Iofina plc
Annual Report &
Accounts 2022
2022
o Revenue increased by 8% to $42.2m
o Adjusted EBITDA improved by 65% to $11.5m
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
2022: FIFTH SUCCESSIVE YEAR OF RECORD REVENUE AND EBITDA
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
2021
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
Highlights:
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● Revenue increased by 31%
LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3
● EBITDA increased by 47%
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
● Strengthened cash flow generation and reduction of net debt
KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3
● IO#9 negotiations in progress
C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2
● Process upgrade of a major Iofina Chemical product achieved
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
Highlights:
NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6
● Fifth successive year of record revenue and EBITDA
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
● Net debt reduced to $0.9m
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
● IO#9 iodine plant under construction with a new partner
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● Global iodine market strong with X-ray contrast agent demand leading the way
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
Expectations:
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
● Completion of the IO#9 plant, with the production of crystalline iodine anticipated at an annual run rate
CH2BrI C2H5I ICl C4H9I C3H7I LiI C4H4ClNO2 CF3I H5IO6 KIO3 IKO4 AgI NaIO3 Ca(IO3)2 C7H7ClNO2SNa3H2O HI3 KI
of 100-150 MT
NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I CH2BrI C2H5I ICl C4H9I C3H7I
● IO#10 progression
● Continued improved financial performance
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
Construction of IOsorb® plant IO#9, Oklahoma USA
C7H7ClNO2SNa3H2O HI3 KI NaI C8H12INO2 C3H3N6Cl3 NaIO4 C6H6FN CH3I C3H3N6Cl3 C6H6FN CH2I2 CH3F NH4I
o Strong profits
o Cash generation
o Debt management
2023
IOFINA PLC
Contents
COMPANY INFORMATION ................................................................................................................. ..2
CHAIRMAN’S STATEMENT.................................................................................................................. ..3
FINANCIAL REVIEW ............................................................................................................................ ..7
DIRECTORS' BIOGRAPHIES…… … ......................................................................................................... 10
STRATEGIC REPORT ............................................................................................................................ 12
S172 STATEMENT………………………………………………………………………………………………………………………….22
CORPORATE GOVERNANCE……………………………………………………………………………………………………………24
DIRECTORS’ REPORT .......................................................................................................................... 25
CORPORATE GOVERNANCE STATEMENT ........................................................................................... 27
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”)…………………………………………………………………34
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IOFINA PLC ............................................ 37
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................................... 48
CONSOLIDATED BALANCE SHEET ...................................................................................................... 49
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY .......................................... 50
CONSOLIDATED CASH FLOW STATEMENT ........................................................................................ 51
COMPANY BALANCE SHEET .............................................................................................................. 52
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY .................................................. 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................ 54
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IOFINA PLC
COMPANY INFORMATION
Directors
L J Baller
T M Becker
W D Bellamy
M T Lewin
J F Mermoud
Mary Fallin Christensen
Secretary
Simon Holden
Company number
05393357
Registered office
Auditor
48 Chancery Lane
London WC2A 1JF
UHY Hacker Young LLP
Quadrant House
4 Thomas More Square
London E1W 1 YW
Nominated Adviser and Broker Canaccord Genuity Limited
Solicitors
Registrar
Financial PR
88 Wood Street
London EC2V 7QR
Keystone Law Limited
48 Chancery Lane
London WC2A 1JF
Link Asset Services (Holdings) Limited
10th Floor, Central Square
29 Wellington Square
Leeds LS1 4DL
Yellow Jersey PR Limited
Thanet House
231-232 Strand
London WC2R 1DA
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IOFINA PLC
CHAIRMAN’S STATEMENT
Introduction
The 2022 financial year resulted in several significant milestones for Iofina. We achieved a fifth
straight year of record Adjusted EBITDA with an increase of 65% to $11.5m, record sales of $42.2 m
up 8.3% on 2021, and a record average sales price of iodine was recorded. Profit before tax increased
by 96% to $10.0m.
Iofina produced 516 metric tonnes (MT) of crystalline iodine in 2022. Average prices per kilogram
achieved for sales of crystalline iodine, based on 100% iodine, increased 98% on the previous year to
an average of $71.20 for 2022 whilst non-iodine product sales increased by 26% from $8.6m to
$10.8m.
Additional highlights include a bank debt to Adjusted EBITDA ratio of 0.59 for year-end 2022 compared
to 1.18 for year-end 2021 (2.62 for year-end 2020). In addition, the Company was able to reduce its
net debt from $3.0m to $0.9m while increasing capital investments into chemical and iodine plants of
$3.1m (2021: $1.5m). Net cash inflow from operating activities was $5.6m. The Company achieved
these important milestones while having no lost time accidents in 2022 across all facilities, which is
our top priority. For the second year in a row Iofina Chemical (IC) was awarded a SOCMA
ChemStewards Performance Award and for the first time successfully attained ISO 9001:2015
certification. 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 globally across several
end markets.
Iofina Chemical (IC)
IC had a successful year with its derivatives production, which was helped by the high price of iodine.
This helped to help drive both improved revenue and profitability. We delivered an increase in
Hydroiodic Acid (HI) production to meet higher domestic and international demand and we also
increased Iodopropynyl butylcarbamate (IPBC) production to fulfil large orders. IC returned to growth
in our specialty chemical gases business going back to 24/7 shifts in the second half of the year. There
was some weakness in numbers for Sodium iodide (NaI), Potassium iodide (KI), and Methyl Iodide
(Mel) but the increases in HI helped offset those slowdowns. These shifts in product mixes year over
year are common and we will continue to drive sales of all products. During the year we saw higher
levels of employee churn at our plant due to a more competitive U.S. labour market, but by the end
of the year we were fully staffed for 2023. We also hired to a new Maintenance Supervisor in the
second half of the year which will ensure that IC will continue to set the standard for preventive
maintenance and safety.
2022 was a busy year for the engineering department at IC. We began by successfully testing the new
specialty gases pilot plant. The material quality was verified by our customers to be relatively
comparable to our current process of record. We completed a key set of renovations to our Methyl
Iodide process to ensure safer operation. One of the other big projects was running new equipment
to determine the best conditions for the recovery of an iodide recycle stream. We have successfully
completed our testing in-house and are now working with toll manufacturers to recover this product.
Another significant achievement in 2022 was renovating the lab air handling system with four new
hoods installed and renovating our original two hoods. We also hired a new plant engineer in August
and completed an AutoCAD class in October which will help with process design and building design.
IC’s engineering team exceeded most of their key performance indicators (KPI’s) during the year.
IC had a goal in 2022 to obtain ISO 9001:2015 certification, and following a successful ISO audit in
October, we completed ISO certification (an internationally recognised standard that specifies
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IOFINA PLC
requirements for a quality management system) in December. Additionally, much work was done on
improving our quality management system with continued work on all aspects. We have added a
quality system session to IC’s quarterly training days, to ensure all employees understand the aspects
of the quality management system. IC exceeded its quality KPI’s which during the year included on-
time product deliveries of 87.9%, a high customer satisfaction score, a high rate of completing
scheduled preventive maintenance, and kept our customer complaints below 3% at 1.24%. The
continued stress testing of IC’s strategic direction and quality policy will continue to be a focus as we
continue to improve as an organization.
Research and Development (R&D) continues to aid in process development and new product
opportunities as well as the production of laboratory size quantities of customer orders typically for
specialized iodides. Unfortunately, from April through November the lab HVAC renovations impacted
expanded R&D efforts. Most of the year was spent producing lab size products. Work continues on
lithium iodide and other specialty iodides. The expanded HVAC project added four new hoods
available for R&D efforts in 2023. We have relied on R&D to help with our iodine waste stream
recovery project and work continues on the solids obtained from the distillation to convert these to
iodide products in 2023. Quality Control and R&D implemented new instrumentation software and
added a new moisture analyser for our specialty chemical gases detection to ensure our testing
requirements are met and provide backup instrumentation to meet customer needs.
A continued focus on safety remains key to our business and we completed a second consecutive year
with no lost time accidents at IC. At the year-end we stood at 780 days with no loss time incidents at
IC. Continuing safety improvements are a priority for the Company and at IC additional monthly online
safety training was added to provide training on important safety, plant and product awareness issues.
Each month employees are required to complete between two and three training courses. This helps
to reinforce some of the important topics covered during quarterly safety and quality training. IC was
awarded another SOCMA ChemStewards performance award for our continued success of our
Employee Health and Safety work.
Iodine Prices
Since the lows of early 2017, iodine prices have steadily increased from 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. Prices increased during 2022 to end the year at
approximately $70/kg. The increase in demand for iodine was led by human health applications such
as povidone iodide (PVPI) and X-ray contrast imaging agents. At the time of writing, iodine prices are
remaining steady with spot pricing now generally at $70/kg and above. The last time spot prices for
iodine were above $60/kg was in June 2013. Iofina expects iodine prices to remain steady in 2023 due
to global demand and environmental and geopolitical risks in Chile that slowed increased production.
Iofina Resources (IR)
For IR’s current assets, efforts were made to maintain and work with our oil and gas partners to get
the highest quality, quantity, and stable brines to our production facilities. IR was successful in our
efforts to improve the consistency of brine water supply to our IOsorb® plants. We saw water volumes
improve and stabilize across the Mississippian Lime Field. IR continued to work closely with our
partner operators to optimize the water volumes and highest possible iodine concentrations. Our
expansion efforts are underway with the construction of IO#9 beginning in November.
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IOFINA PLC
We have maintained great relationships with our partners that have resulted in successful projects for
brine manipulation within their systems, hardware replacements and upgrades (i.e., valves, pipe work,
flow meters, etc.), handling IR’s return water issues, and stabilizing existing brines with solid iodine
concentrations. IR’s staff worked closely with our partners’ field engineers regarding their well work
over program and to identify and prioritize shut-in production wells that would be more beneficial to
IR’s facilities, as well as having adequate oil production. Several new wells in the IO#4 and IO#6 area
are online and helping add brine and iodine to these plants. Through persistence and coordination,
we were able to successfully finalize the IO#9 iodine extraction agreement. This was with a large, new
operator to IR. Although negotiations took significant time, our efforts were successful and IR has
established a strong working relationship with the Operator which we believe may be beneficial in
developing additional plants in both Oklahoma and Texas.
Iofina had a strong end to 2022, with H2 iodine production surpassing our initial target and product
sales remaining robust. We produced 516MT in 2022 compared to 518.2MT in 2021. The increase of
produced water to IO#2 and IO#7 due to our efforts had the biggest impact in H2. This increased flow
was a combination of the increase of investment by the Operator and working with the Operator at
the field level to optimize operations.
Efficiencies were improved due to completing five tower IOsorb® repacks in H1 2022, which played a
critical role in exceeding the 2022 H2 projections. We continued to collect and monitor data from each
facility to improve effectiveness and have moved more aggressively to repack plants resulting in more
partial repacks, reduced downtime and costs, and improved efficiencies.
IR added a new HSE manager in 2022. He has had an immediate impact the on continual improvement
of our safety culture. Several initiatives have been successfully undertaken, including modification to
personal protective equipment (PPE) and respirator requirements, improved operating conditions in
the labs, and increased training and awareness to issues of health and safety in our operations. As we
move forward into 2023, we have chosen a software platform that will improve our data collection
and incident classification. This platform also will provide near miss and incident corrective action
improvements by using a plan/do/check/review process to ensure sustainability and accurate KPI
reporting. There were no lost time injuries (LTI) and zero reportable releases. IR has not experienced
a LTI for 628 days.
In 2023, we are looking forward to building on the successes we achieved in the second half of 2022.
We should have continued solid production from our existing plants, the completion of IO#9
construction in the 2nd quarter of 2023, progressing negotiations for IO#10 and beyond, and
expanding our exploration efforts.
Field exploration efforts for the targeted areas of interest for Oklahoma have particularly been focused
on future site locations and relationship developments with key targeted operators with the goal to
identify ideal locations along with understanding their water transport systems (WTS) and saltwater
disposals (SWDs).
Through this research and development, we were able to pinpoint the IO#9 location and construction
is near completion. Our sampling program will continue to gather data needed for future locations in
the field. Looking for future iodine facility locations is a top priority. We have an agreement for
collecting weekly samples on ten brine aggregation points with multiple partners. IR’s exploration
team has continued studies on SWD and manifold locations, at SWD facilities in western Oklahoma,
and we are working with potential partners in the Company’s northern area of interest. In Texas, we
have furthered our investigations by collecting weekly to monthly samples on twelve individual sites
of interest with multiple potential partners. Additionally, we are furthering our research efforts on
production wells producing from new formations as well as new aggregate points within our partner
operator’s WTS’s.
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IOFINA PLC
We have started our fourth internship program with an Oklahoma university, and it has progressed
strongly. The interns are assisting Iofina in calculating iodine values in our existing Brine Units for
royalty calculations, have assisted in a testing chemical recycling project, and they are working on
lithium sample processing techniques. This internship duration goes from May 1, 2022, to April 30,
2024 at which time we will evaluate whether to continue to fund this program.
Outlook
I have stated in previous annual reports that “The next few years look to be transformational for
Iofina”. As a Group we still believe this. While disappointed that we have been unable to add a new
IOsorb® plant each year, we believe that IO#9 will be an important new plant in a new, strategic area
and will ignite our development plans. In 2022, we were able to evidence that Iofina is a highly
attractive and profitable Group, and we shared our story with global institutional funds, family offices,
and retail investors. Our shareholder registry expanded in the financial year with the addition of new
institutional holdings. We will continue to hold roadshows and investor programs in 2023 under the
stewardship of Canaccord Genuity, the Company’s nominated adviser and broker.
In 2022 we explored options to facilitate increased investor access to Iofina with a dual listing on
NASDAQ. After reviewing the regulatory reporting requirements, ADR fees, and compliance
requirements, the Board decided the expense and additional regulatory and administrative efforts
placed on the Group’s management team would not be materially beneficial to shareholders. At last
year’s annual general meeting, the Board received approval from shareholders to buy back up to
19,185,841 ordinary shares. Whilst we have not yet used this authority, instead focusing on
reinvesting the Group’s profits into our operations, the Board will again this year seek shareholder
approval at the annual general meeting for the ability to repurchase shares as appropriate.
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 shall
continue to develop strategies to reduce our reliance on our current oil and gas partners and explore
new geographic areas. We have continued to explore potential business partnerships and
combinations that could be beneficial to shareholders. We continue to focus on calculated risks in our
approach to growth. In 2022 we implemented additional key performance indicators (“KPIs”) and will
continue to do so in 2023.
I would like to thank all of our shareholders for their continued support. We are looking forward to
appraising the excellent opportunities we are seeing as we move the Company forward in setting
continued record years.
Lance J Baller
Non-Executive Chairman
Iofina plc
24 April 2023
6
IOFINA PLC
FINANCIAL REVIEW
Summary 2022 v 2021
Fifth successive year of record revenue and EBITDA
Revenue increased by 8% from $39.0m to $42.2m
Gross profit increased by 47% from $10.7m to $15.8m
Adjusted EBITDA improved by 65% from $6.9m to $11.5m
Profit before tax increased by 96% from $5.1m to $10.0m
Net debt was reduced from $3.0m to $0.9m*
Capital investment into chemical and iodine plants was $3.1m (2021: $1.5m)
*excludes lease liabilities
Trading results
Turnover
Crystallised iodine
Derivatives
Prilled iodine
Total iodine sales
Non-iodine
Total sales
Crystallised
Iodine 85%
MT
220
221
441
2022
Sales
$m
13.3
16.3
1.8
31.4
10.8
$42.2
Crystallised
Iodine 85%
MT
411
321
732
2021
Sales
$m
12.6
15.1
2.7
30.5
8.6
$39.0
Revenue increased by 8% from $39.0m to $42.2m. A key factor driving the results was a substantial
increase in the iodine price over the first half of the year to a level that has persisted since then. The
reduction in iodine sales volumes reflects exceptionally high demand in 2021 due to restocking by
customers who had held back in 2020 due to COVID uncertainties. Although 2022 volumes were lower
turnover was nonetheless higher and gross margins were greatly improved.
Average prices per kilogram achieved for sales of crystallised iodine based on 100% iodine were $36.03
for 2021, rising to an average of $71.20 for 2022, an increase of 98%. Sales volumes at these higher
price levels were 220 metric tonnes (“MT”) compared to 411 MT for 2021, but the value of this
turnover was higher at $13.3m compared to $12.6m for 2021.
Average prices per kilogram of derivative compounds, based on total weight including non-iodine
chemicals, were $42.90, up 54% from the 2021 average of $27.94. Sales volumes of derivatives were
221 MT compared to 321 MT for 2021, but the value of turnover was higher at $16.3m compared to
$15.1m for 2021.
Non-iodine sales increased by 26% from $8.6m to $10.8m, reflecting higher volumes and led by the
specialty chemical gases business, which saw some inventory rebuilding by a major customer.
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IOFINA PLC
Gross profit improved by $5.1m (47%) to $15.8m (2021 $10.7m), representing 38% (2021 27%) of
sales. This reflected the substantial selling price increases described above, offset somewhat by mainly
inflationary cost increases of 24% for iodine production and 20% for the Iofina Chemical plant.
Crystallised iodine production was 516MT compared to 518MT for 2021, from the same five plants.
Iodine sales were split 50:50 between raw iodine and derivatives for 2022, as opposed to 56:44 for
2021.
Adjusted EBITDA improved by 65% from $6.9m to $11.5m after deducting $4.4m in SGA expenses
(2021 $3.8m) from the gross profit of $15.8m (2021 $10.7m). Operating profit after depreciation and
amortisation of $1.8m (2021 $1.7m) was $9.6m compared to $5.2m for 2021.
Release of plant acquisition accrual
An accrual balance of $0.45m relating to the acquisition of #IO2 plant is no longer considered to be
required, and has therefore been transferred to income. No claims have been made, and the period
of validity for such claims has expired.
Interest swap derivative asset
The derivative asset resulting from the swap contract described in Note 20 has been revalued as at 31
December 2022 by reference to market expectations for future SOFR rates, and an amount of $0.25m
has been credited to comprehensive income (2021 $0.07m) and included in the balance sheet.
Profit before tax
Profit before tax improved by $4.9m from $5.1m (2021) to $10.0m (2022). The improvement reflects
successful trading at substantially higher iodine selling prices, together with containment of
inflationary cost pressures.
Tax
The Group is utilising previous years’ accumulated US Federal tax losses against current profits that
would otherwise be taxable. Based on current projections the Group expects that US Federal tax will
not be payable in respect of 2023, but is likely to become payable in respect of 2024.
Capital investment
The Group invested $3.1m in capital projects and equipment (2021: $1.5m), of which $1.8m relates to
construction of the new IO#9 iodine plant in Oklahoma. Most of the balance of expenditure relates to
new projects, process improvements and replacements at the Iofina Chemical plant.
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IOFINA PLC
Cash flow
Cash started the year at $5.3m and ended $0.6m higher at $5.9m, after paying off $1.4m of the bank
term loan in accordance with the borrowing schedule and investing $3.1m in capital projects. Net debt
was reduced from $3.0m to $0.9m. Net cash inflow from operating activities was $5.6m.
Malcolm Lewin
Chief Financial Officer
Iofina plc
24 April 2023
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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 Technologies Limited, Extrac, Inc, Wyoming Sand Company LLC (which all are in gold,
sand, rock, SiO2 and gravel mining), Ultimate Investment (personal investment company) and Baller
Family Foundation, Inc. (personal family foundation) plus many others that he has founded and
successfully sold over the years. 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
10
IOFINA PLC
treatment and sustainable energy development. Dr. Bellamy has a PhD in Civil Engineering from
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 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.
11
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. 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. 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. 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. 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
per cent of global production coming from Chile (~60 per cent) and Japan (~30 per cent, including
recycled waste streams).. 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 approximately six per cent 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.
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 and the current IO#9 project which is expected to open in late Q2 2023.
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 the environmentally intensive processes of
mining iodine from ores by Chilean producers.
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.
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 within the business while focusing on our core expertise is important. Iofina Resources
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IOFINA PLC
diversifies its iodine production through multiple IOsorb® production plants with multiple brine
suppliers 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 demand 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.
Iodine prices have risen significantly in the last 24 months, exceeding $70/kg by July 2022 and
stabilising at these levels through early 2023 at the time of publication. Pricing at these levels has not
been seen 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. Iodine prices slightly
retreated in H2 2020 due to lower global demand for both 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 then significantly from H2 2021
through to H2 2022 with demand outpacing supply as global economies recovered and expanded as
COVID impacts waned.
During 2022, demand for iodine, particularly in X-ray contrast media applications, continued to
increase. Currently, iodine prices remain high versus historical levels and the range of prices is larger
than typical historical prices. Spot prices began 2022 near $50/kg and reached $70/kg and above by
mid-year. Contracted iodine prices for large customers are generally lower than spot prices, but these
also increased significantly during the year. Demand for Iofina’s iodine and iodine derivatives was
robust in 2022 and this is still the case in early 2023. We expect iodine prices to remain steady at least
through H1 2023. Whilst the iodine market has expanded in recent years, we note that additional
Chilean production coming on stream may increase overall global iodine supplies. Inflation in 2022
has remained at much higher levels than recent years and has resulted in higher costs for Iofina’s raw
materials, labour and energy.
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 goals were achieved and iodine market
conditions became more favourable, the Directors commenced the next phase of Iofina’s business
plan with the focus on growth. In early 2018, the Group’s newest iodine plant at the time, IO#7, was
completed. By expanding our operations and building IO#7, the Group has successfully lowered
overall iodine production costs with its most efficient plant at that time. The next major growth
development occurred in Q2 2019, when the Company performed an equity raise to reduce debt and
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IOFINA PLC
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 establishing new routes to growth and is investigating locations and
partnerships to expand iodine production. Currently, the Company is building IO#9 and is in
negotiations with partners on sites for IO#10. 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, although this will only be done with the correct evaluations of potential future
sites and market conditions.
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
continues to investigate the economics and the technology to have better control of 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 invested in multiple projects in 2022 and will continue to invest in areas to
expand current products and develop new products to Iofina using the Company’s core expertise.
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
2022
$’000
Year ended
31 December
2021
$,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)
$31,422
$10,776
$42,198
1,640
516
5
$30,473
$8,566
$39,039
2,580
518
5
Commentary on some of the above indicators is to be found in the Chairman’s Statement on pages 3
to 6.
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 7 to 9.
14
IOFINA PLC
Objectives
At the end of 2022 the Group had five operating IOsorb® iodine production facilities in the core area
of Northwestern Oklahoma and a sixth under construction. 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 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 late 2022, the
Group began construction on IO#9 with an expectation to complete it in late Q2 2023.
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 for the brine suppliers to realize value from a waste stream, is a key component
for existing projects and potentially for future sites. Continued efforts by our business development
and geological teams have identified numerous further expansion opportunities. The Company will
continue to evaluate and potentially execute these with current and new potential brine supply
partners, when management determines the proper timing for new sites.
Timing of future iodine production growth will be dependent on a series of factors. These include the
stability or increase of iodine prices, global demand, availability and cost of production 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. Lower oil prices can lead to lower oil production
if certain wells become uneconomical, which in turn can affect brine supplies from our partners.
Therefore, the Group is increasingly focused on evaluating alternative brine sourcing opportunities to
have better control brine supply at future sites. Whilst the Directors are focused on expanding
production capacity in the right manner, it is also important to maintain the Company’s strong balance
sheet and cash flow. Expansion in 2023 will occur with the completion of IO#9 and negotiations for
sites for 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 in 2022 at Iofina Chemical included R&D upgrades and ongoing
methyl fluoride process
improvements. In 2023, additional process upgrades and product
development projects are underway. The R&D and the sales groups continue to investigate and
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IOFINA PLC
research new opportunities for applications of our existing portfolio of products, as well as identify
and produce new halogen-based derivatives to grow this side of the business. It is also expected that
Iofina Resources’ expansion plans over the next few years will result in the need for expansion of our
customer base for our products. The Iofina Chemical sales team developed new sales channels during
the reporting period, which it will continue to expand upon, including potential direct sales of the
Group’s crystalline IOflo® iodine to new customers . Managing existing client relations and developing
new sales channels is a high priority for the sales team. To help meet growth targets and maintain high
standards, the Group expects to add new talent to the sales team in 2023.
The Group reported in 2021 that IofinaEX, the hemp seed investment, has not had any appreciable
sales and was impaired to Nil. While the Group believes these seeds are still viable for sale, there
were no recognised hemp seed sales in 2022.
Last, 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.
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, reduction of capital spent by our partners for new drilling and recompletion of
wells in our core area resulted in a decline in total amounts of brine co-produced with oil and
gas in our key areas. Current brine volume availability to existing plants is relatively steady but
could change. 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.
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IOFINA PLC
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.
Global Crises: Global crises, while rare, can impact businesses significantly. The COVID-19
pandemic was an example of such an event. Similar events in the future could have a negative
effect on the markets we serve and on the Group’s profits. For instance, 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 many other businesses. During the COVID-19 pandemic, Iofina quickly
implemented many protocols to minimize any negative impacts on the business, but these
protocols only reduce risk and cannot eliminate 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, Russia’s invasion of Ukraine is ongoing but has not directly affected Iofina’s
operations. Additional political sanctions or negative impacts to global economies as a result
of this invasion may adversely impact our business. Iofina does not have any current sales
exposure with Russia. Other geopolitical events could negatively affect the Group.
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 its operations. Although the Group intends to comply in
respect of 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
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IOFINA PLC
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. Greenhouse Gas (GHG) regulations in the USA have not
impacted Iofina’s ability to produce products it currently manufactures, however if production
allocations are reduced in the future, this would likely negatively affect Iofina’s production
output. 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 and obtained ISO 9001:2015 certification
in 2022.
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. The rising interest rate
environment implemented by central banks to combat inflation is likely at a minimum slow
down global economies or even create a recession. A significant contraction in global
economies may negatively affect demand and pricing of the Group’s goods. 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. The planned expansion of iodine
production in Chile may change the market’s current supply and demand dynamics. However,
the exact change is subject to several factors, the scale of expansion, the timing of increased
supply and the overall global demand for iodine at the time of new supplies coming onstream.
Iodine Price volatility: Iodine’s price and demand 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. Iodine prices are currently
elevated relative to historical trends. After a lull in demand during the COVID-19 pandemic,
demand for iodine rose significantly in H1 2021. Continued strong demand for iodine and
iodine incorporated products have continued through today. As a result, iodine prices rose
significantly between H1 2021 and mid-year 2022. During H2 2022 through early 2023 iodine
prices have generally stabilised.
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
18
IOFINA PLC
the needs of its customers and are of the highest quality. In 2022, 11% of revenue recognised
was attributable to one long term customer and five 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. In 2022, Iofina executed a new agreement for IO#9 with a new brine supply
partner.
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
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 and selling hemp seeds may change and evolve.
The Group closely monitors regulations across its businesses to ensure that it complies with
the relevant laws and regulations. While Iofina believes that it is compliant with all laws and
regulations, any instances of non-compliance would be brought to the attention of the
appropriate authorities as soon as possible.
Trade relationships between the USA and other areas of the world, particularly China, 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.
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IOFINA PLC
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. In
2022, the Group ended the year with more normalised iodine inventories and slightly elevated
than ideal specialty chemical derivative end products and in-process goods. These inventories
are cyclical within our business and management closely tracks these inventories along with
known and anticipated demand for products in order to maintain appropriate 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
continue to rise and will likely negatively impact debt costs. In 2022, the Group obtained
credit lines in order to support growth projects at both Iofina Chemical and Iofina Resources.
These lines carry variable interest rates.
Inflation in the USA and globally was higher in H2 2021 and throughout 2022 relative to recent
years. 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 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.
20
IOFINA PLC
Going concern
The Group has performed well in 2022, and is performing as anticipated in 2023 and generating cash.
In 2022 the Group achieved a profit before taxation of $10.0m and a net cash inflow from operating
activities of $5.6m. The markets into which the Group sells its products continue to experience strong
demand. Iofina has obtained appropriate credit facilities to fund current business growth objectives.
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
24 April 2023
21
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.
22
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.
23
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 is 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.
24
IOFINA PLC
DIRECTORS' REPORT
The Directors present their report and financial statements for the Group for the year ended 31
December 2022.
Strategic report
Included in the Strategic Report on pages 12 to 21 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
Accounting Standards, and have elected under company law to prepare the Company financial
statements in accordance with International Accounting Standards.
The financial statements are required by law and UK adopted International Accounting Standards 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.
state whether they have been prepared in accordance with UK adopted International Accounting
Standards; 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.
d.
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.
25
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 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
24 April 2023
26
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
12 to 21 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 10 and 11. The experience and
27
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 Board typically meets monthly to set the overall
direction and strategy of the Group, review operational and financial performance and advise on
management appointments (if necessary). 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 30.
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 can 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
do not represent any shareholder.
28
IOFINA PLC
The Board notes that the Independent Non-Executive Directors have received share options in the
Company. The Board does not believe the issue of options affects their independence as they are of a
modest amount and not deemed material to the individual.
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 is required, under the
Company’s articles of association, 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
including making
recommendations to the Board as to the appointment or re-appointment of the external
relationship with external auditors,
the Group’s
29
IOFINA PLC
auditors, reviewing their terms of engagement, and monitoring the external auditors’
independence, objectivity and effectiveness.
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 32.
Attendance at meetings
The Board meets regularly, typically on a monthly 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
11
11
11
9
11
10
Audit
2
Remuneration
2
-
-
2
2
2
-
-
2
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:
30
IOFINA PLC
an annual budget set by the Board with regular review of progress;
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. As required pursuant to the Company’s articles of association, 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.
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IOFINA PLC
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
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
274,400
175,275
30,000
30,000
30,000
2022
Bonus
Total $
-
109,620
30,000
25,000
304,400
200,275
-
-
-
30,000
30,000
30,000
Total
$649,295
$55,000 $704,295
Salary
109,620
260,000
191,208
30,000
30,000
30,000
$650,828
2021
Bonus
-
35,000
27,315
-
-
-
Total $
109,620
295,000
218,523
30,000
30,000
30,000
$62,315
$713,143
No pension contributions were paid on behalf of the directors in 2021 or 2022.
Directors’ and officers’ insurance is in place on a Group-wide basis.
32
IOFINA PLC
The interests of the Directors in office as at 31 December 2022 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:
31 December 2022
5,500,000
139,430
46,875
93,750
23,750
L J Baller
Dr. T M Becker
W D Bellamy
M T Lewin
J F Mermoud
All outstanding options over shares granted to Directors up to 31 December 2022 are set out in the
table below. No further options have been granted between 31 December 2022 and the date of
signing these financial statements. No options were granted in 2021 and no Directors exercised
options in 2022.
1 January 2022
5,175,000
124,430
46,875
93,750
23,750
Name
Dr T Becker
M Lewin
L Baller
Dr W Bellamy
JF Mermoud
M Fallin
Christensen
2018
Options
granted
660,000
330,000
220,000
110,000
2019
Options
granted
2020
Options
granted
242,000
266,200
165,000
181,500
165,000
82,500
165,000
82,500
-
82,500
82,500
2022
Options
granted
266,200
181,500
165,000
82,500
82,500
-
1,320,000
-
737,000
82,500
860,200
82,500
860,200
Exercise price
Lapse date
16.2p
13/06/28
21.3p
12.5p
24/07/29 15/12/30
17.6p
8/3/32
On behalf of the Board
Dr. Thomas M. Becker
Chief Executive Officer and President
24 April 2023
33
IOFINA PLC
Environmental, Social, and Governance (‘ESG’)
The Group has con(cid:415)nually maintained a philosophy and commitment to perform its opera(cid:415)ons in a
safe, responsible manner with regard to all stakeholders including, but not limited to, staff,
shareholders, customers and our communi(cid:415)es.
The Group has long applied ESG tenets even before the term ESG became commonplace. Iofina has
chosen to produce our iodine from a brine water source that is a by-product of the oil and gas industry.
By partnering with oil & gas operators, Iofina produces iodine from this brine water, and this iodine
would not be realised if Iofina was not opera(cid:415)ng its iodine manufacturing plants. Most of the world’s
iodine is manufactured from iodate deposits in ores in Chile through processes we believe are much
more nega(cid:415)vely intensive to the environment than our WET® IOsorb® technology. The Group also
manufactures specialty chemicals through the Iofina Chemical division. IC has held a long-established
business philosophy to develop its processes in aqueous-based chemistries whenever possible to
reduce the use of organic solvents. The vast majority of IC’s processes are performed in aqueous
media.
The iodine compounds the Group produces have a posi(cid:415)ve impact on society, with iodine being
essen(cid:415)al for human and animal health. Whether it is directly through the inges(cid:415)on of foods containing
iodides or for(cid:415)fied salt as a micro-nutrient to ensure proper thyroid func(cid:415)on and to s(cid:415)mulate proper
human and animal development; or by using iodine-containing compounds in medical uses, such as
iodinated X-ray contrast agents, produc(cid:415)on of pharmaceu(cid:415)cals or the use PVP-I in an(cid:415)sep(cid:415)c
applica(cid:415)ons, iodine plays many important roles in a healthy society.
Environmental
The Group is commi(cid:425)ed to minimizing its energy consump(cid:415)on and waste genera(cid:415)on. Energy use and
environmental impacts are key criteria when ordering and replacing equipment at our manufacturing
sites. As an example, Iofina Resources is undergoing a long-term ini(cid:415)a(cid:415)ve to replace some large older
blowers with more efficient units. Iofina Chemical is upgrading a process that will replace mul(cid:415)ple
reactors with a larger unit that will require less energy to produce an equivalent amount of product.
Upgrades and new processes undergo a review which comprises evalua(cid:415)ons to minimize energy use
and environmental impact.
The Group’s total energy consump(cid:415)on at our manufacturing facili(cid:415)es in 2022 was:
Electricity (kWh) 11,390,576; Natural gas (CCF) 70945; for the 1496MT of goods produced in 2022 by
the Group.
The Company is con(cid:415)nuing to develop metrics to measure the Group’s environmental impact.
Social
Health and Safety
The safety and health of Iofina’s employees is the top priority for the Group. This also extends to our
contractors, visitors, and community. Processing and crea(cid:415)ng specialty chemicals have inherent risks.
Through engineering designs, extensive training and procedures, and PPE to name a few, our culture
insists that as a group we work together to ensure everyone’s safety. We are proud of our safety record
but recognize that con(cid:415)nual improvement is always necessary as we evolve. Iofina is proud to report
that in 2022 there were zero lost (cid:415)me incidents for the Group.
34
IOFINA PLC
Iofina Lost Time Incidents
Lost Time Incidents
Incident Rate
2021
1
1.04
2022
0
0
Lost Time Incidents (‘LTIs’) are incidents where the person is unable to work the next day of the incident. Incident rate is the
number of LTIs per 200,000 hrs. worked.
Many other health and safety metrics are evaluated and correc(cid:415)ve ac(cid:415)ons performed to con(cid:415)nually
improve our systems in order to reduce incident occurrences and severity. These health and safety
matrices are rou(cid:415)nely reviewed and discussed with upper management.
Addi(cid:415)onally, Iofina Chemical is honored to have received SOCMA Chemstewards performance bronze
awards in 2021 and 2022 for Resource Management and Waste Minimiza(cid:415)on and Employee Training
respec(cid:415)vely.
Community
Iofina is commi(cid:425)ed to being a social responsible organiza(cid:415)on. Our program, Iofina Gives Back, is an
employee-driven program designed to support our local communi(cid:415)es. Some of the program’s
ini(cid:415)a(cid:415)ves include the dona(cid:415)on of items and funds for disaster relief, local schools, toy/food drives,
and sponsorships that benefit first responder equipment and STEM scholarships.
Addi(cid:415)onally, for many years, Iofina Resources has partnered with Northwestern Oklahoma State
University and the OCAST Intern Partnership Program, which is designed to advance science and
technology opportuni(cid:415)es and provide experience and educa(cid:415)onal opportuni(cid:415)es for undergraduate
students. Mul(cid:415)ple students involved in these internships with Iofina, have gone on to achieve
advanced level science degrees.
Diversity
Iofina is an Equal Opportunity Employer and all employment decisions at Iofina are based on individual
qualifica(cid:415)ons, par(cid:415)cular job responsibili(cid:415)es, and business needs without regard to race, color, religion,
na(cid:415)onal origin, age, gender, disability or any other status protected by laws where we operate. A
culture of respect at Iofina is our commitment to all our employees and we demand that our team
treats our fellow workers, and business partners in a professional and non-discriminatory manner.
Historically, the job applicants that Iofina receives tend to underrepresent minori(cid:415)es and females
when compared to the general popula(cid:415)on. Iofina is inves(cid:415)ga(cid:415)ng ways to find a more diverse pool of
job applicants.
Governance
The following are summaries of some of Iofina’s Governance data and prac(cid:415)ces. Corporate policies
are reviewed by the Board.
Total Board
Members
%Male
%Female
%Non-
executive
%
Executive
CEO/Chairman
separate roles
Board of
Directors
6
83%
17%
67%
33%
Yes
35
IOFINA PLC
The Group has adopted the QCA Corporate Governance Code
The Group has adopted several policies including but not limited to:
o Whistleblowing Policy
o An(cid:415)-Fraud Policy
o An(cid:415)-Corrup(cid:415)on and Bribery Policy
o Share Dealing Code
o AIM Rules Compliance Policy
Further detail regarding Corporate Governance prac(cid:415)ces can be found on pages 22 and 24 of this
report.
36
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 2022 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 Accounting Standards.
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 2022 and of the Group’s profit and cash flows for the
year then ended;
the Group and Parent Company financial statements have been properly prepared in
accordance with UK adopted International Accounting Standards; 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
detailed
have
Management
consolidated cash flow forecasts incorporating
all entities within the Group covering the period
to 31 December 2024. These are based on their
expectation of future costs, including budgeted
operating and capital expenditure on all of the
group’s operating plants
licence areas and
expectations of future iodine production levels
and commodity price.
Key observations
The cash flow forecasts 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.
In reviewing the cash flow forecasts, we
separately sensitised the commodity price to
determine the maximum the price of iodine
37
IOFINA PLC
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
could fall by, assuming a constant volume, 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 66% in 2023
and 83% in 2024 in order for EBITDA to be Nil for
both years of the forecasts. Given the price of
Iodine has been increasing since 2018, this is not
considered likely.
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 of the
Group;
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.
We have further sensitised the demand for
crystallised iodine, reducing it to Nil. The results
of this still showed a positive EBITDA for the
group as a result of the flex in variable costs.
Obtaining post year end management
information and comparing these to
forecasts to assess whether budgeting is
reasonable and the 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
of the Company and the Group, their activities, the accounting processes and controls, and the
38
IOFINA PLC
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. 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
fundamental to the financial statements and a
systematic error in the calculation could lead to
a material error.
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 and assessing the
design effectiveness of related key
controls.
We tested the accuracy and occurrence
of revenue by selecting a sample of
items from the Group’s accounting
system and tracing them to supporting
documentation.
We audited the occurrence of revenue
by consideration of our testing in trade
receivables in conjunction with using
data analytics software. This was used
39
IOFINA PLC
We therefore identified the risk over the cut off
of revenue as a significant risk and also
considered accuracy and occurrence assertions.
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.
of
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 recognised on an
appropriate basis.
Valuation and Impairment review of property
plant and equipment
Our audit work included, but was not restricted
to:
Under International Accounting Standard 36
‘Impairment of Assets’ (IAS 36), companies are
is any
required to assess whether there
40
We
reviewed
Management’s
assessment of forecasted cash flows
and challenged significant movements
IOFINA PLC
indication that an asset may be impaired at
each reporting date.
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,
trends, appropriateness of
market
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.
Property, plant and equipment are a significant
balance in the financial statements with a
combined net book value of $20.6m (2021 -
$19.1m). The balance is primarily comprised of
the IOSorb plants, equipment and machinery
and construction in progress.
The estimated recoverable amount of these
balances is subjective due to the inherent
uncertainty
forecasting and
probability of the related future cash flows.
involved
in
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 of 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; and
• 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.
Valuation of Inventory
Inventory primarily consists of
iodine and
iodine derivatives. Inventory should be held at
the lower of cost and net realisable value.
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,
41
IOFINA PLC
The net realisable value is the estimated selling
price in the ordinary course of business less any
applicable selling expenses. As at 31 December
2022, the inventory is valued at $10.2m (2021 -
$6.3m). There is a risk that the carrying value in
the Group accounts
is higher than the
recoverable amount and therefore materially
misstated. Further, there is the added risk of
the complexity of the measurement of the costs
of conversion of the
inventory and the
estimates and judgements around this.
We therefore
identified the valuation of
inventory as a key audit matter, which was one
of the most significant assessed risks of material
misstatement.
inventory
where they observed an
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
and
Impairment
Valuation
review of
investments in subsidiaries and intercompany
balances
Due to the material size of the investments in,
and loans to, the subsidiaries the directors
should critically consider if any indicators of
impairment exist in relation to the balances.
The estimated recoverable amount of these
balances is subjective due to the inherent
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
considered the current performance of
the subsidiary entities.
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
42
IOFINA PLC
uncertainty
profitability of the subsidiaries.
involved
in
forecasting
the
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
Significant management
and
estimation uncertainty is involved in this area,
where the primary inputs are:
• Estimating cash flow forecasts;
• Selecting an appropriate assumptions such as
growth rate and discount rate.
We therefore
identified the valuation of
investments in subsidiaries and intercompany
balances as a key audit matter, which was one
of the most significant assessed risks of material
misstatement.
movements mentioned above in the
Group’s key assumptions, no potential
impairment was identified.
We obtained and
reviewed
the
Directors’ 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 ‘Impairment
of Assets’.
We
reviewed
the 2022
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.
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 no
impairments are required, in addition to the
impairment of IofinaEX, Inc in a prior year.
after
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.
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.
43
IOFINA PLC
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 $501,500 (2021: $389,000).
Parent
We determined materiality for the
financial statements as a whole to
be $374,000 (2021: $311,200).
How we determine it
For 2022 it is based on one of the
key indicators, being 5% of profit
before tax for the Group (2021: 1%
of revenue).
As the Parent is a holding company,
materiality was based on 1% of
gross assets.
Rationale for
benchmarks applied
We believe 5% of profit before tax to be the most appropriate
benchmark given that the group’s performance in the past few years has
been steadily increasing.
Performance
materiality
Specific materiality
Reporting threshold
$280,000 (2021: $233,400)
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:
$376,000 (2021: $291,750)
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.
$19,000 (2021: $15,560)
$25,000 (2021: $19,450)
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
44
IOFINA PLC
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 25, 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.
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.
45
IOFINA PLC
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. 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 reports from the regulators, including correspondence with
SOCMA (Society of Chemical Manufacturers and Affiliates), DEA (Drug Enforcement Administration)
and OSHA (Occupational Safety & Health Administration), review of correspondence with legal
advisors, enquiries of management and review of internal audit committee reports 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.
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.
46
IOFINA PLC
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.
Colin Wright
(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
24 April 2023
47
IOFINA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Revenue
Cost of sales
Gross profit
Administrative expenses
Depreciation and amortisation
Operating profit
Other income/(expense):
Release of plant acquisition accrual
Paycheck Protection Program loans forgiven
Fair value loss on investments in equity instruments
designated as fair value through profit and loss
Net other income
Profit before finance expense
Finance income
Interest payable
Interest swap derivative asset
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
Adjusted EBITDA:
Profit before finance expense
Depreciation and amortisation
EBITDA
Net other income
Adjusted EBITDA
Year ended
31 December
Note
2022
$’000
Year ended
31 December
2021
$,000
3
4
4
4
12
7
6
20
4
8
42,198
(26,369)
15,829
(4,361)
(1,824)
9,644
450
–
–
450
10,094
13
(326)
249
10,030
(2,165)
$7,865
39,039
(28,307)
10,732
(3,789)
(1,731)
5,212
–
1,090
(900)
190
5,402
17
(368)
69
5,120
4,066
$9,186
9
9
$0.041
$0.040
$0.048
$0.048
2022
$’000
10,094
1,824
11,918
(450)
$11,468
2021
$,000
5,402
1,731
7,133
(190)
$6,943
All activities are classed as continuing.
The accompanying notes form part of these financial statements.
48
IOFINA PLC
CONSOLIDATED BALANCE SHEET
Assets
Non-current assets
Intangible assets
Goodwill
Property, plant and equipment
Deferred tax asset
Term loan – interest swap asset
Total non-current assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Current liabilities
Trade and other payables
Term loan – due within one year
Lease liabilities
Total current liabilities
Non-current liabilities
Term loan – due after one year
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
2022
$’000
31 December
2021
$’000
Note
10
11
12
25
20
13
15
17
18
20
19
20
19
23
24
283
3,087
20,557
1,932
249
26,108
10,184
10,487
5,927
26,598
$52,706
7,538
1,429
101
9,068
5,357
309
5,666
$14,734
3,107
60,687
2,153
(22,031)
(5,944)
$37,972
$52,706
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
The financial statements on pages 48 to 82 were approved and authorised for issue by the Board and were
signed on its behalf on 24 April 2023.
Dr. Thomas M. Becker - Chief Executive Officer and President
The accompanying notes form part of these financial statements. Company number 05393357
49
IOFINA PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to owners of the parent
Share
capital
Share
premium
$’000
$’000
Share-
based
payment
reserve
$’000
Retained
losses
$’000
Foreign
currency
reserve
$’000
Total
equity
$’000
Balance at 1 January 2021
$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
9,186
–
–
–
–
120
120
9,186
9,186
Balance at 31 December 2021
$3,107
$60,687
$2,007
$(29,896)
$(5,944)
$29,961
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
–
–
–
–
–
–
–
–
146
146
–
–
–
–
7,865
7,865
–
–
–
–
146
146
7,865
7,865
Balance at 31 December 2022
$3,107
$60,687
$2,153
$(22,031)
$(5,944)
$37,972
50
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
Revaluation of derivative asset
Finance expense
Finance income
Tax paid
Operating cash inflow before changes
in working capital
Changes in working capital
Increase in trade and other receivables
(Increase)/decrease in inventories
Increase in trade and other payables
Net cash inflow from operating activities
Cash flows from investing activities
Interest received
Acquisition of property, plant and equipment
Net cash outflow from investing activities
Cash flows from financing activities
Term loan repayments
Revolving loan facility net payments
Interest paid
Lease payments
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
51
Year ended
31 December
2022
$’000
Year ended
31 December
2021
$’000
10,030
1,643
180
146
–
–
(249)
327
(13)
(31)
12,033
(4,329)
(3,888)
1,737
5,551
13
(3,087)
(3,074)
(1,429)
–
(311)
(74)
(1,814)
665
5,262
$5,927
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
IOFINA PLC
COMPANY BALANCE SHEET
31 December
2022
$’000
31 December
2021
$’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
28
15
17
18
23
24
17,199
17,199
20,112
2
94
20,208
$37,407
17,199
17,199
20,792
3
163
20,958
$38,157
152
152
137
137
3,107
60,687
2,153
(22,933)
(5,759)
37,255
$37,407
3,107
60,687
2,007
(22,022)
(5,759)
38,020
$38,157
The loss for the financial year dealt with in the financial statements of the parent company was
$911k (2021 loss $873k).
The financial statements on pages 48 to 82 were approved and authorised for issue by the Board and
were signed on its behalf on 24 April 2023
Dr. Thomas M Becker
Chief Executive Officer and President
Company number: 05393357
52
IOFINA PLC
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to equity holders of the parent
Share
capital
Share
Share based
Retained
premium
payment
losses
$’000
$’000
reserve
$’000
$’000
Foreign
currency
reserve
$’000
Total
equity
$’000
Balance at 1 January 2021
$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
249
(873)
(873)
–
–
–
–
–
120
–
120
(873)
(873)
Balance at 31 December 2021
$3,107
$60,687
$2,007
$(22,022)
$(5,759)
$38,020
Transactions with owners
Share-based expense
Total transactions with
owners
Loss attributable to owners
of the parent
Total comprehensive income
for the year
–
–
–
–
–
–
–
–
146
146
–
–
–
–
(911)
(911)
–
–
–
–
146
146
(911)
(911)
Balance at 31 December 2022
$3,107
$60,687
$2,153
$(22,933)
$(5,759)
$37,255
53
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 Accounting 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:
-
-
-
-
-
IFRS17 (Insurance Contracts)
IAS1 Amendment (Classification of Liabilities)
IAS1 Amendment (Disclosure of Accounting Policies)
IAS8 Amendment (Definition of Accounting Estimates)
IAS12 Amendment (Deferred Tax related to Assets and Liabilities)
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.
54
IOFINA PLC
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
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.
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.
55
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.
56
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 1.2334
in 2022 (2021 1.3756), and at 31 December 2022 was 1.209 (2021: 1.351).
57
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
58
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 2022 and 2021, 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.
59
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
60
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.
61
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.
62
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:
a.
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 makes 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. Cash flow projections over the next five
years were used and a discount rate of 10.83% was applied. 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. Management applies the accounting polices set out in Note 1o) Inventories to determine the
carrying value of raw materials, work in progress and finished goods (Note 13). Based on historical
experience and current market intelligence, judgements are made as regards net realisable value,
which may include but are not limited to obsolescence, usage in alternative formulations,
production needs, market demand, costs to complete production, condition, regulatory
requirements and limitations, and allocations of production overheads to the cost of work in
progress and finished goods. Based on these assessments no requirement for provisions against
the carrying value of inventories was identified.
d. The carrying amount of the parent company’s investment in its subsidiaries of $37.3m (2021:
$38.0M) has been evaluated for impairment. The investment amounts include debts due from
subsidiaries of $20.1m (2021 $20.8m). 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 $37.3m (2021: $38.0M) compares to carrying
amounts of the subsidiaries’ net assets, excluding loans from the parent company, of $38.0m
(2021: $29.9m). An assessment has been made of the present values of the future cash flows
63
IOFINA PLC
related to the operating activities of the subsidiaries to determine whether any impairment losses
should be recognised. The assessment took into account cash flow projections of the subsidiaries
over the next five years, and applied a discount rate of 10.83%. The Group has concluded that no
impairment provision is required.
e.
In accordance with IAS12 and in light of the Group’s recent much improved profitability, and
therefore its likely utilisation of its accumulated US Federal tax losses in the foreseeable future, a
deferred tax asset reflecting the value of those losses at a tax rate of 21% was set up in the balance
sheet as of 31 December 2021 and credited to tax in the profit and loss account. This asset is being
amortised to the profit and loss account in line with reductions in tax payable resulting from
utilisation of the losses. Management considers this treatment continues to be appropriate in light
of the Group’s ongoing profitability. The deferred tax asset balance at 31 December 2022 was
$1.9m (see Notes 8 and 25).
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.
Assets
Halogen Derivatives and Iodine
Total
Liabilities
Halogen Derivatives and Iodine
Total
31 December
2022
$
31 December
2021
$
52,706
$52,706
14,734
$14,734
44,445
$44,445
14,484
$14,484
64
IOFINA PLC
2. Segment reporting (continued)
a. 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.
Assets
UK
USA
Total
Liabilities
UK
USA
Total
Revenue
North America
Asia
South America
Europe
Other
Total
31 December
2022
$’000
31 December
2021
$’000
96
52,610
$52,706
153
14,581
$14,734
19,822
17,960
3,588
783
45
$42,198
166
44,279
$44,445
137
14,347
$14,484
19,858
15,851
3,148
156
26
$39,039
c. Significant customers – in 2022 Iofina Chemical had six customers in excess of 5% of sales (2021
five customers). 2022 percentages were 11%, 8%, 7%, 7%, 6%, 6% (2021 percentages were 10%, 9%,
7%, 7%, 6%).
4. Profit before taxation
Profit before taxation is stated after charging:
Depreciation expense
Amortisation expense
Year ended
31 December
2022
$’000
1,643
180
Year ended
31 December
2021
$’000
1,551
180
Other:
Annual audit fees for audit of parent company and
consolidated financial statements
Fees payable to the company’s auditor for other services
65
–
82
8
65
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
2022
$’000
Year ended
31 December
2021
$’000
12,872
657
378
12,462
$26,369
14,912
782
359
12,254
$28,307
Year ended
31 December
2022
$’000
Year ended
31 December
2021
$’000
2,955
146
254
655
169
(34)
216
$4,361
2,582
120
257
554
75
(19)
220
$3,789
Research and development expenses recognised during the period were $237k (2021: $241k), 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
Wages and salaries
Social security costs
Year ended
31 December
2022
Number
Year ended
31 December
2021
Number
80
14
1
95
81
14
1
96
Year ended
31 December
2022
$’000
7,245
1,120
$8,365
Year ended
31 December
2021
$’000
6,454
1,057
$7,511
66
IOFINA PLC
5. Staff numbers and costs (continued)
Of the total staff costs above, $5,600k (2021: $5,120k) is included within cost of sales and $2,765k
(2021: $2,391k) 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 key management cost
Year ended
31 December
2022
$’000
1,116
85
$1,201
Year ended
31 December
2021
$’000
941
108
$1,049
Included within wages and salaries above is $309k (2021: $295k) in respect of the highest paid
director. No options were exercised by a director in 2022 (2021 Nil).
6.
Finance expense
Term loan interest
Revolving loan facility interest
IFRS16 lease interest
Total finance expense
7.
Finance income
Interest income
Year ended
31 December
2022
$’000
Year ended
31 December
2021
$’000
310
–
16
$326
345
27
(4)
$368
Year ended
31 December
2022
$’000
13
$13
Year ended
31 December
2021
$’000
17
$17
67
IOFINA PLC
8.
Taxation
Current tax
Deferred tax (Note 25)
Tax reconciliation:
Profit on ordinary activities before tax
Tax at UK income tax rate of 19% (2021: 19%)
Effects of:
Temporary differences
Permanent differences
UK losses not recognised
Difference in tax rates US/UK
Tax charge not recognised
Losses carried forward recognised as deferred tax asset
Current tax paid
Total tax charge/(credit)
Year ended
31 December
2022
$’000
Year ended
31 December
2021
$’000
31
2,134
$2,165
10,030
1,905
(149)
10
165
203
–
–
31
$2,165
–
(4,066)
$(4,066)
5,120
973
(110)
(32)
162
105
(1,097)
(4,066)
–
$(4,066)
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 2022 these losses are estimated to be approximately $9.2 million
(2021: $19.4 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 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% was set up in the balance sheet
as of December 2021 and credited to tax in the consolidated statement of income. This asset is being
adjusted to the consolidated statement of income in line with reductions in tax payable resulting from
utilisation of the losses.
9.
Earnings per share
The calculation of earnings per ordinary share is based on the profit after tax attributable to
shareholders of $7,865k (2021 profit $9,186k) and the weighted average number of ordinary shares
outstanding of 191,858,408 (2021: 191,858,408). After including the weighted average effect of
dilutive share options of 4,186,203 (2021: 1,232,450) the diluted weighted average number of
ordinary shares outstanding was 196,044,611 (2021 193,090,858).
68
IOFINA PLC
10. Intangible assets (Group)
Details of intangible assets are set out below:
Intangible assets
Cost
At 1 January 2021
At 31 December 2021 &
2022
Accumulated amortization
At 1 January 2021
Charge for the year
At 31 December 2021
Charge for the year
At 31 December 2022
Carrying amounts
At 31 December 2020
At 31 December 2021
At 31 December 2022
WET® patent
Customer
relationships
$’000
$’000
Patent
portfolio
$’000
EPA
registrations
$’000
Total
$’000
2,700
$2,700
2,057
180
2,237
180
$2,417
$643
$463
$283
661
$661
661
-
661
–
$661
–
–
–
187
$187
212
-
187
–
$187
–
–
–
271
3,819
$271
$3,819
271
-
271
-
$271
–
–
–
3,176
180
3,356
180
$3,536
$643
$463
$283
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 1.5 years
69
IOFINA PLC
11. Goodwill (Group)
Carrying amounts
At 31 December 2020, 31 December 2021 and 31 December 2022
$’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 36 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 10.83% 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 $7.9m between the value in use of
the business net of other assets of $34.3m and the carrying value of $26.4m, comprising goodwill of
$3.1m, other intangible assets of $0.3m, and net business trading assets of $23.0m. In order for the
value in use to equal the carrying value it would be necessary for the discount rate to rise to 14.0% or
the long term growth rate to be 4.25% negative or projected EBITDA to be lower by 20.4%. Based on
the results of this impairment testing management are satisfied that a reasonably possible change in
assumptions would not lead to an impairment.
70
IOFINA PLC
12. Property, plant and equipment (Group)
Exploration
and
Evaluation
Assets
Montana
Atlantis
Field
$’000
236
(236)
–
–
–
–
–
–
–
–
–
–
–
–
Freehold
Land
$’000
Buildings
$’000
Right of
use
$’000
Equipment
and
Machinery
$’000
Construction
in Progress
$’000
Total
$’000
209
–
–
–
$209
–
–
$209
–
–
–
–
–
–
1,730
276
38
–
$2,044
(37)
18
$2,025
492
57
–
$549
61
$610
355
–
415
(18)
$752
–
–
$752
205
96
–
$301
104
$405
$150
$451
$346
25,064
1,124
168
(80)
$26,276
103
230
$26,610
8,751
1,398
(80)
$10,069
1,479
$11,548
$16,313
$16,207
$15,062
636
(1,164)
1,279
–
$751
(113)
2,885
$3,524
28,230
–
1,900
(98)
$30,032
(46)
3,133
$33,119
–
–
–
–
–
–
9,448
1,551
(80)
$10,919
1,644
$12,563
$636
$751
$3,524
$18,782
$19,113
$20,557
$236
–
–
$209
$209
$209
$1,238
$1,495
$1,415
Cost
At 1 January 2021
Transfers
Additions
Disposals
At 31 December 2021
Transfers
Additions
At 31 December 2022
Accumulated
depreciation
At 1 January 2021
Charges for the year
Disposals
At 31 December 2021
Charges for the year
At 31 December 2022
Carrying amounts
At 31 December 2020
At 31 December 2021
At 31 December 2022
Right-of-use assets
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 was
capitalised as an addition in respect of future rentals, in accordance with IFRS 16. Liabilities for future
payments are shown in Note 19.
Release of plant acquisition accrual
An accrual balance of $0.45m relating to the acquisition of #IO2 plant is no longer considered to be
required, and has therefore been transferred to income. No claims have been made and the period of
validity for such claims has expired.
71
IOFINA PLC
13. Inventories
Group
Raw materials
Work in progress
Finished goods
31 December
2022
$’000
31 December
2021
$’000
7,231
2,895
58
$10,184
4,487
1,753
56
$6,296
At year end, there were no provisions against the carrying value of inventories (2021: nil). During the
year, the cost of inventories recognised as expense and included in ‘cost of sales’ amounted to
$25,334k (2021: $27,165k).
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 no other borrowings currently drawn (see Note 20).
Financial assets and liabilities
Group
2022
Cash and cash equivalents
Trade receivables
Interest rate swap asset
Trade payables
Accrued liabilities
Lease liabilities
Term loan
2021
Cash and cash equivalents
Trade receivables
Trade payables
Accrued liabilities
Lease liabilities
Term loan
Loans and
receivables at
amortised cost
$’000
Financial
liabilities at
amortised cost
$’000
Investment and
swap liability at
fair value
$’000
Total
$’000
249
5,927
9,950
249
$16,126
2,510
5,028
410
6,785
$14,733
5,262
5,653
$10,915
1,521
4,281
468
8,214
$14,484
5,927
9,950
5,262
5,653
2,510
5,028
410
6,785
1,521
4,281
468
8,214
72
IOFINA PLC
14. Financial instruments (continued)
Company
2022
Cash and cash equivalents
Other receivables
Due from subsidiaries
Accruals
2021
Cash and cash equivalents
Other receivables
Due from subsidiaries
Accruals
Loans and
receivables at
amortised cost
$’000
Financial
liabilities at
amortised cost
$’000
94
2
20,112
163
3
20,792
153
137
Total
$’000
94
2
20,112
$20,208
153
$153
163
3
20,792
$20,958
137
$137
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 2022, 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 (if drawn) 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 $94k (GBP £78k) 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
73
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:
Up to 3
months
$’000
2,510
2,059
19
357
$4,944
Between 3
and 12
months
$’000
Between 1
and 2 years
$’000
Between 2
and 6 years
$’000
–
2,969
82
1,071
$4,122
–
–
260
1,429
$1,689
–
–
49
3,929
$3,978
Up to 3
months
$’000
1,521
1,476
2
357
$3,356
Between 3
and 12
months
$’000
Between 1
and 2 years
$’000
–
2,804
56
1,071
$3,931
–
–
102
1,429
$1,531
Between 2
and 6 years
$’000
–
–
309
5,357
$5,666
Group
At 31 December 2022:
Trade payables
Accrued liabilities
Lease liabilities
Term loan
Group
At 31 December 2021:
Trade payables
Accrued liabilities
Lease liabilities
Term loan
Commodity risk
The Group is exposed to movements in the price of raw iodine. Sales of iodine based products were
$31,422k (2021: $30,473k). The effects of changes in the price of iodine on 2022 revenue and profits
are set out in the Financial Review on pages 7 to 9. Iodine is produced internally and is the most
significant cost component for iodine based products.
74
IOFINA PLC
15. Trade and other receivables
Group
Trade receivables
Prepayments and other receivables
Company
Prepayments and other receivables
31 December
2022
$’000
9,950
537
$10,487
31 December
2021
$’000
5,653
505
$6,158
31 December
2022
$’000
31 December
2021
$’000
2
$2
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.
17. Cash and cash equivalents
Group
Cash in US Dollar accounts
Cash in GB Pound Sterling accounts
Company
Cash in GB Pound Sterling accounts
31 December
2022
$’000
31 December
2021
$’000
5,833
94
$5,927
5,099
163
$5,262
31 December
2022
$’000
31 December
2021
$’000
94
$94
163
$163
75
IOFINA PLC
18. Trade and other payables
Group
Trade payables
Accrued expenses and deferred income
Company
Accrued expenses
31 December
2022
$’000
31 December
2021
$’000
2,510
5,028
$7,538
1,521
4,281
$5,802
31 December
2022
$’000
31 December
2021
$’000
153
$153
137
$137
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 bank facilities described in Note 20, the Group and Company have not pledged
any assets as collateral for any liabilities or contingent liabilities.
19. Lease liabilities
Lease liabilities – current
Lease liabilities – non-current
Movements:
Opening balance
Payments
Lease extension liabilities
Interest accrued
Adjustments
31 December
2022
$’000
31 December
2021
$’000
101
309
$410
58
410
$468
2022
$’000
2021
$’000
468
(74)
–
16
–
$410
186
(110)
405
(4)
(9)
$468
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.
76
IOFINA PLC
20. Term loans and Revolving loan facility
At 1 January 2021
Term loan instalment repayments
Revolving loan facility net payments
At 31 December 2021
Term loan instalment repayments
At 31 December 2022
Due within one year
Due after one year
Term loan
$’000
Revolving
loan facility
$’000
$9,643
(1,429)
–
$8,214
(1,429)
$6,785
$1,429
$5,357
$2,718
–
(2,718)
–
–
–
–
–
The above bank facilities, with First Financial Bank of Ohio, are fully secured by fixed and floating
charge and the principal terms are:
Term loan
a) The term loan balance of $6.8m (2021 $8.2m) relates to a $10.0m loan drawn down in September
2020 and repayable in full by equal monthly instalments over the seven years to 30 September 2027.
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 the one month Secured Overnight
Financing Rate (“SOFR”), subject to a minimum SOFR rate of 1.00%. Repayment of all or part of the
loan may be made at any time without penalty.
Revolving loan facility
b) The revolving loan facility is for $6.0m over the period to September 2024, and may be drawn and
repaid in variable amounts at the Group’s discretion. 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 2.4% above SOFR, subject to a minimum SOFR rate of 1.00%.
Additional facilities
c) There are further facilities for capital projects totalling $4.36m that are available but have not yet
been drawn.
Swap contract
d) The derivative asset resulting from the swap contract described above as at 31 December 2022 has
been revalued by reference to market expectations for future SOFR rates, and an amount of $249k
has been credited to comprehensive income (2021 $69k) and included in the balance sheet. During
the year the swap contract generated a net reduction of interest otherwise payable of $23k.
77
IOFINA PLC
21. Net debt
Net debt excludes lease liabilities totalling $410k (2021 $468k) and is made up as follows:
Term loan
Cash and cash equivalents
Net debt at 31 December
23. Share capital
Authorised:
Ordinary shares of £0.01 each
Allotted, called up and fully paid:
Ordinary shares of £0.01 each
2022
$’000
(6,785)
5,927
$(858)
2021
$’000
(8,214)
5,262
$(2,952)
31 December
2022
31 December
2021
- number of shares
- nominal value
1,000,000,000
£10,000,000
1,000,000,000
£10,000,000
- number of shares
- nominal value
191,858,408
£1,918,584
191,858,408
£1,918,584
There was no change in share capital or share premium in 2022.
24. Share based payments
On 9 March 2022 options over 1,196,700 ordinary shares of the Company, representing 0.62% of the
Company’s issued share capital at that date, were granted to directors and key management
personnel. The options are exercisable at the closing share price on 9 March 2022 of 17.6p per share,
with 50% vesting after one year on 9 March 2023 and 50% vesting after two years on 9 March 2024.
The options expire ten years from the date of grant.
The above options were valued using the Black Scholes model and the exercise price of 17.6p, an
expected term of 5.75 years, historical volatility of 74.88% and a risk free rate of 1.9%. The resulting
valuation of $179,658 is being amortised over the vesting periods, and $109,591 has been charged as
an expense in respect of the period from 9 March 2022 to 31 December 2022.
No options lapsed or were forfeited or exercised during the year. In 2021 a total of 1,378,250 options
either lapsed or were forfeited. There were 5,000,400 total options outstanding at 31 December 2022,
representing 2.61% of shares in issue.
78
IOFINA PLC
24. Share based payments (continued)
Options granted to directors and key employees and outstanding at 31 December 2022 are as follows:
Date of Grant
13 June 2018
13 June 2018
25 July 2019
25 July 2019
16 December 2020
16 December 2020
9 March 2022
9 March 2022
Weighted average
Number
of
Options
Vesting
Date
13 June 2019
880,000
13 June 2020
880,000
25 July 2020
451,000
25 July 2021
451,000
570,850 16 December 21
570,850 16 December 22
9 March 2023
598,350
9 March 2024
598,350
5,000,400
Share
Price
£
0.162
0.162
0.213
0.213
0.125
0.125
0.176
0.176
£0.17
Exercise
Price
£
0.162
0.162
0.213
0.213
0.125
0.125
0.176
0.176
£0.17
Exercise
Price
2022
$
0.20
0.20
0.26
0.26
0.15
0.15
0.21
0.21
$0.20
Exercise
Price
2021
$
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 2022 was 7.1 years
(2021 7.5 years).
Exercise prices shown in USD are based on the US Dollar/Pounds Sterling exchange rate at 31
December 2022 of 1.21 (2021 1.351). Options outstanding at 31 December 2022 expire the earlier of
ten years from grant date or 90 days after the termination of service to the Company.
2022
Number of
Options
Weighted
average
exercise price
£
$
2021
Number of
Options
Weighted
average
exercise price
£
$
3,803,700
1,196,700
-
-
5,000,400
£0.16 $0.22
£0.18 $0.21
-
-
£0.17 $0.20
-
-
5,181,950
–
(985,000)
(393,250)
3,803,700
3,232,850
-
-
570,850
3,803,700
£0.21 $0.28
£0.30 $0.41
£0.17 $0.23
£0.16 $0.22
£0.17 $0.23
3,457,250
(985,000)
(261,250)
1,021,850
3,232,850
£0.19
–
£0.30
£0.16
£0.16
£0.21
£0.30
£0.17
£0.16
£0.17
$0.26
–
$0.41
$0.22
$0.22
$0.28
$0.41
$0.23
$0.22
$0.23
Options outstanding
At 1 January
Granted
Lapsed
Forfeited
At 31 December
Options exercisable
At 1 January
Lapsed
Forfeited
Vested
At 31 December
79
IOFINA PLC
24. Share based payments (continued)
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
2022
$’000
31 December
2021
$’000
2,007
146
-
$2,153
2,136
120
(249)
$2,007
2022
$’000
2021
$’000
At 1 January
Prior years US Federal tax losses available for offset against
future US Federal taxable profits (see note 8)
Prior years tax losses utilized against US Federal tax liability
(see Note 8)
At 31 December
4,066
–
(2,134)
–
4,066
–
$1,932
$4,066
26. Related party transactions
Transactions between group companies were as follows:
Iofina Resources to/(from) Iofina Chemical:
Crystallised iodine sales
Expenses recharged (net)
Iofina Plc to/(from) Iofina Resources:
Management fee
Funding payments
Expenses recharged
Iofina Plc to/(from) Iofina Chemical:
Management fee
Expenses recharged
2022
$’000
2021
$’000
22,115
(200)
50
(750)
(7)
50
(22)
16,059
(903)
50
(1,000)
(2)
50
(19)
In both 2021 and 2022 all iodine produced by Iofina Resources was sold to Iofina Chemical.
Additional related party transactions with directors, who are considered to be key management
personnel, are set out in the Corporate Governance Statement on page 27. Option grants as described
in note 24 are to employees and Directors.
80
IOFINA PLC
26. Related party transactions (continued)
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 $38.0
million as at 31 December 2022 (2021: $30.0 million).
28. Subsidiary undertakings
Investment in subsidiaries
Company
Balance at 31 December 2020, 2021 and 2022
Due from subsidiaries
Company
At 1 January
Management fees
Funding from subsidiaries
Expenses recharged to Plc
At 31 December
Investment in
subsidiaries
$’000
$17,199
2022
$’000
2021
$’000
20,792
100
(750)
(30)
$20,112
21,712
100
(1,000)
(20)
$20,792
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 in 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
81
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 PLC
28. Subsidiary undertakings (continued)
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 2022 the Group had capital commitments amounting to approximately $2m in
respect of completion of construction of #IO9 plant.
30. Post balance sheet events
There were no post balance sheet events.
31. Contingent liabilities
The Group considers that a contingent liability exists in respect of overdue interest on amounts that
may be due in relation to certain iodine related property rights. The theoretical exposure is estimated
at approximately $300k, but past experience suggests that amounts actually paid will be a relatively
small proportion of that amount.
32. Ultimate controlling party
There is no ultimate controlling party of the Group.
82
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.
83
IOFINA PLC
84
improve
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 is essential for life and industry.
Iodine compounds
imaging
contrast in the body when used with CT
scans, MRI's and X-rays to help doctors
diagnose patients more effectively. The
use of contrast
is thought to have
revolutionised diagnostic medicine and is
subsequently the reason contrast material
is the largest single use of Iodine worldwide.
Iodine compounds are added to cosmetics
products for the prevention of growth and
transfer of harmful bacteria.
Iodine formulations protect dairy cows and
humans from
infections that can be
transferred through milk.
Iodine compounds are used to manufacture
for
high-tech LCD displays allowing
superior image quality.
Iodine derivatives are used to produce
many essential pharmaceuticals which
provide doctors with powerful new drugs
to fight diseases.
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.
Iodine is supplemented to table salt thereby
insuring adequate daily intake of this vital
micro nutrient.
Insufficient iodine causes Iodine Deficiency
Disorder (IDD). IDD has been medically
proven
cretinism, goiter
(enlargement of the thyroid gland) and
depressed intellectual function in children
and adults which affects more than
600 million people worldwide.
Iodine is an essential element touching our
lives everyday.
cause
to
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