Firstwave Cloud Technology Limited Annual Report 2021

FY2021 Annual Report · Firstwave Cloud Technology Limited
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2021  
ANNUAL 
REPORT

Financial Statements
For the Year Ended 30 June 2021

Firstwave Cloud Technology Limited

ABN 35 144 733 595

Contents

Chairman’s Letter 

Directors’ Report and Remuneration Report 

Financial Report 

Auditor’s Independence Declaration 

Financial Statements 

Directors’ Declaration 

Independent Auditor’s Report 

Shareholder Information 

Corporate Directory 

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTChairman’s Letter

2021 was a year in which your Company continued 
to advance on many fronts, but also was presented 
with challenges that demanded time and resources. 

Key aspects of the year:
 — International sales continuing to be hampered by 

the ongoing impact of COVID19

 — International Annualised Recurring Revenue 

(IARR) up 440% at the end of the financial year to 
$3,008K from $448K at the end of the prior year 
(as disclosed in the FY21 Q4 update released to 
the market on 27 July 2021)

 — Domestic revenues through Telstra continuing 
their slow decline over the year under the 
pressure of continuing churn due to the lack of 
a web replacement product from Cisco and high 
costs of Telstra’s inhouse cloud platform  

 — First signs of the opportunity for growth in 

revenues through Telstra following Telstra CEO 
Andy Penn’s public statements on the growing 
impact of cybersecurity threats as Chair of 
the Industry Advisory Panel to the Federal 
Government on Australia’s 2020 Cyber Security 
Strategy and appointment of a senior executive 
in Telstra as Head of Cyber Security

 — Level 1 Partners up from 5 to 9 by year end 

including Vodafone Idea (Vi) in India and Mojo 
Access (part of the CSquared Group) in Africa.  
Also noteworthy was the signing of Dimension 
Data Systems Africa, part of the NTT Group (a 
FirstWave Level 1 Partner)

 — Billing Partners up from 28 to 52 by year end

 — New articulation of the Company’s purpose as 

‘Democratising cybersecurity-as-a-service’ for the 
world’s SMBs in October

 — Additions to the product portfolio of Advanced 

Detect and Respond (ADR) Essentials for Email in 
partnership with SHELT Global; and WebProtect 
DNS under an exclusive reseller agreement with 
Simplifyd Systems UK

Transitioning of the Company’s OEM reseller 
arrangements with Cisco Systems from one of 
optimism for significant revenue growth at the start 
of the year, to likely no additional revenue and cost 
out by the end of the year

Delivery of the Company’s first ever presentation of 
its Product Roadmap to Investors and Partners in 
November

 — Early success with WebProtectDNS delivering 
solid international recurring revenues in H2

 — A share placement in April of $6m leading to a 

strong cash on hand position at June 30 of $9.96 
million

 — A reduction in operating expense compared with 

the prior year of circa $2 million

 — Appointment of Kevin Bloch, ex Cisco Systems 
Chief Technical Officer for Australia and New 
Zealand, in July, as Advisor to the Company on 
Technology and Markets

 — Post financial year end:

– Changes to leadership of the Company with
me stepping in as Interim CEO after Neil
Pollock’s departure (in July 2021), and David
Hwang joining the board following David
Action’s departure (in June 2021)

– The Company received two unrelated notices
from Level 1 Partners in Africa, CSquared on
behalf of its operating company in Kenya,
Mojo Access, and Telum Technologies
(Nairobi), that they were seeking to pause
billing under their contracts to resell
WebProtectDNS and revise key terms of the
contracts. The FirstWave Board acceptance of
these requests was deemed material and led
to the Company seeking a halt to trading in
its securities on Monday 18 October. The two
contracts represented AU$1.95 million of the
AU$3.0 million IARR reported at FirstWave’s Q4
FY21 update, and this revenue was excluded
from FirstWave’s calculation of IARR at the
close of Q1 FY22

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — Of greatest significance however, was the 

realization in Q3 that, aside from the inherently 
slow speed to market of our telco partners, 
our core cybersecurity-as-a-service software 
presented a level of ‘friction’ for partners and 
end users, to rapid scaling. The catalyst for this 
realization was the ‘opt-out’ adoption model for 
WebProtectDNS and the mobile presentation 
interface provided to end users of the service.  
Because of this, post year end we took difficult 
decisions to: 

– Not actively engage with new partners for sale
of the CCSP platform and its security services
until the software is enhanced

– Direct development efforts as a priority to

enhancing the product to remove the ‘friction’
– an estimated 9-month effort

– Direct our sales efforts to discrete ‘point’

solutions with the potential for rapid return –
WebProtectDNS, ADR Essentials for Email and
MTPAN (Multi-tenant Palo Alto Networks), and

– With the potential that these decisions would
dampen the level of growth in revenue, lower
operating costs further.

In Closing:
The next financial year will challenge shareholders 
once again as their continuing support rests on what 
we strongly believe will be the positive impact of 
the refreshed product – but this will not be available 
until late in Q3. The Board and management team 
is determined to apply the Company’s resources in a 
way we believe is in shareholders’ best interests and 
our sincere thanks go to them for their continued 
support for the Company – we understand your 
sometimes difficult journey. My sincere thanks also 
go to our full team who continue to deliver to their 
best ability under pressure – FirstWave is a very 
hard-working Company – and to my fellow directors 
for their patience and support.

Kind regards

John Grant 
Executive Chairman

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors’ report
30 June 2021

The directors present their report, together with 
the financial statements, on the consolidated 
entity (referred to hereafter as the ‘consolidated 
entity’ or ‘FirstWave’) consisting of Firstwave Cloud 
Technology Limited (referred to hereafter as the 
‘company’, or ‘parent entity’) and the entities it 
controlled at the end of, or during, the year ended 
30 June 2021.

Directors
The following persons were directors of Firstwave 
Cloud Technology Limited during the whole of the 
financial year and up to the date of this report, 
unless otherwise stated:

John Grant - Executive Director and Chairman
Paul MacRae - Non-Executive Director
Euh (David) Hwang - Non-Executive Director 
(appointed on 7 June 2021)
Scott Lidgett - Non-Executive Director (resigned on 
4 February 2021)
David Acton - Non-Executive Director (resigned on 7 
June 2021)

Principal activities
During the financial year, the principal continuing 
activities of the consolidated entity comprise of 
development and sale of internet security software.

Dividends
There were no dividends paid, recommended or 
declared during the current or previous financial 
year.

Review of operations
FirstWave Cloud Technology Limited, the Australian 
global cybersecurity technology company, provides 
a review of its operations for the Financial Year 2021 
(‘FY21’).

FirstWave’s mission is to democratise enterprise-
grade cybersecurity-as-a-service to protect the 
world’s small and medium sized businesses 
(SMBs) from cyber-threats at their perimeter, while 
delivering incremental revenue at scale to its service 
provider partners who serve SMBs around the world.

In support of its mission, FirstWave achieved the 
following outcomes during FY21:

 — Welcomed four new Level 1 partners:

 – Tata Teleservices Limited - India (August 2020)

 – Vodafone Idea Limited - India (September 

2020)

 – Moja Access (part of CSquared Group) - Africa 

(February 2021)

 – Dimension Data Systems - Africa (March 2021)

 — Continued investment in international growth 

resulting in billing partners increasing from 40 to 
52 during the year.

 — Introduced two new services to its portfolio:

 – WebProtect DNS from Simplfyd Systems in the 
UK, achieving significant success in driving new 
recurring revenues at telcos attaching Web 
DNS security under an ‘opt-out’ model to their 
network customers.

 – Advanced Detection and Response (‘ADR’), 
jointly developed with Middle East partner 
SHELT Global (‘SHELT’). 4,413,430 shares were 
issued as payment for SHELT’s contribution to 
the development of the first release of the new 
service, ADR for Email. Subsequent releases 
will deliver ADR for Web and End Point and are 
targeted to deliver incremental revenue.

In the quarterly updates provided to shareholders, 
it was noted that COVID-19 had a significant impact 
on the markets in which FirstWave operates and the 
expectation that market activity would have returned 
to normal by October 2020, which underpinned the 
May 2020 capital raise, did not eventuate. FirstWave 
continued to experience lower sales activity, 
particularly in the UK, Europe and India markets 
that have been impacted by COVID-19 to varying 
degrees over the year.

FirstWave also announced the withdrawal of a 
supplier loan facility from its major Australian 
customer Telstra, that, in the short term reduced 
FirstWave’s access to working capital.

These two items led to the withdrawal of the FY21 
guidance that had been provided to the market and 
were key contributors to the decision for FirstWave 
to raise additional capital in April 2021.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial review
Profit or loss performance

FirstWave’s revenue for the year was $7,975,182 
(2020: $8,252,880), which represents a reduction of 
3.4% over the prior comparative period (‘PCP’). This 
reduction was due to non-recurring revenues being 
$425,936 lower than the PCP. Recurring revenue 
was $7,595,067 (2020: $7,446,829) representing an 
increase of 2.0% over PCP. As disclosed in note 3 
of the financial statements, international revenue 
increased by $860,185 to $1,246,386 (2020: 
$386,201) and represented 15.6% of total revenues 
from customers (2020: 4.7%). Non-recurring revenue 
was $380,115, representing 4.8% (2020: 9.8%) of 
total revenue.

As indicated above, FY21 international revenue 
was significantly higher than FY20 but was below 
FirstWave’s expectations due to the impact from 
COVID-19 which interrupted promising partnerships 
with Digital Wholesale Solutions Limited (DWS) and 
NTT Data UK Limited (NTT) in the UK and Europe. It 
also injected uncertainty in all international markets 
resulting in commercial decisions being delayed.

FirstWave’s total comprehensive loss after income 
tax was $10,807,928 (2020: loss $13,779,300), 
representing a 21.6% improvement on the PCP. This 
result includes the full impact of the recognition 
of non-cash share-based payment expenses of 
$3,078,902 (2020: $3,964,044), resulting from share 
rights and options being granted to employees 
and officers. These are reported in divisional 
expense classifications, e.g., Sales and marketing – 
international, Product and development and hence 
align with where the recipient’s employment costs 
have been recognised in the statement of profit or 
loss and other comprehensive income.

FirstWave continued its focus on disciplined cost 
management and ‘cash-settled’ expenses (those 
that the company pays for in cash and hence 
excludes share-based payments or depreciation or 
amortisation) which were $2,886,812 lower than the 
previous year at $12,213,739 (2020: $15,100,551).

The Research and Development (R&D) tax incentive 
of $2,061,928 relating to FY20 was recognised as 
income on its receipt in January 2021 (i.e., FY21). 
With the experience that FirstWave has developed 
in estimating R&D returns and the fact that an R&D 
rebate has been granted consistently over several 
years, FirstWave has recognised R&D income in 
FY21 on an accrual basis. Therefore, the financial 
result for FY21 includes both R&D income from 
the prior period of $2,061,928 and FY21 accrued 
income estimated at $1,275,017. Refer to note 5 of 
the financial statements for more details.

Statement of financial position

Cash and cash equivalents decreased by 
$5,319,472 which was largely as a consequence of 
further investment of $3,727,130 into FirstWave’s 

technology platform and a net cash outflow of 
$8,046,673 to support operating activities. Net cash 
used in operating activities was lower than PCP by 
$654,106 (7.5%). Cash receipts from customers were 
$4,070,181 (down from FY20: $8,334,102) mainly 
due to Telstra’s withdrawal of its supplier financing 
platform. The prepayment this facility provided 
to FirstWave was, at its maximum, approximately 
$4,600,000 per annum. The impact of this change 
is ‘once-off’ as explained further in the statement of 
financial position below.

Through a successful placement to institutional and 
sophisticated investors in April 2021, followed by a 
share purchase plan offered to all shareholders, the 
company raised $6,441,238 by issuing 71,577,825 
shares at $0.09 per share. The cash flow impact of 
these activities was an injection of $6,093,209 after 
recognising $348,029 in capital raising fees.

14,711,627 sub-underwriter options from the May 
2020 capital raise were exercised during the year, 
adding an additional $735,581 to cash reserves.

FirstWave has significant intangible assets of 
$9,503,305 on the statement of financial position, 
the majority of which relates to the development 
of the FirstWave platform. FirstWave continues to 
invest in the platform through the capitalisation of 
applicable projects.

In the prior year, as previously discussed, there 
was an upfront cash payment received through 
the Telstra supplier facility. This has now been 
discontinued and FirstWave has commenced 
invoicing Telstra monthly in arrears on 45- day 
payment terms as from March 2021. Initially the 
cash on hand reduced without further billing as 
the prepaid revenue previously received was 
transferred from deferred revenue to the profit and 
loss statement as revenue earned. From March 2021 
to February 2022, the deferred revenue will reduce 
each month and monthly invoicing will represent a 
growing portion of monthly revenues. This will result 
in the debtor balance increasing to reflect monthly 
invoicing and 45- day payment terms, the impact 
of which can be seen in note 9 of the financial 
statements.

Significant changes in the  
state of affairs
Significant changes in the state of affairs of the 
consolidated entity are detailed in the ‘review of 
operations’ section above.

Matters subsequent to the end  
of the financial year
The consequences of the Coronavirus (COVID-19) 
pandemic are continuing to be felt around the 
world, and its impact on the consolidated entity, 
has been reflected in its published results to date. 
Whilst it would appear that control measures 

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and related government policies have started to 
mitigate the risks caused by COVID-19, it is not 
possible at this time to state that the pandemic will 
not subsequently impact the consolidated entity’s 
operations going forward. The consolidated entity 
now has experience in the swift implementation 
of business continuation processes should future 
lockdowns of the population occur, and these 
processes continue to evolve to minimise any 
operational disruption. Management continues to 
monitor the situation both locally and internationally.

Neil Pollock, the Chief Executive Officer (‘CEO’) 
resigned on 8 July 2021 and John Grant, the 
Executive Chairman has assumed the role until a 
permanent CEO is appointed.

The remaining 15,288,373 sub-underwriter options 
from the May 2020 capital raise were exercised in 
July and August 2021, raising a further $764,419 to 
cash reserves.

No other matter or circumstance has arisen since 
30 June 2021 that has significantly affected, or 
may significantly affect the consolidated entity’s 
operations, the results of those operations, or the 
consolidated entity’s state of affairs in future financial 
years.

Likely developments and expected 
results of operations
The consolidated entity’s priorities for FY22 are:

 — Enhance the platform to remove friction for SMB 
end users and Service Providers in adoption of 
the platform at scale. The work to deliver this is 
expected to complete in third quarter of FY22;

 — Ahead of releasing these software updates, focus 
sales efforts on ‘point’ services that can deliver 
the highest immediate return (e.g., WebProtect, 
ADR for Email, Multi-tenant Palo Alto Firewall 
and End Point) rather than engaging new 
Partners; and

 — Further lower operating costs by an estimated 

$2,000,000 per annum.

Environmental regulation
The consolidated entity is not subject to any 
significant environmental regulation under Australian 
Commonwealth or State law.

Information on current directors
Information on the directors of the company as at 30 
June 2021 is set out below:

Name:

Title:

Qualifications:

Experience and 
expertise:

Other current 
directorships:

Former 
directorships 
(last 3 years):

Special 
responsibilities:

Interests in 
shares:

Interests in 
options:

Interests in 
rights:

John Grant
Executive Director and 
Chairman

John has a degree in 
Engineering with Honours

John has an extensive 
career spanning technology, 
engineering and construction 
and sports administration. 
He has held leadership 
positions including Managing 
Director and CEO of ASX 
listed technology company, 
Data#3 Limited, and inaugural 
Chair of the Australian Rugby 
League Commission. He is 
currently a Non-Executive 
Director of UniQuest Pty Ltd 
and Stadiums Queensland. 
He has also chaired or 
been a member of various 
industry and government 
advisory groups and industry 
associations.

None

None

Member of the Remuneration 
and Nomination Committee 
and member of the Audit, Risk 
and Compliance Committee

3,995,400 ordinary shares

4,200,000 options over 
ordinary shares

6,766,638 service rights

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Name:

Title:

Qualifications:

Experience and 
expertise:

Other current 
directorships:

Former 
directorships 
(last 3 years):

Special 
responsibilities:

Interests in 
shares:

Interests in 
options:

Interests in 
rights:

Paul MacRae
Non-Executive Director

Paul is a Graduate of the 
Australian Institute of 
Company Directors and 
holds Business qualifications 
and a Bachelor of Science in 
Chemistry from The University 
of Glasgow.

Paul has a successful history 
of setting up and running 
businesses in the IT industry 
in Australia and overseas. 
Paul’s background includes 
having run divisions of 
TechnologyOne Limited. Paul 
has a strong background in IT 
security, application software, 
software development, 
outsourcing, cloud computing 
and transactional systems. 
His roles have included 
establishing MessageLabs 
in Australia & NZ (which was 
acquired by Symantec to 
establish their cloud business). 
He set up the Global 
reservation system Galileo in 
New Zealand. He was involved 
in selling his successful SAP 
Consultancy and has been 
instrumental in growing 
business at several leading 
software companies.

None

None

Chairman of the Audit, Risk 
and Compliance Committee 
and member of the 
Remuneration and Nomination 
Committee

3,682,084 ordinary shares

1,200,000 options over 
ordinary shares

2,040,740 restricted rights

Name:

Title:

Euh (David) Hwang
Non-Executive Director 
(appointed on 7 June 2021)

Qualifications:

Bachelor of Laws from UNSW

Experience and 
expertise:

Other current 
directorships:

Former 
directorships 
(last 3 years):

Special 
responsibilities:

David is an experienced 
corporate lawyer specialising 
in capital markets, corporate 
governance and compliance. 
He currently serves as 
Principal of Automic Legal 
(formerly Whittens & 
McKeough), an Australian 
specialist law and corporate 
governance firm. He also 
serves as Chief Compliance 
Officer of Automic Group. 
He has extensive expertise 
in legal, governance and 
compliance matters for ASX 
listed entities across a wide 
range of industry sectors, 
including technology, and 
currently serves as company 
secretary for a number of ASX 
listed companies, including 
LiveTiles Limited (ASX: LVT) 
and BikeExchange Limited 
(ASX: BEX). He is also a 
Notary Public.

None

None

Chairman of the Remuneration 
and Nomination Committee 
and member of the Audit, Risk 
and Compliance Committee

Interests in 
shares:

Interests in 
options:

Interests in 
rights:

None

None

None

‘Other current directorships’ quoted above are current directorships 
for listed entities only and excludes directorships of all other types 
of entities, unless otherwise stated.

‘Former directorships (last 3 years)’ quoted above are directorships 
held in the last 3 years for listed entities only and excludes 
directorships of all other types of entities, unless otherwise stated.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company secretary
Iain Bartram studied both as an undergraduate and postgraduate at Cambridge University, United Kingdom 
and has a Master’s degree in Computer and Management Science and a post graduate diploma in Design and 
Manufacturing. He went on to train as an accountant with PwC in London and holds an ACA and is a member 
of Institute of Chartered Accountants in England and Wales as well as being a member of the Institute of 
Chartered Accountants Australia. He was appointed as company secretary on 9 November 2020. Iain has 
over 20 years’ experience as a strategic CFO with international experience in high growth, listed and unlisted 
technology businesses. Iain’s previous experience includes CFO of Jaxsta Limited (ASX:JXT) and Group CFO 
of Fusion Payments.

The previous company secretary Gai Stephens resigned on 9 November 2020.

Meetings of directors
The number of meetings of the company’s Board of Directors (‘the Board’) and of each Board committee held 
during the year ended 30 June 2021, and the number of meetings attended by each director were:

Full Board

Remuneration and 
Nomination Committee

Audit, Risk and 
Compliance Committee

Attended

Held

Attended

Held

Attended

Held

John Grant

Paul MacRae

Euh (David) Hwang

Scott Lidgett

David Acton

12

12

1

7

11

12

12

1

7

11

5

4

1

1

4

5

5

1

3

4

5

5

-

-

2

5

5

1

3

4

Held: represents the number of meetings held during the time the director held office or was a member of the 
relevant committee.

Remuneration report (audited)
The remuneration report details the key management personnel (‘KMP’) remuneration arrangements for the 
consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

KMP 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 information

 — Additional disclosures relating to key management personnel

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed remuneration, consisting of base salary, 
superannuation and non-monetary benefits, 
is reviewed annually by the Board based on 
individual and business unit performance, the 
overall performance of the consolidated entity and 
comparable market remuneration.

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 short-term incentive program is designed to 
align the targets of the business units with the 
targets of those executives responsible for meeting 
those business unit targets. STI payments are 
granted to executives based on specific annual 
targets and key performance indicators (KPI’s) being 
achieved. KPI’s relate to qualitative and quantitative 
leadership performance and are subject to Board 
discretion.

The business did not achieve the consolidated entity 
targets that had been agreed with the KMP for 
FY21 and the KMP were therefore only rewarded for 
performance against their own personal targets. Neil 
Pollock was awarded $41,141 which was paid in cash 
in June 2021 and represented 14% of his potential 
STI. Simon Ryan was awarded $36,050 which 
represented 16% of his potential STI. Simon agreed 
to accept 522,461 restricted rights in lieu of cash 
and these rights were issued on 6 September 2021. 
Iain Bartram joined post the FY21 targets being 
agreed with the KMP and was tasked with a number 
of additional responsibilities that fell outside of the 
main consolidated entity targets and it was agreed 
in March 2021 to pay his full STI in restricted shares 
prorated down to the actual period of service for the 
year. This amounted to $78,750 paid in restricted 
rights under the share rights plan at a 5-day VWAP 
of $0.155 which resulted in the issuing of 508,065 
restricted rights in March 2021.

The long-term incentives are in the form of options 
and share rights. The Board reviewed the long-term 
equity-linked performance incentives specifically for 
executives during the year ended 30 June 2021.

The chairman’s remuneration is determined 
independently to the remuneration of the non-
executive directors based on comparative roles in 
the external market. The chairman is not present at 
any discussions relating to the determination of his 
own remuneration.

Principles used to determine the nature 
and amount of remuneration
A major contributor to the performance of the 
consolidated entity is the quality of its directors 
and executives, and the Board is responsible for 
determining and reviewing their remuneration 
arrangements.

The consolidated entity’s remuneration framework 
aims to attract, motivate, reward and retain high 
performing and high quality personnel, and 
consists of a level of fixed remuneration that is 
market competitive and appropriate in recognition 
of the role and the candidate’s experience, and 
a level of variable remuneration that aligns with 
sustained increase in shareholder value and rewards 
performance for results delivered.

The Board of Directors is also cognisant of 
remuneration being within reasonable shareholder 
expectations and to best practice levels of 
transparency.

Non-executive directors’ remuneration

Fees and payments to non-executive directors 
(‘NEDs’) 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’ remuneration and payments 
are appropriate and in line with the market.

The maximum amount of fees that can be paid 
to NEDs is capped by a pool approved by 
shareholders. At a General Meeting, held on 15 April 
2016, shareholders approved the current fee pool of 
$400,000 per annum which is recorded on an accrual 
basis. The fee pool and the base directors’ fees did 
not change in FY2021. Grants of options approved 
by shareholders do not count towards this limit.

Executive remuneration

The consolidated entity aims to reward executives 
based on their position and responsibility, with a 
level and mix of remuneration which has both fixed 
and variable components.

The executive remuneration framework has four 
components:

 — base pay and non-monetary benefits;

 — short-term performance incentives (STI);

 — long term incentives (LTI) in the form of options 

and share rights; and

 — other remuneration such as superannuation and 

long service leave.

The combination of these comprises the executive’s 
total remuneration.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant of share rights in lieu of reduced  
cash remuneration for executives

The consolidated entity has a share option plan and 
a share rights plan to incentivise certain employees 
and KMP. Shareholders approved the Rights Plan at 
an Extraordinary General Meeting held on 29 July 
2020. During the year, the Board established a long-
term incentive scheme (‘LTI’) under the company’s 
Share Rights Plan. Pursuant to the LTI, the Board will 
have the discretion to invite certain key executives 
to apply for Share Appreciation Rights, which 
have been designed to deliver long term variable 
remuneration opportunities for key executives, 
which have service and vesting conditions, that 
assist in aligning the interests of the executives, with 
shareholders of the company. Refer to ‘share-based 
compensation’ section below for further details.

Consolidated entity performance  
and link to remuneration

STIs were linked directly to performance with any 
payment requiring measurable achievement against 
the consolidated entity and individual targets. Any 
STIs and LTIs granted are at the discretion of the 
Board. The current share option plan is subject 
to participants meeting service conditions at the 
vesting date. There were no performance conditions 
linked to the share options or share rights granted 
in prior years. In FY21, Iain Bartram’s LTI’s granted 
under the new scheme discussed above vest against 
service conditions and market performance against 
benchmarks.

Use of remuneration consultants

During the financial year ended 30 June 2020, the 
consolidated entity, through the Remuneration 
and Nomination Committee, engaged Godfrey 
Remuneration Group (‘GRG’), remuneration 
consultants, to review its existing remuneration 
policies and provide recommendations on how to 
improve its remuneration structure. This resulted 
in the introduction of a share rights plan which was 
subsequently approved by shareholders at the 
Extraordinary General Meeting held on 29 July 2020. 
It was reported in the FY20 Annual Report that GRG 
was paid $68,995 for these services. There were no 
additional fees incurred in the FY21 period relating 
to GRG’s services.

An agreed set of protocols was put in place to 
ensure that the remuneration recommendations 
would be free from undue influence from KMP. 
These protocols include requiring that the consultant 
not communicate with affected key management 
personnel without a member of the Nomination and 
Remuneration Committee being present, and that 
the consultant not provide any information relating 
to the outcome of the engagement with the affected 
KMP. The Board is also required to make inquiries of 
the consultant’s processes at the conclusion of the 
engagement to ensure that they are satisfied that 
any recommendations made have been free from 
undue influence. The Board is satisfied that these 
protocols were followed and as such there was no 
undue influence.

Voting and comments made at the company’s 
2020 Annual General Meeting (‘AGM’)

At the 2020 AGM, shareholders voted to approve 
the adoption of the remuneration report of the 
company for the year ended 30 June 2020. The 
company did not receive any specific feedback at 
the AGM regarding its remuneration practices.

Details of remuneration
The KMP of the consolidated entity consisted of the 
directors of Firstwave Cloud Technology Limited and 
the following persons:

 — Simon Ryan - Chief Technology Officer

 — Neil Pollock - Chief Executive Officer (appointed 
on 31 July 2020) and Chief Operating Officer 
(until 31 July 2020)

 — Iain Bartram - Chief Financial Officer (appointed 

on 17 August 2020)

Changes in KMP since the end of the 
reporting period:

Neil Pollock - Chief Executive Officer (resigned on 8 
July 2021)

John Grant - Executive Director and Chairman was 
appointed as the Interim Chief Executive Officer 
with effect from 8 July 2021.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Details of the remuneration of KMP of the consolidated entity are set out in the following tables:

Short-term benefits

Termination 
benefits

Post-
employment 
benefits

Long-term 
benefits

Share-based 
payments

Cash salary 
and fees

Cash bonus

Supe-
annuation

Long service 
leave

Equity-
settled 
options/ 
rights

2021

$

$

$

$

$

$

Total

$

Non-Executive 
Directors:

Paul MacRae

Euh (David) 
Hwang*

Scott Lidgett**

-

-

-

David Acton**

55,382

Executive Director:

John Grant 
(Executive 
Chairman)

Other Key 
Management 
Personnel:

Simon Ryan

Neil Pollock

Iain Bartram***

248,306

283,556

356,061

262,692

-

-

-

-

-

-

41,141

-

1,205,997

41,141

-

-

-

-

-

-

-

-

-

5,510

-

3,673

5,261

21,694

-

-

-

-

-

21,694

15,169

-

19,851

77,683

-

292

135,333

140,843

-

-

135,333

139,006

-

60,643

394,582

664,582

339,126

218,564

306,958

659,545

615,766

589,793

15,461

1,529,896

2,870,178

* Represents remuneration from the date of appointment as KMP for Euh (David) Hwang on 7 June 2021.

** Represents remuneration up to the date of resignation as KMP for Scott Lidgett on 4 February 2021 and David Acton on 7 June 2021.

*** Represents remuneration from the date of appointment as KMP for Iain Bartram on 17 August 2020.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term benefits

Termination 
benefits

Post-
employment 
benefits

Long-term 
benefits

Share-based 
payments

Cash salary 
and fees

Cash bonus

Super- 
annuation

Long service 
leave

Equity-
settled 
options/
rights

2020

$

$

$

$

$

$

Total

$

Non-Executive 
Directors:

John Grant

(Chairman)

Scott Lidgett

Paul MacRae

David Acton*

Simon Moore**

Sam Saba**

Other Key 
Management 
Personnel:

David Kirton***

Simon Ryan

Neil Pollock

Jason Singh***

184,499

22,500

24,167

-

14,500

26,400

217,030

288,833

386,035

163,056

1,327,020

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

21,003

5,352

-

-

1,378

-

38,840

-

-

81,528

20,260

21,003

31,548

21,003

-

-

-

-

-

-

-

9,251

-

-

571,469

78,944

78,944

100,800

-

31,545

776,971

106,796

103,111

100,800

15,878

57,945

-

134,216

156,300

-

276,130

453,303

573,883

265,587

120,368

121,547

9,251

1,152,218

2,730,404

* Represents remuneration from the date of appointment as KMP for John Grant on 1 July 2019 and David Acton on 15 June 2020.

** Represents remuneration up to the date of resignation as KMP for Simon Moore on 31 August 2019 and Sam Saba on 20 December 2019.

*** Represents remuneration up to the date of resignation as KMP for David Kirton and Jason Singh on 28 February 2020.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The proportion of remuneration linked to performance and the fixed proportion are as follows:

Name

2021

2020

2021

2020

2021

2020

Fixed remuneration

STI

STI

Non-Executive Directors:

Paul MacRae

Euh (David) Hwang

Scott Lidgett

David Acton

Simon Moore

Sam Saba

Executive Director

John Grant

Other Key Management 
Personnel:

Simon Ryan

Neil Pollock

Iain Bartram

David Kirton

Jason Singh

4% 

-

3% 

100% 

-

-

23% 

-

26% 

-

100% 

46% 

41% 

26% 

49% 

58% 

48% 

-

-

70% 

73% 

-

100% 

100% 

-

-

-

-

-

-

-

-

7% 

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

96% 

-

97% 

-

-

-

77% 

-

74% 

100% 

-

54% 

59% 

74% 

51% 

35% 

52% 

-

-

30% 

27% 

-

-

-

Service agreements
The consolidated entity enters into employment agreements with each KMP. The employment agreements 
with the KMP are continuous (i.e., not of fixed duration) and includes a minimum of 4 weeks’ notice on the 
part of the employee and the consolidated entity. The employment agreements contain substantially the same 
terms which include the usual statutory entitlements, typical confidentiality and intellectual property provisions 
intended to protect the consolidated entity’s intellectual property rights and other proprietary information 
and non-compete clauses. KMP have no entitlement to termination payments in the event of removal for 
misconduct.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation
Issue of shares

During the year ended 30 June 2021, Neil Pollock exercised 1,464,074 service rights that resulted in 1,464,074 
shares being issued. These shares indirectly related to Neil’s compensation for the period as the service rights 
were awarded to Mr Pollock for salary sacrifice and had vested during the year against Mr Pollock’s service.

Options

The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and 
other KMP in this financial year or future reporting years are as follows:

Number 
of options 
granted

Grant date

Vesting 
date and 
exercisable 
date

Expiry date

Exercise 
price

1,400,000

20/11/2019

01/07/2020

30/06/2023

1,400,000

20/11/2019

01/07/2021

30/06/2024

1,400,000

20/11/2019

01/07/2022

30/06/2025

Name

John Grant

John Grant

John Grant

Neil Pollock

1,333,333

09/11/2018

01/07/2020

30/06/2025

Neil Pollock

1,333,334

09/11/2018

01/07/2021

30/06/2026

Fair value 
per share 
right at 
grant date

$0.084 

$0.087 

$0.093 

$0.094 

$0.092 

$0.304 

$0.425 

$0.547 

$0.400 

$0.520 

Options granted carry no dividend or voting rights. Vesting of the options are subject to service conditions 
(continuous employment) and there are no performance conditions.

The number of options over ordinary shares granted to and vested in directors and other KMP as part of 
compensation during the year ended 30 June 2021 is set out below: 

Name

John Grant

Neil Pollock

Number of options 
granted during the 
year 2021

Number of options 
granted during the 
year 2020

Number of options 
vested during the 
year 2021

Number of options 
vested during the 
year 2020

-

-

4,200,000

-

1,400,000

1,333,334

-

1,333,333

Values of options over ordinary shares granted, exercised and lapsed for directors and other key management 
personnel as part of compensation during the year ended 30 June 2021 are set out below:

Value of options 
granted during 
the year

Value of options 
exercised during 
the year

Value of options 
lapsed during the 
year

Remuneration 
consisting of options 
for the year

$

$

$

%

-

-

-

-

-

-

15% 

8% 

Name

John Grant

Neil Pollock

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I

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C

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C

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F

I

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A

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C

I

A

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P

O

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T

S

H

A

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H

O

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D

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I

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F

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M

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share rights
The terms and conditions of each grant of share rights over ordinary shares affecting remuneration of directors 
and other key management personnel in this financial year or future reporting years are as follows:

Number 
of rights 
granted

Grant date

Vesting 
date and 
exercisable 
date

Expiry date

Exercise 
price

Fair value 
per right 
at grant 
date

Name

John Grant

John Grant

John Grant

John Grant

1,349,994

01/06/2020

30/09/2020

30/06/2035

666,666

01/06/2020

31/12/2020

30/06/2035

666,666

01/06/2020

31/03/2021

30/06/2035

666,667

01/06/2020

30/06/2021

30/06/2035

Paul MacRae

107,407

01/12/2019

01/12/2019 *

30/06/2035

Paul MacRae

1,933,333

01/01/2020

01/01/2020 *

30/06/2035

Simon Ryan

Simon Ryan

Simon Ryan

Simon Ryan

Simon Ryan

Simon Ryan

Neil Pollock

Neil Pollock

Neil Pollock

Neil Pollock

437,037

01/06/2020

30/09/2020

30/06/2035

327,778

01/06/2020

31/12/2020

30/06/2035

327,778

01/06/2020

31/03/2021

30/06/2035

327,778

01/06/2020

30/06/2021

30/06/2035

952,270

01/06/2020

30/06/2021

30/06/2035

952,270

01/06/2020

30/06/2022

30/06/2035

585,630

01/06/2020

30/09/2020

30/06/2035

439,222

01/06/2020

31/12/2020

30/06/2035

439,222

01/06/2020

31/03/2021

30/06/2035

439,222

01/06/2020

30/06/2021

30/06/2035

Iain Bartram

2,575,739

01/12/2020

30/06/2023

01/12/2027

Iain Bartram

508,065

11/03/2021

30/06/2021

30/06/2024

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.000

$0.119 

$0.000

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.105 

$0.096 

$0.120 

* Restricted rights to NEDs vest on grant date and are not forfeited on resignation. The exercise of the rights is restricted to the earlier of 30 
June 2023 or date of resignation.

1 6

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share rights granted carry no dividend or voting rights.

Iain Bartram was awarded 2,575,739 Performance Share Appreciation Rights (‘PSARs’) with an exercise price of 
$0.119 per right under the company’s share rights plan. These rights were issued in December 2020 and have 
a 7-year term and vesting criteria relating to service and performance against market benchmark over three 
financial years, FY21, FY22 and FY23. Mr Bartram was also awarded 508,065 restricted rights in lieu of a cash 
STI as detailed in the earlier section on executive remuneration.

The number of share rights over ordinary shares granted to and vested in directors and other key management 
personnel as part of compensation during the year ended 30 June 2021 are set out below:

Name

John Grant

Scott Lidgett

Paul MacRae

David Acton

Simon Ryan

Neil Pollock

Iain Bartram

Number of rights 
granted during the 
year 2021

Number of rights 
granted during the 
year 2020

Number of rights 
vested during the 
year 2021

Number of rights 
vested during the 
year 2020

-

-

-

-

-

-

3,083,804

6,766,638

2,040,740

2,040,740

960,000

4,278,681

1,903,296

-

3,349,996

-

-

-

2,373,141

1,903,296

508,065

3,416,642

2,040,740

2,040,740

960,000

952,770

-

-

* Share rights granted in FY20 relates to remuneration for the years ended 30 June 2020 and 30 June 2021 and were issued during the 
Financial Year 2021.

Values of share rights over ordinary shares granted, vested and lapsed for directors and other key 
management personnel as part of compensation during the year ended 30 June 2021 are set out below:

Value of rights 
granted during the 
year

Value of rights 
vested during the 
year

Value of rights 
lapsed during the 
year

Remuneration 
consisting of rights 
for the year

$

-

-

-

-

-

306,958

$

351,750

-

-

249,180

199,846

78,750

$

%

-

-

-

-

-

-

44% 

97% 

96% 

51% 

28% 

52% 

Name

John Grant

Scott Lidgett

Paul MacRae

Simon Ryan

Neil Pollock

Iain Bartram

1 71 7

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A

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A

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H

O

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D

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional information
During the year, the consolidated entity issued 2,575,739 Performance Share Appreciation Rights (‘PSAR’). 
The rights are subject to service condition and performance conditions. The rights will vest on a pro-rata 
basis based on the company’s relative Total Shareholder Return (‘company TSR’) compared to the ASX Small 
Ordinaries Index (‘Benchmark TSR’). The performance testing period is over 3 years starting from 1 July 2020 
to 30 June 2023.

The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:

Basic earnings per share (cents per share)

Total dividends declared (cents per share)

Share price at financial year end ($)

Benchmark accumulation index

30 June 2021

1 July 2020

(1.61)

-

0.07

3,383.60

-

-

0.14

2,599.20

Additional disclosures relating to key management personnel
Shareholding

The number of shares in the company 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 
start of the year

Received 
as part of 
remuneration**

Purchased 
during the year

Disposals/ 
other*

Balance at the 
end of the year

Ordinary shares

John Grant

Paul MacRae

Scott Lidgett*

Simon Ryan

Neil Pollock**

3,995,400

3,682,084

21,296,712

5,615,000

340,162

34,929,358

-

-

-

-

1,464,074

1,464,074

-

-

-

-

-

-

-

-

(21,296,712)

(1,590,200)

-

3,995,400

3,682,084

-

4,024,800

1,804,236

(22,886,912)

13,506,520

* Disposal/others represents 600,000 shares sold and 20,696,712 shares held at resignation date. 

** Neil Pollock’s remuneration represents issue of shares on vesting/exercised of 1,464,074 of service rights during the year.

1 8

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option holding

The number of options over ordinary shares in the company 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 
start of the year

Granted

Lapsed

Other*

Balance at the 
end of the year

Options over 
ordinary shares

John Grant

Paul MacRae

Scott Lidgett*

Simon Ryan

Neil Pollock

4,200,000

1,200,000

1,200,000

1,350,000

4,000,000

11,950,000

-

-

-

-

-

-

-

-

-

(600,000)

-

-

-

(1,200,000)

-

-

4,200,000

1,200,000

-

750,000

4,000,000

(600,000)

(1,200,000)

10,150,000

* Others represents options held on resignation date.

Options over ordinary shares  
(vested at 30 June 2021)

John Grant

Paul MacRae

Simon Ryan

Neil Pollock

Total vested options over ordinary shares

Vested and 
exercisable

Vested and 
unexercisable

Balance at the 
end of the year

1,400,000

1,200,000

750,000

2,666,666

6,016,666

-

-

-

-

-

1,400,000

1,200,000

750,000

2,666,666

6,016,666

1 91 9

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share rights holding

The number of share rights over ordinary shares in the company 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 
start of the year

Granted

Expired/ 
forfeited/ other*

Balance at the 
end of the year

Share rights over  
ordinary shares

John Grant

Paul MacRae

Simon Ryan

Neil Pollock

Iain Bartram

6,766,638

2,040,740

4,278,681

1,903,296

-

14,989,355

-

-

-

-

3,083,804

3,083,804

-

-

-

(1,464,074)

-

6,766,638

2,040,740

4,278,681

439,222

3,083,804

(1,464,074)

16,609,085

* Neil Pollock exercised 1,464,074 of his service rights during the period.

Share rights holding over ordinary shares  
(vested at 30 June 2021)

John Grant

Paul MacRae

Scott Lidgett*

David Acton**

Simon Ryan

Neil Pollock

Iain Bartram

Total vested share rights holding  
over ordinary shares

Vested and 
exercisable

Vested and 
unexercisable

Balance at the 
end of the year

6,766,638

-

-

-

3,325,911

439,222

508,065

-

2,040,740

6,766,638

2,040,740

-

-

-

-

-

-

-

3,325,911

439,222

508,065

11,039,836

2,040,740

13,080,576

* 

** 

Scott Lidgett held 2,040,740 share rights that were vested and became exercisable on resignation.

David Acton held 960,000 share rights that were vested and became exercisable on resignation.

Loans to key management personnel and their related parties

Loan to Simon Ryan as at 30 June 2021 amounted to $Nil (2020: $221,520). Interest is charged on the 
outstanding balance at 4.5% per annum. During the year ended 30 June 2021, interest of $1,662 was received 
from Simon Ryan (2020: $9,972) in respect of this loan.

This concludes the remuneration report, which has been 
audited.

2 0

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares under option
There were 31,925,999 unissued ordinary shares of 
Firstwave Cloud Technology Limited under option 
outstanding at the date of this report. The options 
are exercisable at a weighted average exercise price 
of $0.38 per option.

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 under share rights
There were 22,493,927 unissued ordinary shares of 
Firstwave Cloud Technology Limited under share 
rights outstanding at the date of this report. This 
includes 2,575,739 PSARs that have an exercise 
price of $0.119. The remaining 19,918,188 share 
rights have no exercise price.

Shares issued on the exercise of options
30,000,000 ordinary shares of Firstwave Cloud 
Technology Limited were issued on the exercise 
of options during the year ended 30 June 2021 
and up to the date of this report. The options were 
exercised at an exercise price of $0.05 per share.

Shares issued on the exercise  
of share rights
14,283,189 ordinary shares of Firstwave Cloud 
Technology Limited were issued on the exercise of 
share rights during the year ended 30 June 2021 
and up to the date of this report. Share rights were 
exercised at an exercise price of $Nil.

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 financial year, 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 year, indemnified or agreed to indemnify 
the auditor of the company or any related entity 
against a liability incurred by the auditor.

During the financial year, the company has not paid 
a premium in respect of a contract to insure the 
auditor of the company or any related entity.

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
Details of the amounts paid or payable to the 
auditor for non-audit services provided during the 
financial year by the auditor are outlined in note 26 
to the financial statements.

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 26 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 (including 
Independence Standards) 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.

2 12 1

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Officers of the company who are former partners of Grant Thornton
There are no officers of the company who are former partners of Grant Thornton.

Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 
2001 is set out immediately after this directors’ report.

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

John Grant 
Executive Director and Chairman 

Paul MacRae 
Director

28 September 2021 
Sydney 

2 2

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
  
 
 
 
 
 
 
 
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Y

FINANCIAL  
REPORT

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 28 
September 2021. The directors have the power to 
amend and reissue the financial statements.

General information
The financial statements cover Firstwave Cloud 
Technology Limited (referred to as the ‘company’ 
or ‘parent’) as a consolidated entity consisting 
of Firstwave Cloud Technology Limited and the 
entities it controlled at the end of, or during, the 
year (referred to as the ‘consolidated entity’). The 
financial statements are presented in Australian 
dollars, which is Firstwave Cloud Technology 
Limited’s functional and presentation currency.

Firstwave Cloud Technology Limited is a listed 
public company limited by shares, incorporated 
and domiciled in Australia. Its registered office and 
principal place of business is:

Level 10, 132 Arthur Street 
North Sydney, NSW 2060 
Australia  

2 32 3

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Auditor’s independence declaration

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2 4

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTGrant Thornton Audit Pty Ltd ACN 130 913 594asubsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory servicesto their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firmof Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.Liability limited by a scheme approved under Professional Standards Legislation. www.grantthornton.com.au Level 17, 383 Kent StreetSydney NSW 2000Correspondence to:Locked Bag Q800QVB Post OfficeSydney NSW 1230T+61 2 8297 2400F+61 2 9299 4445E info.nsw@au.gt.comWwww.grantthornton.com.auAuditor’s Independence Declaration To the DirectorsofFirstwave Cloud Technology LimitedIn accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Firstwave Cloud Technology Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:ano contraventions of the auditor independence requirements of the CorporationsAct 2001 in relation to the audit; andbno contraventions of any applicable code of professional conduct in relation to the audit.Grant Thornton Audit Pty LtdChartered AccountantsR J IsbellPartner –Audit & AssuranceSydney, 28 September 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of profit or loss and other  
comprehensive income
For the year ended 30 June 2021

Revenue

Revenue from contracts with customers

Cost of sales

Gross profit

Other income

Interest income calculated using the effective interest method

Expenses

Sales and marketing - domestic

Sales and marketing - international

Product and development

Operations and support

Corporate and administration

Finance costs

Total expenses

Loss before income tax expense

Income tax expense

Consolidated

2021 
$

2020 
$

Note

4

6

5

6

7

7,975,182 

8,252,880 

(3,672,032)

(3,770,999)

4,303,150 

4,481,881 

2,427,485 

1,172,565 

91,660 

48,761 

(1,769,430)

(1,598,518)

(3,399,836)

(3,594,396)

(3,246,854)

(3,741,179)

(2,884,306)

(3,228,096)

(6,280,826)

(7,193,129)

(53,151)

(125,370)

(17,634,403)

(19,480,688)

(10,812,108)

(13,777,481)

-  

-  

Loss after income tax expense for the year attributable to the 
owners of Firstwave Cloud Technology Limited

(10,812,108)

(13,777,481)

Other comprehensive income

Items that may be reclassified subsequently to profit or loss

Foreign currency translation

Other comprehensive income for the year, net of tax

Total comprehensive income for the year attributable to the 
owners of Firstwave Cloud Technology Limited

Basic earnings per share

Diluted earnings per share

4,180 

4,180 

(1,819)

(1,819)

(10,807,928)

(13,779,300)

34

34

Cents

(1.61)

(1.61)

Cents

(4.24)

(4.24)

The above statement of financial position should be read in conjunction with the accompanying notes. 

2 52 5

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of financial position
As at 30 June 2021

Assets

Current assets

Cash and cash equivalents

Term deposits

Trade and other receivables

Contract assets

Other assets

Total current assets

Non-current assets

Property, plant and equipment

Right-of-use assets

Intangibles

Other assets

Total non-current assets

Total assets

Liabilities

Current liabilities

Trade and other payables

Contract liabilities

Employee benefits

Lease liabilities

Other

Total current liabilities

Non-current liabilities

Contract liabilities

Employee benefits

Provisions

Lease liabilities

Other

Total non-current liabilities

Total liabilities

Net assets

Equity

Issued capital

Reserves

Accumulated losses

Total equity

Note

8

9

Consolidated

2021 
$

2020 
$

9,961,866 

15,281,338 

133,776 

2,843,953 

552,697 

133,776 

776,062 

452,652 

10

1,139,701 

1,132,099 

14,631,993 

17,775,927 

11

12

13

10

14

15

16

18

19

15

16

17

18

19

21

22

126,206 

622,149 

228,928 

382,165 

9,503,305 

6,667,519 

-  

192,016 

10,251,660 

7,470,628 

24,883,653 

25,246,555 

4,258,988 

3,068,781 

901,819 

3,046,578 

1,266,539 

176,758 

832,128 

976,409 

464,271 

429,264 

7,436,232 

7,985,303 

121,231 

155,445 

105,000 

456,230 

592,812 

116,172 

152,649 

-  

1,739,171 

1,044,667 

2,577,077 

1,906,300 

10,013,309 

9,891,603 

14,870,344 

15,354,952 

63,760,506 

54,667,525 

7,611,200 

6,386,579 

(56,501,362)

(45,699,152)

14,870,344 

15,354,952 

 The above statement of financial position should be read in conjunction with the accompanying notes. 

2 6

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of changes in equity
For the year ended 30 June 2021

Consolidated

Issued 
capital  
$

Reserves  
$

Accumulated 
losses 
$

Total equity 
$

Balance at 1 July 2019

36,506,677

2,736,492

(32,233,809)

7,009,360

Loss after income tax expense for the year

Other comprehensive income  
for the year, net of tax

Total comprehensive income for the year

Transactions with owners in their capacity 
as owners:

-

-

-

-

(13,777,481)

(13,777,481)

(1,819)

-

(1,819)

(1,819)

(13,777,481)

(13,779,300)

Contributions of equity, net of transaction 
costs (note 21)

18,160,848

Share-based payments (note 35)

Transfer to retained earnings

Fair value of options issued to sub-
underwriters

-

-

-

-

2,134,044

(312,138)

-

-

18,160,848

2,134,044

312,138

-

1,830,000

-

1,830,000

Balance at 30 June 2020

54,667,525

6,386,579

(45,699,152)

15,354,952

Consolidated

Issued 
capital  
$

Reserves  
$

Accumulated 
losses 
$

Total equity 
$

Balance at 1 July 2020

54,667,525

6,386,579

(45,699,152)

15,354,952

-

-

-

-

(10,812,108)

(10,812,108)

4,180

-

4,180

4,180

(10,812,108)

(10,807,928)

Loss after income tax expense for the year

Other comprehensive income  
for the year, net of tax

Total comprehensive income for the year

Transactions with owners in their  
capacity as owners:

Contributions of equity, net of transaction 
costs (note 21)

Share-based payments (note 35)

Share issue on exercise of options

2,587,463

(1,848,563)

Transfer to retained earnings

-

(9,898)

9,898

6,505,518

-

-

3,078,902

-

-

-

6,505,518

3,078,902

738,900

-

Balance at 30 June 2021

63,760,506

7,611,200

(56,501,362)

14,870,344

 The above statement of financial position should be read in conjunction with the accompanying notes. 

2 72 7

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of cash flows
For the year ended 30 June 2021

Cash flows from operating activities

Receipts from customers (inclusive of GST)

Consolidated

Note

2021 
$

2020 
$

4,070,181 

8,334,102 

Payments to suppliers and employees (inclusive of GST)

(14,432,542)

(18,130,837)

Interest received

Other income

Interest and other finance costs paid

66,182 

48,761 

2,287,248 

1,172,565 

(37,742)

(125,370)

Net cash used in operating activities

33

(8,046,673)

(8,700,779)

Cash flows from investing activities

Payments for property, plant and equipment

Payments for intangibles

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of shares

Proceeds from exercise of options

Share issue transaction costs

(100,058)

(42,047)

(3,727,130)

(3,708,299)

(3,827,188)

(3,750,346)

6,441,238 

21,615,359 

738,900 

-  

(348,029)

(1,624,511)

Repayment of receivables from key management personnel

221,500 

-  

Repayment of lease liabilities

33

(499,220)

(319,553)

Net cash from financing activities

6,554,389 

19,671,295 

Net increase/(decrease) in cash and cash equivalents

(5,319,472)

7,220,170 

Cash and cash equivalents at the beginning of the financial year

15,281,338 

8,061,168 

Cash and cash equivalents at the end of the financial year

8

9,961,866 

15,281,338 

The above statement of financial position should be read in conjunction with the accompanying notes. 

2 8

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements
30 June 2021

Note 1. Significant accounting 
policies
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.

New or amended Accounting Standards 
and Interpretations adopted
The consolidated entity has adopted all of the 
new or amended Accounting Standards and 
Interpretations issued by the Australian Accounting 
Standards Board (‘AASB’) that are mandatory for the 
current reporting period.

Any new or amended Accounting Standards or 
Interpretations that are not yet mandatory have not 
been early adopted.

The following Accounting Standards and 
Interpretations adopted during the year are most 
relevant to the consolidated entity:

Conceptual Framework for Financial 
Reporting (Conceptual Framework)

The consolidated entity has adopted the revised 
Conceptual Framework from 1 July 2020. The 
Conceptual Framework contains new definition 
and recognition criteria as well as new guidance 
on measurement that affects several Accounting 
Standards, but it has not had a material impact on 
the consolidated entity’s financial statements.

Research and Development (R&D) tax 
incentive

The R&D tax incentive of $2,061,928 relating to 
the financial year 2020 (‘FY20’) was recognised as 
income on its receipt in January 2021 (i.e., in FY21). 
With the experience that the consolidated entity has 
developed in estimating R&D returns and the fact 
that an R&D rebate has been granted consistently 
over several years, the consolidated entity has 
recognised R&D income in FY21 on an accrual basis. 
Therefore, the financial result for FY21 includes both 
R&D income from the prior period of $2,061,928 
and FY21 accrued income estimated at $1,275,017. 
Refer to note 5 for further information.

Going concern
During the year ended 30 June 2021, the 
consolidated entity incurred a net loss after tax of 
$10,812,108 (2020: loss of $13,777,481 and net cash 
outflows used in operating activities of $8,046,673 
(2020: operating cash outflow of $8,700,779). The 
directors have prepared the financial statements on 
the going concern basis, which assumes continuity 
of normal business activities and the realisation of 
assets and the settlement of liabilities in the ordinary 
course of business.

The directors determined that the use of the going 
concern basis of accounting is appropriate in 
preparing the financial statements. The assessment 
of going concern is based on cash flow projections. 
The preparation of these projections incorporates a 
number of assumptions and judgements, including 
that the R&D tax incentive will continue to be 
claimed and approved at similar levels to prior 
years and that there will be continued growth in 
international revenue. Furthermore, the consolidated 
entity has the ability to significantly reduce its 
operating costs if the above assumptions vary and 
the directors believe that material reductions could 
be made without impact to the servicing of the 
business’s long-standing domestic revenue streams. 
It is also noted that the 15,288,373 sub-underwriter 
options that remained unexercised at 30 June 2021 
have all been exercised after the reporting date 
raising an additional $764,419 in working capital.

The directors have concluded that the range 
of possible outcomes considered in arriving at 
this judgement does not give rise to a material 
uncertainty casting significant doubt on the 
consolidated entity’s ability to continue as a going 
concern.

Basis of preparation
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 
for for-profit oriented entities. These financial 
statements also comply with International Financial 
Reporting Standards (‘IFRS’) as issued by the 
International Accounting Standards Board (‘IASB’).

2 92 9

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Where the consolidated entity loses control over 
a subsidiary, it derecognises the assets including 
goodwill, liabilities and non-controlling interest 
in the subsidiary together with any cumulative 
translation differences recognised in equity. The 
consolidated entity recognises the fair value of the 
consideration received and the fair value of any 
investment retained together with any gain or loss in 
profit or loss.

Operating segments
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 of resources to operating segments and 
assessing their performance.

Foreign currency translation
The financial statements are presented in Australian 
dollars, which is Firstwave Cloud Technology 
Limited’s functional and presentation currency.

Foreign currency transactions
Foreign currency transactions are translated into 
the entity’s functional currency 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 financial year-end exchange rates 
of monetary assets and liabilities denominated in 
foreign currencies are recognised in profit or loss.

Foreign operations

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, 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.

The foreign currency reserve is recognised in profit 
or loss when the foreign operation or net investment 
is disposed of.

Historical cost convention

The financial statements have been prepared under 
the historical cost convention.

Critical accounting estimates

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 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.

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 32.

Principles of consolidation
The consolidated financial statements incorporate 
the assets and liabilities of all subsidiaries of 
Firstwave Cloud Technology Limited (‘company’ or 
‘parent entity’) as at 30 June 2021 and the results of 
all subsidiaries for the year then ended. Firstwave 
Cloud Technology Limited and its subsidiaries 
together are referred to in these financial statements 
as the ‘consolidated 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 
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 ceases.

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 transferred. 
Accounting policies of subsidiaries have been 
changed where necessary to ensure consistency with 
the policies adopted by the consolidated entity.

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 transferred 
and the book value of the share of the non-
controlling interest acquired is recognised directly in 
equity attributable to the parent.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Professional services revenue  
(non-recurring revenue)

Professional services are recognised on a milestone 
basis as per agreed terms and conditions in 
customer contracts and at least to the extent of 
recoverable costs incurred to date.

Interest

Interest income is recognised as interest accrues 
using the effective interest method. This is a method 
of calculating the amortised cost of a financial asset 
and allocating the interest income over the relevant 
period using the effective interest rate, which is the 
rate that exactly discounts estimated future cash 
receipts through the expected life of the financial 
asset to the net carrying amount of the financial 
asset.

Government grants
Government grants are recognised at fair value 
where there is a reasonable certainty that the 
grant will be received upon meeting all grant 
terms and conditions. Grants that are meant to 
fund expenditure on research and development 
are recognised over the periods when these costs 
are written off to profit or loss. Grants related to 
assets are carried forward as deferred income at 
fair value and are credited to other income over the 
expected useful life of the asset on a straight line 
basis. Research and development grant revenue is 
recognised as income when a reliable estimate can 
be made of the amounts receivable.

Prepayments
Prepayments are largely made up of back to back 
cost of licenses procured from upstream security 
vendors/channel partners. These prepayments 
are charged to profit and loss over a term that is 
between 12 and 48 months, co-terming with related 
license revenue recognised per revenue recognition 
policy stated above.

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.

Revenue recognition
The consolidated entity recognises revenue as 
follows:

Revenue from contracts with customers

Revenue is recognised at an amount that reflects 
the consideration to which the consolidated entity is 
expected to be entitled in exchange for transferring 
goods or services to a customer. For each contract 
with a customer, the consolidated entity: identifies 
the contract with a customer; identifies the 
performance obligations in the contract; determines 
the transaction price which takes into account 
estimates of variable consideration and the time 
value of money; allocates the transaction price to 
the separate performance obligations on the basis of 
the relative stand-alone selling price of each distinct 
good or service to be delivered; and recognises 
revenue when or as each performance obligation is 
satisfied in a manner that depicts the transfer to the 
customer of the goods or services promised.

Variable consideration within the transaction 
price, if any, reflects concessions provided to the 
customer such as discounts, rebates and refunds, 
any potential bonuses receivable from the customer 
and any other contingent events. Such estimates 
are determined using either the ‘expected value’ or 
‘most likely amount’ method. The measurement of 
variable consideration is subject to a constraining 
principle whereby revenue will only be recognised 
to the extent that it is highly probable that a 
significant reversal in the amount of cumulative 
revenue recognised will not occur. The measurement 
constraint continues until the uncertainty associated 
with the variable consideration is subsequently 
resolved. Amounts received that are subject to the 
constraining principle are recognised as a refund 
liability.

Disaggregation of revenue

Recurring revenue relates to the provisioning of 
licensing, support, and professional services revenue 
provided over the contracted service period and 
where revenue is recognised over a period of time. 
Non-recurring revenue relates to professional 
services revenue that is ad hoc in nature and where 
revenue is recognised at a point in time.

Licensing and support revenue  
(recurring revenue)

Recognition of licensing and support revenue 
commences upon provisioning of the contracted 
service. Provisioning entails the setting up of the 
customer on the entity’s infrastructure and the 
rendering of prescribed professional services to the 
customer to enable the provision of the contracted 
service. As licensing is subscription based, license 
revenue and the related support service revenue 
is recognised over the term of the contract, 
commencing on the date of service activation.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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:

 — 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

 — when the taxable temporary difference is 

associated with interests in subsidiaries and the 
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.

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 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.

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.

Firstwave Cloud Technology Limited (the ‘head entity’) 
and its wholly-owned Australian subsidiaries have 
formed an income tax consolidated group under the 
tax consolidation regime. The head entity and each 
subsidiary in the tax consolidated group continue 
to account for their own current and deferred tax 
amounts. The tax consolidated group has applied 
the ‘separate taxpayer within group’ approach in 
determining the appropriate amount of taxes to 
allocate to members of the tax consolidated group.

In addition to its own current and deferred tax 
amounts, the head entity also recognises the current 
tax liabilities (or assets) and the deferred tax assets 
arising from unused tax losses and unused tax 
credits assumed from each subsidiary in the tax 
consolidated group.

Assets or liabilities arising under tax funding 
agreements with the tax consolidated entities are 
recognised as amounts receivable from or payable 
to other entities in the tax consolidated group. 

The tax funding arrangement ensures that the 
intercompany charge equals the current tax liability 
or benefit of each tax consolidated group member, 
resulting in neither a contribution by the head 
entity to the subsidiaries nor a distribution by the 
subsidiaries to the head entity.

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 the consolidated entity’s normal 
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 
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 the consolidated entity’s 
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 defer the settlement of the 
liability for at least 12 months after the reporting 
period. All other liabilities are classified as non-
current.

Deferred tax assets and liabilities are always 
classified as non-current.

Cash and cash equivalents
Cash and cash equivalents includes 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 are 
subject to an insignificant risk of changes in value.

Trade and other receivables
Trade receivables are initially recognised at fair value 
and subsequently measured at amortised cost using 
the effective interest method, less any allowance 
for expected credit losses. Trade receivables are 
generally due for settlement within 30 days.

The consolidated entity has applied the simplified 
approach to measuring expected credit losses, 
which uses a lifetime expected loss allowance. 
To measure the expected credit losses, trade 
receivables have been grouped based on days 
overdue.

Other receivables are recognised at amortised cost, 
less any allowance for expected credit losses.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract assets
Contract assets are recognised when the 
consolidated entity has transferred goods or 
services to the customer but where the consolidated 
entity is yet to establish an unconditional right 
to consideration. Contract assets are treated as 
financial assets for impairment purposes.

Other financial assets
Other financial assets are initially measured at fair 
value. Transaction costs are included as part of the 
initial measurement, except for financial assets at 
fair value through profit or loss. Such assets are 
subsequently measured at either amortised cost 
or fair value depending on their classification. 
Classification is determined based on both the 
business model within which such assets are held 
and the contractual cash flow characteristics of the 
financial asset unless, an accounting mismatch is 
being avoided.

Financial assets are derecognised when the 
rights to receive cash flows have expired or have 
been transferred and the consolidated entity has 
transferred substantially all the risks and rewards of 
ownership. When there is no reasonable expectation 
of recovering part or all of a financial asset, its 
carrying value is written off.

Financial assets at amortised cost

A financial asset is measured at amortised cost only 
if both of the following conditions are met: (i) it is 
held within a business model whose objective is 
to hold assets in order to collect contractual cash 
flows; and (ii) the contractual terms of the financial 
asset represent contractual cash flows that are solely 
payments of principal and interest.

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.

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:

Leasehold improvements

Computer equipment

Computer platform

3 years

3-5 years

2-3 years

The residual values, useful lives and depreciation 
methods are reviewed, and adjusted if appropriate, 
at each reporting date.

Leasehold improvements are depreciated over the 
unexpired period of the lease or the estimated 
useful life of the assets, whichever is shorter.

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.

Right-of-use assets
A right-of-use asset is recognised 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 consolidated entity has elected not to recognise 
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.

Intangible assets
Intangible assets acquired are initially recognised at 
cost. Finite life intangible assets are subsequently 
measured at cost less amortisation and any 
impairment. The gains or losses recognised in profit 
or loss arising from the derecognition of intangible 
assets are measured as the difference between net 
disposal proceeds and the carrying amount of the 
intangible asset. The method and useful lives of 
finite life intangible assets are reviewed annually. 
Changes in the expected pattern of consumption 
or useful life are accounted for prospectively by 
changing the amortisation method or period.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
Trade and other payables 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 amounts are unsecured and are usually paid 
within 30 days of recognition.

Contract liabilities
Contract liabilities represent the consolidated 
entity’s obligation to transfer goods or services to 
a customer and are recognised when a customer 
pays consideration, or when the consolidated entity 
recognises a receivable to reflect its unconditional 
right to consideration (whichever is earlier) before 
the consolidated entity has transferred the goods or 
services to the customer.

Lease liabilities
A lease liability is recognised at the commencement 
date of a lease. The lease liability is initially 
recognised 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.

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.

Finance costs
Finance costs are expensed in the period in which 
they are incurred.

Capitalised development costs
Expenditure on research activities is recognised 
as an expense in the period in which it is incurred. 
Expenditure relating to an internally-generated 
intangible asset arising from development is 
capitalised when: it is probable that the project 
will be a success considering its commercial and 
technical feasibility; the consolidated entity is able 
to use or sell the asset; the consolidated entity  
has sufficient resources and intent to complete  
the internal development; and its costs can be 
measured reliably.

The amount initially recognised for internally-
generated intangible assets is the sum of the 
expenditure incurred from the date when the 
intangible asset first meets the recognition criteria 
listed above. Where no internally-generated 
intangible asset can be recognised, development 
expenditure is recognised in profit or loss in the 
period in which it is incurred. Subsequent to initial 
recognition, internally-generated intangible assets 
are reported at cost less accumulated amortisation 
and accumulated impairment losses on the 
same basis as intangible assets that are acquired 
separately.

Capitalised development costs are amortised on a 
straight-line basis over the period of their expected 
benefit, being their finite useful lives of 5 years.

Patents

Significant costs associated with patents are 
deferred and amortised on a straight-line basis over 
the period of their expected benefit, being their 
finite useful lives of 5 years.

Information systems

Significant costs associated with information systems 
are deferred and amortised on a straight-line basis 
over the period of their expected benefit, being 
their finite life of 5 years.

Impairment of non-financial assets
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 
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 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 cash-generating unit.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisions
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 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 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.

Employee benefits
Short-term employee benefits

Liabilities for wages and salaries, including non-
monetary benefits, annual leave and long service 
leave expected to be settled wholly 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

The liability for annual leave and long service leave 
not expected to be settled within 12 months of the 
reporting date is measured as the 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. Expected future 
payments are discounted using market yields at the 
reporting date on high-quality corporate bonds with 
terms to maturity and currency that match, as closely 
as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution 
superannuation plans are expensed in the period in 
which they are incurred.

Share-based payments

Equity-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 rendering of services.

The cost of equity-settled transactions is measured 
at fair value on grant date. Fair value is determined 
using either the Binomial, Black-Scholes or Monte 
Carlo option pricing model that takes into account 
the exercise price, the term of the option, the 
impact of dilution, the share price at grant date and 
expected price volatility of the underlying share, the 
expected dividend yield and the risk free interest 
rate for the term of the option, together with non-
vesting conditions that do not determine whether 
the consolidated entity receives the services that 
entitle the employees to receive payment.

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 
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 
periods.

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 
satisfied.

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 
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 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 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 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.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 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 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.

Commitments and contingencies are disclosed net 
of the amount of GST recoverable from, or payable 
to, the tax authority.

Comparatives
Comparatives in the financial statements have been 
realigned to the current year presentation. There 
was no impact on the results of operations for the 
year.

New Accounting Standards and 
Interpretations not yet mandatory or 
early adopted
Australian Accounting Standards and Interpretations 
that have recently been issued or amended but are 
not yet mandatory, have not been early adopted 
by the consolidated entity for the annual reporting 
period ended 30 June 2021. The adoption of these 
Accounting Standards and Interpretations is not 
expected to have any significant impact on the 
consolidated entity’s financial statements.

Fair value measurement
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 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 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 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.

Issued capital
Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue 
of new shares or options are shown in equity as a 
deduction, net of tax, from the proceeds.

Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing 
the profit attributable to the owners of Firstwave 
Cloud Technology 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 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 additional ordinary shares that 
would have been outstanding assuming conversion 
of all dilutive potential ordinary shares.

3 6

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 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 assumptions on historical experience 
and on various other factors, including expectations 
of future events, management 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 to the carrying 
amounts of assets and liabilities (refer to the 
respective notes) within the next financial year are 
discussed below.

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the 
impacts that the Coronavirus (COVID-19) pandemic 
has had, or may have, on the consolidated entity 
based on known information. This consideration 
extends to the nature of the products and services 
offered, customers, supply chain, staffing and 
geographic regions in which the consolidated entity 
operates. The potential impact has been detailed in 
specific notes elsewhere in the report.

Share-based payment transactions

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 either the Binomial or Black-Scholes model 
taking into account the terms and conditions upon 
which the instruments were granted. The accounting 
estimates and assumptions relating to equity-settled 
share-based payments would have no impact on the 
carrying amounts of assets and liabilities within the 
next annual reporting period but may impact profit 
or loss and equity. Refer to note 35 for information 
regarding key assumptions.

Allowance for expected credit losses

The allowance for expected credit losses assessment 
requires a degree of estimation and judgement. It is 
based on the lifetime expected credit loss, grouped 
based on days overdue, and makes assumptions 
to allocate an overall expected credit loss rate for 
each group. These assumptions include recent sales 
experience, historical collection rates, the impact of 
the Coronavirus (COVID-19) pandemic and forward-
looking information that is available. The allowance 
for expected credit losses, as disclosed in note 9, is 
calculated based on the information available at the 
time of preparation. The actual credit losses in future 
years may be higher or lower.

Capitalised development costs

Distinguishing the research and development phases 
of a new customised product and determining 
whether the recognition requirements for the 
capitalisation of development costs are met requires 
judgement. After capitalisation, management 
monitors whether the recognition requirements 
continue to be met and whether there are any 
indicators that capitalised costs may be impaired.

Estimation of useful lives of assets

The consolidated entity determines the estimated 
useful lives and related depreciation and 
amortisation charges for its property, plant and 
equipment and finite life intangible assets. The 
useful lives could change significantly as a result 
of technical innovations or some other event. The 
depreciation and amortisation charge will increase 
where the useful lives are less than the previously 
estimated lives, or technically obsolete or non-
strategic assets that have been abandoned or sold 
will be written off or written down.

Impairment of non-financial assets

The consolidated entity assesses impairment of non-
financial assets at each reporting date by evaluating 
conditions specific to the consolidated entity and 
to the particular asset that may lead to impairment. 
If an impairment trigger exists, the recoverable 
amount of the asset is determined. This involves 
fair value less costs of disposal which incorporate a 
number of key estimates and assumptions including 
the market capitalisation of the company.

3 73 7

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax

The consolidated entity is subject to income taxes 
in the jurisdictions in which it operates. Significant 
judgement is required in determining the provision 
for income tax. There are many transactions and 
calculations undertaken during the ordinary course 
of business for which the ultimate tax determination 
is uncertain. The consolidated entity recognises 
liabilities for anticipated tax audit issues based on 
the consolidated entity’s current understanding of 
the tax law. Where the final tax outcome of these 
matters is different from the carrying amounts, such 
differences will impact the current and deferred tax 
provisions in the period in which such determination 
is made.

Lease term

The lease term is a significant component in the 
measurement of both the right-of-use asset and 
lease liability. Judgement is exercised in determining 
whether there is reasonable certainty that an option 
to extend the lease or purchase the underlying asset 
will be exercised, or an option to terminate the lease 
will not be exercised, when ascertaining the periods 
to be included in the lease term. In determining the 
lease term, all facts and circumstances that create 
an economical incentive to exercise an extension 
option, or not to exercise a termination option, 
are considered at the lease commencement date. 
Factors considered may include the importance of 
the asset to the consolidated entity’s operations; 
comparison of terms and conditions to prevailing 
market rates; incurrence of significant penalties; 
existence of significant leasehold improvements; 
and the costs and disruption to replace the asset. 
The consolidated entity reassesses whether it 
is reasonably certain to exercise an extension 
option, or not exercise a termination option, if 
there is a significant event or significant change in 
circumstances.

Note 3. Operating segments

Identification of reportable operating 
segments

The consolidated entity’s operating segments are 
based on the internal reports that are reviewed and 
used by the Chief Executive Officer and the Board 
of Directors (being the Chief Operating Decision 
Makers (‘CODM’)) in assessing performance and in 
determining the allocation of resources.

The CODM reviews segment revenue and 
consolidated adjusted EBITDA (earnings before 
interest, tax, depreciation and amortisation, 
excluding non-cash share-based payments 
expenses). The accounting policies adopted for 
internal reporting to the CODM are consistent with 
those adopted in the financial statements. The 
information reported to the CODM is on a monthly 
basis.

The CODM does not review segment assets and 
liabilities.

Types of products and services

The consolidated entity is organised into two 
operating segments as follows:

Australia

International

A geographical segment to 
identify development and sale 
of internet security software in 
the domestic market.

A geographical segment to 
identify development and sale 
of internet security software in 
the international market.

Major customers

During the year ended 30 June 2021, there was one 
major external customer (2020: one customer) where 
revenue exceeded 10% of the consolidated revenue. 
Total revenue from the customer for the year ended 
30 June 2021 amounted to $6,487,157 (2020: 
$7,725,225).

3 8

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating segment information

Consolidated - 2021

Revenue

Australia 
$

International 
$

Total 
$

Sales to external customers

6,728,796

1,246,386

7,975,182

Interest income

Total revenue

Adjusted EBITDA

Depreciation and amortisation

Interest income

Finance costs

Share-based payments expenses

Loss before income tax expense

Income tax expense

Loss after income tax expense

Consolidated - 2020

Revenue

Sales to external customers

Interest income

Total revenue

Adjusted EBITDA

Depreciation and amortisation

Interest income

Finance costs

Share-based payments expenses

Loss before income tax expense

Income tax expense

Loss after income tax expense

91,660

-

91,660

6,820,456

1,246,386

8,066,842

(5,102,956)

(2,668,759)

91,660

(53,151)

(3,078,902)

(10,812,108)

-

(10,812,108)

Australia 
$

International 
$

Total 
$

7,866,679

48,761

7,915,440

386,201

8,252,880

-

386,201

48,761

8,301,641

(9,320,735)

(2,246,093)

48,761

(125,370)

(2,134,044)

(13,777,481)

-

(13,777,481)

3 93 9

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 4. Revenue from contracts with customers
Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

Recurring revenue (over a period of time)

Non-recurring revenue (at a point in time)

Total revenue

Revenue from external customers by geographic regions is set out in note 3.

Note 5. Other income

Research and development grant income*

Other income**

Other income

Consolidated

2021  
$

2020 
$

7,595,067 

380,115 

7,446,829 

806,051 

7,975,182 

8,252,880 

Consolidated

2021  
$

2020 
$

2,239,577 

187,908 

789,920 

382,645 

2,427,485 

1,172,565 

* The Research and Development (R&D) tax incentive of $2,061,928 relating to FY20 was recognised as income on its receipt in January 2021 
(i.e., FY21). With the experience that the consolidated entity has developed in estimating R&D returns and the fact that an R&D rebate has 
been granted consistently over several years, the consolidated entity will recognise R&D income in FY21 on an accrual basis. Therefore, the 
financial results for FY21 include both R&D income from the prior period of $2,061,928 and FY21 accrued income estimated at $1,275,017. 
Total R&D income recognised in FY21 was $2,239,577, which is less than the total of $3,336,945 referenced above due to the work 
undertaken to earn this R&D grant being capitalised, and the majority of the funds, therefore, being recognised in the statement of financial 
position. There are no unfulfilled conditions or other contingencies attached to the grant.

** Includes Australian Government grant of $Nil (2020: $142,446) towards cash flow boost and other COVID-19 incentives, $8,696 (2020: 
$9,641) Singapore Government job support grant and $100,000 (2020: $110,000) Export Market Development Grant (EMDG).

4 0

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 6. Expenses

Loss before income tax includes the following specific expenses:

Cost of sales

Cost of licenses

Depreciation

Leasehold improvements

Computer equipment

Computer platform

Right-of-use assets

Total depreciation

Amortisation

Capitalised development costs

Patents

Total amortisation

Total depreciation and amortisation

Finance costs

Consolidated

2021  
$

2020 
$

3,672,032 

3,770,999 

122,758 

47,013 

2,757 

369,075 

129,503 

49,817 

2,778 

454,236 

541,603 

636,334 

2,113,634 

1,577,645 

13,522 

32,114 

2,127,156 

1,609,759 

2,668,759 

2,246,093 

Interest and finance charges paid/payable on lease liabilities

53,151 

125,370 

Net foreign exchange variance

Net foreign exchange variance

Employee benefit expenses

Employee salaries and other benefits*

Defined contribution superannuation expense

Share-based payments expenses

Total employee benefit expenses

(12,122)

120,259 

11,621,907 

12,192,213 

700,747 

3,078,902 

961,967 

2,134,044 

15,401,556 

15,288,224 

* Includes a salary sacrifice amount of $1,160,422 (2020: $512,467). Share rights have been granted for cash forgone.

4 14 1

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 7. Income tax expense

Consolidated

2021  
$

2020 
$

Numerical reconciliation of income tax expense and tax  
at the statutory rate

Loss before income tax expense

(10,812,108)

(13,777,481)

Tax at the statutory tax rate of 26% (2020: 27.5%)

(2,811,148)

(3,788,807)

Tax effect amounts which are not deductible/(taxable)  
in calculating taxable income:

Amortisation of intangibles

Entertainment expenses

Non-deductible research and development incentive expenditure

Development costs

Deferred income

Tax losses not recognised (including reversal of previously  
recognised tax losses)

Current year temporary differences not recognised

534,873 

1,429 

762,079 

(1,083,272)

(626,490)

415,901 

3,059 

1,629,390 

(988,050)

(217,228)

(3,222,529)

(2,945,735)

2,685,819 

536,710 

2,590,202 

355,533 

Income tax expense

-  

-  

Tax losses not recognised

Unused tax losses for which no deferred tax asset has been 
recognised

Consolidated

2021  
$

2020 
$

38,618,225 

29,455,702 

Potential tax benefit at statutory tax rates

10,040,739 

8,100,318 

The above potential tax benefit for tax losses has not been recognised in the statement of financial position. 
These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, 
the same business test is passed.

Note 8. Cash and cash equivalents

Cash at bank

9,961,866 

15,281,338 

Consolidated

2021  
$

2020 
$

4 2

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 9. Trade and other receivables

Trade receivables

Less: Allowance for expected credit losses

Research and development tax incentive receivable

Other receivables

Receivable from key management personnel

GST receivable

Consolidated

2021  
$

2020 
$

1,553,923 

(210,224)

1,343,699 

1,275,017 

86,122 

-  

139,115 

450,055 

(95,934)

354,121 

-  

59,290 

221,520 

141,131 

2,843,953 

776,062 

Allowance for expected credit losses

The consolidated entity has recognised a loss of $156,741 (2020: $46,126) in profit or loss in respect of 
impairment of receivables for the year ended 30 June 2021.

The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Consolidated

Not overdue

0 to 3 months overdue

3 to 6 months overdue

6 to 12 months overdue

Over 12 months overdue

Expected credit loss 
rate

Carrying amount

Allowance for 
expected credit losses

2021 
%

2020 
%

2021 
$

2020 
$

2021 
$

2020 
$

-

3.63% 

14.28% 

18.59% 

89.12% 

-

3.00% 

15.00% 

30.00% 

764,652

327,670

148,980

160,036

100.00% 

48,534

255,987

-

69,387

26,914

11,360

55,112

31,295

11,894

21,274

29,751

43,254

104,051

-

2,082

4,037

3,408

55,112

31,295

Special provision

100.00% 

100.00% 

104,051

1,553,923

450,055

210,224

95,934

The consolidated entity has increased its monitoring of debt recovery as there is an increased probability 
of customers delaying payment or being unable to pay, due to the Coronavirus (COVID-19) pandemic. As a 
result, the calculation of expected credit losses has been revised as at 30 June 2021.

4 34 3

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F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Movements in the allowance for expected credit losses are as follows:

Opening balance

Additional provisions recognised

Receivables written off during the year as uncollectable

Closing balance

Note 10. Other assets

Current assets

Prepayments

Security deposits

Non-current assets

Prepayments

Consolidated

2021 
$

2020 
$

95,934 

156,741 

(42,451)

210,224 

49,808 

46,126 

-  

95,934 

Consolidated

2021 
$

2020 
$

1,106,520 

1,132,099 

33,181 

-  

1,139,701 

1,132,099 

-  

192,016 

1,139,701 

1,324,115 

4 4

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 11. Property, plant and equipment

Leasehold improvements - at cost

Less: Accumulated depreciation

Computer equipment - at cost

Less: Accumulated depreciation

Computer platform - at cost

Less: Accumulated depreciation

Consolidated

2021 
$

2020 
$

680,827 

(612,020)

68,807 

505,529 

(451,247)

54,282 

245,475 

(242,358)

3,117 

647,510 

(489,262)

158,248 

470,579 

(404,234)

66,345 

243,936 

(239,601)

4,335 

126,206 

228,928 

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year 
are set out below:

Leasehold 
improvements 
$

Computer 
equipment 
$

Computer 
platform 
$

Consolidated

Balance at 1 July 2019

Additions

Transfer to right-of-use assets

Depreciation expense

Balance at 30 June 2020

Additions

Depreciation expense

Balance at 30 June 2021

Total 
$

427,494

42,047

(58,515)

5,795

1,318

-

(2,778)

(182,098)

4,335

1,539

(2,757)

228,928

69,806

(172,528)

3,117

126,206

346,266

-

(58,515)

(129,503)

158,248

33,317

(122,758)

68,807

75,433

40,729

-

(49,817)

66,345

34,950

(47,013)

54,282

4 54 5

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 12. Right-of-use assets

Non-current assets

Right-of-use assets

Less: Accumulated depreciation

Consolidated

2021  
$

2020 
$

1,268,277 

(646,128)

836,401 

(454,236)

622,149 

382,165

The consolidated entity has leased office premises under operating leases expiring in two to four years, with in 
certain instances options to extend. The leases have various escalation clauses. On renewal, the terms of the 
leases are renegotiated.

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year 
are set out below:

Consolidated

Balance at 1 July 2019

Adoption of AASB 16 on 1 July 2019

Transfer from property, plant and equipment

Exchange differences

Depreciation expense

Balance at 30 June 2020

Additions

Exchange differences

Other changes - adjustments to lease make-good provisions

Depreciation expense

Balance at 30 June 2021

Office 
premises 
$

-

779,346

58,515

(1,460)

(454,236)

382,165

663,016

(6,308)

(47,649)

(369,075)

622,149

For other AASB 16 lease-related disclosures refer to the following:

 — note 6 for details of interest on lease liabilities and other lease expenses;

 — note 18 and note 33 for details of lease liabilities at the beginning and end of the reporting period;

 — note 24 for the maturity analysis of lease liabilities; and

 — statement of cash flows for repayment of lease liabilities.

4 6

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 13. Intangibles

Capitalised development costs - at cost

Less: Accumulated amortisation

Patents - at cost

Less: Accumulated amortisation

Information systems - at cost

Consolidated

2021  
$

2020 
$

21,170,160 

16,231,139 

(11,824,093)

(9,710,459)

9,346,067 

6,520,680 

202,479 

(135,241)

67,238 

178,558 

(121,719)

56,839 

90,000 

90,000 

9,503,305 

6,667,519 

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year 
are set out below:

Capitalised 
development  
$

Patents  
$

Information 
systems  
$

Consolidated

Balance at 1 July 2019

Additions

Transfers in/(out)

Amortisation expense

Balance at 30 June 2020

Additions

Amortisation expense

Balance at 30 June 2021

Total  
$

4,568,979

3,708,299

-

51,645

37,308

314,069

-

-

(224,069)

(32,114)

56,839

23,921

(13,522)

67,238

-

(1,609,759)

90,000

-

-

6,667,519

4,962,942

(2,127,156)

90,000

9,503,305

4,203,265

3,670,991

224,069

(1,577,645)

6,520,680

4,939,021

(2,113,634)

9,346,067

4 74 7

C
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A

I

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A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 14. Trade and other payables

Current liabilities

Trade payables

Accrued expenses

Other payables

Refer to note 24 for further information on financial instruments.

Note 15. Contract liabilities

Current liabilities

Contract liabilities

Non-current liabilities

Contract liabilities

Reconciliation

Consolidated

2021  
$

2020 
$

1,028,096 

3,020,645 

210,247 

643,798 

2,424,983 

-  

4,258,988 

3,068,781 

Consolidated

2021  
$

2020 
$

901,819 

3,046,578 

121,231 

592,812 

1,023,050 

3,639,390

The contract liabilities relate to sales of term-based contracts that have been prepaid and hence the entity is 
obligated to provide the services agreed under the contract. Reconciliation of the contract liabilities (current 
and non-current) during the current financial year are set out below:

Opening balance

Payments received in advance

Transfer to revenue - included in the opening balance

Transfer to revenue - other balances

Closing balance

Consolidated

2021  
$

2020 
$

3,639,390 

4,245,492 

1,639,893 

6,079,420 

(3,309,329)

(3,315,365)

(946,904)

(3,370,157)

1,023,050 

3,639,390 

4 8

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 16. Employee benefits

Current liabilities

Annual leave

Long service leave

Non-current liabilities

Long service leave

Note 17. Provisions

Non-current liabilities

Lease make-good

Lease make-good

Consolidated

2021  
$

2020 
$

1,020,264 

246,275 

773,492 

202,917 

1,266,539 

976,409 

155,445 

116,172 

1,421,984 

1,092,581 

Consolidated

2021  
$

2020 
$

105,000 

152,649 

The provision represents the present value of the estimated costs to make good the premises leased by the 
consolidated entity at the end of the respective lease terms.

Movements in provisions

Movements in each class of provision during the current financial year, other than employee benefits, are set 
out below:

Consolidated - 2021

Carrying amount at the start of the year

Unused amounts reversed

Carrying amount at the end of the year

Lease 
make-good 
$

152,649

(47,649)

105,000

4 94 9

C
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A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 18. Lease liabilities

Current liabilities

Lease liability

Non-current liabilities

Lease liability

Note 19. Other

Current liabilities

Consolidated

2021  
$

2020 
$

176,758 

464,271 

456,230 

-  

632,988 

464,271 

Consolidated

2021  
$

2020 
$

Deferred research and development income

832,128 

429,264 

Non-current liabilities

Deferred research and development income

1,739,171 

1,044,667 

2,571,299 

1,473,931 

5 0

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 20. Borrowings
National Australia Bank (‘NAB’) lease facility

The consolidated entity has an asset leasing facility for $300,000 with NAB. The facility is available on a 
revolving basis with repayment terms ranging from 1 to 3 years from the draw-down date.

Financing arrangements

Unrestricted access was available at the reporting date to the following lines of credit:

Total facilities

NAB lease facility

Corporate credit card facility

AMEX credit card facility

Used at the reporting date

NAB lease facility

Corporate credit card facility

AMEX credit card facility

Unused at the reporting date

NAB lease facility

Corporate credit card facility

AMEX credit card facility

Consolidated

2021  
$

2020 
$

300,000 

70,000 

208,000 

578,000 

-  

-  

207,876 

207,876 

300,000 

70,000 

124 

370,124 

300,000 

70,000 

-  

370,000 

-  

-  

-  

-  

300,000 

70,000 

-  

370,000 

5 15 1

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 21. Issued capital

Consolidated

2021 
Shares

2020 
Shares

2021 
$

2020 
$

Ordinary shares - fully paid

747,390,339

647,625,092

63,760,506 

54,667,525 

Movements in ordinary share capital

Details

Balance

Issue of shares*

Issue of shares*

Issue of shares*

Issue of shares*

Issue of shares*

Share issue transaction costs, net of tax

Options issued to sub-underwriters in lieu  
of transaction costs

Balance

Issue of shares**

Issue of shares**

Issue of shares**

Issue of shares***

Issue of shares**

Issue of shares**

Issue of shares***

Issue of shares**

Issue of shares*

Issue of shares**

Issue of shares***

Issue of shares*

Issue of shares*

Issue of shares***

Issue of shares**

Date

Shares

$

1 July 2019

280,805,705

36,506,677

28 October 2019

4 November 2019

29 May 2020

29 May 2020

16 June 2020

34,683,567

547,357

78,759,156

52,475,956

200,353,351

-

-

6,589,878

104,000

3,544,162

2,361,418

9,015,901

(1,624,511)

(1,830,000)

30 June 2020

647,625,092

54,667,525

17 September 2020

15 October 2020

23 November 2020

25 November 2020

24 December 2020

10 February 2021

10 February 2021

11 March 2021

6 May 2021

6 May 2021

6 May 2021

3 June 2021

7 June 2021

7 June 2021

30 June 2021

989,650

4,900,767

4,110,242

2,939,185

668,318

377,368

2,894,149

3,094,568

109,851

543,985

456,237

308,614

74,183

41,888

303,886

343,497

66,666,667

6,000,000

333,654

1,867,586

4,413,430

4,911,158

1,361,445

237,060

37,036

195,701

414,862

442,004

142,952

26,314

Share issue transaction costs, net of tax

-

(348,029)

Balance

30 June 2021

747,390,339

63,760,506

* Share placement

** Options exercised

*** Service and restricted rights exercised

5 2

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
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P
O
R
A
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E

D

I

R
E
C
T
O
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Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares

Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to 
shareholders should the company be wound up, in proportions that consider both the number of shares held 
and the extent to which those shares are paid up. 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.

Share buy-back

There is no current on-market share buy-back.

Capital risk management

The consolidated entity’s objectives when managing capital are to safeguard its ability to continue as a going 
concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an 
optimum capital structure to reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt 
is calculated as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends 
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The consolidated entity will raise capital to support its growth strategy and to fund value adding projects that 
it deems necessary to maintain and enhance shareholder value. Any funds raised will be utilized in adherence 
with the governance principles underlying the consolidated entity’s capital management policy under the 
authority of the board.

The capital risk management policy remains unchanged from the 30 June 2020 Annual Report.

Note 22. Reserves

Foreign currency reserve

Share-based payments reserve

Foreign currency reserve

Consolidated

2021  
$

2020 
$

(2,165)

(6,345)

7,613,365 

6,392,924 

7,611,200 

6,386,579 

The reserve is used to recognise exchange differences arising from the translation of the financial statements 
of foreign operations to Australian dollars.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and directors as part of 
their remuneration, and other parties as part of their compensation for services.

5 35 3

C
H
A

I

R
M
A
N

’

S

L
E
T
T
E
R

D

I

R
E
C
T
O
R
S

’

R
E
P
O
R
T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

T

O

R

Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Consolidated

Balance at 1 July 2019

Foreign currency translation

Share-based payment expense

Transfer to retained earnings

Fair value of options issued to sub-underwriters

Balance at 30 June 2020

Foreign currency translation

Share-based payment expense

Transfer to issued capital

Transfer to retained earnings

Foreign 
currency  
reserve  
$

Share-based  
payments  
$

Total  
$

(4,526)

(1,819)

-

-

-

(6,345)

4,180

-

-

-

2,741,018

2,736,492

-

2,134,044

(312,138)

1,830,000

(1,819)

2,134,044

(312,138)

1,830,000

6,392,924

6,386,579

-

4,180

3,078,902

3,078,902

(1,848,563)

(1,848,563)

(9,898)

(9,898)

Balance at 30 June 2021

(2,165)

7,613,365

7,611,200

Note 23. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.

Note 24. Financial instruments

Financial risk management objectives
The consolidated entity’s activities expose it to a variety of financial risks: market 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 consolidated 
entity. The consolidated entity uses different methods to measure different types of risk to which it is exposed. 
These methods include sensitivity analysis in the case of interest rate risk and foreign exchange risk and 
ageing analysis for credit risk.

Risk management is carried out by senior finance executives (‘finance’) 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, controls and risk limits. Finance identifies, evaluates and 
hedges financial risks within the consolidated entity’s operating units. Finance reports to the Board on a 
monthly basis.

Market risk
Foreign currency risk

The consolidated entity is not exposed to any significant foreign currency risk.

Price risk

The consolidated entity is not exposed to any significant price risk.

Interest rate risk

The consolidated entity’s main interest rate risk arises from cash at bank. Bank balance at variable rates expose 
the consolidated entity to interest rate risk.

5 4

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I

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’

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E
P
O
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T

F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
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P
O
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E

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
An official increase/decrease in interest rates of 50 (2020:50) basis points would have a favourable/adverse 
effect on the loss before tax of $49,809 (2020: $76,407) per annum. The percentage change is based on the 
expected volatility of interest rates using market data and analysts’ forecasts.

Credit risk
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 consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses 
to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These 
provisions are considered representative across all customers of the consolidated entity based on recent sales 
experience, historical collection rates and forward-looking information that is available. As disclosed in note 9, 
due to the Coronavirus (COVID-19) pandemic, the calculation of expected credit losses has been revised as at 
30 June 2021.

The consolidated entity has a credit risk exposure with one major customer, which as at 30 June 2021 owed 
the consolidated entity $433,717 (28% of trade receivables) (2020: $187,592 (43% of trade receivables)). 
Despite the impact that the Coronavirus (COVID-19) pandemic has had on this major Australian retailer, this 
balance was within its terms of trade and no impairment was made as at 30 June 2021 and 30 June 2020. 
There are no guarantees against this receivable, but management closely monitors the receivable balance on a 
monthly basis and is in regular contact with this customer to mitigate risk.

Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of 
this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure 
to make contractual payments for a period greater than 1 year.

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:

NAB lease facility

Corporate credit card facility

AMEX credit card facility

Consolidated

2021  
$

2020 
$

300,000 

70,000 

124 

300,000 

70,000 

-  

370,124 

370,000 

5 55 5

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’

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P
O
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F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
R
M
A
T

I

O
N

C
O
R
P
O
R
A
T
E

D

I

R
E
C
T
O
R
Y

C

H

A

I

R

M

A

N

’

S

L

E

T

T

E

R

D

I

R

E

C

T

O

R

S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

R

P

O

R

A

T

E

D

I

R

E

C

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O

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining contractual maturities

The following tables detail the consolidated entity’s remaining contractual maturity for its financial instrument 
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based 
on the earliest date on which the financial liabilities are required to be paid. The tables include both interest 
and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ 
from their carrying amount in the statement of financial position.

Weighted 
average 
interest 
rate  
%

1 year or 
less 
$

Between 
1 and 2 
years 
$

Between 
2 and 5 
years 
$

Over 5 
years 
$

Remaining 
contractual 
maturities 
$

1,028,096

210,247

-

-

-

-

Consolidated - 2021

Non-derivatives

Non-interest bearing

Trade payables

Other payables

Interest-bearing - 
fixed rate

Lease liability

Consolidated - 2020

Non-derivatives

Non-interest bearing

Trade payables

Interest-bearing - 
fixed rate

Lease liability

Total non-derivatives

1,435,394

3.50% 

197,051

217,236

217,236

270,585

270,585

Weighted 
average 
interest 
rate  
%

1 year or 
less 
$

Between 
1 and 2 
years 
$

Between 
2 and 5 
years 
$

Over 5 
years 
$

643,798

5.00% 

537,319

-

-

-

-

-

-

Total non-derivatives

1,181,117

-

-

-

-

-

-

-

1,028,096

210,247

684,872

1,923,215

Remaining 
contractual 
maturities 
$

643,798

537,319

1,181,117

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually 
disclosed above.

Note 25. Fair value measurement
The carrying amounts of trade and other receivables and trade and other payable approximate their fair values 
due to their short term nature. The fair value of financial liabilities is estimated by discounting the remaining 
contractual maturities at the current market interest rate that is available for similar financial liabilities.

5 6

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A
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’

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L
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D

I

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E
C
T
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’

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P
O
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F

I

N
A
N
C

I

A
L

R
E
P
O
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S
H
A
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H
O
L
D
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I

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F
O
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M
A
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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 26. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Grant Thornton, the 
auditor of the company:

Audit services - Grant Thornton

Audit or review of the financial statements

Other services - Grant Thornton

Taxation services

Consolidated

2021  
$

2020 
$

131,480 

115,000 

22,798 

12,730 

154,278 

127,730 

Note 27. Contingent liabilities
The consolidated entity has given bank guarantees as at 30 June 2021 of $133,776 (2020: $133,776) to various 
landlords.

Note 28. Commitments
The consolidated entity had no commitments as at 30 June 2021 and 30 June 2020.

Note 29. Key management personnel disclosures
Compensation

The aggregate compensation made to directors and other members of key management personnel of the 
consolidated entity is set out below:

Short-term employee benefits

Post-employment benefits

Long-term benefits

Termination benefits

Share-based payments

Consolidated

2021  
$

2020 
$

1,247,138 

1,327,020 

77,683 

15,461 

-  

121,547 

9,251 

120,368 

1,529,896 

1,152,218 

2,870,178 

2,730,404 

5 75 7

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I

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P
O
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H
A
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H
O
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D
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R

I

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F
O
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M
A
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I

O
N

C
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O
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A
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D

I

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Y

C

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’

S

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D

I

R

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C

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’

R

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P

O

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T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

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M

A

T

I

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C

O

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P

O

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E

D

I

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O

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Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 30. 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:

Name

First Wave Technology Pty Ltd

Firstwave Global Pty Ltd

Principal place of business / 
Country of incorporation

Australia

Australia

Firstwave Cloud Technology Inc.

The United States of America

Firstwave Cloud Technology (Singapore) Ltd

Firstwave Share Rights Pty Ltd

Singapore

Australia

Ownership interest

2021 
%

2020 
%

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

Note 31. Related party transactions
Parent entity

Firstwave Cloud Technology Limited is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 30.

Key management personnel

Disclosures relating to key management personnel are set out in note 29 and the remuneration report 
included in the directors’ report.

Transactions with related parties

The following transactions occurred with related parties:

Consolidated

2021  
$

2020 
$

Sale of goods and services:

Sale of services to a director related entity of Simon Moore

-  

1,020 

Other income:

Interest received from key management personnel

1,662 

9,972 

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current  
and previous reporting date.

Loans to/from related parties

The following balances are outstanding at the reporting date in relation to loans with related parties:

Current receivables:

Loan to key management personnel*

-  

221,520 

* Unsecured loan provided to key management personnel. Interest was charged on outstanding balance at 4.5% per annum.

Consolidated

2021  
$

2020 
$

5 8

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’

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D

I

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’

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P
O
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F

I

N
A
N
C

I

A
L

R
E
P
O
R
T

S
H
A
R
E
H
O
L
D
E
R

I

N
F
O
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M
A
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I

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

Note 32. Parent entity information
Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Loss after income tax

Total comprehensive income

Statement of financial position

Total current assets

Total assets

Total current liabilities

Total liabilities

Equity

Issued capital

Share-based payments reserve

Accumulated losses

Total equity

Parent

2021  
$

2020 
$

(11,631,006)

(3,895,272)

(11,631,006)

(3,895,272)

Parent

2021  
$

2020 
$

678,019 

-  

49,473,554 

50,645,346 

145,792 

145,792 

-  

-  

63,760,506 

54,667,525 

7,613,365 

6,392,924 

(22,046,109)

(10,415,103)

49,327,762 

50,645,346 

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 30 June 2021 and 30 June 
2020.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 
June 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:

 — Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

 — Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt 

may be an indicator of an impairment of the investment.

5 95 9

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I

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A
N
C

I

A
L

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E
P
O
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S
H
A
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H
O
L
D
E
R

I

N
F
O
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M
A
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I

O
N

C
O
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P
O
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A
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D

I

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O
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Y

C

H

A

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A

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’

S

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T

E

R

D

I

R

E

C

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O

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S

’

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

R

E

P

O

R

T

S

H

A

R

E

H

O

L

D

E

R

I

N

F

O

R

M

A

T

I

O

N

C

O

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P

O

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Y

FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 33. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities

Loss after income tax expense for the year

(10,812,108)

(13,777,481)

Consolidated

2021  
$

2020 
$

Adjustments for:

Depreciation and amortisation

Share-based payments - employees

Other non-cash adjustments

Change in operating assets and liabilities:

Increase in trade and other receivables

Increase in contract assets

Decrease in prepayments

Decrease/(increase) in other operating assets

Increase in trade and other payables

Decrease in contract liabilities

Increase in employee benefits

Increase in other operating liabilities

2,668,759 

3,078,902 

(335,986)

2,246,093 

2,134,044 

-  

(1,014,393)

(100,045)

184,414 

(1,275,017)

1,191,111 

(2,616,340)

329,403 

654,627 

(20,474)

(452,652)

399,917 

273,765 

472,105 

(606,202)

163,995 

466,111 

Net cash used in operating activities

(8,046,673)

(8,700,779)

Non-cash investing and financing activities

Additions to the right-of-use assets

Shares issued for non-cash consideration

Fair value of options issued to sub underwriters due to share issue 
transaction cost 

Consolidated

2021  
$

663,016 

2,242,081 

2020 
$

779,346 

-  

-  

1,830,000 

2,905,097 

2,609,346 

6 0

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A

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D

I

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’

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O
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F

I

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A
N
C

I

A
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P
O
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S
H
A
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H
O
L
D
E
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I

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F
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A
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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in liabilities arising from financing activities

Consolidated

Balance at 1 July 2019

Adoption of AASB 16 on 1 July 2019

Net cash used in financing activities

Balance at 30 June 2020

Acquisition of leases

Net cash used in financing activities

Other changes

Balance at 30 June 2021

Note 34. Earnings per share

Loss after income tax attributable to the owners of  
Firstwave Cloud Technology Limited

Weighted average number of ordinary shares used  
in calculating basic earnings per share

Weighted average number of ordinary shares used  
in calculating diluted earnings per share

Basic earnings per share

Diluted earnings per share

Lease  
liability  
$

4,478

779,346

(319,553)

464,271

663,016

(499,220)

4,921

632,988

Consolidated

2021  
$

2020 
$

(10,812,108)

(13,777,481)

Number

Number

669,990,763

324,615,175

669,990,763

324,615,175

Cents

Cents

(1.61)

(1.61)

(4.24)

(4.24)

Options and rights have been excluded in the weighted average number of shares used to calculate diluted 
earnings per share as they were anti- dilutive.

6 16 1

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A
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I

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O
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H
A
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H
O
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D
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R

I

N
F
O
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A
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I

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N

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F

I

N

A

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I

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P

O

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S

H

A

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E

H

O

L

D

E

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N

F

O

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A

T

I

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 35. Share-based payments
The consolidated entity has a share option plan and a share rights plan to incentivise certain employees and 
key management personnel (‘KMP’). Shareholders approved the Rights Plan at an Extraordinary General 
Meeting held on 29 July 2020. During the year, the Board established a long-term incentive scheme (‘LTI’) 
under the company’s Share Rights Plan. Pursuant to the LTI, the Board will have the discretion to invite certain 
key executives to apply for Share Appreciation Rights, which have been designed to deliver long term variable 
remuneration opportunities for key executives, which have service and vesting conditions, that assist in 
aligning the interests of the executives, with shareholders of the company.

During the financial year no options and 4,308,845 share rights were granted (2020: 4,950,000 options and 
34,606,769 share rights). The share-based payment expense for the year was $3,078,902 (2020: $2,134,044), 
out of which $1,160,422 (2020: $512,467) was offset by the employees agreeing to salary sacrifice in lieu of 
service rights and hence saving the consolidated entity cash costs.

Movements in share awards during the year

The following table illustrates the number of awards and weighted average exercise prices (‘WAEP’) of, and 
movements in, share awards during the current and previous year:

Number  
30 June 2021

Number 
30 June 2020

WAEP 
30 June 2021

WAEP 
30 June 2020

Movement in share options  
including share rights

Balance at the beginning of the year

100,142,768

38,951,333

Options granted during the year

-

4,950,000

Share rights granted during the year

4,308,845

34,606,769

Options granted to sub-underwriters

-

30,000,000

Forfeited during the year

Exercised during the year

Expired during the year

(640,726)

(8,365,334)

(23,773,992)

(3,610,000)

-

-

Balance at the end of the year

76,426,895

100,142,768

$0.150 

$0.000

$0.000

$0.000

$0.000

$0.031 

$0.000

$0.400 

$0.430 

$0.000

$0.050 

$0.490 

$0.000

$0.000

40,281,036 options and 25,684,014 share rights were vested and exercisable as at 30 June 2021 (2020: 
22,452,664 options and 11,628,094 share rights).

The weighted average share price of the company during the financial year was $0.12 (2020: $0.14). 

The weighted average remaining contractual life of options and share rights outstanding at the end of the 
financial year was 5.80 years (2020: 6.45 years).

Share rights and restricted share rights

As noted above, executives and directors salary sacrificed their salaries and fees for service rights and 
restricted rights. In respect of the service rights – these rights vest on a quarterly basis at the end of each 
financial quarter. The service rights are subject to service conditions and there are no performance conditions. 
The exercise price of the service rights is $Nil as these rights have been granted in lieu of cash salary.

Restricted rights granted to Non-Executive Directors vest on grant date and are not forfeited on resignation. 
The sale of the rights is restricted whether or not the Non-Executive Directors continue as a director until the 
expiration of three years from the date of grant. As the Service Rights and Restricted Rights were acquired by 
Executives and Directors agreeing to forgo their salaries and fees, the maximum allowable life of 15 years was 
adopted. The share rights issued during the year will not expire until June 2035.

For the service rights and restricted service rights granted during the current financial year, the valuation 
model inputs used to determine their fair value at the grant date are as follows:

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant date

Expiry date

01/07/2020

01/01/2035

30/09/2020

31/12/2035

05/11/2020

05/11/2035

01/12/2020

01/12/2027

11/03/2021

30/06/2024

11/03/2021

30/06/2035

Share 
price at 
grant 
date

$0.107 

$0.145 

$0.135 

$0.140 

$0.120 

$0.120 

Exercise 
price

Expected 
volatility

Dividend 
yield

Risk-free 
interest 
rate

Fair value 
at grant 
date

%

87.20% 

87.20% 

87.20% 

74.00% 

87.20% 

87.20% 

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

%

0.10% 

0.10% 

0.10% 

0.07% 

0.10% 

0.10% 

-

-

-

-

-

-

$0.107 

$0.145 

$0.126 

$0.096 

$0.119 

$0.119 

Note 36. Events after the reporting period
The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and 
its impact on the consolidated entity, has been reflected in its published results to date. Whilst it would appear 
that control measures and related government policies have started to mitigate the risks caused by COVID-19, 
it is not possible at this time to state that the pandemic will not subsequently impact the consolidated entity’s 
operations going forward. The consolidated entity now has experience in the swift implementation of business 
continuation processes should future lockdowns of the population occur, and these processes continue to 
evolve to minimise any operational disruption. Management continues to monitor the situation both locally 
and internationally.

Neil Pollock, the Chief Executive Officer (‘CEO’) resigned on 8 July 2021 and John Grant, the Executive 
Chairman has assumed the role until a permanent CEO is appointed.

The remaining 15,288,373 sub-underwriter options from the May 2020 capital raise were exercised in July and 
August 2021, raising a further $764,419 to cash reserves.

No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may 
significantly affect the consolidated entity’s operations, the results of those operations, or the consolidated 
entity’s state of affairs in future financial years.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors’ declaration
30 June 2021

In the directors’ opinion:

 — 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;

 — the attached financial statements and notes comply with International Financial Reporting Standards as 

issued by the International Accounting Standards Board as described in note 1 to the financial statements;

 — the attached financial statements and notes give a true and fair view of the consolidated entity’s financial 

position as at 30 June 2021 and of its performance for the financial year ended on that date; and

 — there are reasonable grounds to believe that the company will be able to pay its debts as and when they 

become due and payable.

The directors have been given the declarations required by section 295A of the Corporations Act 2001.

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

John Grant 
Executive Director and Chairman 

Paul MacRae 
Director

28 September 2021 
Sydney 

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Independent auditor’s report to the members  
of Firstwave Cloud Technology Limited 

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTGrant Thornton Audit Pty Ltd ACN 130 913 594asubsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and donot obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not anAustralian related entity to Grant Thornton Australia Limited.Liability limited by a scheme approved under Professional Standards Legislation. www.grantthornton.com.auLevel 17, 383 Kent StreetSydney NSW 2000Correspondence to:Locked Bag Q800QVB Post OfficeSydney NSW 1230T+61 2 8297 2400F+61 2 9299 4445Einfo.nsw@au.gt.comWwww.grantthornton.com.auIndependent Auditor’s ReportTo the Members of Firstwave Cloud Technology LimitedReport on the audit of the financial reportOpinionWe have audited the financial report of Firstwave Cloud Technology Limited(the Company)and its subsidiaries (the Group),which comprises the consolidated statement of financial position as at 30 June 2021, the consolidatedstatement of profit or loss and other comprehensive income, consolidatedstatement of changes in equity and consolidatedstatement of cash flows for the yearthen ended, and notes to the consolidatedfinancial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Groupis in accordance with the Corporations Act 2001, including:agiving a true and fair view of the Group’s financial position as at 30 June 2021and of its performance for the year ended on that date; and bcomplying with Australian Accounting Standards and the Corporations Regulations 2001.Basis for opinionWe 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 Reportsection of our report. We are independent of the Groupin accordance with theauditorindependence requirements of the Corporations Act 2001andthe ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code ofEthics 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Key audit matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial 
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in 
forming our opinion thereon, and we do not provide a separate opinion on these matters. 

How our audit addressed the key audit matter

Our procedures included, amongst others:

 obtaining and reviewing management’s cash flow forecast

to assess whether current cash levels can sustain
operations for a period of at least 12 months from the date
of signing the financial statements;

 agreeing year end cash balances to third party independent
confirmations received to gain comfort around the opening
balances used in the cash flow forecast;

 assessing the Group’s current level of income and

expenditure against management’s forecast for consistency
of relationships and trends to the historical results, and
results since year end;

 performing sensitivity analysis on the significant inputs and
assumptions made by management in preparing its cash
flow forecast; and

 assessing the adequacy of the related disclosures within

the financial report.

Key audit matter

Going Concern (Note 1)

The Group made a loss of $10,812,108 and had net cash 
used in operating activities of $8,046,673 for the year ended 
30 June 2021.  Proceeds from the issue of shares and 
exercise of options totalled $7,180,138 during the year, and 
the Group had a cash balance of $9,961,866 as at 30 June 
2021. 

Given the level of losses and operating cash outflows, the
Group’s use of the going concern basis of accounting and the 
associated extent of uncertainty is a key audit matter due to 
the high level of judgement required in evaluating the Group’s 
assessment of going concern.

The Directors have determined that the use of the going 
concern basis of accounting is appropriate in preparing the 
financial report. Their assessment of going concern was 
based on cash flow projections.  The preparation of these 
projections incorporated a number of assumptions and 
judgments, and the Directors have concluded that the range of 
possible outcomes considered in arriving at this judgment 
provides support over the Group’s ability to continue as a 
going concern.

Research and Development tax incentive (Note 5 & Note 
9)

The Group receives a research and development (R&D) 
refundable tax offset from the Australian government which 
represents 43.5 cents in each dollar of eligible annual R&D 
expenditure, if its turnover is less than $20 million per annum. 

Our procedures included, amongst others:
 obtaining through discussions with management, an
understanding of the process to estimate the claim;

 utilising an internal R&D tax specialist to;

Registration of R&D Activities Application if files with 
AusIndustry in the following financial year and, based on this 
filing, the Group receives the incentive in cash. Management 
performed a detailed review of the Group’s total R&D 
expenditure to estimate the refundable tax offset receivable 
under the R&D tax incentive legislation.

This is a key audit matter due to the size of the accrual and 
the degree of judgement and interpretation of the R&D tax 
legislation required by management to assess the eligibility of 
the R&D expenditure under the scheme.

o review the expenditure methodology employed by

management for consistency with the R&D tax offset
rules; and

o consider the nature of the expenses against the eligibility
criteria of the R&D tax incentive scheme to form a view
about whether the expenses included in the estimate
meet the eligibility criteria;

 comparing the nature of the R&D expenditure included in

the current year estimate to the prior year claim;

 selecting a sample of R&D expenditure and agreeing to

supporting documentation to ensure appropriate
classification, validity of the claimed amount and eligibility
against the R&D tax incentive scheme criteria; and

 assessing the adequacy of the related disclosures within

the financial report.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Key audit matter

How our audit addressed the key audit matter

Capitalised product development costs (Note 13)

Capitalised product development costs had a net carrying 
value of $9,346,067 at 30 June 2021. 
During the year the Group capitalised $4,939,021 of project 
development costs. These intangible assets are being 
amortised over a 5 year period, and an amortisation expense 
of $2,113,634 has been included in the statement of profit or 
loss and other comprehensive income.
AASB 138 Intangible Assets sets out the specific requirements 
to be met in order to capitalise development costs. Intangible 
assets should be amortised over their useful economic lives in 
accordance with AASB 138.
The Group is required to consider indicators of impairment in 
accordance with AASB 136 Impairment of Assets. The losses 
reported over the year provides such an indicator, and a risk 
that the carrying value of these assets may be higher than the 
recoverable amount. 
This area is a key audit matter due to subjectivity and 
management judgement applied in the assessment of whether 
costs meet the development phase criteria described in AASB 
138 along with the judgement required in determining whether 
development costs should be impaired.

Our procedures included, amongst others:

 assessing the Group’s accounting policy in respect of

product development costs for adherence to AASB 138;
 evaluating management’s assessment of each project for
compliance with the recognition criteria set out in AASB
138, including discussing project plans with management
and project leaders to develop an understanding of nature
and feasibility of key projects at 30 June 2021;
 testing a sample of costs capitalised by tracing to

underlying support such as vendor invoices and payroll
records in order to understand the nature of the item and
whether the expenditure was attributable to the
development of the related asset, and therefore whether
capitalisation was in accordance with the recognition
criteria of AASB 138;

 obtaining management’s assessment of impairment

indicators for capitalised software development and other
intangible assets, and assessing in accordance with AASB
136;

 where impairment indicators are identified, assessing

whether intangible assets appear recoverable based on
management’s impairment model;

 evaluating the reasonableness of useful lives to be applied

in future reporting periods; and

 assessing the adequacy of the related disclosures within

the financial report.



Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the 
Group’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report 
thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance 
conclusion thereon. 

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider 
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or 
otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial report 

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in 
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors 
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material 
misstatement, whether due to fraud or error. 

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, 
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 

Auditor’s responsibilities for the audit of the financial report 

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material 
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing 

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions 
of users taken on the basis of this financial report. 

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance 
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.pdf. This description forms part of 
our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in pages 9 to 20 of the Directors’ report for the year ended 30 June 
2021.

In our opinion, the Remuneration Report of Firstwave Cloud Technology Limited, for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance 
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, 
based on our audit conducted in accordance with Australian Auditing Standards. 

Grant Thornton Audit Pty Ltd
Chartered Accountants

R J Isbell 
Partner – Audit & Assurance

Sydney, 28 September 2021

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholder information
As at 21 October 2021

The shareholder information set out below is applicable as at 21 October 2021.

Range of units
Analysis of number of equitable security holders by size of holding:

Range

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 Over

Total

Holding less than a marketable parcel

Substantial holders
Substantial holders in the company are set out below:

Ordinary shares

Total holders

% Units

1,638

217

231

936

823

3,845

1,946

0.01

0.09

0.24

5.18

94.48

100.00

0.17

% of total shares

Number held

% of total 
shares issued

PERENNIAL VALUE MANAGEMENT LIMITED (PVM)

112,204,676

14.58

6 96 9

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Top shareholders 
Twenty largest quoted equity security holders

The names of the twenty largest security holders of quoted equity securities are listed below: 

Rank Name

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

15

17

18

19

19

19

NATIONAL NOMINEES LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

MR SCOTT LIDGETT + MRS KATHERINE LIDGETT (LIDGETT 
SUPER FUND A/C)

MR GREGORY VYTAS MAREN + MRS GERALDINE 
MARGARET MACLEAN MAREN (MAREN SUPER FUND A/C)

MR DAVID ROTHWELL

BNP PARIBAS NOMS PTY LTD (DRP)

PATAGORANG PTY LTD (THE ROGER ALLEN FAMILY A/C)

WILLROTH PTY LTD (THE WILLROTH A/C)

EREMITE PTY LTD (JAMIESON FAMILY A/C)

PAYNES HARDWARE SERVICES PTY LTD (PAYNES 
HARDWARE P/L S/F A/C)

CORLETTE POINT ROAD PTY LIMITED (POINT A/C)

MR OLIVER DAMBERG

CDO INVESTMENTS PTY LTD (CDO FAMILY A/C)

PATAGORANG PTY LTD (ROGER ALLEN FAMILY A/C)

INDIGENOUS CAPITAL LIMITED

PATAGORANG PTY LTD (ROGER ALLEN FAMILY A/C)

MR WILLIAM ROBERT CARTER + MS SARAH VICTORIA 
WILLIAMS

MR EDWARD TIMOTHY KEATING + MRS LINDA JOY 
KEATING

G & L PRIOR PTY LTD (PRIOR SUPER FUND A/C)

OLD DILKARA PTY LTD (J & N OLDROYD S/F A/C)

RTEC (NSW) PTY LTD (RTEC TRADING A/C)

Ordinary shares

Units

% Units

113,607,311

20,602,187

14.77

2.68

17,552,290

17,218,056

14,311,498

12,620,668

11,197,948

10,000,000

7,640,273

7,155,070

6,590,062

6,470,000

6,200,000

6,000,000

5,555,556

5,555,556

5,500,000

5,222,222

5,000,000

5,000,000

5,000,000

2.28

2.24

1.86

1.64

1.46

1.30

0.99

0.93

0.86

0.84

0.81

0.78

0.72

0.72

0.71

0.68

0.65

0.65

0.65

Totals: Top 21 holders of FULLY PAID ORDINARY SHARES 
(Total) 

Total Remaining Holders Balance

293,998,697

475,398,611

38.21

61.79

Unquoted equity securities

Options over ordinary shares

Share rights over ordinary shares

Number held

31,925,999

23,296,219

7 0

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Voting rights
The voting rights attached to ordinary shares are set out below:

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a 
poll each share shall have one vote.

There are no other classes of equity securities.

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate directory
30 June 2021

Directors

John Grant - Executive Director and Chairman

Paul MacRae - Non-Executive Director

Euh (David) Hwang - Non-Executive Director

Company secretary

Iain Bartram

Registered office

Level 10, 132 Arthur Street

North Sydney, NSW 2060

Australia

Tel: +61 (02) 9409 7000

Share register

Computershare Investor Services Pty Limited

Level 5, 115 Grenfell Street

Adelaide, SA 5000

Australia

Tel: 1300 787 272

Auditor

Grant Thornton Audit Pty Ltd.

Level 17, 383 Kent Street

Sydney, NSW 2000

Stock exchange listing

Firstwave Cloud Technology Limited shares are listed on the Australian 
Securities Exchange (ASX code: FCT)

Website

http://www.firstwavecloud.com

Corporate Governance 
Statement

The directors and management are committed to conducting the 
business of Firstwave Cloud Technology Limited in an ethical manner 
and in accordance with the highest standards of corporate governance. 
Firstwave Cloud Technology Limited has adopted and has substantially 
complied with the ASX Corporate Governance Principles and 
Recommendations (Fourth Edition) (‘Recommendations’) to the extent 
appropriate to the size and nature of its operations.

The consolidated entity’s Corporate Governance Statement, which sets 
out the corporate governance practices that were in operation during the 
financial year and identifies and explains any Recommendations that have 
not been followed and ASX Appendix 4G are released to the ASX on 
the same day the Annual Report is released. The Corporate Governance 
Statement and Corporate Governance Compliance Manual can be found 
on the company’s website at https://www.firstwavecloud.com/corporate-
governance.

7 2

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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORTFIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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FIRSTWAVE CLOUD TECHNOLOGY – 2021 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Head Office

Level 10, 132 Arthur Street,

North Sydney, NSW 2060

+61 2 9409 7000

www.firstwavecloud.com

Firstwave Cloud Technology Limited

ABN 35 144 733 595