DOTZ NANO LIMITED
ABN 71 125 264 575
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
CONTENTS
Corporate Directory
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Financial Report
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Additional ASX Information
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CORPORATE DIRECTORY
Directors
Bernie Brookes (cid:884) Non-Executive Chairman
Gideon Shmuel (cid:884) CEO, Executive Director
Doron Eldar (cid:884) Non-Executive Director
Garry Browne - Non-Executive Director
Kerry Harpaz (cid:884) Non-Executive Director
Ian Pamensky (cid:884) Non-Executive Director
Company Secretary
Ian Pamensky
Registered Office
Level 14
330 Collins Street
Melbourne VIC 3000
Auditor
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
PERTH WA 6000
Share Registry
Automic Registry Services
Level 5, 126 Phillip Street
SYDNEY NSW 2000
Securities Exchange Listing
ASX Limited
Level 4 North Tower, Rialto
525 Collins Street
Melbourne VIC 3000
ASX Code (cid:884) DTZ
1 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Dear fellow shareholders,
2021 was a very busy year for Dotz, as we progressed our commercialisation strategy, developed our virus detection
technology, secured distributors and first purchase orders, and prepared for mass production.
Demand for our SARS-CoV-2 virus detection technology is increasing, particularly in densely populated countries with large
tourism industries. The Dotz Test Kits, once delivered offer a fast and effective mass testing solution with broad
applicability across medical facilities, airports, sporting and entertainment venues, and education centres. It facilitates
simultaneous testing of hundreds of samples on-site with results available in under 20 minutes, determined by samples
changing colour.
Regulatory approval is key to opening new markets for our diagnostic technology, and we obtained CE Mark authorisation,
clearing the product for sale in the European Union1. This certification combined with a successful blind clinical trial in the
United States, has enabled us to secure US$2.3 million in orders from our distribution partners.
Distribution partners are key to our growth strategy, enabling us to cost-effectively target, acquire and service customers
in disperse geographic regions. Dotz has four reputable diagnostic distributors for its Test Kits, covering UAE, Sudan, Egypt,
Paraguay, Thailand and Malaysia. In parallel, we continue to progress our US Food and Drug Administration Emergency Use
Authorisation application to access new markets, as well as undertake additional clinical trials to meet country-specific
import requirements.
While the diagnostic sector provides us with immediate revenue opportunities, we have not neglected the broader
authentication sector. Anti-counterfeiting is a $2.2 trillion market with most industries and premium brands being targeted
by counterfeiters. Our non-toxic security taggants have significant competitive advantages over existing solutions and are
embedded directly into materials during manufacturing (cid:884) everything from engine oil and plastics through to textiles and
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naked eye. We have several authentication pilots underway that may convert to large, long-term sales agreements.
Despite the significant progress the Company has achieved in 2021, the year was not without its challenges. The ongoing
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obligations. Outstanding orders currently total more than $1.2 million, however we remain confident that the majority of
these orders will be realised in 2022. On the diagnostic front, extensive quality assurance testing has delayed our ability to
fulfil existing Dotz Test Kit orders.
To sup(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:374)(cid:286)(cid:454)(cid:410)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:393)(cid:346)(cid:258)(cid:400)(cid:286)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:449)(cid:286)(cid:367)(cid:272)(cid:381)(cid:373)(cid:286)(cid:282)(cid:3)(cid:410)(cid:449)(cid:381)(cid:3)(cid:400)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:286)(cid:282)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:286)(cid:454)(cid:286)(cid:272)(cid:437)(cid:410)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:859)(cid:400)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1005)(cid:856)(cid:3)
Garry Browne AM, and Kerry Harpaz bring a wealth of experience in sales and marketing, distribution networks, culture
and teams, and supporting high growth businesses to profitability.
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Despite challenging operating conditions, we have leveraged the versatility of our marking and verification technology to
quickly develop an industry-leading mass testing solution, opening new markets for our business.
And lastly, thank you to our loyal shareholders for your ongoing support. We have significant growth opportunities ahead of
us as we commercialise our industry-leading products within large addressable markets. We look forward to capitalising on
these opportunities and delivering increasing shareholder value.
Bernie Brookes
Dotz Nano Chairman
1 Some countries still have further certification requirements.
1 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Your Directors present their report, together with the financial statements of Dotz Nano Limited ((cid:862)(cid:410)(cid:346)(cid:286)(cid:3) Company(cid:863)) and
controlled entities ((cid:862)(cid:410)(cid:346)(cid:286)(cid:3)Group(cid:863)) for the financial year ended 31 December 2021.
Directors
The names and the particulars of the Directors of the Company during or since the end of the financial year are:
Name
Status
Appointed
Resigned
Bernie Brookes AM
Gideon Shmuel
Doron Eldar
Garry Browne AM
Karry Harpaz
Ian Pamensky
James Cotton
Principal Activities
Non-Executive Chairman
Appointed 15 January 2020
CEO and Executive Director
Appointed 2 September 2021
Non-Executive Director
Appointed 15 January 2020
Non-Executive Director
Appointed 19 May 2021
Non-Executive Director
Appointed 2 September 2021
Non-Executive Director
Appointed 25 September 2020
-
-
-
-
-
Non-Executive Director
Appointed 16 November 2020
Resigned 19 May 2021
The principal continuing activities of the Group during the year is developing, manufacturing and commercialising tagging,
tracing, verification solutions and Diagnostic activity.
Dividends
There were no dividends paid or recommended during the financial year ended 31 December 2021 (2020: Nil).
Financial Review
Dotz Nano Limited had a loss for the year of $7,935,940 (2020: $3,968,996 loss). This included a non-cash amount of
$3,131,433 share-based payments (2020: $1,392,484).
The net assets of the Group have decreased from $5,205,896 at 31 December 2020 to $4,062,471 at 31 December 2021.
As at 31 December 2021, the Group's cash and cash equivalents balance was $4,137,046 (2020: $5,259,087) and had working
capital of $3,568,141 (2020: $4,950,829).
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Review of Operations
In 2021, Dotz continued to commercialise its end-to-end solutions within the authentication and diagnostic domains. The
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Diagnostic
During the year, Dotz continued the development and commercialisation of its SARS-CoV-2 virus detection technology,
known as the Dotz Test Kits.
In January 2021, Dotz obtained authorisation to use the CE mark for its nasopharyngeal swab and saliva based Dotz Test Kits,
clearing the product for sale in the European Union, noting some countries have additional regulatory requirements.
In April 2021, Dotz completed a successful blind clinical trial of its Dotz Test Kits on 73 subjects in the United States with a
broad range of viral loads. Patient nasopharyngeal swab samples were acquired from US-based iQ Genetrix1, and sample
positivity was first tested using the Dotz Test Kit and then confirmed using the CDC 2019-Novel Coronavirus (2019-nCoV)
Real-Time RT-PCR Diagnostic Panel in accordance with FDA requirements. The clinical trial identified 31 positive patient
samples with 97% accuracy and 42 negative patient samples with 100% accuracy.
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(EUA) application, which was initially filed in April 2021. The Company is continuing to progress its US FDA Emergency Use
Authorisation application for both its nasopharyngeal swab and saliva samples. However, it is not able to provide an
estimated timeline for receipt of the regulatory approval.
2 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Review of Operations (Continued)
Dotz entered into two-year distribution agreements for its Test Kits with Hygiene Links for the UAE, Egypt and Sudan and El
Alamo SA in Paraguay. Under these agreements, Dotz received a US$2.1 million purchase order from Hygiene Links for its
Dotz Test Kits and a US$220,000 purchase order from El Alamo SA. Exclusivity for both distribution agreements is subject to
minimum purchase orders. Dotz has not yet fulfilled its existing Dotz Test Kit purchase orders due to ongoing mass
production quality assurance and some customisation by customers. Dotz expects to complete its purchase orders as soon
as it is satisfied as to the quality and applicability of the product.
During the year, Dotz also entered into three-year non-exclusive distribution agreements for its Dotz Test Kits with
ScienceVision Sdn Bhd in Malaysia and World Siam Company Limited in Thailand. The agreements grant the distribution
partners the right to promote, sell and distribute the Dotz Test Kits in the respective regions with conditional exclusivity
subject to minimum first-year purchase orders of US$600,000 in Malaysia and US$250,000 in Thailand.
Authentication
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outstanding orders:
(cid:120) US$450,000 from TT Medical, which was due in Q1 2021 (noting TT Medical made an advance payment of
US$35,000 in 2020 and paid an additional US$215,000 in July 2021) Dotz expects to receive the outstanding
$450,000 order;
(cid:120) US$255,000 from UEG in connection with the second agreement with UEG, which was due in Q1 2021 (noting
UEG paid its commitment under its first agreement in the amount of US$300,000 in 2020); and
(cid:120) A$502,000 from V2 Tech, which was due in Q4 2020 (noting AUD$26,000 was received from V2 Tech in 2020).
While the original timeline obligations for these orders have not been met due to COVID related factors impacting these
customers, Dotz believes that the agreements will be substantively honoured based on discussions with those customers.
In August 2021, Dotz commenced legal proceedings against Canadian PPE manufacturer Breathe Medical Manufacturing Ltd
(cid:296)(cid:381)(cid:396)(cid:3)(cid:296)(cid:258)(cid:349)(cid:367)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:258)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:393)(cid:437)(cid:396)(cid:272)(cid:346)(cid:258)(cid:400)(cid:286)(cid:3)(cid:258)(cid:336)(cid:396)(cid:286)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:856)(cid:3)(cid:38)(cid:381)(cid:367)(cid:367)(cid:381)(cid:449)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:282)(cid:448)(cid:349)(cid:272)(cid:286)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)
advisers, Dotz terminated the binding arbitration against Breathe Medical in December. Dotz reserves the right to pursue a
claim against Breathe Medical.
In April, Dotz entered into supply and distribution agreements with Zohar Dalia Professional LP (cid:884) a subsi(cid:282)(cid:349)(cid:258)(cid:396)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:47)(cid:400)(cid:396)(cid:258)(cid:286)(cid:367)(cid:859)(cid:400)(cid:3)
largest manufacturer and supplier of detergent intermediates and cleaning products. Under the exclusive supply agreement,
Dotz is supplying Zohar Dalia with its non-toxic markers and detectors for use in its new active surface sanitation solution.
Active V-SRD is a slow-release anti-(cid:448)(cid:349)(cid:396)(cid:258)(cid:367)(cid:3)(cid:282)(cid:349)(cid:400)(cid:349)(cid:374)(cid:296)(cid:286)(cid:272)(cid:410)(cid:258)(cid:374)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:437)(cid:410)(cid:349)(cid:367)(cid:349)(cid:400)(cid:286)(cid:400)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:859)(cid:400)(cid:3)(cid:400)(cid:286)(cid:272)(cid:437)(cid:396)(cid:349)(cid:410)(cid:455)(cid:3)(cid:373)(cid:258)(cid:396)(cid:364)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:448)(cid:286)(cid:396)(cid:349)(cid:296)(cid:455)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:3)(cid:400)(cid:437)(cid:396)(cid:296)(cid:258)(cid:272)(cid:286)(cid:3)(cid:400)(cid:258)(cid:374)(cid:349)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)
in real-time. A non-(cid:286)(cid:454)(cid:272)(cid:367)(cid:437)(cid:400)(cid:349)(cid:448)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:410)(cid:396)(cid:349)(cid:271)(cid:437)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:336)(cid:396)(cid:286)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:336)(cid:396)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:396)(cid:381)(cid:373)(cid:381)(cid:410)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:400)(cid:286)(cid:367)(cid:367)(cid:3)(cid:127)(cid:381)(cid:346)(cid:258)(cid:396)(cid:3)(cid:24)(cid:258)(cid:367)(cid:349)(cid:258)(cid:859)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:115)-SRD
solution in multiple approved markets, including the UK, India, Italy, France, Australia, Germany, Spain and throughout
Africa. The two parties are progressing commercialisation of Active V-SRD, fine tuning the liquid formulation to increase
customer useability. The Active V-SRD surface sanitisation wipes are already meeting commercial specifications and Dotz is
building its sales pipeline for both solutions.
Leadership
(cid:47)(cid:374)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1005)(cid:853)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)(cid:400)(cid:410)(cid:396)(cid:286)(cid:374)(cid:336)(cid:410)(cid:346)(cid:286)(cid:374)(cid:286)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:859)(cid:400)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:853)(cid:3)(cid:373)(cid:258)(cid:396)(cid:364)(cid:286)(cid:410)(cid:349)(cid:374)(cid:336)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:410)(cid:396)(cid:349)(cid:271)(cid:437)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:396)tise, appointing three new highly qualified
Directors.
Experienced Australian executive Garry Browne AM joined Dotz as an Independent Director in May, bringing more than four
(cid:282)(cid:286)(cid:272)(cid:258)(cid:282)(cid:286)(cid:400)(cid:859)(cid:3) (cid:400)(cid:286)(cid:374)(cid:349)(cid:381)(cid:396)(cid:3) (cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:349)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3) (cid:410)(cid:381)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:856)(cid:3) (cid:4)(cid:400)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:296)(cid:381)(cid:396)(cid:373)(cid:286)(cid:396)(cid:3) (cid:18)(cid:28)(cid:75)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)t Chair of FMCG company Stuart
Alexander & Co, Mr Browne has a wealth of sales and marketing experience in local and international markets. He replaced
Non-Executive Director James Cotton, who stepped down from the Board due to competing priorities. James remains with
(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:437)(cid:367)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:258)(cid:393)(cid:258)(cid:272)(cid:349)(cid:410)(cid:455)(cid:853)(cid:3)(cid:400)(cid:381)(cid:437)(cid:396)(cid:272)(cid:349)(cid:374)(cid:336)(cid:3)(cid:282)(cid:349)(cid:400)(cid:410)(cid:396)(cid:349)(cid:271)(cid:437)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:859)(cid:400)(cid:3)(cid:393)(cid:396)(cid:381)(cid:282)(cid:437)(cid:272)(cid:410)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:104)(cid:94)(cid:4)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:28)(cid:437)(cid:396)(cid:381)(cid:393)(cid:286)(cid:856)(cid:3)(cid:3)(cid:3)
In September, Mr Gideon Shmuel was appointed as CEO and Executive Director, and Mrs Kerry Harpaz joined the Board as
a Non-Executive Director. Gideon had previous CEO roles at AI computer vision company Cipia and aerospace digital e-
(cid:272)(cid:381)(cid:373)(cid:373)(cid:286)(cid:396)(cid:272)(cid:286)(cid:3)(cid:393)(cid:367)(cid:258)(cid:410)(cid:296)(cid:381)(cid:396)(cid:373)(cid:3)(cid:286)(cid:87)(cid:367)(cid:258)(cid:374)(cid:286)(cid:856)(cid:3)(cid:68)(cid:396)(cid:400)(cid:3)(cid:44)(cid:258)(cid:396)(cid:393)(cid:258)(cid:460)(cid:3)(cid:349)(cid:400)(cid:3)(cid:258)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:373)(cid:393)(cid:367)(cid:349)(cid:400)(cid:346)(cid:286)(cid:282)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:286)(cid:454)(cid:286)(cid:272)(cid:437)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:373)(cid:381)(cid:396)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:374)(cid:3)(cid:1005)(cid:1011)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:400)(cid:859)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:349)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:400)(cid:286)(cid:374)(cid:349)(cid:381)(cid:396)(cid:3)
management and leadership roles, specialising in building large teams and successful cultures, and investing in high growth
companies and growing them into profitability.
Dotz held its Annual General Meeting on 29 July 2021, where all resolutions put to shareholders were passed, excluding
approval to issue former CEO and Director Mr. Uzi Breier options in accordance with his separation agreement.
3 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Significant events after the reporting period
No matters have arisen since the end of the financial year to the date of this report of a material, and unusual nature likely,
in the opinion of the Directors, to affect significantly the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years.
4 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Information on Directors
Mr Bernie Brookes AM
Non-Executive Chairman (Appointed 15 January 2020)
Qualifications
BA, Dip Ed
Experience
Mr. Brookes is an experienced Australian executive, CEO and Chairman with substantial
expertise in retail, supply chain management, wholesale operations and IT systems. He has
more than four decades of business management experience. Previously he was a senior
Executive at Woolworths, CEO of Myer Holdings Limited for nine years and Edcon South Africa
for three years.
Mr. Brookes strengths include expertise in business management, displaying energy and self-
confidence with the ability to find solutions to complex situations through analytical, conceptual
and entrepreneurial skills. Ultimately, he is motivated by results.
(cid:68)(cid:396)(cid:3)(cid:17)(cid:396)(cid:381)(cid:381)(cid:364)(cid:286)(cid:400)(cid:3)(cid:349)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:4)(cid:282)(cid:448)(cid:349)(cid:400)(cid:381)(cid:396)(cid:455)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:116)(cid:381)(cid:396)(cid:367)(cid:282)(cid:3)(cid:90)(cid:286)(cid:410)(cid:258)(cid:349)(cid:367)(cid:3)(cid:18)(cid:381)(cid:374)(cid:336)(cid:396)(cid:286)(cid:400)(cid:400)(cid:3)(cid:258)(cid:400)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)
and is on the Grand Jury for the World Retail Awards. He was awarded an Order of Australia for
(cid:346)(cid:349)(cid:400)(cid:3)(cid:286)(cid:296)(cid:296)(cid:381)(cid:396)(cid:410)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:410)(cid:258)(cid:349)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:87)(cid:346)(cid:349)(cid:367)(cid:258)(cid:374)(cid:410)(cid:346)(cid:396)(cid:381)(cid:393)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:1007)(cid:1004)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:400)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:87)(cid:258)(cid:410)(cid:396)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:859)(cid:400)(cid:3)
largest retail industry award.
Interest in Shares and
Options
1,225,000 Ordinary Shares
440,000 unlisted options with exercise price of AU$0.07 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.20 and expiry date of 31 December 2023
Special Responsibilities
Nil
Directorship held in other
listed entities (last 3 years)
Funtastic Limited (resigned 26 November 2020)
Mr Gideon Shmuel
CEO and Executive Director (Appointed 2 September 2021)
Qualifications
MA, Marketing Management, 1995 - 1996
BA, Business Studies, 1992 - 1995
Experience
Mr Shmuel is a highly-experienced CEO and senior executive with strong sales, business
development and marketing expertise. He has extensive experience scaling innovative tech
companies globally, and is the previous CEO of AI computer vision company Cipia and aerospace
digital e-commerce platform ePlane. More recently, Mr Shmuel is a venture partner at London-
based venture capital firm Downing Ventures.
Interest in Shares and
Options
Nil
Special Responsibilities
Nil
Directorships held in other
listed entities (last 3 years)
Nil
Mr Doron Eldar
Non-Executive Director (Appointed 15 January 2020)
Qualifications
BA in Business Economics
5 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Information on Directors
Experience
Mr. Eldar brings more than a decade of experience in senior leadership roles and is currently a
Melbourne-based partner at venture capital fund SIBF and Oxen9. Mr Elder has extensive
experience within start-up and pre-revenue companies, executing the development of new
business models, channel growth and effective go-to-market strategies.
Interest in Shares and
Options
370,371 Ordinary Shares
440,000 unlisted options with exercise price of AU$0.07 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
500,000 unlisted options with exercise price of AU$0.20 and expiry date of 31 December 2023
Special Responsibilities
Nil
Directorships held in other
listed entities (last 3 years)
Nil
Mr Garry Browne AM
Non- Executive Director
Qualifications
University of Technology Sydney - Bachelor of Business
Harvard Business School - OPM
Experience
(cid:68)(cid:396)(cid:3) (cid:17)(cid:396)(cid:381)(cid:449)(cid:374)(cid:286)(cid:3) (cid:346)(cid:258)(cid:400)(cid:3) (cid:373)(cid:381)(cid:396)(cid:286)(cid:3) (cid:410)(cid:346)(cid:258)(cid:374)(cid:3) (cid:1008)(cid:1004)(cid:3) (cid:455)(cid:286)(cid:258)(cid:396)(cid:400)(cid:859)(cid:3) (cid:400)(cid:286)(cid:374)(cid:349)(cid:381)(cid:396)(cid:3) (cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:349)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3) (cid:258)(cid:272)(cid:396)(cid:381)(cid:400)(cid:400)(cid:3)
government, not-for-profit and corporate entities, including as the former CEO and current
Chair of FMCG company Stuart Alexander & Co. Mr Browne is on the Board of the Australian
War Memorial ANZAC Foundation and the UNSW International House Residential College.
Interest in Shares and
Options
288,550 Ordinary Shares*
* Includes 28,550 shares held by his son.
Special Responsibilities
Nil
Ms Kerry Harpaz
Non-Executive Director
Qualifications
LL.B - College of Management Academic Studies, Israel
Practical Legal Training- The Collage Of law, Sydney, Australia
Mind, Brain and Behaviour 1 (cid:884) Psychology Course (cid:884) Melbourne University, Australia
Sustainability and Corporate Responsibility (cid:884) Macquarie University, Australia
Positive Psychology (cid:884) Tel Aviv University, Israel
Experience
Mrs Harpaz, LLB, has more than 17 years of experience in senior management and leadership
with speciality in building large teams with a focus on coaching and mentoring to build
successful cultures.
Interest in Shares and
Options
27,352,894 Ordinary Shares
Special Responsibilities
Nil
6 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Information on Directors
Mr Ian Pamensky
Non-Executive Director and Company Secretary
Qualifications
B.Com, BAccS (Hons), CA
Experience
Interest in Shares and
Options
Mr. Pamensky has over 25 (cid:455)(cid:286)(cid:258)(cid:396)(cid:400)(cid:859)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:349)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:400)(cid:286)(cid:272)(cid:396)(cid:286)(cid:410)(cid:258)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:400)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:271)(cid:381)(cid:410)(cid:346)(cid:3)(cid:94)(cid:68)(cid:28)(cid:3)
and ASX-listed entities. Since 1997, Mr Pamensky has held various roles with ASX-listed
companies.
Nil Ordinary Shares
205,000 unlisted options with exercise price of AU$0.07 and expiry date of 31 December 2022
250,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
250,000 unlisted options with exercise price of AU$0.12 and expiry date of 31 December 2022
250,000 unlisted options with exercise price of AU$0.20 and expiry date of 31 December 2023
Special Responsibilities
Nil
Directorships held in other
listed entities (last 3 years)
Nil
Mr James Cotton
Non-Executive Director (Appointed 16 November 2020)
Qualifications
BL & Sc
Experience
(cid:68)(cid:396)(cid:3) (cid:18)(cid:381)(cid:410)(cid:410)(cid:381)(cid:374)(cid:3) (cid:346)(cid:258)(cid:400)(cid:3) (cid:373)(cid:381)(cid:396)(cid:286)(cid:3) (cid:410)(cid:346)(cid:258)(cid:374)(cid:3) (cid:1005)(cid:1009)(cid:3) (cid:455)(cid:286)(cid:258)(cid:396)(cid:400)(cid:859)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:349)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3) (cid:286)(cid:400)(cid:410)(cid:258)(cid:271)(cid:367)(cid:349)(cid:400)(cid:346)(cid:349)(cid:374)(cid:336)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3) (cid:410)(cid:286)(cid:272)(cid:346)(cid:374)(cid:381)(cid:367)(cid:381)(cid:336)(cid:455)(cid:3)
companies, including more than a decade as the founder and CEO of globally renowned
governance, risk and compliance software company CMO Software.
Interest in Shares and
Options
Nil
Special Responsibilities
Nil
Directorships held in other
listed entities (last 3 years)
Nil
Information on Key Management
Dr Michael Shtein
Chief Technology Officer (appointed 1 August 2015)
Qualifications
Ph.D. Nano Technology
Experience
Dr. Shtein holds a Ph.D. in Nano Technology interdisciplinary studies from Ben-Gurion
University, together with and M.Sc in Chemical Engineering and MBA. He was the Chief Material
Engineer (cid:884) R&D Development for the Israeli Ministry of Defence and has developed several new
materials and compounds. His main research topic is composite nanomaterials (CNT, Graphene,
WS2).
7 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Information on Directors
Mr Tomer Segev
Chief Financial Officer (appointed 1 January 2019, resigned, acting Chief Financial Officer until
17 March 2022 and employed to 31 March 2022)
Qualifications
BA, MBA, CPA
Experience
Mr. Segev is an experienced executive with extensive knowledge of investment banking and
international finance. He has previous CFO experience with various commercialised start-up
companies, including RoundForest and NorthBit.
Mr Segev has worked in the United States as an Associate Vice President at CSG Partners and as
a Senior Analyst at PWC. Later he was Head of M&A for investment bank Rosario Capital.
8 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Information on Company Secretary
Details for Mr Ian Pamensky are provided above under Information on Directors.
Meetings of Directors
The number of formal meetings of Directors held during the period and the number of meetings attended by each director was
as follows:
Appointed
Resigned
Bernie Brookes AM
Appointed 15 January 2020
Gideon Shmuel
Appointed 2 September 2021
Doron Eldar
Appointed 15 January 2020
Garry Browne AM
Appointed 19 May 2021
Karry Harpaz
Ian Pamensky
James Cotton
Appointed 2 September 2021
Appointed 25 September 2020
-
-
-
-
-
Appointed 16 November 2020
Resigned 19 May 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:68)(cid:28)(cid:28)(cid:100)(cid:47)(cid:69)(cid:39)(cid:94)
Number
eligible to
attend
Number
Attended
10
3
10
6
3
10
3
10
3
10
6
3
9
-
Unissued shares under option
At the date of this report, the unissued ordinary shares Dotz Nano Limited under option are as follows:
Expiry Date
17 June 2022
Grant Date
18 June 2020
31 December 2022
20 August 2020
31 December 2022
20 August 2020
10 September 2022
10 September 2020
19 October 2023
19 October 2020
31 December 2023
30 July 2020
16 October 2022
16 October 2020
11 May 2023
6 February 2021
4 December 2022
28 February 2021
31 December 2022
31 December 2022
31 December 2022
31 December 2023
29 July 2021
29 July 2021
29 July 2021
29 July 2021
25 November 2023
25 August 2021
4 August 2023
10 July 2024
3 August 2021
10 July 2021
Exercise Price
Number Under Option
AU$0.09
AU$0.12
AU$0.15
AU$0.09
AU$0.38
AU$0.20
AU$0.30
AU$0.048
AU$0.001
AU$0.07
AU$0.12
AU$0.12
AU$0.20
AU$0.25
AU$0.23
AU$0.20
4,629,630
500,000
500,000
4,629,630
5,000,000
3,550,000
400,000
375,000
1,000,000
1,085,000
1,250,000
1,250,000
1,250,000
4,000,000
1,500,000
250,000
31,169,260
No option holder has any right under the options to participate in any other share issue of the Company or of any other entity.
Performance Shares
At the date of this report, there were no performance shares on issue.
9 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Proceedings on behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
Indemnifying Officers
The Company indemnifies each of its Directors, officers and company secretary. The Company indemnifies each director or
officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability
arises out of conduct involving lack of good faith, and in defending legal and administrative proceedings and applications for
such proceedings.
The Company must use its best endeavours to insure a director or officer against any liability, which does not arise out of
conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Company must also use its
best endeavours to insure a Director or officer against liability for costs and expenses incurred in defending proceedings
whether civil or criminal.
Insurance premiums
During the year the Company paid insurance premiums to insure directors and officers against certain liabilities arising out of
their conduct while acting as an officer of the Group. Under the terms and conditions of the insurance contract, the nature of
the liabilities insured against and the premium paid cannot be disclosed.
Environmental Regulations
In the normal course of business, there are no environmental regulations or requirements that the Company is subject to.
Future Developments, Prospects and Business Strategies
(cid:100)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3) (cid:393)(cid:396)(cid:349)(cid:374)(cid:272)(cid:349)(cid:393)(cid:258)(cid:367)(cid:3) (cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:349)(cid:374)(cid:336)(cid:3) (cid:258)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:455)(cid:3) (cid:349)(cid:400)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:272)(cid:381)(cid:373)(cid:373)(cid:286)(cid:396)(cid:272)(cid:349)(cid:258)(cid:367)(cid:349)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:381)(cid:296)(cid:3) (cid:410)(cid:286)(cid:272)(cid:346)(cid:374)(cid:381)(cid:367)(cid:381)(cid:336)(cid:349)(cid:286)(cid:400)(cid:3) (cid:349)(cid:374)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:258)(cid:282)(cid:448)(cid:258)(cid:374)(cid:272)(cid:286)(cid:282)(cid:3)
materials industry, multiple applications, including biomedical, in-product authentication, tracing, lighting and sensors-
specifically using (cid:336)(cid:396)(cid:258)(cid:393)(cid:346)(cid:286)(cid:374)(cid:286)(cid:3)(cid:395)(cid:437)(cid:258)(cid:374)(cid:410)(cid:437)(cid:373)(cid:3)(cid:282)(cid:381)(cid:410)(cid:400)(cid:3)(cid:894)(cid:39)(cid:89)(cid:24)(cid:400)(cid:895)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:296)(cid:437)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:853)(cid:3)(cid:393)(cid:396)(cid:381)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:400)(cid:410)(cid:396)(cid:258)(cid:410)(cid:286)(cid:336)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)
to continue to develop and commercialise these technologies.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, BDO Audit (WA) Pty Ltd, as part of the
terms of its audit engagement agreement against claims by third parties arising from their report on the financial report.
Non-audit Services
During the year, BDO Audit (WA) Pty Ltd, (cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:3)(cid:282)(cid:349)(cid:282)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:400)(cid:286)(cid:396)(cid:448)(cid:349)(cid:272)(cid:286)(cid:400)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:258)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:349)(cid:396)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:437)(cid:410)(cid:381)(cid:396)(cid:455)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:400)(cid:856)(cid:3)
Other BDO firms and divisions provided tax services to the Group. Details of their remuneration can be found within the
financial statements at Note 6 (cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)Remuneration.
In the event that non-audit services are provided by BDO Audit (WA) Pty Ltd, the Board has established certain procedures to
ensure that the provision of non-audit services are compatible with, and do not compromise, the auditor independence
requirements of the Corporations Act 2001. These procedures include:
(cid:120)
(cid:120)
non-audit services will be subject to the corporate governance procedures adopted by the Company and will be reviewed
by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
ensuring non-(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3) (cid:400)(cid:286)(cid:396)(cid:448)(cid:349)(cid:272)(cid:286)(cid:400)(cid:3) (cid:282)(cid:381)(cid:3) (cid:374)(cid:381)(cid:410)(cid:3) (cid:349)(cid:374)(cid:448)(cid:381)(cid:367)(cid:448)(cid:286)(cid:3) (cid:396)(cid:286)(cid:448)(cid:349)(cid:286)(cid:449)(cid:349)(cid:374)(cid:336)(cid:3) (cid:381)(cid:396)(cid:3) (cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3) (cid:381)(cid:449)(cid:374)(cid:3) (cid:449)(cid:381)(cid:396)(cid:364)(cid:853)(cid:3) (cid:258)(cid:272)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3) (cid:349)(cid:374)(cid:3) (cid:258)(cid:3) (cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:381)(cid:396)(cid:3)
decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards.
(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:47)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:24)(cid:286)(cid:272)(cid:367)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)
(cid:100)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:282)(cid:286)(cid:272)(cid:367)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:3)31 December 2021 has been received and can be found on page
20 of the financial report.
10 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Remuneration Report (Audited)
This remuneration report for the year ended 31 December 2021 outlines the remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 (Cth), as amended (Act) and its regulations. This information
has been audited as required by section 308(3C) of the Act.
The remuneration report is presented under the following sections:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Introduction
Remuneration governance
Executive remuneration arrangements
Non-executive Director fee arrangements
Details of remuneration
Additional disclosures relating to equity instruments
Loans to key management personnel (KMP) and their related parties
Other transactions and balances with KMP and their related parties
(cid:115)(cid:381)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:400)(cid:346)(cid:258)(cid:396)(cid:286)(cid:346)(cid:381)(cid:367)(cid:282)(cid:286)(cid:396)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:367)(cid:258)(cid:400)(cid:410)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:859)(cid:400)(cid:3)(cid:258)(cid:374)(cid:374)(cid:437)(cid:258)(cid:367)(cid:3)(cid:336)(cid:286)(cid:374)(cid:286)(cid:396)(cid:258)(cid:367)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)
1.
Introduction
Key Management Personnel (KMP) have authority and responsibility for planning, directing and controlling the major
activities of the Group. KMP comprise the directors of the Company and identified key management personnel.
Key management personnel covered in this report are as follows:
Name
Status
Appointed
Resigned
Bernie Brookes AM
Gideon Shmuel
Doron Eldar
Garry Browne AM
Karry Harpaz
Ian Pamensky
James Cotton
Non-Executive Chairman
15 January 2020
CEO and Executive Director
2 September 2021
Non-Executive Director
15 January 2020
Non-Executive Director
19 May 2021
Non-Executive Director
2 September 2021
Non-Executive Director
25 September 2020
N/A
N/A
N/A
N/A
N/A
N/A
Non-Executive Director
16 November 2020
19 May 2021
Michael Shtein
Chief Technology Officer
1 August 2015
N/A
Tomer Segev
Chief Financial Officer
1 January 2019
Resigned, acting Chief
Financial Officer until 17
March 2022 and employed
to 31 March 2022
Compensation levels for KMP are competitively set to attract and retain appropriately qualified and experienced directors
and executives. The Board may seek independent advice on the appropriateness of compensation packages, given trends in
comparable (cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:349)(cid:286)(cid:400)(cid:3)(cid:271)(cid:381)(cid:410)(cid:346)(cid:3)(cid:367)(cid:381)(cid:272)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:286)(cid:374)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:400)(cid:410)(cid:396)(cid:258)(cid:410)(cid:286)(cid:336)(cid:455)(cid:856)
2. Remuneration governance
The Directors believe the Company is not currently of a size nor are its affairs of such complexity as to warrant the
establishment of a separate remuneration committee. Accordingly, all matters are considered by the full Board of Directors,
in accordance with a remuneration committee charter.
During the financial year, the Company did not engage any remuneration consultants.
11 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
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Remuneration Report (Audited)
3. Executive remuneration arrangements
The compensation structures are designed to attract suitably qualified candidates, reward the achievement of strategic
objectives, and achieve the broader outcome of creation of value for shareholders. Compensation packages may include a
mix of fixed compensation, equity-based compensation, as well as employer contributions to superannuation funds. Shares
and options may only be issued subject to approval by shareholders in a general meeting.
During the year ended 31 December 2021 the Company had three appointed executives, being Mr Gideon Shmuel as CEO
and Executive Director, Dr Michael Shtein as the Chief Technology Officer and Mr Tomer Segev as the Chief Financial Officer.
The terms of their Executive Employment Agreements with Dotz Nano Limited are summarised in the following table.
Executive Name
Mr Gideon Shmuel
Dr Michael Shtein
Mr Tomer Segev
Remuneration
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Executive gross salary of ILS 66,400 (~US$21,350)* and car expenses of ILS 3,500
(~US$1,125) per month. In addition, employee is entitled to full social benefits (Pension
fund, study fund and disability insurance)
Annual bonus of up to 30% subject to (cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:336)(cid:258)(cid:349)(cid:374)(cid:400)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:60)(cid:87)(cid:47)(cid:859)(cid:400)
Reimbursement of reasonable business expenses incurred in the ordinary course of the
(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:349)(cid:373)(cid:271)(cid:437)(cid:396)(cid:400)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:349)(cid:286)(cid:400)(cid:854)(cid:3)(cid:258)(cid:374)(cid:282)
(cid:100)(cid:346)(cid:349)(cid:400)(cid:3)(cid:258)(cid:336)(cid:396)(cid:286)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:271)(cid:286)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:286)(cid:349)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:455)(cid:3)(cid:381)(cid:374)(cid:3)(cid:1010)(cid:3)(cid:373)(cid:381)(cid:374)(cid:410)(cid:346)(cid:400)(cid:859)(cid:3)(cid:374)(cid:381)(cid:410)(cid:349)(cid:272)(cid:286)(cid:856)
Long term incentives:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
500,000 unlisted options with an exercise price of zero and expiry date of 29 March
2024;
2,000,000 unlisted options with an exercise price of AU41.25 cents and expiry date
of 29 March 2023;
2,500,000 unlisted options with an exercise price of AU48.12 cents and expiry date
of 29 March 2024; and
2,500,000 unlisted options with an exercise price of AU55 cents and expiry date of
29 March 2025
The options have not been issued and are subject to shareholder approval
Executive compensation of US$15,000 for 75% position, plus company leased car;
Reimbursement of reasonable business expenses incurred in the ordinary course of the
(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:349)(cid:373)(cid:271)(cid:437)(cid:396)(cid:400)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:349)(cid:286)(cid:400); and
This agreement may be terminated by either party with 30 days notice from Dr Michael
(cid:94)(cid:346)(cid:410)(cid:286)(cid:349)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:1007)(cid:3)(cid:373)(cid:381)(cid:374)(cid:410)(cid:346)(cid:400)(cid:859)(cid:3)(cid:374)(cid:381)(cid:410)(cid:349)(cid:272)(cid:286)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:856)
Executive gross salary of ILS 38,000 for 75% position (~US$12,218) per month. In addition,
employee is entitled to full social benefits (Pension fund, study fund and disability
insurance) plus Company leased car from 1 December 2019;
Reimbursement of reasonable business expenses incurred in the ordinary course of the
(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:349)(cid:373)(cid:271)ursement policies; and
(cid:100)(cid:346)(cid:349)(cid:400)(cid:3)(cid:258)(cid:336)(cid:396)(cid:286)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:271)(cid:286)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:286)(cid:349)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:455)(cid:3)(cid:381)(cid:374)(cid:3)(cid:1007)(cid:3)(cid:373)(cid:381)(cid:374)(cid:410)(cid:346)(cid:400)(cid:859)(cid:3)(cid:374)(cid:381)(cid:410)(cid:349)(cid:272)(cid:286)(cid:856)
In addition to the above appointed executives Mr Doron Eldar is as a director in Dotz Nano Ltd in Israel. His remuneration
for this role is included in the fees received for his role as Director of Dotz Nano Limited.
*Amounts stated in USD are based on the exchange rate at the date of the report.
12 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
(cid:4)(cid:410)(cid:3) (cid:410)(cid:346)(cid:349)(cid:400)(cid:3) (cid:400)(cid:410)(cid:258)(cid:336)(cid:286)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3) (cid:282)(cid:381)(cid:286)(cid:400)(cid:3) (cid:374)(cid:381)(cid:410)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3) earnings- or earnings related measures to be an appropriate key
(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:272)(cid:258)(cid:410)(cid:381)(cid:396)(cid:3)(cid:894)(cid:60)(cid:87)(cid:47)(cid:895)(cid:856)(cid:3)(cid:47)(cid:374)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:346)(cid:349)(cid:393)(cid:3)(cid:271)(cid:286)(cid:410)(cid:449)(cid:286)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286) consequences
(cid:296)(cid:381)(cid:396)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3) (cid:400)(cid:346)(cid:258)(cid:396)(cid:286)(cid:346)(cid:381)(cid:367)(cid:282)(cid:286)(cid:396)(cid:3) (cid:449)(cid:286)(cid:258)(cid:367)(cid:410)(cid:346)(cid:853)(cid:3) (cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:400)(cid:3) (cid:349)(cid:374)(cid:3) (cid:400)(cid:346)(cid:258)(cid:396)(cid:286)(cid:3) (cid:393)(cid:396)(cid:349)(cid:272)(cid:286)(cid:3) (cid:258)(cid:396)(cid:286)(cid:3) (cid:258)(cid:374)(cid:258)(cid:367)(cid:455)(cid:400)(cid:286)(cid:282)(cid:3) (cid:258)(cid:400)(cid:3) (cid:449)(cid:286)(cid:367)(cid:367)(cid:3) (cid:258)(cid:400)(cid:3) (cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3) (cid:400)(cid:437)(cid:272)(cid:346)(cid:3) (cid:258)(cid:400)(cid:3) (cid:400)(cid:437)(cid:272)(cid:272)(cid:286)(cid:400)(cid:400)(cid:296)(cid:437)(cid:367)(cid:3)
completion of business development and corporate activities.
Performance Conditions Linked to Remuneration
The Group has established and maintains Dotz Nano Limited Employee Incentive Option Plan (Plan) to provide ongoing
incentives to Eligible Participants of the Company. Eligible Participants include:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
a Director (whether executive or non-executive) of any Group Company;
a full or part time employee of any Group Company;
a casual employee or contractor of a Group Company; or
a prospective participant, being a person to whom the Offer was made but who can only accept the Offer if
arrangement has been entered into that will result in the person becoming an Eligible Participant.
The Board adopted the Plan to allow Eligible Participants to be granted Options to acquire shares in the Company.
The purpose of the Plan is to assist in the reward and motivation of Eligible Participants and link the reward of Eligible
Participants to performance and the creation of Shareholder value. It is designed to align the interest of Eligible Participants
more closely to the interests of Shareholders by providing an opportunity for Eligible Participants to receive shares. It
provides the Eligible Participants with the opportunity to share in any future growth in value of the Company and provides
greater incenti(cid:448)(cid:286)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:28)(cid:367)(cid:349)(cid:336)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:87)(cid:258)(cid:396)(cid:410)(cid:349)(cid:272)(cid:349)(cid:393)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:296)(cid:381)(cid:272)(cid:437)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:367)(cid:381)(cid:374)(cid:336)(cid:286)(cid:396)-term goals. During the year ended 31 December
2021 a total of 5,035,000 options have been issued under this plan (2020: 17,950,000 options).
4. Non-executive Director fee arrangements
The Board policy is to remunerate Non-executive Directors at a level to comparable companies for time, commitment, and
responsibilities. Non-(cid:286)(cid:454)(cid:286)(cid:272)(cid:437)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3) (cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3) (cid:373)(cid:258)(cid:455)(cid:3) (cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:3) (cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3) (cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:272)(cid:381)(cid:373)(cid:393)(cid:286)(cid:374)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) (cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:859)(cid:3) (cid:296)(cid:286)(cid:286)(cid:400)(cid:3) (cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3) (cid:258)(cid:367)(cid:367)(cid:3) (cid:373)(cid:258)(cid:349)(cid:374)(cid:3)
Board activities and membership of any committee. The Board has no established retirement or redundancy schemes in
relation to Non-executive Directors.
The maximum aggregate amount of fees that can be paid to Non-executive Directors is presently limited to an aggregate of
AU$500,000 per annum and any change is subject to approval by shareholders at the General Meeting. Fees for Non-
(cid:286)(cid:454)(cid:286)(cid:272)(cid:437)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3) (cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3) (cid:258)(cid:396)(cid:286)(cid:3) (cid:374)(cid:381)(cid:410)(cid:3) (cid:367)(cid:349)(cid:374)(cid:364)(cid:286)(cid:282)(cid:3) (cid:410)(cid:381)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3) (cid:381)(cid:296)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:856)(cid:3) (cid:44)(cid:381)(cid:449)(cid:286)(cid:448)(cid:286)(cid:396)(cid:853)(cid:3) (cid:410)(cid:381)(cid:3) (cid:258)(cid:367)(cid:349)(cid:336)(cid:374)(cid:3) (cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:859)(cid:3) (cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:400)(cid:3) (cid:449)(cid:349)(cid:410)(cid:346)(cid:3)
shareholder interests, the Directors are encouraged to hold shares in the Company. Total fees for the Non-Executive
Directors for the financial year were $357,586 (2020: $185,183) and cover main Board activities only. Non-executive
Directors may receive additional remuneration for other services provided to the Group.
13 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
5. Details of Remuneration
31-Dec-21
Directors:
Bernie Brookes
Gideon Shmuel1
Doron Eldar
Ian Pamensky
James Cotton2
Garry Browne2
Kerry Harpaz3
Key management:
Michael Shtein
Tomer Segev
Total
Short Term
Salary, Fees &
Commissions
Post-
Employment
Superannuation
Other*
Share-based
payments
Total
Performance
based
remuneration
US$
US$
US$
US$
US$
162,266
240,819
112,685
18,030
17,206
27,867
19,532
203,286
199,852
1,001,543
-
-
-
-
-
-
-
-
-
-
-
6,438
-
-
-
-
-
-
-
19,399
25,837
312,996
388,755
312,996
153,189
-
-
-
475,262
636,012
425,681
171,219
17,206
27,867
19,532
244,347
177,654
447,633
396,905
1,589,937
2,617,317
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
* Other includes benefits such as car lease, fuel and etc paid to KMP.
31-Dec-20
Directors:
Bernie Brookes4
Uzi Breier5
Doron Eldar4
Ian Pamensky6
James Cotton7
John Bullwinkel8
Ashley Krongold8
Key management:
Michael Shtein
Tomer Segev
Yoni Engle
Total
Short Term
Salary, Fees &
Commissions
Post-
Employment
Superannuation
Other*
Share-based
payments
Total
Performance
based
remuneration
US$
US$
US$
US$
US$
-
-
19,694
10,401
102,066
222,187
57,231
4,142
5,178
8,630
7,888
194,585
138,633
157,402
897,942
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,335
17,049
2,426
60,504
102,066
252,282
57,231
4,142
5,178
8,630
7,888
365,830
252,936
257,082
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-
-
-
-
-
149,910
97,254
97,254
354,819
1,313,265
* Other includes benefits such as car lease, fuel and etc paid to KMP.
1 Appointed as CEO and Executive Director on 2 September 2021. The total salary and other includes $135,211 and $3,886 relating to
services prior to appointment as CEO and Executive Director of the Company.
2 Mr James Cotton resigned on 19 May 2021 and Mr Garry Browne was appointed on 19 May 2021
3 Appointed on 2 September 2021
4 Appointed on 15 January 2020
5 Resigned 25 September 2020, this amount includes $63,756 relating to post termination.
6 Appointed on 25 September 2020
7 Appointed on 16 November 2020
8 Resigned on 23 March 2020
14 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
6. Additional disclosures relating to equity instruments
KMP Shareholdings
The number of ordinary shares in Dotz held by each KMP of the Group during the financial year is as follows:
31-Dec-21
Directors:
Bernie Brookes
Gideon Shmuel
Doron Eldar
Ian Pamensky
James Cotton
Garry Browne
Kerry Harpaz
Key management:
Michael Shtein
Tomer Segev
Total
Balance at the start
of the year
Granted as
Remuneration
during the year
Issued on
exercise of
options during
the year
Other changes
during the year1
Balance at
end of Year
625,000
-
277,778
-
-
-
-
5,146,201
-
6,048,979
-
-
-
-
-
-
-
-
-
-
-
-
92,593
-
-
-
12,307,408
2,000,000
2,000,000
16,400,001
600,000
-
-
-
-
288,550
15,045,486
1,225,000
-
370,371
-
-
288,550
27,352,894
-
-
7,146,201
2,000,000
15,934,036
38,383,016
Options awarded, vested and lapsed during the year
The table below discloses the number of share options granted, vested or lapsed during the year.
Share options do not carry any voting or dividend rights and can only be exercised once the vesting conditions have been
met, until their expiry date.
KMP Options Holdings
The number of options over ordinary shares held by each KMP of the Group during the financial year is as follows:
31-Dec-21
Directors:
Bernie Brookes
Gideon Shmuel **
Doron Eldar
Ian Pamensky
James Cotton
Garry Browne
Kerry Harpaz
Key management:
Michael Shtein
Tomer Segev
Total
Balance at
the start of
the year
Granted as
remuneration
during the
year*
Exercised
during the
year
-
92,593
-
-
-
-
1,940,000
-
1,940,000
955,000
-
-
-
-
-
(92,593)
-
-
-
(12,307,408)
Other
changes
during the
year1
-
-
-
-
-
-
12,307,408
Balance at
the end of
the year
Vested and
exercisable
Unvested
and un-
exercisable
1,940,000
-
1,940,000
955,000
-
-
1,440,000
-
1,440,000
705,000
-
-
-
500,000
-
500,000
250,000
-
-
-
4,000,000
4,000,000
8,092,593
-
-
4,835,000
(2,000,000)
(2,000,000)
(16,400,001)
12,307,408
2,000,000
2,000,000
8,835,000
1,000,000
1,000,000
5,585,000
1,000,000
1,000,000
3,250,000
* The options granted to Directors were approved at the AGM held on 29 July 2021 under ASX Listing Rule 10.14.
**The Board agreed to grant Mr Gideon Shmuel 7,500,00 options, the options have not been issued and subject to
shareholder approval.
1 Other changes during the year include amounts held at appointment date where director was appointed during the year and
on- market trade.
15 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
The following options were granted and issued to KMP during the year ended 31 December 2021:
a)
1,085,000 Director Options (440,000 Bernie Brookes, 440,000 Doron Eldar, 205,000 Ian Pamensky)
The issue of 1,085,000 options (Tranche 1) with exercise price of AU$0.07 and expiry date of 31 December 2022 under
the Employee Share Option Plan (ESOP) granted to Board of Directors for past services. The options vest immediately
and were subject to shareholder approval which was granted on 29 July 2021. The options were issued on 6 August
2021 and a total expense of $239,372 was recognised at 31 December 2021. The options were granted as part of the
(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3) (cid:18)(cid:75)(cid:115)(cid:47)(cid:24)-19 cost reduction measures in lieu of certain payments due to Board members and Company
secretary under their relevant consultancy and services agreements.
b)
2,500,000 Director Options (1,000,000 Bernie Brookes, 1,000,000 Doron Eldar, 500,000 Ian Pamensky)
The issue of 2,500,000 options (Tranche 2 and 3) with exercise price of AU$0.12 and expiry date of 31 December 2022
under the Employee Share Option Plan (ESOP) granted to Board of Directors for past services. The options vest
immediately and were subject to shareholder approval which was granted on 29 July 2021. The options were issued
on 6 August 2021 and a total expense of $475,562 was recognised at 31 December 2021.
c)
1,250,000 Director Options (500,000 Bernie Brookes, 500,000 Doron Eldar, 250,000 Ian Pamensky)
The issue of 1,250,000 options (Tranche 4) with exercise price of AU$0.20 and expiry date of 31 December 2023 under
the Employee Share Option Plan (ESOP) granted to Board of Directors. The options were issued on 6 August 2021 and
vest on 31 December 2022. A portion of the value, being expense of $64,248 was recognised at 31 December 2021.
The following option to KMP which are subject to shareholder approval have been recognised during the year ended 31
December 2021:
d)
500,000 Employee Options (Gideon Shmuel)
The vesting on 500,000 options (Tranche 1) with exercise price of AU$Nil and expiry date of 29 March 2024 under the
Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval which.
The options vest 12 months from 29 March 2021 (commencement date). A portion of expense of $94,438 was
recognised at 31 December 2021.
e)
2,000,000 Employee Options (Gideon Shmuel)
The vesting on 2,000,000 options (Tranche 2) with exercise price of AU$0.413 and expiry date of 29 March 2023 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 12 months from 29 March 2021 (commencement date). A portion of expense of $131,362 was
recognised at 31 December 2021.
f)
2,500,000 Employee Options (Gideon Shmuel)
The vesting on 2,500,000 options (Tranche 3) with exercise price of AU$0.481 and expiry date of 29 March 2024 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 24 months from 29 March 2021 (commencement date). A portion of expense of $93,349 was
recognised at 31 December 2021.
g)
2,500,000 Employee Options (Gideon Shmuel)
The vesting on 2,500,000 options (Tranche 4) with exercise price of AU$0.55 and expiry date of 29 March 2025 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 36 months from 29 March 2021 (commencement date). A portion of expense of $69,606 was
recognised at 31 December 2021.
16 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
A summary of the inputs used in the valuation of the options and shares is as follows:
Options
Financial year
Exercise price
Director
Options
(Tranche 1)
Director
Options
(Tranche 2-3)
Director
(Tranche 4)
Employee
Options
(Tranche 1)
Employee
Options
(Tranche 2)
Employee
Options
(Tranche 3)
Employee
Options
(Tranche 4)
2021
2021
2021
A$0.070
AU$0.120
AU$0.200
2021
Nil
2021
2021
2021
AU$0.413
AU$0.481
AU$0.550
Price at measurement
AU$0.360
AU$0.360
AU$0.360
AU$0.340
AU$0.340
AU$0.340
AU$0.340
Grant date
Vesting date
29-Jul-21
29-Jul-21
29-Jul-21
(ii)
(ii)
(ii)
(ii)
6-Aug-21
29-Jul-21
31-Dec-22
29-Mar-22
29-Mar-22
29-Mar-23
29-Mar-24
Expected volatility (i)
85%
85%
85%
N/A
75%
75%
75%
Expiry date
31-Dec-22
31-Dec-22
31-Dec-23
29-Mar-24
23-Mar-23
23-Mar-24
23-Mar-25
Expected dividends
Risk free interest rate
Nil
0.01%
Nil
Nil
0.01%
0.01%
Nil
N/A
Nil
Nil
Nil
0.08%
0.08%
0.08%
Value per option or share
AU$0.292
AU$0.252
AU$0.229
AU$0.340
AU$0.118
AU$0.134
AU$0.150
Number of options
1,085,000
2,500,000
1,250,000
500,000
2,000,000
2,500,000
2,500,000
Total value in AUD
AU$317,720 AU$631,217 AU$286,090 AU$170,000 AU$236,467 AU$336,078 AU$375,900
Total value in USD
US$239,372 US$475,562 US$215,542 US$124,440 US$173,094 US$246,009 US$275,159
(i) Volatility was calculated based on historical trading prices over relevant periods.
(ii) Options have not been granted as subject to shareholder approval, valued at commencement date of 29 March 2021.
KMP performance rights and performance shares holdings
No performance rights and performance shares were on issue as at 31 December 2021, (2020: nil).
Shares issued on exercise of options
The amounts paid per ordinary share on the exercise of options at the date of exercise were as follows:
Exercise date
5 May 2021
5 May 2021
5 May 2021
5 May 2021
5 May 2021
5 May 2021
10 May 2021
10 May 2021
6 August 2021
6 August 2021
6 August 2021
6 August 2021
6 August 2021
27 August 2021
14 September 2021
27 October 2021
20 December 2021
20 December 2021
20 December 2021
10 January 2022
Amount paid per share
AU$0.060
AU$0.085
AU$0.100
AU$0.090
AU$0.070
AU$0.048
AU$0.085
AU$0.001
AU$0.100
AU$0.048
AU$0.000
AU$0.070
AU$0.090
AU$0.000
AU$0.000
AU$0.000
AU$0.050
AU$0.048
AU$0.090
AU$0.000
Amounts unpaid on shares issued on the exercise of options were $217,834 (AU$300,000)
17 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
7.
Loans to key management personnel (KMP) and their related parties
On 10 December 2021, Company entered into a Loan Agreement of up to A$300,000 (2020: Nil) (excluding interest) to
Marzameno Ltd (Marzameno), related to Director Kerry Harpaz for the purpose of funding the payment of the exercise of up
to 1/3 of 10,000,000 Options (each with an exercise price of $0.09 and exercisable on or before 11 December 2021).
The loan is unsecured, accrues interest at 6% per annum, and must be repaid in full on 31 March 2022. Until all monies owing
under the Loan Agreement are repaid in full, Marzameno must not dispose of any of 10,000,000 Ordinary Shares (issued
pursuant on the exercise of 10,000,000 Options held by Marzameno) subject to certain exceptions (such as the Company
providing consent).
Balance at the start of the year
Interest paid and payable for the year
Interest not charged
Balance at the end of the year
Highest indebtedness during the year
US$
-
394
-
218,227
218,227
No write-downs or allowances for doubtful receivables have been recognised in relation to this loan.
8. Other transactions and balances with KMP and their related parties
(cid:87)(cid:437)(cid:396)(cid:272)(cid:346)(cid:258)(cid:400)(cid:286)(cid:400)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:400)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:448)(cid:258)(cid:367)(cid:286)(cid:374)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:393)(cid:396)(cid:286)(cid:448)(cid:258)(cid:349)(cid:367)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:396)(cid:373)(cid:859)(cid:400)(cid:3)(cid:367)(cid:286)(cid:374)(cid:336)(cid:410)(cid:346)(cid:3)(cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:258)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)
acquired the following services from entities that (cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:367)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:373)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:336)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:393)(cid:286)(cid:396)(cid:400)(cid:381)(cid:374)(cid:374)(cid:286)(cid:367).
Some Directors have held positions in other companies, where it is considered they control or significantly influence the
financial or operating policies of those entities. In the last financial year, the following entities provided company secretarial
and advisory services to the Group. Transactions between related parties are on normal commercial terms and conditions
no more favourable than those available to other parties unless otherwise stated.
Entity
Ian Pamensky (cid:884) CFO 2 Grow
Oxen 9 Ltd
Nature of
transactions
Company
secretarial services
Advisory services
Key
Management
Personnel
Total Transactions
Payable Balance
2021
US$
2020
US$
2021
US$
2020
US$
Ian Pamensky
54,089
20,298
4,357
4,624
Doron Eldar
72,377
65,832
-
-
The company secretarial fees provided by Mr Ian Pamensky totalled to $54,089 in 2021 and $20,298 in 2020 (from
appointment date of 25 September 2020). The current company secretarial fees are AU$6,000 per month.
Oxen 9 Ltd is related to Mr Doron Eldar, the amounts included in the above table relate to advisory services fees during the
year. The current monthly fees are AU$8,000 per month.
18 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:90)(cid:28)(cid:87)(cid:75)(cid:90)(cid:100)
Remuneration Report (Audited)
9. (cid:115)(cid:381)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:400)(cid:346)(cid:258)(cid:396)(cid:286)(cid:346)(cid:381)(cid:367)(cid:282)(cid:286)(cid:396)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:367)(cid:258)(cid:400)(cid:410)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:859)(cid:400)(cid:3)(cid:258)(cid:374)(cid:374)(cid:437)(cid:258)(cid:367)(cid:3)(cid:336)(cid:286)(cid:374)(cid:286)(cid:396)(cid:258)(cid:367)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(AGM)
At the AGM held on 29 July 2021, 100% of the votes received supported the adoption of the remuneration report for the
year ended 31 December 2020. The company did not receive any specific feedback at the AGM regarding its remuneration
practices.
REMUNERATION REPORT (AUDITED) (END)
Signed in accordance with a resolution of the Board of Directors.
Bernie Brookes
Chairman & Interim CEO
25 March 2022
19 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF DOTZ NANO
LIMITED
As lead auditor of Dotz Nano Limited for the year ended 31 December 2021, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Dotz Nano Limited and the entities it controlled during the period.
Ashleigh Woodley
Director
BDO Audit (WA) Pty Ltd
Perth, 25 March 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
Revenue from contracts with customers
Cost of Sales
Gross profit
Research and development expenses
General, administrative, selling and marketing expenses
Share based compensation
Finance costs
Loss before income tax
Income tax expense
Loss for the year
Note
2
3
3
16
4
2021
US$
304,595
(122,190)
182,405
(1,519,442)
(3,357,675)
(3,131,433)
(109,795)
2020
US$
375,811
(264,881)
110,930
(634,112)
(2,119,086)
(1,392,484)
65,756
(7,935,940)
(3,968,996)
-
-
(7,935,940)
(3,968,996)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
15
(231,713)
322,180
Total comprehensive loss for the year
(8,167,653)
(3,646,816)
Basic loss per share (cents per share)
7
(1.98)
(1.24)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying notes.
21 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Inventory
Loan to related party
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Contract liability
Lease liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
(cid:94)(cid:44)(cid:4)(cid:90)(cid:28)(cid:44)(cid:75)(cid:62)(cid:24)(cid:28)(cid:90)(cid:94)(cid:859)(cid:3)(cid:28)(cid:89)(cid:104)(cid:47)(cid:100)(cid:122)(cid:3)
Issued capital
Reserves
Accumulated losses
(cid:94)(cid:44)(cid:4)(cid:90)(cid:28)(cid:44)(cid:75)(cid:62)(cid:24)(cid:28)(cid:90)(cid:94)(cid:859)(cid:3)(cid:28)(cid:89)(cid:104)(cid:47)(cid:100)(cid:122)
Note
8(a)
9
10
12
11
13
11
11
14
15
2021
US$
4,137,046
78,589
73,013
47,743
218,227
4,554,618
235,380
540,741
776,121
2020
US$
5,259,087
189,478
28,360
14,475
-
5,491,400
214,958
47,845
262,803
5,330,739
5,754,203
575,941
88,606
-
321,930
986,477
281,791
281,791
428,797
38,685
33,757
39,332
540,571
7,736
7,736
1,268,268
548,307
4,062,471
5,205,896
32,864,049
6,489,479
28,971,254
3,589,759
(35,291,057)
(27,355,117)
4,062,471
5,205,896
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
22 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED SATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
Issued Capital
Option
Reserve
US$
US$
Foreign
Currency
Reserve
US$
Accumulated
Losses
US$
Total
US$
Balance at 1 January 2020
22,627,901
2,102,496
(44,611)
(23,386,121)
1,299,665
Loss for the year
-
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners,
recognised directly in equity
Issue of shares (net of cost)
Exercise of options
Share based payments
4,844,368
1,316,195
182,790
Balance at 31 December 2020
28,971,254
-
-
-
1,209,694
3,312,190
-
(3,968,996)
(3,968,996)
322,180
-
322,180
322,180
(3,968,996)
(3,646,816)
-
-
-
-
-
-
277,569
(27,355,117)
4,844,368
1,316,195
1,392,484
5,205,896
Balance at 1 January 2021
28,971,254
3,312,190
277,569
(27,355,117)
5,205,896
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners,
recognised directly in equity
Issue of shares (net of cost)
Exercise of options
Share based payments
-
-
-
591,268
3,301,527
-
Balance at 31 December 2021
32,864,049
-
-
-
-
-
3,131,433
6,443,623
-
(7,935,940)
(7,935,940)
(231,713)
-
(231,713)
(231,713)
(7,935,940)
(8,167,653)
-
-
-
-
-
-
45,856
(35,291,057)
591,268
3,301,527
3,131,433
4,062,471
The above Consolidated Statements of Changes in Equity should be read in conjunction with the accompanying notes.
23 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED SATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Note
2021
US$
2020
US$
291,629
394,461
(4,348,322)
(2,828,359)
(108,346)
7,355
(14,228)
459
Net cash used in operating activities
8 (b)
(4,157,684)
(2,447,667)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Proceeds from investments
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds for the issue of shares
Proceeds from exercise of options
Lease Payments
Net cash from financing activities
11
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Foreign exchange
Cash and cash equivalents at the end of the financial year
8(a)
(165,861)
29,274
(136,587)
591,268
3,088,234
(221,060)
3,458,442
(835,829)
5,259,087
(286,212)
4,137,046
(20,168)
-
(20,168)
4,835,041
1,320,281
(144,896)
6,010,426
3,542,591
1,371,275
345,221
5,259,087
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
24 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
These consolidated financial statements cover Dotz Nano Limited (Company) and its controlled entities as a consolidated
entity (also referred to as Group). Dotz Nano Limited is a company limited by shares, incorporated and domiciled in Australia.
The Group is a for-profit entity.
The financial statements were issued by the board of directors of the Company on 25 March 2022.
The following is a summary of the material accounting policies adopted by the consolidated entity in the preparation and
presentation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of the financial report
a) Statement of Compliance
These financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards (AASBs) (including Australian interpretations) adopted by the Australian Accounting
Standard Board (AASB) and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded
would result in financial statements containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with
International Financial Reporting Standards.
b) Going Concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Group incurred
a loss for year ended 31 December 2021 of US$7,935,940 (2020: US$3,968,996) and net cash outflows from operating
activities of US$4,157,684 (2020: US$2,447,667).
(cid:100)(cid:346)(cid:286)(cid:400)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:437)(cid:374)(cid:272)(cid:286)(cid:396)(cid:410)(cid:258)(cid:349)(cid:374)(cid:410)(cid:455)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:272)(cid:258)(cid:400)(cid:410)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:282)(cid:381)(cid:437)(cid:271)(cid:410)(cid:3)(cid:258)(cid:271)(cid:381)(cid:437)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:374)(cid:410)(cid:349)(cid:410)(cid:455)(cid:859)(cid:400)(cid:3)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:286)(cid:3)(cid:258)(cid:400)(cid:3)a
going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of
business.
(cid:100)(cid:346)(cid:286)(cid:3)(cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:271)(cid:286)(cid:367)(cid:349)(cid:286)(cid:448)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:400)(cid:437)(cid:296)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:410)(cid:3)(cid:296)(cid:437)(cid:374)(cid:282)(cid:400)(cid:3)(cid:258)(cid:448)(cid:258)(cid:349)(cid:367)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:449)(cid:381)(cid:396)(cid:364)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:258)(cid:393)(cid:349)(cid:410)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)s
as at the date of this report and that sufficient funds will be available to finance the operations of the Group for the following
reasons:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
The Directors of Dotz Nano Limited have assessed the likely cash flow for the 12 month period from the date of signing
(cid:410)(cid:346)(cid:349)(cid:400)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:272)(cid:410)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:271)(cid:286)(cid:367)(cid:349)(cid:286)(cid:448)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:271)(cid:286)(cid:3)(cid:400)(cid:437)(cid:296)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:410)(cid:3)(cid:296)(cid:437)(cid:374)(cid:282)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:449)(cid:381)(cid:396)(cid:364)(cid:349)(cid:374)(cid:336)(cid:3)
capital requirements as at the date of this report.
The Group has the ability to reduce its expenditure to conserve cash.
The Group has historically demonstrated its ability to raise funds to satisfy its immediate cash requirements.
The Directors of Dotz Nano also have reason to believe that in addition to the cash flow currently available, additional
funds from receipts are expecte(cid:282)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:373)(cid:286)(cid:396)(cid:272)(cid:349)(cid:258)(cid:367)(cid:349)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:393)(cid:396)(cid:381)(cid:282)(cid:437)(cid:272)(cid:410)(cid:400)(cid:856)
Should the Group not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements or
raise additional capital through equity or debts raisings and that the interim financial report does not include any adjustments
relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary should the
Group not continue as a going concern and meet its debts as and when they become due and payable. The directors plan to
(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:258)(cid:400)(cid:3)(cid:381)(cid:437)(cid:410)(cid:367)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3)(cid:258)(cid:271)(cid:381)(cid:448)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:271)(cid:286)(cid:367)(cid:349)(cid:286)(cid:448)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)will be sufficient funds for the Group to
meet its obligations and liabilities for at least twelve months from the date of this report.
25 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c) Adoption of new and amended accounting standards
The Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its
operations and effective for annual reporting periods beginning on or after 1 January 2021. It has been determined by the
Group that there is no impact, material or otherwise, of the new and revised standards and interpretations on its business
and therefore no change is necessary to Group accounting policies. No retrospective change in accounting policy of material
reclassification has occurred during the year.
c) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 31 December
2021. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if
and only if the Group has:
(cid:120)
(cid:120)
(cid:120)
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
(cid:120)
(cid:120)
(cid:120)
The contractual arrangement with the other vote holders of the investee,
Rights arising from other contractual arrangements,
(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:448)(cid:381)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:381)(cid:410)(cid:286)(cid:374)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:448)(cid:381)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:856)(cid:3)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group
gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent
of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:349)(cid:286)(cid:400)(cid:856)(cid:3)(cid:4)(cid:367)(cid:367)(cid:3)(cid:349)(cid:374)(cid:410)(cid:396)(cid:258)-group assets and liabilities, equity, income, expenses and cash flows relating
to transactions between members of the Group are eliminated in full on consolidation.
A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
De-recognises the assets (including goodwill) and liabilities of the subsidiary
De-recognises the carrying amount of any non-controlling interests
De-recognises the cumulative translation differences recorded in equity
Recognises the fair value of the consideration received
Recognises the fair value of any investments retained
Recognises any surplus or deficit in profit or loss
(cid:90)(cid:286)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:296)(cid:349)(cid:286)(cid:400)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:393)(cid:258)(cid:396)(cid:286)(cid:374)(cid:410)(cid:859)(cid:400)(cid:3) (cid:400)(cid:346)(cid:258)(cid:396)(cid:286)(cid:3) (cid:381)(cid:296)(cid:3) (cid:272)(cid:381)(cid:373)(cid:393)(cid:381)(cid:374)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3) (cid:393)(cid:396)(cid:286)(cid:448)(cid:349)(cid:381)(cid:437)(cid:400)(cid:367)(cid:455)(cid:3) (cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3) (cid:349)(cid:374)(cid:3) (cid:75)(cid:18)(cid:47)(cid:3) (cid:410)(cid:381)(cid:3) (cid:393)(cid:396)(cid:381)(cid:296)(cid:349)(cid:410)(cid:3) (cid:381)(cid:396)(cid:3) (cid:367)(cid:381)(cid:400)(cid:400)(cid:3) (cid:381)(cid:396)(cid:3) (cid:396)(cid:286)(cid:410)(cid:258)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3) (cid:286)(cid:258)(cid:396)(cid:374)(cid:349)(cid:374)(cid:336)(cid:400)(cid:853)(cid:3) (cid:258)(cid:400)(cid:3)
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities.
26 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d)
Income Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well unused tax losses.
Current income tax expense charged to profit or loss is the tax payable on taxable income calculated using applicable income
tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the
amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of profit or loss when
the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have
been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit
or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement
also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or
liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
e)
Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and
requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset.
Group as a lessee
Operating lease payments, where substantially all the risk and benefits remain with the lessor, are recognised as an expense
in the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term. Operating
lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between
rental expense and reduction of the liability.
27 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
e)
Leases (Continued)
Leases are recognised as a right-of-use asset and corresponding liability at the date at which the leased asset is available for
use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit
or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for
each period. The right-of-(cid:437)(cid:400)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:282)(cid:286)(cid:393)(cid:396)(cid:286)(cid:272)(cid:349)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:346)(cid:381)(cid:396)(cid:410)(cid:286)(cid:396)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:859)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:296)(cid:437)(cid:367)(cid:3)(cid:367)(cid:349)(cid:296)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:367)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:3)(cid:381)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:410)(cid:396)(cid:258)(cid:349)(cid:336)(cid:346)t-
line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Fixed payments (including in-substance fixed payments), less any lease incentives receivable
Variable lease payment that are based on an index or a rate
Amount expected to be payable by the lessee under residual value guarantees
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
Payments of penalties for termination the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the (cid:367)(cid:286)(cid:400)(cid:400)(cid:286)(cid:286)(cid:859)(cid:400)(cid:3)
incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value in a similar economic environment with similar terms and conditions.
Right-of-use of assets are measured at cost comprising the following:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
The amount of the initial measurement of lease liability
Any lease payments made at or before the commencement date less any lease incentives received
Any initial direct costs
Restoration cost
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short term leases are leases with a lease term of 12 months or less. Low-value asset comprise IT
equipment and small items of office furniture.
f)
Financial Instruments
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a
party to the contractual provisions of the instrument.
Financial instruments are initially measured at fair value plus transaction costs where the instrument is not classified as at
fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss
are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.
Classification and subsequent measurement
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:296)(cid:258)(cid:349)(cid:396)(cid:3) (cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3) (cid:296)(cid:381)(cid:396)(cid:3) (cid:258)(cid:367)(cid:367)(cid:3) (cid:437)(cid:374)(cid:367)(cid:349)(cid:400)(cid:410)(cid:286)(cid:282)(cid:3) (cid:400)(cid:286)(cid:272)(cid:437)(cid:396)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:853)(cid:3) (cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3) (cid:396)(cid:286)(cid:272)(cid:286)(cid:374)(cid:410)(cid:3) (cid:258)(cid:396)(cid:373)(cid:859)(cid:400)(cid:3) (cid:367)(cid:286)(cid:374)(cid:336)(cid:410)(cid:346)(cid:3) (cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:258)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3) (cid:396)(cid:286)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3) (cid:410)(cid:381)(cid:3) (cid:400)(cid:349)(cid:373)(cid:349)(cid:367)(cid:258)(cid:396)(cid:3)
instruments and option pricing models.
(i) Financial Assets
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at
fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss
28 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
f)
Financial Instruments (Continued)
(ii) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is
derecognised.
Derivative instruments
The Group does not trade or hold derivatives.
Financial guarantees
The Group has no material financial guarantees.
Impairment
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial asset has been
impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred
(cid:858)(cid:367)(cid:381)(cid:400)(cid:400)(cid:3)(cid:286)(cid:448)(cid:286)(cid:374)(cid:410)(cid:859)(cid:895)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:258)(cid:374)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:272)(cid:410)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:296)uture cash flows of the financial asset or the group of financial assets that
can be reliably estimated. Evidence of impairment may include indications that the debtor or a group of debtors is
experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that
they will enter bankruptcy or other financial reorganisation and observable data indicating that there is a measurable
decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flow expires or the asset is transferred to
another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated
with the asset.
Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The
difference between the carrying value of the financial liability extinguished or transferred to another party and the fair
value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
g)
Impairment of non-financial assets
At the end of each reporting period, the Directors assesses whether there is any indication that an asset may be impaired.
The assessment will include the consideration of external and internal sources of information, including dividends received
from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits.
(cid:47)(cid:296)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:400)(cid:437)(cid:272)(cid:346)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:272)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:400)(cid:853)(cid:3)(cid:258)(cid:374)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:410)(cid:286)(cid:400)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:272)(cid:258)(cid:396)(cid:396)(cid:349)(cid:286)(cid:282)(cid:3)(cid:381)(cid:437)(cid:410)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:271)(cid:455)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:853)(cid:3)
being the higher of its fair value (cid:367)(cid:286)(cid:400)(cid:400)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:400)(cid:286)(cid:367)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:437)(cid:400)(cid:286)(cid:853)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:859)(cid:400) carrying amount. Any excess of the
(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:859)(cid:400)(cid:3)(cid:272)(cid:258)(cid:396)(cid:396)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:373)(cid:373)(cid:286)(cid:282)(cid:349)(cid:258)(cid:410)(cid:286)(cid:367)(cid:455)(cid:3)(cid:349)(cid:374)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:349)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400). Where it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash
generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
29 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
h)
Intangible assets
Acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets
acquired in a business combination are measured on initial recognition at fair value at the acquisition date.
Intangible assets with a finite useful life are amortised over their useful life and reviewed for impairment whenever there is
an indication that the assets may be impaired. The amortisation period and the amortisation method for an intangible asset
are reviewed at least at each year end.
Intangible assets with indefinite useful lives are not systematically amortised and are tested for impairment annually or
whenever there is an indication that the intangible assets may be impaired. The useful life of these assets is reviewed
annually to determine whether their indefinite life assessment continued to be supportable. If the events and circumstances
do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted
for prospectively as a change in accounting estimate and on that date the asset is tested for impairment. The intangible
assets are considered to be with indefinite useful life.
i)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits available on demand with banks with original maturity of three
months or less.
j)
Revenue and other income
Revenue from contracts with customers
The Group provides anti-counterfeiting and brand-protection solution to various customers as agreed per terms agreed in
individual contracts.
The revenue associated with anti-counterfeiting and brand-protection solution is recognised in accordance with AASB 15,
that is in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the
consideration to which the Group is expected to be entitled in exchange for those goods or services. Revenue from
customer contracts is recognised upon satisfaction of a performance obligation under those contracts either over time or
a point in time when control passes the customer under those contracts.
The Group has no material contracts where the period between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the
transaction prices for the time value of money.
Contract assets and liabilities
AASB 15 uses the terms "contract asset" and "contract liability" to describe what is commonly known as "accrued revenue"
and "deferred revenue." Deferred revenue arises where payment is received prior to work being performed and is
allocated to the performance obligations within the contract and recognised on satisfaction of the performance obligation.
Contract fulfilment costs
Costs generally incurred prior to the commencement of a contract may arise due to setup costs as these costs are incurred
to fulfil a contract. Where the costs are expected to be recovered, they are capitalised and expensed over the period of
revenue recognition. Where the costs, or a portion of these costs, are reimbursed by the customer, the amount received
is recognised as deferred revenue.
Interest
Interest 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.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
30 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
k) Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.
l) Goods and Services Tax (GST) and Value Added Tax (VAT)
Revenues, expenses, and assets are recognised net of the amount of GST or VAT, except where the amount of GST or VAT
incurred is not recoverable from the Australian Tax Office (ATO) and Israel Tax Authority (ITA).
Receivable and payables are stated inclusive of the amount of GST or VAT receivable or payable. The net amount of the
GST or VAT recoverable from, or payable to, the ATO or ITA is included with other receivables and payables in the statement
of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST or VAT component of investing
and financing activities, which are disclosed as operating cash flows.
m) Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment over their
expected useful lives.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group.
Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
n) Research and development
Expenditure on research activities is recognised in profit or loss as incurred. Development expenditure is capitalised only
if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future
economic benefits are probable, and the Company intends to and has sufficient resources to complete development and
to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred.
o) Employee Benefits
(cid:87)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:400)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:286)(cid:373)(cid:393)(cid:367)(cid:381)(cid:455)(cid:286)(cid:286)(cid:3)(cid:271)(cid:286)(cid:374)(cid:286)(cid:296)(cid:349)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:349)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:400)(cid:286)(cid:396)(cid:448)(cid:349)(cid:272)(cid:286)(cid:400)(cid:3)(cid:396)(cid:286)(cid:374)(cid:282)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:286)(cid:373)(cid:393)(cid:367)(cid:381)(cid:455)(cid:286)(cid:286)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:374)(cid:282)(cid:3)
of the reporting period. Employee benefits that are expected to be settled within 12 months have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits payable later than 12 months have been
measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the
liability, consideration is given to employee wages increases and the probability that the employee may satisfy any vesting
requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity
that match the expected timing of cash flows attributable to employee benefits.
31 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
o) Employee Benefits (Continued)
Equity-settled compensation
The Group operates an employee share and option plan. Share-based payments to employees are measured at the fair
value of the instruments issued and amortised over the vesting periods. The fair value of performance right options is
determined using the satisfaction of certain performance criteria (Performance Milestones). The number of share option
and performance rights expected to vest is reviewed and adjusted at the end of each reporting period such that the amount
recognised for services received as consideration for the equity instruments granted is based on the number of equity
instruments that eventually vest. The fair value is determined using either a Black Scholes, Binominal or Monte Carlo
simulation model depending on the type of share-based payment.
p) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result, and that outflow can be reliably measured. Provisions are
measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
q) Equity and reserves
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing
of shares are deducted from share capital, net of any related income tax benefits. The option reserve records the value of
share-based payments.
r)
Foreign currency transactions and balances
Functional and presentation currency
The functional currency of each entity within the Group is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in USA dollars which is
(cid:410)(cid:346)(cid:286)(cid:3)(cid:87)(cid:258)(cid:396)(cid:286)(cid:374)(cid:410)(cid:859)(cid:400)(cid:3)(cid:296)(cid:437)(cid:374)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)ency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured
at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive
income to the extent that the underlying gain or loss is recognized other comprehensive Income; otherwise the exchange
difference is recognised in profit or loss.
Group companies
(cid:100)(cid:346)(cid:286)(cid:3) (cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:400)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:381)(cid:296)(cid:3) (cid:296)(cid:381)(cid:396)(cid:286)(cid:349)(cid:336)(cid:374)(cid:3) (cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3) (cid:449)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3) (cid:296)(cid:437)(cid:374)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3) (cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:272)(cid:455)(cid:3) (cid:349)(cid:400)(cid:3) (cid:282)(cid:349)(cid:296)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3) (cid:296)(cid:396)(cid:381)(cid:373)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)
presentation currency are translated as follows:
(cid:120)
(cid:120)
(cid:120)
assets and liabilities are translated at year-end exchange rates prevailing at that reporting period;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
32 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r)
Foreign currency transactions and balances (continued)
Exchange differences arising on translation of foreign operations with functional currencies other than USA dollars are
recognised in other comprehensive income and included in the foreign currency translation reserve in the statement of
financial position. These differences are recognised in profit or loss in the period in which the operation is disposed.
s)
Segment Information
Identification of reportable segments
The Group has identified its operating segment based on the internal reports that are reviewed and used by the Board of
Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources.
(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:400)(cid:381)(cid:367)e operating segment is consistent with the presentation of these consolidated financial statements.
t)
Earnings per share
Basic earnings per share is calculated by dividing:
(cid:120)
(cid:120)
the profit attributable to member of the parent entity, excluding any costs of servicing equity other than ordinary
shares
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements
in ordinary shares issued during the year (if any).
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
(cid:120)
(cid:120)
the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and
the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
u) Critical Accounting estimates and judgements
The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on
current trends and economic data, obtained both externally and within the Group.
Key Estimates and judgements
Revenue from contract with customer
The Group applied the following judgements that significantly affect the determination of the amount and timing of revenue
from contracts with customers:
Identifying performance obligations
The Group provides marking units, being the marker technology implemented as a sticker or by embedding into a material;
to include an encrypted QR code and Carbon Dots based marker with detection capability all aimed for personal protective
equipment. The obligation is satisfied at a point in time which is the date of delivery of the product.
Determining amount to be recognised over time
Where contracts include multiple deliverables that are separate performance obligations, judgement is required in
determining the allocation of the transaction price to each performance obligation based on the stand-alone selling prices.
Where these are not directly observable, they are estimated based on expected cost-plus margin.
33 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
u) Critical Accounting estimates and judgements
Share based payments
Share-based payments are measured at the fair value of goods or services received or the fair value of the equity instruments
issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date
the goods or services are received. The fair value of options is determined using either the Black-Scholes, Binominal or Monte
Carlo valuation models. The number of shares and options expected to vest is reviewed and adjusted at the end of each
reporting period such that the amount recognised for services received as consideration for the equity instruments granted
is based on the number of equity instruments that eventually vest.
Bird Grant Liability
Government grant liability reflects the grant received from the Bird Foundation. The grant is repayable upon the Group
commencing product commercialisation and generating revenue from sale of product, with repayments being based on 5%
of each dollar of revenue (cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:336)(cid:396)(cid:258)(cid:374)(cid:410)(cid:859)(cid:400)(cid:3)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:381)(cid:396)(cid:286)(cid:282)(cid:3)(cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410). The total repayment is based on the timing of the
repayment and ranges from the grant amount to 150% of the grant amount. As required by AASB 9 Financial Instruments,
the liability has been recognised at f(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:381)(cid:374)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:400)(cid:437)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:859)(cid:400)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:853)(cid:3)
and the timing and quantity of future revenues. As the Company currently does not expect to generate revenues from the
development under this grant the fair value of the liability at reporting date was determined to be nil. The Company will
continue from time to time to evaluate the probability of revenue generation from the development made under this grant.
Lease term and discount rate used
In determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise option, or not exercise option a termination option. Extension options (or period after termination options) are only
included in the lease term if the lease is reasonably certain to be extended (or not terminated).
(cid:100)(cid:346)(cid:286)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:400)(cid:286)(cid:410)(cid:3)(cid:271)(cid:455)(cid:3)(cid:396)(cid:286)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:258)(cid:396)(cid:364)(cid:286)(cid:410)(cid:3)(cid:455)(cid:349)(cid:286)(cid:367)(cid:282)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:374)(cid:282)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:393)(cid:286)(cid:396)(cid:349)(cid:381)(cid:282)(cid:3)(cid:381)(cid:374)
government bonds.
NOTE 2: REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue recognised at a point in time:
-
Revenue from contract with customers
Total revenue
2021
US$
2020
US$
304,595
304,595
375,811
375,811
The Group has recognised the following assets and liabilities related to contracts with customers:
-
Contract liabilities
-
33,757
There were no significant movements in contract assets or liabilities during the year.
34 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 3: EXPENSES
Loss before income tax from continuing operations includes the following specific
expenses:
Research and development expenses
- Wages and benefits
-
-
-
-
Consulting fees
Lab expenses
Other R&D expenses
Fair value change in grant liability
General, administrative, selling and marketing expenses
- Wages and benefits
-
-
-
-
Consulting fees
Sales and marketing expenses
Director fees
Other expenses
2021
US$
2020
US$
(561,389)
(354,408)
(597,345)
(434,743)
(167,394)
(53,110)
(140,204)
(62,552)
(39,890)
257,481
(1,519,442)
(634,112)
(683,436)
(227,915)
(529,541)
(515,542)
(475,699)
(412,822)
(357,131)
(185,183)
(1,311,868)
(777,624)
(3,357,675)
(2,119,086)
NOTE 4: INCOME TAX
The financial accounts for the year ended 31 December 2021 comprise the results of Dotz (cid:69)(cid:258)(cid:374)(cid:381)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:894)(cid:862)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)Australia(cid:863)(cid:895)
and Dotz Nano Ltd (cid:894)(cid:862)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)Israel(cid:863)(cid:895). The legal parent is incorporated and domiciled in Australia where the applicable tax rate is
27.5% (2020: 27.5%). The applicable tax rate in Israel is 23% (2020: 23%).
(a) Income tax expense
Current tax
Deferred tax
2021
US$
-
-
2020
US$
-
-
(b) The prima facie tax payable on loss from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Income tax benefit on operating loss at 27.5% (2020: 27.5%)
(2,182,384)
(1,091,474)
Non-deductible items
Non-deductible expenditure
Non-assessable income
Adjustment for difference in tax rates
Deferred tax (liabilities)/asset not brought to account
Income tax attributable to operating income/(loss)
The applicable weighted average effective tax rates are as follows:
Balance of franking account at year end
918,374
676,188
93,867
1,170,143
-
Nil%
Nil
113,494
301,792
-
Nil%
Nil
35 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 4: INCOME TAX (CONTINUED)
Deferred tax assets
Tax losses
Black hole expenditure
Unrecognised deferred tax asset
Set-off deferred tax liabilities
Net deferred tax assets
Less deferred tax assets not recognised
Net assets
Tax losses
2021
US$
1,056,420
70,391
1,126,811
1,126,811
(1,126,811)
-
2020
US$
408,062
114,427
522,489
-
522,489
(522,489)
-
Unused tax losses for which no deferred tax asset has been recognised
6,126,939
4,786,955
Carry forward losses
Potential future income tax benefits attributable to tax losses carried forward have not been brought to account at 31
December 2021, because the Directors do not believe it is appropriate to regard realisation of the future income tax benefits
as probable.
NOTE 5: RELATED PARTY TRANSACTIONS
a) Key Management Personnel Compensation
Details of key management personnel compensation are disclosed in audited remuneration reports and the totals of
remuneration paid to KMP during the year are summarised below:
Short-term salary, fees and commissions
Other
Share based payments (Refer Note 16)
Total KMP Compensation
b) Other related party transactions
2021
US$
1,001,543
25,837
1,589,937
2020
US$
897,942
60,504
354,819
2,617,317
1,313,265
Details of other related party transactions is provided in remuneration report and summarised below:
Entity
Nature of
transactions
Key
Management
Personnel
Total Transactions
Payable Balance
2021
US$
2020
US$
2021
US$
2020
US$
Ian Pamensky (cid:884) CFO 2 Grow
Oxen 9 Ltd
Company secretarial
services
Advisory services
Ian Pamensky
54,089
20,298
4,357
4,624
Doron Eldar
72,377
65,832
-
-
As disclosed in Note 10, the Company provided AU$300,000 loan to an entity related to director Kerry Harpaz.
36 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 6(cid:855)(cid:3)(cid:4)(cid:104)(cid:24)(cid:47)(cid:100)(cid:75)(cid:90)(cid:859)(cid:94)(cid:3)(cid:90)(cid:28)(cid:68)(cid:104)(cid:69)(cid:28)(cid:90)(cid:4)(cid:100)(cid:47)(cid:75)(cid:69)
Remuneration of the auditor of the Group for:
-
-
Auditing and reviewing the financial reports (BDO) (cid:884) Australia
Auditing and reviewing the financial reports (BDO) (cid:884) Israel
Non-assurance services
-
-
Tax (BDO) (cid:884) Australia
Tax (BDO) (cid:884) Israel
NOTE 7: LOSS PER SHARE
(Loss) per share (EPS)
2021
US$
33,833
37,350
71,183
3,005
6,609
9,614
2021
US$
2020
US$
26,124
34,200
60,324
2,762
3,800
6,562
2020
US$
a)
Loss used in calculation of basic EPS and diluted EPS
(7,935,940)
(3,968,996)
b) Weighted average number of ordinary shares outstanding during the
year used in calculation of basic and diluted loss per share
400,324,106
319,518,815
c) Basic earnings/(loss) per share (cents per share)
(1.98)
(1.24)
NOTE 8 a: CASH AND CASH EQUIVALENTS
Cash at bank
Total cash and cash equivalents in the statement of cash flows
NOTE 8 b: CASH FLOW INFORMATION
Loss after income tax
Non-cash flows in loss after income tax
Share based payment expense
Depreciation
Other
Amortisation of rights of use asset
Fair value movement in grant liability
Foreign exchange
Changes in assets and liabilities
Decrease/(Increase) in trade and other receivables
Decrease/(Increase) in prepayments
(Decrease)/Increase in payables
(Decrease)/Increase in payables in other payables
(Decrease)/Increase in unearned revenue
2021
US$
2020
US$
4,137,046
5,259,087
4,137,046
5,259,087
2021
US$
2020
US$
(7,935,940)
(3,968,996)
3,131,433
1,392,484
74,007
-
283,235
86,148
(2,631)
132,831
-
(257,481)
35,143
(15,220)
140,163
(44,653)
176,032
(33,757)
49,922
(19,605)
5,781
165,711
-
33,757
37 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 8 b: CASH FLOW INFORMATION
Changes in assets and liabilities
(Decrease)/Increase in payables in provisions
Decrease/(Increase) in inventory
Cash flow used in operating activities
Credit Standby Facilities
The Group has no credit standby facilities.
Non-Cash investing and financing activities
2021
US$
2020
US$
(33,269)
9,717
-
(10,163)
(4,157,684)
(2,447,667)
During the year ended 31 December 2021, there were no non-cash investing and financing activities.
Other
For risk exposure refer to Note 18.
NOTE 9: TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other receivables
2021
US$
8,481
70,108
78,589
2020
US$
24,923
164,555
189,478
Other receivables include amounts receivable from tax authorities for GST/VAT and deposits. All amounts are short-term.
The net carrying value of trade receivables is considered a reasonable approximation of fair value. For risk exposure refer
to Note 18.
NOTE 10: LOANS TO RELATED PARTY
CURRENT
Loan to Related Party
Opening balance
Loan advanced
Interest charged
Repayment received
Closing balance
2021
US$
2020
US$
218,227
218,227
-
217,834
394
-
218,834
-
-
-
-
-
-
-
On 10 December 2021, Company entered into a Loan Agreement of up to A$300,000 (excluding interest) to Marzameno Ltd
(Marzameno), related to Director Kerry Harpaz for the purpose of funding the payment of the exercise of up to 1/3 of
10,000,000 Options (each with an exercise price of $0.09 and exercisable on or before 11 December 2021).
The loan is unsecured, accrues interest at 6% per annum, and must be repaid in full on 31 March 2022. Until all monies
owing under the Loan Agreement are repaid in full, Marzameno must not dispose of any of 10,000,000 Ordinary Shares
(issued pursuant on the exercise of 10,000,000 Options held by Marzameno) subject to certain exceptions (such as the
Company providing consent).
38 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 11: RIGHT-OF-USE ASSETS & LEASE LIABILITIES
i.
AASB 16 related amounts recognised in the statement of financial position
Office space (cid:884) right-of use
Motor vehicles (cid:884) right-of-use
Net carrying amount
2021
US$
529,228
11,513
540,741
2020
US$
7,372
40,473
47,845
The group leases office space and vehicles. Rental contracts are typically made for a fixed period of 1-3 years, with extension
options available on the office lease. Lease terms are negotiated on an individual basis and contain a range of terms and
conditions. The lease agreements impose standard covenants such as mileage limitation, but leased assets may not be used
as security for borrowing purposes.
ii.
Lease liabilities included in the Statement of financial position
Current
Non-current
Total lease liabilities
iii.
AASB 16 related amounts recognised in the statement of profit or loss
Depreciation charge related to right-of-use assets
Interest expense on lease liabilities (under finance cost)
iv.
AASB 16 related amounts recognised in the statement of cash flows
Cash outflows in financing activities
Cash outflows in operating activities
321,930
281,791
603,721
39,332
7,736
47,068
283,235
132,830
68,189
11,418
221,059
144,896
97,241
11,418
318,300
156,314
Short -term leases and leases of low-value assets
The Group at the end of the year had non-material short-term leases.
The Group applies the low-value assets recognition exemption to leases of office equipment that are considered low value
($10,000 or less). Lease payments on short-term leases and leases of low-value assets are recognised as expense on straight-
line basis over the lease term.
NOTE 12: PLANT AND EQUIPMENT
Plant and equipment at costs
Accumulated depreciation
Opening balance at reporting date
Additions
Disposal
Depreciation
Balance at the end of the year
2021
US$
2020
US$
586,097
529,920
(350,717)
(314,962)
235,380
214,958
214,958
167,991
(73,563)
(74,006)
235,380
283,239
17,867
-
(86,148)
214,958
39 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 13: TRADE AND OTHER PAYABLES
Trade and other payables
Accruals
2021
US$
192,365
383,576
575,941
2020
US$
280,027
148,770
428,797
All amounts are short-term. The carrying values are considered to approximate fair value. For risk exposure refer to
Note 18.
NOTE 14: ISSUED CAPITAL
(a) Share Capital
2021
US$
2020
US$
434,184,704 fully paid ordinary shares (31 December 2020:376,382,378 )
32,864,049
28,971,254
(b) Reconciliation of Share Capital
Opening balance at 1 January 2020
Shares issued on exercise of options, 10 February 2020
Shares issued on exercise of options, 10 February 2020
Shares issued under Cleansing Prospectus, 6 May 2020
No.
US$
295,004,274
22,627,901
347,977
500,000
100
-
-
4
Shares issued under Deferred Share Placement, 18 June 2020
13,888,889
342,250
Shares issued on exercise of options, 18 June 2020
Shares issued on exercise of options, 18 June 2020
Shares issued to Mr Uzi Breier, 18 June 2020
Shares cancelled relating to Mr Uzi Breier, 18 June 2020
Shares issued to former employee, 18 June 2020
Shares issued on exercise of options, 18 June 2020
Shares issued on exercise of options, 10 July 2020
Shares issued on exercise of options, 22 July 2020
Shares issued on exercise of options, 28 July 2020
Shares issued on exercise of options, 20 August 2020
Shares issued to Consultant, 20 August 2020
Shares issued on exercise of options, 3 September 2020
Shares issued on exercise of options, 3 September 2020
Shares issued under Deferred Share Placement, 10 September 2020
Shares issued on exercise of options, 10 September 2020
Shares issued on exercise of options, 25 September 2020
Shares issued on exercise of options, 8 October 2020
Shares issued on exercise of options, 28 October 2020
Shares issued under Placement, 28 October 2020
Shares issued on exercise of options, 12 November 2020
1,200,000
1,500,000
1,000,000
(1,000,000)
1,000,000
1,000,000
50,000
425,000
208,334
1,125,001
1,500,000
80,648
495,000
13,888,889
803,299
2,662,635
1,000,000
12,790,443
-
-
58,183
(42,440)
-
-
2,952
26,693
13,107
69,508
177,581
5,294
-
363,651
52,218
156,150
64,404
872,878
25,068,000
4,443,303
1,843,889
52,991
40 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 14: ISSUED CAPITAL (CONTINUED)
(b) Reconciliation of Share Capital
Less: capital raising fees
Closing balance at 31 December 2020
No.
-
US$
(315,374)
376,382,378
28,971,254
Opening balance at 1 January 2021
376,382,378
28,971,254
Shares issued on exercise of options, 5 May 2021
Shares issued on exercise of options, 5 May 2021
Shares issued on exercise of options, 5 May 2021
Shares issued on exercise of options, 5 May 2021
Shares issued on exercise of options, 5 May 2021
Shares issued on exercise of options, 10 May 2021
Shares issued on exercise of options, 6 August 2021
Shares issued on exercise of options, 6 August 2021
Shares issued on exercise of options, 6 August 2021
Shares issued on exercise of options, 6 August 2021
Shares issued on exercise of options, 6 August 2021
200,000
9,169,931
10,410,000
1,012,500
375,000
6,333,334
4,590,000
375,000
4,000,000
337,500
483,873
9,164
614,666
800,175
53,997
13,979
352,745
353,255
13,546
-
17,999
32,778
Shares issued under the Placement, 6 August 2021
3,200,000
591,268
Shares issued on exercise of options, 27 August 2021
Shares issued on exercise of options, 14 September 2021
Shares issued on exercise of options, 27 October 2021
Shares issued on exercise of options, 20 December 2021
Shares issued on exercise of options, 20 December 2021
Closing balance at 31 December 2021
(c) Capital Management
250,000
250,000
250,000
850,000
-
-
-
29,463.67
15,715,188
1,009,759
434,184,704
32,864,049
(cid:24)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:374)(cid:258)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:258)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:282)(cid:381)(cid:286)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:396)(cid:286)(cid:258)(cid:282)(cid:455)(cid:3)(cid:258)(cid:272)(cid:272)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)credit facilities, with the primary source
(cid:381)(cid:296)(cid:3)(cid:296)(cid:437)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:271)(cid:286)(cid:349)(cid:374)(cid:336)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:410)(cid:455)(cid:3)(cid:396)(cid:258)(cid:349)(cid:400)(cid:349)(cid:374)(cid:336)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:396)(cid:286)(cid:296)(cid:381)(cid:396)(cid:286)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:381)(cid:272)(cid:437)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:272)(cid:258)(cid:393)(cid:349)(cid:410)(cid:258)(cid:367)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:449)(cid:381)(cid:396)(cid:364)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:258)(cid:393)(cid:349)(cid:410)(cid:258)(cid:367)(cid:3)
position against the requirements of the Group to meet research and development programs and corporate overheads. The
(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:400)(cid:410)(cid:396)(cid:258)(cid:410)(cid:286)(cid:336)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:374)(cid:400)(cid:437)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3)(cid:367)(cid:349)(cid:395)(cid:437)(cid:349)(cid:282)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:373)(cid:258)(cid:349)(cid:374)(cid:410)(cid:258)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:3)(cid:258)(cid:374)(cid:410)(cid:349)(cid:272)(cid:349)(cid:393)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:853)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:258)(cid:3)(cid:448)(cid:349)(cid:286)(cid:449)(cid:3)
to initiating appropriate capital raisings as required. Any surplus funds are invested with major financial institutions.
(d) Performance Shares
The were no performance shares on issue as at 31 December 2021 (2020: Nil).
41 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 15: RESERVES
(a) Reserves
36,394,260 Option Reserve (31 December 2020:82,547,879)
Foreign currency translation reserve
(b) Options Reserve
Opening balance at 1 January 2020
Cancellation of options, 5 February 2020
Exercise of options, 10 February 2020
Cancellation of options, 10 February 2020
Cancellation of options, 20 April 2020
2021
2020
US$
US$
6,443,623
3,312,190
45,856
277,570
6,489,479
3,589,760
No.
US$
91,224,527
2,102,496
(6,000,000)
(847,977)
(652,023)
(2,425,000)
-
-
-
Issue of options, 11 May 2020, and 6 November 2020
750,000
14,675
Cancellation of options, 14 June 2020
Exercise of options, 18 June 2020
Cancellation of options, 18 June 2020
Issue of options, 18 June 2020
Issue of free attaching options, 18 June 2020
Cancellation of options, 30 June 2020
Exercise of options, 10 July 2020
Exercise of options, 22 July 2020
Exercise of options, 28 July 2020
Cancellation of options, 1 August 2020
Exercise of options, 20 August 2020
Issue of options, 20 August 2020
Issue of options, 20 August 2020
Exercise of options, 3 September 2020
Exercise of options, 10 September 2020
Issue of free attaching options under Deferred Placement, 10 September 2020
Exercise of options, 25 September 2020
Exercise of options, 8 October 2020
(5,000,000)
(3,700,000)
(210,000)
1,350,000
4,629,630
(2,666,659)
(50,000)
(425,000)
(208,334)
(1,500,000)
(1,125,001)
500,000
500,000
(575,648)
(803,299)
4,629,630
(2,662,635)
(1,000,000)
-
-
(859)
21,025
-
-
-
-
-
-
-
14,332
8,155
-
-
-
-
Issue of options to Lead Manager, 19 October 2020
5,000,000
487,979
Exercise of options, 28 October 2020
Issue of options under Employees Share Option Plan, 30 October 2020
Issue of options under Employees Share Option Plan, 30 October 2020
Issue of options under Employees Share Option Plan, 30 October 2020
Exercise of options, 12 November 2020
Issue of options, 12 November 2020
Issue of options, 12 November 2020
Vested value of consultant options issued 3 December 2019
(12,790,443)
6,650,000
5,650,000
5,650,000
(1,843,889)
100,000
400,000
-
-
350,163
192,032
59,944
-
17,761
12,006
32,481
Closing balance at 31 December 2020
82,547,879
3,312,190
42 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 15: RESERVES (CONTINUED)
(b) Options Reserve
Opening balance at 1 January 2021
Options issued on 17 March 2021
Issue of options on 19 March 2021
Issue of options on 3 May 2021
Options exercised on 5 May 2021
Options exercised on 5 May 2021
Options exercised on 5 May 2021
Options exercised on 5 May 2021
Options exercised on 5 May 2021
Options exercised on 10 May 2021
Cancellation of options on 10 May 2021
Options issued on 26 May 2021
Cancellation of options on 30 June 2021
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 1)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 2)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 3)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 4)
Cancellation of options on 29 July 2021
Options issued on 6 August 2021
Issue of options on 17 July 2021
Issue of options on 6 August 2021
Issue of options on 6 August 2021
Options exercised on 6 August 2021
Options exercised on 6 August 2021
Options exercised on 6 August 2021
Options exercised on 6 August 2021
Options exercised on 6 August 2021
Options exercised on 10 August 2021
Cancellation of options on 14 September 2021
Options exercised on 14 September 2021
Options exercised on 27 October 2021
Options issued on 6 November 2021
Options exercised on 20 December 2021
Vesting of consultant options issued on 3 December 2019
Vesting of consultant options issued on 18 June 2020
Vesting of consultant options issued on 20 August 2020
Vesting of consultant options issued on 20 August 2020
Vesting of Employees Share Option Plan options issued on 30 October 2020
Vesting of consultant options issued on 12 November 2020
No.
US$
82,547,879
3,312,190
375,000
200,000
2,000,000
(200,000)
(9,169,931)
(10,410,000)
(1,012,500)
(375,000)
(6,333,334)
(125,001)
375,000
(3,300,000)
1,085,000
1,250,000
1,250,000
1,250,000
(661,292)
375,000
500,000
4,000,000
1,500,000
(4,590,000)
(375,000)
(4,000,000)
(337,500)
(483,873)
(250,000)
(500,000)
(250,000)
(250,000)
375,000
(16,565,188)
-
-
-
-
-
-
6,151
34,989
368,072
-
-
-
-
-
-
-
6,151
-
239,372
237,781
237,781
64,248
-
6,151
38,617
561,471
248,023
-
-
-
-
-
-
-
-
-
6,151
-
12,152
19,344
20,481
23,714
583,992
28,038
43 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 15: RESERVES (CONTINUED)
(b) Options Reserve
Vesting of CEO options (Tranche 1 - 4)
Cancellation of options on 31 December 2021
Closing balance at 31 December 2021
(c) Foreign currency translation reserve
Opening balance
Difference arising on translation
Balance at the end of the year
No.
-
(1,500,000)
US$
388,755
-
36,394,260
6,443,624
US$
277,569
(231,713)
45,856
US$
(44,611)
322,180
277,569
The foreign currency translation reserve records exchange differences arising on
translation of a foreign controlled subsidiary.
NOTE 16: SHARE BASED PAYMENTS
The following new share-based payment arrangements existed at 31 December 2021:
h)
200,000 Employee Options
The issue of 200,000 options with exercise price of AU$0.06 and expiry date of 31 December 2022 under the Employee
Share Option Plan (ESOP) to a consultant. The options vest on grant date and a total of $34,989 was recognised as an
expense.
i)
2,000,000 Caerus Options
The issue of 2,000,000 options with exercise price of AU$0.001 and expiry date of 4 December 2022 under the Service
Agreement with Caerus Therapeutics Inc. (Caerus). Under the agreement the options vest subject to completion of
works. During the year ended 31 December 2021 a total of $368,072 was recognised as an expense.
j)
1,500,000 V2 Tech Options
The issue of 1,500,000 options with exercise price of AU$0.23 and expiry date of4 August 2023 under the Distribution
Agreement with V2 Tech Distribution Pty Ltd (V2 Tech). Under the agreement the options vest over a two-year period
from the commencement date. The options were subject to shareholder approval which was granted on 29 July 2021
and were issued on 6 August 2021. During the year ended 31 December 2021 a portion of the value, being $248,023
vested and was recognised as an expense.
k)
4,000,000 TT Medical Options
The issue of 4,000,000 options with exercise price of AU$0.252 (being a 40% premium to the share price at agreement
date) and expiry date of 25 November 2023 under the Distribution Agreement with TT Medical UAE (TT Medical). Under
the agreement the options vest over a three-year period from the commencement date. The options were subject to
shareholder approval which was granted on 29 July 2021 and were issued on 6 August 2021. During the year ended 31
December 2021 a portion of the value, being $561,471 vested and was recognised as an expense, under AASB 2 the
valuation of the options is completed at shareholder approval date not at the date of the agreement between the
Company and TT medical.
44 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 16: SHARE BASED PAYMENTS (CONTINUED)
The following new share-based payment arrangements existed at 31 December 2021:
l)
1,085,000 Director Options (440,000 Bernie Brookes, 440,000 Doron Eldar, 205,000 Ian Pamensky)
The issue of 1,085,000 options (Tranche 1) with exercise price of AU$0.07 and expiry date of 31 December 2022 under
the Employee Share Option Plan (ESOP) granted to Board of Directors for past services. The options vest immediately
and were subject to shareholder approval which was granted on 29 July 2021. The options were issued on 6 August
2021 and a total expense of $239,372 was recognised at 31 December 2021. The options were granted as part of the
(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3) (cid:18)(cid:75)(cid:115)(cid:47)(cid:24)-19 cost reduction measures in lieu of certain payments due to Board members and Company
secretary under their relevant consultancy and services agreements.
m) 2,500,000 Director Options (1,000,000 Bernie Brookes, 1,000,000 Doron Eldar, 500,000 Ian Pamensky)
The issue of 2,500,000 options (Tranche 2 and 3) with exercise price of AU$0.12 and expiry date of 31 December 2022
under the Employee Share Option Plan (ESOP) granted to Board of Directors for past services. The options vest
immediately and were subject to shareholder approval which was granted on 29 July 2021. The options were issued
on 6 August 2021 and a total expense of $475,562 was recognised at 31 December 2021.
n)
1,250,000 Director Options (500,000 Bernie Brookes, 500,000 Doron Eldar, 250,000 Ian Pamensky)
The issue of 1,250,000 options (Tranche 4) with exercise price of AU$0.20 and expiry date of 31 December 2023 under
the Employee Share Option Plan (ESOP) granted to Board of Directors. The options were issued on 6 August 2021 and
vest on 31 December 2022. A portion of the value, being expense of $64,248 was recognised at 31 December 2021.
o)
500,000 Employee Options (Gideon Shmuel)
The vesting on 500,000 options (Tranche 1) with exercise price of AU$Nil and expiry date of 29 March 2024 under the
Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval which.
The options vest 12 months from 29 March 2021 (commencement date). A portion of expense of $94,438 was
recognised at 31 December 2021.
p)
2,000,000 Employee Options (Gideon Shmuel)
The vesting on 2,000,000 options (Tranche 2) with exercise price of AU$0.413 and expiry date of 29 March 2023 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 12 months from 29 March 2021 (commencement date). A portion of expense of $131,362 was
recognised at 31 December 2021.
q)
2,500,000 Employee Options (Gideon Shmuel)
The vesting on 2,500,000 options (Tranche 3) with exercise price of AU$0.481 and expiry date of 29 March 2024 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 24 months from 29 March 2021 (commencement date). A portion of expense of $93,349 was
recognised at 31 December 2021.
r)
2,500,000 Employee Options (Gideon Shmuel)
The vesting on 2,500,000 options (Tranche 4) with exercise price of AU$0.55 and expiry date of 29 March 2025 under
the Employee Share Option Plan (ESOP). The options have not been issued and are subject to shareholder approval
which. The options vest 36 months from 29 March 2021 (commencement date). A portion of expense of $69,606 was
recognised at 31 December 2021.
s)
500,000 Consultant Options (Gideon Shmuel)
The issue of 500,000 options with exercise price of AU$0.20 and expiry date of 10 July 2024 under the Consulting
Agreement. The options were issued on 6 August 2021 and vest ¼ at grant date, ¼ at first renewal date and 2/4 at
second renewal date. A portion of the value, being expense of $38,617 was recognised at 31 December 2021.
45 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 16: SHARE BASED PAYMENTS (CONTINUED)
A summary of the inputs used in the valuation of the options and shares is as follows:
Options
Financial year
Exercise price
Employee
Options
Caerus
Options
V2 Tech
Options
TT Medical
Options
Director
Options
Director
Options
(Tranche 1)
(Tranche 2-3)
2021
2021
2021
AU$0.06
AU$0.001
$0.230
2021
$0.252
2021
2021
A$0.070
AU$0.120
Price at measurement
AU$0.280
AU$0.240
AU$0.360
AU$0.360
AU$0.360
AU$0.360
Grant date
Vesting date
16-Mar-21
28-Feb-21
29-Jul-21
29-Jul-21
29-Jul-21
29-Jul-21
19-Mar-21
3-May-21
6-Aug-21
6-Aug-21
6-Aug-21
29-Jul-21
Expected volatility (i)
90%
90%
85%
87%
85%
85%
Expiry date
31-Dec-22
4-Dec-222
3-Aug-23
25-Nov-25
31-Dec-22
31-Dec-22
Expected dividends
Risk free interest rate
Nil
0.08%
Nil
Nil
0.11%
0.28%
Nil
0.26%
Nil
0.01%
Nil
0.01%
Value per option or share
AU$0.227
AU$0.239
AU$0.230
AU$0.232
AU$0.292
AU$0.252
Number of options
200,000
2,000,000
1,500,000
4,000,000
1,085,000
2,500,000
Total value in AUD
AU$45,353
AU$478,004 AU$352,758
AU$942,806
AU$317,720
AU$631,217
Total value in USD
US$34,989
US$368,072 US$266,448
US$711,475
US$239,372
US$475,562
Options
Financial year
Exercise price
Director
(Tranche 4)
Employee
Options
(Tranche 1)
Employee
Options
(Tranche 2)
Employee
Options
(Tranche 3)
Employee
Options
(Tranche 4)
Consultant
Options
2021
AU$0.200
2021
Nil
2021
2021
2021
2021
AU$0.413
AU$0.481
AU$0.550
AU$0.200
Price at measurement
AU$0.360
AU$0.340
AU$0.340
AU$0.340
AU$0.340
AU$0.340
Grant date
Vesting date
29-Jul-21
(ii)
(ii)
(ii)
(ii)
10-Jul-21
31-Dec-22
29-Mar-22
29-Mar-22
29-Mar-23
29-Mar-24
Various
Expected volatility (i)
85%
N/A
75%
75%
75%
80%
Expiry date
31-Dec-23
29-Mar-24
23-Mar-23
23-Mar-24
23-Mar-25
10-Jul-24
Expected dividends
Risk free interest rate
Nil
0.01%
Nil
N/A
Nil
0.08%
Nil
0.08%
Nil
0.08%
Nil
0.20%
Value per option or share
AU$0.229
AU$0.340
AU$0.118
AU$0.134
AU$0.150
AU$0.217
Number of options
1,250,000
500,000
2,000,000
2,500,000
2,500,000
500,000
Total value in AUD
AU$286,090
AU$170,000
AU$236,467
AU$336,078
AU$375,900
AU$108,406
Total value in USD
US$215,542
US$124,440
US$173,094
US$246,009
US$275,159
US$77,235
(iii) Volatility was calculated based on historical trading prices over relevant periods.
(iv) Options have not been granted as subject to shareholder approval, valued at commencement date of 29 March 2021.
46 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 16: SHARE BASED PAYMENTS (CONTINUED)
For the year ending 31 December 2021 a share-based payment expense of US$3,131,433 (2020: US$1,392,484) was
recognised in line with option vesting periods, in which US$712,324 was recognised as a vesting expense from options
issued in a prior period.
Share based compensation comprises of the following:
Vested options relating to prior reporting period
Issue of options on 19 March 2021
Issue of options on 3 May 2021
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 1)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 2)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 3)
Issue of options under Employees Share Option Plan, 29 July 2021 (Tranche 4)
Issue of options on 17 July 2021
Issue of options on 6 August 2021
Issue of options on 6 August 2021
Vesting of CEO options (Tranche 1 - 4)
Share based compensation comprises of the following:
Vested options relating to prior reporting period
Option issued to distributors on 11 May 2020
Option issued to consultants on 18 June 2020
Shares issued to advisor on 20 August 2020
Option issued to advisor on 20 August 2020
Option issued to advisor on 20 August 2020
Option issued to advisors on 19 October 2020
Option issued to employees on 30 October 2020
Option issued to employees on 30 October 2020
Option issued to employees on 30 October 2020
Options issued to consultants on 12 November 2020
Options issued to consultants on 12 November 2020
2021
US$
712,324
34,989
368,072
239,372
237,781
237,781
64,248
38,617
561,471
248,023
388,755
3,131,433
2020
US$
36,861
14,675
21,025
177,581
14,332
8,155
487,949
350,163
192,032
59,944
17,761
12,006
1,392,484
47 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 17: OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of
Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources.
(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)sole operating segment is consistent with the presentation of these consolidated financial statements.
NOTE 18: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
(cid:100)(cid:346)(cid:286)(cid:3) (cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3) (cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:349)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:400)(cid:410)(cid:3) (cid:373)(cid:258)(cid:349)(cid:374)(cid:367)(cid:455)(cid:3) (cid:381)(cid:296)(cid:3) (cid:282)(cid:286)(cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:400)(cid:3) (cid:449)(cid:349)(cid:410)(cid:346)(cid:3) (cid:271)(cid:258)(cid:374)(cid:364)(cid:400)(cid:853)(cid:3) (cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3) (cid:282)(cid:286)(cid:271)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:400)(cid:3) (cid:393)(cid:258)(cid:455)(cid:258)(cid:271)(cid:367)(cid:286)(cid:856) The main
purpose of non-(cid:282)(cid:286)(cid:396)(cid:349)(cid:448)(cid:258)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:258)(cid:349)(cid:400)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:856)(cid:3)
Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments are market risk (including fair value and interest rate
risk) and cash flow interest rate risk, credit risk and liquidity risk.
(a) Interest Rate Risk
From time to time the Group has significant interest-bearing assets, but they are as a result of the timing of equity raising
and capital expenditure rather than a reliance on interest income. The interest rate risk arises on the rise and fall of interest
(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:373)(cid:286)(cid:3)(cid:258)nd operating cash flows are not expected to be materially exposed to changes in market interest
rates in the future and the exposure to interest rates is limited to the cash and cash equivalents balances.
(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:286)(cid:454)(cid:393)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:853)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:859)(cid:400)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:296)(cid:367)(cid:437)(cid:272)(cid:410)(cid:437)(cid:258)(cid:410)(cid:286)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:3) of
changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial
liabilities, is below:
Floating
Interest
Rate
Fixed
Interest
Rate (6%)
Non-interest
bearing
2021
Total
Floating
Interest
Rate
Non-interest
bearing
2020
Total
US$
US$
US$
US$
US$
US$
Financial assets
- Within one year
Cash and cash equivalents
4,137,046
-
-
4,137,046
5,259,087
-
5,259,087
Trade and Other receivables
218,277
8,481
226,708
-
24,923
24,923
Total financial assets
4,137,046
218,277
8,481
4,363,754
2,259,087
24,923
5,284,010
Weighted average interest rate
0.19%
0.08%
Financial Liabilities
- Within one year
Trade and other Payables
Other Liabilities
Lease liabilities
Total financial liabilities
Weighted average interest rate
-
-
-
-
-
-
-
-
351,406
351,406
-
603,721
603,721
955,127
955,127
-
-
-
-
180,537
180,537
-
-
33,757
33,757
214,294
214,294
Net financial assets
4,137,046
218,277
(946,646)
3,408,627
5,259,087
(189,371)
5,069,716
48 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 18: FINANCIAL INSTRUMENTS (CONTINUED)
Sensitivity Analysis
(cid:100)(cid:346)(cid:286)(cid:3) (cid:296)(cid:381)(cid:367)(cid:367)(cid:381)(cid:449)(cid:349)(cid:374)(cid:336)(cid:3) (cid:410)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3) (cid:349)(cid:367)(cid:367)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3) (cid:400)(cid:286)(cid:374)(cid:400)(cid:349)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3) (cid:410)(cid:381)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:28)(cid:374)(cid:410)(cid:349)(cid:410)(cid:455)(cid:859)(cid:400)(cid:3) (cid:286)(cid:454)(cid:393)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3) (cid:410)(cid:381)(cid:3) (cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:400)(cid:3) (cid:349)(cid:374)(cid:3) (cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:3) (cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:856)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3) (cid:410)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)
indicates the impact on how profit and equity values reported at reporting date would have been affected by changes in the
relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement
in a particular variable is independent of other variables.
Movement in
Movement in
Profit
US$
Equity
US$
Year ended 31 December 2021
+/-1% in interest rates
46,981
46,981
Year ended 31 December 2022
+/-1% in interest rates
33,152
33,152
(b) Credit risk
The maximum exposure to credit risk is limited to the carrying amount, net of any provisions for impairment of those assets,
as disclosed in the Statement of Financial Position and notes to the financial statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance with
approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard and
(cid:87)(cid:381)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:396)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:410)(cid:3)(cid:367)(cid:286)(cid:258)(cid:400)(cid:410)(cid:3)(cid:4)(cid:4)-. The following table provides information regarding the credit risk relating to cash and money
(cid:373)(cid:258)(cid:396)(cid:364)(cid:286)(cid:410)(cid:3)(cid:400)(cid:286)(cid:272)(cid:437)(cid:396)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:87)(cid:381)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:286)(cid:396)(cid:393)(cid:258)(cid:396)(cid:410)(cid:455)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:400)(cid:856)
(b) Credit risk
Cash and cash equivalents - AA Rated
(c) Liquidity risk
Note
8a
2021
US$
2020
US$
4,137,046
5,256,087
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
(cid:349)(cid:410)(cid:400)(cid:3)(cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:258)(cid:272)(cid:346)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:349)(cid:374)(cid:336)(cid:3)(cid:367)(cid:349)(cid:395)(cid:437)(cid:349)(cid:282)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)ensure, as far as possible, that
it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
(cid:349)(cid:374)(cid:272)(cid:437)(cid:396)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:437)(cid:374)(cid:258)(cid:272)(cid:272)(cid:286)(cid:393)(cid:410)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:286)(cid:400)(cid:3)(cid:381)(cid:396)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:349)(cid:374)(cid:336)(cid:3)(cid:282)(cid:258)(cid:373)(cid:258)(cid:336)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:393)(cid:437)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash
flows.
The Group has no access to credit standby facilities or arrangements for further funding or borrowings in place. The financial
liabilities of the Group are confined to trade and other payables as disclosed in the Statement of Financial Position. All trade
and other payables are non-interest bearing and due within 12 months of the reporting date.
49 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 18: FINANCIAL INSTRUMENTS (CONTINUED)
2021
Financial liabilities at
amortised cost
Trade and other
payables
Lease liabilities
- Office lease
- Car lease
2020
Financial liabilities at
amortised cost
Trade and other
payables
Lease liabilities
- Office lease
- Car lease
Less than 6
months
6-12
months
1-2 years
US$
US$
US$
2-5
years
US$
Over 5
years
US$
Total
contractual
cash flows
US$
Carrying
amount
(liabilities)
US$
(351,406)
-
-
(163,023)
(6,985)
(521,414)
(163,023)
(2,328)
(165,351)
(326,045)
-
(326,045)
Less than
6 months
6-12
months
1-2 years
US$
US$
US$
2-5
years
US$
(180,537)
-
-
(9,546)
(19,736)
(209,819)
-
(11,413)
(11,413)
-
(9,009)
(9,009)
-
-
-
-
-
-
-
-
-
-
-
-
(351,406)
(351,406)
(652,091)
(9,313)
(1,012,810)
(594,721)
(9,000)
(955,127)
Over 5
years
US$
Total
contractual
cash flows
US$
Carrying
amount
(liabilities)
US$
-
-
-
-
(180,537)
(180,537)
(9,546)
(40,158)
(230,241)
(9,535)
(37,533)
(227,605)
(d) Net fair Value of financial assets and liabilities
Fair value estimation
Due to the short-term nature of the receivables and payables the carrying value approximates fair value.
(e) Financial arrangements
The company had no other financial arrangements in place at 31 December 2021 based on the information available to the
current board.
(f) Currency risk
The currency risk is the risk that the value of financial instruments will fluctuate due to change in foreign exchange rates.
Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency
(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:296)(cid:437)(cid:374)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:272)(cid:455)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:286)(cid:454)(cid:393)(cid:381)(cid:400)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:296)(cid:381)(cid:396)(cid:286)(cid:349)(cid:336)(cid:374)(cid:3)(cid:286)(cid:454)(cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:258)(cid:396)(cid:349)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:448)(cid:258)(cid:396)(cid:349)(cid:381)(cid:437)(cid:400)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:272)(cid:455)(cid:3)
exposures primarily with respect to the US Dollar (the functional currency), the New Israeli Shekel, the Australian Dollar and
the Swiss Franc.
50 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 18: FINANCIAL INSTRUMENTS (CONTINUED)
(cid:100)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:374)(cid:410)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:410)(cid:381) any currency hedging transactions.
2021
2020
Cash and cash equivalents
Foreign Currency
USD Equivalent
Foreign Currency
USD Equivalent
New Israeli Shekels
Australian Dollar
Swiss Franc
493,730
5,421,589
26,197
158,756
3,937,385
28,678
172,085
53,526
6,722,925
5,182,441
5,598
6,355
NOTE 19: PARENT ENTITY FINANCIAL INFORMATION
The following information has been extracted from the books and records of the legal parent Dotz Nano Limited which have
been prepared in accordance with Australian Accounting Standards and the accounting policies as outlined in note 1.
(a)
Financial Position of Dotz Nano Limited
ASSETS
Current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
TOTAL LIABILITIES
NET ASSETS
(cid:94)(cid:44)(cid:4)(cid:90)(cid:28)(cid:44)(cid:75)(cid:62)(cid:24)(cid:28)(cid:90)(cid:94)(cid:859)(cid:3)(cid:28)(cid:89)(cid:104)(cid:47)(cid:100)(cid:122)
Issued capital
Reserves
Accumulated Losses
(cid:94)(cid:44)(cid:4)(cid:90)(cid:28)(cid:44)(cid:75)(cid:62)(cid:24)(cid:28)(cid:90)(cid:94)(cid:859)(cid:3)(cid:28)(cid:89)(cid:104)(cid:47)(cid:100)(cid:122)
2021
US$
3,206,430
3,206,430
99,437
99,437
3,106,993
2020
US$
4,751,383
4,751,383
102,338
102,338
4,649,045
348,145,246
6,341,759
(351,380,013)
3,106,993
344,252,452
3,442,038
(343,045,445)
4,649,045
(b) Statement of profit or loss and other comprehensive income
Loss for the year
Total comprehensive loss
(8,334,568)
(8,334,568)
(4,557,582)
(4,557,582)
(c) Guarantees entered into by Dotz Nano Limited for the debts of its subsidiary
There are no guarantees entered into by Dotz Nano Limited (2020: Nil).
(d) Contingent liabilities of Dotz Nano Limited
(cid:100)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:400)(cid:437)(cid:271)(cid:400)(cid:349)(cid:282)(cid:349)(cid:258)(cid:396)(cid:455)(cid:3)(cid:24)(cid:381)(cid:410)(cid:460)(cid:3)(cid:69)(cid:258)(cid:374)(cid:381)(cid:3)(cid:62)(cid:410)(cid:282)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:286)(cid:374)(cid:410)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:336)(cid:396)(cid:258)(cid:374)(cid:410)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:282) from BIRD. As stated
under Note 1 the company currently does not expect to generate revenues from the development made under this
grant. As the liability is contingent on royalty payments on developed products, should this assumption change
the Company will be required to pay royalties to BIRD ).
(e) Commitments by Dotz Nano Limited
Known commitments as at 31 December 2021 are disclosed in the consolidated entities in Note 21 below (2020: Nil).
51 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 20: CONTROLLED ENTITIES
Controlled entity
Dotz Nano Ltd
Country of
Incorporation
Israel
Percentage Owned
2021
100%
2020
100%
NOTE 21: COMMITMENT
The Group has no commitments which are not recorded on the statement of financial position as at 31 December 2021.
NOTE 22: CONTINGENT LIABILITIES
The Company has a contingent liability related to the grant received from BIRD. As stated under Note 1 the company
currently does not expect to generate revenues from the development made under this grant. As the liability is contingent
on royalty payments on developed products, should this assumption change the Company will be required to pay royalties
to BIRD (2020: Nil).
There were no other continent liabilities for the year ended 31 December 2021.
NOTE 23: EVENTS SUBSEQUENT TO REPORTING DATE
No matters have arisen since the end of the financial year to the date of this report of a material, and unusual nature likely,
in the opinion of the Directors, to affect significantly the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years.
NOTE 24: NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS
There are no Australian accounting standards and Interpretations that have recently been issued or amended but are not
yet effective and have not been adopted by the Group for the year ended 31 December 2021 which are expected to have a
material impact on the Group in future reporting.
52 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
(cid:24)(cid:47)(cid:90)(cid:28)(cid:18)(cid:100)(cid:75)(cid:90)(cid:94)(cid:859)(cid:3)(cid:24)(cid:28)(cid:18)(cid:62)(cid:4)(cid:90)(cid:4)(cid:100)ION
(cid:47)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:855)(cid:3)
1.
The consolidated financial statements and notes set out on pages 21 to 52 are in accordance with the Corporations
Act 2001, including:
a)
complying with Australian Accounting Standards and Corporations Regulations 2001;
b) (cid:336)(cid:349)(cid:448)(cid:349)(cid:374)(cid:336)(cid:3) (cid:258)(cid:3) (cid:410)(cid:396)(cid:437)(cid:286)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:296)(cid:258)(cid:349)(cid:396)(cid:3) (cid:448)(cid:349)(cid:286)(cid:449)(cid:853)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:286)(cid:374)(cid:410)(cid:349)(cid:410)(cid:455)(cid:859)(cid:400)(cid:3) (cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:258)(cid:400)(cid:3) (cid:258)(cid:410)(cid:3) (cid:1007)(cid:1005)(cid:3) (cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3) (cid:1006)(cid:1004)21 and of its
performance for the year ended on that date; and
2.
3.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
This declaration has been made after receiving the declaration required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 31 December 2021.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Bernie Brookes AM
Non-Executive Chairman
25 March 2022
53 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
Tel: +61 8 6382 4600
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
Fax: +61 8 6382 4601
www.bdo.com.au
www.bdo.com.au
www.bdo.com.au
38 Station Street
Level 9, Mia Yellagonga Tower 2
Subiaco, WA 6008
5 Spring Street
PO Box 700 West Perth WA 6872
Perth, WA 6000
Australia
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Dotz Nano Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Dotz Nano Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 31 December 2021, 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 report, including a summary of significant accounting policies and the di(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:183)(cid:3)
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the (cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:183)(cid:86) financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the (cid:36)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting P(cid:85)(cid:82)(cid:73)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:40)(cid:87)(cid:75)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:183)(cid:86)(cid:3)
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We 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 (cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:17)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(b) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:183)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:74)(cid:82)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:72)(cid:85)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:88)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Accounting for Share-Based Payments
Key audit matter
How the matter was addressed in our audit
During the financial year ended 31 December
2021, the Group issued equity instruments, to
eligible directors, employees and other
consultants, which have been accounted for
as share-based payments, as disclosed in Note
16 to the financial report.
(cid:55)(cid:75)(cid:72)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:183)(cid:86)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)-
based payments and significant judgements
applied to these arrangements are disclosed
in Note 1(o) & 1(u)
Share-based payments are a complex
accounting area and due to the complex and
judgemental estimates used in determining
the fair value of share-based payments, we
(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:183)(cid:86)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85) share-
based payments to be a key audit matter.
Our audit procedures in respect of this area included
but were not limited to the following:
(cid:135) Reviewing relevant supporting documentation
to obtain an understanding of the contractual
nature and terms and conditions of the share-
based payment arrangements;
(cid:135) (cid:53)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:183)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)
the fair value of the share-based payments
granted, considering the appropriateness of
the valuation models used and assessing the
valuation inputs;
(cid:135)
Involving our valuation specialists to assess
the assumptions and inputs used in the
valuation;
(cid:135) Assessing the allocation of the share-based
(cid:83)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:183)(cid:86)(cid:3)
expected vesting period; and
(cid:135)
Assessing the adequacy of the disclosure in
Note 1(o) & 1(u) and Note 16 in the financial
report.
Other information
The directors are responsible for the other information. The other information comprises the
(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:183)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)the year ended 31 December 2021, but does not include
the financial (cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:82)(cid:81)(cid:17)
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
(cid:36)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)
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 aud(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)
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 (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:183)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:17)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 11 to 19 of (cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:183) report for the
year ended 31 December 2021.
In our opinion, the Remuneration Report of Dotz Nano Limited, for the year ended 31 December 2021,
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.
BDO Audit (WA) Pty Ltd
Ashleigh Woodley
Director
Perth, 25 March 2022
ADDITIONAL ASX INFORMATION
The shareholder information set out below was applicable as at 15 March 2022.
As at 15 March 2022 there were 951 holders of Ordinary Fully Paid Shares.
CORPORATE GOVERNANCE
(cid:100)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3) (cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3) (cid:39)(cid:381)(cid:448)(cid:286)(cid:396)(cid:374)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3) (cid:94)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:346)(cid:258)(cid:400)(cid:3) (cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:396)(cid:286)(cid:367)(cid:286)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3) (cid:258)(cid:400)(cid:3) (cid:258)(cid:3) (cid:400)(cid:286)(cid:393)(cid:258)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3) (cid:282)(cid:381)(cid:272)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) (cid:349)(cid:400)(cid:3) (cid:258)(cid:367)(cid:400)(cid:381)(cid:3) (cid:367)(cid:381)(cid:272)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:381)(cid:374)(cid:3) (cid:381)(cid:437)(cid:396)(cid:3)
website at https://www.dotz.tech/investors/
VOTING RIGHTS
The voting rights of the ordinary shares are as follows:
(a)
(b)
at meetings of members each member entitled to vote may vote in person or by proxy or attorney; and
on a poll each person present in person or by proxy or by attorney has one vote for each ordinary share held.
There are no voting rights attached to any of the options that the Company currently has on issue. Upon exercise of these
options, the shares issued will have the same voting rights as existing ordinary shares.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of each class of listed securities are listed below:
Ordinary Fully Paid Shares
Holder Name
CITICORP NOMINEES PTY LIMITED
SOUTHERN ISRAEL BRIDGING FUND TWO LP
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
IBI TRUST MANAGEMENT
AVOCADO VENTURES INC
MARZAMENO LTD
MARZAMENO LTD
IBI TRUST MANAGEMENT
ZINNIAH GROUP LIMITED
ROMFAL SIFAT PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR NATANEL HARPAZ
BNP PARIBAS NOMINEES PTY LTD
MR GAREN AZOYAN SUTISY &
MRS ARMINEH MOSES MINASKANIANS
IBI TRUST MANAGEMENT
IBI TRUST MANAGEMENT
SOUTHERN ISRAEL BRIDGING FUND LP
KNH INVESTMENTS (AUST) PTY LTD
Total
Total issued capital - selected security class(es)
Holding
116,702,930
72,983,334
67,698,414
15,124,026
15,028,633
11,746,611
10,270,548
10,000,000
8,832,678
8,146,201
7,700,000
5,667,633
5,538,271
3,712,708
3,350,000
3,163,158
3,000,000
2,993,461
2,485,186
2,307,408
376,451,200
439,284,704
% IC
26.57%
16.61%
15.41%
3.44%
3.42%
2.67%
2.34%
2.28%
2.01%
1.85%
1.75%
1.29%
1.26%
0.85%
0.76%
0.72%
0.68%
0.68%
0.57%
0.53%
85.70%
100.00%
58 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
ADDITIONAL ASX INFORMATION
SUBSTANTIAL HOLDERS
The names of the substantial shareholders disclosed to the Company as substantial shareholders as at 15 March 2022 are:
Name
No of Shares Held
% of Issued Capital
CITICORP NOMINEES PTY LIMITED
SOUTHERN ISRAEL BRIDGING FUND TWO LP
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
DISTRIBUTION OF EQUITY SECURITIES
Ordinary Fully Paid Shares
Holding Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Totals
116,702,930
72,983,334
67,698,414
26.57%
16.61%
15.41%
Holders
Total Units
% Issued Share
Capital
158
224
160
286
123
951
10,593
668,763
1,310,140
10,598,050
426,697,158
439,284,704
0.00%
0.15%
0.30%
2.41%
97.13%
100.00%
Based on the price per security, number of holders with an unmarketable holding: 184, with total 43,539, amounting to
0.01% of Issued Capital (based on share price of $0.34)
RESTRICTED SECURITIES
As at 15 March 2022 the following shares are subject to escrow:
(cid:120) Nil
UNQUOTED SECURITIES
As at 15 March 2022, the following unquoted securities are on issue:
5,000,000 Options Expiring 19/10/23 @ $0.37.5 (cid:884) 1 Holders (DTZOPT30)
Holders with more than 20%
Holder Name
KETOM PTY LTD
4,629,630 Options Expiring 17/06/22 @ $0.09 (cid:884) 1 Holders (DTZOPT25)
Holders with more than 20%
Holder Name
SOUTHERN ISRAEL BRIDGING FUND LP
4,629,630 Options Expiring 10/09/22 @ $0.09 (cid:884) 1 Holders (DTZOPT29)
Holders with more than 20%
Holder Name
SOUTHERN ISRAEL BRIDGING FUND TWO LP
Holding
5,000,000
% IC
100%
Holding
4,629,630
% IC
100%
Holding
4,629,630
% IC
100%
59 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
ADDITIONAL ASX INFORMATION
500,000 Options Expiring 31/12/22 @ $0.09 (cid:884) 1 Holders (DTZOPT28)
Holders with more than 20%
Holder Name
ZINNIAH GROUP LIMITED
500,000 Options Expiring 31/12/22 @ $0.12 (cid:884) 1 Holders (DTZOPT27)
Holders with more than 20%
Holder Name
ZINNIAH GROUP LIMITED
375,000 Options Expiring 11/05/23 @ $0.048 (cid:884) 1 Holders (DTZOPT23)
Holders with more than 20%
Holder Name
UNIVERSAL EXPORTS GROUP LTD
3,550,000 Options ESOP T3 VEST 31/12/21 EXP 31/12/23 (cid:884) 08 Holders (DTZESOPT8)
Holders with more than 20%
Holder Name
IBI TRUST MANAGEMENT
< MICHAEL SHTEIN A/C>
IBI TRUST MANAGEMENT
< TOMER SEGEV A/C>
400,000 Options Expiring 16/10/22 @ $0.30 (cid:884) 1 Holders (DTZOPT32)
Holders with more than 20%
Holder Name
IBI TRUST MANAGEMENT
1,000,000 Options Expiring 04/12/22 @ $0.001 (cid:884) 1 Holders (DTZOPT33)
Holders with more than 20%
Holder Name
CAERUS THERAPEUTICS INC
250,000 Options Expiring 10/07/24 @ $0.20 (cid:884) 1 Holders (DTZOPT34)
Holders with more than 20%
Holder Name
NUBS GROUP TECHNOLOGIES LTD
1,085,000 Options Expiring 31/12/2022 @ $0.07 (cid:884) 3 Holders (DTZESOPT10)
Holders with more than 20%
Holder Name
BROOKES FAMILY INVESTMENTS
PTY LIMITED
GO RND PTY LTD
GO RND PTY LTD
Holding
500,000
% IC
100%
Holding
500,000
% IC
100%
Holding
375,000
% IC
100%
Holding
% IC
1,000,000
28.16$
1,000,000
28.16%
Holding
400,000
% IC
100%
Holding
1,000,000
% IC
100%
Holding
250,000
% IC
100%
Holding
% IC
440,000
40.55%
440,000
40.55%
250,000
18.89%
60 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021
ADDITIONAL ASX INFORMATION
2,500,000 Options Expiring 31/12/2022 @ $0.12 (cid:884) 3 Holders (DTZESOPT11)
Holders with more than 20%
Holder Name
BROOKES FAMILY INVESTMENTS
PTY LIMITED
GO RND PTY LTD
GO RND PTY LTD
1,250,000 Options Expiring 31/12/2023 @ $0.20 (cid:884) 3 Holders (DTZESOPT12)
Holders with more than 20%
Holder Name
BROOKES FAMILY INVESTMENTS
PTY LIMITED
GO RND PTY LTD
GO RND PTY LTD
4,000,000 Options Expiring 25/11/23 @ $0.252 (cid:884) 2 Holders (DTZOPT35)
Holders with more than 20%
Holder Name
HILHAR PTY LTD
TT MEDICAL UAE
1,500,000 Options Expiring 04/08/23 @ $0.23 (cid:884) 1 Holders (DTZOPT36)
Holders with more than 20%
Holder Name
V2 TECH DISTRIBUTORS PTY LTD
ON-MARKET BUY BACK
There is currently no on-market buyback program.
ASX LISTING RULE 4.10.19
Holding
% IC
1,000,000
40.00%
1,000,000
40.00%
500,000
20.00%
Holding
% IC
500,000
40.00%
500,000
40.00%
250,000
20.00%
Holding
% IC
2,000,000
50.00%
2,000,000
50.00%
Holding
1,500,000
% IC
100%
The Company has used its cash and assets in a form readily convertible to cash that it had at the time of reinstatement of
(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)(cid:3)(cid:400)(cid:286)(cid:272)(cid:437)(cid:396)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:395)(cid:437)(cid:381)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)n a way consistent with its business objectives.
61 I Dotz Nano Limited ABN 71 125 264 575 - Annual Report 31 December 2021