Annual Report
for the Year Ended 30 June 2021
CONTENTS
Highlights During The 2021 Financial Year
Corporate Directory
Review Of Operations
Directors’ Report
Auditor’s Independance Declaration
Consolidated Statement Of Profit Or Loss And Other Comprehensive Income
Consolidated Statement Of Financial Position
Consolidated Statement Of Changes In Equity
Consolidated Statement Of Cash Flows
Notes To The Financial Statements
Directors’ Declaration
Independant Auditor’s Report
Additional Information For Listed Public Companies
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
HIGHLIGHTS DURING THE 2021 FINANCIAL YEAR
TOTAL SALES DURING FY2021
Sales FY 2021
A$000’s
Sales FY 2020
A$000’s
EdenCrete®
OptiBlend®
Total
1,755
1,528
3,283
1,498
929
2,427
Sales
% Change
+17%
+64%
35%
HIGHLIGHTS
EdenCrete®
THE IMPACT OF COVID-19
In spite of continued significant ongoing disruption, in all
Eden’s markets and activities, to all of Eden’s activities
during the entire 2021 financial year, our total sales
increased by 36% compared with the previous year that
was only impacted for six months, with EdenCrete®
sales increasing 17% to A$1,755,000 and OptiBlend®
sales increasing by an impressive 65% to A$1,528,000
compared to the prior year, as the negative impact of
COVID-19 intermittently and gradually started to reduce.
US EDENCRETE® MARKET
GEORGIA - SUMMARY OF ACTIVITIES
◊ Total EdenCrete® sales in Georgia for the year were
US$938,893 (A$1,209,452) spread across eleven
different customers. These sales covered a range of
different applications.
◊ The sales for the year do not include the Georgia
Department of Transport (GDOT) I-675/75 Highway
Repair Project which was delayed, approximate value of
US$535,000 (A$735,333) (PO received
August 2021).
◊ First waste transfer station project undertaken
in Georgia.
◊ Use of EdenCrete® in shotcrete applications in Georgia
is growing, particularly for the concrete swimming
pool market.
◊ Eden working to develop a high performance, low cost,
low carbon footprint concrete mix with EdenCrete®,
to satisfy the GDOT standards for all classes of
concrete pavement.
◊ Successful field trials with Georgia Ports Authority (GPA)
in 2020 led to EdenCrete® been included by GPA in the
specifications for two projects and used in a third small
repair contract at the Port of Savannah.
COLORADO - SUMMARY OF ACTIVITIES
◊ Total EdenCrete® sales in Colorado for the year
were US$187,011 (A$257,053). These sales were
spread across seven different repeat customers for
various applications.
◊ First volumetric concrete projects successfully
completed.
◊ City of Denver Department of Transportation and
Infrastructure completed a positive review of a long-
term trial for increasing resistance to scaling and
break-down of the concrete from the frequent and
heavy application of de-icing chemicals during winter.
◊ Used in projects for both the City of Breckinridge and
the City of Silverthorne.
◊ Colorado Department of Transportation (CDOT) Projects:
◊ EdenCrete® continues to be used in all shotcrete
on Central 70 shotcrete project enabling replacement
of 25% of the Ordinary Portland Cement with
additional fly ash.
◊ EdenCrete® specified in Restoration of East Portal of
Moffat Tunnel.
◊ EdenCrete® trialled on I-70 in Vail Pass Major
Comparative Paving Trial.
◊ EdenCrete® used for first time at the Denver
International Airport (DIA) in replacement concrete
panels, since then EdenCrete® again used in concrete
for additional similar, small repair projects.
OTHER US ACTIVITIES
◊ 17% increase in US EdenCrete® sales in spite of the
impact of the pandemic.
◊ Shotcrete market growing significantly and promotional
EdenCrete® shotcrete video produced.
◊ First large, long term supply agreement entered into
with Silent Partner International.
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Annual Report 2021ASX Code: EDE INTERNATIONAL EDENCRETE® MARKET
AUSTRALIA
◊ Approval received by Parchem to import EdenCrete®
into Australia for sale and use.
◊ Australian sales and marketing programme
accelerating.
INDIA
◊ First EdenCrete® commercial order received from large
construction company.
◊ Significant market potential in India for EdenCrete® Pz,
which Eden is actively pursuing.
ISRAEL
◊ First EdenCrete® commercial order received.
OptiBlend®
◊ Significant sales and market growth in both US and
India. During the 2021 financial year, Indian OptiBlend®
sales increased by an exceptional 508% and total global
OptiBlend® sales by a very impressive 65%.
EdenPlast®
◊ Trials of carbon nanotube (“CNT”) enriched polymers
commenced in Japan.
◊ The fifth Australian Research Council (”ARC”) Linkage
Research Grant worth A$376,518 awarded to Eden
and the University of Queensland (“UQ”) to help fund
the development on new production methods of CNT
enriched thermoplastic composites.
Hydrogen
◊ During the year Eden undertook preliminary discussions
with three groups in Australia relating to possible
collaborations for various hydrogen related projects
but to date no progress has been made on any possible
commercial project.
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE CORPORATE DIRECTORY
DIRECTORS:
Gregory H Solomon LLB (Executive Chairman)
Douglas H Solomon BJuris LLB (Hons) (Non-Executive)
Lazaros Nikeas B.A. (Non-Executive)
Stephen D Dunmead B.Sc., M.Sc., Ph.D. (Non-Executive)
COMPANY SECRETARY:
Aaron P Gates B.Com, CA, AGIA
REGISTERED OFFICE:
Level 15
197 St Georges Terrace
Perth
Western Australia 6000
Tel +61 8 9282 5889
Email: mailroom@edeninnovations.com.au
Website: www.edeninnovations.com
SOLICITORS:
Solomon Brothers
Level 15
197 St Georges Terrace
Perth WA 6000
AUDITORS:
Nexia Perth Audit Services Pty Ltd
Level 3
88 William Street
Perth WA 6000
SHARE REGISTRY:
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
STOCK EXCHANGE LISTING:
ASX Code: EDE (ordinary shares)
Quotation has been granted for all the ordinary shares of the company on all Member
Exchanges of the Australian Securities Exchange Limited.
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Annual Report 2021ASX Code: EDE REVIEW OF OPERATIONS
COVID- 19 IMPACT
In addition to major disruptions in the US for much of the
past year, India and France are good examples, where two
major companies, one in each country, had incorporated
EdenCrete® products into a number of their standard
concrete mix designs shortly before each country was
locked down, and both companies were effectively closed
for most of the financial year.
However, during a period when the lockdowns were lifted,
Eden was able to receive from Godrej Constructions,
a large Indian construction company, its maiden
EdenCrete® order, although a further lockdown shortly
after greatly restricted further activity during the
remainder of the year.
Encouragingly, increases in annual year-on-year sales
of all products were achieved during a continuing, very
difficult period, in spite of all of Eden’s markets having
been significantly impacted by the COVID-19 pandemic,
and as restrictions gradually ease and more normal
activity returns, considerable sales growth is expected
across all products.
EdenCrete®
USA
Sales
For the full year (FY2021) however, the EdenCrete® sales
still grew by 17% on a year on year basis, in spite of the
significant global impact of the COVID-19 pandemic and
a large order for US$535,000 (approx. A$735,000) for a
Georgia highway repair project on the I-675/75 Interstate
Highway being delayed until FY2022.
Shotcrete and Concrete Pumping Markets
Following success in Colorado, the EdenCrete® market
for shotcrete and concrete pumping applications in
other States has grown, consistently delivering stronger,
cheaper shotcrete at lower pressures, with far less waste
and dust. Additionally, often a significant percentage of
the Ordinary Portland Cement can be replaced with far
lower Greenhouse Gas-footprint fly-ash.
Since early 2021, growth in shotcrete and concrete
pumping applications has occurred. In Georgia, one new
shotcrete customer is regularly using EdenCrete® in
a range of applications, including the construction of
concrete swimming pools and hardscapes. Two other
Georgia customers are also trialing EdenCrete® in
shotcrete mixes for swimming pool construction, earth
stablisation and shoring.
Interest is also in both shotcrete and concrete pumping
in several other states, and for both mining applications
(particularly for underground mining applications) and
concrete 3-D printing applications.
The US market growth follows the longer-term progress
made in the Colorado shotcrete market and concrete
pumping applications over the past two years, that
enabled Eden to develop a significant, repeatable market
that consistently delivering stronger, cheaper shotcrete
at lower pressures, with far less waste and dust and often
with a significant amount of Ordinary Portland Cement
being replaced with lower Greenhouse Gas-footprint fly-
ash or blast furnace slag.
CDOT- Central 70 Shotcrete Project
During the year, the use of EdenCrete® in the shotcrete
used on the major CDOT Central 70 project, that started
in mid-2018, continued (see Figures 1-2). This project
involves the reconstruction of 10 miles of the I-70
Interstate Highway through central Denver, including
sinking it in part, and establishing of a park above it.
Construction is anticipated to run into the end of the first
quarter of 2022.
The Central 70 Project was estimated, at commencement,
to require between 6,000 -10,000 cubic yards of the
shotcrete. The full strength, EdenCrete® shotcrete mix
requires less cement that will result in a reduction of
between 413 metric tonnes and 689 tonnes replaced by
between an extra 93 tonnes and 154 tonnes of fly ash,
and an additional 2% aggregate.
Fly ash, a waste product from coal fired power stations,
has a zero Greenhouse Gas Footprint, and sells in the
Colorado for approximately 50% of the cost of cement.
Producing one tonne of cement generates approximately
0.927 tonnes of CO2. The shotcrete in this project is
cheaper and has a far lower Greenhouse Gas footprint,
delivering the following benefits:
◊ A reduction of between 382 tonnes and 630 tonnes in
the total CO2 from the reduced cement;
◊ A net cost saving of more than $3 /cubic yard of
concrete (after including the costs of the EdenCrete®
and additional fly ash and aggregate) by replacing
cement with fly ash.
Figure 1. Shotcrete section along Central 70 Project
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
REVIEW OF OPERATIONS (Continued)
US Precast Market
Trials using EdenCrete® have taken place during the
year with two companies in different States for different
pre-cast market applications. Whilst no sales have yet
occurred, Eden is confident that sales are likely to follow in
due course after the full evaluation process is completed.
GEORGIA
Georgia Department of Transportation Projects
Sales Revenue from GDOT Highway Repair Projects
In FY 2021, the data from GDOT projects that used
EdenCrete® (not including I-675 project) was:
Figure 2. Shotcrete being applied on Central 70 Project
◊ 9 GDOT highway repair projects undertaken;
Shotcrete- Other applications
Shotcrete applications using EdenCrete® has been one
of the major growth areas during the past 12 months. In
addition to the I-70 project in Denver, shotcrete has been
used or trialled in Colorado, Georgia, New Jersey, South
Carolina, Tennessee, Utah and Arizona for a range of
applications including swimming pools and retaining walls,
many sculpted like natural rock (see Figures 3 and 4).
◊ 30,320 gallons (114,773 litres) of EdenCrete® was used;
and
◊ US$758,000 (A$1,042,000) total sales revenue
was generated.
FY 2022 revenue from GDOT repair projects is estimated
to exceed US$1million (A$1.37 million)
Federal Highway Authority/ GDOT Funded I-675/75
Repair Project
The I-675/75 Repair Project in Georgia that was delayed
during the 2021 financial year, alone is estimated to
require approximately 10,700 cubic yards of concrete
that will incorporate 21,400 gallons of EdenCrete® with
an aggregate value of US$535,000 (approx. A$735,000).
Although the contract for the project was awarded in
April 2021, the project was delayed due to a shortage
of cement.
Eden received the purchase order in August 2021,
and the project commenced in late September 2021.
On-site volumetric truck batched concrete will be used. In
September 2021 Eden installed a 6,100 gallon tank and
delivered 5,000 gallons of EdenCrete® (see Figure 5).
Figure 3. Shotcrete retaining wall being sculpted to look like
natural rock face.
Figure 4. Shotcrete being used to build a concrete swimming
pool.
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Figure 5. – First 5,000 gallons of EdenCrete® being pumped
into on-site I-675 storage tank in Georgia
Georgia Port Authority Projects
During the year and following the highly successful field
trials that took place with GPA in early 2020 (see Eden ASX
announcement dated 7 February 2020), EdenCrete® has
Annual Report 2021ASX Code: EDE been included in three GPA small concrete repair projects,
including being added by GPA contracted engineers to
the specifications for two of these contracts and being
included by a contractor in a third, in areas of the port
that are exposed to harsh operating conditions and
heavy wear.
Eden has also completed the development with a number
of companies, of various EdenCrete® enhanced concrete
mix designs for use in a range of port, marine and coastal
applications.
High Performance, Lower Cost, Lower Carbon
Footprint Concrete
Eden is currently developing a high performance,
lower cost, lower carbon footprint concrete mix using
EdenCrete®, that will be suitable for possible use in all
GDOT concrete paving applications. Initial trials have been
promising and Eden is hopeful that this project will be
successful, as it could help open up access to not only a
wider range of infrastructure projects in Georgia but also
all across the US.
COLORADO
Denver Department of Transportation
and Infrastructure Trial
In November 2020, senior engineers from Denver
Department of Transportation Infrastructure (DDOTI),
formerly called Denver Public Works, delivered a very
positive evaluation of 3-year long trial of EdenCrete®
in concrete road when exposed to heavy vehicle traffic
and heavy and often repeated dosages of de-icing salts.
The evaluation was reported to Eden in a letter dated
24 November 2020 from DDOTI that included the
following:
“The purpose of this letter is to provide a summary of
our experience with EdenCrete. In 2017 several panels
of Speer Boulevard were replaced with concrete that had
two different doses of EdenCrete. Control panels were
also placed on Speer Boulevard. The test section was
on the southbound outside lane, south of 6th Avenue.
Representatives from EdenCrete were onsite during
construction to assist the contractor which ensured
a successful project. I would like to thank EdenCrete for
the support and help with this project.
During the inspection, I noted that the EdenCrete concrete
had performed exceptionally well over the last three
years. This was particularly remarkable given the very high
volume of vehicle use and associated surface abrasion
coupled with the heavy and often repeated magnesium
chloride applications. The test sections looked great. I
observed no scaling or cracking in the EdenCrete sections,
while the reference sections, with no EdenCrete, were
exhibiting load and plastic shrinkage cracking and scaling.
OAM1 has included EdenCrete through statement in the
specifications that admixtures not listed may be used
with approval of the product manager. We will continue to
use the product in areas where a high level of reliability
is required. We are extremely pleased with the EdenCrete
product and look forward to continuing our evaluation of
the product.”
This assessment by a government department after
a 3-year field trial, tested under tough conditions, is
important to the future marketing of EdenCrete® in
places subject to snow and freezing winter conditions.
CDOT I-70 - Vail Pass – Long Term Major Paving Trial
Following several years of planning, the Colorado
Department of Transportation (CDOT) commenced
a major concrete paving trial on the I-70 Interstate
Highway at Vail Pass in the Rocky Mountains in Colorado
(see Figure 6). The trial is evaluating the comparative
performance of three different concrete mix designs in
the harsh and challenging conditions experienced
at approximately 3,050 meters elevation.
Figure 6- Vail Pass Trial on I-70
Historically, CDOT’s high-altitude designs require asphalt
pavement due to its flexibility, the ease of placement
and repair, as well as the cost. Their arguments
against concrete pavement have been increased cost,
long construction cycles, and extended lane closures
creating unsafe traffic conditions. Further, the soil in the
mountains is notorious for movement under load, and a
more flexible material such as asphalt pavement has been
assumed to perform better than concrete with regards
to cracking.
Typically, high mountain passes like Vail expose
pavements to severe winter weather and freeze thaw
cycles that require the application of harsh de-icer
chemicals. Coupled with this, semi-trailers using snow
chains and passenger vehicles with studded snow tires for
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE REVIEW OF OPERATIONS (Continued)
concrete were removed and replaced with EdenCrete®.
After 12 months, these sections showed no deterioration
and, as a result, EdenCrete® was used in the replacement
of the next five adjacent panels as part of an ongoing
renovation project (see Figure 8).
Figure 8. Replacement of concrete panels on United Airlines
maintenance hangar apron.
Moffat Tunnel Restoration
EdenCrete® was specified in shotcrete that was to be
used in the restoration of the badly deteriorated East
Portal and some the interior tunnel lining of the Moffat
Tunnel, an operational tunnel that passes under the Rocky
Mountains in Colorado, connecting Denver with the West
Coast (see Figure 9). EdenCrete® was specified in the
shotcrete to improve durability and resistance to abrasion,
and to extend the life cycle. The project took place after
the end of the 2021 financial year.
Figure 9. The East Portal of the Moffat Tunnel
driving safely in icy conditions create pavement rutting, a
dangerous safety hazard for the motoring public. CDOT is
considering the economic benefits of the extended service
life from the use concrete pavement instead of asphalt
and is evaluating a control mix, a silica fume mix and a
mix dosed with EdenCrete®.
A 4500 psi (31 MPa) exterior paving mix was specified as
the base design for the control. Their second mix used
the same control mix but replaced 7% of the cement with
silica fume. The third mix included EdenCrete® at 2 gal/
yd3 (9.9 l/m3) without silica fume. The concrete pavement
sections will be evaluated over time, likely to include at
least two winters, for surface wear, cracking, scaling,
and rutting.
First Volumetric Truck Batching
EdenCrete® was used for the first time in a volumetric
truck batching and pumping project in November 2020 at
Loveland, in Colorado (see Figure 7). Volumetric concrete
is batched on site.
Figure 7. Volumetric truck mixing at the Loveland project site
Whilst not a large project, it was important because
volumetric truck batching has a growing market share in
the residential, and small order markets and, importantly
for DOT projects across the US. These projects requiring
volumetric truck batching services are often in rural or
more remote locations that may not be easily supplied by
ready-mix trucks supplied from plant batched concrete
production. Truck based, volumetric concrete batching is
a growing market sector and its importance is reflected by
number of ready-mix suppliers that are also suppliers of
volumetric mixed concrete across the US.
Of relevance, volumetric truck batching is being used on
the GDOT US$535,000 I-675 Interstate highway repair
project in Georgia that commenced in September 2021.
Denver International Airport Repair Project
In February 2020, United Airlines removed and replaced
a number of concrete panels on the apron of their
maintenance hangar at Denver International Airport that
had deteriorated due to alkali silica reactivity, scaling
caused by harsh de-icer chemicals, and abrasive wear
and tear from airplane tyres. Several small sections of
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Annual Report 2021ASX Code: EDE KANSAS
Wichita Carpark Project
EdenCrete® was used in a significant construction project,
that includes a new 505-bay carpark and 10-story tower
during the year in Wichita, Kansas. The two-phase project,
began with the construction of the new five-story private
carpark building, including 17,000 square feet of street-
level retail space (see Figures 10 and 11) and phase two
will be the construction of The Tower, a 10-story building.
Figure 10 Wichita, Kansas Project.
More than US$30,000 worth of EdenCrete® was included
in the more than 2,000 m3 concrete installed in the decks,
ramps, sidewalks and entryways of the new carpark, to
deliver improved crack reduction, abrasion and scaling
resistance and better pumpability. Pump pressures were
measured at around 10 MPa whilst the required pumping
pressure without EdenCrete®, would usually be in the
range of 20-22.5 MPa.
Figure 11. Installing top deck of car park
SILENT PARTNER INTERNATIONAL AGREEMENT
Eden signed a long-term agreement (“the Agreement”)
under which Eden US agreed to sell in aggregate
US$48 million worth of EdenCrete®, and potentially
other products, over the next 8 years to Silent Partner
International, Inc. (“SPI”), a US company based in
Florida. The products will be used in the construction and
maintenance of a number of proposed facilities that SPI
plans to build in the USA and in other countries. There
is no minimum quantity of EdenCrete® that SPI must
purchase stipulated in the Agreement, and there are no
penalties if lesser quantities are purchased, but Eden
may terminate the Agreement. The first Facility is to be
constructed in West Virginia.
SPI has developed a proprietary design that is to be
used in the proposed facilities for mitigation of the
impact of a broad spectrum of radio frequency (“RF”)
interference and/or electromagnetic pulses (“EMP”)
that can result from natural occurrences such as solar
flares, or human generated causes such as nuclear
explosions (“the Purpose”). The proposed facilities will
be designed for energy generation coupled with one or
more of desalination, IT/data storage, aquaculture and/
or agri-tech (“the Facilities”). In addition to increasing the
strength and durability of the concrete, the EdenCrete®
and other products are to be included to help SPI achieve
the Purpose and mitigate the impact of RF interference
and EMP.
Over the past year, Eden has attended several meetings
reviewing certain aspects of the project with some of
the construction partners appointed by SPI for this
first project. Details of all the construction partners are
listed in the SPI website. Eden has been informed that
construction is planned to start later in 2021 but the
precise date is yet to be advised.
AUSTRALIA
The first significant sale to Parchem Construction
Supplies Pty Ltd occurred during the year for US$58,278
for a 20-foot container load of EdenCrete® products,
comprising mostly EdenCrete® and a limited quantity
of EdenCrete®Pz, that was supplied from Eden’s
plant in Littleton, Colorado, USA. This order was a very
welcome development and follows significant interest
in EdenCrete® products being shown by a range of
companies in Australia and New Zealand, that in turn has
resulted in a number of successful trials of EdenCrete®
products being carried out by potential customers.
After extensive communications over more than
12 months, NICNAS, the Australian Government body
that assesses chemical products that are proposed to be
manufactured in, or imported into, Australia, completed
the formal assessment of the EdenCrete® products and
NICNAS approved the importation for sale and use in
Australia of the EdenCrete® products.
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE REVIEW OF OPERATIONS (Continued)
INDIA
Eden recorded its first sale to the construction division
of Godrej & Boyce Manufacturing Co. Ltd (“Godrej”), to
supply it with EdenCrete®Pz for use in its ready-mix
concrete operation that is run by Godrej Construction,
the construction division of Godrej. The Godrej Group is
diversified, operating in India and internationally, supplying
over one billion customers and generating annual revenue
of over US$4 billion. Godrej operates nine ready-mix
plants that supply concrete to three major Indian cities
with a combined population of over 50 million people. Six
of these plants are located in greater Mumbai, the second
largest city in India (and seventh largest in the world), with
a population over 30 million people. Two of the plants are
located in Pune with a population of 6.4 million people,
and one plant is in Bengaluru (formerly called Bangalore),
with a population of 13.4 million people.
This initial order from Godrej was a significant
development for the EdenCrete® products, and follows the
successful completion in February 2020, before the first
COVID 19 lockdown restrictions in India, of a successful,
extended trial and development programme conducted by
Godrej with assistance from Eden.
Godrej Construction has developed several new,
standard ready-mix concrete mixes, each incorporating
EdenCrete®Pz, that have greater strength, lower
Greenhouse Gas footprints, and incorporate higher
proportions of cheaper, readily available Indian fly ash
(a waste by-product from Indian coal fired power plants),
and lower proportions of more expensive Ordinary
Portland Cement.
As Godrej rolls out these EdenCrete®Pz concrete mixes
across its various plants occurs, further, larger, repeat
orders are expected. The Godrej Group one of India’s most
respected and prestigious group of companies operating
in one of the largest, and fastest growing concrete
markets in the world, and this initial order from Godrej
represents the first international order (outside of USA) to
be received by Eden for an EdenCrete® product that is to
be used in commercial applications (as opposed to trials).
ISRAEL
During the year, Eden received its first small order from
Israel for EdenCrete® products for testing. To date no
further order has been received but communications with
the purchaser are still ongoing.
Indian OptiBlend® Sales during FY2021
This significant increase took the total Indian OptiBlend®
sales for the 2021 Financial Year to a very impressive total
of approximately AUD $1,033,000, a year on year increase
of an exceptional 508%.
The primary driver at present, being outside of the winter
months, is the significantly lower price of natural gas for
industrial and commercial customers averaging almost
Rs 40 (plus or minus Rs5) for the same quantity of energy
delivered by diesel fuel that would cost approximately Rs
90 (plus or minus Rs5). The secondary driver of this sales
growth is Government regulations aimed at reducing air
pollution.
In October 2020, the Environment Pollution (Prevention
and Control) Authority (EPCA), a body mandated by the
Indian Supreme Court, banned the use of non-essential
diesel generator sets, with effect from 15 October 2020,
in Delhi (the National Capital Territory), Ghaziabad,
Noida, Faridabad and Gurugram, that collectively comprise
the National Capital Region (NCR region) during the
winter period.
This ban supported similar policies to reduce the air
pollution that were earlier detailed in the National Clean
Air Programme (NCAP), which, to date, State governments
in Haryana, Maharashtra and Tamil Nadu have already
adopted and are considered likely to be adopted in further
States. NCAP approved the retrofitting of diesel-powered
generators for partial natural gas usage (i.e. using a fuel
mixture of diesel and natural gas), a cost-effective way to
convert a great number of existing diesel generator sets
across India to a partial natural gas operation, creating a
major opportunity for OptiBlend® dual fuel systems.
As a result of all these developments, it is considered
highly likely that these various decisions and regulations
will significantly extend the geographical footprint of the
Indian OptiBlend® market, as piped natural gas supplies
are progressively rolled out across India.
Eden India believes the growth in demand for its
OptiBlend® systems in India, that it has experienced over
the past year, is likely to continue for the longer term
and spread to other regions of India apart from greater
Delhi, as the rollout of natural gas pipelines extends to
new areas, driven by the compelling market drivers of the
far lower cost natural gas and the various Government
regulations and decisions.
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Annual Report 2021ASX Code: EDE OPTIBLEND®
Total OptiBlend® Sales During FY2021
Sales FY 2021
(A$000’s)
Sales FY 2020
(A$000’s)
USA
INDIA
Total
495*
1,033
1,528
759
170
929
% Change
-34%*
+508%
+65%
* US OptiBlend sales in the first 4 weeks of July 2021 were approx. A$1,061,005 (US$781,640)
US OptiBlend® Sales during FY2021
The US orders received during whole of FY 2021 decreased
by 34% on a year on year basis from A$754,000 to
A$495,000 (in part due to changes in the currency
exchange rates). However, this drop in US OptiBlend sales
during the year was very quickly reversed in early FY2022,
with the sales in the first 4 weeks of July already reaching
approx. A$1,061,005 (US$781,640), exceeding the total
annual US OptiBlend sales levels during each of FY2020
and FY2021. This is understood to have been largely driven
by the Texas power crisis in February 2021.
EdenPlast®
A Japanese plastics company commenced testing an
Eden prepared, concentrated EdenPlast® master batch
in which 38% by weight of Eden’s carbon nanotubes were
dispersed into the other company’s raw polymers. The
Japanese company is currently testing a range of diluted
CNT-enriched polymer samples containing a range of
concentrations of CNT between 0.5% and 3%
(see Figure 12).
The new project aims to develop a method to produce
novel drawn polymer fibres incorporating aligned carbon
nanotubes within the polymer. Such polymer fibres will
show significant directional strength and stiffness and
can themselves be used for reinforcing thermoplastics
to make high performance, “smart”, composites. There
will specifically be focus on recyclability of the CNT
reinforced fibres. This development could have significant
commercial and environmental benefits as existing
thermosetting composites are not readily recyclable and
require high levels (>30%) of reinforcing fibres.
The targeted outcomes of this project, if successful, will be
a novel technology for making high strength and stiffness
polymer fibres reinforced with Eden’s CNTs, expanding
their potential use in thermoplastic composites. These
new polymer fibres could also enable down-sizing of high-
volume products that may well be suitable for use in high
value automotive or aerospace products.
Hydrogen
During the year Eden was approached by several
companies exploring possible collaborations using Eden’s
hydrogen capabilities. Preliminary talks occurred but were
not progressed. However, Eden remains open to such
a collaboration, provided it will not compromise Eden’s
existing technologies or other operations.
.
Figure 12. Photograph of range of CNT-enriched polymer
samples prepared for testing
During the year the Australian Research Council (”ARC”)
awarded Eden and the University of Queensland (“UQ”)
a fifth consecutive ARC Linkage Research Grant worth
A$376,518, payable over three years, to help fund the
development of a new production method of carbon
nanotube (“CNT”) enriched thermoplastic composites.
Eden and UQ will each also contribute to the total cost of
the project.
11
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE DIRECTORS’ REPORT
Your directors present their report on the Company and its
controlled entities (the Group) for the financial year ended
30 June 2021.
Directors
The names of directors in office at any time during or since
the end of the year are:
Financial Position
The net assets of the consolidated group have increased
from $15,732,512 at 30 June 2020 to $18,140,732
at 30 June 2021. The group’s working capital, being
current assets less current liabilities, has decreased
from a surplus of $709,646 at 30 June 2020 to a deficit of
$1,085,283 at 30 June 2021.
Gregory H Solomon
Stephen D Dunmead
Douglas H Solomon
Lazaros Nikeas
Directors have been in office since the start of the
financial year to the date of this report.
Company Secretary
The following person held the position of company
secretary during and at the end of the financial year:
Mr Aaron P Gates has worked for Eden Innovations Ltd
for the past 13 years. He is a Chartered Accountant and
Chartered Secretary. He has completed a Bachelor of
Commerce (Curtin University) with majors in accounting
and business law and completed a Diploma of Corporate
Governance. Prior to joining Eden he worked in public
practice in audit and corporate finance roles.
Principal Activities
Eden Innovations Ltd produces and sells a high
performance concrete admixture, EdenCrete® and retrofit
dual fuel technology, OptiBlend®, developed for diesel
generator sets.
There were no significant changes in the nature of the
consolidated group’s principal activities during the
financial year.
Significant Changes in State of Affairs
There have been no significant changes in the state of
affairs that occurred during the financial year.
After Balance Date Events
On 30 July 2021 2,753,148 fully paid ordinary shares were
issued to Mr Stephen Dunmead and Mr Lazaros Nikeas
pursuant to resolutions passed at the general meeting
held on 2 July 2019.
On 23 August 2021 Eden announced a non-renounceable
pro-rata rights issue to raise up to $3.8 million by the
issue of shares at $0.022 together with one (1) free
attaching Eden option for every two shares issued under
the Offer (each to acquire one fully paid ordinary Eden
share at an exercise price of $0.05 per share at any time
up to and including 7 October 2024.
No other matters or circumstances have arisen since the
end of the financial year which significantly affected or
may significantly affect the operations of the Group, the
results of those operations, or the state of affairs of the
Group in future financial years.
Future Developments, Prospects and Business
Strategies
The Group proposes to continue developing and marketing
its technologies, including EdenCrete® and OptiBlend® as
detailed in the Review of Operations.
Operating Results
The consolidated loss of the Group after providing for
income tax amounted to $5,758,759 (2020: $9,105,991).
Environmental Issues
The Group is subject to environmental regulation and
complies fully with all requirements.
Dividends Paid or Recommended
No dividends were paid or declared for payment during
the year.
Review of Operations
A review of the operations of the Group during the year
ended 30 June 2021 is set out in the Review of Operations
on Page 5.
12
Annual Report 2021ASX Code: EDE
Information on Directors
Gregory H Solomon
Qualifications
Experience
Executive Chairman
LLB
Appointed Executive Chairman in 2004. A qualified lawyer with more than
30 years’ Australian and international experience in a wide range of areas
including commercial negotiation and corporate law. Following 15 years’
experience as a director on a number of ASX listed companies, for the
past 15 years in his role as Executive Chairman he has been responsible
for initiating and managing the entire business development of all
companies in the Group since its incorporation.
Interest in Shares and Options
45,369,342 Ordinary Shares (as at 29 September 2021)
Directorships held in other listed entities
Tasman Resources Limited (ASX:TAS)
Conico Limited (ASX:CNJ)
Douglas H Solomon
Qualifications
Experience
Non-Executive Director
BJuris LLB (Hons)
Board member since May 2004. A Barrister and Solicitor with more than
30 years’ experience in the areas of mining, corporate, commercial and
property law. He is a partner in the legal firm, Solomon Brothers.
Interest in Shares and Options
38,945,878 Ordinary Shares (as at 29 September 2021)
Directorships held in other listed entities
Tasman Resources Limited (ASX:TAS)
Conico Limited (ASX:CNJ)
Lazaros Nikeas
Qualifications
Experience
Non-Executive Director
B.A.
Board member since May 2018. Mr Nikeas is an experienced
investment and private equity professional with over 17 years of US
finance experience. Mr Nikeas is currently a Principal investment manager
for Weston Energy LLC, a portfolio company of New York private equity
group, Yorktown Partners LLC. Prior to this, he was Lead Partner and
Principal of Traxys Capital Partners, a private equity vehicle focused on
mining, chemicals and industrial investments in partnership with
The Carlyle Group.
Before moving into private equity, he served as the Head of Corporate
Finance Advisory for Materials, Mining and Chemicals for North America
for BNP Paribas for five years. Other investment banking roles included
Partner in Mergers & Acquisitions Advisory at Hill Street Capital for eight
years and as a Corporate Finance Analyst at Morgan Stanley, where he
began his career. Altogether, he has advised on over US$25 billion of
mergers and acquisitions transactions.
Interest in Shares and Options
4,297,334 Ordinary Shares (as at 29 September 2021)
Directorships held in other listed entities
-
13
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
DIRECTORS’ REPORT (Continued)
Stephen D Dunmead
Qualifications
Experience
Non-Executive Director
B.Sc., M.Sc., Ph.D.
Board member since May 2018. Based in the US, Dr Dunmead is a global
business executive with over 30 years of strong operational leadership
experience in the US based global materials industry. He served as Chief
Operating Officer at SWM International (NYSE: SWM) in Georgia where
he was responsible for over 3,000 employees across 20 sites of the
company’s global operations in North and South America, Europe and
Asia, accounting for US$0.8 billion of revenue and US$180 million in
EBITDA. At SWM International he led the business into the high growth
and high margin filtration and medical sectors.
Prior to SWM International, Dr Dunmead spent over 15 years at OM Group
(NYSE: OMG) in Ohio where he was a member of the Corporate Executive
Team and had responsibility for six businesses with more than 6,500
employees across 32 sites in North America, Europe, Asia and Africa.
Together, these businesses represented US$1.5 billion in revenue and
US$255 million in EBITDA. Dr Dunmead holds 25 US Patents on Advanced
Materials and Specialty Chemicals.
Interest in Shares and Options
5,297,334 Ordinary Shares (as at 29 September 2021)
Directorships held in other listed entities
-
valued using the Black-Scholes methodology. The Group
does not have a policy on directors hedging their shares.
The maximum aggregate amount of fees that can be
paid to non-executive directors is subject to approval
by shareholders at the Annual General Meeting. Fees for
non-executive directors are not linked to the performance
of the consolidated Group. However, to align directors’
interests with shareholder interests, the directors are
encouraged to hold shares in the Company.
Key Management Personnel Remuneration Policy
The Board’s policy for determining the nature and
amount of remuneration of management for the Group
is as follows:
The remuneration structure for key management
personnel is based on a number of factors, including
length of service, particular experience of the individual
concerned, and overall performance of the Company.
The contracts for service between the Company and
key management personnel are on a continuing basis,
the terms of which are not expected to change in the
immediate future. Upon retirement key management
personnel are paid employee benefit entitlements accrued
to date of retirement. Any ESOP options not exercised
before or on the date of termination lapse.
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration
for each director of Eden Innovations Ltd, and for the
executives receiving the highest remuneration.
Remuneration policy
The remuneration policy of Eden Innovations Ltd has been
designed to align director and executive objectives with
shareholder and business objectives by providing a fixed
remuneration component and offering specific long-term
incentives based on key performance areas affecting the
consolidated Group’s financial results. The board of Eden
Innovations Ltd believes the remuneration policy to be
appropriate and effective in its ability to attract and retain
the best executives and directors to run and manage the
consolidated Group, as well as create goal congruence
between directors, executives and shareholders.
The board’s policy for determining the nature and amount
of remuneration for board members and senior executives
of the economic entity is as follows:
◊ Executives receive a base salary (which is based on
factors such as length of service and experience),
superannuation (401k match), fringe benefits and share
performance rights.
Executives are also entitled to participate in the employee
share and option arrangements.
All remuneration paid to directors and executives is valued
at the cost to the Company and expensed. Options are
14
Annual Report 2021ASX Code: EDE
Names and positions held of economic and parent entity
key management personnel in office at any time during
the financial year are:
Key Management Person
Gregory H Solomon
Position
Executive Chairman
Douglas H Solomon
Non-Executive Director
Lazaros Nikeas
Non-Executive Director
Stephen D Dunmead
Non-Executive Director
Don Grantham Jr
Roger Marmaro
Aaron P Gates
President & CEO - Eden
Innovations LLC
President – Sales –
Eden Innovations LLC
(left November 2020)
Company Secretary /
Chief Financial Officer
Meetings of Directors
During the financial year, 7 meetings of directors were
held. Attendances by each director during the year were as
follows:
Number
eligible to
attend
Number
attended
Gregory H Solomon
Douglas H Solomon
Lazaros Nikeas
Stephen D Dunmead
7
7
7
7
7
7
7
7
15
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
DIRECTORS’ REPORT (Continued)
Key Management
Key Management
Person
Short-term Benefits
Post-
Employment
Benefits
Other
Long Term
Benefits
Termination
Benefits
Share- based
Payments
Total
Salary and
Fees
Non-cash
benefit
Other
Super-
annuation
Other
Other
Equity
Options
Performance
Rights
$
$
$
$
$
$
$
$
$
$
2021
Gregory Solomon
300,000
Douglas Solomon
Lazaros Nikeas
Stephen
Dunmead(a)
54,000
54,000
54,000
-
-
-
-
Don Grantham Jr(c)
401,736
20,677
Roger Marmaro(d)
171,866
7,737
Aaron Gates
(b)
-
1,035,602
28,414
2020
Gregory Solomon
281,250
Douglas Solomon
Lazaros Nikeas
Stephen
Dunmead(a)
50,625
50,625
176,197
-
-
-
-
Don Grantham Jr(c)
400,112
Roger Marmaro(d)
499,305
Aaron Gates
(b)
22,306
26,272
-
1,458,114
48,578
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28,500
5,130
-
-
21,607
10,312
-
65,549
7,125
1,283
-
-
23,782
19,921
-
52,111
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,000
32,000
167,216
-
-
231,216
-
-
32,000
32,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
328,500
59,130
86,000
86,000
611,236
189,915
1,353
1,353
1,353
1,362,134
-
-
-
-
288,375
51,908
82,625
208,197
-
-
-
27,423
62,968
33,536
507,159
43,610
652,076
944
17,222
18,166
64,000
91,335
94,368
1,808,506
Other transactions with key management personnel
Management fees of $300,000 were paid and $25,000
was payable at reporting date to Princebrook Pty Ltd, a
company in which Mr GH Solomon and Mr DH Solomon
have an interest.
Legal fees of $39,210, based on normal market rates, were
paid to Solomon Brothers, a firm in which Mr GH Solomon
and Mr DH Solomon are partners.
◊ (a) Mr Stephen Dunmead provided short-term consulting
services to the Group during the period.
◊ (b) This officer is provided by Princebrook Pty Ltd (a company
in which Mr Gregory Solomon and Mr Douglas Solomon have
an interest) under the Management Services Agreement with
the Company. The Management Services Agreement may
be terminated by giving not less than three months’ written
notice. During the year the Company paid $300,000 (2020:
$281,250) to Princebrook Pty Ltd for management services.
◊ (c) The appointment of Don Grantham Jr may be terminated
by giving not less than three months’ written notice. Don
Grantham Jr. was appointed as President & CEO - Eden
Innovations LLC during the year, this table includes all
remuneration paid during the year to Don Grantham Jr.
◊ (d) Roger Marmaro left employment at Eden in
November 2020.
16
Annual Report 2021ASX Code: EDE
Number of Options Held by Key Management Personnel
Balance
30.6.2020
Granted as
Compen-
sation
Options
Exercised
Net Change
Other*
Balance
30.6.2021
Total Vested
30.6.2021
Total
Exercisable
30.6.2021
Total Unexer-
cisable
30.6.2021
Gregory Solomon
2,037,244
Douglas Solomon
1,756,633
Lazaros Nikeas
Stephen Dunmead
-
-
Don Grantham Jr
1,000,000
Roger Marmaro
Aaron Gates
-
8,750
Total
4,802,627
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,037,244)
(1,756,633)
-
-
-
-
(8,750)
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
1,000,000
-
-
-
-
-
-
(3,802,627)
1,000,000
1,000,000
1,000,000
-
-
-
-
-
-
-
-
* Net Change Other refers to options that have been purchased, sold, lapsed or issued during the year.
Number of Performance Rights held by Key Management Personnel
Balance 30.6.2020
Received as
Compensation
Lapsed
Cancelled
Balance 30.6.2021
Gregory Solomon
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead
Don Grantham Jr
Roger Marmaro
Aaron Gates
Total
-
-
-
-
3,000,000
3,500,001
1,200,000
7,700,001
-
-
-
-
-
-
1,800,000
1,800,000
-
-
-
-
-
(3,500,001)
-
(3,500,001)
-
-
-
-
(3,000,000)
-
(1,200,000)
(4,200,000)
-
-
-
-
-
-
1,800,000
1,800,000
Number of Shares held by Key Management Personnel
Balance 30.6.2020
Received as
Compensation
Options Exercised
Net Change Other*
Balance 30.6.2021
Gregory Solomon
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead
Don Grantham Jr
Roger Marmaro
Aaron Gates
45,369,342
38,945,878
1,817,312
2,817,312
-
2,478,648
192,500
-
-
1,103,448
1,103,448
5,000,000
-
-
Total
91,620,992
7,206,896
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45,369,342
38,945,878
2,920,760
3,920,760
5,000,000
2,478,648
192,500
98,827,888
* Net Change Other refers to shares purchased or sold during the financial year.
17
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
DIRECTORS’ REPORT (Continued)
Unissued shares under options
At the date of this report, the unissued ordinary shares of Eden Innovations Ltd under option are as follows:
Issue Date
9 June 2021
9 June 2021
Various
20 December 2019
2 December 2020
Date of Expiry
1 June 2022
1 June 2022
11 December 2022
19 December 2022
1 December 2023
Exercise Price
Number under Option
$0.07
$0.08
$0.05
$0.065
$0.04379
6,000,000
6,000,000
49,543,744
1,000,000
6,850,762
69,394,506
No person entitled to exercise the option has any right by virtue of the option to participate in any share issue of any other
body corporate.
At the date of this report unissued shares of the Group under performance rights are 27,304,014 (2020: 26,391,012].
Rounding of amounts
Eden Innovations Ltd is a type of Company referred to
in ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191 and therefore the amounts
contained in this report and in the financial report have
been rounded to the nearest $1.
Signed in accordance with a resolution of the
Board of Directors.
__________________________________
Gregory H Solomon
Executive Chairman
Dated this 29th day of September 2021
Indemnifying Officers
The Company has arranged for an insurance policy to
insure the directors against liabilities for costs and
expenses incurred by them in defending any legal
proceedings arising out of their conduct while acting
in the capacity of director of the Company, other than
conduct involving a wilful breach of duty in relation to the
Company. The total premium payable was approximately
$121,852.
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.
Non-audit Services
No fees for non-audit services were paid or are payable to
the external auditors during the year ended 30 June 2021.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year
ended 30 June 2021 has been received and can be found
on page 19.
18
Annual Report 2021ASX Code: EDE Lead auditor’s independence declaration under section 307C of the
Corporations Act 2001
To the directors of Eden Innovations Ltd
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial
year ended 30 June 2021 there have been:
(i) no contraventions of the auditor’s independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the
audit.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen|Director
Perth
29 September 2021
19
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2021
Revenue
Other income
Changes in inventories
Raw materials and consumables used
Depreciation and amortisation expense
Employee benefits expense
Finance costs
Legal and consultants
Management fees
Other financial items
Other expenses
Travel and accommodation
Loss before income tax
Income tax (expense)/benefit
Loss for the year
Other Comprehensive Income / (Loss)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation reserve
Income tax relating to comprehensive income
Total Other Comprehensive Income / (Loss), net of tax
Total Comprehensive Income / (Loss) attributable to
members of the parent
Note
Consolidated Group
2021
$
2020
$
2
3,282,822
2,427,105
7,380
1,211,995
(2,159,214)
4,034
(54,646)
(504,926)
(1,278,892)
(1,290,148)
3a
(4,156,472)
(5,482,160)
4
7
(747,810)
(614,303)
(300,000)
105,115
(477,371)
(948,088)
(281,250)
19,409
(946,245)
(2,199,101)
(163,135)
(346,640)
(5,758,759)
(9,133,782)
-
27,791
(5,758,759)
(9,105,991)
(890,420)
482,298
-
-
(890,420)
482,298
(6,649,179)
(8,623,693)
Basic/Diluted loss per share (cents per share)
6
(0.2912)
(0.5316)
The accompanying notes form part of these financial statements.
20
Annual Report 2021ASX Code: EDE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing liabilities
Other liabilities
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing liabilities
Other liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
Note
Consolidated Group
2021
$
2020
$
9
10
11
12
13
14
15
14
16
20
2,175,637
1,388,683
568,709
1,840,582
163,083
396,366
701,781
98,084
4,748,011
2,584,914
10,607,478
11,999,422
9,123,044
8,223,113
19,730,522
20,222,535
24,478,533
22,807,449
755,188
4,771,126
135,639
171,341
781,774
816,566
96,615
180,313
5,833,294
1,875,268
486,143
18,364
504,507
6,337,801
5,181,439
18,230
5,199,669
7,074,937
18,140,732
15,732,512
114,736,287
105,503,776
8,819,894
9,885,426
(105,415,449)
(99,656,690)
18,140,732
15,732,512
21
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR
YEAR ENDED 30 JUNE 2021
Fully Paid
Ordinary
Shares
Share based
payment
Reserve
Consolidated Group
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Accumulated
Losses
Total
Balance at 30 June 2019
Shares issued during the year, net of
issue costs
Share based payments during the year
Loss for year
Other comprehensive income
Total comprehensive income/(loss)
Balance at 30 June 2020
Shares issued during the year, net of
issue costs
Share based payments during the year
Loss for year
Other comprehensive income
Total comprehensive income/(loss)
Balance at 30 June 2021
102,636,700
8,134,763
818,970 (90,550,699)
21,039,734
2,867,076
-
-
-
-
-
449,395
-
-
-
-
-
-
-
-
2,867,076
449,395
(9,105,991)
(9,105,991)
482,298
-
482,298
482,298
(9,105,991)
(8,623,693)
105,503,776
8,584,158
1,301,268 (99,656,690)
15,732,512
9,232,511
-
-
-
-
-
(175,112)
-
-
-
-
-
-
-
-
9,232,511
(175,112)
(5,758,759)
(5,758,759)
(890,420)
-
(890,420)
(890,420)
(5,758,759)
(6,649,179)
114,736,287
8,409,046
410,848 (105,415,449)
18,140,732
The accompanying notes form part of these financial statements.
22
Annual Report 2021ASX Code: EDE
CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Income taxes (paid)/received
Interest paid
Interest received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Payment for research and development
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares, net of issue costs
Proceeds from borrowings, net of borrowing costs
Repayment of borrowings
Net cash provided by financing activities
Net increase/(decrease) in cash held
Net increase/(decrease) due to foreign exchange movements
Cash at beginning of financial year
Cash at end of financial year
The accompanying notes form part of these financial statements.
Note
Consolidated Group
2020
$
2021
$
18
11
12
3,184,141
2,441,797
(8,293,187)
(9,729,590)
-
27,791
(444,289)
(119,376)
5,808
3,688
(5,547,527)
(7,375,690)
(459,981)
(97,120)
(1,449,268)
(2,180,633)
(1,909,249)
(2,277,753)
8,823,011
2,843,473
-
8,125,557
(372,555)
(3,122,254)
8,450,456
7,846,776
993,680
(1,806,667)
(206,726)
(22,205)
1,388,683
3,217,555
9
2,175,637
1,388,683
23
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
cast significant doubt about the Group’s ability to continue
as a going concern.
The continuing applicability of the going concern basis
of accounting is dependent upon the Group’s ability to
source additional finance. Unless additional finance is
received the Group may need to realise assets and settle
liabilities other than in the normal course of business and
at amounts which could differ from the amounts at which
they are stated in these financial statements.
Accounting Policies
a. Principles of Consolidation
A controlled entity is any entity Eden Innovations Ltd is
exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities of
the entity. A list of controlled entities is contained in Note
21 to the financial statements. All controlled entities have
a June year-end.
All inter-company balances and transactions between
entities in the consolidated group, including any
unrealised profits or losses, have been eliminated on
consolidation. Accounting policies of subsidiaries have
been changed where necessary to ensure consistencies
with those policies applied by the parent entity.
b. Income Tax
The charge for current income tax expense is based on
the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using the tax rates that
have been enacted or are substantially enacted by the
balance sheet date.
Deferred tax is accounted for using the balance sheet
liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit
or loss. Deferred income tax assets are recognised to the
extent that it is probable that future tax profits will be
available against which deductible temporary differences
can be utilised.
The financial report is a general purpose financial
report that has been prepared in accordance with
Australian Accounting Standards, other authoritative
pronouncements of the Australian Accounting Standards
Board and the Corporations Act 2001. The financial
report complies with all International Financial Reporting
Standards (IFRS) issued by the International Accounting
Standards Board in their entirety.
The financial report covers the consolidated Group of
Eden Innovations Ltd and its controlled entities as at and
for the year ended 30 June 2021. Eden Innovations Ltd
is a listed public company, incorporated and domiciled in
Australia. The Group is a for-profit entity and primarily is
involved in clean technology solutions.
The financial report was authorised for issue on 29
September 2021 by the Board of Directors.
The following is a summary of the material accounting
policies adopted by the consolidated Group in the
preparation of the financial report. The accounting policies
have been consistently applied, unless otherwise stated.
Basis of Preparation
The accounting policies set out below have been
consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals
basis and is based on historical costs modified by the
revaluation of selected non-current assets, financial
assets and financial liabilities for which the fair value
basis of accounting has been applied. These consolidated
financial statements are presented in Australian dollars,
which is the parent’s functional currency. The subsidiaries’
functional currencies are USD and INR.
Going Concern
These financial statements have been prepared on a going
concern basis, which contemplates continuity of normal
business activities and the realisation of assets and
extinguishment of liabilities in the ordinary course
of business.
The Group has reported a net loss for the year of
$5,798,759 (2020: $9,105,991), a cash outflow from
operating activities of $5,547,527 (2020: $7,375,690)
and a net working capital deficit of $1,085,283 (2020:
surplus of $709,646). The directors are confident that the
Group, subject to being able to raise further capital or debt
funding, will be able to continue its operations as a going
concern. Without such capital and or funding, the net loss
for the year and the cash outflow from operating activities
indicate the existence of a material uncertainty which may
24
Annual Report 2021ASX Code: EDE Eden Innovations Ltd, Eden Innovations Holdings Pty
Ltd and Eden Energy Holdings Pty Ltd, its wholly-owned
Australian subsidiaries, have formed an income tax
consolidated group under the tax consolidation regime.
The Group notified the Australian Tax Office that it had
formed an income tax consolidated group to apply from
1 July 2005. The tax consolidated group has entered a tax
sharing agreement whereby each company in the group
contributes to the income tax payable in proportion to
their contribution to the net profit before tax of the tax
consolidated group. The R&D tax rebate is recognised as
income tax benefit upon receipt.
c. Inventories
Inventories are measured at the lower of cost and net
realisable value. The cost of manufactured products
includes direct materials, direct labour and an appropriate
portion of variable and fixed overheads. Costs are
assigned on the basis of first-in, first-out.
d. Segment reporting
Segment results that are reported to the Group’s board
of directors (the chief operating decision maker) include
items directly attributable to a segment as well as those
that can be allocated on a reasonable basis.
e. Employee Benefits
Provision is made for the Company’s liability for employee
benefits arising from services rendered by employees
to balance date. Employee benefits that are expected to
be settled within one year have been measured at the
amounts expected to be paid when the liability is settled,
plus related on-costs.
f. Revenue
Revenue is recognised when or as the Group transfers
control of products or provides services to a customer at
the amount to which the Group expects to be entitled as
the performance obligation is met. If the consideration
includes a variable component, the expected
consideration is adjusted for the estimated impact of
the variable component at the point of recognition and
re-estimated at every reporting period. Interest revenue is
recognised on a proportional basis taking into account the
interest rates applicable to the financial assets.
g. Property, Plant and Equipment
Each class of property, plant and equipment is carried at
cost less, where applicable, any accumulated depreciation
and impairment losses.
Property, plant and equipment are initially recognised
at acquisition cost or manufacturing cost, including any
costs directly attributable to bringing the assets to the
location and condition necessary for it to be capable
of operating in the manner intended by the Group’s
management.
The carrying amount of property, plant and equipment
is reviewed annually by directors to ensure it is not
in excess of the recoverable amount of these assets.
The recoverable amount is assessed on the basis of
the expected net cash flows that will be received from
the asset’s employment and subsequent disposal. The
expected net cash flows have been discounted to their
present values in determining recoverable amounts.
The depreciation rates used for each class of depreciable
assets are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
6 – 33% straight line
Buildings
Land
4% straight line
Nil
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
gains and losses are included in the statement of profit
or loss and other comprehensive income. When revalued
assets are sold, amounts included in the revaluation
reserve relating to that asset are transferred to retained
earnings.
h. Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised
when the entity becomes a party to the contractual
provisions of the financial instrument. Financial assets
are initially measured at fair value adjusted for transaction
costs.
Classification and subsequent measurement
For the purpose of subsequent measurement, financial
assets are classified into the following categories:
◊ amortised cost
◊ fair value through profit or loss (FVTPL)
◊ equity instruments at fair value through other
comprehensive income (FVOCI)
◊ debt instruments at fair value through other
comprehensive income (FVOCI).
All income and expenses relating to financial assets
that are recognised in profit or loss are presented within
finance costs, finance income or other financial items.
The classification is determined by both the entity’s
business model for managing the financial asset and
the contractual cash flow characteristics of the financial
asset.
25
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
Financial assets are measured at amortised cost if
the assets meet the following conditions (and are not
designated as FVTPL):
◊ they are held within a business model whose objective
is to hold the financial assets to collect its contractual
cash flows
◊ the contractual terms of the financial assets give rise
to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
After initial recognition, these are measured at a mortised
cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The
entity’s cash and cash equivalents, trade and most other
receivables fall into this category of financial instruments.
Trade and other receivables
The entity makes use of a simplified approach in
accounting for trade and other receivables and records
the loss allowance as lifetime expected credit losses.
These are the expected shortfalls in contractual cash flows,
considering the potential for default at any point during
the life of the financial instrument. In calculating, the
entity uses its historical experience, external indicators
and forward-looking information to calculate the expected
credit losses.
Classification and measurement of financial
liabilities
The entity’s financial liabilities include trade and other
payables and borrowings. Financial liabilities are initially
measured at fair value, and, where applicable, adjusted for
transaction costs.
Subsequently, financial liabilities are measured at
amortised cost using the effective interest method. All
interest-related charges and, if applicable, changes in an
instrument’s fair value that are reported in profit or loss
are included within finance costs or finance income.
Derecognition
Financial assets are derecognised when the contractual
rights to the cash flows from the financial asset expire, or
when the financial asset and substantially all the risks and
rewards are transferred.
A financial liability is derecognised when it is extinguished,
discharged, cancelled or expires.
Impairment
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair
value through profit or loss.
i. Impairment of Assets
At each reporting date, the Group reviews the carrying
values of its tangible and intangible assets to determine
whether there is any indication that those assets have
been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, is compared
to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to
the statement of profit or loss and other comprehensive
income.
Impairment testing is performed annually for goodwill and
intangible assets with indefinite lives.
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.
j. Intangibles
Research and development
Expenditure during the research phase of a project is
recognised as an expense when incurred. Development
costs are capitalised only when technical feasibility
studies identify that the project will deliver future
economic benefits and these benefits can be measured
reliably.
Development costs have a finite life and are amortised
on a systematic basis matched to the future economic
benefits over the useful life of the project.
Intellectual Property
Intellectual property, which includes trademarks and
engineering knowledge, is included in the financial
statements at cost.
Intellectual property and trademarks are only amortised
or written down where the useful lives are limited or
impaired by specific circumstances, in such cases
amortisation is charged on a straight line basis over
their useful lives and write downs are charged fully when
incurred. The directors have assessed the useful life
of the intellectual property and have determined that it
has a finite useful life of 10 to 20 years. The intellectual
property is amortised on a systematic basis matched to
the expected future economic benefits over the useful life
of the project.
26
Annual Report 2021ASX Code: EDE k. Foreign Currency Transactions and Balances
m. Comparative Figures
Functional and presentation currency
The functional currency of each of the group’s entities
is measured using the currency of the primary
economic environment in which that entity operates.
The consolidated financial statements are presented in
Australian dollars which is the parent entity’s functional
and presentation currency.
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 the statement of profit
or loss and other comprehensive income.
Group companies
The financial results and position of foreign operations
whose functional currency is different from the Group’s
presentation currency are translated as follows:
◊ assets and liabilities are translated at year-end
exchange rates prevailing at that reporting date;
◊ income and expenses are translated at average
exchange rates for the financial year; and
◊ retained earnings are translated at the exchange
rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign
operations are transferred directly to the Group’s foreign
currency translation reserve in the balance sheet. These
differences are recognised in the statement of profit or
loss and other comprehensive income in the period in
which the operation is disposed. Intercompany loans are
treated as investments for foreign currency translation
purposes.
l. Equity-settled compensation
The Group operates an employee share option plan and
performance rights plan. The total amount to be expensed
over the vesting period is determined by reference to the
fair value of the options or performance rights granted.
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
n. Ordinary shares
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares are
recognised as a deduction from equity.
o. New accounting standards and interpretations
New and amended standards adopted by the Group
The Group has adopted all of the new and revised
Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant
to its operations and effective for the current year. The
new and revised Standards and amendments thereof and
Interpretations do not have any material impact on the
disclosures or on the amounts recognised in the Group’s
condensed consolidated financial statements.
Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments
incorporated into the financial report based on historical
knowledge and best available current information.
Estimates assume a reasonable expectation of future
events and are based on current trends and economic
data, obtained both externally and within the Group.
Key Estimates — Impairment
The Group assesses impairment of finite intangible assets
and property, plant & equipment at each reporting date
by evaluating conditions specific to the Group that may
lead to impairment of assets. At the date of this report
the Group has sufficient reason to believe that the Group’s
intangible assets and property, plant & equipment are not
impaired.
There is a significant risk of actual outcomes being
different from those forecasted due to changes in
economic or market conditions and events.
Key Estimates — Share-based payment
transactions
The consolidated entity measures the cost of equity
settled transactions with suppliers and employees by
reference to the fair value of the equity instruments as
at the date at which they are granted. The fair value is
determined using a Black-Scholes model. Refer to Note
3b for the inputs to the Black-Scholes model.
27
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 2: REVENUE
Operating activities
-
-
EdenCrete® sales
OptiBlend® sales and services
Total revenue
NOTE 3: EMPLOYEE BENEFITS
a. Employee benefits expense
Expenses recognised for employee benefits are analysed below:
Short-term employee benefits
Post-employment benefits
Share based payments
Total
b. Share-based Employee Remuneration
2021
$
2020
$
1,754,921
1,527,901
3,282,822
1,498,121
928,984
2,427,105
2021
$
2020
$
(4,034,107)
(4,813,068)
(200,385)
78,020
(219,157)
(449, 935)
(4,156,472)
(5,482,160)
Included under employee benefits expense in the statement of profit or loss and other comprehensive income is
$78,020 (2020: ($449,395)) which relates, in full, to equity settled share-based payment transactions. Nil relates to
options (2020: $111,910), $231,216 relates to shares (2020: $64,000) and ($309,236) relates to performance rights
(2020: $337,485).
Options
All options granted to personnel are over ordinary shares in Eden Innovations Ltd, which confer a right of one ordinary
share for every option held. When issued, the shares carry full dividend and voting rights.
2021
2020
Number of Options
Weighted Average
Exercise Price
$
Number of Options
Weighted Average
Exercise Price
$
1,330,000
0.111
29,859,422
-
-
(330,000)
1,000,000
1,000,000
-
-
0.25
0.065
0.065
1,000,000
-
(29,529,422)
1,330,000
1,220,000
0.226
0.065
-
0.259
0.111
0.098
Outstanding at the
beginning of the year
Granted
Exercised
Cancelled/lapsed
Outstanding at year-end
Exercisable at year-end
The options outstanding at 30 June 2021 had a weighted average exercise price of $0.065 and a weighted average
remaining contractual life of 1.5 years. No options were exercised during the year ended 30 June 2021.
Historical volatility has been the basis used for determining expected share price volatility as it is assumed that this is
indicative of future tender, which may not eventuate. Volatility of 82-109% and a risk free rate of 0.88-2.24% were used in
the Black-Scholes models. The life of the options is based on the historical exercise patterns, which may not eventuate in
the future.
28
Annual Report 2021ASX Code: EDE
Performance rights
During the year, 19,481,010 performance rights were cancelled and 27,304,014 new performance rights were issued. Each
grant comprised 3 classes. Class A vests upon commercial revenue reaching US$6 million over a rolling 12 month period
before 31 August 2022, Class B vests upon commercial revenue reaching US$12 million over a rolling 12 month period
before 31 August 2023 and Class C vests upon commercial revenue reaching US$24 million over a rolling 12 month period
before 31 August 2024. The value of each right is based on the share price on the date of grant, for the new performance
rights this was $0.024.
Number of Performance Rights
Weighted Average
Exercise Price
$
Outstanding at the beginning of the year
Cancelled
Granted
Exercised or Lapsed
Outstanding at year-end
NOTE 4: OTHER FINANCIAL ITEMS
Foreign exchange gain / (loss)
Impairment expense
Total
NOTE 5: AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
— auditing or reviewing the financial report
— other services
Remuneration of other auditors of subsidiaries for:
— auditing or reviewing the financial report
— other services
NOTE 6: EARNINGS PER SHARE (EPS)
Basic/ Diluted loss per share (cents per shares)
a.
Reconciliation of earnings to profit or loss
Profit/(loss)
Earnings used to calculate basic EPS
26,391,012
(19,481,010)
27,304,014
(6,910,002)
27,304,014
-
-
26,391,012
-
26,391,012
2020
$
29,013
(9,604)
19,409
2020
$
40,296
-
64,911
-
2021
$
105,115
-
105,115
2021
$
32,294
-
73,183
-
(0.2912)
(0.5316)
(5,758,759)
(9,105,991)
(5,758,759)
(9,105,991)
b.
Weighted average number of ordinary shares outstanding during the year
used in calculating basic EPS
1,977,324,724
1,712,911,601
The options on issue are not potentially dilutive shares.
29
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 7: INCOME TAX BENEFIT
a.
The prima facie tax on loss from ordinary activities before income tax is
reconciled to the income tax as follows:
Prima facie tax payable on loss from ordinary activities before income
tax at 26% (2020: 27.5%)
Add tax effect of:
—
—
Non-deductible expenses
Current year tax losses not recognised
Less tax effect of:
—
—
Difference in overseas tax rates
Current year temporary differences not recognised
Income tax expense/(benefit)
b.
Components of deferred tax
—
—
—
—
—
—
Unrecognised deferred tax asset – losses
Property, Plant & Equipment
Capital raising costs
Stock compensation
Provisions and accruals
Intangibles
Total unrecognised deferred tax asset
2021
$
2020
$
(1,497,277)
(2,504,148)
41,056
1,252,411
8,592
(48,905)
250,097
(46,287)
-
374,410
2,142,260
(27,791)
28,354,679
28,789,044
(1,128,637)
(1,283,487)
159,666
453,228
61,146
170,955
559,544
48,460
(2,371,991)
(2,710,138)
25,528,091
25,574,378
Deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will
be available against which deductible temporary differences and tax losses can be utilised. The benefit of the tax losses
will only be obtained if the Group complies with conditions imposed by the relevant tax legislation.
NOTE 8: RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated. Full details of key management personnel remuneration can be found in
the remuneration report on page 14.
Key Management Personnel
Management fees paid/payable to Princebrook Pty Ltd, a company in which
Mr GH Solomon and Mr DH Solomon have an interest. At year end $25,000 was payable
(2020: $18,750)
Legal fees paid to Solomon Brothers, a firm in which Mr GH Solomon and
Mr DH Solomon are partners. At year end, $833 was payable (2020: $Nil)
Unsecured interest free loan from Noble Energy Pty Ltd, a Company in which
Mr GH Solomon and Mr DH Solomon are directors.
2021
$
2020
$
300,000
281,250
39,210
23,581
-
200,000
30
Annual Report 2021ASX Code: EDE NOTE 9: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is
reconciled to the consolidated statement of financial position as follows:
Cash and cash equivalents
NOTE 10: INVENTORIES
At cost
2021
$
2,175,637
2,175,637
2020
$
1,388,683
1,388,683
2,175,637
2,175,637
1,388,683
1,388,683
2021
$
1,840,582
1,840,582
2020
$
701,781
701,781
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Land and buildings
Plant and equipment
$
$
Total
$
Cost
Balance 1 July 2020
Additions
Disposals
Net exchange differences
Balance 30 June 2021
Depreciation and impairment
Balance 1 July 2020
Depreciation
Disposals
Net exchange differences
Balance 30 June 2021
Carrying amount at 30 June 2021
6,913,717
213,955
-
(590,262)
6,537,410
(693,500)
(209,227)
-
60,467
(842,260)
5,695,150
7,892,250
241,808
(148,052)
(672,742)
7,313,264
(2,113,045)
(574,093)
106,599
179,603
(2,400,936)
4,912,328
14,805,967
455,763
(148,052)
(1,263,004)
13,850,674
(2,806,545)
(783,320)
106,599
240,070
(3,243,196)
10,607,478
31
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 11: PROPERTY, PLANT AND EQUIPMENT CONTINUED
30 June 2020
Cost
Balance 1 July 2019
Additions
Net exchange differences
Balance 30 June 2020
Depreciation and impairment
Balance 1 July 2019
Depreciation
Net exchange differences
Balance 30 June 2020
Carrying amount at 30 June 2020
Land and
buildings
$
Plant and
equipment
$
Total
$
6,765,183
7,625,077
14,390,260
-
148,534
97,120
170,053
97,120
318,587
6,913,717
7,892,250
14,805,967
(468,224)
(1,458,415)
(1,926,639)
(221,210)
(4,066)
(637,042)
(17,588)
(858,252)
(21,654)
(693,500)
(2,113,045)
(2,806,545)
6,220,217
5,779,205
11,999,422
Capitalised costs amounting to $459,981 (2020: $97,120) have been included in cash flows from investing activities in the
statement of cash flows for the Consolidated Group.
NOTE 12: INTANGIBLE ASSETS
Intellectual property
Accumulated amortisation
Accumulated impairment expenses
Net carrying value
Balance at the beginning of the year
Additions
Amortisation expense
Impairment
Carrying amount at the end of the year
2021
$
2020
$
20,745,226
19,312,548
(2,193,662)
(1,660,915)
(9,428,520)
(9,428,520)
9,123,044
8,223,113
8,223,113
1,432,678
(532,747)
-
6,524,192
2,180,633
(472,108)
(9,604)
9,123,044
8,223,113
Intellectual property relates to pyrolysis technology, EdenCrete®, EdenPlastTM and OptiBlend®. Capitalised costs
amounting to $1,449,268 (2020: $2,180,633) have been included in cash flows from investing activities in the statement
of cash flows.
NOTE 13: TRADE AND OTHER PAYABLES
Trade payables and other payables
32
2021
$
755,189
755,189
2020
$
781,774
781,774
Annual Report 2021ASX Code: EDE NOTE 14: INTEREST BEARING LIABILITIES
Dumont Way property purchase loan (2nd mortgage over the Dumont Way property,
4% interest rate, denominated in USD and 1.3 years remaining)
Noble Energy Pty Ltd Loan (Unsecured, interest free and denominated in AUD)
SBA Loan (Unsecured, 1% interest rate, denominated in USD and 2 year term)
SnowPoint Loan (Secured over all 3 properties, 11% interest rate, denominated in USD
and 18 month term with further 6 month option)
Total current portion
Dumont Way property purchase loan (2nd mortgage over the Dumont Way property,
6% interest rate, denominated in USD and 1.3 years remaining)
SBA Loan (Unsecured, 1% interest rate, denominated in USD and 2 year term)
SnowPoint Loan (Secured over all 3 properties, 11% interest rate, denominated in USD
and 18 month term with further 6 month option)
Total non-current portion
Total
Opening Balance
Proceeds from borrowing, net of borrowing costs
Repayment of borrowings
Borrowing costs expensed
FX (gain) / loss
Closing balance
* - Non-cash transaction
NOTE 15: PROVISIONS
Provisions for staff entitlements and warranties
2021
$
-
-
843,708
3,927,418
2020
$
257,912
200,000
358,654
-
4,771,126
816,566
486,143
531,401
-
-
486,143
5,257,269
563,601
4,086,437
5,181,439
5,998,005
5,998,005
139,347*
1,019,777
8,125,557
(371,922)
(3,122,254)
190,291
(698,452)
5,257,269
293,458
(318,533)
5,998,005
2021
$
171,341
171,341
2020
$
180,313
180,313
33
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 16: ISSUED CAPITAL
a.
Ordinary shares
2021
No.
2020
No.
2021
$
2020
$
At the beginning of reporting period
1,723,596,366
1,660,801,742
105,503,776
102,636,700
Shares issued during the year
359,255,982
62,794,624
9,232,511
2,867,076
At reporting date
2,082,852,348
1,723,596,366
114,736,287
105,503,776
i.
ii.
The ordinary shares on issue have no par value and there is no limited amount of authorised share capital.
Ordinary shares participate in dividends and in the proceeds on winding up of the parent entity in proportion to
the number of shares held. At the shareholders meetings each ordinary share is entitled to one vote when a poll is
called, otherwise each shareholder has one vote on a show of hands.
b.
Options
At the beginning of reporting period
Options issued
Options exercised
Options lapsed
At reporting date
2021
No.
2020
No.
83,029,634
111,559,056
68,394,506
1,000,000
(157,735)
-
(81,871,899)
(29,529,422)
69,394,506
83,029,634
For information relating to the Eden Innovations Ltd employee option plan, refer to Note 3b Share-based Payments.
For the options granted during the current financial year, the valuation model inputs used to determine the fair
value at the grant date, are as follows:
Grant Date
Expiry
Share Price
at Grant
Date
Exercise
Price
Expected
volatility
Dividend
yield
2/12/2020
1/12/2023
$0.031
$0.04379
109%
11/12/2020 11/12/2022 $0.029
9/6/2021
1/6/2022
9/6/2021
1/6/2022
$0.023
$0.023
$0.05
$0.07
$0.08
59%
59%
59%
-
-
-
-
Risk-free
interest
rate
Fair value
at grant
date
0.10%
0.10%
0.10%
0.10%
$0.0127
$0.0047
$0.0003
$0.0002
c.
Performance rights
At the beginning of reporting period
Performance rights cancelled
Performance rights issued
Performance rights exercised or lapsed
At reporting date
2021
No.
26,391,012
(16,481,010]
2020
No.
-
-
27,304,014
26,391,012
(9,910,002)
-
27,304,014
26,391,012
For information relating to performance rights granted to directors and employees, refer to Note 3b Share-based
Payments.
d.
Capital Management
Management controls the working capital of the Group in order to maximise the return to shareholders and ensure
that the Group can fund its operations and continue as a going concern. Management effectively manages the
Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in
these risks and in the market. These responses include the management of expenditure and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since the
prior year.
34
Annual Report 2021ASX Code: EDE NOTE 17: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent assets or contingent liabilities at 30 June 2021.
NOTE 18: CASH FLOW INFORMATION
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation and amortisation
Share-based payments expense
Other financial items
Financing costs expensed
Assets written off
Net exchange differences
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in other current assets
Increase/(decrease) in trade payables and accruals*
Increase/(decrease) in provisions
Increase/(decrease) in other liabilities
Cash flow from operations
* - Net of non-operating movements
NOTE 19: CAPITAL AND LEASING COMMITMENTS
a.
Capital Expenditure Commitments
— not later than 12 months
— greater than 12 months
b.
Other Commitments
2021
$
2020
$
(5,758,759)
(9,105,991]
1,278,892
1,290,148
(78,020)
-
190,290
32,424
225,790
(172,343)
(1,138,801)
(64,999)
(26,586)
(8,972)
(26,443)
449,395
9,604
293,458
-
(29,013)
(81,099)
33,509
(39,777)
(208,757)
23,359
(10,526)
(5,547,527)
(7,375,690)
2021
$
2020
$
-
-
-
-
-
-
The Group had commitments over the next 12 months of approximately $59,000 relating to low-value short-term
leases.
NOTE 20: RESERVES
a.
Share-based Payment Reserve
The share-based payment reserve records items recognised as expenses on valuation of share options and
performance rights. Refer to Note 3b for further details of share options and performance rights issued.
b.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on the translation of foreign
subsidiaries.
35
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
Country of
Percentage Owned (%)*
Incorporation
India
Australia
USA
USA
2021
100
100
100
100
2020
100
100
100
100
NOTE 21: CONTROLLED ENTITIES
a.
Controlled Entities
Eden Innovations (India) Pvt Ltd
Eden Energy Holdings Pty Ltd
Eden Innovations LLC
EdenCrete Industries Inc.
* Percentage of voting power is in proportion to ownership
b.
c.
Acquisition of Controlled Entities
No entities were acquired during the year.
Disposal of Controlled Entities
No entities were wound up during the year.
NOTE 22: PARENT COMPANY INFORMATION
a.
Parent Entity
Assets
Current assets
Non-current assets (includes loans to and investment in subsidiaries of
$6,135,713)*
Total Assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued Capital
Retained Earnings
Reserves
Share-based payment reserve
Total reserves
Financial performance
Profit / (Loss) for the year*
Other comprehensive income, net of tax
Total comprehensive income / (Loss)
2021
$
2020
$
483,289
112,981
17,851,475
15,990,763
18,334,764
16,103,744
194,032
194,032
371,232
371,232
114,736,287
105,503,776
(104,999,850)
(98,350,682)
8,404,306
8,404,306
8,579,418
8,579,418
(6,649,178)
(52,951,129)
-
-
(6,649,178)
(52,951,129)
* - The loans to and investment in subsidiaries have been assessed for impairment and an impairment expense of
$4,347,658 (2020: $50,374,783) has been recognised. It is anticipated that the balance of these loans to and investment
in subsidiaries will be recovered through the successful commercialisation of EdenCrete® and OptiBlend® by the
subsidiary companies.
36
Annual Report 2021ASX Code: EDE NOTE 23: EVENTS AFTER THE BALANCE SHEET DATE
On 30 July 2021 2,753,148 fully paid ordinary shares were issued to Mr Stephen Dunmead and Mr Lazaros Nikeas pursuant
to resolutions passed at the general meeting held on 2 July 2019.
On 23 August 2021 Eden announced a non-renounceable pro-rata rights issue to raise up to $3.8 million by the issue of
shares at $0.022 together with one (1) free attaching Eden option for every two shares issued under the Offer (each to
acquire one fully paid ordinary Eden share at an exercise price of $0.05 per share at any time up to and including
7 October 2024).
There were no other material events occurring after the reporting date.
NOTE 24: SEGMENT REPORTING
The Group has identified its operating segments based on internal reports that are reviewed and used by the Board of
Directors (chief operating decision maker) in assessing performance and determining allocation of resources. Activities of
the Group are managed on Group structure basis and operating segments are therefore determined on the same basis. In
this regard the following list of reportable segments has been identified.
◊ Eden Innovations LLC – EdenCrete® sales and development and Optiblend® sales, service and manufacturing.
◊ Eden Innovations (India) Pvt Ltd – Optiblend® sales, service and manufacturing in India.
2021
External sales
Internal sales
Total segment revenue
Segment Result
Unallocated expenses
Result from operating activities
Finance costs
Loss before income tax
Income tax benefit
Loss after income tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
Capital expenditure
Depreciation and amortisation
Impairment expense
Eden Innovations
LLC
Eden Innovations
India Pvt Ltd
Eliminations
Consolidated
Entity
$
$
$
$
2,236,127
1,046,695
-
3,282,822
7,749
2,243,876
(3,312,621)
-
1,046,695
680,342
(7,749)
(7,749)
(139,678)
13,922,062
950,139
6,027,806
239,960
-
-
453,577
745,179
-
2,186
966
-
1,432,678
532,747
-
-
3,282,822
(2,771,957)
(2,238,992)
(5,010,949)
(747,810)
(5,758,759)
-
(5,758,759)
14,872,201
9,606,332
24,478,533
6,267,766
70,035
6,337,801
1,888,441
1,278,892
-
37
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 24: SEGMENT REPORTING (CONTINUED)
Eden Innovations
LLC
Eden Innovations
India Pvt Ltd
Eliminations
Consolidated
Entity
$
$
$
$
2,271,499
2,072,757
4,344,256
(5,744,154)
155,606
-
155,606
(109,036)
(2,072,757)
(2,072,757)
(253,601)
-
2,427,105
-
2,427,105
(6,106,791)
(2,549,620)
(8,656,411)
(477,371)
(9,133,782)
27,791
(9,105,991)
14,471,355
8,336,094
22,807,449
7,146,149
(71,212)
7,074,937
2,277,753
1,290,148
9,604
14,194,405
276,950
6,619,177
526,972
-
-
97,120
818,040
-
-
-
-
2,180,633
472,108
9,604
2020
External sales
Internal sales
Total segment revenue
Segment Result
Unallocated expenses
Result from operating activities
Finance costs
Loss before income tax
Income tax benefit
Loss after income tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
Capital expenditure
Depreciation and amortisation
Impairment expense
38
Annual Report 2021ASX Code: EDE NOTE 25: FINANCIAL INSTRUMENTS
a.
Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are liquidity risk and credit risk.
i.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate funding is
maintained.
The remaining contractual maturities of the Group financial liabilities are:
12 months or less
1 year or more
Total
ii.
Credit risk
2021
$
5,528,616
496,556
6,025,172
2020
$
1,694,955
5,181,439
6,876,394
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a
financial loss to the company. The Group has adopted a policy of only dealing with credit worthy counterparties
and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of
financial loss from defaults.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date
to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets,
as disclosed in the balance sheet and notes to the financial statements.
The Group does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the company.
iii.
Foreign currency risk
The Group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and
services in currencies other than the companies’ functional currency. The risk is measure using sensitivity
analysis and cash flow forecasting. At 30 June 2021, the effect on the loss and equity as a result of a 10%
increase in the exchange rates, with all other variables remaining constant would be a decrease in loss by
approximately $420,000 (2020: decrease of loss of $630,000) and a decrease in equity by approximately
$440,000 (2020: $460,000). A 10% decrease in the exchange rates would result in an equal and opposite
impact on the loss after tax and equity.
iv.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The group’s minimal exposure to interest rate risk, the only
asset / liability affected by changes in market interest rates is Cash and cash equivalents. The Interest
Bearing Liabilities of the Group are all fixed rate and will not fluctuate because of changes in market interest
rates.
b.
Financial Instruments
Net Fair Values
The aggregate net fair values of financial assets and financial liabilities, at the balance date, are approximated by
their carrying values.
39
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 26: COMPANY DETAILS
The registered office of the company is:
Eden Innovations Ltd
Level 15
197 St Georges Terrace
Perth Western Australia 6000
The principal place of business is:
Eden Innovations Ltd
Level 15
197 St Georges Terrace
Perth Western Australia 6000
40
Annual Report 2021ASX Code: EDE DIRECTORS’ DECLARATION
In the opinion of the directors of Eden Innovations Ltd:
a. the financial statements and notes set out on pages 20 to 40, and the Remuneration disclosures that are contained in
pages 14 to 17 of the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001,
including:
◊ giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance, for the financial
year ended on that date; and
◊ complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
◊ complying with International Financial Reporting Standards as disclosed in Note 1.
b. the remuneration disclosures that are contained in pages 14 to 17 of the Remuneration Report in the Directors’ Report
comply with Australian Accounting Standard AASB 124 Related Party Disclosures and
c. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Executive Chairman and Chief Financial Officer for the financial year ended 30 June 2021.
This declaration is made in accordance with a resolution of the Board of Directors.
_________________________________
Gregory H Solomon
Executive Chairman
Dated this 29th day of September 2021
41
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
Independent Auditor’s Report to the Members of Eden Innovations Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Eden Innovations Ltd (“the Company”) and its subsidiaries (“the
Group"), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance
for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material uncertainty relating to going concern
Without modifying our opinion, we draw attention to Note 1 of the financial report, which indicates that the
Group will require further funding in the next twelve months from the date of this report to fund its planned
operating costs. These conditions, along with other matters as set forth in Note 1, indicate the existence of
a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern
and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course
of business.
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 matter described below to be the key audit matter to be
communicated in our report.
42
Annual Report 2021ASX Code: EDE
Key audit matter
How our audit addressed the key audit
matter
Impairment assessment of Intangible
assets and Plant and equipment
Refer to Note 11 (Property Plant and Equipment)
and Note 12 (Intangible Assets).
As at 30 June 2021 the Group’s EdenCrete® and
(CGUs)
Optiblend® cash generating units
comprised Plant and equipment (P&E) and
Intangible Assets. The total carrying values of
P&E and Intangible Assets as at 30 June 2021
(2020:
were,
(2020:
$11,999,422)
$8,223,113).
$10,607,478
$9,123,044
respectively,
and
Impairment was assessed by the Group at the
CGU level by considering if impairment indicators
were present as at 30 June 2021. Management
determined that there were no such indicators of
impairment.
The impairment assessment for the Intangible
assets and Plant and equipment is a key audit
matter due to:
▪
▪
the significance of the Intangible assets and
Plant and equipment balances
the
statement of financial position; and
to
the judgement involved in the impairment
indicator assessment due to the need to make
estimates about future events and other
circumstances.
to evaluate
We performed the following procedures, amongst
impairment
others,
assessment:
▪
the Group's
assessed management’s determination of the
Group’s CGUs based on our understanding of the
nature of the Group’s business and the economic
environment in which the segments operate. We
also analysed the internal reporting of the Group
to assess how earnings streams are monitored
and reported.
▪
▪
compared actual sales performance subsequent
to year end to forecast sales for the same period.
enquired of management and inspected a
selection of Board of Directors’ meeting minutes
to assess whether there were any:
- observable indications that the respective
asset values have declined during the year
significantly more than would be expected
as a result of the passage of time or normal
use; or
-
-
significant changes with an adverse effect
on the entity that have taken place during
the year, or will take place in the near future,
in the technological, market, economic or
legal environment in which the entity
operates or in the market to which an asset
is dedicated; or
significant changes with an adverse effect
on the entity during the year, or any are
expected to take place in the near future, in
the extent to which, or manner in which, an
asset is used or is expected to be used.
▪ We also considered whether:
-
-
there was evidence of obsolescence or
physical damage of assets comprising the
CGUs; and
the market capitalisation of the Group was
significantly lower than Eden Innovation’s
net assets at balance date.
Other information
The directors are responsible for the other information. The other information comprises the information in
Eden Innovations Limited’s annual report for the year ended 30 June 2021, but does not include the
consolidated financial report and the auditor’s report thereon.
Our opinion on the consolidated 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 consolidated 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.
43
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibility for the financial report
The directors of the Company are responsible for the preparation of the consolidated 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 consolidated financial report, the directors are responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the entity or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
▪
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
▪ Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
▪ Evaluate the overall presentation, structure, and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
▪ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the Group financial report. We are
responsible for the direction, supervision, and performance of the Group audit. We remain solely
responsible for our audit opinion.
44
Annual Report 2021ASX Code: EDE
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 17 of the Directors’ Report for the year
ended 30 June 2021.
In our opinion, the Remuneration Report of Eden Innovations Limited for the year ended 30 June 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.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
29 September 2021
45
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The following additional information is required by the Australian Securities Exchange Ltd.
1. Shareholding as at 16 September 2021
a.
Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number
Ordinary
% Issued
Capital
250
729
698
3,130
2,169
6,976
0.00%
0.14%
0.34%
6.95%
92.57%
100%
b.
c.
The number of shareholdings held in less than marketable parcels is 2,698.
The names of the substantial shareholders listed in the holding company’s register as at 16
September 2021 are:
Shareholder
Noble Energy Pty Ltd
d.
Voting Rights
Number
Ordinary
631,877,564
The voting rights attached to each class of equity security are as follows:
Ordinary shares - Each ordinary share is entitled to one vote when a poll is called, otherwise each
member present at a meeting or by proxy has one vote on a show of hands.
e.
20 Largest Shareholders — Ordinary Shares
Name
Citicorp Nominees Pty Ltd
Noble Energy Pty Ltd
Noble Energy Pty Ltd
Arkenstone Pty Ltd
1.
2.
3.
4. Mr & Mrs Rogerson & Miss C Rogerson
5. March Bells Pty Ltd
6. Mr Wayne Kearney & Mrs Robyn Kearney
7.
8. Mr Stephen Carter
9. March Bells Pty Ltd
10. Kalsie Holdings Pty Ltd
11. Mr Donal O’Sullivan
12. Mr Douglas Solomon
13. G J Holdings Pty Limited
14. Mr Gregory Solomon
15. Miss Michelle Hawksley
16. Mr Evan Clucas & Ms Leanne Weston
17. Paddocks Superannuation Pty Ltd
18. Voyage Super Fund Pty Ltd
19. Mrs Sharyn Farrell
20. Mr Norman Maher
46
Number of
Shares
587,011,334
44,866,230
32,761,575
31,091,049
17,772,295
11,860,313
11,393,852
11,258,792
11,000,040
10,345,480
10,000,000
9,685,942
9,178,000
8,595,007
8,041,316
7,300,000
7,200,000
7,000,000
6,586,549
6,486,864
849,434,638
% Issued
Capital
28.15%
2.15%
1.57%
1.49%
0.85%
0.57%
0.55%
0.54%
0.53%
0.49%
0.48%
0.46%
0.44%
0.41%
0.39%
0.35%
0.34%
0.34%
0.32%
0.31%
40.73%
Annual Report 2021ASX Code: EDE
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
2.
Unquoted Securities – Options as at 16 September 2021
Holder Name
Date of Expiry
Exercise Price
Various
LS Whitehall Group Inc
Don Grantham Jr
Various
Various
11 December 2022
1 December 2023
19 December 2022
1 June 2022
1 June 2022
$0.05
$0.04379
$0.065
$0.07
$0.08
3.
Unquoted Securities – Performance rights as at 16 September 2021
Holder Name
Date of Expiry
Vesting
Employee Performance Rights
31 August 2022
US$6m Revenue
Employee Performance Rights
31 August 2023 US$12m Revenue
Employee Performance Rights
31 August 2024 US$24m Revenue
Number
on issue
49,543,744
6,850,762
1,000,000
6,000,000
6,000,000
69,394,506
Number
on issue
9,101,338
9,101,338
9,101,338
27,304,014
Number of
holders
112
1
1
3
3
120
Number of
holders
34
34
34
34
47
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2021ASX Code: EDE This page is left intentionally blank
48
Annual Report 2021ASX Code: EDE Construction of EdenCrete® enriched concrete retaining walls on Central 70 project in Denver, Colorado
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