Iofina Plc Annual Report 2021

FY2021 Annual Report · Iofina Plc

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Iofina plc
Annual Report &
Accounts 2021

•

2021
2

E
2
Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F
NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I
C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
2021: FOURTH SUCCESSIVE YEAR OF RECORD REVENUE
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
AND EBITDA
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
I
2020
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
Highlights:
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
● Record crystalline iodine production of 609.9MT
● Record revenue and EBITDA
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
● IO#8 construction completed on time and within budget
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
● Restructured debt resulting in significantly strengthened balance sheet
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
● Executed iodine and specialty chemical product expansions
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● Adjusted business to minimise COVID-19 impact
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
Highlights:
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
● Revenue increased by 31%
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
● EBITDA increased by 47%
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● Strengthened cash flow generation and reduction of net debt
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
● IO#9 negotiations in progress
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
● Process upgrade of a major Iofina Chemical product achieved
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
Expectations:
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● Continued strong financial performance
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
● Global Iodine market to likely exhibit:
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
● IO#9 online and progression of IO#10 planning
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
● Continued debt management
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
● Investments in R&D, iodine recovery systems and others at Iofina Chemical
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN
CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI
NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2
CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I
C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl
C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2
C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2
CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I
C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3
Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F
NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4
C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3
IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
IOsorb® plant IO#8, Oklahoma USA
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I

o Demand outpacing supply
o High iodine prices

2022

IOFINA PLC

Contents

COMPANY INFORMATION ................................................................................................................. ..2

CHAIRMAN’S STATEMENT.................................................................................................................. ..3

FINANCIAL REVIEW ............................................................................................................................ ..9

DIRECTORS' BIOGRAPHIES…… … ......................................................................................................... 12

STRATEGIC REPORT ............................................................................................................................ 14

S172 STATEMENT………………………………………………………………………………………………………………………….24

CORPORATE GOVERNANCE……………………………………………………………………………………………………………26

DIRECTORS’ REPORT .......................................................................................................................... 27

CORPORATE GOVERNANCE STATEMENT ........................................................................................... 29

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IOFINA PLC ............................................ 36

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................................... 47

CONSOLIDATED BALANCE SHEET ...................................................................................................... 48

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY .......................................... 49

CONSOLIDATED CASH FLOW STATEMENT ........................................................................................ 50

COMPANY BALANCE SHEET .............................................................................................................. 51

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY .................................................. 52

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................ 53

IOFINA PLC

COMPANY INFORMATION

Directors

Secretary
Company number
Registered office

Auditor

Nominated Adviser

Brokers

Solicitors

Registrar

Financial PR

L J Baller
T M Becker
W D Bellamy
M T Lewin
J F Mermoud
M C Fallin-Christensen

Simon Holden
05393357
48 Chancery Lane
London WC2A 1JF

UHY Hacker Young LLP
Quadrant House
4 Thomas More Square
London E1W 1 YW

finnCap Ltd
1 Bartholomew Close
London EC1A 7BL

Keystone Law Limited
48 Chancery Lane
London WC2A 1JF

Link Asset Services
34 Beckenham Road
Kent BR3 4TU

Yellow Jersey PR Limited
70-71 Wells Street
London W1T 3QE

IOFINA PLC

CHAIRMAN’S STATEMENT

Introduction

I am delighted to report our fourth consecutive year of record revenue and EBITDA. Some of the 2021
financial highlights include increased revenue by 31% from $29.7m to $39.0m and EBITDA
improvement by 47% from $4.7m to $6.9m. Additional highlights include a bank debt to EBITDA ratio
of 1.18 for year-end 2021 compared to 2.62 for year-end 2020, decreased finance expense by 83%
from $1.7m to $0.3m, increased profit before tax by 301% from $1.3m to $5.1m, increased
shareholder equity from $20.7m to $29.9m and cash flow generation of $5.9m which reduced net
debt from $8.9m to $3.0m. If one compares these financial reporting metrics to five years ago, it will
illustrate a Group struggling to survive which has now been transformed to a thriving Company with
reasonable debt, growth, and strong cash flow. For 2022 we continue to see positive trends in our
specialty chemical business lines.

We have built an excellent business with diversified, low-cost production across a diverse array of
IOsorb® plants and a specialty chemicals business supplying customers across a number of end
markets. We continue to develop new niche innovative products and plan to invest approximately $2
million of CAPEX in 2022 into Iofina Chemical. This will include a unique commercial process on
recycling iodine and other products from customers’ chemical waste streams, which is likely to come
online in 2023. With debt reduced for the third consecutive year and a healthy balance sheet, we can
continue investing in the right areas to deliver future growth and profitability. Recently, we have seen
more investment in our specialty chemical business but we are close to completing a new partner
contract which will quickly lead to the construction of IO#9. Our main goal remains ‘continuous
improvement’ throughout the business, which can be measured by financial results, as well as the
creation of new products and the wellbeing of our staff. The management team is committed to
delivering improvements across the business every year, which will ultimately continue to drive
shareholder value.

Iofina Chemical

After reduced H2 2020 demand due to the pandemic, Iofina Chemical (“IC”) emerged in a great
position for growth and ended 2021 with $39.0 million in sales.

Iofina’s continued diversification of its iodine derivatives as well as key other product lines allowed IC
to grow at over 30% in revenue year-over-year (“YOY”). Although there were supply challenges in the
iodine market in 2021, IC had 102% revenue growth YOY in iodine derivatives due to the backward
integration of iodine through Iofina Resources. The unexpected rising price of iodine in 2021 also
contributed to the overall success.

A key factor in the continued growth of IC was the successful process upgrade of a major product
produced. In addition, IC received its first industry Performance Award for excellence in EHS&S
practices. I am pleased to report IC continues to achieve excellence in safety performance finishing
2021 with no lost time accidents. Additional derivative development in emerging products has also
been key in 2021 and is important for growth in future years. IC is investing in a number of
improvement projects in 2022 to achieve both short-term and long-term growth. These include

IOFINA PLC

improvements to R&D facilities, new product research, expansion of a non-iodine product and
investments for a project involving iodine recycling.

IC is poised for continued growth in 2022 and with the continued global supply issues of iodine and
with backward integrated iodine supply, the Group will be ready to capitalize on new opportunities.

Iodine Prices

Since the iodine price lows of early 2017, prices steadily increased through early 2020, reaching $35-
37/kg. During the second half of 2020, as global economies contracted, so did the demand for iodine,
resulting in prices reducing slightly. Iodine prices began 2021 at approximately $32.5-36/kg, which
was similar to where prices were pre-pandemic in early 2020 and ended the year at $50/kg after a
significant increase in global demand for iodine. Leading the increase for iodine were human health
applications such as povidone iodide (PVPI) and X-ray contrast imaging agents. Additionally, the recent
demand for potassium iodide (KI) pills, following the Russian invasion of Ukraine, for the use of
protecting humans from radioactive exposure has been reported by many news outlets. The Company
believes this demand for KI will only have a minor impact on the demand for iodine due to the low
amount of iodine needed for protection. Currently iodine prices are trending higher in a tight supply
market with spot pricing now at $60/kg and above. The last time spot prices for iodine were above
$60/kg was June 2013. Iofina now expects iodine prices to remain steady or slowly increase in 2022
due to strong global demand and environmental and geopolitical risks in Chile.

Iofina Resources

Iofina Resources (“IR”) achieved record sales in 2021, a highly commendable feat against the backdrop
of the ongoing impact of the COVID-19 pandemic. Due to the diligent efforts of our operational
personnel and the dispersed locations of our 5 producing IOsorb® plants, we were able to continuously
produce iodine throughout the year. Ensuring the safety of our employees and maximizing our
efficiency was our focus while also dealing with issues that impacted the production of iodine.

In February 2021, there were unprecedented extreme freezing weather conditions in Oklahoma.
These conditions required IR to suspend all iodine production operations for approximately two weeks
in February 2021. Our Operational personnel successfully executed the plan to protect and ensure the
safety of each person and to winterize each IOsorb® plant to protect the equipment from the damage
imposed by the freezing conditions. Nearly all oil and gas field production was shut-in. Once the thaw
began IR was able to resume production efficiently and safely.

The Company also experienced issues related to the supply chain of our raw materials. The challenges
were potential shortages of these raw materials and unprecedented price increases and freight
surcharges. IR did not experience a single hour of downtime due to lack of chemicals at the IOsorb®
plants. IR has developed long standing relationships with multiple suppliers for chemicals and raw
materials over the years. By working with our suppliers from the boardrooms to the loading dock our
supply chain did not break as most companies had experienced and are currently experiencing. IR
continues to utilize long term supply contracts, open lines of communication and excellent inventory
management to work with our suppliers to ensure continuity of supply and the best possible prices.

The single largest major challenge IR faced in 2021 was the decline in overall brine production by our
partners, which directly impacted our iodine production output. This brine decline was caused by two

IOFINA PLC

factors. First, as previously reported, oil and gas operators’ budgets were curtailed significantly during
the height of the pandemic due to a sharp decline in global demand. Capital budgets were slashed and
routine maintenance on wells was deferred wherever possible for producers to survive. Many wells
were also shut in. The second factor has been the dramatic change toward fiscal discipline within the
oil and gas sector due to the tightness of capital markets and debt financing. In previous commodity
cycles the oil and gas industry would increase spending in response to increases in commodity prices.
Often this spending would exceed the cash flow of these companies, resulting in increased debt and
a weakening of their balance sheet. In 2021 there was a fundamental shift in this historical business
model due to weak demand and negative prices. Oil and Gas operators have adopted fiscal restraint
in allocating capital. In previous cycles the industry invested in production and reserves growth at all
costs. Today the focus is to maintain free cash flow, returning capital to stakeholders and meeting
aggressive ESG goals. The publicly traded E&P companies are being rewarded with increased share
prices for their change in focus. Production growth in a sustainable manner of less than 5% is the
norm today. Free cash flow is the mantra of the day. The impact on IR’s business is less brine available
for iodine extraction. The Company’s long-term forecast indicated a slow decline curve over time but
Covid factors and change in business practices of the oil and gas industry caused this decline to exceed
our projections. This iodine rich brine has not been lost but rather its production has been delayed.
For example, one of our operators highlighted in their year-end report that their oil and gas assets in
Oklahoma have a 15-year economic life when prices were low. The life will be higher now due to the
increase in prices.

Oil and gas prices have continued to rise moving into 2022. Global demand is the fundamental driver
of these increases. In addition, various geopolitical events are adding to the volatility and continued
price increase. As a result, many oil and gas operators, including our partners, will have strong cash
flows in 2022. This will translate into increased spending by the operators to increase production
sustainably and modestly through more aggressive workover programs including drilling of new wells.
Having access to brine streams from different operators with different balance sheets will minimize
future declines and help to level out overall brine production from existing IOsorb® plants.

IR continues to diversify its access to iodine rich brine streams through its exploration efforts. IR is
actively collecting brine samples and evaluating multiple geographic locations continuously. The
results of these efforts have led to discussions with the several different operators and involve the
potential for multiple IOsorb® plant locations. These discussions with the operators about the
economics of iodine extraction also involve ESG objectives and their role in the life cycle of produced
water reuse and disposal. IR is uniquely qualified to be a key partner with these operators in achieving
the goal of a more sustainable produced water model. IR provides a depth of knowledge in water
quality and in various methods, both mechanically and chemically, to treat water for reuse as well as
the capturing of iodine from what has heretofore been considered waste. IR welcomes this
transformation in the industry and looks forward to working with the industry to realize value for all
stakeholders in a safe and sustainable manner. The opportunities to work on and develop produced
water reuse and recycling projects is exciting. The oil and gas industry has always been a global force
for ingenuity and the challenges of produced water reuse and recycling will be no different. We have
chosen IO#9 to be in a new iodine rich area with robust drilling activity. This will help diversify our
geographical risk and allow the Group to have additional oil and gas partners. We continue to forge
relationship with new partners for multiple sites.

IOFINA PLC

Change requires time and effort. IR believes that building these working relationships will yield
numerous opportunities to increase the production of iodine and enhancements in the handling of
produced water in general. Coupled with strong commodity prices for both Iodine and oil and gas and
strong balance sheets sets the stage for a period of smart expansion for Iofina. The experienced team
at Iofina has a proven track record and the expertise to take advantage of this evolving market.

Environment, Health and Safety (“EHS”)

Iofina is committed to operating in a safe, efficient, and environmentally friendly manner. The Group
is committed to the highest standards of safety for our employees and our community. Iofina’s iodine
production utilizes a produced brine stream which, without Iofina, would simply be disposed of along
with the contained iodide. Isolation of this valued resource from a produced stream is an extremely
environmentally friendly method in contrast to other major US based iodine production, which
requires the drilling of new brine wells that serve no other purpose than iodine production.

The Group is constantly striving towards continuous improvements in its EHS policies and programs.
Iofina Chemical is a Chemstewards® certified facility (recertified in 2019 and currently active) and
received a Chemstewards® award for resource management and waste minimization. Additional
improvements to quality management systems are ongoing. Iofina Resources and Iofina Chemical
each have an EHS manager to oversee practices, and upper management personnel are regularly
updated on EHS performance matrices. All Iofina employees are engaged in practices to continually
improve safety and reduce environmental impact.

Iofina has also implemented further safety initiatives throughout the COVID-19 pandemic to protect
its employees.

Strong Board and Governance

The Directors continue to acknowledge the importance of high standards of corporate governance.
The Group’s Corporate Governance Statement is found on page 26 of this report. Given the Group’s
size and the constitution of the Board, the Directors decided to adopt the principles set out in the QCA
Corporate Governance Code published in April 2018 (the “QCA Code”) in advance of the requirement
to adopt a corporate governance code under AIM Rule 26 of the AIM Rules for Companies. In addition,
we continue to operate a robust framework of systems and controls to maintain high standards
throughout the Group, further details of which can be found in the Corporate Governance Statement.
The Board believes that effective corporate governance assists us in the delivery of our corporate
strategy, the sustainable generation of shareholder value and the safeguarding of our stakeholders’
long-term interests. We continue to strengthen the Board by adding independent appointments that
have the interest of all shareholders at the forefront. Iofina will continue to seek a diverse Board with
strong skill sets that continue to grow and challenge the Company while representing all shareholders.

Outlook

Last year I stated that “The next few years look to be transformational for Iofina.” We still believe this.
We now have a highly attractive, profitable Group to present to institutional funds, family offices, and
retail investors worldwide. We are looking forward to the return of non-virtual investor roadshows
and investor programs. We are exploring options to allow better access to investing in Iofina for
potential shareholders outside of the UK. The Board has also approved and will be requesting

IOFINA PLC

shareholder’s authority for the Group’s first share buyback of up to 15,000,000 shares of the Group in
open market and privately transacted purchases when available.

In terms of our expansion, we are squarely focused on growing our current iodine production and
specialty chemical businesses including developing new and exciting chemical compounds. We are
also considering strategies to reduce our reliance on our current oil and gas partners. We have and
continue to explore potential business partnerships and combinations that could be of benefit to
shareholders. Iofina is expanding our M&A efforts to possibly include smaller niche products being
divested from larger companies. Iofina’s niche products continue to propel the Company and we feel
that similar products will work in our model. As stated previously, over the past several years we have
been working to diversify our product lines, recognizing the importance of product diversification in
our core chemical competencies. This diversification was shown to be particularly important in 2020
as many sectors contracted and in the coming years, we will continue this diversification.

We continue to be wise and focused on calculated risks in our approach to growth. The Group
evaluates all the data points we have available including the paradigm shift we have seen both
politically and economically from the low oil and natural gas prices experienced in 2020. This has had
an impact on our business. This affected the Company in 2021 much more than we had anticipated
both at our current sites and caused delays on our plant expansion selection in 2021. While we had
hoped to begin construction on an additional IOsorb® plant in 2021 we were regrettably not able to
do so.

Earlier I drew the parallel to the Iofina of five years ago when we were operating in a higher leverage,
lower price environment. We navigated those years through prudent management of the variables in
our control. We know what these variables are and will only expand the business where we can
minimize the influence of those which are uncontrollable. For example, we refused to go to our second
and third choice new plant locations in 2021 – there were simply too many factors in each location
that we could not control. We continue to apply this rigour today and into the future.

As such, we are confident the optimal target locations will be secured using the new market
considerations, but we can never be exact on the timing. The Company made mistakes in 2013 with
large cost overruns, delayed supplies of electric to the plants, subpar location selections, and
optimistic long term iodine pricing forecasts which resulted in a large amount of debt and subpar
performance. It took a lot of hard work, dedication, improved efficiencies, cost reductions, a little
luck, and 7 years to fully recover as a Company. We will not make the same mistakes again. We need
to always focus on being a low-cost producer and not let our standards change as iodine prices may
increase and decrease over time, a variable we can’t control. We can only control our production cost;
thus, we are committed to expanding at the best suited sites which are ideal in all pricing
environments.

We look forward to sharing our long-term growth plans highlights to shareholders as our internal
strategic plan continues to roll out and be updated. Over last few years we have achieved our previous
financial goals which were keenly focused on reducing debt, growing the business with restraint, and
achieving banking relationships. Now we are tasked on developing new financial goals to match the
Group’s growth aspirations while maintaining a safe and acceptable debt/EBDITA ratio and other
metrics. We will also update our key performance indicators (“KPIs”) as laid out further in this report
to better align with our strategic plan during the next calendar year.

IOFINA PLC

I would like to thank all of our shareholders for their continued support as we guide the business, and
we are looking forward to the excellent opportunities we are seeing as we move the Company forward
in setting more record years.

Lance J Baller
Non-Executive Chairman
Iofina plc
6 May 2022

IOFINA PLC

FINANCIAL REVIEW

Summary 2021 v 2020

• Fourth successive year of record revenue and EBITDA

• Revenue increased by 31% from $29.7m to $39.0m

• Gross profit increased by 28% from $8.4m to $10.7m

• EBITDA improved by 47% from $4.7m to $6.9m

• Operating profit increased by 78% from $2.9m to $5.2m

• Finance expense decreased by 83% from $1.7m to $0.3m

• Profit before tax increased by 301% from $1.3m to $5.1m

• Cash flow generation of $5.9m reduced net debt from $8.9m to $3.0m

• Paycheck Protection Program loans of $1.09m were forgiven and credited to income

• Non-performing 2019 investment of $0.9m in Organic Vines was impaired

• Exceptional deferred tax credit to profit of $4.1m for US accumulated tax losses

• Capital investment into chemical and iodine plants was $1.5m (2020: $2.4m)

Trading results

Total revenue increased by 31% from $29.7m to $39.0m. After a COVID related drop in sales in H2
2020 demand rebounded in 2021, and sales were boosted by availability of inventory unsold as of the
2020 year end. Turnover of iodine related products increased by 65% from $18.5m to $30.5m. Sales
revenue from crystallised iodine increased by 31%, with a 27% volume increase from 324 metric
tonnes to 411 metric tonnes. Iodine prices increased, with an average price of $36.03 (2020: $34.84)
per kilogram. The price acceleration seen in Q4 2021 has continued, reaching $60 per kilogram and
above as of end Q1 2022. Sales revenue from iodine derivative products increased by 102% and
utilised 321 metric tonnes of production (2020: 155 metric tonnes). Non-iodine products revenue fell
by 23% from $11.2m to $8.6m, with some forecast demand delayed.

Gross profit improved overall by $2.3m (28%) to $10.7m (2020: $8.4m), in line with 2020 at 27% of
sales (2020: 28%). Margins over costs of materials were at similar percentage levels to 2020 across
product categories. Costs of the Iofina Chemical plant were at the same level as for 2020. Production
costs of iodine per kilogram at Iofina Resources increased by 13%, reflecting similar overall costs to
2020 applied to a lower production output.

Crystallised iodine production was 518 metric tonnes compared to 610 metric tonnes for 2020. Sales
of crystallised iodine, both as raw iodine and in derivative compounds, increased by 53% from 479
metric tonnes to 732 metric tonnes. Sales of crystallised iodine were 56% of the total (2020: 68%), and
sales of crystallised iodine in derivative products were 44% of the total (2020: 32%).

IOFINA PLC

EBITDA improved by 47% from $4.7m to $6.9m after deducting $3.8m SGA expenses (2020: $3.7m)
from gross profit of $10.7m (2020: $8.4m). Operating profit after depreciation and amortisation of
$1.7m (2020: $1.8m) was $5.2m compared to $2.9m for 2020.

Finance expense

Finance expense fell by $1.4m from $1.7m in 2020 to $0.3m in 2021. The 2020 expense included $1.0m
of interest and fees relating to the borrowing arrangements prior to the refinancing concluded in
September 2020. There was also $0.4m of refinancing fees relating to the September 2020 restructure
itself. The terms of the Group’s current borrowing arrangements are set out in Note 20.

Profit before tax

Profit before tax improved by $3.8m from $1.3m (2020) to $5.1m (2021). The improvement mainly
reflects much stronger trading driven by increased demand for iodine and an associated rise in price,
together with a step change reduction in finance costs resulting from the 2020 refinancing.

Paycheck Protection Program loans

Paycheck Protection Program loans totalling $1.09m were received during 2020. Notification of
forgiveness of these loans was received from the Small Business Administration in January 2021, and
the sums advanced have consequently been credited to income.

Investment

The Group’s November 2019 investment of $0.9m in the hemp seed production undertaken by
Organic Vines OP LLC has not provided any of the returns forecast on the basis of market conditions
at that time, with COVID a significant factor. The Company cannot predict any future income with any
reasonable probability, and therefore the investment has been impaired to Nil.

Deferred tax

In accordance with IAS 12 and in light of the Group’s recent much improved profitability, and therefore
its likely utilisation of its $19.4m accumulated US Federal tax losses in the foreseeable future, a
deferred tax asset of $4.1m reflecting the value of those losses at a tax rate of 21% has now been set
up in the balance sheet and credited to tax in the statement of comprehensive income. This asset will
be amortised to the profit and loss account in line with future reductions in tax payable from utilisation
of the losses.

Capital investment

The Group invested $1.5m in capital projects and equipment (2020: $2.4m), most of which relates to
new projects, process improvements and replacements at the Iofina Chemical plant. In accordance
with IFRS 16 there is also an addition of $0.4m to right-of-use assets and associated lease liabilities in
respect of a four-year extension to the Iofina Resources Denver office lease. The related cash outlay
will occur through monthly rental payments over the period of the lease extension.

IOFINA PLC

Cash flow

Cash started the year at $3.5m and ended $1.8m higher at $5.3m, after paying off $1.4m of the bank
term loan in accordance with the borrowing schedule and also depositing $2.7m of funds to reduce
the bank line of credit to Nil, so avoiding interest charges. Total cash generated was therefore the
$5.9m reflected in the reduction of net debt from $8.9m to $3.0m. The Group considers that these
levels of cash and borrowings make it well placed to fund further expansion. As regards working
capital, inventories reduced by $3.3m and receivables increased by $2.6m, reflecting more normal
ratios after the drop in demand during 2020.

Malcolm Lewin
Chief Financial Officer
Iofina plc
6 May 2022

IOFINA PLC

DIRECTORS’ BIOGRAPHIES

Lance J. Baller, Non-Executive Chairman

Mr. Baller was co-founder, CEO and President of Iofina Plc prior to his departure for health reasons in
June 2013. Mr. Baller was the Group’s Finance Director from 2007 until his appointment as CEO in
2010. Mr. Baller returned as Chairman in April 2014. Mr. Baller currently serves as CEO of Selectis
Health, Inc and as a director and as sole or principal shareholder of several privately owned businesses,
including Baller Enterprises, Inc. (personal holding company), Titan Au, Inc, Empire Leasing LLC, Valdez
Au, Inc, Extrac, Inc, (which all are in gold, sand, rock, and gravel mining), Ultimate Investment (personal
investment company) and Baller Family Foundation, Inc. (personal family foundation). He is the former
managing partner of Shortline Equity Partners, Inc., a mid-market merger and acquisitions consulting
and investment company. Mr. Baller is also the former Managing Partner of Elevation Capital
Management, LLC and is the former alternative investment hedge fund manager of the Elevation Fund.
He is also a former Vice-President of Corporate Development and Communications of Integrated
Biopharma, Inc. and prior to that a vice-president of the investment banking firms UBS and Morgan
Stanley. Mr. Baller has been a CEO, interim CEO, Chairman, CFO and secretary of various private and
public listed companies throughout his career. He has served as Chairman to various companies and
has led successful restructurings. Mr. Baller has had extensive experience in all aspects of corporate
finance. Mr. Baller currently is on the board of trustees of Index Fund and Digital Funds where he
serves as the chairman of the audit committee and as the audit committee financial expert under
Sarbanes-Oxley.

Dr. Thomas M. Becker, Chief Executive Officer

Dr. Becker has served as President/CEO of Iofina plc since 2014 and has led Iofina Chemical since
March 2010. Previously, Dr. Becker was the Vice President of Research and Development at
H&S/Iofina Chemical. Iofina bought H&S in July 2009. Dr. Becker has conducted extensive research in
both inorganic and organic halogen-based chemistry. Dr. Becker has written a magnitude of published
technical papers in his career. Prior to H&S Dr. Becker worked as an Oak Ridge Scholar on behalf of
the US EPA and for various other chemical manufacturing companies. Dr. Becker earned a BS in
Chemistry from Indiana University, and a PhD in Chemistry from the University of Cincinnati. He has
extensive experience in scale-up of chemical processes from laboratory to pilot to full scale
production. Dr. Becker is a former member of the Board of Governors of the Society of Chemical
Manufacturers and Affiliates (“SOCMA”).

Dr. William D. Bellamy, Non-Executive Director

Dr. Bellamy is the former Senior Vice President of the Water Business Group at CH2M HILL, Inc.
(“CH2M”), a company he has worked at for 30 years until his recent retirement. CH2M is one of the
largest consulting engineering companies in the world, providing leadership and strategic direction for
the water business and application of technologies worldwide. Dr. Bellamy has participated in energy
and sustainability forums, including as a panellist at the World Future Energy Conference in Abu Dhabi,
the World Bank Sustainable Cities Symposium and the Future of Water Economic Forum. Dr. Bellamy
serves as Professor of Practice at the University of Wyoming, where he teaches graduate courses and
is responsible for securing grants and research funding in the areas of water resources, water
treatment and sustainable energy development. Dr. Bellamy has a PhD in Civil Engineering from

IOFINA PLC

Colorado State University, an MSc in Civil (Environmental) Engineering from the University of
Wyoming and a BSc in Electrical (Bio-Medical) Engineering from the University of Wyoming.

Malcolm T. Lewin, Chief Financial Officer

Mr. Lewin was named CFO and a director of the Group in November 2016 after having joined Iofina
as interim CFO in February 2016. Mr. Lewin is based in the UK and has over 30 years of experience in
finance and accounting for both public and private companies. As well as being a partner in a chartered
accounting firm for 11 years, he has acted for various companies listed on AIM and other exchanges.
In particular, from 2000 to 2003 he was the Finance Director of Oxford Metrics plc, an AIM company
supplying motion capture and visual geometry systems. From 2004 to 2006 he was the Finance
Director of Real Estate Investors plc, an AIM property investment company with interests in quality
commercial and industrial properties. From 2006 to 2011 he was a Director and CFO of Hunter Bay
Minerals plc, a junior mining company listed on the Toronto Venture Exchange with interests in South
America and Canada. From 2011 to 2014 he was CFO and Treasurer of VolitionRX Limited, an OTC life
sciences company focused on developing blood tests for a broad range of cancer types and other
conditions. Mr. Lewin has an MA in Classics from Oxford University and qualified as a chartered
accountant with Coopers & Lybrand.

J. Frank Mermoud, Non-Executive Director

Mr. Mermoud has more than 30 years’ experience in international business, facilitating trade and
investment in both the public and private sectors. He has held senior international, economic and
commercial policy positions within the United States Government having served as the Secretary of
State’s Special Representative for Commercial and Business Affairs at U.S. Department of State from
2002 to 2009. Mr. Mermoud is also a Non-Executive Director of Cub Energy Inc. an oil and gas company
headquartered in Houston, Texas.

Mary C. Fallin-Christensen, Non-Executive Director

Mary Fallin-Christensen has served the State of Oklahoma for over 30 years. She was elected the first
female Governor of the State in 2010, and was re-elected for a second term in 2014. Prior to serving
as Governor she held a number of state and federal positions, including serving as US Congresswoman
for Oklahoma’s 5th district between 2007-2011 and serving as Lieutenant Governor of Oklahoma
between 1995-2006. Mary has been a major contributor to natural resources industries in Oklahoma,
and implemented the State’s first comprehensive energy plan as well as its State-wide water plan. She
has held several positions, including Chair of the Southern State Energy Board, Chair of the Interstate
Oil & Gas Compact Commission, and has served on the natural resource committee of the National
Governors Association (NGA). Previously, she also served on the United States House of
Representatives Committee on Small Business, was Small Business Chairman on the Republican Policy
Committee, and was named the “Guardian of Small Business” by the National Federation of
Independent Business. Mary has also served on numerous Boards of Directors for both commercial
organizations and non-profits.

IOFINA PLC

STRATEGIC REPORT

Principal activities and review of the business

Iofina plc (“Iofina” or the “Company”) is the holding company of a group of companies (the “Group”)
involved in the exploration and isolation of iodine and the production of specialty chemicals. Large
volumes of brine water are sourced from partnerships with oil and gas operators and saltwater
disposal (“SWD”) operators in the United States and is used as a raw material to produce iodine at
the Group’s multiple IOsorb® plants. The Group’s unique business model isolates a resource, iodine
from a produced waste stream that, without Iofina’s technology, would be lost. Iodine containing or
other specialty chemicals are produced at and sold through the Company’s wholly owned subsidiary,
Iofina Chemical, Inc., with the major raw material being the Group’s produced iodine. Additionally,
the Group’s crystalline IOflo® iodine is sold directly to other iodine end-users.

Iodine is a rare element that is produced only in a few countries in the world, with approximately 90
percent of global production coming from Chile (~60 percent) and Japan (~30 percent, including
recycled waste streams). The U.S., where the Group operates, is responsible for approximately six
percent of production but is one of the world’s largest consumers of iodine. Iodine and its compounds
have many human health related applications, including x-ray contrast agents, pharmaceuticals,
antiseptics, thyroid function, and others. Additional high-volume uses of iodine include LCD screen
technology, material heat stabilisation, animal feed additives, biocides, catalysts and more. The Group
produces iodine in the United States where the overall global iodine production is only a small
percentage of the world’s total production, but where there is a large consumption of the world’s
iodine by various American users. Iofina believes it is the second largest producer of iodine in North
America.

Iofina Resources, Inc. is the Group’s wholly owned subsidiary which uses proprietary Wellhead
Extraction Technology® (WET®) and WET® IOsorb® methods to produce iodine from brine. The
Directors of the Company believe that Iofina’s production process, which utilizes brine water from
third party oil and gas production, is advantageous for long term sourcing of the raw material as well
as minimised production and expansion costs.

The ability of the Group to expand its iodine production quickly, at low cost, differentiates Iofina from
other iodine producers. This has been proven from the expansion of production and opening of
IOsorb® plants IO#7 and IO#8. Additionally, the Directors believe that the Group’s technology to
produce iodine is far more environmentally friendly compared to other producers. By using a waste
stream from the oil and gas industry to isolate iodine versus isolating iodine from ores, Iofina’s process
is ecologically efficient in obtaining a valuable product from a waste stream versus environmentally
intensive processes of mining iodine from ores seen in Chile.

Economically viable iodide rich brine co-produced during oil and gas production is not common, and
the Group’s proprietary geological model to locate and anticipate iodide rich sources is unique. The
Directors of Iofina are committed to producing its products in a sustainable and environmentally
friendly manner, and to improving communications regarding our long-term strategy in respect of
Iofina’s sustainable practices and other ESG tenets.

IOFINA PLC

The focus of Iofina’s current business model is the production of iodine from brine and the creation
and sales of specialty chemicals through Iofina Chemical. The Directors feel strongly that
diversification of the business while focusing on our core expertise is important. Iofina Resources
diversifies its iodine production through multiple IOsorb® production plants with multiple brine
suppliers in our core area in western Oklahoma. The technology the Group has developed, utilizing a
waste resource already being produced, allows Iofina the ability to expand its operations quickly with
minimal capital expenditure. Continued prudent growth in the number of IOsorb® plants increases
production, profit and diversification. Continued expansion of the Group’s geological model provides
opportunities for Iofina outside of its current core area.

Iofina Chemical produces a wide range iodine-based products with applications in various industries
including agricultural, pharmaceutical, biocides and others, whilst additional diversification is realised
by the production of non-iodine-based products at Iofina Chemical. The end markets for various
products can change, and Iofina Chemical’s ability to produce a variety of products allows the Group
to take advantage of growing markets while not being as affected by temporarily depressed or
declining markets.

In 2021 iodine and iodine derivative sales increased while non-iodine product sales declined versus
2020. Market conditions for specialty chemicals can change. As an example, there was an inventory
build-up by Iofina’s key customers of a key fluorinated chemical in H2 2020 which resulted in
increased sales of this product in H2 2020 but lower sales in 2021. This same fluorinated product, for
Iofina, has recently seen stronger demand during late Q1 of 2022. Conversely, iodine demand in H2
2020 was low as COVID related economic downturns affected consumer demand for iodine products
particularly in human health and automotive sectors. As a result, Iofina carried higher than normal
inventories of iodine and iodine derivatives into 2021. With the quicker than expected economic
recovery of iodine markets as countries began to reopen, these inventories were sold down and had
a positive impact on 2021 results. The overall result for Iofina was record revenue and profit and is a
testament to our business model of diversification of business lines while keeping to our core
technologies. Additionally, creating strong, transparent, long-term, mutually beneficial customer
relationships are a fundamental tenet for Iofina Chemical. Research and Development remain a top
focus at Iofina in order to improve current systems and be at the forefront of new technologies, new
specialty chemical products and applications in our core competencies.

Iodine prices have risen significantly in the last 18 months, reaching $60/kg and higher in some
instances. This is a level not experienced since 2011, when a combination of the Fukushima disaster
in Japan and Chilean supply disruptions resulted in a shortage of iodine and a price spike. Supply and
demand changes, as well as manufacturing cost increases, are the major factors influencing the iodine
price. More recently, iodine prices slightly retreated in H2 2020 as a result of lower global demand for
iodine and iodine-based products during the COVID-19 pandemic. As an iodine manufacturer, iodine
prices have a significant impact on the Group’s gross profit margins. Prices rose marginally in H1 2021
and significantly in H2 2021 as demand outpaced supply as global economies expanded as COVID
impacts waned.

During 2021, demand for many human health related uses of iodine increased significantly from 2020
levels. Currently, iodine prices are high versus historical levels and the range of prices is larger than
typical historical prices. Spot prices began 2022 near $50/kg and now are mostly at $60/kg and above

IOFINA PLC

while contracted iodine prices for large customers are generally lower than spot prices. Iofina expects
demand for its products to remain strong in 2022 versus supply and foresees iodine prices to remain
at high levels. To the Group’s knowledge, there is no indication of large-scale greenfield iodine
projects currently in development that would significantly increase iodine supply in the short-term.
Additionally, inflation in H2 2021 and into 2022 has resulted in higher costs for Iofina’s raw materials,
labour and energy, which is likely to continue through much of 2022.

The Directors recognized that, as the Company erected its IOsorb® plants, it was imperative for
Iofina’s iodine production costs to be amongst the lowest in the industry to be competitive. Between
2014 and 2017 numerous initiatives were successfully implemented to optimise Iofina’s technology
and lower production costs. Once the majority of these process cost optimisation goals were
achieved, and iodine market conditions were positive, the Directors executed the next phase of
Iofina’s business plan and began a growth strategy. In early 2018 the Group’s iodine plant, IO#7, was
completed. By expanding our operations and building IO#7, the Group has successfully lowered
overall iodine production costs compared to the costs before IO#7. The Directors continued this
prudent growth strategy in 2019. In Q2 2019, the Company performed an equity raise to reduce debt
and provide working capital for expansion projects. The result was the construction of IO#8 which
began in late 2019 and was completed in early April 2020.

The Group is committed to continued growth and is investigating locations and partnerships to
expand iodine production. The Group announced its intention in 2021 to build IO#9. Lessons learned
from past expansion play a role in management’s iodine plant growth. Building of IOsorb® plants will
be done in a prudent manner to ensure to the best of our knowledge long-term, low-cost iodine
production. With an expanding iodine market and Iofina’s improved balance sheet it is likely that
Iofina will embark on IO#10 soon after IO#9’s completion, if not before, although this will only be
done with proper prudent evaluations of potential future sites.

The Directors are aware of the risk of declining brine availability if our partners do not maintain or
increase their hydrocarbon production in areas that supply the Group’s IOsorb® plants. The Group is
investigating the economics and the technology to better control the iodide rich brine supplies that
feed the current and future plants. Iofina Chemical continues to be recognised as a world-renowned
halogen specialty chemical producer. Vertical integration of the Group’s iodine into iodine derivatives
gives Iofina’s customers stability of supply in addition to the long-standing quality and technical
support to Iofina’s global customers for the goods sold to them. Additionally, the non-iodine-based
halogen derivatives produced by Iofina Chemical gives the Group further diversity. Iofina Chemical is
investing in Capital Expenditure projects in 2022 to improve its R&D facilities, scale up production of
a non-iodine product, and begin a new iodine recycling operation.

IOFINA PLC

Key Performance Indicators

The Directors review a range of financial indicators to assess and manage the Group’s performance,
including the following relating to revenue and iodine production:

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$,000

Revenue from sales of iodine and iodine derivatives
Revenue from non-iodine products
Total revenue
Total pounds of product shipped (LBS ‘000)
Crystallised iodine produced (Metric Tonnes)
IOsorb® plants in operation (year-end)

$30,473
$8,566
$39,039
2,580
518
5

$18,507
$11,181
$29,688
1,800
610
5

Commentary on some of the above indicators is to be found in the Chairman’s Statement on pages 3
to 8.

Further commentary on the results for the year and the financial position at the year-end is to be
found in the Financial Review on pages 9 to 11.

Objectives

At the end of 2021 the Group had five operating IOsorb® iodine production facilities in the Group’s
core area in Oklahoma. While the theoretical capacity of these plants is very high, the practical
capacity of the plants is somewhat lower. Practical capacity takes into account multiple causes of
downtime, including weather, repairs and maintenance, inadequate brine (low parts per million of
iodine, heavily contaminated brine or little to no supply), power outages and other conditions. As we
have proven our technology and continue to improve operations at current facilities, more accurate
practical capacity operating targets have been realised as well as improvements for maximising
practical capacity.

Iofina Resources’ unique business model allows the Group to determine sites for new iodine
production plants utilizing existing brine produced from oil and gas production and quickly bring these
sites into production. The continued execution of this prudent growth strategy was continued with
the start of construction of IO#8 in late 2019 which was completed in April 2020. While technology
and efficiency improvements at current facilities remain an ongoing priority, the Company continues
to explore new iodine production opportunities. This objective of strategic expansion in 2020 and
beyond is focused on sites that will continue to improve Iofina’s output with low production costs. In
2021, the Group announced its intention to build IO#9, with this now expected to be completed later
in 2022. Brine supply to our IOsorb® plants can be affected by regulatory changes and adjustments to
our partners’ saltwater disposal systems and oil production programs. Iofina continues to work with
its partners to implement plans to maximize brine input and iodine output at each of our existing sites.
The mutually beneficial relationship between Iofina and its brine supply partners, which allows Iofina
to create iodine and allows the brine suppliers to realize value from a waste stream, is a key

IOFINA PLC

component for existing projects and potentially for future sites. Continued efforts by our business
development and geological teams have identified numerous other expansion opportunities that the
Company will continue to evaluate and potentially execute, with current and other potential brine
supply partners, when management determines proper timing for new sites.

Timing of future iodine production growth will be dependent on various factors including the stability
or increase of iodine prices, global iodine demand, availability and costs to produce iodine at new
sites, partnership agreements, oil prices and production in areas with high iodide content brines, and
the regulatory landscape with respect to brine injection. With the fluctuations in oil prices, which was
evident in the last two years, the Group is increasingly focused on evaluating alternative brine sourcing
opportunities which may allow the Group to better control brine supply at future sites. The Directors
are focused on expansion in a prudent manner whilst properly managing the current debt and cash
flow of the organisation. Expansion in 2022 will occur with the building of IO#9 and investigations into
IO#10 are ongoing. The Directors will evaluate market conditions and the detailed information on
potential future plant sites before spending capital on new IOsorb® plants.

Iofina Chemical has continued to invest in current product lines, safety improvements, and new
product R&D. These include investments in both iodine-based products and other non-iodine specialty
chemicals. Capital investment projects completed in 2021 at Iofina Chemical included methyl fluoride
upgrades, building containment improvements, and other safety initiatives. Increased capital
expenditures at Iofina Chemical are expected in 2022 as discussed earlier in this report. The R&D and
the sales groups continue to investigate and research new opportunities for and applications of our
existing portfolio of products, as well as identify and produce new halogen-based derivatives for the
Group in order to grow our halogen derivatives business. It is also expected that Iofina Resources’
expansion plans in 2022 will result in the need for expansion of our customer base for our products.
The sales team at Iofina Chemical continues to develop new sales channels for our products including
direct sales of the Group’s crystalline IOflo® iodine to consumers. Managing existing and developing
new sales channels and relationships, as Iofina continues to grow, is a high priority for the sales force
at Iofina Chemical.

As previously communicated, IofinaEX is now solely focused on monetizing its hemp seed investment
project with Organic Vines OP that resulted in the production of 22 million certified organic seeds. To
date seed sales are low and no significant sales were made in 2021. While the Group believes these
seeds are viable for sales, the Company cannot predict any future income with any reasonable
probability, and therefore the investment has been impaired to Nil.

Lastly, the Directors are committed to employee retention whilst controlling costs. Employee safety
and training are also key objectives for the Group. A key component for the Group is the high
operational gearing whereby the Group’s business model allows for the control of administrative and
fixed expenses whilst expanding operations.

IOFINA PLC

Principal risks and uncertainties

Iofina plc is subject to a number of risks and uncertainties, which could have a material effect on its
business, operations or future performance, including but not limited to:

Raw Materials: Brine water produced from oil and gas operations is the raw material source
for Iofina’s iodine production. The Group continues to evaluate opportunities to integrate its
IOsorb® process into produced brine water streams associated with hydrocarbon operations
in the USA, as well as other brine stream sources throughout the world. However, there is
significant risk and no guarantee as to the volume of commercial quantities of iodide rich brine
available to our current and future IOsorb® plants. Oil and gas prices and demand for these
hydrocarbons generally will dictate whether our partners continue to expand their production
or possibly reduce hydrocarbon output. Changes in hydrocarbon production by our partners
will change the total brine availability to isolate iodine and thus the iodine output of our
IOsorb® plants. The salt-water disposal wells (SWDs) that our partners operate may have
temporary or permanent issues which would likely affect the brine supply to IOsorb® plants.
In the past year and a half there has been a reduction of capital spent by our partners for new
drilling and recompletion of wells in our core area which has resulted in a decline in total
amounts of brine co-produced with oil and gas in our key areas. Iofina maintains good
relationships with our partners who provide the brine water to our existing IOsorb® plants.
Maintaining a positive, mutually beneficial relationship with our brine suppliers is a top
priority for the Group. By continuing an aggressive water testing program and active
exploration utilising geology and data analytics and incorporating reservoir and production
engineering, we are constantly evaluating new potential locations for iodine extraction in our
core area and in other locations.

Iofina Chemical sources raw materials throughout the globe. Understanding the supply chain
of these materials is important to minimise supply disruptions. Global supply change
disruptions and logistic bottlenecks can adversely affect ability to obtain key raw materials
and may result in increased costs of these materials. Iofina Chemical has long term
relationships with many of its suppliers. Additionally, when possible, Iofina Chemical sources
materials from multiple suppliers to reduce risk. Increased regulations can adversely affect
availability and cost of materials. Prices of raw materials and energy can change and if
increases in these prices are not able to be passed on to our customers, it would negatively
affect margins for our products.

COVID-19 and Global Crises: Global crises, while rare, can impact businesses significantly. The
COVID-19 pandemic is an example of such an event. Similar events could have a negative
effect on the markets we serve and on the Group’s profits. COVID-19 resulted in a global
economic slowdown and a reduced demand for many of Iofina’s products. These types of
events can also result in delays in shipping, worker limitations, business closures and other
challenges which may negatively affect the Group. The diversity of Iofina’s products along
with the uses of products in areas like human health applications make Iofina less susceptible
than most other businesses. Iofina quickly implemented many protocols to minimize any
negative impacts on the business, but these protocols only reduce risk and cannot eliminate

IOFINA PLC

risk. COVID-19 or other events such as political unrest, acts of aggression (wars), other health
crises, major weather events or others would likely have a negative effect for the Group.

Currently, the Russian invasion of Ukraine has not directly affected Iofina’s operations
negatively, however, a prolonged invasion or an escalation of this conflict may cause negative
changes to international sales and supply. Additional political sanctions or negative impacts
to global economies as a result of this invasion may adversely impact our business.

Environmental: The Group’s operations are subject to the environmental risks inherent in the
exploration and chemical industries. The Group is subject to environmental laws and
regulations in connection with all of its operations. Although the Group intends to be in
compliance in all material respects with all applicable environmental laws and regulations,
there are certain risks inherent to its activities, such as accidental spills, leakages or other
circumstances that could expose the Group to extensive liability. Accordingly, the Group
promotes wherever possible environmental sustainability in its working practices and seeks
to minimise, mitigate, or remedy any harmful effects from the Group’s operations on the
environment at each of its operational sites. Regulations on brine injections in the state of
Oklahoma into the Arbuckle geological formation in the Group’s core area due to seismic
activity were implemented mainly in late 2015 to early 2016, and have affected Iofina’s
partners’ brine disposal into this formation near some of our sites. This reduced some brine
availability to Iofina at some sites. The Group and its partners have implemented and continue
to implement strategies to minimise the effect on the availability of iodine rich brine to Iofina
due to these regulations. Moving forward the Group and its partners will continue to monitor
these risks and act accordingly. While the frequency and intensity of earthquakes have
significantly reduced in Oklahoma, and this reduction is likely a result of regulated changes in
brine disposal into the Arbuckle formation, there is still risk of additional earthquakes and
regulation moving forward. Changes in laws or regulation of brine streams could affect brine
availability or the cost to produce iodine. As a specialty chemical manufacturer, new
regulations based on chemical use, adverse human health or environmental impact are a risk
and may lead to higher costs or controlled production. Recent Greenhouse Gas (GHG)
regulations in the USA have not impacted Iofina’s ability to produce products it currently
manufactures, but changes to production allocations may negatively affect Iofina’s production
output in the future. Other environmental regulations that restrict manufacturing of
chemicals that Iofina produces would have a negative impact on the Group. The Group has a
robust Environmental, Health and Safety program and strives for continual improvement in
this area. Additionally, Iofina Chemical is a certified Chemstewards® facility.

Changes in Markets and Competition: Iofina is well diversified in the markets we serve. As a
result, small changes to these markets generally will not materially affect our business.
However, major disruptions in key markets that use iodine or the other specialty compounds
we manufacture could have a material negative effect on the Group. Additionally, increased
competition in the markets we serve could negatively impact prices or the ability to sell our
goods. In particular, large increases in iodine production from competitors could negatively
affect iodine prices and the Group’s market share. While we do not know of any planned,
new, large greenfield iodine projects in the near term, information is limited.

IOFINA PLC

Iodine Price volatility: The demand for, and prices of, iodine are highly dependent on a variety
of factors including international supply and demand, the level of consumer product demand,
the price and availability of alternatives, actions taken by governments and global economic
and political developments. Increases in current iodine producers’ production capacities or
new iodine producers entering the market could negatively impact prices. Fluctuations in
iodine prices and, in particular, a material decline in the price of iodine would have a material
adverse effect on the Group’s business, financial condition and operations. Since 2017, prices
of iodine have been rising until demand for iodine slowed as the global demand for many
products fell during the second half of 2020 as the COVID-19 pandemic surged. Iodine prices
recovered in H1 2021 and began to rise significantly in H2 2021. During H1 2022 iodine prices
have remained high as demand is strong and is outpacing supply.

Key customers: There are a limited number of potential customers who purchase many of
the products of the Group’s chemical business, which makes relationships with these
customers, as well as the success of those customers’ businesses, critical to the Group’s
success. The loss of one or more major customers could harm the business, operating results
and financial condition of the Group. Iofina is continuing to diversify its customer base in its
Chemical subsidiary. In addition, Iofina works closely with all of its customers to develop
strong relationships, with a significant focus on ensuring that its products and services meet
the needs of its customers and are of the highest quality. In 2021, 10 percent of revenue
recognised was attributable to one long term customer and four other customers each
contributed to over 5% of sales. Relations with these customers are good.

Key Partners: Iofina partners with third party oil and gas producers and saltwater disposal
operators to process iodine rich brine they extract with oil and gas production. Fluctuations
of oil and gas prices in the US can affect the financial stability of oil and gas producers. Any
changes in operator status or the financial strength of our partners is a risk to brine production
and availability. The Group has agreements with our partners to reduce any risk of change in
status. Material changes in these brine supply contracts with our partners could negatively
affect the Group.

Regulation and Trade: The businesses are subject to various significant international, federal,
state and local regulations currently in effect including but not limited to environmental,
health and safety and import/export regulations. These regulations are complex, change
frequently, can vary from country to country, state to state and have generally increased over
time. Iofina may incur significant expense in order to comply with these regulations or to
remedy violations of them. The current federal administration in the USA has increased
regulations in our industries versus the previous administration. Any new regulation that
would increase cost of raw materials the Group uses, reduces availability of these raw
materials or caps production of products the Group produces would likely have a negative
effect on margins.

Any failure by Iofina to comply with applicable government regulations could result in non-
compliant portions of our operations being shut down, product recalls or impositions of civil
and criminal penalties and, in some cases, prohibition from distributing our products or

IOFINA PLC

performing our services until the products and services are brought into compliance, which
could significantly affect our operations.

IofinaEX is involved in the sale of hemp seeds, a highly regulated industry. Laws and
regulations for handling hemp seeds, biomass and products produced from hemp continue to
change and evolve.

The Group closely monitors regulations across its businesses to ensure that it complies with
the relevant laws and regulations. While Iofina does not believe that it is non-compliant with
any laws or regulations, any instances of non-compliance would be brought to the attention
of the appropriate authorities as soon as possible.

Recently trade relationships between the USA and other areas of the world have become
more unstable. Increased tariffs implemented by the USA and retaliatory tariffs imposed by
other governments against the USA have the potential to adversely affect both raw material
supply and final product sales for Iofina in certain areas of the world. Iofina has been proactive
in reducing the impact of tariffs which directly impact the Company’s supply and sales lines.

Inventory Fluctuations: Inventory level changes can cause a financial instability. High
inventories negatively affect cash flow, while low inventories can negatively affect sales
volumes and customer relationships. In 2021, the Group started the year with larger than
normal iodine inventories and ended the year with lower than normal iodine inventories.

Insurance may not cover all material losses: The Group strives to carry standard insurance
for our industry that would minimise loss when events occur. However, certain scenarios or
events may not be covered by insurance and could have a negative material impact on the
Group. For example, cyber-attacks have increased globally and while the Group has increased
measures to thwart potential cyber-attacks, we cannot guarantee these measures will prevent
a cyber-attack for which we do not carry specific insurance.

Personnel: As a small technical organisation, the loss of key technical or senior management
employees could negatively affect the business. Additionally, the USA labour market remains
tight. This could result in increased labour costs and a risk of delays or inability to produce
product due to labour shortages.

Significant Shareholders: Significant shareholders may have the ability to affect changes that
result in a material adverse effect to the organisation including a change in senior
management or control of the Group or its Board of Directors.

Interest Rates and Inflation: As a result of the 2020 debt changes that served to significantly
reduce both overall debt and interest rates for the Group, a significant portion of the debt
carries variable interest rates. While overall debt has continued to decline, interest rates are
rising and may negatively impact debt costs.

Inflation in the USA and globally has risen in late 2021 and into 2022. This has resulted in
higher costs for goods, energy and labour. The ability to maintain margins in an increasing
inflationary environment is uncertain. Additionally, as prices rise, there is a risk that some

IOFINA PLC

products the Group sells may be replaced by cheaper alternatives which could result in an
adverse effect to the business.

Litigation: While the Group has no pending litigation matters, there are possibilities that
future judgements or settlements could result in an adverse effect to our business.

Going concern

In September of 2020, the Group completed the refinancing of its then outstanding debt. The size and
maturities of the Group’s debt obligations have greatly improved and its operations are generating
cash, resulting in a much improved financial health of the Group. In general, markets the Group
supplies are healthy and continue to experience strong demand for the Group’s products. The Group
has prepared forecasts and projections that indicate there are adequate resources to continue in
operational existence for the foreseeable future. The Directors consider it appropriate to continue to
adopt the going concern basis in preparing the financial statements.

On behalf of the board

Dr. Thomas M. Becker
Chief Executive Officer and President
6 May 2022

IOFINA PLC

STATEMENT IN ACCORDANCE WITH SECTION 172 OF THE COMPANIES ACT 2006

As required by section 172 of the Companies Act 2006, a director of a company must act in a way they
consider, in good faith, would most likely promote the success of the company for the benefit of its
shareholders. In doing this, the Director must have regard, amongst other matters, to the:

(a)
(b)
(c)
(d)
(e)
(f)

likely consequences of any decision in the long-term;
interests of the company’s employees;
need to foster the company’s business relationships with suppliers, customers, and others;
impact of the company’s operations on the community and the environment;
company’s reputation for high standards of business conduct; and
need to act fairly as between members of the company.

As a Board our aim is always to uphold the highest standards of governance and business conduct,
taking decisions in the interests of the long-term sustainable success of the Group, generating value
for our shareholders and contributing to wider society. We recognise that our business can only grow
and prosper over the long term by understanding the views and needs of our stakeholders. Engaging
with stakeholders is key to ensuring the Board has informed discussions and factors stakeholder
interests into decision-making.

The Directors insist on high operating standards and fiscal discipline and routinely engage with
management and employees of the Group to understand the underlying issues within the
organization. Additionally, the Board looks outside the organization at macro factors affecting the
business. The Directors consider all known facts when developing strategic decisions and long-term
plans, taking into account their likely consequences for the Group.

The Directors and management are committed to the interests and well-being of Iofina’s employees.
Iofina is committed to the highest levels of integrity and transparency possible with employees and
other stakeholders. Safety initiatives, consistent training, strong benefits packages and open dialogue
between all employees are just some of the ways the Group ensures its employees improve skill sets
and work hand-in-hand with management to improve all aspects of the Group’s performance.

Other stakeholders include customers, suppliers, lenders, industry associations, government and
regulatory agencies, media, local communities and shareholders. The Board, both individually and
together, consider that they have acted in the way they consider would be most likely to promote the
success of the Group as a whole. To do this, there is a process of dialogue with stakeholders to
understand the issues that they might have. Iofina believes that any supplier/customer relationship
must be mutually beneficial, and the Group is known for its commitment to details to its customers.
Communications with the Group’s lenders and shareholders occur on an ongoing basis and as
questions arise. The Group also communicates through media interviews and Twitter.

The Directors are committed to positive involvement in the local communities where we operate. Part
of this commitment is our program ’Iofina Gives Back’, where Iofina supports local charities by
donating time and goods. Additionally, Iofina adheres to environmental regulations at its sites and
supports sustainability practices where possible.

IOFINA PLC

Integrity is a key tenet for the Directors and the Company’s employees. The Company believes that
any partnership must benefit both parties. We strive to provide our stakeholders with timely and
informative responses and are always striving to meet or exceed customers’ needs.

The Board recognises its responsibilities under section 172 as outlined above and has acted at all times
in a way consistent with promoting the success of the Company with regard to all stakeholders.

IOFINA PLC

CORPORATE GOVERNANCE

It is the Chairman’s responsibility, working with Board colleagues, to ensure that good standards of
corporate governance are embraced throughout the Group. As a Board, we set clear expectations
concerning the Group’s culture, values and behaviours.

In September 2018, the Board adopted the Quoted Companies Alliance Corporate Governance Code
(the “QCA Code”). On our website (https://iofina.com/corporate-governance/) we set out how we
seek to comply with the 10 principles of the QCA Code. The following sections of the Corporate
Governance Statement explain how the QCA Code is applied by the Company.

The Board comprises six Directors: the Non-Executive Chairman, two full time Executive Directors and
three Non-Executive Directors (each of whom are considered by the Board to be independent),
reflecting a blend of different experiences and backgrounds. The function of the Chairman is to
supervise and manage the Board and to ensure its effective control of the business. The Board believes
that its composition brings a desirable range of skills and experience given the Group’s challenges and
opportunities as a publicly quoted company, while at the same time ensuring that no individual (or
group of individuals) can dominate the Board’s decision-making.

The Board meets regularly to review, formulate and approve the Group’s strategy, budgets, corporate
actions and oversee the Group’s progress towards its goals. The Board has established the following
committees to fulfil specific functions, each with formally delegated duties and responsibilities (details
of which can be found on our website; see: http://www.iofina.com/about/committees): the Audit
Committee and the Remuneration Committee. These committees meet on a regular basis and at least
two times a year. The Board has elected not to constitute a dedicated nomination committee, instead
retaining such decision making with the Board as a whole. This approach is considered appropriate to
enable all Board members to take an active involvement in the consideration of Board candidates and
to support the Chair in matters of nomination and succession.

From time to time, separate committees may also be set up by the Board to consider specific issues
when the need arises.

IOFINA PLC

DIRECTORS' REPORT

The Directors present their report and financial statements for the Group for the year ended 31
December 2021.

Strategic report

Included in the Strategic Report on pages 14 to 23 is the review of the business and principal risks and
uncertainties.

Post balance sheet events

Post balance sheet events are set out in note 30.

Directors’ responsibilities for the preparation of the financial statements

The Directors are responsible for preparing the Strategic Report and the Directors’ Report and the
financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Group and Company financial statements for each
financial year. The Directors are required by the AIM Rules for Companies (as published by the London
Stock Exchange) to prepare Group financial statements in accordance with UK adopted International
Financial Reporting Standards ("IFRS"), and have elected under company law to prepare the Company
financial statements in accordance with IFRS.

The financial statements are required by law and UK adopted IFRS to present fairly the financial
position of the Group and the Company and the financial performance of the Group. The Companies
Act 2006 provides, in relation to such financial statements, that references in the relevant part of that
Act to financial statements giving a true and fair view are references to their achieving a fair
presentation.

Under company law the directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group and the Company and of the
profit or loss of the Group for that period.

In preparing the Group and Company financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

a.
b. make judgements and accounting estimates that are reasonable and prudent;
c.
d.

state whether they have been prepared in accordance with UK adopted IFRS; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the Group and the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and
explain the Group’s and the Company’s transactions and disclose with reasonable accuracy at any time
the financial position of the Group and the Company and enable them to ensure that the financial
statements comply with the Companies Act 2006. They are also responsible for safeguarding the
assets of the Group and the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

IOFINA PLC

The directors are responsible for the maintenance and integrity of the corporate and financial
information included on the Iofina plc website.

Legislation in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.

Results and dividends

The results for the year are set out in the consolidated statement of comprehensive income and
detailed in the Financial Review.

The directors do not recommend payment of a dividend.

Financial instruments and risk management

Note 14 details the risk factors for the Group and how these risks are managed, including the degree
to which it is appropriate to use financial instruments to mitigate risks.

Directors

The directors who served during the year and subsequently were as follows:

Lance J. Baller, Non-Executive Chairman
Dr. William D. Bellamy, Non-Executive Director
J. Frank Mermoud, Non-Executive Director
Mary C. Fallin-Christensen, Non-Executive Director
Dr. Thomas M. Becker, Chief Executive Officer and President
Malcolm T. Lewin, Chief Financial Officer

Statement as to disclosure of information to the auditor

The directors who were in office on the date of approval of these financial statements have confirmed
that, as far as they are aware, there is no relevant audit information of which the auditor is unaware.
Each of the directors has confirmed that they have taken all the steps that they ought to have taken
as directors in order to make themselves aware of any relevant audit information and to establish that
it has been communicated to the auditor.

Auditor

UHY Hacker Young were appointed as auditors to the Company and in accordance with Section 485
of the Companies Act 2006 a resolution proposing that they be reappointed will be put to the next
Annual General Meeting.

On behalf of the Board

Dr. Thomas M. Becker
Chief Executive Officer and President
6 May 2022

IOFINA PLC

CORPORATE GOVERNANCE STATEMENT

The Board ensures that the Group is managed for the long-term benefit of all shareholders with
corporate governance being an essential element of this and has adopted the Quoted Companies
Alliance (“QCA”) Corporate Governance Code which is considered appropriate for an AIM quoted
company. The Board is responsible for the overall leadership, strategy, development and control of
the Group in order to achieve its strategic objectives.

The Group is led and controlled by the Board which currently consists of two Executive Directors and
four Non-Executive Directors. Board meetings are held on a regular basis and no significant decision
is made other than by the Directors. All Directors participate in the key areas of decision making.

Business model, strategy and approach to risk

The Group focuses on the exploration and production of iodine and halogen-based specialty chemical
derivatives. We identify, develop, build, own and operate iodine extraction plants, currently focused
in North America, based on Iofina’s Wellhead Extraction Technology® (WET®) IOsorb® technology. The
Group has complete vertical integration from the production of iodine in the field to the manufacture
of the chemical end-products derived from iodine to the consumer, and the recycling of iodine using
iodinated side-streams from waste chemical processes. We use patented or proprietary processes
throughout all business lines. Together these allow us to be the Technology Leaders in Iodine®. The
Group’s strategy is to continue to focus on the exploration and production of iodine and iodine
specialty chemical derivatives, delivering growth throughout our operations. Growth is intended to be
achieved with the continued upgrading and expanding of our plants, which in turn will boost the level
of iodine production.

All the Group’s activities involve an ongoing assessment of risks, and the Group seeks to mitigate such
risks where possible. The Board has undertaken an assessment of the principal risks and uncertainties
facing the Group, including those that would threaten its business model, future performance,
solvency and liquidity. Further, the Board has considered the longer-term viability of the Group,
including factors such as the prospects of the Group and its ability to continue in operation for the
foreseeable future. The Board considers that the disclosures outlined in the Strategic Report on pages
14 to 23 are appropriate. The Board considers that these disclosures provide the information
necessary for shareholders and other stakeholders to assess the Group’s future viability and potential
requirements for further capital to fund its operations.

Having carried out a review of the level of risks that the Group is taking in pursuit of its strategy, the
Board is satisfied that the level of retained risk is appropriate and commensurate with the financial
rewards that should result from achievement of its strategy.

Board of Directors

As of the date of this Report the Board comprises six Directors in total: the Non-Executive Chairman,
two Executive Directors (being the Chief Executive Officer (“CEO”) and the Chief Financial Officer
(“CFO”)) and three Non-Executive Directors (each of whom are considered by the Board to be
independent), reflecting a blend of different experiences and backgrounds. The skills and experience
of the Board are set out in their biographical details on pages 12 and 13. The experience and

IOFINA PLC

knowledge of each of the Directors give them the ability to challenge strategy constructively and to
scrutinize performance.

The Board is responsible to the shareholders for the proper management of the Group. The Board and
the Group’s management team are responsible for reviewing and evaluating risk and the Executive
Directors meet at least monthly to review ongoing trading performance, discuss budgets and
forecasts, and new risks associated with ongoing trading. The full Board typically meets quarterly to
set the overall direction and strategy of the Group, to review operational and financial performance,
and to advise on management appointments (if necessary). The Board has also convened, when
necessary, during the year to review the strategy and activities of the business. All key operational and
investment decisions are subject to Board approval. The Company Secretary is responsible for
ensuring that Board procedures are followed, and applicable rules and regulations are complied with.
The number of meetings attended by each Director can be found on page 32.

There is a clear separation of the roles of CEO and Non-Executive Chairman. The Chairman is
responsible for overseeing the running of the Board, ensuring that no individual or group dominates
the Board’s decision making and ensuring the Non-Executive Directors are properly briefed on
matters. The CEO has the responsibility for implementing the strategy of the Board and managing the
day-to-day business activities of the Group.

Time commitment

On joining the Board, Non-Executive Directors receive a formal appointment letter, which identifies
the terms and conditions of their appointment and, in particular, the time commitment expected of
them. A potential Director candidate (whether an Executive Director or Non-Executive Director) is
required to disclose all significant outside commitments prior to their appointment. The Board is
satisfied that both the Chairman and the other Non-Executive Directors are able to devote sufficient
time to the Group’s business.

Independence of Directors

The Directors acknowledge the importance of the principles of the QCA Code which recommends that
a company should have at least two independent Non-Executive Directors. The Board considers it has
sufficient independence on the Board and that all the Non-Executive Directors are of sufficient
competence and calibre to add strength and objectivity to the Board, and bring considerable
experience in industry, operational and financial development of chemical products and companies.
Specifically, the Board has considered and determined that since the date of their respective
appointments William Bellamy, J. Frank Mermoud and Mary Fallin-Christensen are independent in
character and judgement, specifically that they:

• have not been employees of the Company within the last five years;

• do not have a material business relationship with the Group;

• have no close family ties with any of the Group’s advisers, Directors or senior employees;

• do not hold cross-directorships or have significant links with other Directors through

involvement in other companies or bodies; and

IOFINA PLC

• do not represent any shareholder.

The Company Secretary maintains a register of outside interests and any potential conflicts of interest
are reported to the Board.

If they so wish, the Non-Executive Directors have opportunities to meet without Executive Directors
being present (including after Board and Committee meetings). Because the Board is spread out
geographically, the majority of communications between Directors is conducted by video. However,
the Board does convene in person at least once a year, and this presents an opportunity (before, after
and between management and operational meetings) for the Non-Executive Directors to meet in
person without the Executive Directors being present.

Professional development

Throughout their period in office, the Directors are continually updated on the Group’s business, the
competitive and regulatory environments in which it operates, corporate social responsibility matters
and other changes affecting the Group and the industry it operates in as whole. The updates are
usually provided by way of written briefings and meetings with senior management. Directors are also
advised on appointment of their legal and other duties and obligations as a director of an AIM quoted
company both in writing and in communications (being face-to-face meetings whenever possible) with
the Company’s Nominated Adviser. The Directors also have recourse to the Company Secretary, a
qualified and practising solicitor, who is a recognised practitioner within the AIM community.

All the Directors are subject to election by shareholders at the first Annual General Meeting of the
Company (“AGM”) after their appointment to the Board. Each Director will continue to seek re-
election at least once every three years.

Board Committees

There are two committees – the Audit Committee and the Remuneration Committee. Their full terms
of reference are published on the Company’s website at https://iofina.com/committees/.

Audit Committee

During the financial period under review, the members of the Audit Committee were Lance Baller, Dr
William Bellamy, J. Frank Mermoud and Mary Fallin-Christensen. Mr Baller is the Chairman of the Audit
Committee. The responsibilities of the committee include the following:

• ensuring that the financial performance of the Group is properly monitored, controlled and

reported on;

•

reviewing accounting policies, accounting treatment and disclosures in the financial reports;

• meeting the auditors and reviewing reports from the auditors relating to accounts and internal

control systems; and

• overseeing

the Group’s

including making
recommendations to the Board as to the appointment or re-appointment of the external
auditors, reviewing their terms of engagement, and monitoring the external auditors’
independence, objectivity and effectiveness.

relationship with external auditors,

IOFINA PLC

During the year, the committee met to review audit planning and findings. In addition, it reviewed the
appointment of auditors, and agreed unanimously to re-elect UHY Hacker Young LLP.

Remuneration Committee

During the financial period under review, the members of the Remuneration Committee were Dr
William Bellamy, Lance Baller and J. Frank Mermoud. Dr Bellamy is the Chairman of the Remuneration
Committee. The responsibilities of the committee include the following:

•

reviewing the performance of the Executive Directors and setting the scale and structure of
their remuneration with due regard to the interest of shareholders;

• overseeing the evaluation of the Executive Directors; and

• determining the vesting of awards, including the setting of any performance criteria in relation

to the exercise of share options, granted under the Company’s share option plan.

During the year, the committee met to discuss remuneration and bonuses for the Executive Directors,
and share option awards for the Directors and senior management.

The Directors’ remuneration information is presented on page 35.

Attendance at meetings

The Board meets regularly, typically on a quarterly basis, together with further meetings as required.
The Audit and Remuneration Committees meet as required, and try to hold a minimum of two
meetings each year.

The Directors attended the following meetings during the year:

Lance Baller

Dr Thomas Becker

Malcolm Lewin

Dr William Bellamy

J. Frank Mermoud

Mary Fallin-Christensen

Board
3

Audit

Remuneration
2

Risk management and internal control

The Board is responsible for the systems of internal controls and for reviewing their effectiveness. The
internal controls are designed to manage rather than eliminate risk and provide reasonable but not
absolute assurance against material misstatement or loss. The Board reviews the effectiveness of
these systems annually by considering the risks potentially affecting the Group.

Iofina employs strong financial and management controls within the business. Examples of control
procedures include:

• an annual budget set by the Board with regular review of progress;

IOFINA PLC

•

regular meetings of Executive Directors and senior management to review management
information and follow up on operational issues or investigate any exceptional circumstances;

clear levels of authority, delegation and management structure; and

• Board review and approval of significant contracts and overall project spend.

The Company’s system of internal control is designed to safeguard the Company’s assets and to ensure
the reliability of information used within the business. The system of controls manages appropriately,
rather than eliminates, the risk of failure to achieve business objectives and provides reasonable, but
not absolute, assurance against material misstatement or loss. The Group does not consider it
necessary to have an internal audit function due to the small size of the administrative function.
Instead, there is a detailed monthly review and authorisation of transactions by the CFO and the CEO.

The independent auditors do not perform a comprehensive review of internal control procedures, but
do report to the Audit Committee on the outcomes of its annual audit process. The Board confirms
that the effectiveness of the system of internal control, covering all material controls including
financial, operational and compliance controls and risk management systems, has been reviewed
during the year under review and up to the date of approval of the Annual Report.

The Group maintains appropriate insurance cover in respect of actions taken against the Directors
because of their roles, as well as against material loss or claims against the Group. The insured values
and type of cover are comprehensively reviewed on a periodic basis.

Board effectiveness and performance evaluation

The Board is mindful that it needs to continually monitor and identify ways in which it might improve
its performance and recognises that board evaluation is useful for enhancing a board’s effectiveness.

The individual contributions of each of the members of the Board are regularly assessed to ensure
that: (i) their contribution is relevant and effective; (ii) that they are committed; and (iii) where
relevant, they have maintained their independence. The Board intends to review the performance of
the team as a unit to ensure that the members of the Board collectively function in an efficient and
productive manner. One-third of the Directors must stand for re-election by shareholders annually in
rotation and all Directors must stand for re-election at least once every three years.

The Company considers that the Board and its individual members continue to perform effectively,
that the Chairman performs his role appropriately and that the process for evaluation of his
performance has been conducted in a professional and rigorous manner.

Corporate Social Responsibility
The Board recognises the growing awareness of social, environmental and ethical matters and it
endeavours to take into account the interest of the Group’s stakeholders, including its investors,
employees, suppliers and business partners, when operating the business.

Employment

The Group endeavours to appoint employees with appropriate skills, knowledge and experience for
the roles they undertake and thereafter to develop and incentivise staff. The Board recognises its legal

IOFINA PLC

responsibility to ensure the wellbeing, safety and welfare of its employees and maintain a safe and
healthy working environment for them and for its visitors.

Investor Relations

The Board recognises the importance of communication with the Company’s shareholders to ensure
that its strategy and performance is understood and that it remains accountable to shareholders. Our
website has a section dedicated to investor matters and provides useful information for the
Company’s shareholders (see: http://iofina.com/investors/). The Board as a whole is responsible for
ensuring that a satisfactory dialogue with shareholders takes place, while the Chairman and the CEO
ensure that the views of the shareholders are communicated to the Board as a whole. The Board
ensures that the Group’s strategic plans have been carefully reviewed in terms of their ability to
deliver long-term shareholder value. Fully audited Annual Reports are published, and Interim Results
notified via Regulatory News Service announcements. All financial reports and statements are
available on the Company’s website (see: http://iofina.com/investors/financial-results).

There is an opportunity at the Annual General Meeting for individual shareholders to question the
Chairman and the Executive Directors. Notice of the meeting is sent to shareholders at least 21 clear
days before the meeting. Shareholders are given the opportunity to vote on each separate issue. The
Company counts all proxy votes and indicates the level of proxies lodged on each resolution, after it
has been dealt with by a show of hands.

Directors’ remuneration

Remuneration provided to each Director was as follows:

Lance Baller

Dr. Thomas Becker

Malcolm Lewin

William Bellamy

Frank Mermoud

Mary Fallin-Christensen

Salary

109,620

260,000

191,208

30,000

2021
Bonus

Total $

109,620

35,000

295,000

27,315

218,523

30,000

Salary

109,620

236,400

160,000

30,000

22,500
$588,520

2020
Bonus

50,000

40,000

$90,000

Total $

109,620

286,400

200,000

30,000

22,500

$678,520

Total
No pension contributions were paid on behalf of the directors in 2020 or 2021.

$62,315 $713,143

$650,828

Directors’ and officers’ insurance is in place on a Group-wide basis.

The interests of the Directors in office as at 31 December 2021 in the shares of the Company at the
end of the financial year and the beginning of the financial year or date of appointment, if later, were
as follows:

L J Baller
Dr. T M Becker
W D Bellamy
M T Lewin
J F Mermoud

31 December 2021
5,175,000
124,430
46,875
93,750
23,750

1 January 2021
4,812,500
93,750
46,875
93,750
23,750

IOFINA PLC

All outstanding options over shares granted to Directors up to 31 December 2021 are set out in the
table below. No Directors exercised options in 2021.

Name

Dr T Becker

M Lewin

L Baller

2018
Options
granted

660,000

330,000

220,000

Dr W Bellamy

110,000

JF Mermoud
M Fallin-
Christensen

Exercise
price per
2018
Option

16.2p

Lapse
date

2019
Options
granted

13/6/28

242,000

13/6/28

165,000

13/6/28

165,000

13/6/28

82,500

Exercise
price per
2019
Option

Lapse
date

2020
Options
granted

Exercise
price per
2020
Option

Lapse
date

21.3p

24/7/29

266,200

12.5p 15/12/30

24/7/29

181,500

12.5p 15/12/30

24/7/29

165,000

12.5p 15/12/30

24/7/29

82,500

12.5p 15/12/30

24/7/29

82,500

12.5p 15/12/30

82,500

12.5p 15/12/30

On 9 March 2022 a further 860,200 share options were granted to directors, with an exercise price of
17.6p.

On behalf of the Board

Dr. Thomas M. Becker
Chief Executive Officer and President
6 May 2022

IOFINA PLC

Independent auditor’s report to the members of Iofina PLC

Opinion
We have audited the financial statements of Iofina PLC (the ‘Parent Company’) and its subsidiaries
(the ‘Group’) for the year ended 31 December 2021 which comprise the Consolidated Statement of
Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in
Shareholders’ Equity, the Consolidated Cash Flow Statement, the Company Balance Sheet, the
Company Statement of Changes in Shareholders’ Equity and notes to the financial statements,
including the significant accounting policies. The financial reporting framework that has been applied
in their preparation is applicable law and UK-adopted International Financial Reporting Standards
(IFRSs).

In our opinion:

•

the financial statements give a true and fair view of the state of the Group’s and of the Parent
Company’s affairs as at 31 December 2021 and of the Group’s profit for the year then ended;
the Group and Parent Company financial statements have been properly prepared in
accordance with UK adopted IFRSs; and
the Group financial statements have been prepared in accordance with the requirements of
the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent
of the Group and Parent Company in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to
listed entities, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director’s use of the going concern
basis of accounting in the preparation of the financial statement is appropriate.

Our evaluation of the director’s assessment of the entity’s ability to continue to adopt the going
concern basis of accounting included:

prepared

Evaluation of management assessment
Management
detailed
have
consolidated cash flow forecasts incorporating
all entities within the Group covering the period
to 31 December 2023. These are based on their
expectation of future costs, including budgeted
operating and capital expenditure on all of the
licence areas and
group’s operating plants

Key observations
The cash flow forecast demonstrates that the
Group will have a cash flow surplus throughout
the forecast period. These incorporated all
budgeted and committed expenditure, the
schedule of repayment for the term loan and
movements in working capital.

forecast, we
In reviewing the cash flow
separately sensitised the commodity price to
determine the maximum the price of iodine
could fall in order for the cash to be depleted to
Nil by the end of the forecast period. Overall, the
price of Iodine would need to decrease by 27%
in 2022 and 31% in 2023 in order for EBITDA to
be nil for both years of the forecast. Given the
price of Iodine has been increasing since 2018,
this is not considered likely.

The likelihood of this fall in Iodine prices lasting
for the entire forecast period is considered by
in such
the Directors to be remote and
circumstances consider sufficient mitigating
actions to be available to continue as a going
concern.

IOFINA PLC

expectations of future iodine production levels
and commodity price.

Our review included:

• Assessing the transparency, completeness
and accuracy of the matters covered in the
going concern disclosure by evaluating
management's cash flow projections for the
forecast period and the underlying
assumptions;

• Review of the cash flow forecasts, the

methodology behind these and ensuring
they are arithmetically correct and
challenging the assumptions by discussing
them with management and corroborating
them with our historical knowledge;
• Obtaining post year end management

information and comparing these to budget
to assess whether budgeting is reasonable
and results are in line with expectations;
and

• We completed a sensitivity analysis on the

budgets provided to assess the change in
revenue and iodine prices that would need
to occur to push the Group into a cash
negative position.

Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the entity’s ability
to continue as a going concern for a period of at least twelve months from when the financial
statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.

Our approach to the audit

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we looked at where the directors made
subjective judgements, for example in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account an understanding of the structure

IOFINA PLC

of the Company and the Group, their activities, the accounting processes and controls, and the
industry in which they operate. Our planned audit testing was directed accordingly and was focused
on areas where we assessed there to be the highest risk of material misstatement.

Our Group audit scope includes all of the group companies, for which we have instructed and reviewed
component auditor procedures and results in relation the existence and completeness of stock. At the
Parent Company level, we also tested the consolidation procedures. The audit team communicated
regularly throughout the audit with the CFO in order to ensure we had a good knowledge of the
business of the Group. During the audit we reassessed and re-evaluated audit risks and tailored our
approach accordingly.

The audit testing included substantive testing on significant transactions, balances and disclosures,
the extent of which was based on various factors such as our overall assessment of the control
environment, the effectiveness of controls and the management of specific risk.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant findings, including any significant deficiencies in internal
control that we identify during the audit.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) we identified, including those which
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters

Revenue Recognition

Under IFRS 15, the entity shall recognise
revenue to depict the transfer of goods or
services to customers in an amount that reflects
the consideration to which the entity expects to
be entitled in exchange for those goods or
services.

The revenue stream for the group is derived
from sale of iodine derivatives, iodine chemicals
and ancillary products, all of which are

How our audit addressed the key audit
matters

Our audit work included, but was not restricted
to:

• Documenting our understanding of
management’s process for evaluating
revenue recognition.

• We

tested

the completeness of
revenue by selecting a sample of items
from outside of the Group’s accounting
system and tracing them to inclusion
system and
into
revenue
agreeing
recognition.

the appropriate

the accounting

IOFINA PLC

fundamental to the financial statements and a
systematic error in the calculation could lead to
a material error.

We therefore identified the risk over the cut off
of revenue as a significant risk and also
considered completeness and occurrence
assertions.

• We audited the occurrence of revenue
by consideration of our testing in trade
receivables in conjunction with using
data analytics software. This was used
to assist in identifying the correlation
between trade receivables and revenue
journals being made and subsequently
the receipt of cash for those trade
receivables and therefore whether any
subsequent
trade
reversal
receivables should have impacted the
recognition of the revenue.

• We considered the appropriateness of
revenue cut-off by testing pre and post
year-end revenue items on a sample
basis to assess whether the revenue
items were accounted for in the correct
period.

• Whilst performing our audit testing we
assessed whether the treatment of
revenue was in accordance with the
correct recognition criteria as per the
Group accounting policy.

• Assessing whether
policy

the Company’s
accounting
revenue
recognition are in accordance with the
requirements of IFRS 15.

for

The Group’s accounting policy on revenue
recognition is shown in Principal Accounting
Policies
financial
statements and related disclosures are included
in note 1d.

consolidated

the

for

and,

after

Key observations
As a result of the audit procedures we
performed
considering
management’s disclosures of the judgements
applied by them, we have concluded that
revenue recognition is materially complete,
accurate, has occurred and been recognised on
an appropriate basis.

Valuation and Impairment review of property
plant and equipment

Our audit work included, but was not restricted
to:

• We

reviewed

Management’s
assessment of forecasted cash flows
and challenged significant movements
in forecasted cash flows compared to
historic performance.

• We

reviewed

Management’s
forecasted cash flows that feed into the
flow model and
discounted cash
challenged
significant assumptions
with reference to historic results,
market
trends, appropriateness of
discount rates and future expectations
of commodity prices and sales growth.
challenged management and
gained an understanding of what is
considered a cash generating unit.
• We performed a downside sensitivity
analysis and held discussions with
Management to assess the likelihood of
certain circumstances crystallising.

• We

The Group’s accounting policy on Impairment is
shown in Principal Accounting Policies for the
consolidated financial statements and related
disclosures are included in note 1m.

Key observations
As a result of the audit procedures we
performed and, after considering
management’s disclosures of the judgements
applied by them, we have concluded that no
impairments are required.

We have confirmed the estimates and
judgements utilised within the models applied
in relation to the impairment of property, plant
and equipment are within acceptable ranges.

IOFINA PLC

Under International Accounting Standard 36
‘Impairment of Assets’ (IAS 36), companies are
is any
required to assess whether there
indication that an asset may be impaired at
each reporting date.

Property, plant and equipment are a significant
balance in the financial statements with a
combined net book value of $19.1m (2020 -
$18.8m). The balance is primarily comprised of
the IOSorb plants, equipment and machinery
and exploration and evaluation assets.

The estimated recoverable amount of these
balances is subjective due to the inherent
forecasting and
uncertainty
probability of the related future cash flows.

involved

At each reporting date, the Group considers any
indication of impairment to the carrying value
of its assets. The assessment is based on
expected future cash flows on the IOSorb
plants.

required

The directors are
to conduct
impairment tests where there is an indication of
impairment of the asset. The assessment was
based on the future cash flows of each site
using a discounted cash flow model (being the
‘value in use’). The value in use was then
compared to the carrying value of fixed assets
for that site.

judgement

Significant management
and
estimation uncertainty is involved in this area,
where the primary inputs are:
• Estimating cash flow forecasts;
• Selecting appropriate assumptions such as
growth rate and discount rate.

We therefore
identified the risk over the
valuation of property plant and equipment as a
significant risk.

IOFINA PLC

Valuation of Inventory
Inventory primarily consists of
iodine and
iodine derivatives. Inventory should be held at
the lower of cost and net realisable value.

The net realisable value is the estimated selling
price in the ordinary course of business less any
applicable selling expenses. As at 31 December
2021, the inventory is valued at $6.3m (2020 -
$9.7m). There is a risk that the carrying value in
is higher than the
the Group accounts
therefore
recoverable amount and
is the
materially misstated. Further, there
the
added
measurement of the costs of conversion of the
inventory and the estimates and judgements
around this.

the complexity of

risk of

We therefore
identified the valuation of
inventory as a key audit matter, which was one
of the most significant assessed risks of material
misstatement.

Our audit work included, but was not restricted
to:

• We engaged component auditors to
attend a stocktake at two of the
Group’s plant locations at the year end,
where they observed an
inventory
count and performed sample testing on
inventory held.

• We discussed, understood and tested
the Group’s process for calculating the
cost of the finished goods based on the
absorption cost including challenging
the robustness of the key assumptions
with management to ensure they are
appropriate.

• A sample of inventory items were
tested to ensure the product was held
at the lower of cost and Net Realisable
Value.

The Group’s accounting policy on Inventories is
shown in Principal Accounting Policies for the
consolidated financial statements and related
disclosures are included in note 1o.

and,

Key observations
As a result of the audit procedures we
performed
considering
management’s disclosures of the judgements
applied by them, we have concluded that the
valuation of inventory is materially accurate
and recognised on an appropriate basis.

after

We have confirmed the estimates and
judgements utilised within the models applied
in relation to the valuation of inventory are
within acceptable ranges.

Our audit work included, but was not restricted
to:

• We utilised discounted cash

flow
forecasts to form an expectation of the
recoverable amount, and in addition

and

Impairment

review of
Valuation
investments in subsidiaries and intercompany
balances

Due to the material size of the investments in,
and loans to, the subsidiaries the directors

IOFINA PLC

should critically consider if any indicators of
impairment exist in relation to the balances.

considered the current performance of
the subsidiary entities.

The estimated recoverable amount of these
balances is subjective due to the inherent
uncertainty
the
profitability of the subsidiaries.

forecasting

involved

Where indicators of impairment have been
identified a robust review of the investments
held by the Parent Company and any amounts
due from subsidiaries to the Parent Company
should be undertaken by the directors to
confirm the value in use of these amounts and
that there are no indications, or requirements
for, impairments of the amounts.

judgement

and
Significant management
estimation uncertainty is involved in this area,
where the primary inputs are:
• Estimating cash flow forecasts;
• Selecting appropriate assumptions such as
growth rate and discount rate.

identified the valuation of
We therefore
investments in subsidiaries and intercompany
balances as a key audit matter, which was one
of the most significant assessed risks of material
misstatement.

• We performed a sensitivity analysis on
the key inputs such as a decline in
iodine prices and sales growth and
concluded that even with the adverse
movements mentioned above in the
Group’s key assumptions, no potential
impairment was identified.

• We obtained and

reviewed

the
director’s assessment of impairment
with regards to investment and loans
due from its subsidiaries in support of
the valuation and assessed whether
this was in line with IAS 36.

• We

reviewed

the 2021

forecasts
against actual results to determine the
Directors historic forecasting accuracy.

The Group’s accounting policy on impairment is
shown in Principal Accounting Policies for the
consolidated financial statements and related
disclosures are included in note 1m.

Key observations
As a result of the audit procedures we
performed
considering
management’s disclosures of the judgements
applied by them, we have concluded that no
impairments are required.

after

and,

We have confirmed the estimates and
judgements utilised within the models applied
in relation to the valuation and impairment of
investments in subsidiaries and intercompany
balances are within acceptable ranges.

Our application of materiality
The scope and focus of our audit was influenced by our assessment and application of materiality.
We apply the concept of materiality both in planning and performing our audit, and in evaluating the
effect of misstatements on our audit and on the financial statements.

IOFINA PLC

We define financial statement materiality as the magnitude by which misstatements, including
omissions, could reasonably be expected to influence the economic decisions taken on the basis of
the financial statements by reasonable users.

In order to reduce to an appropriately low level the probability that any misstatements exceed
materiality, we use a lower materiality level, performance materiality, to determine the extent of
testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as
immaterial as we also take account of the nature of identified misstatements, and the particular
circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Materiality Measure
Overall materiality

Group
We determined materiality for the
financial statements as a whole to
be $389,000 (2020: $299,000). The
increase being a result of the
increase in revenue of the Group

Parent
We determined materiality for the
financial statements as a whole to
be $311,200 (2020: $239,000).

How we determine it

Based on the main key indicator,
being 1% of revenue for the Group.

As the Parent is a holding company,
materiality was initially based on
1% of gross assets, however, this
exceeded
level
therefore this was capped at 80%
of Group materiality.

Group

the

Rationale for
benchmarks applied

We believe 1% of revenue to be the most appropriate benchmark due to
the size and nature of the Company and Group. This is also considered a
key performance indicator for stakeholders.

Performance
materiality

Specific materiality

Reporting threshold

$233,400 (2020: $179,400)

On the basis of our risk assessment, together with our assessment of the
Group and Company’s control environment, our judgement is that
performance materiality for the financial statements should be 75% of
materiality for the Group and Company:
$291,750 (2020: $224,250)
We also determine a lower level of specific materiality for certain areas
such as directors’ remuneration and related party transactions of
$1,000.
We agreed with the Audit Committee that we would report to them all
misstatements over 5% of Group and Company materiality identified
during the audit, as well as differences below that threshold that, in our
view, warrant reporting on qualitative grounds. We also report to the
Audit Committee on disclosure matters that we identified when
assessing the overall presentation of the financial statements.
$15,560 (2020: $11,950)
$19,450 (2020: $14,950)

IOFINA PLC

Other information
The other information comprises the information included in the annual report other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other
information contained within the annual report. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise explicitly stated in our report, we do
not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves.

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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:

•

the information given in the strategic report and the directors’ report for the financial year for
which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with
applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and Parent Company and its
environment obtained in the course of the audit, we have not identified material misstatements in
the strategic report or the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the Parent Company, or returns adequate

•

for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records
and returns; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the statement of directors’ responsibilities set out on page 27, the directors
are responsible for the preparation of the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.

IOFINA PLC

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

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are 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 ISAs (UK) 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 these
financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed
below:

Based on our understanding of the Group and the industry in which it operates, we identified that the
principal risks of non-compliance with laws and regulations related to the use of regulated chemicals,
tax legislation, employment and health and safety regulations, anti-bribery, corruption and fraud and
we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the
preparation of the financial statements such as the Companies Act 2006 and the Quoted Companies
Alliance Corporate Governance Code (“QCA Code”). We evaluated management’s incentives and
opportunities for fraudulent manipulation of the financial statements (including the risk of override of
controls), and determined that the principal risks were related to inflated revenue and profit.

Audit procedures performed included: review of the financial statement disclosures to underlying
supporting documentation, review of regulatory inspections, review of correspondence with legal
advisors, in so far as they related to the financial statements, and testing of journals and evaluating
whether there was evidence of bias by the Directors that represented a risk of material misstatement
due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-
compliance with laws and regulations is from the events and transactions reflected in the financial
statements, the less likely we would become aware of it. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or
through collusion.

IOFINA PLC

A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.

Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance with part 3 of
Chapter 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state
to the Parent Company’s members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Parent Company and the Parent Company’s members as a
body, for our audit work, for this report, or for the opinions we have formed.

Daniel Hutson
(Senior Statutory Auditor)

For and on behalf of UHY Hacker Young
Chartered Accountants and Statutory Auditor

UHY Hacker Young
4 Thomas More Square
London E1W 1YW

6 May 2022

IOFINA PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended
31 December

Note

2021
$’000

Year ended
31 December
2020
$,000

Revenue
Cost of sales

Gross profit

Administrative expenses
EBITDA – earnings before interest, tax, depreciation
and amortisation

Depreciation and amortisation

Operating profit

Paycheck Protection Program loans forgiven
Fair value loss on investments in equity instruments
designated as fair value through profit and loss
Profit before finance expense

Finance income
Interest payable
Interest swap derivative liability
Loan arrangement fees

Profit before taxation

Taxation
Profit for the year attributable to owners of the
parent

Earnings per share attributable to owners of the
parent:
- Basic
- Diluted

3
4

7
6
20
6

9
9

All activities are classed as continuing.
The accompanying notes form part of these financial statements.

39,039
(28,307)

10,732

29,688
(21,283)

8,405

(3,789)

(3,686)

6,943

4,719

(1,731)

(1,793)

5,212

1,090

(900)
5,402

17
(368)
69
–

5,120

4,066

2,926

–

–
2,926

15
(1,114)
(69)
(480)

1,278

–

$9,186

$1,278

$0.048
$0.048

$0.007
$0.007

IOFINA PLC

CONSOLIDATED BALANCE SHEET

Assets
Non-current assets
Intangible assets
Goodwill
Property, plant and equipment
Deferred tax
Total non-current assets

Current assets
Inventories
Trade and other receivables
Investments
Cash and cash equivalents
Total current assets
Total assets

Equity and liabilities
Current liabilities
Trade and other payables
Term loan – due within one year
Government subsidies
Lease liabilities
Total current liabilities

Non-current liabilities
Term loan – due after one year
Revolving loan facility
Term loan – interest swap liability
Lease liabilities
Total non-current liabilities
Total liabilities

Equity attributable to owners of the parent
Issued share capital
Share premium
Share-based payment reserve
Retained losses
Foreign currency reserve
Total equity
Total equity and liabilities

31 December
2021
$’000

31 December
2020
$’000

Note

10
11
12
25

13
15
16
17

18
20
21
19

20
20
20
19

463
3,087
19,113
4,066
26,729

6,296
6,158
–
5,262
17,716
$44,445

5,802
1,429
–
58
7,289

6,785
–
–
410
7,195
$14,484

3,107
60,687
2,007
(29,896)
(5,944)
$29,961
$44,445

643
3,087
18,782
–
22,512

9,656
3,285
900
3,481
17,322
$39,834

5,473
1,429
1,090
141
8,133

8,214
2,718
69
45
11,046
$19,179

3,107
60,687
2,136
(39,331)
(5,944)
$20,655
$39,834

The financial statements on pages 47 to 82 were approved and authorised for issue by the Board and were
signed on its behalf on 6 May 2022.

Dr. Thomas M. Becker - Chief Executive Officer and President
The accompanying notes form part of these financial statements. Company number 05393357

IOFINA PLC

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Attributable to owners of the parent

Share
capital

Share
premium

$’000

Share-
based
payment
reserve
$’000

Retained
losses

$’000

Foreign
currency
reserve
$’000

Total
equity

$’000

Balance at 1 January 2020

$3,107

$60,687

$1,988

$(40,609)

$(5,944)

$19,229

Transactions with owners
Share-based expense
Total transactions with owners

Profit for the year attributable to
owners of the parent
Total comprehensive income
attributable to owners of the
parent

–
–

–

–
–

–

148
148

–

–
–

1,278

–
–

–

148
148

1,278

Balance at 31 December 2020

$3,107

$60,687

$2,136

$(39,331)

$(5,944)

$20,655

Transactions with owners
Share-based expense
Share options lapsed and
forfeited

Total transactions with owners

Profit for the year attributable to
owners of the parent
Total comprehensive income
attributable to owners of the
parent

–

–
–

–

120

(249)

(129)

–

249
249

9,186

–

–
–

–

120

–

120

9,186

Balance at 31 December 2021

$3,107

$60,687

$2,007

$(29,896)

$(5,944)

$29,961

IOFINA PLC

CONSOLIDATED CASH FLOW STATEMENT

Cash flows from operating activities
Profit before taxation
Adjustments for:
Depreciation
Amortisation
Share-based payments
Paycheck Protection Program loans forgiven
Impairment of investment
Finance expense
Finance income

Operating cash inflow before changes
in working capital

Changes in working capital

(Increase)/decrease in trade and other receivables
Decrease/(increase) in inventories
Increase/(decrease) in trade and other payables

Net cash inflow from operating activities

Cash flows from investing activities
Interest received
Acquisition of property, plant and equipment
Asset disposal proceeds
Net cash outflow from investing activities

Cash flows from financing activities
Government loans received
Term loan notes repaid
Term loan drawn
Term loan repayments
Revolving loan facility drawn
Revolving loan facility net payments
Refinancing and arrangement fees paid
Interest paid
Lease payments
Net cash outflow from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

5,120

1,551
180
120
(1,090)
900
299
(17)

7,063

(2,873)
3,360
342
7,892

17
(1,485)
–
(1,468)

–
–
–
(1,429)
–
(2,718)
–
(386)
(110)
(4,643)

1,781

3,481
$5,262

1,278

1,613
180
148
–
–
1,663
(15)

4,867

2,841
(3,579)
(353)
3,776

15
(2,449)
5
(2,429)

1,090
(18,177)
10,000
(357)
3,000
(283)
(676)
(1,055)
(126)
(6,584)

(5,237)

8,718
$3,481

IOFINA PLC

COMPANY BALANCE SHEET

31 December
2021
$’000

31 December
2020
$’000

Note

Assets
Non-current assets
Investment in subsidiary undertakings
Total non-current assets

Current assets
Due from subsidiaries
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets

Equity and liabilities
Current liabilities
Trade and other payables
Total current liabilities

Equity attributable to the owners of the
parent
Issued share capital
Share premium
Share-based payment reserve
Retained losses
Foreign currency reserve
Total equity
Total equity and liabilities

28
15
17

17,199
17,199

20,792
3
163
20,958
$38,157

17,199
17,199

21,712
3
60
21,775
$38,974

137
137

202
202

3,107
60,687
2,007
(22,022)
(5,759)
38,020
$38,157

3,107
60,687
2,136
(21,398)
(5,759)
38,773
$38,974

The loss for the financial year dealt with in the financial statements of the parent company was
$873k (2020 profit $3,379k).

The financial statements on pages 47 to 82 were approved and authorised for issue by the Board and
were signed on its behalf on 6 May 2022

Dr. Thomas M Becker
Chief Executive Officer and President
Company number: 05393357

IOFINA PLC

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Attributable to equity holders of the parent

capital

Share based

Retained

premium

payment

losses

$’000

reserve

$’000

Foreign

currency

reserve

$’000

Total

equity

$’000

Balance at 1 January 2020

$3,107

$60,687

$1,988

$(24,777)

$(5,759)

$35,246

Transactions with owners

Share-based expense
Total transactions with
owners

Profit attributable to owners
of the parent

Total comprehensive income
for the year

–

148

–

3,379

–

148

3,379

Balance at 31 December 2020

$3,107

$60,687

$2,136

$(21,398)

$(5,759)

$38,773

Transactions with owners

Share-based expense
Share options lapsed and
forfeited
Total transactions with
owners

Loss attributable to owners
of the parent
Total comprehensive income
for the year

–

120

(249)

(129)

–

249

(873)

–

120

–

120

(873)

Balance at 31 December 2021

$3,107

$60,687

$2,007

$(22,022)

$(5,759)

$38,020

IOFINA PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Accounting policies

The Company is a public limited company incorporated and domiciled in the United Kingdom. The
Company is listed on the AIM Market of the London Stock Exchange.

The registered office is located at 48 Chancery Lane, London, WC2A 1JF. The principal activities of the
Company have been and continue to be investment in subsidiaries engaged in the production of iodine
and iodine derivatives, including the arrangement of finance for and the provision of management
services to subsidiaries.

a) Statement of compliance

These consolidated financial statements have been prepared in accordance with UK adopted
International Financial Reporting Standards (‘IFRS’) and IFRS Interpretations Committee (‘IFRIC’) and
the Companies Act 2006 applicable to companies reporting under IFRS.

The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.

b) New standards, interpretations and amendments

Management continues to evaluate standards, amendments and interpretations which are effective
for reporting periods beginning after the date of these financial statements and have not been
adopted early, including:

-
-
-

IFRS1 (First-time Adoption of International Financial Reporting Standards)
IFRS9 (Financial Instruments)
IFRS16 (Leases)

Implementation of the above is not expected to have a material effect on the Group’s financial
statements.

c) Basis of preparation of financial statements

The financial statements have been prepared on the historical cost convention as modified by the
revaluation of financial liabilities at fair value through profit and loss.

The financial statements are presented in US Dollars, which is also the Group’s functional currency.

Amounts are stated in thousands of US Dollars, unless otherwise stated.

As permitted by Section 408 of the Companies Act 2006, the parent company’s income statement has
not been included in these financial statements.

d) Revenue recognition

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring
goods or providing services, and is recognized when performance obligations are satisfied under the

IOFINA PLC

terms of contracts with our customers. A performance obligation is deemed to be satisfied when
transfer of benefit of the product or service is transferred to our customer. The transaction price of a
contract, or the amount we expect to receive upon satisfaction of all performance obligations, is
determined by reference to the contract’s terms and includes adjustments, if applicable, for any
variable consideration, such as customer rebates or commissions, although these adjustments are
generally not material. Costs incurred to obtain contracts with customers are expensed immediately.

Revenue consists of sales of iodine derivatives, iodine, chemicals and ancillary products. All of our
revenue is derived from contracts with customers, and almost all of our contracts with customers
contain one performance obligation for the transfer of goods where such performance obligation is
satisfied at a point in time. Transfer of benefit of a product is deemed to be transferred to the
customer upon shipment or delivery. Significant portions of our sales are sold free on board shipping
point or on an equivalent basis, while delivery terms of other transactions are based upon specific
contractual arrangements. Our standard terms of delivery are generally included in our contracts of
sale, order confirmation documents and invoices, while the timing between shipment and delivery
generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether
performed before or after the customer obtains control of the goods, are accounted for as fulfilment
costs.

Trade receivables at December 31, 2021 of $5,419k (2020 $3,102k) represent all balances arising from
contracts with customers.

e) Research and development expenditures

Expenditure on research (or the research phase of an internal project) is recognised as an expense in
the period in which it is incurred. Costs that are directly attributable to the development phase of a
new customised chemical manufacturing process or development of a new iodine project are
recognised as intangible assets provided they meet the following recognition requirements:

▪
▪
▪
▪
▪

▪

completion of the intangible asset is technically feasible so it will be available for use or sale;
the Group intends to complete the intangible asset and use or sell it;
the Group has the ability to use or sell the intangible asset;
the intangible asset will generate probable future economic benefits;
there are adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset; and
the expenditure attributable to the intangible asset during its development can be measured
reliably.

Among other things, this requires that there is a market for the output from the intangible asset or for
the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such
benefits.

Development costs not meeting these criteria for capitalisation are expensed as incurred. In 2021, all
research and development expenditures were expensed as incurred.

IOFINA PLC

f) Going concern

The Group considers that it is now well placed financially in light of recent reductions in debt,
generation of profits and sustained upwards trends in iodine pricing. On that basis the Group has
prepared forecasts and projections that indicate there are adequate resources to continue in
operational existence for the foreseeable future. However, the Group recognises that there can be no
certainty where these predictions are concerned. After due consideration of the foregoing, the
Directors consider it appropriate to continue to adopt the going concern basis in preparing the
financial statements.

g) Basis of consolidation and investments in subsidiary undertakings

The consolidated financial statements incorporate the financial statements of the Company and its
subsidiaries made up to 31 December 2021. Subsidiaries are entities over which the Group has the
power to control the financial and operating policies so as to obtain benefits from their activities. The
Group obtains and exercises control through voting rights. The acquisition method of accounting is
used to account for the purchase of subsidiaries by the Group. On acquisition, the subsidiary’s assets
and liabilities are recorded at fair value, reflecting their condition at the date of acquisition.

The financial statements of subsidiaries are included in the consolidated financial statements from the
date control commences until the date control ceases.

Intra-Group balances and any unrealised gains and losses or income and expenses arising from intra-
Group transactions are eliminated in preparing the consolidated financial statements, unless the
losses provide an indication of impairment of the assets transferred.

Amounts reported in the financial statements of the subsidiaries are adjusted where necessary to
ensure consistency with the accounting policies adopted by the Group.

Investments in subsidiary undertakings are stated in the parent company balance sheet at cost less
provision for any impairment losses.

h) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The acquisition method
involves the recognition of the acquiree's identifiable assets and liabilities, including contingent
liabilities, regardless of whether they were recorded in the financial statements prior to acquisition.
On initial recognition, the assets and liabilities of the acquired subsidiary are included in the
consolidated balance sheet at their fair values, which are also used as the basis for subsequent
measurement in accordance with the Group’s accounting policies. Acquisition costs are expensed as
incurred.

Goodwill represents the excess of the fair value of consideration payable in a business combination
over the fair value of the Group's share of the identifiable net assets of the acquiree at the date of
acquisition. Any excess of identifiable net assets over the fair value of consideration is recognised in
profit or loss immediately after acquisition.

As described in Note 1m) below, goodwill is tested for impairment at least annually.

IOFINA PLC

i) Foreign currency

The vast majority of the Group’s business is denominated in U.S. Dollars, which is the functional
currency of the main operating subsidiaries. U.S. Dollars is the presentational currency for the Group
financial statements.

Transactions denominated in foreign currencies are translated at the rates of exchange ruling at the
date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates
of exchange ruling at the balance sheet date. Non-monetary items that are measured at historical cost
in a foreign currency are translated at the exchange rate at the date of transaction. Non-monetary
items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date the fair value was determined.

Any exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were initially recorded are recognised in profit and
loss in the period in which they arise. Exchange differences on non-monetary items are recognised in
other comprehensive income to the extent that they relate to a gain or loss on that non-monetary
item taken to the statement of changes in equity, otherwise such gains and losses are recognised in
profit and loss.

The results and financial position of foreign operations (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:

• assets and liabilities for each balance sheet presented are translated at the closing rate at the date
of that balance sheet;

• income and expenses for each statement of profit or loss and statement of comprehensive income
are translated at average exchange rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the dates of the transactions); and

• all resulting exchange differences are recognised in other comprehensive income.

On disposal of a foreign operation for which the presentational and functional currencies were
different in previous periods, the cumulative translation differences are transferred to profit and loss
as part of the gain or loss on disposal. The US Dollar/Pounds Sterling exchange rate averaged 1.3756
in 2021 (2020 1.284), and at 31 December 2021 was 1.351 (2020: 1.365).

IOFINA PLC

j) Intangible assets

Undeveloped leasehold costs

Undeveloped leasehold costs relate to the costs of acquiring brine leases in respect of the surface and
mineral rights of landowners in areas of interest outside of those currently connected to the Group’s
operating plants.

These costs are capitalised as exploration and evaluation assets and are carried at historical cost less
any impairment losses recognised. If areas leased provide brine to operating plants, the related costs
are transferred to the relevant plants and amortized over the lives of those plants.

Other intangible assets

Other identifiable intangible assets arose from the acquisition of H&S Chemical in 2009. These assets
were valued by an external, independent valuation firm. Based on the type of asset, the useful life of
each asset was estimated. The value of each identifiable intangible asset is amortised evenly over its
useful life. The following useful lives are applied:

▪ WET® patent: 15 years
▪ Customer relationships: 10 years
▪ Patent portfolio: 8 years
▪ EPA registrations: 2 years

Goodwill

Goodwill represents the excess of the fair value of consideration in a business combination over the
fair value of the Group’s share of the identifiable net assets acquired. Goodwill is carried at cost less
accumulated impairment losses.

k) Property, plant and equipment

Property, plant and equipment are stated at historical cost, net of depreciation and any provision for
impairment. Cost includes purchase price and costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by
management, such as costs relating to construction, site preparation, installation and testing.

Costs relating to assets put into service at a later date are accumulated as construction in progress,
and depreciation only commences once such assets are put into use.

Depreciation is provided at rates calculated to write off the depreciable amount of each asset on a
straight line basis over its expected useful life, as follows:

▪ Buildings: 2.5 percent per annum
▪ Office lease: term of the lease (38 months)
▪ Equipment and machinery:

o
o
o
o

IOSorb plants - 5 percent per annum
Other plant and equipment – 5 to 7 years
Vehicles and office equipment - 20 percent per annum
Computer equipment - 33 percent per annum

IOFINA PLC

Reviews of the estimated remaining lives and residual values of individual assets are made at least
semi-annually, and adjustments are made where appropriate. Construction in progress is also
reviewed for impairment.

Freehold land is not depreciated.

l) Financial instruments

Financial liabilities

Trade and other payables

Trade and other payables are initially recognised at fair value and subsequently measured at
amortised cost using the effective interest rate method.

Loan notes

Financial liabilities and equity instruments are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any contract that evidences a residual interest in
the assets of the Group after deducting all of its liabilities.

Interest-bearing loans are recorded initially at their fair value, net of direct transaction costs. Such
instruments are subsequently carried at their amortised cost and finance charges, including premiums
payable on settlement, redemption or conversion, are recognised in profit or loss over the term of the
instrument using the effective rate of interest.

Financial assets

Cash and cash equivalents represent short term, highly liquid investments with an original maturity of
fewer than three months that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. At the end of 2021 and 2020, all cash amounts were in 100
percent liquid accounts.

The Group uses the ‘simplified method of expected credit losses’. Trade receivables are recognised
initially at fair value and subsequently measured at amortised cost using the effective interest rate
method, less provision for expected credit losses. Expected credit losses are based on the Group’s
historical credit losses experienced, then adjusted for current and forward looking information on
factors affecting the Group’s customers.

m) Impairment

Whenever events or changes in circumstances indicate that the carrying value of an asset may not be
recoverable, that asset is reviewed for impairment. An asset's carrying value is written down to its
estimated recoverable amount (being the higher of the fair value less costs to sell and value in use) if
that is less than the asset's carrying amount.

Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the
related business combinations and represent the lowest level within the Group at which management
monitors goodwill.

IOFINA PLC

Cash-generating units to which goodwill has been allocated are tested for impairment at least
annually. An impairment loss is recognised for the amount by which the asset's or cash generating
unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to
sell and value in use. To determine the value in use, management estimates expected future cash
flows from each cash-generating unit and determines a suitable discount rate in order to calculate the
present value of those cash flows. The data used for impairment testing procedures are directly linked
to the Group's latest approved budget, adjusted as necessary to exclude the effects of future
reorganisations and asset enhancements. Discount factors are determined individually for each cash-
generating unit and reflect their respective risk profiles as assessed by management.

Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated
to that cash-generating unit. Any remaining impairment loss is charged pro rata to the other assets in
the cash-generating unit. With the exception of goodwill, all assets are subsequently reassessed for
indications that an impairment loss previously recognised may no longer exist. An impairment charge
is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount.

The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost. The impairment methodology applied depends on whether
there has been a significant increase in credit risk.

For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognised from initial recognition of the receivables. Intercompany
loans due to the parent company from its subsidiaries are tested for impairment as part of the overall
investment in those subsidiaries, by reference to the present values of estimated future cash flows of
the subsidiaries, as further described in Note 2c.

n) Equity

Equity comprises the following:

▪
▪

▪

▪
▪

“Share capital” represents the nominal value of equity shares.
“Share premium” represents the excess over nominal value of the fair value of consideration
received for equity shares, net of expenses for the share issue.
“Share-based payment reserve” represents the cumulative fair value of options and warrants
issued by the Company and recognised in profit and loss.
"Retained losses" represents accumulated losses.
"Foreign currency reserve" represents the cumulative differences arising from translation of
foreign operations.

o) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost includes all expenses directly
attributable to the manufacturing process as well as suitable portions of related production
overheads, based on normal operating capacity. Costs of ordinarily interchangeable items are assigned
using the first in, first out cost formula. Cost excludes unrealised gains arising from intra-Group
transactions. Net realisable value is the estimated selling price in the ordinary course of business less

IOFINA PLC

any applicable selling expenses. When inventory is sold the cost is included in Cost of Sales on the
Statement of Comprehensive Income.

p) Taxation

Tax expense recognised in profit or loss is the tax currently payable based on taxable profit for the
year and deferred tax not recognised directly in equity.

Deferred income taxes are calculated using the balance sheet liability method. Deferred tax is
generally provided on the difference between the carrying amounts of assets and liabilities and their
tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction is a business combination or affects
tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries
is not provided if reversal of these temporary differences can be controlled by the Group and it is
probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be
carried forward, as well as other income tax credits to the Group, are assessed for recognition as
deferred tax assets according to the likelihood of their recoverability in the foreseeable future.

Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to
the extent that it is probable that the underlying deductible temporary differences will be able to be
offset against future taxable income. Current and deferred tax assets and liabilities are calculated at
tax rates that are expected to apply to their respective period of realisation, provided they are enacted
or substantively enacted at the balance sheet date.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in profit or
loss, except where they relate to items that are charged or credited directly to equity in which case
the related deferred tax is also charged or credited directly to equity.

q) Leases

The Group assesses whether a contract is, or contains, a lease, at inception of the contract. The Group
recognises a right-of-use asset and a lease liability on the balance sheet at the lease commencement
date. The right-of-use asset is initially measured at cost. This comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date and an estimate
of any costs to restore the underlying asset to the site on which it is located, less any lease incentives
received.

The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use-asset or the end of
the lease term. Amounts relating to such assets are disclosed separately in note 12. In addition, the
Group assess the right-of-use asset for impairment when such indicators exist.

At the commencement date, the lease liability is initially measured at the present value of the lease
payments discounted using the Group’s incremental borrowing rate at the date of transition as the
interest rate implicit in the lease could not be readily determined. Interest is charged at the same
discount rate used to calculate the present value of the lease.

IOFINA PLC

The lease liability is re-measured if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option. When the lease liability is re-measured in this way, a
corresponding adjustment is made to the carrying amount for the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases of low value operating value. These are charged
to profit and loss on a straight-line basis over the period of the lease. At 31 December 2021 the Group
had one lease, for office space.

r) Share-based payments

The cost of equity settled transactions is measured at fair value at the grant date as measured by use
of the Black Scholes model. If vesting periods or other vesting conditions apply, the expense is
allocated over the vesting period, based on the best available estimate of the number of share options
expected to vest. Non-market vesting conditions are included in assumptions about the number of
options that are expected to become exercisable. Estimates are subsequently revised if there is any
indication that the number of share options expected to vest differs from previous estimates. Any
cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to
any expense recognised in prior periods if share options ultimately exercised are different to those
estimated on vesting.

Charges made to profit or loss, in respect to share-based payments, are credited to the share-based
payment reserve.

s) Segment reporting (Note 3)

In identifying its operating segments, management follows the Group's service lines, which represent
the main products provided by the Group and are based on the information presented to the chief
operating decision maker, which is the Board.

IOFINA PLC

2. Significant judgements and estimates

Judgements and estimates are regularly evaluated based on historical experience, current
circumstances and expectations of future events.

The critical estimates made in the preparation of the financial statements are set out below. The
resulting accounting estimate may not equal the related actual result, and management must also
make judgements about current circumstances and expectations of future events. Significant
judgements made by management include:

Intangible and tangible assets are tested for impairment where there is an indication that they
may be impaired. In accordance with IAS 36 - Impairment of Assets, an intangible or tangible asset
is considered impaired when its carrying amount exceeds its recoverable amount on an individual
cash generating unit basis. The recoverable amounts of relevant cash generating units are based
on value in use calculations using management's best estimate of future business performance.
For this purpose management regards all the iodine production plants as a single cash generating
unit given their mutual dependence on centralised management, financial, maintenance and sales
and marketing functions. In carrying out impairment testing, management will make a number of
significant estimates in relation to the assumptions incorporated into their calculations. These will
include factors such as growth rates and discount rates. Details and carrying values of intangible
assets, goodwill and property, plant and equipment are provided in notes 10, 11 and 12.

b. Management reviews the useful lives of depreciable and amortisable assets at each reporting
date. The carrying amounts are analysed in notes 10 and 12. Management’s estimate of the useful
lives of plant and equipment as detailed in note 1k are common life expectancies for the industry.
In particular, the expected useful life attributed to each IOsorb® plant is 20 years. Changes in the
expected level of usage or other technological developments could impact the life and residual
value of these assets.

c. The carrying amount of the parent company’s investment in its subsidiaries of $38.0m (2020:
$38.9M) has been evaluated for impairment. For this purpose the two operating subsidiaries have
been treated as one unit, given the vertical integration of the Group’s operating activities. The
carrying amount of the parent company’s investment of $38.0m (2020: $38.9M) compares to
carrying amounts of the subsidiaries’ net assets, excluding loans from the parent company, of
$25.9m (2020: $20.8m). An assessment has been made of the present values of the future cash
flows related to the operating activities of the subsidiaries to determine whether any impairment
losses should be recognised. The Group has concluded that it no impairment provision is required.

d. Based on reports received from Organic Vines OP LLC management has concluded that there is
currently no basis for projecting any positive return (see Note 16), and that therefore it is
appropriate to impair the investment of $900,000 to Nil.

IOFINA PLC

In accordance with IAS12 and in light of the Group’s recent much improved profitability, and
therefore its likely utilisation of its $19.4m accumulated US Federal tax losses in the foreseeable
future, a deferred tax asset of $4.1m reflecting the value of those losses at a tax rate of 21% has
now been set up in the balance sheet and credited to tax in the profit and loss account. This asset
will be amortised to the profit and loss account in line with future reductions in tax payable from
utilisation of the losses.

3. Segment reporting

a. Business segments - The Group’s operations comprise the exploration and production of iodine
with complete vertical integration into its specialty chemical halogen derivatives business, and are
therefore considered to fall within one business segment. In November 2019 the Group made an
investment of $900,000 in Organic Vines OP LLC, which was engaged in the production of hemp
seeds. This investment has been impaired to Nil in 2021 (see Note 16), and there was no trading
activity during 2020 or 2021. Therefore segment reporting below is limited to the separate
recognition of the asset in 2020.

Assets
Halogen Derivatives and Iodine
Hemp seeds
Total

Liabilities
Halogen Derivatives and Iodine
Total

31 December
2021
$

31 December
2020
$

40,379
–
$40,379

14,484
$14,484

38,934
900
$39,834

19,179
$19,179

b. Geographical segments - The Group reports by geographical segment. The Group's activities are
related to exploration for, and development of, iodine in certain areas of the USA and the
manufacturing of specialty chemicals in the USA with support provided by the UK office. In
presenting information on the basis of geographical segments, segment assets and the cost of
acquiring them are based on the geographical location of the assets.

IOFINA PLC

3. Segment reporting (continued)

Assets
UK
USA
Total

Liabilities
UK
USA
Total

Revenue
North America
Asia
South America
Europe
Other
Total

31 December
2021
$’000

31 December
2020
$,000

166
40,213
$40,379

137
14,347
$14,484

19,858
15,851
3,148
156
26
$39,039

63
39,771
$39,834

202
18,977
$19,179

13,843
13,524
1,749
550
22
$29,688

c. Significant customers – in 2021 Iofina Chemical had five customers in excess of 5% of sales (2020
three customers). 2021 percentages were 10%, 9%, 7%, 7%, 6% (2020 percentages were 15%, 9%, 6%).

4. Profit before taxation

Profit before taxation is stated after charging:

Depreciation expense
Amortisation expense

Year ended
31 December
2021
$’000

1,551
180

Year ended
31 December
2020
$’000

1,613
180

Other:
Annual audit fees for audit of parent company and
consolidated financial statements
Fees payable to the company’s auditor for other services

82
8

79
4

IOFINA PLC

4. Profit before taxation (continued)

Cost of sales – analysis by nature

Raw materials
Freight
Sales commission
Labour, manufacturing overhead and royalties

Administrative expenses – analysis by nature

Remuneration and benefits
Share-based payments
Office expenses
Professional services
Travel
Rent
Other

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

14,912
782
359
12,254
$28,307

9,711
891
257
10,424
$21,283

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

2,582
120
257
554
75
(19)
220
$3,789

2,518
148
197
579
69
(36)
211
$3,686

Research and development expenses recognised during the period were $241k (2020: $279k), and
are included in administrative expenses above.

5. Staff numbers and costs

The average number of Group employees, including executive directors, and their costs were:

Production
Administrative
Sales
Total staff

Year ended
31 December
2021
Number

Year ended
31 December
2020
Number

81
14
1
96

IOFINA PLC

5. Staff numbers and costs (continued)

Wages and salaries
Social security costs

Year ended
31 December
2021
$’000

6,454
1,057
$7,511

Year ended
31 December
2020
$’000

6,227
903
$7,130

Of the total staff costs above, $5,120k (2020: $4,800k) is included within cost of sales and $2,391k
(2020: $2,330k) is included within administrative expenses.

Payments to executive directors and senior officers of subsidiaries (considered to be key management
personnel) for their services during the year were as follows:

Wages and salaries
Social security costs
Total directors’ cost

Year ended
31 December
2021
$’000

941
108
$1,049

Year ended
31 December
2020
$’000

907
96
$1,003

Included within wages and salaries above is $295k (2020: $286k) in respect of the highest paid
director. No options were exercised by a director in 2021 (2020 Nil).

Finance expense

Bank facilities 16 September 2020
Term loan interest
Revolving loan facility interest
Interest swap liability
Refinancing fees

Debt restructure 29 March 2019
Term loan notes interest paid
Arrangement fees

Other interest payable
IFRS16 lease interest

Total finance expense

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

345
27
(69)
–

–
–

–
(4)

114
24
69
396

949
84

9
18

$299

$1,663

IOFINA PLC

Finance income

Interest income

Taxation

Current tax
Deferred tax

Tax reconciliation:
Profit on ordinary activities before tax
Tax at UK income tax rate of 19% (2020: 19.00%)
Effects of:
Temporary differences
Permanent differences
Losses not recognised for deferred tax purposes
Losses carried forward recognised as deferred tax asset
Total tax charge/(credit)

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

17
$17

15
$15

Year ended
31 December
2021
$’000

Year ended
31 December
2020
$’000

–
(4,066)
$(4,066)

5,120
973

(110)
(32)
(831)
(4,066)
$(4,066)

–
–
–

1,278
243

323
29
(595)
–
–

As previously disclosed, the Group has accumulated US Federal tax losses that are expected to be
deductible from future US Federal taxable profits subject to agreement with the relevant tax
authorities. As of 31 December 2021 these losses are estimated to be approximately $19.4 million
(2020: $24.6 million). To the extent US Federal tax losses are not utilised to offset current income
taxes they will begin to expire in 2035.

In accordance with IAS 12 and in light of the Group’s recent much improved profitability, and therefore
its likely utilisation of its $19.4m accumulated US Federal tax losses in the foreseeable future, a
deferred tax asset of $4.1m reflecting the value of those losses at a tax rate of 21% has now been set
up in the balance sheet and credited to tax in the profit and loss account. This asset will be amortised
to the profit and loss account in line with future reductions in tax payable from utilisation of the losses.

IOFINA PLC

Earnings per share

The calculation of earnings per ordinary share is based on the profit after tax attributable to
shareholders of $9,186k (2020 profit $1,278k) and the weighted average number of ordinary shares
outstanding of 191,858,408 (2020: 191,858,408). After including the weighted average effect of
dilutive share options of 1,232,450 (2020: 2,030,649) the diluted weighted average number of
ordinary shares outstanding was 193,090,858 (2020: 193,889,057).

10. Intangible assets (Group)

Exploration &
Evaluation Assets

Montana
Atlantis
Field

$’000

Other
intangible

assets

(see below)
$’000

Total

$’000

3,358
(3,358)
–

3,358
–
(3,358)
–
–
–

–
–
–

3,844
(25)
$3,819

3,021
180
(25)
3,176
180
$3,356

$822
$643
$463

7,202
(3,383)
$3,819

6,379
180
(3,383)
3,176
180
$3,356

$822
$643
$463

Cost
At 1 January 2020
Disposals
At 31 December 2020 & 2021

Accumulated amortization
At 1 January 2020
Charge for the year
Disposals
At 31 December 2020
Charge for the year
At 31 December 2021

Carrying amounts
At 31 December 2019
At 31 December 2020
At 31 December 2021

IOFINA PLC

10. Intangible assets (Group) (continued)

Details of Other intangible assets are set out below:

Other intangible assets

Cost
At 1 January 2020
Disposals
At 31 December 2020 &
2021
Accumulated amortization
At 1 January 2020
Charge for the year
Disposals
At 31 December 2020
Charge for the year
At 31 December 2021
Carrying amounts
At 31 December 2019
At 31 December 2020
At 31 December 2021

WET® patent

Customer
relationships

$’000

Patent
portfolio

$’000

EPA
registrations

$’000

Total

$’000

2,700
–

661
–

212
(25)

271
–

3,844
(25)

$2,700

$661

$187

$271

$3,819

1,877
180
–
2,057
180
$2,237

$823
$643
$463

661
-
–

661
–
$661

–
–
–

212
-
(25)

187
–
$187

–
–
–

271
-
–

271
-
$271

–
–
–

3,021
180
(25)
3,176
180
$3,356

$823
$643
$463

Other intangible assets were acquired in the acquisition of H&S Chemical in 2009.

WET® Patent
The WET® Patent technology employs two different iodine extraction methods depending on brine
chemistry for optimal efficiency. We utilised a with and without analysis, a variation of the discounted
cash-flow method, to estimate the fair value of a WET® Patent at date of acquisition. The methodology
compared the cash flow generating capacity of Iofina Chemical assuming it was operating without the
benefit of the WET® Patent to the projected cash flow with the benefit of the patent. The contractual
life of the patent is in excess of 20 years; however, the useful life of the patent was estimated at 15
years based on the following:

▪ Management’s expectation for the expected viability of the technology
▪ Management’s expectations regarding the timing of significant substitute technology
▪ The lack of comparable substitute technologies as of the valuation date
▪ The remaining amortization period is 2.5 years

IOFINA PLC

11. Goodwill (Group)

Carrying amounts
At 31 December 2019, 31 December 2020 and 31 December 2021

$’000

$3,087

Goodwill arose on the acquisition of H&S Chemical in 2009 and is wholly allocated to the Iofina
Chemical cash generating unit of the Group. Goodwill impairment testing is conducted annually, based
on projected cash flow to be generated.

The Chemical business has been in operation for 35 years, and much of its products and customer
base are long established. For impairment testing, a long term growth rate of 1.00% per annum was
applied to budgeted cash flows and a discount rate of 12.88% per annum was used. On this basis the
net present value of cash flow exceeded the goodwill amount of $3,087k.

Sensitivity analysis

Projections based on the above assumptions show headroom of $4.8m between the value in use of
the business net of other assets of $22.3m and the carrying value of $17.5m, comprising goodwill of
$3.1m, other intangible assets of $0.5m, and net business trading assets of $13.9m. In order for the
value in use to equal the carrying value it would be necessary for the discount rate to rise to 15.6% or
the long term growth rate to be 5.7% negative or projected EBITDA to be lower by 18.8%. Based on
the results of this impairment testing management are satisfied that a reasonably possible change in
assumptions would not lead to an impairment.

IOFINA PLC

12. Property, plant and equipment (Group)

Exploration
and
Evaluation
Assets

Montana
Atlantis
Field
$’000

5,841
–

–
(5,605)
236
(236)
–
–
–

5,602
–

(5,602)
–
–
–
–

$239
$236
–

Cost

At 1 January 2020
Transfers
Additions
Disposals
At 31 December 2020
Transfers
Additions
Disposals
At 31 December 2021

Accumulated
depreciation
At 1 January 2020
Charges for the year

Disposals
At 31 December 2020
Charges for the year
Disposals
At 31 December 2021

Carrying amounts
At 31 December 2019
At 31 December 2020
At 31 December 2021

Right-of-use assets

Freehold
Land
$’000

Buildings
$’000

Right of
use
$’000

Equipment
and
Machinery
$’000

Construction
in Progress
$’000

Total

$’000

209
–

–
–
209
–
–
–
$209

–
–

–
–
–
–
–

1,719
–

11
–
1,730
276
38
–
$2,044

435
57

–
492
57
–
$549

$209
$209
$209

$1,284
$1,238
$1,495

355
–
–
–

355
–
415
(18)
$752

93
112

–
205
96
–
$301

$262
$150
$451

26,323
3,466
176
(4,901)
25,064
1,124
168
(80)
$26,276

12,207
1,444

(4,900)
8,751
1,398
(80)
$10,069

$14,116
$16,313
$16,207

1,840
(3,466)
2,262
–
636
(1,164)
1,279
–
$751

36,287
–
2,449
(10,506)
28,230
–
1,900
(98)
$30,032

–
–

–
–
–
–

18,337
1,613

(10,502)
9,448
1,551
(80)
$10,919

$1,840
$636
$751

$17,950
$18,782
$19,113

Right-of-use assets relate to the Group’s lease on office premises in Denver, Colorado. During 2021
the expiry date of the lease was extended from April 2022 to April 2026, and an amount of $415k has
been capitalised as an addition in respect of future rentals, in accordance with IFRS 16. Liabilities for
future payments are shown in Note 19.

IOFINA PLC

13. Inventories

Group

Raw materials
Work in progress
Finished goods

31 December
2021
$’000

31 December
2020
$’000

4,487
1,753
56
$6,296

6,588
2,813
255
$9,656

At year end, there were no provisions against the carrying value of inventories (2020: nil). During the
year, the cost of inventories recognised as expense and included in ‘cost of sales’ amounted to
$27,165k (2020: $20,135k).

14. Financial instruments

The Board of directors determines, as required, the degree to which it is appropriate to use financial
instruments to mitigate risks. The main risks for which such instruments may be appropriate are
interest rate risk, foreign currency risk, credit risk, investment risk, liquidity risk and commodity risk.
The Group's principal financial asset is cash, which is invested with major banks. The Group has a term
loan and a revolving loan facility and no other borrowings.

Financial assets and liabilities
Group

2021
Cash and cash equivalents
Trade receivables

Trade payables
Accrued liabilities
Lease liabilities

Term loan

2020
Cash and cash equivalents

Trade receivables
Investment

Trade payables
Accrued liabilities
Lease liabilities
Term loan

Revolving loan facility
Government subsidies

Interest rate swap liability

Loans and
receivables at
amortised cost
$’000

Financial
liabilities at
amortised cost
$’000

Investment and
swap liability at
fair value
$’000

Total
$’000

5,262
5,653

3,481

3,102

1,521
4,281
468
8,214

1,194
4,279
186
9,643
2,718

1,090

5,262
5,653

$10,915

1,521
4,281
468
8,214

$14,484

3,481

3,102
900
$7,483

1,194
4,279
186
9,643
2,718

1,090

$19,179

900

IOFINA PLC

14. Financial instruments (continued)

Company

2021

Cash and cash equivalents

Other receivables
Due from subsidiaries

Accruals

2020
Cash and cash equivalents
Other receivables
Due from subsidiaries

Accruals

Loans and
receivables at
amortised cost
$’000

Financial
liabilities at
amortised cost
$’000

163

20,792

60
3
21,712

137

202

Total
$’000

163

20,792

$20,958

137

$137

60
3
21,712

$21,775

202

$202

The interest rate swap liability at fair value is valued on the basis of Level 2 inputs as defined in IFRS
13.

Interest rate risk

Surplus funds are held within the Group’s checking and savings accounts. The benefit of fixing rates
for the longer term is kept under review, having regard to forecast cash requirements and the levels
of return available. Given the short term nature of Iofina’s surplus funds, the Group has limited
interest rate risk. As of 31 December 2021, all surplus funds were invested in checking and savings
accounts that had no terms and were 100% liquid. Bank facilities have variable interest rate terms and
therefore there is an exposure to increases in interest rates. This is mitigated by the use of an interest
rate swap to fix the rate on the majority of the term loan. Also the interest on the revolving credit
facility is reduced by arrangements to sweep surplus funds into that account.

Foreign currency risk

The Group has potential transactional currency exposure in respect of items denominated in foreign
currencies relating to the Group's administration in the UK. The balance of cash held in foreign
currency was $163k (GBP £120k) as of year-end, and provides a hedge against GBP denominated UK
expenses.

Sales transactions are denominated in US Dollars, which is the operating currency. Other impacts of
foreign currency risk are not deemed material to these financial statements.

Credit risk

The maximum exposure is reflected by the carrying amount of financial assets. Because the
counterparties to Iofina’s holdings of cash and cash equivalents are prime financial institutions, Iofina

IOFINA PLC

14. Financial instruments (continued)

does not expect any counterparty to fail to meet its obligations. Additionally, the Group is exposed to
marginal credit risk in the form of receivables for product sales. Credit risk in this regard is mitigated
through long-term customer payment history, insurance of certain foreign receivables, extensive
credit analysis of large purchasers, use of letters of credit, and the requirement for partial or total
payment prior to shipment for some customers.

Investment risk

There is a risk that short term investments may not realise their carrying value.

Liquidity risk

The Group raises funds as required on the basis of forecast expenditure and cash inflows over the next
12 months. When necessary, the scope and rate of activity are adjusted to take account of the funds
available. There is a risk that the Group may not be able to raise sufficient funds to repay loans at their
maturity.

The following table sets out the contractual maturities (representing undiscounted contractual cash
flows) of financial liabilities:

Group
At 31 December 2021:
Trade payables
Accrued liabilities
Lease liabilities
Term loan

Group
At 31 December 2020:
Trade payables
Accrued liabilities
Lease liabilities
Term loan
Revolving loan facility

Up to 3
months
$’000

1,521
1,476
2
357
$3,356

Up to 3
months
$’000

1,194
1,235
–
357
–
$2,786

Between 3
and 12
months
$’000

Between 1
and 2 years
$’000

Between 2
and 6 years
$’000

–
2,804
56
1,071
$3,931

–
–
102
1,429
$1,531

–
–
309
5,357
$5,666

Between 3
and 12
months
$’000

Between 1
and 2 years
$’000

–
3,045
141
1,071
–
$4,257

–
–
45
1,429
2,718
$4,192

Between 2
and 7 years
$’000
–

–
–
6,786
–
$6,786

IOFINA PLC

14. Financial instruments (continued)

Commodity risk

The Group is exposed to movements in the price of raw iodine. Sales of iodine based products were
$30,473k (2020: $18,507k). The effects of changes in the price of iodine on 2021 revenue and profits
are set out in the Financial Review on pages 9 to 11. Iodine is produced internally and is the most
significant cost component for iodine based products.

15. Trade and other receivables Group

Trade receivables
Prepayments and other receivables

Company

Prepayments and other receivables

31 December
2021
$’000

31 December
2020
$’000

5,653
505
$6,158

3,102
183
$3,285

31 December
2021
$’000

31 December
2020
$’000

3
$3

All receivables and prepayments are short term in nature. The carrying values are considered a
reasonable approximation of fair value. There are no expected credit losses.

The Group and the Company have not received a pledge of any assets as collateral for any receivable
or asset.

16. Investment

Investment in Organic Vines Op LLC

31 December
2021
$’000

31 December
2020
$’000

–
–

900
$900

The investment in Organic Vines Op LLC was made in November 2019 and related to a single season’s
production of organically certified hemp seeds. The market for these seeds has not developed as
initially anticipated, and sales to date have been negligible. The company considers it is unable to
predict any future income with any reasonable probability, and therefore the investment has been
impaired to Nil.

IOFINA PLC

17. Cash and cash equivalents

Group

Cash in US Dollar accounts
Cash in GB Pound Sterling accounts

Company

Cash in GB Pound Sterling accounts

18. Trade and other payables

Group

Trade payables
Accrued expenses and deferred income

Company

Accrued expenses

31 December
2021
$’000

31 December
2020
$’000

5,099
163
$5,262

3,421
60
$3,481

31 December
2021
$’000

31 December
2020
$’000

163
$163

60
$60

31 December
2021
$’000

31 December
2020
$’000

1,521
4,281
$5,802

1,194
4,279
$5,473

31 December
2021
$’000

31 December
2020
$’000

137
$137

202
$202

All trade and other payables are considered short term. The carrying values are considered to be a
reasonable approximation of fair value.

Except as regards the term loan, the Group and Company have not pledged any assets as collateral
for any liabilities or contingent liabilities.

IOFINA PLC

19. Lease liabilities

Lease liabilities – current
Lease liabilities – non-current

Movements:

Opening balance
Payments
Lease extension liabilities
Interest accrued
Adjustments

31 December
2021
$’000

31 December
2020
$’000

58
410
$468

141
45
$186

2021
$’000

2020
$’000

186
(110)
405
(4)
(9)
$468

294
(126)
–
18
–
$186

Lease liabilities relate to the Group’s lease on office premises in Denver, Colorado, which was
extended during 2021 to run till 30 April 2026. Liabilities are measured at the present value of the
contractual payments due to the lessor over the lease term, with the discount rate determined by
reference to the Group’s incremental borrowing rate on commencement of the lease or the extension
period. Lease liabilities increase as a result of interest charged at a constant rate on the balance
outstanding and are reduced by lease payments made.

20. Term loans and Revolving loan facility

2019 Term
loans
$’000

2020 Term
loan
$’000

2020
Revolving
loan facility
$’000

At 1 January 2020
Repaid 30 June 2020
Repaid 16 September 2020
First Financial Bank Facilities:
Term loan drawn 16 September 2020
Revolving loan facility drawn 16 September 2020
Term loan instalment repayments
Revolving loan facility net payments
At 31 December 2020
Term loan instalment repayments
Revolving loan facility net payments
At 31 December 2021

Due within one year
Due after one year

$18,177
(2,726)
(15,451)

–
–
–
–
–
–
–
–

–
–

–
–
–

10,000
–
(357)
–
$9,643
(1,429)
–
$8,214

$1,429
$6,785

–
–
–

–
3,000
–
(282)
$2,718
–
(2,718)
–

–
–

IOFINA PLC

20. Term loans and Revolving loan facility (continued)

At the end of June 2020, the Group repaid 15% of debt outstanding, amounting to $2.73 million. In
September 2020, the Group completed the refinancing of all its then outstanding debt of $15.45
million. Facilities of a 7-year $10 million term loan and a 2 year revolving line of credit of up to $8
million, secured by a charge over the Group’s assets, were provided by First Financial Bank, Ohio. The
total amount drawn on completion was $13 million, representing the term loan of $10 million and $3
million relating to the revolving line of credit. With the addition of $2.45 million from the Group’s cash
resources the existing debt balance of $15.45 million was repaid in full, together with accrued interest.
The principal terms applying to the 2020 facilities are:

a) The $10 million term loan is repayable in full by equal monthly instalments over the 7 years to 30
September 2027. There are accelerated repayments based on 25% of 2021 and 2022 surpluses of
EBITDA over the total of capital expenditure and debt payments of principal and interest, payments
to be made on 30 June 2022 and 2023 respectively. The interest rate on $7 million of the loan has
been fixed to maturity by a swap contract at 3.99%, and the interest rate on the balance is variable
monthly at 2.50% above LIBOR, subject to a minimum LIBOR rate of 1.00%, and is currently 3.50%.
Repayment of all or part of the loan may be made at any time, subject to the cost or benefit of
unwinding the swap contract. At 31 December 2021 the amount outstanding after instalment
payments was $8.2 million.

b) The $8 million revolving line of credit has a 2 year term and may be drawn and repaid in variable
amounts at the Group’s discretion, with the amount available at closing being fixed at $3 million.
Amounts that may be drawn are subject to a borrowing base of sufficient eligible discounted monthly
values of receivables and inventory, and compliance on a quarterly basis with trailing 12 months
financial covenant ratios of 1) a maximum multiple of 2.5 total debt to EBITDA, and 2) a minimum
multiple of 1.2 EBITDA net of capital expenditure to the total of principal and interest payments on
the total debt. The interest rate is variable monthly at 2.25% above LIBOR, subject to a minimum LIBOR
rate of 1.00%, and is currently 3.25%. The amount outstanding at 31 December 2020 of $2.72 million
was reduced to Nil by payments made during the year.

The derivative liability resulting from the swap contract described above has been revalued by
reference to market expectations for future LIBOR rates, and the liability of $69k previously recognised
and charged to finance expense has been reduced to Nil (Note 6). The actual cost of the swap during
the year was $31k (2020 $10k).

21. Net debt

2020 Term loan
Revolving loan facility
Total bank debt
Cash and cash equivalents
Net debt at 31 December

2021
$’000

2020
$’000

8,214
–
8,214
5,262
$2,952

9,643
2,718
12,361
3,481
$8,880

IOFINA PLC

22. Government subsidies – Paycheck Protection Program loans

In mid May 2020 the Group’s operating subsidiaries, Iofina Chemical, Inc. and Iofina Resources, Inc.,
received loans totalling US$1.09m under the US Small Business Administration’s Paycheck Protection
Program (‘PPP’), which is part of the Coronavirus Aid Relief and Economic Security Act (‘CARES Act’).
PPP loans, or a portion of the loan, may be forgivable if loan proceeds are used for eligible purposes,
including employee retention and payroll. The Group received notice of 100% forgiveness from the US
Small Business Administration, as of 22 January 2021 as regards $552,500 in respect of iofina
Resources, Inc., and as of 27 January 2021 as regards $537,400 in respect of Iofina Chemical, Inc. The
amounts forgiven have been recognised as income.

23. Share capital

Authorised:
Ordinary shares of £0.01 each

Allotted, called up and fully paid:
Ordinary shares of £0.01 each

31 December
2021

31 December
2020

- number of shares
- nominal value

1,000,000,000
£10,000,000

- number of shares
- nominal value

191,858,408
£1,918,584

There was no change in share capital or share premium in 2021.

24. Share based payments
No options were granted or exercised during the year. A further 1,196,700 options were granted on 9
March 2022 at an exercise price of £0.176 ($0.23). In 2021 a total of 1,378,250 options either lapsed
or were forfeited. Total options outstanding at 9 March 2022 were 5,000,400, representing 2.61% of
shares in issue.

Options granted to directors and key employees and outstanding at 31 December 2021 are as follows:

Date of Grant

13 June 2018
13 June 2018
25 July 2019
25 July 2019
16 December 20
16 December 20
Weighted average

Number
of
Options

Vesting
Date

13 June 2019
880,000
13 June 2020
880,000
25 July 2020
451,000
451,000
25 July 2021
570,850 16 December 21
570,850 16 December 22

3,803,700

Share
Price
£
0.162
0.162
0.213
0.213
0.125
0.125
£0.16

Exercise
Price
£
0.162
0.162
0.213
0.213
0.125
0.125
£0.16

Exercise
Price
2021
$
0.22
0.22
0.29
0.29
0.17
0.17
$0.22

Exercise
Price
2020
$
0.22
0.22
0.29
0.29
0.17
0.17
$0.22

The weighted average contractual life of options outstanding at 31 December 2021 was 7.5 years
(2020 6.9 years).

Exercise prices shown in USD are based on the US Dollar/Pounds Sterling exchange rate at 31
December 2021 of 1.351 (2020 1.365). Options outstanding at 31 December 2021 expire the earlier of
ten years from grant date or 90 days after the termination of service to the Company.

IOFINA PLC

24. Share based payments (continued)

2021
Number of
Options

Weighted
average
exercise price

2020
Number of
Options

Weighted
average
exercise price

5,181,950
–
(985,000)
(393,250)
3,803,700

–

£0.19 $0.26
–
£0.30 $0.41
£0.16 $0.22
£0.16 $0.22

3,949,500
£0.21
1,232,450 £0.125
–
–
–
–
5,181,950
£0.19

3,457,250
(985,000)
(261,250)
1,021,850
3,232,850

£0.21 $0.28
£0.30 $0.41
£0.17 $0.23
£0.16 $0.22
£0.17 $0.23

1,975,000
–
–
1,482,250
3,457,250

£0.23
–
–
£0.18
£0.21

$0.28
$0.17
–
–
$0.26

$0.31
–
–
$0.24
$0.28

Options outstanding
At 1 January
Granted
Lapsed
Forfeited
At 31 December

Options exercisable
At 1 January
Lapsed
Forfeited
Vested
At 31 December

Movements in the Share-based payment reserve were as follows:

Balance 1 January
Share-based payment charge
Lapsed and forfeited options
Balance 31 December

25. Deferred tax

31 December
2021
$’000

31 December
2020
$’000

2,136
120
(249)
$2,007

1,988
148
–
$2,136

2021
$’000

2020
$’000

At 1 January
Prior years US Federal tax losses available for offset against
future US Federal taxable profits (see note 8)
At 31 December

–

4,066
$4,066

–

–
–

26. Related party transactions

In November 2019 the Group made an investment of $900k in Organic Vines OP LLC, a company which
is controlled by Lance Baller, Iofina’s chairman, and in which he has a substantial personal investment.
In 2021 this investment has been impaired to Nil (Note 16).

There are intercompany transactions between the members of the Group. In both 2020 and 2021 all
iodine produced by Iofina Resources was sold to Iofina Chemical. Related party balances are as follows:

IOFINA PLC

26. Related party transactions (continued)

Iofina plc
Iofina Resources
Iofina Chemical
IofinaEX

31 December
2021
$’000

Due to

20,792
–
8,125
–

Due from
–
28,846
71
–

31 December
2020
$’000

Due to

21,712
900
5,586
–

Due from
–
27,258
40
900

Additional related party transactions with directors, who are considered to be key management
personnel, are set out in the Corporate Governance Statement on page 29. Option grants as described
in note 24 are to employees and Directors.

The Company has entered into a number of unsecured related party transactions with its subsidiary
undertakings. The most significant transactions carried out between the Company and its subsidiary
undertakings are financing.

27. Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern, to provide returns for shareholders and to maintain an optimal capital structure to
reduce the cost of capital. The Group defines capital as being share capital plus reserves as shown in
the balance sheet. The Directors continue to monitor the level of capital as compared to the Group’s
commitments and adjust the level of capital as is determined to be necessary by issuing new shares.
Iofina plc is not subject to any externally imposed capital requirements. The Directors consider the
capital of the Group to be the total equity attributable to the equity holders of the parent of $30.0
million as at 31 December 2021 (2020: $20.6 million).

28. Subsidiary undertakings

Investment in subsidiaries

Cost
Balance at 31 December 2019, 2020 and 2021

Due from subsidiaries

Cost
At 1 January
Finance expense paid by subsidiaries
Loans repaid
Management fees
Net funding from subsidiaries
Reversal of impairment of amount due from Iofina Resources
At 31 December

2021
$’000

21,712
–
–
100
(1,020)
–
$20,792

Investment in
subsidiaries
$’000

$17,199

2020
$’000

35,541
(1,033)
(18,177)
100
(19)
5,300
$21,712

IOFINA PLC

28. Subsidiary undertakings (continued)

The Group’s debt arrangements are on a joint and several basis with all Group companies excluding
dormant subsidiaries. The principal beneficiary of these arrangements is Iofina Resources, Inc., and
therefore the debt is accounted for in that company and the consolidated balance sheet, and does not
appear in the balance sheet of Iofina Plc.

Company

Iofina, Inc.
Iofina Resources, Inc.
Iofina Chemical, Inc.
IofinaEX, Inc.
Iofina Resources, LLC
Iofina Resources, LLC

Country of
incorporation and
operation
United States/CO
United States/CO
United States/DE
United States/KY
United States/CO
United States/TX

Principal activity
Holding company
Iodine production
Specialty chemical
Dormant
Dormant
Dormant

Interest in
ordinary shares
and voting rights
100%
100%
100%
100%
100%
100%

Iofina, Inc. was established in February 2006 and is a wholly owned subsidiary of Iofina plc. Iofina, Inc.
owns the whole of the issued share capital of Iofina Resources, Inc., Iofina Chemical, Inc. and IofinaEX,
Inc. Other entities are subsidiaries of Iofina Resources, Inc., the iodine production company.

The registered offices of the above companies are as follows:

Company

Iofina, Inc.
Iofina Resources, Inc.
Iofina Chemical, Inc.
IofinaEX, Inc.
Iofina Resources, LLC (CO)
Iofina Resources, LLC (TX)

Registered office

8480 East Orchard Road, Greenwood Village CO 80111, USA
8480 East Orchard Road, Greenwood Village CO 80111, USA
306 W. Main Street, Frankfort, KY 40601, USA
212 N 2nd St., Suite 100, Richmond, KY 40475
8480 East Orchard Road, Greenwood Village CO 80111, USA
815 Brazos Street, Austin TX 78701, USA

29. Capital commitments

At 31 December 2021 the Group had capital commitments amounting to $463k.

30. Post balance sheet events

1,196,700 share options were granted on 9 March 2022 at an exercise price of £0.176 ($0.23). There
were no other post balance sheet events.

31. Contingent liabilities

There are no contingent liabilities.

32. Ultimate controlling party

There is no ultimate controlling party of the Group.

IOFINA PLC

Iofina and the environment

Iofina promotes, wherever possible, environmental sustainability in its working practices and seeks to
minimise, mitigate, or remedy any harmful effects from the Group’s operations on the environment
at each of its operational sites. To continue that effort through all aspects of business, this report has
been produced to minimise its effect on the environment by using thinner paper, fewer pages, smaller
type set, and non‐colour printing as much as possible. As part of this effort Iofina is trying to move
attention to its online annual reports available at www.iofina.com. By being a better steward of the
environment, Iofina saves valuable shareholder funds instead of producing glossy magazine pages
throughout the whole document.

This page does not form part of the statutory financial statements.

IOFINA PLC

improve

Iodine is essential for life and industry.

Iodine compounds are added to cosmetics
products for the prevention of growth and
transfer of harmful bacteria.

Iodine compounds are used to manufacture
high-tech LCD displays allowing
for
superior image quality.

Iodine formulations protect dairy cows and
humans from
infections that can be
transferred through milk.

Iodine compounds are added to paints and
protective coatings because they are
eﬀective in preventing the growth of molds
and other pathogens.

Iodine compounds
imaging
contrast in the body when used with CT
scans, MRI’s and X-rays helping doctors
diagnose patients more eﬀectively.

Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F
NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I
C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN
CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI
NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2
CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I
C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl
C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2
C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2
CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I
C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3
Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F
NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O
HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 NaI C8H12INO2 C3H3N6Cl3 NaIO4
C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3
IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I

Iodine compounds are used as catalysts in
a variety of industrial transformations. One
example of this is the use of iodine species
in the production of acetic acid which is
diluted and used as household vinegar or
can be transformed into other compounds
such as polyvinyl acetate which has many
adhesive applications.

Insuﬃcient iodine causes Iodine Deficiency
Disorder (IDD). IDD has been medically
cretinism, goiter
proven
(enlargement of the thyroid gland) and
depressed intellectual function in children
and adults which aﬀects more than
600 million people worldwide.

Iodine derivatives are used to produce
many essential pharmaceuticals which
provide doctors with powerful new drugs
to fight diseases.

Iodine is supplemented to table salt thereby
insuring adequate daily intake of this vital
micro nutrient.

Iodine is an essential element touching our
lives everyday.

cause

Iofina plc

Registered Oﬃce

48 Chancery Lane

London WC2A 1JF

(c/o Keystone Law;

Attn: Simon Holden)

Iofina, Inc.

8480 East Orchard Road

Suite 4900

Iofina Resources, Inc.

8480 East Orchard Road

Suite 4900

Greenwood Village, CO 80111

+1 303-222-1215

Iofina Chemical, Inc.

1025 Mary Laidley Drive

Covington, Kentucky 41017

Greenwood Village, Colorado 80111

+1 859-356-8000

+1 303-222-1215

Email: information@iofina.com • Website: www.iofina.com