Metal Powder Works Inc.
Annual Report - 31 December 2024
Metal Powder Works Inc.
Directors' report
31 December 2024
1
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Metal Powder Works Inc. (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 31 December 2024.
Directors
The following persons were directors of Metal Powder Works Inc. during the whole of the financial year and up to the date of
this report, unless otherwise stated:
John Barnes
Chris Aldridge
Leo Christodoulou
Kapil Talwar
Bruno Campisi
Rob Gorham
Principal activities
During the financial year the principal continuing activities of the consolidated entity consisted of:
Machine and process development
- System industrialization, closed loop control system
- Simplified user interface development
- Yield, productivity and tool design improvements
Material portfolio expansion
Business development, customer and partner engagements
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $1,237,737 (31 December 2023: $891,912).
To mitigate technological and economic risks associated with the development of advanced metal alloy powders, the company
has prioritized revenue-generating technology development agreements with industry partners. Under this approach, material
development initiatives are funded by prospective customers and collaborators. This strategy reduces the company's financial
exposure but also expands industry relationships in an ecosystem that is diverse in downstream powder processing and
manufacturing applications.
Significant changes in the state of affairs
On 17 December 2024 K-TIG Limited announced that it had entered into a binding agreement to acquire 100% of Metal
Powder Works Inc.
The key terms and conditions of the Acquisition are as follows:
Consideration
The consideration to be provided by the Company under the terms of the Share Purchase Agreement comprises the issue of
the following securities (on a post- Consolidation basis):
(i)
55,000,000 Shares (Consideration Shares); and
(ii)
50,000,000 Performance Rights (Consideration Performance Rights), in two equal tranches subject to various vesting
conditions:
The Consideration Shares and Consideration Performance Rights (together, the Consideration Securities) will be issued to
the MPW Vendors in proportion to their respective interests in MPW on Completion.
Conditions precedent
The Share Purchase Agreement is subject to certain conditions precedent, including:
Metal Powder Works Inc.
Directors' report
31 December 2024
2
(i)
ASX providing a conditional reinstatement letter to the Company on terms satisfactory to the Company (acting
reasonably);
(ii)
the minority holders of MPW entering into a minority shareholder agreement (Minority MPW SPA) and the Company
being entitled to complete under the Minority MPW SPA;
(iii)
the Company’s shareholders approving the Transaction and associated
(iv)
resolutions at the General Meeting; and
(v)
the Company raising the Minimum Subscription of AUD $7,000,000 under the Public Offer.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 24 January 2025 K-TIG Limited lodged a revised prospectus to raise a minimum of AUD $7 million up to AUD $10 million
(before costs) at an issue price of $0.20 per fully paid ordinary share.
No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations have
not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation and is not aware of an environmental
breaches.
Shares under option
There were no unissued ordinary shares of Metal Powder Works Inc. under option outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Metal Powder Works Inc. issued on the exercise of options during the year ended 31
December 2024 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court for leave to bring proceedings on behalf of the company, or to intervene in any proceedings
to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those
proceedings.
Auditor's independence declaration
A copy of the auditor's independence declaration is set out immediately after this directors' report.
Metal Powder Works Inc.
Directors' report
31 December 2024
3
This report is made in accordance with a resolution of directors.
On behalf of the directors
___________________________
Kapil Talwar
Non-Executive Director
26 February 2025
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
www.grantthornton.com.au
ABN-41 127 556 389 ACN-127 556 389
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
To the Directors of Metal Powder Works Inc.
In accordance with the requirements of APES 110 Code of Ethics for Professional Accountants (the Code), as
lead auditor for the review of Metal Powder Works Inc. for the year ended 31 December 2024, I declare that, to
the best of my knowledge and belief, there have been no contraventions of any applicable code of professional
conduct in relation to the
.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L A Stella
Partner
Audit & Assurance
Perth, 26 February 2025
Metal Powder Works Inc.
Contents
31 December 2024
5
Statement of profit or loss and other comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10
Directors' declaration
18
Independent auditor's review report to the members of Metal Powder Works Inc.
19
General information
The financial statements cover Metal Powder Works Inc. as a consolidated entity consisting of Metal Powder Works Inc. and
the entities it controlled at the end of, or during, the year. The financial statements are presented in United States dollars,
which is Metal Powder Works Inc.'s functional and presentation currency.
Metal Powder Works Inc. is a private company, incorporated and domiciled in Delaware, United States of America. Its
registered office and principal place of business is:
1300 Clinton Rd, Clinton, PA 15026, United States of
America
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 February 2025.
Metal Powder Works Inc.
Statement of profit or loss and other comprehensive income
For the year ended 31 December 2024
Consolidated
Note
2024
2023
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
6
Revenue
3
770,856
875,939
Other income
4
1,192
22,760
Expenses
Raw materials and consumables used
(352,126)
(272,972)
Employee benefits expense
(651,205)
(544,020)
Depreciation and amortisation expense
(186,926)
(191,252)
Legal & Professional Services
(265,774)
(78,285)
Contractors
(244,235)
(439,123)
Insurance expense
(33,936)
(28,195)
Research & Development
(81,662)
(68,412)
Other expenses
(98,277)
(86,907)
Finance costs
(50,503)
(33,464)
Marketing
(6,934)
(41,075)
Occupancy
(38,207)
(6,906)
Loss before income tax expense
(1,237,737)
(891,912)
Income tax expense
5
-
-
Loss after income tax expense for the year attributable to the owners of Metal
Powder Works Inc.
(1,237,737)
(891,912)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of Metal
Powder Works Inc.
(1,237,737)
(891,912)
Metal Powder Works Inc.
Statement of financial position
As at 31 December 2024
Consolidated
Note
2024
2023
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
7
Assets
Current assets
Cash and cash equivalents
6
195,625
177,098
Trade and other receivables
7
78,093
101,030
Total current assets
273,718
278,128
Non-current assets
Trade and other receivables
7
-
6,705
Property, plant and equipment
9
311,097
393,702
Right-of-use assets
8
283,224
386,216
Intangibles
10
258,930
286,186
Total non-current assets
853,251
1,072,809
Total assets
1,126,969
1,350,937
Liabilities
Current liabilities
Trade and other payables
11
194,625
309,308
Contract liabilities
12
235,970
-
Borrowings
13
421,522
100,000
Lease liabilities
14
104,740
94,844
Convertible notes
15
323,109
-
Total current liabilities
1,279,966
504,152
Non-current liabilities
Lease liabilities
14
209,361
314,102
Convertible note
15
665,805
323,109
Total non-current liabilities
875,166
637,211
Total liabilities
2,155,132
1,141,363
(Net liabilities)/assets
(1,028,163)
209,574
Equity
Issued capital
16
2,790,111
2,790,111
Accumulated losses
(3,818,274)
(2,580,537)
Total (deficiency)/equity
(1,028,163)
209,574
Metal Powder Works Inc.
Statement of changes in equity
For the year ended 31 December 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
8
Issued
Accumulated
Total equity
capital
losses
Consolidated
$
$
$
Balance at 1 January 2023
2,790,111
(1,688,625)
1,101,486
Loss after income tax expense for the year
-
(891,912)
(891,912)
Other comprehensive income for the year, net of tax
-
-
-
Total comprehensive loss for the year
-
(891,912)
(891,912)
Balance at 31 December 2023
2,790,111
(2,580,537)
209,574
Issued
Accumulated
Total
deficiency in
equity
capital
losses
Consolidated
$
$
$
Balance at 1 January 2024
2,790,111
(2,580,537)
209,574
Loss after income tax expense for the year
-
(1,237,737)
(1,237,737)
Other comprehensive income for the year, net of tax
-
-
-
Total comprehensive loss for the year
-
(1,237,737)
(1,237,737)
Balance at 31 December 2024
2,790,111
(3,818,274)
(1,028,163)
Metal Powder Works Inc.
Statement of cash flows
For the year ended 31 December 2024
Consolidated
Note
2024
2023
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
9
Cash flows from operating activities
Receipts from customers
1,030,954
806,674
Payments to suppliers and employees
(1,822,386)
(1,729,059)
Net cash used in operating activities
(791,432)
(922,385)
Cash flows from investing activities
Payments for property, plant and equipment
-
(25,748)
Payments for security deposits
(203,295)
-
Proceeds from disposal of property, plant and equipment
25,927
-
Proceeds from release of security deposits
-
241,717
Net cash from/(used in) investing activities
(177,368)
215,969
Cash flows from financing activities
Proceeds from borrowings
321,522
423,109
Proceeds from convertible notes
665,805
-
Net cash from financing activities
987,327
423,109
Net increase/(decrease) in cash and cash equivalents
18,527
(283,307)
Cash and cash equivalents at the beginning of the financial year
177,098
460,405
Cash and cash equivalents at the end of the financial year
6
195,625
177,098
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
10
Note 1. Material accounting policy information
These general purpose financial statements for the year end reporting period ended 31 December 2024 have been prepared
in accordance with International Accounting Standard IAS 34 'Interim Financial Reporting', as appropriate for for-profit oriented
entities.
These general purpose financial statements do not include all the notes of the type normally included in an audited annual
financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year
ended 31 December 2023.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting
period, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
International Accounting Standards Board ('IAS') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
The consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the
continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of
business.
During the year ended 31 December 2024, the Group incurred a loss after income tax expense of $1,237,737 (31 December
The ability of the Company to continue as going concerns and to pay their debts as and when they fall due is dependent on
the following:
achieving revenue targets in line with management’s forecasts;
managing all costs in line with management’s forecasts;
continued support of the Company’s major shareholders and funders; and
The completion of the acquisition by K-TIG Limited and concurrent capital raising of between AUD $7 million to AUD $10
million.
The Directors believe that the group can raise capital as required based on the success of previous capital raises and the
continued support from the Company’s major shareholders. The Directors have a reasonable expectation that the Company
has this support and have therefore determined that the Company will continue in operational existence for the foreseeable
future. The company’s 12 month outlook remains strong on the back of new income streams, a healthy pipeline and expected
price growth in addition to a thorough review of our cost base being undertaken.
The financial report has therefore been prepared on the going concern basis. Should the Company be unable to achieve
successful outcomes in relation to each of the matters referred to above, there is material uncertainty as to whether the
Company will be able to continue as a going concern and, therefore, whether they will realise their assets and discharge their
liabilities in the normal course of business. The financial report does not include adjustments relating to the recoverability and
classification of recorded asset amounts, nor to the amounts and classification of liabilities that might be necessary should the
Company not continue as a going concern.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
Note 2. Critical accounting judgements, estimates and assumptions (continued)
11
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off
or written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Convertible notes
The fair value of the liability of convertible notes is based on the contractual stream of future cash flows. The Group uses its
judgement to determine the discount rate based on the market interest rates existing at the end of the 31 December 2024.
Note 3. Revenue
Consolidated
2024
2023
$
$
Sale of equipment
302,854
-
Powder sale
83,167
172,439
Contracted research and development
384,835
703,500
Revenue
770,856
875,939
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2024
2023
$
$
Timing of revenue recognition
Goods transferred at a point in time
386,021
172,439
Services transferred over time
384,835
703,500
770,856
875,939
Note 4. Other income
Consolidated
2024
2023
$
$
Sublease income
-
18,000
Other income
1,192
4,760
Other income
1,192
22,760
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
12
Note 5. Income tax expense
Consolidated
2024
2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(1,237,737)
(891,912)
Tax at the statutory tax rate of 21%
(259,925)
(187,302)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Depreciation and amortisation expense
21,628
40,163
(238,297)
(147,139)
Current year tax losses not recognised
238,297
147,139
Income tax expense
-
-
Note 6. Cash and cash equivalents
Consolidated
2024
2023
$
$
Current assets
Cash at bank
195,625
177,098
Note 7. Trade and other receivables
Consolidated
2024
2023
$
$
Current assets
Trade receivables
78,093
99,160
Other receivables
-
1,870
78,093
101,030
Non-current assets
Other receivables
-
6,705
78,093
107,735
Allowance for expected credit losses
The consolidated entity has recognised a loss of $nil (2023: $nil in profit or loss in respect of the expected credit losses for
the year ended 31 December 2023.
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
13
Note 8. Right-of-use assets
Consolidated
2024
2023
$
$
Non-current assets
Land and buildings - right-of-use
638,389
638,390
Less: Accumulated depreciation
(355,165)
(252,174)
283,224
386,216
The consolidated entity leases land and buildings for its offices and warehouses under agreements of between 3 to 5 years
with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are
renegotiated.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Land and
buildings
Total
Consolidated
$
$
Balance at 1 January 2023
489,207
489,207
Depreciation expense
(102,991)
(102,991)
Balance at 31 December 2023
386,216
386,216
Depreciation expense
(102,992)
(102,992)
Balance at 31 December 2024
283,224
283,224
Note 9. Property, plant and equipment
Consolidated
2024
2023
$
$
Non-current assets
Plant and equipment - at cost
532,430
576,682
Less: Accumulated depreciation
(243,191)
(204,152)
289,239
372,530
Fixtures and fittings - at cost
14,959
14,959
Less: Accumulated depreciation
(4,980)
(3,518)
9,979
11,441
Computer equipment - at cost
15,533
11,853
Less: Accumulated depreciation
(3,654)
(2,122)
11,879
9,731
311,097
393,702
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
Note 9. Property, plant and equipment (continued)
14
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Plant and
equipment
Fixture and
fittings
Computer
equipment
Total
Consolidated
$
$
$
$
Balance at 1 January 2023
404,974
12,933
11,051
428,958
Additions
18,008
-
-
18,008
Depreciation expense
(50,452)
(1,492)
(1,320)
(53,264)
Balance at 31 December 2023
372,530
11,441
9,731
393,702
Additions
-
-
3,680
3,680
Disposals
(44,252)
-
-
(44,252)
Depreciation expense
(39,039)
(1,462)
(1,532)
(42,033)
Balance at 31 December 2024
289,239
9,979
11,879
311,097
Note 10. Intangibles
Consolidated
2024
2023
$
$
Non-current assets
Patents and trademarks - at cost
408,837
408,837
Less: Accumulated amortisation
(149,907)
(122,651)
258,930
286,186
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Patents and
trademarks
Total
Consolidated
$
$
Balance at 1 January 2023
313,441
313,441
Amortisation expense
(27,255)
(27,255)
Balance at 31 December 2023
286,186
286,186
Amortisation expense
(27,256)
(27,256)
Balance at 31 December 2024
258,930
258,930
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
15
Note 11. Trade and other payables
Consolidated
2024
2023
$
$
Current liabilities
Trade payables
180,310
90,951
Equipment deposit
-
210,000
Other payables
14,315
8,357
194,625
309,308
Note 12. Contract liabilities
Consolidated
2024
2023
$
$
Current liabilities
Contract liabilities
235,970
-
Note 13. Borrowings
Consolidated
2024
2023
$
$
Current liabilities
Loan - TBGA
421,522
100,000
Loans from related parties
On 26 July 2023 the Company signed a bridging loan agreement of $100,000 owed to The Barnes Global Advisors LLC
(“TBGA”). The loan is considered a related party loan transaction as John Barnes (Executive Director) is director. The
borrowing is interest bearing at 8% p.a and it is repayable in 12 months.
On 31 January 2024 the Company signed a bridging loan agreement of $150,000 owed to TBGA a related party of the Director.
The borrowing is interest bearing at 8% p.a and is repayable 3 months from inception.
During 2024 the Company signed a bridging loan agreement of $150,000 owed to The Barnes Global Advisors LLC (“TBGA”).
The loan is considered a related party loan transaction as John Barnes (Executive Director) is director. The borrowing is
interest bearing at 10% p.a and it is repayable in 12 months.
As at 31 December 2024, $21,522 of interest had been accrued on outstanding loan balances.
Note 14. Lease liabilities
Consolidated
2024
2023
$
$
Current liabilities
Lease liability
104,740
94,844
Non-current liabilities
Lease liability
209,361
314,102
314,101
408,946
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
16
Note 15. Convertible note
Consolidated
2024
2023
$
$
Current liabilities
Convertible note
323,109
-
Non-current liabilities
Convertible notes
665,805
323,109
988,914
323,109
In April 2023, the Company entered into convertible note agreements for the issuance of 323,109 convertible notes ("Notes")
at the value of $322,109 to raise funds for working capital. Under this raising, the Company entered into convertible note
agreements with various lenders (the "Lenders") pursuant to which the Lenders subscribed for convertible notes in the
Company which upon the Company completing the IPO process, convert into Shares.
The notes are unsecured, interest-bearing at 5% per annum
Key terms and conditions:
Each notes will be convertible into Common Stock at a conversion price equal to 20% discount from the valuation utilised
in the next financing;
Interest is 5% per annum, and payable is arrears on redemption. If automatically converted no interest applies; and
Maturity date is 24 months from the date the Convertible Note Agreement signed by the parties.
During 2024, the Company entered into convertible note agreements for the issuance of 665,805 convertible notes ("Notes")
at the value of $665,805 to raise funds for working capital. Under this raising, the Company entered into convertible note
agreements with various lenders (the "Lenders") pursuant to which the Lenders subscribed for convertible notes in the
Company which upon the Company completing the IPO process, convert into Shares.
The notes are unsecured, interest-bearing at 4% per annum
Key terms and conditions:
Each notes will be convertible into Common Stock at a conversion price equal to 20% discount from the valuation utilised
in the next financing;
Interest is 4% per annum, and payable is arrears on redemption. If automatically converted no interest applies; and
Maturity date is 24 months from the date the Convertible Note Agreement signed by the parties.
Note 16. Issued capital
Consolidated
2024
2023
2024
2023
Shares
Shares
$
$
Ordinary shares - fully paid
11,193,828
11,193,828
2,790,111
2,790,111
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Metal Powder Works Inc.
Notes to the financial statements
31 December 2024
Note 16. Issued capital (continued)
17
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital
risk management decisions. There have been no events of default on the financing arrangements during the financial year.
Note 17. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 18. Related party transactions
Parent entity
Metal Powder Works Inc. is the parent entity.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Consolidated
2024
2023
$
$
Current borrowings:
Loan from commonly controlled entity
421,522
100,000
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates and have been disclosed in note
13.
Note 19. Events after the reporting period
On 24 January 2025 K-TIG Limited lodged a revised prospectus to raise a minimum of AUD $7 million up to AUD $10 million
(before costs) at an issue price of $0.20 per fully paid ordinary share.
No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Metal Powder Works Inc.
Directors' declaration
31 December 2024
18
In the directors' opinion:
the attached financial statements and notes comply with International Accounting Standard IAS 34 'Interim Financial
Reporting' and other mandatory professional reporting requirements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
31 December 2024 and of its performance for the financial half-year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
Signed in accordance with a resolution of directors.
On behalf of the directors
___________________________
Kapil Talwar
Non-Executive Director
26 February 2025
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
To the Members of Metal Powder Works Inc
Report on the review of the financial report
Conclusion
We have reviewed the accompanying financial report of Metal Powder Works Inc. (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31
December 2024, and the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and condensed consolidated statement of cash flows for the
year ended on that date, including material accounting policy information, other selected explanatory notes,
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe
that the accompanying financial report of Metal Powder Works Inc does not comply with:
a
1 December 2024 and of its
performance for the year ended on that date;
b
complying with International Accounting Standards IAS 34 Interim Financial Reporting; and
c
complying with International Financial Reporting Standards as issued by the International Accounting
Standards Board.
Basis for Conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the
Independent Auditor of the Entity. Our responsibilities are further described in the
for the Review of the Financial Report section of our report. We are independent of the Company in
accordance with the auditor independence requirements of the ethical requirements of the Accounting
Professional and
110 Code of Ethics for Professional Accountants
(including Independence Standards) (the Code) and the International Ethics Standard Board for
Code of Ethics for Professional Accountants (including Independence Standards) (IESBA
Code) that are relevant to our review of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
1
Grant Thornton Audit Pty Ltd
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that the Group incurred a net loss after
income tax expense of $1,237,737 during the year ended 31 December 2024, and as at that date, reported net
operating cash outflows of $791,432. As stated in Note 1, these events or conditions, along with other matters as
set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability
to continue as a going concern. Our conclusion is not modified in respect of this matter.
financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with, International Financial Reporting Standards and for such internal control as the
Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
Our responsibility is to express a conclusion on the financial report based on our review. We conducted our
review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report
Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures
described, we have become aware of any matter that makes us believe that the financial report is not in
1 December 2024 and its
performance for the year ended on that date, and complying with International Accounting Standards.
A review of a financial report consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with International Standards on Auditing and consequently does not
enable us to obtain assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L A Stella
Partner
Audit & Assurance
Perth, 26 February 2025