Annual Report
for the Year Ended 30 June 2022
CONTENTS
Highlights During The 2022 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 2022ASX Code: EDE
HIGHLIGHTS DURING THE 2022 FINANCIAL YEAR
TOTAL SALES DURING FY2021
Sales FY 2022
A$000’s
Sales FY 2021
A$000’s
EdenCrete®
OptiBlend®
Total
1,600
2,549
4,149
1,755
1,528
3,283
Sales
% Change
-9%
+67%
+26%
HIGHLIGHTS
In spite of continued disruption by the COVID pandemic to
global markets, coupled with bad weather impacting and
restricting concrete pouring on current projects in
a number of US States:
◊ 26% increase in total US and Indian revenue for FY22
◊ 67% increase in OptiBlend® revenue in FY 22
◊ GDOT projects requiring US$675,000 worth of
EdenCrete® under construction or out for tender
◊ Three-year, bulk EdenCrete® supply agreement with
Delta Industries in Tennessee and Mississippi
◊ EdenCrete® being sold at 31 Lowe’s locations in Oregon
and Colorado and On-line across USA
◊ Sales growth continues in shotcrete and swimming pool
markets
◊ Colorado Department of Transportation Interstate
70 Vail Pass trial - positive early assessment
◊ Developed low CO2 , low cost, high fly-ash EdenCrete®
Pz concrete mixes for US market
◊ India - Second EdenCrete®Pz order received from
Godrej for approx. A$92,000
◊ Indonesian sales agent appointed for EdenCrete®
following successful trials
◊ Expanding Hythane® rollout in India opens opportunities
for Eden India
COVID-19, Omicron and Bad Weather
- Impact on Sales
During the year, the Omicron variant impacted EdenCrete®
and OptiBlend® sales in USA and India.
Extended adverse weather conditions in Georgia also
delayed many GDOT projects, reducing US EdenCrete®
sales for the year. At 31 July 2022, US$690,000 of
EdenCrete® was required for GDOT projects that were in
the pipeline and for which contracts are already awarded.
After significantly slower sales due to COVID-19 over the
past 2 years, Eden is confident of a significant increase in
sales across its product range around the world, during
the remainder of 2022 and beyond.
Market Overview
EdenCrete® products - There has been a significant rise
over the year in market interest in EdenCrete® including:
◊ the total number of US EdenCrete® projects that are
underway or being planned ;
◊ the number of US companies and State DOTs using,
trialling or discussing EdenCrete®;
◊ the size and wide range of US projects and applications
(including for both infrastructure projects and
commercial projects) where EdenCrete® is being used
or likely to be used; and
◊ the number of US States where these projects are to be
carried out.
EdenCrete® products - The following are some of the
specific highlights related to EdenCrete® products over
the past year:
◊ Eden has successfully developed low CO2, low cost, high
fly ash concrete mixes for US market using EdenCrete®
Pz (see below for more details) which is generating
significant interest.
◊ Positive review of the performance of EdenCrete®
concrete at Atlantic Transfer Station after 8 months
use; EdenCrete® being considered for at least
1 new project.
2
Annual Report 2022ASX Code: EDE ◊ Shotcrete customers in 5 States (Colorado, Georgia,
South Carolina, North Carolina, Tennessee) and trials
with potential customers in 2 new States (Mississippi
and Texas).
◊ Further repair project planned for Denver International
Airport.
◊ Market interest in EdenCrete® is growing rapidly in India,
Australia and Indonesia.
◊ In India, a huge market for EdenCrete® products, a
second order for approx. $92,000 of EdenCrete®Pz
from Godrej Construction has been despatched. Further
Indian orders over the next 12 months are expected
as Godrej rolls out the range of concrete mixes in four
Indian cities.
◊ In Indonesia, also a very large potential market, the
recent appointment of an Indonesian sales agent
following successful trials with 2 large concrete
companies, is likely to generate early sales.
◊ In Australia, a number of important trials for commercial
and infrastructure projects were conducted.
OptiBlend® - The OptiBlend® dual fuel system is
continuing to generate growing interest and demand in
India and USA. The following are the OptiBlend® highlights
for the past year:
◊ Sales in India (A$1.087 million) during the year
were 5% higher than those achieved in 2021
(A$1.033 million).
◊ Restrictions in a number of Indian States imposed on
running diesel generators solely on diesel fuel led to
two diesel generator manufacturers as well as other
diesel generator distributors exploring with Eden India
the possibility of selling Eden’s OptiBlend® kits in
conjunction with their diesel generators.
◊ This development could significantly increase
OptiBlend® sales over the next 12-24 months.
Hydrogen and Hythane® - After a long period when
there was little market interest in hydrogen and Hythane®,
Eden was engaged in separate discussions during the year
with both an Indian company and a European company
in relation to the separate possible collaborations using
Eden’s hydrogen and Hythane® technologies.
Carbon Nano Materials – During the year, Eden engaged
in discussions with a US company in relation to a possible
collaboration of one sort or other in relation to Eden’s
proprietary pyrolysis process and the carbon nanotubes
produced using this process. These discussions are
ongoing.
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX 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 BCom 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 Ltd
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.
4
Annual Report 2022ASX Code: EDE REVIEW OF OPERATIONS
EdenCrete®
EDENCRETE® SALES – FY22
US EdenCrete® SALES - FY22 (12 months) – A$1.6m
(FY21 – A$1.76m)
Indian EdenCrete® SALES FY22 – A$78,625 (INR
4,336,700)
US EDENCRETE®MARKET
Georgia Department of Transportation (GDOT)
US$675,000 of EdenCrete® sales in pipeline
EdenCrete® sales into the US infrastructure market
were slower during the year, in large part due to delays
in numerous Georgia Department of Transportation
(GDOT) projects that require EdenCrete®, as a result of
adverse weather conditions, lack of availability of workers,
particularly for night shift work, and shortages of cement.
At the end of July 2022, EdenCrete® worth US$675,000
was to be required for GDOT projects that are in the
pipeline including projects presently under construction
and/or for which the contracts have already been
awarded, or for which invitations to tender have been
issued. These sales, plus any further projects that are
added, are expected to occur progressively over the
coming year.
Three Year EdenCrete® Supply Agreement with Delta
Industries for Tennessee and Mississippi
During the year, Eden executed a three-year, bulk
EdenCrete® supply agreement with Delta Industries, Inc.,
(‘Delta”), a Jackson, Mississippi-based company, first
established in 1945.
Delta operates more than 30 ready-mix plants and sales
yards in 4 US States - Mississippi, Alabama, Tennessee
and Louisiana, having a combined population of almost
19.6 million people. Mississippi, Alabama and Louisiana
are new US EdenCrete® markets.
This agreement followed an extensive trialling /evaluation
programme conducted by Delta and several of its
shotcrete contractors, in which EdenCrete® repeatedly
delivered improved pumpability, resulting in improved
trucking efficiency and economics.
Delta focused on shotcrete because of the wide range
of benefits that EdenCrete® has repeatedly delivered
in major commercial shotcrete projects in other US
states, including improved pumpability. The time
normally taken to discharge concrete from a ready-
mix truck for shotcrete applications is longer than for
other applications. In addition to the other performance
benefits delivered by the EdenCrete® mix, the significantly
improved pumpability, resulted in Delta being able to
shorten the discharge time, enabling it to increase the
aggregate daily concrete delivery capability of each truck.
Eden supplied and installed three bulk 1,000-gallon (3,785
litres) storage tanks and dispensing equipment, one into
each of three selected Delta plants (two in Tennessee
and one in Mississippi), that service a substantial portion
of Delta’s shotcrete and commercial/ industrial markets.
These three plants are all in reasonable proximity to each
other, enabling cost effective delivery by road tanker. The
initial orders from Delta, for an aggregate of US$75,000
(A$105,927) for the 3,000 gallons of EdenCrete® required
to fill the three tanks was supplied by road tanker from
Colorado after the end of the year (see Figure 1).
The agreement, which expires in May 2025, also includes
two further options of renewal, each for another two years.
After the first 18 months, either party may terminate
the agreement by giving 90 days’ notice to the other
party. The agreement also provides that the initial price
of EdenCrete® of US$25/gallon is fixed for the first 12
months.
In addition to using EdenCrete® in shotcrete applications,
Delta has advised that it also intends to trial EdenCrete®
in other concrete mixes for use in a wider range of
different applications, including where fresh property
benefits, hardened property benefits, and improved
durability and sustainability are required.
Figure 1. Initial EdenCrete® order to Delta Industries being
delivered.
This long-term, bulk EdenCrete® supply agreement with
Delta, a long-established and regionally significant US
ready-mix concrete supplier operating in four US states,
further expands the US EdenCrete® market footprint.
EdenCrete® now being sold in 31 selected Lowe’s stores
in Oregon and Colorado, and On-line across USA
During the year EdenCrete® was first offered, in Oregon,
for sale at 14 selected stores of Lowe’s, one of the largest
home improvement retailers in the world. The product is
also available on-line, at Lowes.com for US customers
across the US, and on-line sales have commenced.
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE REVIEW OF OPERATIONS (Continued)
Encouragingly, since the end of the year, Lowe’s increased
the number of stores in which it is selling EdenCrete® to
now also include 17 selected Lowe’s stores in Colorado,
bringing to 31 the aggregate number of Lowe’s stores in
the US where EdenCrete® is currently on sale. Lowe’s has
a total of over 2,000 stores in the USA.
This important marketing initiative is a first for
EdenCrete®, being available to US retail customers,
opening a new customer base and also promoting broader
public awareness of EdenCrete® and the benefits that
it delivers. Designed to deliver the equivalent benefits
of several concrete admixtures in one, EdenCrete®
offers improved fresh properties, abrasion resistance,
reduced cracking, reduced permeability, lower
maintenance and overall offering more sustainable,
longer-lasting construction. As such, the product is well
targeted towards the broad retail market, as well as
smaller builders and contractors, looking for a range of
performance improvements.
Swimming Pools – Sales growth continues
Following successful trials in February 2022, Eden started
to receive a growing number of orders from contractors in
7 states (Colorado, Georgia, North Carolina, Florida, Texas,
New Mexico and California), for use in exposed aggregate
pool mixes for finishing swimming pools (see Figure 2).
In March 2022, Eden received its first large order, worth
approximately A$ 416,050 (US$311,040), sufficient for
finishing for approximately 5,000 swimming pools, to be
supplied progressively over a 12 month period.
Figure 2. A typical US exposed aggregate, swimming pool
finishing mix being applied.
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This use of EdenCrete® not only permitted a 20%
reduction in the amount of cement required in the
concrete finishing mix, but also delivered the following
benefits:
◊ Improved pumping
◊ Improved placing
◊ Improved finishing
◊ Reduced waste in the finishing process
◊ Tighter pebble packing
◊ Easier to clean out pump and hoses after job
completion.
The strong and rapid market uptake is a firm endorsement
of the benefits delivered by the EdenCrete®, confirming
the potential importance of the total US EdenCrete®
swimming pool market. This new application expands
the existing US EdenCrete® shotcrete market used in the
construction of pool shells, regardless of the finish used.
EdenCrete® is already in regular use in shotcrete used for
concrete swimming pool shell construction in three US
states, Colorado, Georgia and North Carolina, where sales
also rose sharply over the past year. The swimming pool
markets represent major EdenCrete® markets in the USA.
Aqua Magazine, a leading US publication focused on
swimming pools, ran an article on EdenCrete® in its June
edition. The positive market response to this article, and a
subsequent advertisement run by Eden in the July edition,
has generated over 12 new enquiries for EdenCrete®
products for use in shotcrete applications and/or
swimming pool construction and finishing.
Low CO2, low cost, high-fly ash concrete mixes
developed for US Market with EdenCrete® Pz
Eden US has recently completed the development, at
its Colorado laboratory, of a range of low-CO2 , high- fly
ash content concrete mixes that incorporate either
EdenCrete® Pz or Pz7. This programme, designed to help
customers optimize the dosage of EdenCrete® products
in their mix designs for cost-efficient strength gain
optimization, has been very successful.
A range of new concrete mixes were developed, using
several brands and types of cements, but with either
20% or 40% fly ash being substituted for an equivalent
quantity of cement powder and with a low dosage of
EdenCrete® Pz. The performance of these new mixes was
highly encouraging when compared with the performance
of same mixes without 20% or 40% fly ash. Additionally,
material net cost savings (up to US$6 per cubic yard
of concrete) were also achieved, without reducing the
strength of the concrete.
Annual Report 2022ASX Code: EDE
This project has attracted considerable interest, and
Eden is engaged in discussions with potential customers
in a number of States of the US, including a reasonable
number of large ready mix concrete suppliers. When these
performance benefits and cost savings are coupled with
the materially reduced Greenhouse Gas footprint delivered
benefit as a result of using the far lower CO2 fly ash, Eden
US anticipates that this programme alone will deliver very
significant market growth and product sales over the
coming years.
Waste transfer stations
The first waste transfer station project using EdenCrete®
in the concrete tipping slab, that is exposed to extreme
wear, was built in Savannah, Georgia for Atlantic Waste
Services in early 2021.
The project came after a review of the increased abrasion
resistance and reduced permeability that EdenCrete®
delivers to concrete. Dosed at the rate 4 gallons/cubic
yard of concrete, the EdenCrete® delivered a cost-
effective alternative to a more expensive, epoxy coating
treatment that had previously been used in other waste
transfer stations, and which it replaced.
After 8 months of use under very harsh, acidic and
abrasive conditions, a positive review of the performance
of the EdenCrete® enhanced concrete at Atlantic Waste
Transfer Station has resulted in EdenCrete® now being
considered for inclusion in similar concrete for at least
one proposed new transfer station project.
Shotcrete Market Growth
Sales of EdenCrete® for shotcrete applications continue
to grow, in part as a result of a positive impact following
the release of Eden’s shotcrete promotional video in June
2021. New shotcrete customers in 4 US States - North
Carolina, Tennessee, Mississippi and Georgia – were added
to the already existing shotcrete customer base, that
now extends across 5 States (Colorado, Georgia, South
Carolina, North Carolina and Tennessee), with potential
customers are also planned in Mississippi and Texas.
Airports - Further EdenCrete® project planned for
Denver International Airport.
Following earlier success in a number of repair projects
in the concrete apron outside the United Airlines
maintenance hangar in September 2021, Eden has
been advised that further repair projects that will use
EdenCrete® are scheduled for the coming months.
Florida DOT
During the year, Florida Department of Transportation
(FDOT) added EdenCrete® and EdenCrete®Pz to its
approved admixture list.
EdenCrete® is now approved for DOT use in 22 States
(EdenCrete®Pz in 17 States), being:
Alabama, Alaska, Arkansas, California, Colorado,
Florida, Georgia, Kansas, Kentucky, Louisiana, Maine,
Massachusetts, Mississippi, North Carolina, Oklahoma,
Oregon, South Carolina, Tennessee, Texas, Vermont,
Virginia and West Virginia; and (see Figure 3).
Figure 3. Current Status of US DOT Approvals of EdenCrete®
Products
These 22 States represent approximately:
◊ 55% of the total US population;
◊ 75,480 bridges* that are structurally deficient or
functionally obsolete;
◊ 52% of the total number of such bridges
in the USA*; and
◊ 55% of the total US land area.
With its significantly expanding US sales footprint, the
ongoing DOT EdenCrete® trials (particularly for bridges)
in various States, plus the approvals for DOT use in 22
States, EdenCrete® is very well placed to participate in the
expected significant market growth from an additional
US$110 million under the recently announced US Federal
infrastructure programme.
This Federal funding is in addition to US$905 million of US
Federal funding awarded to 24 projects in July 2021 under
the Infrastructure for Rebuilding America programme.
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE REVIEW OF OPERATIONS (Continued)
Colorado Department of Transportation - I-70 Vail Pass
trial - positive assessment after first 12 months
As announced by Eden on 15 June 2021, in early May
2021, following several years of planning, design, and
preparation, the Colorado Department of Transportation
(CDOT) completed the installation of a major concrete
paving trial in Summit County. CDOT, jointly with Peak
Materials, the American Concrete Pavement Association,
Eden Innovations, and IHC Scott executed the trial, to
evaluate the long-term performance of three alternative
concrete mix designs at ~10,000 feet (~3050 metres)
elevation, to compare the performance over a 3-year
period of a standard concrete mix, followed by an
EdenCrete® concrete mix and also a silica fume concrete
mix.
After the first year of use (out of the intended 3 year
trial), which included the entire 2021-22 winter, the three
pavement sections are already reflecting the impacts of
nature, de-icing chemicals and the heavy traffic use on a
major Interstate Highway. In May 2022, 12 months after
the trial started, Eden conducted the first visual evaluation
of the performance across five parameters.
Table 1 summarizes the observed performance, after the
first year, of each of the three pavement sections, photos
of which are also shown in Figures 4-6 below.
Pavement
Scaling/Abrasion
Pop Outs/Pitting
Cracking
Joint Rot
Rutting
Reference
EdenCrete®
Silica Fume
Table 1
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
No
This demonstrated, superior performance delivered by the
EdenCrete® enhanced concrete in the first 12 months of
the 3-year trial in such harsh service conditions is highly
encouraging.
Based on its performance in other longer projects (such
as GDOT road projects), the EdenCrete® concrete is
considered likely to continue to outperform the other
slabs over the full 3 years. This would be of great
assistance to Eden in its efforts to extend the existing
EdenCrete® market footprint further into the highways
and bridges through state and federal US Departments
of Transportation, and into the broader US infrastructure
market.
Figure 4 Mid-Section- Reference Slab -12 months Severe
Surface Damage, Joint Rot, Pitting, Pop Outs
Figure 5 Mid-Section -Silica Fume Slab - 12 months Surface
worn off, Scaling, Pitting, Aggregate Pop Outs
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Annual Report 2022ASX Code: EDE
Figure 6 Mid-Section- EdenCrete® Slab – 12 months
Concrete surface partially worn off, No Scaling, No Surface
Damage, No Pitting or Aggregate Pop Outs, No Rutting,
No Joint Rot
Structural Concrete Insulated Panel (“SCIP”) Project
The first and largest SCIP construction project built
in Houston, Texas, was started in 2021. The 4-storey
single-family residential building’s panels were erected
and joined to create interior and exterior walls, ceilings,
and floors (see Figure 7) . The General Contractor batched
and shot the exterior and interior shotcrete shell to an
approximate thickness of 1.5 inches (3.8cm) on each side.
This project required a total of 350 cubic yards (268 cubic
metres) of shotcrete, and used only US$3,062 (approx.
A$4,264) worth of EdenCrete®, delivering a very cost-
effective outcome.
The use of EdenCrete® was specified by the general
contractor at 1/4 gallon/cubic yard (approx. 1.2 litres/
cubic metre) of concrete for this ongoing project.
EdenCrete® was used to take advantage of the improved
rheology of the shotcrete mix, allowing the mix, which
pumps and finishes exceptionally well, to be easily placed,
filling and fully encapsulating the 2-inch wire mesh
opening.(see Figure 8) . This SCIP structure delivered a
non-combustible building that does not require a fire
sprinkler system.
Figure 8. Shotcrete mix with EdenCrete® filling and fully
encapsulating the wire mesh
INTERNATIONAL EDENCRETE® MARKET
INDIA - GODREJ CONSTRUCTION – SECOND SALE -
A$92,000
Eden Innovations (India) Pvt Limited, the wholly owned
subsidiary of Eden Innovations Ltd made its second
sale to Godrej Construction, the construction division
of Godrej & Boyce Manufacturing Co. Ltd (“Godrej”), for
approximately A$92,000 worth of EdenCrete®Pz for
use in its ready-mix concrete operation in several cities
(including Mumbai and Pune) in the state of Maharashtra.
The sale was in August 2020.
This second order from Godrej Construction, which
is six times larger than the first order, followed the
successful completion of a significant, 12 months
testing and development programme conducted by
Godrej Construction using standard concrete mixes from
several cities where it operates, that, with the addition
of only modest dosages of EdenCrete® Pz, were able to
incorporate far higher percentages of fly ash in place of
ordinary Portland cement.
As a result, these new concrete mixes were able to
deliver stronger, cheaper concrete with far lower CO2
footprints than had been possible without the addition of
EdenCrete®Pz.
This second Godrej Construction sale is a highly significant
development in the commercialization of EdenCrete®
products because:
◊ Not only is it a significant order but it is the first repeat
order from outside the USA to be received for any
EdenCrete® product;
Figure 7. 4-storey SCIP residential home in Houston under
construction and including EdenCrete®
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Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE REVIEW OF OPERATIONS (Continued)
for EdenCrete® products. EdenCrete®Pz is the product
being used in India, enabling concrete contractors to
reduce the amount of more expensive Portland cement
used in their concrete mixes, and replace it with Indian
fly ash, a readily available waste product from the many
local coal fired power stations, that is not only a far
cheaper cementitious material than Portland cement,
but one that also has a greatly reduced Greenhouse Gas
footprint.
The level of interest in India in both the economic and
environmental benefits of more durable concrete is
evidenced in a recent Maharashtra Government Invitation
to Tender to supply 40 MPa strength concrete for the
construction of two major Indian highway projects, that
lists Nano Carbon Technology as one of the Key Product
Specifications for enhanced serviceability of concrete
pavement for the projects.
India is pushing ahead with a staggeringly large
urbanisation and infrastructure programme that will
take decades to complete, and represents a huge target
market for EdenCrete®. With a very strong relationship
with Godrej, one of India’s most respected companies,
Eden India, which has operated since 2007 and been
increasingly profitable for the past three years, is
extremely well placed to participate in this extraordinarily
exciting journey that has the potential to grow very rapidly.
AUSTRALIA
– EDENCRETE® MARKETING PROGRESS
Parchem Construction Supplies Pty Ltd (‘Parchem”),
the EdenCrete® products distributor in Australia and
New Zealand, has been making progress in the marketing
of the EdenCrete® range in both Australia and
New Zealand, and a number of trials with potentially
significant customers have been undertaken.
The following is a summary of broad progress made
during the year by Parchem:
◊ A trial was undertaken in mid-December 2021, at
a sugar mill in North Queensland. Sugar, similar to
chlorides, is highly corrosive to concrete. Due to the
corrosive environment of this operation, ongoing
maintenance, repair and sometimes replacement, is
constantly required on the concrete slabs. EdenCrete®
was identified to be used in this repair trial, for its
strength and durability, with an objective of extending
the service life of the repaired slab. The slabs will be
monitored over time to determine their durability in this
harsh environment.
◊ The successful testing and development programme
undertaken by Godrej Construction occurred during a
year when India was greatly impacted by several major
challenges including COVID 19 lockdown restrictions,
and opens the way for Godrej to roll these mixes out
in several fast-growing cities in Maharashtra with a
combined population of over 50 million people;
◊ India is estimated to currently produce around 150
million tonnes of fly ash per year and this is anticipated
to rise to around 500 million tonnes p.a. within the next
5-10 years as scheduled new coal fired power plants
come on line;
◊ India has a population of nearly 1.4 billion people, of
whom approximately 800 million live in rural areas;
◊ India announced in 2019 a US$1.2 trillion infrastructure
programme, that, along with the rapidly increasing
urbanization, will require very large quantities of
concrete; and
◊ The addition of small dosages of EdenCretePz to
concrete mixes made with less Indian cement and a far
higher percentage of Indian fly ash has led to a number
of new concrete mixes, covering a range of performance
standards, being developed that all deliver stronger and
cheaper concrete, and with each mix having a far lower
CO2 footprint than had previously been possible.
After extended delays of over four months (due to global
container freight and shipping delays), the first major
order received from Godrej Construction in late 2021 for
A$92,000 worth of EdenCrete® Pz (over half of a container
load) finally arrived in India in late April 2022, enabling
Godrej Construction to start significantly expanding
its Indian market foot print for EdenCrete® enhanced
concrete.
Following receipt of this shipment, Eden’s chief scientist
flew to India and assisted the Godrej Construction team,
with whom Eden has been collaborating since 2019, in
expanding the range of EdenCrete® Pz enhanced concrete
mixes suitable for use in Godrej’s batching plants in two
additional large Indian cities (bringing the total to four
such cities).
Godrej is part of a very highly regarded Indian group that
was established in 1897, and now sells a wide range of
products across India and also into 80 other countries.
It is has offices in 20 major Indian cities and is currently
expanding its concrete operations.
◊ India with a population of nearly 1.4 billion people,
with approximately 800 million living in small rural
communities, and of whom many wish to move to
towns and cities, offers an enormous potential market
10
Annual Report 2022ASX Code: EDE ◊ Parchem’s first container load of EdenCrete® stock –
16 pallets -arrived into Australia in June 2022 (after
an extended delay due to well publicised international
container and shipping problems).
◊ Perth Wake Park used EdenCrete® at 4L/m3 for
replacement concrete paths, to reduce the permeability,
and increase the durability for longer lasting concrete
(see Figure 9).
◊ A speciality pavement tile manufacturer continues to
use EdenCrete®, purchasing ~180 litres per month.
Figure 9 Concrete pavement (including EdenCrete®)
at Perth Wake Park
◊ EdenCrete® was recently trialled in a laboratory with
use of recycled aggregates to determine the ability to
gain MPa strength similar to a control mix with standard
quarry aggregate. At a dose of only 2.5L/m3, the CNT
mix with 100% recycled aggregate, achieved 97% of the
control mix strength that had NO recycled aggregate
and the CNT achieved a 10% increase in MPa strength
vs. a control mix of the same 100% recycled aggregate.
◊ After trialling the EdenCrete® mix a year ago, and
achieving 20MPa over the control mix at 3, 7 and 28
days, a port in QLD has specified 5L/m3 in precast
concrete elements for a boat ramp – 45-50m3
of concrete in total, a project that commences in
September 2022.
◊ SmartCrete CRC – Parchem has partnered with
SmartCrete CRC and Curtin University Corrosion Centre
in Perth, on a 3 year Project that will see EdenCrete®
used in concrete mixes, in simulated and actual marine
environments, for reportable performance in strength,
reduced permeability and overall durability of concrete
assets in the most corrosive environment.
◊ Technical presentations to Engineers, Asset owners and
Industry partners this year included:
◊ Concrete Institute of Australia in Perth, and
◊ Water Industry Operators Association of Australia
(WIOA) Victoria. EdenCrete® has AS/NZS 4020:2018
standards certification -products for use in contact
with drinking water i.e. concrete tanks.
INDONESIA – SALES AGENT APPOINTED
AFTER SUCCESSFUL TRIALS OF
HIGH-FLY ASH CONCRETE
Following successful trials during the year of EdenCrete®
Pz in various low CO2, low cost, high-fly ash concrete
mixes with an Indonesian concrete company that was
introduced by Ai Building Indonesia (“Ai Building”), Ai
Building was appointed as a commission sales agent for
the EdenCrete® range of products for Indonesia.
Following the appointment, Eden’s chief scientist flew to
Indonesia to participate in concrete batching trials with
a number of other large Indonesian concrete producers,
focused on developing high strength, low cost and CO2
footprint concrete mixes incorporating high percentages
of fly ash, in substitution for similar percentages of
Ordinary Portland Cement (OPC) that would otherwise be
used in the concrete mixes.
As had been the case with a number of earlier Indonesian
trials, these recent trials, that are still on-going, are
producing highly encouraging results, including a number
where small, low cost dosages of EdenCrete® Pz, are
delivering strength increases of up to, and even beyond,
25%, in low Portland cement/ high fly-ash content
concrete mixes, opening up the prospect of a very exciting
Indonesian EdenCrete® market. In consequence, Eden is
confident that sales of EdenCrete products to Indonesian
customers are likely to commence in the coming months.
Indonesia, with a population of over 270 million people,
large domestic coal deposits and, currently, over 40 GW of
decentralised coal fired power generating capacity (with a
correspondingly high annual fly ash production), has many
similarities to India, including a huge projected growth
in both urbanisation and infrastructure improvement. As
such it is currently considered to be Eden’s second (after
India) most important international market for EdenCrete®
outside the USA.
11
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE OPTIBLEND®
OptiBlend® Sales for the Year (FY22)
SALES FY 22 (A$000s)
SALES FY 21 (A$000s)
% Change
USA
INDIA
TOTAL For FY
1,462
1,087
2,549
495
1,033
1,528
+196%
+5%
+67%
Indonesia, like India, is a major cement manufacturing
country with a large concrete industry, and which also has
many coal -fired power stations and a significant ongoing
supply of fly ash. Similarly, to India, Indonesia is expected
to develop into a major market for EdenCrete® products,
and in particular for EdenCrete® Pz for use in low CO2, low
cost, high- fly ash concrete mixes.
OPTIBLEND® SALES SUMMARY
Total Sales - Q4 Fy 22
– A$0.57m ( Q4 Fy21 – A$0.64m )
Total Sales - Fy 22 – A$2.55m (Fy21 – A$1.53m)
OptiBlend® Sales in USA and India expected to grow,
due to various market factors.
US OptiBlend® Market Outlook
In the US, the desire to significantly extend the back-
up capacity of the installed diesel fuel storage, through
the displacement with natural gas of up to 70% of the
diesel fuel being consumed, is driving sales growth.The
US OptiBlend® market is expected to continue to grow at
a modest pace, with the most growth anticipated to be
achieved in the South-East, South-West and Mid-West
regions of the US.
INDIAN OPTIBLEND® MARKET
Indian OptiBlend® Sales Q4 FY 22 – A$0.41m
Indian OptiBlend® Sales FY 22
– A$1.09m (FY21 – A$1.03m)
Indian OptiBlend® Market Outlook
Indian OptiBlend® sales for the year were lower than
expected due to long delays in the supply of a key
component that includes a computer micro-chip that
delayed delivery of the required component for a number
of months.
Using natural gas to replace a large percentage of
the diesel fuel in diesel powered generators, results
in lower operating temperatures and lower levels of
12
environmentally hazardous emissions such as particulates
and NOx. This is of extreme importance in India where the
Supreme Court has prohibited the use, in Greater Delhi
(with a combined population of over 40 million people),
of diesel generators running on 100% diesel fuel for a
significant portion of the year, in an effort to try to reduce
the extremely high levels of toxic air pollution which are
regularly experienced.
This situation is expected to continue to drive growth
in OptiBlend® sales in India for the foreseeable future.
Whilst the reliability of the power grid is improving, people
are still concerned by the prospect of having to face
being without power from time to time, particularly in
the extreme summer heat that is regularly experienced.
As a result, subject to availability of all its required
components, Eden India expects to achieve potentially
significant growth in it OptiBlend® sales over the next
year.
Carbon Nanotubes
During the year discussions were held with a company
that produces and markets a range of nano-carbon
particles and products, and wished to explore the
potential of using Eden’s carbon nanotubes in some
of its products. Following the discussions, trials were
undertaken by the company with Eden’s carbon nanotubes
and, at the date of this Report, those trials are still
continuing.
EdenPlast®
During the year, the Japanese plastics company that
has been trialling EdenPlast® over the past 18 months,
conducted further trials. An additional master batch of
EdenPlast® CNT-enriched polymers was also prepared for
further testing in Japan.
Eden is hopeful that a positive outcome from the
Japanese trials will lead to an initial sale and the
establishment of a strong commercial EdenPlast®
market.
Annual Report 2022ASX Code: EDE CORPORATE
Eden completed two rights issues and a placement raising
a total of A$6.93 million (before costs).
Eden US, supported by Eden Australia, finalised a
transaction to replace the two earlier secured loans
(totalling US$3.365 million) and secured against Eden’s
US real estate assets, with a new secured loan from
iBorrow REIT LP of US$6.475 million, which represents
less than 55% of the recently re-appraised values of
Eden’s three US properties. The new loan carries an
interest rate of 9.75% p.a. This new loan was completed,
and the existing loans repaid during August 2022. The
new loan is for 11 months (to 29 June 2023) and with an
option extension to 29 June 2024.
After repaying the two existing secured loans, payment of
all expenses and commissions, and establishing reserves
to cover future interest payments, real estate taxes and
insurance, approximately US$1.7 million (A$2.45million)
of additional working capital for Eden was generated by
this transaction, supplementing the revenue stream being
received from increasing product sales.
Eden also has its 65-acre industrial property in Augusta,
Georgia, on the market for sale.
Hydrogen
Interest in Eden’s Hydrogen / Hythane® products and
technologies
During the year, Eden US updated its proprietary Hythane®
blender (for blending hydrogen and natural gas in specific
ratios), which was developed more than 12 years ago,
and now needed to have some of its original components
replaced with improved and currently available
components.
This followed Eden India having received a number of
enquiries in relation to supplying blenders for use in the
Indian Hythane market, and the recent upgrade of Eden’s
Hythane® blender will enable it to be readily supplied by
Eden India into the Indian market as required.
Hythane, a mixture that in India is specified as 18%
hydrogen and 82% natural gas (by volume), is currently
being rolled out in Greater Delhi where 7,000 natural gas
buses are being converted to operate on Hythane, as a
result of a ruling by the Indian Supreme Court requiring
natural gas buses to only operate on fuels that also
include hydrogen, to assist in improving the air quality in
Greater Delhi. Trials and similar projects in other parts of
India are also being planned.
Additionally, it is understood that the possibility of adding
hydrogen into natural gas pipelines in India is also being
considered as a means of both reducing air pollution
and Greenhouse Gas emissions. Eden India is planning
to manufacture in India all its future blender Hythane®
requirements. Interestingly, a similar hydrogen-enriched
natural gas project is also reportedly being planned in the
north east of the USA.
Hydrogen – European interest
During the year, further discussions took place with
a European chemical company with which Eden, in
2019, conducted joint laboratory trials, in relation to
a possible collaboration involving the use of Eden’s
proprietary pyrolysis process for production of both
turquoise hydrogen and carbon nanotubes. These recent
discussions are ongoing.
In addition to its existing EdenCrete® products, Eden’s
long-term strategic plan is to develop global markets for
a range of other products (including EdenPlast®) that will
collectively use sufficient CNT to support the development
of a commercial scale, turquoise hydrogen programme
based upon Eden’s efficient, low cost, patented,
commercialised and proprietary methane pyrolysis
process.
13
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX 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 2022.
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 26 July 2022 6,400,000 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 2 August 2022 the board of directors resolved to sell
the 65-acre industrial property in Augusta, Georgia.
On 10 August 2022 Eden US, support by Eden Australia,
finalised a transaction replacing the two earlier secured
loans (totalling US$3.365 million) secured against Eden’s
US real estate assets, with a new secured loan from
iBorrow REIT LP of US$6.475 million, which represents less
than 55% of the recently re-appraised values of Eden’s
three US properties. The new loan carries an interest rate
of 9.75% p.a. The new loan is for 11 months (to 29 June
2023) and with an extension option to 29 June 2024. After
repaying the two existing secured loans, payment of all
expenses and commissions, and establishing reserves
to cover future interest payments, real estate taxes and
insurance, approximately US$1.7 million (A$2.45million)
of additional working capital for Eden was generated by
this transaction, supplementing the revenue stream being
received from increasing product sales.
On 12 August 2022 the Company issued 94,375,000 EDE
shares and 94,375,000 free attaching EDEOC options to
investors at $0.008 per share raising $755,000 before
costs. Brokers were paid a 6% placement fee and received
7,000,000 EDEOC options.
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.
Environmental Issues
The Group is subject to environmental regulation and
complies fully with all requirements.
Directors
The names of directors in office at any time during or since
the end of the year are:
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 14 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.
Operating Results
The consolidated loss of the Group after providing for
income tax amounted to $6,646,577 (2021: $5,758,759).
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 2022 is set out in the Review of Operations
on Page 5.
Financial Position
The net assets of the consolidated group have increased
from $18,140,732 at 30 June 2021 to $19,485,079
at 30 June 2022. The group’s working deficit, being
current assets less current liabilities, has increased from
($1,085,283) at 30 June 2021 to ($1,159,248)
at 30 June 2022.
14
Annual Report 2022ASX Code: EDE
Information on Directors
Gregory H Solomon
Executive Chairman
Qualifications
Experience
Interest in Shares and Options
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.
55,293,891 Ordinary Shares, 1,890,392 EDEO Options, 3,071,884 EDEOC
Options
Directorships held in other listed entities
Tasman Resources Limited (ASX:TAS)
Conico Limited (ASX:CNJ)
Douglas H Solomon
Non-Executive Director
Qualifications
Experience
Interest in Shares and Options
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.
47,465,292 Ordinary Shares, 1,622,747 EDEO Options, 2,636,962 EDEOC
Options
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
7,497,334 Ordinary Shares
Directorships held in other listed entities
-
15
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
DIRECTORS’ REPORT (Continued)
Stephen D Dunmead
Non-Executive Director
Qualifications
Experience
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
8,497,334 Ordinary Shares
Directorships held in other listed entities
-
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
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.
Performance-based remuneration
No performance based remuneration was paid during
the year.
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.
16
Annual Report 2022ASX 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
Innovations LLC
Roger Marmaro
Aaron P Gates
President & CEO - Eden
President – Sales –
Eden Innovations LLC
(left November 2020)
Company Secretary /
Chief Financial Officer
Meetings of Directors
During the financial year, 6 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
6
6
6
6
6
6
4
6
17
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX 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
$
$
$
$
$
$
$
$
$
$
2022
Gregory Solomon
300,000
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead(a)
54,000
54,000
54,000
-
-
-
-
Don Grantham Jr(c)
420,982
16,834
Roger Marmaro(d)
Aaron Gates
-
(b)
-
-
882,982
16,834
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28,500
5,130
-
-
25,356
-
-
58,986
28,500
5,130
-
-
21,607
10,312
-
65,549
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,000
32,000
182,567
-
26,760
273,327
-
-
32,000
32,000
167,216
-
-
231,216
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
328,500
59,130
86,000
86,000
645,739
-
26,760
1,232,129
328,500
59,130
86,000
86,000
611,236
189,915
1,353
1,353
1,353
1,362,134
Other transactions with key management personnel
Management fees of $300,000 were charged during the
year and $75,000 was payable to Princebrook Pty Ltd, a
company in which Mr GH Solomon and Mr DH Solomon
have an interest.
Legal fees of $32,956, 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 was charged $300,000
(2021: $300,000) 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.
18
Annual Report 2022ASX Code: EDE
Number of Options Held by Key Management Personnel
Balance
30.6.2021
Granted as
Compen-
sation
Options
Exercised
Net Change
Other*
Balance
30.6.2022
Total Vested
30.6.2022
Total
Exercisable
30.6.2022
Total Unexer-
cisable
30.6.2022
Gregory Solomon
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead
-
-
-
-
Don Grantham Jr
1,000,000
Aaron Gates
-
Total
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,962,276
4,962,276
4,962,276
4,962,276
4,259,709
4,259,709
4,259,709
4,259,709
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
1,000,000
-
-
-
9,221,985
10,221,985
10,221,985
10,221,985
-
-
-
-
-
-
-
* 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 30.6.2021
Received as
Compensation
Lapsed
Cancelled
Balance 30.6.2022
Gregory Solomon
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead
Don Grantham Jr
Aaron Gates
Total
-
-
-
-
-
1,800,000
1,800,000
-
-
-
-
-
-
-
Number of Shares held by Key Management Personnel
-
-
-
-
-
-
-
-
-
-
-
-
(1,800,000)
(1,800,000)
-
-
-
-
-
-
-
Balance 30.6.2021
Received as
Compensation
Options Exercised
Net Change Other*
Balance 30.6.2022
Gregory Solomon
Douglas Solomon
Lazaros Nikeas
Stephen Dunmead
Don Grantham Jr
Aaron Gates
45,369,342
38,945,878
2,920,760
3,920,760
5,000,000
192,500
Total
96,349,240
-
-
1,376,574
1,376,574
5,000,000
1,200,000
8,953,148
-
-
-
-
-
-
-
9,924,549
8,519,414
-
-
-
-
55,293,891
47,465,292
4,297,334
5,297,334
10,000,000
1,392,500
18,443,963
123,746,351
* Net Change Other refers to shares purchased or sold during the financial year.
Unissued shares under options
At the date of this report, the unissued ordinary shares of Eden Innovations Ltd under option are as follows:
19
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
DIRECTORS’ REPORT (Continued)
Issue Date
Various
20 December 2019
2 December 2020
Various
10 June 2022
Date of Expiry
11 December 2022
19 December 2022
1 December 2023
7 October 2024
28 April 2025
Exercise Price
Number under Option
$0.05
$0.065
$0.04379
$0.05
$0.026
49,543,744
1,000,000
6,850,762
111,869,645
77,270,989
246,535,140
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 there was no unissued shares of the Group under performance rights (2021: 27,304,014).
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 30 day of August 2022
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 $84,400.
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 2022.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year
ended 30 June 2022 has been received and can be found
on page 21.
20
Annual Report 2022ASX 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 2022 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
30 August 2022
21
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2022
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
2
3
2022
$
2021
$
4,149,161
3,282,822
853,001
615,244
7,380
1,211,995
(1,938,975)
(2,159,214)
(1,410,079)
(1,278,892)
4a
(4,772,216)
(4,156,472)
5
8
(744,676)
(695,895)
(300,000)
22,531
(2,086,013)
(338,660)
(747,810)
(614,303)
(300,000)
105,115
(946,245)
(163,135)
(6,646,577)
(5,758,759)
-
-
(6,646,577)
(5,758,759)
812,360
(890,420)
812,360
(890,420)
-
(5,834,217)
(6,649,179)
Basic/Diluted loss per share (cents per share)
7
(0.2952)
(0.2912)
The accompanying notes form part of these financial statements.
22
Annual Report 2022ASX Code: EDE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
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
2022
$
2021
$
10
11
12
13
14
15
16
15
17
21
1,553,106
2,175,637
730,479
568,709
2,563,345
1,840,582
188,309
163,083
5,035,239
4,748,011
10,764,137
10,607,478
9,987,272
9,123,044
20,751,409
19,730,522
25,786,648
24,478,533
949,665
755,188
4,911,084
4,771,126
116,194
217,544
135,639
171,341
6,194,487
5,833,294
-
107,082
107,082
486,143
18,364
504,507
6,301,569
6,337,801
19,485,079
18,140,732
121,603,612
114,736,287
9,943,493
8,819,894
(112,062,026)
(105,415,449)
19,485,079
18,140,732
23
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR
YEAR ENDED 30 JUNE 2022
Fully Paid
Ordinary
Shares
Share based
payment
Reserve
Consolidated Group
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Accumulated
Losses
Total
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
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 2022
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
6,867,325
-
-
-
-
-
311,239
-
-
-
-
-
-
-
-
6,867,325
311,239
(6,646,577)
(6,646,577)
812,360
-
812,360
812,360
(6,646,577)
5,834,217
121,603,612
8,720,285
1,223,208 (112,062,026)
19,485,079
The accompanying notes form part of these financial statements.
24
Annual Report 2022ASX Code: EDE
CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2022
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
2021
$
2022
$
19
12
13
4,246,679
3,184,141
(9,914,151)
(8,293,187)
-
-
(371,362)
(444,289)
4,423
5,808
(6,034,411)
(5,547,527)
(36,552)
(459,981)
(1,443,116)
(1,449,268)
(1,479,668)
(1,909,249)
5,725,650
8,823,011
1,170,711
-
(120,600)
(372,555)
6,775,761
8,450,456
(738,318)
993,680
115,787
(206,726)
2,175,637
1,388,683
10
1,553,106
2,175,637
25
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1:
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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 2022. 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 30 August
2022 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.
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
22 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.
Basis of Preparation
b. Income Tax
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
$6,646,577 (2021: $5,758,759) and a cash outflow from
operating activities of $6,034,411 (2021: $5,547,527).
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
cast significant doubt about the Group’s ability to continue
as a going concern.
26
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.
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.
Annual Report 2022ASX Code: EDE 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.
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:
27
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(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.
28
Annual Report 2022ASX 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
4b for the inputs to the Black-Scholes model.
29
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 2: REVENUE
Operating activities
-
-
EdenCrete® sales
OptiBlend® sales and services
Total revenue
NOTE 3: OTHER INCOME
Debt forgiveness
Interest
Total other income
NOTE 4: 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
2022
$
2021
$
1,599,707
2,549,454
4,149,161
1,754,921
1,527,901
3,282,822
2022
$
849,521
3,480
853,001
2021
$
-
7,380
7,380
2022
$
2021
$
(4,025,488)
(4,034,107)
(197,473)
(549,255)
(200,385)
78,020
(4,772,216)
(4,156,472)
Included under employee benefits expense in the statement of profit or loss and other comprehensive income is
$549,255 (2021: credit $78,020) which relates, in full, to equity settled share-based payment transactions.
Nil relates to options (2021: Nil), $549,255 relates to shares (2021: $231,216) and Nil relates to performance rights
(2021: credit $309,236).
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.
30
Annual Report 2022ASX Code: EDE
2022
2021
Number of Options
Weighted Average
Exercise Price
$
Number of Options
Weighted Average
Exercise Price
$
1,000,000
0.065
1,330,000
-
-
-
1,000,000
1,000,000
-
-
-
0.065
0.065
-
-
(330,000)
1,000,000
1,000,000
0.111
-
-
0.25
0.065
0.065
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 2022 had a weighted average exercise price of $0.065 and a weighted average
remaining contractual life of 0.5 years. No options were exercised during the year ended 30 June 2022.
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.
Performance rights
During the year, 23,303,013 performance rights were cancelled and shares were issued in consideration. 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.
Outstanding at the beginning of the year
Cancelled
Granted
Exercised or Lapsed
Outstanding at year-end
Number of Performance Rights
2022
Number of Performance Rights
2021
27,304,014
(23,303,013)
-
(4,001,001)
-
26,391,012
(19,481,010)
27,304,014
(6,910,002)
27,304,014
31
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 5: OTHER FINANCIAL ITEMS
Foreign exchange gain / (loss)
Total
NOTE 6: 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 7: 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
2022
$
22,531
22,531
2021
$
105,115
105,115
43,425
-
75,086
-
-
32,294
-
73,183
-
(0.2952)
(0.2912)
(6,646,577)
(5,758,759)
(6,646,577)
(5,758,759)
b.
Weighted average number of ordinary shares outstanding during the year
used in calculating basic EPS
2,251,292,551
1,977,324,724
The options on issue are not potentially dilutive shares.
32
Annual Report 2022ASX Code: EDE NOTE 8: 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% (2021: 26%)
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
Share based payments
Provisions and accruals
Intangibles
Total unrecognised deferred tax asset
2022
$
2021
$
(1,728,110)
(1,497,277)
46,363
41,056
1,504,843
1,252,411
176,904
-
-
250,097
(46,287)
-
31,754,646
28,354,679
(1,144,693)
(1,128,637)
158,850
543,207
126,978
159,666
453,228
61,146
(3,083,473)
(2,371,991)
28,355,514
25,528,091
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 9: 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 16.
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, $75,000
was payable (2021: $25,000).
Legal fees paid to Solomon Brothers, a firm in which Mr GH Solomon and
Mr DH Solomon are partners. At year end, nil was payable (2021: $833).
2022
$
2021
$
300,000
300,000
32,957
39,210
33
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 10: 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:
2022
$
1,553,106
1,553,106
2021
$
2,175,637
2,175,637
1,553,106
1,553,106
2,175,637
2,175,637
2022
$
2,563,345
2,563,345
2021
$
1,840,582
1,840,582
Land and buildings
Plant and equipment
$
$
Total
$
6,537,410
-
-
596,897
7,134,307
(842,260)
(218,822)
-
(88,633)
(1,149,715)
5,984,592
7,313,264
207,651
(164,261)
561,864
7,918,518
13,850,674
207,651
(164,261)
1,158,761
15,052,825
(2,400,936)
(3,243,196)
(609,134)
116,389
(245,291)
(3,138,972)
4,779,546
(827,956)
116,389
(333,924)
(4,288,687)
10,764,138
Cash and cash equivalents
NOTE 11: INVENTORIES
At cost
NOTE 12: PROPERTY, PLANT AND EQUIPMENT
Cost
Balance 1 July 2021
Additions
Disposals
Net exchange differences
Balance 30 June 2022
Depreciation and impairment
Balance 1 July 2021
Depreciation
Disposals
Net exchange differences
Balance 30 June 2022
Carrying amount at 30 June 2022
34
Annual Report 2022ASX Code: EDE NOTE 12: PROPERTY, PLANT AND EQUIPMENT CONTINUED
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 2020
Carrying amount at 30 June 2021
Land and
buildings
$
Plant and
equipment
$
Total
$
6,913,717
7,892,250
14,805,967
213,955
241,808
455,763
-
(148,052)
(148,052)
(590,262)
6,537,410
(672,742)
(1,263,004)
7,313,264
13,850,674
(693,500)
(2,113,045)
(2,806,545)
(209,227)
(574,093)
(783,320)
-
60,467
106,599
179,603
106,599
240,070
(842,260)
(2,400,936)
(3,243,196)
5,695,150
4,912,328
10,607,478
Capitalised costs amounting to $1,443,116 (2021: $1,449,268) have been included in cash flows from investing activities
in the statement of cash flows for the Consolidated Group.
NOTE 13: INTANGIBLE ASSETS
Intellectual property
Accumulated amortisation
Accumulated impairment expenses
Net carrying value
Balance at the beginning of the year
Additions
Amortisation expense
Carrying amount at the end of the year
2022
$
2021
$
22,229,577
20,745,226
(2,813,785)
(2,193,662)
(9,428,520)
(9,428,520)
9,987,272
9,123,044
9,123,044
1,484,352
(620,124)
9,987,272
8,223,113
1,432,678
(532,747)
9,123,044
Capitalised costs amounting to $36,552 (2021: $459,981) have been included in cash flows from investing activities in the
statement of cash flows for the Consolidated Group.
NOTE 14: TRADE AND OTHER PAYABLES
Trade payables and other payables
2022
$
949,665
949,665
2021
$
755,189
755,189
35
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 15: INTEREST BEARING LIABILITIES
Dumont Way property purchase loan (2nd mortgage over the Dumont Way property,
4% interest rate, denominated in USD and 0.3 years remaining)
SBA Loan (Unsecured, 1% interest rate, denominated in USD)
SnowPoint Loan (Secured over all 3 properties, 11% interest rate,
denominated in USD)
Total current portion
Dumont Way property purchase loan (2nd mortgage over the Dumont Way property,
6% interest rate, denominated in USD and 0.3 years remaining)
Total non-current portion
Total
Opening Balance
Proceeds from borrowing, net of borrowing costs
Repayment of borrowings
Borrowing costs expensed
Loan forgiveness*
FX (gain) / loss
Closing balance
* - Non-cash transaction
NOTE 16: PROVISIONS
Provisions for staff entitlements and warranties
2022
$
530,530
2021
$
-
39,090
843,708
4,341,464
3,927,418
4,911,084
4,771,126
-
-
486,143
486,143
4,911,084
5,257,269
5,257,269
5,998,005
231,137
139,347
(231,137)
(371,922)
131,845
(849,521)
371,491
4,911,084
190,291
-
(698,452)
5,257,269
2022
$
217,544
217,544
2021
$
171,341
171,341
36
Annual Report 2022ASX Code: EDE NOTE 17: ISSUED CAPITAL
a.
Ordinary shares
2022
No.
2021
No.
2022
$
2021
$
At the beginning of reporting period
2,082,852,348
1,723,596,366
114,736,287
105,503,776
Shares issued during the year
402,600,647
359,255,982
6,867,325
9,232,511
At reporting date
2,485,452,995
2,082,852,348
121,603,612
114,736,287
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
2022
No.
2021
No.
69,394,506
83,029,634
189,172,832
68,394,506
(32,198)
(157,735)
(12,000,000)
(81,871,899)
246,535,140
69,394,506
For information relating to the Eden Innovations Ltd employee option plan, refer to Note 4b Share-based Payments.
c.
Performance rights
At the beginning of reporting period
Performance rights cancelled
Performance rights issued
Performance rights exercised or lapsed
At reporting date
2022
No.
2021
No.
27,304,014
26,391,012
(23,303,013)
(16,481,010]
-
27,304,014
(4,001,001)
(9,910,002)
-
27,304,014
For information relating to performance rights granted to directors and employees, refer to Note 4b
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.
37
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 18: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent assets or contingent liabilities at 30 June 2022.
NOTE 19: 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 20: CAPITAL AND LEASING COMMITMENTS
a.
Capital Expenditure Commitments
— not later than 12 months
— greater than 12 months
b.
Other Commitments
2022
$
2021
$
(6,646,577)
(5,758,759)
1,410,079
1,278,892
549,255
(849,521)
200,027
41,453
(50,603)
(78,020)
-
190,290
32,424
225,790
(161,770)
(172,343)
(722,763)
(1,138,801)
(25,226)
194,477
46,203
(19,445)
(64,999)
(26,586)
(8,972)
(26,443)
(6,034,411)
(5,547,527)
2022
$
2020
$
-
-
-
-
-
-
The Group had commitments over the next 12 months of approximately $20,000 relating to low-value
short-term leases.
NOTE 21: 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 4B 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.
38
Annual Report 2022ASX Code: EDE Country of
Percentage Owned (%)*
Incorporation
India
Australia
USA
USA
2022
100
100
100
100
2021
100
100
100
100
NOTE 22: 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 23: 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
Net Assets
Equity
Issued Capital
Retained Earnings
Share-based payment reserve
Total Equity
Financial performance
Profit / (Loss) for the year*
Other comprehensive income, net of tax
Total comprehensive income / (Loss)
2022
$
2021
$
449,514
483,289
19,411,436
17,851,475
19,860,950
18,334,764
375,870
375,870
194,032
194,032
19,485,090
18,410,743
121,603,612
114,736,287
(110,834,067)
(104,999,850)
8,715,545
8,404,306
19,485,090
18,140,743
(5,834,217)
(6,649,178)
-
-
(5,834,217)
(6,649,178)
* - The loans to and investment in subsidiaries have been assessed for impairment and an impairment expense of
$3,073,857 (2021: $4,347,658) 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.
39
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
(Continued)
NOTE 24: EVENTS AFTER THE BALANCE SHEET DATE
On 26 July 2022 6,400,000 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 2 August 2022 the board of directors resolved to sell the 65-acre industrial property in Augusta, Georgia.
On 10 August 2022 Eden US, support by Eden Australia, finalised a transaction replacing the two earlier secured loans
(totalling US$3.365 million) secured against Eden’s US real estate assets, with a new secured loan from iBorrow REIT LP
of US$6.475 million, which represents less than 55% of the recently re-appraised values of Eden’s three US properties.
The new loan carries an interest rate of 9.75% p.a. The new loan is for 11 months (to 29 June 2023) and with an extension
option to 29 June 2024. After repaying the two existing secured loans, payment of all expenses and commissions, and
establishing reserves to cover future interest payments, real estate taxes and insurance, approximately US$1.7 million
(A$2.45million) of additional working capital for Eden was generated by this transaction, supplementing the revenue
stream being received from increasing product sales.
On 12 August 2022 the Company issued 94,375,000 EDE shares and 94,375,000 free attaching EDEOC options to investors
at $0.008 per share raising $755,000 before costs. Brokers were paid a 6% placement fee and received 7,000,000 EDEOC
options.
There were no other material events occurring after the reporting date.
40
Annual Report 2022ASX Code: EDE NOTE 25: 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.
Eden Innovations
LLC
Eden Innovations
India Pvt Ltd
Eliminations
Consolidated
Entity
$
$
$
$
2,983,015
53,332
3,036,347
(3,733,698)
1,166,146
-
1,166,146
668,767
(53,332)
(53,332)
(146,147)
-
4,149,161
2022
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
13,727,174
1,622,688
(9,598)
5,834,022
233,009
-
104,361
789,956
-
1,107
-
-
1,484,352
620,123
-
-
4,149,161
(3,211,068)
(2,690,833)
(5,901,901)
(744,676)
(6,646,577)
-
(6,646,577)
15,340,264
10,446,384
25,786,648
6,067,031
234,537
6,301,568
1,589,820
1,410,079
-
41
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
(Continued)
NOTE 25: SEGMENT REPORTING (CONTINUED)
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
-
42
Annual Report 2022ASX Code: EDE NOTE 26: 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
2022
$
2021
$
5,860,749
5,528,616
-
496,556
5,860,749
6,025,172
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 2022, 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 $400,000 (2021: decrease of loss of $420,000) and a decrease in equity by approximately
$530,000 (2021: $440,000). 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.
43
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE NOTE 27: 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
44
Annual Report 2022ASX Code: EDE DIRECTORS’ DECLARATION
In the opinion of the directors of Eden Innovations Ltd:
a. the financial statements and notes set out on pages 22 to 44, and the Remuneration disclosures that are contained in
pages 16 to 19 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 2022 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 16 to 19 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 2022.
This declaration is made in accordance with a resolution of the Board of Directors.
_________________________________
Gregory H Solomon
Executive Chairman
Dated this 30th day of August 2022
45
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX 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 2022, 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 2022 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 Relating to Going
Concern section, we have determined the matter described below to be the key audit matter to be
communicated in our report.
46
46
Annual Report 2022ASX 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 2022 the Group’s EdenCrete® and
Optiblend® cash generating units
(CGUs)
comprised Plant and equipment (P&E) and
Intangible Assets. The total carrying values of
P&E and Intangible Assets as at 30 June 2022
(2021:
were,
$10,607,478)
(2021:
$9,123,044).
$10,764,137
$9,987,272
respectively,
and
Impairment was assessed by the Group at the
CGU level by considering whether impairment
indicators were present as at 30 June 2022.
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
the Group's
We performed the following procedures, amongst
impairment
others,
assessment:
▪
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 2022, 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.
47
47
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX 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.
48
48
Annual Report 2022ASX 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 16 to 20 of the Directors’ Report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Eden Innovations Limited for the year ended 30 June 2022,
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
30 August 2022
49
49
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The following additional information is required by the Australian Securities Exchange Ltd.
1. Shareholding as at 15 August 2022
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
b.
c.
The number of shareholdings held in less than marketable parcels is 4,054.
The names of the substantial shareholders listed in the holding company’s register
as at 15 August 2022 are:
Shareholder
Noble Energy Pty Ltd
d.
Voting Rights
Number
Ordinary
% Issued
Capital
239
675
643
3,024
2,378
6,959
0.00%
0.09%
0.20%
5.04%
94.68%
100%
Number
Ordinary
770,100,784
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
50
Number of
Shares
715,420,065
54,680,719
39,928,171
35,304,338
21,659,985
20,810,441
19,406,870
16,000,000
13,500,000
12,608,555
12,500,000
12,197,025
12,178,000
12,000,000
11,893,613
11,804,742
11,260,313
10,475,166
10,000,000
8,497,334
1,062,125,337
% Issued
Capital
27.66%
2.11%
1.54%
1.37%
0.84%
0.80%
0.75%
0.62%
0.52%
0.49%
0.48%
0.47%
0.47%
0.46%
0.46%
0.46%
0.44%
0.41%
0.39%
0.33%
41.07%
Annual Report 2022ASX Code: EDE ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
e.
20 Largest Optionholders — EDEO
Name
Noble Energy Pty Ltd
Citicorp Nominees Pty Ltd
Lemaire Wealth Pty Ltd
1.
2. Mr John Jarvis
3. Mr Frazer McGinn
4.
5. Mr Daniel Tuckett
6. Mr MD Muntasir Billah
7.
8. Mr Ramin Vahdani
9. Matthew Burford Superfund Pty Ltd
10. Aluba Pty Ltd
11. Taylor-Stevenson Corporation Pty Ltd
12. Noble Energy Pty Ltd
13. Mr Malcom Anderson
14. Mr Kevin Leary + Mrs Helen Leary
15. Arkenstone Pty Ltd
16. DVR Invest Pty Ltd
17. Mr Paul Frost
18. Mr Gregory Miller
19. Mrs Svjetlana Bjeljac
20. Mrs Svjetlana Bjeljac + Mr Alis Trakilovic
Number of
Shares
24,458,806
16,000,000
4,387,547
4,069,906
3,992,500
2,855,862
2,597,060
2,293,060
2,272,727
2,000,000
2,000,000
1,869,427
1,500,000
1,409,090
1,365,066
1,125,000
1,062,990
1,053,176
1,000,000
1,000,000
78,312,217
% Issued
Capital
21.86%
14.30%
3.92%
3.64%
3.57%
2.55%
2.32%
2.05%
2.03%
1.79%
1.79%
1.67%
1.34%
1.26%
1.22%
1.01%
0.95%
0.94%
0.89%
0.89%
70.00%
51
Eden Innovations Limited and Controlled Entities ABN 58 109 200 900Annual Report 2022ASX Code: EDE ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Number of
Shares
39,745,560
15,500,000
10,000,000
7,000,000
6,250,000
6,000,000
5,643,750
5,000,000
5,000,000
5,000,000
3,750,000
3,125,000
3,037,818
3,000,000
3,000,000
2,750,000
2,500,000
2,500,000
2,500,000
2,500,000
133,802,128
% Issued
Capital
22.25%
8.68%
5.60%
3.92%
3.50%
3.36%
3.16%
2.80%
2.80%
2.80%
2.1%
1.75%
1.70%
1.68%
1.68%
1.54%
1.40%
1.40%
1.40%
1.40%
74.90%
Number
on issue
49,543,744
6,850,762
1,000,000
57,394,506
Number of
holders
112
1
1
120
e.
20 Largest Optionholders — EDEOC
Name
Rotherwood Enterprises Pty Ltd
Morsec Nominees Pty Ltd
Safinia Pty Ltd
Noble Energy Pty Ltd
Saba Nominees Pty Ltd
Yucaja Pty Ltd
180 Markets Pty Ltd
1.
2.
3.
4.
5. Matthew Burford Superfund Pty Ltd
6.
7.
8.
9. Mr Christopher Richards + Mrs Linnet Richards
10. Hirsch Financial Pty Ltd
11. Mr Mark Tkocz
12. ABN Amro Clearing Sydney Nominees Pty Ltd
13. Noble Energy Pty Ltd
14. Riya Investments Pty Ltd
15. North of the River Investments Pty Ltd
16. Comsec Nominees Pty Ltd
17. Blue Heeler Capital Pty Ltd
18. DSL Trading Company Pty Ltd
19. Mr Engleman Chau
20. Pastro Holding Pty Ltd
2.
Unquoted Securities – Options as at 15 August 2022
Holder Name
Date of Expiry
Exercise Price
Various
LS Whitehall Group Inc
Don Grantham Jr
11 December 2022
1 December 2023
19 December 2022
$0.05
$0.04379
$0.065
52
Annual Report 2022ASX Code: EDE Construction of EdenCrete® enriched concrete retaining walls on Central 70 project in Denver, Colorado
www.edeninnovations.com
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