Mobilicom Limited
ABN 26 617 155 978
Annual Report – 31 December 2019
For personal use only
Mobilicom Limited
Contents
31 December 2019
Corporate directory
Chairman's letter to shareholders
Directors' report
Auditor's independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members of Mobilicom Limited
Shareholder information
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3
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17
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Mobilicom Limited
Corporate directory
31 December 2019
Directors
Oren Elkayam (Chairman and Managing Director)
Yossi Segal (Executive Director)
Campbell McComb (Non-executive Director)
Mark Licciardo (Non-executive Director)
Jonathan Brett (Non-executive Director)
Company secretary
Kate Goland
Registered office
Share register
Auditor
C/- Mertons Corporate Services Pty Ltd
Level 7
330 Collins Street
Melbourne, VIC 3000
Ph: 03 8692 9000
Boardroom Pty Limited
Level 12, 225 George Street
Sydney, NSW, 2000
Ph: 1300 737 760 (within Australia)
Ph: +61 2 9290 9600
BDO East Coast Partnership
Collins Square, Tower 4
Level 18, 727 Collins Street
Melbourne, Victoria, 3008
Stock exchange listing
Mobilicom Limited shares are listed on the Australian Securities Exchange (ASX
code: MOB)
Website
https://mobilicom-ltd.com.au
Corporate Governance Statement
https://mobilicom-ltd.com.au/charters/
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Mobilicom Limited
Chairman's letter to shareholders
31 December 2019
Oren Elkayam (Chairman and Managing Director)
1. FINANCIAL HIGHLIGHTS
Financial results:
The company has improved its financial results across all parameters, growing its revenues to $3.4 million, up 30% from $2.6
million in 2018. This increase resulted from existing and new customers, repeat orders, as well as from sales of full system
solutions and different market applications.
Government grants for the year increased to $729K, up 98% compared to the prior period.
Total 2019 income* increased to $4.3 million, up 39% from $3.1 million in 2018.
Mobilicom has a strong cash balance of $4.7 million as of December 31, 2019.
Operating expenses were incurred to drive both business and R&D initiatives. On the business side, expenses were incurred
to build the Company’s market position and sales for the coming years as well as to drive continued sales momentum of its
full system solutions. R&D expenses were incurred to develop the Company’s cybersecurity solution for drones and robotics
in order to yield licensing revenue as well as continued investment in maintaining the technology gap.
Capital raising:
In April, Mobilicom completed a $4.0 million placement of 40 million ordinary new shares at $0.10 per share to accelerate the
Company’s expansion opportunities with key strategic partners.
2. SIGNIFICANT COMPANY MILESTONES
Mobilicom Successes
$2M+ contract with Elbit Systems
During Q4, Mobilicom secured a contract exceeding $2 million from Elbit Systems, one of the leading drone suppliers
worldwide outside of the US. Elbit has revenues of more than $3.6 billion and is an international high technology company
engaged in a wide range of defence, homeland security and commercial programs throughout the world. Mobilicom was
selected by Elbit as the vendor of choice for controllers for tactical drones.
Mobilicom received the first order for the development and delivery of a commercial batch of controllers, based on Mobilicom’s
technology and its ability to support the specific needs of tactical drones. The majority of the contract is expected to be fulfilled
during CY2020 and 2021. Additional orders are expected from Elbit in due course.
Commercial Drone Upgrade Solution exceeds $1 million goal
In October, the Company announced that its breakthrough Commercial Drone Upgrade Solution to the Israel MOD
exceeded its goal of $1 million in orders. Mobilicom is the sole provider of the Commercial Drone Upgrade Solution.
This Solution is an after-market add on for drone units already in the market and was developed as a result of the US
ban on the use of certain drones in security operations due to backdoor cyber risks.
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Mobilicom Limited
Chairman's letter to shareholders
31 December 2019
Bird AeroSystems
Mobilicom received a repeat order of more than $250,000 from leading provider of airborne surveillance solutions, Bird
AeroSystems. Mobilicom’s MCU communication units will be deployed in mobile command posts, aircraft, ground response
vehicles and sea vessels.
Japanese Telco Giant, NTT, Fifth Largest Telecommunications Company in the World
Mobilicom received new purchase orders exceeding $200K from Japanese telecommunications giant, Nippon Telegraph &
Telephone Corporation (NTT), the fifth largest telecommunications company in the world. It has also indicated that it expects
to place multiple orders with Mobilicom each year. The above purchase orders are based on MCU products kit for the
Japanese Self Defense Forces (“SDF”).
US Robotics
Mobilicom received a repeat order valued more than $200,000 for its MCU-30 Lite product from a veteran US ground robotics
company. Those orders came after delivering on purchase orders exceeding $300,000 the previous year. The MCU-30 Lite
has been integrated into an innovative robotics solution which will be used for underground and in-building operations.
SkyHopper Successes
In 2019, SkyHopper’s end-to-end solutions were sold to over 30 new and existing customers including Samsung in South
Korea; autonomous drone companies Azur Drones in France and Easy Aerial in the US; Honeywell in the US; and other
drone and robotics companies across Canada, Japan, Taiwan, Finland, Czech Republic, Switzerland, Italy and Israel.
Repeat order exceeding $260,000 from Aero Sentinel
Aero Sentinel is an industry-leading manufacturer of tactical unmanned aerial systems for military and defence applications.
Aero Sentinel has integrated the SkyHopper PRO across multiple drone platforms. Sales of these drone platforms have
experienced a significant ramp-up, and additional and consistent orders for SkyHopper PRO units have been received.
Partnership with large drone manufacture
Mobilicom signed a key strategic partnership with Yuneec International. Yuneec is a global leader in drones and electric
aviation. Yuneec plans to release drone solutions based on the SkyHopper product portfolio, targeted at the commercial and
government markets. Yuneec and Mobilicom have made excellent progress on their joint drone offering, with the development
and testing of initial H520-SkyHopper drone system prototypes completed and delivered to first reference customer.
Certification for SkyHopper in Japan
Mobilicom received the Japanese high-power transmission certification for its SkyHopper data links, making SkyHopper the
first certified high power, long range, highly secured data link in Japan. The certification comes after SkyHopper received the
low-power Japanese TELEC certification at the end of 2017. The high power TELEC certification should increase demand
from existing and new customers serving the Japanese market.
R&D program with Israel Ministry of Defense & Israel Innovation Authority
The Israel Ministry of Defense and the Israel Innovation Authority approved a $1.8 million research and development (R&D)
program for Mobilicom. This is a two and a half-year program, officially launched in December 2018, for the development of
cybersecurity using Artificial Intelligence (AI) for drones and robotics platforms. This reinforces Mobilicom as a holistic
provider of solutions for drones and robotics and strengthens the Company’s long-term financial position and cash flow
performance.
3. COMPANY INTRODUCTION
Mobilicom Limited (ASX: MOB) designs, develops and delivers holistic communication solutions for mission critical and
remote mobile private networks without the need for any infrastructure. Mobilicom’s products and technologies are based on
an innovative approach that merges 4G and Mobile MESH technologies.
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Mobilicom Limited
Chairman's letter to shareholders
31 December 2019
Mobilicom has a large solution portfolio with deployments worldwide. It is comprised of two business entities:
- Mobilicom – Government & Enterprise sector.
Mobilicom offers holistic solutions and equipment that cater to mission-critical communication, with applications in
Unmanned Platforms; Disaster Relief & Public Safety; and Offshore & Remote Areas.
- SkyHopper – Commercial & Industrial Drone & Robotics market.
SkyHopper is a global provider of holistic end-to-end hardware & software solutions as well as integration and support
services for commercial and industrial drones and robotics manufacturers.
*Income consists of Revenue, Grants and Interest.
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Mobilicom Limited
Directors' report
31 December 2019
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Mobilicom Limited (referred to hereafter as the 'Company', 'Mobilicom Australia' or
'parent entity') and the entities it controlled at the end of, or during, the year ended 31 December 2019.
Directors
The following persons were directors of Mobilicom Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Oren Elkayam (Chairman and Managing Director)
Yossi Segal (Executive Director)
Campbell McComb (Non-executive Director)
Mark Licciardo (Non-executive Director)
Jonathan Brett (Non-executive Director)
Principal activities
The consolidated entity's principal activities are to further commercialise solutions for mission critical and remote mobile
private communications networks without the need to rely upon or utilise existing infrastructure and end-to-end hardware &
software solutions as well as integration and support services for commercial and industrial drones and robotics
manufacturers. The Company's product portfolio is fully designed and developed in-house and relies on extensive know how
and experience gained by developing mission- critical communication systems worldwide.
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 $3,641,406 (31 December 2018: $3,176,686).
Revenues
Revenue from sales increased to $3,435,361 from the prior period (31 December 2018: $2,640,006). This increase has
resulted from the following:
●
●
●
Growth in customers worldwide due to the company's increasing presence; and
Growth in revenues from existing customers and repeat orders; and
Release of new products to the market.
Other income for the year includes government grants for $729,167, which are up 98.3% (31 December 2018: $367,695).
Expenses
The financial year saw higher production expenses, required to fulfil certain purchase.
At year end 2019 the company has backlog of sales orders exceeding $1.7 million, which is up 415% (31 December 2018:
$0.3 million).
Other expenses have increased by 25.94% to $6,987,145 (31 December 2018: $5,548,104).
The expenses during the year were according to the company's budget to enable the execution of company’s future growth
and to satisfy an increase in orders forecast. On the business side, expenses were incurred to build the Company's market
position and sales for the coming years as well as to drive continued sales momentum of its full system solution. New R&D
activities in Europe to focus on software development, as well as the release of new products under Mobilicom and
SkyHopper, additional development of the commercial drone upgrade solution, necessitated an increase in research and
development expenditure and an increase in the company's workforce.
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Mobilicom Limited
Directors' report
31 December 2019
Statement of financial position
Cash reserves at the end of the year were $4,710,261 (31 December 2018: $4,959,245), with Mobilicom maintaining a strong
financial position. At 31 December 2019 net assets amounted to $4,445,765.
The Company raised $4 million during the financial year to progress with its goals and objectives.
Refer to the detailed review of operations preceding this report for further information on the consolidated entity's activities.
Significant changes in the state of affairs
During the financial year the Company successfully raised $4,006,000 through the issue of 40,060,000 new fully paid ordinary
shares at an issue price of $0.10 (10 cents) per share.
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
No matter or circumstance has arisen since 31 December 2019 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 under Australian Commonwealth or State
law.
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Mr Oren Elkayam
Chairman and Managing Director
B.Sc, MBA
Mr Elkayam (CEO and Co-Founder of Mobilicom Israel) has worked at both business
development and CEO levels with leading companies in the wireless communications
space (including as VP Business Development at Runcom Ltd and CEO of Sortech
Ltd). Mr Elkayam has initiated and negotiated contracts with top global carrier
companies such as Alcatel-Lucent, Nortel, Mitsubishi and Motorola. He has also led a
number of investment rounds with US venture capital funds. He has been a voting
member on both the Institute of Electrical and Electronic Engineers (IEEE) and WiMAX
international committees, and served as an officer in the Israeli Air Force in an elite
research and development unit.
No other current directorships of listed companies
No special responsibilities
170,000 Fully paid ordinary shares held in the name of Elkayam 101 Ltd – Director.
925,000 Fully paid ordinary shares held in the name of Oren Elkayam.
36,404,774 Fully paid ordinary shares held in the name of IBI Trust Management which
acts as custodian/bare trustee of the shares.
462,500 Options to acquire fully paid ordinary shares exercisable at $0.20, vesting 6
months from the issue date, and expiring 5 years from the issue date.
462,500 Options to acquire fully paid ordinary shares exercisable at $0.20, vesting 12
months from the issue date, and expiring 5 years from the issue date.
Other current directorships:
Former directorships (last 3 years): No other directorships of listed companies
Special responsibilities:
Interests in shares:
Interests in options:
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Other current directorships:
Former directorships (last 3 years): No other directorships of listed companies
Special responsibilities:
Interests in shares:
Mobilicom Limited
Directors' report
31 December 2019
Name:
Title:
Qualifications:
Experience and expertise:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): DirectMoney Ltd
Special responsibilities:
Interests in shares:
Interests in options:
Mr Yossi Segal
Executive Director
B.Sc, M.Sc, MBA
Mr Segal (Vice President of R&D and Co-Founder of Mobilicom Israel) was the former
CTO and a founding member of Runcom Ltd. Mr Segal is a worldwide expert in
OFDM/A and has written essential patents for OFDM/A technology, being the first to
implement OFDM/A in a working product. He has also previously led the design and
development groups of three mobile integrated circuits (IC chip) and eight wireless
broadband systems which are currently in operation and sold worldwide. Mr Segal has
taken a leading role in several international wireless standards (IEEE and ETSI) as a
committee voting member, and served in the Israeli Army as an officer in an elite
electronic warfare research and development unit.
No other current directorships of listed companies
No special responsibilities
925,000 ordinary fully paid shares
30,167,158 Fully paid ordinary shares held in the name of IBI Trust Management which
acts as custodian/bare trustee of the shares
462,500 Options to acquire fully paid ordinary shares exercisable at $0.20, vesting 6
months from the issue date, and expiring 5 years from the issue date.
462,500 Options to acquire fully paid ordinary shares exercisable at $0.20, vesting 12
months from the issue date, and expiring 5 years from the issue date.
Mr Campbell McComb
Non-executive Director
BEc, GAICD, FINSIA
Mr McComb has over 20 years’ experience in funds management and investment
banking and has overseen the development of numerous businesses. He has
significant investment experience across equity securities, venture capital and private
equity. Mr McComb is currently the Managing Director of Auctus (ASX: AVC), a listed
Alternative Investment Management business.
Auctus Alternative Investments Limited
No special responsibilities
100,000 Fully paid ordinary shares held in the name of CM2 Investments Pty Ltd
(McComb Super Fund A/C) – Director.
2,130,000 Fully paid ordinary shares held in the name of Camac Investments Pty Ltd
– Director and Shareholder.
2,500,000 Options to acquire fully paid ordinary shares exercisable at $0.20 and
expiring 3 years from the issue date.
1,000,000 unlisted options to acquire fully paid ordinary shares exercisable at $0.15
and expiring 27 June 2021.
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Mobilicom Limited
Directors' report
31 December 2019
Name:
Title:
Qualifications:
Experience and expertise:
Mr Mark Licciardo
Non-executive Director
B Bus(Acc), GradDip CSP, FGIA, FCIS, FAICD
Mr Licciardo is the founder and Managing Director of Mertons Corporate Services. A
former company secretary of Top 50 ASX listed companies, Transurban Group and
Australian Foundation Investment Company Limited, his expertise includes working
with boards of directors in the areas of corporate governance, administration and
company secretarial. Mr Licciardo is also the former Chairman of the Academy of
Design Australia Limited, the Governance Institute of Australia Victoria division and
Melbourne Fringe Festival. Mr Licciardo is also a director of a number of public and
private companies.
Frontier Digital Ventures Limited
No special responsibilities
100,000 Fully paid ordinary shares held in the name of Loire Investments Pty Ltd (Loire
Investment A/C) - Director
1,000,000 unlisted options to acquire fully paid ordinary shares exercisable at $0.15
and expiring 27 June 2021.
Mr Jonathan Brett
Non-executive Director
BCom (Legal), BAcc, MCom (Financial Management), Dip Datametrics (Computer
Science) and is a CA(SA)
Mr Brett is a highly strategic and commercial senior director with a strong track record
of driving transformational business performance and profitability across multiple
geographies. He was also Managing Director and CEO of Techway Limited which
pioneered internet banking in Australia. He is currently Executive Chairman of
Stridecorp Equity Partners, an AFSL licensed fund manager specialising in private
equity.
Corporate Travel Management Limited
Other current directorships:
Former directorships (last 3 years): iCar Asia Limited
Special responsibilities:
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): Vocus Group Ltd, The Pas Group Limited, Godfreys Group Limited and Indoor Skydive
Special responsibilities:
Interests in shares:
Interests in options:
Australia Limited
Chairman of the Remuneration and Nomination Committee
1,250,000 Fully paid ordinary shares held in the name of Dalesam Pty Ltd (Jon Brett
Super Fund A/C) - Director
250,000 Fully paid ordinary shares held in the name of Dalesam Pty Ltd (The Dalesam
Trust) - Director
1,000,000 unlisted options to acquire fully paid ordinary shares exercisable at $0.15
and expiring 27 June 2021.
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Kate Goland
Kate Goland CPA, GIA (Cert) Mertons Corporate Services, is an experienced accounting and company secretarial
professional. She has demonstrated expertise in supporting clients in meeting their corporate obligations and ASIC
compliance requirements. She joined Mertons from BDO where she assisted clients within the company secretarial division.
Kate is a current Company Secretary of various public and private companies and has held the role of Company Secretary
for a not for profit organisation. She has a strong understanding of corporate compliance matters.
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Mobilicom Limited
Directors' report
31 December 2019
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year
ended 31 December 2019, and the number of meetings attended by each director were:
Full Board
Attended
Held*
Remuneration
Committee
Attended
and
Nomination
Committee
Held
-
-
1
1
1
Mr O Elkayam
Mr Y Segal
Mr C McComb
Mr M Licciardo
Mr J Brett
7
6
7
6
7
7
7
7
7
7
-
-
1
1
1
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high quality personnel.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
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Mobilicom Limited
Directors' report
31 December 2019
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held in February 2017, where the shareholders
approved a maximum annual aggregate remuneration of $250,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares may be awarded to executives
over a period of three years based on long-term incentive measures. These include increase in shareholders value relative
to the entire market and the increase compared to the consolidated entity's direct competitors.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Mobilicom Limited :
●
●
●
●
●
Oren Elkayam (Chairman and Managing Director)
Yossi Segal (Executive Director)
Campbell McComb (Non-executive Director)
Mark Licciardo (Non-executive Director)
Jon Brett (Non-executive Director)
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Mobilicom Limited
Directors' report
31 December 2019
2019
Non-Executive Directors:
Mr C McComb*
Mr M Licciardo**
Mr J Brett***
Executive Directors:
Mr O Elkayam
Mr Y Segal
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
40,000
39,997
20,000
-
-
-
-
-
-
-
-
-
390,156
390,156
880,309
111,278
111,278
222,556
15,995
15,995
31,990
119,702
119,702
239,404
-
-
-
-
-
-
29,476
29,476
49,476
69,476
69,473
69,476
-
-
637,131
637,131
108,428 1,482,687
Mr McComb received his remuneration through Camac Investments Pty Ltd (an entity associated with him).
Mr Licciardo received his remuneration through Mertons Corporate Services Pty Ltd (an entity associated with him).
*
**
*** As at the date of this report, $20,000 was owing to Mr Brett.
During the financial year, a bonus was awarded to Messers Elkayam and Segal following completion of the capital raising.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
39,996
39,996
-
358,660
358,660
797,312
-
-
-
-
-
-
-
-
-
-
-
-
14,966
14,966
29,932
110,680
110,680
221,360
-
-
-
-
-
-
-
-
20,000
39,996
39,996
20,000
-
-
484,306
484,306
20,000 1,068,604
2018
Non-Executive Directors:
Mr C McComb*
Mr M Licciardo**
Mr J Brett
Executive Directors:
Mr O Elkayam
Mr Y Segal
*
**
Mr McComb received his remuneration through Camac Investments Pty Ltd (an entity associated with him).
Mr Licciardo received his remuneration through Mertons Corporate Services Pty Ltd (an entity associated with him).
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr C McComb
Mr M Licciardo
Mr J Brett
Executive Directors:
Mr O Elkayam
Mr Y Segal
Fixed remuneration
2018
2019
At risk - STI
At risk - LTI
2019
2018
2019
2018
58%
58%
58%
83%
83%
100%
100%
100%
100%
100%
12
-
-
-
17%
17%
-
-
-
-
-
42%
42%
42%
-
-
-
-
-
-
-
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Mobilicom Limited
Directors' report
31 December 2019
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Oren Elkayam
Chairman and Managing Director
28 February 2017
$250,000 USD per annum.
Mr Elkayam's employment with Mobilicom Israel may be terminated upon 60 days’
written notice, or immediately by Mobilicom Israel for cause which include a breach of
trust or fiduciary duty (for example, theft), conviction of a criminal offense and
negligence causing harm to Mobilicom’s business or reputation. If terminated for any
reason other than for cause, Mr Elkayam will be entitled to a paid salary, together with
other benefits detailed in the employment agreements, for a period of 6 months
following termination.
Yossi Segal
Executive Director
28 February 2017
$250,000 USD per annum.
Mr Segal’s employment with Mobilicom Israel may be terminated upon 60 days’ written
notice, or immediately by Mobilicom Israel for cause which include a breach of trust or
fiduciary duty (for example, theft), conviction of a criminal offense and negligence
causing harm to Mobilicom Israel’s business or reputation. If terminated for any reason
other than for cause, Mr Segal will be entitled to a paid salary, together with other
benefits detailed in the employment agreements, for a period of 6 months following
termination.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
30/05/2019
Vesting date and
exercisable date
30/05/2020
Expiry date
25/06/2025
Options granted carry no dividend or voting rights.
Fair value
per option
Exercise price at grant date
$0.15
$0.0505
Additional information
The earnings of the consolidated entity for the three years to 31 December 2019 are summarised below:
Sales revenue
Profit/(Loss) after income tax
2019
$
2018
$
2017
$
3,435,361
(3,641,406)
2,640,006
(3,176,686)
1,519,719
(6,089,936)
13
For personal use only
Mobilicom Limited
Directors' report
31 December 2019
Share price at start of financial year ($)
Share price at financial year end ($)
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
*
The Company's listed on ASX on 2 May 2017.
2019
2018
2017*
0.093
0.13
(1.49)
(1.49)
0.105
0.093
(1.46)
(1.46)
0.20
0.105
(4.12)
(4.12)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares*
Mr O Elkayam
Mr Y Segal
Mr C McComb
Mr M Licciardo
Mr J Brett
37,499,774
31,092,158
2,230,000
100,000
250,000
71,171,932
-
-
-
-
250,000
250,000
-
-
-
-
1,000,000
1,000,000
- 37,499,774
- 31,092,158
2,230,000
-
100,000
-
-
1,500,000
- 72,421,932
*
The above disclosures are in relation to the listed entity
Option holding
The number of options over ordinary shares in the Company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares*
Mr O Elkayam
Mr Y Segal
Mr C McComb
Mr M Licciardo
Mr J Brett
Balance at
Granted
the start of Granted as as part of the
Expired/
forfeited/
Balance at
the end of
the year
remuneration
Advisor and
Director offer
other
the year
925,000
925,000
2,500,000
-
-
4,350,000
-
-
1,000,000
1,000,000
1,000,000
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
925,000
925,000
3,500,000
1,000,000
1,000,000
7,350,000
*
The above disclosures are in relation to the listed entity
Other transactions with key management personnel and their related parties
A total of $57,977 was paid to Mertons Corporate Services Pty Ltd (an entity related to Mr Licciardo) for provision of corporate
secretarial services.
A total of $38,400 was paid to Camac Investments Pty Ltd (an entity related to Mr McComb) for provision of consulting
services.
Payables to key management personnel and their related parties
As at 31 December 2019, the Company had director fees and corporate secretarial service fees payable to Mertons
Corporate Services Pty Ltd (an entity related to Mr Licciardo) of $8,230.
This concludes the remuneration report, which has been audited.
14
For personal use only
Mobilicom Limited
Directors' report
31 December 2019
Shares under option
Unissued ordinary shares of Mobilicom Limited under option at the date of this report are as follows:
Grant date
27/04/2017
27/04/2017
27/04/2017
27/04/2017
27/04/2017
27/04/2017
27/04/2017
27/04/2017
17/04/2018
30/05/2018
20/09/2018
20/05/2019
25/06/2019
05/08/2019
Expiry date
27/04/2020
27/04/2022
20/03/2020
21/09/2021
25/11/2025
20/10/2026
25/09/2021
05/11/2025
16/04/2023
29/05/2024
19/09/2023
20/05/2024
25/06/2025
05/08/2022
Exercise
price
Number
under option
$0.20
$0.20
$0.05
$0.05
$0.12
$0.12
$0.05
$0.12
$0.15
$0.15
$0.15
$0.15
$0.15
$0.15
3,400,000
1,850,000
460,568
460,568
307,044
614,090
1,919,030
1,151,417
5,200,000
400,000
600,000
300,000
3,000,000
1,500,000
21,162,717
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Mobilicom Limited issued on the exercise of options during the year ended 31 December
2019 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 under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 26 to the financial statements.
15
For personal use only
Mobilicom Limited
Directors' report
31 December 2019
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 26 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
Officers of the Company who are former partners of BDO East Coast Partnership
There are no officers of the Company who are former partners of BDO East Coast Partnership.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
BDO East Coast Partnership continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Oren Elkayam
Chairman and Managing Director
21 February 2020
Tel Aviv
16
For personal use only
Tel: +61 3 9603 1700
Fax: +61 3 9602 3870
www.bdo.com.au
Collins Square, Tower Four
Level 18, 727 Collins Street
Melbourne VIC 3008
GPO Box 5099 Melbourne VIC 3001
Australia
DECLARATION OF INDEPENDENCE BY TIM FAIRCLOUGH TO THE DIRECTORS OF MOBILICOM LIMITED
As lead auditor of Mobilicom Limited for the year ended 31 December 2019, I declare that, to the best
of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Mobilicom Limited and the entities it controlled during the period.
Tim Fairclough
Partner
BDO East Coast Partnership
Melbourne, 21 February 2020
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd,
a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved
under Professional Standards Legislation.
17
For personal use only
Mobilicom Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2019
Revenue
Cost of sales
Government grants
Interest received
Foreign exchange gains
Other income
Expenses
Selling and marketing expenses
Research and development
General and administration expenses
Share based payments
Finance costs
Loss before income tax expense
Consolidated
Note
2019
$
2018
$
5
6
7
8
9
3,435,361
2,640,006
(1,013,941)
(758,798)
729,167
37,325
157,827
924,319
367,695
53,954
68,561
490,210
(1,605,060)
(3,409,315)
(1,678,966)
(246,823)
(46,981)
(1,448,328)
(2,699,341)
(1,308,744)
(91,691)
-
(3,641,406)
(3,176,686)
Income tax expense
10
-
-
Loss after income tax expense for the year attributable to the owners of
Mobilicom Limited
(3,641,406)
(3,176,686)
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Re-measurement of defined benefit plans
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
Mobilicom Limited
(124,861)
30,557
(138,664)
11,017
(263,525)
41,574
(3,904,931)
(3,135,112)
Cents
Cents
Basic earnings per share
Diluted earnings per share
34
34
(1.49)
(1.49)
(1.46)
(1.46)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
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Mobilicom Limited
Consolidated statement of financial position
As at 31 December 2019
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Total current liabilities
Non-current liabilities
Lease liabilities
Employee benefits
Governmental liabilities on grants received
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2019
$
2018
$
11
12
13
14
15
16
17
18
19
20
4,710,261
1,273,118
525,047
6,508,426
4,959,245
490,144
437,483
5,886,872
180,008
946,342
1,126,350
39,111
-
39,111
7,634,776
5,925,983
1,431,742
218,754
1,650,496
986,512
-
986,512
727,253
661,331
149,931
1,538,515
-
476,798
167,680
644,478
3,189,011
1,630,990
4,445,765
4,294,993
21
22
22,884,795 19,075,915
876,677
(15,657,599)
859,975
(19,299,005)
4,445,765
4,294,993
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
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Mobilicom Limited
Consolidated statement of changes in equity
For the year ended 31 December 2019
Consolidated
Issued
capital
$
Share based
payments
reserve
$
Foreign
currency
translation
reserves
$
Re-
measurement
Accumulated
reserves
$
losses
$
Total equity
$
Balance at 1 January 2018
19,055,915
1,000,339
149,971
(386,898)
(12,480,913)
7,338,414
Loss after income tax expense
for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Share-based payments (note
35)
-
-
-
-
-
-
-
-
(3,176,686)
(3,176,686)
11,017
30,557
-
41,574
11,017
30,557
(3,176,686)
(3,135,112)
20,000
71,691
-
-
-
91,691
Balance at 31 December 2018
19,075,915
1,072,030
160,988
(356,341)
(15,657,599)
4,294,993
Consolidated
Issued
capital
$
Share based
payments
reserve
$
Foreign
currency
translation
reserves
$
Re-
measurement
Accumulated
reserves
$
losses
$
Total equity
$
Balance at 1 January 2019
19,075,915
1,072,030
160,988
(356,341)
(15,657,599)
4,294,993
Loss after income tax expense
for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Contributions of equity, net of
transaction costs (note 21)
Share-based payments
(note 35)
-
-
-
3,808,880
-
-
-
-
-
246,823
-
-
(3,641,406)
(3,641,406)
(138,664)
(124,861)
-
(263,525)
(138,664)
(124,861)
(3,641,406)
(3,904,931)
-
-
-
-
-
-
3,808,880
246,823
Balance at 31 December 2019
22,884,795
1,318,853
22,324
(481,202)
(19,299,005)
4,445,765
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
20
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Mobilicom Limited
Consolidated statement of cash flows
For the year ended 31 December 2019
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Interest received
Payments to suppliers and employees (inclusive of GST)
Government grants received
Consolidated
Note
2019
$
2018
$
3,042,000
37,325
(7,429,289)
729,167
2,566,605
53,954
(5,955,165)
367,695
Net cash used in operating activities
33
(3,620,797)
(2,966,911)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for lease liabilities
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
(176,804)
(259,425)
(7,462)
-
(436,229)
(7,462)
21
4,006,000
(217,120)
3,788,880
-
-
-
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
(268,146)
4,959,245
19,162
(2,974,373)
8,077,472
(143,854)
Cash and cash equivalents at the end of the financial year
11
4,710,261
4,959,245
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 1. General information
The financial statements cover Mobilicom Limited as a Group consisting of Mobilicom Limited and the entities it controlled at
the end of, or during, the year. The financial statements are presented in Australian dollars, which is Mobilicom Limited's
functional and presentation currency.
The functional currency of Mobilicom Limited's subsidiary, Mobilicom Ltd ("Mobilicom Israel"), is Israeli New Shekels.
Mobilicom Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business are:
Registered office
Principal place of business
C/- Mertons Corporate Services Pty Ltd
Level 7, 330 Collins Street
Melbourne, Victoria, 3000
Australia
Level 7, 90 Collins Street
Melbourne, Victoria, 3000
Australia
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 21 February 2020. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss and other comprehensive income.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 2. Significant accounting policies (continued)
Going concern
The consolidated entity incurred a net loss after tax for the year ended 31 December 2019 of $3,641,406 and had net cash
outflows from operating of $3,890,924. The consolidated entity’s ability to continue as a going concern is dependent upon
them achieving its forecasts. The financial statements have been prepared on the basis that the consolidated entity is a going
concern, which contemplates the continuity of normal business activity, realisation of assets and settlements of liabilities in
the normal course of business for the following reasons:
- As at 31 December 2019 the consolidated entity had cash and cash equivalents of $4,710,261, total assets of
$7,634,776 and net assets of $4,445,765.
- The company has recently been awarded significant customer contracts which will be implemented subsequent to
31 December 2019 which will increase revenues during FY20.
- The Directors have prepared budgets which demonstrates that, based on the above factors the consolidated entity
has sufficient funds available to meet its commitments for at least twelve months from the date of signing of this
report.
- The Board are confident of raising further capital through equity raising when deemed necessary.
- As at 31 December 2019 the backlog to be delivered and invoiced exceeded $1.7 million;
- As at the end of the financial year, the Company had a trade and other receivables balance amounting to $1,273,118.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 30.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Mobilicom Limited ('Company'
or 'parent entity') as at 31 December 2019 and the results of all subsidiaries for the year then ended. Mobilicom Limited and
its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Mobilicom Limited's presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 2. Significant accounting policies (continued)
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
Research and development
Expenditure during the research phase of a project is recognised as an expense when incurred.
Development costs are capitalised only when technical feasibility studies identify that the project will develop an intangible
asset that will be completed and available for use or sale, that there are adequate technical, financial and other resources to
complete the development, that it will deliver future economic benefits and these benefits can be measured reliably.
Impairment of financial assets
The consolidated entity assesses at the end of each reporting period whether there is any objective evidence of impairment
of financial assets carried at amortized cost.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Defined benefit plans
The Company operates a defined benefit plan in respect of severance pay pursuant to the Severance Pay Law. According
to the Law, employees are entitled to severance pay upon dismissal retirement and several other events prescribed by that
Law. The liability for termination of employee-employer relationship is measured using the projected unit credit method.
The actuarial assumptions include rates of employee turnover and future salary increases based on the estimated timing of
payment. The amounts are presented based on discounted expected future cash flows using a discount rate determined by
reference to yields on corporate bonds with a term that matches the estimated term of the benefit plan. In respect of its
severance pay obligation to certain of its employees, the Company makes current deposits in pension funds and insurance
companies ("plan assets").
Plan assets comprise assets held by a Long-term employee benefits fund or qualifying insurance policies. Plan assets are
not available to the Company's own creditors and cannot be returned directly to the Company. The liability for employee
benefits presented in the statement of financial position presents the present value of the defined benefit obligation less the
fair value of the plan assets.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the
net defined benefit liability), are recognized immediately in the statement of financial position with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or
loss in subsequent periods. Past service costs are recognised in profit or loss.
24
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 2. Significant accounting policies (continued)
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations adopted
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 January 2019. The standard replaces AASB 117 'Leases' and for
lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-
value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position.
Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included
in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the
operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the
statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments
are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a
lessor accounts for leases.
The consolidated entity has adopted this standard from 1 January 2019, and the effect of AASB 16 on its consolidated
financial statements is noted below.
Impact on application
AASB 16
On 25 October 2018, the Company entered into a new agreement for leasing offices and an R&D center in Shoham ("The
Agreement") which replaced the old lease agreement according to Note 28 of the financial statements for Dec 31, 2018.
The initial contract period began on 1 February 2019 and ends on 31 January 2024. According to the Agreement, the
Company may either end the Agreement 12 months early or exercise one or more of three options for extending the
Agreement for an additional 2 years each. On 17 February 2019, the Company relocated its offices and R&D center to
Shoham. The Company has adopted AASB 16 from this point in time.
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated.
The impact of adoption of this standard during the financial year was as follows:
Assets
Right of use assets (AASB 16)
Liabilities
Lease Liabilities - current (AASB 16)
Lease Liabilities - non-current (AASB 16)
25
Consolidated
31 December
2019
$
946,342
218,754
727,253
946,007
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 3. 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.
Share-based payments
The consolidated entity has a share based remuneration scheme for employees. The fair value of share options is estimated
by using the Black-Scholes option pricing model, on the date of grant based on certain assumptions. Those assumptions are
described in the share based payments note and include, among others, the dividend growth rate, expected share price
volatility and expected life of the options. The fair value of the equity settled options granted is charged to statement of
comprehensive income over the vesting period of each tranche and the credit is taken to equity, based on the consolidated
entity's estimate of shares that will eventually vest.
Note 4. Operating segments
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and
incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose
operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to
be allocated to the segment and assess its performance and for which discrete financial information is available. This includes
start-up operations which are yet to earn revenues. Management will also consider other factors in determining operating
segments such as the existence of a line manager and the level of segment information presented to the board of directors.
During the year the Company only operated in one segment, which is to further commercialise solutions for mission critical
and remote mobile private communications networks without the need to reply upon or utilise existing infrastructure.
Note 5. Revenue
Sale of goods
Consolidated
2019
$
2018
$
3,435,361
2,640,006
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Government Grant income
The Company receives government grant income from the Israeli Innovation Authority (formerly the Office of the Chief
Scientist) (Innovation Authority). Grant revenue is accounted for during the period in which it is received.
26
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 6. Cost of sales
Salaries and benefits
Cost of materials
Rental and office expenses
Other
Depreciation
Note 7. Selling and marketing expenses
Salaries and benefits
Marketing services
Travel expenses
Depreciation
Rental and office expenses
Other
Note 8. Research and development
Salaries and benefits
Materials
Royalties to the OCS
Subcontractors
Depreciation
Other
27
Consolidated
2019
$
2018
$
310,609
652,495
22,933
4,936
22,968
214,642
523,584
9,555
11,017
-
1,013,941
758,798
Consolidated
2019
$
2018
$
1,035,234
287,156
103,137
68,905
35,967
74,661
944,144
313,414
91,699
-
16,509
82,562
1,605,060
1,448,328
Consolidated
2019
$
2018
$
2,380,688
125,550
(13,290)
629,667
133,510
153,190
1,988,562
20,471
11,102
502,618
10,791
165,797
3,409,315
2,699,341
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 9. General and administration expenses
Salaries and benefits
Professional fees
Insurance
Travel expenses
Depreciation
Rental and office expenses
Other
Note 10. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
Other temporary differences not recognised
Income tax expense
Note 11. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
2019
$
2018
$
927,441
379,047
76,239
47,384
22,968
34,924
190,963
555,550
163,993
49,792
53,022
9,946
27,380
449,061
1,678,966
1,308,744
Consolidated
2019
$
2018
$
(3,641,406)
(3,176,686)
(1,001,387)
(873,589)
77,040
924,347
19,715
853,874
-
-
Consolidated
2019
$
2018
$
2,249,937
2,460,324
3,616,381
1,342,864
4,710,261
4,959,245
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Restricted cash is considered by Mobilicom to be deposits with banks which are used mainly as a security for guarantees
provided against customer payments in advance.
28
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 12. Current assets - trade and other receivables
Trade receivables
Other receivables
Consolidated
2019
$
2018
$
1,131,500
141,618
270,666
219,478
1,273,118
490,144
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
No allowance for expected credit losses or overdue balances are accounted for in the financial statements.
Note 13. Current assets - inventories
Finished goods - at cost
Accounting policy for inventories
Inventories are recognised at the lower of cost and net realisable value.
Note 14. Non-current assets - property, plant and equipment
Computer equipment - at cost
Less: Accumulated depreciation
Office furniture & equipment - at cost
Less: Accumulated depreciation
Machinery & equipment - at cost
Less: Accumulated depreciation
29
Consolidated
2019
$
2018
$
525,047
437,483
Consolidated
2019
$
2018
$
223,070
(194,996)
28,074
196,939
(175,620)
21,319
129,095
(11,421)
117,674
81,681
(47,421)
34,260
9,123
(3,058)
6,065
50,980
(39,253)
11,727
180,008
39,111
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 14. Non-current assets - property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 January 2018
Additions
Depreciation expense
Balance at 31 December 2018
Additions
Depreciation expense
Computer
equipment
Office
furniture &
equipment
Machinery &
equipment
$
$
$
11,899
6,536
(6,708)
11,727
30,701
(8,168)
6,704
-
(639)
6,065
119,972
(8,363)
25,271
11,731
(15,683)
21,319
26,131
(19,376)
Total
$
43,874
18,267
(23,030)
39,111
176,804
(35,907)
Balance at 31 December 2019
34,260
117,674
28,074
180,008
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Computer equipment
Machinery and equipment
Office furniture and equipment
3 years
6-7 years
10-14 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 15. Non-current assets - right-of-use assets
Land and buildings - right-of-use
Additions to the right-of-use assets during the year were $1,158,786.
Consolidated
2019
$
2018
$
946,342
-
The consolidated entity leases land and buildings for its offices in Israel under agreements for 5 years and in some cases,
options to extend. On renewal, the terms of the leases are renegotiated.
During the financial year the consolidated entity incurred finance charges amounting to $46,981 following the adoption of
AASB16.
30
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 15. Non-current assets - right-of-use assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 January 2018
Balance at 31 December 2018
Upon initial adoption of AASB16 Leases
Depreciation expense
Balance at 31 December 2019
$
Total
$
-
-
-
1,158,786
(212,444)
-
1,158,786
(212,444)
946,342
946,342
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
Note 16. Current liabilities - trade and other payables
Trade payables
Other payables
Consolidated
2019
$
2018
$
580,301
851,441
256,710
729,802
1,431,742
986,512
Refer to note 24 for further information on financial instruments.
Amounts noted above in other payables include amounts payable to Directors for wages payable.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
31
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 17. Current liabilities - lease liabilities
Lease liability
Refer to note 24 for further information on financial instruments.
Note 18. Non-current liabilities - lease liabilities
Lease liability
Refer to note 24 for further information on financial instruments.
Consolidated
2019
$
2018
$
218,754
-
Consolidated
2019
$
2018
$
727,253
-
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset
is fully written down.
Note 19. Non-current liabilities - employee benefits
Employee benefits
Consolidated
2019
$
2018
$
661,331
476,798
The company's liabilities for severance pay retirement and pension pursuant to Israeli law and employment agreements are
recognized by full - in part by managers' insurance policies, for which the company makes monthly payments and accrued
amounts in severance pay funds and the rest by the liabilities which are included in the financial statements.
The amounts funded displayed above include amounts deposited in severance pay funds with the addition of accrued
income. According to the Severance Pay Law, the aforementioned amounts may not be withdrawn or mortgaged as long as
the employer’s obligations have not been fulfilled in compliance with Israeli law.
32
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 19. Non-current liabilities - employee benefits (continued)
Statement of financial position amounts
The amounts recognised in the statement of financial position are determined as follows:
Present value of the defined benefit obligation
Fair value of defined benefit plan assets
Net liability in the statement of financial position
Movement in plan assets:
Balance at the beginning of the year
Interest income
Contributions
Re measurements gain/(loss)
Return on plan assets (excluding interest)
Foreign exchanges differences
Balance at the end of the year
Reconciliations
Reconciliation of the present value of the defined benefit obligation
Balance at the beginning of the year
Interest cost
Current service cost
Actuarial loss/(gains) from financial assumptions
Adjustments
Foreign exchanges differences
Balance at the end of the year
Note 20. Non-current liabilities - Governmental liabilities on grants received
Governmental liabilities on grants received
Consolidated
2019
$'000
2018
$'000
811,629
(150,297)
596,281
(119,483)
661,331
476,798
Consolidated
2019
$'000
2018
$'000
119,483
4,845
20,626
95,600
1,486
18,581
(5,562)
10,905
1,115
2,701
150,297
119,483
Consolidated
2019
$'000
2018
$'000
596,281
23,817
54,131
82,792
55
54,553
552,559
17,015
52,554
(25,094)
(756)
-
811,629
596,281
Consolidated
2019
$
2018
$
149,931
167,680
Accounting policy for Government liabilities on grants received
The Company measured the value of its governmental liabilities on grants received, each period, based on discounted cash
flows derived from Company's future anticipated revenues.
33
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 20. Non-current liabilities - Governmental liabilities on grants received (continued)
The Company participates in programs sponsored by the Israeli Innovation Authority- Office of Chief Scientist ("OCS"), for
the support of research and development projects. Several programs are subjected to royalties, while others are not (the
company is committed to pay royalties for the R&D programs, while the research programs does not required repayment).
In exchange for the Chief Scientist's participation in the programs, the Company is required to pay royalties to the Chief
Scientist at a rate between 3% and 3.5% of sales of developed products linked to U.S dollars, until repayment of 100% of
the amount of grants received, plus annual interest at the LIBOR rate. The company is required to pay royalties, to the OCS,
of sales to end customers of products developed with funds provided by the Chief Scientist, if and when such sales are
recognized. The obligation to pay these royalties is contingent on actual sales of the products. Changes in the liability are
recognized in research and development expenses. The exceptions of the Company to pay the grants are based on its
estimation at the end of the each year.
Note 21. Equity - issued capital
Consolidated
2019
Shares
2018
Shares
2019
$
2018
$
Ordinary shares - fully paid
257,936,715 217,626,715 22,884,795 19,075,915
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Issue of shares to Directors
Balance
Issue of shares to Directors
Placement
Placement
Placement
Capital raising costs
1 January 2018
24 October 2018
217,376,715
250,000
19,055,915
20,000
$0.08
31 December 2018
26 April 2019
26 April 2019
29 April 2019
27 June 2019
217,626,715
250,000
26,975,000
12,085,000
1,000,000
-
19,075,915
20,000
2,697,500
1,208,500
100,000
(217,120)
$0.08
$0.10
$0.10
$0.10
-
Balance
31 December 2019
257,936,715
22,884,795
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.
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.
34
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 21. Equity - issued capital (continued)
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current Company's share price at the time of the investment. The consolidated entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Note 22. Equity - reserves
Foreign currency reserve
Share-based payments reserve
Re-measurements reserve
Consolidated
2019
$
2018
$
22,324
1,318,853
(481,202)
160,988
1,072,030
(356,341)
859,975
876,677
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Re-measurements reserves
The reserve is used for remeasurements comprising actuarial gains and losses on the net defined benefit liability.
35
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 22. Equity - reserves (continued)
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 January 2018
Foreign currency translation
Share based payments
Re-measurement of defined benefit plans
Balance at 31 December 2018
Foreign currency translation
Share based payments
Re-measurement of defined benefit plans
Re-
measurement
reserve
$
Share based
payments
$
1,000,339
-
71,691
-
1,072,030
-
246,823
-
(386,898)
-
-
30,557
(356,341)
-
-
(124,861)
Foreign
currency
reserve
$
149,971
11,017
-
-
160,988
(138,664)
-
-
Total
$
763,412
11,017
71,691
30,557
876,677
(138,664)
246,823
(124,861)
Balance at 31 December 2019
(481,202)
1,318,853
22,324
859,975
Note 23. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 24. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is
exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks,
ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
36
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 24. Financial instruments (continued)
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows (holdings are shown in AUD equivalents):
Consolidated
US dollars
Euros
Israeli New Shekel
Assets
Liabilities
2019
$
2018
$
2019
$
2018
$
224,800
7,000
1,967,500
1,121,000
33,000
1,078,000
25,000
16,500
-
52,000
20,000
797,000
2,199,300
2,232,000
41,500
869,000
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis.
Price risk
Price risk is the risk that future cashflows derived from financial instruments will be changed as a result of a market price
movement, other than foreign currency rates and interest rates. The consolidated entity is not exposed to any significant
price risk.
Interest rate risk
The consolidated entity’s exposure to the risk of changes in market interest rates relates primarily to the consolidated entity’s
cash deposits with floating interest rates. These financial assets with variable rates expose the consolidated entity to interest
rate risk.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the consolidated entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
37
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 24. Financial instruments (continued)
Consolidated - 2019
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Government liabilities
Total non-derivatives
Consolidated - 2018
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Government liabilities
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
-
580,301
851,441
149,931
1,581,673
-
-
-
-
-
-
-
-
-
-
-
-
580,301
851,441
149,931
1,581,673
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
-
256,710
636,049
47,264
940,023
-
-
57,473
57,473
-
-
129,692
129,692
-
-
-
-
256,710
636,049
234,429
1,127,188
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 25. Key management personnel disclosures
Directors
The following persons were directors of Mobilicom Limited during the financial year:
Mr Oren Elkayam (Chairman and Managing Director)
Mr Yossi Segal (Executive Director)
Mr Campbell McComb (Non-executive director)
Mr Mark Licciardo (Non-executive director)
Mr Jon Brett (Non-executive director)
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
38
Consolidated
2019
$
2018
$
1,134,855
239,404
108,428
827,244
221,360
20,000
1,482,687
1,068,604
For personal use only
Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 26. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by BDO East Coast Partnership, the
auditor of the company, and its network firms:
Audit services - BDO East Coast Partnership
Audit or review of the financial statements
Other services – BDO East Coast Partnership
Preparation of tax return and other tax consulting
Audit services - BDO Israel
Audit or review of the financial statements
Other services - BDO Israel
Other
Note 27. Contingent liabilities
Consolidated
2019
$
2018
$
53,000
48,000
12,200
8,050
65,200
56,050
52,650
53,871
6,100
1,934
58,750
55,805
The Company participates in programs sponsored by the Chief Scientist ("OCS"), for the support of research and
development projects. Several programs are subjected to royalties, while others are not (the company is committed to pay
royalties for the R&D programs, while the research programs do not required repayment).
In exchange for the Chief Scientist's participation in the programs, the Company is required to pay royalties to the Chief
Scientist at a rate between 3% and 3.5% of sales of developed products linked to U.S dollars, until repayment of 100% of
the amount of grants received, plus annual interest at the LIBOR rate. The company is required to pay royalties, to the OCS,
of sales to end customers of products developed with funds provided by the Chief Scientist, if and when such sales are
recognised.
The obligation to pay these royalties is contingent on actual sales of the products. Changes in the liability are recognised in
research and development expenses. The exceptions of the Company to pay the grants are based on its estimation at the
end of the each year.
Note 28. Commitments
The Company leases premises for its offices and R&D center in Azor.
Lease commitments - operating
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
Consolidated
2019
$
2018
$
-
32,500
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 29. Related party transactions
Parent entity
Mobilicom Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 31.
Key management personnel
Disclosures relating to key management personnel are set out in note 25 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2019
$
2018
$
Payment for other expenses:
Corporate secretarial fees paid to Mertons Corporate Services Pty Ltd (an entity related to
Mark Licciardo)
Consulting fees paid to Camac Investments Pty Ltd (an entity related to Campbell McComb)
57,977
38,400
40,608
17,002
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Current payables:
Payables to related parties
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 30. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Consolidated
2019
$
2018
$
8,230
21,518
Parent
2019
$
2018
$
(6,830,526)
(5,731,613)
(6,830,526)
(5,731,613)
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 30. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Parent
2019
$
2018
$
2,589,430
1,415,089
2,589,430
1,415,089
84,699
68,676
84,699 68,676
16,921,147 13,112,267
723,220
(8,492,964)
907,074
(15,323,490)
2,504,731
5,342,523
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 31 December 2019.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2019.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2019.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except
for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 31. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance
with the accounting policy described in note 2:
Name
Principal place of business /
Country of incorporation
Ownership interest
2018
2019
%
%
Mobilicom Ltd ("Mobilicom Israel")
Israel
100.00%
100.00%
Note 32. Events after the reporting period
No matter or circumstance has arisen since 31 December 2019 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 33. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(3,641,406)
(3,176,686)
Consolidated
2019
$
2018
$
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Lease interest
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase in inventories
Decrease/(increase) in prepayments
Increase in trade and other payables
Increase in employee benefits
Increase in Government liabilities
Net cash used in operating activities
Note 34. Earnings per share
248,351
266,823
(157,827)
46,981
10,791
91,691
143,854
-
(727,477)
(87,564)
(55,830)
445,230
59,671
(17,749)
(73,400)
(133,546)
6,900
139,353
19,839
4,293
(3,620,797)
(2,966,911)
Consolidated
2019
$
2018
$
Loss after income tax attributable to the owners of Mobilicom Limited
(3,641,406)
(3,176,686)
Weighted average number of ordinary shares used in calculating basic earnings per share
244,856,674 217,423,290
Weighted average number of ordinary shares used in calculating diluted earnings per share 244,856,674 217,423,290
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(1.49)
(1.49)
(1.46)
(1.46)
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for
the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”.
The rights to options are non-dilutive as the consolidated entity is loss generating.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Mobilicom Limited , excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 35. Share-based payments
Set out below is a summary of options granted and on issue at the end of the year.
2019
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
27/04/2017
27/04/2017
10/03/2010
21/09/2011
05/11/2015
20/10/2016
25/09/2011
05/11/2015
17/04/2018
30/05/2018
20/09/2018
21/05/2019
30/05/2019
05/08/2019
27/04/2020
27/04/2022
20/03/2020
21/09/2021
25/11/2025
20/10/2026
25/09/2021
05/11/2025
16/04/2023
29/05/2024
19/09/2023
21/05/2024
25/06/2025
05/08/2022
$0.20
$0.20
$0.05
$0.05
$0.12
$0.12
$0.05
$0.12
$0.15
$0.15
$0.15
$0.15
$0.15
$0.15
3,400,000
1,850,000
460,568
460,568
307,044
614,090
1,919,030
1,151,417
5,200,000
400,000
600,000
-
-
-
16,362,717
-
-
-
-
-
-
-
-
-
-
-
300,000
3,000,000
1,500,000
4,800,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,400,000
-
1,850,000
-
460,568
-
460,568
-
307,044
-
614,090
-
1,919,030
-
1,151,417
-
5,200,000
-
400,000
-
600,000
-
300,000
-
3,000,000
-
1,500,000
-
- 21,162,717
During the year, the company granted the following options:
- 300,000 options to a consultant of the Company;
- 3,000,000 options granted to the Company's Non-executive Directors; and
- 1,500,000 options in relation to corporate advisory services provided to the Company.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
21/05/2019
30/05/2019
05/08/2019
21/05/2024
27/06/2024
05/08/2022
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
$0.09
$0.09
$0.08
$0.15
$0.15
$0.15
82.12%
71.01%
69.36%
-
-
-
1.27%
1.27%
0.91%
$0.0505
$0.0477
$0.0262
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the
consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
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Mobilicom Limited
Notes to the consolidated financial statements
31 December 2019
Note 35. Share-based payments (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The
cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
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Mobilicom Limited
Directors' declaration
31 December 2019
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Australian Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
31 December 2019 and of its performance for the financial 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.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Oren Elkayam
Chairman and Managing Director
21 February 2020
Tel Aviv
45
For personal use only
Tel: +61 3 9603 1700
Fax: +61 3 9602 3870
www.bdo.com.au
Collins Square, Tower Four
Level 18, 727 Collins Street
Melbourne VIC 3008
GPO Box 5099 Melbourne VIC 3001
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Mobilicom Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Mobilicom Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 31 December 2019, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2019 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of
BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd
are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of
independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
46
For personal use only
Key audit matter
How the matter was addressed in our audit
Significant Overseas Operations
The Group’s structure comprises significant overseas
operations. The existence of such operations heightens
the importance of engaging with the component
auditor to mitigate the risk associated with delivering
an audit in a location and regulatory environment other
than Australia.
Our procedures included but were not limited to:
• Gaining an understanding of the Group, its
components and the environment it operates in
to identify the risks of material misstatement to
the Group’s financial report; and
• Engaging component auditors in Israel.
As part of this matter we evaluated:
• Their understanding of the ethical requirements
and their professional competence to ensure
they were competent and independent;
• The business activities of the component that
were significant to the Group audit through
regular teleconferences throughout the audit
process;
• The susceptibility of the component's financial
information to material misstatement from
fraud and error; and
• Review of the component auditor's working
papers and deliverables, in particular the areas
that were key to the Group audit.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 31 December 2019, but does not include
the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group 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 to cease
operations, or has no realistic alternative but to do so.
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Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 10 to 14 of the directors’ report for the
year ended 31 December 2019.
In our opinion, the Remuneration Report of Mobilicom Limited, for the year ended 31 December 2019,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO East Coast Partnership
Tim Fairclough
Partner
Melbourne, 21 February 2020
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Mobilicom Limited
Shareholder information
31 December 2019
The shareholder information set out below was applicable as at 28 January 2020.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Number
of holders
Number
of unlisted of options
options
%
Number
of holders Number
%
of unlisted of ordinary of ordinary ordinary
options
shares
shares
shares
-
-
-
4
34
-
-
-
400,00
20,762,717
-
-
-
1.89
98.11
12
36
96
1,787
148,950
823,271
239 10,299,045
160 246,663,663
-
0.06
0.32
3.99
95.63
38
21,162,717
100.00
543 257,936,716
100.00
-
-
-
36
93,906
-
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable
parcel
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
issued
Number held
105,507,909
11,391,741
8,791,191
5,000,000
4,823,941
4,074,370
3,917,645
3,894,864
3,750,000
3,475,000
2,899,117
2,742,713
2,530,587
2,500,000
2,285,386
2,127,515
1,920,945
1,654,320
1,585,277
1,579,034
40.90
4.42
3.41
1.94
1.87
1.58
1.52
1.51
1.45
1.35
1.12
1.06
0.98
0.97
0.89
0.82
0.74
0.64
0.61
0.61
176,451,555
68.39
Ibi Trust Management
Zelwer Superannuation Pty Ltd (Zelwer Super Benefit Fnd A/C)
Hsbc Custody Nominees (Australia) Limited
Nabe Pty Ltd (The Glass A/C)
National Nominees Limited
Hershman Holdings Llc
MCR19 Holdings LLC
Mr Alan Hirmes
UBS Nominees Pty Ltd
Hsbc Custody Nominees (Australia) Limited - A/C 2
Bnp Paribas Nominees Pty Ltd (Ib Au Noms Retailclient Drp)
Lancing Liquid Relative Value Fund
Steven & Mali Shwartz Llc
Mrs Narelle Fay
Citicorp Nominees Pty Limited
Mr John Plummer
Carrier International Pty Limited (Super Fund A/C)
Mr Paul J Cozzi
Australian Executor Trustees Limited (No 1 Account)
Muhlbauer Investments Pty Ltd (Muhlbauer Family A/C)
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Mobilicom Limited
Shareholder information
31 December 2019
Unquoted equity securities
Substantial holders
Substantial holders in the Company are set out below:
Oren Elkayam
Yossi Segal
Zelwer Superannuation Pty Ltd and Manar Nominees Pty Ltd
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
% of total
shares
issued
Number held
37,499,774
31,092,158
12,987,842
14.54
12.05
5.04
Ordinary shares
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.
Consistency with business objectives - ASX Listing Rule 4.10.19
In accordance with Listing Rule 4.10.19, the Group states that it has used the cash and assets in a form readily convertible
to cash that it had at the time of admission in a way consistent with its business objectives. The business objectives are to
develop the business of Mobilicom Limited in line with its business model.
The consolidated entity believes it has used its cash in a consistent manner to which was disclosed under the Prospectus
dated 21 March 2017.
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