ANNUAL
REPORT
FOR THE YEAR ENDED
31 DECEMBER 2021
Fertoz limited | 1
CORPORATE DIRECTORY
DIRECTORS
Mr. Patrick Avery – Executive Chairman
Mr. James Chisholm – Non-Executive Director
Mr. Stuart Richardson – Non- Executive Director
Mr. Justyn Stedwell – Non-Executive Director (Resigned on 14 February 2022)
Mr. Greg West – Non-Executive Director (Appointed on 14 February 2022)
COMPANY SECRETARY
Mr. Justyn Stedwell (Resigned on 14 February 2022)
Ms. Nova Taylor and Ms Rebecca Woodman (Appointed on 14 February 2022)
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
Level 5, 126 Phillip Street,
Sydney NSW 2000
SHARE REGISTER
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston St
Abbotsford VIC 3067
AUDITOR
BDO Audit Pty Ltd
Level 10,
12 Creek Street
Brisbane QLD 4000 Australia
CANADIAN LAWYERS
Ontario Lawyers
Peterson Law Professional Corporation
390 Bay Street, Suite 806
Toronto, Ontario, Canada, M5H
AUSTRALIAN LAWYERS
Sierra Legal Pty Ltd.
Level 5, 9 Sherwood Road
Toowong QLD 4066
BANKERS
Commonwealth Bank of Australia Ltd
STOCK EXCHANGE
Fertoz Limited shares are listed on the Australian
Securities Exchange (ASX code: FTZ)
WEBSITE
www.fertoz.com
2 | Fertoz limited
CONTENTS
Corporate Directory
Chairman’s Message
Operations Review
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder information
2
4
6
26
28
29
30
31
32
53
54
58
Fertoz limited | 3
CHAIRMAN’S MESSAGE
Dear Fellow Shareholder,
I am pleased to present the 2021 Annual Report for Fertoz Limited (ASX:
“and “Nutrient Vigour Plus” providing the 4 major nutrients in agricultural
FTZ) and provide an overview of our achievements for the financial year.
inputs, namely nitrogen, phosphate, potassium, and sulphur, all
We made significant progress during 2021 in fertiliser sales, strategy
certified organic. Further efforts we announced throughout 2021 added
development, marketing reach, joint ventures and establishing the new
partnerships and new distributorships, all setting the fertiliser group up
division Fertoz Carbon. The Group remains focused on developing a
for a strong 2022 year ahead.
sustainable land management company with ESG leadership focused on
developing two clearly defined business units: organic farm inputs and
nature-based carbon credit generation from projects developed and
managed by Fertoz Carbon.
Fertoz Carbon started strongly with two drone seeded forestry trials
completed in British Columbia, Canada and West Virginia, USA and
the first “carbon-in-soil” protocols successfully registered in Canada.
Mr Derek Squair, an experienced carbon expert and agronomist was
Fertoz achieved record fertiliser sales in 2021 and established the Fertoz
appointed head of Fertoz Carbon.
Carbon division in May 2021.
Fertoz Carbon announced the first partnerships in July 2021 to accelerate
Fertiliser sales recorded in North America were at record levels including
the development of this new growth opportunity. MOU’s were signed
extracting 8,000 tonnes from our Fernie, BC (British Colombia, Canada)
(which subsequently have developed into operating agreements)
deposit, and the Montana and Mexico stockpiles adding valuable high-
with Trimble Inc (NASDAQ: TRMB) to provide software and consulting
quality ore to the sales mix. Solid sales volumes achieved in the Australia/
assistance to establish carbon protocols focused on carbon in annual
Asian operation contributed to the result.
The fertiliser division continues to expand, with the addition of two
new sales personnel in the USA expanding the geographic reach of our
sales team. We formed an exciting new partnership with Western Alfalfa
row crops and soils. These protocols will utilise Trimble’s blockchain for
secure reporting of all farm acres signed to a range of planned protocols
designed to provide additional income to farmers and to improve soil
health wherever the practices are adopted, ultimately globally.
Milling Company (WAMCO) to develop and produce North America’s first
The first protocol was announced in December 2021, a “no-till
full spectrum organic approved NPKS fertiliser for use in regenerative and
conservation protocol” allowing Canadian farmers to generate carbon
sustainable agricultural applications. This is a North American first and
credits through environmentally friendly no-till practices. Rollout across
paves the way to boost sales with the branding labelled “Nutrient Vigour
Canada commenced in late 2021 with acres being signed up in Q1 2022
and expanding. All nature-based carbon credits managed by Fertoz
and generated under this protocol are tracked, measured, verified,
and registered to the Canadian central registry and enter the voluntary
market with Microsoft (NASDAQ: MSFT) the contracted buyer of these
nature-based carbon credits managed by Fertoz Carbon.
4 | Fertoz limited
Fertoz Carbon partnered with both Brightspot and DataPLP to provide
Protocols in development include:
consulting services in carbon sequestration programs. Brightspot, a
leading Canadian consultancy, will work closely with Fertoz Carbon
to develop projects through to verification stage, applying innovative
solutions that in turn assist in mitigating climate change. DataPLP, a data
services company, will provide valuable proprietary software used to
evaluate satellite data across the agricultural and environmental space,
generating valuable analytics for better project level decision making.
As Fertoz enters 2022, we are witnessing a volatile start to the year
in the agricultural sector in all the markets in which the Company
operates. According to commodity consulting group CRU, prices for
raw materials that constitute the conventional, synthetic fertilizer
marketplace - ammonia, nitrogen, phosphates, potash, and sulphates
- are all up approximately 30% since the start of 2022. Further to this,
•
Nitrous Oxide Reductions Program (NERP) with encouraged use of
Fertoz organic, sustainable, low carbon nitrogen fertilizers.
•
Protocols that encourage the use of cover crops to mitigate the use
of synthetic nitrogen fertilizer, reduce nitrous oxide emissions, and
sequester and lock carbon into the soil.
•
Using rock phosphate to increase crop production, yield, and
sequester carbon.
•
Replacing ammonium phosphate fertilizer with rock phosphate to
encourage scope 3 carbon emissions reductions upstream at the
manufacturing level.
since the beginning of 2020, nitrogen fertiliser prices have increased up
•
Livestock methane emission reductions protocol through altered
to fourfold, while phosphate and potash prices are up over threefold.
cattle feed and supplementation
The group’s research is discussed in more detail at this link:
https://www.cnbc.com/2022/03/22/fertilizer-prices-are-at-record-
highs-heres-what-that-means.html
In the wake of Russia’s invasion of Ukraine, the world is experiencing
price spikes dominated by energy, providing a supply shock to the
synthetic fertiliser manufacturers resulting in surging fertiliser prices.
Wheat and grain prices have both soared, feeding through the supply
•
Full cycle canola strategy that is developed through various
connections among shareholders including canola producers,
grain elevators/processors, food and feed suppliers, biodiesel
manufacturers and cattle producers.
Every aspect of Fertoz’s business is directed towards improving
environmental outcomes and the sustainability of all markets in which
chain to a material increase in the price of food to the consumer.
we operate.
Transport both in trucking and rail has been disrupted across North
America, part impacted by COVID and part rising energy / diesel costs,
I would like to thank shareholders for their support over 2021 and
resulting in escalating transport costs and ongoing inefficiencies in the
welcome new shareholders who participated in the $5.0 million
transport supply chain.
Fertoz is capitalising on the fact that North America is heavily reliant
on the importing of phosphate rock from countries including Morocco,
South America, Russia and Saudi Arabia. Fertoz supplies the North
American farm sector from deposits and stockpiles located close to
the farming customer and is beginning to display this competitive
advantage, as sales in Q1 2022 are materially higher year-on-year.
Management remains confident that these trends should see 2022
exceed the 2021 year with a record volume of fertiliser sales.
The carbon division has already signed acres under the no-till protocol
and as such Fertoz Carbon is developing a recurring income stream
for the Group. The carbon team is working hard to bring additional
protocols to market in 2022 and also commence commercial carbon
forestry projects in 2022.
capital raising conducted in July 2021, providing valuable expansion
capital to the Group. As Fertoz expands its products and offerings and
grows the employee headcount to drive the Company’s growth plans,
management and the Board of Directors remain focused on delivering
earnings growth and positive cash generation in FY2022 and beyond.
Pat Avery
Executive Chairman
Fertoz Limited
Fertoz limited | 5
OPERATIONS REVIEW
COMPANY OVERVIEW
GLOBAL TEMPERATURE & CARBON DIOXIDE
Fertoz Limited (ASX: FTZ) is a sustainable land management company.
Fertoz provides investors with exposure to growth in the organic
food sector and a direct exposure to the carbon markets as an
emerging project developer and manager of carbon projects globally.
Management has focused on developing a significant organic farm
inputs business and establishing a growing nature-based carbon credit
portfolio from developed and managed carbon projects.
C
+1.1
(1.98 F)
+0.9
+0.7
+0.5
+0.3
+0.1
-0.1
-0.3
TEMPERATURE
CARBON DIOXIDE
PPM
410
390
370
350
330
310
290
270
1880
2019
Global temperature anomalies averaged and adjusted to early industrial
baseline (1881-1910) Global annual average carbon dioxide
Source: https://assets.climatecentral.org/images/uploads/
gallery/2020Drawdown_TempCO2_en_title_lg.jpg
A key factor driving Fertoz’s entry into global carbon markets and
project development has been the setting of the “net zero” targets
by 2050 by governments and companies worldwide. This is no longer
the domain of scientists or environmental groups. In a bid to limit
global warming governments, companies and investors are making
commitments to reach these “net zero” targets staged by 2030 and
zero by 2050.
Fertoz is positioning its carbon division to develop and manage both
farm based and reforestation carbon projects, generating valuable
nature-based carbon credits. The Fertoz board believe that high
quality credits will remain an important tool in decarbonisation efforts,
compounding the favourable supply and demand dynamics of this
emerging industry.
ESG FOCUS
Fertoz’s focus will develop well beyond just developing carbon credits.
Fertoz carbon projects will improve livelihoods through better land
management practices and traceable food supply chains, ultimately
reducing or eliminating the use of chemicals in the farming sector.
Reforestation will empower local villages and communities with
employment opportunities and provide for funding streams (from
carbon credit sales) and community infrastructure benefits. The
reforestation projects will also have a strong focus on restoring
biodiversity and animal life, improving soil erosion and improving
water quality.
FERTOZ LIMITED ORGANISATIONAL CHART
ORGANIC
FERTILIZER
INPUTS
FERTOZ
CARBON
SOLUTIONS
Fertoz
International
(North America)
Carbon in soil
and plants
Australia/Asia
Livestock
Emissions
Reforestation
Projects
Carbon
trading
6 | Fertoz limited
Fertoz’s board and management continue to focus on the needs of
key stakeholders, farmers, partner groups, the environment, local
communities and our employees and shareholders.
PLANET
Formation of Fertoz
Carbon to directly
combat climate change
Fertoz is partnering with farmers and landowners to
fundamentally change agriculture and land management
for the better.
PROSPERITY
Partnership approach ensures
wealth distribution and
personal opportunity
Fertoz products improve soil health, increase plant growth
and thus sequester more carbon in the soil and in the plant,
whether that soil and those plants are on farms, in forests or
grazing land for cattle
GOVERNANCE
Risk management, advisory
board to be established
PEOPLE
Diversity, inclusion,
pay equality, health,
safety and training
COMPETITIVE ADVANTAGES
1.
Fertoz has secured the majority of high grade, low impurity rock
phosphate deposits in North America and has had those deposits
certified organic at all the key Federal and State Authorities.
2.
The phosphate deposits/stockpiles contain significant tonnage to
meet decades of anticipated supply and demand
3. Our facilities and contracted processing facilities throughout
western North America are located close to a huge grower base
4.
Fertoz’s 8+ years running multiple crop and soil trials gives us an
important understanding and advantage to develop protocols
for registration with carbon regulators focusing on plant and soil
sequestration advantages utilising best practice regenerative and
sustainable farming methods
5.
Fertoz is rapidly advancing carbon program protocols, contracts
with our partner Trimble, contracts with fertilizer dealers and
growers that purchase our rock phosphate products.
We have an inputs business and years of lab tests, soil tests, trials
and actual production on farms – we can prove the benefits of
using our products and we now offer additional services in carbon
management, carbon credit generation and trading
Our products increase plant growth and thus CO2 sequestration;
our products can be blended with synthetic/conventional
fertilizers to reduce overall CO2 emissions (1t of nitrous oxide from
conventional nitrogen fertilizers is equivalent to 296t of CO2)
Importantly, our products facilitate discussions in carbon
emissions reduction – from sequestering more CO2 from plant
growth, to reforesting unused areas on farms, to improving the
efficiency of cattle production thus reducing methane emissions
from herds (1t of methane is equivalent to 25t of CO2)
Fertoz limited | 7
PROCESSING ORE IN
BUTTE, MONTANA USA
FERTILISER DIVISION
North America
Fertoz Limited (ASX: FTZ) is a sustainable land management company.
Fertoz provides investors with exposure to growth in the organic
food sector and a direct exposure to the carbon markets as an
emerging project developer and manager of carbon projects globally.
Management has focused on developing a significant organic farm
inputs business and establishing a growing nature-based carbon credit
portfolio from developed and managed carbon projects.
Fertoz North America ended 2021 achieving record annual sales in line
with the budgeted 10,000 tonnes, delivering year-on-year (YoY) growth
in excess of 240% in tonnes sold in 2021. Sales revenue was a record
$2.09 million. Included in the $2.09 million is $943,000 of sales income
that has been offset against capitalised exploration and evaluation
expenditure, as the sale of this product is part of the bulk sampling
and evaluation phase for the tenements from which it was taken. This
accounting treatment is in accordance with Australian accounting
standards.
Inventory mined and held over to the 2022 season was a record 16,000
tonnes, ensuring adequate fertilizer for Q1/Q2 2022. The granulator
currently being installed at the Centennial site in Butte, Montana will
commence granulation of rock phosphate for sale from May 2022
Fertoz continues to develop various product blends to suit different
customer demands, soil conditions and regional applications.
Fertoz now markets 15 blends in North America from various sized rock
phosphate, granulated rock phosphate, finemesh powder for fertigation
applications and the recently launched organic NPKS range of blends.
Launching in 2022 will be a range of Humi (K) phosphate blends aimed
at improving soil health, increasing soil microbiology and activity
including increasing carbon in the soil.
Fertoz has increased 2022 pricing across the range of blends by
approximately 20%, recognising increased processing and transport
costs and challenges in supply chain logistics. Fertoz is investigating
more cost-effective solutions including rail to ease cost pressures on
farmers. This will result in savings delivered to buyers and make Fertoz
more widely available to large dealer networks and partner distributors
for organic fertilisers.
Fertoz will continue to expand its market share of organic acres in
North America and increasingly push into regenerative and sustainable
fertiliser solutions targeting conventional farming operations and
offering a superior environmental solution to farmers substituting the
use of chemically developed synthetic fertilisers.
Australia and Asia Operations
onwards. This facility will materially improve margins on granulated
Fertoz’s operation in Australia and the Asia-Pacific is known as Fertoz
sales moving forward.
Agricultural Pty Ltd (FertAg).
The Fernie mine located in British Columbia (BC), Canada received a
The business finished 2021 with an EBIT of $45,000 for Australia /
renewed bulk mining permit for 8,000 tonnes in 2021 and extracted
Asia. This was down slightly against the budget of $56,000 but was still
7,000 tonnes under this permit for the year utilising contract mining
a great result considering the ongoing COVID difficulties in shipping
services. The Fernie ore was trucked and processed at McNally’s, Bow
product from Vietnam. It was not possible to ship any product in the
Island, BC Canada ready for on sale to customers. Fertoz anticipates
December 2021 quarter due to lack of availability of shipping. All stock
potentially doubling ore mined in 2022, driven by strong customer
on hand was sold by the end of November 2021. Sales revenue for
demand for phosphate.
A pleasing aspect of the 2021 year was the breadth of customers
the year was 75% of budget. The low revenue was offset by tight cost
control and reduced use of support personnel.
ordering phosphate (rock and granulated), achieving approximately
The Philippines sales growth was severely restricted by COVID, which
40 separate customers and importantly increasing sales in the Southern
caused sales to fall away significantly in the second half of the year.
States of the USA. New sales personnel were appointed in 2021
expanding the marketing and sales reach of Fertoz North America.
8 | Fertoz limited
CARBON DIVISION
Fertoz will develop the following protocol suite and expand efforts
in soil and plant CO2 sequestration and well as livestock methane
The carbon division was established initially in May 2021 and has
emissions:
expanded rapidly, targeting two areas for multiple carbon project
developments in the years ahead.
AGRICULTURAL
BASED
SOLUTION
FORESTRY /
REFORESTATION
SOLUTIONS
•
•
•
•
Conservation Cropping, No-Till
Nitrous Oxide Emissions Reductions (NERP)
Rock Phosphate to Enhance Yield and Carbon Sequestration
Rock Phosphate in Conventional Ag to Reduce Upstream Carbon
Emissions from Ammonium Phosphate Fertilizer Manufacturing
•
Cover Crops to Increase Carbon Sequestration
• Methane Emission Reductions in Livestock using Canola Meal in
Feed
Fertoz Carbon’s projects will produce nature-based credits with
Fertoz Carbon developing and managing projects. The carbon credit
The chart below, from AgFunder News, shows the share of carbon
generation will primarily be focused on the Voluntary Carbon Market,
credits issued by area of scope of project, noting that just 1.0% are
with projects producing credits that are either:
currently issued from agricultural projects.
1.
Credits that reduce or avoid greenhouse gas (GHG) emissions (no-
till and NERP farming/methane from livestock)
2.
Removal credits that actively capture GHG emissions
(reforestation/ afforestation)
Research already highlights the success of removal credits (with forestry
and renewables driving these removals of CO2), however, together with
that approach, Fertoz Carbon sees a significant opportunity in reducing
or avoiding GHG emissions (agricultural focused) by developing and
having approved practical and measurable protocols that farmers
and those in the agricultural industry can adapt and manage for the
reduction and/or removal of GHG emissions from farm based activities.
Source: https://agfundernews.com/carbon-credits-just-one-percent-from-
agriculture
Fertoz limited | 9
In December 2021, Fertoz Carbon together with its partner Trimble
Inc (NASDAQ: TRMB), successfully registered a “no-till conservation
cropping” protocol with the Canadian Registry. A shift from conventional
farming to conservation cropping increases carbon sequestered in
the soil. Fertoz Carbon expects first acres contracted and first carbon
income in 1H 2022 under this protocol.
Trimble Inc has contracted Microsoft Corporation to purchase all
carbon credits under the “no-till” protocol program. Fertoz Carbon,
together with Trimble Inc, is finalising for approval in Canada a Nitrous
Oxide Emission Reduction protocol. This will focus on a new protocol
that better manages nitrogen practices and applications on Canadian
farms. The focus of the protocol is developing farm rules that result in
more efficient use of nitrogen, less run off and leaching and therefore
improved environmental impacts. The Company’s research indicates
that utilising Fertoz-developed “NPKS Nutrient Vigour Plus” fertiliser
offers the potential to enhance carbon credit availability under the
protocol, and could materially improve the environmental impacts
versus synthetic fertilisers.
Fertoz Carbon is actively researching and developing further carbon
protocols in house. Studies are underway using rock phosphate to lower
Scope 3 emissions from fertiliser production. The manufacturing of rock
phosphate omits materially less CO2 than those emissions generated
from the production of chemical fertilisers.
In October 2021, Fertoz Carbon engaged Strongfield Environmental
to drone seed and fertilise (rock phosphate) two trial sites: BC Canada
and West Virginia, USA. The trial was utilised to access the data on
the effectiveness of drone seeding reforestation projects, determining
initial seedling yields and potentially substantially lowering the cost of
establishing reforestation projects in North America.
Fertoz Carbon continues to access suitable land, partners, local villages
and communities and project economics on carbon forestry projects
targeting North America, South America, and Asia. Fertoz Carbon
expects to announce the first commercial forestry projects in
calendar 2022.
SAFETY
There were no lost time injuries or environmental incidents recorded
during the 12 months ending 31 December 2021.
OUTLOOK
North America
As we have demonstrated, Fertoz has worked to build a sustainability-
based product supply company. The Company’s 2021 achievements
indicate the growth, focus, execution and cash positive direction. While
we are the top rock phos products provider in North America, we have
added the Fertoz Carbon programs that look to deliver growth, acres,
tonnes and carbon trading revenues. 2022 is well underway, but our
focus is:
1. Capitalize on the disrupted global supply of phosphate and supply
chains. We can offer quality products and blends at a far better price
per pound of nutrient and freight.
2. Mining - Extract from our Wapiti mine. Supply eastern central BC
and western, central Alberta. Extract from Fernie BC, and our leases
in western Alberta, to supply southern AB and Saskatchewan, as well
as the Pacific Northwest. Expand and extend our supply contract in
Deerlodge, Montana. Our Monterrey, Mexico mine is expanding and we
are requesting larger volumes.
3. Processing - Focusing on reducing costs and working in close
coordination with our facilities in western AB, southern AB, Montana,
Idaho, Utah and Mexico.
4. Transportation - as noted extensively above, supply chain disruptions,
globally and in North America, will persist for several years. We will
continue to expand our use of rail and ensure that we have a chain of
contract processing facilities in our major sales regions.
5. Sales - In 2021, we picked up a number of new customers. Even in the
first few months of 2022, we have added 5-10 new, large customers. All
have noted that they are trying Fertoz products due to the high costs of
conventional synthetic fertilizer, or non-competitive freight rates.
We think this growth trend will continue.
As we look at 1-2-3-year projections and sales, we plan to:
•
•
•
•
•
increase and develop our rock supplies
improve processing locations and costs
greatly expand our carbon programs, acres, tonnes, and revenues
add staff to provide excellent coverage and customer service
improve our accounting, supply chain and tracking systems to
double and triple our current volumes
10 | Fertoz limited
10 | Fertoz limited
10 | Fertoz limited
Australia/Asia
2022 has started strongly for Fertoz’s Australian based operations, with
the product scheduled for 4th quarter of 2021 having arrived and been
presold.
CORPORATE
Board appointment
On 14th February 2022, the Company appointed Mr Greg West as a
Non-Executive Director. Mr Justyn Stedwell tendered his resignation on
Shipping and manufacturing costs have continued to rise and have been
the same day. Mr James Chisholm tendered his resignation as a
challenging for both Fertoz and farmers alike. Supply chain challenges
Non-Executive Director on the 6th of April 2022.
have also impacted product clearance, with Australia generally being
hampered by biosecurity inspection delays. Product price rises have
Cash
The Company had $5.197 million in cash as of 31 December 2021
and nil loan balances owing. During the year 31 December 2021, the
company raised $6,519,800 ( before costs ) in newly issued capital to
provide working capital to fund anticipated growth.
been implemented in January and May 2022 to recover the increased
costs. Sales are expected to exceed 2022 budget figures but have been
affected by extensive flooding in NSW and Queensland.
Several opportunities in Australia and Asia are being investigated to
generate carbon income through the sale of carbon dioxide equivalent
tonnes. It is expected these will be generated from improvements in
agriculture and planting trees.
Cover cropping, no-till practices and reforestation can all increase the
amount of carbon credits available to farmers. Production of Fertoz
products is low carbon intensity, allowing farmers to secure more
carbon credits for their crops. Fertoz products enhance growth leading
to more sequestration of carbon.
Fertoz limited | 11
Fertoz limited | 11
APPENDIX 1 - TENEMENTS
TITLE NUMBER
CLAIM NAME
OWNERSHIP
GOOD TO DATE
STATUS
AREA (HA)
851942
851948
851952
851958
941760
941761
941762
941763
941764
941769
955278
956829
982744
1011319
1015556
1015557
1015558
1015626
1015627
1018104
1018106
1018107
1018108
1018109
1020873
1023062
1023064
1023921
1023922
1023923
1024365
1024783
1024803
1024805
WK 1
WK 2
WK 3
WK 4
WK 5
WK 6
WK 7
WK 8
WK 9
WK 10
WK 11
WK 12
WK-ONE
BARNES LAKE
WAPITI NE
WAPITI TWO
WAPITI SOUTH
MUNOK 1
BELCOURT 1
WAP S2
WAP S3
WAP S4
WAP S5
WAP S6
BARNES 2
CROWSNEST
CROWS 2
RED DEER 1
RED DEER 2
RED DEER 3
MARTEN
MUNOK 2
BELCOURT 2
BELCOURT 4
12 | Fertoz limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022/AUG/21
PROTECTED
450.83
2022/AUG/21
PROTECTED
451.02
2022/AUG/21
PROTECTED
375.66
2022/AUG/21
PROTECTED
451.20
2022/AUG/21
PROTECTED
450.83
2022/AUG/21
PROTECTED
469.87
2022/AUG/21
PROTECTED
432.07
2022/AUG/21
PROTECTED
413.49
2022/AUG/21
PROTECTED
432.53
2022/AUG/21
PROTECTED
451.36
2023/AUG/21
PROTECTED
470.31
2022/AUG/21
PROTECTED
37.56
2022/AUG/21
2024/MAY/19
GOOD
GOOD
18.80
608.98
2022/AUG/21
PROTECTED
375.54
2022/AUG/21
PROTECTED
168.93
2022/AUG/21
PROTECTED
376.35
2022/AUG/21
PROTECTED
169.58
2022/AUG/21
PROTECTED
113.27
2022/AUG/21
PROTECTED
451.82
2022/AUG/21
PROTECTED
451.75
2022/AUG/21
PROTECTED
451.93
2022/AUG/21
PROTECTED
452.09
2022/AUG/21
PROTECTED
452.30
2023/APR/18
2025/AUG/29
2024/OCT/15
2022/AUG/21
2022/AUG/21
2022/AUG/21
2025/AUG/30
GOOD
GOOD
GOOD
GOOD
GOOD
GOOD
GOOD
629.88
1,450.89
38.67
150.22
206.34
150.13
754.32
2022/AUG/21
PROTECTED
603.05
2022/AUG/21
PROTECTED
301.76
2022/AUG/21
PROTECTED
339.78
TITLE NUMBER
CLAIM NAME
OWNERSHIP
GOOD TO DATE
STATUS
AREA (HA)
1024806
1025533
1027037
1027038
1029417
1029489
1029979
1030777
1031107
1046619
1046685
1047502
1055454
1057281
1058774
1059393
1059412
1059422
1089147
1089275
1094162
BELCOURT 3
MARTEN 2
BELCOURT LINK
WAP 11
MUNOK
SOUTH 2
MARTEN NORTH
SOUTH ROAD 2
MARTEN E
BARNES LK 3
GRAVES LAKE 1
RAM 1
BARNES LK WEST
BIGHORN SOUTHWEST
GRAVES 2
SOUTH OF ALBERTA 1
BARNES 5
COAL MOUNTAIN 1
GRAVES 3
GRAVES 4
BIGHORN 20
CROWSNEST PAST - ALBERTA
9318030431
9318100162
TWP
TWP
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022/AUG/21
PROTECTED
188.70
2023/AUG/28
GOOD
460.86
2022/AUG/21
PROTECTED
282.59
2022/AUG/21
GOOD
168.94
2022/AUG/21
PROTECTED
207.38
2022/AUG/21
PROTECTED
376.16
2023/AUG/29
GOOD
334.99
2022/AUG/21
PROTECTED
413.66
2023/AUG/29
2023/JAN/12
2022/OCT/14
2022/OCT/29
2023/JUL/09
2021/OCT/29
2022/OCT/22
2023/JUL/17
2023/JUL/18
2023/JUL/19
2023/JAN/20
2023/JAN/20
2023/MAR/29
GOOD
GOOD
GOOD
GOOD
GOOD
188.45
524.89
499.54
21.12
83.97
PROTECTED
211.28
GOOD
GOOD
GOOD
GOOD
GOOD
GOOD
GOOD
208.29
309.31
104.96
230.78
104.03
416.11
232.39
19,171.51
PROTECTED - Means that the tenements are protected from expiry by the Ministry of Mines until June 2023
Fertoz limited | 13
Year ended 31 December 2021
DIRECTORS’ REPORT
Year ended 31 December 2021
DIRECTORS’ REPORT
DIRECTORS REPORT
The directors present their report, together with the audited financial statements, on the consolidated entity (referred to
hereafter as the 'consolidated entity') consisting of Fertoz Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 31 December 2021.
There were no lost time, injuries or environmental incidents recorded during the year ended 31 December 2021.
Directors
The directors present their report, together with the audited financial statements, on the consolidated entity (referred to
The following persons were directors of Fertoz Limited during the whole of the financial period and up to the date of this
hereafter as the 'consolidated entity') consisting of Fertoz Limited (referred to hereafter as the 'company' or 'parent entity') and
report, unless otherwise stated:
the entities it controlled at the end of, or during, the year ended 31 December 2021.
Review of operations (continued)
Financials
Mr. Patrick Avery
Directors
Mr. James Chisholm
The following persons were directors of Fertoz Limited during the whole of the financial period and up to the date of this
Mr. Stuart Richardson
report, unless otherwise stated:
Mr. Justyn Stedwell (Resigned on 14 February 2022)
Mr. Greg West (Appointed on 14 February 2022)
Mr. Patrick Avery
Mr. James Chisholm
Principal Activities
Mr. Stuart Richardson
The Company’s key objective is to become a leading supplier of rock phosphate organic fertilizers in North America and a
Mr. Justyn Stedwell (Resigned on 14 February 2022)
profitable marketer of organic fertilizer products in Australia and make sufficient profits to pay dividends to shareholders. The
Mr. Greg West (Appointed on 14 February 2022)
Company is also developing a carbon project business focussing on sustainable land management practices.
Principal Activities
Dividends
The Company’s key objective is to become a leading supplier of rock phosphate organic fertilizers in North America and a
profitable marketer of organic fertilizer products in Australia and make sufficient profits to pay dividends to shareholders. The
There were no dividends paid, recommended or declared during the current period or previous year.
Company is also developing a carbon project business focussing on sustainable land management practices.
Review of operations
Dividends
Strategy
There were no dividends paid, recommended or declared during the current period or previous year.
Fertoz is a premium organic certified phosphate sales and development company which is advancing the Wapiti and Fernie area
(BC and Alberta) phosphate deposits in Canada, blending and selling organically certified natural rock phosphate from contract
Review of operations
operations in the USA and distributing fused magnesium calcium phosphate in Australia, New Zealand and the Philippines. The
Strategy
Company holds and has access to rock phosphate in British Columbia, Alberta, Montana and Mexico, and the directors consider
these provide a significant competitive advantage in today’s market, with quickly rising fertilizer prices due to geopolitical issues
Fertoz is a premium organic certified phosphate sales and development company which is advancing the Wapiti and Fernie area
surrounding Russia and Ukraine, increasing demand for organic foods, and a growing number of farmers looking to convert to
(BC and Alberta) phosphate deposits in Canada, blending and selling organically certified natural rock phosphate from contract
organic farming or supplement their existing operations with some organic fertilizers.
operations in the USA and distributing fused magnesium calcium phosphate in Australia, New Zealand and the Philippines. The
Company holds and has access to rock phosphate in British Columbia, Alberta, Montana and Mexico, and the directors consider
Fertoz expanded its operations into carbon credit projects based on sustainable land management practices. This business
these provide a significant competitive advantage in today’s market, with quickly rising fertilizer prices due to geopolitical issues
opportunity is under development with interest in this service exceeding management’s expectations. Carbon credit pricing
surrounding Russia and Ukraine, increasing demand for organic foods, and a growing number of farmers looking to convert to
has increased well beyond management’s expectations over 2021 with numerous projects now being reviewed, and a number
organic farming or supplement their existing operations with some organic fertilizers.
of large greenhouse gas emitters looking for projects to sequester their carbon dioxide emissions.
Fertoz expanded its operations into carbon credit projects based on sustainable land management practices. This business
The Company focuses on servicing the organic farming market as well as conventional farmers in North America, Australia and
opportunity is under development with interest in this service exceeding management’s expectations. Carbon credit pricing
New Zealand looking for alternatives to standard, high leaching fertilisers through offering blended organic fertilizers and the
has increased well beyond management’s expectations over 2021 with numerous projects now being reviewed, and a number
potential to generate carbon credits through independently verified processes to generate carbon credits and thus increase
of large greenhouse gas emitters looking for projects to sequester their carbon dioxide emissions.
farm income.
The Company focuses on servicing the organic farming market as well as conventional farmers in North America, Australia and
The Company’s key objective is to become a growth-oriented, cash-flow generating agribusiness returning dividends to
New Zealand looking for alternatives to standard, high leaching fertilisers through offering blended organic fertilizers and the
shareholders by supplying organic fertilisers and carbon-based sustainable land management services to customers in North
potential to generate carbon credits through independently verified processes to generate carbon credits and thus increase
America, Australia, New Zealand and selected countries within South East Asia and Pacific who are looking for alternatives to
farm income.
standard, high leaching fertilisers.
The Company’s key objective is to become a growth-oriented, cash-flow generating agribusiness returning dividends to
shareholders by supplying organic fertilisers and carbon-based sustainable land management services to customers in North
America, Australia, New Zealand and selected countries within South East Asia and Pacific who are looking for alternatives to
standard, high leaching fertilisers.
14 | Fertoz limited
Year ended 31 December 2021
DIRECTORS’ REPORT
Board Changes
appointed as director.
Safety
Subsequent to the year ended 31 December 2021, Mr. Justyn Stedwell resigned as director and Mr Greg West was
The loss for the consolidated entity after providing for income tax amounted to $3,752,831 (2020: $1,535,715).
Sales for the year ended 31 December 2021 were 10% higher than the previous year, up from $2,035,125 to $2,243,501. This
does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450,
which are offset against the exploration and evaluation asset. It is a requirement of the accounting standards that revenue
generated from activities associated with the evaluation of the company’s tenements is offset against capitalised exploration
and evaluation costs.
The Group also spent $831,555 (2020: $134,800) on exploration expenditure during the year.
Available cash balance at year-end amounted to $5,196,848 (2020: $1,156,678).
Significant changes in the state of affairs
During the year ended 31 December 2021, the Group:
(a) raised $6,519,800 through the issuance of 63,729,332 shares;
(b)
(c)
issued 1,700,000 ordinary shares to key members of the staff under the Employee Share Plan;
issued 3,850,000 ordinary shares to a director in lieu of directors fees; and
(d) released 3,000,000 ordinary shares to the Executive Chairman on achievement of performance hurdles.
(e)
Issued 2,350,000 performance rights to the Executive Chairman and certain members of the staff, which are subject
to achievement of operations targets.
Other than disclosed in this report, in the opinion of the directors there were no significant changes in the state of affairs of the
Company during the financial period under review.
On 14 February 2022, the Company appointed Mr. Greg West as non-Executive Director. Mr Justyn Stedwell resigned from the
Matters subsequent to the end of the financial year
Board at the same date.
Likely developments and expected results of operations
The consolidated entity intends to continue its fertilizer development and production activities, to acquire further suitable
fertilizer projects as opportunities arise, to expand further services in relation to carbon trading, and to implement the
Company’s ESG policies to become at least carbon neutral.
The consolidated entity is subject to environmental regulations under laws of British Columbia and Alberta, Canada where it
either holds or has a right to explore on such tenements. During the financial period the consolidated entity’s activities
Environmental regulation
recorded no non-compliance issues.
Corporate Governance
The Company’s corporate governance statement and Appendix 4G can be found on the Company’s website at:
https://www.fertoz.com/company/corporate-governance/
2 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
Board Changes
Subsequent to the year ended 31 December 2021, Mr. Justyn Stedwell resigned as director and Mr Greg West was
appointed as director.
Safety
There were no lost time, injuries or environmental incidents recorded during the year ended 31 December 2021.
Review of operations (continued)
Financials
The loss for the consolidated entity after providing for income tax amounted to $3,752,831 (2020: $1,535,715).
Sales for the year ended 31 December 2021 were 10% higher than the previous year, up from $2,035,125 to $2,243,501. This
does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450,
which are offset against the exploration and evaluation asset. It is a requirement of the accounting standards that revenue
generated from activities associated with the evaluation of the company’s tenements is offset against capitalised exploration
and evaluation costs.
The Group also spent $831,555 (2020: $134,800) on exploration expenditure during the year.
Available cash balance at year-end amounted to $5,196,848 (2020: $1,156,678).
Significant changes in the state of affairs
During the year ended 31 December 2021, the Group:
issued 1,700,000 ordinary shares to key members of the staff under the Employee Share Plan;
issued 3,850,000 ordinary shares to a director in lieu of directors fees; and
(a) raised $6,519,800 through the issuance of 63,729,332 shares;
(b)
(c)
(d) released 3,000,000 ordinary shares to the Executive Chairman on achievement of performance hurdles.
(e)
Issued 2,350,000 performance rights to the Executive Chairman and certain members of the staff, which are subject
to achievement of operations targets.
Other than disclosed in this report, in the opinion of the directors there were no significant changes in the state of affairs of the
Company during the financial period under review.
Matters subsequent to the end of the financial year
On 14 February 2022, the Company appointed Mr. Greg West as non-Executive Director. Mr Justyn Stedwell resigned from the
Board at the same date.
Likely developments and expected results of operations
The consolidated entity intends to continue its fertilizer development and production activities, to acquire further suitable
fertilizer projects as opportunities arise, to expand further services in relation to carbon trading, and to implement the
Company’s ESG policies to become at least carbon neutral.
Environmental regulation
The consolidated entity is subject to environmental regulations under laws of British Columbia and Alberta, Canada where it
either holds or has a right to explore on such tenements. During the financial period the consolidated entity’s activities
recorded no non-compliance issues.
Corporate Governance
The Company’s corporate governance statement and Appendix 4G can be found on the Company’s website at:
https://www.fertoz.com/company/corporate-governance/
Fertoz limited | 15
2 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Mr. Patrick Avery, MBA
Executive Chairman,
Mr. Avery has over 30 years of experience working in the industries of fertilizer, mining, specialty chemicals, petroleum, and
construction/project management. In the fertilizer industry, he worked for 11 years with JR Simplot, one of the largest privately
held food and agribusiness companies in the USA, where he held senior positions across all key business units such as mining,
manufacturing, supply chain, wholesale sales and energy management, managing over 1500 employees, three mines(two
phosphate and one silica), five major manufacturing facilities, and several warehouse/distribution locations, making dozens of
products from chemical fertilizers, to specialty chemicals for lawns, gardens, golf courses, industrial products, resins, and water
treatment. Mr. Avery was also president of Intrepid Potash, where he led all aspects of mining, manufacturing, logistics and
sales.
Mr Avery has not been a director of any other listed company in the last three years.
Interests in shares:
Interests in options:
Contractual rights to shares:
Mr. James Chisholm, B.Eng, MBA
Non-executive Director
6,408,164
None
None
Mr Chisholm is a qualified engineer, having worked in the engineering, mining, oil and gas sectors for the past 35 years. Mr.
Chisholm has worked on numerous resource construction and maintenance projects around Australia, primarily covering coal,
iron ore, and agricultural mining and processing. Mr. Chisholm co-founded The Chairmen1 Pty Ltd which sold its assets to
Guildford Coal Ltd (ASX: TER); Ebony Iron Pty Ltd, which sold its assets to Strategic Minerals (AIM: SML); and hydrogen
development company, Ebony Energy Ltd, which was recently acquired by Hexagon Energy Materials Ltd (ASX: HXG). Mr.
Chisholm is experienced in start-up exploration and development companies.
He was also a director of Atrum Coal Ltd until mid-2019 (ASX: ATU). Other than Atrum Coal Ltd., Mr. Chisholm has not been a
director of a listed company for the last three years.
Interests in shares:
Interests in options:
Contractual rights to shares:
Mr. Stuart Richardson BBA, CPA
Non-executive Director
13,202,726
None
None
Mr Richardson has extensive experience over 35 years in capital markets both on Australia and overseas in the field of
investment banking and stockbroking. He is a founding director of Blackwood Capital Limited an Australian based investment
bank operating in capital markets, advisory and funds, management in equities and private equity.
Interests in shares:
Interests in options:
Contractual rights to shares:
13,620,000
None
None
16 | Fertoz limited
3 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS (CONTINUED)
Mr. Justyn Stedwell
Non-executive Director/Company Secretary
Mr. Stedwell is a professional company secretary with over 11 years' experience as a Secretary of ASX listed companies in
various industries, including mining and exploration, IT & telecommunications, biotechnology and agriculture. Mr. Stedwell’s
qualifications include a Bachelor of Commerce (Economics and Management) from Monash University, a Graduate Diploma of
Accounting at Deakin University and a Graduate Diploma in Applied Corporate Governance at the Governance Institute of
Australia. He is currently Company Secretary at several ASX-listed companies, including Atrum Coal Ltd (ASX:ATU), Lifespot
Health Ltd (ASX: LSH); Cirralto Ltd (ASX:CRO), Imugene Ltd (ASX:IMU), Rectifier Technologies Ltd (ASX:RFT), Golden Mile
Resources Ltd (ASX:G88), UltraCharge Ltd (ASX:UTR), WONHE Multimedia Commerce Ltd (ASX:WMC) and Broo Ltd (ASX:BEE).
Interests in shares:
Interests in options:
Contractual rights to shares:
750,000
None
None
Mr. Stedwell resigned as director and corporate secretary of the Company on 14 February 2022.
Mr. Greg West
Non-executive Director (appointed 14 February 2022)
Mr. Greg West is a Chartered Accountant and an experienced ASX Non-Executive director with a background in the education
sector, investment banking and financial services. Mr. West was appointed as a Non-Executive Director of ASX listed IDP
Education in 2006, now a top 100 ASX company. Greg is on the Council of the University of Wollongong and a Director of
UOWGE Limited, a business arm of the University of Wollongong with universities in Dubai, Hong Kong and Malaysia. Greg is
also a Director and Chair of Education Australia Limited, an investment company owned by the Australian universities.
Previously, Mr. West was Chief Executive Officer of a dual listed ASX biotech company. He has worked at Price Waterhouse and
has held senior finance executive roles in investment banking with Bankers Trust, Deutsche Bank, NZI and other financial
institutions. Greg is a Director of the St James Foundation Limited.
Interests in shares:
Interests in options:
Contractual rights to shares:
MEETINGS OF DIRECTORS
Nil
None
Under the terms of Mr. West’s appointment, his compensation for the
first 12 months of his services as Director, will be paid by the issue of and
allotment of 250,000 shares in the Company, subject to Shareholders’
approval.
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 31 December 2021, and
the number of meetings attended by each director were:
Year ended 31 December 2021
Board of Directors
Number eligible
to attend*
4
4
4
4
Number
attended
4
3
4
1
Mr. Patrick Avery
Mr. James Chisholm
Mr. Stuart Richardson
Mr. Justyn Stewell1
*Represents the number of meetings held during the time the director held office
1 Resigned on 14 February 2022
The Board of the Company undertakes the responsibilities of both the Nomination and Remuneration Committee and the Audit
and Risk Committee.
Fertoz limited | 17
4 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and
the creation of value for shareholders and conforms to the market best practice for the delivery of reward. The Board of
Directors (“the Board”) ensures that executive reward satisfies the following key criteria for good reward governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board undertakes the responsibilities of the Nomination and Remuneration Committee and is responsible for determining
and reviewing remuneration arrangements for its directors and executives. The performance of the consolidated entity
depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high
performance and high-quality personnel. The Board has structured an executive remuneration framework that is market
competitive and complementary to the reward strategy of the consolidated entity.
●
●
The framework seeks to align performance to shareholders' interests by:
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth as well as focusing the executive on key non-financial drivers
of value
attracting and retaining high calibre executives
●
and aligns the program participants' interests by:
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
●
●
●
In accordance with best practice corporate governance, the structure of non-executive directors and executive remunerations
are separate.
Non-executive directors’ remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
Non-executive directors receive share options to ensure alignment with the Boards responsibility of creating shareholder
wealth. The remuneration for the non-executive directors has been set at $36,000 per annum.
ASX listing rules require the aggregate non-executive director’s remuneration be determined periodically by a general meeting.
The most recent determination was at the Annual General Meeting held on 29 May 2012, where the shareholders approved an
aggregate remuneration of $250,000 per annum.
18 | Fertoz limited
5 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
Executive remuneration
The consolidated entity aims to reward executives with a level and mix of remuneration based on their position and
responsibility, which has both fixed and variable components.
The executive remuneration and reward framework has four components:
● base pay and non-monetary benefits
● short-term performance incentives
● share-based payments
● other remuneration such as superannuation and long service leave payable to eligible employees
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary and non-monetary benefits, are reviewed annually by the Board, based on
individual and business unit performance, the overall performance of the consolidated entity and comparable market
remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The consolidated entity does not have short-term incentives ('STI') at this time
The company may issue options to provide an incentive for key management personnel which, it is believed, is in line with
industry standards and practice and is also believed to align the interests of key management personnel with those of the
company’s shareholders.
Consolidated entity performance and link to remuneration
The consolidated entity’s remuneration framework is designed to attract, retain and motivate those people who can drive
Fertoz’ culture and deliver its business strategy and supports alignment to long term overall company performance and
creation of shareholder value. Remuneration packages are structured that rewards meeting individual, business unit and the
entity’s targets and objectives, including maximising returns for shareholders.
The link between remuneration, company performance and shareholder wealth generation is tenuous, particularly in the
exploration and development stage of a minerals company. Share prices are subject to the influence of international phosphate
prices and market sentiment towards the sector and increases or decreases may occur independently of executive performance
or remuneration.
The earnings of the consolidated entity for the year ended 30 June 2018, six months ended 31 December 2018 and years ended
31 December 2019, 2020 and 2021 are summarised below:
Sales revenue
EBITDA
EBIT
(Loss) after income tax
20213
$
2,243,5014
(3,733,438)
(3,752,831)
(3,752,831)
20203
$
2,035,125
(1,525,380)
(1,535,715)
(1,535,715)
20193
$
1,326,264
(1,793,485)
(1,808,232)
(1,808,232)
20182
$
1,458,596
(1,246,690)
(1,246,690)
(1,246,690)
20181
$
1,486,285
(1,432,712)
(1,432,712)
(1,432,712)
1Year ended 30 June
2Six months ended 31 December
3 Year ended 31 December
4 This does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450.
Fertoz limited | 19
6 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($)
Total dividends declared (cents per share)
Basic earnings per share (cents per share)
1Year ended 30 June
2Six months ended 31 December
3 Year ended 31 December
20213
$
0.25
-
(1.03)
20203
$
0.05
-
20193
$
0.08
-
(1.01)
(1.41)
20182
$
0.20
-
(1.05)
20181
$
0.175
-
(1.5)
Use of remuneration consultants
The consolidated entity did not engage remuneration consultants during the year ended 31 December 2021.
Voting and comments made at the company's 2021 Annual General Meeting ('AGM')
At the 2021 AGM, the remuneration report for the year ended 31 December 2020 was adopted. The company did not receive
any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of Key Management Personnel (“KMP”) of the consolidated entity for the year ended 31 December
2021 are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Fertoz Limited:
• Mr. Patrick Avery – Executive Chairman
• Mr. James Chisholm – Non-Executive Director
• Mr. Stuart Richardson – Non-Executive Director
• Mr. Justyn Stedwell – Non-Executive Director
For the year ended 31 December 2021
Short Term
Benefits
Post
Employment
Share Based Payments
Director
Salary and
fees
$
Superannuati
on
$
Options
$
Shares
$
Total
$
Fixed
(%)
Patrick Avery 2,3
(Executive Chairman)
James Chisholm2
Stuart Richardson2
Justyn Stedwell1, 2
Total
216,855
-
-
4,545
221,400
-
-
-
-
-
64,1054
-
-
-
64,105
920,000
230,000
230,000
195,500
1,575,500
1,200,960
230,000
230,000
200,045
1,861,005
37%
100%
100%
100%
58%
1 See resignation date as per above
2 Remuneration in shares includes 1,000,000 shares issued at $0.23
3Remuneration in shares includes 3,000,000 performance shares issued when the market price was $0.23
4Amount is with respect to previously issued performance shares, which have expired unissued.
Proportion of
remuneration
performance
related
LTI
(%)
63%
-
-
-
42%
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
For the year ended 31 December 2020
Short Term
Post
Share Based Payments
Benefits
Employment
Proportion of
remuneration
performance
related
Director
Salary and
Superannuati
Options
Shares
$
$
Total
$
Fixed
(%)
LTI
(%)
fees
$
on
$
(Executive Chairman)
241,161
142,936
9,000
12,000
12,000
-
27,000
301,161
-
-
-
-
-
-
-
-
-
-
-
-
142,936
-
-
-
-
-
-
-
384,097
9,000
12,000
12,000
63%
100%
100%
100%
-
-
27,000
435,097
100%
100%
37%
-
-
-
-
-
33%
1 See resignation and appointment dates as per above
2 Since his appointment as Director on 20 November 2020, Mr. Stedwell received $5,500 through an entity controlled by him as his capacity as
3During the year, capital raising fees of $20,000 were paid to a company controlled by Mr. Richardson.
Patrick Avery
Adrian Byass1
James Chisholm
Stuart Richardson3
Justyn Stedwell1,2
Ronald Wilkinson1
Total
Corporate Secretary.
Service agreements
Remuneration and other terms of employment for key executive management personnel are formalised in service
agreements. Details of these agreements are as follows:
Name:
Title:
Patrick Avery
Executive Chairman
Agreement commenced:
1 June 2021
Term of agreement:
3 years
Details:
From 1 June 2021 through to 31 December 2021, Mr Avery’s fees amount to $15,000 per month
and will increase to $16,000 per month thereafter. If Mr Patrick Avery is required to provide
services to the Company on more than 17 days during any month (based on an 8-hour day), a
related entity of Mr Patrick Avery is entitled to receive additional fees of up to US$750 for each
additional day. Although the shareholders approved an increase in the salary to US$240,000, at
Mr Avery’s request the salary was reduced to US$12,500 per month from 1 January to 31 July
2021.
Mr. Avery is entitled to 3,000,000 fully paid shares subject to the following conditions:
• 1,000,000 Shares vest if the Company’s share price exceeds 10c for 10 consecutive days
• 1,000,000 Shares vest if the Company’s share price exceeds 15c for 10 consecutive days
• 1,000,000 Shares vest if the Company’s share price exceeds 20c for 10 consecutive days
any time up to 1 June 2024;
any time up to 1 June 2024; and
any time up to 1 June 2024
At 31 December 2021, the above 3,000,000 performance shares have vested and 3,000,000 ordinary shares have been issued,
after the Shareholders’ approval on 23 July 2021. The fair value of the performance shares are determined based on the
market price of the company’s shares at the issuance date of $0.23.
.
20 | Fertoz limited
7 | P a g e
8 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
For the year ended 31 December 2020
Short Term
Benefits
Post
Employment
Share Based Payments
Director
Patrick Avery
(Executive Chairman)
Adrian Byass1
James Chisholm
Stuart Richardson3
Justyn Stedwell1,2
Ronald Wilkinson1
Total
Salary and
fees
$
Superannuati
on
$
Options
$
Shares
$
Total
$
Fixed
(%)
241,161
9,000
12,000
12,000
-
27,000
301,161
-
-
-
-
-
-
-
142,936
-
-
-
-
-
142,936
-
-
-
-
-
-
-
384,097
9,000
12,000
12,000
-
27,000
435,097
63%
100%
100%
100%
-
100%
100%
Proportion of
remuneration
performance
related
LTI
(%)
37%
-
-
-
-
33%
-
1 See resignation and appointment dates as per above
2 Since his appointment as Director on 20 November 2020, Mr. Stedwell received $5,500 through an entity controlled by him as his capacity as
Corporate Secretary.
3During the year, capital raising fees of $20,000 were paid to a company controlled by Mr. Richardson.
Service agreements
Remuneration and other terms of employment for key executive management personnel are formalised in service
agreements. Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Patrick Avery
Executive Chairman
1 June 2021
3 years
From 1 June 2021 through to 31 December 2021, Mr Avery’s fees amount to $15,000 per month
and will increase to $16,000 per month thereafter. If Mr Patrick Avery is required to provide
services to the Company on more than 17 days during any month (based on an 8-hour day), a
related entity of Mr Patrick Avery is entitled to receive additional fees of up to US$750 for each
additional day. Although the shareholders approved an increase in the salary to US$240,000, at
Mr Avery’s request the salary was reduced to US$12,500 per month from 1 January to 31 July
2021.
Mr. Avery is entitled to 3,000,000 fully paid shares subject to the following conditions:
• 1,000,000 Shares vest if the Company’s share price exceeds 10c for 10 consecutive days
any time up to 1 June 2024;
• 1,000,000 Shares vest if the Company’s share price exceeds 15c for 10 consecutive days
any time up to 1 June 2024; and
• 1,000,000 Shares vest if the Company’s share price exceeds 20c for 10 consecutive days
any time up to 1 June 2024
At 31 December 2021, the above 3,000,000 performance shares have vested and 3,000,000 ordinary shares have been issued,
after the Shareholders’ approval on 23 July 2021. The fair value of the performance shares are determined based on the
market price of the company’s shares at the issuance date of $0.23.
.
Fertoz limited | 21
8 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
Service agreements (continued)
Additional Shares and bonus payments are noted below:
a) US$50,000 cash bonus paid once the Company reaches a minimum of $1m EBIT as shown in audited
annual accounts before 1 June 2024;
b) US$100,000 bonus paid once the Company reaches a minimum of $3m EBIT as shown in audited
annual accounts before 1 June 2024;
c) US$200,000 cash bonus paid once the Company reaches a minimum of $5m EBIT as shown in audited
annual accounts before 1 June 2024;
d) 250,000 Shares on the achievement of 10,000ha of reforested or rehabilitated land managed in a carbon
project by Fertoz Carbon before 1 June 2024;
e) 250,000 Shares on the achievement of the sale of $500,000 of Carbon Credits in a project managed by
Fertoz Carbon before 1 June 2024;
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
Additional disclosures relating to key management personnel
Performance rights
The number of performance rights held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at the
Converted to
Balance at the
start of the year
Additions
ordinary shares
Expired*
end of the year
4,000,000
3,750,000
(3,000,000)
(4,000,000)
750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000,000
3,750,000
(3,000,000)
(4,000,000)
750,000
* Performance rights were forfeited as performance hurdles were not met
Performance rights
Patrick Avery
James Chisholm
Stuart Richardson
Justyn Stedwell
Option holding
No options over ordinary shares in the company were held during the financial year by any director and other members of key
f) 250,000 Shares on the achievement of 60,000t of fertilizer sales in any one year before 1 June 2024
management personnel of the consolidated entity, including their personally related parties.
At 31 December 2021, no cash bonus was paid or any of the above shares issued and no provision has been made for the cash
bonus. The potential shares that may be issued have been recognised as part of the share based payment expense.
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel or their related parties.
During the year ended 31 December 2021, 4,000,000 performance shares previously issued expired unvested.
******This concludes the remuneration report, which has been audited.******
Key management personnel have no additional entitlement to termination payments in the event of removal for misconduct.
Shares under option
Share based compensation
Options
No option over ordinary shares was granted to and vested by directors and other key management personnel as part of
compensation during the year ended 31 December 2021.
Shareholding
The number of shares in the company held during the year ended 31 December 2021 by each director and other members of
key management personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
Patrick Avery
James Chisholm
Stuart Richardson
Justyn Stedwell
Balance at the
start of the year
Received as part
of remuneration
Additions
Disposals/ other
Balance at the
end of the year
2,107,143
10,235,564
9,559,460
350,000
22,252,167
4,000,000
1,000,000
1,000,000
850,000
6,850,000
301,021
1,967,162
3,060,540
50,000
5,378,723
-
-
-
-
-
6,408,164
13,202,726
13,620,000
1,250,000
34,480,890
Fertoz issued 750,000 performance rights to a director and 1,600,000 performance rights to consultants during the year. If the
performance conditions are satisfied, ordinary shares will be issue to the participants for nil consideration.
There were no options granted to officers who are among the five highest remunerated officers of the company and the group,
but are not key management persons. During the year ended 31 December 2021, the group issued 5,000,000 options,
exercisable at a price of $0.20 before 23 August 2024 with respect to capital raising.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Fertoz Ltd. issued 63,729,332 ordinary shares pursuant to two entitlement issuances at $0.05 and $0.15, 1,700,000 ordinary
shares to employees under the Employee Share Plan and 6,850,000 shares as directors fees during the year ended 31
company or of any other body corporate.
Shares issued
December 2021 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the year ended 31 December 2021, the company paid a premium in respect of a contract to insure the directors and
executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial period, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
22 | Fertoz limited
9 | P a g e
10 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
Service agreements (continued)
Additional Shares and bonus payments are noted below:
a) US$50,000 cash bonus paid once the Company reaches a minimum of $1m EBIT as shown in audited
b) US$100,000 bonus paid once the Company reaches a minimum of $3m EBIT as shown in audited
annual accounts before 1 June 2024;
annual accounts before 1 June 2024;
annual accounts before 1 June 2024;
c) US$200,000 cash bonus paid once the Company reaches a minimum of $5m EBIT as shown in audited
d) 250,000 Shares on the achievement of 10,000ha of reforested or rehabilitated land managed in a carbon
project by Fertoz Carbon before 1 June 2024;
e) 250,000 Shares on the achievement of the sale of $500,000 of Carbon Credits in a project managed by
Fertoz Carbon before 1 June 2024;
f) 250,000 Shares on the achievement of 60,000t of fertilizer sales in any one year before 1 June 2024
Year ended 31 December 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (audited) (continued)
Additional disclosures relating to key management personnel
Performance rights
The number of performance rights held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Performance rights
Patrick Avery
James Chisholm
Stuart Richardson
Justyn Stedwell
Balance at the
start of the year
4,000,000
-
-
-
4,000,000
Converted to
Additions
3,750,000
-
-
-
3,750,000
ordinary shares
(3,000,000)
-
-
-
(3,000,000)
Expired*
(4,000,000)
-
-
-
(4,000,000)
Balance at the
end of the year
750,000
-
-
-
750,000
* Performance rights were forfeited as performance hurdles were not met
Option holding
No options over ordinary shares in the company were held during the financial year by any director and other members of key
management personnel of the consolidated entity, including their personally related parties.
At 31 December 2021, no cash bonus was paid or any of the above shares issued and no provision has been made for the cash
bonus. The potential shares that may be issued have been recognised as part of the share based payment expense.
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel or their related parties.
During the year ended 31 December 2021, 4,000,000 performance shares previously issued expired unvested.
******This concludes the remuneration report, which has been audited.******
Key management personnel have no additional entitlement to termination payments in the event of removal for misconduct.
Shares under option
Share based compensation
Options
Shareholding
No option over ordinary shares was granted to and vested by directors and other key management personnel as part of
compensation during the year ended 31 December 2021.
The number of shares in the company held during the year ended 31 December 2021 by each director and other members of
key management personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
Patrick Avery
James Chisholm
Stuart Richardson
Justyn Stedwell
Balance at the
Received as part
Balance at the
start of the year
of remuneration
Additions
Disposals/ other
end of the year
2,107,143
10,235,564
9,559,460
350,000
22,252,167
4,000,000
1,000,000
1,000,000
850,000
6,850,000
301,021
1,967,162
3,060,540
50,000
5,378,723
-
-
-
-
-
6,408,164
13,202,726
13,620,000
1,250,000
34,480,890
Fertoz issued 750,000 performance rights to a director and 1,600,000 performance rights to consultants during the year. If the
performance conditions are satisfied, ordinary shares will be issue to the participants for nil consideration.
There were no options granted to officers who are among the five highest remunerated officers of the company and the group,
but are not key management persons. During the year ended 31 December 2021, the group issued 5,000,000 options,
exercisable at a price of $0.20 before 23 August 2024 with respect to capital raising.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares issued
Fertoz Ltd. issued 63,729,332 ordinary shares pursuant to two entitlement issuances at $0.05 and $0.15, 1,700,000 ordinary
shares to employees under the Employee Share Plan and 6,850,000 shares as directors fees during the year ended 31
December 2021 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the year ended 31 December 2021, the company paid a premium in respect of a contract to insure the directors and
executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial period, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
9 | P a g e
Fertoz limited | 23
10 | P a g e
Year ended 31 December 2021
DIRECTORS’ REPORT
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on
behalf of the company for all or part of those proceedings.
Non-audit services
Amounts paid or payable to BDO Services Pty Ltd, a related company of the auditor, for non-audit services provided during the
year ended 31 December 2021 by the auditor related to preparation of the tax return and taxation advice of $8,100 (2020:
$9,457).
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 20 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
● all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
● none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
Officers of the company who are former partners of BDO Audit Pty Ltd
There are no officers of the company who are former partners of BDO Audit Pty Ltd.
Year ended 31 December 2021
DIRECTORS’ REPORT
Auditor's independence declaration
following page.
Auditor
On behalf of the directors
________________________________
Patrick Avery
31 March 2022
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
24 | Fertoz limited
11 | P a g e
12 | P a g e
Fertoz Limited
Year ended 31 December 2021
Year ended 31 December 2021
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Auditor's independence declaration
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the
set out on the following page.
following page.
Auditor
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations
Act 2001.
On behalf of the directors
On behalf of the directors
________________________________
Patrick Avery
______________ __________________ ____________________ _____________________________________________________________________
________________________________
atrick Avery
Patrick Avery
31 March 2022
31 March 2022
12 | P a g e
Fertoz limited | 25
12 | P a g e
31 December 2021
AUDITORS’ INDEPENDENCE DECLARATION
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
AUDITOR’S INDEPENDENCE
DECLARATION
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
DECLARATION OF INDEPENDENCE BY ANTHONY WHYTE TO THE DIRECTORS OF FERTOZ LIMITED
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2021
Contents
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
Independent auditor's report to the members of Fertoz Limited
Shareholder information
General information
15
16
17
18
19
40
41
42
As lead auditor of Fertoz Limited for the year ended 31 December 2021, I declare that, to the best of
my knowledge and belief, there have been:
The financial statements cover Fertoz Limited as a consolidated entity consisting of Fertoz Limited and the entities it controlled
at the end of, or during, the period. The financial statements are presented in Australian dollars, which is Fertoz Limited's
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
functional and presentation currency.
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
DECLARATION OF INDEPENDENCE BY ANTHONY WHYTE TO THE DIRECTORS OF FERTOZ LIMITED
Fertoz Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business are:
This declaration is in respect of Fertoz Limited and the entities it controlled during the period.
Registered office and principal place of business
As lead auditor of Fertoz Limited for the year ended 31 December 2021, I declare that, to the best of
my knowledge and belief, there have been:
Suite 103, Level 1, 2 Queen Street
Melbourne, VIC 3000
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
Anthony Whyte
Director
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Fertoz Limited and the entities it controlled during the period.
BDO Audit Pty Ltd
Brisbane
31 March 2022
Anthony Whyte
Director
BDO Audit Pty Ltd
Brisbane
31 March 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
13 | P a g e
26 | Fertoz limited
13 | P a g e
14 | P a g e
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
13 | P a g e
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 31 March 2022. The
directors have the power to amend and reissue the financial statements.
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2021
Contents
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
Independent auditor's report to the members of Fertoz Limited
Shareholder information
General information
15
16
17
18
19
40
41
42
The financial statements cover Fertoz Limited as a consolidated entity consisting of Fertoz Limited and the entities it controlled
at the end of, or during, the period. The financial statements are presented in Australian dollars, which is Fertoz Limited's
functional and presentation currency.
Fertoz Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business are:
Registered office and principal place of business
Suite 103, Level 1, 2 Queen Street
Melbourne, VIC 3000
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 31 March 2022. The
directors have the power to amend and reissue the financial statements.
Fertoz limited | 27
14 | P a g e
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2021
Consolidated statement of financial position
As at 31 December 2021
Note
4
2
8b
5
4
14
6
Revenue from contracts with customers
Cost of goods sold
Other Income
Expenses
Audit & accounting
Consultant fees & employee compensation
Depreciation & amortisation
Directors fees (non-executive)
Executive chairman compensation
Insurance
Investor relations
Legal
Listing fees and share registry
Marketing & selling
Office rent
Provision for impairment of inventory
Share based payment
Other expenses
Total expenses
Finance
Interest income
Finance costs
Lease interest
Foreign exchange loss/(gain)
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation gain/(loss)
Other comprehensive income for the year, net of tax
Year ended
31 December
2021
$
2,243,501
(1,703,820)
539,681
12,898
161,253
314,097
19,393
4,545
216,855
25,174
25,600
9,137
133,380
919,860
11,466
-
2,394,505
58,720
4,293,985
(373)
4,502
926
6,370
11,425
Year ended
31 December
2020
$
2,035,125
(1,534,843)
500,282
70,021
169,046
182,067
10,335
60,000
241,161
74,312
44,100
-
73,859
623,327
13,421
344,052
205,666
63,602
2,104,948
(589)
6,003
-
(4,344)
1,070
(3,752,831)
(1,535,715)
-
-
(3,752,831)
(1,535,715)
418,541
418,541
(540,682)
(540,682)
Total comprehensive income for the year
(3,334,290)
(2,076,397)
Loss per share for loss attributable to the owners of Fertoz Limited
Basic loss per share (cents)
Diluted loss per share (cents)
27
27
(1.94)
(1.94)
(1.01)
(1.01)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Exploration and evaluation assets
Property, plant and equipment
Right-of-use assets
Environmental Bonds
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Translation reserve
Accumulated losses
Total equity
Note
2021
2020
$
$
7
8a
8b
9
10
11
14
12
13
14
14
15
5,196,846
753,138
395,523
91,360
6,436,867
5,958,789
492,522
141,639
325,410
6,918,360
745,528
51,915
797,443
64,361
64,361
1,156,678
255,183
221,032
89,407
1,722,300
5,536,663
67,121
-
304,604
5,908,388
394,465
394,465
-
-
-
13,355,227
7,630,688
861,804
394,465
12,493,423
7,236,223
29,099,284
3,161,110
277,541
(20,044,512)
12,493,423
21,532,474
2,136,430
(141,000)
(16,291,681)
7,236,223
28 | Fertoz limited
15 | P a g e
16 | P a g e
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
Consolidated statement of financial position
As at 31 December 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Exploration and evaluation assets
Property, plant and equipment
Right-of-use assets
Environmental Bonds
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Translation reserve
Accumulated losses
Total equity
Note
2021
2020
$
$
7
8a
8b
9
10
11
14
12
13
14
14
15
5,196,846
753,138
395,523
91,360
6,436,867
5,958,789
492,522
141,639
325,410
6,918,360
1,156,678
255,183
221,032
89,407
1,722,300
5,536,663
67,121
-
304,604
5,908,388
13,355,227
7,630,688
745,528
51,915
797,443
64,361
64,361
394,465
-
394,465
-
-
861,804
394,465
12,493,423
7,236,223
29,099,284
3,161,110
277,541
(20,044,512)
12,493,423
21,532,474
2,136,430
(141,000)
(16,291,681)
7,236,223
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
Fertoz limited | 29
16 | P a g e
Consolidated statement of changes in equity
For the year ended 31 December 2021
Consolidated statement of changes in equity
For the year ended 31 December 2021
Consolidated statement of cashflows
For the year ended 31 December 2021
Issued
capital
Issued
capital
Accumulated
losses
Accumulated
losses
Share Based
Share Based
Payment
Payment
Reserve
Reserve
Translation
Translation
Reserve
Reserve
Total equity
Total equity
$
$
$
$
$
$
$
$
$
$
Balance at 1 January 2021
Balance at 1 January 2021
21,532,474
21,532,474
(16,291,681)
(16,291,681)
2,136,430
2,136,430
(141,000)
(141,000)
7,236,223
7,236,223
Loss after income tax
Loss after income tax
expense for the period
expense for the period
Other comprehensive
income for the period
Other comprehensive
income for the period
Total comprehensive
Total comprehensive
profit/(loss) for the period
profit/(loss) for the period
Transaction with owners in
Transaction with owners in
their capacity as owners:
their capacity as owners:
Shares issued (Note 15)
Shares issued (Note 15)
Shares issuance costs (Note 15)
Shares issuance costs (Note 15)
Share-based payments (Note 28)
Share-based payments (Note 28)
-
-
(3,752,831)
(3,752,831)
-
-
-
-
(3,752,831)
(3,752,831)
Net cash inflow / (outflow) from operating activities
(1,661,343)
(965,900)
-
-
-
-
-
-
418,541
418,541
418,541
418,541
-
-
(3,752,831)
(3,752,831)
-
-
418,541
418,541
(3,334,290)
(3,334,290)
8,715,800
8,715,800
(1,148,990)
(1,148,990)
-
-
-
-
-
-
-
-
-
-
-
-
1,024,680
1,024,680
-
-
-
-
-
-
8,715,800
8,715,800
(1,148,990)
(1,148,990)
1,024,680
1,024,680
At 31 December 2021
At 31 December 2021
29,099,284
29,099,284
(20,044,512)
(20,044,512)
3,161,110
3,161,110
277,541
277,541
12,493,423
12,493,423
Balance at 1 January 2020
Balance at 1 January 2020
19,606,629
19,606,629
(14,755,966)
(14,755,966)
1,993,494
1,993,494
399,682
399,682
7,243,839
7,243,839
Loss after income tax
Loss after income tax
expense for the period
expense for the period
Other comprehensive
income for the period
Other comprehensive
income for the period
Total comprehensive profit/(loss)
for the period
Total comprehensive profit/(loss)
for the period
Transaction with owners in
Transaction with owners in
their capacity as owners:
their capacity as owners:
Shares issued
Shares issued
Shares issuance costs
Shares issuance costs
Share-based payments
Share-based payments
-
-
(1,535,715)
(1,535,715)
-
-
-
-
(1,535,715)
(1,535,715)
-
-
-
-
-
-
(540,682)
(540,682)
(540,682)
(540,682)
investing activities.
1 Receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450 is shown under
-
-
(1,535,715)
(1,535,715)
-
-
(540,682)
(540,682)
(2,076,397)
(2,076,397)
2,062,730
2,062,730
(136,885)
(136,885)
-
-
-
-
-
-
-
-
-
-
-
-
142,936
142,936
-
-
-
-
-
-
2,062,730
2,062,730
(136,885)
(136,885)
142,936
142,936
At 31 December 2020
At 31 December 2020
21,532,474
21,532,474
(16,291,681)
(16,291,681)
2,136,430
2,136,430
(141,000)
(141,000)
7,236,223
7,236,223
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
Cash flows from operating activities
Receipts from customers 1
Payments to suppliers and employees
Interest received
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation assets
Receipts from sales of material from Fernie
Net cash inflow / (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments for equity raising costs
Lease principal repayments
Net cash inflow / (outflow) from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial period
4
26
4
15
15
14
7
Note
2021
$
2020
$
2,342,669
(4,004,012)
-
-
2,001,145
(2,967,417)
372
(456,497)
(988,418)
943,450
(501,465)
6,519,800
(322,815)
-
-
(10,383)
6,186,602
4,023,794
1,156,678
16,374
5,196,846
-
(134,800)
(134,800)
2,000,000
(136,886)
-
1,863,114
762,414
452,138
(47,874)
1,156,678
30 | Fertoz limited
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The above consolidated statement of cashflows should be read in conjunction with the accompanying note
Consolidated statement of cashflows
Consolidated statement of cashflows
Consolidated statement of cashflows
For the year ended 31 December 2021
For the year ended 31 December 2021
For the year ended 31 December 2021
Cash flows from operating activities
Cash flows from operating activities
Cash flows from operating activities
Receipts from customers 1
Receipts from customers 1
Receipts from customers 1
Payments to suppliers and employees
Payments to suppliers and employees
Payments to suppliers and employees
Interest received
Interest received
Interest received
Note
Note
Note
4
4
4
2021
2021
2021
$
$
$
2020
2020
2020
$
$
$
2,342,669
2,342,669
2,342,669
(4,004,012)
(4,004,012)
(4,004,012)
-
-
-
-
-
-
2,001,145
2,001,145
2,001,145
(2,967,417)
(2,967,417)
(2,967,417)
372
372
372
Net cash inflow / (outflow) from operating activities
Net cash inflow / (outflow) from operating activities
Net cash inflow / (outflow) from operating activities
26
26
26
(1,661,343)
(1,661,343)
(1,661,343)
(965,900)
(965,900)
(965,900)
Cash flows from investing activities
Cash flows from investing activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for property, plant and equipment
Payments for property, plant and equipment
Payments for exploration and evaluation assets
Payments for exploration and evaluation assets
Payments for exploration and evaluation assets
Receipts from sales of material from Fernie
Receipts from sales of material from Fernie
Receipts from sales of material from Fernie
Net cash inflow / (outflow) from investing activities
Net cash inflow / (outflow) from investing activities
Net cash inflow / (outflow) from investing activities
Cash flows from financing activities
Cash flows from financing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from issue of shares
Proceeds from issue of shares
Payments for equity raising costs
Payments for equity raising costs
Payments for equity raising costs
Lease principal repayments
Lease principal repayments
Lease principal repayments
Net cash inflow / (outflow) from financing activities
Net cash inflow / (outflow) from financing activities
Net cash inflow / (outflow) from financing activities
4
4
4
15
15
15
15
15
15
14
14
14
Net increase/(decrease) in cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
Cash and cash equivalents at the beginning of the financial period
Cash and cash equivalents at the beginning of the financial period
Effects of exchange rate changes on cash and cash equivalents
Effects of exchange rate changes on cash and cash equivalents
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial period
Cash and cash equivalents at the end of the financial period
Cash and cash equivalents at the end of the financial period
7
7
7
(456,497)
(456,497)
(456,497)
(988,418)
(988,418)
(988,418)
943,450
943,450
943,450
(501,465)
(501,465)
(501,465)
-
-
-
-
-
-
6,519,800
6,519,800
6,519,800
(322,815)
(322,815)
(322,815)
(10,383)
(10,383)
(10,383)
6,186,602
6,186,602
6,186,602
4,023,794
4,023,794
4,023,794
1,156,678
1,156,678
1,156,678
16,374
16,374
16,374
5,196,846
5,196,846
5,196,846
-
-
-
(134,800)
(134,800)
(134,800)
(134,800)
(134,800)
(134,800)
2,000,000
2,000,000
2,000,000
(136,886)
(136,886)
(136,886)
-
-
-
1,863,114
1,863,114
1,863,114
762,414
762,414
762,414
452,138
452,138
452,138
(47,874)
(47,874)
(47,874)
1,156,678
1,156,678
1,156,678
1 Receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450 is shown under
1 Receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450 is shown under
1 Receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to $943,450 is shown under
investing activities.
investing activities.
investing activities.
The above consolidated statement of cashflows should be read in conjunction with the accompanying note
The above consolidated statement of cashflows should be read in conjunction with the accompanying note
The above consolidated statement of cashflows should be read in conjunction with the accompanying note
Fertoz limited | 31
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18 | P a g e
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies
Note 1. Significant accounting policies
Corporate Information
Corporate Information
The financial report of Fertoz Limited for the year ended 31 December 2021 was approved by the board on 31 March 2022.
The financial report of Fertoz Limited for the year ended 31 December 2021 was approved by the board on 31 March 2022.
Fertoz Limited (the Company) is a public company limited by shares incorporated and domiciled in Australia. The Company’s
Fertoz Limited (the Company) is a public company limited by shares incorporated and domiciled in Australia. The Company’s
registered office is located at Suite 103, Level 1, 2 Queen Street, Melbourne, VIC 3000.
registered office is located at Suite 103, Level 1, 2 Queen Street, Melbourne, VIC 3000.
Basis of preparation
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate
Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board (‘IASB’). The Company is a for-profit entity for financial reporting
issued by the International Accounting Standards Board (‘IASB’). The Company is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
purposes under Australian Accounting Standards.
The separate financial statements of the parent entity, Fertoz Ltd., have not been presented within this financial report as
permitted by the Corporations Act 2001.
The separate financial statements of the parent entity, Fertoz Ltd., have not been presented within this financial report as
permitted by the Corporations Act 2001.
Historical cost convention
Historical cost convention
The financial statements have been prepared under the historical cost convention.
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 2.
financial statements are disclosed in note 2.
Parent entity information
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 24.
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 24.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
Principles of consolidation
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Fertoz Limited (‘company’ or
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Fertoz Limited (‘company’ or
‘parent entity’) as at 31 December 2021 and the results of all subsidiaries for the year then ended. Fertoz Limited and its
‘parent entity’) as at 31 December 2021 and the results of all subsidiaries for the year then ended. Fertoz Limited and its
subsidiaries together are referred to in these financial statements as the ‘consolidated entity’ or the ‘group’.
subsidiaries together are referred to in these financial statements as the ‘consolidated entity’ or the ‘group’.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control
ceases.
ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity
attributable to the parent.
attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and
other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity.
other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity.
Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit
Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit
balance.
balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
together with any gain or loss in profit or loss.
32 | Fertoz limited
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Operating segments
Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the same basis
Operating segments are presented using the ‘management approach’, where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers (“CODM”). The CODM is responsible for the allocation
as the internal reports provided to the Chief Operating Decision Makers (“CODM”). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
of resources to operating segments and assessing their performance.
The financial statements are presented in Australian dollars, which is Fertoz Limited’s functional and presentation currency.
The financial statements are presented in Australian dollars, which is Fertoz Limited’s functional and presentation currency.
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
Foreign currency translation
Foreign currency translation
Foreign currency transactions
Foreign currency transactions
or loss.
or loss.
Foreign operations
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
recognised in other comprehensive income through the foreign currency reserve in equity.
recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is reclassified through profit or loss when the foreign operation or net investment is disposed of.
The foreign currency reserve is reclassified through profit or loss when the foreign operation or net investment is disposed of.
Income tax
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
taxable profits; or
taxable profits; or
future.
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to
purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to
defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
current.
current.
Deferred tax assets and liabilities are always classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
19 | P a g e
19 | P a g e
20 | P a g e
20 | P a g e
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Operating segments
Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the same basis
Operating segments are presented using the ‘management approach’, where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers (“CODM”). The CODM is responsible for the allocation
as the internal reports provided to the Chief Operating Decision Makers (“CODM”). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Fertoz Limited’s functional and presentation currency.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Fertoz Limited’s functional and presentation currency.
Foreign currency transactions
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
or loss.
Foreign operations
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
recognised in other comprehensive income through the foreign currency reserve in equity.
recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is reclassified through profit or loss when the foreign operation or net investment is disposed of.
The foreign currency reserve is reclassified through profit or loss when the foreign operation or net investment is disposed of.
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to
purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to
defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
current.
current.
Deferred tax assets and liabilities are always classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
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Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash
are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash
equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of
equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of
financial position.
financial position.
Inventories
Inventories
Inventories are stated at the lower of cost and net realisable value on a weighted average basis. Cost comprises direct
Inventories are stated at the lower of cost and net realisable value on a weighted average basis. Cost comprises direct
materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed
materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed
overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves
overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves
in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.
in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of
rebates and discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of
rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.
Property, plant and equipment
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over
their expected useful lives as follows:
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over
their expected useful lives as follows:
Plant and equipment
Plant and equipment
3-8 years
3-8 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
period in which they are incurred.
period in which they are incurred.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Leases
Right-of-use assets
A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The group has elected not to recognize a right-of-use asset and corresponding lease liability for short-term leases with terms
of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Leases
Right-of-use assets
A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The group has elected not to recognize a right-of-use asset and corresponding lease liability for short-term leases with terms
of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognized at the commencement date of a lease. The lease liability is initially recognized at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the consolidated entity’s incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
Lease liabilities
A lease liability is recognized at the commencement date of a lease. The lease liability is initially recognized at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the consolidated entity’s incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
34 | Fertoz limited
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Exploration and evaluation assets
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
thereon is written off in the year in which the decision is made.
Impairment of non-financial assets
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount.
exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
amounts are unsecured and are usually paid within 30 days of recognition.
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.
subsequently measured at amortised cost using the effective interest method.
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
cash-generating unit.
cash-generating unit.
Trade and other payables
Trade and other payables
Borrowings
Borrowings
Finance costs
Finance costs
Provisions
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the
time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in
time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in
the provision resulting from the passage of time is recognised as a finance cost.
the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Employee benefits
Short-term employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
Other long-term employee benefits
The liability for long service leaves not expected to be settled within 12 months of the reporting date are measured as the
The liability for long service leaves not expected to be settled within 12 months of the reporting date are measured as the
present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on corporate bond rate with terms to
Expected future payments are discounted using market yields at the reporting date on corporate bond rate with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Defined contribution superannuation expense
Share-based payments
Share-based payments
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
determined by reference to the share price.
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Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Exploration and evaluation assets
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
thereon is written off in the year in which the decision is made.
Impairment of non-financial assets
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount.
exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
cash-generating unit.
cash-generating unit.
Trade and other payables
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.
Provisions
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the
time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in
time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in
the provision resulting from the passage of time is recognised as a finance cost.
the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
Other long-term employee benefits
The liability for long service leaves not expected to be settled within 12 months of the reporting date are measured as the
The liability for long service leaves not expected to be settled within 12 months of the reporting date are measured as the
present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on corporate bond rate with terms to
Expected future payments are discounted using market yields at the reporting date on corporate bond rate with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
determined by reference to the share price.
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Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Employee benefits (continued)
Employee benefits (continued)
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using
either the Monte Carlo, Trinomial or Black-Scholes option pricing model that takes into account the exercise price, the term of
either the Monte Carlo, Trinomial or Black-Scholes option pricing model that takes into account the exercise price, the term of
the option, market based vesting conditions, the impact of dilution, the share price at grant date and expected price volatility
the option, market based vesting conditions, the impact of dilution, the share price at grant date and expected price volatility
of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees
non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees
to receive payment. No account is taken of any other vesting conditions.
to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Monte Carlo or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award
Monte Carlo or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award
was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by
● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by
the expired portion of the vesting period.
the expired portion of the vesting period.
●
●
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is
treated as if they were a modification.
treated as if they were a modification.
Fair value measurement
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the
between market participants at the measurement date; and assumes that the transaction will take place either: in the
principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the
principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the
assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best
assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best
interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that
interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that
are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising
are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising
the use of relevant observable inputs and minimising the use of unobservable inputs.
the use of relevant observable inputs and minimising the use of unobservable inputs.
The carrying values of financial assets and financial liabilities approximate their fair values due to their short-term nature.
The carrying values of financial assets and financial liabilities approximate their fair values due to their short-term nature.
Issued capital
Issued capital
Ordinary shares are classified as equity.
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Dividends
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.
36 | Fertoz limited
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Earnings per share
Earnings per share
Basic earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Fertoz Limited, excluding any costs of
Basic earnings per share is calculated by dividing the profit attributable to the owners of Fertoz Limited, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
shares.
Goods and Services Tax (‘GST’) and other similar taxes
Goods and Services Tax (‘GST’) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Revenue Recognition
Revenue Recognition
Sale of phosphate
Sale of phosphate
Sale of phosphate is recognised when the phosphate is delivered to the customer and there is no unfulfilled obligation that
Sale of phosphate is recognised when the phosphate is delivered to the customer and there is no unfulfilled obligation that
could affect the customers’ acceptance of the phosphate. Delivery occurs when the phosphate has been shipped to the
could affect the customers’ acceptance of the phosphate. Delivery occurs when the phosphate has been shipped to the
specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
accepted the phosphate in accordance with the sales contract the acceptance provisions have lapsed, or the group has
accepted the phosphate in accordance with the sales contract the acceptance provisions have lapsed, or the group has
objective evidence that all criteria for acceptance have been satisfied. Payment is typically due after 30 -45 days of invoice
objective evidence that all criteria for acceptance have been satisfied. Payment is typically due after 30 -45 days of invoice
date. There is no significant financing component in the pricing.
date. There is no significant financing component in the pricing.
Incremental Costs of obtaining Customer Contracts
Incremental Costs of obtaining Customer Contracts
Incremental costs incurred in obtaining customer contracts are capitalised and amortised over the term, where the term is
Incremental costs incurred in obtaining customer contracts are capitalised and amortised over the term, where the term is
greater than 12 months.
greater than 12 months.
Unsatisfied performance obligations
Unsatisfied performance obligations
The Group continues to recognise its contract liabilities under AASB 15 in respect of any unsatisfied performance obligations,
The Group continues to recognise its contract liabilities under AASB 15 in respect of any unsatisfied performance obligations,
which are disclosed as Unearned revenue in the Consolidated Statement of Financial Position.
which are disclosed as Unearned revenue in the Consolidated Statement of Financial Position.
The Group does not recognise adjustments to transition prices or Contract balances where the period between the transfer of
The Group does not recognise adjustments to transition prices or Contract balances where the period between the transfer of
promised goods or services to the customer and payment by customer does not exceed one year.
promised goods or services to the customer and payment by customer does not exceed one year.
A provision for loss making contracts is recorded for the difference between the expected costs of fulfilling a contract and the
A provision for loss making contracts is recorded for the difference between the expected costs of fulfilling a contract and the
expected remaining economic benefits to be received where the forecast remaining costs exceed the forecast remaining
expected remaining economic benefits to be received where the forecast remaining costs exceed the forecast remaining
Financing components
Financing components
Loss making contracts
Loss making contracts
benefits.
benefits.
Interest
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
net carrying amount of the financial asset.
Trade and other receivables
Trade and other receivables
Trade and other receivables are held for collection of contractual cash flows where those cash flows represent solely payments
Trade and other receivables are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance
of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance
income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss
income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss
and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as
and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as
separate line item in the statement of profit or loss and other comprehensive income.
separate line item in the statement of profit or loss and other comprehensive income.
23 | P a g e
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Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Earnings per share
Earnings per share
Basic earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Fertoz Limited, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Basic earnings per share is calculated by dividing the profit attributable to the owners of Fertoz Limited, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
Goods and Services Tax (‘GST’) and other similar taxes
Goods and Services Tax (‘GST’) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Revenue Recognition
Revenue Recognition
Sale of phosphate
Sale of phosphate
Sale of phosphate is recognised when the phosphate is delivered to the customer and there is no unfulfilled obligation that
Sale of phosphate is recognised when the phosphate is delivered to the customer and there is no unfulfilled obligation that
could affect the customers’ acceptance of the phosphate. Delivery occurs when the phosphate has been shipped to the
could affect the customers’ acceptance of the phosphate. Delivery occurs when the phosphate has been shipped to the
specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
accepted the phosphate in accordance with the sales contract the acceptance provisions have lapsed, or the group has
accepted the phosphate in accordance with the sales contract the acceptance provisions have lapsed, or the group has
objective evidence that all criteria for acceptance have been satisfied. Payment is typically due after 30 -45 days of invoice
objective evidence that all criteria for acceptance have been satisfied. Payment is typically due after 30 -45 days of invoice
date. There is no significant financing component in the pricing.
date. There is no significant financing component in the pricing.
Incremental Costs of obtaining Customer Contracts
Incremental Costs of obtaining Customer Contracts
Incremental costs incurred in obtaining customer contracts are capitalised and amortised over the term, where the term is
greater than 12 months.
Incremental costs incurred in obtaining customer contracts are capitalised and amortised over the term, where the term is
greater than 12 months.
Unsatisfied performance obligations
Unsatisfied performance obligations
The Group continues to recognise its contract liabilities under AASB 15 in respect of any unsatisfied performance obligations,
which are disclosed as Unearned revenue in the Consolidated Statement of Financial Position.
The Group continues to recognise its contract liabilities under AASB 15 in respect of any unsatisfied performance obligations,
which are disclosed as Unearned revenue in the Consolidated Statement of Financial Position.
Financing components
Financing components
The Group does not recognise adjustments to transition prices or Contract balances where the period between the transfer of
promised goods or services to the customer and payment by customer does not exceed one year.
The Group does not recognise adjustments to transition prices or Contract balances where the period between the transfer of
promised goods or services to the customer and payment by customer does not exceed one year.
Loss making contracts
Loss making contracts
A provision for loss making contracts is recorded for the difference between the expected costs of fulfilling a contract and the
A provision for loss making contracts is recorded for the difference between the expected costs of fulfilling a contract and the
expected remaining economic benefits to be received where the forecast remaining costs exceed the forecast remaining
expected remaining economic benefits to be received where the forecast remaining costs exceed the forecast remaining
benefits.
benefits.
Interest
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
net carrying amount of the financial asset.
Trade and other receivables
Trade and other receivables
Trade and other receivables are held for collection of contractual cash flows where those cash flows represent solely payments
Trade and other receivables are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance
of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance
income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss
income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss
and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as
and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as
separate line item in the statement of profit or loss and other comprehensive income.
separate line item in the statement of profit or loss and other comprehensive income.
Fertoz limited | 37
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Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 1. Significant accounting policies (continued)
Note 1. Significant accounting policies (continued)
Change in Accounting Policies and Accounting Standards
There were no new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (‘AASB’) that are mandatory for the current reporting period and that had a material impact on the financial
statements.
Change in Accounting Policies and Accounting Standards
There were no new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (‘AASB’) that are mandatory for the current reporting period and that had a material impact on the financial
statements.
Note 2. Critical accounting judgements, estimates and assumptions
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
below.
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Going Concern (continued)
These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a
going concern.
•
•
•
The directors believe that the going concern basis of preparation is appropriate due to the following reasons:
The group has a cash balance of $5,196,846
proven ability of the Group to raise the necessary funding or settle debts via the issuance of shares; and
the group is operating an expanding rock phosphate and organic fertilizer business and plans to continue to
expand this business in the coming year.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial report. This financial
report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue
as a going concern.
Short term lease
The Group has a short-term office lease arrangement that is a month-to-month lease. The lease arrangement is such that,
either party to the contract can give notice to terminate the arrangement or the contract does not oblige either party to make
a payment on termination. As a result, the Group has assessed the lease arrangement to be non- enforceable, therefore
continues to recognise any lease payments as an expense through the profit or loss.
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into two operating segments based on geographical location being Australian and
Canadian operations, reflected by the subsidiaries in the Group. These operating segments are based on the internal reports
that are reviewed and used by the board of Directors (who are identified as the Chief Operating Decision Makers (“CODM”)) in
assessing performance and in determining the allocation of resources.
The CODM reviews earnings before and after tax. The accounting policies adopted for internal reporting to the CODM are
consistent with those adopted in the financial statements.
Where applicable, corporate costs, finance costs, interest revenue, tax and foreign currency gains and losses are not allocated
to segments as they are not considered part of the core operations of the segments and are managed on a consolidated entity
basis thus disclosed under unallocated category
Consolidated – 31 December 2021
Australia
North
America
$
Fertoz Unallocated
Total
Carbon1
$
$
Revenue
Sales of phosphate fertilizer
Total revenue and other income
1,093,006
1,093,006
1,150,5952
1,150,495
-
- 2,243,501
- 2,243,501
Profit/(Loss) before income tax
expense
Income tax revenue
Profit/(Loss) after income tax
expense
Assets
Segment assets
Segment liabilities
Segment net assets
36,228
(956,218)
(148,890)
(1,919,551)
(2,988,431)
-
-
-
36,228
(520,213)
(148,890)
(1,343,756)
(2,988,431)
542,635
(56,071)
486,564
8,430,888
(743,429)
7,687,459
4,381,704
13,355,227
(62,305)
(861,805)
4,319,399
12,493,422
1 The group’s objective is to develop the sector of carbon credits
2 This does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to
$943,450
$
-
-
-
-
-
$
-
Revenue recognition
Revenue recognition
The group has recognised revenue net of trade discounts and adjustment for moisture content during the year. The customer
The group has recognised revenue net of trade discounts and adjustment for moisture content during the year. The customer
is entitled to receive a discount if the moisture contents in the product are above certain levels as specified in the contract.
is entitled to receive a discount if the moisture contents in the product are above certain levels as specified in the contract.
Management have determined that the discount applied as a result of moisture content has been adjusted for when
Management have determined that the discount applied as a result of moisture content has been adjusted for when
recognising the revenue and a significant reversal in the amount of revenue recognised will not occur, therefore it is
recognising the revenue and a significant reversal in the amount of revenue recognised will not occur, therefore it is
appropriate to recognise revenue on the invoiced amount net of discounts upon delivery of the product.
appropriate to recognise revenue on the invoiced amount net of discounts upon delivery of the product.
Revenue from the sale of product removed from the group’s exploration sites has been offset against capitalised exploration
Revenue from the sale of product removed from the group’s exploration sites has been offset against capitalised exploration
and evaluation expenditure as the sale of this product is part of the bulk sampling and evaluation phase for these tenements.
and evaluation expenditure as the sale of this product is part of the bulk sampling and evaluation phase for these tenements.
Trade Receivables
Trade Receivables
The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables. To measure expected credit losses, trade receivables have been grouped based on shared
allowance for all trade receivables. To measure expected credit losses, trade receivables have been grouped based on shared
credit risk characteristics and the days past due. The group has concluded that the expected loss rates for trade receivables are
credit risk characteristics and the days past due. The group has concluded that the expected loss rates for trade receivables are
a reasonable approximation based on payment profiles of sales over a period of 36 months before 31 December 2021 and the
a reasonable approximation based on payment profiles of sales over a period of 36 months before 31 December 2021 and the
corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current
corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
Share-based payment transactions
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using market price of the shares or
equity instruments at the date at which they are granted. The fair value is determined by using market price of the shares or
either the Monte Carlo or Black-Scholes model taking into account the terms and conditions upon which the instruments were
either the Monte Carlo or Black-Scholes model taking into account the terms and conditions upon which the instruments were
granted. These models require a number of assumptions to be made including the expected future volatility of the share price,
granted. These models require a number of assumptions to be made including the expected future volatility of the share price,
the estimated vesting date and the risk-free interest rate. The accounting estimates and assumptions relating to equity-settled
the estimated vesting date and the risk-free interest rate. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
period but may impact profit or loss and equity.
period but may impact profit or loss and equity.
Exploration and evaluation costs
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to
these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
this determination is made.
Going Concern
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and settlement of liabilities in the normal course of business.
activities and the realisation of assets and settlement of liabilities in the normal course of business.
As disclosed in the financial statements, the Group achieved a net loss after tax of $3,752,831 and net operating cash outflows
As disclosed in the financial statements, the Group achieved a net loss after tax of $3,752,831 and net operating cash outflows
of $1,661,343 for the year ended 31 December 2021. As at 31 December 2021 the Group had cash of $5,196,876.
of $1,661,343 for the year ended 31 December 2021. As at 31 December 2021 the Group had cash of $5,196,876.
The ability of the Group to continue as a going concern is principally dependent upon the following conditions:
The ability of the Group to continue as a going concern is principally dependent upon the following conditions:
•
•
•
the ability of the Group to meet its cashflow forecasts;
the ability of the Group to raise capital, as and when necessary; and
the ability of the Group to sell non-core assets.
the ability of the Group to meet its cashflow forecasts;
the ability of the Group to raise capital, as and when necessary; and
the ability of the Group to sell non-core assets.
•
•
•
38 | Fertoz limited
25 | P a g e
25 | P a g e
26 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Going Concern (continued)
Going Concern (continued)
These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a
going concern.
These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a
going concern.
The directors believe that the going concern basis of preparation is appropriate due to the following reasons:
The directors believe that the going concern basis of preparation is appropriate due to the following reasons:
The group has a cash balance of $5,196,846
proven ability of the Group to raise the necessary funding or settle debts via the issuance of shares; and
the group is operating an expanding rock phosphate and organic fertilizer business and plans to continue to
expand this business in the coming year.
The group has a cash balance of $5,196,846
proven ability of the Group to raise the necessary funding or settle debts via the issuance of shares; and
the group is operating an expanding rock phosphate and organic fertilizer business and plans to continue to
expand this business in the coming year.
•
•
•
•
•
•
Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial report. This financial
report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue
as a going concern.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial report. This financial
report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue
as a going concern.
Short term lease
Short term lease
The Group has a short-term office lease arrangement that is a month-to-month lease. The lease arrangement is such that,
The Group has a short-term office lease arrangement that is a month-to-month lease. The lease arrangement is such that,
either party to the contract can give notice to terminate the arrangement or the contract does not oblige either party to make
either party to the contract can give notice to terminate the arrangement or the contract does not oblige either party to make
a payment on termination. As a result, the Group has assessed the lease arrangement to be non- enforceable, therefore
a payment on termination. As a result, the Group has assessed the lease arrangement to be non- enforceable, therefore
continues to recognise any lease payments as an expense through the profit or loss.
continues to recognise any lease payments as an expense through the profit or loss.
Note 3. Operating segments
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into two operating segments based on geographical location being Australian and
Canadian operations, reflected by the subsidiaries in the Group. These operating segments are based on the internal reports
that are reviewed and used by the board of Directors (who are identified as the Chief Operating Decision Makers (“CODM”)) in
assessing performance and in determining the allocation of resources.
Identification of reportable operating segments
The consolidated entity is organised into two operating segments based on geographical location being Australian and
Canadian operations, reflected by the subsidiaries in the Group. These operating segments are based on the internal reports
that are reviewed and used by the board of Directors (who are identified as the Chief Operating Decision Makers (“CODM”)) in
assessing performance and in determining the allocation of resources.
The CODM reviews earnings before and after tax. The accounting policies adopted for internal reporting to the CODM are
consistent with those adopted in the financial statements.
The CODM reviews earnings before and after tax. The accounting policies adopted for internal reporting to the CODM are
consistent with those adopted in the financial statements.
Where applicable, corporate costs, finance costs, interest revenue, tax and foreign currency gains and losses are not allocated
to segments as they are not considered part of the core operations of the segments and are managed on a consolidated entity
basis thus disclosed under unallocated category
Where applicable, corporate costs, finance costs, interest revenue, tax and foreign currency gains and losses are not allocated
to segments as they are not considered part of the core operations of the segments and are managed on a consolidated entity
basis thus disclosed under unallocated category
Consolidated – 31 December 2021
Consolidated – 31 December 2021
Australia
Australia
North
North
America
America
$
$
Fertoz Unallocated
Fertoz Unallocated
Carbon1
Carbon1
$
$
$
$
$
$
1,093,006
1,093,006
1,093,006
1,093,006
1,150,5952
1,150,495
1,150,5952
1,150,495
-
-
-
-
36,228
36,228
-
-
36,228
36,228
(956,218)
(956,218)
-
-
(148,890)
(148,890)
-
-
(520,213)
(520,213)
(148,890)
(148,890)
Total
Total
$
$
- 2,243,501
- 2,243,501
- 2,243,501
- 2,243,501
(1,919,551)
(2,988,431)
(1,919,551)
(2,988,431)
-
-
(1,343,756)
(1,343,756)
-
-
(2,988,431)
(2,988,431)
Revenue
Sales of phosphate fertilizer
Total revenue and other income
Revenue
Sales of phosphate fertilizer
Total revenue and other income
Profit/(Loss) before income tax
expense
Income tax revenue
Profit/(Loss) after income tax
expense
Profit/(Loss) before income tax
expense
Income tax revenue
Profit/(Loss) after income tax
expense
Assets
Segment assets
Segment liabilities
Segment net assets
Assets
Segment assets
Segment liabilities
Segment net assets
542,635
(56,071)
486,564
542,635
(56,071)
486,564
8,430,888
(743,429)
7,687,459
8,430,888
(743,429)
7,687,459
-
-
-
-
-
-
4,381,704
4,381,704
(62,305)
(62,305)
4,319,399
4,319,399
13,355,227
13,355,227
(861,805)
(861,805)
12,493,422
12,493,422
1 The group’s objective is to develop the sector of carbon credits
2 This does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to
$943,450
1 The group’s objective is to develop the sector of carbon credits
2 This does not include receipt from sale of materials removed from the Company’s Fernie project in Alberta amounting to
$943,450
Fertoz limited | 39
26 | P a g e
26 | P a g e
926,615
2,105,146
856,594
70,021
Total
Total
$
$
2,035,125
70,021
Australia
Australia
$
$
856,594
70,021
926,615
2,035,125
70,021
2,105,146
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
North
North
America
America
$
$
1,178,531
-
1,178,531
-
1,178,531
1,178,531
Unallocated
Unallocated
$
$
-
-
-
-
-
-
Note 3. Operating segments (Continued)
Note 3. Operating segments (Continued)
Consolidated – 31 December 2020
Consolidated – 31 December 2020
Revenue
Sales of phosphate fertilizer
Other income
Revenue
Sales of phosphate fertilizer
Other income
Total revenue and other income
Total revenue and other income
Numerical reconciliation of income tax and tax at statutory rate
Profit/ (loss) before income tax expenses from continuing operations
(3,752,831)
(1,535,715)
Tax at statutory tax rate of 26% (2020: 27.5%)
(975,736)
(422,322)
Tax effect on amounts which are not deductible/(taxable) in calculating income
Tax adjustment for tax rate variance in foreign jurisdictions
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 5. Loss before income tax
Loss before income tax includes the following specific expenses
Share based payments
Impairment of inventory
Note 6. Income tax
Income tax expenses
Current tax expense
Deferred tax expense
Aggregate income tax expenses
Entertainment expenses
Share-based payments
Under/Over Provision
NANE Income
Cost Base Items
Deferred tax assets derecognised/(recognised)
Income tax expense
Deferred tax assets and liabilities
Recognised deferred tax assets
Carried forward losses
Deferred tax asset at 15% (2020:15%)
Recognised deferred tax liabilities
Assessable temporary differences
Exploration and evaluation assets
AASB6 Right of Use Asset
Unrealised FX
Deferred tax liability at 15% (2020:15%)
Net deferred tax assets/(liabilities)
Unrecognised deferred tax assets
Unused tax losses
Unused capital losses
Capital raising costs in equity
Accruals and provisions
Other deductible temporary differences
AASB16 Lease Liability
Consolidated
2021
$
2019
$
2,394,505
-
205,666
344,052
Consolidated
2021
$
(313,493)
313,493
-
2020
$
(237,398)
237,398
-
-
-
-
-
111,296
72
622,571
(71,872)
176
313,493
133,088
1
56,558
776
(5,500)
237,398
-
-
1,039,089
1,039,089
830,499
830,499
(1,009,093)
(830,499)
(21,246)
(8,750)
(1,039,089)
(830,499)
-
-
-
-
18,826,080
18,070,971
10,000
384,535
39,671
5,425
116,276
10,000
229,479
40,070
20,981
19,216,752
18,371,502
Profit/(Loss) before income tax expense
Income tax revenue
Profit/(Loss) before income tax expense
Income tax revenue
Profit/(Loss) after income tax expense
Profit/(Loss) after income tax expense
79,733
79,733
(1,064,705)
(1,064,705)
(550,743)
(550,743)
(1,535,715)
(1,535,715)
-
-
-
-
-
-
-
-
79,733
79,733
(1,064,705)
(1,064,705)
(550,743)
(550,743)
(1,535,715)
(1,535,715)
Assets
Segment assets
Segment liabilities
Segment net assets
Assets
Segment assets
Segment liabilities
Segment net assets
Segment non-current asset
Segment non-current asset
551,881
551,881
(84,190)
(84,190)
471,691
471,691
6,462,104
6,462,104
(212,572)
(212,572)
6,249,532
6,249,532
616,703
(97,704)
518,999
616,703
(97,704)
518,999
7,630,688
7,630,688
(394,466)
(394,466)
7,236,222
7,236,222
Non-current assets, excluding financial instruments and deferred tax assets, located
in:
Non-current assets, excluding financial instruments and deferred tax assets, located
in:
Australia
Australia
Canada
Canada
Note 4. Revenue
Note 4. Revenue
Sales Revenue
Sale of phosphate fertilizer products – at point in time
Sales Revenue
Sale of phosphate fertilizer products – at point in time
Consolidated
Consolidated
2021
2021
$
$
2020
2020
$
$
-
6,592,950
6,592,950
-
6,592,950
6,592,950
-
5,908,388
5,908,388
-
5,908,388
5,908,388
Consolidated
Consolidated
2021
2021
$
$
2020
2020
$
$
2,243,501
2,243,501
2,243,501
2,243,501
2,035,125
2,035,125
2,035,125
2,035,125
During the year, the group sold material it removed as bulk sample from its Fernie Project for a total amount of $943,450.
The proceeds were recognised against the carrying cost of the Fernie Project as the project is still in the exploration and
evaluation phase and accounted for under AASB 6.
During the year, the group sold material it removed as bulk sample from its Fernie Project for a total amount of $943,450.
The proceeds were recognised against the carrying cost of the Fernie Project as the project is still in the exploration and
evaluation phase and accounted for under AASB 6.
Other income
Interest
Other income
Interest
Covid 19 cashflow and Jobkeeper funding
Other income
Covid 19 cashflow and Jobkeeper funding
Other income
40 | Fertoz limited
373
373
-
12,898
12,898
-
12,898
12,898
589
589
58,250
11,771
70,021
58,250
11,771
70,021
Deferred tax assets not taken up at 26% (2020: 27.5%)
4,996,533
5,052,163
27 | P a g e
27 | P a g e
28 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 5. Loss before income tax
Note 5. Loss before income tax
Note 5. Loss before income tax
Loss before income tax includes the following specific expenses
Loss before income tax includes the following specific expenses
Loss before income tax includes the following specific expenses
Share based payments
Impairment of inventory
Share based payments
Impairment of inventory
Share based payments
Impairment of inventory
Note 6. Income tax
Note 6. Income tax
Note 6. Income tax
Income tax expenses
Current tax expense
Income tax expenses
Income tax expenses
Deferred tax expense
Current tax expense
Current tax expense
Aggregate income tax expenses
Deferred tax expense
Deferred tax expense
Aggregate income tax expenses
Aggregate income tax expenses
Numerical reconciliation of income tax and tax at statutory rate
Profit/ (loss) before income tax expenses from continuing operations
Numerical reconciliation of income tax and tax at statutory rate
Profit/ (loss) before income tax expenses from continuing operations
Tax at statutory tax rate of 26% (2020: 27.5%)
Tax effect on amounts which are not deductible/(taxable) in calculating income
Tax at statutory tax rate of 26% (2020: 27.5%)
Tax effect on amounts which are not deductible/(taxable) in calculating income
Numerical reconciliation of income tax and tax at statutory rate
Profit/ (loss) before income tax expenses from continuing operations
Tax at statutory tax rate of 26% (2020: 27.5%)
Tax effect on amounts which are not deductible/(taxable) in calculating income
Tax adjustment for tax rate variance in foreign jurisdictions
Entertainment expenses
Tax adjustment for tax rate variance in foreign jurisdictions
Tax adjustment for tax rate variance in foreign jurisdictions
Share-based payments
Entertainment expenses
Entertainment expenses
Under/Over Provision
Share-based payments
Share-based payments
NANE Income
Under/Over Provision
Under/Over Provision
Cost Base Items
NANE Income
NANE Income
Deferred tax assets derecognised/(recognised)
Cost Base Items
Cost Base Items
Income tax expense
Deferred tax assets derecognised/(recognised)
Deferred tax assets derecognised/(recognised)
Income tax expense
Income tax expense
Deferred tax assets and liabilities
Recognised deferred tax assets
Deferred tax assets and liabilities
Deferred tax assets and liabilities
Carried forward losses
Recognised deferred tax assets
Recognised deferred tax assets
Deferred tax asset at 15% (2020:15%)
Carried forward losses
Carried forward losses
Recognised deferred tax liabilities
Deferred tax asset at 15% (2020:15%)
Deferred tax asset at 15% (2020:15%)
Assessable temporary differences
Recognised deferred tax liabilities
Recognised deferred tax liabilities
Exploration and evaluation assets
Assessable temporary differences
Assessable temporary differences
AASB6 Right of Use Asset
Exploration and evaluation assets
Exploration and evaluation assets
Unrealised FX
AASB6 Right of Use Asset
AASB6 Right of Use Asset
Deferred tax liability at 15% (2020:15%)
Unrealised FX
Unrealised FX
Net deferred tax assets/(liabilities)
Deferred tax liability at 15% (2020:15%)
Deferred tax liability at 15% (2020:15%)
Net deferred tax assets/(liabilities)
Net deferred tax assets/(liabilities)
Unrecognised deferred tax assets
Unused tax losses
Unrecognised deferred tax assets
Unrecognised deferred tax assets
Unused capital losses
Unused tax losses
Unused tax losses
Capital raising costs in equity
Unused capital losses
Unused capital losses
Accruals and provisions
Capital raising costs in equity
Capital raising costs in equity
Other deductible temporary differences
Accruals and provisions
Accruals and provisions
AASB16 Lease Liability
Other deductible temporary differences
Other deductible temporary differences
AASB16 Lease Liability
AASB16 Lease Liability
Deferred tax assets not taken up at 26% (2020: 27.5%)
Deferred tax assets not taken up at 26% (2020: 27.5%)
Deferred tax assets not taken up at 26% (2020: 27.5%)
Consolidated
Consolidated
2021
Consolidated
$
2021
2021
$
$
2019
$
2019
2019
$
$
2,394,505
-
2,394,505
-
2,394,505
-
205,666
344,052
205,666
344,052
205,666
344,052
Consolidated
Consolidated
Consolidated
2021
$
2021
2021
$
$
(313,493)
313,493
(313,493)
(313,493)
-
313,493
313,493
-
-
2020
$
2020
2020
$
$
(237,398)
237,398
(237,398)
(237,398)
-
237,398
237,398
-
-
(3,752,831)
(1,535,715)
(3,752,831)
(3,752,831)
(975,736)
(1,535,715)
(1,535,715)
(422,322)
(975,736)
(975,736)
111,296
72
111,296
111,296
622,571
72
72
(71,872)
622,571
622,571
-
(71,872)
(71,872)
176
-
-
313,493
176
176
-
313,493
313,493
-
-
1,039,089
1,039,089
1,039,089
1,039,089
1,039,089
1,039,089
-
(1,009,093)
-
-
(21,246)
(1,009,093)
(1,009,093)
(8,750)
(21,246)
(21,246)
(1,039,089)
(8,750)
(8,750)
-
(1,039,089)
(1,039,089)
-
-
18,826,080
10,000
18,826,080
18,826,080
384,535
10,000
10,000
39,671
384,535
384,535
5,425
39,671
39,671
116,276
5,425
5,425
19,216,752
116,276
116,276
19,216,752
19,216,752
4,996,533
(422,322)
(422,322)
133,088
1
133,088
133,088
56,558
1
1
776
56,558
56,558
(5,500)
776
776
-
(5,500)
(5,500)
237,398
-
-
-
237,398
237,398
-
-
830,499
830,499
830,499
830,499
830,499
830,499
-
(830,499)
-
-
-
(830,499)
(830,499)
-
-
-
(830,499)
-
-
-
(830,499)
(830,499)
-
-
18,070,971
10,000
18,070,971
18,070,971
229,479
10,000
10,000
40,070
229,479
229,479
20,981
40,070
40,070
20,981
20,981
18,371,502
18,371,502
18,371,502
5,052,163
4,996,533
4,996,533
5,052,163
5,052,163
28 | P a g e
Fertoz limited | 41
28 | P a g e
28 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 7. Current assets – Cash and cash equivalents
Note 7. Current assets – Cash and cash equivalents
Cash at bank
Cash at bank
Consolidated
Consolidated
2021
2021
$
$
5,196,846
5,196,846
5,196,846
5,196,846
2020
2020
$
$
1,156,678
1,156,678
1,156,678
1,156,678
Reconciliation to cash and cash equivalents at the end of the financial year
The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of
cash flows as follows:
Reconciliation to cash and cash equivalents at the end of the financial year
The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of
cash flows as follows:
Balances as above
Balances as above
Balance as per statement of cashflows
Balance as per statement of cashflows
5,196,846
5,196,846
5,196,846
5,196,846
1,156,678
1,156,678
1,156,678
1,156,678
Note 8a. Current assets – Trade and other receivables
Note 8a. Current assets – Trade and other receivables
Trade receivables
Less: expected credit loss provision
Other receivables
Trade receivables
Less: expected credit loss provision
Other receivables
Consolidated
Consolidated
2021
2021
$
$
497,254
497,254
(11,110)
(11,110)
266,994
266,994
2020
2020
$
$
255,914
255,914
(11,214)
(11,214)
10,483
10,483
753,138
753,138
255,183
255,183
Upon initial recognition of the amount receivable, the Group has applied the simplified approach permitted by AASB 9
Upon initial recognition of the amount receivable, the Group has applied the simplified approach permitted by AASB 9
which requires expected lifetime losses to be recognized from initial recognition of the receivable. At 31 December
which requires expected lifetime losses to be recognized from initial recognition of the receivable. At 31 December
2021, a provision on certain receivables amounting to $11,110 was maintained.
2021, a provision on certain receivables amounting to $11,110 was maintained.
Note 8b. Current assets – Inventory
Note 8b. Current assets – Inventory
Inventory consists of the following
Crushed raw ore
Finished products
Inventory consists of the following
Crushed raw ore
Finished products
Consolidated
Consolidated
2021
2021
$
$
330,909
330,909
64,614
64,614
395,523
395,523
2020
2020
$
$
194,038
194,038
26,994
26,994
221,032
221,032
During the year ended 31 December 2020, the company impaired inventory in North America by an amount of $344,052
following deterioration of the fertilizers due weather conditions.
During the year ended 31 December 2020, the company impaired inventory in North America by an amount of $344,052
following deterioration of the fertilizers due weather conditions.
Note 9. Current assets – Other current assets
Note 9. Current assets – Other current assets
GST receivable
Other prepayments
GST receivable
Other prepayments
Consolidated
Consolidated
2021
2021
$
$
91,360
91,360
-
-
91,360
91,360
2020
2020
$
$
9,295
9,295
80,112
80,112
89,407
89,407
42 | Fertoz limited
29 | P a g e
29 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 10. Non-current assets – Exploration and evaluation assets
Note 10. Non-current assets – Exploration and evaluation assets
Exploration and evaluation assets, at cost
Exploration and evaluation assets, at cost
Reconciliations of the carrying amounts at the beginning and the end of the current
and previous financial year are set out below
Reconciliations of the carrying amounts at the beginning and the end of the current
and previous financial year are set out below
Movements in property, plant and equipment
Movements in property, plant and equipment
Carrying amount at beginning of the period
Carrying amount at beginning of the period
Additions
Additions
Proceeds from sale of material removed from Fernie
Proceeds from sale of material removed from Fernie
Foreign exchange movement
Foreign exchange movement
Carrying amount at the end of period
Carrying amount at the end of period
Consolidated
Consolidated
2021
2021
$
$
2020
2020
$
$
5,958,789
5,958,789
5,536,663
5,536,663
5,536,663
5,536,663
988,418
988,418
(943,450)
(943,450)
377,158
377,158
5,958,789
5,958,789
5,833,645
5,833,645
134,800
134,800
-
-
(431,782)
(431,782)
5,536,663
5,536,663
Recoverability of the carrying amount of exploration ad evaluation assets is dependent on the successful development and
commercial exploitation of projects or alternatively through the sale of the area of interest.
Recoverability of the carrying amount of exploration ad evaluation assets is dependent on the successful development and
commercial exploitation of projects or alternatively through the sale of the area of interest.
Note 11. Non-current assets – Property, plant and equipment
Note 11. Non-current assets – Property, plant and equipment
Cost or valuation
At 1 January 2020
Exchange difference
Balance at 31 December 2020
Additions
Exchange difference
Balance at 31 December 2021
Cost or valuation
At 1 January 2020
Exchange difference
Balance at 31 December 2020
Additions
Exchange difference
Balance at 31 December 2021
Accumulated depreciation
At 1 January 2020
Charge for the year
Exchange difference
Balance at 31 December 2020
Charge for the year
Exchange difference
Balance at 31 December 2021
Accumulated depreciation
At 1 January 2020
Charge for the year
Exchange difference
Balance at 31 December 2020
Charge for the year
Exchange difference
Balance at 31 December 2021
Net book value
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
At 31 December 2020
Plant & Equipment
Plant & Equipment
$
$
164,290
164,290
(11,588)
(11,588)
152,702
152,702
-
-
10,110
10,110
162,812
162,812
Asset under
Asset under
Construction1
Construction1
$
$
-
-
-
-
-
-
-
-
429,699
429,699
429,699
429,699
81,450
81,450
10,335
10,335
(6,204)
(6,204)
85,581
85,581
8,678
8,678
5,730
5,730
99,989
99,989
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62,823
62,823
429,699
429,699
67,121
67,121
-
-
Note 1
Asset under construction consists of a granulator which is currently under installation.
Note 1
Asset under construction consists of a granulator which is currently under installation.
Total
Total
$
$
164,290
164,290
(11,588)
(11,588)
152,702
152,702
429,699
429,699
10,110
10,110
592,511
592,511
81,450
81,450
10,335
10,335
(6,204)
(6,204)
85,581
85,581
8,678
8,678
5,730
5,730
99,989
99,989
492,522
492,522
67,121
67,121
Fertoz limited | 43
30 | P a g e
30 | P a g e
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 12. Non-curent assets – Environmental bonds
Note 12. Non-curent assets – Environmental bonds
Movements in Environmental bonds
Movements in Environmental bonds
Carrying amount at beginning of the year
Carrying amount at beginning of the year
Foreign exchange movement
Foreign exchange movement
Carrying amount at the end of the year
Carrying amount at the end of the year
Note 13. Current liabilities -Trade and other payables
Note 13. Current liabilities -Trade and other payables
Trade creditors
Accruals
Other payables
Trade creditors
Accruals
Other payables
Refer to note 18 for further information on financial instruments.
Refer to note 18 for further information on financial instruments.
Note 14. Right-of-use assets and lease liabilities
Note 14. Right-of-use assets and lease liabilities
Consolidated
Consolidated
2021
2021
$
$
304,604
304,604
20,806
20,806
325,410
325,410
2020
2020
$
$
328,451
328,451
(23,847)
(23,847)
304,604
304,604
Consolidated
Consolidated
2021
2021
$
$
664,211
664,211
75,340
75,340
5,977
5,977
745,528
745,528
2020
2020
$
$
312,848
312,848
67,657
67,657
13,961
13,961
394,466
394,466
The group has leased assets – motor vehicle and office during the year ended 31 December 2021. Information about the leases
is presented below.
The group has leased assets – motor vehicle and office during the year ended 31 December 2021. Information about the leases
is presented below.
Right-of-use assets
Right-of-use assets
At 1 January 2021
At 1 January 2021
Additions
Additions
Amortisation
Amortisation
Exchange difference
Exchange difference
Lease liabilities
Lease liabilities
At 1 January 2021
At 1 January 2021
New leases
New leases
Interest expenses
Interest expenses
Lease payments
Lease payments
Foreign exchange movement
Foreign exchange movement
At 31 December 2021
At 31 December 2021
Lease liability within one year
Lease liability within one year
Lease liability between 1-5 years
Lease liability between 1-5 years
Motor
Motor
Vehicle
Vehicle
Office
Office
Building
Building
Total
Total
$
$
$
$
$
$
-
-
83,403
83,403
(2,264)
(2,264)
(53)
(53)
81,086
81,086
-
-
69,203
69,203
(8,451)
(8,451)
(199)
(199)
60,553
60,553
-
-
152,606
152,606
(10,715)
(10,715)
(252)
(252)
141,639
141,639
Motor
Motor
Vehicle
Vehicle
Office
Office
Building
Building
Total
Total
$
$
$
$
$
$
-
-
56,606
56,606
277
277
(1,682)
(1,682)
(13)
(13)
55,188
55,188
17,840
17,840
37,348
37,348
-
-
69,203
69,203
649
649
(8,700)
(8,700)
(63)
(63)
61,089
61,089
-
-
125,809
125,809
926
926
(10,382)
(10,382)
(76)
(76)
116,277
116,277
34,075
34,075
27,014
27,014
51,915
51,915
64,362
64,362
An amount of $926 has been recognised in the income statement for the year ended 31 December 2021. Amount recognised
in the statement of cashflows is $10,382.
An amount of $926 has been recognised in the income statement for the year ended 31 December 2021. Amount recognised
in the statement of cashflows is $10,382.
44 | Fertoz limited
31 | P a g e
31 | P a g e
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 14. Leases (continued)
Note 14. Leases (continued)
The group leases office space which typically runs for two years. The group has the option to renew the lease under the same
The group leases office space which typically runs for two years. The group has the option to renew the lease under the same
conditions at the end of the lease. Lease liability recognised for the year ended 31 December 2021 amounted to $61,089.
conditions at the end of the lease. Lease liability recognised for the year ended 31 December 2021 amounted to $61,089.
The group leases motor vehicle with a lease term of 3 years. At the expiry of the lease, the group has the option to buy the
vehicle for US $5,911.
The group leases motor vehicle with a lease term of 3 years. At the expiry of the lease, the group has the option to buy the
vehicle for US $5,911.
Note 15. Equity – Issued share capital
Note 15. Equity – Issued share capital
Ordinary shares – fully paid
Ordinary shares – fully paid
Movements in share capital
Movements in share capital
2021
2021
Number of
Number of
shares
shares
2020
2020
Number of
Number of
shares
shares
2021
2021
2020
2020
$
$
$
$
227,600,960
227,600,960
155,321,628
155,321,628
29,099,284
29,099,284
21,532,474
21,532,474
Details
Details
Date
Date
No of Shares
No of Shares
Issued Price
($)
Issued Price
($)
Balance
Balance
Private placement
Private placement
Shares1
Shares1
Share issuance costs
Share issuance costs
Balance
Balance
Rights issue2
Rights issue2
Placement3
Placement3
Performance shares released4
Performance shares released4
Shares in lieu of directors’
Shares in lieu of directors’
fees5
fees5
Shares in lieu of director’s
Shares in lieu of director’s
fees5
fees5
Shares issued under ESOP6
Shares issued under ESOP6
Share issuance costs7
Share issuance costs7
Balance at 31 December 2021
Balance at 31 December 2021
31 December 2019
21 February 2020
12 August 2020
31 December 2019
21 February 2020
12 August 2020
31 December 2020
9 April 2021
14 July/7 September
2021
5 August 2021
31 December 2020
9 April 2021
14 July/7 September
2021
5 August 2021
5 August 2021
5 August 2021
5 November 2021
5 November 2021
5 November 2021
5 November 2021
129,399,128
25,000,000
922,500
-
155,321,628
30,395,999
129,399,128
25,000,000
922,500
-
155,321,628
30,395,999
33,333,333
33,333,333
3,000,000
3,000,000
3,500,000
3,500,000
350,000
350,000
1,700,000
-
227,600,960
1,700,000
-
227,600,960
0.08
0.08
0.068
0.068
-
-
0.05
0.05
0.15
0.15
0.23
0.23
0.23
0.23
0.23
0.23
0.365
-
0.365
-
Amount
($)
Amount
($)
19,606,629
19,606,629
2,000,000
2,000,000
62,730
62,730
(136,885)
(136,885)
21,532,474
21,532,474
1,519,800
1,519,800
5,000,000
5,000,000
690,000
690,000
805,000
805,000
80,500
80,500
620,500
620,500
(1,148,990)
(1,148,990)
29,099,284
29,099,284
1 Shares were issued to members of the staff (non-directors) for achieving certain milestones at the discretion of the Board, the fair value of
1 Shares were issued to members of the staff (non-directors) for achieving certain milestones at the discretion of the Board, the fair value of
the shares
the shares
measured based on the share price at grant date.
measured based on the share price at grant date.
2 On 6 April 2021, the Company completed a Rights Issue of 30,395,999 shares at $0.05 each, of which 1,604,938 were allotted to directors on
2 On 6 April 2021, the Company completed a Rights Issue of 30,395,999 shares at $0.05 each, of which 1,604,938 were allotted to directors on
2 August 2021, subsequent to the Annual General Meeting.
2 August 2021, subsequent to the Annual General Meeting.
3 On 14July 2021, the Company completed a placement of 33,333,333 shares at $0.15 each, of which 13,333,333 shares were issued in a
3 On 14July 2021, the Company completed a placement of 33,333,333 shares at $0.15 each, of which 13,333,333 shares were issued in a
second tranche on 7 September 2021 pursuant to ASX listing rule 7.1
second tranche on 7 September 2021 pursuant to ASX listing rule 7.1
4On 5 August 2021, the Company issued 3,000,000 ordinary shares following the vesting of 3,000,000 performance rights to the Executive
4On 5 August 2021, the Company issued 3,000,000 ordinary shares following the vesting of 3,000,000 performance rights to the Executive
Chairman, as hurdles pertaining to these had been met. The performance rights were valued at the fair value of the shares at the date of the
Chairman, as hurdles pertaining to these had been met. The performance rights were valued at the fair value of the shares at the date of the
general meeting where they were approved, given that the performance hurdles had already been met.
general meeting where they were approved, given that the performance hurdles had already been met.
5On 5 August 2021 and 5 November 2021, the Company issued 3,850,000 shares to Directors in settlement of unpaid directors’ fees. The
5On 5 August 2021 and 5 November 2021, the Company issued 3,850,000 shares to Directors in settlement of unpaid directors’ fees. The
shares were valued at the fair value of the shares at the date of the general meeting where they were approved.
shares were valued at the fair value of the shares at the date of the general meeting where they were approved.
6On 5 November 2021, the Company issued 1,700,000 shares to staff under the Employee Share Plan. The shares have been recorded at their
6On 5 November 2021, the Company issued 1,700,000 shares to staff under the Employee Share Plan. The shares have been recorded at their
market value at the date the shares were granted of $0.365
market value at the date the shares were granted of $0.365
7
Share issuance costs were incurred with respect of the placement and rights issue, which included the issuance of 5,000,000 options
7
Share issuance costs were incurred with respect of the placement and rights issue, which included the issuance of 5,000,000 options
exercisable at a price of $0.20 each for a duration of 36 months. Using Black Scholes valuation model, the value of the options was calculated
exercisable at a price of $0.20 each for a duration of 36 months. Using Black Scholes valuation model, the value of the options was calculated
at $826,175 (see note 28)
at $826,175 (see note 28)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
company does not have a limited amount of authorised capital.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Fertoz limited | 45
32 | P a g e
32 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 15. Equity – Issued share capital (continued)
Note 15. Equity – Issued share capital (continued)
Share buy-back
There is no current on-market share buy-back.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
Capital risk management
The Board's policy is to maintain a strong base so to maintain investor, creditor and market confidence and to sustain future
The Board's policy is to maintain a strong base so to maintain investor, creditor and market confidence and to sustain future
development of the business. As an emerging explorer and developer, the Group does not establish a return on capital. Capital
development of the business. As an emerging explorer and developer, the Group does not establish a return on capital. Capital
management requires the maintenance of strong cash balance to support ongoing exploration and development.
management requires the maintenance of strong cash balance to support ongoing exploration and development.
Note 16. Equity – Reserves
Note 16. Equity – Reserves
Foreign currency translation reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars.
Foreign currency translation reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars.
Interest rate risk
The consolidated entity has no interest rate risk.
Credit risk
Share based payment reserve
The reserve is used to recognise share-based payments made to suppliers and employees.
Share based payment reserve
The reserve is used to recognise share-based payments made to suppliers and employees.
Note 17. Equity – dividends
Note 17. Equity – dividends
Dividends
No dividends were paid during the year.
Dividends
No dividends were paid during the year.
Note 18. Financial Instruments
Note 18. Financial Instruments
Financial risk management objectives
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the
and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity.
consolidated entity.
Risk management is carried out by the Chief Financial Officer under policies approved by the Board of Directors (“the Board”).
Risk management is carried out by the Chief Financial Officer under policies approved by the Board of Directors (“the Board”).
These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate procedures,
These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate procedures,
controls and risk limits. The Chief Financial Officer identifies, evaluates and hedges financial risks within the consolidated
controls and risk limits. The Chief Financial Officer identifies, evaluates and hedges financial risks within the consolidated
entity's operating units and reports to the Board on a monthly basis.
entity's operating units and reports to the Board on a monthly basis.
MARKET RISK
MARKET RISK
Foreign currency risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash
flow forecasting.
flow forecasting.
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
US Dollars
Canadian Dollars
US Dollars
Canadian Dollars
Assets
Assets
Liabilities
Liabilities
2021
2021
$
$
265,412
265,412
1,011,213
1,011,213
1,276,625
1,276,625
2020
2020
$
$
175,031
352,404
527,435
175,031
352,404
527,435
2021
2021
$
$
(164,685)
(437,863)
(602,548)
(164,685)
(437,863)
(602,548)
2020
2020
$
$
(116,363)
(116,363)
(68,923)
(68,923)
(185,286)
(185,286)
Consolidated – 2021
Non-derivatives
Non-interest bearing
Trade payables and other
payables
Lease liability
Total non-derivatives
The consolidated entity had net financial assets denominated in foreign currencies of $674,077 as at 31 December 2021 (2020:
The consolidated entity had net financial assets denominated in foreign currencies of $674,077 as at 31 December 2021 (2020:
$342,149). Based on this exposure, had the Australian dollar weakened by 5% or strengthened by 5% against these foreign
$342,149). Based on this exposure, had the Australian dollar weakened by 5% or strengthened by 5% against these foreign
currencies with all other variables held constant, the consolidated entity's net financial assets would have been $33,704 (2020:
currencies with all other variables held constant, the consolidated entity's net financial assets would have been $33,704 (2020:
$17,107) lower and $33,704 (2020: $17,107) higher respectively.
$17,107) lower and $33,704 (2020: $17,107) higher respectively.
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 18. Financial Instruments (continued)
Price risk
The policy of the consolidated entity is to sell phosphate-based fertilizer at the spot price and it has not entered into any
hedging contracts. The consolidated entity's revenues were exposed to fluctuation in the price of this commodity. If the
average selling price for the financial year had increased/decreased by 10% the change in the profit before income tax for the
consolidated group would have been an increase /decrease of $316,525 (2020: $203,512). If there was a 10% increase or
decrease in market price of inventory, the net realizable value of inventory on hand would increase/(decrease) by $44,407
(2020: $22,103). As the phosphate-based fertilizer on hand are held at cost there would be no impact on profit or loss.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
The Company has bank deposits with the Commonwealth Bank of Australia and Toronto Dominion Bank which both have a
Standard and Poors short term credit rating of A-1+.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Financing arrangements
Unused borrowing facilities at the reporting date:
Debtor financing facility (unused)
Consolidated
2021
$
1,000,000
1,000,000
2020
$
1,000,000
1,000,000
Weighted
average
interest rate
1 year
or less
Between 1
and 2 years
Between 2
and 5 years
Over
5 years
Total
contractual
cashflow
%
$
$
$
$
$
-%
5%
0.3%
745,529
51,915
797,444
-
64,362
63,362
-
-
-
-
-
-
745,529
116,277
861,806
46 | Fertoz limited
33 | P a g e
33 | P a g e
34 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 18. Financial Instruments (continued)
Note 18. Financial Instruments (continued)
Price risk
Price risk
The policy of the consolidated entity is to sell phosphate-based fertilizer at the spot price and it has not entered into any
The policy of the consolidated entity is to sell phosphate-based fertilizer at the spot price and it has not entered into any
hedging contracts. The consolidated entity's revenues were exposed to fluctuation in the price of this commodity. If the
hedging contracts. The consolidated entity's revenues were exposed to fluctuation in the price of this commodity. If the
average selling price for the financial year had increased/decreased by 10% the change in the profit before income tax for the
average selling price for the financial year had increased/decreased by 10% the change in the profit before income tax for the
consolidated group would have been an increase /decrease of $316,525 (2020: $203,512). If there was a 10% increase or
consolidated group would have been an increase /decrease of $316,525 (2020: $203,512). If there was a 10% increase or
decrease in market price of inventory, the net realizable value of inventory on hand would increase/(decrease) by $44,407
decrease in market price of inventory, the net realizable value of inventory on hand would increase/(decrease) by $44,407
(2020: $22,103). As the phosphate-based fertilizer on hand are held at cost there would be no impact on profit or loss.
(2020: $22,103). As the phosphate-based fertilizer on hand are held at cost there would be no impact on profit or loss.
Interest rate risk
The consolidated entity has no interest rate risk.
Interest rate risk
The consolidated entity has no interest rate risk.
Credit risk
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
the financial statements. The consolidated entity does not hold any collateral.
The Company has bank deposits with the Commonwealth Bank of Australia and Toronto Dominion Bank which both have a
Standard and Poors short term credit rating of A-1+.
The Company has bank deposits with the Commonwealth Bank of Australia and Toronto Dominion Bank which both have a
Standard and Poors short term credit rating of A-1+.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Financing arrangements
Unused borrowing facilities at the reporting date:
Financing arrangements
Unused borrowing facilities at the reporting date:
Debtor financing facility (unused)
Debtor financing facility (unused)
Consolidated
Consolidated
2021
2021
$
$
1,000,000
1,000,000
1,000,000
1,000,000
2020
2020
$
$
1,000,000
1,000,000
1,000,000
1,000,000
Consolidated – 2021
Consolidated – 2021
Non-derivatives
Non-derivatives
Non-interest bearing
Non-interest bearing
Trade payables and other
Trade payables and other
payables
payables
Lease liability
Lease liability
Total non-derivatives
Total non-derivatives
Weighted
Weighted
average
average
interest rate
interest rate
1 year
or less
1 year
or less
Between 1
and 2 years
Between 1
and 2 years
Between 2
and 5 years
Between 2
and 5 years
Over
Over
5 years
5 years
Total
Total
contractual
contractual
cashflow
cashflow
%
%
$
$
$
$
$
$
$
$
$
$
-%
5%
-%
5%
0.3%
0.3%
745,529
745,529
51,915
51,915
797,444
797,444
-
-
64,362
64,362
63,362
63,362
-
-
-
-
-
-
-
-
-
-
-
-
745,529
116,277
745,529
116,277
861,806
861,806
Fertoz limited | 47
34 | P a g e
34 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 18. Financial Instruments (continued)
Note 18. Financial Instruments (continued)
Consolidated – 2020
Consolidated – 2020
Non-derivatives
Non-derivatives
Non-interest bearing
Non-interest bearing
Trade payables and other
Trade payables and other
payables
payables
Total non-derivatives
Total non-derivatives
Weighted
Weighted
average
average
interest rate
interest rate
%
%
1 year or less
1 year or less
Between 1
and 2 years
Between 1
and 2 years
Between 2
and 5 years
Between 2
and 5 years
Over 5 years
Over 5 years
$
$
$
$
$
$
$
$
Total
Total
contractual
contractual
cashflow
cashflow
$
$
-%
-%
394,466
394,466
394,466
394,466
-
-
-
-
-
-
-
-
-
-
394,466
394,466
-
-
394,466
394,466
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 19. Key Management Personnel Compensation
Note 19. Key Management Personnel Compensation
Compensation
The aggregate compensation made to directors and other members while they were key management personnel of the
consolidated entity is set out below:
Compensation
The aggregate compensation made to directors and other members while they were key management personnel of the
consolidated entity is set out below:
Short-term benefits
Share-based payment
Short-term benefits
Share-based payment
Note 20. Auditors remuneration
Note 20. Auditors remuneration
Consolidated
Consolidated
2021
2021
$
$
221,400
221,400
1,639,605
1,639,605
1,861,005
1,861,005
2020
2020
$
$
292,161
292,161
142,936
142,936
435,097
435,097
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of the
company, its network firms and unrelated firms:
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of the
company, its network firms and unrelated firms:
Audit services – BDO Audit Pty Ltd.
Tax services – BDO Services Pty Ltd
Audit services – BDO Audit Pty Ltd.
Tax services – BDO Services Pty Ltd
Note 21. Contingency
There were no contingent assets or liabilities at balance date.
Note 21. Contingency
There were no contingent assets or liabilities at balance date.
Note 22. Commitments
Note 22. Commitments
2021
2021
$
$
51,262
51,262
8,100
8,100
59,362
59,362
Consolidated
Consolidated
2020
2020
$
$
50,017
50,017
9,457
9,457
59,474
59,474
Exploration
Exploration
So as to maintain current rights to tenure of exploration tenements, the group will be required to outlay amounts in respect of
So as to maintain current rights to tenure of exploration tenements, the group will be required to outlay amounts in respect of
tenement rent to the relevant governing authorities (C$10 – C$40 per hectare) or to incur exploration expenditures in lieu
tenement rent to the relevant governing authorities (C$10 – C$40 per hectare) or to incur exploration expenditures in lieu
(C$5 -C$20 per hectare). These work requirement outlays which arise in relation to granted tenements are as follows:
(C$5 -C$20 per hectare). These work requirement outlays which arise in relation to granted tenements are as follows:
Due within one year
Due after one year and within five years
Due after five years
Due within one year
Due after one year and within five years
Due after five years
48 | Fertoz limited
Consolidated
Consolidated
2021
2021
$
$
273,626
273,626
1,476,145
1,476,145
-
-
2020
2020
$
$
415
415
386,594
386,594
-
-
35 | P a g e
35 | P a g e
36 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 23. Related Party transactions
Fertoz Limited is the parent entity.
Parent entity
Subsidiaries
Interests in subsidiaries are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report in the directors' report.
Note 24. Parent entity information
Set out below is the supplementary information about the parent entity, Fertoz Limited.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued share capital
Share based payment reserve
Accumulated loss
Total equity
Parent
2021
$
2020
$
(5,124,923)
(5,124,923)
(1,383,663)
(1,383,663)
Parent
2021
$
4,381,704
9,168,788
62,305
62,305
2020
$
598,740
5,385,824
83,743
83,743
29,099,284
3,161,110
(23,153,911)
9,106,483
21,532,474
1,798,595
(18,028,988)
5,302,081
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 31 December 2021 and 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2021 and 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2021 and 2020.
Significant accounting policies
except for the following:
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 18. Financial Instruments (continued)
Weighted
interest rate
%
average
1 year or less
Over 5 years
contractual
Between 1
and 2 years
Between 2
and 5 years
$
$
$
$
Total
cashflow
$
Consolidated – 2020
Non-derivatives
Non-interest bearing
Trade payables and other
payables
Total non-derivatives
394,466
-%
394,466
-
-
-
-
-
-
394,466
394,466
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 19. Key Management Personnel Compensation
The aggregate compensation made to directors and other members while they were key management personnel of the
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of the
company, its network firms and unrelated firms:
Compensation
consolidated entity is set out below:
Short-term benefits
Share-based payment
Note 20. Auditors remuneration
Audit services – BDO Audit Pty Ltd.
Tax services – BDO Services Pty Ltd
Note 21. Contingency
There were no contingent assets or liabilities at balance date.
Note 22. Commitments
Exploration
Due within one year
Due after one year and within five years
Due after five years
Consolidated
2021
$
221,400
1,639,605
1,861,005
2020
$
292,161
142,936
435,097
Consolidated
2021
$
51,262
8,100
59,362
2020
$
50,017
9,457
59,474
Consolidated
2021
$
273,626
1,476,145
-
2020
$
415
386,594
-
35 | P a g e
So as to maintain current rights to tenure of exploration tenements, the group will be required to outlay amounts in respect of
tenement rent to the relevant governing authorities (C$10 – C$40 per hectare) or to incur exploration expenditures in lieu
(C$5 -C$20 per hectare). These work requirement outlays which arise in relation to granted tenements are as follows:
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 23. Related Party transactions
Note 23. Related Party transactions
Parent entity
Fertoz Limited is the parent entity.
Parent entity
Fertoz Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 25.
Subsidiaries
Interests in subsidiaries are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report in the directors' report.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report in the directors' report.
Note 24. Parent entity information
Note 24. Parent entity information
Set out below is the supplementary information about the parent entity, Fertoz Limited.
Statement of profit or loss and other comprehensive income
Set out below is the supplementary information about the parent entity, Fertoz Limited.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Loss after income tax
Total comprehensive loss
Statement of financial position
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued share capital
Share based payment reserve
Accumulated loss
Issued share capital
Share based payment reserve
Accumulated loss
Total equity
Total equity
Parent
Parent
2021
2021
$
$
2020
2020
$
$
(5,124,923)
(5,124,923)
(5,124,923)
(5,124,923)
(1,383,663)
(1,383,663)
(1,383,663)
(1,383,663)
Parent
Parent
2021
2021
$
$
4,381,704
4,381,704
9,168,788
9,168,788
62,305
62,305
62,305
62,305
2020
2020
$
$
598,740
598,740
5,385,824
5,385,824
83,743
83,743
83,743
83,743
29,099,284
29,099,284
3,161,110
3,161,110
(23,153,911)
(23,153,911)
9,106,483
9,106,483
21,532,474
21,532,474
1,798,595
1,798,595
(18,028,988)
(18,028,988)
5,302,081
5,302,081
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 31 December 2021 and 2020.
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 31 December 2021 and 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2021 and 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2021 and 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2021 and 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2021 and 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
●
Fertoz limited | 49
36 | P a g e
36 | P a g e
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
For the year ended 31 December 2021
Note 25. Interests in subsidiaries
Note 25. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
Note 25. Interests in subsidiaries
Ownership interest
Name
Name
Name
Fertoz International Organic Inc.
Fertoz Agriculture Pty Ltd.
Fertoz International Organic Inc.
Fertoz International Organic Inc.
Fertoz Organics In.
Fertoz Agriculture Pty Ltd.
Fertoz Agriculture Pty Ltd.
Fertoz Organics In.
Fertoz Organics In.
Principal place of business /
Country of incorporation
Principal place of business /
Principal place of business /
Country of incorporation
Country of incorporation
Canada
Australia
Canada
United States
Australia
Canada
Australia
United States
United States
2020
2021
Ownership interest
Ownership interest
%
%
2021
2020
2020
2021
%
%
%
%
100%
100%
100%
100%
100%
100%
-
100%
-
-
100%
100%
100%
100%
100%
100%
100%
100%
Note 26. Reconciliation of profit after income tax to net cash from operating activities
Note 26. Reconciliation of profit after income tax to net cash from operating activities
Note 26. Reconciliation of profit after income tax to net cash from operating activities
Consolidated
Loss after income tax expense for the year
Consolidated
Consolidated
2021
$
2021
2021
$
$
(3,752,831)
2020
$
2020
2020
$
$
(1,535,715)
(1,535,715)
(1,535,715)
(3,752,831)
(3,752,831)
Loss after income tax expense for the year
Loss after income tax expense for the year
Adjustments for:
Share-based payments
Adjustments for:
Adjustments for:
Depreciation
Share-based payments
Share-based payments
Lease interest
Depreciation
Depreciation
Lease interest
Lease interest
Change in operating assets and liabilities
Decrease/(Increase) in trade and other receivables
Change in operating assets and liabilities
Change in operating assets and liabilities
Decrease/(Increase) in inventories
Decrease/(Increase) in trade and other receivables
Decrease/(Increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Decrease/(Increase) in inventories
Decrease/(Increase) in inventories
Net cash used in operating activities
(Decrease)/increase in trade and other payables
(Decrease)/increase in trade and other payables
Net cash used in operating activities
Net cash used in operating activities
Non-cash transactions
During the year ended 31 December 2021, the company issued 5,000,000 options to settle capital raising costs of $826,175,
Non-cash transactions
and entered into lease agreements adding $152,606 to right-of-use assets.
During the year ended 31 December 2021, the company issued 5,000,000 options to settle capital raising costs of $826,175,
and entered into lease agreements adding $152,606 to right-of-use assets.
The only changes to liabilities arising from financing activities are as disclosed in note 14 Leases.
Non-cash transactions
During the year ended 31 December 2021, the company issued 5,000,000 options to settle capital raising costs of $826,175,
and entered into lease agreements adding $152,606 to right-of-use assets.
(499,908)
(174,491)
(499,908)
(499,908)
351,063
(174,491)
(174,491)
(1,661,343)
351,063
351,063
(1,661,343)
(1,661,343)
(79,492)
35,652
(79,492)
(79,492)
53,601
35,652
35,652
(965,900)
53,601
53,601
(965,900)
(965,900)
2,394,505
19,393
2,394,505
926
19,393
926
549,719
10,335
549,719
-
10,335
-
2,394,505
19,393
926
549,719
10,335
-
The only changes to liabilities arising from financing activities are as disclosed in note 14 Leases.
The only changes to liabilities arising from financing activities are as disclosed in note 14 Leases.
Note 27. Loss per share
Note 27. Loss per share
Note 27. Loss per share
Earnings per share for profit/(loss) from continuing operations
Loss after income tax expense for the period
Earnings per share for profit/(loss) from continuing operations
Loss after income tax expense for the period
Earnings per share for profit/(loss) from continuing operations
Loss after income tax expense for the period
Weighted average number of shares used in calculating basic earnings per share
Weighted average number of shares used in calculating basic earnings per share
Weighted average number of shares used in calculating diluted earnings per share
Weighted average number of shares used in calculating basic earnings per share
Weighted average number of shares used in calculating diluted earnings per share
Weighted average number of shares used in calculating diluted earnings per share
Basic loss per share
Basic loss per share
Basic loss per share
Diluted loss per share
Consolidated
Consolidated
Consolidated
2021
$
2021
2021
$
$
(3,752,831)
2020
$
2020
2020
$
$
(1,535,715)
(3,752,831)
(3,752,831)
Number
193,603,749
Number
Number
193,603,749
193,603,749
193,603,749
193,603,749
193,603,749
Cents
1.94
Cents
1.94
Cents
1.94
1.94
(1,535,715)
(1,535,715)
Number
151,262,340
Number
Number
151,262,340
151,262,340
151,262,340
151,262,340
151,262,340
Cents
1.01
Cents
1.01
1.01
Cents
1.01
Diluted loss per share
At 31 December 2021, there were 5,000,000 (2020: nil) options outstanding which could potentially dilute basic earnings per
Diluted loss per share
share in the future. Because there is a loss from continuing operations, these would have an anti-dilutive effect and therefore
At 31 December 2021, there were 5,000,000 (2020: nil) options outstanding which could potentially dilute basic earnings per
At 31 December 2021, there were 5,000,000 (2020: nil) options outstanding which could potentially dilute basic earnings per
diluted earnings per share is the same as the basic earnings per share.
share in the future. Because there is a loss from continuing operations, these would have an anti-dilutive effect and therefore
share in the future. Because there is a loss from continuing operations, these would have an anti-dilutive effect and therefore
diluted earnings per share is the same as the basic earnings per share.
diluted earnings per share is the same as the basic earnings per share.
1.94
1.94
1.01
1.01
50 | Fertoz limited
37 | P a g e
37 | P a g e
37 | P a g e
38 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 28. Share-based payments
Expenses arising from share-based payment transactions
(a) Performance Rights
Total expenses arising from share-based payment transactions recognised during the period as part of contract of services in
terms of performance rights issued to directors amounting to $754,105 (2020: $142,936) and to consultants, under the
performance scheme, amounting $134,400 (2020: $62,730).
At 31 December 2021, movement in performance rights are as per below:
31 December 2021
Exercise
price
$0.00
$0.00
$0.00
$0.00
Balance at
the start of
the year
Exercised /
Granted
vested
4,000,000
-
3,000,000
(3,000,000)
-
750,000
- 1,600,000
Expired/
forfeited/
other
(4,000,000)
-
-
-
-
-
4,000,000 5,350,000
(3,000,000)
(4,000,000)
$0.00
$0.00
$0.00
$0.00
Balance at
the end of
the year
-
-
750,000
1,600,000
2,350,000
$0.00
Grant date
Expiry date
01/06/2018
01/06/2021
05/08/2021
01/06/2024
01/06/2021
01/06/2024
17/09/2021
01/10/2022
Weighted average exercise price
Performance
Rights
Number
Expiry Date
Milestone for release from escrow
Issue Price
Chairman Rights
1,000,000
01/06/2024
The Company’s share price closing at 10c or above for 10
1,000,000
01/06/2024
The Company’s share price closing at 15c or above for 10
1,000,000
01/06/2024
The Company’s share price closing at 20c or above for 10
consecutive trading days
consecutive trading days
consecutive trading days
3,000,000
During the year ended 31 December 2021, the above performance hurdles were met and the performance rights were
exercised and ordinary shares issued. The performance rights were valued at the fair value of the shares at the date of the
general meeting where they were approved, given that the performance hurdles had already been met at that date.
Performance
Rights
Number
Expiry Date
Milestone for release from escrow
Issue Price
Chairman Rights
250,000
01/06/2024 Achievement of 10,000ha of reforested or rehabilitated land
managed in a carbon project by Fertoz Carbon before 1 June
2024
250,000
01/06/2024 Sale of $500,000 of Carbon Credits in a project managed by
Fertoz Carbon before 1 June 2024
250,000
01/06/2024 Achievement of 60,000t of fertilizer sales in any one year
before 1 June 2024
750,000
Nil
Nil
Nil
Nil
Nil
Nil
It has been assumed that the performance hurdles for the above performance rights will be met by 1 June 2024. The
performance rights have been measured at the share price at the date they were granted and are expensed over the period
from grant date to the assumed vesting date of 1 June 2024.
1,600,000
31/12/2022 Achievement of operations targets
Nil
Consultants
Rights
1,650,000
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
Note 28. Share-based payments
Note 28. Share-based payments
Expenses arising from share-based payment transactions
Expenses arising from share-based payment transactions
(a) Performance Rights
(a) Performance Rights
Total expenses arising from share-based payment transactions recognised during the period as part of contract of services in
Total expenses arising from share-based payment transactions recognised during the period as part of contract of services in
terms of performance rights issued to directors amounting to $754,105 (2020: $142,936) and to consultants, under the
terms of performance rights issued to directors amounting to $754,105 (2020: $142,936) and to consultants, under the
performance scheme, amounting $134,400 (2020: $62,730).
performance scheme, amounting $134,400 (2020: $62,730).
At 31 December 2021, movement in performance rights are as per below:
At 31 December 2021, movement in performance rights are as per below:
31 December 2021
31 December 2021
Grant date
Grant date
Expiry date
Expiry date
01/06/2018
01/06/2018
01/06/2021
01/06/2021
05/08/2021
05/08/2021
01/06/2024
01/06/2024
01/06/2021
01/06/2021
01/06/2024
01/06/2024
17/09/2021
17/09/2021
01/10/2022
01/10/2022
Weighted average exercise price
Weighted average exercise price
Exercise
Exercise
price
price
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Balance at
Balance at
the start of
the start of
the year
the year
Granted
Granted
Exercised /
Exercised /
vested
vested
4,000,000
4,000,000
-
-
3,000,000
3,000,000
-
750,000
750,000
-
- 1,600,000
- 1,600,000
4,000,000 5,350,000
4,000,000 5,350,000
$0.00
$0.00
$0.00
$0.00
-
-
(3,000,000)
(3,000,000)
-
-
-
-
(3,000,000)
(3,000,000)
$0.00
$0.00
Expired/
Expired/
forfeited/
forfeited/
other
other
(4,000,000)
(4,000,000)
-
-
-
-
(4,000,000)
(4,000,000)
$0.00
$0.00
Balance at
Balance at
the end of
the end of
the year
the year
-
-
-
-
750,000
750,000
1,600,000
1,600,000
2,350,000
$0.00
2,350,000
$0.00
Performance
Rights
Performance
Rights
Number
Number
Expiry Date
Expiry Date
Milestone for release from escrow
Milestone for release from escrow
Issue Price
Issue Price
Chairman Rights
Chairman Rights
1,000,000
1,000,000
01/06/2024
01/06/2024
1,000,000
1,000,000
01/06/2024
01/06/2024
1,000,000
1,000,000
01/06/2024
01/06/2024
3,000,000
3,000,000
The Company’s share price closing at 10c or above for 10
consecutive trading days
The Company’s share price closing at 10c or above for 10
consecutive trading days
The Company’s share price closing at 15c or above for 10
consecutive trading days
The Company’s share price closing at 15c or above for 10
consecutive trading days
The Company’s share price closing at 20c or above for 10
consecutive trading days
The Company’s share price closing at 20c or above for 10
consecutive trading days
Nil
Nil
Nil
Nil
Nil
Nil
During the year ended 31 December 2021, the above performance hurdles were met and the performance rights were
During the year ended 31 December 2021, the above performance hurdles were met and the performance rights were
exercised and ordinary shares issued. The performance rights were valued at the fair value of the shares at the date of the
exercised and ordinary shares issued. The performance rights were valued at the fair value of the shares at the date of the
general meeting where they were approved, given that the performance hurdles had already been met at that date.
general meeting where they were approved, given that the performance hurdles had already been met at that date.
Performance
Rights
Performance
Rights
Chairman Rights
Chairman Rights
Number
Number
Expiry Date
Expiry Date
Milestone for release from escrow
Milestone for release from escrow
Issue Price
Issue Price
250,000
250,000
01/06/2024 Achievement of 10,000ha of reforested or rehabilitated land
managed in a carbon project by Fertoz Carbon before 1 June
2024
01/06/2024 Achievement of 10,000ha of reforested or rehabilitated land
managed in a carbon project by Fertoz Carbon before 1 June
2024
250,000
250,000
01/06/2024 Sale of $500,000 of Carbon Credits in a project managed by
01/06/2024 Sale of $500,000 of Carbon Credits in a project managed by
Fertoz Carbon before 1 June 2024
Fertoz Carbon before 1 June 2024
250,000
250,000
01/06/2024 Achievement of 60,000t of fertilizer sales in any one year
01/06/2024 Achievement of 60,000t of fertilizer sales in any one year
before 1 June 2024
before 1 June 2024
Nil
Nil
Nil
Nil
Nil
Nil
750,000
750,000
It has been assumed that the performance hurdles for the above performance rights will be met by 1 June 2024. The
performance rights have been measured at the share price at the date they were granted and are expensed over the period
from grant date to the assumed vesting date of 1 June 2024.
It has been assumed that the performance hurdles for the above performance rights will be met by 1 June 2024. The
performance rights have been measured at the share price at the date they were granted and are expensed over the period
from grant date to the assumed vesting date of 1 June 2024.
Consultants
Consultants
Rights
Rights
1,600,000
1,600,000
31/12/2022 Achievement of operations targets
31/12/2022 Achievement of operations targets
Nil
Nil
1,650,000
1,650,000
Fertoz limited | 51
38 | P a g e
38 | P a g e
Notes to the consolidated financial statements
For the year ended 31 December 2021
Notes to the consolidated financial statements
For the year ended 31 December 2021
It has been assumed that the performance hurdles for the above performance rights will be met by 31 December 2022. The
performance rights have been measured at the share price at the date they were granted and are expensed over the period
from grant date to the assumed vesting date of 31 December 2022.
It has been assumed that the performance hurdles for the above performance rights will be met by 31 December 2022. The
performance rights have been measured at the share price at the date they were granted and are expensed over the period
from grant date to the assumed vesting date of 31 December 2022.
Note 28. Share-based payments (continued)
Note 28. Share-based payments (continued)
(a) Performance Rights
(a) Performance Rights
31 December 2020
31 December 2020
Grant date
Grant date
Expiry date
Expiry date
01/06/2018
01/06/2018
01/06/2021
01/06/2021
Exercise
Exercise
price
price
$0.00
$0.00
Weighted average exercise price
Weighted average exercise price
Balance at
Balance at
the start of
the start of
the year
the year
Granted
Granted
Exercised /
Exercised /
vested
vested
Expired/
Expired/
forfeited/
forfeited/
other
other
Balance at
Balance at
the end of
the end of
the year
the year
4,000,000
4,000,000
4,000,000
4,000,000
$0.00
$0.00
-
-
-
-
$0.00
$0.00
-
-
-
-
$0.00
$0.00
-
-
-
-
$0.00
$0.00
4,000,000
4,000,000
4,000,000
4,000,000
$0.00
$0.00
Performance
Rights
Performance
Rights
Number
Number
Expiry Date
Expiry Date
Milestone for release from escrow
Milestone for release from escrow
Issue Price
Issue Price
Chairman Rights
Chairman Rights
1,000,000
1,000,000
01/06/2021
01/06/2021
1,000,000
1,000,000
01/06/2021
01/06/2021
1,000,000
1,000,000
01/06/2021
01/06/2021
1,000,000
1,000,000
01/06/2021
01/06/2021
4,000,000
4,000,000
The Company’s share price closing at 28c or above for 10
consecutive trading days
The Company’s share price closing at 28c or above for 10
consecutive trading days
The Company’s share price closing at 38c or above for 10
consecutive trading days
The Company’s share price closing at 38c or above for 10
consecutive trading days
The Company’s share price closing at 50c or above for 10
consecutive trading days
The Company’s share price closing at 50c or above for 10
consecutive trading days
The Company’s share price closing at 60c or above for 10
consecutive trading days
The Company’s share price closing at 60c or above for 10
consecutive trading days
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
During the year ended 31 December 2021, the above performance rights, expired unvested.
During the year ended 31 December 2021, the above performance rights, expired unvested.
(b) Shares
(b) Shares
Total expenses arising from share-based payment transactions recognised during the period resulting from ordinary shares
being issued to directors amounting to $885,500 (2020: Nil) and to consultants $620,500 (2020: $Nil) The expense is
recognised at the fair value of the shares measured based on the share price at grant date.
Total expenses arising from share-based payment transactions recognised during the period resulting from ordinary shares
being issued to directors amounting to $885,500 (2020: Nil) and to consultants $620,500 (2020: $Nil) The expense is
recognised at the fair value of the shares measured based on the share price at grant date.
(c) Options
(c) Options
On 23 August 2021, the Company granted 5,000,000 broker options with respect to the capital raising. The broker options are
exercisable at a price of $0.20 on or before 23 August 2024. The options were recognised at a fair value, based on Black
Scholes Valuation Model, of $0.165 per option for a total value of $826,175. The valuation is based on an expected volatility of
91.4%, risk free interest rate of 1.5%, expected life of 3 years and stock price of $0.26.
On 23 August 2021, the Company granted 5,000,000 broker options with respect to the capital raising. The broker options are
exercisable at a price of $0.20 on or before 23 August 2024. The options were recognised at a fair value, based on Black
Scholes Valuation Model, of $0.165 per option for a total value of $826,175. The valuation is based on an expected volatility of
91.4%, risk free interest rate of 1.5%, expected life of 3 years and stock price of $0.26.
At 31 December 2021, the options with an average remaining life of 2.6 years, were vested and unexercised.
At 31 December 2021, the options with an average remaining life of 2.6 years, were vested and unexercised.
Note 29. Events since the end of the financial year
Note 29. Events since the end of the financial year
On 14 February 2022, the Company appointed Mr. Greg West as non-Executive Director. Mr Justyn Stedwell resigned from the
Board at the same date
On 14 February 2022, the Company appointed Mr. Greg West as non-Executive Director. Mr Justyn Stedwell resigned from the
Board at the same date
52 | Fertoz limited
39 | P a g e
39 | P a g e
Directors’ Declaration
For the year ended 31 December 2021
In the directors' opinion:
Directors’ Declaration
DIRECTORS’ DECLARATION
For the year ended 31 December 2021
● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
In the directors' opinion:
● the attached financial statements and notes comply with International Financial Reporting Standards and Interpretations
● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
as issued by the International Accounting Standards Board as described in note 1 to the financial statements;
Corporations Regulations 2001 and other mandatory professional reporting requirements;
● the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
● the attached financial statements and notes comply with International Financial Reporting Standards and Interpretations
31 December 2021 and of its performance for the financial period ended on that date; and
as issued by the International Accounting Standards Board as described in note 1 to the financial statements;
● there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
● the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
and payable.
31 December 2021 and of its performance for the financial period ended on that date; and
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
● there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
On behalf of the directors
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
________________________________
Patrick Avery
Chairman
________________________________
31 March 2021
Patrick Avery
Chairman
31 March 2022
Fertoz limited | 53
40 | P a g e
40 | P a g e
INDEPENDENT AUDITOR’S REPORT
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT
To the members of Fertoz Limited
To the members of Fertoz Limited
Report on the Audit of the Financial Report
INDEPENDENT AUDITOR'S REPORT
Opinion
Report on the Audit of the Financial Report
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
To the members of Fertoz Limited
Opinion
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
which comprises the consolidated statement of financial position as at 31 December 2021, the
Report on the Audit of the Financial Report
to the financial report, including a summary of significant accounting policies and the directors’
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
declaration.
Opinion
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
declaration.
Act 2001, including:
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
(i)
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
Act 2001, including:
to the financial report, including a summary of significant accounting policies and the directors’
(i)
(ii)
declaration.
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
financial performance for the year ended on that date; and
Basis for opinion
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
Act 2001, including:
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Basis for opinion
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
(i)
Report section of our report. We are independent of the Group in accordance with the Corporations
financial performance for the year ended on that date; and
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
Report section of our report. We are independent of the Group in accordance with the Corporations
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Basis for opinion
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
ethical responsibilities in accordance with the Code.
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
We confirm that the independence declaration required by the Corporations Act 2001, which has been
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
ethical responsibilities in accordance with the Code.
given to the directors of the Company, would be in the same terms if given to the directors as at the
Report section of our report. We are independent of the Group in accordance with the Corporations
time of this auditor’s report.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We confirm that the independence declaration required by the Corporations Act 2001, which has been
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
given to the directors of the Company, would be in the same terms if given to the directors as at the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
time of this auditor’s report.
for our opinion.
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
We confirm that the independence declaration required by the Corporations Act 2001, which has been
for our opinion.
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
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
for our opinion.
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
54 | Fertoz limited
41 | P a g e
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
41 | P a g e
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the 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. Our opinion is not modified in respect of this
INDEPENDENT AUDITOR'S REPORT
matter.
Key audit matters
To the members of Fertoz Limited
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
Report on the Audit of the Financial Report
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
Opinion
matters to be communicated in our report.
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Carrying value of exploration and evaluation assets
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
How the matter was addressed in our audit
Key audit matter
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Our procedures included, but are not limited to the
Refer to note 10 of the financial report.
Act 2001, including:
The Group carries exploration and evaluation assets in
following:
(i)
relation to the application of the Group’s accounting
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
Obtaining evidence that the Group has valid
(cid:120)
policy for exploration and evaluation assets.
financial performance for the year ended on that date; and
rights to explore in the areas represented by
(ii)
The recoverability of exploration and evaluation assets
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
the capitalised exploration and evaluation
is a key audit matter due to the significance of the
Basis for opinion
total balance as a proportion of total assets and the
expenditure by obtaining supporting
documentation such as licence agreements
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
level of procedures undertaken to evaluate
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
management’s application of the requirements of AASB
maintains the tenements in good standing.
and also considering whether the Group
Report section of our report. We are independent of the Group in accordance with the Corporations
6 Exploration for and Evaluation of Mineral Resources
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
(‘AASB 6’) in light of any indicators of impairment that
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
programs in the respective areas of interest.
respect to the status of ongoing exploration
Making enquiries of management with
(cid:120)
may be present.
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Enquiring of management, reviewing ASX
(cid:120)
ethical responsibilities in accordance with the Code.
announcements and reviewing directors'
minutes to ensure that the Group had not
We confirm that the independence declaration required by the Corporations Act 2001, which has been
decided to discontinue activities in any
given to the directors of the Company, would be in the same terms if given to the directors as at the
applicable areas of interest and to assess
time of this auditor’s report.
whether there are any other facts or
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
circumstances that existed to indicate
for our opinion.
impairment testing was required.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
41 | P a g e
42 | P a g e
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the 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. Our opinion is not modified in respect of this
INDEPENDENT AUDITOR'S REPORT
matter.
Key audit matters
To the members of Fertoz Limited
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
Report on the Audit of the Financial Report
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
Opinion
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Carrying value of exploration and evaluation assets
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
How the matter was addressed in our audit
Key audit matter
Refer to note 10 of the financial report.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Our procedures included, but are not limited to the
Act 2001, including:
following:
The Group carries exploration and evaluation assets in
(i)
relation to the application of the Group’s accounting
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
policy for exploration and evaluation assets.
Obtaining evidence that the Group has valid
rights to explore in the areas represented by
(cid:120)
(ii)
The recoverability of exploration and evaluation assets
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
expenditure by obtaining supporting
the capitalised exploration and evaluation
is a key audit matter due to the significance of the
Basis for opinion
total balance as a proportion of total assets and the
documentation such as licence agreements
level of procedures undertaken to evaluate
6 Exploration for and Evaluation of Mineral Resources
management’s application of the requirements of AASB
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
maintains the tenements in good standing.
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
announcements and reviewing directors'
ethical responsibilities in accordance with the Code.
(‘AASB 6’) in light of any indicators of impairment that
Enquiring of management, reviewing ASX
Making enquiries of management with
respect to the status of ongoing exploration
programs in the respective areas of interest.
may be present.
and also considering whether the Group
(cid:120)
(cid:120)
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
applicable areas of interest and to assess
time of this auditor’s report.
decided to discontinue activities in any
whether there are any other facts or
minutes to ensure that the Group had not
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
impairment testing was required.
circumstances that existed to indicate
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Fertoz limited | 55
42 | P a g e
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Other information
The directors are responsible for the other information. The other information comprises the
information contained in directors’ report for the year ended 31 December 2021, but does not include
the financial report and our auditor’s report thereon, which we obtained prior to the date of this
auditor’s report, and the annual report, which is expected to be made available to us after that date.
INDEPENDENT AUDITOR'S REPORT
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
To the members of Fertoz Limited
identified above and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be materially
Report on the Audit of the Financial Report
misstated.
If, based on the work we have performed on the other information that we obtained prior to the date
Opinion
of this auditor’s report, we conclude that there is a material misstatement of this other information,
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
we are required to report that fact. We have nothing to report in this regard.
which comprises the consolidated statement of financial position as at 31 December 2021, the
When we read the annual report, if we conclude that there is a material misstatement therein, we are
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
required to communicate the matter to the directors and will request that it is corrected. If it is not
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
corrected, we will seek to have the matter appropriately brought to the attention of users for whom
to the financial report, including a summary of significant accounting policies and the directors’
our report is prepared.
declaration.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
Responsibilities of the directors for the Financial Report
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
(i)
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
(ii)
fraud or error.
Basis for opinion
In preparing the financial report, the directors are responsible for assessing the ability of the group to
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
Report section of our report. We are independent of the Group in accordance with the Corporations
operations, or has no realistic alternative but to do so.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
Auditor’s responsibilities for the audit of the Financial Report
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
ethical responsibilities in accordance with the Code.
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
We confirm that the independence declaration required by the Corporations Act 2001, which has been
audit conducted in accordance with the Australian Auditing Standards will always detect a material
given to the directors of the Company, would be in the same terms if given to the directors as at the
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
time of this auditor’s report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
decisions of users taken on the basis of this financial report.
for our opinion.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
56 | Fertoz limited
43 | P a g e
INDEPENDENT AUDITOR'S REPORT
To the members of Fertoz Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
declaration.
Act 2001, including:
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
for our opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
41 | P a g e
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 5 to 10 of the directors’ report for the
year ended 31 December 2021.
In our opinion, the Remuneration Report of Fertoz Limited, for the year ended 31 December 2021,
INDEPENDENT AUDITOR'S REPORT
complies with section 300A of the Corporations Act 2001.
Responsibilities
To the members of Fertoz Limited
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
Report on the Audit of the Financial Report
Australian Auditing Standards.
Opinion
We have audited the financial report of Fertoz Limited (the Company) and its subsidiaries (the Group),
BDO Audit Pty Ltd
which comprises the consolidated statement of financial position as at 31 December 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
A J Whyte
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Director
Act 2001, including:
Brisbane, 31 March 2022
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Fertoz limited | 57
44 | P a g e
Shareholder information
Shareholder information
31 December 2021
31 December 2021
Shareholder information
31 December 2021
SHAREHOLDER INFORMATION
Shareholders’ information set out below was applicable as at 25 March 2022
Shareholders’ information set out below was applicable as at 25 March 2022
Unlisted Options and Performance Rights
Unlisted Options and Performance Rights
Shareholders’ information set out below was applicable as at 25 March 2022
The Company has the following unlisted securities on issue:
The Company has the following unlisted securities on issue:
Unlisted Options and Performance Rights
The Company has the following unlisted securities on issue:
5,000,000 Options exercisable at $0.20 each expiring 23/08/2024 held by 10 option holders;
5,000,000 Options exercisable at $0.20 each expiring 23/08/2024 held by 10 option holders;
•
•
The following holders hold 20% or more of the securities in the above class:
The following holders hold 20% or more of the securities in the above class:
The following holders hold 20% or more of the securities in the above class:
5,000,000 Options exercisable at $0.20 each expiring 23/08/2024 held by 10 option holders;
Bostock Investments Pty Ltd – 2,400,000 options
Bostock Investments Pty Ltd – 2,400,000 options
JP equity Holdings Pty Ltd – 1,500,000 options
JP equity Holdings Pty Ltd – 1,500,000 options
Bostock Investments Pty Ltd – 2,400,000 options
JP equity Holdings Pty Ltd – 1,500,000 options
•
•
•
•
•
•
•
Distribution
Distribution
The number of ordinary shareholders, by size of holding is:
The number of ordinary shareholders, by size of holding is:
Distribution
The number of ordinary shareholders, by size of holding is:
Spread of Holdings
Spread of Holdings
% of units
% of units
Holders
Holders
1-1,000
1-1,000
Spread of Holdings
1,001-5,000
1,001-5,000
1-1,000
5,001-10,000
5,001-10,000
1,001-5,000
10,001-100,000
10,001-100,000
5,001-10,000
100,001 - and over
100,001 - and over
10,001-100,000
Total on register
Total on register
100,001 - and over
Total Overseas holders
Total Overseas holders
Total on register
40
40
Holders
190
190
40
154
154
190
521
521
154
248
248
521
1,153
1,153
248
43
43
1,153
0.00%
0.00%
% of units
0.25%
0.25%
0.00%
0.55%
0.55%
0.25%
9.99%
9.99%
0.55%
89.22%
89.22%
9.99%
100.00%
100.00%
89.22%
100.00%
Total Overseas holders
The number of shareholdings held in less than marketable parcels is 72 with a total of 55,33 Shares.
The number of shareholdings held in less than marketable parcels is 72 with a total of 55,33 Shares.
43
The number of shareholdings held in less than marketable parcels is 72 with a total of 55,33 Shares.
Substantial Shareholders
Substantial Shareholders
The Company has been notified of the following substantial shareholdings:
The Company has been notified of the following substantial shareholdings:
Substantial Shareholders
The Company has been notified of the following substantial shareholdings:
Stephens Group and related entities
Stephens Group and related entities
Boston First Capital Pty Ltd and related entities
Boston First Capital Pty Ltd and related entities
Stephens Group and related entities
Lenark Pty Ltd and related entities
Lenark Pty Ltd and related entities
Boston First Capital Pty Ltd and related entities
Malcolm John Weber
Malcolm John Weber
Lenark Pty Ltd and related entities
Malcolm John Weber
20 LARGEST HOLDERS OF ORDINARY SHARES AS AT 25 MARCH 2022:
20 LARGEST HOLDERS OF ORDINARY SHARES AS AT 25 MARCH 2022:
20 LARGEST HOLDERS OF ORDINARY SHARES AS AT 25 MARCH 2022:
Ordinary Shareholder
Ordinary Shareholder
BOSTON FIRST CAPITAL PTY LTD
BOSTON FIRST CAPITAL PTY LTD
Ordinary Shareholder
LENARK PTY LTD
LENARK PTY LTD
BOSTON FIRST CAPITAL PTY LTD
STEPHENS GROUP SUPER FUND PTY LTD
STEPHENS GROUP SUPER FUND PTY LTD
LENARK PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
STEPHENS GROUP SUPER FUND PTY LTD
ASHABIA PTY LTD
ASHABIA PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR PATRICK AVERY
MR PATRICK AVERY
ASHABIA PTY LTD
MR WILLIAM BOOTH
MR WILLIAM BOOTH
MR PATRICK AVERY
MR WILLIAM BOOTH
58 | Fertoz limited
Number
Number
11,455,458
11,455,458
Number
10,869,142
10,869,142
11,455,458
10,000,000
10,000,000
10,869,142
8,206,051
8,206,051
10,000,000
7,554,183
7,554,183
8,206,051
6,408,164
6,408,164
7,554,183
6,297,828
6,297,828
6,408,164
6,297,828
Number
Number
21,673,112
21,673,112
Number
13,620,000
13,620,000
21,673,112
13,202,729
13,202,729
13,620,000
9,622,489
9,622,489
13,202,729
9,622,489
Fully paid
Fully paid
Percentage
Percentage
Fully paid
5.01%
5.01%
Percentage
4.75%
4.75%
5.01%
4.37%
4.37%
4.75%
3.59%
3.59%
4.37%
3.30%
3.30%
3.59%
2.80%
2.80%
3.30%
2.75%
2.75%
2.80%
2.75%
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45 | P a g e
45 | P a g e
5,000,000 Options exercisable at $0.20 each expiring 23/08/2024 held by 10 option holders;
Shareholder information
31 December 2021
Shareholders’ information set out below was applicable as at 25 March 2022
Unlisted Options and Performance Rights
The Company has the following unlisted securities on issue:
•
•
•
The following holders hold 20% or more of the securities in the above class:
Bostock Investments Pty Ltd – 2,400,000 options
JP equity Holdings Pty Ltd – 1,500,000 options
Distribution
The number of ordinary shareholders, by size of holding is:
Spread of Holdings
Holders
% of units
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 - and over
Total on register
Total Overseas holders
40
190
154
521
248
1,153
43
0.00%
0.25%
0.55%
9.99%
89.22%
100.00%
The number of shareholdings held in less than marketable parcels is 72 with a total of 55,33 Shares.
Substantial Shareholders
The Company has been notified of the following substantial shareholdings:
Stephens Group and related entities
Boston First Capital Pty Ltd and related entities
Lenark Pty Ltd and related entities
Malcolm John Weber
20 LARGEST HOLDERS OF ORDINARY SHARES AS AT 25 MARCH 2022:
Ordinary Shareholder
BOSTON FIRST CAPITAL PTY LTD
LENARK PTY LTD
STEPHENS GROUP SUPER FUND PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ASHABIA PTY LTD
MR PATRICK AVERY
MR WILLIAM BOOTH
Number
11,455,458
10,869,142
10,000,000
8,206,051
7,554,183
6,408,164
6,297,828
Number
21,673,112
13,620,000
13,202,729
9,622,489
Fully paid
Percentage
5.01%
4.75%
4.37%
3.59%
3.30%
2.80%
2.75%
45 | P a g e
Shareholder information
Shareholder information
31 December 2021
31 December 2021
Ordinary Shareholder
Ordinary Shareholder
HAJEK FT CUSTODIANS PTY LTD
HAJEK FT CUSTODIANS PTY LTD
FERTOZ LIMITED
FERTOZ LIMITED
TWO TOPS PTY LTD
TWO TOPS PTY LTD
PINNACLE SUPERANNUATION PTY LIMITED
PINNACLE SUPERANNUATION PTY LIMITED
WISEVEST PTY LTD
WISEVEST PTY LTD
MR MICHAEL BERNARD STEPHENS & MRS TAHLIA JAE STEPHENS
MR MICHAEL BERNARD STEPHENS & MRS TAHLIA JAE STEPHENS
THE STEPHENS GROUP PTY LTD
THE STEPHENS GROUP PTY LTD
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
WILLSTREET PTY LTD
WILLSTREET PTY LTD
THE STEPHENS GROUP PTY LTD
THE STEPHENS GROUP PTY LTD
LEFT BRAIN STRATEGIES PTY LIMITED
LEFT BRAIN STRATEGIES PTY LIMITED
GUNDY PARK PTY LTD
GUNDY PARK PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
PARTLY PAID SHARES
PARTLY PAID SHARES
The Company does not have any partly paid shares on issue.
The Company does not have any partly paid shares on issue.
Voting Rights
Voting Rights
Fully paid
Fully paid
Number
Number
6,020,000
6,020,000
4,527,786
4,527,786
4,003,810
4,003,810
4,000,002
4,000,002
3,933,489
3,933,489
3,500,000
3,500,000
3,070,000
3,070,000
2,855,926
2,855,926
2,500,000
2,500,000
2,450,000
2,450,000
2,333,584
2,333,584
2,250,000
2,250,000
8,206,051
8,206,051
Percentage
Percentage
2.63%
2.63%
1.98%
1.98%
1.75%
1.75%
1.75%
1.75%
1.72%
1.72%
1.53%
1.53%
1.34%
1.34%
1.25%
1.25%
1.09%
1.09%
1.07%
1.07%
1.02%
1.02%
0.98%
0.98%
3.59%
3.59%
104,271,349
104,271,349
45.60%
45.60%
The Constitution of the company makes the following provision for voting at general meetings:
The Constitution of the company makes the following provision for voting at general meetings:
On a show of hands, every ordinary shareholder present in person, or by proxy, attorney or representative has one vote.
On a show of hands, every ordinary shareholder present in person, or by proxy, attorney or representative has one vote.
On a poll, every shareholder present in person, or by proxy, attorney or representative has one vote for any share held by
On a poll, every shareholder present in person, or by proxy, attorney or representative has one vote for any share held by
the shareholder.
the shareholder.
On-market buy-back
On-market buy-back
The Company is not currently conducting an on-market buy-back.
The Company is not currently conducting an on-market buy-back.
Fertoz limited | 59
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60 | Fertoz limited
Fertoz limited | 61
FERTOZ LTD
(ACN 145 951 622)
Level 5, 126 Phillip Street,
Sydney NSW 2000
Telephone: +61 2 8072 1400
Website: www.fertoz.com
62 | Fertoz limited