Annual Report
For the Year ended
30 June 2024
IDT AUSTRALIA LIMITED
ACN 006 522 970
Letter from the Chair and Chief Executive
1
We are pleased to present the Annual Report for IDT Australia Limited (IDT) for the year ended 30 June 2024 with the recovery in the business
accelerating as we complete the second year of our strategic transformation program and recorded a near doubling in revenue when compared to
the previous fiscal year.
The rebound in our financial performance is primarily driven by the enhanced results from our three core business verticals: Active
Pharmaceutical Ingredients (API), Specialty Orals, and Advanced Therapies (AT). While the 101% increase in total statutory revenue to $14.1
million for the financial year 2024 (FY24) compared to the previous corresponding period (pcp) is noteworthy, the 91% growth in revenue from
these three verticals to $12.3 million is even more significant. This latter figure provides a more precise indication of IDT's operational success,
as it directly reflects the performance of our key business areas. Importantly, several of our customers have progressed their assets during the
year, which means return sales and larger quantities. This is a very important metric that is built into our growth forecast.
It is also worth noting that the number of commercial contracts and lead generation continued to increase for the second year running to hit its
highest since FY21. This is not only a clear validation of our turnaround strategy, but it also sets us up for further successes in the current
financial year.
Tailwinds for Growth
Our robust pipeline of potential sales reflects the strong and growing demand for IDT’s world class capability, experience and unique services.
The Company is levered to key trends in drug development and our business verticals are setup to capitalise on emerging global and local
opportunities.
For instance, our AT vertical is playing a key role in developing a new generation of advanced treatments for cancers and respiratory
diseases. Our growing funnel of opportunities within the smart chemotherapy antibody drug conjugate concepts and mRNA vaccines is a
testament to the success in building the business to become a key driver for future growth.
Meanwhile, our Specialty Orals business is well positioned to benefit from the growing unmet medical needs in mental health solutions and
treatments. These include psychedelic therapies for treatment-resistant depression and the fast-growing medicinal cannabis market, which is
now subject to tighter regulatory standards, giving IDT a significant advantage through its world-class facilities in an otherwise competitive
market.
Our API business is also growing from strength-to-strength. The growth of this vertical is underpinned by its flexibility to synthesise novel
small molecule APIs at small scale and quickly upscaling as the asset progresses through clinical trials.
APIs are the essential ingredient of a finished dose medicinal product. Our ability to produce these and to transfer them to our Specialty Oral
and AT verticals to make finished products mean we can offer a more complete solution to the market, while bolstering repeat business for
IDT.
Positioned for Further Growth
IDT’s strategic pivot is already paying off, laying the groundwork for further growth in the year ahead. The strategic investments made during
FY23 are a powerful catalyst for our business, expanding our sales pipeline, bringing in key clients, and unlocking fresh opportunities across
all three verticals.
Our recent $7 million capital raise through a non-renounceable rights issue, backed by institutional and sophisticated investors, ensures that
IDT is well-equipped to drive forward its ambitious turnaround strategy.
We are only at the start of our growth journey, and our achievements from the past year give us added confidence that the momentum we
have enjoyed so far will carry through this year and beyond.
On behalf of the board and management, we like to thank shareholders for their ongoing support and acknowledge the contribution and
commitment of our staff in achieving this outstanding full year result.
Mark Simari
Paul McDonald
Chairman Chief Executive Officer
IDT Australia Limited
Contents
30 June 2024
2
Corporate directory
3
Directors' report
4
Auditor's independence declaration
17
Statement of profit or loss and other comprehensive income
18
Statement of financial position
19
Statement of changes in equity
20
Statement of cash flows
21
Notes to the financial statements
22
Consolidated entity disclosure statement
44
Directors' declaration
45
Independent auditor's report to the members of IDT Australia Limited
46
Shareholder information
50
IDT Australia Limited
Corporate directory
30 June 2024
3
Directors
Mark Simari - Non-Executive Chairman
Geoffrey Sam, OAM - Non-Executive Director
Jane Ryan - Non-Executive Director
Company Secretary
Mark Licciardo
Registered Office and
45 Wadhurst Drive
Principal Place of Business
BORONIA, VICTORIA, 3155
Telephone +61 3 9801 8888
Facsimile +61 3 9837 6445
Share Register
Link Market Services Limited
Tower 4, 727 Collins Street
MELBOURNE, VICTORIA, 3000
Auditor
RSM Australia Partners
Level 27, 120 Collins Street
MELBOURNE, VICTORIA, 3000
Bankers
National Australia Bank Limited
Level 28, 395 Bourke Street,
MELBOURNE, VICTORIA, 3000
Stock exchange listing
IDT Australia Limited shares are listed on the Australian Securities Exchange (ASX
code: IDT)
Website
www.idtaus.com.au
IDT Australia Limited
Directors' report
30 June 2024
4
The directors present their report, together with the financial statements for IDT Australia Limited (referred to hereafter as the
'Company') for the year ended 30 June 2024.
Directors and Company Secretary
The following persons were directors of the Company during the whole of the financial year and up to the date of this report,
unless otherwise stated:
Director
Mark Simari - Non-Executive Chairman
Jane Ryan - Non-Executive Director
Geoffrey Sam OAM - Non-Executive Director
Company Secretary
Mark Licciardo
Information about the Directors holding office at 30 June 2024:
Mark Simari
Qualifications: Bachelor of Business (Accounting)
Experience: Mark is an experienced and accomplished professional in the health industry and has over 15 years’ Board
experience in a diverse range of organisations. Mark is currently Chairman of Careteq Limited (ASX:CTQ), Tali Digital Limited
(ASX: TD1) and was the co-Founder of Paragon Care (ASX:PGC) and Managing Director from 2008 to 2018 and recently
Non-executive Director from 2019 to 2022. He was instrumental in Paragon Care becoming one of the largest independent
healthcare suppliers in the Australian and New Zealand Markets, creating a healthcare platform spanning across capital
equipment, consumables, devices and service and maintenance.
Other Current Directorships: Executive Director of Careteq Limited and Non-Executive Director of Tali Digital Limited, Opyl
Limited and Xpon Technologies Group Ltd.
Former Directorships in Last 3 Years: Non-Executive Director of Paragon Care Ltd.
Responsibilities: Non-Executive Chairman of the Board, Chairman of Audit & Risk Committee, Member of Remuneration
and Nomination Committee.
Equity interests in Company: 585,976 Fully Paid Ordinary Shares
Jane Ryan
Qualifications: BSc (Hons) PhD, MAICD
Experience: Dr Jane Ryan has over 30 years of international experience in the pharmaceutical and biotechnology industries
where she has held executive roles in management of research and development programs as well as business development
and alliance management. Jane has worked in Australia, the United States and United Kingdom. Throughout her career, she
has led many successful fundraising campaigns and licensing initiatives including the winning of a $230 million US
Government contract.
Other Current Directorships: N/A
Former Directorships in Last 3 Years: Non-Executive Director of Robotic Surgery Evolutions Ltd and Antara Lifesciences
Ltd
Responsibilities: Non-Executive Director, Chair of Remuneration and Nomination Committee, Member of Audit & Risk
Committee
Equity interests in Company: 79,366 Fully Paid Ordinary Shares
Geoffrey Sam OAM
Qualifications: BCom (UNSW), MHA (UNSW), MA (Econ&SocStudies) (Manchester UK), FAICD
Experience: Geoff is currently the Chairperson and independent Non-executive Director of Earlypay Ltd (ASX:EPY) and
independent Non-executive Director of Paragon Care Ltd (ASX:PGC). He has also held previous independent Non-executive
Board positions with listed companies Money 3 Ltd, Hutchinsons Childcare Services Ltd and was Managing Director of Nova
Health Ltd. He is the Co-Founder and Board member of Healthe Care Australia Pty Ltd, a privately owned health care company
comprising a portfolio of 18 hospitals.
Other Current Directorships: Non-Executive Director of Earlypay Ltd, and Change Financial Ltd.
Former Directorships in Last 3 Years: Non-Executive Director of Paragon Care Ltd
Responsibilities: Non-Executive Director, Member of Audit & Risk Committee, Member of Remuneration and Nomination
Committee.
Equity interests in Company: 1,053,537 Fully Paid Ordinary Shares
IDT Australia Limited
Directors' report
30 June 2024
5
Information about the Secretary
Mark Licciardo
Qualifications: Mark holds a Bachelor of Business Degree (Accounting) and a Graduate Diploma in Company Secretarial
Practice, is a Fellow of the Australian Institute of Company Directors, the Governance Institute of Australia and the Institute of
Company Secretaries and Administrators.
Experience: Mark Licciardo was appointed Company Secretary on 3rd October 2022. Mark was the founder and Managing
Director of Mertons Corporate Services, and following Mertons’ acquisition by Acclime, is Managing Director, Listed Company
Services for Acclime Australia. Acclime provides a range of professional services including company secretarial and corporate
governance consulting to ASX listed and unlisted public and private companies. He is also a former Company Secretary of
ASX listed companies Transurban Group and Australian Foundation Investment Company Limited.
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the year
ended 30 June 2024, and the number of meetings attended by each director were:
Full Board
Nomination and
Remuneration Committee
Audit and Risk Committee
Attended
Held
Attended
Held
Attended
Held
Mark Simari
12
12
3
3
2
2
Jane Ryan
12
12
3
3
2
2
Geoff Sam
12
12
3
3
2
2
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Principal activities
The principal activities of the Company through the course of the year were the supply of products and provision of research
and development and other technical services within the pharmaceutical and allied industries.
Results
The comprehensive loss for the company for the year ended 30 June 2024 after providing for income tax amounted to $3.4
million (30 June 2023: loss of $6.0 million).
Financial position
The Company’s operating cash outflows for the year was $9.6 million (30 June 2023: $7.9 million outflow) and reported closing
cash balance of $0.5 million at 30 June 2024 (30 June 2023: $4.4 million). This cash balance is further supported by a facility
of $5 million with National Australia Bank Ltd, of which at 30 June 2024 $3.75 million has been utilised, which is next due for
renewal on 31 October 2025. These cash reserves and debt facility are available to support the Company’s execution of
strategies and projects and to extend production and manufacturing capabilities.
Review of operations
IDT Australia recorded solid growth throughout financial year 2024 (FY24). Total revenue was up 101% in FY24 to $14.1
million compared to the previous corresponding period (pcp).
Growth was observed in all three key business verticals in the financial year 2024, namely the manufacture of Active
Pharmaceutical Ingredients (API), Specialty Orals (SO) and Advanced Therapies (AT), with the number of commercial
contracts reaching a three-year high. Revenue from these key verticals increased 91.1% pcp to $12.3 million in FY24 as IDT
successfully implements its strategic pivot to scale the three verticals and build an integrated offering to increase return
business and competitive advantage.
IDT Australia Limited
Directors' report
30 June 2024
6
FY2024
Revenue
FY2023
Revenue*
Increase
Business Vertical
$'M
$'M
%
Active Pharmaceutical Ingredient (API)
5.5
1.7
+227%
Speciality Orals (SO)
5.4
4.5
+20%
Advanced Therapies (AT)
1.4
0.3
+415%
Others
1.8
0.5
+252%
TOTAL
14.1
7.0
+101%
The total comprehensive loss for the year improved to $3.4 million from $6.0 million in FY23 as IDT increased the necessary
investments in the business to drive and sustain its growth, such as the continued expansion of its sales and marketing team
and direct manufacturing staff.
API Manufacturing
This is IDT Australia’s most established vertical, and it recorded a 227% pcp increase in full year revenue of $5.5 million. The
growth was largely driven by early-stage clients progressing their assets with larger orders and the introduction of new
psychedelic clients. The API business is complementary to the SO and AT verticals, where the API is converted to a finished
dose.
The ability for IDT to offer an integrated API through to finished product manufacture (including labelling, packaging and
release) gives clients more control over their supply chain, which in turn, converts to higher lifetime value and revenue per
client for IDT.
Specialty Orals
The SO vertical grew by 20.2% pcp to $5.4 million in FY24. This business focuses on innovative treatments for neurological
disorders with medicinal cannabis making up the bulk of the current revenue. The vertical suffered a setback in the first half
of FY24 with reduced orders in medicinal cannabis due to an oversupplied market, which recovered slightly in the second half.
Total medicinal cannabis revenue generated in FY24 was $3.9 million compared with $3.3 million in the prior year.
Meanwhile, revenue from other specialty oral treatments increased in the year to $1.5 million when compared to $1.2 million
in FY23. The growth is largely credited to the integration with IDT’s API business, where the active ingredient is further
processed to a finished dose within the SO facility.
Advanced Therapies
IDT completed a sterile license extension in April 2023 to include clinical trial manufacture and release. This business vertical
has delivered growth in FY24 with revenue of $1.4 million compared to $0.3 million in the previous year. The Company secured
further contracts during FY24 from several international and local clients, including Sanofi to manufacture its novel mRNA
concepts.
Business proposals submitted in this vertical during the year amount to a total potential value of $15 million with a historical
acceptance rate of ~30%. This is a significant step in our journey to establish IDT as a leading manufacturer of advanced
therapies in the region and deliver novel medicines to the benefit of society.
Continuous Improvement
IDT Australia is committed to delivering continuous improvement programs driven by the executive team and ideation from all
areas of the workforce. IDT recently implemented a digital quality platform eQMS and is part way through implementation of
an electronic batch record system. Individual led black belt programs are also being implemented with an annualised cost
avoidance total of $0.5 million by improving efficiency and removing waste. IDT Australia will continue to evaluate options to
improve performance and lower operating costs.
Material Business Risks to Strategy and Financial Performance in Future Periods
The Company has identified a number of material risks that may affect the success of the business over the coming periods,
including some that are not directly within its control. The Company’s risk management approach involves the ongoing
assessment, monitoring and reporting of risks that could impede the Company’s progress in delivering its strategic priorities.
These risks are outlined below, although it is important to note that as IDT Australia’s business continues to grow and evolve,
these risks and the Company’s risk profile may change.
IDT Australia Limited
Directors' report
30 June 2024
7
Customer acquisition and retention
Continued growth in revenue and profitability of the Company depends on a number of factors, including its ability to attract
new customers on a sufficiently profitable basis, and retaining and increasing revenue from existing customers. Revenue
growth is particularly dependent on the Company’s reputation and ability to offer specialised expertise and manufacturing
capabilities, on top of the provision of consistently high-quality customer service. The company remains focused on our core
expertise and brand while expanding into new novel modes of manufacture to building onto our capability and experience.
Regulatory changes and compliance risks
IDT Australia operates in a highly regulated industry. The laws and regulations that govern the development, manufacture,
distribution and sale of medicines are subject to constant review by governments and responsible authorities. Any change to
the rules for the industry may have a positive or negative effect on the Company. Additionally, IDT Australia is subject to
ongoing regulatory audits to maintain its GMP certification. Should the Company fail to pass any of these audits, it may lose
its certification, which will have a material negative impact on its business.
Competition
The industry that IDT Australia operates in is subject to competitive pressures, both domestically and internationally. These
competitors may have different cost structures and capabilities, which may provide them a competitive advantage over IDT
Australia. Further, some of IDT Australia’s offshore competitors may not be subject to the same rules and regulations that the
Company is required to operate under. Depending on the circumstances, this may put IDT Australia at a significant
disadvantage or advantage. Other competitive risks faced by the Company include price competition, competitor marketing
campaigns, and mergers or acquisitions by competitors and possible new entrants to the Company’s industry. The risks may
have a negative impact on IDT Australia’s growth and financial performance. The company continues to observe competitive
market trends and responds as appropriate without being distracted from our core business.
Changes in technology
The Company operates in an industry in which technology evolves rapidly with medical advances. This means treatment
preferences and trends are also constantly changing, and this could impact on customer demands for IDT Australia’s offerings.
To maintain its growth, the Company has to ensure it remains at the cutting edge of drug manufacturing technologies and its
ability to do so may be constrained by factors including its available capacity, resources and capital to invest in innovation and
design. This may adversely impact on the Company’s financial performance.
Cyber security risks
IDT Australia retains a significant amount of sensitive customer and third-party information. These parties have high
expectations regarding the protection of their information. Additionally, the legal and regulatory environment surrounding
information security and privacy is increasingly complex and demanding. Failures or breaches of data protection systems can
result in reputational damage, regulatory impositions and financial loss, including claims for compensation by customers or
penalties by telecommunications regulators or other authorities. While IDT Australia exercises due care in protecting customer
data, it is possible that these measures will not be enough to prevent unauthorised access to its systems and technologies.
The company continues to work with our IT service provider to mitigate such risks by adapting to changing technologies to
prevent cyber security risks.
Loss of key personnel
The Company’s ability to be productive, profitable and competitive, and to implement its growth strategy, depends on the
continued employment and performance of senior executives and management. IDT Australia’s performance also depends
on its ability to attract and retain skilled workers with the relevant industry and technical experience. The loss of a number of
key personnel or the inability to attract additional personnel may have an adverse impact on its financial and operating
performance. By proactively addressing the risk of losing key personnel through mitigation strategies, including employer
brand building initiatives, building alliances with local universities, succession planning and knowledge management, the
company aims to minimise disruptions, maintain continuity, and ensure sustained performance and growth.
Access to capital and debt
IDT Australia’s ability to fund future growth and profitability may be affected by its ability to access funding from equity
investors, credit markets and other financial institutions. This access is dependent on several factors, such as the Company’s
financial performance, but may also include factors that are outside its control, such as general economic and financial
conditions. There is a risk that the Company may be unable to access debt or equity funding when required on favourable
terms, or at all.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
IDT Australia Limited
Directors' report
30 June 2024
8
Company performance
The table below sets out summary information about the Company’s earnings and movements in shareholder wealth for the
five years ended 30 June 2024.
2024
2023
2022
2021
2020
$000
$000
$000
$000
$000
Revenue
14,121
7,032
12,130
15,989
14,169
Net profit / (loss) before tax
(6,075)
(9,776)
(1,876)
966
(1,919)
Net profit / (loss) after tax
(5,413)
(8,498)
(1,160)
2,103
(1,919)
Share price at start of year
$0.07
$0.12
$0.33
$0.17
$0.17
Share price at end of year
$0.11
$0.07
$0.12
$0.33
$0.17
Final dividend
-
-
-
-
-
Basic earnings per share
(1.6c)
(3.5c)
(0.5c)
0.9c
(0.8c)
Diluted earnings per share
(1.6c)
(3.5c)
(0.5c)
0.9c
(0.8c)
# Shares on issue, 30 June
351,479,469 304,583,397 241,021,797 239,860,170 239,313,032
Market capitalisation, 30 June
$38.66m
$19.80m
$27.72m
$77.95m
$39.49m
Likely developments and expected results of operations
Information on likely developments in the operations of the Company and the expected results of operations have not been
included in this report because the directors believe it would be likely to result in unreasonable prejudice to the Company.
Environmental regulation
The Company is not subject to any significant environmental regulation under Australian Commonwealth or State law.
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.
Indemnity and insurance of officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 30 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.
IDT Australia Limited
Directors' report
30 June 2024
9
The directors are of the opinion that the services as disclosed in note 30 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of
the auditor; and
●
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company,
acting as advocate for the Company or jointly sharing economic risks and rewards.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
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.
Rounding of amounts
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials / Directors’ Reports)
Instrument 2016/191, dated 24 March 2016, and accordingly the amounts in the Directors’ Report and the Half Year Financial
Report are rounded off to the nearest thousand dollars, unless otherwise indicated.
Matters subsequent to the end of the financial year
On 10 July 2024, the Company issued 78,108,255 shares at $0.09 per share, raising $7.0 million before costs. This related to
the fully underwritten non-renounceable rights offer announced in June 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Company's operations, the results of those operations, or the Company's state of affairs in future financial years.
IDT Australia Limited
Directors' report
30 June 2024
10
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the Company, in accordance
with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the Company's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and
the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward.
The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
competitiveness and reasonableness
●
acceptability to shareholders
●
performance linkage / alignment of executive compensation
●
transparency
The Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements for
its directors and executives. The performance of the Company depends on the quality of its directors and executives. The
remuneration philosophy is to attract, motivate and retain high performance and high quality personnel.
The Nomination and Remuneration Committee has engaged external remuneration consultants to structure an executive
remuneration framework from FY2024 onwards. The Company used HaRe group and Brash Solutions in relation to this
remuneration recommendation services. HaRe Group was paid $11,400 and Brash Solutions was paid $29,975 during the
financial year.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
having economic profit as a core component of plan design
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
●
attracting and retaining high calibre executives
Additionally, the reward framework should seek to enhance executives' interests by:
●
rewarding capability and experience
●
reflecting competitive reward for contribution to growth in shareholder wealth
●
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors' remuneration
IDT has a small and focussed Board which works closely with Executive management. Fees and payments to Directors reflect
the demands made on, and the responsibilities of, the Directors. Directors’ fees are reviewed annually by the Remuneration
and Nomination Committee, considering comparative remuneration data for the industry and size of the Company to attract
Directors with relevant expertise in our industry as well as Australian capital markets.
The Non-Executive Directors’ annual base fee is currently $70,000 and the Chair $120,000, inclusive of superannuation
contributions, as required under the Australian superannuation guarantee legislation. Total Non-Executive Directors’ fees are
determined within an aggregate Directors’ fee pool limit, periodically referred for approval by shareholders. The current
maximum aggregate Directors’ fee pool for Non-Executive Directors is $400,000.
IDT Australia Limited
Directors' report
30 June 2024
11
Executive remuneration
The Company aims to reward executives based on their position and responsibility, with a level and mix of remuneration which
has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits
●
short-term performance incentives
●
share-based payments
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of the
Company and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits)
where it does not create any additional costs to the Company and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The performance targets are set and approved by the Board at the beginning of the year. These targets include meeting set
key objectives at the beginning of the year and individual achievement are measured against the target.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives over
a period of three years based on long-term incentive measures. These include increase in shareholders value relative to the
entire market and the increase compared to the Company's direct competitors. The Nomination and Remuneration Committee
reviewed the long-term equity-linked performance incentives specifically for executives during the year ended 30 June 2024.
Entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the Company. A portion of cash bonus and
incentive payments are dependent on defined earnings per share targets being met. The remaining portion of the cash bonus
and incentive payments are at the discretion of the Nomination and Remuneration Committee. Refer to the section Company
performance above in the Directors report for details of the earnings and total shareholders return for the last five years.
An agreed set of protocols were put in place to ensure that the remuneration recommendations would be free from undue
influence from key management personnel. These protocols include requiring that the consultant not communicate with
affected key management personnel without a member of the Nomination and Remuneration Committee being present, and
that the consultant not provide any information relating to the outcome of the engagement with the affected key management
personnel. The Board is also required to make inquiries of the consultant's processes at the conclusion of the engagement to
ensure that they are satisfied that any recommendations made have been free from undue influence. The Board is satisfied
that these protocols were followed and as such there was no undue influence.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Company are set out in the following tables.
IDT Australia Limited
Directors' report
30 June 2024
12
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash
salary and
fees
Cash bonus
Non-
monetary
Super-
annuation
Long
service
leave
Shares
granted as
compensation
Total
2024
$
$
$
$
$
$
$
Non-Executive Directors:
M. Simari, Chair
120,000
-
-
-
-
-
120,000
J Ryan
63,064
-
-
6,937
-
-
70,001
G Sam
63,064
-
-
6,937
-
-
70,001
Other Key Management
Personnel:
P McDonald, Chief Executive
Officer
318,000
67,304
-
42,383
22,623
-
450,310
J Sosic, Operations Director1
239,394
-
180
26,333
4,335
20,000
290,242
Mr Vasanthakumar, Chief
Financial Officer
212,000
-
180
23,320
6,199
60,000
301,699
P Thiyageas, Quality Director
183,500
22,660
180
22,678
6,044
-
235,062
M Flanders, Director of
Commercial & Business
Development2
173,404
7,091
180
19,854
4,072
-
204,601
P Coutts, Head of People &
Safety3
124,885
-
180
13,737
2,081
-
140,883
A Nesci, Commercial &
Portfolio Director4
-
20,000
69,793
6,783
-
-
96,576
-
-
-
-
-
-
-
1,497,311
117,055
70,693
168,962
45,354
80,000
1,979,375
1Mr Sosic was appointed COO from Director of Operations on 12 October 2023
2Mr Flanders was appointed Director of Commercial & Business Development from Head of Commercial - Business
Development on 1 September 2023.
3Ms Coutts was appointed Head of People & Culture on 2 October 2023
4Ms Nesci was Commercial & Portfolio Director until 01 July 2023. The Non Monetary benefit relates to redundancy payment.
Short-term incentive bonuses were paid on 14 August 2023 for performance in the FY23 financial year.
IDT Australia Limited
Directors' report
30 June 2024
13
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash
salary and
fees
Cash
bonus
Non-
monetary
Super-
annuation
Long
service
leave
Shares
granted as
compensation
Total
2023
$
$
$
$
$
$
$
Non-Executive Directors:
M. Simari, Chair1
75,618
-
-
-
-
-
75,618
J Ryan2
63,348
-
-
6,652
-
-
70,000
G Sam3
46,254
-
-
4,857
-
-
51,111
A Fisher, Chair4
54,299
-
-
5,701
-
-
60,000
H Burrill5
17,345
-
-
1,821
-
-
19,166
M Kotsanis6
25,915
-
-
2,721
-
-
28,636
Other Key Management
Personnel:
P McDonald, Chief Executive
Officer7
290,636
16,800
15,588
30,622
16,885
93,025
463,556
Mr Vasanthakumar, Chief
Financial Officer8
152,700
1,000
18,300
16,139
2,588
1,000
191,727
P Thiyageas, Quality
Director9
155,032
1,000
-
16,383
2,846
52,521
227,782
J Sosic, Operations Director10
16,667
-
-
1,750
278
-
18,695
A Nesci, Commercial &
Portfolio Director11
200,000
1,000
-
21,105
-
60,024
282,129
D Sparling, Chief Executive
Officer12
473,150
-
-
24,773
-
-
497,923
A Desai, Chief Financial
Officer13
104,661
19,200
-
7,524
-
-
131,385
C Kagiaros, Head of People
and Culture14
92,534
10,889
-
7,881
-
-
111,304
1,768,159
49,889
33,888
147,929
22,597
206,570
2,229,032
1 Mr Simari was appointed Non-executive director on 10 October 2022 and Chair on 1 January 2023
2 Ms Ryan was appointed Non-executive director on 28 January 2022
3 Mr Sam was appointed Non-executive director on 10 October 2022
4 Mr Fisher was Non-executive Director (Chair) until 31 December 2022
5 Mr Burrill was Non-executive Director until 10 October 2022
6 Mr Kotsanis was Non-executive Director until 28 November 2022
7 Mr McDonald was appointed CEO from Head of Quality on 15 September 2022
8 Mr Vasanthakumar was appointed CFO on 28 September 2022
9 Ms Thiyageas was appointed Quality Director from Operations Manager on 01 November 2022
10 Mr Sosic was appointed Operations Director on 01 June 2023
11 Ms Nesci was appointed Commercial & Portfolio Director from Interim Head of Operations on 01 November 2022 until 16
June 2023
12 Mr Sparling was CEO until 13 September 2022
13 Mrs Desai was CFO until 14 October 2023
14 Mr Kagiaros was Head of People and Culture until 25 November 2022.
Short term incentive bonuses were paid on 28 July 2022 for performance in the FY22 financial year.
Further a $1,000 cash bonus was paid on 13 December 2022 for Mr McDonald, Mr Vasanthakumar, Ms Thiyages and Ms
Nesci as part of a Company-wide payment made to all staff at IDT.
IDT Australia Limited
Directors' report
30 June 2024
14
Summary of the total incentives paid in relation to achievement of objectives established at the beginning of the previous
financial year:
Potential of fixed
remuneration
Achievement of objectives
set at the start of the year
Name
2024
2023
2024
2023
P McDonald1
50.00%
20.00%
51.00%
39.50%
J Sosic2
20.00%
20.00%
-
-
M Vasanthakumar3
20.00%
-
-
-
P Thiyageas4
20.00%
20.00%
51.00%
-
M Flanders5
20.00%
20.00%
51.00%
-
P Coutts6
20.00%
-
-
-
D Sparling7
-
50.00%
-
-
C Kagiaros7
-
20.00%
-
36.50%
A Desai7
-
20.00%
-
40.00%
1Mr McDonald was Head of Quality and Development until 14 September 2022 where his potential short term incentive was
set at 20%. Upon Mr McDonald's appointment as CEO from 15 September 2022, the potential short term incentive was set at
50%.
2Mr Sosic was appointed Director of Operations on 1 June 2023, he was later appointment to COO from 12 October 2023
3Mr Vasanthakumar was appointed CFO on 28 September 2022
4Ms Thiyageas was appointed Quality Director on 17 October 2022
5Mr Flanders was appointed Director Business Development & Commercial on 1 September 2023
6Mrs Coutts was appointed Head of People & Safety on 2 October 2023
7Mr Sparling, Ms Desai and Mr Kagiaros are no longer with the Company.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management
personnel of the Company, including their personally related parties, are set out below:
2024
Balance at
Shares
Other
changes
Balance at
the start of
issued
during
Disposals/
the end of
the year
to employees
the year
other
the year
Ordinary shares
Non-executive Directors
M Simari
355,206
-
230,770
-
585,976
J Ryan
79,366
-
-
-
79,366
G Sam
355,206
-
698,331
-
1,053,537
Other key management personnel
P McDonald
2,390,106
-
700,185
-
3,090,291
J Sosic
-
322,580
-
-
322,580
M Vasanthakumar
13,157
967,740
461,539
-
1,442,436
P Thiyageas
861,000
-
-
-
861,000
M Flanders
861,000
-
-
-
861,000
Total Holdings
4,915,041
1,290,320
2,090,825
-
8,296,186
IDT Australia Limited
Directors' report
30 June 2024
15
2024 Tranche
Grant Date
Share price
per
agreement Issue price Share price
Number of
loan backed
shares
Expected
repayment
date
Fair value of
one share
based
payment
Fair Value
($)
($)
($)
($)
J Sosic
19/09/2023
$0.062
$0.062
$0.062
322,580 19/09/2028
$0.0191
6,161.28
M Vasanthakumar 19/09/2023
$0.062
$0.062
$0.062
967,740 19/09/2028
$0.0191
18,483.83
1,290,320
24,645.11
2023
Balance at
Shares
Other
changes
Balance at
the start of
issued
during
Disposals/
the end of
the year
to employees
the year
other
the year
Ordinary shares
Non-executive Directors
-
-
-
-
-
M Kotsanis1
115,000
-
-
(115,000)
-
M Simari
-
-
355,206
-
355,206
J Ryan
-
-
79,366
-
79,366
G Sam
-
-
355,206
-
355,206
A Fisher1
-
-
-
-
-
H Burrill1
-
-
-
-
-
Other key management personnel
P McDonald
865,106
1,525,000
-
-
2,390,106
M Vasanthakumar
-
-
13,157
-
13,157
P Thiyageas
-
861,000
-
-
861,000
A Nesci1
-
984,000
-
(984,000)
-
D Sparling1
2,031,000
-
-
(2,031,000)
-
A Desai1
690,000
-
-
(690,000)
-
C Kagiaros1
418,000
-
-
(418,000)
-
Total Holdings
4,119,106
3,370,000
802,935
(4,238,000)
4,054,041
1 Mr Kotsanis, Mr Fisher, Mr Burrill, Ms Neci, Mr Sparling, Ms Desai and Mr Kagiaros were not in office at the end of the
financial year and accordingly their shareholdings as at 30 June 2023 are not disclosed.
2023 Tranche
Grant Date
Share price
per
agreement Issue price Share price
Number of
loan backed
shares
Expected
repayment
date
Fair value of
one share
based
payment
Fair Value
($)
($)
($)
($)
($)
P McDonald
09/03/2023
$0.061
$0.061
$0.061
1,525,000 09/03/2028
$0.0375
57,187.50
A Nesci
09/03/2023
$0.061
$0.061
$0.061
984,000 09/03/2028
$0.0375
36,900.00
P Thiyageas
09/03/2023
$0.061
$0.061
$0.061
861,000 09/03/2028
$0.0375
32,287.50
3,370,000
126,375.00
IDT Australia Limited
Directors' report
30 June 2024
16
Option holding
The number of options over ordinary shares in the Company held during the financial year by each director and other members
of key management personnel of the Company, including their personally related parties, is set out below:
2024
Director
Options1
Grant Type
Grant Date
Exercise
Price
Vesting Date
Granted
Expiry Date
Comments
M Simari
Unlisted options
07/08/2023
$0.10 07/08/2023
2,000,000 07/08/2026
Approved Director
Options
J Ryan
Unlisted options
07/08/2023
$0.10 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
G Sam
Unlisted options
07/08/2023
$0.10 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
M Simari
Unlisted options
07/08/2023
$0.15 07/08/2023
2,000,000 07/08/2026
Approved Director
Options
J Ryan
Unlisted options
07/08/2023
$0.15 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
G Sam
Unlisted options
07/08/2023
$0.15 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
M Simari
Unlisted options
07/08/2023
$0.20 07/08/2023
2,000,000 07/08/2026
Approved Director
Options
J Ryan
Unlisted options
07/08/2023
$0.20 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
G Sam
Unlisted options
07/08/2023
$0.20 07/08/2023
1,000,000 07/08/2026
Approved Director
Options
12,000,000
1On 1 August 2023, at the Extraordinary General Meeting of the shareholders, the director options were approved by the
shareholders: Mark Simari 6,000,000 shares, Jane Ryan 3,000,000 shares and Geoff Sam 3,000,000 shares.
This concludes the remuneration report, which has been audited.
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
___________________________
Mark Simari
Chairman
26 August 2024
17
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of IDT Australia Limited for the year ended 30 June 2024, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R B MIANO
Partner
Dated: 26 August 2024
Melbourne, Victoria
IDT Australia Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Note
2024
2023
$000
$000
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
18
Revenue
Sales revenue
5
13,226
6,935
Other income
6
895
97
Total revenue and other income
14,121
7,032
Expenses
7
Raw materials and consumables used
(2,808)
(2,181)
Employee benefits expense
(9,508)
(7,248)
Depreciation and amortisation expense
(925)
(1,039)
Professional fees
(1,387)
(596)
Utilities and Maintenance expenses
(3,716)
(3,210)
Insurance expenses
(1,108)
(1,348)
Finance costs
(119)
66
Other expenses
(625)
(1,252)
Total expenses
(20,196)
(16,808)
Loss before income tax benefit
(6,075)
(9,776)
Income tax benefit
8
662
1,278
Loss after income tax benefit for the year attributable to the owners of IDT
Australia Limited
25
(5,413)
(8,498)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Property revaluation net of tax
1,987
2,457
Other comprehensive income for the year, net of tax
1,987
2,457
Total comprehensive loss for the year attributable to the owners of IDT
Australia Limited
(3,426)
(6,041)
Cents
Cents
Basic earnings per share
9
(1.55)
(3.48)
Diluted earnings per share
9
(1.55)
(3.48)
IDT Australia Limited
Statement of financial position
As at 30 June 2024
Note
2024
2023
$000
$000
The above statement of financial position should be read in conjunction with the accompanying notes
19
Assets
Current assets
Cash and cash equivalents
10
504
4,433
Trade and other receivables
11
5,373
3,333
Contract assets
12
1,888
190
Other financial assets
13
400
-
Inventories
14
1,681
1,374
Current tax assets
15
561
415
Total current assets
10,407
9,745
Non-current assets
Property, plant and equipment
16
20,964
18,546
Total non-current assets
20,964
18,546
Total assets
31,371
28,291
Liabilities
Current liabilities
Trade and other payables
18
2,283
1,869
Contract liabilities
20
332
829
Borrowings
19
4,468
740
Employee benefits
21
674
546
Total current liabilities
7,757
3,984
Non-current liabilities
Employee benefits
21
173
166
Total non-current liabilities
173
166
Total liabilities
7,930
4,150
Net assets
23,441
24,141
Equity
Issued capital
22
57,700
54,929
Reserves
24
12,715
10,773
Accumulated losses
25
(46,974)
(41,561)
Total equity
23,441
24,141
IDT Australia Limited
Statement of changes in equity
For the year ended 30 June 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
20
Total equity
Contributed
Equity
Asset
Revaluation
Reserve
Share based
Payment
Reserve
Accumulated
Losses
$000
$000
$000
$000
$000
Balance at 1 July 2022
51,189
3,897
4,602
(33,063)
26,625
Loss after income tax benefit for the year
-
-
-
(8,498)
(8,498)
Other comprehensive income for the year, net
of tax
-
2,457
-
-
2,457
Total comprehensive income for the year
-
2,457
-
(8,498)
(6,041)
Transactions with owners in their capacity as
owners:
Equity Capital raised (note 22)
3,961
-
-
-
3,961
Share based payment expense (note 23)
-
-
363
-
363
Cancellation of loan funded shares (note 23)
-
-
(546)
-
(546)
Costs of raising Capital (note 22)
(221)
-
-
-
(221)
Balance at 30 June 2023
54,929
6,354
4,419
(41,561)
24,141
Total equity
Contributed
Equity
Asset
Revaluation
Reserve
Share based
Payment
Reserve
Accumulated
Losses
$000
$000
$000
$000
$000
Balance at 1 July 2023
54,929
6,354
4,419
(41,561)
24,141
Loss after income tax benefit for the year
-
-
-
(5,413)
(5,413)
Other comprehensive income for the year, net
of tax
-
1,987
-
-
1,987
Total comprehensive income for the year
-
1,987
-
(5,413)
(3,426)
Transactions with owners in their capacity as
owners:
Equity Capital raised (note 22)
3,039
-
-
-
3,039
Share based payment expense (note 23)
-
-
25
-
25
Cancellation of loan funded shares (note 23)
-
-
(70)
-
(70)
Costs of raising Capital (note 22)
(268)
-
-
-
(268)
Balance at 30 June 2024
57,700
8,341
4,374
(46,974)
23,441
IDT Australia Limited
Statement of cash flows
For the year ended 30 June 2024
Note
2024
2023
$000
$000
The above statement of cash flows should be read in conjunction with the accompanying notes
21
Cash flows from operating activities
Receipts from customers (inclusive of GST)
9,507
6,917
Payments to suppliers and employees (inclusive of GST)
(19,394)
(15,626)
Interest and other costs of finance received
-
91
Income tax refund received
386
716
(9,501)
(7,902)
Interest received
102
-
Interest and other finance costs paid
(203)
-
Net cash used in operating activities
26
(9,602)
(7,902)
Cash flows from investing activities
Payments for investments in term deposits
(400)
-
Payments for property, plant and equipment
(694)
(522)
Net cash used in investing activities
(1,094)
(522)
Cash flows from financing activities
Proceeds from issue of equity
22
3,039
3,784
Proceeds from borrowings
4,947
1,234
Repayment of borrowings
(1,219)
(1,375)
Net cash from financing activities
6,767
3,643
Net decrease in cash and cash equivalents
(3,929)
(4,781)
Cash and cash equivalents at the beginning of the financial year
4,433
9,214
Cash and cash equivalents at the end of the financial year
10
504
4,433
IDT Australia Limited
Notes to the financial statements
30 June 2024
22
Note 1. Material accounting policy information
The material accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
1.1 Statement of Compliance
These financial statements are general purpose financial statements prepared in accordance with the Corporations Act 2001,
Australian Accounting Standards and Interpretations, and comply with International Financial Reporting Standards and other
requirements of the law.
For the purposes of preparing the financial statements, the Company is a for-profit entity.
1.2 Basis of Preparation
These financial statements have been prepared under the basis of historical cost, except for certain financial instruments,
intangible assets and land and buildings that are measured at fair value.
Historical cost is generally based on fair values of the consideration given in exchange for goods and services, being the price
that would be received in an orderly transaction at the measurement date, regardless of whether that price is directly
observable or estimated using another technique.
A fair value measurement of a non-financial asset considers the Company’s ability to generate economic benefits through use
of the asset in its highest or best use or by selling it through an orderly transaction.
In estimating the fair value of an asset or liability, the Company considers the characteristics market participants would take
into account when pricing the asset or liability at measurement date. Fair value has been used in these financial statements
except for transactions within the scope of AASB 2 Share Based Payments, AASB 16 Leases and measurements that have
some similarities to fair value but are not fair value, such as net realisable value in AASB 102 Inventories or fair value less
cost to dispose in AASB 136 Impairment of Assets.
For financial reporting purposes fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which
the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in
its entirety, described as follows:
●
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;
●
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and
●
Level 3 inputs are unobservable inputs for the asset or liability.
All amounts are presented in Australian dollars unless otherwise noted.
1.3 Impairment of Non-Current Assets
For all except goodwill and indefinite life intangibles, non-financial assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset’s carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset’s
fair value less costs of disposal and value-in-use. The value-in-use is the based on the market capitalisation of the company.
1.4 New or amended Accounting Standards and Interpretations adopted
The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Boards (‘AASB’) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not mandatory have not yet been adopted.
1.5 Foreign Currency Translation
Transactions in currencies other than the Company’s functional currency are recognised at the rates of exchange prevailing
at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are
translated at the rates prevailing at that date.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
23
Foreign exchange gains and losses resulting from settlement of such transactions and translation at period end exchange
rates of foreign currency monetary assets and liabilities are recognised in the Statement of Profit or Loss and Other
Comprehensive Income.
1.6 Rounding of Amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191,
dated 24 March 2016, issued by the Australian Securities and Investments Commission, relating to the "rounding off" of
amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Class
Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.
1.7 Reclassification of Contract Assets
The Company classifies billable work-in-progress not yet invoiced as Contract Assets. The amount at 30 June 2024 is $1.9m
(2023: $0.2m) and has been restated from Inventory to Contract Assets in the Statement of Financial Position. This does not
impact on the Profit or Cash flows.
1.8 Revenue recognition
Accounting policy for revenue from contracts with customers
Revenue arises mainly from development and manufacturing of Active Pharmaceutical Ingredients (API), formulation and
manufacture of Speciality Orals (medicinal cannabis) and Advanced Therapies, in Finished Dose Forms (FDF) as well as
provision of Research & Development services. To determine whether to recognise revenue, the Company follows a 5-step
process:
(1) Identifying the contract with a customer
(2) Identifying the performance obligations
(3) Determining the transaction price
(4) Allocating the transaction price to the performance obligations
(5) Recognising revenue when/as performance obligations are satisfied.
Revenue is recognised either at a point in time or over time, when the Company satisfies performance obligations by
transferring the promised goods or services to its customers.
The Company recognises contract liabilities for consideration received in respect to unsatisfied performance obligations and
reports these amounts as other liabilities in the statement of financial position. Similarly, if the Company satisfies a
performance obligation before it receives the consideration, the Company recognises either a contract asset or a receivable
in its statement of financial position, depending on whether something other than the passage of time is required before the
consideration is due.
The Company has two key types of arrangements with Clients; 1) Fee for Service Revenue generated in accordance with a
Scope of Works agreed with clients before project commencement and recognised over the term of the project as specific
performance obligations are completed (i.e. over time), 2) Manufacturing activities, particularly manufacture of Active
Pharmaceutical Ingredients, manufacture of Speciality Oral products and Advanced Therapies, conducted based on supply
agreements and purchase orders received from clients. Revenue from these activities is recognised after product has been
released by Quality Assurance and shipped in accordance with client instructions (i.e. point in time). It must also be probable
that the economic benefits of the transaction will flow to the Company and the amount of revenue can be measured reliably.
In some instances the Company acts as an agent for the customer and incurs the cost of freight of the goods. The freight
charges are on-charged to the customer and the mark up on freight charges is recognised as revenue when the transfer of
goods occurs.
Other Revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government Grants
Government grants are recognised when they are received or when the right to receive payment is established.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
24
1.9 Income tax
The income tax expense or benefit for the period is the tax payable / receivable on the current period’s taxable income / (loss)
based on the notional income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and unused
tax losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
The Company incurs eligible expenditure which supports a R&D Tax Incentive Claim, refundable by the Australian
Government at 43.5% for entities with a tax loss and revenues less than $20 million. There are no unfulfilled conditions or
other contingencies in relation to this incentive. This receivable balance is accounted for as a current tax asset and income
tax expense / (benefit).
1.10 Cash at bank and on hand
For purposes of the statement of cash flows, cash and cash equivalents include bank deposits which are readily convertible
to cash on hand and which are used in the cash management function on a day-to-day basis.
1.11 Total trade and other receivables
Trade receivables represent amounts receivable relating to the provision of goods and services pursuant to a valid purchase
order or contract for product or services. Receivables are recognised at the full value receivable and do not require re-
measurement because they are due for settlement within 60 days of invoice date.
The Company 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.
1.12 Current Tax Assets
The Company incurs eligible expenditure to support a R&D Tax Incentive Claim. The estimated amount of claim is recognised
as a current tax asset and income tax expense / (benefit) in the year that the R&D was incurred.
1.13 Inventories
Inventories are valued at the lower of cost and net realisable value with the cost determined on a first-in-first-out basis. Net
realisable value reflects the estimated selling price in the ordinary course of business less the estimated costs of completion
and costs necessary to make the sale.
Subsequent to initial measurement, balances held in inventory are reviewed at least annually and a provision raised where
future use is no longer considered probable, principally due to reasons of obsolescence or product dating.
1.14 Property, Plant and Equipment
Freehold land and buildings are shown at revalued amounts being the fair value (level 3) at date of revaluation less subsequent
depreciation for buildings. The most recent fair value measurement by independent valuers was 20 November 2023. The
valuation conforms to Australian Valuation Standards and was calculated based on the fair value of the land and depreciated
replacement cost of the buildings. As revaluations are performed regularly, carrying amounts do not differ materially from
those that would be determined using fair values at the end of each reporting period.
The revaluation increase arising on the revaluation of land and buildings is accumulated in the revaluation reserve within
equity. Decreases that offset previous increases of the same asset are recognised against revaluation reserve directly in
equity; all other decreases are to be recognised in profit or loss.
Plant and equipment, including Right of Use Assets, are measured at cost less accumulated depreciation and any impairment
adjustments which may have been identified. The cost of non-current assets constructed or developed by the Company
includes the costs of all materials used in construction, direct labour on the project and an appropriate proportion of directly
attributable variable and fixed overheads.
AASB 16 Leases provides the lessee with the choice of whether to recognise short-term or low value leases on the balance
sheet. Under the Company’s policy, photocopiers and printers are treated as short term or low value leases, which qualify for
the low value lease exemption.
Depreciation is recognised so as to write off the cost or valuation of assets, other than land, over their estimated useful lives,
net of their residual values, using the straight-line method, as follows:
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
25
- Buildings
40 years
- Plant & Equipment
3-15 years
Estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.
Plant is regularly overhauled through an ongoing cyclical maintenance program. Routine operating maintenance, repair costs
and minor renewals are charged as expenses as incurred.
An item of property, plant and equipment is derecognised upon disposal or where no future economic benefits are expected
to arise from continued use. Any gain or loss arising on disposal or retirement is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in the profit or loss.
1.15 Intangible Assets
a) Internally generated Intangible Assets
Research expenditure is recognised as an expense as incurred.
An internally generated intangible asset arising from development is recognised as a non-current asset where all of the
following conditions can be demonstrated:
●
technical feasibility of completing the project that it will be available for use or sale;
●
intention to complete the intangible asset and use it or sell it;
●
the intangible asset will generate probable future economic benefits for the Company;
●
availability of adequate technical, financial and other resources to complete the development; and
●
the ability to measure reliably the expenditure attributable to the development of the asset.
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date
the asset first met the recognition criteria listed above. Development expenditures that do not meet all of these criteria are
recognised in profit or loss in the period in which incurred.
Development costs previously recognised as an expense may not be recognised as an asset in a subsequent period.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation
from the date the intangible asset first meets the recognition criteria. The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the effect of any change accounted for on a prospective basis.
b) Impairment of intangible assets
Assets with finite lives are subject to amortisation and are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. Intangible assets that have an indefinite useful life
are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances
indicate that they may be impaired. An impairment loss is recognised in the statement of comprehensive income for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash generating units), other than goodwill that is monitored
at the segment level. Impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying
amount of any goodwill allocated to cash generating units, and then to reduce the carrying amount of the other assets in the
unit on a pro-rata basis.
1.16 Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets
are recovered or liabilities settled. The relevant tax rate is applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to temporary
differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect
either accounting profit or taxable profit or loss.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
26
Deferred tax assets will only be recognised for deductible temporary differences and unused tax losses if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses. In addition to the above deferred
tax assets recognised, the Company has further unrecognised tax losses relating to prior period tax losses.
1.17 Contract liabilities
Fee for Service Revenue generated in accordance with a Scope of Works agreed with clients before project commencement
and recognised over the term of the project as specific performance obligations are completed (i.e. over time). In some cases
the client may pay for services before the work is conducted and this revenue is deferred until earned.
Contractual milestones have been received in accordance with the Company’s long-term distribution agreements. As such
milestones relate to the performance of the contract, revenue is recognised over the term of the distribution contract.
1.18 Employee Benefits
The provision for employee entitlements represents annual leave, vested long service leave and an estimate of the future
value of long service leave which has not yet vested but is expected to be payable to employees.
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service
leave when it is probable that settlement will be required and they can be reliably measured.
Liabilities recognised in respect of short term employee benefits are classified as current liabilities and measured at their
nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of
long-term employee benefits are classified as non-current liabilities and measured at the present value of the estimated future
outflows to be made by the Company in respect of services provided by employees up to reporting date.
1.19 Share-based Payments
Directors, Executive Management and selected staff may be offered shares in the Company at the current market value at
the date of issue, funded by an interest free limited recourse loan from the Company. These limited recourse loan funded
shares are measured and accounted for as options in accordance with the substance, and no asset is recognise for the loan.
Grants within the framework of the Employee Share Plan (ESP) are determined by the CEO together with the Remuneration
and Nomination Committee and are subject to approval by the Board.
Amounts disclosed for emoluments relating to these shares are the assessed fair values at issue date determined using the
Binomial method taking into account 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 arrangement.
The ESP provides an annual value of up to $1,000 of shares may be issued to eligible employees for no consideration. The
value of shares issued is recognised in the income statement as employee benefit costs at the time the shares are granted.
Such shares may not be sold until the earlier of three years after issue or cessation of employment with the Company.
In all other respects ESP shares rank equally with other fully-paid ordinary shares on issue.
1.20 Earnings Per Share
(i) Basic Earnings per Share - Basic earnings per share is determined by dividing the profit or loss attributable to equity holders
of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year.
(ii) 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.
1.21 Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Executive Officer of IDT Australia Limited. The Company has identified
one reportable segment, that is: Development and Manufacture of Active Pharmaceutical Ingredients (API) and Finished Dose
Forms (FDF). The segment details are therefore fully reflected in the body of the financial statements.
IDT Australia Limited
Notes to the financial statements
30 June 2024
27
Note 2. Critical accounting judgements, estimates and assumptions
Preparation of these financial statements requires the Company to make estimates and judgements that may affect the
reported values of assets, liabilities, revenues and expenses. Management continually evaluates estimates and judgements
based on historical experience and other factors it believes to be reasonable under the circumstances, including expectations
of future events that may have a financial impact on the entity.
The following critical judgements have been made in application of the Company's accounting policies and have the most
significant effect on amounts recognised in the Company’s financial statements.
Valuation of non-current assets (being property, plant and equipment and finite life intangibles assets)
The Company applies AASB 136 Impairment of Assets to test the carrying value of non-current assets and impairment.
Judgement is applied to make estimates of future cash flows to support assessment of the appropriateness of the carrying
value. Criteria considered include anticipated future sales prices, market size and expected share, future exchange rates and
the discount rate.
In making these judgements, the Company makes reasonable and supportable assumptions to represent management's
estimate of the conditions that will exist over the useful life of the asset. Amongst other factors the Company evaluates
technical feasibility, the cost to complete the project, existence of an attractive commercial market, potential launch dates and
sales expectations to conclude on the value of expected future economic benefits which would be expected to flow to the
entity in order to calculate discounted cash flows.
Balanced estimates of these criteria have been made but key sensitivities could include more competitive market conditions
which could result in higher than expected discounting required to achieve targeted market share.
At any time should the estimated value of future economic benefits relative to the asset’s carrying value be considered
insufficient relative to net book value, the Company would recognise impairment in accordance with AASB 136 Impairment of
Assets.
Income taxes
Deferred tax assets are recognised for deductible temporary differences and tax losses as management considers that it is
probable that future taxable profits will be available to utilise those temporary differences. The carrying amount of deferred tax
assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the asset to be recovered. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the
provision is assessed by taking into account the usage of each item, product expiry date and other factors that affect inventory
obsolescence.
Share-based payments
The issuance of shares to employees are at market rates and funded by interest-free limited recourse loans to the Company.
The fair values of such arrangements utilises the Binomial method and therefore includes elements of judgment and estimate
in determining certain input factors such as an estimate of share price volatility.
Timing of revenue recognition
Revenue is recognised either at a point in time or over time, when the Company satisfies performance obligations by
transferring the promised goods or services to its customers. See note 1.8 for further details.
Note 3. Operating segments
The Company has identified one reportable segment, that is: Development and Manufacture of Active Pharmaceutical
Ingredients (API) and Finished Dose Forms (FDF). The segment details are therefore fully reflected in the body of the financial
statements. Refer to note 1 for further information on the accounting policy.
IDT Australia Limited
Notes to the financial statements
30 June 2024
28
Note 4. Going concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and discharge of liabilities in the normal course of business.
As disclosed in the financial statements, the company incurred a loss of $5.4 million (2023 $8.5 million) and a net cash outflow
from operating activities of $9.6 million for year ended 30 June 2024. (2023 $7.9 million). The rise in cash outflow was primarily
due to an increase in direct staff, necessary to support growth driven by IDT's three-pillar revenue strategy and maintenance
efforts to restore unused facilities to operational status.
The Directors believe that it is reasonably foreseeable that the company will continue as a going concern and that it is
appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following
factors:
●
The cash balance of $0.5 million as of 30 June 2024 was further bolstered by a $7.0 million capital raise before costs as
part of a non-renounceable rights issue on 10 July 2024. This is further supported by an unutilised debt facility of $1.25mil
with the National Australia Bank Ltd (‘NAB’) which is due for renewal on 31 October 2025.
●
Revenue for the full year ended 30 June 2024 amounted to $13.2 million, an increase of $6.3 million or 91% compared
to the corresponding period ending 30 June 2023.
●
The operating cash outflow of the company are expected to significantly improve over the next twelve months.
The Directors have considered a cash flow forecast and the projected revenue and are satisfied that the Company will operate
as a going concern and continue to meet its financial obligations for the foreseeable future.
Based on the cash flow forecast and the above funding arrangements, the Directors are satisfied that the going concern basis
of preparation is appropriate.
Note 5. Revenue
2024
2023
$000
$000
Service revenue recognised over time
13,226
6,935
Sale of goods transferred at a point in time
-
-
13,226
6,935
Disaggregation of revenue
The disaggregation of revenue from contracts with customers recognised over time is as follows:
2024
2023
$000
$000
Active Pharmaceutical Ingredients
5,493
1,680
Advanced Therapies
1,436
279
Speciality Orals
5,396
4,490
Disbursement & Misc. Revenue
901
486
13,226
6,935
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 5. Revenue (continued)
29
Geographical regions:
2024
$'000
2023
$'000
Australia
9,818
5,332
Asia
158
-
Europe
630
612
USA
2,620
991
13,226
6,935
Note 6. Other income
2024
2023
$000
$000
Interest income
102
46
R&D tax incentive (i)
533
-
Government grants
260
-
Other income
-
51
895
97
(i) The R&D Tax Incentive has been classified in other income in the year ended 30 June 2024, in the year ended 30 June
2023 the expected R&D tax incentive of $417,223 was classified as an income tax benefit.
2024
2023
$000
$000
5,835
3,192
925
1,039
(55)
(182)
441
366
831
883
922
684
Note 7. Expenses
Profit / (Loss) from ordinary activities before income tax expense includes the following
expenses:
Cost of goods sold
Depreciation of property, plant and equipment
Share-based payments expense
Research costs
Repairs and maintenance
Superannuation
Net foreign currency loss/(gain)
Write off of assets
4
(66)
-
648
IDT Australia Limited
Notes to the financial statements
30 June 2024
30
Note 8. Income tax benefit
2024
2023
$000
$000
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax benefit
(6,075)
(9,776)
Tax at the statutory tax rate of 25%
(1,519)
(2,444)
Current year tax losses not recognised
1,445
2,251
Current year temporary differences not recognised
(764)
(239)
Partial recognition of historical/current year losses
-
(1,040)
Non-deductible expenses
176
194
Income tax benefit
(662)
(1,278)
The company income tax rate used in 2024 is 25% (2023: 25%).
Note 9. Earnings per share
2024
2023
$000
$000
Loss after income tax attributable to the owners of IDT Australia Limited
(5,413)
(8,498)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
348,222,341
244,056,384
Weighted average number of ordinary shares used in calculating diluted earnings per share
348,222,341
244,056,384
Cents
Cents
Basic earnings per share
(1.55)
(3.48)
Diluted earnings per share
(1.55)
(3.48)
Note 10. Cash and cash equivalents
2024
2023
$000
$000
Current assets
Cash at bank and on hand
504
4,433
Note 11. Trade and other receivables
2024
2023
$000
$000
Current assets
Trade receivables
4,282
2,472
Less: Allowance for expected credit losses
(163)
(224)
4,119
2,248
Prepayments
1,254
1,085
5,373
3,333
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 11. Trade and other receivables (continued)
31
Allowance for expected credit losses
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
2023
2024
2023
2024
2023
%
%
$000
$000
$000
$000
Not overdue
1.00%
1.00%
2,121
1,316
53
-
0 to 3 months overdue
1.50%
1.50%
1,638
933
41
116
3 to 6 months overdue
2.00%
2.00%
242
108
6
108
Over 6 months overdue
2.50%
2.50%
281
115
63
-
4,282
2,472
163
224
Age of receivables which are past due:
2024
2023
$000
$000
0-30 days
3,049
1,677
30-60 days
518
454
60-90 days
192
117
90+ days
523
-
4,282
2,248
The average collection period for invoices is 30-60 days from invoice date and interest is not charged on overdue balances.
Note 12. Contract assets
2024
2023
$000
$000
Current assets
Contract assets
1,888
190
Contract Assets comprises billable work-in-progress not yet invoiced.
Note 13. Other financial assets
2024
2023
$000
$000
Current assets
Other financial assets
400
-
Other financial assets is composed of $400,000 Term Deposit Loan Extension with maturity date of 26 July 2025 at an interest
rate of 4.90% per annum.
IDT Australia Limited
Notes to the financial statements
30 June 2024
32
Note 14. Inventories
2024
2023
$000
$000
Current assets
Raw Materials - at cost
1,510
1,353
Finished Goods
383
275
Less: Provision for stock obsolescence
(212)
(254)
1,681
1,374
2024
2023
$000
$000
Raw Materials - at cost
Balance at 1 July
1,353
1,293
Purchases during the year
2,068
1,472
Inventory recognised as expense during the year
(1,909)
(1,410)
Balance at 30 June
1,512
1,355
Finished Goods
383
275
Less: Provisions
(214)
(256)
Total inventory at 30 June
1,681
1,374
Note 15. Current tax assets
2024
2023
$000
$000
Current assets
Income tax receivable
561
415
Note 16. Property, plant and equipment
2024
2022
$000
$000
Non-current assets
Land (at fair value)
13,775
11,125
Buildings (at fair value)
3,425
3,425
Less: Accumulated depreciation
(126)
(37)
17,074
14,513
Plant and equipment - at cost
27,036
26,516
Less: Accumulated depreciation
(23,818)
(23,004)
Capital works in progress
672
521
3,890
4,033
20,964
18,546
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 16. Property, plant and equipment (continued)
33
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Capital Work
in Progress
Freehold
Land
Buildings
Plant &
Equipment
Total
$000
$000
$000
$000
$000
Balance at 1 July 2023
521
11,125
3,388
3,512
18,546
Additions
693
-
-
-
693
Capital Work in Progress
-
-
-
-
-
Revaluation increments
-
2,650
-
-
2,650
Revaluation decrements
-
-
-
-
-
Transfers
(542)
-
-
542
-
Write off of assets
-
-
-
-
-
Depreciation expense
-
-
(89)
(836)
(925)
Balance at 30 June 2024
672
13,775
3,299
3,218
20,964
Capital Work
in Progress
Freehold
Land
Buildings
Plant &
Equipment
Total
$000
$000
$000
$000
$000
Balance at 1 July 2022
298
4,380
6,985
4,552
16,215
Additions
223
-
-
504
727
Capital Work in Progress
-
-
-
-
-
Revaluation increments
-
6,745
-
-
6,745
Revaluation decrements
-
-
(3,755)
-
(3,755)
Transfers
-
-
285
-
285
Write off of assets
-
-
-
(632)
(632)
Depreciation expense
-
-
(127)
(912)
(1,039)
Balance at 30 June 2023
521
11,125
3,388
3,512
18,546
Valuations of land and buildings
The basis of the valuation of freehold land and buildings is fair value. The freehold land and buildings were last revalued on
29 November 2023 based on independent assessments by Charter Kech Cramer a member of the Australian Property Institute
having recent experience in the location and category of land and buildings being valued. The directors do not believe that
there has been a material movement in fair value since the revaluation date. Valuations are based on current prices for similar
properties in the same location and condition.
The level 3 unobservable inputs and sensitivity are as follows:
Description
Unobservable inputs
Range
Sensitivity
Land and buildings
Yield
5.5% - 6.5% range
0.5% change would result in
an increase or decrease in fair
(or result in impairment) value
by $1,057,000
Land and buildings
Market Net Annual Income
$110 - $140 psm per annum
0.5% change would result in
an increase or decrease in fair
(or result in impairment) value
by $2,703,000
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 16. Property, plant and equipment (continued)
34
Security for Borrowings
The bank overdraft, lease and business loan facilities are secured by the following:
-A Registered Mortgage over property situated at 39 Wadhurst Drive, Boronia
-A Registered Mortgage over property situated at 41 Wadhurst Drive, Boronia
-A Registered Mortgage over property situated at 43-49 Wadhurst Drive, Boronia
-A Registered Mortgage over property situated at 53-57 Wadhurst Drive, Boronia
-A Registered Mortgage over property situated at 68 Wadhurst Drive, Boronia
Note 17. Deferred tax
As at 30 June 2024 the Company has gross carried forward tax losses amounting to $33m (2023: $27m) and a further $12.3m
(2023: $12.3m) capital losses which have not been recognised as assets in these financial statements.
Note 18. Trade and other payables
2024
2023
$000
$000
Current liabilities
Trade payables
661
347
Accrued expenses
1,188
1,251
Other payables
434
271
2,283
1,869
Refer to note 28 for further information on financial risk management.
Note 19. Borrowings
2024
2023
$000
$000
Current liabilities
Premium Funding
718
740
Bank Loan
3,750
-
4,468
740
The company utilises a Premium Funding facility to pay its annual Insurance Premium. This facility has a 10 month term with
an interest rate applicable of 2.75%.
The Loan facility expires on 31st October 2025, with a floating interest rate of 6.035% and a Facility Fee of 1.0%. The company
is in discussions with NAB to renew the loan for an extended period, which is under consideration
Assets pledged as security
The loan is secured by mortgages over the Company's land, buildings and term deposit.
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 19. Borrowings (continued)
35
2024
2023
$000
$000
Total facilities
5,000
-
Used at the reporting date
3,750
-
Unused at the reporting date
1,250
-
Note 20. Contract liabilities
2024
2023
$000
$000
Current liabilities
Contract prepayments
332
829
Reconciliation
Reconciliation of the written down value at the beginning and end of the current and previous financial year are set out below:
2024
2023
$000
$000
Opening Balance
829
517
Payments received in advance
-
501
Transfer to revenue - included in opening balance
(497)
(189)
Ending Balance
332
829
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the
reporting period was $0 as at 30 June 2024 ($272,000 as at 30 June 2023). The 30 June 2024 balance of $332,000 represents
customer inventory on hand and this will be recognised as revenue as and when consumed.
2024
2023
$000
$000
Within 6 months
332
829
6 to 12 months
-
-
12 to 18 months
-
-
332
829
Note 21. Employee benefits
2024
2023
$000
$000
Current liabilities
Employee entitlements
674
546
Non-current liabilities
Employee entitlements
173
166
IDT Australia Limited
Notes to the financial statements
30 June 2024
36
Note 22. Issued capital
2024
2023
2024
2023
Shares
Shares
$000
$000
Ordinary shares - fully paid
351,479,469
304,583,397
57,700
54,929
The following movements in ordinary shares were recorded during the past two years are as follows:
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Shares
Shares
$000
$000
Balance brought forward as at 1 July
304,583,397
241,021,797
54,929
51,189
Issuance of fully paid ordinary shares
46,753,752
60,938,678
3,039
3,961
Cost of raising Capital
-
-
(268)
(221)
Employee share plan issues
1,290,320
5,871,922
-
-
Forfeited employee shares
(1,148,000)
(3,249,000)
-
-
351,479,469
304,583,397
57,700
54,929
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Note 23. Share-based payments
An employee share option plan (ESP) has been established by the Company and approved by shareholders at a general
meeting, whereby the Company may, at the discretion of the Board, grant options over ordinary shares in the Company to
certain key management personnel of the Company. The options are issued for nil consideration and are granted in
accordance with performance guidelines established by the Board.
The ESP was refreshed at the Annual General Meeting held on 23 November 2023.
During the year ended 30 June 2024, the Company issued 1,290,320 ordinary shares on 19 September 2023 under the rules
of the ESP approved at the Annual General Meeting held on 28 November 2022. (2023: 5,871,922). No new shares were
issued under the ESP approved at the Annual General Meeting held on 23 November 2023.
Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit
expenses were as follows:
2024
2023
$000
$000
Net value of shares issued/(forfeited) under employee share plan
(45)
(182)
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 23. Share-based payments (continued)
37
Movement in number of shares under Employee Share Plan
2024
2023
Number
Number
Opening balance
13,086,345
10,463,423
Employee Share Plan granted during the year
1,290,320
5,871,922
Forfeited during the year
(1,148,000)
(3,249,000)
Loan settlement during the year
(164,000)
-
Adjustment relating to prior years
(5,884,277)
-
7,180,388
13,086,345
Set out below are summaries of options granted under the plan:
2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
23/02/2021
22/02/2026
$0.21
330,000
-
-
55,000
385,000
03/03/2022
02/03/2027
$0.20
300,000
-
-
-
300,000
09/03/2023
08/03/2023
$0.06
5,543,000
-
-
(1,312,000)
4,231,000
19/09/2023
18/09/2028
$0.06
-
1,290,320
-
-
1,290,320
6,173,000
1,290,320
-
(1,257,000)
6,206,320
Weighted average exercise price
$0.08
$0.06
$0.00
$0.61
$0.08
The weighted average remaining contractual life of options outstanding at the end of the financial year was 3.05 years (2023:
4.53 years).
The fair value of options granted on 23 February 2021, 3 March 2022 and 9 March 2023 is estimated using Black Scholes
option-pricing model.
The fair value of options granted on 19 September 2023 is estimated using Hoadley option-pricing model.
For the options on hand at the end of the financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows.
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
23/02/2021
22/02/2026
$0.21
$0.21
0.72%
-
0.60%
$0.210
03/03/2022
02/03/2027
$0.20
$0.20
0.95%
-
1.83%
$0.200
09/03/2023
08/03/2023
$0.06
$0.06
0.95%
-
3.50%
$0.061
19/09/2023
18/09/2028
$0.06
$0.06
77.00%
-
3.94%
$0.020
Note 24. Reserves
2024
2023
$000
$000
Asset revaluation reserve
8,341
6,354
Share-based payments reserve
4,374
4,419
12,715
10,773
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 24. Reserves (continued)
38
Asset revaluation reserve
The reserve is used to recognise increments and decrements in the fair value of land and buildings, excluding investment
properties.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration,
and other parties as part of their compensation for services.
Note 25. Accumulated losses
2024
2023
$000
$000
Accumulated losses at the beginning of the financial year
(41,561)
(33,063)
Loss after income tax benefit for the year
(5,413)
(8,498)
Accumulated losses at the end of the financial year
(46,974)
(41,561)
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
2024
2023
$000
$000
Loss after income tax benefit for the year
(5,413)
(8,498)
Adjustments for:
Depreciation and amortisation
925
(1,039)
Share-based payments
(55)
182
Income tax benefit
(662)
-
Change in operating assets and liabilities:
Movement in receivables
(3,739)
997
Movement in inventories
(307)
270
Movement in current tax asset
(147)
1,172
Movement in payables
158
(614)
Movement in other provisions
135
200
Movement in unearned revenue
(497)
(572)
Net cash used in operating activities
(9,602)
(7,902)
Note 27. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 28. Financial risk management
The Company has exposure to market, credit and liquidity risks from the use of financial instruments. This note presents
information about the Group’s exposure to each of these risks, its objectives, policies and processes for measuring and
managing risk. The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework.
Risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. The Company has adopted a Strategic Risk Management
Framework through which it manages risks and aims to develop a disciplined and constructive control environment and action
plans for risks that cannot be effectively managed through the use of controls. The Audit Committee oversees how
management monitors compliance with the Company’s Strategic Risk Management Framework in relation to the changing
risks faced by the Company.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 28. Financial risk management (continued)
39
2024
2023
$000
$000
The Company holds the following financial instruments:
Liquid Financial Assets
Cash and cash equivalents
504
4,433
Term deposits
400
-
Trade and other receivables
5,373
3,333
Total financial assets
6,277
7,766
Financial Liabilities
Trade and other payables
(2,283)
(1,867)
Borrowings, current and non-current
(4,468)
(740)
Total financial liabilities
(6,751)
(2,607)
Net financial position
(474)
5,159
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will
affect the Group’s income or value of its holdings in financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the financial return.
(i) Foreign currency risk
At reporting date, the Company had the following exposures to foreign currency, converted to AUD:
Assets
Liabilities
2024
2023
2024
2023
$000
$000
$000
$000
US dollars
-
-
-
26
Euros
88
211
97
-
88
211
97
26
Foreign currency sensitivity analysis
The Company had net liabilities denominated in foreign currencies of $9,069 as at 30 June 2024 (2023:$184,124 net assets).
Based on this exposure, had the Australian dollars weakened by 5% against these foreign currencies with all other variables
held constant, the Company's profit before tax for the year would have been $453 higher (2023: $9,206 lower). A sensitivity
of 10% has been selected as this is considered reasonable taking in to account the current level of exchange rates and the
volatility observed both on a historical basis and on market expectations for future movements. The analysis is performed on
the same basis for 2023.There is no impact on equity.
(ii) Interest rate risk
Interest earned on cash at bank is determined in accordance with published bank interest rates. The Company’s exposure to
interest rate risk is confined to cash assets and borrowings through loan facilities, the effective weighted average interest rate
for which is set out below.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 28. Financial risk management (continued)
40
As at the reporting date, the Company had the following variable rate borrowings and interest rate swap contracts outstanding:
2024
2023
Weighted
average
interest rate
Balance
Weighted
average
interest rate
Balance
%
$000
%
$000
Cash at bank
0.20%
504
1.85%
4,433
Term deposit
5.00%
400
-
-
Bank facility
6.03%
(3,750)
-
-
Premium funding facility
2.75%
(718)
2.75%
(740)
Net exposure to cash flow interest rate risk
(3,564)
3,693
An increase or decrease of 0.50% in interest rates applied for 12 months to the cash balances at reporting date would have
increased or decreased profit or loss by $17,820 (2023: $18,465), if all other variables, including foreign currency rates, remain
constant. The analysis is performed on the same basis for 2023.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in a financial loss to the
Company. Credit risk is closely managed and the Company has procedures to deal with credit worthy counterparties.
Customer credit worthiness is reviewed on an ongoing basis and exposure to any one customer is monitored. Potential credit
loss is regularly reviewed and assessed and a provision for expected credit losses would be raised if there was any evidence
the debt was no longer collectible. The Company does not carry a material level of overdue debtor balances.
Allowance for expected credit losses
The Company has recognised a loss of $163,000 (2023: $224,000) in profit or loss in respect of the expected credit losses for
the year ended 30 June 2024.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
2023
2024
2023
2024
2023
%
%
$000
$000
$000
$000
Not overdue
2.50%
-
2,121
1,316
53
-
0 to 3 months overdue
2.50%
12.43%
1,638
933
41
116
3 to 6 months overdue
2.50%
100.00%
242
108
6
108
Over 6 months overdue
22.28%
-
281
115
63
-
4,282
2,472
163
224
Liquidity risk
Liquidity risk arises from the financial liabilities of the Company and is the risk that the Company is not able to pay its financial
liabilities as when they fall due. The ultimate responsibility for liquidity risk management rests with the Board of Directors which
has established a framework for management of the Company’s requirements over time through continuous monitoring of
historical and anticipated cash flows and scenario analysis. The Company manages liquidity risk by maintaining cash reserves
and reserve borrowing facilities.
Rolling 18 month cash flow forecasts are prepared each month. Strategic planning also includes liquidity considerations and
based on current strategies, no funding shortfalls have been identified.
In addition to funds on deposit, the Company has $1.25 million undrawn banking facilities.
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 28. Financial risk management (continued)
41
Remaining contractual maturities
The following tables detail the Company's remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
2024
%
$000
$000
$000
$000
$000
Non-derivatives
Non-interest bearing
Trade payables
-
661
-
-
-
661
Other payables
-
433
-
-
-
433
Interest-bearing - variable
Bank loans
6.03%
-
3,750
-
-
3,750
Other loans
2.75%
718
-
-
-
718
Total non-derivatives
1,812
3,750
-
-
5,562
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
2023
%
$000
$000
$000
$000
$000
Non-derivatives
Non-interest bearing
Trade payables
-
347
-
-
-
347
Other payables
-
82
-
-
-
82
Interest-bearing - variable
Other loans
2.34%
740
-
-
-
740
Total non-derivatives
1,169
-
-
-
1,169
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 29. Key management personnel disclosures
Remuneration arrangements in relation to Key Management Personnel (KMP) are disclosed in the Company’s 2024 Annual
Report.
Directors
The following persons were directors of IDT Australia Limited during the financial year:
Mark Simari, Non-Executive Chairman
Jane Ryan, Non-Executive Director
Geoffrey Sam OAM, Non-Executive Director
IDT Australia Limited
Notes to the financial statements
30 June 2024
Note 29. Key management personnel disclosures (continued)
42
Other key management personnel
The following persons also had the authority and responsibility for planning, directing and controlling the major activities of the
Company, directly or indirectly, during the financial year:
P McDonald, Chief Executive Officer
J Sosic, Chief Operating Officer
Mr Vasanthakumar, Chief Financial Officer
P Thiyageas, Quality Director
M Flanders, Director of Commercial & Business Development
P Coutts, Head of People & Safety
A Nesci, Commercial & Portfolio Director
Compensation
The aggregate compensation made to directors and other members of key management personnel of the Company is set out
below:
2024
2023
$
$
Short-term employee benefits
1,685,059
1,851,936
Post-employment benefits
168,962
147,929
Long-term benefits
45,354
22,597
Share-based payments
80,000
206,570
1,979,375
2,229,032
Transactions of Directors and Key Management Personnel Concerning Shares
Aggregate numbers of shares acquired and disposed of by Directors or Key Management Personnel were as follows:
2024
2023
Shares
Shares
Ordinary shares issued to KMP
1,290,320
3,370,000
Ordinary shares forfeited by KMPs
-
3,139,000
Other than shares issued as described in note 23, the terms and conditions of other transactions relating to shares were on
the same basis as similar transactions with other shareholders.
Aggregate numbers of shares of IDT Australia Limited held directly, indirectly or beneficially by Directors or KMP holding office
at balance date were as follows:
2024
2023
Shares
Shares
Ordinary shares
8,296,186
4,054,041
There were no other transactions or contracts between the Company and Directors and Key Management Personnel in 2024
(2023: nil).
IDT Australia Limited
Notes to the financial statements
30 June 2024
43
Note 30. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor
of the Company:
2024
2023
$
$
Audit services -
Audit or review of the financial statements
95,000
143,784
Other services
31,200
23,711
126,200
167,495
Other services
During the year RSM Australia Partners was paid for non-audit services in relation to Taxation and R&D Tax incentive scheme
related services.
Note 31. Related party transactions
Key management personnel
Disclosures relating to key management personnel are set out in note 29 and the remuneration report included in the directors'
report.
Transactions with related parties
During the year, the company purchased materials to the value of $2,495 from Paragon Care Australia Pty Ltd, where Mr
Geoff Sam was also a Director. The transaction was conducted at an “arms length” basis with Paragon Care Australia Pty Ltd.
There were no other transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no receivables from or payables to related parties at the current or previous reporting period.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 32. Commitments and contingencies
The directors are of the opinion that there are no significant commitments and contingencies requiring disclosure for the
company as at 30 June 2024 (30 June 2023: nil).
Note 33. Events after the reporting period
On 10 July 2024, the Company issued 78,108,255 shares at $0.09 per share, raising $7.0 million before costs. This related to
the fully underwritten non-renounceable rights offer announced in June 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Company's operations, the results of those operations, or the Company's state of affairs in future financial years.
IDT Australia Limited
Consolidated entity disclosure statement
As at 30 June 2024
44
IDT Australia Limited does not have any controlled entities and is not required by the Accounting Standards to prepare
consolidated financial statements. Therefore, section 295(3A)(a) of the Corporations Act 2001 does not apply to the entity.
IDT Australia Limited
Directors' declaration
30 June 2024
45
In the directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the Company'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; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Mark Simari
Chairman
26 August 2024
THE POWER OF BEING UNDERSTOOD
46
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 27, 120 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of IDT Australia Limited
Opinion
We have audited the financial report of IDT Australia Limited (the Company), which comprises the statement of
financial position as at 30 June 2024, the of profit or loss and other comprehensive income, the statement of
changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements,
including material accounting policy information, the consolidated entity disclosure statement and the directors'
declaration.
In our opinion the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Company's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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.
47
Key Audit Matters (continued)
Key Audit Matter
How our audit addressed this matter
Revenue recognition
Refer to Note 5 in the financial statements
The Company’s revenue is primarily derived through
contract manufacturing across three key revenue
verticals.
AASB 15 Revenue from Contracts with Customers
requires revenue to be recognised either over time or
at a point in time as performance obligations
associated with the revenue are achieved.
The recognition of revenue from transactions is
considered a key audit matter, due to the judgement
involved in determining the timing of when
performance obligations have been met, which can
involve management estimates and assumptions.
Revenue recognition is a presumed fraud risk under
Australian Auditing Standards.
Our audit procedures included the following:
•
Obtaining an understanding of the Company’s
revenue
recognition
policies
and
assessing
compliance with AASB 15;
•
Performing test of details on sample of contracts with
customers and corroborating the revenue recognised
to various elements in the contracts and;
•
Reviewing the completeness and accuracy of accrued
income and deferred revenue balances recorded at
the reporting date;
•
Reviewing revenue transactions before and after year-
end to ensure revenue is recognised in the correct
period; and
•
Evaluating the disclosures in the financial statements
for appropriateness and consistency with accounting
standards.
Valuation of property, plant & equipment
Refer to Note 16 in the financial statements
Land and buildings are accounted for using the
revaluation model under AASB 116 Property, Plant
and Equipment, whereby valuations are obtained
cyclically, and revaluations are taken through the
asset valuation reserve.
This area is a key audit matter due to the judgement
involved in determining the fair value of the land and
buildings.
Additionally, the Company holds significant plant and
equipment which is idle in the factory and not
currently in use. This increases the risk that the
recoverable value of property, plant & equipment is
below the carrying value, triggering an impairment.
Our audit procedures included the following:
•
Obtaining an understanding of the Company’s
accounting policies and assessing compliance with
AASB 116;
•
Obtaining the most recent independent valuation
reports completed for Land & Buildings and Plant &
Equipment;
•
Evaluating
the
competence,
capabilities
and
objectivity of Management’s expert who completed the
valuation;
•
Reviewing
management’s
assessment
of
any
subsequent material changes in fair value of land &
buildings and plant & equipment for any indicators of
impairment, with reference to recently completed sales
of comparable commercial & industrial property and
interest rate rises; and
•
Evaluating the disclosures in the financial statements
for appropriateness and consistency with AASB 116.
48
Key Audit Matters (continued)
Key Audit Matter
How our audit addressed this matter
Going concern
Refer to Note 4 in the financial statements
As disclosed in the financial statements, the
Company incurred a loss of $5.4 million and a net
cash outflow from operating activities of $9.6 million
for year ended 30 June 2024.
This area is a key audit matter due to the nature of
the business and its dependence on the level of
available cash and its ability to raise additional funds,
as well as the recent history of operating losses.
Management is required to assess the ability of the
company to continue as a going concern, an
assessment which is largely based on assumptions
made by the Directors in their budgets and cash flow
forecasts. These forecasts include the Directors’
assumptions regarding the timing of future cash
flows, operating results, additional funding to be
received, and timing of commercialisation of research
& development products which by its nature is
inherently uncertain.
Our audit procedures included the following:
•
Reviewing the financial performance and current
financial position of the Company and assessing key
ratios;
•
Reviewing management’s cash flow forecast for the
expected performance for the period covering 12-
months from the date of signing the financial
statements, including assessing the mathematical
accuracy of the forecasts;
•
Critically assessing and challenging key assumptions
and estimates applied within the forecasts against
available evidence, and considering the historical
reliability of the Company's cashflow forecast process;
•
Performing sensitivity analyses over the key estimates
in the forecasts, primarily around projected revenue
growth, cash burn rate, and additional sources of
funding;
•
Obtaining an understanding of the level of cash on
hand and other financing facilities available to the
Company;
•
Reviewing Board minutes, ASX announcements and
other publicly available information to obtain an
understanding of the future plans and strategies;
•
Reviewing subsequent events to evidence the $7.0m
cash proceeds received post year end following the
issue of 78,108,255 ordinary shares at $0.09 per share
as part of a non-renounceable rights issue completed
on 10 July 2024; and
•
Assessing the adequacy of the related going concern
disclosures made in the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company's annual report for the year ended 30 June 2024, but does not include the financial report and
the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
49
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001; and
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 (other than the consolidated entity disclosure statement) 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 ability of the Company to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2024.
In our opinion, the Remuneration Report of IDT Australia Limited, for the year ended 30 June 2024, complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
R B MIANO
Partner
Dated: 26 August 2024
Melbourne, Victoria
IDT Australia Limited
Shareholder information
30 June 2024
50
The shareholder information set out below was applicable as at 1 August 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Number
shares
of holders
issued
1 to 1,000
397
11.53
1,001 to 5,000
1,123
32.60
5,001 to 10,000
540
15.68
10,001 to 100,000
1,038
30.14
100,001 and over
346
10.05
3,444
100.00
Holding less than a marketable parcel
1,240
36.00
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
Number
held
shares
issued
ONE MANAGED INVT FUNDS LTD - SANDON CAPITAL INV LTD A/C
48,283,127
11.43%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
37,840,996
8.96%
ONE FUND SERVICES LTD - SANDON CAPITAL ACTIVIST A/C
29,043,707
6.88%
UBS NOMINEES PTY LTD
23,125,664
5.47%
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
20,566,292
4.87%
CITICORP NOMINEES PTY LIMITED
13,041,421
3.09%
MR ANTHONY JOHN HUNTLEY
11,500,000
2.72%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
8,922,969
2.11%
KEISER INVESTMENTS PTY LTD - GANN FAMILY RETIREMENT A/C
7,435,523
1.76%
INVIA CUSTODIAN PTY LIMITED – GRAEME LESLIE BLACKMAN A/C
6,029,710
1.43%
PICHERIT'S FARM PTY LTD - HUNTLEY SUPER FUND A/C
6,000,000
1.42%
MR EDMOND WING KIN CHEUNG & MRS ELIZA SIU LING CHEUNG - EDMOND & ELIZA
S/F A/C
4,929,147
1.17%
BUTTONWOOD NOMINEES PTY LTD
4,834,275
1.14%
MS MELISSA MARY STEPHENS
3,666,667
0.87%
ON ON FOR DON PTY LTD - MAC FAMILY A/C
3,544,445
0.84%
ROSSBOW PTY LTD - ANDREW MACPHERSON TDT A/C
3,483,334
0.82%
INVIA CUSTODIAN PTY LIMITED - PAULENE BLACKMAN A/C
3,457,737
0.82%
LUTON PTY LTD
3,238,889
0.77%
MR ROBERT DARIUS FRASER - FRASER FAMILY A/C
3,004,333
0.71%
PUNTERO PTY LTD
3,000,000
0.71%
244,948,236
57.99%
Unquoted equity securities
There are no unquoted equity securities.
IDT Australia Limited
Shareholder information
30 June 2024
51
Substantial holders
Substantial holders in the Company are set out below:
Ordinary shares
% of total
Number
held
shares
issued
One Managed Invt Funds Ltd - Sandon Capital Inv Ltd A/C
48,283,127
11.43%
HSBC Custody Nominees (Australia) Limited
37,840,996
8.96%
One Fund Services Ltd - Sandon Capital Activist A/C
29,043,707
6.88%
UBS Nominees Pty Ltd
23,125,664
5.47%
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
There are no other classes of equity securities.
IDT Australia Limited
45 Wadhurst Drive, Boronia,
Victoria, 3155, Australia
www.idtaus.com.au