain these partners will have a material impact on the continued
growth in revenue and profitability of the Company. Beam protects its
channel network by ensuring these partners can make a reasonable
margin and carefully manages sales of its products and services on
third-party online marketplaces.
1 https://www.grandviewresearch.com/press-release/global-mobile-satellite-services-market
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B E A M C O M M U N I C A T I O N S H O L D I N G S L I M I T E D
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BEAM COMMUNICATIONS HOLDINGS LIMITED
D I R E C T O R S A N D I N V E S T O R S
S I G N I F I C A N T C H A N G E S I N T H E
S T A T E O F A F F A I R S
There were no changes in the issued capital of the Group during
the year.
Mr Simon Wallace, a shareholder in the Group, has been a Director
for eight years and is currently the Non-Executive Chairman of
the Board. Simon has lengthy and detailed expertise in legal and
commercial matters and leads the Board and the Group in fund
raising activities, strategic and corporate governance advice.
Mr David Stewart retired from the Board effective 30 September
2022, after spending nearly five years on the Group’s board.
Mr Michael Capocchi is an Executive Director and holds the
positions of Managing Director and Chief Executive Officer for all
companies in the Group. His base in the USA enables him to easily
visit the Middle East and UK/Europe, where many core clients
are based, as well as domestically within the US. Michael travels
frequently to Australia and retains direct and daily contact with
management. Michael is also a significant shareholder in the Group.
Mr Mark Chartres, has been a Director for over 12 months and he
has spent nearly two decades professionally engaged in financial
markets, including with Macquarie Group and Shaw and Partners
(presently). He is very familiar with the Group’s operations,
aspirations and investment profile, and has in the past assisted in
furthering the Group’s funding requirements as well as providing
counsel on key investor expectations and priorities.
Other than those noted above there were no significant changes in
the state of affairs of the Group during the financial year.
M A T T E R S S U B S E Q U E N T T O T H E
E N D O F T H E F I N A N C I A L Y E A R
No matter or circumstance has arisen since 30 June 2023 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.
L I K E L Y D E V E L O P M E N T S A N D
E X P E C T E D R E S U L T S O F O P E R A T I O N S
The Company will continue the development and marketing of a
range of communications devices, mainly satellite based. Further
information on likely developments in the operations of the Group
and the expected results of operations have not been included in
this report because the directors believe it would be likely to result
in unreasonable prejudice to the Group.
E N V I R O N M E N T A L R E G U L A T I O N
The Group is not subject to any significant environmental
regulation under Australian Commonwealth or State law.
M E E T I N G S O F D I R E C T O R S
The Directors believe the Group is well placed to continue to
deliver strong result in FY24 due to the Group’s strong balance
sheet and many growth options, including the continued success of
the new Iridium GO! exec® device, ongoing geographical expansion
of ZOLEO and the strong build in ZOLEO royalty payments.
The number of meetings of the Group's Board of Directors
('the Board') and of each Board committee held during the year
ended 30 June 2023, and the number of meetings attended by
each Director were:
Directors
Meetings
Attended
Directors
Meetings
Maximum
Attendable
Commitees Commitees
Attended Maximum
Attendable
M Capocchi
D Stewart
(resigned 30 September 2022)
S Wallace
M Chartres
18
5
18
17
18
5
18
18
-
1
2
1
-
1
2
1
Maximum Attendable: represents the number of meetings
applicable to the director during the time the director held office.
R E M U N E R A T I O N R E P O R T ( A U D I T E D )
The remuneration report details the key management personnel
remuneration arrangements for the Group, in accordance with the
requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the activities of
the entity, directly or indirectly, including all Directors.
The remuneration report is set out under the following main headings:
● Principles used to determine the nature and
amount of remuneration
● Details of remuneration
● Share-based compensation
P R I N C I P L E S U S E D T O D E T E R M I N E
T H E N A T U R E A N D A M O U N T
O F R E M U N E R A T I O N
This report details the nature and amount of remuneration
for each Director and KMP of Beam Communications
Holdings Limited.
R E M U N E R A T I O N P O L I C Y
The Group is committed to remunerating its Executive Directors
and senior executives in a manner that is market-competitive,
consistent with best practice and which supports the interests of
shareholders. The Group aims to align the interests of Executive
Directors and senior executives with those of shareholders by
remunerating through performance and long-term incentive plans
in addition to fixed remuneration.
The remuneration of Non-executive Directors is determined by
the Board having regard to the level of fees paid to non-executive
directors by other companies of similar size and stature and in
aggregate must not exceed the maximum annual amount approved
by the Group’s shareholders, currently $500,000, as determined at
the General Meeting held on 3 August 2007.
Senior executives’ remuneration consists of the following elements:
● fixed salary;
● short-term incentive bonus where applicable based on
performance;
● long-term incentive share option scheme; and;
● other benefits including superannuation.
Fixed salary
The salary of senior executives is determined from a review of
the market and reflects core performance requirements and
expectations. In addition, the Company considers the following:
● The scope of the individual's role;
● The individual's level of skill and experience;
● Legal and industrial obligations;
● Labour market conditions; and
● The complexity of the Company's business.
The purpose of a performance bonus is to reward an individual’s
actual achievement of performance objectives and for materially
improved Group performance. Consequently, performance-based
remuneration is paid where a clear contribution to successful
outcomes for the Group is demonstrated and the individual
attains and excels against pre-agreed key performance indicators
during a performance cycle.
In assessing the relative performance of the senior executives
and the Group as a whole measured against the primary objective
of enhancing shareholder value over time, the Board has regard
to key financial indicators. In accordance with Section 300A of
the Corporations Act 2001 the following table summarises the
Group's performance over the last 5 years.
2023
2022
2021
2020
Net profit/(loss) before tax ($’000)
1,925
EBITDA ($’000)
Basic earnings per share (cents)
Share price at 30 June ($)
Market Capitalisation at 30 June ($m)
Dividends per share
4,264
2.40
0.18
15.6
Nil
121
1,477
(0.22)
0.20
17.28
Nil
780
(1,518)
1,991
0.76
0.24
17.64
Nil
3,276
(0.31)
0.17
8.99
Nil
2019
722
2,104
0.64
0.27
14.28
Nil
The Board believes the above table goes some way to illustrate the positive direction the Group has taken over the past 5 years and is
reflective of much, but not all, of the performance of senior executives during that period. Due to the nature of the Groups business, there
are often major influences on a particular financial year’s profit result.
Confidence in the strategy and growth agenda was clearly demonstrated in FY23 by the increase in revenue, EBITDA and NPAT for the Group.
12
13
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Long-term Incentives
Details of remuneration
The remuneration for each director and each of the other key management personnel of the Group receiving the highest remuneration during the
year was as follows:
The Group’s Share Options Incentive Plan, in which Directors and
senior executives may participate, was approved by shareholders
on 27 October 2017 and authorises the Directors to issue options
in respect of up to 10% of the shares on issue at a given time.
The Group ensures that the payment of equity-based executive
remuneration is made in accordance with thresholds set in plans
approved by shareholders.
The key management personnel of the Group consisted of the
following directors of Beam Communications Holdings Limited:
● Mr S Wallace - Non-Executive Chairman
● Mr M Capocchi - Executive Managing Director
● Mr D Stewart - Non-Executive Director (resigned 30
September 2022)
● Mr M Chartres - Non-Executive Director
As noted in this report, options were issued to a Director during
the 2023 financial year, reflecting sign on obligations and achieved
incentives.
And the following persons:
● Mr W Christie - Chief Technical Officer
● Mr D Sleigh - Chief Financial Officer
Other benefits
Senior executives are entitled to statutory superannuation and
other bonus payments subject to the discretion of the Managing
Director and the Board.
Employment Contracts
KMP
S Wallace
M Capocchi
M Chartres
W Christie
D Sleigh
Notice
None
9 months
(after minimum term
of 27 months)
Termination Payment
Non-Compete
Term
None
None post-employment
No fixed term
Notice paid in leu
None post-employment
36 months
from 1 July 2022
None
None
None post-employment
No fixed term
1 month
Notice paid in leu
12 months
No fixed term
3 months
Notice paid in leu
None post-employment
No fixed term
30 June 2023
Non-Executive
Directors:
Mr S Wallace
Mr M Chartres
Mr D Stewart
Executive
Directors:
Mr M Capocchi
(c)
Other Key
Management
Personnel:
Mr W Christie
Mr D Sleigh
30 June 2022
Non-Executive
Directors:
Mr S Wallace
Mr M Chartres
Mr D Stewart
Executive
Directors:
Mr M Capocchi
(c)
Other Key
Management
Personnel:
Mr D Payne
Mr W Christie
Mr D Sleigh
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
Cash bonus and
commission
Employee benefits
payable (b)
Superannuation
Employee
benefits payable
Options
(a)
$
70,909
20,833
21,666
$
-
-
-
$
-
-
-
$
7,445
-
-
$
-
-
-
$
-
35,412
-
Total
$
78,354
56,245
21,666
361,236
266,407
21,635
50,894
13,255
44,531
757,958
243,378
209,999
928,022
-
40,000
306,407
(2,214)
6,478
25,899
25,292
22,050
9,498
873
-
30,549
275,954
309,949
105,681
23,626
110,492
1,500,129
Short-term benefits
Cash salary
and fees
$
Cash bonus and
commission
$
Employee benefits
payable (b)
$
Post-
employment
benefits
Superannuation
$
Employee
benefits payable
$
Long-term
benefits
Share-based
payments
68,182
20,833
41,666
-
-
-
-
-
-
6,818
-
-
-
-
-
Options
(a)
$
-
4,245
-
Total
$
75,000
25,078
41,666
432,506
52,969
8,319
52,591
7,210
25,865
579,460
89,744
224,034
121,338
998,303
5,000
5,000
26,666
89,635
1,201
12,414
1,615
23,549
9,574
22,403
12,250
3,034
4,928
238
103,636
15,410
-
-
15,818
45,928
108,553
268,779
177,925
1,276,461
(a) Option based compensation relates to the value of options issued to date and brought to account pro-rata to the time period from the date
of granting to the date of vesting, except where Accounting Standard AASB 2 required expensing to begin from the commencement of
service related to those options, notwithstanding that the issue of those options, in the case of Directors was subject to shareholder
approval, and in the case of key management employees, subject to performance review.
(b) Employee benefits payable represents net increase in benefits payable charged to the consolidated statement of profit or loss and other
comprehensive income in the current year.
(c) The majority of Mr Capocchi's remuneration is in US dollars. For 2023 his remuneration has been converted into AU dollars at the exchange
rate on 30 June 2023 of 0.6630 (2020: 0.6889)
14
15
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name:
30 June 2023
30 June 2022
30 June 2023
30 June 2022
30 June 2023
30 June 2022
Non-Executive
Directors:
Mr S Wallace
Mr D Stewart
Mr M Chartres
Executive Directors:
100%
100%
37%
100%
100%
83%
-
-
-
-
-
-
-
-
63%
-
-
17%
Mr M Capocchi (c)
59%
86%
35%
9%
6%
5%
Other Key
Management
Personnel:
Mr W Christie
Mr D Sleigh
100%
77%
98%
76%
-
13%
2%
15%
-
10%
-
9%
S H A R E - B A S E D C O M P E N S A T I O N
Share holdings
The number of shares in the Company held during the financial year by each key management person including their personally related parties are set out below.
Balance
1 July 2022
Received as
remuneration
Options
exercised
Placement
issue
Ceasing to be
a KMP
Net change
other (a)
Balance
30 June 2023
Mr D Stewart (c)
10,905,000
Mr M Chartres (b)
-
200,000
2,832,099
62,778
18,182
14,018,059
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
292,221
3,124,320
(10,905,000)
-
-
-
-
-
-
-
-
-
62,778
18,182
(10,905,000)
292,221
3,405,280
Net change other refers to shares purchased or sold on-market or off-market at current market prices during the financial year.
Mark Chartres was appointed as a director on 1 February 2022. Upon appointment Mr Chartres held no shares in the Group.
David Stewart resigned as a director on 30 September 2022.
(a)
(b)
(c)
Options
The number of options over ordinary shares in the Company held during the financial year by each key management person including their personally
related parties is set out below.
2023
Directors:
Mr S Wallace
Mr M Capocchi
Mr D Stewart
Mr M Chartres
Other:
Mr W Christie
Mr D Sleigh
2022
Directors:
Mr S Wallace
Mr M Capocchi
Mr D Stewart
Mr M Chartres
Other:
Mr D Payne
Mr W Christie
Mr D Sleigh
Balance
1 July 2022
Granted as
remuneration
Issued as equity
investment
Options
exercised
Options
lapsed
Balance
30 June 2023
-
530,798
-
-
-
-
200,000
1,100,000
-
404,546
1,135,344
-
-
1,100,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
530,798
-
1,300,000
-
404,546
2,235,344
Balance
1 July 2021
Granted as
remuneration
Issued as equity
investment
Options
exercised
Options
lapsed
Balance
30 June 2022
-
-
-
-
-
-
-
-
-
530,798
-
200,000
-
-
400,000
1,130,798
-
-
-
-
-
-
4,546
4,546
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
530,798
-
200,000
-
-
404,546
1,135,344
Balance
1 July 2021
Received as
remuneration
Options
exercised
Placement
issue
Ceasing to be
a KMP
Net change
other (a)
Balance
30 June 2022
All options held by Directors and key management personnel at 30 June 2023 were currently un-exercisable as at balance date.
-
-
-
-
-
-
18,182
18,182
-
-
-
-
(328,570)
-
-
-
200,000
160,202
2,832,099
-
-
-
-
-
10,905,000
-
-
62,778
18,182
(328,570)
160,202
14,018,059
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
17
2023
Directors:
Mr S Wallace
Mr M Capocchi
Other:
Mr W Christie
Mr D Sleigh
2022
Directors:
Mr S Wallace
Mr M Capocchi
200,000
2,671,897
Mr D Stewart (c)
10,905,000
Mr M Chartres (b)
-
Other:
Mr D Payne
Mr W Christie
Mr D Sleigh
328,570
62,778
-
14,168,245
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
S H A R E S I S S U E D O N E X E R C I S E O F R E M U N E R A T I O N O P T I O N S
Details of options granted to and/or vested to key management personnel during the 2023 financial year are outlined below:
No shares were issued on exercise of renumeration options during the current period.
2023
V O T I N G A N D C O M M E N T S M A D E A T T H E C O M P A N Y ' S 2 0 2 2 A N N U A L G E N E R A L M E E T I N G ( A G M )
At the Company's most recent AGM, held on 30 November 2022, a resolution to adopt the prior year (2022) remuneration report was put to the vote
and more than 25% of votes cast were against the adoption of that report. This constituted a "first strike" under the executive remuneration related
provisions of the Corporations Act.
O P T I O N S I S S U E D
Details of options over ordinary shares granted, vested and lapsed for directors and other key management personnel as part of compensation during
the years ended 30 June 2023 and 30 June 2022 are set out below:
2023
Name
Grant date
Vesting date
Number of
options
granted
Value of
options
granted $
Value of
options
vested $
Value of
options
exercised $
Value of
options
lapsed $
Directors:
Mr S Wallace
Mr M Capocchi
Mr D Stewart
-
-
-
-
-
-
-
-
-
-
-
-
Mr M Chartres
02/12/2022
02/12/2023
1,100,000
50,853
-
-
-
-
-
-
-
-
Other:
Mr W Christie
Mr D Sleigh
2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Name
Vested No.
Granted No.
Grant date
Value of
options
granted date
Exercise
price
First exercise
date
Expiry
date
Directors:
Mr S Wallace
Mr M Capocchi
Mr D Stewart
Mr M Chartres
Other:
Mr W Christie
Mr D Sleigh
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,100,000
02/12/2022
0.04623
0.30
02/12/2023
02/12/2024
1,100,000
-
-
-
1,100,000
-
-
-
-
-
-
-
-
-
-
This concludes the remuneration report, which has been audited.
S H A R E S U N D E R O P T I O N
Unissued ordinary shares of Beam Communications Holdings Limited under option at the date of this report are as follows:
Expiry date
Exercise price
Number under option
Grant date
30 November 2021
23 December 2021
23 December 2021
1 February 2022
2 December 2022
31 December 2023
31 August 2026
23 December 2026
1 February 2025
2 December 2024
$1.00
$0.35
$0.35
$0.53
$0.30
3,340,905
530,798
400,000
200,000
1,100,000
5,571,703
Name
Grant date
Vesting date
Number of
options
granted
Value of
options
granted $
Value of
options
vested $
Value of
options
exercised $
Value of
options
lapsed $
S H A R E S I S S U E D O N T H E E X E R C I S E O F O P T I O N S
Directors:
Mr S Wallace
-
-
-
-
Mr M Capocchi
23/12/2021
31/08/2024
530,798
122,614
Mr D Stewart
-
-
-
-
Mr M Chartres
01/02/2022
01/02/2023
200,000
10,400
Other:
Mr D Payne
Mr W Christie
-
-
-
-
-
-
-
-
Mr D Sleigh
23/12/2021
23/12/2024
400,000
92,400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,916
31,309
-
No ordinary shares of Beam Communications Holdings Limited were issued during the year ended 30 June 2023 and up to the date of this report on
the exercise of options granted.
I N D E M N I T Y A N D I N S U R A N C E O F D I R E C T O R S A N D O F F I C E R S
During the year, the Group has paid premiums in respect of an insurance contract to indemnify it’s Directors and officers against liabilities that may
arise from their positions. Directors and officers indemnified include the Company Secretary, all directors and all executive officers participating in the
management of the Group.
Further disclosure required under section 300(9) of the Corporations Act is prohibited under the terms of the insurance contract.
I N D E M N I T Y A N D I N S U R A N C E O F A U D I T O R
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related
entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.
18
19
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
P R O C E E D I N G S O N B E H A L F O F T H E C O M P A N Y
G E N E R A L I N F O R M A T I O N
No person has applied to the Court under section 237 of the
The financial statements cover Beam Communications Holdings
Corporations Act 2001 for leave to bring proceedings on behalf of the
Limited (the 'Company') as a Group consisting of Beam Communications
Company, or to intervene in any proceedings to which the Company
Holdings Limited and the entities it controlled at the end of, or during,
is a party for the purpose of taking responsibility on behalf of the
the year. The financial statements are presented in Australian dollars,
Company for all or part of those proceedings.
which is Beam Communications Holdings Limited's functional and
presentation currency.
N O N - A U D I T S E R V I C E S
There were no non-audit services provided during the financial year by
limited by shares, incorporated and domiciled in Australia. Its registered
the auditor.
office and principal place of business is:
Beam Communications Holdings Limited is a listed public company
A U D I T O R ' S I N D E P E N D E N C E D E C L A R A T I O N
Unit 5 / 8 Anzed Court
Mulgrave, VIC, 3170
A copy of the auditor's independence declaration as required under
Australia
section 307C of the Corporations Act 2001 is set out immediately after
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
this directors' report.
A U D I T O R
A description of the nature of the Group's operations and its principal
activities are included in the directors' report, which is not part of the
financial statements.
AUDITOR’S INDEPENDENCE DECLARATION
RSM Australia Partners continues in office in accordance with section
The financial statements were authorised for issue, in accordance with
327 of the Corporations Act 2001.
a resolution of directors, on 30 August 2023. The directors have the
power to amend and reissue the financial statements.
R O U N D I N G O F A M O U N T S
The company is of a kind referred to in Corporations Instrument
2016/191, issued by the Australian Securities and Investments
Commission, relating to 'rounding-off'. Amounts in this report have
been rounded off in accordance with that Corporations Instrument to
the nearest thousand dollars, or in certain cases, the nearest dollar
This report is made in accordance with a resolution of directors,
pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Mr Simon Wallace
Chairman
30 August 2023
As lead auditor for the audit of the financial report of Beam Communications Holdings Limited for the year ended
30 June 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
M PARAMESWARAN
Partner
Melbourne, VIC
Dated: 30 August 2023
20
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
21
Liability limited by a scheme approved under Professional Standards Legislation
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2023
Beam Communications Holdings Limited
STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
Consolidated
Note 30 June 2023 30 June 2022
$'000
$'000
Consolidated
Note 30 June 2023 30 June 2022
$'000
$'000
39,552
23,663
Assets
4
5
6
6
6
7
Revenue
Other income
Expenses
Cost of sales
Employment expense
Depreciation and amortisation expense
Finance costs
Administrative expense
Legal, insurance and patent
Marketing and ICT
Share of loss from interest in Joint Venture
Other
Profit before income tax
Income tax benefit/(expense)
Profit/(loss) after income tax for the year attributable to the owners of Beam
Communications Holdings Limited
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year attributable to the owners of
Beam Communications Holdings Limited
Basic earnings per share
Diluted earnings per share
541
665
(28,472)
(4,661)
(2,187)
(166)
(494)
(487)
(822)
-
(879)
1,925
150
(17,237)
(3,445)
(1,205)
(151)
(392)
(262)
(730)
(249)
(536)
121
(297)
2,075
(176)
-
-
2,075
(176)
Cents
Cents
28
28
2.40
2.40
(0.22)
(0.22)
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Development costs
Deferred tax
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained profits/(accumulated losses)
Total equity
8
9
10
13
11
14
15
16
18
19
17
18
19
20
4,951
5,321
7,462
17,734
100
96
8,915
457
9,568
5,775
6,036
4,335
16,146
91
218
7,569
318
8,196
27,302
24,342
7,274
103
1,425
8,802
-
27
53
80
6,047
221
1,200
7,468
486
105
48
639
8,882
8,107
18,420
16,235
17,375
188
857
17,375
163
(1,303)
18,420
16,235
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
The above statement of financial position should be read in conjunction with the accompanying notes
22
23
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
Consolidated
Balance at 1 July 2021
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Shares issued, net of transaction costs
Share-based payments
Adjustment for broker options issued
Adjustment for share options exercised
Issued
capital
$'000
Reserves
$'000
Accumulated
losses
$'000
Total equity
$'000
12,703
86
(1,127)
11,662
-
-
-
4,700
-
(32)
3
-
-
-
-
46
32
-
(176)
-
(176)
-
-
-
-
(176)
-
(176)
4,700
46
-
3
Balance at 30 June 2022
17,374
164
(1,303)
16,235
Consolidated
Balance at 1 July 2022
Profit after income tax benefit for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Share-based payments (note 25)
Adjustment for broker options expired
Balance at 30 June 2023
17,374
Issued
capital
$'000
Reserves
$'000
Accumulated
losses /
retained
earnings
$'000
Total equity
$'000
17,374
164
(1,303)
16,235
-
-
-
-
-
-
-
-
110
(85)
189
2,075
-
2,075
-
2,075
2,075
-
85
110
-
857
18,420
Beam Communications Holdings Limited
STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest and finance charges paid
Income tax credit
Payroll tax refund
Consolidated
Note 30 June 2023 30 June 2022
$'000
$'000
39,608
(37,156)
12
(149)
10
90
28,176
(27,856)
1
(99)
104
-
Net cash from operating activities
23
2,415
326
Cash flows from investing activities
Payments for property, plant and equipment
Payments for capitalised development costs
Proceeds from research and development grant
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
Net loan payments
Lease liability repayments
Net cash from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
13
20
(52)
(3,333)
884
(60)
(3,061)
713
(2,501)
(2,408)
-
(513)
(225)
4,704
(346)
(208)
(738)
4,150
(824)
5,775
2,068
3,707
Cash and cash equivalents at the end of the financial year
8
4,951
5,775
The above statement of changes in equity should be read in conjunction with the accompanying notes
The above statement of cash flows should be read in conjunction with the accompanying notes
22
23
24
25
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies (continued)
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The impact of these standards did
not have a material impact on the Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001 and comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Group is
a for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies
adopted in the preparation of these financial statements are presented below and have been consistently applied unless
stated otherwise.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in Note 2.
Accounting policies
The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report.
The accounting policies have been consistently applied to all years presented, unless otherwise stated. When required by
Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial
year.
(a) Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Beam
Communications Holdings Limited) and all of the subsidiaries which are entities the parent controls. A list of the subsidiaries
is provided in Note 30.
(b) Income tax
Income tax expense (benefit) for the year comprises current income tax expense (credit) and deferred income tax expense
(benefit).
A net deferred tax asset has been recognised in the current year reflecting the movements in deferred tax assets and liabilities
for the period.
Non-cash refundable R&D tax incentives that can be used to offset income tax payable are recognised as deferred tax assets
where the carry forward criteria is satisfied. In such cases there will be a reduction in tax expense otherwise charged to the
profit and loss.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. 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 is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences can be utilised. At each reporting date, the Group re-assesses unrecognised deferred
tax assets as to the extent that it has become probable that future tax profit will enable recognition.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate
to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it
is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Beam Communications Holdings Limited and its wholly owned Australian subsidiaries have formed a tax consolidated group
under the tax consolidation regime. The current tax liability of each group entity and deferred tax assets arising from tax
losses are immediately assumed by the parent entity.
(c) Trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(d) Plant and equipment
Plant and equipment is carried at cost less any accumulated depreciation and impairment losses, where applicable.
The carrying amount of plant and equipment is reviewed at each reporting date by directors to ensure it is not in excess of
the recoverable amount from these assets.
Repairs and maintenance to plant and equipment is charged to the statement of profit or loss and other comprehensive
income during the financial period in which it is incurred.
The depreciable amount of plant and equipment is depreciated on a straight line basis over their useful lives to the Group
commencing from the time the asset is held ready for use.
The straight line depreciation rates for plant and equipment were:
Office furniture and equipment
Computer and test equipment
Rental equipment
5-10 years
3 years
3 years
26
27
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies (continued)
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies (continued)
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance 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 and other comprehensive income.
(e) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct
materials and direct labour.
(f) Development costs
Development costs are capitalised only when it is probable that the expected future economic benefits would flow to the
company and can be measured reliably. Development costs have a finite life and are amortised on a systematic basis
matched to future production. Expenditure not related to the creation of a new product is recognised as an expense when
incurred.
The amortisation rate for capitalised development costs is dependent on an assessment of the minimum useful life of each
project. Recent projects/products have been assessed at 4 years or 5 years giving a 25% or a 20% amortisation rate during
2023.
(g) Employee benefits
Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits
(other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting
period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part
of current trade and other payables in the statement of financial position. The Group’s obligations for employees’ annual
leave and long service leave entitlements are recognised as provisions in the statement of financial position.
Other long-term employee benefits
Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within
12 months after the end of the annual reporting period in which the employees render the related service. Other long-term
employee benefits are measured at the present value of the expected future payments to be made to employees. Expected
future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and
are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds
that have maturity dates that approximate the terms of the obligations. Any re-measurements for changes in assumptions of
obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur.
Option based compensation relates to the value of options issued to date and brought to account pro-rata to the time period
from the date of issue to the date of vesting, except in the case of Director's where Accounting Standard AASB 2 requires
expensing to begin from the commencement of service related to those options, notwithstanding that the issue of those
options is subject to shareholder approval.
The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial
position, except where the Group does not have an unconditional right to defer settlement for at least 12 months after the
end of the reporting period, in which case the obligations are presented as current provisions.
(h) Financial instruments
Financial instruments in the form of trade receivables, trade payables and other financial assets and liabilities are initially
measured at fair value adjusted by transactions costs on trade date when the related contractual rights or obligations arise.
Realised and unrealised gains or losses arising from changes in the fair value of these assets or liabilities are included in the
statement of profit or loss and other comprehensive income in the period in which they arise. At each reporting date, the
group assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are
recognised in the statement of profit or loss and other comprehensive income. Refer Note 21 for a detailed review of the
group’s financial instruments.
The Group does not designate any interests in subsidiaries as being subject to the requirements of Financial Instruments
accounting standards.
(i) Impairment of assets
At each reporting date, the group reviews the carrying values of its assets to determine whether there is an 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 sell and value in use, is compared to the asset's carrying value. Any excess of the assets
carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income.
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.
The group uses an Expected Credit Loss model in assessing impairment of trade and other receivables or loans and other
instruments that fall within the scope AASB 9 impairment requirements. The model includes a simplified approach in
accounting for trade and other receivables as well as contract assets, and records the loss allowance at the amount equal
to the expected lifetime credit losses. Under this simplified approach, the Group uses its historical experience, external
indicators and forward-looking information to calculate the expected credit losses.
(j) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts. Where applicable, bank overdrafts are disclosed within
other financial liabilities in current liabilities on the statement of financial position.
(k) Leases
The Group assesses whether a contract is or contains a lease, at inception of the contract. The entity recognises a right-of-
use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-
term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the
Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are
consumed.
When measuring lease liabilities for leases that had been classified as operating leases, the Group discounted lease
payments using its incremental borrowing rate at 1 July 2019. The weighted average rate applied was 7.3% to 8%.
The lease liability is initially measured at the present value of the lease that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the entity uses its incremental
borrowing rate. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or
before the commencement day, less any lease incentives received, any initial direct costs and an estimate of any costs to
dismantle and remove the asset at the end of the lease. They are subsequently measured at cost less accumulated
depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life
of the underlying asset. They are subject to impairment or adjusted for remeasurement.
28
29
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies (continued)
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 1. Significant accounting policies (continued)
(l) Revenue recognition
Revenue from the sale of goods or services is brought to account upon fulfilment of the relevant performance obligations of
the contract with the customer. Performance obligations are fulfilled upon delivery of the goods or services to the customer
at which point the transaction price is brought to account as revenue. The transaction price is the amount of consideration to
which the group expects to be entitled in exchange for transferring promised goods or services to a customer.
Interest revenue and rental income are recognised when they become receivable. Other revenue is recognised when the
right to receive the revenue has been established.
(m) Government grants
Government grants in the form of refundable Research and Development Tax Offsets received in respect of capitalised
Development Costs are initially recognised as deferred income upon receipt, and brought to account as income on a
systematic basis over the useful life of the related Development Cost assets. Non-refundable Research and Development
tax incentives are considered offsets to income tax expenses, subject to meeting the carry-forward recognition criteria.
There are no unfulfilled conditions or other contingencies attaching to government grants recognised in the financial
statements.
(n) Interest in joint venture
A joint venture represents the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required.
(q) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year 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.
(r) 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.
(s) Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
(t) New Accounting Standards and Interpretations not yet mandatory or early adopted
The below are Accounting Standards and Interpretations issued by the AASB that are not yet mandatorily applicable to the
Group, with an assessment of the potential impact of such pronouncements on the Group when adopted in future periods:
Applicable to
annual reporting
periods beginning
on or after
Where the Group is a party to a joint venture, the Group recognises its interests in the joint venture using the equity method
whereby the investment in the joint venture is carried in the statement of financial position at cost plus post acquisition
changes in the Group’s share of net assets of the joint venture.
Accounting Standards and Interpretations
The statement of profit or loss and other comprehensive income reflects the Group’s share of the results of operations of the
joint venture. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated
to the extent of the interest in the joint venture.
(o) Foreign currency transactions and balances
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and
presentation currency. The functional currency of each of the group's entities is measured using the currency of the primary
economic environment in which that entity operates.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at
fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of profit or loss and other
comprehensive income.
(p) Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of GST, except where the amount of GST is not recoverable
from the Australian Taxation Office. In these circumstances the GST is recognised as part of the asset or expense cost.
Receivables and Payables are shown in the statement of financial position as inclusive of GST.
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.
AASB 2020-1 Amendments to AASs - Classification of Liabilities as Current or Non-current
liabilities as Current or Non-current
AASB 2021-2 Amendments to AASs - Disclosure of Accounting Policies and Definition of
Accounting Estimates
AASB 2021-5 Amendments to AASs - Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
AASB 2014-10 Sale or contribution of Assets between an Investor and its Associate or Joint
Venture
1 Jan 2023
1 Jan 2023
1 Jan 2023
1 Jan 2025
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes
model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact profit or loss and equity.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit
loss rate for each group. These assumptions include recent sales experience and historical collection rates.
30
31
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Note 3. Operating segments
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the
provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that
affect inventory obsolescence.
Estimation of useful lives of assets
The consolidated group determines the estimated useful lives and related amortisation charges for its finite life intangible
assets. The useful lives could change significantly as a result of technical innovations or some other event. The amortisation
charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic
assets that have been abandoned or sold will be written off or written down.
Lease liabilities
The incremental borrowing rate applied to various lease liabilities recognised under AASB 16 ranges between 7.3% - 8%.
Income tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining
the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business
for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based
on the Group's current understanding of the tax law, if appropriate. Where the final tax outcome of these matters is different
from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
The deferred tax expense reflects the movements in the deferred assets and liabilities. The directors have recognised 100%
(2022: 60%) of the deferred tax assets and liabilities relating to carried forward tax losses. The directors have recognised
100% (2022: not applicable) of non-refundable R&D tax credits.
The directors expect sufficient future profitability and taxable income to enable the full value of all deferred tax assets to
be realised.
The amount of unused net deferred tax assets relating to tax losses which have not been brought to account is nil (2022:
$762,526) and capital tax losses of $1,681,896 (2022: $1,681,896). The amount of non-refundable R&D investment credits
brought to account is $704,970 (2022: nil).
The amount of net deferred tax assets which may be realised in the future is dependent on the assumption that no adverse
change will occur in income taxation legislation and the anticipation that the Group will derive sufficient future assessable
income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
Employee benefits provision
As discussed in Note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases
through promotion and inflation have been taken into account.
Warranty provision
In determining the level of provision required for warranties the Group has made judgements in respect of the expected
performance of the products, the number of customers who will actually claim under the warranty and how often, and the
costs of fulfilling the conditions of the warranty. The provision is based on estimates made from historical warranty data
associated with similar products and services.
Identification of reportable operating segments
The Group has identified operating segments based upon internal reports that are reviewed and used by the Directors in
assessing performance and determining the allocation of resources in respect of its satellite communications products
services and online sales. As the online sales segment operated by SatPhone Shop Pty Ltd, a wholly owned subsidiary
company, does not meet the quantitative threshold for separate disclosure, the company considers its aggregate segment
as it sole segment. Accordingly, revenue and results are fully disclosed in the consolidated statement of profit or loss and
other comprehensive income for this aggregated sole operating segment.
The consolidated statement of financial position discloses the sole operating segment assets and liabilities which are held
within Australia.
Major customers
The Group has a number of customers to whom it provides products and services. The Group supplied a single customer in
the U.S. accounting for 39% of revenue (2022: 34%) and the second largest customer, located in Canada, accounted for
21% of revenue (2022: 15%). The next most significant customer accounts for 6% of revenue (2022: 10%).
Geographical information
The geographical disaggregation of sales has been presented in Note 4.
Note 4. Revenue
Equipment sales
Airtime
Other
Revenue
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Geographical regions
Australia
United States of America
United Arab Emirates
United Kingdom
China
Canada
Japan
Other foreign countries
Timing of revenue recognition
Goods and services transferred at a point in time
Goods and services transferred over time
Consolidated
30 June 2023 30 June 2022
$'000
$'000
37,888
845
819
22,423
700
540
39,552
23,663
Consolidated
30 June 2023 30 June 2022
$'000
$'000
6,093
15,774
893
1,466
744
8,861
268
5,453
5,114
4,521
575
1,329
133
9,153
363
2,475
39,552
23,663
37,995
1,557
22,550
1,113
39,552
23,663
32
31
33
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 5. Other income
Research and development grant
Interest
Foreign exchange
Other income
Note 6. Expenses
Profit before income tax includes the following specific expenses:
Cost of sales
Opening inventories
Add: Purchases and other stock adjustments
Less: Closing inventories (note 10)
Finance costs expense
Interest expense on lease liabilities
Other financial costs
Other expenses
Product development costs expensed
Operating lease payment
Travel expense
Consolidated
30 June 2023 30 June 2022
$'000
$'000
466
12
63
541
470
1
194
665
Consolidated Consolidated
2023
$'000
2022
$'000
4,335
31,599
35,934
3,071
18,501
21,572
(7,462)
(4,335)
28,472
17,237
17
149
166
236
25
333
32
119
151
249
36
125
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 7. Income tax expense/(benefit)
Income tax expense/(benefit)
US tax expense benefit/(credit)
Current movement of temporary difference in net deferred tax assets
Movement in deferred tax asset associated with carry forward tax losses
R&D tax offset
Aggregate income tax expense/(benefit)
Numerical reconciliation of income tax expense/(benefit) and tax at the statutory rate
Profit before income tax (expense)/benefit
Tax at the statutory tax rate of 25%
Tax reconciling items
US tax loss/(credit)
Deferred tax assets loss
Income tax expense/(benefit)
Consolidated
30 June 2023 30 June 2022
$'000
$'000
(10)
489
76
(705)
(150)
1,925
481
(481)
(10)
(140)
(150)
19
274
4
-
297
121
30
(30)
19
278
297
Income tax expense includes a tax expense of $10,058 (2022: $18,770), incurred by the Group's USA subsidiary, which is
unable to be combined with Australian tax losses.
There are no franking credits available to equity holders.
Note 8. Cash and cash equivalents
Current assets
Cash at bank and on hand
Note 9. Trade and other receivables
Current assets
Trade receivables
Less: Allowance for expected credit losses
Other receivables and prepayments
Rental & other security deposits
Consolidated
30 June 2023 30 June 2022
$'000
$'000
4,951
5,775
Consolidated
30 June 2023 30 June 2022
$'000
$'000
4,342
-
4,342
863
116
979
1,377
-
1,377
4,545
114
4,659
5,321
6,036
34
35
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 9. Trade and other receivables (continued)
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 11. Right-of-use assets (continued)
Ageing reconciliation
Within trade
terms
Past due but
not impaired
(days
overdue)
31-60
Past due but
not impaired
(days
overdue)
61-90
Past due but
not impaired
(days
overdue)
90+
Past due
& impaired
Gross
amount
2023
Current
Trade receivables
Other receivables
Rental & other security deposits
Expected credit loss rate
2022
Current
Trade receivables
Other receivables
Rental & other security deposits
Expected credit loss rate
4,111
863
116
-
1,032
4,545
114
-
93
-
-
-
345
-
-
-
117
-
-
-
-
-
-
21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,342
863
116
-
1,377
4,545
114
-
All trade receivables past due terms but not impaired are expected to be received in the normal course of business.
Note 10. Inventories
Current assets
Raw materials - at cost
Finished goods - at cost
Less: Provision for impairment
Note 11. Right-of-use assets
Non-current assets
Right-of-use assets
Less: Accumulated depreciation
Consolidated
30 June 2023 30 June 2022
$'000
$'000
1,326
7,639
(1,503)
677
4,058
(400)
7,462
4,335
Consolidated
30 June 2023 30 June 2022
$'000
$'000
1,360
(1,264)
1,330
(1,112)
96
218
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Additions
Depreciation expense
Balance at 30 June 2023
Balance
$'000
360
18
(160)
218
30
(152)
96
The Group leases several assets, which includes buildings and two forklifts with original lease terms of 9, 5 and 3 years
respectively. There are no variable lease payment terms in any lease contracts.
There are no extension or termination options on the leases.
Amount recognised in profit or loss
Depreciation expense on right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases
Note 12. Interest in joint venture
Non-current assets
Investment in joint venture
Group's accumulated share of loss from Zoleo Inc. joint venture for the year ended
2023
$'000s
2022
$'000s
152
17
29
160
32
19
Consolidated
30 June 2023 30 June 2022
$'000
$'000
-
-
-
1,099
(1,099)
-
The Group has a 50% share in a joint venture company, Zoleo Inc., which was incorporated in Canada in August, 2018.
Zoleo Inc. had no contingent liabilities or capital commitments as at 30 June 2023.
The Group's accumulated contribution US$775,100 had been previously recognised as an increase in investment as per the
equity accounting method and was written down to nil during the prior financial year as the Group's share of the accumulated
losses exceeds the investment total.
36
37
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 12. Interest in joint venture (continued)
Summarised financial information:
Summarised statement of financial position:
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net asset deficiency
Share capital
Accumulated losses
Net equity
Summarised statement of profit or loss and other comprehensive income:
Revenue
Cost of goods sold
Gross profit
Expenses
Operating staff costs
Marketing
Professional services
Billing & support fees
Other expenses
Total expenses
Gain on FX
Non-operating expense
Loss for the year
Group's share of loss for the year ended
Zoleo Inc.
Zoleo Inc.
2023
$'000
2022
$'000
5,619
5,619
(6,783)
(2,338)
(9,121)
7,398
7,398
(7,621)
(2,250)
(9,871)
(3,502)
(2,473)
-
(3,502)
-
(2,473)
(3,502)
(2,473)
40,566
(36,080)
4,486
30,387
(27,768)
2,619
(3,691)
(345)
(74)
(408)
(789)
(5,307)
4
(115)
(932)
(466)
(2,619)
(206)
(34)
(176)
(242)
(3,277)
1
(72)
(729)
(364)
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 13. Plant and equipment
Non-current assets
Office furniture and equipment - at cost
Less: Accumulated depreciation
Computer and test equipment - at cost
Less: Accumulated depreciation
Rental equipment - at cost
Less: Accumulated depreciation
Total plant and equipment
Consolidated
30 June 2023 30 June 2022
$'000
$'000
508
(482)
26
499
(436)
63
43
(32)
11
100
498
(473)
25
457
(403)
54
46
(34)
12
91
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Disposals
Depreciation expense
Balance at 30 June 2022
Additions
Disposals
Depreciation expense
Balance at 30 June 2023
Note 14. Development costs
Non-current assets
Development costs
Less: Accumulated amortisation
Office
furniture
& equipment
$'000
Computer &
test
equipment
$'000
Rental
equipment
$'000
Total
$'000
29
7
-
(11)
25
10
-
(9)
26
32
46
-
(24)
54
42
-
(33)
63
11
8
(2)
(5)
12
5
(1)
(5)
11
72
61
(2)
(40)
91
57
(1)
(47)
100
Consolidated
30 June 2023 30 June 2022
$'000
$'000
13,057
(4,142)
9,386
(1,817)
8,915
7,569
38
39
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 14. Development costs (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Movement in carrying amount of development costs
Consolidated
Balance at 1 July 2021
Additions
Amortisation expense
Balance at 30 June 2022
Additions
Amortisation expense
Balance at 30 June 2023
$'000
5,500
3,886
(1,817)
7,569
3,333
(1,987)
8,915
The Group has assessed the minimum useful life of products from recent development projects at 4 or 5 years during 2023.
In line with the accounting policy detailed in Note 1(i), the carrying value of assets is reviewed to determine whether there is
an indication that those assets have been impaired. None of the intangible assets was written off during the financial year.
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 16. Trade and other payables
Current liabilities
Trade payables and accruals
Deferred R&D income
Other deferred income
Consolidated
30 June 2023 30 June 2022
$'000
$'000
5,725
1,245
304
4,428
826
793
7,274
6,047
The Group initially recognises refundable R&D investment grants as deferred income upon receipt and brings to account the
income over the same period as the amortisation of the related completed project cost. $466,183 of R&D grant income was
recognised in the statement of profit & loss for the year as shown in Note 5.
Refer to Note 21 for further information on financial instruments.
Note 17. Borrowings
Non-current liabilities
Secured loan
Consolidated
30 June 2023 30 June 2022
$'000
$'000
-
486
Note 15. Deferred tax
Non-current assets
Deferred tax asset
Deferred tax assets
Carrying amount of patents and capital raising costs
Accruals
Provisions
Lease liabilities
Tax losses
R&D tax offsets
Deferred tax liabilities
Product development costs
Right-of-use assets
Other financial liabilities
Consolidated
30 June 2023 30 June 2022
$'000
$'000
The Group had a secured loan facility with Roadpost Inc. of up to US$600,000. Roadpost is a Canadian company and a joint
venture partner with Beam Communications Pty Ltd to develop, market and distribute the Zoleo product, a satellite based
messaging device, including associated airtime contracts. The interest-free Assistance Loan was to assist Beam to establish
the business and was repayable at Beam's sole discretion.
457
318
The loan balance $485,756 from the preceding period was fully repaid during the financial year.
Balance at Charged to Balance at
1 July 2022
income
$'000
30 June 2023
$'000
-
38
258
49
1,144
-
1,489
-
106
507
(16)
(76)
705
1,226
-
144
765
33
1,068
705
2,715
(1,135)
(33)
(3)
(1,094)
9
(2)
(2,229)
(24)
(5)
318
139
457
Refer to Note 21 for further information on financial instruments.
Banking facilities
All bank facilities are secured by first ranking Registered Mortgage Debenture over the Group's assets including uncalled
capital and called but unpaid capital. At 30 June 2023, the company had the following unused bank facilities:
●
●
●
An Australian dollar overdraft with a limit of $300,000 (2022: $300,000). The overdraft was not utilised at 30 June 2023
or 30 June 2022.
A US dollar overdraft with a limit of US$320,000 (2022: US$320,000). The US dollar overdraft was not utilised at 30
June 2023 or 30 June 2022.
The Group had a bank guarantee facility of $50,000 at 30 June 2023 (2022: $150,000). It was fully utilised at both 30
June 2023 and 30 June 2022.
On 1 July 2020 the NAB granted Beam a 3 year, low interest term loan of $500,000 and a further $500,000 on 10 May 2021
part secured by the Australian government under their Covid19 relief program to assist with funding of Beam’s product
development program. The principal outstanding of $972,970 was repaid on 19 May 2021 and, after allowing for amortisation,
$400,849 was available to be redrawn at 30 June 2023.
40
41
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 18. Lease liabilities
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 19. Provisions (continued)
Consolidated
30 June 2023 30 June 2022
$'000
$'000
Movements in provisions
Movements in each class of provision during the current financial year are set out below:
Current liabilities
Lease liability
Non-current liabilities
Lease liability
103
221
Consolidated - 30 June 2023
27
130
105
326
Carrying amount at the start of the year
Additional provisions recognised
Amounts used
Carrying amount at the end of the year
The entity does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the
Group’s treasury function.
Note 20. Issued capital
Employee
benefits
$'000
Warranty
costs
$'000
Other
$'000
Total
$'000
1,052
496
(261)
1,287
85
126
(20)
191
111
-
(111)
1,248
622
(392)
-
1,478
Consolidated
30 June 2023 30 June 2022 30 June 2023 30 June 2022
Shares
Shares
$'000
$'000
Carrying amounts and movements
Balance at 1 July 2021
Additional
Decrease in liability
Balance at 30 June 2022
Additional
Decrease in liability
Balance at 30 June 2023
Note 19. Provisions
Current liabilities
Employee benefits
Warranty costs
Other
Non-current liabilities
Employee benefits
$'000
517
18
(209)
326
29
(225)
130
Consolidated
30 June 2023 30 June 2022
$'000
$'000
1,234
191
-
1,004
85
111
1,425
1,200
53
48
1,478
1,248
Ordinary shares - fully paid
86,421,921 86,421,921
17,375
17,375
Movements in ordinary share capital
Details
Balance
Shares issued, net of transaction costs
Shares issued on the exercise of options
Date
1 July 2021
Shares
Issue price
$'000
75,052,952
11,363,636
5,333
$0.44
$0.50
12,703
4,669
3
17,375
17,375
Balance
Balance
30 June 2022
86,421,921
30 June 2023
86,421,921
(a) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
(b) Share buy-back
There is no current on-market share buy-back.
(c) Capital risk management
When managing capital, management's objective is to ensure the Group continues as a going concern as well as to maintain
optimal returns to shareholders and benefits for other stakeholders.
No dividends have been paid or declared in respect of ordinary shares for the 2023 financial year.
The Group effectively manages its capital by assessing the financial risks and adjusting its capital structure in response to
changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders, share issues, or convertible note issues.
The capital risk management policy remains unchanged from the 30 June 2022 Annual Report.
42
43
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 21. Financial instruments
Financial risk management objectives
The Group undertakes transactions in a range of financial instruments including:
- cash assets;
- receivables;
- payables;
- deposits
Activities undertaken by entities within the Group result in exposure to a number of financial risks, including market risk
(including interest rate risk, foreign currency risk, and price risk), credit risk, and liquidity risk.
Due to the size of operation conducted by the Group, risk management is monitored directly by the Board of Directors of the
parent company with the aim of mitigation of the above risks and reduction of the volatility on the financial performance of
the Group.
The risks associated with material financial instruments and the Group's policies for minimising these risks are detailed below.
Market risk management
Interest rate risk
Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will
fluctuate due to changes in market interest rates.
Interest rate risk for the Group primarily arises from bank funding.
Facilities are provided by the Group's bankers and if, drawn upon, are at variable interest rates based upon Business
Overdraft Prime Indicator rates plus a risk margin. The group diligently manages the facilities and its accompanying rate risk
in its daily operations by keeping the net debt portfolio at a minimum level or in an in-funds position.
These risk exposures related to the financial instruments are not considered material and therefore no sensitivity analysis
has been provided.
Financial Instrument Composition and Maturity
The Group's exposure to interest rate risk, and the effective weighted average interest rates on classes of financial assets
and financial liabilities, is as follows:
2023
Financial asset
Cash assets
Receivables
Financial liability
Payables (excluding deferred
income)
Lease liabilities
Floating
interest
$'000
Fixed
interest
$'000
Weighted
average
interest rate
%
Non-interest
bearing
$'000
Total
$'000
4,951
-
4,951
-
-
-
0.00%
0.00%
-
-
-
-
131
131
0.00%
7.36%
-
5,321
5,321
5,725
-
5,725
4,951
5,321
10,272
5,725
131
5,856
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 21. Financial instruments (continued)
2022
Cash assets
Receivables
Payables (excluding deferred
income)
Lease liabilities
Foreign currency risk
Floating
interest
$'000
Fixed
interest
$'000
Weighted
average
interest rate
%
Non-interest
bearing
$'000
Total
$'000
5,775
-
5,775
-
-
-
-
-
-
-
327
327
0.00%
0.00%
0.00%
7.36%
-
6,036
6,036
4,914
-
4,914
5,775
6,036
11,811
4,914
327
5,241
Foreign currency risk refers to the risk that the value of a financial commitment, recognised asset or liability will fluctuate due
to changes in foreign currency rates. The Group conducts the majority of its receivable and payable transactions in foreign
currency, primarily in US Dollars. The Group's foreign currency exchange risk arises from the holding of foreign currency
deposits and transactions in normal trading operations resulting in trade receivables and payables being held at balance
date.
Foreign currency risk sensitivity:
If foreign exchange rates were to increase/decrease by 10% from rates used to determine values as at reporting date then
the impacts on profit and equity due to unrealised foreign currency exchange gains or losses on foreign currency deposits
and trade receivables and payables are as follows:
Impact on profit after tax
Impact on equity
Year
ended
30 June
2023
$'000
Year
ended
30 June
2022
$'000
Foreign
currency
movement
+/- 10%
+/- 10%
+/-300
+/-300
+/- 23
+/- 23
The above sensitivity reflects the net holding of foreign currency financial instruments at balance date. Whilst foreign currency
payables and receivables are largely offsetting during the year, the Group monitors and manages the associated currency
risks in order to reduce the impact of market risk volatility, therefore no further sensitivity analysis has been provided.
Price risk
Price risk encompasses the potential for adverse effects on an entity’s financial performance due to fluctuations in the
prices of purchased goods and services, influenced by varying market conditions. To counter the risk, the Group
consistently evaluates purchase prices as a routine operation, strategically determining the best timing and quantity for
each acquisition.
Credit risk management
Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause a
financial loss to the Group.
The credit risk on financial assets of the Group that have been recognised in the statement of financial position is the carrying
amount, net of any provision for doubtful debts. The Group minimises credit risk by performing credit assessments on all
new customers, and continuing major customers, and where necessary, obtaining advance payments.
Ongoing credit evaluation is performed on the financial condition of customers and, where appropriate, an allowance for
doubtful debts is raised.
44
45
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 21. Financial instruments (continued)
The Group does not have any credit risk arising from money market instruments, foreign currency contracts, cross currency
and interest rate swaps.
Liquidity risk management
Liquidity risk includes the risk that, as a result of the Group's operational liquidity requirements, the Group:
- will not have sufficient funds to settle a transaction on the due date;
- will be forced to sell financial assets at a value which is less than what they are worth;
- may be unable to settle or recover a financial asset at all.
To help reduce these risks the Group:
- has a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; and
- monitors forecast cash flows and endeavours to ensure that adequate borrowing facilities are maintained and/or maturity
dates are managed appropriately.
The Group's exposure to liquidity risk on classes of financial assets and financial liabilities, is as follows:
2023
Asset/Liability class
Cash and cash equivalents
Receivables
Payables and borrowings (excluding deferred income)
Lease liabilities
Net maturities
2022
Asset/Liability class
Cash and cash equivalents
Receivables
Payables and borrowings (excluding deferred income)
Lease liabilities
Net maturities
Note 22. Commitments and contingencies
Capital expenditure projects
Within one year
One to five years
More than five years
Total
contractual
1 - 5 years cash flows
$'000
$'000
1 year
$'000
4,951
5,321
(5,725)
(104)
4,443
5,775
5,922
(4,429)
(221)
7,047
-
-
-
(27)
(27)
-
114
(486)
(105)
(477)
4,951
5,321
(5,725)
(131)
4,416
5,775
6,036
(4,915)
(326)
6,570
Consolidated
30 June 2023 30 June 2022
$'000
$'000
2,911
-
-
3,944
-
-
2,911
3,944
Capital commitments relate to product development projects being undertaken by the subsidiary, Beam Communications Pty
Ltd.
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 23. Reconciliation of profit/(loss) after income tax to net cash from operating activities
Profit/(loss) after income tax (expense)/benefit for the year
2,075
(176)
Consolidated
30 June 2023 30 June 2022
$'000
$'000
Adjustments for:
Depreciation
Amortisation
Net loss on disposal of plant and equipment
Share of loss in joint venture
Unrealised foreign currency net gain
Share options expensed
Notional interest expense
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase in inventories
Decrease/(increase) in deferred tax assets
Increase in trade and other payables
Increase in employee benefits
Increase/(decrease) in provision for warranty costs
Increase in provision for stock obsolescence
200
1,987
1
-
(164)
110
15
798
(4,229)
(140)
318
235
106
1,103
199
1,006
2
249
(76)
78
52
(2,821)
(1,384)
278
2,813
2
(16)
120
Net cash from operating activities
2,415
326
Note 24. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Termination benefits
Share-based payments
Note 25. Share-based payments
Share Option Incentive Plan
Consolidated
30 June 2023 30 June 2022
$000
$'000
1,260
106
24
-
110
1,111
104
15
-
46
1,500
1,276
Share options under the Share Option Incentive Plan are granted at the discretion of the directors based on terms and
conditions set out in the Company's Share Option Incentive Plan. The directors may at any time and from time to time
determine eligible persons for the purposes of the option plan and select amongst those eligible persons participants who
will be invited to participate in the option plan.
Options issued to directors pursuant to the option plan will be subject to approval of shareholders in general meeting, in
compliance with the Listing Rules.
46
47
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 25. Share-based payments (continued)
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 27. Related party transactions (continued)
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) and movements in share
options issued under the Share Option Incentive Plan during the year for the Company:
Key management personnel
Disclosures relating to key management personnel are set out in Note 24 and the remuneration report included in the
directors' report.
30 June 2023
No.
WAEP 30 June 2022
$
No.
WAEP
$
Outstanding at the beginning of the financial year
Granted during the financial year
Lapsed during the financial year
Exercised during the financial year
Outstanding at the end of the financial year
Outstanding at the date of this report
-
0.3000
-
-
1,130,798
1,100,000
-
-
2,230,798
2,230,798
-
0.3818
-
-
-
1,130,798
-
-
1,130,798
1,130,798
The fair value of the options granted to Non-executive Director Mr. Mark Chartres had been determined using the Black-
Scholes option value model as detailed below.
Grant date
Number of options
Expiry date
Share price at grant date
Exercise price
Expected volatility
Risk-free interest rate
Dividend yield
Fair value of option at grant date
Other share-based payments
2 December 2022
1,100,000
2 December 2024
0.2282
0.3000
50%
2.85%
0%
0.0462
On 31 December 2022, 1,500,000 share options granted to Peak Asset Management Pty Ltd on 30 November 2020 expired.
Note 26. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor
of the company:
Consolidated
30 June 2023 30 June 2022
$'000
$'000
110
80
Audit services
Audit or review of the financial statements
Note 27. Related party transactions
Parent entity
Beam Communications Holdings Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 30.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 28. Earnings per share
Consolidated
30 June 2023 30 June 2022
$'000
$'000
Profit/(loss) after income tax attributable to the owners
Profit/(loss) after income tax attributable to the owners used in calculating diluted earnings
per share
2,075
2,075
(176)
(176)
Weighted average number of ordinary shares used in calculating basic earnings per share
86,421,921 81,674,718
Weighted average number of ordinary shares used in calculating diluted earnings per share 86,421,921 81,674,718
Options have not been considered in the dilutive earnings per share calculation due to the average market price being less
than the exercisable price.
Number
Number
Basic earnings per share
Diluted earnings per share
Note 29. Parent entity information
Statement of profit or loss and other comprehensive income
Loss from continuing operations
Tax benefit/(expense)
Loss for the year attributable to owners of the Company
Other comprehensive income
Cents
Cents
2.40
2.40
(0.22)
(0.22)
Parent
Parent
30 June 2023 30 June 2022
$'000
$'000
(1,414)
140
(1,274)
(1,177)
(287)
(1,464)
-
-
Total loss and other comprehensive income for the year attributable to owners of the
Company
(1,274)
(1,464)
48
49
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
30 June 2023
Note 29. Parent entity information (continued)
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Beam Communications Holdings Limited
DIRECTORS' DECLARATION
30 June 2023
In the directors' opinion:
Parent
Parent
30 June 2023 30 June 2022
$
$
7,332
643
7,975
(4,894)
(80)
(4,974)
5,149
608
5,757
(1,448)
(153)
(1,601)
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June
2023 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
3,001
4,156
On behalf of the directors
17,375
188
(14,562)
17,375
163
(13,382)
3,001
4,156
___________________________
Mr Simon Wallace
Chairman
30 August 2023
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments
The parent entity had no capital commitments as at 30 June 2023 and 30 June 2022.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in Note 1.
Note 30. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 1:
Name
Beam Communications Pty Ltd
SatPhonerental Pty Ltd
SatPhone Shop Pty Ltd
Beam Communications USA Inc
Pacarc (PNG) Limited (Dormant)
Note 31. Events after the reporting period
Principal place of business /
Country of incorporation
Ownership interest
30 June 2023 30 June 2022
%
%
Australia
Australia
Australia
USA
Papua New Guinea
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
No matter or circumstance has arisen since 30 June 2023 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.
50
51
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED
52
53
BEAM COMMUNICATIONS HOLDINGS LIMITEDBEAM COMMUNICATIONS HOLDINGS LIMITED C O N N E C T I N G
• Partnerships • Business Teams • Communities
54
BEAM COMMUNICATIONS HOLDINGS LIMITED S E C U R I T Y H O L D E R I N F O R M A T I O N
This section includes information required by ASX Listing Rules, which is not disclosed elsewhere in this Annual Report.
As at 7 August 2023:
T O P 2 0 S H A R E H O L D E R S
D I S T R I B U T I O N O F S H A R E S
Number held
% of class
Ranges
Number of
holders
% of total
shares issued
10,905,000
12.62%
2 0 + Y E A R S
• Experience • Expertise • Excellence
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
277
298
159
399
100
22%
24%
13%
32%
8%
Total number of holders
1,233
100%
V O T I N G R I G H T S
There are 86,421,921 ordinary fully paid shares held by 1,233
members and these are the only class of share currently issued.
The Company's Constitution provides that every member present
in person, by proxy or by corporate representative or by appointed
attorney shall on the show of hands have one vote and shall on a
poll have one vote for each fully paid share held. The Constitution
also authorises the Chairman to adopt any procedure which is in
the Chairman's opinion necessary or desirable for the proper and
orderly casting or recording of votes at any general meeting of the
Company, whether on a show of hands or on a poll.
HOLDERS OF EACH CLASS OF EQU ITY SEC UR IT Y
The company has issued:
A. 86,421,921 ordinary fully paid shares to 1,233 shareholders; and
4,471,703 unlisted options with varying expiry and prices:
B. 200,000 Unlisted options @$0.53 each expiring 1 February 2025
C. 3,340,905 Unlisted options @$1.00 each expiring 1 December 2023
D. 400,000 Unlisted options @$0.35 each expiring 23 December 2026
E. 530,798 Unlisted options @$0.35 each expiring 31 August 2026
David Stewart
FF Okram Pty Ltd
Patrison (Asia) Ltd
Bolivianos Group
Michael Capocchi
HSBC Custody Nominees
Dr Malaka Ameratunga
Artpreciation Pty Ltd
Vincent Galante
Catch 88 Pty Ltd
BNP Paribas Nominees
Hotton Family
Snowball Asset Management
8,634,258
5,409,874
4,869,400
3,124,320
3,053,590
2,100,000
1,798,632
1,720,922
1,456,070
1,332,975
1,116,730
1,046,851
Christopher Silvestro
1,000,000
Tom Bekiaris
G Chan Pension Pty Ltd
Paul Riethmaier
Alan Berrick
Citicorp Nominees
Rapaki Pty Ltd
911,835
849,752
842,591
697,955
633,897
626,473
9.99%
6.26%
5.63%
3.62%
3.53%
2.43%
2.08%
1.99%
1.68%
1.54%
1.29%
1.21%
1.16%
1.06%
0.98%
0.97%
0.81%
0.73%
0.72%
Total Top 20
52,131,125
60.32%
Total Issued
86,421,921
100.00%
S U B S T A N T I A L S H A R E H O L D E R S
Number held
% of class
David Stewart
10,905,000
12.62%
No options are held by a substantial shareholder to subscribe to
ordinary fully paid shares.
U N M A R K E T A B L E P A R C E L S
Minimum $500 parcel at $ 0.19
Holders
Shares
% Total Issued
Shares
2,632
416
343,326
0.40%
56
BEAM COMMUNICATIONS HOLDINGS LIMITED
Beam Communications Holdings Limited
ABN: 39 010 568 804
Beam Communications Pty Ltd
ABN: 97 103 107 919
5/8 Anzed Court,
Mulgrave, Victoria
Australia 3170
5/8 Anzed Court,
Mulgrave, Victoria
Australia 3170
Phone: +61 3 8561 4200
Email: investor@beamcommunications.com
Website: beamcommunications.com
Phone: +61 3 8588 4500
Email: info@beamcommunications.com
Website: beamcommunications.com
Beam Communications USA Inc.
Delaware Corporation No. 5228652
C/- Martensen Wright PC
One Capitol Mall, Suite 670
Sacramento, CA 95814 USA
Phone: +1 800 250 5819 (USA only)
Email: info@beamcommunications.com
Website: beamcommunications.com
SatPhone Shop Pty Ltd
ABN: 40 099 121 276
SatPhonerental Pty Ltd
ABN: 18 114 959 992
5/8 Anzed Court,
Mulgrave, Victoria
Australia 3170
5/8 Anzed Court,
Mulgrave, Victoria
Australia 3170
Phone: 1300 368 611
Email: info@satphoneshop.com
Website: satphoneshop.com
Phone: 1300 368 611
Email: rentals@satphoneshop.com
Website: satphonerentals.com