ANNUAL
REPORT
For the year ended 30 June 2023
Appendix 4E Preliminary Final Report
Chairman’s message
Dear Shareholders,
A year in review
As we close the fiscal year ending 30 June 2023, it is with great pride and optimism that
I reflect on the journey of icetana Limited this past year. More than any other year in
human history this was the year in which artificial intelligence (AI) became a global
phenomenon. The impact of developments such as ChatGPT, Dall-E, Midjourney, Github’s
Co-pilot and Google’s Bard has been enormous and icetana has embraced these new
technologies both within the business and within our product offering.
Our commitment to leveraging artificial intelligence for the detection of interesting
real-time events in video surveillance has proven to be somewhat prescient, and the
consistent performance across all four quarters is testament to the agility, resilience, and
innovation at the heart of our organisation.
During the September quarter our annualised recurring revenue (ARR) reflected a
healthy 20% year-on-year growth and we began to introduce the first examples of the
version 2 product drawing positive feedback from early trial customers.
The December quarter started with the private placement of shares to our strategic
partner and Japanese distributor Macnica, the initial launch and commercial sales of our
next generation software and new deals to further expand our campus security offerings.
Renewal of our long-standing relationship with Curtin University and a significant
contract with Monash University reaffirmed the trust our university clients place in our
solutions. We began to offer live product demos to global customers which bolstered our
market outreach.
The March quarter was challenging with some unexpected client losses and some
setbacks in our software development efforts. Despite this we negotiated a three year
extension of our largest customer contract with Majid al Futtaim (MAF) in Dubai and
secured new orders from Tamdeen in Kuwait.
Finally, the June quarter marked a strong finish to the fiscal year. Our ARR achieved 11%
year-on-year growth, underpinned by robust new sales of our V2 product which became
available for scale (greater than 50 camera deployments) from May 2022. Notably, the
swift integration of the ChatGPT prompt generator to auto-generate security reports
showcased our commitment to technological advancement.
Post year end
We are now in a strong financial position: the receipt of a material R&D tax incentive
return in August, a $2m private placement announced in September and the take-up of
our SPP in October together position the company extremely well for future investments
and sustained growth.
The receipt of a $1.5m order for hardware and deployment from MAF in September
already ensures the current financial year will be a year of record revenue for icetana as
a listed company.
icetana also completed a major executive transition with Kevin Brown taking on the chief
executive officer role as I moved to a non-executive chair position after almost five years
as Managing Director and CEO. Kevin has grasped the challenges of being CEO with the
same sense of excitement and skill as he previously displayed leading the company’s
operations in the COO role.
icetana has also recently hired a well-credentialed and very experienced chief revenue
officer with deep experience in technology-driven sales. This is a position that would
have been impossible to fill with such a strong candidate if not for the huge progress
made with icetana’s next generation product.
In thanks
I would like to express my profound gratitude to our dynamic executive team and
dedicated board members. Their commitment, good humour, strategic vision and
relentless drive have been pivotal in navigating the challenges and seizing the
opportunities that this year presented.
My particular thanks to outgoing chair Geoff Pritchard, who left an enduring mark on the
organisation through raising funds, leading early sales, introducing global partners and
representing the business to a wide range of stakeholders throughout his time with
icetana.
To Kevin Brown, Raf Kimberley-Bowen and Matt James who have worked as a high
functioning team I extend my greatest appreciation. All staff deserve a mention for the
extra effort made to get the company positioned for strong growth in 2024 and beyond.
As we look to the future, our focus remains clear: to innovate, expand sales, and provide
unique AI solutions to the video surveillance industry. With the faith of our shareholders
and partners, as well as the dedication of our extraordinary team, I am confident that
the coming years will be icetana’s best.
Thank you for your continued trust and support.
Warm regards,
Matthew Macfarlane
Non-Executive Chairman
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Appendix 4E
1. Company details
Name of entity:
ABN:
Reporting period:
Previous corresponding period:
Release date:
2. Results for announcement to the market
icetana Limited
90 140 449 725
Year ended 30 June 2023
Year ended 30 June 2022
30 August 2023
Revenues from ordinary activities
up
2% to
1,744,714
Loss from ordinary activities after tax attributable to the owners of icetana Limited down
32% to
2,055,678
Loss for the year attributable to the owners of icetana Limited
down
35% to
2,109,212
3. Statement of comprehensive income
Refer to the attached Financial Report for the year ended 30 June 2023.
4. Statement of financial position
Refer to the attached Financial Report for the year ended 30 June 2023.
5. Statement of cash flows
Refer to the attached Financial Report for the year ended 30 June 2023.
6. Statement of changes in equity
Refer to the attached Financial Report for the year ended 30 June 2023.
7. Dividend payments
Refer to the attached Financial Report for the year ended 30 June 2023. The Company does not propose to pay any
dividends in the current period.
8. Dividend reinvestment plans
Not applicable.
9. Net tangible assets
Net tangible assets per share (cents) *
30 Jun 2023
30 Jun 2022
0.21
0.83
* Net assets (excluding intangible assets and net deferred tax liabilities) divided by number of shares outstanding at the
end of the period.
10. Control gained over entities
Not applicable.
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Appendix 4E
11. Other significant information
Not applicable.
12. Foreign entities
Australian Accounting Standards are utilised when compiling the Financial Report.
13. Commentary on the results for the period
Refer to the Review of Operations section contained in the Directors Report.
14. Audit qualification or review
The above information is extracted or derived from the consolidated financial statements and notes attached below which
have been audited by Dry Kirkness (Audit) Pty Ltd.
Signed
Matthew Macfarlane
Non-Executive Chairman
Perth, Western Australia
Approved for release by the Board of icetana Limited
Date: 30 August 2023
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Corporate Directory
For the year ended 30 June 2023
Board of Directors
Geoff Pritchard
Non-Executive Chairman
Matthew Macfarlane
Managing Director and Chief Executive Officer
Colm O’Brien
Non-Executive Director
Clinton Snow
Non-Executive Director
Company Secretary
Rafael Kimberley-Bowen
Registered office and principal place of business
Level 32
152 St Georges Terrace
Perth
Western Australia 6000
Website
www.icetana.ai
Auditors
Dry Kirkness (Audit) Pty Ltd
Ground Floor
50 Colin Street
West Perth
Western Australia 6005
www.drykirkness.com.au
Share registry
Automic Registry Services
Level 5
191 St Georges Terrace
Perth
Western Australia 6000
www.automicgroup.com.au
Stock exchange
ASX Limited (ASX)
www.asx.com.au
ASX code
ASX:ICE
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Contents
For the year ended 30 June 2023
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 2023
Consolidated statement of financial position as at 30 June 2023
Consolidated statement of changes in equity for the year ended 30 June 2023
Consolidated statement of cash flows for the year ended 30 June 2023
Notes to the consolidated financial statements for the year ended 30 June 2023
Directors’ declaration
Audit report
2
20
21
23
23
24
25
55
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Directors' report
30 June 2023
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 2023.
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:
Matthew Macfarlane
Geoff Pritchard (resigned 31 July 2023)
Deanna Carpenter (resigned 23 November 2022)
Colm O’Brien
Clinton Snow
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 30
active customers across a number of core industry verticals with installed sites in over 70 locations supporting in excess of
15,000 video surveillance cameras globally. The product has application to multiple customer segments and use-cases and
industry verticals as part of the product development roadmap (e.g. prisons, healthcare and
will be targeting additional
guarding 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.
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Directors' report
30 June 2023
Review of operations (cont.)
The Company continues to carefully manage costs, and following a successful share placement in October 2022 the
Company has invested into commercialisation and research & development whilst maintaining a strong cash position.
The loss for the Consolidated Entity after providing for income tax amounted to $2,124,965 (30 June 2022: $2,969,438), a
28% improvement on the prior year.
The reported losses of the Consolidated Entity for the year ended 30 June 2023 include substantial (non-cash) costs in
relation to the Employee Share Investment Plan: a net expense of $452,080 over the year. It is worth noting that the
majority of expenses relate specifically to historical ESIP options with exercise prices of 25 cents and 30 cents, which
although have now become much less likely to be exercised (given the share price at balance date of 2 cents),
nevertheless require on-going expensing under accounting standard AASB 2.
Removing the non-cash impact of the ESIP plan from the Consolidated Entity’s results for the year ended 30 June 2023
would reduce the reported losses by 21%, to $1,672,885.
For the year ended 30 June 2023 the Consolidated Entity reported sales revenue of $1,744,714 were up 2% on the
previous year ($1,713,244). However recurring revenues by way of SaaS and maintenance fees increased as a
proportion of total revenue for the financial year to approximately 96% (83% in 2022). The Company also had $1,501,645
in unearned revenue as at 30 June 2023 (2022: $1,224,961), 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 $714,908 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
On 31st July 2023, the following changes were made:
● Geoff Pritchard resigned from his position as Non-Executive Director and Chair but remains as a strategic advisor
● Matthew Macfarlane was appointed as Non-Executive Chair, moving from his current role as Chief Executive Officer
● Kevin Brown was appointed as the new Chief Executive Officer
No other matter or circumstance has arisen since 30 June 2023 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.
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Directors' report
30 June 2023
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Geoffrey Pritchard
Non-Executive Chairman
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 until 30 June 2023 was 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
1,361,427
1,141,164
Nil
Name:
Title:
Qualifications:
Experience and expertise:
Matthew Macfarlane
Managing Director and Chief Executive Officer
B.Com, CA (Australia), GAICD
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.
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 an independent director of PetRescue Ltd and a director of the Australian Export
Grains Innovation Centre (AEGIC), and until February 2022 he was chair of Spacecubed
Ventures Pty Ltd.
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
2,259,975
9,784,823
None
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Directors' report
30 June 2023
Contractual right to shares: Nil
Name:
Title:
Qualifications:
Experience and expertise:
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
234,435
Nil
Deanna Carpenter
Non-Executive Director, resigned 23 November 2022
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
Name:
Title:
Qualifications:
Experience and expertise:
Colm O’Brien
Non-Executive Director
BCL
Colm has over 20 years’ experience at executive and director level, including ten years as
CEO with ASX-listed media company Aspermont Limited, where he developed a digitally
led global resources media business. Mr O’Brien is also a founder of Carrington Partners a
boutique management consulting group.
In addition to his media industry experience, Mr
O’Brien has worked in international financial services, tier one management consultancy at
Andersen Consulting (Accenture) and Barclays Bank Plc. Colm is a founding director of
Carrington Partners, a specialised management consultancy focused.
Non-executive director of Sports Entertainment Group (ASX: SEG), appointed 1 September
2015; Non-executive director of Schrole Group (ASX:SCL), appointed October 2022.
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
200,000
900,000
Nil
Name:
Title:
Qualifications:
Experience and expertise:
Other current ASX
directorships:
Former ASX directorships
(last three years):
Clinton Snow
Non-Executive Director
B.Eng/B.Com
Clinton has nearly 20 years of experience as a technology leader with a focus on
engineering management and leading the development and implementation of engineering
solutions in the oil and gas industry. He has previously served as a non-executive director
and chairman and currently provides advisory services to a family office and related
investments.
Non-executive director of Dimerix (ASX: DXB), appointed 1 May 2023.
None
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Directors' report
30 June 2023
Special responsibilities:
Interests in shares:
Interests in options:
Interests in performance
rights:
Contractual right to shares: None
None
30,942,306
7,625,048
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
Rafael Kimberley-Bowen (GAICD, MBA, FCMA, BSc) was appointed to the role of Company Secretary on 22 February
2022. He has also served as the Company’s Chief Financial Officer since 1 February 2021. He is an advisor and finance
professional with expertise in fast-growing technology companies. He is a director and founder of advisory firm
scale.partners, and director of StartupWA and Perth Angels.
Meeting of directors
The number of meetings of the Consolidated Entity’s Board of Directors (‘the Board’) during the year ended 30 June 2023,
and the number of meetings attended by each director were:
Director
Matthew Macfarlane
Geoff Pritchard
Deanna Carpenter
Colm O’Brien
Clinton Snow
Attended
9
9
4
9
8
Held
9
9
4
9
9
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
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Directors' report
30 June 2023
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:
● rewarding capability and experience
● reflecting competitive reward for contribution to growth in shareholder wealth
● providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
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 Consolidated Entity and
comparable market remunerations.
the overall performance of
Executives may receive their fixed remuneration in the form of cash or other fringe benefits where it does not create any
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Directors' report
30 June 2023
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. No STIs were paid to executives during the year ended 30 June 2023.
The long-term incentives ('LTI') include long service leave and share-based payments. Options awarded to executives vest
three years. The Board reviewed the long-term equity-linked performance incentives specifically for
over a period of
executives during the year ended 30 June 2023.
the year the Board engaged an
In addition during the course of
independent remuneration advisor, Loftswood, to conduct a review of a proposed ESIP compensation package and provide
an independent opinion. The advisor confirmed that the proposed compensation was reasonable for the Company.
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
Other than the external review of a proposed ESIP compensation package, the Consolidated Entity did not engage external
consultants to review existing remuneration policies during the year ended 30 June 2023.
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:
● Geoff Pritchard - Non-Executive Director and Chairman
● Deanna Carpenter - Non-Executive Director (resigned 23 November 2022)
● Matthew Macfarlane - Managing Director and Chief Executive Officer
● Colm O’Brien - Non-Executive Director
● Clinton Snow - Non-Executive Director
And the following persons:
● Kevin Brown – Chief Operating Officer
● Rafael Kimberley-Bowen - Company Secretary and Chief Financial Officer
Changes since the end of the reporting period:
● On 31 July 2023:
○ Matthew Macfarlane resigned as Chief Executive Officer, and was appointed as Non-Executive Chairman;
○ Geoff Pritchard resigned as Non-Executive Director and Chairman;
○ Kevin Brown was appointed as Chief Executive Officer.
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Directors' report
30 June 2023
2023
Short term benefits
Post
employm
ent
benefits
Cash
salary
and fees
$
Cash
bonus
Non-
monetary
Super-
annuation
$
$
$
Long
term
benefits
Long
service
leave
$
Share based
payments
Equity -
settled
shares
Equity -
settled
options
$
$
Total
$
Non-Executive Directors:
Geoff Pritchard (Chair)
D. Carpenter ¹
C. O'Brien
C. Snow
65,000
14,455
39,780
36,000
Executive Directors:
Matthew Macfarlane
192,000
Other Key Management
Personnel:
Kevin Brown
R. Kimberley-Bowen
190,800
172,800
710,835
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,825
1,518
-
3,780
-
-
-
-
-
-
-
-
12,613
2,276
2,927
2,927
84,438
18,249
42,707
42,707
20,160
8,082
- 180,307 400,549
20,034
18,144
70,461
2,490
-
10,572
- 148,444 361,768
-
29,211
220,155
- 378,705 1,170,573
1 Represents remuneration from 1 July 2022 to 23 November 2022
Short term benefits
Post
employme
nt benefits
Long
term
benefits
Share based
payments
2022
Cash
salary
and fees
$
Cash
bonus
Non-
monetary
Super-
annuation
$
$
$
Long
service
leave
$
Equity -
settled
shares
Equity -
settled
options
$
$
Non-Executive Directors:
Mark Potts ¹
Geoff Pritchard (Chair)
D. Carpenter
C. O'Brien ²
C. Snow ³
29,861
54,417
36,000
15,510
14,250
-
-
-
-
-
2,986
3,792
3,600
-
1,425
-
-
-
-
-
9
-
-
-
-
-
-
-
-
-
-
4,823
8,871
685
-
-
Total
$
37,670
67,079
40,285
15,510
15,675
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
Executive Directors:
Matthew Macfarlane
192,000
Other Key Management
Personnel:
Kevin Brown
R. Kimberley-Bowen
158,400
182,000
682,438
-
-
-
-
-
-
-
-
19,200
5,906
- 113,493
330,599
15,840
7,200
54,043
5,735
-
11,641
-
-
85,506
9,891
265,481
199,091
- 223,269
971,391
1 Represents remuneration from 1 July 2021 to 8 February 2022
2 Represents remuneration from 8 February 2022 to 30 June 2022
3 Represents remuneration from 8 February 2022 to 30 June 2022
10
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
2023
2022
2023
2022
2023
2022
Fixed remuneration
At risk - STI
At risk - LTI
Non-Executive
Directors:
M. Potts
G. Pritchard
D. Carpenter
C. O'Brien
C. Snow
N/a
85%
88%
93%
93%
87%
87%
98%
100%
100%
Executive Directors:
M. Macfarlane
55%
66%
Other Key
Management
Personnel:
K. Brown
R. Kimberley-Bowen
59%
87%
68%
95%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/a
15%
12%
7%
7%
13%
13%
2%
-
-
45%
34%
41%
13%
32%
5%
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
2023
2022
2023
2022
Cash bonus paid/payable
Cash bonus forfeited
Executive Directors:
M. Macfarlane
Other Key Management Personnel:
K. Brown
R. Kimberley-Bowen
0%
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
11
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
Fully paid ordinary shares
Balance at 1
Jul 2022
Received on
exercise of
options
Balance held
on
resignation
Acquired/
disposed of
Balance at
30 Jun 2023
2023
Number
Number
Number
Number
Number
Non-Executive Directors:
Geoff Pritchard (Chair)
D. Carpenter ¹
C. O'Brien
C. Snow
Executive Directors:
Matthew Macfarlane
Other Key Management Personnel:
Kevin Brown
R. Kimberley-Bowen
1,361,427
-
200,000
14,455,042
2,259,975
2,825,098
913,600
22,015,142
-
-
-
-
-
-
-
-
n/a
-
n/a
n/a
n/a
n/a
n/a
-
-
-
1,361,427
n/a
200,000
16,487,264
30,942,306
-
2,259,975
100,000
2,925,098
-
913,600
-
16,587,264
38,602,406
1 Represents fully paid ordinary shares from 1 July 2022 to 23 November 2022
Balance at 1
Jul 2021
Received on
exercise of
options
Balance held
on
resignation
Acquired/
disposed of
Balance at
30 Jun 2022
2022
Number
Number
Number
Number
Number
Non-Executive Directors:
Mark Potts ¹
Geoff Pritchard (Chair)
D. Carpenter
C. O'Brien ²
C. Snow ³
Executive Directors:
Matthew Macfarlane
Other Key Management Personnel:
Kevin Brown
R. Kimberley-Bowen
441,511
39,550,195
-
-
14,455,042
1,444,649
1,700,098
177,950
57,769,445
12
-
-
-
-
-
-
-
-
-
441,511
-
n/a
n/a (38,188,768)
1,361,427
n/a
n/a
n/a
-
-
200,000
200,000
-
14,455,042
n/a
815,326
2,259,975
n/a
n/a
1,125,000
2,825,098
735,650
913,600
441,511 (35,312,792)
22,015,142
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
1 Represents fully paid ordinary shares from 1 July 2021 to 8 February 2022
2 Represents fully paid ordinary shares from 8 February 2022 to 30 June 2022
3 Represents fully paid ordinary shares from 8 February 2022 to 30 June 2022
Share options
Balance at
1 Jul 2022
Granted as
compensati
on
Cancelled/
Expired
Net other
change
Balance
held at
resignation
Balance at
30 Jun
2023
Vested and
exercisable
ESIP
options
ESIP
options
vested
during year
2023
Number
Number
Number
Number
Number
Number
Number
Number
Non-Executive Directors:
Geoff Pritchard (Chair)
813,458
1,500,000
(172,294)
D. Carpenter ¹
C. O'Brien
C. Snow
Executive Directors:
Matthew Macfarlane
Other Key Management
Personnel:
Kevin Brown
R. Kimberley-Bowen
468,870
-
(234,435)
-
900,000
-
-
-
-
n/a
2,141,164
718,870
328,145
234,435
n/a
234,435
78,145
n/a
900,000
150,000
150,000
4,099,166
900,000 (2,049,583) 21,162,729
n/a 24,112,312
150,000
150,000
18,249,262
-
(131,106)
16,302,787
5,362,500
-
-
-
-
-
-
-
n/a 18,118,156
9,320,383
3,604,958
n/a 16,302,787
7,323,620
3,037,052
n/a
5,362,500
1,506,667
1,006,667
45,296,043
3,300,000 (2,587,418) 21,162,729
234,435 66,936,919 19,403,975
8,354,967
1 Represents share options from 1 July 2022 to 23 November 2022
13
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
Balance at
1 Jul 2021
Granted as
compensati
on
Cancelled/
Expired
Net other
change
Balance
held at
resignation
Balance at
30 Jun
2022
Vested and
exercisable
ESIP
options
ESIP
options
vested
during year
2022
Number
Number
Number
Number
Number
Number
Number
Number
Non-Executive Directors:
Mark Potts ¹
Geoff Pritchard (Chair)
D. Carpenter
C. O'Brien ²
C. Snow ³
Executive Directors:
Matthew Macfarlane
Other Key Management
Personnel:
Kevin Brown
R. Kimberley-Bowen
1,000,341
10,479,314
468,870
-
4,099,166
-
-
-
-
-
8,249,262 10,000,000
5,990,287 10,000,000
1,500,000
3,800,000
-
-
-
-
-
-
-
-
1,000,341
n/a
625,159
156,289
- (9,665,856)
n/a
n/a
n/a
n/a
813,458
390,725
156,290
468,870
156,290
156,290
-
4,099,166
-
-
-
-
n/a 18,249,262
5,715,425
4,543,251
-
-
-
-
312,500
62,500
n/a 16,302,787
4,286,568
1,996,762
n/a
5,362,500
500,000
500,000
31,787,240 23,800,000
- (9,290,856)
1,000,341 45,296,043 11,674,167
7,508,882
1 Represents share options from 1 July 2021 to 8 February 2022
2 Represents share options from 8 February 2022 to 30 June 2022
3 Represents share options from 8 February 2022 to 30 June 2022
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:
Matthew Macfarlane
Managing Director and Chief Executive Officer
1 May 2019
Current agreement ended on 31 July 2023. Appointed as Non-Executive Chair on 1
August 2023.
Base salary for the year ending 30 June 2023 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, eligible to participate in Employee Stock Investment
Plan (ESIP) subject to a Performance Review and Board approval, non-solicitation
and non-compete clauses.
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Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Kevin Brown
Chief Operating Officer
7 October 2019
Current agreement ended on 31 July 2023. Appointed as Chief Executive Officer on 1
August 2023.
time equivalent salary for the year ending 30 June 2023 of $216,000 plus
Full
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.
Rafael Kimberley-Bowen
Chief Financial Officer and Company Secretary
4 February 2021
Ongoing
From 1 February 2022, full time equivalent salary of $216,000 plus superannuation.
Two 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.
Prior to 1 February 2022, Rafael was contracted through Scale Partners Pty Ltd to
provide CFO services for $15,000 per month plus GST.
15
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Icetana Limited
Directors' report
30 June 2023
Share-based compensation
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
Number of
options granted
Grant date
Vesting date
and
exercisable
date
Expiry date
Exercise price
Fair value per
option at grant
date
M Macfarlane
G Pritchard
K Brown
M Macfarlane
K Brown
D. Carpenter
R. Kimberley-Bowen
M Macfarlane
K Brown
R. Kimberley-Bowen
G Pritchard
C Snow
C O'Brien
2,344,348
468,870
1,758,261
5,642,702
4,232,026
468,870
1,500,000
10,000,000
10,000,000
3,800,000
1,500,000
900,000
900,000
18-Dec-19
18-Dec-19
18-Dec-19
1-May-20
1-May-20
2-Jun-21
2-Jun-21
27-Apr-22
27-Apr-22
27-Apr-22
30-Nov-22
30-Nov-22
30-Nov-22
Note 1
Note 1
Note 1
Note 2
Note 2
Note 3
Note 3
Note 4
Note 4
Note 4
Note 5
Note 5
Note 5
30-Nov-23
30-Nov-23
30-Nov-23
31-Mar-24
31-Mar-24
2-Jun-25
2-Jun-25
26-Apr-26
26-Apr-26
26-Apr-26
29-Nov-26
29-Nov-26
29-Nov-26
$0.30
$0.30
$0.30
$0.25
$0.25
$0.25
$0.25
$0.15
$0.15
$0.15
$0.15
$0.15
$0.15
$0.13
$0.13
$0.13
$0.09
$0.09
$0.05
$0.05
$0.02
$0.02
$0.02
$0.02
$0.02
$0.02
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 1⁄3 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 1⁄3 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.
4 40% of options vest quarterly over a total three year period commencing 27 April 2022. 30% of options vest when revenue
over a six month period prior to 31 December 2024 exceeds $1.5m. 30% of options vest when revenue over a six month
period prior to 31 December 2025 exceeds $2.25m. If employment is ceased during the vesting period, any unvested
options held are forfeited by the Director / KMP.
5 Options vest quarterly over a total three year period commencing 30 November 2022. If employment is ceased during the
vesting period, any unvested options held are forfeited by the Director / KMP.
Options granted carry no dividend nor voting rights.
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.
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Directors' report
30 June 2023
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 2023 are set out below (note – value of options provided below is value
of options vested as at 30 June 2023):
Vested and
exercisable as
at 30 June 2023
Value of options
vested during
the year
Value of options
exercised during
the year
Value of options
lapsed during
the year
Name
number
$
M Macfarlane
G Pritchard
K Brown
R Kimberley-Bowen
D. Carpenter
C Snow
C O'Brien
9,653,717
718,870
7,656,954
1,633,333
234,435
150,000
150,000
180,307
12,613
148,444
29,211
2,276
2,927
2,927
-
-
-
-
-
-
$
-
-
-
-
$
-
-
-
-
Remuneration
consisting of
options for the
year
%
45%
15%
41%
13%
12%
7%
7%
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,
including departed personnel) at the date of this report are as follows:
Grant date
18 Dec 2019
1 May 2020
7 May 2020
16 Oct 2020
18 Mar 2021
2 Jun 2021
27 Apr 2022
16 Nov 2022
30 Nov 2022
Expiry date
30 Nov 2023
31 Mar 2024
31 Mar 2024
31 Mar 2024
31 Mar 2024
2 Jun 2025
26 Apr 2026
15 Nov 2026
29 Nov 2026
Exercise price
$0.30
$0.25
$0.25
$0.25
$0.25
$0.25
$0.15
$0.15
$0.15
Number under option
6,298,334
6,706,904
5,642,702
225,000
133,333
2,601,102
28,608,333
200,000
3,300,000
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 2023 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.
17
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Directors' report
30 June 2023
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking
responsibility on behalf of the company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 26 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 26 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants 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 or directors of Dry Kirkness (Audit) Pty Ltd
There are no officers of the company who are former partners or directors of Dry Kirkness (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
Dry Kirkness (Audit) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
18
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Directors' report
30 June 2023
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
Matthew Macfarlane
Non-Executive Chairman
30 August 2023
Perth, Western Australia
19
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of icetana Ltd and its controlled entities for the year ended 30 June
2023, 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.
DRY KIRKNESS (AUDIT) PTY LTD
Robert Hall CA
Director
Perth
Date: 30 August 2023
icetana Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Revenue from continuing operations
Cost of sales
Gross profit
Foreign exchange gains
Other income
Interest revenue
Expenses
Accountancy and audit fees
Advertising and marketing
Consultancy fees
Depreciation and amortisation expense
Employee benefits expense
Other expenses
Share based payments expense
Loss before income tax expense from continuing operations
Income tax benefit
Loss after income tax expense from continuing operations
Loss after income tax expense for the year
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
Note
30 Jun 2023
$
30 Jun 2022
$
4
5
6
7
1,744,714
(221,609)
1,523,105
69,057
71,238
20,369
(53,480)
(303,865)
(115,421)
(161,382)
(2,822,615)
(617,401)
(452,080)
(2,842,475)
717,510
(2,124,965)
(2,124,965)
1,713,244
(340,661)
1,372,583
198,229
74,526
3,804
(71,545)
(229,906)
(569,777)
(136,450)
(2,949,243)
(613,077)
(752,426)
(3,673,282)
703,844
(2,969,438)
(2,969,438)
(94,316)
(94,316)
(2,219,281)
(231,303)
(231,303)
(3,200,741)
(69,287)
(2,055,678)
(2,124,965)
70,161
(3,039,599)
(2,969,438)
(110,069)
(2,109,212)
(2,219,281)
38,732
(3,239,473)
(3,200,741)
Loss per share for profit attributable to the owners of icetana Limited
Basic loss per share
Diluted loss per share
19
19
Cents
Cents
(1.10)
(1.10)
(2.09)
(2.09)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
21
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Consolidated statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Inventory
Income tax refundable
Right-of-use asset
Total current assets
Non-current assets
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Unearned revenue
Employee benefits
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 Jun 2023
$
30 Jun 2022
$
8
9
10
15
11
12
13
14
16
13
14
17
18
20
21
994,150
324,592
94,545
3,884
717,510
83,073
2,217,754
175,869
175,869
2,393,623
140,711
1,079,501
199,561
83,073
1,502,846
422,144
51,181
473,325
1,976,171
417,452
2,015,163
207,407
107,905
3,738
669,632
76,336
3,080,181
53,009
53,009
3,133,190
150,975
938,948
209,152
76,336
1,375,411
286,013
40,633
326,646
1,702,057
1,431,133
21,836,502
1,656,109
(311,993)
(22,763,166)
417,452
21,082,982
1,865,563
(201,924)
(21,315,488)
1,431,133
The above statement of financial position should be read in conjunction with the accompanying notes
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Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Consolidated statement of changes in equity
For the year ended 30 June 2023
Foreign
currency
translation
reserve
$
Share
based
payments
reserve
$
Issued
capital
$
Accumulated
losses
$
Non-control
ling interest Total equity
$
$
Balance at 1 July 2021
18,573,586
33,883
1,279,128
(18,275,889)
(240,656)
1,370,052
Profit after income tax expense for the
year
Other comprehensive income for the
year, net of tax
Total comprehensive income for the
year
Transactions with owners in their capacity
as owners:
Shares issued
Share issue costs
Share-based payments
-
-
-
-
(199,874)
(199,874)
-
-
-
(3,039,599)
70,161
(2,969,438)
-
(31,429)
(231,303)
(3,039,599)
38,732
(3,200,741)
2,700,000
(190,604)
-
-
-
-
-
-
752,426
-
-
-
-
-
-
2,700,000
(190,604)
752,426
Balance at 30 June 2022
21,082,982
(165,991)
2,031,554
(21,315,488)
(201,924)
1,431,133
Foreign
currency
translation
reserve
$
Share
based
payments
reserve
$
Issued
capital
$
Accumulated
losses
$
Non-control
ling interest Total equity
$
$
Balance at 1 July 2022
21,082,982
(165,991)
2,031,554
(21,315,488)
(201,924)
1,431,133
Profit after income tax expense for the
year
Other comprehensive income for the
year, net of tax
Total comprehensive income for the
year
Transactions with owners in their capacity
as owners:
Shares issued
Share issue costs
Share-based adjustment
Share-based payments
-
-
-
-
(53,534)
(53,534)
-
-
-
(2,055,678)
(69,287)
(2,124,965)
-
(40,782)
(94,316)
(2,055,678)
(110,069)
(2,219,281)
770,535
(17,015)
-
-
-
-
-
-
-
-
(607,655)
451,735
-
-
607,655
345
-
-
-
-
770,535
(17,015)
-
452,080
Balance at 30 June 2023
21,836,502
(219,525)
1,875,634
(22,763,166)
(311,993)
417,452
The above statement of changes in equity should be read in conjunction with the accompanying notes
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Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
R&D tax rebate
Note
30 Jun 2023
$
30 Jun 2022
$
1,975,451
(4,057,777)
(2,082,326)
2,172,721
(4,619,208)
(2,446,487)
20,369
669,632
3,804
534,212
Net cash used in operating activities
30
(1,392,325)
(1,908,471)
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 generated from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on cash and cash equivalents
(164,134)
-
(20,058)
-
(164,134)
(20,058)
770,535
(17,015)
(123,758)
2,700,000
(190,604)
(73,248)
629,762
2,436,148
(926,697)
2,015,163
(94,316)
507,619
1,738,847
(231,303)
Cash and cash equivalents at the end of the year
8
994,150
2,015,163
The above statement of cash flows should be read in conjunction with the accompanying notes
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Notes to the financial statements
For the year ended 30 June 2023
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.
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, though a decrease from the previous year, following
investment in our next generation product. For the year ended 30 June 2023, the Consolidated Entity incurred a loss from
continuing operations after tax of $2,124,965 (30 June 2022: $2,969,438). In the same period the consolidated entity had
operating cash outflows of $1,392,325 (year ended 30 June 2022: $1,908,471).
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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 2023 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
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 non-controlling interest acquired is recognised directly in equity
attributable to the parent.
the share of
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
Revenue recognition
The Consolidated Entity recognises revenue as follows:
identifies the contract with a customer;
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 performance obligations in the contract; determines the
transaction price which takes into account estimates of variable consideration and the time value of money; allocates the
transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each
distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a
manner that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are recognised as a refund liability.
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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
is not a business combination and that, at the time of the transaction, affects neither the
a transaction that
accounting nor taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount
to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
icetana Limited does not have any wholly-owned Australian subsidiaries and has not formed an income tax consolidated
group under the tax consolidation regime.
Research and development tax rebates are treated as an income tax benefit.
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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. 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.
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.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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
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 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.
is not amortised.
Instead, goodwill
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
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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.
liabilities represent
Contract liabilities
the Consolidated Entity's obligation to transfer goods or services to a customer and are
Contract
recognised when a customer pays consideration, or when the Consolidated Entity recognises a receivable to reflect its
unconditional right
to consideration (whichever is earlier) before the Consolidated Entity has transferred the goods or
services to the customer.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Consolidated Entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. 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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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,
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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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
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.
33
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
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.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been 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 2023. The
Consolidated Entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the Consolidated Entity.
New and Amended Accounting Policies Not Yet Adopted by the Consolidated Entity:
–
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-current.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024 along with the adoption
of AASB 2022-6. The amendment is not expected to have a material
impact on the financial statements once
adopted.
–
AASB 2022-6: Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
AASB 2022-6 amends AASB 101 to improve the information an entity provides in its financial statements about
liabilities arising from loan arrangements for which the entity’s right to defer settlement of those liabilities for at least
12 months after the reporting period is subject
to the entity complying with conditions specified in the loan
arrangement. It also amends an example in Practice Statement 2 regarding assessing whether information about
covenants is material for disclosure.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The amendment is not
expected to have a material impact on the financial statements once adopted.
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Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 1. Significant accounting policies (continued)
–
–
–
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition
of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting Standards:
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and Definition of
Accounting Estimates (Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not applicable
to leases and decommissioning obligations – transactions for which companies recognise both an asset and liability
and that give rise to equal taxable and deductible temporary differences.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
AASB 2021-7b & c: Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10
and AASB 128 and Editorial Corrections
AASB 2021-7b makes various editorial corrections to AASB 17 Insurance Contracts which applies to annual
reporting periods beginning on or after 1 January 2023, with earlier application permitted.
AASB 2021-7c defers the mandatory effective date (application date) of amendments to AASB 10 and AASB 128
that were originally made in AASB 2014-10: Amendments to Australian Accounting Standards – Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture so that the amendments are required to be applied
for annual reporting periods beginning on or after 1 January 2025 instead of 1 January 2018.
The Group plans on adopting the amendments for the reporting periods ending 30 June 2024 and 30 June 2026.
The impact of initial application is not yet known.
–
AASB 2022-7: Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and Redundant
Standards
AASB 2022-7 makes editorial corrections to the following standards: AASB 7, AASB 116, AASB 124, AASB 128,
AASB 134 and AASB as well as to AASB Practice Statement 2. It also formally repeals superseded and redundant
Australian Account Standards as set out in Schedules 1 and 2 to the Standard.
The Group plans on adopting the amendments for the reporting period ending 30 June 2024. The amendment is not
expected to have a material impact on the financial statements once adopted.
35
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 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
future events,
and assumptions on historical experience and on other various factors,
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.
including expectations of
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
the
Consolidated Entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
to events or conditions which may impact
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
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 18 for further information.
taking into account
Revenue from contracts with customers involving sale of goods
When recognising revenue in relation to the sale of goods to customers,
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.
the key performance obligation of
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.
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.
Taxation
Balances disclosed in the financial statements and the notes hereto, related to taxation are based on the best estimates of
Directors. These estimates take into account both the financial performance and position of the Company as they pertain to
current income tax legislation and the Directors understanding thereof. No adjustment has been made for pending or future
tax legislation. The current income tax position represents that Directors' best estimate, pending an assessment by the
Australian Taxation Office.
36
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 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
Information
Asia Pacific (APAC)
North America (NA)
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:
Consolidated - 30 June 2023
Revenue
Sales to external customers
Intersegment sales
Total sales revenue
Intersegmental eliminations
Interest revenue
Other income
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
APAC
$
NA
$
EMEA
$
Total
$
307,430
-
307,430
-
-
-
307,430
67,393
-
-
-
67,393
-
67,393
576,965
-
576,965
-
-
-
576,965
(122,546)
(16,735)
-
-
(139,281)
-
(139,281)
1,744,714
538,886
2,283,600
(538,886)
20,369
71,238
1,836,321
(2,701,461)
(161,383)
20,369
-
(2,842,475)
717,510
(2,124,965)
3
4
860,319
538,886
1,399,205
(538,886)
20,369
71,238
951,926
(2,646,308)
(144,648)
20,369
-
(2,770,587)
717,510
(2,053,077)
37
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Consolidated - 30 June 2022
Revenue
Sales to external customers
Intersegment sales
Total sales revenue
Intersegmental eliminations
Interest revenue
Other income
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
APAC
$
NA
$
EMEA
$
Total
$
3
4
750,459
508,668
1,259,127
(508,668)
3,804
73,176
827,439
(4,613,527)
(117,146)
3,804
-
(4,726,869)
703,844
(4,023,025)
220,355
-
220,355
-
-
-
220,355
34,839
-
-
-
34,839
-
34,839
742,430
-
742,430
-
-
1,350
743,780
1,038,053
(19,305)
-
-
1,018,748
-
1,018,748
1,713,244
508,668
2,221,912
(508,668)
3,804
74,526
1,791,574
(3,540,636)
(136,450)
3,804
-
(3,673,282)
703,844
(2,969,438)
38
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Note 4. Revenue
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Revenue
Types of revenue and other income
Recurring revenue
Enterprise revenue
Total sales revenue
Geographic regions
APAC
AME
EMEA
Total sales revenue
Revenue by industry
Education
Retail
Commercial and other
Total sales revenue
Note 5. Other income
Other income
Grant income
Insurance recoveries
Note 6. Other expenses
Insurance
Legal fees
Travel
Other
30 Jun 2023
$
30 Jun 2022
$
1,675,066
69,648
1,744,714
860,319
307,430
576,965
1,744,714
189,081
989,763
565,870
1,744,714
34,638
36,600
-
71,238
123,842
5,722
102,251
385,586
617,401
1,421,992
291,252
1,713,244
750,459
220,355
742,430
1,713,244
194,951
1,151,163
367,130
1,713,244
-
73,176
1,350
74,526
118,262
19,623
57,410
417,782
613,077
39
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Note 7. Income tax expense
R&D tax incentive income
Current tax
Deferred tax
Aggregate income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at stat rate of 25% (2022: 25%)
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
30 Jun 2023
$
30 Jun 2022
$
(717,510)
-
-
(703,844)
-
-
(717,510)
(703,844)
(2,842,475)
(3,673,282)
(710,619)
(918,321)
(179,378)
527,806
(73,717)
(281,604)
(175,961)
773,245
(51,741)
(331,067)
(717,510)
(703,844)
(a) The Company has revenue losses of approximately $10,587,169 (2022: $9,595,087) for which no deferred tax asset has
been recognised.
(b) The Company has no franking credits currently available for future offset.
Note 8. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit
Total cash and cash equivalents
969,150
25,000
994,150
990,163
1,025,000
2,015,163
40
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Note 9. Current assets – trade and other receivables
Trade debtors
Sundry debtors
Total trade and other receivables
Ageing of past due but not impaired trade receivables
Not overdue
0 to 3 months overdue
3 to 6 months overdue
30 Jun 2023
30 Jun 2022
$
$
292,899
31,693
324,592
81,954
203,705
7,240
292,899
170,322
37,085
207,407
152,112
10,771
7,439
170,322
The Consolidated Entity has continued to maintain rigorous monitoring of debt recovery in a post Coronavirus (COVID-19)
pandemic environment.
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 2023, the ‘3 to 6 months overdue’ portion of $7,240 has all been received.
Note 10. Prepayments
Prepaid insurance
Other prepayments
Total prepayments
Note 11. Non-current assets - property, plant and equipment
Production assets - at cost
Less: Accumulated depreciation
Computers & office equipment - at cost
Less: Accumulated depreciation
Low value pool - at cost
Less: Accumulated depreciation
69,984
24,561
94,545
67,357
40,548
107,905
89,110
(10,468)
78,642
320,031
(222,804)
97,227
417
(417)
-
-
-
-
244,750
(191,741)
53,009
401
(401)
-
Total property, plant & equipment
175,869
53,009
41
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Consolidated
Production assets
$
Computer & office
equipment
$
Low value pool
$
Total
$
Balance at 1 July 2022
-
53,009
Additions
Disposals
Depreciation expense
89,110
-
(10,468)
75,024
-
(30,806)
Balance at 30 June 2023
78,642
97,227
-
-
-
-
-
53,009
164,134
-
(41,274)
175,869
Consolidated
Balance at 1 July 2021
Additions
Disposals
Depreciation expense
Balance at 30 June 2022
Note 12. Trade and other payables
Trade payables
PAYG withholding payable
Accrued expenses
Net GST/VAT (refundable) / payable
Sundry creditors
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
Production assets
$
Computer & office
equipment
$
Low value pool
$
Total
$
-
-
-
-
-
63,809
20,058
(951)
(29,907)
53,009
54
-
-
(54)
-
63,863
20,058
(951)
(29,961)
53,009
30 Jun 2023
30 Jun 2022
$
$
88,835
49,710
28,225
(28,357)
2,298
140,711
37,429
58,479
79,681
(34,086)
9,472
150,975
1,079,501
422,144
1,501,645
938,948
286,013
1,224,961
APAC
NA
EMEA
Total
399,088
116,767
515,855
203,017
291,223
494,240
477,396
14,154
491,550
1,079,501
422,144
1,501,645
42
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 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. Right-of-use assets
Cost
Accumulated depreciation
Carrying value
Note 16. Lease liabilities
Current liabilities
Total lease liabilities
30 Jun 2023
30 Jun 2022
$
$
137,732
-
61,829
199,561
51,181
51,181
164,674
-
44,478
209,152
40,633
40,633
134,540
(51,530)
83,010
127,732
(51,396)
76,336
83,010
83,010
76,336
76,336
The Consolidated Entity leases its operating premises. The current lease for the Australian premises is a twelve month
contract from 1 January 2023 to 31 December 2023. The current lease for the Dubai premises is a twelve month lease
contract from 1 April 2023 to 31 March 2024. The group does not currently have operating premises in any other location.
Note 17. Equity - Issued capital
30 Jun 2023
30 Jun 2022
30 Jun 2023
30 Jun 2022
Shares
Shares
$
$
Ordinary shares – fully paid
199,328,417
170,790,093
Share issue costs
Total
Movements in ordinary share capital
23,357,315
(1,520,813)
21,836,502
22,586,781
(1,503,799)
21,082,982
Details
Date
Shares
Issue price
$ Value
Opening balance
Capital placement
Share issue costs
Closing balance
30 June 2022
10 October 2022
170,790,093
28,538,324
$0.027
30 June 2023
199,328,417
21,082,982
770,534
(17,014)
21,836,502
43
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 Note 17. Equity - Issued capital (continued)
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
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
that
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.
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Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 18. Reserves
As at 30 June the Consolidated Entity had the following reserve accounts:
(a) Foreign currency translation
(b) Performance rights
(c) Options
Total
(a) Foreign currency translation
Opening balance
Movement
Closing balance
(b) Performance rights
Details
30 Jun 2023
30 Jun 2022
$
$
(219,525)
-
1,875,634
1,656,109
(165,991)
(53,534)
(219,525)
(165,991)
-
2,031,554
1,865,563
33,883
(199,874)
(165,991)
30 Jun 2023
30 Jun 2022
30 Jun 2023
30 Jun 2022
Number
Number
$
$
Opening Balance
Issued during the reporting period
Expired during the reporting period
Closing balance
900,000
-
(450,000)
450,000
1,350,000
-
(450,000)
900,000
-
-
-
-
(c) Options
Details
Opening balance
Issue of new ESIP options during the period
Options expired, or forfeited pursuant to leaver provisions
Expense recognised as ESIP options vest
Transfer to retained earnings
Closing balance
Number
98,617,405
14,000,000
(22,026,697)
-
-
90,590,708
-
-
-
-
$
2,031,554
-
(607,655)
452,080
(345)
1,875,634
The Company expenses any valuation of the share options as they accrue over time. As at 30 June 2023, the Company
has recognised a cumulative employee (and lead manager) share-based payment expense of $1,875,634 in relation to
these options.
45
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 18. Reserves (continued)
Over the period the Company granted a total of 14,000,000 ESIP options to employees, consultants and directors of the
Consolidated Entity:
● following shareholder approval at the 2022 Annual General Meeting, 13,300,000 options (series 4 and series 4b)
were granted to directors on 30 November 2022;
● on 16 November 2022, 700,000 options (series 4a) were granted to employees.
Generally these options vest evenly on a quarterly basis until three years after their respective issue date. Of the options
issued on 30 November 2022, 10,000,000 options issued to Matthew Macfarlane are subject to a mix of time-based
vesting conditions and performance hurdles as documented in the relevant ASX announcement dated 15 November
2022. In summary, 30% of the options will vest once revenue in any financial half year exceeds $1,500,000, another 30%
will vest when it exceeds $2,250,000, and the final 40% will vest on a quarterly basis over the three years following their
issue date.
During the period 20,626,436 options expired and 1,400,261 options were forfeited under the leaver provisions of the
ESIP.
In addition to the options, the Company has in issue 450,000 performance rights, with vesting conditions as follows:
Number
Vesting Conditions
Expiry Date
450,000
$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:
Number
Grant Date
Expiry Date
Exercise
Price
Fair value at
grant date
Vesting date
Value
Accrued
$
10,734
693
118,834
66,769
879,805
12,952
6,627
689,220
-
$0.02
$0.02
$0.02
$0.05
$0.09
$0.08
$0.07
$0.13
$0.20
As above
As above
As above
As above
As above
As above
As above
As above
As above
$0.02
1 Mar 22
90,000
1,875,634
ESIP series 4b
ESIP series 4a
ESIP series 4
ESIP series 3
ESIP series 2a
ESIP series 2b
ESIP series 2c
ESIP series 1
Performance
rights
Lead manager
options
3,300,000
200,000
28,608,333
2,601,102
12,349,606
225,000
133,333
6,298,334
30 Nov 22
16 Nov 22
27 Apr 22
2 Jun 21
1 May 20
16 Oct 20
18 Mar 21
20 Dec 19
29 Nov 26
15 Nov 26
26 Apr 26
2 Jun 25
31 Mar 24
31 Mar 24
31 Mar 24
30 Nov 23
450,000
18 Dec 19
23 Dec 24
5,000,000
1 Mar 22
1 Mar 24
$0.15
$0.15
$0.15
$0.25
$0.25
$0.25
$0.25
$0.30
Nil
$0.15
46
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Notes to the financial statements
For the year ended 30 June 2023
Note 18. Reserves (continued)
Lead
manager
options
0%
ESIP
options
series 1
0%
ESIP
options
series 2a
0%
ESIP
options
series 2b
0%
ESIP
options
series 2c
0%
ESIP
options
series 3
0%
ESIP
options
series 4
0%
ESIP
options
series 4a
0%
ESIP
options
series 4b
0%
Perform
ance
rights
0%
100%
100%
100%
120%
120%
100%
95%
100%
100%
100%
0.25%
2.04%
0.41%
0.25%
0.25%
0.25%
1.81%
3.25%
3.25%
2.04%
2 years
4 years
3.92 years 3.46 years 3.04 years
4 years
4 years
4 years
4 years
5 years
$0.15
$0.30
$0.25
$0.25
$0.25
$0.25
$0.15
$0.15
$0.15
Nil
$0.058
$0.20
$0.155
$0.13
$0.12
$0.095
$0.043
$0.047
$0.035
$0.20
Dividend yields
Expected
volatility
Risk-free
interest rate
Expected life
Exercise price
Grant date
share price
Note 19. Earnings per share
Total comprehensive loss for the half year:
Loss after income tax
Less: Non-controlling interest
Loss after income tax attributable to the owners of icetana Limited
Basic earnings per share
Diluted earnings per share
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
Weighted average number of ordinary shares used in calculating
diluted loss per share
Options are not considered to be dilutive.
47
30 Jun 2023
30 Jun 2022
$
$
(2,219,281)
110,069
(2,109,212)
(3,200,741)
(38,732)
(3,239,473)
Cents
Cents
(1.10)
(1.10)
(2.09)
(2.09)
30 Jun 2023
Number
30 Jun 2022
Number
191,431,510
155,348,312
Nil
Nil
191,431,510
155,348,312
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 20. 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 21. Equity - retained earnings
Retained losses at the start of the year
Loss after income tax expense for the year
Share based adjustments
Retained losses at the end of the year
Note 22. Dividends
There were no dividends declared or paid during the year.
30 Jun 2023
30 June 2022
$
$
(201,924)
(110,069)
(311,993)
(240,656)
38,732
(201,924)
(21,315,488)
(2,055,678)
608,000
(18,275,889)
(3,039,599)
-
(22,763,166)
(21,315,488)
48
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Notes to the financial statements
For the year ended 30 June 2023
Note 23. 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 9, 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 2023 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.
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Notes to the financial statements
For the year ended 30 June 2023
Note 23. Financial instruments (continued)
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.
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.
Consolidated - 2023
Trade payables
Accrued expenses
Sundry creditors
Unearned revenue
Lease liability
Total
Consolidated - 2022
Trade payables
Accrued expenses
Sundry creditors
Unearned revenue
Lease liability
Total
Weighted
average
interest rate
1 year or less
1 to 2 years
Over 2 years
%
$
$
$
-
-
-
232,391
189,753
1,501,645
-
-
83,010
232,391
189,753
1,704,013
Remaining
contractual
maturities
$
-
-
-
88,835
28,225
2,298
Remaining
contractual
maturities
$
-
-
-
37,429
79,681
9,472
1 year or less
1 to 2 years
Over 2 years
$
$
-
-
-
121,787
164,227
1,224,962
-
-
76,336
1,141,866
121,787
164,227
1,427,880
88,835
28,225
2,298
1,079,501
83,010
1,281,869
$
37,429
79,681
9,472
938,948
76,336
Weighted
average
interest rate
%
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 24. Contingent liabilities and contingent assets
There are no contingent assets or liabilities as at the reporting date. There were no expenditure commitments as at the
reporting date.
50
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Notes to the financial statements
For the year ended 30 June 2023
Note 25. Related party transactions
Parent entity
icetana Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
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 2023
$
30 Jun 2022
$
710,835
70,461
10,572
378,705
1,170,573
682,438
54,043
11,641
223,269
971,391
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 Deanna 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)
30 Jun 2023
30 Jun 2022
-
14,232
5,746
8,527
-
44,536
51
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Notes to the financial statements
For the year ended 30 June 2023
Note 25. Related party transactions (continued)
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.
Note 26. Remuneration of auditors
During the financial year the following fees were paid or payable for services rendered by Dry Kirkness (Audit) Pty Ltd, the
auditor of the Consolidated Entity, its network firms and unrelated firms:
Audit services – Dry Kirkness (Audit) Pty Ltd
Audit of the financial statements
Note 27. 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
52
30 Jun 2023
$
30 Jun 2022
$
26,209
20,000
(2,053,076)
(2,053,076)
(4,023,024)
(4,023,024)
4,567,575
5,398,595
4,741,859
5,449,504
805,011
675,728
856,192
716,361
21,836,502
1,875,634
(19,826,469)
3,885,667
21,082,982
2,031,554
(18,381,393)
4,733,143
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 icetana Limited
Notes to the financial statements
For the year ended 30 June 2023
Note 28. 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
2023
%
100%
100%
2022
%
100%
100%
The United Kingdom subsidiary (icetana Ltd) was dissolved on 24 January 2023.
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
2023
%
49%
2022
%
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 29. Events after the reporting period
On 31st July 2023, the following changes were made:
● Geoff Pritchard resigned from his position as Non-Executive Director and Chair but remains as a strategic advisor
● Matthew Macfarlane was appointed as Non-Executive Chair, moving from his current role as Chief Executive
Officer
● Kevin Brown was appointed as the new Chief Executive Officer
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect
the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in future
financial years.
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Notes to the financial statements
30 June 2023
Note 27. Earnings per share (continued)
Note 30. Reconciliation of profit after income tax to net cash from operating activities
Loss after income tax expense for the year
(2,124,965)
(2,969,438)
30 Jun 2023
$
30 Jun 2022
$
Adjustments for:
Depreciation and amortisation
Loss on disposal of assets
Share based payment expense
Income tax
Production asset COGS adjustment
Change in operating assets and liabilities:
Increase / (decrease) in trade and other receivables
Decrease / (increase) in prepayments
(Increase) in inventory and other assets
(Decrease) in trade and other payables
Increase in provisions
Increase in unearned revenue
161,382
-
452,080
(47,878)
10,387
(117,185)
13,360
(6,883)
(10,264)
957
276,684
136,450
2,336
752,426
(169,632)
-
123,001
(464)
(33,554)
(134,050)
122,504
261,950
Net cash from operating activities
(1,392,325)
(1,908,471)
54
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Directors' declaration
30 June 2023
In the directors' opinion:
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standards
and other mandatory professional reporting requirements;
the attached financial statements and notes give a true and fair view of the Consolidated Entity’s financial position as
at 30 June 2023 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
Matthew Macfarlane
Non-Executive Chairman
30 August 2023
Perth, Western Australia
55
Doc ID: e394f50405beb37ff2aa144471f7b8a507dec695 INDEPENDENT AUDITOR’S REPORT
To the Members of icetana Limited
Report on the audit of 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 2023,
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, 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 2023 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 those Standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Report section of our report.
We are independent of the Group in accordance with the 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.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Group incurred a
loss after tax of $2,124,965 (2022: $2,969,438) and had net cash outflows from operating
activities of $1,392,325 (2022: $1,908,471) for the year ended 30 June 2023. As stated in Note 1,
these conditions, along with other matters as set forth in Note 1, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most 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 18
During the year, the Group issued various
options of which some have lapsed.
Revenue
Refer note 4
The Group recognises revenue when the
performance obligation under the sales
contract is achieved. This performance
obligation is achieved upon delivery of
the services or implementations.
How we addressed the Key Audit
Matter
Our audit procedures
included an
examination of share options issued during
the year as shown in note 18. 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 in the
calculation and disclosure of share-based
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”).
We performed tests over management’s
internal control system as it relates to
revenue.
We performed detailed analytical and
substantive procedures to obtain evidence
as to the accuracy, completeness and
occurrence and disclosure of revenue.
Research and Development Tax Incentive
Refer note 7
Management utilise key assumptions,
judgements and estimates disclosed in
note 1 and 2 in determining the R&D Tax
Our audit procedures included an evaluation
of the assumptions, methodologies and
conclusions used by the Group in preparing
Incentive disclosed in note 7 which is
material to the financial statements.
the R&D Tax Incentive application. We also
focused on the adequacy of financial report
disclosures regarding these assumptions as
disclosed at note 1 and 2.
Deferred Taxation
Refer note 7
Management utilise key assumptions,
judgements and estimates disclosed in
note 1 and 2 in calculating and assessing
the appropriateness for recognition of
deferred taxes which is material to the
financial statements.
Our audit procedures included an evaluation
of the 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 and 2.
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 2023, 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 an auditor’s report
that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of 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 an 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 17 of the directors’ report for
the year ended 30 June 2023.
In our opinion, the Remuneration Report of icetana Limited and its controlled entities, for the year
ended 30 June 2023, 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.
DRY KIRKNESS (AUDIT) PTY LTD
Robert Hall CA
Director
Perth
Date: 30 August 2023
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://www.icetana.ai/investor-centre/corporate-governance. These
documents are reviewed to address any changes in governance practices and the law.
The Company’s Corporate Governance Statement 2023, which is current as at 30 June
2023 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 – 3rd Edition’ in relation to the year ended 30 June 2023. The
Corporate Governance Statement is available in the Corporate Governance section of the
Company’s website, https://www.icetana.ai/investor-centre/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 – 3rd 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 versus 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 24 October 2023
are listed below:
1
2
3
4
5
6
7
8
9
Holder name
MACNICA INC
LANCE EAST HOLDINGS PTY LTD
Number of
ordinary
shares
%
48,538,324
19.00%
25,714,286
10.06%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
16,509,295
6.46%
YCLP PTY LTD
BNP PARIBAS NOMINEES PTY LTD Continue reading text version or see original annual report in PDF
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