Chairman’s message Dear Shareholder, Presenting the icetana Limited (ASX: ICE) 2021 Annual Report provides an opportunity to reflect on an extraordinary period for our company, and the world, since listing in December 2019. Like many companies our operations and plans for FY2021 were significantly impacted by the global Coronavirus pandemic, as were customers and partners in our key verticals. In what has been a very difficult environment and market over the last 12 months, I want to recognize the focus and resourcefulness of management and the resilience of our employees that has enabled us to continue the company’s progress over the period. Revenues were up 26% to $1.487m, with receipts from customers up to $2.1m for the year, and annualized recurring revenue (ARR) grew 88% to $1.3m, as we continue to shift the focus from perpetual licensing to a recurring revenue model. Renewals remained strong with 92% customer retention for the year, including significant expansions with several of our long-term customers. During the year we maintained a strong focus on cash management resulting in lower net cash outflows in comparison to FY2020, reduced losses by 30%, and finished the year in a strong financial position with $1,738,837 cash at bank, and no debt. Despite the challenges posed by the pandemic, we made significant progress in both product development and go-to-market activities over the period. During the year we refocused a significant portion of our sales effort towards guarding services companies, where our AI video analytics and anomaly detection improves security guard efficiency and coverage, as the number of sites and surveillance cameras increases. We saw results from these efforts very quickly, receiving new orders from Japan and Singapore based guarding organizations and through new value-added resellers focused on this market. We received multiple sales orders, and expansion opportunities from US prisons in the first half of the year, that continued to expand in the second half of the year, working directly with our US value added resellers. We also secured our first utility customer in Canada. From a product development perspective, we delivered more functionality and integrations to our solutions, again demonstrating the quality and efficiency of our research and development and deployment teams. In FY2022, we will also release the most significant upgrade to our core product since its launch, leveraging Nvidia’s DeepStream technology and delivering a broader set of functionality and value to customers. Heading into FY2022, we are seeing a recovery in markets, geographies and verticals coming out of the pandemic, but we remain cautious about the speed of that recovery, with some verticals and geographies still challenged. However, we are confident the company can build scale and broaden its customer base with our new product offerings and technological advantage, a growing pipeline of opportunities and several large-scale deployments scheduled for the year ahead. I would like to thank our Shareholders for their support during the year and look forward to that support continuing as we work to grow the business in FY2022. Finally, I would like to thank my fellow Board members for their guidance and support throughout the year. Mark Potts Non-Executive Chairman CEO’s message Dear fellow shareholders, FY 2021 has been a period of transition for icetana. In the early part of the year customer implementation challenges driven by the rolling COVID lockdowns in our core market sectors resulted in limited growth in our reported revenue. As we hit the second half of the financial year we closed new orders and also began to regain access to the customer sites so that existing orders could be implemented and revenue recognised. The transition was best displayed by the Q4 update graph representing our Annualised Recurring Revenue (ARR) which is calculated from monthly recognised revenue multiplied by 12, this is a core metric the management team focus on growing each quarter. Throughout the year we tightly managed our cash reserves so that we would be ready for a post-COVID rebound in customer sentiment. The Company made very solid progress on its new product (v2) which takes advantage of contemporary technologies as well as benefiting from the many years of experience that icetana has within the security surveillance industry. A sample of the new interface currently being trialed with customers is included below: The new Highlights Grid approach to displaying our anomalous movement results was the subject of a new patent filed shortly after the end of the financial year. As we head into FY22 I am excited by the growing interest in security video analytics and the increased engagement in AI technologies from the many organisations that use surveillance cameras in their business environments. The market is set to reach 1 billion surveillance cameras by the end of this year and the increasing capacity for new technology (both hardware and software) to consume the vast amounts of data coming from the cameras puts icetana in an excellent position. I would like to thank my executive team for their commitment and passion throughout the year, in particular Kevin Brown and Rafael Kimberley-Bowen who leave me humbled by their knowledge in their respective areas of responsibility. My thanks to our many long term shareholders who have shown the commitment to stick with us through the last 18 months of market turmoil, we look forward as a team to returning strong returns to you for that commitment. Matt Macfarlane Chief Executive Officer icetana Limited Corporate Directory For the year ended 30 June 2021 Board of Directors Mark Potts Non-Executive Chairman Matthew Macfarlane Managing Director and Chief Executive Officer Geoff Pritchard Non-Executive Director Deanna Carpenter Non-Executive Director Company Secretary Emma Waczak Registered office and principal place of business Level 4 45 St Georges Terrace Perth Western Australia 6000 Website www.icetana.com.au Auditors Butler Settineri (Audit) Pty Ltd Unit 16 100 Railway Road Subiaco Western Australia 6008 www.butlersettineri.com.au Share registry Automic Registry Services Level 2 267 St Georges Terrace Perth Western Australia 6000 www.automicgroup.com.au Stock exchange ASX Limited (ASX) www.asx.com.au ASX code ASX:ICE icetana Limited For the year ended 30 June 2021 Contents Results for announcement to the market Corporate directory Directors’ Report Auditor’s independence declaration Consolidated statement of profit or loss for the year ended 30 June 2021 Consolidated statement of financial position as at 30 June 2021 Consolidated statement of changes in equity for the year ended 30 June 2021 Consolidated statement of cash flows for the year ended 30 June 2021 Notes to the consolidated financial statements for the year ended 30 June 2021 Directors’ declaration Audit report 2 15 16 17 18 19 20 50 51 1 icetana Limited Directors' report 30 June 2021 The directors present their report, together with the financial statements, on the Consolidated Entity (referred to hereafter as the 'Consolidated Entity') consisting of icetana Limited (referred to hereafter as the 'Company' or 'Parent Entity') and the entities it controlled for the year ended 30 June 2021. Directors The following persons were directors of icetana Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Mark Potts Matthew Macfarlane Geoff Pritchard Justin Mannolini (resigned on 10 May 2021) Deanna Carpenter (appointed on 10 May 2021) Principal activities During the financial year the principal continuing activity of the Consolidated Entity consisted of the development and sale of an AI assisted video surveillance software using technology based on machine learning to provide automatic real-time anomalous event detection. Review of operations Founded in 2009, icetana was formed to commercialise technology developed by researchers at Curtin University that allows for the efficient analysis of very large data sets to identify anomalous activity and events outside normal patterns. icetana has commercialised the technology by developing Artificial Intelligence (AI) assisted video surveillance software using machine learning techniques to provide automated real-time anomalous event detection (icetana Solution) for use cases including security, loss prevention, theft and health and safety. The icetana Solution integrates with existing video surveillance systems or can be deployed to directly interface with surveillance camera feeds. The software ‘learns’ activity patterns (not object or facial recognition) for fixed-field-of-view cameras and creates a model of ‘normal’ movement patterns and activity. After the learning phase, the software then reports anomalous or unusual movement patterns and activity in real-time, through a user interface that highlights those anomalous events. Security operators, typically based in operations centres responsible for monitoring hundreds to thousands of cameras, can review the unusual events and determine appropriate response. To date, significant traction has been made in securing enterprise grade customers and the Company currently has over 25 active customers across a number of core industry verticals with installed sites in over 40 locations supporting in excess of 13,000 video surveillance cameras globally. The product has application to multiple customer segments and use-cases and will be targeting additional industry verticals as part of the product development roadmap (e.g. prisons, healthcare and financial services). icetana’s business is transitioning swiftly to a Software as a Service (SaaS) operation, allowing the Company to build recurring revenue streams. This is complemented by a non-SaaS direct-licensing model which includes recurring maintenance fees where customers or markets have a strong preference for such upfront arrangement. Customer decision making processes have been affected by COVID-19 during the financial year and continue to be challenged post year-end. This has typically manifested as delays and deferrals to deals the Company had been planning to close in the near term, rather than lost opportunities. Some of icetana’s key vertical markets, including retail malls, casinos and universities have been very directly impacted by COVID-19 restrictions. Whilst there has been no impact thus far on renewals of existing customers in these verticals, there have been some deferrals of tenders, deployments and implementations caused by the uncertainty within customers’ own business operations and these delays have impacted revenues for the financial year. Earlier in the financial year the Company implemented numerous cost savings measures to help preserve our strong cash position. The Company benefited from government programs such as the JobKeeper allowance to further support our cash retention objective. The savings and allowance claims that were implemented resulted in a substantial reduction in net cash expenditure during the year. 2 icetana Limited Directors' report 30 June 2021 Review of operations (cont.) The loss for the Consolidated Entity after providing for income tax amounted to $2,222,870 (30 June 2020: $3,157,649). For the year ended 30 June 2021 the Consolidated Entity reported sales revenue of $1,486,503 were up 25% on the previous year ($1,181,096). However recurring revenues by way of SaaS and maintenance fees increased as a proportion of total revenue for the financial year to approximately 63% (60% in 2020). The Company also had $963,010 in unearned revenue as at 30 June 2021 (2020: $948,553), representing pre-payments received from customers who typically pay for annual subscriptions 12 months in advance. The financial position of the Consolidated Entity remains strong with net current assets of $1,527,532 and nil debt. Dividends No dividends were paid or declared since the start of the financial period. No recommendation for payment of dividends has been made. Significant changes in the state of affairs There were no significant changes in the state of affairs of the Consolidated Entity during the financial year. Matters subsequent to the end of the financial year The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not been financially positive for the Consolidated Entity up to 30 June 2021, it is not practicable to estimate the on-going potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by respective governments, such as maintaining social distancing requirements, quarantine, vaccinations, travel restrictions and any economic stimulus that may be provided. No matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future financial years. Likely developments and expected results of operations icetana will continue to implement the business strategies put in place to drive the Company towards a growth trajectory in the foreseeable future, subject to a stable macro-economic environment. The Company will continue to seek new opportunities to build scale and to broaden its customer base, product offering and technological advantage. In reliance on s299A(3) of the Corporations Act 2001, we have not disclosed further information on business strategies and prospects, because disclosure of that information is likely to result in unreasonable prejudice to the Group. Environmental regulation The current activities of the Company are not subject to any significant environmental regulation. However, the Board believes that the Company has adequate systems in place to manage its environmental obligations and is not aware of any breach of any environmental requirements during the period covered by this report as they apply to the Company. Information on directors Mark Potts Non-Executive Chairman B.Sc Name: Title: Qualifications: Experience and expertise: Mark has 30-plus years' experience in senior executive and board positions, in start-ups and large corporates. Most recently he was the worldwide CTO and VP for Corporate Strategy at Hewlett Packard Enterprise. Prior to Hewlett Packard, Mark was the founder of several successful venture backed startups that have driven technology disruption and business innovation in varied industries. Non-executive director of Resolute Mining Limited (ASX:RSG) (appointed 29 June 2017) Other current ASX directorships: Former ASX directorships (last three years): Special responsibilities: Interests in shares: Interests in options: Contractual right to shares: None Non-executive chairman of Decimal Software Limited (ASX: DSX) (resigned 24 December 2018) Chairman 566,715 1,062,943 3 icetana Limited Directors' report 30 June 2021 Name: Title: Qualifications: Experience and expertise: Matthew was the founding CEO of the Company and returned to the role in September 2018. He is a successful entrepreneur, angel and venture capital investor and worked for over 10 years doing international cross-border mergers and acquisitions. Matthew Macfarlane Managing Director and Chief Executive Officer B.Com, CA (Australia), GAICD He co-founded software start-up Vibe Capital (Minti) which raised over $2.6m from early stage investors; and also co-founded the $40m venture capital firm Yuuwa Capital in 2009. He has taken on acting-CEO roles at icetana and Australian Export Grains Innovation Centre (AEGIC) in the past 5 years during CEO absences. In 2018 he was recognised by the West Australian IT and Telecoms Association (WAITTA) as the Pearcey Entrepreneur of the Year. He is the Chair of Spacecubed Ventures Pty Ltd, an independent Director of PetRescue Ltd and a Director of the Australian Export Grains Innovation Centre (AEGIC). Other current ASX directorships: Former ASX directorships (last three years): Special responsibilities: Interests in shares: Interests in options: Interests in performance rights: None None None 1,444,649 8,249,262 787,500 Contractual right to shares: Nil Name: Title: Qualifications: Experience and expertise: Geoffrey Pritchard Non-Executive Director B.Com, CA (Australia), MBA, GAICD Geoff is an experienced Chairman, Executive Director and Chief Executive actively engaged across Governance, Strategy Consulting, Corporate Advisory, Venture Capital and Private Equity to the Superannuation, Family Office, Financial Services and Technology Sectors. He co-founded and is Chairman of Go Capital Pty Ltd, a Private Equity and Venture Capital business with a focus on the technology sector and a significant investor in icetana Ltd. Mr Pritchard was previously CEO of the Western Pacific Financial Group and led the business into its ASX exit in 2007. None None Other current ASX directorships: Former ASX directorships (last three years): Special responsibilities: Interests in shares: Interests in options: Interests in performance rights: Contractual right to shares: None None 39,550,195 10,479,314 Nil Name: Title: Qualifications: Experience and expertise: Justin Mannolini Non-Executive Director, resigned 10 May 2021 GAICD, SF Fin Justin is a partner in the Corporate Advisory Group of Australian law firm Gilbert + Tobin. He is currently serving in a non-executive capacity on a number of listed, private and Government Boards. He has over 20 years' corporate finance experience as a lawyer and 4 icetana Limited Directors' report 30 June 2021 investment banker, and has advised on a wide range of M&A, reconstruction and equity capital markets transactions across a number of industry sectors including energy & resources, financial services, technology, engineering & mining services, food & beverage and real estate. He is currently also a director of Northern Australia Infrastructure Facility (appointed May 2016) Non-Executive Chairman of Jindalee Resources Limited (ASX: JRL) (appointed a director in September 2013) None Other current ASX directorships: Former ASX directorships (last three years): Special responsibilities: Interests in shares: Interests in options: Interests in performance rights: Contractual right to shares: None None 0 195,363 Nil Name: Title: Qualifications: Experience and expertise: Deanna Carpenter Non-Executive Director, appointed 10 May 2021 LLB, BEc Deanna has over 10 years’ experience as a lawyer with a focus on equity capital markets and mergers & acquisitions, and extensive experience in governance, risk management and corporate compliance. Deanna is a partner in the corporate and commercial practice of national firm HWL Ebsworth and has been involved with icetana since advising on its IPO in 2019. Deanna has previously worked with ASX in its compliance division None None Other current ASX directorships: Former ASX directorships (last three years): Special responsibilities: Interests in shares: Interests in options: Interests in performance rights: Contractual right to shares: None None Nil 468,870 subject to shareholder approval at the 2021 AGM Nil 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last three years)' quoted above are directorships held in the last three years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Company secretary Emma Walczak (LLB, B.ICT, FCG, FGIA) was appointed to the role of Company Secretary on 15th February 2021. Ms Walczak has over 12 years’ experience as a commercial lawyer and company secretary. Ms Walczak is the principal of Trinitas Legal, her own law practice, where she provides commercial law advice and company secretarial services to businesses in Perth. Ms Walczak has a graduate diploma in Applied Corporate Governance and Risk Management and is a Fellow of the Governance Institute of Australia. Shane Cranswick (B.Com, CA, FFin, FGIA, MAICD) held the role of Company Secretary from 8 November 2017 to 19 February 2021. He is an accomplished finance executive with over 20 years’ experience in senior management roles in predominantly listed companies both in Australia and overseas. Mr Cranswick has gained a Bachelor of Commerce degree from the University of Western Australia then commenced his career with an international Chartered Accounting firm. Meeting of directors The number of meetings of the Consolidated Entity’s Board of Directors (‘the Board’) during the year ended 30 June 2021, and the number of meetings attended by each director were: Director Mark Potts Attended 8 5 Held 8 icetana Limited Directors' report 30 June 2021 Matthew Macfarlane Geoff Pritchard Justin Mannolini Deanna Carpenter 8 8 7 1 8 8 7 1 Held: represents the number of meetings held during the time that the director held office. Remuneration report (Audited) The remuneration report details the key management personnel remuneration arrangements for the Consolidated Entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● ● ● ● ● ● Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share-based compensation Additional information Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the Consolidated Entity's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and 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 Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Consolidated Entity depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel. The Board has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Consolidated Entity. The 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. 6 icetana Limited Directors' report 30 June 2021 Non-executive directors remuneration Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors' fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are determined independently to the fees of other non-executive directors based on comparative roles in the external market. The chairman is not present at any discussions relating to the determination of his own remuneration. Non-executive directors do not receive share options or other incentives. ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting. The existing approved maximum annual aggregate remuneration is $300,000. Executive remuneration The Consolidated Entity aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive remuneration 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 Board based on individual and business unit performance, the overall performance of the Consolidated Entity and comparable market remunerations. Executives may receive their fixed remuneration in the form of cash or other fringe benefits where it does not create any additional costs to the Consolidated Entity 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 ('KPIs') being achieved. KPIs include profit contribution, customer satisfaction, leadership contribution and product management. The long-term incentives ('LTI') include long service leave and share-based payments. Options awarded to executives vest over a period of three years. The Board reviewed the long-term equity-linked performance incentives specifically for executives during the year ended 30 June 2021. Consolidated entity performance and link to remuneration From 1 July 2020, remuneration for certain individuals has been directly linked to the performance of the Consolidated Entity. 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 Board. Refer to the section 'Additional information' below for details of the earnings and total shareholders return for the last five years. The Board is of the opinion that the continued improved results can be attributed in part to the adoption of performance based compensation and is satisfied that this improvement will continue to increase shareholder wealth if maintained over the coming years. Use of remuneration consultants The Consolidated Entity did not engage external consultants to review existing remuneration policies during the year ended 30 June 2021. 7 icetana Limited Directors' report 30 June 2021 Details of remuneration Amounts of remuneration Details of the remuneration of key management personnel of the Consolidated Entity are set out in the following tables. The key management personnel of the Consolidated Entity consisted of the following directors of icetana Limited: ● ● ● ● ● Mark Potts - Non-Executive Chairman Geoff Pritchard - Non-Executive Director Justin Mannolini - Non-Executive Director (resigned on 10 May 2021) Deanna Carpenter - Non-Executive Director (appointed on 10 May 2021) Matthew Macfarlane - Managing Director and Chief Executive Officer And the following persons: ● Shane Cranswick - Company Secretary and Chief Financial Officer (resigned on 19 February 2021) ● Kevin Brown – Chief Operating Officer ● Damon Watkins – Chief Revenue Officer (resigned on 24 July 2020) ● Rafael Kimberly-Bowen - Chief Financial Officer (appointed on 4 February 2021) ● Emma Walczak – Company Secretary (appointed on 15 February 2021) Changes since the end of the reporting period: ● No changes since the end of the reporting period 2021 Non-Executive Directors: M. Potts (Chairman) G. Pritchard J. Mannolini1 D. Carpenter2 Executive Directors: M. Macfarlane Other Key Management Personnel: S. Cranswick3 K. Brown D. Watkins4 R. Kimberley- Bowen5 Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary and fees $ Cash bonus $ Non- Super- monetary annuation $ $ Long service leave $ Equity- settled shares $ Equity- settled options $ Total $ 56,875 34,489 24,124 5,286 - 1,800 - - - - - - 5,403 - 2,504 502 - - - - - - - - 39,072 19,536 14,652 - 101,350 55,825 41,280 5,788 172,800 - - 16,416 2,720 - 97,681 289,617 119,106 134,400 36,409 85,000 668,489 - - 8,000 - 9,800 - - - - - 9,852 12,768 3,212 - 50,657 - 860 - - 3,580 - - - - - 69,401 204,454 - 198,359 352,482 47,621 - 85,000 444,796 1,177,322 8 icetana Limited Directors' report 30 June 2021 1 2 3 4 5 Represents remuneration from 1 July 2020 to 10 May 2021 Represents remuneration from 10 May 2021 to 30 June 2021 Represents remuneration from 1 July 2019 to 19 February 2021 Represents remuneration from 1 July 2020 to 24 July 2020 Represents remuneration from 4 February 2021 to 30 June 2021 Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary and fees $ Cash bonus $ Non- Super- monetary annuation $ $ Long service leave $ Equity- settled shares $ Equity- settled options $ Total $ 53,208 4,927 18,136 - - - - - - - 185,600 173,333 91,324 - 179,045 107,077 116,218 837,544 45,662 - 15,535 152,521 - - - - - - - - - - - 3,345 - 1,723 - - 26,308 3,167 156 - - - - 862 - 21,347 10,172 12,517 78,579 4,414 508 653 6,593 - - - - - - - - - - - 19,536 - - - - - 76,246 4,927 19,859 - - - 48,841 9,768 352,935 186,268 29,304 - - 279,773 117,757 144,922 107,449 1,182,686 2020 Non-Executive Directors: M. Potts (Chairman) G. Pritchard4 J. Mannolini1 R. McDougall2 J. Williams3 Executive Directors: M. Macfarlane G. Pritchard4 Other Key Management Personnel: S. Cranswick K. Brown5 D. Watkins6 1 2 3 4 5 6 Represents remuneration from 18 December to 30 June 2020 Represents remuneration from 1 July 2019 to 18 December 2019 Represents remuneration from 1 July 2019 to 1 October 2019 Mr Pritchard changed from an executive role to a non-executive role effective 1 May 2020 Represents remuneration from 7 October 2019 to 30 June 2020 Represents remuneration from 7 October 2019 to 30 June 2020 9 icetana Limited Directors' report 30 June 2021 The proportion of remuneration linked to performance and the fixed proportion are as follows: Name Non-Executive Directors: Mark Potts G. Pritchard J. Mannolini D. Carpenter Executive Directors: M. Macfarlane G. Pritchard Other Key Management Personnel: S. Cranswick K. Brown D. Watkins R. Kimberley-Bowen Fixed remuneration 2020 2021 At risk - STI At risk - LTI 2021 2020 2021 2020 61% 62% 65% 100% 74% 100% 100% N/a 66% N/a 60% 95% 65% 42% 83% 100% 74% 100% 89% N/a - 3% - - - N/a - - 17% - - - - N/a 39% 35% 35% - 26% N/a 34% N/a 16% - 11% N/a 35% 58% - - 26% - - N/a 14% 5% 10% - - N/a Cash bonuses are dependent on meeting defined performance measures. The amount of the bonus is determined having regard to the satisfaction of performance measures and weightings as described above in the section 'Consolidated entity performance and link to remuneration'. The maximum bonus values are established at the start of each financial year and amounts payable are determined in the final month of the financial year by the Board. The proportion of the cash bonus paid/payable or forfeited is as follows: Name Executive Directors: M. Macfarlane G. Pritchard Other Key Management Personnel: K. Brown D Watkins S. Cranswick R. Kimberley-Bowen Cash bonus paid/payable 2021 2020 Cash bonus forfeited 2020 2021 0% N/a 0% N/a 0% N/a 45% N/a N/a 40% 100% N/a 100% N/a 100% N/a 100% N/a 55% N/a N/a 60% 0% N/a 10 icetana Limited Directors' report 30 June 2021 Service agreements Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: Matthew Macfarlane Managing Director and Chief Executive Officer 1 May 2019 Ongoing Base salary for the year ending 30 June 2021 of $192,000 plus superannuation, to be reviewed annually by the Board. Two month termination notice by either party, revenue bonus of up to 40% of salary subject to achievement of revenue targets to be agreed with the Board annually, capital raise bonus of between $50,000-$150,000 (for the year ended 30 June 2021 only) for successful completion of capital raising, eligible to participate in Employee Stock Investment Plan (ESIP) subject to a Performance Review and Board approval, non-solicitation and non-compete clauses. Effective 1 May 2020, Mr Macfarlane and the Company agreed to reduce base salary by 20% until such time as the parties agree otherwise. The agreement to reduce base salary was concluded on 31 December 2020. Shane Cranswick Chief Financial Officer and Company Secretary 26 June 2017 (ceased employment on 19 February 2021) Ongoing Base salary for the year ending 30 June 2021 of $190,000 plus superannuation, to be reviewed annually by the Board. Three month termination notice by either party, capital raise bonus of $50,000 (for the year ended 30 June 2021 only) for successful completion of capital raising, non-solicitation and non-compete clauses. Effective 1 May 2020, Mr Cranswick and the Company agreed to reduce base salary by 20% until such time as the parties agree otherwise. The agreement to reduce base salary was concluded on 31 December 2020. Kevin Brown Chief Operating Officer 7 October 2019 Ongoing Full time equivalent salary for the year ending 30 June 2021 of $180,000 plus superannuation, to be reviewed annually by the Board. Three month termination notice by either party, eligible to participate in Employee Stock Investment Plan (ESIP) subject to a Performance Review and Board approval, non-solicitation and non-compete clauses. Effective 1 May 2020, Mr Brown and the Company agreed to reduce base salary by 20% until such time as the parties agree otherwise. The agreement to reduce base salary was concluded on 31 December 2020. Damon Watkins Chief Revenue Officer 7 October 2019 (ceased employment on 24 July 2020) Ongoing Base salary for the year ending 30 June 2021 of $185,000 plus superannuation, to be reviewed annually by the Board. Three month termination notice by either party, 3 month termination notice by either party, eligible to participate in Employee Stock Investment Plan (ESIP) subject to a Performance Review and Board approval, revenue bonus potential of up to $100,000 for ‘on target’ performance measured against KPI achievements ($40,000 guaranteed) as agreed with the CEO annually, non-solicitation and non-compete clauses. Effective 1 May 2020, Mr Watkins and the Company agreed to reduce base salary and cash bonus by 20% until such time as the parties agree otherwise. Mr Watkins ceased employment prior to any agreement to re-instate full base salary and cash bonus. 11 icetana Limited Directors' report 30 June 2021 Name: Title: Agreement commenced: Term of agreement: Details: Share-based compensation Rafael Kimberley-Bowen Chief Financial Officer 4 February 2021 Ongoing Contracted through Scale Partners Pty Ltd to provide CFO services for an average of four days per week, for $1,000 per day plus GST. Two month termination notice by either party. Eligible to participate in Employee Stock Investment Plan (ESIP). Options The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management personnel in this financial year or future reporting years are as follows: Name M Potts M Macfarlane G Pritchard J Mannolini K Brown D Watkins S Cranswick M Macfarlane K Brown D Watkins S Cranswick D. Carpenter R. Kimberley- Bowen Number of options granted 937,739 2,344,348 468,870 468,870 1,758,261 937,739 1,406,609 5,642,702 4,232,026 3,854,491 2,586,916 468,870 1,500,000 Grant date Vesting date and exercisable date Expiry date Exercise price Fair value per option at grant date 18-Dec-19 18-Dec-19 18-Dec-19 18-Dec-19 18-Dec-19 18-Dec-19 18-Dec-19 1-May-20 1-May-20 1-May-20 1-May-20 2-Jun-21 2-Jun-21 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 3 Note 3 30-Nov-23 30-Nov-23 30-Nov-23 30-Nov-23 30-Nov-23 30-Nov-23 30-Nov-23 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 2-Jun-25 2-Jun-25 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.093 $0.093 $0.093 $0.093 $0.049 $0.049 Notes. 1 Options vest on a quarterly basis over the three year period after the issue date with a further vesting condition of a 12 month “cliff” from the commencement of employment, engagement or office with the Company. There is no entitlement to retain any options (partially vested or otherwise) until 12 months of employment, engagement or office is completed. If employment is ceased during the vesting period, any unvested options held are forfeited by the Director / KMP. 2 Options vest 1(cid:187)3 in 12 months and quarterly thereafter over a total three year period commencing 1 May 2020. If employment is ceased during the vesting period, any unvested options held are forfeited by the Director / KMP. 3 Options vest 1(cid:187)3 in 12 months and quarterly thereafter over a total three year period commencing 2 June 2021. If employment is ceased during the vesting period, any unvested options held are forfeited by the Director / KMP. Options granted to D. Carpenter subject to shareholder approval at the 2021 Annual General Meeting. Options granted carry no dividend nor voting rights. 12 Icetana Limited Directors' report 30 June 2021 All options were granted over unissued fully paid ordinary shares in the company. The number of options granted was determined having regard to the satisfaction of performance measures and weightings as described above in the section 'Consolidated entity performance and link to remuneration'. Options vest based on the provision of service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the grant since the grant date. There are no amounts paid nor payable by the recipient in relation to the granting of such options other than on their potential exercise. Values of options over ordinary shares granted, exercised and lapsed for directors and other key management personnel as part of compensation during the year ended 30 June 2021 are set out below (note – value of options provided below is value of options vested as at 30 June 2021): Vested and exercisable as at 30 June 2021 Value of options vested during the year Value of options exercised during the year Value of options lapsed during the year Remuneration consisting of options for the year Name number $ M Potts M Macfarlane G Pritchard J Mannolini K Brown S Cranswick 468,870 1,172,174 234,435 195,363 2,289,806 900,021 39,073 97,681 19,536 14,652 204,454 69,401 $ - - - - - - $ - - - - - - % 39% 34% 33% 35% 58% 35% This concludes the remuneration report, which has been audited. Shares under option All unissued ordinary shares of icetana Ltd under option (relating to key management personnel and other personnel) at the date of this report are as follows: Grant date 18 Dec 2019 1 May 2020 1 2 Jun 2021 Expiry date 30 Nov 2023 31 Mar 2024 2 Jun 2025 Exercise price $0.30 $0.25 $0.25 Number under option 6,635,906 13,386,272 3,150,000 1 5,642,702 of these options were granted on 1 May 2020 but subject to approval at the 2020 Annual General Meeting, which was received. No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the company or of any other body corporate. Shares issued on the exercise of options No options were exercised during the year ended 30 June 2021 and up to the date of this report. Indemnity and insurance of officers The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the 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. 13 icetana Limited Directors' report 30 June 2021 Indemnity and insurance of auditor The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor. During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity. Proceedings on behalf of the company` No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 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. The directors are of the opinion that the services as disclosed in note 27 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: ● all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company, acting as advocate for the company or jointly sharing economic risks and rewards. ● Officers of the company who are former partners of Butler Settineri (Audit) Pty Ltd There are no officers of the company who are former partners of Butler Settineri (Audit) Pty Ltd. 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. Auditor Butler Settineri (Audit) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Mark Potts Non-Executive Chairman 26 August 2021 Perth, Western Australia 14 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of icetana Ltd and its controlled entities for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been: a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) No contraventions of any applicable code of professional conduct in relation to the audit. BUTLER SETTINERI (AUDIT) PTY LTD ROBERT HALL CA Director Perth Date: 26 August 2021 icetana Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2021 Revenue from continuing operations 4 1,486,503 1,181,096 Note 30 Jun 2021 30 Jun 2020 $ $ Cost of sales Gross profit Other income Interest revenue Expenses Accountancy and audit fees Advertising and marketing Consultancy fees Depreciation and amortisation expense Employee benefits expense Foreign exchange losses Other expenses Share based payments expense (323,632) (269,669) 1,162,871 911,427 5 444,636 4,817 182,000 11,331 (111,725) (24,246) (102,372) (143,027) (2,777,278) (256,577) (494,150) (552,774) (92,786) (67,276) (618,204) (137,698) (3,230,829) 36,310 (742,365) (118,699) 6 Loss before income tax expense from continuing operations (2,849,826) (3,866,789) Income tax benefit 7 626,957 709,141 Loss after income tax expense from continuing operations (2,222,870) (3,157,649) Loss after income tax expense for the year (2,222,870) (3,157,649) Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax Total comprehensive loss for the year Net loss after income tax expense attributable to: Non-controlling interest Owners of icetana Limited Total comprehensive loss attributable to: Non-controlling interest Owners of icetana Limited 244,956 (49,401) 244,956 (49,401) (1,977,913) (3,207,051) 23,408 (2,246,278) 52,089 (3,209,738) (2,222,870) (3,157,649) 70,393 (2,048,307) 30,943 (3,237,994) (1,977,913) (3,207,051) Cents Cents Loss per share for profit attributable to the owners of icetana Limited Basic loss per share Diluted loss per share 20 20 (1.49) (1.49) (2.66) (2.66) The above statement of financial position should be read in conjunction with the accompanying notes 16 icetana Limited Consolidated statement of financial position As at 30 June 2021 Assets Current assets Cash and cash equivalents Trade and other receivables Prepayments Inventory Income tax refundable Right-of-use assets Total current assets Non-current assets Property, plant and equipment Intangibles Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Unearned revenue Employee benefits Provisions Lease liabilities Total current liabilities Non-current liabilities Unearned revenue Employee benefits Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Non-controlling interest Retained losses Total equity Note 30 June 2021 30 Jun 2020 $ $ 8 9 10 16 11 12 13 14 15 17 13 14 1,738,847 330,408 107,441 3,425 500,000 43,095 2,723,215 2,641,715 522,332 118,228 - 709,140 15,836 4,007,251 63,863 1,385 65,248 135,178 1,385 136,563 2,788,463 4,143,814 285,025 754,665 112,899 - 43,095 1,195,683 264,064 804,745 89,718 15,000 15,836 1,189,363 208,346 14,382 222,728 143,808 15,452 159,260 1,418,411 1,348,623 1,370,052 2,795,191 18 19 18,573,586 1,313,011 (240,656) (18,275,889) 18,573,586 562,265 (311,049) (16,029,612) 1,370,052 2,795,190 The above statement of financial position should be read in conjunction with the accompanying notes 17 icetana Limited Consolidated statement of changes in equity For the year ended 30 June 2021 Issued capital Foreign currency translation reserve Share based payments reserve Accumulate d losses Non- controlling interest Total equity $ $ $ $ $ $ Balance at 1 July 2019 13,767,127 (135,833) Profit after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year - - - - (28,255) (28,255) Transactions with owners in their capacity as owners: Shares issued Share issue costs Share-based payments Balance at 30 June 2020 6,119,654 (1,313,195) - - - - - - - - 726,354 (12,819,874) (341,992) 469,428 (3,209,738) - 52,089 (3,157,649) (21,146) (49,401) (3,209,738) 30,943 (3,207,051) - - - - 6,119,654 (1,313,195) 726,354 18,573,586 (164,088) 726,354 (16,029,612) (311,049) 2,795,190 Issued capital Foreign currency translation reserve Share based payments reserve Accumulate d losses Non- controlling interest Total equity $ $ $ $ $ $ Balance at 1 July 2020 18,573,586 (164,088) 726,354 (16,029,612) (311,049) 2,795,190 Profit after income tax expense for the year Other comprehensive income for the year, net of tax - - - 197,971 - - (2,246,278) - 23,408 (2,222,870) 46,985 244,956 Total comprehensive income for the year - 197,971 - (2,246,278) 70,393 (1,977,913) Transactions with owners in their capacity as owners: Shares issued Share issue costs Share-based payments Balance at 30 June 2021 - - - - - - - - - - - - - - 552,774 552,774 - - 18,573,586 33,883 1,279,128 (18,275,890) (240,656) 1,370,051 The above statement of changes in equity should be read in conjunction with the accompanying notes 18 icetana Limited Consolidated statement of cash flows For the year ended 30 June 2021 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Income tax refund Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds on disposal of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from share issue Share issue costs Reduction in finance lease principal Net cash used in financing activities Note 30 Jun 2021 30 Jun 2020 $ $ 2,123,064 (3,994,609) 1,390,964 (5,387,440) (1,871,545) (3,996,476) 4,817 836,097 11,331 1,061,397 (1,030,632) (2,923,748) (37,858) 11,847 (30,295) - (26,011) (30,295) - - (91,182) 6,119,654 (705,540) (102,311) (91,182) 5,311,803 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents (1,147,826) 2,641,715 244,957 2,357,760 333,356 (49,401) Cash and cash equivalents at the end of the financial year 8 1,738,846 2,641,715 The above statement of cash flows should be read in conjunction with the accompanying notes 19 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Going Concern During the year the Consolidated Entity continued to incur losses although reduced from the prior year as a result of lower operating expenses and as there was an increase in revenue and and Government stimulus for COVID-19. For the year ended 30 June 2021, the Consolidated Entity incurred a loss from continuing operations after tax of $2,222,870 (30 June 2020: $3,157,649). In the same period the consolidated entity had operating cash outflows of $1,030,632 (year ended 30 June 2020: $2,939,584). Notwithstanding these matters, the consolidated financial statements have been prepared on a going concern basis. The Directors consider this to be appropriate for the following reasons: the projected cash flow through the renewal of existing customers and the addition of new customer orders; the ability to reduce operating cash outflows dependent on the addition of new customer orders; access to capital markets, should funding be required, for the Consolidated Entity to continue to execute against its business plan in the medium term. The Directors have a reasonable expectation that existing cash, additional inflows from sales to existing customers and the R&D rebate recognised at year end will be sufficient to sustain operations for a period of not less than 12 months from the date of signing the financial report. Furthermore, the Consolidated Entity has the ability to adjust its cash flows to ensure that it can pay its debts as and when they fall due. Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Consolidated Entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Consolidated Entity only. Supplementary information about the parent entity is disclosed in note 27. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of icetana Limited ('company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. icetana Limited and its subsidiaries together are referred to in these financial statements as the 'Consolidated Entity'. Subsidiaries are all those entities over which the Consolidated Entity has control. The Consolidated Entity controls an entity when the Consolidated Entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the 20 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated Entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated Entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Consolidated Entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Consolidated Entity. Losses incurred by the Consolidated Entity are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the Consolidated Entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Consolidated Entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports to the Board. The Board is responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The financial statements are presented in Australian dollars, which is icetana Limited's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. Revenue recognition The Consolidated Entity recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Consolidated Entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Consolidated Entity: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to 21 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. Sale of goods Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of implementation. Rendering of services Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Government grants Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants are netted off against the expenditure to which they relate. Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a ● transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. ● Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. 22 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. icetana Limited does not have any wholly-owned Australian subsidiaries and has not formed an income tax consolidated group under the tax consolidation regime. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Consolidated Entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Consolidated Entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Consolidated Entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Contract assets Contract assets are recognised when the Consolidated Entity has transferred goods or services to the customer but where the Consolidated Entity is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes. Customer acquisition costs Customer acquisition costs are capitalised as an asset where such costs are incremental to obtaining a contract with a customer and are expected to be recovered. Customer acquisition costs are amortised on a straight-line basis over the term of the contract. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained or which are not otherwise recoverable from a customer are expensed as incurred to profit or loss. Incremental costs of obtaining a contract where the contract term is less than one year is immediately expensed to profit or loss. Customer fulfilment costs 23 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) Customer fulfilment costs are capitalised as an asset when all the following are met: (i) the costs relate directly to the contract or specifically identifiable proposed contract; (ii) the costs generate or enhance resources of the Consolidated Entity that will be used to satisfy future performance obligations; and (iii) the costs are expected to be recovered. Customer fulfilment costs are amortised on a straight-line basis over the term of the contract. Right of return assets Right of return assets represents the right to recover inventory sold to customers and is based on an estimate of customers who may exercise their right to return the goods and claim a refund. Such rights are measured at the value at which the inventory was previously carried prior to sale, less expected recovery costs and any impairment. Inventories Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable. Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Cash flow hedges Cash flow hedges are used to cover the Consolidated Entity's exposure to variability in cash flows that is attributable to particular risks associated with a recognised asset or liability or a firm commitment which could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income through the cash flow hedges reserve in equity, whilst the ineffective portion is recognised in profit or loss. Amounts taken to equity are transferred out of equity and included in the measurement of the hedged transaction when the forecast transaction occurs. Cash flow hedges are tested for effectiveness on a regular basis both retrospectively and prospectively to ensure that each hedge is highly effective and continues to be designated as a cash flow hedge. If the forecast transaction is no longer expected to occur, the amounts recognised in equity are transferred to profit or loss. If the hedging instrument is sold, terminated, expires, exercised without replacement or rollover, or if the hedge becomes ineffective and is no longer a designated hedge, the amounts previously recognised in equity remain in equity until the forecast transaction occurs. Non-current assets or disposal groups classified as held for sale Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continued use. They are measured at the lower of their carrying amount and fair value less costs of disposal. For non-current assets or assets of disposal groups to be classified as held for sale, they must be available for immediate sale in their present condition and their sale must be highly probable. An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal groups to fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of a non-current assets and assets of disposal groups, but not in excess of any cumulative impairment loss previously recognised. Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of assets held for sale continue to be recognised. 24 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current assets. The liabilities of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current liabilities. Associates Associates are entities over which the Consolidated Entity has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post- acquisition changes in the Consolidated Entity's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment. When the Consolidated Entity's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the Consolidated Entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Consolidated Entity discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss. Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at fair value through profit or loss Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income include equity investments which the Consolidated Entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. Impairment of financial assets The Consolidated Entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Consolidated Entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit 25 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss. Property, plant and equipment Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Leasehold improvements Plant and equipment 40 years 3-10 years 3-7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Consolidated Entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits. Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Consolidated Entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Consolidated Entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Intangible assets Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are 26 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period. Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed. Research and development Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Consolidated Entity is able to use or sell the asset; the Consolidated Entity has sufficient resources and intent to complete the development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 years. Patents and trademarks Significant costs associated with patents and trademarks are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of ten years. Customer contracts Customer contracts acquired in a business combination are amortised on a straight-line basis over the period of their expected benefit, being their finite life of five years. Software Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of five years. Impairment of non-financial assets Goodwill and other 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 might be impaired. Other non- financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Contract liabilities Contract liabilities represent the Consolidated Entity's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the Consolidated Entity recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the Consolidated Entity has transferred the goods or services to the customer. Refund liabilities Refund liabilities are recognised where the Consolidated Entity receives consideration from a customer and expects to refund some, or all, of that consideration to the customer. A refund liability is measured at the amount of consideration received or receivable for which the Consolidated Entity does not expect to be entitled and is updated at the end of each reporting period 27 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) for changes in circumstances. Historical data is used across product lines to estimate such returns at the time of sale based on an expected value methodology. Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method. The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement of financial position, net of transaction costs. On the issue of the convertible notes the fair value of the liability component is determined using a market rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Consolidated Entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred. Provisions Provisions are recognised when the Consolidated Entity has a present (legal or constructive) obligation as a result of a past event, it is probable the Consolidated Entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, 28 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Share-based payments Equity-settled and cash-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Consolidated Entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows: ● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date. ● All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle the liability. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Consolidated Entity or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Consolidated Entity or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction 29 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognised when declared during the financial year and no longer at the discretion of the company. Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Icetana Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. 30 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 1. Significant accounting policies (continued) New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Consolidated Entity for the annual reporting period ended 30 June 2021. The Consolidated Entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Consolidated Entity. Note 2. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Consolidated Entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Consolidated Entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Consolidated Entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Share-based payment transactions The Consolidated Entity measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black- Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to note 22 for further information. Revenue from contracts with customers involving sale of goods When recognising revenue in relation to the sale of goods to customers, the key performance obligation of the Consolidated Entity is considered to be the point of delivery of the goods to the customer, as this is deemed to be the time that the customer obtains control of the promised goods and therefore the benefits of unimpeded access. Determination of variable consideration Judgement is exercised in estimating variable consideration which is determined having regard to past experience with respect to the goods returned to the Consolidated Entity where the customer maintains a right of return pursuant to the customer contract or where goods or services have a variable component. Revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimation of useful lives of assets The Consolidated Entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. 31 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 2. Critical accounting judgements, estimates and assumptions (continued) Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The Consolidated Entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the Consolidated Entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions. Income tax The Consolidated Entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Consolidated Entity recognises liabilities for anticipated tax audit issues based on the Consolidated Entity's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only if the Consolidated Entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Consolidated Entity's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Consolidated Entity reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Incremental borrowing rate Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Consolidated Entity estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment. Employee benefits provision As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. 32 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 3. Operating segments Identification of reportable operating segments The Board assess the Consolidated Entity’s performance based on geographical areas of operation. Accordingly, the Consolidated Entity has identified 3 reportable segments, which are presented below: Segment Asia Pacific (APAC) North America (NA) Information Responsible for all sales, marketing and product development efforts in Australia and the broader Asia Pacific region Responsible for all sales and marketing efforts in the United States and Canada Europe, Middle East & Africa (EMEA) Responsible for all sales and marketing efforts in Europe, the Middle East and Africa Cost of revenue (included in EBITDA) are all the costs directly attributable to the ongoing delivery of the product. Sales and marketing costs include direct in-country costs. A portion of general and administration costs, representing general operating and product development expenses, remain unallocated in determining the segment contribution presented by the Board. The assets and liabilities of the Consolidated Entity are reported and reviewed by the Board in total and are not allocated by operating segment. Operating segment assets and liabilities are therefore not disclosed. Operating segment information Note APAC $ NA $ EMEA $ Total $ Consolidated - 30 June 2021 Revenue Sales to external customers Intersegment sales Total sales revenue Intersegmental eliminations Interest revenue Other revenue Total segment revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Profit before income tax expense Income tax expense Profit after income tax expense 5 6 882,067 341,975 167,266 - 437,170 - 1,486,503 341,975 1,224,043 (341,975) 4,817 444,636 1,331,520 167,266 - - - 167,266 437,170 - - - 437,170 1,828,479 (341,975) 4,817 444,636 1,935,956 (2,695,240) (119,607) 19,569 (1,231) (35,944) (22,190) (2,711,615) (143,027) 4,817 - (2,810,030) - - 18,338 - - 4,817 - (58,134) (2,849,826) 626,957 (2,183,073) - 18,338 - (58,134) 626,957 (2,222,870) 33 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 3. Operating Segments (continued) Note 3. Operating segments (continued) Consolidated – 30 June 2020 Revenue Sales to external customers Intersegment sales Total sales revenue Intersegment eliminations Other revenue Interest revenue Total segment revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Profit before income tax expense Income tax expense Profit after income tax expense Note 4. Revenue APAC $ NA $ EMEA $ Total $ 533,210 335,058 868,268 182,000 11,331 1,061,599 (3,282,927) (106,277) 11,331 - (3,377,873) 709,141 (2,668,732) 197,543 - 197,543 (89,578) 450,343 - 450,343 (245,480) - 107,965 - 204,863 1,181,096 335,058 1,516,153 (335,058) 182,000 11,331 1,374,427 (284,915) (2,720) - - (287,635) - (287,635) (172,581) (28,701) - - (201,282) - (201,282) (3,740,423) (137,698) 11,331 - (3,866,790) 709,141 (3,157,649) Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated Types of revenue and other income Recurring revenue Enterprise revenue Total sales revenue Geographical regions APAC NA EMEA Revenue by industry Education Retail Commercial and other 2021 $ 2020 $ 932,857 553,646 1,486,503 882,067 167,266 437,170 1,486,503 302,541 712,176 471,787 1,486,503 704,345 476,751 1,181,096 533,210 197,543 450,343 1,181,096 307,432 514,275 359,389 1,181,096 34 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 5. Other income Government stimulus for COVID-19 Grant income Total other income Note 6. Other expenses Insurance Legal fees Rent and outgoings Travel Other Total other expenses Note 7. Income tax expense R&D tax incentive income Current tax Deferred tax Aggregate income tax expense 30 Jun 2021 30 Jun 2020 $ $ 407,000 37,636 182,000 - 444,636 182,000 119,591 39,603 14,694 31,666 288,597 121,440 46,360 96,775 232,233 245,557 494,150 742,365 (626,957) - - (709,141) - - (626,957) (709,141) Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (2,849,826) (3,866,790) Tax at the statutory rate of 26% (2020: 27.5%) Tax effect of R&D tax incentive income Tax effect of permanent differences Tax effect of temporary differences Tax losses unrecognised / (recouped) Aggregate income tax expense (740,954) (1,063,367) (163,009) 451,175 (21,839) (152,330) (195,014) 478,667 (43,129) 113,703 (626,957) (709,141) (a) The Company has revenue losses of approximately $8,079,255 (2020: $6,920,520) for which no deferred tax asset has been recognised. (b) The Company has no franking credits currently available for future offset. 35 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 8. Current assets - cash and cash equivalents Cash at bank Cash on deposit Total current assets Note 9. Current assets – trade and other receivables Trade receivables Sundry debtors Total trade and other receivables The ageing of trade receivables is as follows: Not overdue 0 to 3 months overdue 3 to 6 months overdue Total trade receivables 30 Jun 2021 30 Jun 2020 $ $ 1,713,847 25,000 2,548,741 92,974 1,738,847 2,641,715 329,527 880 476,166 46,166 330,408 522,332 3,798 17,118 308,611 73,188 101,640 301,338 329,527 476,166 The Consolidated Entity has increased its monitoring of debt recovery as there is an increased probability of customers delaying payment or being unable to pay, due the Coronavirus (COVID-19) pandemic. There is no allowance for expected credit losses due to the nature of revenue transactions and current limited number of customers meaning that all customers can individually be reviewed for potential debt issues. Since 30 June 2021, $281,927 of the $308,611 ‘3 to 6 months overdue’ portion has been received. The remaining balance has been assessed and is considered receivable. Note 10. Prepayments Prepaid insurance Other prepayments Total prepayments 64,428 43,013 72,263 45,965 107,441 118,228 36 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 11. Non-current assets - property, plant and equipment Structural improvements - at cost Less: Accumulated depreciation Computers & office equipment - at cost Less: Accumulated depreciation Low value pool - at cost Less: Accumulated depreciation Total property, plant and equipment 30 Jun 2021 30 Jun 2020 $ $ - - - 77,244 (5,753) 71,491 225,733 (161,924) 63,809 240,248 (176,721) 63,527 368 (314) 54 679 (519) 160 63,863 135,178 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below: Balance at 30 June 2021 - 63,809 54 63,863 Consolidated Balance at 1 July 2020 Additions Disposals Depreciation expense Consolidated Balance at 1 July 2019 Additions Disposals Depreciation expense $ $ Structural improvements Computer & Low value Office Equipment $ pool $ 71,491 - (71,327) (164) 63,527 37,858 (13,261) (24,315) 160 - - (106) Structural improvements Computer & Low value Office Equipment $ pool $ 73,422 - - (1,931) 63,527 30,295 (3,261) (40,271) 322 - - (162) Total $ 135,178 37,858 (84,588) (24,585) Total $ 150,509 30,295 (3,261) (42,365) Balance at 30 June 2020 71,491 63,527 160 135,178 37 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 12. Trade and other payables Trade payables PAYG withholding payable Accrued expenses Net GST/VAT (refundable) / payable Sundry creditors Total trade and other payables Note 13. Unearned revenue Current – unearned revenue Non-current – unearned revenue Total unearned revenue Unearned revenue by segment: Current – unearned revenue Non-current – unearned revenue Note 14. Employee provisions Provision for annual leave Provision for long service leave Provision for employee entitlements Current employee provisions Provision for long service leave Non-current employee provisions Note 15. Provisions Lease make good Total provisions 30 Jun 2021 $ 30 Jun 2020 $ 125,544 38,457 117,162 (5,084) 8,946 128,515 40,097 92,906 (9,324) 11,869 285,025 264,064 754,665 208,346 804,745 143,808 963,010 948,553 APAC 282,254 22,387 NA 159,824 185,959 EMEA 312,586 - Total 754,665 208,346 304,641 345,783 312,586 963,010 84,322 - 28,577 77,363 - 12,355 112,899 89,718 14,382 15,452 14,382 15,452 - - 15,000 15,000 The one-off provision in the prior year represented the present value of estimated costs to make good the Australian premises leased by the Consolidated Entity at the end of the lease term. 38 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 16. Right-of-use assets Cost Accumulated depreciation Carrying value Note 17. Lease liabilities Current liabilities Total lease liabilities 30 Jun 2021 30 Jun 2020 $ $ 141,008 (97,913) 83,152 (67,316) 43,095 15,836 43,095 15,836 43,095 15,836 The Consolidated Entity leases its operating premises. The current lease for the Australian premises is a nine month contract from 1 April 2021 to 31 December 2021, and will continue on a month on month basis thereafter. A lease was renewed for the office in Dubai (for EMEA operations) during the year. This lease expires in February 2022 and is represented by the lease liability above. Note 18. Equity - Issued capital Ordinary shares – fully paid A Class Preference Shares B Class Preference Shares C Class Preference Shares Share issue costs Total 30 Jun 2021 30 Jun 2020 30 Jun 2021 30 Jun 2020 Shares Shares $ $ 137,040,093 137,040,093 19,886,781 19,886,781 - - - - - - 137,040,093 137,040,093 19,886,781 19,886,781 - - - - - - (1,313,195) (1,313,195) 18,573,586 18,573,586 39 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 18. Equity – Issued capital (continued) Movements in ordinary share capital Details Opening Balance Date Shares Issue price $ 1 July 2018 5,023,339 13,717,127 Issue of C Class Preference Shares 20 July 2018 21,123 50,000 Balance 30 June 2019 5,044,462 13,767,127 Conversion of Convertible Notes Shares issued on exercise of options (post-split) Share split of ordinary shares Share split of A Class Preference Shares Share split of B Class Preference Shares Share split of C Class Preference Shares Share issued on IPO Share issue costs (share based payments) Share issue costs 18 December 2019 18 December 2019 18 December 2019 18 December 2019 18 December 2019 18 December 2019 18 December 2019 6,250,000 1,760,954 6,358,523 9,537,785 10,785,997 72,302,372 25,000,000 $0.160 $0.068 $0.200 1,000,000 119,654 - - - - 5,000,000 (607,655) (705,540) Balance 30 June 2021 137,040,093 18,573,586 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. Share buy-back There is no current on-market share buy-back. Capital risk management The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Consolidated Entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current company's share price at the time of the investment. The Consolidated Entity is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies. The Consolidated Entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk management decisions. There have been no events of default on the financing arrangements during the financial year. The Board manages the capital requirements of the Consolidated Entity on an ongoing basis. 40 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 19. Reserves As at 30 June, the Consolidated Entity had the following reserve accounts: (a) Foreign currency translation (b) Performance rights (c) Options Total reserves 30 Jun 2021 30 Jun 2020 $ $ 33,883 - 1,279,128 (164,089) - 726,354 1,313,011 562,265 (a) Foreign currency translation The foreign currency reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. Opening balance Movement Closing balance 30 Jun 2021 30 Jun 2020 $ $ (164,089) 197,971 (135,833) (28,256) 33,883 (164,089) (b) Performance rights The performance rights reserve is used to recognise expenses on valuations of performance rights. Performance rights will be expensed upon vesting conditions being met (see vesting conditions below). Details Opening balance Issued during the year Expired during the year Closing balance 30 Jun 2021 30 Jun 2020 30 Jun 2021 30 Jun 2020 Number Number $ $ 3,000,000 - (1,650,000) - 3,000,000 - 1,350,000 3,000,000 - - - - - - (c) Options and Performance Rights The option reserve is used to recognise expenses on valuation of share options. In accordance with AASB 2, the value of options granted has been independently assessed. Details Opening balance Issue of new ESIP options during the year Options expired, or forfeited pursuant to leaver provisions Expense recognised as existing ESIP options vest Closing balance Number $ 61,164,610 726,354 9,492,702 (11,858,698) - 116,777 - 435,997 58,798,614 1,279,128 The Company expenses any valuation of the share options as they accrue over time. As at 30 June 2021, the Company has recognised a cumulative employee share-based payment expense of $1,279,128 in relation to these options. 41 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 19. Reserves (continued) Over the year the Company granted a total of 9,492,702 ESIP options to employees, consultants and directors of the Consolidated Entity: following shareholder approval at the 2020 Annual General Meeting, 5,642,702 options (series 2) were granted to Matthew Macfarlane on 27 November 2020; on 16 October 2020, 300,000 options (series 2) were granted to employees; on 18 March 2021, 400,000 options (series 2) were granted to employees; on 2 June 2021, 3,150,000 options (series 3) were granted to employees and consultants. A further 468,870 options (series 3) will be granted subject to shareholder approval at the Annual General Meeting to Deanna Carpenter. One third of the above options will vest 12 months after their respective issue date, with the remaining two thirds of the options vesting on a quarterly basis thereafter until two years after the end of year one. During the year 11,858,698 options expired, or were forfeited under the leaver provisions of the ESIP. In addition to the options, the Company has in issue 1,350,000 performance rights, with vesting conditions as follows: Number 450,000 450,000 450,000 Vesting Conditions $6m revenue in the 12-month audited period ending 31 December 2021 $10m revenue in the 12-month audited period ending 31 December 2022 Expiry Date 23 December 2024 23 December 2024 $12m revenue in the 12-month audited period ending 31 December 2024 23 December 2024 The fair value of the equity settled options/performance rights as at the date of grant using the Black-Scholes model taking into account the terms and conditions upon which the options were granted is as follows: Number Grant Date Expiry Date Exercise Price Fair value at grant date Vesting date Value Accrued $ ESIP Options (series 3) ESIP Options (series 2a) ESIP Options (series 2b) ESIP Options (series 2c) ESIP Options (series 1) Lead Broker Options Performance Rights 3,150,000 12,686,272 2 Jun 25 2 Jun 21 1 May 20 31 Mar 24 300,000 16 Oct 20 31 Mar 24 400,000 18 Mar 21 31 Mar 24 6,635,906 20 Dec 19 30 Nov 23 5,626,436 18 Dec 19 23 Dec 22 1,350,000 18 Dec 19 23 Dec 24 $0.25 $0.25 $0.25 $0.25 $0.30 $0.30 Nil $0.049 As above $0.093 As above $0.084 As above $0.071 As above $0.125 As above $0.108 18 Dec 19 $0.200 As above - 310,861 3,430 1,104 356,078 607,655 - 1,279,128 Dividend yields Expected volatility Risk-free interest rate Expected life Exercise price Grant date share price ESIP ESIP Lead broker options 0% 100% 2.04% 3 years $0.30 $0.20 options series 1 0% 100% 2.04% 4 years $0.30 $0.20 options series 2a 0% 100% 0.41% 3.92 years $0.25 $0.155 ESIP options series 2b 0% 120% 0.25% 3.46 years $0.25 $0.13 ESIP options series 2c 0% 120% 0.25% 3.04 years $0.25 $0.12 ESIP options series 3 0% 100% 0.25% 4 years $0.25 $0.095 Performan ce rights 0% 100% 2.04% 5 years Nil $0.20 42 icetana Limited Notes to the financial statements 30 June 2021 Note 20. Earnings per share Total comprehensive loss for the year: Loss after income tax Non-controlling interest 30 Jun 2021 $ 30 Jun 2020 $ (2,048,307) 70,393 (3,237,994) 30,943 Loss after income tax attributable to the owners of icetana Limited (1,977,913) (3,207,051) Basic earnings per share Diluted earnings per share Cents Cents (1.49) (1.49) (2.66) (2.66) Number Number Weighted average number of ordinary shares Weighted average number of ordinary shares used in calculating basic loss per share Adjustments for calculation of diluted loss per share: Options over ordinary shares 137,040,093 121,707,136 Nil Nil Weighted average number of ordinary shares used in calculating diluted earnings per share 137,040,093 121,707,136 Note 21. Equity – non-controlling interest Accumulated losses at the start of the year Net (loss) / profit attributable to non-controlling members Accumulated losses at the end of the year Note 22. Equity – retained earnings Retained losses at the beginning of the financial year Loss after income tax expense for the year Retained losses at the end of the financial year Note 23. Dividends There were no dividends declared or paid during the year. 43 30 Jun 2021 30 Jun 2020 $ $ (311,049) 70,393 (341,992 30,943 (240,656) (311,049) (16,029,612) (12,819,874) (3,209,738) (2,246,278) (18,275,890) (16,029,612) icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 24. Financial instruments Financial risk management objectives The Consolidated Entity’s objective is to manage working capital so as to safeguard the Consolidated Entity’s ability to continue as a going concern so that the Consolidated Entity can provide returns for shareholders. The Consolidated Entity’s activities expose it to a variety of financial risks which may include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Consolidated Entity’s risk management program seeks to minimise potential adverse effects on the financial performance of the Consolidated Entity. Market risk Foreign currency risk The Consolidated Entity undertakes certain transactions denominated in foreign currencies, hence exposure to exchange rate fluctuations. The significant exposures are United States Dollar (USD), United Arab Emirates Dirham (AED) Singapore Dollar (SGD) and British Pound (GBP) currency fluctuations. Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity’s functional currency. The risk is managed using sensitivity analysis and cash flow forecasting. Interest rate risk The Consolidated Entity’s exposure to interest rate risk is limited to fluctuations in the rate of interest earned or payable in respect of cash balances as all other interest rates are fixed. Fluctuating interest rates are not expected to have a significant impact on earnings or equity. Price risk The Consolidated Entity is not exposed to any significant price risk. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated Entity. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Consolidated Entity does not hold any collateral. As disclosed in note 10, due to the Coronavirus (COVID-19) pandemic, the Consolidated Entity has increased its monitoring of debt recovery as there is an increased probability of customers delaying payment or being unable to pay. The Consolidated Entity does not have an allowance for expected loss due to the nature and small size of its customer base. Customer renewals occurred when due during the year and material renewal receivables as at 30 June 2021 have been received post year end. Generally, trade receivables are written off when there is no reasonable explanation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. Liquidity risk Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets (mainly cash and cash equivalents) to be able to pay debts as and when they become due and payable. There are no arranged available borrowing facilities at reporting date due to the strong cash position. The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves (and would obtain available borrowing facilities if deemed necessary) by continuously monitoring actual and forecast cash flows and matching maturity profiles of financial assets and liabilities. Financing arrangements There are no borrowing facilities as at the reporting date. 44 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 24. Financial instruments (continued) Remaining contractual maturities The following tables detail the Consolidated Entity's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. Weighted average interest rate % Weighted average interest rate % Consolidated – 2021 Trade payables Insurance funding Accrued expenses R&D advance Sundry creditors Unearned revenue Lease liability Total Consolidated – 2020 Trade payables Insurance funding Accrued expenses R&D advance Sundry creditors Unearned revenue Lease liability Total 1 year or less $ 1 to 2 years $ Over 2 years $ 125,544 - 117,162 - 8,946 754,665 43,095 1,049,412 - - - - - 186,857 - 186,857 - - - - - 21,489 - 21,489 1 year or less $ 1 to 2 years $ Over 2 years $ 128,515 - 92,906 - 11,869 804,745 15,836 1,053,871 - - - - - 143,808 - 143,808 - - - - - - - - Remaining contractual maturities $ 125,544 - 117,162 - 8,946 963,010 43,095 1,257,757 Remaining contractual maturities $ 128,515 - 92,906 - 11,869 948,553 15,836 1,197,679 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 25. Contingent liabilities and contingent assets There are no contingent assets or liabilities as at the reporting date. 45 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 26. Related party transactions Parent entity icetana Ltd is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 29. Associates There are no associates. Key management personnel (KMP) Any person(s) having authority and responsibility for planning, directing and controlling the activities of the Consolidated Entity, directly or indirectly, including any elected member, are considered KMP. KMP are employed by the Consolidated Entity under normal employment terms and conditions. The aggregate compensation made to directors and other members of KMP of the Consolidated Entity is set out below: Short-term employee benefits Post-employment benefits Long-term benefits Share-based payments 30 Jun 2021 30 Jun 2020 $ $ 678,289 50,657 3,580 444,796 990,065 78,579 6,593 107,449 1,177,322 1,182,686 Short-term employee benefits include salary, fringe benefits and cash bonuses awarded to KMP. Post-employment benefits are the current year’s estimated cost of providing for the Consolidated Entity’s superannuation contributions made during the year. Long-term benefits represent annual leave and long service leave benefits accruing during the year. Disclosures relating to key management personnel are also set out in remuneration report included in the directors’ report. Transactions with related parties The following transactions occurred with related parties: Payment for goods and services: Payment for legal services from HWL Ebsworth Lawyers (director-related entity of Deanne Carpenter) Payment for compliance advice from Scale Partners Pty Ltd (entity controlled by Rafael Kimberley-Bowen) Payment for rental space from Spacecubed (director-related entity of Matthew Macfarlane) 1,240 15,571 108,842 - - - The Consolidated Entity’s main related parties are as follows: KMP - as defined above Other related parties – Any entity that is controlled by or over which KMP, or close family members of KMP, have authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, are considered related parties in relation to the Consolidated Entity. Entities subject to significant influence by the Consolidated Entity – An entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity which holds significant influence. Significant influence may be gained by share ownership, statute or agreement. Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. 46 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 27. Remuneration of auditors During the financial year the following fees were paid or payable for services rendered by Butler Settineri (Audit) Pty Ltd, the auditor of the Consolidated Entity, its network firms and unrelated firms: Audit services – Butler Settineri (Audit) Pty Ltd Audit of the financial statements Other services – Hermsley Unit Trust t/a Butler Settineri Preparation of financial statements Note 28. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Loss after income tax Total comprehensive income Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Issued capital Reserves Retained losses Total equity 47 30 Jun 2021 $ 30 Jun 2020 $ 19,161 21,869 - 4,900 19,161 26,769 Parent 30 Jun 2021 30 Jun 2020 $ $ (2,183,073) (2,668,733) (2,183,073) (2,668,733) Parent 30 Jun 2021 30 Jun 2020 $ $ 6,029,553 7,674,403 6,091,624 7,806,068 582,897 665,972 597,279 681,424 18,573,586 18,573,586 726,354 (14,358,369) (12,175,296) 1,279,128 5,494,345 7,124,644 icetana Limited Notes to the financial statements For the year ended 30 June 2021 Note 29. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries in accordance with the accounting policy described in note 1: Name icetana Inc icetana Ltd Principal place of business / Country of incorporation United States of America United Kingdom Ownership Interest 2021 % 100% 100% 2020 % 100% 100% The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary with non- controlling interests in accordance with the accounting policy described in note 1: Name Principal place of business / Country of incorporation Icetana Systems Software Trading LLC United Arab Emirates (UAE) Ownership Interest 2021 % 49% 2020 % 49% The corporate regulations in the UAE require a local company to be a minimum 51% owned by a local UAE individual or company. This is a common structure for foreign companies establishing UAE subsidiaries for trading purposes. Under the structure, the Company’s local UAE representative, via a Management Agreement, provides control of corporate decisions to the Company. LLC has no rights or ownership of the Company’s core intellectual property assets. All subsidiaries have the same principal activities as the parent entity. Note 30. Events after the reporting period The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not been financially positive for the Consolidated Entity up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future financial years. 48 icetana Limited Notes to the financial statements 30 June 2021 Note 27. Earnings per share (continued) Note 31. Reconciliation of profit after income tax to net cash from operating activities Loss after income tax expense for the year Adjustments for: Depreciation and amortisation Loss on disposal of assets Share based payment expense Income tax Defit provision adjustment Change in operating assets and liabilities Decrease / (increase) in trade and other receivables Decrease / (increase) in prepayments Decrease / (increase) in inventory and other assets Increase / (decrease) in trade and other payables Increase / (decrease) in provisions Increase / (decrease) in unearned revenue Consolidated 30 Jun 2021 30 Jun 2020 $ $ (2,222,870) (3,157,649) 143,027 72,741 552,774 209,140 (15,000) 191,924 10,787 (30,684) 20,961 22,111 14,457 137,698 16,031 118,699 352,256 - 27,869 33,687 9,788 (834,762) (83,520) 424,484 Net cash from operating activities (1,030,632) (2,923,748) 49 icetana Limited Directors' declaration 30 June 2021 In the directors' opinion: ● ● ● the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Regulations 2001; the attached financial statements and notes give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2021 and of its performance for the financial year ended on that date; and there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Mark Potts Non-Executive Chairman 26 August 2021 Perth, Western Australia 50 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ICETANA LIMITED Report on the Financial Report Opinion We have audited the financial report of icetana Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit and loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, (a) the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: i) giving a true and fair view of the Group’s financial position as at 30 June 2021 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 have conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under the Auditor’s in those Standards are Responsibilities for the Audit of the Financial Report section of our report. further described We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our ethical requirements 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 date 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 significant 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, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter Share Options Refer note 19 the the Group year, During successfully issued various options of which some have been exercised. Revenue Refer note 4 The Group recognizes revenue when the performance obligation under the sales contract This performance obligation is achieved upon delivery of the services or implementations. is achieved. How we addressed the Key Audit Matter included an Our audit procedures examination of share options issued during the year as shown in note 19. We assessed whether or not share-based payments should have been recognised in relation to the Employee Share Incentive Plan and assessed the assumptions used share-based the in payments. We have reviewed the Group’s revenue recognition policy for compliance with the accounting standard AASB 15: Revenue from Contracts with Customers (“AASB 15”). calculation of tests of control over We performed management’s internal control system as it relates to revenue. Research and Development Tax Incentive Refer note 7 and estimates Management utilise key assumptions, judgements in determining the R&D Tax Incentive disclosed in note 7 which is material to the financial statements. Deferred Taxation Refer note 7 and Management utilise key assumptions, judgements in calculating the deferred tax disclosed in note 1 which are material the financial statements. estimates to audit procedures the of We performed detailed analytical and substantive procedures to obtain evidence as to the accuracy, completeness and occurrence of revenue. an included Our evaluation assumptions, methodologies and conclusions used by the Group in preparing the R&D Tax Incentive application. We also focused on the adequacy of financial report disclosures regarding these assumptions as disclosed at note 1. audit procedures the of included an Our evaluation assumptions, methodologies and conclusions used by the Group in preparing their estimate of deferred taxes. We also focused on the adequacy of financial report disclosures regarding these assumptions as disclosed at note 1. Other information The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2021, 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. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the 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 and 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 the financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain and understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significant in the audit of the financial report of the current period and are therefore key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included on pages 6 to 13 of the directors’ report for the year ended 30 June 2021. In our opinion, the Remuneration Report of icetana Limited and its controlled entities, for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BUTLER SETTINERI (AUDIT) PTY LTD ROBERT HALL CA Director Perth Date: 26 August 2021 Corporate Governance The Company believes corporate governance is a critical pillar on which business objectives and, in turn, shareholder value must be built. The Board of icetana Limited has adopted a suite of charters and key corporate governance documents which articulate the policies and procedures followed by the Company. These documents are available in the Corporate Governance section of the Company’s website, https://icetana.com/corporate-governance/. These documents are reviewed to address any changes in governance practices and the law. The Company’s 2021 Corporate Governance Statement, which is current as at 30 June 2021 and has been approved by the Company’s Board, explains how icetana complies with the ASX Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations – 4th Edition’ in relation to the year ended 30 June 2021. The Corporate Governance Statement is available in the Corporate Governance section of the Company’s website, https://icetana.com/corporate-governance/ and will be lodged with ASX together with an Appendix 4G at the same time that this Annual Report is lodged. In addition to the ASX Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations – 4th Edition’ the Board has taken into account a number of important factors in determining its corporate governance policies and procedures; including the: • Relatively simple operations of the Company, which currently provides video analytics solutions designed to automatically identify anomalous actions in real-time for large scale surveillance networks • Cost verses benefit of additional corporate governance requirements or processes; • Size of the Board; • Board’s experience in the technology sector; • Organisational reporting structure and number of reporting functions, operational divisions and employees; • Relatively simple financial affairs with limited complexity and quantum; • Relatively moderate market capitalisation and economic value of the entity; and • Direct shareholder feedback. ASX Additional Information 1. Twenty Largest Holders of Listed Securities The names of the twenty largest holders of listed securities as at 7 October 2021 are listed below: Name Number of Ordinary Shares % 1 2 3 4 5 6 7 8 9 10 Go Capital Tech Fund 2 Pty Ltd Yuuwa Capital LP Skiptan Pty Ltd Curtin University BNP Paribas Nominees Pty Ltd Svetha Venkatesh Darien Industries Pty Ltd GE Equity Investments Pty Ltd Dr Angie Natalie Pinto & Mr Douglas Pinto Mr Kenneth Alan Rising & Mrs Maria Rising Nullaki Services Pty Ltd Kuppe Superannuation Fund Pty Ltd Cadvantage Australia Pty Ltd Citicorp Nominees Pty Limited 11 12= Mihai Lazarescu 12= Budhaditya Saha 12= Duc-Son Pham 15 16 17 18= Darien Industries Pty Ltd 18= Whitsunday 43 Yachts Pty Ltd 18= Dr Garry Desmond Garside & Mrs Frances Sambrailo Garside Total Top 20 Others Total Ordinary Shares on Issue 39,550,195 32,974,528 14,455,042 9,718,940 2,102,210 1,304,222 1,200.098 1,200,000 1,108,470 28.86 24.06 10.55 7.09 1.53 0.95 0.88 0.88 0.81 1,000,000 0.73 924,649 791,041 791,041 791,041 651,046 520,809 509,605 500,000 500,000 500,000 0.67 0.58 0.58 0.58 0.48 0.38 0.37 0.36 0.36 0.36 111,092,937 81.07 18.93 137,040,093 100.00 25,947,156 2. Distribution of Equity Securities An analysis of numbers of holders of shares by size of holding as at 7 October 2021 is listed below: Holding Ranges Holders Ordinary Shares % of Ordinary Shares 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 More than 100,000 Totals 21 110 132 269 84 616 3,808 393,996 1,149,129 10,548,780 124,994,380 137,040,093 0.00 0.29 0.84 7.70 91.17 100.00 There were 98 shareholdings with less than a marketable parcel. 3. Distribution of Unlisted Securities An analysis of numbers of holders of options by size of holding as at 7 October 2021 is listed below: Holding Ranges Holders Options % of total options 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 More than 100,000 Totals 4. Voting Rights 0 1 3 36 41 81 0 4,167 26,666 1,944,674 56,323,107 58,298,614 0.00 0.01 0.05 3.34 96.61 100.00 Each ordinary share is entitled to vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands. There are no voting rights attaching to any class of equity securities other than shares. 5. Substantial shareholders Substantial holders who have notified the Company in accordance with section 671B of the Corporations Act 2001 are as follows: Holder Name Number of Shares % holding Go Capital Tech Fund 2 Pty Ltd Yuuwa Capital LP Skiptan Pty Ltd Curtin University 39,550,195 32,974,528 14,455,042 9,718,940 28.86 24.06 10.55 7.09 6. Unquoted Securities Unlisted Options Holder Go Capital Tech Fund 2 Pty Ltd Yuuwa Capital LP Dale Allan Bryan Others (less than 20%) Total Total holders Unlisted Options Holder Shareholder Options Exercisable at $0.30 Exp. 18 Dec 2022 Shareholder Options Exercisable at $0.50 Exp. 18 Dec 2024 Options Exercisable at $0.30 Exp 18 Dec 2022 5,005,222 5,005,222 - 4,675,465 - 5,319,313 4,675,465 - 5,319,313 15,000,000 15,000,000 38 38 - 4,272,030 1,354,406 5,626,436 6 ESIP Options Exercisable at $0.30 Exp. 30 Nov 2023 ESIP Options Exercisable at $0.25 Exp. 31 Mar 2024 ESIP Options Exercisable at $0.25 Exp. 2 Jun 2025 Matthew Macfarlane Darien Industries Pty Ltd Rafael Kimberley-Bowen Others (less than 20%) Total Total holders 2,344,348 1,758,261 - 2,533,297 6,635,906 22 5,642,702 4,232,026 - 3,511,544 13,386,272 20 - - 1,500,000 1,150,000 2,650,000 8 As at 7 October 2021, there are 1,350,000 Performance Rights issued under an employee incentive scheme. 7. On-Market Buy-back There is no current on-market buy-back for icetana Limited securities. 8. Restricted Securities Category Number ASX or Voluntary End of Escrow Period Shares Shares 34,346,968 ASX 33,373,576 Voluntary The earlier of: 23 December 2021 - 23 December 2021; or - the 10-Day VWAP exceeding $0.50, provided that this is at least 15 months after admission to ASX and the aggregate value of Shares traded on ASX during that 10 trading day period exceeding $1,000,000 9. Other ASX Required Information During the period between admission to the Official List of ASX and the end of the reporting period, the Company used the cash, and assets in a form readily convertible to cash, that it had at the time of admission to the ASX, in a way consistent with its business objectives. This statement is made pursuant to ASX Listing Rule 4.10.19.
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