We create,
invest in,
and deliver the
innovation in
breakthrough
technologies
Executive Chairman’s letter
4
Hydrix Services
8
Hydrix Ventures
9
Hydrix Medical
10
Hydrix Services: LUDO
12
Corporate Directory
14
Financial Statements
15
Twenty Largest Shareholders
86
Dear Shareholders,
This has undoubtedly been a tough year, and our financial
results reflect the headwinds encountered across
many sectors during this unprecedented period. The
challenges doing business at a global level prompt us to
continue to adapt, innovate, and position ourselves for
future growth. While this period may not have brought
the immediate financial outcome we all hoped for, we are
deeply invested, both financially and professionally, in
securing the long-term success of the business as green
shoots of growth emerge.
We remain steadfast in our focus on building a thriving
business, with unwavering conviction in its future
potential. Importantly, across the three arms of our
business outsourced product design and development
services, cardiac device distribution, and ventures
investments numerous positive developments provide a
solid foundation for future growth and success.
Gavin Coote
Executive Chairman
Outsourced product design
& development services
Our product design and development services business
remains the core of our operations. We continue to
attract international product development projects
from industry-leading companies across multiple market
sectors. Our reputation as a trusted partner is steadfast
and well established.
The broader market for product design services has
experienced a cyclical slowdown, which we believe is
temporary and not a long-term trend. Some clients have
deferred key projects as they await funding approvals
or navigate internal budget constraints, particularly
in sectors like MedTech, where investments are often
subject to venture capital cycles and corporate funding.
These delays, while challenging, are not indefinite. We also
have clients who are full steam ahead!
Decisive actions taken to lower operating costs and
improve operational efficiencies during the year included
the reduction of fixed management overhead costs,
realignment of billable resources to demand, reduced
leased office space, and reductions in discretionary
expenditure. As market conditions strengthen, we are
well placed to optimise growth through the conversion of
what is an historically large sales pipeline of opportunities.
Revenue growth from here, with an adjusted cost base,
will be instrumental in attaining Group profitability.
“We remain steadfast in our
focus on building a thriving
business, with unwavering
conviction in its future
potential”
Medical AI & digital
technologies distribution
Hydrix Medical, our cardiac technology distribution arm,
continued advancing market development and sales for
our Implicity cardiovascular remote patient management
platform. This innovative Cloud-based system is gaining
global market recognition for its advanced capabilities in
supporting the management of cardiac patients implanted
with pacemakers, positioning us at the forefront of an
evolving healthcare landscape.
We are actively engaged with prospective clients in
Australia and in Singapore, laying the groundwork
for future growth as the regulatory and funding
environment
becomes
more
favourable.
We
are
confident
our
innovative
products
will
deliver
significant value to patients and the healthcare sector.
Investing in extraordinary
medical technologies
The Ventures arm of our business has also faced its
share of market pressures. One of our key investments,
Avertix Medical, made the strategic decision to withdraw
its planned USA IPO in response to challenging market
conditions. This decision, while disappointing in the
short term, underscores the volatile nature of venture
capital markets, especially in the USA. However, the
success of Avertix in raising private capital in this market
demonstrates the underlying strength of its business and
long-term prospects.
We too have taken a long-term view of our venture
investments, recognising that the road to success in these
markets and on a global scale is often nonlinear. Despite
short-term valuation impacts, we remain confident that
with the right market conditions and regulatory approvals,
the potential upside in our venture portfolio remains
significant. Importantly, the structure of our ventures arm
allows us to support these businesses without bearing
additional operating costs, ensuring that we remain well-
positioned to reap future rewards.
Hydrix Annual Report 2024
5
Gavin Coote
Executive Chairman
Looking ahead, we are optimistic about
Hydrix’s prospects with the green shoots
of growth emerging
Gavin Coote
Executive Chairman
$40m potential future revenues from 15 active
and contracted clients
22%
73%
73% of FY24 revenues came from Europe and
the USA, a 4x increase since FY21 and showing
our international expansion strategy is on track
22% of the sales pipeline is highly qualified
& includes several multi-million-dollar
international medtech opportunities
$40m
$11.2m contract sales for FY24, 10%
YoY growth
$11.2m
$2.5m
$2.5m software product for remote cardiac
patient monitoring sales opportunity pipeline
The Path Forward
Looking ahead, we are optimistic about Hydrix’s prospects
with green shoots of growth emerging and a clear path to
achieve our objectives. Hydrix Services, our core product
design and engineering services business, remains highly
regarded by clients, and we are confident that as market
conditions strengthen, we will see a strong uptick in
project activity.
Hydrix Ventures portfolio investments are in future
growth sectors, and we believe can provide significant
returns in due course.
Hydrix Medical, with its leading cardiovascular technology
offering, is poised to benefit from a growing demand for
advanced patient management tools, an aging population,
pressure on staff resources and increasing digital
healthcare budgets to better manage cardiovascular
disease.
The proactive steps we have taken to manage costs and
streamline operations across the Group position us
well to capitalize on future growth and reflect our deep
commitment to the long-term success of the business.
We want to thank you - our shareholders, clients, and staff
- for your continued support and trust in our vision. Like
you, we all have a vested interest in the future of Hydrix,
and we remain fully committed to delivering strong
results. We are confident that the company is on the right
path to a prosperous future.
Hydrix Annual Report 2024
Hydrix Annual Report 2024
7
6
Hydrix has made considered investments in clients where we are assisting them in the
development of pioneering, cutting-edge technologies at the early stages of development.
Through ongoing collaboration, these partnerships not only advance groundbreaking
innovations but also serve as a magnet for new clients in search of product innovation
expertise and investment opportunities. We specifically focus on clients with a development
timeline of less than 5 years to commercialisation, aligning with our portfolio strategy.
Our objective is to achieve capital gains exceeding 5 times the initial investment, enabling
us to fuel further growth initiatives and support future innovations.
Hydrix Ventures
Investing in early-stage
medical device companies
Avertix (f/k/a AngelMed)
Gyder Surgical
Cyban
avertix.com
gydersurgical.com
cyban.com.au
Manufacturer of the
GUARDIAN, the world’s only
implantable heart attack
detection system.
A surgical navigation system
to assist surgeons position
implants with greater accuracy
during total hip arthroplasty.
A non-invasive continuous tissue
oxygen monitor measuring brain
oxygen levels for patients in
intensive care units.
$0.14m
$2.32m
$0.95m
Book Value
Private
Private
Private
Company
Gen 3 in market
Gen 1 market ready
Gen 1 in development
Product
US FDA, SNG, MAL, THD
TGA (Apr 23), FDA~1HCY25
FDA ~2HCY25
Regulatory
Selling in the USA
~2HCY25
~2HCY25
Commence Sales
Hydrix Services continues to make strong progress expanding
its global medtech client footprint with successive year
increases in international cardiac and medtech revenues. In
FY24, 73% of revenues came from international clients up
from 57% the prior year, and 93% from cardiac and medtech
clients up from 84% the prior year. International revenues
have increased more than 4x since FY21 and are the growth
engine for Services.
Hydrix has a strategic capability in developing Class III active
implantable medical devices and a unique point of difference
in cardiovascular technologies. These are high-risk devices
intended to be implanted in the human body for extended
periods which undergo strict regulatory controls and rigorous
testing to ensure safety and effectiveness.
Of FY24 revenues, 42% came from clients developing
cardiovascular technologies and there are a significant
number of high value opportunities in the sales pipeline. Five
of the more significant revenue producing clients during FY24
delivered revenues of $7.25m:
Hydrix Services
New product innovation
Region
Sector
Client product under development
USA
Cardiac
A robotic system for endovascular interventions
Europe
Cardiac
A Left Ventricular Assist Device (LVAD)
Europe
Cardiac
A Total Artificial Heart device (TAH)
Europe
Medtech
A wound therapy device
Australia
Medtech
A non-invasive continuous monitor to detect brain hypoxia
Hydrix Annual Report 2024
8
Hydrix Medical
The growing adoption of AI &
digital technologies
Vickie Edwards,
Director of sales and operations
Implicity
Gold standard in remote cardiac
monitoring
AI-driven, this RM solution delivers a
complete and accurate cardiovascular
monitoring technology and data
management tool that effectively
supports health professionals in the
diagnosis, rehabilitation and surveillance
of their cardiovascular patients.
New product expansion
Biometrics data platform for
remote patient monitoring
We continue to assess outpatient
ambulatory wearables for cardiac
diagnostic and hospital-in-the-home
applications.
EchoSolv
Redefining diagnosis of structural
heart disease
A cloud-based platform is backed by
the latest in medical technology, AI, and
machine learning. This innovative decision
support tool is designed to highlight
probability indicators for structural
heart disease using echocardiographic
measurement data from a standard
cardiothoracic ultrasound.
Our medical products portfolio
The Australian government prioritised digital health in
the 2023–24 Federal Budget, with significant funding
directed towards the National Digital Health Strategy
and My Health Record expansion. This focus aligns with
future investments in AI-powered diagnostics, remote
monitoring, and cybersecurity, creating a favourable
environment for the adoption of innovative technologies.
Hydrix Medical is well positioned to be at the forefront of
this digital transformation with our AI-driven technologies
like Implicity and EchoSolv that improve diagnoses,
monitoring, and patient care, and help to reduce
costs and improve capacity among service providers.
As someone who remains active in the healthcare
provider sector, maintaining my health practitioner status
under Australian Health Practitioner Regulation Agency
(APHRA) requirements, I have the benefit of hands-on
experience of the real-world challenges and needs within
the system. With growing support from government
policy and funding towards cardiovascular health, I remain
confident that Hydrix Medical is well-positioned to offer
the new technology solutions that align with national
healthcare priorities and contribute to better patient
outcomes across Australia.
Australia’s healthcare system faces increasingly complex
challenges including critical shortages of healthcare
professionals such as nurses, GPs, and specialists,
particularly in rural and remote areas. Chronic conditions
such as cardiovascular disease, and a growing strain
on aged care services, are only adding to the pressure
The emergence of digital health technologies represents
an immediate opportunity to help reshape cardiac
healthcare. Artificial Intelligence (AI) and machine learning
in cardiac imaging is improving diagnostic accuracy, while
telemedicine platforms allow for sophisticated remote
consultations in areas with limited specialist access.
Home monitoring via wearables is empowering patients
to manage heart health in real time, and digital health
records are improving data sharing among healthcare
providers, enhancing continuity of care.
on the system.
Avertix Guardian
The world’s only MI early warning
system
The first implantable, patient alerting
system designed to warn patients to seek
medical attention for Acute Coronary
Syndrome (ACS), including silent heart
attacks, improving symptom to door time
and reducing treatment delays.
Hydrix Annual Report 2024
10
Hydrix continues to solidify its leadership in the
development of mechanical circulatory support (MCS)
control systems. With growing brand awareness and
preference among emerging innovators in key markets
across Europe and the US, we remain the preferred
partner for companies advancing the next generation of
life-saving cardiac technologies.
Our commitment also goes beyond functionality to
embrace
creative
exploration,
exemplified
by
the
development of our LUDO controller concept. Unveiled
at the recent European Society of Artificial Organs
(ESAO) event in Aachen, Germany, this innovative design
reimagines the MCS user experience, proposing a more
engaging and personal connection between patients and
their devices. The concept, reflecting our forward-thinking
approach to improving patient outcomes and comfort, was
well received and sparked significant discussions at and
beyond the event.
In FY24, we shipped five of our proprietary Ludo
development platforms, our unique internally developed
IP that provides safety critical architecture for artificial
heart developers. Each platform sale typically marks the
commencement of a long-term Hydrix-client partnership,
with potential for expanded project scope to grow
revenues and market share, further reinforcing Hydrix’s
role as a compelling development partner.
Hydrix Services
Expanding our leadership in the
global mechanical circulatory
support market
“The LUDO system has proven an incredible asset for
The Texas Heart Institute, providing us with everything
essential for the success of our LVAD projects”
Yaxin Wang, PhD
Associate Investigator
Director, Innovative Device
and Engineering Applications,
The Texas Heart Institute
Hydrix Annual Report 2024
Hydrix Annual Report 2024 13
12
Directors
Mr Gavin Coote
(Executive Chairman)
Ms Julie King
(Non-Executive Director)
Mr Paul Lewis
(Non-Executive Director)
Mr Paul Wright
(Non-Executive Director)
Company Secretary
Ms Alyn Tai
Registered Office |
Principal place of business
30-32 Compark Circuit
Mulgrave VIC 3170
Phone: (03) 9550 8100
Share register
Boardroom Pty Limited
Grosvenor Place
Level 12, 225 George Street
Sydney NSW 2000
Auditor
Grant Thornton Audit Pty Ltd
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Solicitors
Thomson Geer
Level 23, Rialto South Tower
525 Collins Street
Melbourne VIC 3000
Stock Exchange Listing
Hydrix Limited's shares are listed on the
Australian Securities Exchange
(ASX code: HYD)
Websites
www.hydrix.com
Country of incorporation
and domicile
Australia
Corporate
directory
For the year ended 30 June 2024
ABN: 84 060 369 048
General information
The financial statements cover Hydrix Limited as a consolidated entity
consisting of Hydrix Limited and the entities it controlled at the end of, or
during, the year. The financial statements are presented in Australian dollars,
which is Hydrix Limited's functional and presentation currency.
Hydrix Limited is a listed public company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business are:
Registered office | Principal place of business
30-32 Compark Circuit
Mulgrave VIC 3170
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 30 August 2024. The directors have the power to
amend and reissue the financial statements.
Directors’ report
16
Auditor’s independence declaration
31
Consolidated statement of profit & loss
32
Consolidated statement of financial position
33
Consolidated statement of changes in equity
34
Consolidated statement of cash flows
35
Notes accompanying the financial statements
36
Directors’ declaration
74
Independent auditor’s report
76
Additional securities exchange information
82
Financial
statements
Hydrix Annual Report 2024 15
Julie King
Non-Executive Director
Appointed 28 March 2017
Ms King holds a Bachelor of Commerce degree from the University
of Melbourne. With 40 years’ experience in various industries
including utilities, maritime, airline, banking and FMCG, she is a
specialist in commercial negotiations and leading high performance
leadership and culture programs. Ms King currently operates a
private philanthropic family Foundation and is a Graduate of the
Australian Institute of Company Directors.
The directors present their report, together with
the financial statements, on the consolidated entity
(referred to hereafter as the ‘consolidated entity’)
consisting of Hydrix 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 2024.
Directors
The following persons were directors of Hydrix
Limited during the whole of the financial year and up
to the date of this report, unless otherwise stated:
Directors’
report
Paul Wright
Non-Executive Director
Appointed 8 August 2018
Mr Wright has spent the last 18 years as CEO of three of Australia’s
leading international technology companies. At ASX-listed
Universal Biosensors (“UBI”), Paul built long term partnerships
with global diagnostics leaders Siemens Healthcare and Johnson
& Johnson, and led the company through a period of strong growth
and new product development. Before UBI, Paul was CEO of
Invetech (1999-2007), an internationally renowned product design
and development company, and Vision BioSystems (2007-2008),
the major subsidiary of ASX-listed Vision Systems Limited that
developed, manufactured and marketed diagnostic instruments
and consumables to pathology laboratories worldwide.
Prior to this, Paul spent over 8 years working in Europe, North
America and Asia with corporate strategy consultants Bain &
Company, advising multi-national clients on growth strategy,
mergers and acquisitions, and manufacturing improvement. As
General Manager of Corporate Development at TNT Logistics,
Paul played a key role in the development of a major contract
logistics business in Asia establishing Joint Venture businesses in
China, Malaysia, and Indonesia.
Paul has a Masters Degree in Engineering from the University of
Cambridge, has studied corporate finance at the London Business
School, and is a Fellow of the Australian Institute of Company
Directors.
Paul Lewis
Non-Executive Director
Appointed 28 October 2021
Mr Lewis started his career in technology leadership for companies
including Mobil Oil Corporation, ICL and as Managing Partner for
PA Consulting, Asia. Paul retired from the Board of the Magellan
Financial Group in 2021 after 15 years where he served as
Director from its inception and was also a member of British
Telecom’s Global Advisory Board from 2003 to 2009. Paul was
Chair of NAB Private Advisory Board from 2008 to 2013, and for
14 years was Deputy Chair of the Australian British Chamber of
Commerce – for which he received an MBE in 2019 for services
to bilateral trade. He is currently Chair of ipSCAPE Limited, the
recent Chair of GWS GIANTS Foundation, and for 8 years was
on the Board of Cure Cancer. Paul is a Fellow of the Australian
Institute of Company Directors.
Gavin Coote
Executive Chairman
Appointed as Non-Executive Director 12 January 2017; appointed
as Non-Executive Chairman 28 March 2017; appointed as
Executive Chairman 1 January 2020
Mr Coote brings 25+ years executive leadership in corporate
and financial strategy, and private equity. His experience includes
5 years with PricewaterhouseCoopers in Australia and the
USA, a decade in technology mergers & acquisitions, corporate
development, and venture investing in the United States, and 15
years in Australian private equity in various sectors including
healthcare, industrial and residential construction materials,
leisure and hospitality, and sports and entertainment.
He has played significant roles in several turnaround and
acquisition-led growth strategies culminating in successful trade
sales. These include NASDAQ-listed Platinum Technology Inc.,
where revenues grew from $100 million to over $1 billion in 4
years driven by organic revenue growth and 40+ acquisitions, and
eventually sold to CA Technologies for $3.5 billion, and several
above-average SME private-equity exits.
Gavin has a Bachelor of Economics & Politics (Accounting) from
Monash University, a Masters of Business Administration from
University of Michigan, and is a Graduate of the Australian Institute
of Company Directors.
Joanne Bryant
Non-Executive Director
Appointed 29 November 2016, stepped down 13 November 2023.
Hydrix Annual Report 2024 17
Director
Attended
Held
Attended
Held
Attended
Held
Mr Gavin Coote
10
10
2
2
4
4
Ms Julie King
10
10
2
2
4
4
Ms Joanne Bryant^
5
5
1
1
2
2
Mr Paul Wright
10
10
2
2
4
4
Mr Paul Lewis
10
10
2
2
4
4
Director
a.
b.
(ii) Ms Julie King has a relevant interest in 26,273,145 fully paid ordinary shares, held by John W King Nominees Pty Ltd. In addition, Julie
King has a relevant interest in 1,500,000 convertible notes, held by John W King Nominees Pty Ltd.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2024, and the number of
meetings attended by each director were:
Interest in the securities of the company
At the date of this report, the relevant interests of directors in the company's securities were:
The directors' relevant interests in the company's securities shown above are as follows:
(i) Mr Gavin Coote has a relevant interest in 5,250,000 fully paid ordinary shares, which are held as follows:
In addition, Gavin Coote has a relevant interest in 475,000 performance rights.
^Ms. Joanne Bryant stepped down from the Board at the Company's 2023 Annual General Meeting.
Mr Paul Lewis (iv)
16,583,334 500,000 -
471,498 fully paid ordinary shares are held by a custodian as registered owner on behalf of the Coote Family Super Fund.
4,778,502 fully paid ordinary shares are held by Beachridge Advisory Services Pty Ltd as Trustee for the Coote Family Discretionary
Trust.
No. of Performance Rights
No. of Convertible Notes
No. of Ordinary Shares
Other current directorships held by directors
Paul Wright is a director of Memphasys Limited (ASX: MEM).
Company secretary
Ms Alyn Tai LLB (Hons) has held the role of Company Secretary since June 2016. She is a Partner with law firm Thomson Geer specialising in
corporate and commercial law, and the provision of company secretarial and legal counsel services to ASX-listed entities.
475,000
-
Mr Paul Wright (iii)
2,027,673 100,000 -
Held: represents the number of meetings held during the time the director held office.
-
1,500,000
Ms Julie King (ii)
26,273,145
Nomination and
Remuneration Committee*
*Mr. Gavin Coote is not a member of the ARC and NRC. He attends by invitation.
Audit and Risk
Committee*
5,250,000
Mr Gavin Coote (i)
Board of Directors'
Meetings
Directors'
report
a.
b.
(iii) Mr Paul Wright has a relevant interest in 2,027,673 fully paid ordinary shares, which are held by a custodian as registered owner on
behalf of PKW Super Fund. In addition, Paul Wright has a relevant interest in 100,000 convertible notes, which are held by a custodian as
registered owner on behalf of PKW Super Fund.
8,291,667 fully paid ordinary shares are held by a custodian as registered owner on behalf of PAJ Lewis Trust.
8,291,667 fully paid ordinary shares are held by a custodian as registered owner on behalf of PAJ Lewis Super Fund.
(iv) Mr Paul Lewis has a relevant interest in 16,583,334 fully paid ordinary shares, which are held as follows:
a.
b.
In addition, Paul Lewis has a relevant interest in 500,000 convertible notes, which are held as follows:
Principal activities
The principal activities of the consolidated entity during the year were providing product design, engineering, development and regulatory
consulting services to clients in the medical technology sector, marketing disruptive cardiovascular product technologies and making venture
investments in high potential early-stage medtech companies.
The consolidated entity operates three wholly owned subsidiary entities:
Hydrix Services delivers world first products and innovation across the medtech and cardiac market sectors. It offers a comprehensive
range of engineering, development and regulatory consulting services including software, electronics, mechanical, industrial design, and
general product development services. Its product development and consulting services range from applied research through all stages of
engineering design, development, prototyping, manufacturer management, certification process management and supply for global markets.
Hydrix Medical distributes disruptive cardiovascular technologies that address unmet needs for patients and healthcare providers. Products
include the Guardian real-time heart attack warning system from Avertix Medical, Implicity’s cloud-based AI-driven remote cardiac patient
monitoring and data management solution, and Echo IQ’s AI technology that automatically analyses echocardiographic measurements to
improve the detection and diagnosis of patients at high risk of structural heart disease. These products are pre commercial revenue and being
distributed by Hydrix under distribution license agreements across Australia and various Asia Pacific jurisdictions.
Hydrix Ventures selectively invests in high potential Hydrix Services medtech clients to generate equity capital gains. Current portfolio
companies include Gyder Surgical Pty Ltd (orthopaedic surgical tool used in hip replacement surgeries), Avertix Medical (implantable heart
attack warning system), Memphasys Limited (bio-separation system used in IVF procedures), and Cyban Pty Ltd (non-invasive brain trauma
injury monitoring device). For each of these clients, Hydrix Services provides arm's-length product design and development consulting
services.
The consolidated entity has approximately 60 employees and its headquarters are located in Mulgrave, Victoria Australia.
Dividends
No dividends have been paid or declared since the start of the period and the directors do not recommend the payment of a dividend in
respect of the period.
Review of operations
The primary revenue and operational expense of the consolidated entity for the year was derived by Hydrix Services, which finished the year
with a strong sales pipeline to support future growth. Hydrix Medical focused heavily on building market awareness and developing a sales
opportunity pipeline for its Implicity remote cardiac patient monitoring software-as-a-service which it distributes under licence. No new
investments were made in the year by Hydrix Ventures.
250,000 convertible noted are held by a custodian as registered owner on behalf of PAJ Lewis Super Fund.
250,000 convertible notes are held by a custodian as registered owner on behalf of PAJ Lewis Trust.
Hydrix Services continues to make strong progress expanding its global medtech client footprint with successive year increases in
international cardiac and medtech revenues. Revenues were down 19% year-on-year (to $10.6 million) primarily due to the completion of
client projects and delayed commencements of existing and new client projects as a result of client budget constraints and challenging capital
market conditions in which to raise capital for new product developments.
The business successfully won a multi-million-dollar early-stage contract with a leading billion-dollar European medical company which
further endorses Hydrix capability and professionalism, as well as demonstrating strategy traction aimed at capturing large international
medtech clients.
In FY24, 73% of revenues came from international clients up from 56% the prior year, and 93% from cardiac and medtech clients up from
84% the prior year. International revenues have increased more than 4x since FY21 and are the growth engine for Services. Further, 42%
came from clients developing cardiovascular technologies and there are a significant number of high value opportunities in the sales pipeline.
Interest in the shares and options of the company (continued)
Hydrix Annual Report 2024
Hydrix Annual Report 2024 19
18
-
-
-
-
-
2024
2023
$
$
(9,558,852)
(396,926)
2,508,079
522,939
-
(2,952,030)
1,697,631
(629,784)
-
(812,480)
(5,353,142) (4,268,281)
Adjusted consolidated loss before income tax
Review of operations (continued)
As is usual for cardiac technology products, purchase cycles are subject to capital and operating budget expenditure approval processes and
government reimbursement schemes. There are numerous national and state-based Department of Health policy spending reviews,
decisions and tenders pending reimbursement for these sorts of products which can help unlock sales opportunities. We remain optimistic
about the prospects for Implicity to deliver annualised recurring software revenues.
Hydrix Ventures selectively invests in high potential medical device technology clients that Hydrix provides product design and development
services to. This entity currently holds three investments in early stage medtech device companies, all that are either working through
regulatory approval pathways or have commenced commercial sales. Net tangible asset (NTA) value is $3.4 million, down year-on-year by
approximately $1.5 million due to re-valuing the investment in Avertix Medical after they completed a Series C capital raise, resetting the
current valuation as announced on 13 August 2024.
Review of financials
For the year ended 30 June 2024, the consolidated entity recorded total income from operations of $10,716,270, of which revenue from
Hydrix Services customer contracts was $10,607,103 a 19.4% decrease (2023: $13,155,048).
Total operating costs for the consolidated entity decreased $1,036,083 or 6.0% to $16,246,528 (2023: $17,282,611).
After adjusting for the non-cash non-recurring items in FY2024 and FY2023, the consolidated entity losses before income tax were
$5,353,142 and $4,268,281 respectively. The larger loss in FY2024 of $1,084,861 was due to the decrease in revenues being larger than the
reduction in operating costs in the period, however the annualised impact of the cost savings have improved the go-forward cost structure of
the business. The consolidated entity’s operating losses reflect continued investment expanding Hydrix Services into Europe and the USA to
drive future growth opportunities and building new markets and future sales opportunities for Hydrix Medical’s remote cardiac patient
monitoring software.
Reconciliation to adjusted consolidated loss before income tax
Net cash used in operating activities to support the growth and expansion of the consolidated entity was $1,891,650 (2023: $2,734,482). The
consolidated entity used less cash for operations as a result of cost reduction and cash management during the period compared to the prior-
period to offset the $2,547,998 decrease in revenues.
In August 2023, the Company issued 3,060,000 convertible notes to investors, each with a face value of $1. The convertible notes have a
maturity date which is 24 months from the date of issue, and a coupon rate of 10% per annum, payable in cash, quarterly in arrears. The
conversion price is the lower of $0.05 and the lowest issue price of Hydrix shares under any equity capital raising completed between the
issue date and the maturity date, subject to a minimum conversion price of $0.015 (Conversion Price).
Loss after income tax expense per Consolidated Statement of Profit & Loss
Impairment of intangible assets
Movement in contingent consideration liability
(Loss) / gain on financial instruments at fair value through profit or
Other income non-recurring
Hydrix Medical continues to actively advance its sales opportunity pipeline (more than $2.5m in prospective annual revenue) for Implicity’s
remote cardiac patient monitoring cloud software to public and private cardiac health providers in Australia, Singapore and New Zealand.
Revenue decrease in Services of $2.5 million due to certain client projects being completed while certain new client projects are
yet to commence.
The consolidated entity loss before income tax increased year-on-year to $9,558,852 (2023: $396,926) primarily attributable to
the following:
Operating cost reductions of $1.0 million (6.0%) to $16.2 million (2023 $17.3 million).
Non-cash intangible asset impairment of $2.5 million relating to distribution rights for the Avertix Guardian.
Non-cash downward fair value adjustment of $1.75 million relating to investment in Avertix Medical.
Prior period result benefitted from one-off non-cash accounting adjustments:
- $0.8 million non-cash and non-recurring provision release for consulting services which expired during that period; and
- $2.9 million of non-cash and non-recurring contingent consideration provision release relating to the acquisition of the Guardian
distribution rights which expired during that period.
Directors'
report
-
-
-
-
Tranche 1: 460,000 convertible notes were issued to non-related parties of the Company on 11 October 2023; and
$500,000 loan to the business with an 11% interest rate, payable quarterly. Loan is repayable on 31 December 2024, or extendable
through mutual agreement
$500,000 loan facility available on a draw down basis, with 10% interest rate payable on drawn funds, payable quarterly. In addition, a 1%
facility fee is payable on signing of the loan agreement.
Review of financials (continued)
The convertible notes were issued in 2 tranches as follows:
The convertible notes are convertible into a maximum of 204,000,000 shares, when applying the floor price of $0.015 (subject to rounding).
The actual number of ordinary shares that the convertible notes may convert into (if any) depends on the number of notes that are converted
(if any) and the applicable Conversion Price at the time of conversion.
A noteholder may in its discretion elect to convert one or more convertible notes, by submitting a written notice of conversion to the
Company. The number of conversion shares will be determined by dividing the aggregate face value of the notes being converted, by the
Conversion Price. A noteholder may only convert a minimum of 25,000 convertible notes on any particular occasion. If the noteholder has, in
total, less than 25,000 convertible notes, the noteholder must convert all of its convertible notes at the same time.
Where shareholder approval or any other approvals under the ASX Listing Rules, Corporations Act 2001 (including the takeover provisions in
Chapter 6 of the Corporations Act 2001 ) or other applicable law are required for an issue of shares in connection with a convertible note, the
shares will not be required to be issued unless and until those approvals are obtained.
As at 30 June 2024, the Company's remaining liability to make payments under the notes is as follows (assuming that no notes are converted
and that all notes are redeemed on the maturity date):
On 1st February 2024, Hydrix Limited entered into two loan agreements with major shareholders to support working capital requirements:
In April 2024, Hydrix Services renewed its $1.5 million revolving loan facility agreement with Tradeplus24 Australia Pty Ltd (“TP24”) for a
further 12 months. At 30 June 2024, $797,996 was drawn under the facility.
The consolidated entity’s cash position was $914,274 at 30 June 2024.
Tranche 2: 2,600,000 convertible notes were issued to related parties of the Company (including directors) on 6 December 2023,
following receipt of shareholder approval for the purposes of ASX Listing Rule 10.11 at the Company's annual general meeting on 13
November 2023.
1) $3.06 million in principal repayments;
2) $0.67 million in interest liability to maturity date
Outlook
The business prospects for the consolidated entity remain strong, noting management anticipates business conditions will remain fluid. The
key objective for the next 12 months is to drive the consolidated entity to cash operating profit on the back of sales conversions, higher
revenues, higher margins and billable utilisation, and a lower operating cost structure.
Significant changes in the state of affairs
With the exception of the above, there were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 10th August 2024, Hydrix Ventures was advised by Avertix Medical that it closed a Series C capital raise. As part of those funding terms,
Avertix completed a 100-to-1 reverse stock split and reset the stock price to US$9.27 per share. After accounting for the terms of the Avertix
capital raise, Hydrix Ventures holds 10,000 Avertix shares valued at USD$9.27, giving an AUD valuation of $139,983. Hydrix Ventures has,
as a result, written down the value of its Avertix investment by $1,747,173, from $1,887,156 to $139,983. The impact of this valuation has
been reflected in the financial statements at 30 June 2024.
Likely developments and expected results of operations
The current consolidated entity’s principal activities will continue for the next financial year ending 30 June 2025.
Environmental regulation
The consolidated entity's operations are subject to environmental regulations under the law of the Commonwealth and State. The Board
believes that the consolidated entity has adequate systems in place for the management of its environmental requirements and is not aware
of any breach of those environmental requirements as they apply to the consolidated entity.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 21
20
-
-
-
-
-
-
-
-
Details of key management personnel
Remuneration philosophy
Details of remuneration
The remuneration report is set out under the following main headings:
Mr Gavin Coote
Non-Executive Chairman - Appointed 28 March 2017, Executive Chairman - Appointed 1 January 2020
Ms Julie King
Non-Executive Director - Appointed 28 March 2017
Ms Joanne Bryant
Non-Executive Director - Appointed 29 November 2016, stepped down 13 November 2023
Mr Paul Wright
Non-Executive Director - Appointed 8 August 2018
Mr Paul Lewis MBE
Non-Executive Director - Appointed 28 October 2021
The performance of the company depends on the quality of the company’s directors, executives and employees and therefore the company
must attract, motivate and retain appropriately qualified industry personnel.
The remuneration policy of the company has been designed to align KMP objectives with shareholder and business objectives by providing a
fixed remuneration component and offering specific short-term and long-term incentives based on key performance areas affecting the
company’s financial results. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the
high-quality KMP required to run and manage the company, as well as create goal congruence between directors, executives and
shareholders.
The Nomination and Remuneration Committee reviews KMP packages annually by reference to the consolidated entity's performance,
executive performance and comparable information from industry sectors.
The Nomination and Remuneration Committee reviews remuneration packages and practices applicable to the senior executives and the
Board. This role also includes responsibility for share option schemes, incentive performance packages and retirement and termination
entitlements. Remuneration levels are competitively set to attract the most qualified and experienced Directors and senior executives. The
Nomination and Remuneration Committee may obtain independent advice on the appropriateness of remuneration packages.
Performance incentives are only paid once predetermined key performance indicators (KPI's) have been met.
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.
Details of Key Management Personnel
Remuneration Philosophy
The Board has established a formal Nomination and Remuneration Committee which operates under the Nomination and Remuneration
Committee Charter approved and adopted by the Board.
The remuneration policy has been developed by the Nomination and Remuneration Committee and approved by the Board and
professional advice is sought from independent external consultants where required.
All KMP receive a base salary, superannuation, options (subject to shareholder approval in the case of directors) and performance
incentives.
Incentives paid in the form of options or rights are intended to align the interests of the directors and company with those of the
shareholders. In this regard, KMP are prohibited from limiting risk attached to those instruments by use of derivatives or other means.
Directors'
report
i.
ii.
i.
ii.
i.
ii.
Fixed remuneration – The base remuneration is $48,000 per annum plus $10,000 per annum for the role of Chairperson of the
Nomination and Remuneration Committee (exclusive of GST, but inclusive of any applicable superannuation).
Expenses – Ms King is entitled to claim from the company reimbursement of reasonable out-of-pocket expenses properly incurred in the
performance of her duties and responsibilities (and upon production of satisfactory receipts).
Fixed remuneration – The base remuneration is $48,000 per annum (exclusive of GST, but inclusive of any applicable superannuation).
Expenses – Ms Bryant is entitled to claim from the company reimbursement of reasonable out-of-pocket expenses properly incurred in
the performance of her duties and responsibilities (and upon production of satisfactory receipts).
Fixed remuneration – The base remuneration is $48,000 per annum plus $10,000 per annum for the role of Chairperson of the Audit
and Risk Committee (exclusive of GST, but inclusive of any applicable superannuation).
Expenses – Mr Wright is entitled to claim from the company reimbursement of reasonable out-of-pocket expenses properly incurred in
the performance of his duties and responsibilities (and upon production of satisfactory receipts).
Mr Coote’s appointment as Executive Chairman was effective on 1 January 2020, and continues on an ongoing basis under a services
agreement between Mr Coote and the company. Either the company or Mr Coote may terminate the services agreement with 6 months’
notice (other than by the company for cause).
Remuneration
Mr Coote’s total fixed remuneration for his executive services under the employment agreement is $360,000 per annum (inclusive of
superannuation). Mr Coote’s remuneration for his executive services is in addition to the fee of $83,000 per annum (inclusive of
superannuation) that Mr Coote is currently entitled to receive (and will continue to receive) for his roles and responsibilities as Chairman and
Director of the Company.
Variable performance-based reward will be in the form of short-term and long-term incentives, as determined by the Board at its sole
discretion.
Restraints
Mr Coote must not, during his employment, except with the written consent of the company, engage in (directly or indirectly) any
undertaking or business of a similar nature to, or in competition with, the business of the company. In addition, certain non-compete and non-
solicit restraints apply to Mr Coote for a period of 12 months after termination of his employment with the company.
Ms Julie King - Non-Executive Director
Ms Joanne Bryant - Non-Executive Director
Mr Paul Wright - Non-Executive Director
REMUNERATION REPORT (Audited) (continued)
The performance of KMP is measured against criteria agreed annually with each executive and is based predominantly on the performance of
the consolidated entity. All bonuses and incentives must be linked to predetermined performance criteria. The Nomination and
Remuneration Committee may, however, exercise its discretion in relation to approving incentives, bonuses and options. Any change must be
justified by reference to measurable performance criteria. The policy is designed to attract the highest calibre of executives and reward them
for performance results leading to long-term growth in shareholder wealth.
KMP are also entitled and encouraged to participate in the employee share and option arrangements to align directors’ interests with
shareholders’ interests.
The employment terms and conditions of KMP are formalised in contracts of employment or consultancy agreements.
In accordance with the company’s Constitution, the aggregate remuneration that can be paid to the company’s Non-Executive Directors is
$500,000 per annum, and the Board determines how this aggregate amount should be divided among individual directors and in what
proportions.
Directors are entitled to be paid reasonable travelling, accommodation and other expenses incurred in consequence of their attendance at
meetings of directors and otherwise in the execution of their duties as directors. A director may also be paid additional amounts as fees or as
the directors determine where a director performs extra services or makes any special exertions, which in the opinion of the directors are
outside the scope of the ordinary duties of a director.
Details of remuneration
Mr Gavin Coote - Executive Chairman
Term and termination
Hydrix Annual Report 2024
Hydrix Annual Report 2024 23
22
i.
ii.
Directors
$
$
$
$
$
$
$
Mr Gavin Coote1 2 5
309,502 83,000 34,045 5,904 -
(147,496) 284,955
Ms Julie King1
- 52,489 5,511 - - - 58,000
Ms Joanne Bryant1 3
- 10,811 1,189 - - - 12,000
Mr Paul Wright1
- 52,489 5,511 - - - 58,000
Mr Paul Lewis1
- 48,000 - - - - 48,000
Total
309,502 246,789 46,256 5,904 -
(147,496) 460,955
Directors
$
$
$
$
$
$
$
Mr Gavin Coote1
327,045 83,000 34,208 5,318 - 218,027 667,598
Ms Julie King
- 52,489 5,511 - - - 58,000
Ms Joanne Bryant
- 43,439 4,561 - - - 48,000
Mr Paul Wright
- 52,489 5,511 - - - 58,000
Mr Paul Lewis
- 48,000 - - - - 48,000
Total
327,045 279,417 49,791 5,318 - 218,027 879,598
Fixed remuneration – The base remuneration is $48,000 per annum (exclusive of GST, but inclusive of any applicable superannuation).
Expenses – Mr Lewis is entitled to claim from the company reimbursement of reasonable out-of-pocket expenses properly incurred in the
performance of his duties and responsibilities (and upon production of satisfactory receipts).
Salary
Super-
annuation
Salary
Total
1 All Director fees have been accrued but have not been paid since 1 October 2023.
3 Ms Joanne Bryant stepped down from the board on 13 November 2023.
Fees
Short-term benefits
Equity-settled
rights⁴
Equity-settled
shares
Share-based payments
Fees
1 Short-term salary benefits payable to Mr Coote include $83,000 for work performed in his role as director.
REMUNERATION REPORT (Audited) (continued)
Mr Paul Lewis - Non-Executive Director
Engagement of remuneration consultants
During the financial year no external consultants were engaged to review the remuneration and provide recommendations relating to KMP.
Remuneration details for the year ended 30 June 2024
The following tables detail, in respect to the financial year, the components of remuneration for each member of KMP of the company:
Table of benefits and payments for the year ended 30 June 2024
Table of benefits and payments for the year ended 30 June 2023
2 Mr Gavin Coote's salary as Executive Chairman was reduced by 20% from 1 November 2023 to 31 January 2024, and was deferred by
20% from 1 May 2024 to 30 June 2024, meaning $12,055 of the above remuneration was not paid in cash in the year.
Total
Short-term benefits
Equity-settled
rights
5 Short-term salary benefits payable to Mr Coote include $83,000 for work performed in his role as director.
4 Performance rights with non-market based hurdles that failed to vest in the period have the accrued expense reversed in the period,
resulting in a reduction in remuneration in the period.
Post-
employment
benefits
Long-term
benefits
Long Service
Leave
Share-based payments
Post-
employment
benefits
Long-term
benefits
Equity-settled
shares
Super-
annuation
Long Service
Leave
Directors'
report
Directors
2024
2023
2024
2023
2024
2023
152%
67% - -
-52%
33%
100%
100% - - - -
100%
100% - - - -
100%
100% - - - -
Mr Paul Lewis
100%
100% - - - -
Name
Number of
performance
rights
granted
Grant date
Vesting date
Expiry date
Exercise price
Fair value per
right at grant
date
250,000
24-Nov-21
30-Jun-23
30-Jun-27
$0.00
$0.130
750,000
24-Nov-21
30-Jun-24
30-Jun-28
$0.00
$0.074
750,000
24-Nov-21
30-Jun-24
30-Jun-28
$0.00
$0.063
2,750,000
24-Nov-21
30-Jun-24
30-Jun-28
$0.00
$0.130
2024
2023
2022
2021
2020
$
$
$
$
$
Revenue
10,716,270
14,121,482
10,468,453
9,311,738
15,899,742
(9,558,852)
(396,926)
(5,546,389)
(9,778,693)
(2,872,734)
(9,558,852)
(396,926)
(5,546,389)
(9,778,693)
(3,219,461)
2024
2023
2022
2021
2020
$0.01
$0.03
$0.07
$0.19
$0.09
$0.00
$0.00
$0.00
$0.00
$0.00
(3.76)
(0.17)
(3.19)
(6.84)
(4.35)
(3.76)
(0.17)
(3.19)
(6.84)
(4.35)
No shares were issued to key management personnel during the period.
At risk - LTI
Mr Gavin Coote2
Ms Julie King
1 Ms Joanne Bryant stepped down from the board on 13 November 2023.
Issue of shares
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and other KMP in this
financial year and future reporting years are as follows:
Additional information
The earnings of the consolidated entity for the five years ended 30 June 2024 are summarised below:
REMUNERATION REPORT (Audited) (continued)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Share-based compensation
Mr Gavin Coote
Mr Gavin Coote
At risk - STI
Mr Paul Wright
Fixed remuneration
Ms Joanne Bryant1
2 As a result of the expense reversal for Mr Coote's performance rights that failed to vest in the period, fixed remuneration is greater than
100% of total remuneration, whilst at risk-LTI is a negative percentage of remuneration, reflecting the expense reversal.
Mr Gavin Coote
(Loss) after tax
Basic loss per share (cents per share)
(Loss) before tax
Mr Gavin Coote
Additional disclosures relating to KMP
Shareholding
The performance rights vest subject to satisfaction of prescribed vesting conditions including market conditions, and financial, operational,
corporate governance, strategic planning and business development objectives set by the Board.
Performance rights granted carry no dividend or voting rights.
The factors that are considered to affect total shareholders return (TSR) are summarised below:
Diluted loss per share (cents per share)
Total dividends declared (cents per share)
Share price at financial year end ($)
The number of shares in the company held during the financial year by each director and other members of KMP of the consolidated entity,
including their personally related parties is set out on the next page:
Hydrix Annual Report 2024
Hydrix Annual Report 2024 25
24
Name
5,250,000 - - -
5,250,000
26,273,145 - - -
26,273,145
2,552,577 - - -
2,552,577
2,027,673 - - -
2,027,673
16,583,334 - - -
16,583,334
52,686,729
- - - 52,686,729
Name
4,500,000 - -
(4,025,000)
475,000
- - - -
-
- - - -
-
- - - -
-
- - - -
-
4,500,000 - -
(4,025,000) 475,000
Mr Paul Lewis
Balance at the
end of the year
Exercised
Expired /
forfeited
Granted
Received
on the
exercise of
performance
rights
Balance at
the start of
the year
Additions
Ms Joanne Bryant
Mr Paul Wright
Mr Gavin Coote
Ms Julie King
Ms Joanne Bryant
Mr Paul Wright
Mr Paul Lewis
Mr Gavin Coote
Ms Julie King
Balance at
the start of
the year
Balance at the
end of the year
Disposals
REMUNERATION REPORT (Audited) (continued)
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and other members of
KMP of the consolidated entity, including their personally related parties is set out below:
The performance rights vest subject to satisfaction of prescribed vesting conditions including market conditions, and financial, operational,
corporate governance, strategic planning and business development objectives set by the Board.
This concludes the remuneration report, which has been audited.
Directors'
report
Class of Unlisted Options
Note
Exercise
Price
Vesting
Date
Expiry
Date
Grant
Date
Fair Value at
Grant Date
Balance at 30
June 2024
Balance at
Date of this
Report
Employee LTIP options
(i)
$0.290
9-Mar-20
30-Jun-25
9-Mar-20
$0.082
71,663
71,663
Employee LTIP options
(i)
$0.290
1-Jul-20
30-Jun-25
9-Mar-20
$0.082
71,651
71,651
Employee LTIP options
(i)
$0.290
1-Jul-21
30-Jun-25
9-Mar-20
$0.082
71,653
71,653
Employee LTIP options
(i)
$0.290
1-Jul-22
30-Jun-25
9-Mar-20
$0.082
71,659
71,659
Employee LTIP options
(ii)
$0.075
8-Sep-20
30-Jun-25
8-Sep-20
$0.272
80,604
80,604
Employee LTIP options
(ii)
$0.075
1-Jul-21
30-Jun-25
8-Sep-20
$0.272
80,599
80,599
Employee LTIP options
(ii)
$0.075
1-Jul-22
30-Jun-25
8-Sep-20
$0.272
80,599
80,599
Employee LTIP options
(ii)
$0.075
1-Jul-23
30-Jun-25
8-Sep-20
$0.272
80,600
80,600
Employee LTIP options
(iii)
$0.075
2-Oct-20
30-Jun-25
2-Oct-20
$0.262
65,626
65,626
Employee LTIP options
(iii)
$0.075
1-Jul-21
30-Jun-25
2-Oct-20
$0.262
65,624
65,624
Employee LTIP options
(iii)
$0.075
1-Jul-22
30-Jun-25
2-Oct-20
$0.262
65,624
65,624
Employee LTIP options
(iii)
$0.075
1-Jul-23
30-Jun-25
2-Oct-20
$0.262
65,626
65,626
Performance rights
(iv)
$0.000
30-Jun-23
30-Jun-27
24-Nov-21
$0.130
225,000
225,000
Performance rights
(iv)
$0.000
30-Jun-24
30-Jun-28
24-Nov-21
$0.130
250,000
250,000
Employee LTIP options
(v)
$0.100
17-Jan-22
30-Jun-26
17-Jan-22
$0.101
153,359
153,359
Employee LTIP options
(v)
$0.100
1-Jul-22
30-Jun-26
17-Jan-22
$0.101
153,359
153,359
Employee LTIP options
(v)
$0.100
1-Jul-23
30-Jun-26
17-Jan-22
$0.101
153,359
153,359
Employee LTIP options
(v)
$0.100
1-Jul-24
30-Jun-26
17-Jan-22
$0.101
153,348
153,348
Lead Manager options
(vi)
$0.300
7-Mar-22
7-Mar-25
7-Mar-22
$0.052
1,000,000
1,000,000
Employee LTIP options
(vii)
$0.175
30-Sep-22
30-Jun-27
30-Sep-22
$0.037
134,348
134,348
Employee LTIP options
(vii)
$0.175
1-Jul-23
30-Jun-27
30-Sep-22
$0.037
134,348
134,348
Employee LTIP options
(vii)
$0.175
1-Jul-24
30-Jun-27
30-Sep-22
$0.037
134,348
134,348
Employee LTIP options
(vii)
$0.175
1-Jul-25
30-Jun-27
30-Sep-22
$0.037
134,348
109,848
Lead Manager options
(viii)
$0.060
28-Nov-23
28-Nov-25
28-Nov-23
$0.004
920,000
920,000
Employee LTIP options
(ix)
$0.073
29-Nov-23
30-Jun-28
29-Nov-23
$0.015
337,000
337,000
Employee LTIP options
(ix)
$0.073
1-Jul-24
30-Jun-28
29-Nov-23
$0.015
337,000
337,000
Employee LTIP options
(ix)
$0.073
1-Jul-25
30-Jun-28
29-Nov-23
$0.015
337,000
294,500
Employee LTIP options
(ix)
$0.073
1-Jul-26
30-Jun-28
29-Nov-23
$0.015
337,000
294,500
(i)
(ii)
(iii)
(iv)
(v)
(vi)
At the date of this report, there were 5,180,845 options and 475,000 performance rights to acquire ordinary shares of the company as
follows:
On 17 January 2022, 934,825 options were issued to employees under the LTIP, and subsequently 130,360 were forfeited due to failure
to meet vesting conditions and 191,040 lapsed after not being exercised within 60 days of cessation of employment. These options vest
subject to time-based and performance-based vesting conditions, including the employee remaining in the employ of the consolidated
entity during the performance period and satisfaction of individual KPI's.
Shares under option / performance rights
The following notes refer to the options and performance rights on issue at 30 June 2024:
On 7 March 2022, 1,000,000 options were issued to the Joint Lead Managers of the Placement Offer as announced by the consolidated
entity on 28 February 2022.
On 9 March 2020, 785,127 options were issued to employees under the LTIP, and subsequently 170,433 were forfeited due to failure to
meet vesting conditions and 328,068 lapsed after not being exercised within 60 days of cessation of employment. These options vest
subject to time-based and performance-based vesting conditions, including the employee remaining in the employ of the consolidated
entity during the performance period and satisfaction of individual KPI's.
On 24 November 2021, 5,250,000 Performance Rights were issued to Directors under the LTIP and subsequently 250,000 were
exercised, 4,525,000 were forfeited due to failure to meet vesting conditions.
On 8 September 2020, 878,038 options were issued to employees under the LTIP, and subsequently 7,813 were exercised, 274,517
were forfeited due to failure to meet vesting conditions and 273,306 lapsed after not being exercised within 60 days of cessation of
employment. These options vest subject to time-based and performance-based vesting conditions, including the employee remaining in
the employ of the consolidated entity during the performance period and satisfaction of individual KPI's.
On 2 October 2020, 582,500 options were issued to employees under the LTIP, and subsequently 65,625 were exercised, 64,376 were
forfeited due to failure to meet vesting conditions and 189,999 lapsed after not being exercised within 60 days of cessation of
employment. These options vest subject to time-based and performance-based vesting conditions, including the employee remaining in
the employ of the consolidated entity during the performance period and satisfaction of individual KPI's.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 27
26
(vii)
(viii)
(ix)
-
-
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 25 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 .
Rounding of amounts
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, issued by the
Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance
with that Corporations Instrument to the nearest dollar.
The directors are of the opinion that the services as disclosed in note 25 to the financial statements do not compromise the external auditor's
independence requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for
Professional Accountants issued by the Accounting Professional and Ethical Standards Board including Independence Standards,
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.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the company or any related entity or in the
interest issue of any other registered scheme. For details of options issued to directors and executives as remuneration, refer to the
Remuneration Report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the consolidated entity 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 consolidated entity 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
To the extent permitted by law, the company has agreed to indemnify its auditors, Grant Thornton Audit Pty Ltd, as part of the terms of its
audit engagement agreement against claims made by third parties arising from the audit (for an unspecified amount). No payment has been
made to indemnify Grant Thornton Audit Pty Ltd during or since end of the financial year.
The company has not otherwise, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
consolidated entity or any related entity against a liability incurred by the auditor.
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
Shares under option / performance rights (continued)
On 29 November 2023, 1,373,000 options were issued to employees under the LTIP, and subsequently 18,750 were forfeited due to
failure to meet vesting conditions and 6,250 lapsed after not being exercised within 60 days of cessation of employment. These options
vest subject to time-based and performance-based vesting conditions, including the employee remaining in the employ of the
consolidated entity during the performance period and satisfaction of individual KPI's.
On 30 September 2022, 705,152 options were issued to employees under the LTIP, and subsequently 107,568 were forfeited due to
failure to meet vesting conditions and 60,192 lapsed after not being exercised within 60 days of cessation of employment. These options
vest subject to time-based and performance-based vesting conditions, including the employee remaining in the employ of the
consolidated entity during the performance period and satisfaction of individual KPI's.
On 28 November 2023, 920,000 options were issued to the Lead Manager of the Convertible Note as announced by the consolidated
entity on 31 July 2023.
Directors'
report
Mr Gavin Coote
Executive Chairman
Melbourne
30-September-2024
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
of the liability and the amount of the premium.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 29
28
Auditor’s independence
declaration
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
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 Limited 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 do not obligate one another and are not liable for one
Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
To the Directors of Hydrix Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of Hydrix Limited for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there
have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
A C Pitts
Partner
Audit & Assurance
Melbourne, 30 September 2024
Hydrix Annual Report 2024
Hydrix Annual Report 2024 31
30
Revenue
Note
2024
2023
$
$
Revenue from contracts with customers
4
10,608,574
13,156,572
Other income
4
85,431
928,402
Interest income
22,265
36,508
10,716,270
14,121,482
Operating expenses
Employee benefits expense
5
(10,956,721)
(10,911,607)
Project material expenses
(799,760)
(1,283,025)
Selling, advertising and distribution expenses
(274,670)
(352,395)
Cost of sales
(19,798)
(21,408)
Other expenses
5
(2,376,988)
(2,799,276)
Depreciation and amortisation expense
5
(937,309)
(1,315,515)
Finance costs
5
(705,542)
(449,231)
Property expense
(175,739)
(150,153)
5
(1,697,631)
629,784
Impairment of intangible assets
10
(2,508,079)
(522,939)
Write back/(impairment) of receivables
8
50,283
(60,457)
Share based payment reversal / (expense)
30
125,036
(260,132)
Movement in contingent consideration liability
-
2,952,030
Unrealised foreign exchange gain
1,797
25,916
(20,275,122)
(14,518,408)
Loss before income tax expense
(9,558,852)
(396,926)
Income tax (expense)/ benefit
6
-
-
Loss after income tax expense
(9,558,852)
(396,926)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Movement in functional currency of foreign operations
20
(24,092)
(2,756)
Total comprehensive loss for the year attributable to the Owners of Hydrix
(9,582,944)
(399,682)
Loss per share
Cents
Cents
Basic and diluted earnings per share (cents per share)
29
(3.76)
(0.17)
(Loss) / gain on financial instruments at fair value through profit or loss
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompany notes
Consolidated statement
of profit & loss and other comprehensive income
for the year ended 30 June 2024
Current assets
Note
2024
2023
$
$
Cash and cash equivalents
7
914,274
1,153,080
Trade and other receivables
8
1,173,395
2,428,670
Contract assets
13
373,836
346,161
Prepayments
258,198
329,015
Inventory
46
19,798
Total current assets
2,719,749
4,276,724
Non-current assets
Plant and equipment
9
204,245
308,203
Intangible assets
10
525,000
3,444,542
Financial assets at fair value through profit & loss
11
3,416,120
4,893,787
Right of use assets
18
1,235,563
1,153,645
Other assets
98,818
75,426
Security deposits
424,980
424,980
Total non-current assets
5,904,726
10,300,583
Total assets
8,624,474
14,577,307
Current liabilities
Trade and other payables
12
2,229,929
1,507,340
Contract liabilities
13
499,131
711,036
Other liabilities
3,558
3,582
Employee benefits
14
1,208,564
912,439
Provisions
15
-
-
Derivative liabilities
17
-
1,275
Borrowings
16
2,290,647
1,369,003
Lease liabilities C
18
675,864
855,149
Total current liabilities
6,907,694
5,359,824
Non-current liabilities
Employee benefits'
14
259,176
179,992
Provisions'
15
174,050
177,371
Borrowings NC
16
3,060,000
1,000,000
Lease liabilities NC
18
1,578,647
1,507,233
Total non-current liabilities
5,071,873
2,864,596
Total liabilities
11,979,567
8,224,420
Net assets
(3,355,093)
6,352,887
Equity
Issued capital
19
102,126,684
102,126,684
Reserves
20
353,758
678,120
Accumulated losses
21
(96,451,917)
Total equity
102,480,442
6,352,887
(105,835,535)
The above consolidated statement of financial position should be read in conjunction
with the accompany notes
Consolidated statement
of financial position
as at 30 June 2024
Hydrix Annual Report 2024
Hydrix Annual Report 2024 33
32
Issued
Accumulated
Consolidated
Capital
Reserves
Losses
Total
$
$
$
$
Balance at 1 July 2022
98,822,417
1,430,847
(96,976,812)
3,276,452
Loss after income tax expense for the year
-
-
(396,926)
(396,926)
Other comprehensive income, net of tax
-
(2,756)
-
(2,756)
Total comprehensive income for the year
-
(2,756)
(396,926)
(399,682)
Transactions with owners in their capacity as owners:
Share based payments
-
260,132
-
260,132
Exercised options / performance rights
88,281
(88,281)
-
-
Expired options
-
(63,822)
63,822
-
Performance rights that failed to vest
-
(33,000)
33,000
-
Contributions of equity, net of transaction costs
3,215,986
-
-
3,215,986
Contingent equity consideration
-
(825,000)
825,000
-
Balance at 30 June 2023
102,126,684
678,120
(96,451,917)
6,352,887
Issued
Accumulated
Consolidated
Capital
Reserves
Losses
Total
$
$
$
$
Balance at 1 July 2023
678,120
(96,451,917)
6,352,887
Loss after income tax expense for the year
-
-
(9,558,852)
(9,558,852)
Other comprehensive income, net of tax
-
(24,092)
-
(24,092)
Total comprehensive income for the year
-
(24,092)
(9,558,852)
(9,582,944)
Transactions with owners in their capacity as owners:
Share based payments
-
(125,036)
-
(125,036)
Expired options
-
(72,484)
72,484
-
Performance rights that failed to vest
-
(102,750)
102,750
-
Balance at 30 June 2024
102,126,684
353,758
(105,835,535)
(3,355,093)
102,126,684
The above consolidated statement of changes in equity should be read in conjunction
with the accompanying notes
Consolidated statement
of changes in equity
for the year ended 30 June 2024
Cash Flows from operating activities
Note
2024
2023
$
$
Receipts from customers (including GST)
12,256,047
14,090,689
Payments to suppliers and employees (including GST)
(14,147,697)
(16,920,641)
Receipt of government grants
-
28,000
Receipt of R&D tax incentive
-
67,470
Net cash used in operating activities
22
(1,891,650)
(2,734,482)
Cash Flows from investing activities
Payments for plant and equipment
9
(14,022)
(74,913)
Payments for intangible assets
10
(39,862)
(124,795)
Payments for investments
-
(10,000)
Proceeds from sale of plant and equipment
457
-
Proceeds from sale of investments
-
-
Proceeds from release of security deposits
-
-
Net cash used in investing activities
(53,427)
(209,708)
Cash Flows from financing activities
Proceeds from issue of shares
-
3,369,679
Share issue transaction costs paid
-
(403,693)
Proceeds from borrowings
4,238,223
801,666
Borrowing transaction costs
(30,360)
-
Repayments of borrowings
(1,256,579)
(476,431)
Interest received
13,958
19,894
Interest and other finance costs paid
(483,181)
(406,725)
Repayments of lease liabilities
(775,439)
(747,795)
Net cash flow from financing activities
1,706,622
2,156,595
Net (decrease) in cash and cash equivalents
(238,455)
(787,595)
Cash and cash equivalents at start of year
1,153,080
1,940,411
Effects of exchange rate changes on cash and cash equivalents
(351)
265
Cash and cash equivalents at end of year
7
914,274
1,153,080
The above consolidated statement of cash clows should be read in conjunction
with the accompanying notes
Consolidated statement
of cash flows
for the year ended 30 June 2024
Hydrix Annual Report 2024
Hydrix Annual Report 2024 35
34
1
a) Basis of Preparation
Historical cost convention
Critical accounting estimates
Going concern
-
-
-
-
-
-
-
General Information
Directors provided $1.0 million of loans to the business in February 2024 to support working capital needs. Whilst the maturity of these
loans is currently 31 December 2024, these can be extended by mutual agreement.
A director has provided a Letter of Support to the business up to $2m, valid for 12 months from the date of this report.
The financial statements cover Hydrix Limited as a consolidated entity consisting of Hydrix Limited and the entities it controlled at the end
of, or during, the year. The financial statements are presented in Australian dollars, which is Hydrix Limited's functional and presentation
currency.
Hydrix Limited is a company limited by shares and incorporated in Australia whose shares are publicly traded on the Australian Securities
Exchange. 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.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing
relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that
the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting
policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated
otherwise.
The financial statements were authorised for issue by the directors of the company on 30 September 2024.
The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001. The Company is a for-profit entity for financial reporting purposes under the Australian Accounting
Standards.
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial
assets and derivatives.
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.
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and
the realisation of assets and discharge of liabilities in the ordinary course of business.
The above factors create business uncertainty which may cast doubt over the business continuing as a going concern and whether the
consolidated entity will be able to realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in the
financial report.
Despite these material uncertainties, the directors are of the opinion the consolidated entity will continue as a going concern, taking into
consideration various factors including:
For the year ended 30 June 2024, the consolidated entity incurred a net loss before tax of $9,558,852 reported net cash used in operations
of $1,891,650 and had a net current assets deficit (current assets less current liabilities) of $4,187,945.
The directors believe the consolidated entity would be able to raise additional capital if required to support strategic growth initiatives and
working capital requirements.
The consolidated entity had an available cash balance of $914,274 at 30 June 2024.
The consolidated entity has $7,201 of undrawn funds available on its TP24 CreditLine facility based on eligible debtors as at 30 June 2024.
There is an additional $687,602 available before the facility limit of $1.5 million is reached. The consolidated entity is forecasting for
revenue and eligible debtors to be of a sufficient level to maximise this facility during FY25.
Hydrix Ventures portfolio companies may achieve future liquidity events which may be subject to certain lock-up provisions. While liquidity
events are currently uncertain, they have the potential to provide realisable equity gains. The Board, will in due course, elect to hold or
liquidate in-full or in-part, equity venture investment positions of portfolio companies in support of growth initiatives and / or other working
capital purposes.
The budgeted cash flow forecast for the 12-month period from the date of signing of the financial statements supports the directors'
assertion the consolidated entity is a going concern. Budgets have been prepared based on assumptions about certain economic, operating
and trading performance achievement contingent on future events and actions yet to occur, and which may not necessarily occur. Should the
need arise, there are operating costs of the business that could be reduced if required. Whilst the directors believe the assumptions are best
estimate assumptions based upon information available, the occurrence and timing of future events are not certain.
Notes accompanying the
financial statements
for the year ended 30 June 2024
a) Basis of Preparation (continued)
b) Parent entity information
c) Principles of consolidation
d) Foreign currency translation
e) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Accordingly, the directors believe the consolidated entity will continue as a going concern and it is appropriate to adopt the going concern
basis in the preparation of the financial report.
The financial statements do not include any adjustments relating to amounts or classification of recorded assets or liabilities that might be
necessary should the consolidated entity not be able to continue as a going concern.
A liability is classified as current when: it is either expected to be settled in the company'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.
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.
The financial statements are presented in Australian dollars, which is Hydrix Limited's functional and presentation currency. Foreign
currency transactions are translated into the 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 year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Hydrix Limited ('company' or 'parent entity')
as at 30 June 2024 and the results of all subsidiaries for the year then ended. Hydrix 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.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other
comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by the
consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance.
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.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the company'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.
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 27.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 37
36
f) Impairment of assets
g) Goods and Services Tax ('GST') and other similar taxes
h) Investments and other financial assets
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Impairment of financial assets
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair
value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of
selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where
permitted. Fair value movements are recognised in profit or loss.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity intends to hold
for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised
cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's
assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
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.
At the end of each reporting period, the consolidated entity assesses whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources of information including dividends received from subsidiaries,
associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried
out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and value
in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in
profit or loss.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance
is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible
within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is
measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at
the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other
comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
Investments and 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.
Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
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.
Notes accompanying the
financial statements
for the year ended 30 June 2024
i) Financial liabilities
j) Fair value measurement of financial instruments
k) New or amended Accounting Standards and Interpretations adopted
l) New Accounting Standards and Interpretations not yet mandatory or early adopted
2
(i) Fair value measurement of non-cash consideration - revenue recognition
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
other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting
accounting judgements and estimates will seldom equal the 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 throughout the financial report.
The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the
lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed
in can be subjective.
The fair value of assets and liabilities classified as level 2 and level 3 are determined by the use of valuation models. These include discounted
cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.
All interest-related charges are included within finance costs or finance income.
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 adoption of these Accounting Standards and interpretations did not have any significant impact on the financial performance or position
of the consolidated entity.
The consolidated entity’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial
liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the consolidated entity designated a
financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial
liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than
derivative financial instruments that are designated and effective as hedging instruments).
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 2024. The consolidated entity's assessment of the
impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.
At the end of each reporting period, the consolidated entity updates the estimated transaction price (including updating its assessment of
whether an estimate of variable consideration is constrained) to represent faithfully the circumstances present at the end of the reporting
period and the changes in circumstances during the reporting period. The consolidated entity accounts for changes in the transaction price
by recognising as revenue, or as a reduction of revenue, amounts allocated to satisfied performance obligations, in the period in which the
transaction price changes.
To determine the transaction price for contracts in which a customer promises consideration in a form other than cash, the consolidated
entity measures the non-cash consideration (or promise of non-cash consideration) at fair value on contract inception date. The fair value of
non-cash consideration may vary because of the form of the consideration (for example, a change in the price of a share to which the
consolidated entity is entitled to receive from a customer). If the fair value of the non-cash consideration promised by a customer varies for
reasons other than only the form of the consideration (for example, the fair value could vary because of the consolidated entity’s
performance) the consolidated entity includes in the transaction price some or all of an amount of variable consideration estimated only to
the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is subsequently resolved.
Critical Accounting Estimates, Assumptions and Judgements
Hydrix Annual Report 2024
Hydrix Annual Report 2024 39
38
2
(ii) Share-based payment transactions
(iii) Impairment of assets
(iv) Recoverability of deferred tax assets
(v) Valuation of financial instruments at fair value through profit & loss
When the fair values of financial assets recorded in the statement of financial position cannot be measured based on quoted prices in active
markets, their fair value is measured using other valuation techniques and inputs. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
reported fair value of financial instruments. See Note 11 for further disclosures.
The consolidated entity assesses the fair value of options granted without market conditions by applying the Black-Scholes valuation model.
The use of this model requires management to make assumptions regarding key inputs such as risk free rate, share price volatility and time
to maturity. The fair value of options with market conditions are assessed by an independent third party using an appropriate valuation
model.
The consolidated entity assesses impairment at the end of each reporting period by evaluating conditions and events specific to the
consolidated entity that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use
calculations which incorporate various key assumptions.
The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill and
other non-financial assets have suffered any impairment. The recoverable amounts of cash-generating units have been determined based on
value-in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of
capital and growth rates of the estimated future cash flows. Refer to Note 10 for further discussion.
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible 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 or value-in-use
calculations, which incorporate a number of key estimates and assumptions. Refer to Note 10 for further disclosures.
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Critical Accounting Estimates, Assumptions and Judgements (continued)
Notes accompanying the
financial statements
for the year ended 30 June 2024
3
Identification of reportable operating segments
Operating Segment Information
Hydrix
Hydrix
Hydrix
Total
Services
Medical
Ventures
Unallocated
Operations
Consolidated - 2024
$
$
$
$
$
Hydrix Limited
Hydrix Services
Pty Ltd
Hydrix Limited
Hydrix
Services Pty
Ltd
Revenue
Revenue from contracts with customers
10,607,103
1,471
-
-
10,608,574
Total Segment revenue
10,607,103
1,471
-
-
10,608,574
Other Income
Interest income
-
-
-
22,265
22,265
Other income
84,974
457
-
-
85,431
Other income non-recurring
-
-
-
-
-
Total Segment income
10,692,077
1,928
-
22,265
10,716,270
EBITDA
(963,901)
(1,318,269)
(754)
(1,604,482)
(3,887,406)
Finance costs
(343,420)
(1,073)
-
(361,049)
(705,542)
Depreciation and amortisation expense
(518,590)
(418,586)
-
(133)
(937,309)
Write-back of receivables
50,283
-
-
-
50,283
Impairment of intangibles
-
(2,508,079)
-
-
(2,508,079)
Unrealised foreign exchange gain
51
-
1,746
-
1,797
Share based payment (expense) / reversal
(21,394)
(1,066)
-
147,496
125,036
(Loss) / gain on financial instruments at FVTP 11
-
-
(1,698,906)
1,275
(1,697,631)
Profit/(Loss) before income tax expense
(1,796,972)
(4,247,073)
(1,697,914)
(1,816,893)
(9,558,852)
Income tax (expense)/ benefit
-
-
-
-
-
(Loss) after income tax expense
(1,796,972)
(4,247,073)
(1,697,914)
(1,816,893)
(9,558,852)
Assets
Segment assets
3,683,861
41,862
-
-
3,725,723
Unallocated assets:
Cash and cash equivalents
-
-
-
914,274
914,274
Intangible assets
-
-
-
525,000
525,000
Hydrix Ventures investment portfolio
-
-
3,416,120
-
3,416,120
Other assets
-
-
-
43,357
43,357
Total assets
3,683,861
41,862
3,416,120
1,482,631
8,624,474
Liabilities
Segment liabilities
6,627,669
78,619
-
-
6,706,288
Unallocated liabilities:
Borrowings
-
-
-
4,442,556
4,442,556
Other liabilities
-
-
-
830,724
830,724
Total liabilities
6,627,669
78,619
-
5,273,280
11,979,567
Operating Segments
The consolidated entity is organised into three operating segments based on the internal reports that are reviewed and used by the Board
of Directors [who are identified as the Chief Operating Decision Makers ('CODM')] in assessing performance and in determining the
allocation of resources. There is no aggregation of 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 CODM, who are responsible for the allocation of resources to operating segments and assessing their performance.
The consolidated entity's operations are in five geographical locations, being Australia, Singapore, New Zealand, Europe and USA.
Note
Hydrix Annual Report 2024
Hydrix Annual Report 2024 41
40
3
Hydrix
Hydrix
Hydrix
Total
Note
Services
Medical
Ventures
Unallocated
Operations
Consolidated - 2023
$
$
$
$
$
Hydrix Limited
Hydrix Services
Pty Ltd
Hydrix Limited
Hydrix
Services Pty
Ltd
Revenue
Sales to external customers Revenue from ordi
13,155,048
1,524
-
-
13,156,572
Total Segment revenue
13,155,048
1,524
-
-
13,156,572
Other Income
Interest income
-
-
-
36,508
36,508
Other income
115,621
301
-
-
115,922
Other income non-recurring
812,480
-
-
-
812,480
Total Segment income
14,083,149
1,825
-
36,508
14,121,482
EBITDA
1,797,915
(1,438,706)
(39,034)
(1,716,557)
(1,396,382)
Finance costs
(302,240)
(156)
-
(146,835)
(449,231)
Depreciation and amortisation expense
(708,908)
(606,384)
-
(223)
(1,315,515)
Impairment of receivables
(60,457)
-
-
-
(60,457)
Impairment of intangibles
-
(522,939)
-
-
(522,939)
Gain on contingent consideration
-
2,952,030
-
-
2,952,030
Unrealised foreign exchange gain / (loss)
2,102
(48,851)
72,665
-
25,916
Share based payment expenses
(43,666)
(932)
-
(215,534)
(260,132)
Gain on financial instruments at FVTPL
11
-
-
522,464
107,320
629,784
Profit/(Loss) before income tax expense
684,746
334,062
556,095
(1,971,829)
(396,926)
Income tax (expense)/ benefit
-
-
-
-
-
(Loss) after income tax expense
684,746
334,062
556,095
(1,971,829)
(396,926)
Assets
Segment assets
4,963,011
3,012,156
-
-
7,975,167
Unallocated assets:
Cash and cash equivalents
-
-
-
1,153,080
1,153,080
Intangible assets
-
-
-
525,000
525,000
Hydrix Ventures investment portfolio
-
-
4,893,787
-
4,893,787
Other assets
-
-
-
30,273
30,273
Total assets
4,963,011
3,012,156
4,893,787
1,708,353
14,577,307
Liabilities
Segment liabilities
5,993,711
129,655
-
-
6,123,366
Unallocated liabilities:
Borrowings
-
-
-
1,750,000
1,750,000
Other liabilities
-
-
-
351,054
351,054
Total liabilities
5,993,711
129,655
-
2,101,054
8,224,420
Operating Segments (continued)
Unallocated EBITDA and expenses includes the provision of corporate overheads not fully allocated to an operating segment.
Notes accompanying the
financial statements
for the year ended 30 June 2024
4
Revenue
2024
2023
Revenue from contracts with customers
$
$
Project revenue – services
9,924,380
12,308,331
Project revenue – materials
682,723
846,717
Project revenues
10,607,103
13,155,048
Sales of Avertix Guardian System Consumables
1,471
1,524
Total revenue from contracts with customers
10,608,574
13,156,572
Other income:
Research and development tax incentive
-
67,470
Government grant
-
28,000
Profit on disposal of fixed assets
457
-
Other income
84,974
20,452
85,431
115,922
Other income - non recurring:
Release of credit for services
-
812,480
-
812,480
Total other income
85,431
928,402
Total income from operations
10,694,005
14,084,974
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Timing of revenue recognition
Goods transferred at a point in time
1,471
1,524
Services & materials transferred over time
10,607,103
13,155,048
10,608,574
13,156,572
Geographical Regions
Australia
2,910,986
5,756,909
Europe
5,270,513
5,798,762
North America
2,346,481
1,451,514
Singapore
1,471
1,524
Other
79,123
147,863
10,608,574
13,156,572
Major customers disclosure
The nature of the Hydrix Services business is that it enters into a mix of short-term and long-term contracts with key customers. Five
customers each contributed more than 10% of the consolidated entity's total revenue.
The consolidated entity attributes project revenues from external customers to geographical regions based on the domicile of the parent
entity, or in the case of Hydrix Medical products, where the goods are transferred.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 43
42
4
Accounting Policy - Revenue recognition & other income
Revenue from contracts with customers
(i)
(ii) Product sales revenue
The consolidated entity provides a comprehensive range of engineering and product development services, including software, electronics,
mechanical, industrial design, and general product development services through its Hydrix Services segment. Due to the high degree of
interdependence between the various elements of these projects, they are accounted for as a single performance obligation.
For project contracts under a fixed fee basis, to depict the progress by which the consolidated entity transfers control of the services to the customer,
and to establish when and to what extent revenue can be recognised, the consolidated entity measures its progress towards complete satisfaction of
the performance obligation by comparing actual input costs (labour hours and materials) spent to date with the total estimated costs required to
complete the project. The percentage completion basis provides the most accurate depiction of the transfer of goods and services to each customer
due to the consolidated entity's ability to make reliable estimates of the total number of costs required to complete the project. At the end of each
reporting period, progress towards complete satisfaction of the performance obligation is remeasured.
For project contracts under a time and materials basis, project revenue is recognised based on the actual input labour and materials incurred over
time as this is when the consolidated entity transfers control of the services to the customer, and therefore represents when the performance
obligation is fulfilled.
Customers are invoiced monthly as work progresses. Any amounts remaining unbilled at the end of a reporting period are presented in the statement
of financial position as Contract assets as only the passage of time is required before payment of these amounts will be due. When payments received
from customers exceed revenue recognised to date on a particular contract, any excess is reported in the statement of financial position as Contract
liabilities.
Revenue (continued)
Hydrix Medical distributes cardio-vascular technology products under exclusive distribution agreements. Revenue is recognised at the point in time
that the customer takes control of the product sold, as this represents when the performance obligation is fulfilled.
In some instances, Hydrix Medical has established sub-distribution agreements with partners located in the jurisdiction that the sales will occur. In
these instances, the sub-distributor is considered the customer for revenue recognition purposes, and revenue is recognised when control of the
product is transferred to them.
Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration received or receivable.
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
initially recognised as deferred revenue in the form of a separate refund liability.
Project revenue
Revenue is recognised over time 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.
Notes accompanying the
financial statements
for the year ended 30 June 2024
4
Accounting Policy - Revenue recognition & other income (continued)
Other income
(i) Research and development tax incentive
(ii) Government grant
(iii)
5
Expense
2024
2023
(Loss) before income tax includes the following specific expenses:
$
$
Employee benefits expenses
Salaries, wages and leave entitlements
9,358,082
9,305,945
Defined contribution superannuation expense
969,114
983,329
Employee on-costs
528,745
467,962
Employee training and development
100,780
154,371
Total employee benefits expenses
10,956,721
10,911,607
Depreciation
Plant and equipment
36,883
11,347
Computer equipment
20,752
66,709
Leasehold improvements
60,338
58,968
Right-of-use asset
368,010
461,458
485,984
598,482
Amortisation
Software - including CHEF Framework
39,862
124,795
Distribution rights
411,463
592,238
451,325
717,033
Total depreciation and amortisation expense
937,309
1,315,515
Finance costs
Interest expense on lease liabilities
223,231
280,896
Interest on loans and borrowing costs
482,311
168,335
Total finance costs
705,542
449,231
Gain on financial instruments at fair value through profit or loss
Gain on derivatives
1,275
107,320
(Loss) / gain on financial assets
(1,698,906)
522,464
(1,697,631)
629,784
Revenue (continued)
R&D tax incentives will be recognised in profit before tax (in EBIT) during the period in which they are received from the Australian Taxation Office.
Government grant represents receipts under the Export Market Development Grant (EMDG). Government grants are recognised in the financial
statements at their fair values when there is a reasonable assurance that the Group will comply with the requirements and that the grant will be
received.
Other income
Other income is recognised when it is received or when the right to receive payment is established.
Interest income
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.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 45
44
5
2024
2023
$
$
Other expenses
Consultancy charges
206,886
293,831
Corporate advisory transaction costs
3,858
499
Directors' fees
257,338
289,529
Insurance
235,963
201,837
IT related expenses
440,140
420,546
Legal and professional charges
249,403
325,331
Listing fees and share register maintenance
76,182
91,858
Recruitment fees
75,919
357,769
Regulatory and reimbursement costs
136,459
98,034
Travelling costs
255,042
250,900
Administration expenses
439,798
469,142
Total other expenses
2,376,988
2,799,276
Accounting Policy - Expenses
Amortisation
Depreciation
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Finance costs
6
2024
2023
(a) Income tax benefit
$
$
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax expense
9,558,852
396,926
Tax at the statutory tax rate of 25% (2023: 25%)
2,389,713
99,232
25.00%
Temporary differences not brought to account
(536,030)
142,720
Share based payments
31,259
(65,033)
R&D tax incentive income - non assessable
-
16,868
Effect of release of contingent consideration
-
729,886
Effect of impairment of distribution rights
(627,020)
(130,735)
Deferred Tax Asset (DTA) on tax losses not brought to account
(1,257,922)
(792,937)
Income tax (expense) / benefit
-
-
Expenses (continued)
Income Taxes
Tax effect amounts which are not (deductible) / taxable in calculating taxable income:
All finance costs are expensed in the period in which they are incurred.
The amortisable amount of all intangible assets is amortised on a straight-line basis over the period of their expected benefit to the consolidated
entity commencing from the time the asset is recognised.
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over the asset's useful life to the consolidated entity
commencing from the time the asset is held ready for use.
Notes accompanying the
financial statements
for the year ended 30 June 2024
6
(b) Deferred tax assets
The balance comprises temporary differences attributable to:
Allowance for expected credit losses
4,246
16,816
Provision for annual leave
205,166
146,262
Provision for long service leave
152,555
126,846
Provision for obsolete inventory
-
3,571
Financial assets at fair value through profit & loss
145,507
-
Derivative liability
-
319
Lease liability
563,628
590,595
Accruals
214,694
113,833
Lease make-good provision
43,513
44,343
1,329,309
1,042,585
(c) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Contract assets
93,459
86,540
Financial assets at fair value through profit & loss
-
276,706
Intangible assets
440,141
419,661
533,600
782,907
(d) Net deferred tax assets / (liabilities)
Net deferred tax assets / (liabilities) not recognised
795,709
259,678
795,709
259,678
(e) Deferred tax assets not brought to account at reporting date
Operating losses
10,033,007
9,092,436
Capital losses
71,248
71,248
10,104,255
9,163,684
The deferred tax asset not brought to account will only be obtained if:
(a) future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
(b) the conditions for deductibility imposed by tax legislation continue to be complied with; and
(c) the company is able to meet the continuity of business and or continuity of ownership tests
Income Taxes (continued)
Hydrix Annual Report 2024
Hydrix Annual Report 2024 47
46
6
Accounting Policy - Income tax
7
2024
2023
$
$
Cash at bank
914,274
1,153,080
914,274
1,153,080
Reconciliation to cash and cash equivalents at the end of the financial year
Balances as above
914,274
1,153,080
Balance as per statement of cash flows
914,274
1,153,080
Accounting Policy - Cash and cash equivalents
The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement
of cash flows as follows:
Income Taxes (continued)
Cash and cash equivalents
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, associates or joint ventures, and the timing of the reversal can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
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.
Hydrix 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 the subsidiaries 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.
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.
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.
Notes accompanying the
financial statements
for the year ended 30 June 2024
8
2024
2023
Current
$
$
Trade receivables
1,159,345
2,431,785
Less: Allowance for expected credit losses
(16,982)
(67,265)
1,142,363
2,364,520
GST receivable
19,471
46,444
Other receivables
11,561
17,706
1,173,395
2,428,670
Allowance for expected credit losses
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
2024
2024
2024
2024
Consolidated
%
$
$
$
Not overdue
0.3%
635,682
2,142
633,540
0 to 3 months overdue
0.6%
467,004
2,647
464,357
3 to 6 months overdue
7.5%
5,729
431
5,298
Over 6 months overdue
23.1%
50,930
11,762
39,168
1,159,345
16,982
1,142,363
Accounting Policy - Trade and other receivables
9
2024
2023
Plant and equipment
$
$
At cost
178,948
196,310
Less accumulated depreciation
(140,611)
(104,285)
38,337
92,025
Computer equipment
At cost - Computer equipment
402,980
373,225
Less accumulated depreciation - Computer equipment
(359,807)
(340,120)
43,173
33,105
Leasehold improvements
At cost - furniture and fixtures
432,568
432,568
Less accumulated depreciation - furniture and fixtures
(309,833)
(249,495)
122,735
183,073
204,245
308,203
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.
The consolidated entity has recognised a write back of $50,283 in profit or loss in respect of the expected credit losses for the year ended
30 June 2024 (30 June 2023: impairment of $60,457).
Trade and other receivables
Plant and Equipment
Expected credit
loss rate
Allowance for
expected
credit losses
Gross carrying
amount
Net carrying
amount
Hydrix Annual Report 2024
Hydrix Annual Report 2024 49
48
9
Reconciliations
Plant &
Computer
Leasehold
Equipment
Equipment
Improvements
Total
$
$
$
$
Balance as at 1 July 2022
91,507
55,829
222,978
370,314
Additions
11,865
43,985
19,063
74,913
Disposals
-
-
-
-
Depreciation expense
(11,347)
(66,709)
(58,968)
(137,024)
Balance as at 30 June 2023
92,025
33,105
183,073
308,203
Balance as at 1 July 2023
92,025
33,105
183,073
308,203
Additions
3,560
10,463
-
14,022
Transfers (at WDV)
(20,364)
20,364
-
-
Disposals
-
(8)
-
(8)
Depreciation expense
(36,883)
(20,752)
(60,338)
(117,973)
Balance as at 30 June 2024
38,337
43,173
122,735
204,245
Accounting Policy - Plant and equipment
The useful lives adopted for each class of depreciable assets are:
Class of Fixed Asset
Useful lives
Plant and equipment
2 to 5 years
Computer equipment
3 to 4 years
Leasehold improvements
Over the initial period of the lease
Management reviews its estimate of useful lives and residual values of depreciable assets at each reporting date, based on the expected benefit from
these assets.
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. In the event the carrying amount of plant and equipment is greater than the estimated recoverable
amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised in profit or
loss.
A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of impairment). The
carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
An item of 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.
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Plant and Equipment (continued)
Notes accompanying the
financial statements
for the year ended 30 June 2024
10
2024
2023
$
$
Distribution rights (i)
4,459,426
4,459,426
Less: Accumulated amortisation (ii)
(1,428,408)
(1,016,945)
Less: Accumulated impairment
(3,031,018)
(522,939)
-
2,919,542
Brand name
525,000
525,000
525,000
525,000
Software - including CHEF Framework
3,099,003
3,059,141
Less: Accumulated amortisation (iii)-
(3,099,003)
(3,059,141)
-
-
525,000
3,444,542
Reconciliations
Distribution
rights
Brand name
Software
including
CHEF
Total
$
$
$
$
Balance as at 1 July 2022
4,034,719
525,000
-
4,559,719
Additions
-
-
124,795
124,795
Impairment expense
(522,939)
-
-
(522,939)
Amortisation expense
(592,238)
-
(124,795)
(717,033)
Balance as at 30 June 2023
2,919,542
525,000
-
3,444,542
Balance as at 1 July 2023
2,919,542
525,000
-
3,444,542
Additions
-
-
39,862
39,862
Impairment expense
(2,508,079)
-
-
(2,508,079)
Amortisation expense
(411,463)
-
(39,862)
(451,325)
Balance as at 30 June 2024
-
525,000
-
525,000
Impairment testing
2024
2023
Brand Name
$
$
Group (Hydrix Services & Hydrix Medical)
525,000
525,000
525,000
525,000
Brand Name and Distribution rights have been allocated to the following cash-generating units, or group of cash generating units:
The brand name is considered a corporate asset as it does not generate cash flows independently of other assets and its carrying amount
cannot be allocated on a reasonable and consistent basis across identified CGUs. For impairment testing purposes, the carrying amount of
the brand name is compared to the recoverable amount of the group of CGUs (ie: Hydrix Services and Hydrix Medical). Key assumptions
are those to which the recoverable amount of an asset or cash-generating units is most sensitive and are listed in the tables below.
Intangible assets
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
As a definite life intangible asset, the distribution rights are not required to be tested for impairment unless indicators of impairment are
present. Given challenges in securing significant sales of the Avertix Guardian, an indicator for impairment was identified and impairment
testing was conducted in the current year.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 51
50
10
2024
2023
Distribution Rights (i)
$
$
Hydrix Medical
AngelMed Guardian System Distribution Rights
-
2,919,542
-
2,919,542
Impairment of Distribution rights
Sensitivity
(a)
Intangible assets (continued)
The business has existing capacity to deliver increased
revenues without adding significant costs.
Management's estimate also takes into account the
prevailing interest rate and efforts to contain costs
Per forecast
Revenue Growth Rates – FY 2025 onwards
25%
5 years as per recommended length of time per
AASB136
Base rate entity company tax rate
Years Forecasted
Expenditure Growth Rates – FY 2025
The following key assumptions were used in the discounted cash flow model for the Hydrix Services division:
5% p.a annual average growth
The consolidated entity's strategy is expected to
continue to increase both the scale of the services
business and generate other revenue streams in a
consistent and sustainable manner
9% p.a annual average growth
Revenue Growth Rates – FY 2026 onwards
Based on existing contracts and proposals in various
stages of negotiation
Rationale
Item
Assumption
Per forecast
In line with expected margins
Expenditure Growth Rates – FY 2026
onwards
Tax Rate
Average working capital required
12% of revenues
Working Capital
5 years plus terminal period
Management’s estimate of the Group’s weighted
average cost of capital, the risk free rate and the
volatility of the share price relative to market
movements, also incorporating other risks specific to
the entity and the forecast cashflows
17.5% pre-tax
Discount Rate
As disclosed in note 2, the directors have made judgements and estimates in respect of impairment testing. Unfavourable changes in these
assumptions would result in a reduction in the recoverable amount and possibly result in impairment. The below discusses the sensitivity of
the recoverable amount to changes in key assumptions.
Taking into consideration sales during the past two years, management deemed it prudent to recognise a further $1.2 million provision for
impairment at 30 June 2024, in addition to the provision recognised in the 31 December 2023 half year accounts. The fair value has been
provisioned down to a nil value. The business has successfully achieved regulatory approvals to market and distribute the Guardian in
Singapore, Malaysia and Thailand. Management is actively pursuing reimbursement for the device and the procedure in Singapore and is
also exploring other strategic initiatives to unlock value.
The directors believe that other reasonable changes in the key assumptions on which the recoverable amount of the consolidated entity's
Brand Name is based on would not cause the cash-generating unit’s carrying amount to exceed its recoverable amount.
In relation to the Brand Name, the sensitivities are as follows:
Revenue and cost of sales would need to decrease to 3.71% CAGR over the forecast period for the Group of cash generating units before
Brand Name would need to be impaired, with all other assumptions remaining constant.
Notes accompanying the
financial statements
for the year ended 30 June 2024
10
11
2024
2023
$
$
Listed ordinary shares
7,072
14,202
Unlisted ordinary shares
3,408,314
4,601,394
Unlisted ordinary options
734
734
Convertible Note
-
277,457
3,416,120
4,893,787
Reconciliation
Total
$
$
$
$
$
Opening fair value as at 1 July 2022
3,500,726
16,165
20,751
301,821
3,839,463
Additions (i) (ii) (iii)
432,582
-
10,000
-
442,582
Interest accrued
-
-
-
16,613
16,613
Fair value increments/(decrements)
595,421
(15,431)
(16,549)
(40,977)
522,464
Fair value increments/(decrements) due to FX
72,665
-
-
-
72,665
Closing fair value as at 30 June 2023
4,601,394
734
14,202
277,457
4,893,787
Opening fair value as at 1 July 2023
4,601,394
734
14,202
277,457
4,893,787
Additions (iv)
211,185
-
-
-
211,185
Interest accrued
-
-
-
8,307
8,307
Fair value increments/(decrements)
(1,668,871)
-
(7,130)
(22,905)
(1,698,906)
Fair value increments/(decrements) due to FX
1,746
-
-
-
1,746
Transfers (v)
262,859
(262,859)
-
Closing fair value as at 30 June 2024
3,408,314
734
7,072
-
3,416,120
Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below:
Intangible assets (continued)
Financial instruments at fair value through profit & loss
Listed ordinary
shares
Unlisted
ordinary
Convertible
Note
Unlisted
ordinary
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the
acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are
subsequently measured at cost less any impairment. 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.
Distribution Rights
The acquired distribution rights have been measured based on the cost of shares issued and fair value of the contingent considerations on acquisition
date. The distribution rights have an amortisation period of 7 years commencing 1 November 2021.
Brand Name
The Hydrix brand name is thought to have an indefinite life and is not amortised. Instead, the brand is tested annually for impairment, or more
frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.
Impairment losses on the brand are taken to profit or loss are are not subsequently reversed.
Software (including CHEF)
Significant costs associated with the Common Hydrix Embedded Framework (CHEF) software are deferred and amortised on a straight-line basis
over a period of between 1 to 5 years.
Accounting Policy - Intangible assets
Hydrix Annual Report 2024
Hydrix Annual Report 2024 53
52
11
(i)
(ii)
(iii)
(iv)
(v)
Accounting Policy - Financial instruments at fair value through profit & loss
Level 1
Level 2
Level 3
Total
30 June 2024
$
$
$
$
Financial assets
Listed securities
7,072
-
-
7,072
Unlisted options in Memphasys Limited
-
734
-
734
Investment in Avertix Medical Inc
-
-
139,983
139,983
Investment in Cyban Pty Ltd
-
-
950,250
950,250
Investment in Gyder Surgical Pty Ltd
-
-
2,318,082
2,318,082
Total financial assets recognised at fair value
7,072
734
3,408,314
3,416,120
Level 1
Level 2
Level 3
Total
30 June 2023
$
$
$
$
Financial assets
Listed securities
14,202
-
-
14,202
Unlisted options in Memphasys Limited
-
734
-
734
Investment in Avertix Medical Inc
-
-
1,885,410
1,885,410
Investment in Cyban Pty Ltd
-
-
950,250
950,250
Investment in Gyder Surgical Pty Ltd
-
-
1,765,734
1,765,734
Gyder Surgical Pty Ltd convertible note
-
-
277,457
277,457
Total financial assets recognised at fair value
14,202
734
4,878,851
4,893,787
Financial liabilities
Embedded derivative liability
-
1,275
-
1,275
Total financial liabilities recognised at fair value
-
1,275
-
1,275
During September 2023, exercised options for 4,446 ordinary shares in Gyder Surgical Pty Ltd valued at $211,185. The options were
exercised in lieu of a trade debtor balance with Gyder Surgical Pty Ltd, and there was no cash transaction as part of the exercise.
During September 2022, the consolidated entity acquired 499,999 ordinary shares in Memphasys Limited (ASX: MEM) for $10,000.
Financial instruments at fair value through profit & loss (continued)
During December 2023, convertible notes held in Gyder Surgical Pty Ltd reached maturity and were converted to 5,377 ordinary shares
valued at $262,859.
All assets and liabilities, measured at fair value, are classified using a three level hierarchy, based on the lowest level of input that is significant to the
entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair
value and therefore which category the asset or liability is placed in can be subjective. Refer to note 1(j) for further information on fair value
measurement.
During February 2023, the consolidated entity received 5,930 ordinary shares in Gyder Surgical Pty Ltd valued at $216,291.
The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis at 30
June 2024 and 30 June 2023.
During June 2023, the consolidated entity received 5,930 ordinary shares in Gyder Surgical Pty Ltd valued at $216,291.
Notes accompanying the
financial statements
for the year ended 30 June 2024
11
Embedded derivative liability (Level 2)
Investment in Memphasys Limited (Options) (Level 2)
Gyder Surgical Pty Ltd convertible note (Level 3)
Investment in Gyder Surgical Pty Ltd (Level 3)
Investment in Cyban Pty Ltd (Level 3)
Investment in Avertix Medical, Inc. (Level 3)
12
2024
2023
$
$
Trade payables
415,444
312,775
Superannuation payable
221,944
183,934
Liabilities to tax authorities
991,637
740,215
Other payables
41,441
14,735
Accrued liabilities
559,463
255,681
2,229,929
1,507,340
Accounting Policy - Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are
unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid
within 30 - 60 days of recognition.
There were no transfers between Level 1, Level 2, and Level 3 during the twelve month period to 30 June 2024. The valuation techniques
used for instruments categorised in Levels 2 and 3 are described below:
A Black-Scholes model has been used as a valuation technique to value the embedded derivative liability.
A Black-Scholes model has been used as a valuation technique to value the unlisted options in Memphasys Limited (ASX: MEM).
Management determined the fair value of this investment by reference to the number of notes held and the face value of each note.
For the Level 3 Financial Assets listed above, the unlisted share price of the entities is the only significant input to the valuations.
Management determined the fair value of this investment by reference to a capital raise in September 2020 and an external valuation
performed during April 2024.
Management determined the fair value of this investment by reference to the issue price achieved during its last capital raise that
completed in August 2023.
Management determined the fair value of this investment by reference to the issue price achieved during its last capital raise that
completed in August 2024.
Trade and other payables
Financial instruments at fair value through profit & loss (continued)
Hydrix Annual Report 2024
Hydrix Annual Report 2024 55
54
13
2024
2023
Contract assets
$
$
Current
373,836
346,161
2024
2023
Consolidated
$
$
Within 6 months
373,836
346,161
6 to 12 months
-
-
12 to 18 months
-
-
18 to 24 months
-
-
373,836
346,161
2024
2023
Contract liabilities
$
$
Current
499,131
711,036
Unsatisfied performance obligations
2024
2023
Consolidated
$
$
Within 6 months
499,131
711,036
6 to 12 months
-
-
12 to 18 months
-
-
18 to 24 months
-
-
499,131
711,036
Accounting Policy - Contract assets and contract liabilities
14
2024
2023
Current
$
$
Annual leave
820,663
585,046
Long service leave
351,043
327,393
Other employee benefits
36,858
-
1,208,564
912,439
Non - current
Long service leave (NC)
259,176
179,992
259,176
179,992
Accounting Policy - Employee benefits
Long service leave
The liability for long service leave is recognised in the provision for long service leave and 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
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Contract assets
Contract assets are recognised when the consolidated entity has transferred goods or services to the customer but where an unconditional right to
consideration is yet to be established, less any allowance for expected credit losses.
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 before the consolidated entity has transferred the goods or services to the customer.
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the reporting
period was $499,131 (30 June 2023: $711,036) and is expected to be recognised as revenue in future periods as follows:
The value of contract assets at the end of the reporting period was $373,836 (30 June 2023: $346,161) and is expected to be invoiced in
future periods as follows:
Contract assets and contract liabilities
Employee benefits
Wages and salaries and annual leave
Liabilities for wages and salaries and annual leave which are expected to be settled within 12 months of the reporting date and which the entity does
not have a conditional right to defer settlement beyond 12 months, are recognised as part of provisions in respect of employees’ service up to the
reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Notes accompanying the
financial statements
for the year ended 30 June 2024
15
2024
2023
Non - current
$
$
Lease make-good provision
174,050
177,371
174,050
177,371
Lease make-good provision
Movements in provisions
2024
2023
Consolidated
$
$
Carrying amount at the start of the year
177,371
173,760
Adjustment on Lease Variation
(9,552)
-
Unwinding of discount
6,231
3,611
Carrying amount at the end of the year
174,050
177,371
Accounting Policy - Provisions
16
2024
2023
Current
$
$
Shareholder loans - Unsecured C
1,250,000
750,000
TP24 CreditLine - Secured
797,996
575,000
Insurance Premium Funding
110,096
44,003
AMEX Credit Card
132,555
-
2,290,647
1,369,003
Non-Current
Convertible Notes
3,060,000
-
Shareholder loans - Unsecured
-
1,000,000
3,060,000
1,000,000
Total unsecured borrowings
Refer to note 23 for further information on financial instruments.
An unsecured loan facility of $500,000 with a 11% p.a. interest rate has been provided by a major shareholder. As at 30 June 2024, this loan
was fully drawn. The loan is repayable on 31 December 2024.
A separate unsecured loan facility of $500,000 with a 10% p.a. interest rate (plus 1% facility fee) has been provided by a major shareholder.
As at 30 June 2024, this loan was fully drawn. The loan is repayable on 31 December 2024.
The provision represents the present value of the estimated costs to make-good the Mulgrave premises leased by the consolidated entity
expiring in December 2028. The calculation of this provision requires assumptions such as application of closure dates and cost estimates.
The provision recognised is periodically reviewed and updated based on the facts and circumstances available at the time.
Movements in the lease make-good provision during the current financial year are set out below:
Borrowings
An unsecured loan facility of $250,000 with a 8% p.a. interest rate has been provided by a shareholder. As at 30 June 2024, this loan was
fully drawn.
Provisions
A provision is recognised in the statement of financial position when the consolidated entity has a present legal or constructive obligation as a result
of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 57
56
16
Financing arrangements
2024
2023
Total facilities
$
$
Shareholder loans
1,250,000
1,750,000
Convertible Notes
3,060,000
-
TP24 CreditLine
805,197
855,838
AMEX Credit Card
133,000
300,000
5,248,197
2,905,838
Used at the reporting date
Shareholder loans
1,250,000
1,750,000
Convertible Notes
3,060,000
-
TP24 CreditLine
797,996
575,000
AMEX Credit Card
132,555
-
5,240,551
2,325,000
Unused at the reporting date
TP24 CreditLine
7,201
280,838
AMEX Credit Card
445
300,000
7,646
580,838
Accounting Policy - Borrowings
17
2024
2023
Share price at measurement date
N/A
$0.03
Expected volatility
N/A
92.12%
Dividend yield
N/A
0.00%
Risk-free interest rate
N/A
3.30%
Carrying amount of liability
-
$1,275
Derivative liabilities
Borrowings (continued)
The fair value of the embedded derivative liability was determined using the Black-Scholes model using
the following inputs:
In December 2019, 1 Warrant was issued to Pure Asset Management as interest consideration on the borrowings. The warrant, with
8,000,000 shares attached, have an exercise price of $0.10 and expiry date of 17 December 2023.
Unrestricted access was available at the reporting date to the following lines of credit:
Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of the liability for at least
12 months after balance date. Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Notes accompanying the
financial statements
for the year ended 30 June 2024
18
Within
one year
One to
five years
After
five years
Total
$
$
$
$
Lease payments
868,601
1,860,172
-
2,728,773
2024
2023
Lease liabilities
$
$
Current
675,864
855,149
Non-current
1,578,647
1,507,233
2,254,511
2,362,382
Accounting Policy - Lease payments
Set out below are the carrying amounts of the consolidated entity’s right-of-use assets:
2024
2023
$
$
Right-of-use assets
3,449,405
2,999,477
Accumulated depreciation on Right-of-use assets
(2,213,842)
(1,845,832)
1,235,563
1,153,645
Reconciliations
Total
$
Balance as at 1 July 2022
1,615,103
Depreciation expense
(461,458)
Balance as at 30 June 2023
1,153,645
Balance as at 1 July 2023
1,153,645
Increase in right-of-use asset due to lease variation
449,928
Depreciation expense
(368,010)
Balance as at 30 June 2024
1,235,563
Reconciliations of the written down values of right-of-use assets at the beginning and end of the current and previous financial year are set out
below:
Leasing
The consolidated entity leases an office building. The lease liability is secured by the related underlying right-of-use asset. The maturity
analysis of lease payments at 30 June 2024 were as follows:
In addition, during prior periods the consolidated entity and its landlord agreed to rent concessions as a direct consequence of the COVID-
19 pandemic. The deferred rent arising is payable in equal monthly instalments during the period from 1 February 2022 to 31 December
2025. These have been accounted for in line with AASB 16 within the lease liability and right-of-use asset, as part of the variation.
During the year, the consolidated entity and its landlord agreed to a lease variation that extended the lease term from 31 December 2025
to 31 December 2028, with a reduction in the total floor space being rented from 1 January 2026 and adjustment to market rate rent. As
part of the agreement, the landlord granted the consolidated entity a 3 month rental deferral from 1 January 2024 to 31 March 2024, that
is payable in equal monthly instalments from 1 July 2024 to 31 December 2025.
Maturity analysis
An assessment is made at contract inception as to whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
Property
The consolidated entity has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for
leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not
permitted to be recognised as lease liabilities and are expensed as incurred.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 59
58
19
2024
2023
2024
2023
Shares
Shares
$
$
a) Ordinary shares - fully paid
254,218,847
254,218,847
102,126,684
102,126,684
Movements in ordinary share capital
Date
Shares
Issue price
$
Balance
1-Jul-23
254,218,847
102,126,684
No share capital issued in the period
Balance
30-Jun-24
254,218,847
102,126,684
Ordinary shares
b) Unlisted options issued
Options
At 1 July 2022
3,350,078
- Options which expired unexercised
(359,750)
- Options issued under the LTIP
705,152
- Options forfeited on failure to meet vesting conditions
(228,690)
At the end of the reporting period - 30 June 2023
3,466,790
At 1 July 2023
3,466,790
- Options which expired unexercised
(393,380)
- Options issued under the LTIP
1,373,000
- Options issued to Lead Manager on Convertible Note issue
920,000
- Options forfeited on failure to meet vesting conditions
(76,065)
At the end of the reporting period - 30 June 2024
5,290,345
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the
number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited
amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one
vote.
Equity - issued capital
Consolidated
Notes accompanying the
financial statements
for the year ended 30 June 2024
19
c) Listed options issued
At 1 July 2022
47,188,132
- Options issued
50,465,823
- Options exercised
(7,220)
- Options which expired unexercised
(18,900,912)
At the end of the reporting period - 30 June 2023
78,745,823
At 1 July 2023
78,745,823
- Options which expired unexercised
(78,745,823)
At the end of the reporting period - 30 June 2024
-
d) Performance rights issued
At 1 July 2022
5,500,000
- Performance rights exercised
(468,750)
- Performance rights forfeited on failure to meet vesting conditions
(531,250)
At the end of the reporting period - 30 June 2023
4,500,000
At 1 July 2023
4,500,000
- Performance rights forfeited on failure to meet vesting conditions
(4,025,000)
At the end of the reporting period - 30 June 2024
475,000
Refer to note 30 for share based payments in the current period.
Capital risk management
Accounting Policy - Issued capital
Ordinary shares
Equity - issued capital (continued)
The Board controls the capital of the consolidated entity in order to maintain a sustainable debt to equity ratio, generate long-term
shareholder value and ensure that the consolidated entity can fund its operations and continue as a going concern. The consolidated
entity’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally
imposed capital requirements. Management effectively manages the consolidated entity’s capital by assessing the consolidated entity's
financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the
management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the consolidated entity since the prior year.
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.
Performance
rights
Hydrix Annual Report 2024
Hydrix Annual Report 2024 61
60
20
2024
2023
$
$
Share based payments reserve
386,859
687,129
Foreign currency translation reserve
(33,101)
(9,009)
353,758
678,120
Movement in reserves
Contingent
Share based
consideration
payments
Other
Total
equity reserve
reserve
reserves
Reserves
$
$
$
$
Balance at 30 June 2022
825,000
612,100
(6,253)
1,430,847
Share based payments
-
260,132
-
260,132
Options which expired unexercised
-
(63,822)
-
(63,822)
Performance rights exercised
-
(88,281)
-
(88,281)
Performance rights forfeited failing vesting conditions
-
(33,000)
-
(33,000)
Contingent equity consideration (i)
(825,000)
-
-
(825,000)
Movement in functional currency of foreign operations
-
-
(2,756)
(2,756)
Balance at 30 June 2023
-
687,129
(9,009)
678,120
Share based payments
-
(125,036)
-
(125,036)
Options which expired unexercised
-
(72,484)
-
(72,484)
Performance rights forfeited failing vesting conditions
-
(102,750)
-
(102,750)
Movement in functional currency of foreign operations
-
-
(24,092)
(24,092)
Balance at 30 June 2024
-
386,859
(33,101)
353,758
(i)
Equity - reserves
Consolidated
Movement in each class of reserve during the current and previous financial year are set out below:
During the year, the dates by which the contingent consideration milestones were to be achieved and payment to become payable were
passed without the criteria being met. At 30 June 2023 there was no longer a present obligation, and so the equity held in this reserve was
recycled through Accumulated Losses.
Notes accompanying the
financial statements
for the year ended 30 June 2024
20
Accounting Policy - Equity reserves
Share based payments reserve
Contingent consideration equity reserve
Foreign currency translation reserve
21
2024
2023
$
$
Accumulated losses at the beginning of the financial year
(96,451,917)
(96,976,812)
Loss after income tax expense for the year
(9,558,852)
(396,926)
Transfer from options reserve to account for expired options
72,484
63,822
Transfer from options reserve to account for options that failed to vest
102,750
33,000
Transfer from contingent consideration equity reserve
-
825,000
Accumulated losses at the end of the financial year
(105,835,535)
(96,451,917)
22
2024
2023
$
$
Total comprehensive loss for year
(9,582,944)
(399,682)
Adjustments for:
Effects of exchange rate changes on cash and cash equivalents
404
(265)
Depreciation and amortisation
937,309
1,315,515
(Gain)/Loss on contingent consideration liability
-
(2,952,030)
(Gain)/Loss on financial instruments at fair value through profit or loss
1,697,631
(629,784)
Impairment of intangible assets
2,508,079
522,939
Impairment of receivables
(50,283)
60,457
(Profit)/Loss on disposal of fixed assets
(457)
-
Share based payments
(125,036)
260,132
Unrealised foreign exchange (gain)/loss
(1,797)
(25,916)
Unwinding of the discount on provisions
(3,321)
3,611
Interest on convertible note
(8,307)
(16,614)
Interest received
(13,958)
(19,894)
Interest and other finance costs paid
483,182
406,726
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
1,094,373
(474,342)
Decrease/(increase) in contract assets
(27,675)
73,057
Decrease/(increase) in prepayments
70,817
(89,939)
Decrease/(increase) in inventory
19,753
(8,163)
Decrease/(increase) in right-of-use asset
(449,928)
-
Decrease/(increase) in other assets
6,969
(3,199)
Increase/(decrease) in trade and other payables
722,589
82,877
Increase/(decrease) in contract liabilities
(211,905)
(802,417)
Increase/(decrease) in provisions
375,309
(43,236)
Increase/(decrease) in other liabilities
667,547
5,685
Net cash used in operating activities
(1,891,650)
(2,734,482)
Reconciliation of loss after income tax to net cash used in operating activities
Equity - accumulated losses
Equity - reserves (continued)
The contingent consideration equity reserve is measured based on the share price and number of shares to be issued under the tranche payment and
the probability of meeting the required milestones on acquisition date. Equity is not subsequently remeasured.
The share based payments reserve records items recognised as expenses on valuation of employee share options and performance rights.
The foreign currency translation reserve is used to recognise increments and decrements in the fair value of foreign currency through other
comprehensive income.
comprehensive income.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 63
62
23
Financial risk management objectives
Credit risk
Market risk
Interest rate risk
Price risk
Sensitivity Analysis
Fair Value ($)
Portfolio (%)
139,983
4.1%
950,250
27.8%
2,318,082
67.9%
Other
7,806
0.2%
3,416,120
100.0%
Fair Value ($)
Portfolio (%)
1,885,410
40.8%
950,250
20.6%
1,765,734
38.2%
Other
14,936
0.3%
4,616,330
100.0%
Liquidity risk
At reporting date, if equity prices had been 10% lower/higher, profit or loss before income tax of the consolidated entity would have
decreased/increased by $341,612 (2023: $461,633).
The consolidated entity's shareholder loans outstanding, totalling $1,250,000 (2023: $1,750,000), are interest only loans. Monthly cash
outlays of $10,417 (2023: $11,667) are required to service the interest payments.
Financial Instruments
Cyban Pty Ltd
Avertix Medical Inc.
The consolidated entity is exposed to equity securities price risk arising from investments held by the consolidated entity and classified on
the Statement of Financial Position as fair value through profit or loss of $3,416,120 (2023: $4,616,330).
The following investments constitute 100% of the consolidated entity's equity portfolio and security price 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. Receivables balances are in
general unsecured and non-interest-bearing. 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's main interest rate risk arises from long-term borrowings. Borrowings obtained at variable rates expose the
consolidated entity to interest rate risk. Borrowings obtained at fixed rates expose the consolidated entity to fair value risk. As at 30 June
2024 all shareholder loans were at fixed rates. The TP24 CreditLine facility is charged at an interest rate of 8.6% fixed plus variable equal to
the 30 day BBSW rate. At 30 June 2024, the total interest rate on this facility was 12.91%.
Company
Cyban Pty Ltd
Gyder Surgical Pty Ltd
Avertix Medical Inc.
Gyder Surgical Pty Ltd
Company
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.
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 entity's activities expose it to a variety of financial risks: market risk (consisting of interest rate risk), credit risk and liquidity risk. The
consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the consolidated entity.
2024
2023
Notes accompanying the
financial statements
for the year ended 30 June 2024
23
Financing arrangements
2024
2023
$
$
TP24 CreditLine
7,201
280,838
AMEX Credit Card
445
300,000
7,646
580,838
Weighted
average
interest rate
1 year or less
Between 1 and 2
years
Between 2 and
5 years
Over 5 years
Remaining
contractual
maturities
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
415,444
-
-
-
415,444
Other payables
41,441
-
-
-
41,441
Accrued liabilities
559,463
-
-
-
559,463
Interest-bearing - fixed rate
Shareholder loans
10.00%
1,250,000
-
-
-
1,250,000
Lease liabilities
10.00%
868,601
616,157
1,244,016
-
2,728,773
Interest-bearing - variable rate
TP24 CreditLine
12.91%
797,996
-
-
-
797,996
Total non-derivatives
3,932,945
616,157
1,244,016
-
5,793,117
Weighted
average
interest rate
1 year or less
Between 1 and 2
years
Between 2 and
5 years
Over 5 years
Remaining
contractual
maturities
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
312,775
-
-
-
312,775
Other payables
14,735
-
-
-
14,735
Accrued liabilities
255,681
-
-
-
255,681
Interest-bearing - fixed rate
Shareholder loans
8.00%
750,000
1,000,000
-
-
1,750,000
Lease liabilities
10.00%
1,046,340
1,078,576
547,485
-
2,672,401
Interest-bearing - variable rate
TP24 CreditLine
11.13%
575,000
-
-
-
575,000
Total non-derivatives
2,954,531
2,078,576
547,485
-
5,580,592
Derivatives
Warrants
1,275
-
-
-
1,275
Total derivatives
1,275
-
-
-
1,275
2024
2023
Unused borrowing facilities at the reporting date:
Consolidated
The shareholder loan facilities have been fully drawn down as at the reporting date. The TP24 CreditLine unused borrowings reflects the
remaining available balance based on current eligible debtors less funds already drawn down at 30 June 2024.
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Financial Instruments (continued)
Hydrix Annual Report 2024
Hydrix Annual Report 2024 65
64
23
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Accounting Policy - Financial instruments
Recognition and Initial Measurement
Financial assets and financial liabilities are recognised when the consolidated entity becomes a party to the contractual provisions to the instrument.
For financial assets, this is equivalent to the date that the consolidated entity commits itself to either the purchase or sale of the asset (i.e. trade date
accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified ‘at
fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.
Classification and Subsequent Measurement
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Amortised cost is
calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any
reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount
calculated using the effective interest method.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all
unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.
The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that
discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or
when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial
liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an
income or expense item in profit or loss.
The consolidated entity does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of
Accounting Standards specifically applicable to financial instruments.
(i) Financial assets at fair value through profit or loss
Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking,
derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation
where a company of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk
management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or
loss.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are
subsequently measured at amortised cost. Loans and receivables are included in current assets, where they are expected to mature within 12 months
after the end of the reporting period.
(iii) Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
They are subsequently measured at fair value with any measurements other than impairment losses and foreign exchange gains and losses recognised
in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in
other comprehensive income is reclassified into profit or loss.
Financial assets at fair value through other comprehensive income are classified as non-current assets when they are expected to be sold after 12
months from the end of the reporting period.
(iv) Financial Liabilities
Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in
profit or loss through the amortisation process and when the financial liability is derecognised.
Financial Instruments (continued)
Notes accompanying the
financial statements
for the year ended 30 June 2024
24
2024
2023
$
$
Short-term employee benefits
309,502
327,045
Fees paid to directors
246,789
279,417
Post-employment benefits
46,256
49,791
Long-term benefits
5,904
5,318
Share-based payments:
- Expensed during the year
(147,496)
218,027
460,955
879,598
25
2024
2023
$
$
Audit services - Grant Thornton Audit Pty Ltd
136,578
127,860
Audit or review of the financial statements GT
136,578
127,860
2024
2023
$
$
Tax Services - Grant Thornton Australia Limited
10,815
15,050
Other services
10,815
15,050
26
Parent entity
Subsidiaries
Key management personnel
Transactions with related parties
The following transactions occurred with related parties:
2024
2023
$
$
Related Party
Related Party
Loans received from shareholders
1,150,000
-
Loans repaid to shareholders
150,000
250,000
Loans converted by shareholders into shares
-
250,000
Loans converted by shareholders into convertible notes
1,000,000
-
Interest expenses on loans from shareholders
71,118
146,835
Interest expenses on convertible notes issued to shareholders
265,122
-
Consolidated
During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd, the auditor of the
company, its network firms and unrelated firms:
Further information in relation to remuneration paid or payable to each member of the consolidated entity's KMP can be found in the
Directors' Remuneration Report.
Compensation
The aggregate compensation made to directors of the consolidated entity is set out below:
Hydrix Limited is the parent entity.
Interests in subsidiaries are set out in note 28.
Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the director's report.
Consolidated
Key Management Personnel
Auditors remuneration
Related party transactions
Consolidated
Consolidated
Hydrix Annual Report 2024
Hydrix Annual Report 2024 67
66
26
Payable to related parties:
2024
2023
$
$
Director fees payable
171,759
29,000
Interest payable to shareholders
298,526
76,164
Salary payable to Directors
12,055
-
482,339
105,164
2024
2023
Loans from related parties
$
$
Loans from shareholders
1,250,000
1,750,000
Terms and conditions
27
Statement of profit or loss and other comprehensive income
2024
2023
$
$
(Loss) after income tax
(1,837,027)
(2,006,054)
Total comprehensive income
(1,837,027)
(2,006,054)
Statement of financial position
2024
2023
$
$
Total current assets
217,820
917,893
Total assets
11,808,023
10,587,875
Total current liabilities
2,175,234
1,059,063
Total liabilities
5,256,336
2,074,126
Equity
Issued Capital
102,126,684
102,126,684
Share based payments reserve
386,859
687,129
Accumulated losses
(95,961,856)
(94,300,063)
Total Equity
6,551,687
8,513,750
2024
2023
$
$
Accumulated losses at the beginning of the financial year
(94,300,063)
(93,215,831)
Loss after income tax expense for the year
(1,837,027)
(2,006,054)
Impairment in receivable from subsidiary
-
-
Transfer from options reserve to account for expired options
72,484
63,822
Transfer from options reserve to account for options that failed to vest
102,750
33,000
Transfer from contingent consideration equity reserve
-
825,000
Accumulated losses at the end of the financial year
(95,961,856)
(94,300,063)
Set out below is a reconciliation for movements in accumulated losses of the parent entity in the year:
Set out below is the supplementary information about the parent entity.
Parent entity information
Related party transactions (continued)
Consolidated
Parent
Consolidated
Parent
All transactions were made on normal commercial terms and conditions and at market rates. Terms of the loans are disclosed in note 16.
Notes accompanying the
financial statements
for the year ended 30 June 2024
27
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
Contingent liabilities
Capital commitments - Plant and equipment
Significant accounting policies
28
Hydrix Services Pty Ltd
Hydrix Ventures Pty Ltd
Hydrix Medical Pty Ltd
Hydrix Medical New Zealand Limited
Hydrix Medical Pte Ltd
Hydrix DE LLC
29
2024
2023
$
$
Loss after income tax attributable to the owners of Hydrix Limited
(9,558,852)
(396,926)
Number
Number
Anti-dilutive shares excluded from weighted average number of ordinary shares:
Convertible Notes
3,060,000
-
Options and rights over ordinary shares
5,765,345
36,246,790
Warrant shares
-
8,000,000
Cents
Cents
Basic and diluted loss per share
(3.76)
(0.17)
Weighted average number of ordinary shares used in calculating diluted earnings per share
Weighted average number of ordinary shares used in calculating basic earnings per share
Name
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1.
Under the agreement entered into between Hydrix Services and TP24, a Deed of Guarantee and Indemnity was also entered into with
Hydrix Limited (the parent entity) acting as Guarantor in respect of the debt arising between Hydrix Services and TP24.
Australia
Australia
Australia
New Zealand
Singapore
United States
Principal place of
business / Country of
incorporation
Earnings per share
Interests in subsidiaries
Parent entity information (continued)
The parent entity had no contingent liabilities as at 30 June 2024 (2023: nil).
2023
100%
100%
239,244,929
254,218,847
254,218,847
Ownership interest
2024
100%
100%
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries in
accordance with the accounting policy described in note 1:
The parent entity had no capital commitments for plant and equipment as at 30 June 2024 and 30 June 2023.
%
%
100%
Consolidated
100%
100%
100%
100%
100%
100%
100%
239,244,929
Hydrix Annual Report 2024
Hydrix Annual Report 2024 69
68
29
HYDOA Options
Grant
date
Expiry
date
Exercise
price
Balance at the
start of the
year
Options
granted
Options
exercised
Options
expired/
forfeited
Balance at the
end of the year
14-Apr-22
31-Mar-24
$0.180
28,280,000
-
-
(28,280,000)
-
28,280,000
-
-
(28,280,000)
-
HYDOB Options
Grant
date
Expiry
date
Exercise
price
Balance at the
start of the
year
Options
granted
Options
exercised
Options
expired/
forfeited
Balance at the
end of the year
7-Dec-22
31-Dec-23
$0.120
50,465,823
-
(50,465,823)
-
50,465,823
-
-
(50,465,823)
-
Accounting Policy - Earnings per Share
30
Recognised share-based payment expenses
The expense recognised from employee services received during the year is shown in the table below:
2024
2023
$
$
Expenses arising from equity-settled share-based payment transactions
199,964
260,132
Performance rights that failed to vest with non-market based vesting conditions
(325,000)
-
(125,036)
260,132
Types of share-based payment plan
Employee Share Option Plan, ‘ESOP’
Share-based payments
Earnings per share (continued)
These options can be transferred and are quoted on the ASX (ASX: HYDOA).
These options can be transferred and are quoted on the ASX (ASX: HYDOB).
In addition to the 3,370,361 non-quoted options issued (refer to Note 30) the following quoted options were in existence during the year:
A Long Term Incentive Plan (LTIP) has been established and approved by shareholders where the company may, at the discretion of the
Board, grant options over the ordinary shares of Hydrix Limited to Directors, Executives, contractors and employees of the consolidated
entity. The exercise of the options are subject to time-based and performance-based vesting conditions. The options cannot be transferred
and will not be quoted on the ASX.
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Hydrix 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 shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
Consolidated
Notes accompanying the
financial statements
for the year ended 30 June 2024
30
The following non-quoted options were in existence during the 2024 financial year.
Grant
date
Expiry
date
Exercise
price
Balance at the
start of the
year
Options
granted
Options
exercised
Options
expired/
forfeited
Balance at the
end of the year
9-Mar-20
30-Jun-25
$0.290
357,876
-
-
(71,250)
286,626
8-Sep-20
30-Jun-25
$0.075
425,839
-
-
(103,437)
322,402
2-Oct-20
30-Jun-25
$0.075
362,500
-
-
(100,000)
262,500
17-Jan-22
30-Jun-26
$0.100
710,175
-
-
(96,750)
613,425
30-Sep-22
30-Jun-27
$0.175
610,400
-
(73,008)
537,392
23-Nov-23
30-Jun-28
$0.073
-
1,373,000
-
(24,984)
1,348,016
2,466,790
1,373,000
-
(469,429)
3,370,361
Grant
date
Expiry
date
Exercise
price
Balance at the
start of the
year
Options
granted
Options
exercised
Options
expired/
forfeited
Balance at the
end of the year
7-Mar-22
7-Mar-25
$0.300
1,000,000
-
-
-
1,000,000
1,000,000
-
-
-
1,000,000
Weighted average remaining contractual life
Range of exercise price
The range of exercise prices for options outstanding at end of the year was $0.073 - $0.30 (2023: $0.075 - $0.29).
The following performance rights were in existence during the 2024 financial year.
Grant
date
Vesting
date
Exercise
price
Balance at the
start of the
year
Performance
rights granted
Performance
rights
exercised
Performance
rights expired/
lapsed / failed
to vest
Balance at the
end of the year
24-Nov-21
30-Jun-23
$0.00
250,000
-
-
(25,000)
225,000
24-Nov-21
30-Jun-24
$0.00
4,250,000
-
-
(4,000,000)
250,000
4,500,000
-
-
(4,025,000)
475,000
Weighted average remaining contractual life
For movements in share options during the prior year, refer to note 19.
Share-based payments (continued)
The performance rights vest subject to satisfaction of prescribed vesting conditions including market conditions, and financial, operational,
corporate governance, strategic planning and business development objectives set by the Board.
During the 2022 financial year, 1,000,000 non-quoted options with a fair value of $52,002 were issued to the lead joint lead managers of
the Placement Offer, as part consideration for services provided.
The weighted average remaining contractual life for the share options outstanding as at 30 June 2024 is 2 years and 1 month (2023: 2 years 4
months).
The weighted average remaining contractual life for the performance rights outstanding as at 30 June 2024 is 3 years and 6 months (2023:
4 years and 11 months).
For the options issued under the LTIP during the current financial year, the fair value at the grant date ($0.015) was calculated by applying
the Black-Scholes valuation model.
The options issued under the LTIP vest subject to time-based and performance-based vesting conditions, including the employee remaining
in the employ of the consolidated entity during the performance period and satisfaction of individual KPI's.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 71
70
30
31
32 Events after the reporting period
Contingent liabilities
Share-based payments (continued)
On 10th August 2024, Hydrix Ventures was advised by Avertix Medical that it closed a Series C capital raise. As part of those funding terms,
Avertix completed a 100-to-1 reverse stock split and reset the stock price to US$9.27 per share.
After accounting for the terms of the Avertix capital raise, Hydrix Ventures holds 10,000 Avertix shares valued at USD$9.27, giving an AUD
valuation of $139,983.
Hydrix Ventures has, as a result, written down the value of its Avertix investment by $1,747,173, from $1,887,156 to $139,983. The impact
of this valuation has been reflected in the financial statements at 30 June 2024.
Accounting Policy - Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services.
Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or
Black-Scholes 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. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are 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.
The consolidated entity had no contingent liabilities as at 30 June 2024 (2023: nil).
Notes accompanying the
financial statements
for the year ended 30 June 2024
Entity
Type of Entity
Trustee, partner or
participant in
joint venture
% of share
capital held
Country of
Incorporation
Australian
resident or
foreign resident
(for tax purposes)
Foreign tax
jurisdiction(s)
of foreign
residents
Hydrix Limited
Body Corporate
n/a
n/a
Australia
Australian
n/a
Hydrix Services Pty Ltd
Body Corporate
n/a
100%
Australia
Australian
n/a
Hydrix DE LLC
Body Corporate
n/a
100%
USA
Australian
n/a
Hydrix Medical Pty Ltd
Body Corporate
n/a
100%
Australia
Australian
n/a
Hydrix Medical Pte Ltd
Body Corporate
n/a
100%
Singapore
Australian
n/a
Hydrix Medical New
Zealand Ltd
Body Corporate
n/a
100%
New Zealand
Australian
n/a
Hydrix Ventures Pty Ltd
Body Corporate
n/a
100%
Australia
Australian
n/a
Hydrix Annual Report 2024
Hydrix Annual Report 2024 73
72
In the directors' opinion:
-
-
-
-
-
Mr Gavin Coote
Executive Chairman
Dated: 30 September 2024
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.
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 2024 and of its performance for the financial year ended on that date;
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 consolidated entity disclosure statement is true and correct; and
Directors'
declaration
Hydrix Annual Report 2024
Hydrix Annual Report 2024 75
74
Independent
auditor's report
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
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 Limited 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 do not obligate one another and are not liable for one
Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
To the Members of Hydrix Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Hydrix Limited (the Company) and its subsidiaries (the Consolidated
Entity), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the d
In our opinion, the accompanying financial report of the Consolidated Entity is in accordance with the
Corporations Act 2001, including:
a
giving a true and fair view of the Consolidated Entity
30 June 2024 and of its
performance for the year ended on that date; and
b
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the
section
of our report. We are independent of the Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Grant Thornton Audit Pty Ltd
Material uncertainty related to going concern
We draw attention to Note 1 in the financial statements, which indicates that the Consolidated Entity incurred a
net loss of $9,558,852 during the year ended 30 June 2024, and as of that date, the Consolidated Entity
liabilities exceeded its current assets by $4,187,945. These events or conditions, along with other matters as set
forth in Note 1, indicate that a material uncertainty exists that may cast doubt on the Consolidated Entity
to continue as a going concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Revenue recognition
Note 4
For the year ended 30 June 2024, the Consolidated
Entity recognised revenue from external customers of
$10,608,574 from variable and fixed price service
contracts. This revenue is recognised in accordance
with AASB 15 Revenue from Contracts with
Customers.
Measuring the amount of revenue to recognise in the
financial statements, including identifying performance
obligations, evaluating stand-alone selling prices and
timing of revenue recognition, involves significant
management judgement.
This area is a key audit matter due to the complexity
and judgement associated with recognising revenue,
particularly near year-end.
Our procedures included, amongst others:
Documenting and updating our understanding of the
internal processes and controls around revenue
recognition to ensure compliance with AASB 15;
Assessing the design and implementation of relevant
controls in relation to accounting for revenue;
Testing a sample of revenue contracts to supporting
documentation to determine whether revenue has
been recorded in the correct period and in
compliance with AASB 15;
Reviewing the progress of fixed price contracts to
critically assess m
stage of completion and progress against budget;
Reviewing a sample of open contracts across period-
end to assess the appropriateness of management s
assessment of the timing of revenue recognition in
accordance with AASB 15; and
Assessing the adequacy of disclosures for
compliance with the Australian Accounting
Standards.
Impairment assessment of non-financial assets
Note 9, Note 10 and Note 18
At 30 June 2024, the carrying value of intangible
assets is $525,000, right-of-use assets is $1,235,563
and plant and equipment is $204,245.
In accordance with AASB 136 Impairment of Assets,
the Consolidated Entity is required to assess if there
are indicators of impairment over intangible assets
with a definite useful life and with respect to intangible
assets with an indefinite useful life, and assess the
carrying value of each cash-generating unit (CGU)
against the recoverable amount.
Our procedures included, amongst others:
Assessing the design and implementation of relevant
controls in relation to the impairment assessment of
non-financial assets;
Reviewing m
impairment indicators on non-financial assets
including brand name, distribution rights, right-of-use
assets and plant and equipment;
Hydrix Annual Report 2024
Hydrix Annual Report 2024 77
76
Grant Thornton Audit Pty Ltd
This area is a key audit matter due to the high level of
management judgement and estimation uncertainty
required to determine the allocation of non-financial
assets to the CGU and assessment of the recoverable
amount of the CGU.
Reviewing the value-in-use (VIU) models for the
Services and Medical CGUs for compliance with
AASB 136;
Verifying the mathematical accuracy and
appropriateness of the methodology of the underlying
calculations within the VIU models;
Evaluating the cash flow projections by assessing
m
comparing actual results to previous forecasts;
Assessing key judgements and assumptions, and
performing a sensitivity analysis of the inputs in the
VIU model; and
Assessing the adequacy of disclosures for
compliance in accordance with the Australian
Accounting Standards.
Carrying value of financial assets
Note 11
Hydrix holds the following financial assets which are
classified as fair value through profit or loss in
accordance with AASB 9 Financial Instruments:
-
Avertix Medical Inc.;
-
Gyder Surgical Pty Ltd;
-
Cyban Pty Ltd; and
-
Memphasys Ltd
At 30 June 2024, the carrying value of these assets is
$3,416,120.
This is a key audit matter due to the significant
management judgement and estimation required in
assessing the fair value of financial assets, particularly
where investments are not held on a stock exchange
such as the ASX.
Our procedures included, amongst others:
Reviewing the investment policies in place to ensure
appropriate measurement and classification under
AASB 9;
Reviewing the design and implementation of relevant
controls in relation to accounting for financial assets
at fair value through profit and loss;
Reviewing m
at
year-end in conjunction with available valuation data
such as recent additions or capital raising during the
year;
Testing a sample of financial asset additions during
the reporting period to share certificates and other
supporting documentation verifying existence and
accuracy of movements;
Assessing the appropriateness of fair value gains or
losses during the year; and
Assessing the adequacy of disclosures for
compliance in accordance with the Australian
Accounting Standards.
The Directors are responsible for the other information. The other information comprises the information included
in the Consolidated Entity
30 June 2024, but does not include the financial
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.
Grant Thornton Audit Pty Ltd
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:
a
the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 (other than the consolidated entity disclosure statement);
b
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
i
the financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error; and
ii
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Consolidated Entity
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 Consolidated Entity or to cease
operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 11 to 15
the year
ended 30 June 2024.
In our opinion, the Remuneration Report of Hydrix Limited for the year ended 30 June 2024 complies with
section 300A of the Corporations Act 2001.
Hydrix Annual Report 2024
Hydrix Annual Report 2024 79
78
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
A C Pitts
Partner
Audit & Assurance
Melbourne, 30 September 2024
Hydrix Annual Report 2024
Hydrix Annual Report 2024 81
80
Additional securities
exchange information
Holder of
Equity Securities
Class of Equity
Securities
Number of Equity
Securities held
% of total issued
securities capital in
relevant class
John W King Nominees Pty Ltd
Ordinary shares
26,273,145
10.335%
Julie King*
Ordinary shares
26,273,145
10.335%
Invia Custodian Pty Limited
Ordinary shares
16,583,334
6.523%
Paul Lewis**
Ordinary shares
16,583,334
6.523%
* Julie King has a relevant interest in the shares held by John W King Nominees Pty Ltd.
**Paul Lewis has a relevant interest in the shares held by Invia Custodian Pty Limited.
SUBSTANTIAL HOLDERS
As at the Reporting Date, the names of the substantial holders of the Company and the number of ordinary voting shares in which
those substantial holders and their associates have a relevant interest (based on the Company’s share register as at the Reporting
Date and/or substantial holding notices given to the Company) are as follows:
In accordance with ASX Listing Rule 4.10, the Company provides the following information to shareholders not elsewhere disclosed in
this Annual Report. The information provided is current as at 17 October 2024 Reporting Date).
CORPORATE GOVERNANCE STATEMENT
The Company’s Directors and management are committed to conducting the Group’s business in an ethical manner and in
accordance with the highest standards of corporate governance. The Company has adopted and substantially complies with the
ASX Corporate Governance Principles and Recommendations (Fourth Edition) (Recommendations) to the extent appropriate to
the size and nature of the Group’s operations.
The Company has prepared a statement which sets out the corporate governance practices that were in operation throughout
the financial year for the Company, identifies any Recommendations that have not been followed, and provides reasons for not
following such Recommendations (Corporate Governance Statement).
In accordance with ASX Listing Rules 4.10.3 and 4.7.4, the Corporate Governance Statement will be available for review on the
Company’s website (https://www.hydrix.com/about/corporate-governance), and will be lodged together with an Appendix 4G with
ASX at the same time that this Annual Report is lodged with ASX.
The Appendix 4G will particularise each Recommendation that needs to be reported against by the Company, and will provide
shareholders with information as to where relevant governance disclosures can be found.
The Company’s corporate governance policies and charters are all available on its website at https://www.hydrix.com/about/
corporate-governance
NUMBER OF HOLDERS
As at the Reporting Date, the number of holders in each class of equity securities is as follows:
Class of Equity Securities
Number of holders
Fully paid ordinary shares
3,491
Unlisted options exercisable at $0.30 each, expiring on 7 March 2025
4
Unlisted options exercisable at $0.06 each, expiring 28 November 2025
1
Unlisted LTIP options exercisable at $0.075 each, expiring on 30 June 2025
21
Unlisted LTIP options exercisable at $0.29 each, expiring on 30 June 2025
16
Unlisted LTIP options exercisable at $0.10 each, expiring on 30 June 2026
22
Unlisted LTIP options exercisable at $0.175, expiring on 30 June 2027
25
Unlisted LTIP options exercisable at $0.0726, expiring on 30 June 2027
31
LTIP Performance rights
1
Convertible notes
14
VOTING RIGHTS OF EQUITY SECURITIES
The only class of equity securities on issue in the Company which carries voting rights is ordinary shares.
As at the Reporting Date, there were 3,491 holders of a total of 254,218,847 ordinary shares of the Company.
At a general meeting of The Company, every holder of ordinary shares present in person or by proxy, attorney or representative
has one vote on a show of hands and on a poll, one vote for each ordinary fully paid share held. On a poll, every member (or his or
her proxy, attorney or representative) is entitled to vote for each fully paid share held and in respect of each partly paid share, is
entitled to a fraction of a vote equivalent to the proportion which the amount paid up (not credited) on that partly paid share bears
to the total amounts paid and payable (excluding amounts credited) on that share. Amounts paid in advance of a call are ignored
when calculating the proportion.
Distribution of ordinary shareholders
Holdings Ranges
Holders
Total Units
%
1 – 1,000
1,130
519,425
0.20
1,001 – 5,000
889
2,313,232
0.91
5,001 – 10,000
371
2,922,063
1.15
10,001 – 100,000
812
27,967,538
11.00
100,001 and over
289
220,496,589
86.73
Totals
3,491
254,218,847
100.000
DISTRIBUTION OF HOLDERS OF EQUITY SECURITIES
The distribution of holders of equity securities on issue in the Company as at the Reporting Date is as follows:
Hydrix Annual Report 2024
Hydrix Annual Report 2024 83
82
Additional securities
exchange information
DISTRIBUTION OF HOLDERS OF EQUITY SECURITIES cont.
Distribution of holders of unlisted options exercisable at $0.30 each, expiring on 7 March 2025
Holdings Ranges
Holders
Total Units
%
1 – 1,000
0
0
0.000
1,001 – 5,000
0
0
0.000
5,001 – 10,000
0
0
0.000
10,001 – 100,000
1
100,000
10.000
100,001 and over
3
900,000
90.000
Totals
4
1,000,000
100.000
Distribution of holders of unlisted options exercisable at $0.06 each, expiring on 28 November 2025
Holdings Ranges
Holders
Total Units
%
1 – 1,000
0
0
0.000
1,001 – 5,000
0
0
0.000
5,001 – 10,000
0
0
0.000
10,001 – 100,000
0
0
0.000
100,001 and over
1
920,000
100.000
Totals
1
920,000
100.000
Distribution of holders of unlisted options issued under the Long Term Incentive Plan (LTIP)
Holdings Ranges
Holders
Total Units
%
1 – 1,000
0
0
0.000
1,001 – 5,000
0
0
0.000
5,001 – 10,000
0
0
0.000
10,001 – 100,000
24
1,259,656
38.838
100,001 and over
11
1,983,705
61.162
Totals
35
3,243,361
100.000
Distribution of holders of performance rights issued under the LTIP
Holdings Ranges
Holders
Total Units
%
1 – 1,000
0
0
0.000
1,001 – 5,000
0
0
0.000
5,001 – 10,000
0
0
0.000
10,001 – 100,000
0
0
0.000
100,001 and over
1
4,475,000
100%
Totals
1
4,475,000
100%
Distribution of convertible note holders
Holdings Ranges
Holders
Total Units
%
1 – 1,000
0
0
0.000
1,001 – 5,000
0
0
0.000
5,001 – 10,000
0
0
0.000
10,001 – 100,000
10
435,000
0.000
100,001 and over
4
2,625,000
0.000
Totals
14
3,060,000
100%
LESS THAN MARKETABLE PARCELS OF ORDINARY SHARES (UMP SHARES)
The number of holders of less than a marketable parcel of ordinary shares based on the closing market price at the Reporting Date
is as follows:
Total Shares
UMP Shares
UMP Holders
% of issued shares
held by UMP holders
254,218,847
18,348,187
2,980
7.21748%
Hydrix Annual Report 2024
Hydrix Annual Report 2024 85
84
Additional securities
exchange information
Ordinary shares:
Shareholder Name
Balance as at
Reporting Date
%
JOHN W KING NOMINEES PTY LTD
26,273,145
10.335%
PUSEN MEDICAL TECHNOLOGY AUSTRALIA PTY LTD
12,000,000
4.720%
INVIA CUSTODIAN PTY LIMITED
8,291,667
3.262%
INVIA CUSTODIAN PTY LIMITED
8,291,667
3.262%
NATIONAL NOMINEES LIMITED
5,652,000
2.223%
DR YOON MEI HO
5,227,554
2.056%
ROGER ALLEN AND MAGGIE GRAY PTY LIMITED
5,226,190
2.056%
INDIGENOUS CAPITAL LIMITED
5,226,190
2.056%
TOWNS CORPORATION PTY LTD
4,999,999
1.967%
BEACHRIDGE ADVISORY SERVICES PTY LTD
4,778,502
1.880%
BNP PARIBAS NOMINEES PTY LTD
4,104,622
1.615%
AUSTRALIAN PHILANTHROPIC & SERVICES FOUNDATION P/L
3,971,304
1.562%
MR COLIN JAMES SHARP
3,000,000
1.180%
JASPER CAPITAL LTD
3,000,000
1.180%
LAMPSAC PTY LTD
2,784,619
1.095%
SUMMIT TWENTY-FIVE PTY LTD
2,750,000
1.082%
CITICORP NOMINEES PTY LIMITED
2,637,939
1.038%
E L G NOMINEES PTY LTD
2,362,577
0.929%
FALAFEL INVESTMENTS PTY LIMITED
2,000,000
0.787%
KAVA INVESTMENTS PTY LTD
1,941,667
0.764%
Total Securities of Top 20 Holdings
114,519,642
45.048%
Total of Securities
254,218,847
TWENTY LARGEST SHAREHOLDERS
The Company has one class of quoted securities, being ordinary shares. The names of the 20 largest holders of ordinary shares,
and the number of shares and percentage of capital held by each holder is as follows:
COMPANY SECRETARY
The Company’s secretary is Ms Alyn Tai.
REGISTERED OFFICE
The address and telephone number of the Company’s registered office is:
30 – 32 Compark Circuit
Mulgrave Victoria 3170
Telephone: +61 (0)3 9550 8100
SHARE REGISTRY
The address and telephone number of the Company’s share registry, Boardroom Pty Limited, are:
Level 8
210 George Street
Sydney NSW 2000
Telephone: 1300 737 760 / +61 (0)2 9290 9600
STOCK EXCHANGE LISTING
The Company’s ordinary shares are quoted on the Australian Securities Exchange (ASX).
ESCROW
There are no securities on issue in the Company that are subject to voluntary escrow.
UNQUOTED EQUITY SECURITIES
The number of each class of unquoted equity securities on issue, and the number of holders in each such class, are as follows:
Class of Equity Securities
Number of unquoted
Equity Securities
Number of holders
Options exercisable at $0.30 each, expiring on 7 March 2025
1,000,000
4
Options exercisable at $0.06 each, expiring 28 November 2025
920,000
1
LTIP options exercisable at $0.075 each, expiring on 30 June 2025
584,902
21
LTIP options exercisable at $0.29 each, expiring on 30 June 2025
286,626
16
LTIP options exercisable at $0.10 each, expiring on 30 June 2026
613,425
22
LTIP options exercisable at $0.175, expiring on 30 June 2027
512,892
25
LTIP options exercisable at $0.0726, expiring on 30 June 2027
1,245,516
31
LTIP performance rights
4,475,000
1
Convertible notes
3,060,000
14
Hydrix Annual Report 2024
Hydrix Annual Report 2024 87
86
Additional securities
exchange information
OTHER INFORMATION
The Company is not currently conducting an on-market buy-back.
There are no issues of securities approved for the purposes of item 7 of section 611 of the Corporations Act which have not yet
been completed.
No securities were purchased on-market during the reporting period under or for the purposes of an employee incentive scheme
or to satisfy the entitlements of the holders of options or other rights to acquire securities granted under an employee incentive
scheme.
The convertible notes were issued to investors under the Company’s 2023 convertible note capital raising (announced to ASX on
31 July 2023).
The options exercisable at $0.06 each, expiring 28 November 2025 were issued to the lead manager of the Company’s 2023
convertible note capital raising (announced to ASX on 31 July 2023), as part consideration for services provided.
The options exercisable at $0.30 each, expiring on 7 March 2025 were issued to the joint lead managers of the Company’s 2022
placement (announced to ASX on 28 February 2022), as part consideration for services provided.
All other unquoted equity securities on issue in the Company were issued to employees under the Company’s Long Term
Incentive Plan (LTIP)
Hydrix Annual Report 2024
Hydrix Annual Report 2024 89
88
HYDRIX Limited
ABN: 84 060 369 048
30-32 Compark Circuit
Mulgrave, VIC 3170 Australia
+61 3 9550 8100 | hydrix.com