Annual Report 2023
Financial Year Ending 30 June 2023
Annual Report 2023
Contents
Chairman’s Review
Financial Report
Directors' Report
Remuneration report (audited)
Auditor's independence declaration
Consolidated financial statements
Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor's report
Shareholder Information
Corporate Information
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ABN : 54 091 908 726
8 Ethel Ave
Brookvale, NSW, 2100
P : (02) 8977 4900
www.datadotdna.com
DataDot Technology LimitedAnnual Report 2023Page 1 Chairman’s Review
Dear Shareholders
I am pleased to present the Company’s 2023 Annual Report. I am also pleased to report that despite
challenging conditions in the first half year, the group’s trading result (excluding royalties) improved
appreciably over the second half and returned the Group to profit.
Microdot sales to our wholesale customers in both the U.K. and the United States delivered pleasing
growth in the second half of FY 23 and we now expect to see continued growth via these channels in FY 24.
Nevertheless, while recognising the importance of these sales channels, including to the automotive
sector, the unanticipated loss of a significant part of our automotive related royalties due to the war in
Ukraine underscores the Board’s commitment to completing the transition from the historical business
model to a more diversified revenue base.
This has seen a major focus throughout FY 23 on developing the necessary product offerings, Vault
software enhancements, marketing materials and incentive models to support the FY 24 objectives of the
Direct Business and Consumer segment. This segment grew by 7.7 % off a modest base in FY 23 and the
focus for FY 24 has shifted to securing a range of commercial agreements with insurers, the industrial hire
industry and consumer product dealerships.
The key results for the year include:
•
•
•
•
A decrease of 24.4% in total revenue (driven by a 74.2% decrease in royalty revenue);
A 3.2 % increase in total product sales;
A 3.9% increase in operating expenses; and
An overall Net Profit before tax of $11,647.
Revenue
EBITDA
Net Profit / (Loss) before tax
2020
3,774,569
309,385
29,203
2021
3,896,113
1,494,733
1,234,982
2022
3,561,177
1,045,785
829,163
2023
2,693,031
254,423
11,647
The Company remains debt free and has a strong financial base with sufficient working capital to pursue its
plans for revenue diversification. While the net assets of the group decreased from $3,977,724 at June
2022 to $3,780,085 at June 2023 (excluding the Deferred Tax Asset), this was primarily due to the share
buy-back undertaken during the year. The group has cash, cash equivalents and financial investments
totaling $2,867,501. While this reserve will be carefully managed to support growth, the Board will
continue to ensure the long-term financial stability of the group.
Notwithstanding the many challenges associated with diversification into a new business model, your
directors are committed to driving significant progress towards delivering their vision of creating a
sustainable and profitable business. On a personal note, as my retirement from the Board becomes effective
at this AGM, I would like to wish my fellow Directors and the Company all the best for the future.
Ray Carroll
Chairman
15 October 2023
DataDot Technology LimitedAnnual Report 2023Page 2 Directors' Report
Directors
for the year ended 30 June 2023
The Directors present their report together with the financial statements of the consolidated
entity comprising DataDot Technology Limited and the entities
it controlled (the
“consolidated entity”) for the financial year ended 30 June 2023.
The following persons were directors of DataDot during the financial year and up to the date
of this report, unless otherwise stated:
- Ray Carroll
- Brad Kellas
- David Lloyd
Principal activities
The principal activities of DataDot during the year were:
(a)
to manufacture and distribute asset identification and digital theft protection
solutions that include:
• DataDotDNA® - polymer and metallic microdots; and
• High security DataTraceID® authentication
(b) To develop and provide customised asset protection and recovery solutions including:
• Asset Registers - databases that record asset identification data from the
public and commercial organisations.
• VAULT branded asset protection and recovery services,
together with a range of bespoke DatadotDNA branded
asset identification and related security products.
There has been no significant change in the nature of the Company’s activities during
the year.
Dividends
The Directors recommend that no dividend be paid. No dividends have been declared or paid
during the period.
Review of operations
The Group delivered an underlying trading result for the financial year ending 30 June 2023 of a
net Profit Before Tax of $11,647. While the underlying trading result is down on the net profit
result of $829,163 in FY 22, the end of year result represents a significant positive turnaround in
trading from the loss before tax of $190,118 incurred in the first half year.
Due to the required accounting treatment of the Group’s historical deferred tax losses, this has
resulted in the overall statutory result of a net Loss After Tax for the financial year ending 30 June
2023 of $115,370. This only has an effect on the book carrying value of the Group’s Deferred Tax
Asset and has no impact on the cash position.
DataDot Technology LimitedAnnual Report 2023Page 3
Directors' Report
for the year ended 30 June 2023
The following charts summarise the major trends in the financial performance of the Group over
the past 7 years and the impact on the group’s financial performance in the years subsequent to
the change of the Board in May 2019:
DDT 7 Year Financial Trends - Revenue & Expenses
6,000
4,000
2,000
-
(2,000)
(4,000)
(6,000)
(8,000)
1,500
1,000
500
0
(500)
(1,000)
(1,500)
(2,000)
(2,500)
(3,000)
(3,500)
2017
2018
2019
2020
2021
2022
2023
Royalties, Licence and Service Fees
Sale of Goods
Total Expenses
DDT 7 Year Financial Trend - Profit / (Loss)
2017
2018
2019
2020
2021
2022
2023
DataDot Technology LimitedAnnual Report 2023Page 4
Directors' Report
for the year ended 30 June 2023
Revenues and Gross Profit Margins
Total revenue for the Group in FY 2023 was $2,693,031, a decrease of 24.4% from FY 2022.
Total product sales increased by approximately 3.2%. Product sales from the OEM and
Distributor segment increased by 2.6%, and total sales from the Direct-to-Business and
Consumer segment increased by 7.7%.
Royalties and License Fees from our overseas licensees and distributors form a significant part
of the Group’s OEM and Distributor business. Royalty revenues were down in FY 2023 by 74.2%
compared to FY 22 which has led to the decline in profit from FY 22.
The fall in Royalty revenue is substantially the result of the on-going international sanctions
arising from the conflict in Ukraine and the disruption to DataDot South Africa’s distributor sales
in the Russian Federation which began in the last quarter of FY 22. The excess inventory levels
held by key automotive clients in Europe during the last half of FY 22 continued to impact
Distributor sales into FY 23 and also contributed to this decline.
Due to the impact of elevated across-the-board inflation levels on costs, the Group experienced
a decrease in Gross Margin on its OEM and Distributor sales by 4.0% compared to FY2022.
Operating Costs
Despite the high inflation levels being experienced world-wide, and an increase in operating staff
levels the total increase in Operating Costs in FY 23 was held at 3.9% compared to FY 2022 and
remain well below pre-restructuring levels.
The increase occurred in several key areas. While the Group’s overall administration costs were
reduced by 25.8% following on from the 17.2% reduction in the previous year, corporate
compliance costs were up by 5.2% from FY 2022; primarily as a result of conducting the share
buy-back. The largest increases in operational costs occurred as a result of the push by the Board
to grow the new business lines; in particular developing the necessary infrastructure, including
software enhancements and marketing materials, to support the on-line offering in the Direct-
to-Business and Consumer segment. This included the hiring of new sales staff leading to an
increase of 12.6% in salaries. Moving forward, the Board will continue to make appropriate
investments to aggressively grow the Direct-to-Business and Consumer segment in order to
expand its revenue base into these new areas.
Strong debtors control continued throughout FY 2023 and negated the need for any additional
bad and doubtful debt provisions.
Capital Management
Maintaining the Group’s strong cash position remains a key focus of the Board. The cash, cash
equivalents and financial assets available to the Group declined during FY 2023 from $3,179,549
to $2,867,501, however a significant factor in this decline was the Board’s decision to initiate a
buy-back of unmarketable shares in November 2022. The buy-back resulted in a 56% reduction
in the total number of shareholders and 2.65% in total share capital at a cost of approximately
$197,500.
DataDot Technology LimitedAnnual Report 2023Page 5
Directors' Report
for the year ended 30 June 2023
The Group is free of debt instruments subject to interest payments, which has made a further
positive contribution to the FY 2023 cash position. The Board determined there was no need for
any new capital raising activities in FY 2023.
The expenditure on the share buy-back has been the main factor in the decline of the net assets
of the Group from $3,977,724 at 30 June 2022 to $3,780,085 at 30 June 2023 (excluding
$5,489,215 in deferred tax assets brought to account in relation to unused prior year tax losses
of the Australian entities).
The Group’s liquidity remains very sound and provides a strong foundation for investment in the
businesses’ expansion. In doing so, the Board remains cognisant of its responsibility to effectively
manage its cash balance to ensure the long-term financial stability of the Group.
Outlook
In the half year update Directors advised that due to the impacts of the Ukraine conflict on the
Company’s automotive related royalties received from DataDot South Africa (DDSA) the second
half year would remain challenging. While the Group’s overall trading result (excluding royalties)
improved over the second half and returned the Group to profit, the continuing shortfall in
royalty revenue has validated the Board’s ongoing concern that the Company had historically
placed too much reliance on our Distributors’ automotive related royalties and product sales.
While still recognising the importance of sales of our core products to the automotive sector on
the Company’s current revenue base, the Board remains committed to completing the transition
from the historical business model to a more diversified revenue base. When fully implemented
this transition will take the Company from a product focused manufacturer of passive
identification products to that of a multi-service provider that encompasses physical and digital
asset identification, provenance, theft deterrence and stolen property recovery; each with their
associated services and product related revenue streams.
This commitment is now reflected in a subtle but important change in the way the Company is
focusing on its strategic objectives. The Company’s traditional business of manufacturing and
distributing its DatadotDNA and Trace products is now grouped under OEM and Distribution
segments. These segments are primarily concerned with the manufacture and wholesale supply
of DatadotDNA and Trace to manufacturers (OEMs) for application to their own products, and to
authorised distributors and wholesale customers in overseas markets for on-sale under their
own brands. These segments also include royalties and licensing fees associated with these
distributorships.
The third grouping is the Direct Business and Consumer segment. This segment includes all
activities that have a direct to business and/or consumer focus and includes on-line, retail and
dealer sales of the newly developed range of DatadotDNA products kits, Vault branded security
products, and Vault facilitated stolen property recovery and insurance sales commissions.
DataDot Technology LimitedAnnual Report 2023Page 6
Directors' Report
for the year ended 30 June 2023
OEM and Distribution Segment
In respect to the OEM and Distribution segment, we do not expect to see any significant change
in the current level of royalties over the forward period as the conflict in Ukraine remains
unresolved. However, sales to our wholesale customers in both the U.K. and the United States
delivered pleasing growth in the second half of FY 23 and we now expect to see continued growth
via these channels in FY 24.
The previously flagged potential for expansion of our OEM automotive sales in the U.K. still
remains a distinct prospect. While the prospective OEM customer paused negotiations during
the second half for internal reasons, these negotiations have resumed, and the board remain
cautiously positive. Our other direct automotive sales channel, principally Subaru in Australia,
increased sales in FY 23 in line with their increase in vehicle imports due to the easing of supply
constraints in the automotive industry and can be expected to remain steady.
Trace product sales to existing customers remained steady over the year. The ongoing work with
distributors to engage some potential new Trace customers has continued in order to prove-out
the customers’ in-house processes, engineering requirements and testing regimes. However, this
work has to-date failed to deliver a supply contract. Until one or more of these potential
customers commit to proceed, we will not be forecasting any significant growth of Trace-related
revenue in the outlook period.
Taken as a whole, a conservative assessment of the forward outlook for the OEM and Distributor
segment (in the absence of a return to previous royalty levels) is one of modest revenue growth
through expansion of sales by our existing distributor and wholesale customer channels. This
modest growth forecast will be significantly enhanced if the potential OEM customer commits
to a DatadotDNA program in time for implementation to commence in the outlook period.
Direct Business and Consumer Segment
A major focus of the Board and management throughout FY 23 has been to develop the
necessary product offerings, software enhancements, marketing materials and incentive models
to support the FY 24 objectives of the Direct Business and Consumer segment.
Historically, the absence of a compelling and marketable rationale for stand-alone property
marking has limited the potential of direct to consumer sales. Combining PropertyVAULT
registration and recovery services with insurance incentives provides a compelling rationale for
dealer, retail and consumer engagement. The development of our generic DatadotDNA product
into a diversified product range targeted at a broad cross section of consumer products that can
be offered through broker, dealership, retail and on-line channels has given us the ability to make
this combined offering far more compelling and commercially viable.
Receipts from the Direct to Business and Consumer segment grew by 7.7 % off a modest base
during FY 23 as they were primarily generated by the more mature BikeVAULT portal while the
necessary elements of the more diversified product range were being developed. With our
infrastructure and marketing plans now in place, the focus for FY 24 has shifted to securing a
range of commercial agreements with insurers, the industrial hire industry and consumer
product dealerships. Negotiations have commenced with a number of specialty insurers to
incorporate insurance-related incentives into our product offerings, including offers to generate
significantly greater product sales, advertising and referral revenue streams.
DataDot Technology LimitedAnnual Report 2023Page 7
Directors' Report
for the year ended 30 June 2023
For the higher valued classes of insured property such as marine, caravans, plant and equipment
and specialty vehicles, we are proposing formal commission arrangements for the recovery of
stolen total loss insured property together with related salvage service charges.
Engagement with Australia’s police services is also an important element of the stolen property
recovery process. Facilitating timely police action is a critical part of recovering suspect property
identified by PropertyVAULT processes. Additionally, police services take possession of
thousands of suspect items each year that can’t be identified on their internal systems. Protocols
for police to routinely check this property against the PropertyVAULT stolen portal has led to
significant instances of PropertyVAULT recoveries. To facilitate this interaction, we have engaged
a highly respected former police officer to act as our national police liaison officer and will
continue our sponsorships of Crime Stoppers and Neighborhood Watch through FY 24.
All of these agreements and activities are targeted at achieving exponential growth throughout
FY 24 in pre-registration of personal and commercial property, uploading of total loss stolen
property, and public, business and police interaction with the PropertyVAULT portal.
Ongoing investment is required to achieve these aims with a strong focus on marketing to
generate the necessary traffic to our on-line portals which will lead to the growth of our
commercial revenue streams. Like all on-line businesses, this growth trajectory will take time to
build momentum and reach a critical mass. For this reason, our success parameters for FY 24
will include the number and quality of commercial agreements secured and the overall growth
metrics of the on-line portal rather than solely focusing on the net financial outcomes of this
segment.
Consolidated Outlook
Notwithstanding on-going external challenges, including upward cost pressures from elevated
inflation levels on both the Group and its customers, and the normal caveats associated with
developing and securing new and prospective revenue opportunities, the Board is confident that
the return to profit seen in the second half FY 23 will continue into FY 24. The outlook will be
particularly improved if the prospective OEM customer is secured. The Board is committed to
pursuing all potential strategic opportunities to grow value for all shareholders and remains
optimistic regarding the future growth of the Company.
Significant changes in the state of affairs
Other than as set out in the Review of Operations there have been no significant changes in the
state of affairs of the group.
DataDot Technology LimitedAnnual Report 2023Page 8
Directors' Report
for the year ended 30 June 2023
Matters subsequent to the end of the financial year
The war in Ukraine has resulted in a significant disruption to the Group’s European related
Royalties and with no resolution in sight, it will continue to impact the Group’s FY 2024
performance as outlined above.
No other matter or circumstance has arisen since 30 June 2023 that has significantly
affected, or may significantly affect the consolidated entity's operations, the results of those
operations, or the consolidated entity's state of affairs.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulations under
Australian Commonwealth or State Law.
Director profiles
Mr Raymond Carroll
Chairman – appointed 13 May 2019
Ray was the driving force behind the establishment and success of Australia’s National Motor
Vehicle Theft Reduction Council (NMVTRC) and served as its Executive Director for over 19
years. He is an internationally recognised authority on developing and implementing strategic
solutions to crime issues and holds a Bachelor’s Degree in Criminal Justice Administration.
In his former role, Ray devised the world’s first comprehensive criteria and performance
specification for whole of vehicle marking. His endorsement and advocacy for DataDot’s micro-
dot identification system nationally and internationally was the catalyst for the acceptance and
growth of micro-dot identification in multiple markets across the world.
Ray’s appointment brings to the Company an unsurpassed level of experience in fostering
collaboration across multiple industry sectors, government agencies and the community sector
to achieve desired outcomes. Ray secured and managed over $40 million dollars in direct
funding to the NMVTRC and generated over $600 million expenditure by government agencies
and motor related industries to implement NMVTRC facilitated reforms. During his tenure,
vehicle crime in Australia reduced by over 70% delivering on-going insurance and community
savings of more than $400 million per year in vehicle crime related costs.
Mr Bradley Charles Kellas
Managing Director – appointed 13 May 2019
Brad is the founder of Property Vault International Pty Ltd and a decorated former Detective
from the Victoria Police with 21 years’ experience. For most part of his policing career he
specialised in organised crime, corporate fraud, kidnapping, blackmail, extortion, product
contamination and large-scale stolen property investigations.
Post his policing career, he used his entrepreneurial, investigative and analytical skills to
develop a unique trading strategy capitalising on global market fluctuations and worked full
time as a successful proprietary trader for a large investment firm for 5 years.
DataDot Technology LimitedAnnual Report 2023Page 9
Directors' Report
for the year ended 30 June 2023
In 2015, Brad saw the opportunity that social media and a custom-built platform combined
with a specialist service could have on countering bike theft and property crime in general. In
late 2015, he put his trading career on hold and commenced a fulltime commitment to
developing the BikeVAULT website (prelude to PropertyVAULT) coupled to a specialist victim
and police service solution. BikeVAULT is now the number one platform and service to counter
bike theft in Australia, with recoveries exceeding $1.5 million.
Understanding the integral relationship of both physical and digital identification to combat
crime, Brad saw the value proposition of an alignment with DataDot, which subsequently
resulted in him becoming the largest shareholder with a 17.05% holding and instigating an EGM
in May 2019, which resulted in the change of management and direction of DataDot.
Mr David Lloyd B.Sc. (ANU), Grad Dip Business (UQ), MBA with Distinction (INSEAD)
Non-Executive Director – appointed 13 May 2019
David is an experienced senior executive specialising in strategy, new technologies, business
development, ventures and partnerships, whose skills will be essential for successfully turning
around the DataDot business by leveraging an alliance with PropertyVAULT.
As a senior executive at Qantas and previously Virgin Blue and Virgin Australia, David has been the
architect of several high-profile alliances with other airlines as a well as a joint venture with the
Government of Samoa, demonstrating his ability to build valuable commercial relationships.
While at Virgin Blue he also designed the Velocity Frequent Flyer program, valued at
approximately $1 billion in its partial sale to a private equity partner and which continues to be
the most profitable unit of Virgin Australia. Subsequently at Virgin he developed the business
cases for fleet orders worth over USD2 billion and the establishment of a new international
business.
More recently while at Qantas, David has mentored businesses in its tech accelerator program,
overseen commercial relationships with start-up and scale-up businesses including those in
which Qantas has taken equity stakes and warrants, and
is working on externally
commercialising the Company’s own innovations. Previously David has worked internationally
as a consultant with the Boston Consulting Group and Arthur Andersen Business Consulting and
was a project manager for the Sydney Organising Committee for the Olympic Games. He is an
internationally competitive cyclist and member of numerous cycling organisations, bringing a
customer viewpoint to the value of both DataDot and PropertyVAULT. David is Chair of the Audit
and Risk Committee.
Mr Gordon Ogborne
CFO – appointed 1 June 2022
Company Secretary – appointed 19 July 2022
COO – appointed 20 July 2022
Gordon has over 25 years of experience in accounting, business management and governance
roles. He joined DataDot in June 2022 as Group CFO and was appointed as COO and Company
Secretary in July 2022. Prior to joining DataDot, he was CFO / COO for Bioaction Pty Limited, CFO
for SAF Foods Australia Pty Limited, Executive Manager for Finance, Administration and ITC and
Company Secretary of the Flow Systems Group (now Altogether Group) and CFO for ANZ Region
for Stratus Computers. During 2004-2012, Gordon was partner in an accounting practice Thomas
GLC specialising in compliance and business services and audit.
DataDot Technology LimitedAnnual Report 2023Page 10
Directors' Report
Directors' interests
for the year ended 30 June 2023
The relevant interest of each director in the shares, share rights and options over shares issued
by DataDot, as notified by the directors to the Australian Stock Exchange in accordance with
the Corporations Act 2001, at the date of this report is as follows:
Director
Interest in
Ordinary Shares
Interest in
Share Rights
Interest in
Options
Ray Carroll
Bradley Kellas
David Lloyd
-
230,234,530
14,912,116
-
-
-
-
-
-
Interest in
Convertible
Notes
-
-
-
Share Rights
Unissued ordinary shares of DataDot Technology Limited under the share rights plan at the
date of this report are as follows:
Grant date
Nil
Date of expiry
Nil
Number unvested
Nil
Share Options
Unissued ordinary shares of DataDot Technology Limited under the share options plan at the
date of this report are as follows:
Issue Date
Date of Expiry
Nil
Nil
Number of Share
Options
Nil
For details of share options and share rights issued to directors and executives as remuneration,
refer to the remuneration report.
Meetings of Directors
The number of meetings of the Company'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 of the directors were:
Board Meetings
No.
eligible to
attend
No.
attended
Remuneration and
Nomination
Committee Meetings
Audit and Risk
Management
Committee Meetings
No.
eligible to
attend
No.
attended
No.
eligible to
attend
No.
attended
Director
Raymond Carroll
Brad Kellas
David Lloyd
6
6
6
6
6
6
-
-
-
-
-
-
2
2
2
2
2
2
DataDot Technology LimitedAnnual Report 2023Page 11
Directors' Report
for the year ended 30 June 2023
Indemnity and insurance of officers and auditors
No indemnities have been given to any person who is or has been an officer or auditor of the
consolidated entity.
During the year DataDot paid insurance premiums in respect of directors’ and officers’ liability
insurance contracts. The directors have not included details of the nature of the liabilities covered
or the amount of the premium paid in respect of the directors’ and officers’ liability insurance
contracts, as such disclosure is prohibited under the terms of the contract.
Proceedings on behalf of the Company
No person has applied to the court under section 237 of the Corporations Act 2001, for leave to
bring proceedings on behalf of the Company, or to intervene in any proceedings to which the
Company is a party, for the purpose of taking responsibility on behalf of the Company, for all or
part of those proceedings.
Non-audit services
There have been no amounts paid or payable to the auditor for non-assurance services provided
by the auditor during the financial year. Auditor’s remuneration is outlined in note 6 to the
financial statements.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the
Corporations Act 2001 for the year ended 30 June 2023 is set out on page 20 of the financial report.
DataDot Technology LimitedAnnual Report 2023Page 12
Directors' Report
for the year ended 30 June 2023
The following Remuneration Report forms part of the Directors’ Report.
Remuneration Report (audited)
The remuneration report, which has been audited, outlines the key management personnel
remuneration arrangements for the consolidated entity in accordance with the requirements of
the Corporations Act 2001 and its Regulations.
Key management personnel
The following key management personnel (hereafter referred to as "KMP") of the consolidated
entity throughout the year consisted of the following directors and Executives of DataDot
Technology Limited or its subsidiaries:
Directors
Raymond Carroll
Brad Kellas
David Lloyd
Executives
David MacKenzie
Gordon Ogborne
Chairman
Managing Director
Non-Executive Director
CFO & Company Secretary
CFO
Ceased 19 July 2022
Appointed 8 June 2022
Shares and Share Rights and Share Options Held
The number of shares and share rights and share options held by each KMP (or their
related party) during the financial year, or at the date that they ceased their role as KMP
is as follows:
Shares
Directors
Raymond Carroll
Brad Kellas
David Lloyd
Executives
David MacKenzie
Gordon Ogborne
Total Shares
Share Rights
Directors
Executives
Share Options
Directors and Executives
Balance
as at
30/6/2022
-
214,995,076
14,912,116
-
-
229,907,192
Balance
as at
30/6/2022
-
-
Balance
as at
30/6/2022
-
Additions
Disposals and
Cancellations
Balance
as at
30/6/2023
-
230,234,530
14,912,116
-
600,000
245,746,646
-
-
-
-
-
-
Taken-up,
Disposals and
Cancellations
-
Balance
as at
30/6/2023
-
-
-
-
15,239,454
-
-
600,000
15,839,454
Additions
-
-
Additions
-
Disposals or
Cancellations
-
Balance
as at
30/6/2023
-
DataDot Technology LimitedAnnual Report 2023Page 13
Directors' Report
for the year ended 30 June 2023
Remuneration Report (audited) (continued)
Remuneration policy
Key Management Personnel (KMP) have authority and responsibility for planning, directing and
controlling the activities of DataDot. KMP include only the directors of the parent entity, one of
whom (Mr Kellas) is the Managing Director / CEO, and the CFO.
Remuneration levels of KMP are determined by the Remuneration and Nomination Committee.
The Committee’s charter is to review and make recommendations to the Board in relation to:
- Executive remuneration and incentive policy,
- The remuneration of the CEO, executive directors and all direct reports of the CEO,
- Executive incentive plans,
- The remuneration of non-executive directors,
- Retention, performance assessment and termination policies and procedures for
non-executive directors, the CEO, executive directors and all direct reports of the CEO,
- Establishment and oversight of employee and executive share plans and share option
plans and share loan plans,
- Superannuation arrangements,
- The disclosure of remuneration in DDT’s publications, including ASX filings and the Annual
Report,
- Board composition, having regard to necessary and desirable competencies,
- Board succession plans, and
- Evaluation of Board performance.
The Committee did not obtain a remuneration recommendation or other advice from a
remuneration consultant in FY 2023.
Board policy for determining the composition and value of remuneration for KMP’s comprises the
following elements:
- Remuneration to contribute to the broader outcome of creating shareholder value,
- Remuneration to be commensurate with individual duties and responsibilities,
- Remuneration to be market competitive in order to attract, retain and motivate people of the
highest quality,
- Remuneration to be aligned with DataDot’s business strategies and financial targets,
- Executives’ remuneration to comprise fixed and variable components,
- Variable components to be tied to the attainment of both short-term and long-term
performance targets of individuals and DataDot,
- Variable components of executive remuneration to be between 30% and 50% of the value of
total remuneration,
- Variable component payment to be subject to DataDot’s financial capacity, and
- This policy to apply uniformly across DataDot.
In relation to non-executive directors, the Constitution of DataDot and ASX Listing Rules specify
that aggregate remuneration shall be determined from time to time by a general meeting. The
latest determination was at the 2004 AGM when shareholders approved a ceiling on aggregate
remuneration of $300,000 per annum. The actual amount payable is currently $60,000 p.a. plus
SGL at 10.5% for Mr Carroll, the Chairman of the Board, and $25,000 p.a. plus SGL at 10.5% for
Mr Lloyd.
DataDot Technology LimitedAnnual Report 2023Page 14
Directors' Report
for the year ended 30 June 2023
Remuneration Report (audited) (continued)
Remuneration policy (continued)
Non-Executive Directors do not receive performance related remuneration and directors’ fees
cover both main board and committee activities. Directors of Group subsidiary companies do not
receive directors’ fees. The Managing Director was paid $180,804 plus SGL during FY 2023.
The Company has cancelled all STI and LTI programs in operation on 13 May 2019 and will look to
implement a new and more effective STI and LTI program once the Company returns to
sustainable profitability.
Relationship between remuneration and consolidated entity performance
The effect of remuneration policy on DataDot’s financial performance and on shareholder value is
central to the Board’s and Remuneration and Nomination Committee’s decisions. For this reason,
a primary objective of remuneration policy is to tie the remuneration of KMP to financial
performance, so ensuring that a significant proportion of the total remuneration of KMP is at-risk,
short-term incentive payments (STI) being tied to net profit targets, and long-term incentive
payments (LTI) being tied to growth in shareholder value. In this respect, the key factors for
consideration are continuing product development and improvement, business and revenue
growth, developing and maintaining the appropriate corporate culture, strategic adjustments in
consultation with the Board and maintenance of an efficient cost base.
The Company’s performance and shareholder wealth for each of the last six years were
Revenue
EBITDA
Net Profit / (Loss)
after tax *
Basic earnings per
share (in cents) *
Share price at year
end (in cents)
2018
$’000
4,867.2
(422.3)
2019
$’000
3,279.6
(1,757.3)
2020
$’000
3,774.6
309.4
2021
$’000
3,896.1
1,452.9
2022
$’000
3,561.2
1,045.8
2023
$’000
2,693.0
254.4
(3,119.9)
(2,301.3)
29.2
1,235.0
829.2*
11.6*
(0.40)
(0.30)
0.003
0.099
0.067*
0.001*
0.50
0.70
0.40
0.60
0.70
0.30
* For a more accurate comparison with prior year results, the value of the Deferred tax assets
relating to unused tax losses of $5,701,507 brought to account in FY 2022, its subsequent
balance of $5,489,215 in FY 2023 and the income tax expense relating to the movements in
the Deferred tax assets have been excluded.
Performance based remuneration
At the date of this report, the remuneration of KMP who are non-executive directors includes only
a fixed remuneration component.
No STI or LTI programme for KMP’s has been implemented pending the return to sustainable
profitability of the Company. Any STI or LTI programme when implemented with shareholder
approval, may include performance shares, share options or share rights. No performance shares
or share rights or share options are currently on issue to non-executive directors. The grant of
director performance shares, or share rights or options would be consistent with the Company’s
DataDot Technology LimitedAnnual Report 2023Page 15
Directors' Report
for the year ended 30 June 2023
Remuneration Report (audited) (continued)
long-term incentive remuneration policy, providing Directors with the opportunity to participate in
the future growth of the Company through share ownership.
In 2023, no STI’s or LTI’s have been paid to directors or other KMP’s.
Share Rights
- Each share right converts into one fully paid ordinary share in the Company on completion
of the vesting conditions, or at discretion of the Board;
- No amounts are paid or payable by the recipient on receipt or exercise of a share right;
- Subject to the recipient’s continuous employment, share rights vest in three equal tranches
at varying intervals after the date of issue;
- A trading restriction applies for a further 12 months after vesting; and
- Share rights expire 7 years after issue unless extended by the Directors.
Number of share rights provided as remuneration in the years ended 30 June 2022 and
30 June 2023:
Balance
as at
30/6/2022
Granted as
Remuneration
Vesting of
Share
Rights
Expiring or
Lapsing
Share
Rights
Balance
as at
30/6/2023
Directors
Executives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Shares and share rights issued and cancelled subsequent to the end of the year: Nil
Share Options
- There were no share options on issue at the beginning of the year.
There were no share options on issue at the end of the year.
Summary of Director, KMP and Other Executives Equity Remuneration instruments on issue at
the date of this report:
Directors
KMPs
Other Executives
Ordinary
Shares
245,146,646
600,000
-
Ordinary
Shares / Loan
Scheme
-
-
-
Options
Share Rights
-
-
-
-
-
-
DataDot Technology LimitedAnnual Report 2023Page 16
Directors' Report
for the year ended 30 June 2023
Remuneration Report (audited) (continued)
Remuneration details for the year
The following table of benefits and payments, details, in respect to the financial year, the
components of remuneration of each KMP.
Short-term
benefits
Post-
employment
benefits
Long-term benefits
2023
Directors
R Carroll
B Kellas
D Lloyd
Executives
G Ogborne
Cash,
Salary,
& fees $
60,000
180,804
25,000
144,231
410,035
STI $
Non
cash $
Super-
annua-
tion $
Termin-
ation $
Long
service
leave $
-
-
-
-
-
-
35,900
-
6,300
18,984
2,625
-
35,900
15,144
43,053
-
-
-
-
-
-
-
-
-
-
Short-term
benefits
Post-
employment
benefits
Long-term benefits
2022
Directors
R Carroll
B Kellas
D Lloyd
Executives
P Raper
D MacKenzie
G Ogborne
Cash,
Salary,
& fees $
60,000
200,913
25,000
52,219
52,038
5,192
395,362
STI $
Non-
cash
$
Super-
annua-
tion $
Termina-
tion
$
Long
service
leave $
-
-
-
-
-
-
-
-
28,827
-
6,000
20,091
2,500
-
-
-
28,827
4,064
5,204
519
38,379
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share-
based
payments
Share
Options
$
-
-
-
-
-
Share-
based
payme
nts
Share
Options
$
-
-
-
-
-
-
-
Total $
66,300
235,688
27,625
159,375
488,988
Total
$
66,000
249,831
27,500
56,283
57,242
5,711
462,567
DataDot Technology LimitedAnnual Report 2023Page 17
Directors' Report
for the year ended 30 June 2023
Remuneration Report (audited) (continued)
2022 Performance based
remuneration
2023 Performance based
remuneration
Bonus
STI %
0.0%
0.0%
0.0%
0.0%
Share rights /
Options
LTI %
0.0%
0.0%
0.0%
0.0%
Bonus
STI %
0.0%
0.0%
0.0%
0.0%
Share rights /
Options
LTI %
0.0%
0.0%
0.0%
0.0%
Directors
Ray Carroll
Brad Kellas
David Lloyd
Executives Gordon Ogborne
Key Management Personnel
Details of the performance based and equity-based remuneration for KMP are set out below.
Employment details of KMP
David MacKenzie
Mr MacKenzie commenced as the CFO and Company Secretary on a part time basis on
22 December 2021. His annualised remuneration package based on full time employment was
$150,000 excluding Superannuation. Hours required to complete the roles varied from month to
month.
On 16 May 2021 Mr MacKenzie gave three (3) months’ notice as required under his contract of his
intention to resign from his roles with the company. Mr MacKenzie formally resigned from the
position of company secretary on 19 July 2022.
Gordon Ogborne
Mr Ogborne commenced as the CFO on a part time basis on 8 June 2022. His annualised
remuneration package based on full-time employment was $150,000 excluding Superannuation.
Hours required to complete the roles varied from month to month.
On 19 July 2022 Mr Ogborne was formerly appointed as company secretary on 19 July 2022.
On 20 July 2022 Mr Ogborne was appointed as joint CFO/COO on a full-time basis with the
remuneration package remaining the same on a full-time basis.
Executive service contracts
It is the Board's policy to establish executive service contracts with all KMP. Executive Service
Contracts will not have fixed terms and will have termination notice periods between one month
and three months. Commitments of these amounts are disclosed in Note 20 of the financial
accounts.
KMPs have no entitlement to termination payments in the event of removal for misconduct.
DataDot Technology LimitedAnnual Report 2023Page 18
Directors' Report
for the year ended 30 June 2023
This director’s report is signed in accordance with a resolution of directors made pursuant to
s.298(2) of the Corporations Act 2001.
On behalf of the Directors
Ray Carroll – Chairman
31 August 2023
DataDot Technology LimitedAnnual Report 2023Page 19 AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF DATADOT TECHNOLOGY LIMITED
I declare that, to the best of my knowledge and belief, in relation to the audit of DataDot
Technology Limited for the financial year ended 30 June 2023 there have been:
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of DataDot Technology Limited and the entities it controlled
during the period.
AMW AUDIT
Chartered Accountants
BILLY-JOE THOMAS
Director
Dated at Perth, Western Australia this 28 August 2023
Liability limited by a scheme approved under Professional Standards Legislation.
DataDot Technology LimitedAnnual Report 2023Page 20 Consolidated Financial Statements
for the year ended 30 June 2023
Contents
Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor's report
Page
22
23
24
25
26
27
48
49
DataDot Technology LimitedAnnual Report 2023Page 21 Consolidated Statement of Profit or Loss
Revenue
Sale of goods
Service and licence fees
Royalties
Cost of sales
Gross Profit
Other income
Expenses
Administrative expenses
Marketing expenses
Occupancy expenses
Travel expenses
EBITDA
Depreciation, Amortisation and Impairment
Finance costs
Profit before income tax expense
Income tax (benefit)/expense
Profit / (Loss) after income tax (benefit)/expense for the year
Profit / (Loss) for the year attributable to :
Owners of DataDot Technology Limited
Non controlling interest
Basic profit / (loss) per share (cents per share)
Diluted profit / (loss) per share (cents per share)
The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
for the year ended 30 June 2023
Notes
2023
$
2022
$
2,230,829
134,063
328,140
2,693,031
2,160,992
130,807
1,269,378
3,561,177
975,138
1,203,607
1,717,894
2,357,570
73,360
166,671
1,428,654
37,252
64,252
6,671
1,536,830
1,321,489
82,320
69,010
5,638
1,478,457
254,423
1,045,785
226,704
16,072
202,246
14,376
11,647
829,163
127,016
(5,692,034)
(115,370)
6,521,197
(115,370)
-
(115,370)
(0.009)
(0.009)
6,521,197
-
6,521,197
0.524
0.524
3
4
5
8
8
DataDot Technology LimitedAnnual Report 2023Page 22
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2023
Profit / (Loss) after income tax expense for the year
Other comprehensive income
Items that may be classified subsequently to profit or loss
Exchange difference on translation of foreign operations
Total comprehensive income for the year, net of tax
Total comprehensive profit attributable to
Owners of DataDot Technology Limited
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
2023
$
2022
$
(115,370)
6,521,197
(161)
(15,423)
(115,531)
6,505,774
(115,531)
6,505,774
DataDot Technology LimitedAnnual Report 2023Page 23 Consolidated Statement of Financial Position
for the year ended 30 June 2023
Notes
2023
$
2022
$
Current Assets
Cash and cash equivalents
Financial assets
Trade and other receivables
Inventories
Sundry Debtors
Total Current Assets
Non-Current Assets
Deferred tax
Plant and equipment
Investments
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Employee benefits
Provisions
Other current liabilities
Total Current Liabilities
Non-Current Liabilities
Employee benefits
Other non-current liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Reserves
Equity attributed to the owners of DataDot Technology Limited
Non-controlling interests
Total Equity
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
9
10
11
12
5
13
14
15
16
17
15
17
18
19
2,117,501
750,000
523,409
452,460
46,351
3,179,549
-
487,419
392,226
146,521
3,889,721
4,205,715
5,489,215
825,380
2,948
5,701,507
426,543
2,948
6,317,543
6,130,998
10,207,264
10,336,713
295,516
98,970
7,105
224,286
428,154
80,363
7,105
123,202
625,876
638,823
6,595
305,492
5,278
13,381
312,087
18,659
937,963
657,482
9,269,300
9,679,231
41,415,295
(32,428,262)
282,268
41,612,795
(32,312,892)
379,328
9,269,300
9,679,231
-
-
9,269,300
9,679,231
DataDot Technology LimitedAnnual Report 2023Page 24
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Note
Attributable to equity holders of the parent
Restated balance at 30 June 2021
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transfer of Other Reserve to Accumulated Losses
Transactions with owners in their capacity as owners :
Share issues
Share issue costs
Issued
capital $
41,596,795
Accumulated
losses $
(38,155,467)
-
-
-
6,521,197
-
6,521,197
(678,623)
16,000
-
-
Balance at 30 June 2022
41,612,795
(32,312,892)
Profit / (Loss) after income tax expense for the year
Deferred tax Liablity on Employee Share Reserve
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners :
Share issues
Share issue costs
Share buy-backs
Balance at 30 June 2023
-
-
-
-
(115,370)
-
-
(115,370)
-
-
(197,500)
41,415,295
-
-
-
(32,428,262)
Foreign
currency
translation
reserve $
Employee
equity
benefit
reserve $
Other
reserve $
Total
equity $
7,153
403,598
(678,623)
3,173,456
-
(15,423)
(15,423)
-
-
(8,270)
-
-
(161)
(161)
-
-
-
(8,431)
-
-
-
-
-
-
678,623
(16,000)
-
387,598
-
(96,900)
-
(96,900)
-
-
-
290,699
-
-
-
-
-
-
-
-
-
-
6,521,197
(15,423)
6,505,774
-
-
-
9,679,231
(115,370)
(96,900)
(161)
(212,430)
-
-
(197,500)
9,269,300
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
DataDot Technology LimitedAnnual Report 2023Page 25
Consolidated Statement of Cash Flows
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest paid
Income tax paid
Receipt of government grants, JobKeeper & Cashflow Boost
for the year ended 30 June 2023
Notes
2023
$
2022
$
2,734,814
(2,924,366)
(16,072)
(11,624)
119,876
4,395,672
(3,381,215)
(14,376)
(9,473)
115,941
Net cash received / (used) in operating activities
9
(97,372)
1,106,549
Cash flows from investing activities
Interest received
Payments for plant and equipment
Payments for financial assets
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from share issue (net of share issue costs)
Payments for Share Buy-back
Repayment of borrowings
Net cash provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
33,193
(47,185)
(750,000)
529
(242,209)
-
(763,992)
(241,680)
-
(197,500)
-
(197,500)
-
-
-
-
(1,058,864)
3,179,549
(3,184)
864,869
2,328,358
(13,678)
Cash and cash equivalents at the end of the financial year
9
2,117,501
3,179,549
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
DataDot Technology LimitedAnnual Report 2023Page 26
Notes to the Financial Statements
for the year ended 30 June 2023
1
General Information
DataDot Technology Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business
is:
8 Ethel Ave
Brookvale, NSW, 2100
Australia
A description of the nature of DataDot's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.
The financial statements were authorised for issue in accordance with a resolution of Directors on 28 August 2023.
Comparatives are consistent with prior years.
Basis of preparation
These general purpose financial statements comprise the consolidated financial statements of DataDot Technology Limited and its controlled entities (hereafter
referred to as 'DataDot', 'the consolidated entity', 'the Company' and 'the Group') as at and for the period ended 30 June each year. They have been prepared in
accordance with Accounting Standards and other authoritative pronouncements issued by the Australian Accounting Standards Board ('AASB'), and comply with
other requirements of the law and the Corporations Act 2001 as appropriate for for-profit oriented entities.
These financial statements also comply with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB').
Significant accounting policies applied are provided within these financial statements, where appropriate.
2
Segment Information
Operating Segments
Segment descriptions
DataDot has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operating
decision makers) in assessing performance and in determining the allocation of resources.
Management has reviewed the segments and determined the group is organised into business units based on their product and services and accordingly has two
reportable segments. Discrete financial information about each of these operating businesses is reported to the executive management team on at least a monthly
basis.
Products and services by segment
Three reportable segments have been identified as follows:
OEMs and Distributors – the manufacture and wholesale supply of DataDotDNA® polymer and metallic microdots to manufacturers
(OEMs) for application to their own products, and to authorised distributors and wholesale customers in overseas markets for on-sale
under their own brands. Revenues in this segment include royalties and licensing fees associated with these distributorships.
DataTraceID® – a high speed, high security, machine readable system for authenticating materials, products, and assets.
Direct Business and Consumer sales – all activities that have a direct to business and/or consumer focus and includes on-line, retail and
dealer sales of the newly developed range of DatadotDNA products kits, Vault branded security products, and Vault facilitated stolen
property recovery and insurance sales commissions.
Accounting policies and intersegment transactions
The accounting policies used by DataDot in reporting segments internally are the same as those contained in the prior period. Intersegment pricing is determined
on an arm’s length basis. Intersegment transactions are eliminated on consolidation.
DataDot Technology LimitedAnnual Report 2023Page 27 Notes to the Financial Statements
2
Segment Information (continued)
for the year ended 30 June 2023
The following tables present the revenue, profit / (loss) after tax, assets and liabilities information regarding operating segments for years ended 30 June 2023 and
30 June 2022.
Profit / (Loss) before income tax
58,942
29,724
(77,019)
Segment performance
Year ended 30 June 2023
Revenue from external customers
Intersegment sales
Total revenue
Gross profit
EBITDA
Depreciation and amortisation
Intangibles Impairment
Finance costs
Income tax expense / (benefit)
Profit / (Loss) after income tax
Segment assets
Segment liabilities
Segment performance
Year ended 30 June 2022
Revenue from external customers
Intersegment sales
Total revenue
Gross profit
EBITDA
Depreciation and amortisation
Finance revenue
Intangibles Impairment
Finance costs
Profit / (Loss) before income tax
OEM &
Distributors
DataDot DNA
$
2,283,225
31,862
2,315,086
DataTraceID
$
257,461
262
257,723
Direct to
Business &
Consumer
$
Inter-Segment
eliminations
Total
$
$
152,346
-
152,346
-
(32,124)
(32,124)
1,433,737
213,729
70,428
257,288
50,576
(53,441)
(182,273)
-
(16,072)
(20,852)
-
-
(23,579)
-
-
127,016
-
-
(68,074)
29,724
(77,019)
12,234,959
317,884
209,275
(2,554,854)
10,207,264
(909,904)
(2,436,314)
(337,394)
2,745,648
(937,963)
DataDotDNA
$
DataTraceID
$
DDV APPS
$
eliminations
$
Total
$
3,174,466
14,379
3,188,845
245,223
1,271
246,494
141,488
-
141,488
-
(15,650)
(15,650)
2,163,423
196,591
(2,443)
1,017,043
63,208
(34,466)
(170,569)
-
-
(14,376)
832,099
(15,045)
-
-
-
48,164
(16,633)
-
-
-
(51,100)
2,693,031
-
2,693,031
1,717,894
254,423
(226,704)
-
(16,072)
11,647
127,016
(115,370)
3,561,177
-
3,561,177
2,357,570
1,045,785
(202,246)
-
-
(14,376)
829,163
(5,692,034)
6,521,197
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Income tax expense
(5,692,034)
-
-
Profit / (Loss) after income tax
6,524,133
48,164
(51,100)
Segment assets
Segment liabilities
13,713,412
452,420
196,314
(4,025,432)
10,336,713
(989,342)
2,597,998
-
(951,174)
657,482
DataDot Technology LimitedAnnual Report 2023Page 28
Notes to the Financial Statements
2
Segment Information (continued)
for the year ended 30 June 2023
Geographic segments
DataDot operates facilities in two geographical regions of Australasia and the United Kingdom. Each manufacturing facility distributes the DataDot asset
identification system. The tables below show revenues earned in each geographic region.
Major customers
DataDot has a number of customers to which it provides both products and services. In Australasia, one customer accounts for 15% of total revenue (2022 : 8%), in
Europe one customer accounts for 14% of total revenue (2022 : 8%) while a second customer accounts for 8% of total revenue (2022: 5%), in the Americas one
customer accounts for 20% of total revenue (2022 : 12%) and in DataTraceID one customer accounts for 5% total revenue (2022 : 3%).
Disaggregation of revenue
The Group has disaggregated revenue into various categories in the following table which is intended to:
• depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date; and
• enable users to understand the relationship with revenue segment information provided in Note 2
Consolidated - 2023
Geographical regions
Australia
Europe
Rest of the World
Timing of revenue recognition
Point in time
Over time
Consolidated - 2022
Geographical regions
Australia
Europe
Rest of the World
Timing of revenue recognition
Point in time
Over time
OEM &
Distributors
DataDot DNA
$
DataTraceID
$
Direct to
Business &
Consumer
$
Total
$
403,903
917,940
967,446
2,289,289
2,289,289
-
2,289,289
46,862
178,982
23,786
249,630
154,113
-
-
154,113
604,877
1,096,922
991,231
2,693,031
249,630
-
249,630
154,113
-
154,113
2,693,031
-
2,693,031
DataDotDNA
$
DataTraceID
$
DDV APPS
$
Total
$
311,239
1,925,802
937,426
3,174,466
3,174,466
-
3,174,466
2,568
202,225
40,430
245,223
141,488
-
-
141,488
455,294
2,128,027
977,856
3,561,177
121,071
124,152
245,223
141,488
-
-
3,437,025
124,152
3,561,177
DataDot Technology LimitedAnnual Report 2023Page 29
Notes to the Financial Statements
3
Other Income
Interest revenue
Government grants:
Sundry income
Research and development grants *
* There are no unfulfilled conditions or contingencies attached to the grants.
for the year ended 30 June 2023
2023
$
41,010
38,414
(6,064)
73,360
2022
$
529
158,645
7,498
166,671
Accounting treatment
Research and development grant
The research and development grants received from the Australian government are classified as deferred income and released to other income in line with the
amortisation of the capitalised or expensed costs to which the grant relates.
The research and development grants receivable from the Australian government are recognised in the statement of financial position as an asset when the grant is
reasonably certain.
4
Expenses
The consolidated statement of profit and loss includes the following specific expenses:
Cost of sales
Inventory
Stock obsolescence
Administration expenses
Net loss / (gain) on foreign currency
Employee benefits expenses
Employee share based payment expenses
Superannuation expenses
Research & development expenses
Bad debt expense
Administrative expenses
Occupancy expenses
Minimum lease payments
5
Income Tax
(a) Major components of tax expenses
Current income tax expense
Deferred Income Tax
Withholding tax
Income tax expense
(b) The prima facie tax on loss before income tax is reconciled to the income tax expense as follows :
Profit / (Loss) before income tax expense
Net profit / (loss) before income tax expense at the statutory income tax rate of 25% (2022 25%)
Income not subject to tax
Research and development expenditure added back
Expenditure not allowable
Other timing differences
Tax losses deducted - Australian Group
Tax losses and tax offsets not recognised as deferred tax assets
Foreign tax rate adjustment
Deferred Income Tax
Withholding tax
Aggregate income tax expense
(c) Recognised deferred tax assets and liabilities
Opening balance
Deferred tax asset credited to income
Deferred tax asset credited to equity
Tax losses used by Australian Group
Under-provision of Tax Losses used by Australian Group
Temporary difference brought into account (Australian Group)
Closing balance
2023
$
383,767
8,963
(66,213)
830,207
-
92,015
1,750
0
570,896
1,428,654
2022
$
478,759
(21,475)
(24,557)
750,689
-
68,647
15,906
(233)
511,037
1,321,489
-
-
2023
$
-
115,392
11,624
127,016
11,647
2,912
(9,388)
22,077
6,922
2,773
(78,891)
12,534
41,062
115,392
11,624
127,016
5,701,507
(54,337)
(96,900)
(78,891)
(88,261)
106,097
5,489,215
2022
$
-
(5,701,507)
9,473
(5,692,034)
829,163
207,291
(39,661)
68,976
1,621
(16,758)
-
(216,003)
(5,465)
(5,701,507)
9,473
(5,692,034)
-
5,693,396
-
(111,410)
-
119,521
5,701,507
DataDot Technology LimitedAnnual Report 2023Page 30
Notes to the Financial Statements
for the year ended 30 June 2023
5
Income Tax (continued)
Deferred tax assets and liabilities
Deferred income tax at 30 June relates to the following :
Deferred tax liabilities
Deposits & Unearned Income
Plant and equipment
Employee Share Reserve
Gross deferred tax liabilities
Deferred tax assets
Carried Forward Losses
Tax losses used by Australian Group
Provisions
Accruals
Leases
Doubtful debts and obsolescence
Other timing differences
Gross deferred tax assets
Net deferred tax assets brought to account
Net deferred tax assets not brought to account
Accounting treatment
2023
$
2022
$
(6,271)
(48,066)
(96,900)
(151,237)
5,493,725
(78,891)
26,391
29,722
93,049
40,301
36,155
5,640,452
-
-
-
-
5,693,396
(111,410)
20,091
25,008
-
45,182
29,241
5,701,507
(5,489,215)
(5,701,507)
-
-
The potential deferred tax assets arising from unused tax losses and temporary differences have only been recognised where it is probable that the future taxable
profit will be available against which tax losses can be utilised. Deferred tax assets currently recognised relates to DataDot Technology Limited, DataDot Technology
(Australia) Limited and DataTraceID Pty Limited where future taxable profit is expected. Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences and losses can be utilised.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period except where the tax arises from a transaction which is
recognised in other comprehensive income or equity, in which case the tax is recognised in other comprehensive income or equity respectively.
There is no deferred tax liabilities in other tax jurisdictions.
Tax consolidation
DataDot Technology Limited and its wholly owned Australian controlled entities implemented the tax consolidated legislation as of 1 July 2003.
The head entity, DataDot Technology Limited and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax
amounts. As DataDot is in a cumulative tax loss position, DataDot has not applied the group allocation approach in determining the appropriate amount of current
taxes and deferred taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, DataDot Technology Limited also recognises the current tax liabilities (or assets) and the deferred tax assets
arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group when it is probable that future taxable profit
will allow the deferred tax asset to be recovered.
DataDot Technology Limited has not entered into any tax funding agreements with the tax consolidated entities.
6
Auditors' Remuneration
The auditor of DataDot Technology Limited is AMW (Audit) Pty Limited (2022: AMW (Audit) Pty Limited)
Amounts paid or payable for audit services by AMW (Audit) Pty Limited (2022: AMW (Audit) Pty Limited):
An audit or review of the financial statements
2023
$
2022
$
75,000
75,000
75,000
75,000
DataDot Technology LimitedAnnual Report 2023Page 31
Notes to the Financial Statements
for the year ended 30 June 2023
7
Dividends
No dividends declared or paid during the year. No franking credits are available.
8
Earnings Per Share
Basic earnings / (loss) per share (cents per share)
Diluted earnings / (loss) per share (cents per share)
Net profit / (loss) after income tax expense used in calculating profit / (loss) per share
Weighted average number of shares :
Weighted average number of shares used in calculating basic and diluted earnings per share
Adjustments for calculation of diluted earnings per share
Adjusted weighted average number of shares
Shares and share rights issued subsequent to end of the year :
Nil.
Diluted earnings per share
2023
$
(0.009)
(0.009)
(115,370)
2022
$
0.524
0.524
6,521,197
No
1,229,800,966
No
1,243,562,617
-
-
1,229,800,966
1,251,508,652
Share rights and options issued to shareholders and related parties are considered to be potential ordinary shares and have been considered in determination of
diluted earnings per share. The calculation of diluted earnings per share assumes conversion, exercise or other issue of potential ordinary shares that would have a
dilutive effect on earnings per share.
9
Cash and Cash Equivalents
Reconciliation of cash
Cash at the end of the financial year shown in the consolidated statement of cash flows is reconciled as follows :
Cash at bank and on hand
Cash Flow Information
Reconciliation of profit after tax to net cash from operations :
Profit / (Loss) after income tax expense for the year
Add/(less) items classified as investing/financing activities:
Interest received
Increase / Decrease in Shares Issued
Add/(less) non-cash items:
Depreciation, amortisation and impairment
Disposal of plant and equipment
Revaluation of financial liability
Share based payments
Impairment for doubtful accounts
Changes in assets and liabilities :
(Increase)/ Decrease in trade and other receivables
(Increase) / Decrease in deferred tax
(Increase) / Decrease in inventories
(Increase) / Decrease in grant receivable
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in current tax liabilities
Increase / (Decrease) in other liabilities
Increase / (Decrease) in employee benefits
2023
$
2022
$
2,117,501
2,117,501
3,179,549
3,179,549
(115,370)
6,521,197
(33,193)
-
226,704
-
-
-
-
(35,990)
115,392
(60,233)
100,170
(132,638)
1,250
(183,387)
19,923
(529)
-
202,247
-
-
-
-
482,980
(5,701,507)
(183,968)
(42,454)
18,944
1,250
(158,080)
(33,531)
Net cash earned / (used) in operating activities
(97,372)
1,106,549
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments with original maturities of three months or less which are readily
convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
DataDot Technology LimitedAnnual Report 2023Page 32
Notes to the Financial Statements
10
Financial Assets
Term Deposits
11
Trade and Other Receivables
Trade receivables
Provision for impairment
Prepayments
Other receivables
Impairment of receivables
for the year ended 30 June 2023
2023
$
750,000
2023
$
569,806
(182,664)
387,142
136,267
-
523,409
2022
$
-
2022
$
544,531
(170,807)
373,724
113,695
-
487,419
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss
provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the
days past due. The loss allowance provision as at 30 June 2023 is determined as follows, the expected credit losses incorporate forward looking information.
30 June 2023
Expected loss rate (%)
Gross carrying amount ($)
ECL provision
30 June 2022
Expected loss rate (%)
Gross carrying amount ($)
ECL provision
< 30 days
overdue
< 60 days
overdue
< 90 days
overdue
> 90 days
overdue
Current
0.00%
275,590
-
0.00%
89,701
-
0.00%
202,188
-
0.00%
138,073
-
0.00%
3,954
-
0.00%
16,615
-
0.00%
210
-
0.00%
5,297
-
91.17%
200,352
182,664
Total
32.06%
569,806
182,664
93.67%
182,357
170,807
31.37%
544,531
170,807
Reconciliation of changes in the provision for impairment of receivables is as follows:
Balance at beginning of the year (calculated in accordance with AASB 139)
Amount restated through opening retained earnings on adoption of AASB 9
Opening impairment allowance calculated under AASB 9
Additional impairment loss recognised
Amounts written off as uncollectible
Movement through provision
Balance at end of the year
2023
$
170,807
-
170,807
-
-
11,857
182,664
2022
$
176,901
-
176,901
-
-
(6,094)
170,807
The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The ECL on trade receivables are estimated
using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are
specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast
direction of conditions at the reporting date.
There has been no change in the estimation techniques or significant assumptions made during the current reporting period.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of
recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings or when the trade receivables are over 2 years past
due, whichever occurs first.
DataDot Technology LimitedAnnual Report 2023Page 33
Notes to the Financial Statements
for the year ended 30 June 2023
12
Inventories
Raw materials
Finished goods
Goods in transit
2023
$
253,411
199,049
-
452,460
2022
$
199,657
191,235
1,335
392,226
Accounting treatment
Inventories including raw materials and finished goods are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows :
Raw materials – purchase cost on either the weighted average cost or on first-in, first-out basis; and
Finished goods – cost of direct materials and labour and a proportion of variable and fixed manufacturing overheads based on normal
operating capacity. Costs are assigned on the basis of weighted average costs.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make
the sale. Inventory is written down through an obsolescence provision if necessary.
13
Plant and Equipment
Plant and equipment - at cost
Accumulated depreciation
Total owned plant and equipment
Plant and equipment under lease
Accumulated depreciation
Total plant and equipment under lease
Leasehold improvements - at cost
Accumulated depreciation
Total leasehold improvements
Movements in carrying amounts
Balance as at 1 July 2021
Additions
Disposals
Depreciation expense for the year
Exchange adjustments
Balance at 30 June 2022
Additions
Disposals
Depreciation expense for the year
Exchange adjustments
Balance at 30 June 2023
2023
$
2,081,369
(1,768,924)
312,445
205,212
(191,524)
13,688
587,034
(87,788)
499,246
2022
$
2,036,731
(1,712,194)
324,537
202,982
(180,051)
22,931
448,035
(368,960)
79,075
825,380
426,543
Owned Plant and
Equipment
Plant and
Equipment
under lease
Leasehold
Improvements
$
118,269
242,209
-
(35,278)
(663)
324,537
36,536
-
(50,210)
1,583
312,445
$
48,875
-
-
(25,385)
(559)
22,931
-
-
(9,970)
727
13,688
$
221,182
-
-
(140,996)
(1,111)
79,075
586,070
-
(166,613)
713
499,246
Totals
$
388,326
242,209
-
(201,659)
(2,332)
426,543
622,606
-
(226,792)
3,023
825,380
Accounting treatment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment.
Depreciation
Depreciation is calculated over the useful life of the asset using a combination of straight-line basis and diminishing value method. The estimated useful lives of
office equipment is over 4 years, plant and equipment over 10 years and leasehold improvements over 10 years.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
Derecognition
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in profit or loss in the year the asset is derecognised.
DataDot Technology LimitedAnnual Report 2023Page 34
Notes to the Financial Statements
14
Trade and Other Payables
Trade payables
Sundry creditors and accruals
Other taxes payable
for the year ended 30 June 2023
2023
$
69,188
226,328
-
295,516
2022
$
256,266
171,888
-
428,154
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered
a reasonable approximation of fair value due to the short-term nature of the balances.
Accounting treatment
The Group measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the
effective interest rate method.
The financial liabilities of the Group comprise trade payables.
Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from
the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST.
Cash flows in the Statement of financial position are included on a gross basis and the GST component of cash flows arising from investing and financing activities
which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
15
Employee Benefits
Current
Employee benefits
Non Current
Employee benefits
Employee benefits
Aggregate employee benefits provision :-
Balance at beginning of the year
Additional provisions
Amount used
Balance at end of the year
Accounting treatment
Short-term and other long-term employee benefits
2023
$
98,970
2022
$
80,363
6,595
5,278
85,640
67,167
(47,242)
105,565
96,942
70,499
(81,801)
85,640
A liability is recognised for benefits accruing to employees in respect of wages and salaries and annual leave in the period in which the related service is rendered at
the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the
related service.
The current provision for all employee benefits includes all unconditional entitlements where employees have completed the required period of service. The amount
is presented as current since the consolidated entity does not have unconditional right to defer settlement. However based on past experience, the consolidated
entity does not expect all employees to take the full amount of accrued annual and long service leave within the next twelve months.
(i) Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in
provisions in respect of employees’ service up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Long service leave
(ii)
The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality Australian
corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
DataDot Technology LimitedAnnual Report 2023Page 35 Notes to the Financial Statements
16
Provisions
Current
Other provisions
Other provisions
for the year ended 30 June 2023
2023
$
7,105
7,105
2022
$
7,105
7,105
A provision of $7,105 (2022 : $7,105) estimating potential amounts payable under an agreement with an Australian motor vehicle distributor where DataDot has
agreed to remit the theft excess (to a maximum of $800) payable by automobile owners in the event that vehicles are stolen and remain unrecovered (subject to
conditions) is included in Other Provisions.
Accounting treatment
Provisions are recognised when DataDot has a present obligation (legal or constructive) when, as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account
the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).
17
Other Liabilities
Current
Deferred income
Revenue received in advance
Other Current Liabilities
Non-Current
Other liabilities
Property and Equipment Leases
18
Issued capital
Issued capital at beginning of financial period
Less Shares Cancelled during the year:
Unmarketable Parcel Share Buy-back
Shares issued or under issue during the year :
Share placement
Shares under the Rights Issue
Share issue costs
Vested share rights issued during the year under the ESRP
Issued capital at the end of the financial period
There is no current on-market share buy-back.
2023
$
8,247
16,837
199,202
224,286
20
305,472
305,492
2022
$
21,247
16,837
85,118
123,202
-
13,381
13,381
2023
No
1,243,869,466
2023
$
41,612,795
2022
No
1,241,869,466
2022
$
41,596,795
(32,916,683)
(197,500)
-
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
16,000
-
-
-
1,210,952,783
41,415,295
1,243,869,466
41,612,795
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.
Capital Management
When managing capital, management's objective is to ensure the entity continues as a going concern as well as to maintain optimal returns to shareholders and
benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the entity. The capital risk
management policy remains unchanged from 30 June 2022 Annual Report.
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.
DataDot Technology LimitedAnnual Report 2023Page 36
Notes to the Financial Statements
19
Reserves
Foreign currency translation reserve
for the year ended 30 June 2023
2023
$
(8,431)
2022
$
(8,270)
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
Employee equity benefits reserve
Balance at beginning of financial year
Movement in share-based payments
Deferred Tax Liability on Employee Share Reserve
Employee equity benefits reserve
387,598
-
(96,900)
290,699
403,598
(16,000)
-
387,598
The employee equity benefits reserve is used to record the value of share based payments provided to employees, including KMP, as part of their remuneration.
Refer to Note 23.
Other Reserves
Balance at beginning of financial year
Transfer to Accumulated Losses
-
-
-
(678,623)
678,623
-
This reserve is used to record the differences which may arise as a result of transactions with non-controlling interests that do not result in a loss of control. This
reserve has been realloacted to accumulated losses in a reserve simplication process during the year.
Total Reserves
20
Commitments
Operating lease commitments
Committed at the reporting date and recognised as liabilities, payable:
Within one year
One to five years
Refer to note 27 for information on leases for 2023.
282,268
379,328
2023
$
2022
$
199,454
305,472
504,926
86,850
11,991
98,841
Remuneration commitments
Commitments for the payment of salaries and other remuneration under long term employment contracts in existence at the reporting date but not recognised as
liabilities.
Minimum remuneration payments payable:
Within one year
119,500
119,500
21
Contingent Liabilities
Guarantees
DataDot has issued bank guarantees of $34,375 (2022: $34,375). No liability was recognised by DataDot in relation to the bank guarantee as the fair value of the
guarantee is immaterial.
Insurance company initiative
Under a sales agreement with an insurance company, DataDot has agreed to remit the insurance policy excess on behalf of insurance policy holders who have
applied dots to their vehicles and whose vehicles have been stolen. A provision has been made (refer Note 16 Provisions). The estimate is based on the probability
of claims being made. Should these estimates prove incorrect then an adjustment may have to be made to either increase or decrease the amount due and payable.
Theft deterrent system rebate contingencies
Under an agreement with an Australian motor vehicle distributor, DataDot has agreed to remit the theft excess (to a maximum of $800) payable by automobile
owners in the event that vehicles are stolen and remain unrecovered (subject to certain conditions). A provision has been made (refer Note 16 Provisions). The
estimate is based on the probability of vehicles being stolen and unrecovered and claims being made. Should these estimates prove incorrect then an adjustment
may have to be made to either increase or decrease the amount due and payable.
Tax related contingencies - transfer pricing
DataDot has offshore operations in the United Kingdom and has recently closed its operations in United States but retains the business which it services out of
Australia. There are intra Group transactions, which include DataDot and its subsidiaries. These transactions are on an arm's length basis and are conducted at
normal market prices and on normal commercial terms.
DataDot Technology LimitedAnnual Report 2023Page 37
Notes to the Financial Statements
22
Subsidiaries and Associated Entities
Ultimate parent entity
DataDot Technology Limited
Wholly-owned subsidiaries
DataDot Technology (Australia) Pty Limited
DataDot Technology USA Inc.
DataTraceID (USA) Inc
DataDot Technology (UK) Limited
DataTraceID Europe Limited
DataTraceID Pty Limited
Associated entities
Brandlok Brand Protection Solutions Pty Limited
23
Key Management Personnel Disclosures
Compensation
Principal place of business /
Country of Incorporation
Ownership interest %
2023
2022
for the year ended 30 June 2023
Australia
Australia
USA
USA
UK
UK
Australia
Australia
100
100
100
100
100
100
20
100
100
100
100
100
100
20
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below:
Remuneration of key management personnel :
Short term employee benefits
Post employment benefits
24
Related Party Transactions
Parent entity
DataDot Technology Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 21.
Associated entities
Nil
2023
$
410,035
78,953
488,988
2022
$
395,363
38,379
433,742
Key management personnel
Disclosures relating to remuneration for key management personnel are set out in Note 23 and the remuneration report in the directors' report.
Other transactions during the year are:
Interest Paid by the company on Convertible Notes
Rent received on premises leased by the group
Reimbursement of expenses incurred in the normal course of business
Payment by the Group of Vault Licence Fees
2023
-
-
36,056
-
2022
-
-
51,707
26,723
Amounts owing from / (to) Directors and Director Related entities at balance date: (since received)
Amounts owing to Property Vault International Pty Ltd (since paid)
1,387
-
11,396
-
25
Financial Risk Management
DataDot's principal financial instruments comprise finance leases and cash and short-term deposits. The main purpose of these financial instruments is to raise
finance for DataDot’s operations. DataDot has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its
operations. It is, and has been throughout the period under review, DataDot’s policy that no trading in financial instruments shall be undertaken. The main risks
arising from DataDot’s financial instruments are cash flow interest rate risk, liquidity risk, foreign currency risk and credit risk. The Board reviews and agrees policies
for managing each of these risks and they are summarised below.
Risk Exposures and Responses
The main risks DataDot is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk and foreign
currency risk.
Interest Rate Risk
The group is not subject to any interest rate risk. Convertible notes previously issued at a fixed interest rate have been redeemed.
DataDot Technology LimitedAnnual Report 2023Page 38 Notes to the Financial Statements
for the year ended 30 June 2023
25
Financial Risk Management (continued)
Foreign exchange risk
As a result of significant investment in wholly-owned controlled entities in the United States and the United Kingdom, DataDot’s statement of financial position can
be affected significantly by movements in the exchange rates. DataDot does not seek to hedge this exposure.
DataDot also has transactional currency exposures. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit’s functional
currency. As each of the individual entities within the Group primarily transact in their own respective currency, foreign currency risk is deemed to be minimal.
DataDot does require its operating units to use forward currency contracts to eliminate the currency exposures on any individual transactions in excess of $100,000
for which payment is anticipated more than one month after DataDot has entered into a firm commitment for a sale or purchase. There has been no such
transaction during the year. It is DataDot's policy not to enter into forward contracts until a firm commitment is in place and to negotiate the terms of the hedge
derivatives to exactly match the terms of the hedged item to maximise hedge effectiveness.
The effect of volatility of foreign exchange rates within expected reasonable possible movements would not be material.
Price risk
DataDot's exposure to commodity price risk is minimal.
Credit risk
DataDot trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it DataDot's policy to securitise its trade and other
receivables.
It is DataDot's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are
monitored on an ongoing basis with the result that DataDot's exposure to bad debts is not significant. There has been no change to credit risk since initial
recognition.
Liquidity risk
Liquidity risk arises from the financial liabilities of DataDot and DataDot’s subsequent ability to meet their obligations to repay their financial liabilities as and when
they fall due.
DataDot’s objective is to maintain a balance between continuity of funding and flexibility through the use of loans, convertible notes, finance leases and hire
purchase contracts. DataDot manages liquidity risk by monitoring cash flow and maturity profiles of financial assets and liabilities.
Maturity analysis of financial assets and liabilities based on management's expectations
The risk implied from the values shown in the tables below, reflects a balanced view of cash inflows and outflows. Leasing obligations, trade payables and other
financial liabilities mainly originate from the financing of assets used in our ongoing operations such as plant and equipment and investments in working capital (e.g.
inventories and trade receivables). These assets are considered in DataDot’s overall liquidity risk.
Consolidated entity 30 June 2023
Financial Assets
Cash and cash equivalents
Trade and other receivables
Grant and term deposit interest receivables
Financial Liabilities
Trade and other payables
Net maturity
Consolidated entity 30 June 2022
Financial Assets
Cash and cash equivalents
Trade and other receivables
Grant receivable
Financial Liabilities
Trade and other payables
Net maturity
Within 1 Year
$
2,117,501
387,142
46,351
2,550,995
295,516
2,255,479
Within 1 Year
$
3,179,549
373,724
146,521
3,699,793
428,154
3,271,639
DataDot Technology LimitedAnnual Report 2023Page 39 Notes to the Financial Statements
for the year ended 30 June 2023
25
Financial Risk Management (continued)
Remaining contractual maturities
The tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash
flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash
flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2023
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Convertible notes payable
Total non-derivatives
Consolidated - 2022
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Convertible notes payable
Total non-derivatives
average
%
1 year or less
$
years
$
contractual
$
-
295,516
-
295,516
-
295,516
-
-
-
295,516
average
%
1 year or less
$
years
$
contractual
$
-
428,154
-
428,154
-
409,210
-
-
-
409,210
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair values.
26
Option and Share Based Payments
Expenses arising from share based payments to Key Management Personnel :
Total expense arising from options and share based payments during the period
2023
$
-
-
-
2022
$
-
-
-
No shares were issued under the Share Loan Scheme during the current financial year or the previous financial year.
Movements in share rights for the financial year
Balance at the beginning of the period
Rights granted
Shares issued
Rights expired/cancelled
Balance at the end of the period
Movements in share options for the financial year
Balance at the beginning of the period
Options issued
Options expired
Balance at the end of the period
2023
No
2023
Avg issue $
-
-
-
-
-
-
-
-
-
2022
No
2,000,000
-
(2,000,000)
-
-
2022
Avg issue $
0.0300
-
0.0080
-
2023
No
2023
Avg issue $
2022
No
2022
Avg issue $
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share rights are granted by the Board, under the DataDot Technology Executive Share Rights Plan, on such terms and conditions as the Board determines, to eligible
employees. A grant of share rights does not confer any right or interest in shares until all terms and conditions have been satisfied. They confer no voting rights. At
pre-determined vesting intervals, subject to grantees satisfying the terms and conditions of grant, including continuous employment, each share right provides an
entitlement to the issue of one ordinary share in the Company.
DataDot Technology LimitedAnnual Report 2023Page 40
Notes to the Financial Statements
for the year ended 30 June 2023
26
Option and Share Based Payments (continued)
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
10/10/2016
1/07/2019
26/11/2016
26/11/2019
$0.016
$0.027
83.03%
$0.016
$0.050
79.80%
NIL
NIL
2.158%
2.158%
$0.0061
$0.004
No options were issued in FY22 and FY23 and all Options previously issued have now expired.
Accounting treatment
Share based payment transactions - when applicable
Equity settled transactions:
No new Share Based Payments have been provided by DataDot during the year.
DataDot had a share-based payments scheme whereby the company provided benefits to its employees (including KMP) in the form of share-based payments,
whereby employees render services in exchange for rights over shares (equity-settled transactions).
The Executive Share Rights Plan (ESRP) (when operative) provides benefits to senior executives of DataDot.
The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted.
For share options granted during any year, the cost of equity-settled transactions are measured at fair value on the grant date. Fair value is independently
determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at
grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
For shares issued under the share loan scheme during any year, the cost of equity-settled transactions are measured at fair value on the grant date. Fair value is
independently determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the scheme, the impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the
scheme, together with non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees to receive
payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service
conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting, the cumulative charge to the statement of comprehensive income is the product of:
(i) The grant date fair value of the award.
(ii)
(iii) The expired portion of the vesting period.
The current best estimate of the number of awards that will vest, taking into account such factors as the likelihood of employee turnover
The charge to the statement of profit or loss for the period is the cumulative amount as calculated above less the amounts already charged in previous periods.
There is a corresponding entry to equity.
Until an award has vested, any amounts recorded are contingent and will be adjusted if fewer awards vest than were originally anticipated. Any award subject to a
market condition is considered to vest irrespective of whether or not that market condition is fulfilled, provided that all other conditions are satisfied.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. An additional expense is
recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured
at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had expired on the date of cancellation. However, if a new award is substituted for the cancelled award
and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award,
as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (see Note 8).
DataDot Technology LimitedAnnual Report 2023Page 41 Notes to the Financial Statements
27
Leases
Company as a lessee
for the year ended 30 June 2023
The Group have leases over a range of assets including land and buildings and equipment.
Information relating to the leases in place and associated balances and transactions are provided below.
Terms and conditions of leases
The initial term of the building leases for the corporate office, factory and warehouse in Brookvale expires in December 2025. They have 3 year option extension at
the discretion of the Group. The rentals are subject to a fixed increase of 3% for the initial term of the lease.
The term on the UK office, factory and warehouse lease commenced in June 2023 and expires in June 2028 with an option to break the lease at the end of 3 years
(June 2026). The rentals are fixed and there is no option in the lease to extend.
The equipment leases are for various items of plant and equipment. 5 year terms commenced in July 2019 and December 2019 respectively. The lease payments are
fixed.
Lease liabilities
The maturity analysis of lease liabilities based on contractual undiscounted cash flows is shown in the table below:
< 1 year
1 - 5 years
> 5 years
$
220,061
$
335,351
$
-
Total
undiscounted
lease liabilities
$
555,413
Lease liabilities
included in this
Statement Of
Financial Position
$
504,926
2023
Lease liabilities
Extension options
A number of the building leases contain extension options which allow the Group to extend the lease term by up to twice the original non-cancellable period of the
lease.
The Group includes options in the leases to provide flexibility and certainty to the Group operations and reduce costs of moving premises and the extension options
are at the Group's discretion.
At commencement date and each subsequent reporting date, the Group assesses where it is reasonably certain that the extension options will be exercised.
Statement of Profit or Loss and Other Comprehensive Income
The amounts recognised in the statement of profit or loss and other comprehensive income relating to leases where the Group is a lessee are shown below:
Interest expense on lease liabilities
Expenses relating to leases of low-value assets
Amortisation of right-of-use assets
Statement of Cash Flows
Total cash outflow for leases
Accounting treatment
For current year
2023
$
16,072
-
174,016
190,088
193,932
At inception of a contract, the Group assesses whether a lease exists - i.e. does the contract convey the right to control the use of an identified asset for a period of
time in exchange for consideration.
This involves an assessment of whether:
- The contract involves the use of an identified asset - this may be explicitly or implicitly identified within the agreement. If the supplier has a substantive
substitution right then there is no identified asset.
- The Group has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use.
- The Group has the right to direct the use of the asset i.e. decision making rights in relation to changing how and for what purpose the asset is used.
DataDot Technology LimitedAnnual Report 2023Page 42
Notes to the Financial Statements
27
Leases (continued)
for the year ended 30 June 2023
Lessee Accounting
The non-lease components included in the lease agreement have been separated and are recognised as an expense as incurred.
At the lease commencement, the Group recognises a right-of-use asset and associated lease liability for the lease term. The lease term includes extension periods
where the Group believes it is reasonably certain that the option will be exercised.
The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability, initial direct costs, prepaid lease payments,
estimated cost of removal and restoration less any lease incentives received.
The right-of-use asset is depreciated over the lease term on a straight line basis and assessed for impairment in accordance with the impairment of assets
accounting policy.
The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit
in the lease, however where this cannot be readily determined then the Group's incremental borrowing rate is used.
Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. The lease liability is remeasured whether
there is a lease modification, change in estimate of the lease term or index upon which the lease payments are based (e.g. CPI) or a change in the Group's
assessment of lease term.
Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
Exceptions to lease accounting
The Group elected to apply the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of
low-value assets. The Group recognises the payments associated with these leases as an expense on a straight-line basis over the lease term.
28
Parent Entity Information
The following information has been extracted from the books and records of the parent, DataDot Technology Limited and has been prepared in accordance with
Accounting Standards.
Statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Statement of profit or loss and other comprehensive income
Profit / (Loss) after income tax
Total comprehensive income
Parent Entity Commitments and Guarantees
2023
$
2,866,247
5,648,146
8,514,393
241,274
3,250,712
3,491,986
2022
$
3,122,664
6,432,491
9,555,155
327,447
4,123,632
4,451,079
41,415,295
(36,320,769)
141,901
5,236,427
41,612,795
(36,638,120)
141,901
5,116,576
317,350
1,046,287
317,350
1,046,287
DataDot has issued a bank guarantee of $34,375 (2022: $34,375). No liability was recognised by DataDot in relation to the bank guarantee as the fair value of the
guarantee is immaterial.
Remuneration commitments
Commitments for the payment of salaries and other remuneration under long term employment contracts in existence at the
Minimum remuneration payments payable:
Within one year
2023
$
2022
$
119,500
119,500
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 for plant and equipment 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 consolidated entity as disclosed throughout the report.
DataDot Technology LimitedAnnual Report 2023Page 43
Notes to the Financial Statements
29
Events after the reporting period
for the year ended 30 June 2023
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the operations of the Group, the results of it's
operations or the state of affairs in future financial years.
30
Summary of other significant accounting policies
(a) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the
parent entity is disclosed in Note 28.
(b) Principles of consolidation
Interests in associates and joint ventures are equity accounted and are not part of the Consolidated Group.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the
entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing
the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group
transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by DataDot and cease to be consolidated from the date on which control is transferred
from DataDot.
Profits / Losses are attributed to the non-controlling interest even if that results in a deficit balance.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest results in an adjustment between the
carrying amounts of the controlling interest and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of
the adjustment to non-controlling interests and the consideration paid or received is recognised as a separate reserve within equity attributable to owners of
DataDot Technology Limited.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary
together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and
the fair value of any investment retained together with any gain or loss in profit or loss.
(c) Foreign currency translation
Functional and presentation currency
Both the functional and presentation currency of DataDot Technology Limited and its Australian subsidiaries is Australian dollars ($). Each entity in DataDot
determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.
The functional currencies of the overseas subsidiaries are:
Name of overseas subsidiaries
DataDot Technology USA Inc
DataDot Technology (UK) Ltd
Transactions and balances
Functional currency
United States Dollar (US$)
Great Britain Pound (£)
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at balance date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial
transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was
determined.
Translation of Group Companies functional currency to presentation currency
The results of the overseas subsidiaries are translated into Australian dollars (presentation currency) as at the date of each transaction. Assets and liabilities are
translated at exchange rates prevailing at reporting date.
As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation currency of DataDot Technology Limited at the rate of
exchange ruling at the statement of financial position date and their statements of comprehensive income are translated at the average exchange rate for the year.
Exchange variations resulting from the translation are recognised in the foreign currency translation reserve in equity. These variations are recognised in the
statement of comprehensive income in the period.
DataDot Technology LimitedAnnual Report 2023Page 44 Notes to the Financial Statements
for the year ended 30 June 2023
30
Summary of other significant accounting policies (continued)
(d) Revenue recognition
The Group has accounts for revenue in accordance with AASB 15 “Revenue from contracts with customers”. The core principle of the standard is that the Group will
recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services.
(i) Sale of goods
Sale of goods revenue is recognised at a point in time when the Group have met all of their performance obligations including delivery. There is limited judgement in
identifying the point control passes; once the goods have left the warehouse or are delivered, depending on the type of good. The group will have a present right to
payment and retains none of the significant risk and rewards of the goods.
(ii) Rendering of services
Revenue from the rendering of a service is recognised on an over time basis based on stage of completion of the contract.
(iii) Royalties
Revenue is recognised at a point in time when the underlying goods are sold. Fixed rate manufacturing royalties are recognised over the period of the underlying
agreement.
(iv) Licence fee
Licence fees are recognised over time in line with the invoice period. Performance obligations are satisfied over time. This is a faithful depiction of the transfer of
services, as customers simultaneously receive and consume services provided over the invoiced period.
(v) Interest income
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating
the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
(e) Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the
risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Financial assets, other than those designated and effective as hedging instruments, are classified into one of the following categories:
• amortised cost
• fair value through profit or loss (FVTPL), or
• fair value through other comprehensive income (FVOCI).
In the periods presented the Group does not have any financial assets categorised as FVOCI.
The classification is determined by both:
• the entity’s business model for managing the financial asset, and
• the contractual cash flow characteristics of the financial asset.
All revenue and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items,
except for impairment of trade receivables which is presented within other expenses.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
• they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows, and
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial.
The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position.
Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.
DataDot Technology LimitedAnnual Report 2023Page 45 Notes to the Financial Statements
(e) Financial instruments (cont'd)
for the year ended 30 June 2023
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised cost.
Credit losses are measured as the present value of the difference between the cash flows due to the Company in accordance with the contract and the cash flows
expected to be received. This is applied using a probability weighted approach.
Trade receivables
Impairment of trade receivables and contract assets have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected
credit losses. The Group have determined the probability of non-payment of the receivable and contract asset and multiplied this by the amount of the expected
loss arising from default.
The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to
be uncollectable then the gross carrying amount is written off against the associated allowance.
Where the Group renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective
interest rate and any resulting difference to the carrying value is recognised in profit or loss.
Other financial assets measured at amortised cost
Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset,
an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime
losses are estimated and recognised.
Financial liabilities
The Group measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the
effective interest rate method.
The financial liabilities of the Group comprise trade payables and convertible notes.
(f) Adoption of new accounting standards
The consolidated entity 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.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
(g) Critical accounting estimates and judgements
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 and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the
result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions and conditions.
Impairment of non-financial assets
DataDot assesses impairment of all assets at each reporting date by evaluating conditions specific to DataDot and to the particular asset that may lead to
impairment. These include product and manufacturing performance, technology, economic and political environments and future product expectations. If an
impairment trigger exists the recoverable amount of the asset is determined. Given the current uncertain economic environment management considered that the
indicators of impairment were significant enough and as such these assets have been tested for impairment in this financial period.
Capitalised development costs
Development costs are only capitalised by DataDot when it can be demonstrated that the technical feasibility of completing the intangible asset is valid so that the
asset will be available for use or sale.
DataDot Technology LimitedAnnual Report 2023Page 46 Notes to the Financial Statements
for the year ended 30 June 2023
(g) Critical accounting estimates and judgements (cont'd)
Taxation
DataDot's accounting policy for taxation requires management's judgement as to the types of arrangements considered to be a tax on income in contrast to an
operating cost. Judgement is also required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised on the statement of financial
position. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are recognised only where it is
considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits.
Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management's estimates of future cash flows. These
depend on estimates of future production and sales volumes, operating costs, restoration costs, capital expenditure, dividends and other capital management
transactions. Judgements are also required about the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty,
hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities
recognised on the statement of financial position and the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some or
all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the statement of
profit or loss.
Share-based payment transactions
DataDot 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 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 expenses and equity.
Estimation of useful lives of assets
The estimation of the useful lives of property, plant and equipment and finite intangible assets has been based on historical experience as well as lease terms (for
leased equipment). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful
life are made when considered necessary.
Employee benefits provision
As discussed in Note 15, 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,
estimate of attrition rates and pay increases through promotion and inflation have been taken into account.
DataDot Technology LimitedAnnual Report 2023Page 47 Directors’ Declaration
In the Directors’ opinion
•
•
•
•
the attached financial statements and notes thereto 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 thereto 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 thereto give a true and fair view of
the consolidated entity's financial position as at 30 June 2023 and of its
performance for the financial year ended on that date;
there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable; and
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.
On behalf of the directors
Ray Carroll
31 August 2023
DataDot Technology LimitedAnnual Report 2023Page 48 Independent Auditor’s Report to the Members of
DataDot Technology Limited
Opinion
We have audited the financial report of DataDot Technology Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of DataDot Technology Limited, is in accordance with
the Corporations Act 2001, including:
(a) giving a true and fair view of the company's financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of
Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matter described below to be the key audit matter to be
communicated in our report.
Liability limited by a scheme approved under Professional Standards Legislation.
DataDot Technology LimitedAnnual Report 2023Page 49
Revenue Recognition
Key audit matter
Refer to Note 2 of the financial report and Note 30
for accounting policy.
Revenue is a key driver to the Group for the year
ended 30 June 2023
the Group recognised
$2,693,031 (2022: $3,561,177).
The Group’s management focuses on revenue as a
key driver by which the performance of the Group
is measured.
This is a key audit matter due to the differing
revenue streams and total balance of the revenue.
How the matter was addressed in our audit
Our audit procedures included, amongst others;
•
Assessing the Group's accounting policy for
revenue to ensure it has been correctly
formulated in accordance with the Australian
Accounting Standards, with particular focus
on the adoption of AASB 15;
•
•
•
analytical
Performing
to
understand movements and trends in revenue
for comparisons against expectations;
procedures
Checking a sample of revenue transactions to
evaluate whether they were appropriately
recorded as revenue ensuring the amounts
recorded agreed to supporting evidence; and
Performing cut-off testing to ensure that
revenue transactions around year end have
been recorded in the correct reporting period.
Other information
The directors are responsible for the other information. The other information comprises the information
contained in the Group’s Financial Report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report,
and the Annual Report, which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
When we read the Annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors and will request that it is corrected. If it is not corrected,
we will seek to have the matter appropriately brought to the attention of users for whom our report is
prepared.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial report
that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Liability limited by a scheme approved under Professional Standards Legislation.
DataDot Technology LimitedAnnual Report 2023Page 50
In preparing the financial report, the directors is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern
basis of accounting unless the directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website (www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of Datadot Technology Limited, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
AMW AUDIT
Chartered Accountants
BILLY-JOE THOMAS
Director
Dated at Perth, Western Australia this 31 August 2023
Liability limited by a scheme approved under Professional Standards Legislation.
DataDot Technology LimitedAnnual Report 2023Page 51
DataDot Technology Limited - ABN 54 091 908 726
Shareholder Information
ASX Additional Information
Additional information required by the ASX Listing Rule 4.10 and not disclosed elsewhere in this report is set out below.
This information is effective as at 15 October 2023.
Corporate Governance Statement
The corporate governance statement is located on the Company’s website at the
following URL http://www.datadotdna.com/au/investors/corporate_governance/
Statement of Issued Shares
The total number of shareholders is 1,053. There are 1,210,952,783 ordinary fully paid shares listed on the Australian
Securities Exchange. The twenty largest shareholders hold 69.58% of issued capital.
Substantial shareholders
The number of substantial shareholders and their associates are set out below:
Shareholders
Brad Kellas
Appwam Pty Ltd
DMX Capital Partners Limited
Patrix Holdings Pty Ltd
Voting rights
Number of
shares
250,236,143
150,000,001
112,384,127
98,231,662
Ordinary Shares - 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.
On-Market Buyback
There is no current on-market buyback.
Distribution of equity security holders
Holding
1 - 99,999
100,000 - 500,000
500,001 - 1,000,000
1,000,001 - 10,000,000
10,000,001 and over
Total
Holders
Share Rights
257
593
96
90
17
1,053
0
0
0
0
0
0
The number of shareholders holding less than a marketable parcel of ordinary shares is 257.
Securities exchange
The Company is listed on the Australian Securities Exchange.
Unquoted equity securities
There are no unquoted Equity Securities
Voluntary escrow
There are no shares under escrow.
DataDot Technology LimitedAnnual Report 2023Page 52 Shareholder Information - continued
Twenty Largest Shareholders
Number Held
MR BRADLEY CHARLES KELLAS
APPWAM PTY LTD
DMX CAPITAL PARTNERS LTD
PATRIX HOLDINGS PTY LTD
HAMISH EDWARD ELLIOT BROWN
MR COLLIN HWANG
MR NORMAN COLBURN MAYNE
MR SANTO CARLINI & MRS ISABELLA CARLINI
MR DAVID ROGER LLOYD
MR GERALD LEO BASHFORD
HENTA PTY LTD
SI EQUITIES PTY LTD
MRS NUN SOL JANG
CITICORP NOMINEES PTY LIMITED
MR GEOFFREY GEORGE
PJ & DL BURGESS PTY LTD
KEYLOAD PTY LTD
JAMES MCCALLUM
MR WEI MING ZHANG
DAMNN INVESTMENTS PTY LTD
Total Securities of Top 20 Holdings
% of Issued
Shares
20.664%
12.387%
9.281%
8.112%
4.422%
2.605%
1.321%
1.321%
1.231%
1.006%
0.991%
0.916%
0.881%
0.836%
0.713%
0.661%
0.619%
0.551%
0.537%
0.520%
250,236,143
150,000,001
112,384,127
98,231,662
53,549,561
31,544,716
16,000,000
16,000,000
14,912,116
12,180,683
12,000,000
11,093,299
10,668,547
10,122,486
8,634,398
8,000,000
7,500,000
6,666,666
6,500,000
6,300,161
842,524,566
69.575%
Total of Securities
1,210,952,783
DataDot Technology LimitedAnnual Report 2023Page 53 Corporate Information – 2023
DataDot Technology Limited - ABN 54 091 908 726
Offices
Australia & registered office:
8 Ethel Ave, Brookvale, NSW, 2100, Australia
Phone: 61 2 8977 4900
Email: info@datadotdna.com
United Kingdom:
Unit 4, Twickenham Road,
Union Park Industrial Estate,
Norwich, Norfolk, NR6 6NG, UK Phone: +44 0 1603 407171
Directors & Officers
Mr Ray Carroll - Chair
Mr David Lloyd - Independent Non-Executive Director
Mr Patrick Raper - Independent Non-Executive Director
Mr Brad Kellas - Managing Director
Mr Gordon Ogborne - Company Secretary
Auditors
AMW Audit Group,
Level 7, 91 Phillip Street
Parramatta NSW 2150
Bankers
Commonwealth Bank of Australia
Ground Floor, Tower 1, 201 Sussex Street,
Sydney, NSW, Australia, 2000
Share Register
Boardroom Pty Limited
Level 8, 210 George Street, Sydney NSW 2000
Phone: +61 2 9290 9600;
Website www.datadotdna.com
DataDot Technology LimitedAnnual Report 2023Page 54 DataDot Technology Ltd | ACN 091 908 726
PROPERTY
PROTECTED