Ocean Grown Abalone Limited
ACN 148 155 042
2020 ANNUAL REPORT
For The Year Ended 30 June 2020
O C E A N G R O W N A B A L O N E L I M I T E D
C O N T E N T S
Corporate Directory
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
Additional Securities Exchange Information
Page No
2
3
16
17
18
19
20
21
52
53
57
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
1
O C E A N G R O W N A B A L O N E L I M I T E D
C O R P O R A T E D I R E C T O R Y
Directors
Peter Harold – Non-Executive Chairman
Bradley (Brad) Adams – Managing Director
Ignazio (Ian) Ricciardi – Non-Executive Director
Danielle Lee – Non-Executive Director
Company Secretary
Romolo Santoro
Registered Office
Level 3, 3 Cantonment Street
Fremantle WA 6160
Telephone: +61 8 6181 8888
Facsimile: +61 8 6181 8899
Email: investors@oceangrown.com.au
Website Address: www.oceangrown.com.au
Principal Place of Business
Augusta Boat Harbour
Leeuwin Road
Augusta WA 6290
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Australian Securities Exchange
ASX Code Ordinary Shares: OGA
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Enquiries (within Australia): 1300 288 664
Enquiries (outside Australia): +61 2 9698 5414
Facsimile: +61 8 9321 2337
Website: www.automic.com.au
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The Directors present the financial report for Ocean Grown Abalone Limited (the Company or OGA) and its subsidiaries (the
Consolidated Group) for the year ended 30 June 2020.
DIRECTORS
The following persons were Directors of the Company during and up to the date of this report:
Peter Harold
Bradley (Brad) Adams
Ignazio (Ian) Ricciardi
Danielle Lee
Non-Executive Chairman
Managing Director
Non-Executive Director (appointed 1 November 2019)
Non-Executive Director
The qualifications and experience of the Directors and Company Secretary are as follows:
Mr Peter Harold
Non-Executive Chairman - BAppSc(Chemistry) (Melb Uni), FAICD
Peter is the Managing Director of Poseidon Nickel Limited (ASX:POS) and is a process engineer with over 30 years of
corporate experience in the minerals industry, specialising in financing, marketing, project development and operating,
business development and general corporate activities. Peter was the Managing Director of Panoramic Resources Limited
(ASX:PAN) for 18.5 years. Prior to founding Panoramic Resources in March 2001, Peter held various senior management
positions with Shell Australia, Australian Consolidated Minerals Limited, Normandy Mining Limited, MPI Mines Limited and
the Gutnick network of companies. Peter resigned as Non-Executive Chairman of Horizon Gold Limited (ASX:HRN) in
November 2019 and resigned as Non-Executive Director of Pacifico Minerals Limited (ASX:PMY) in April 2020. Peter is the
immediate past Chairman of Youth Focus, having served on the board for 9.5 years. Youth Focus is a not-for-profit charity
working to prevent youth suicide and depression.
Special responsibilities:
Chairman of the Board
Member of the Remuneration and Nomination Committee
Member of the Audit and Risk Committee
Other Public Company Directorships held in the past 3 years:
Company Name and Code
Poseidon Nickel Limited
(ASX:POS)
Panoramic Resources Limited
(ASX:PAN)
Pacifico Minerals Limited
(ASX:PMY)
Peak Resources Limited
(ASX:PEK)
Horizon Gold Limited (ASX:HRN)
Position/s Held
Managing Director
Managing Director
Non-Executive Director
Non-Executive Chairman
Non-Executive Chairman
Mr Brad Adams
Managing Director - BSc(Biology), G.Dip(Aqua) MBA
Dates (month/year)
Appointed: March 2020
Ceased: N/A
Appointed: April 2001
Ceased: August 2019
Appointed: August 2013
Ceased: April 2020
Appointed: December 2015
Ceased: December 2017
Appointed: August 2016
Ceased: November 2019
Brad is a third-generation fisherman and has worked as a commercial abalone diver along Western Australia’s south coast
for 12 years. In the 1990’s, Brad was involved in setting up one of Tasmania’s first abalone farms – Tasmanian Tiger Abalone,
which later became Cold Gold Abalone.
Brad has been actively involved in Abalone Aquaculture research and development in Western Australia since 2000. Brad
was a director of the Western Australian Fishing Industry Council from 2009 to 2011 and Chairman from 2011 to 2013. He
holds an MBA and Bachelor of Applied Science, Biology from Curtin University of Technology and a Graduate Diploma,
Aquaculture from the University of Tasmania. Brad has been a Director of and served in an executive capacity for Ocean
Grown Abalone Limited since July 2013.
Special responsibilities:
Member of the Remuneration and Nomination Committee
Other Public Company Directorships held in the past 3 years:
Company Name and Code
Position/s Held
Dates (month/year)
N/A
N/A
N/A
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Mr Ian Ricciardi (Appointed on 1 November 2019)
Non-Executive Director
Ian has been involved in the Western Australian Fishing Industry since 1975. Ian has worked on and operated prawn trawlers
in Shark Bay, Gulf of Carpentaria and Kimberly Prawn Fisheries. Ian also has interests in the South West Trawl Fishery,
through One Sea Pty Ltd – Rottnest Island Scallop. The Ricciardi Family built and operated an Export Food Processing Facility
in North Coogee and holds 50% interest in Fremantle City Coldstores. Ian held the position of President of Shark Bay Prawn
Association for 10 years and has significant experience in WA Fisheries-related processes.
Special responsibilities:
Member of the Audit and Risk Committee
Other Public Company Directorships held in the past 3 years:
Company Name and Code
Position/s Held
Dates (month/year)
N/A
N/A
N/A
Ms Danielle Lee
Non-Executive Director – B.Ec LLB, GDipFinInv
Danielle is an experienced corporate lawyer with more than 25 years of experience shared between private law firms and the
Australian Securities Exchange. She has a broad range of skills and legal experience in the areas of corporate advisory,
governance and equity capital markets. She has advised a range of Australian public and private companies in a range of
industries on corporate transactions including capital raisings, ASX listings, business and share acquisitions, shareholder
agreements and joint venture agreements.
Special responsibilities:
Chairman of the Remuneration and Nomination Committee
Chairman of the Audit and Risk Committee
Other Public Company Directorships held in the past 3 years:
Company Name and Code
Position/s Held
Dates (month/year)
Hazer Group Limited
(ASX:HZR)
Director
Appointed: September 2015
Ceased: N/A
DIRECTORS’ INTERESTS
The relevant interests of each director in the securities of the Company at the date of this report are as follows:
Director
Shares
Options
Peter Harold
Danielle Lee
Brad Adams
Ian Ricciardi
135,000 1,500,0001
- 1,000,0001
6,826,055
16,521,127
-
-
Performance
Rights
-
-
4,000,0002
-
NOTE:
1. These Options are Series C Options and have an exercise price of 44 cents and an expiry date of 30 September 2021.
2. Refer to KMP Performance Rights for B Adams in the Remuneration Report (Audited) for further detail.
COMPANY SECRETARY
Romolo Santoro
BAppSc, BBus, CA, MBA, AGIA, ACIS, Chartered Secretary
Mr Santoro is an experienced executive with a broad range of experience in commercial developments, corporate governance
and company administration having worked for a number of ASX listed and other companies over a broad range of industries.
Mr Santoro is a Member (ACA) of the Institute of Chartered Accountants Australia and New Zealand, an Associate Member
of the Governance Institute of Australia and the Institute of Chartered Secretaries and Administrators/Chartered Secretary
and Graduate of the Australian Institute of Company Directors. Mr Santoro has worked with the Company as Chief Financial
Officer since October 2017 and Company Secretary from 30 November 2018 and is well placed to assist the Company in its
ongoing development.
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PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Group during the course of the financial year were the development of its sea
ranching hardware design and processes that allows for near-shore aquaculture (Ranching). The Company has focused its
attention on optimizing its operating activities in Flinders Bay WA, which included the completion and opening of its export
seafood processing facility.
The location of the new processing facility in the Augusta boat harbour has enabled operational efficiencies with diving
operations and increased processing capacity.
The new processing facility has increased the capability to value-add to abalone product development, including the supply
of live abalone to export markets. Improvements in quality are also evident with shorter travel distances to deliver harvested
abalone for processing and improved processing techniques, combined this is anticipated to result in increases in processing
recovery rates.
REVIEW OF OPERATIONS AND FINANCIAL RESULTS
The Group's major activities for the year were:
harvesting of abalone from the Flinders Bay ranch;
maintenance of existing reefs, including re-seeding of juvenile abalone to sustain future harvest production;
establishing the new processing facility and implementation processing systems and processes;
optimisation of existing operations to increase future yields;
ranching technology development, for use in future developments and application at existing operating locations;
development of export supply chains into Asia;
capital raising activities via rights issue; and
completion of a concept design study for hatchery and grow-out facility in Esperance.
The sales revenue generated from production was $2,529,832 for the year ended 30 June 2020, (2019: $3,059,756).
Operating loss before tax for the year ended 30 June 2020 amounted to $5,805,552 (2019: Profit before tax of $2,370,024).
The net loss of the Group for the year, after provision for income tax, was $4,565,020 (2019: Profit after tax $1,033,625).
Operations
A total of 54.7 tonnes whole in shell equivalent (WWE) (2019: 55.0 tonnes) of abalone was harvested and the biomass
increased by a further 12.5 tonnes to 247.1 tonnes at the end of June 2020 (2019: 234.6 tonnes).
Re-seeding of juvenile abalones continued throughout the financial year with a total of approximately 1,260,900 abalones
restocked on the Flinders Bay reefs.
Diving operations were relocated to the new processing facility in the Augusta boat harbour during the financial year. This
has resulted in improvements in diver utilisation, with shorter travel times and efficiency gains having equipment located at
the harbour, and has reduced travel times for harvested product, translating into improved quality of the harvested abalone.
Sales totalled 48.4 tonnes WWE of abalone product during the year, which comprised individual quick frozen (IQF) meat
product, live, retort pouch gift packs, canned, whole frozen product and abalone shells, with 40.2 tonnes WWE of product
exported to customers mostly in Asian markets.
The COVID-19 pandemic has seen a change in market conditions for seafood products, impacting demand and prices,
including OGA’s products, which has adversely affected sales for the financial year, resulting in the Company modifying its
sales strategy.
The Company has traditionally targeted the premium market segment for its abalone products, as a luxury item, with the onset
of COVID-19, demand and prices have dropped for discretionary goods. Logistic services have become increasingly difficult
to access for the seafood industry, including OGA, and where they are available, these have also attracted increased prices.
The Company has responded to the COVID-19 challenges, changing its sales and marketing strategy; focusing on domestic
markets; collaborating with other export seafood industry participants, diversifying products produced; and expanding sales
resource capacity.
At a cost level, OGA has either reduced or deferred expenditure, including the executive management and board reducing
their remuneration, and there has been a reduction in the Company’s total headcount.
During the financial year, a mortality anomaly was identified on the Company's oceanic reefs, and the Company undertook
investigations to determine the cause and extent of the mortalities. Samples of abalones were analysed by the Western
Australian Department of Primary Industries and Regional Development (DPIRD). They concluded that the cause of the
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increased mortalities related to the combination of a warm water event with lower food availability due to a long period of low
swells. There was no evidence of any disease. During the analysis period, the weather conditions improved with increased
swells, bringing more food and lowering the water temperature over the leased area, resulting in mortalities subsiding.
The Company's new processing facility was handed over on 31 May 2019, and the fit-out was completed and became fully
operational in November 2019. The new processing facility provides increased processing capacity for harvested abalones
and enables further value-adding to abalone products, including live exports and other processed and packaged abalone
products. The processing facility is an integral part of growing the business.
Esperance Development
During the financial year, the Company completed an independent Concept Design Study (Design Study) for the proposed
development of a 500-tonne p.a. grow-out facility and hatchery with positive results.
The Design Study focused on determining the suitability of the Esperance Project Land (Land) to meet the Company’s strategy
of vertical integration and growth of existing ocean ranching operations by the development of a large-scale land-based
abalone hatchery and grow-out facility (abalone hatchery) on the Land. Approximately $450,000 has been spent on the
Esperance development for the 2020 financial year, including expenditure on consultants and legal fees.
During this period of uncertainty due to COVID-19, OGA has put on hold any further material expenditure on its Esperance
feasibility study, only working on approvals and deferring all other feasibility expenditure to future periods.
Corporate
During the financial year, the Company raised $2,899,618 (before costs) via a fully underwritten rights issue.
On 1 November 2019, Ian Ricciardi resigned as Executive Director, he continued in his role in the Company as Non-Executive
Director.
Following announcements by the World Health Organisation (WHO) declaring the spread of COVID-19 as a global pandemic
in March 2020, the Company explored all government and commercial relief initiatives available including the JobKeeper,
Payroll Tax relief and Australian Taxation Office (ATO) small business relief in the form of Cash Flow Boost.
Due to a downturn in sales revenue, the Company met selected criteria, qualifying for the Government's JobKeeper initiative,
which has resulted in a direct cash injection of $204,000 for the financial year for Ocean Grown Abalone and its subsidiaries.
The JobKeeper has also allowed the Company to keep the majority of its permanent and casual positions.
OGA and its subsidiary companies also received a combined total of $110,728 from the Australian Taxation Office via the
'Cash Flow Boost' initiative for the financial year.
COVID-19 relief measures included a waiver to payroll tax from March to June 2020 as well as a one-off grant of $17,500 to
be distributed in the first quarter of the 2021 financial year. The Office of State Revenue (OSR) also announced that the
JobKeeper Payment Scheme would also be exempt from payroll tax.
Other commercial savings included a waiver for aquaculture licence and vessel pen fees in Augusta and Esperance totalling
approximately $29,000 and a deferral of aquaculture lease fees.
From 9 April 2020, the board agreed to reduce their base employment benefits and directors’ fees by 10% in light of the
COVID-19 pandemic to assist in reducing costs.
Although the global pandemic of COVID-19 has had an adverse impact to the business, key management has adapted and
put in place strategies such as reducing discretionary spending, reducing the number of permanent positions no longer
required and increasing the focus on domestic markets.
DIVIDEND PAID OR RECOMMENDED
During the financial year, the Company did not declare or pay any dividends.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The COVID-19 pandemic has seen a change in market conditions for seafood products, impacting demand and prices,
including OGA’s products.
As the Company’s biomass continues to mature, OGA now has higher volumes available to supply into seafood markets, that
are expected to continue to experience lower demand and prices in the near-term. The one benefit of the Company’s abalone
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business model is that the majority of its abalone can remain in the ocean, continuing to grow, in anticipation of improved
market conditions.
The Company and many other seafood industry participants are also faced with increasing challenges in coordinating
logistics, at higher than historical costs. However, OGA is actively exploring solutions to increase its sales, which includes
using new methods to increase sales from collaborating with other seafood industry players and developing new domestic
logistic solutions to provide economical access to OGA’s products.
In November 2019, the Company offered non-renounceable pro-rata entitlement to 1 new share for every 8 shares held at an
issue price of 13 cents per new share to raise $2,899,618 to progress the Esperance feasibility study for the development of
a hatchery and 500-tonne p.a. grow out facility. A total of 22,304,754 shares were issued in December 2019 to bring the total
of issued ordinary shares to 200,742,780.
EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD
Significant matters that have arisen since the end of the financial year are:
The full impact of the COVID-19 outbreak continues to evolve at the date of this report. The Group is therefore uncertain as
to the full impact that the pandemic will have on its financial condition, liquidity, and future results of operations during FY2021.
Management is actively monitoring the global situation and its impact on the Group's financial condition, liquidity, operations,
suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its
spread, the Group is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition,
or liquidity for the 2021 financial year.
Although the Group cannot fully estimate the length or gravity of the COVID-19 effect, from its initial assessment, it is expecting
to be able to continue as a going concern.
Other than as disclosed above or in the financial statements, there are no other significant matters sufficiently advanced or
at a level of certainty that would require disclosure, arisen since the end of the financial year, which significantly affects the
operations of the Consolidated Group, the results of those operations or the state of affairs of the Consolidated Group in
future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Consolidated Group will continue to carry on its business plan by:
continuing to manage its research and development activities in Augusta with the longer-term aim of achieving
commercial operations;
developing its local supply chains; and export supply chains into Asia, USA, and Europe; and
further expanding the current Augusta operations and continue other trial and research programs at other sites
around Australia, including Esperance (Wylie Bay ranch) and Esperance 500 tonnes p.a. abalone hatchery and grow
out facility.
OPTIONS
At the date of this report, the unissued ordinary shares of Ocean Grown Abalone Limited under option are as follows:
Grant date
Expiry date
1 Aug 2017
1 Aug 2017
1 Aug 2017
28 Dec 2020
30 Sep 2021
30 Sep 2021
Exercise
price
$0.30
$0.39
$0.44
Total
Number of
options
8,807,452
10,039,450
2,500,000
21,346,902
All of these options remained outstanding at balance date.
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PERFORMANCE RIGHTS
At the date of this report, the unissued ordinary shares of Ocean Grown Abalone Limited under performance rights are as
follows:
Class
Grant date
C
1 Aug 2017
Value per
share
$0.20
Total
Number of
performance
rights
4,000,000
4,000,000
All of these performance rights remained outstanding at balance date.
DIRECTORS’ MEETINGS
The number of Directors’ Meetings (including meetings of Committees of Directors) held during the year, and the number of
meetings attended by each Director is as follows:
Director’s name
Peter Harold
Danielle Lee
Brad Adams
Ian Ricciardi
Board
Meetings
A
11
11
11
11
B
11
11
11
11
Audit
and
Risk
Committee
Nomination
And
Remuneration
Committee
A
2
2
-
2
B
2
2
2*
2
A
2
2
2
-
B
2
2
2
1*
Where:
column A is the number of meetings the Director was entitled to attend; and
column B is the number of meetings the Director attended.
* Attended meetings by invitation.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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REMUNERATION REPORT (AUDITED)
This remuneration report, which forms part of the directors’ report, sets out information about the remuneration of Ocean
Grown Abalone Limited’s key management personnel for the financial year ended 30 June 2020. The term ‘key management
personnel’ (‘KMP’) refers to those persons having authority and responsibility for planning, directing and controlling the
activities of the Consolidated Group, directly or indirectly, including any director (whether executive or otherwise) of the
Consolidated Group.
KEY MANAGEMENT PERSONNEL
The directors and other key management personnel of the Consolidated Group during or since the end of the financial year
were:
Non-Executive Directors
Peter Harold
Ian Ricciardi
Danielle Lee
Executive officers
Brad Adams
Ian Ricciardi
Romolo Santoro
Position
Chairman, Non-Executive Director
Non-Executive Director (appointed 1 November 2019 – Previously Executive Director)
Non-Executive Director
Position
Managing Director
Executive Director (resigned 1 November 2019)
Chief Financial Officer and Company Secretary
Except as noted, the named persons held their current position for the whole of the financial year and since the end of the
financial year.
REMUNERATION POLICY AND PRINCIPLES
Executive Director Remuneration
Executive pay and reward consist of a base fee and short term performance incentives. Long term performance incentives
may include options granted at the discretion of the Board and subject to obtaining the relevant approvals. The grant of options
is designed to recognise and reward efforts as well as to provide additional incentive and may be subject to the successful
completion of performance hurdles.
Executives are offered a competitive level of base pay at market rates (for comparable companies) and are reviewed annually
to ensure market competitiveness.
The remuneration policy is designed to encourage superior performance and long-term commitment to OGA. At this stage
of the Company’s development there is no contractual performance based remuneration.
Non-Executive Director Remuneration
The Company's policy is to remunerate non-executive Directors at a fixed fee for time, commitment and responsibilities.
Remuneration for Non-Executive Directors is not linked to individual performance. Given the Company is at its early stage of
development and the financial restrictions placed on it, the Company may consider it appropriate to issue unlisted options to
Non-Executive Directors, subject to obtaining the relevant approvals. This Policy is subject to annual review. All of the
Directors' option holdings are fully disclosed. From time to time the Company may grant options to non-executive Directors.
The grant of options is designed to recognise and reward efforts as well as to provide Non-Executive Directors with additional
incentive to continue those efforts for the benefit of the Company.
Non-Executive Directors are remunerated for their services from the maximum aggregate amount (currently $300,000 per
annum) approved by shareholders for this purpose. They receive a base fee which is currently set at $50,000 including
superannuation per annum per non-executive Director and $60,000 including superannuation per annum for the non-
executive Chairman. There are no termination payments to non-executive Directors on their retirement from office.
Executive Officer Remuneration, excluding Executive Directors
The remuneration structure for Executive Officers, excluding Executive Directors, is based on a number of factors, including
length of service, the particular experience of the individual concerned, and the overall performance of the Company. The
contracts for service between the Company and specified Directors and Executives are on a continuing basis, the terms of
which are not expected to change in the immediate future. Upon retirement Executive Directors and Executives are paid
employee benefit entitlements accrued to the date of retirement.
As an incentive, the Company has adopted an employee share option plan. The purpose of the plan is to give employees,
excluding directors of the Company an opportunity, in the form of options, to subscribe for shares. The Directors consider the
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plan will enable the Company to retain and attract skilled and experienced employees and officers, and provide them with the
motivation to make the Company more successful.
To ensure the executive reward framework is competitive and appropriate for the results delivered, the Board has appointed
a Remuneration and Nomination Committee to assist the Board by making recommendations on remuneration packages for
the Groups KMP’s.
The Remuneration and Nomination Committee is responsible for ensuring the KMP’s reward framework aligns executive
reward with the achievement of strategic objectives and the creation of value for shareholders. The Board seeks to ensure
that KMP’s reward is consistent with the following:
All KMP receive a base salary (which is based on factors such as length of service and experience), superannuation,
fringe benefits, options and performance incentives.
Performance incentives are generally only paid once predetermined key performance indicators (KPIs) have been
met.
Incentives paid in the form of options or rights are intended to align the interests of the directors and Company with
those of the shareholders.
The remuneration committee reviews KMP packages annually by reference to the Consolidated Group's
performance, executive performance and comparable information from industry sectors.
The performance of KMPs is measured against criteria agreed with each executive and is focused on increasing shareholder
value. All bonuses and incentives are linked to predetermined performance criteria. The Board may, however, exercise its
discretion in relation to approving incentives, bonuses, options or performance rights and can recommend changes to the
committee's recommendations. The policy is designed to reward executives for performance leading to long-term growth in
shareholder wealth.
Performance-based Remuneration
KPIs are set annually, with measures specifically tailored to the area each individual is involved in and has a level of control
over. The KPIs target areas the Board believes hold the greatest potential to increase shareholder value, covering financial
and non-financial as well as short and long-term goals.
Performance in relation to the KPIs is assessed annually, with bonuses being awarded depending on the number and deemed
difficulty of the KPIs achieved. Following the assessment, the KPIs are reviewed by the remuneration committee in light of
the desired and actual outcomes.
Relationship between remuneration policy and Company performance
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and executives.
Ocean Grown Abalone Limited is in the early development phase of its operations, and due consideration is made of
developing long term shareholder value. The Board has regard to the following indices in respect of the current financial year
to facilitate the long-term growth of the Consolidated Group:
Item
2020
2019
Sales Revenue ($)
Biomass (Tonnes)
Harvest (Tonnes)
Profit/(Loss) Before Tax ($)
Basic earnings per share (Cents)
Increase/(decrease) in share price (%)
2,529,832
247.1
54.7
3,059,756
234.6
55.0
(5,805,552) 2,370,024
(2.40)
(35.9%)
0.59
(14.3%)
2018
Restated
2,053,748
161.8
38.1
(3,046,512)
(2.10)
(30.8%)
2017
2016
744,713
121.9
17.2
(1,549,568)
(1.85)
N/A
291,679
87.2
0.9
(1,123,232)
(2.79)
N/A
Performance Conditions Linked to Remuneration
The Consolidated Group seeks to emphasise reward incentives for results and continued commitment to the Consolidated
Group through the provision of various reward schemes.
The performance-related proportions of remuneration based on these targets are included in the following table. The objective
of the reward schemes is to reinforce the short and long-term goals of the Consolidated Group and provide a common interest
between management and shareholders.
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Employment Details of Members of Key Management Personnel
The following table provides employment details of persons who were, during the financial year, members of KMP of the
Consolidated Group. The table also illustrates the proportion of remuneration that was performance and non-performance
based.
Short-term employee benefits
Post-
employment
benefits
Cash
Bonus
$
Non-
monetary
$
Other
$
Super-
annuation
$
Long-term
employee
benefits
Long
Service
Leave
$
Share
Based
payments
Options
& rights
Performance
Related
Total
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,087
3,878
8,055
20,776
18,803
56,599
-
-
-
-
-
-
-
-
-
-
-
-
58,633
44,695
108,374
265,968
216,734
694,404
-
-
-
-
-
-
1 Resigned as Executive Director and appointed as Non-Executive Director on 1 November 2019.
2 From 9 April 2020, all Directors and Executive Management agreed to reduce their base employment benefits and directors fees by 10%
to assist in mitigating the costs of the COVID-19 pandemic.
Short-term employee benefits
Post-
employment
benefits
Cash
Bonus
$
Non-
monetary
$
Other
$
Super-
annuation
$
Long-term
employee
benefits
Long
Service
Leave
$
Share
Based
payments
Options
& rights
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,205
3,470
20,531
14,250
17,624
61,080
-
-
-
-
-
-
-
-
(113,473)1
-
26,668
(86,805)
651,116
Performance
Related
%
-
-
(72)
-
12
(60)
Total
60,000
40,000
157,058
164,250
229,808
Salary
& fees
$
2020
Non-executive directors
P Harold2
53,546
D Lee2
40,817
I Ricciardi1,2
100,319
Executive officers
B Adams2
R Santoro2
245,192
197,931
Total
637,805
Salary
& fees
$
2019
Non-executive directors
54,795
P Harold
36,530
D Lee
Executive officers
B Adams
I Ricciardi
R Santoro
250,000
150,000
185,516
Total
676,841
1 Reversal value of Class B and Class C performance rights for Managing Director, Brad Adams. Refer to Note 25. Share-Based Payments.
The following table provides employment details of persons who were, during the financial year, members of KMP of the
Consolidated Group. The table also illustrates the proportion of remuneration that was performance and non-performance
based.
Position Held
as at 30 June 2020
Contract Details (Duration and
Termination)
Annual Salary
including
Superannuation
Proportions of Elements
of Remuneration Related
to Performance (Other
than Options Issued)
Non-salary
Cash-based
Incentives
%
Shares
/Units
%
Proportions of
Elements of
Remuneration
Not Related to
Performance
Fixed Salary
/Fees
%
2020
Non-executive directors
P Harold
D Lee
I Ricciardi1
Chairman
Non-Executive Director
Non-Executive Director
Executive officers
B Adams
R Santoro
Managing Director
Chief Financial Officer
No fixed term.
No fixed term.
No fixed term.
$60,000
$50,000
$50,000
No fixed term. 12 months’ notice.
No fixed term. 6 months’ notice.
$273,750
$228,800
-
-
-
-
-
-
-
-
-
-
100
100
100
100
100
1 Resigned as Executive Director and appointed as Non-executive Director on 1 November 2019.
The employment terms and conditions of all KMP are formalised in contracts of employment.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
11
O C E A N G R O W N A B A L O N E L I M I T E D
D I R E C T O R S ’ R E P O R T
Cash Bonuses, Performance-related Bonuses and Share-based Payments
The following table summarises the performance-related payments for 2020:
Remuneration
Type
No.
P Harold
D Lee
B Adams
B Adams
Options1
Options1
Performance Rights2
Performance Rights2
1,500,000
1,000,000
4,000,000
4,000,000
Grant
Date
1/08/17
1/08/17
1/08/17
1/08/17
Fair
Value
$
130,943
87,296
800,000
800,000
Percentage
Vested/Paid
during Year
%
Percentage
Forfeited
during Year
%
-
-
-
-
-
-
100
-
Percentage
Remaining
as
Unvested
%
-
-
-
100
Expiry Date
for Vesting or
Payment
30/09/21
30/09/21
14/11/19
14/11/22
1 Options were granted as part of the engagement of non-executive directors at an exercise price of $0.44.
2 Performance rights were granted to Brad Adams. Class B Performance rights lapsed on 15 November 2019. Refer to KMP
Performance Rights below.
The following table summarises the performance-related payments for 2019:
Remuneration
Type
No.
Grant
Date
P Harold
D Lee
B Adams
B Adams
B Adams
R Santoro
Options1
Options1
Performance Rights2
Performance Rights2
Performance Rights2
Performance Rights3
1,500,000
1,000,000
4,000,000
4,000,000
4,000,000
172,054
1/08/17
1/08/17
1/08/17
1/08/17
1/08/17
23/11/18
Fair
Value
$
130,943
87,296
800,000
800,000
800,000
26,668
Percentage
Vested/Paid
during Year
%
Percentage
Forfeited
during Year
%
-
-
100
-
-
100
-
-
-
-
-
-
Percentage
Remaining
as
Unvested
%
-
-
-
100
100
-
Expiry Date
for Vesting or
Payment
30/09/21
30/09/21
31/12/18
14/11/19
14/11/22
30/06/19
1 Options were granted as part of the engagement of non-executive directors at an exercise price of $0.44.
2 Performance rights were granted to Brad Adams. Refer to KMP Performance Rights below.
3 Performance rights were granted to Romolo Santoro. Refer to KMP Performance Rights below.
KMP Performance Rights
Brad Adams
The Company previously issued 12,000,000 Performance Rights to Brad Adams, the Managing Director during the 2018
financial year. The Performance Rights have been issued in 3 classes, including service and performance conditions as
follows:
Number of
Performance
Rights
Class A
4,000,000
Service Condition
Performance Condition
Brad Adams to remain engaged as an
employee for a continuous period until
the performance condition is satisfied.
(a) Prior to 31 December 2018, the Company completes its
Flinders Bay 2 Project in Augusta, with completion deemed to
occur upon the deployment and seeding of 5,000 ABITATS at
the Flinders Bay 2 Project site. or
Class B
4,000,000
Brad Adams to remain engaged as an
employee for a continuous period until
the performance condition is satisfied.
Class C
4,000,000
Brad Adams to remain engaged as an
employee for a continuous period until
the performance condition is satisfied.
(b) Prior to 31 December 2018 a Takeover Event1 occurs.
(a) Within 2 years from the date the Company is admitted to
the Official List of the ASX, the Company recognises revenue
from the sale of 100 tonnes of abalone combined from
Flinders Bay 1, Flinders Bay 2, Wylie Bay and Port Lincoln
Development projects in any 12- month period. or
(b) Within 2 years from the date the Company is admitted to
the Official List of ASX a Takeover Event1 occurs.
(a) Within 5 years from the date the Company is admitted to
the Official List of the ASX, and subject to the Board
determining the success of a material part of the Port Lincoln
Development Project, the Company (either on its own or
together with an affiliate or joint venture partner) deploys and
seeds a cumulative total of 5,000 ABITATS across one or
more commercial project sites within South Australia. or
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
12
O C E A N G R O W N A B A L O N E L I M I T E D
D I R E C T O R S ’ R E P O R T
Number of
Performance
Rights
Service Condition
Performance Condition
1 Pursuant to Chapter 6 of the Corporations Act where at least 50% of the holders of ordinary shares accept the bid and such
bid is free of conditions or a court grants an order approving a compromise or scheme where the ordinary shares are either
cancelled or transferred to a third party.
(b) Within 5 years from the date the Company is admitted to
the Official List of ASX a Takeover Event1 occurs.
For the purposes of the financial statements, where the assessed probability of the relevant performance conditions is 50%
or greater, the Group recognised the resulting share-based payment expense over the relevant performance period. Support
for a greater or less than 50% probability assessment of the respective performance conditions are set out below:
(i) Class A – 4,000,000 performance rights allocated after successfully achieving service and performance conditions as
outlined above. Transfer to issued capital upon the vesting of Class A performance rights occurred on 15 November 2019
(ii) Class B – based on the projected FY2020 annual harvests and current stock estimates, production and harvest capacity,
the probability of achieving the applicable performance condition was considered to be less than 50%. As per AASB 2 Share-
based Payment, no amount is recognised because of failure to satisfy vesting condition, and therefore the share-based
payment expense was reversed in the prior year. The 4,000,000 Class B performance rights have lapsed in the current year.
(iii) Class C – based on the Company’s assessment, the probability of achieving the applicable performance condition was
considered to be less than 50%. As per AASB 2 Share-based Payment, no amount is recognised because of failure to satisfy
vesting condition, and therefore the share-based payment expense was reversed in the prior year.
Romolo Santoro
The Company previously issued 172,054 Performance Rights to Romolo Santoro, the Chief Financial Officer and Company
Secretary during the 2019 financial year. The Performance Rights were issued in 1 class, including service and performance
conditions as follows:
Number of
Performance
Rights
Class D
172,054
Service Condition
Performance Condition
Romolo Santoro to remain engaged as an employee
for a continuous period until 30 June 2019.
Maintain a satisfactory level of performance.
(i) Class D – 172,054 performance rights allocated after successfully achieving service and performance conditions as
outlined above.
During the reporting period, no other KMP were issued Performance Rights.
KMP Shareholdings
KMP ordinary shares held
The number of ordinary shares held by each of the KMP’s in Ocean Grown Abalone Limited at 30 June 2020 is as follows:
2020
P Harold
D Lee
B Adams
I Ricciardi
R Santoro
Balance
At
Beginning
of Year
120,000
-
3,326,055
14,685,445
-
18,131,500
Granted
As
Remuneration
During
the Year
Other
Changes
During
the Year
Balance
At
End of
Year
-
-
4,000,0002
-
172,054-
4,172,054
15,0001
135,000
-
-
(500,000)3
6,826,055
1,835,6821 16,521,127
193,398
1,372,026 23,675,580
21,3441
1 Purchased shares via 8:1 rights issue on 19 December 2019.
2 Class A performance rights converted to shares on 15 November 2019.
3 Disposal of shares on 15 January 2020.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
13
O C E A N G R O W N A B A L O N E L I M I T E D
D I R E C T O R S ’ R E P O R T
KMP performance rights held
The number of performance rights held by each of the KMP’s in Ocean Grown Abalone Limited at 30 June 2020 is as follows:
2020
Balance
At
Beginning
of Year
Granted
As
Remuneration
During
the Year
Other
Changes
During
the Year
Balance
At
End of
Year
P Harold
D Lee
B Adams
I Ricciardi
R Santoro
-
-
4,000,000
-
-
4,000,000
1 Class A performance rights converted to shares and Class B performance
rights lapsed on 15 November 2019.
-
-
(8,000,000) 1
-
-
(8,000,000)
-
-
12,000,000
-
-
12,000,000
-
-
-
-
-
-
KMP options held
The number of options held by each of the KMP’s in Ocean Grown Abalone Limited at 30 June 2020 is as follows:
2020
P Harold
D Lee
B Adams
I Ricciardi
R Santoro
Balance
At
Beginning
of Year
Granted
As
Remuneration
During
the Year
Other
Changes
During
the Year
Balance
At
End of Year
1,500,000
1,000,000
-
-
-
2,500,000
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
1,000,000
-
-
-
2,500,000
Other Equity-related KMP Transactions
There have been no other transactions involving equity instruments apart from those described in the tables above relating
to options, rights and shareholdings.
Other Transactions with KMP and/or their Related Parties
There have been no other transactions with KMP and/or their Related parties that are not covered in other sections of this
report for the year 30 June 2020.
Voting Rights
At the 2019 Annual General Meeting held on 22 November 2019 there were 0.45% of the votes against the adoption of the
remuneration report.
External Remuneration Consultants
No external remuneration consultants were utilised during the year.
End of the audited remuneration report
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
14
O C E A N G R O W N A B A L O N E L I M I T E D
D I R E C T O R S ’ R E P O R T
ENVIRONMENTAL REGULATIONS
The Company’s operations are subject to environmental regulations under Western Australian law. The Consolidated Group
has procedures in place to ensure regulations are adhered to. The Consolidated Group is not aware of any breaches in
relation to environmental matters.
PROCEEDINGS ON BEHALF OF COMPANY
No legal proceedings have been brought against the Company to the date of this report.
CORPORATE GOVERNANCE
The Company’s 2020 Corporate Governance Statement is contained in the ‘Corporate Governance’ section of the Company’s
website at https://www.oceangrown.com.au/investors/corporate-governance/.
INDEMNIFICATION AND INSURANCE OF OFFICERS AND DIRECTORS
The Company has made agreements indemnifying all the Directors and Officers of the Consolidated Group against all losses
or liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Consolidated Group to the
extent permitted by the Corporations Act 2001. The Company paid insurance premiums in respect of Directors’ and Officers’
Liability Insurance contracts for current officers of the Consolidated Group. The liabilities insured are damages and legal
costs that may be incurred in defending civil or criminal proceedings that may be brought against the Officers in their capacity
as officers of entities in the Group. The total amount of insurance premiums paid has not been disclosed due to confidentiality
reasons.
AUDIT AND NON-AUDIT SERVICES
The Board of Directors, in accordance with advice from the Audit and Risk Committee, is satisfied the provision of audit and
non-audit services during the year is compatible with the general standard of independence of auditors imposed by the
Corporations Act 2001. There were no non-audit services provided by the auditors during the year. All services provided by
the external auditor or associates are reviewed and approved by the Audit and Risk Committee and/or the Board to ensure
they do not adversely affect the integrity and objectivity of the auditor.
During the period BDO Corporate Tax (WA) Pty Ltd was paid $52,083 for the provision of taxation services (2019: $5,000).
BDO Corporate Tax (WA) Pty Ltd is an affiliate member of BDO Audit (WA) Pty Ltd. Refer to Note 21 for further details.
The board of directors has considered the position and is satisfied the provision of the non-audit services is compatible with
the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied the
provision of non-audit services by the auditor, as set out in Note 21, did not compromise the auditor independence
requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed by the board to ensure they do not impact the impartiality and objectivity
of the auditor
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants
INDEMNIFYING OF AUDITORS
No indemnities have been given, or insurance premiums paid, during or since the end of the financial year, for any person
who is or has been an Auditor of the Company.
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 on
page 16 of this report.
Signed in accordance with a resolution of the Directors.
________________________
Bradley Adams
Managing Director
28 August 2020
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
15
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF OCEAN GROWN ABALONE
LIMITED
As lead auditor of Ocean Grown Abalone Limited for the year ended 30 June 2020, 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 Ocean Grown Abalone Limited and the entities it controlled during the
year.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 28 August 2020
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 Audit (WA) Pty Ltd 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.
O C E A N G R O W N A B A L O N E L I M I T E D
C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S
A N D O T H E R C O M P R E H E N S I V E I N C O M E
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Revenue
Other income
Net interest received (excluding interest expense on lease liability)
Research and development tax incentive
Total income
Changes in inventory
Fair value adjustment of biological assets
Selling & distribution
Processing expenses
Employee benefits expense
Share-based payments
Diving, vessels & operations expense
Corporate & administration
Depreciation & amortisation expense
Interest expense on lease liability
Other expenses
Notes
3
4(a)
4(b)
8
25
11
Consolidated Group
2020
$
2,529,832
464,633
33,927
1,291,996
4,320,388
(2,470,532)
(2,171,409)
(275,959)
(226,372)
(2,461,039)
-
(519,668)
(1,038,693)
(761,429)
(32,862)
(167,977)
(10,125,940)
2019
$
3,059,756
327,337
122,260
1,578,886
5,088,239
(2,541,965)
5,078,577
(264,189)
(143,790)
(2,608,929)
62,669
(518,123)
(1,019,724)
(550,016)
-
(212,725)
(2,718,215)
(Loss)/Profit before income tax
(5,805,552)
2,370,024
Income tax benefit / (expense)
(Loss)/Profit after tax from continuing operations
5(a)
1,240,532
(4,565,020)
(1,336,399)
1,033,625
Other comprehensive loss for the year, net of tax:
- Items that may be reclassified to profit or loss
- Items that will not be reclassified to profit or loss
-
-
-
-
Total comprehensive (loss)/profit for the year
(4,565,020)
1,033,625
(Loss)/Profit attributable to:
- Owners of the Company
- Non-controlling interests
Total comprehensive (loss)/profit attributable to:
- Owners of the Company
- Non-controlling interests
(4,564,524)
(496)
1,034,369
(744)
(4,565,020)
1,033,625
(4,564,524)
(496)
1,034,369
(744)
(4,565,020)
1,033,625
Basic and diluted (loss)/profit per share attributable to the Owners of
the Company
Basic and diluted (loss)/profit per share (cents)
22
(2.40)
0.59
The accompanying notes form part of these financial statements.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
17
O C E A N G R O W N A B A L O N E L I M I T E D
C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N
A S A T 3 0 J U N E 2 0 2 0
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Biological assets
Inventory
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Biological assets
Right-of-use assets
Intangible assets
Other assets
Deferred tax assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing liabilities
Lease liabilities
Provisions
Current tax liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing liabilities
Lease liabilities
Deferred tax liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Share-based payment reserve
Accumulated losses
Equity attributable to owners of the Company
Non-controlling interests
TOTAL EQUITY
Notes
6
7
8
9
10
8
11
15
12
13
14
5
13
15
16
17
18
Consolidated Group
2020
$
2,778,877
1,448,976
2,400,000
399,003
175,200
2019
$
2,571,694
2,032,989
3,870,000
418,602
146,930
7,202,056
9,040,215
4,697,852
4,585,402
533,247
58,201
78,228
48,523
4,753,122
6,040,705
-
71,881
117,743
60,565
10,001,453
11,044,016
17,203,509
20,084,231
367,689
34,112
102,118
165,035
-
697,711
115,314
-
141,099
647
668,954
954,771
25,380
571,085
548,187
59,493
-
1,718,292
1,144,652
1,777,785
1,813,606
2,732,556
15,389,903
17,351,675
27,012,442
1,051,899
(12,665,356)
15,398,985
(9,082)
23,408,139
1,902,703
(7,950,960)
17,359,882
(8,207)
15,389,903
17,351,675
The accompanying notes form part of these financial statements.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
18
O C E A N G R O W N A B A L O N E L I M I T E D
C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Consolidated Group
Balance as at 1 July 2018, as
restated
Profit after income tax expense for
the year
Other comprehensive income for the
year
Total comprehensive income for
the year
Transactions with owners
recorded directly in equity
Share-based payment expense
Total transactions with owners
recorded directly in equity
Balance as at 30 June 2019
Balance as at 1 July 2019
Adjustment on adoption of AASB 16
Balance as at 1 July 2019, as
restated
Loss after income tax benefit for the
year
Other comprehensive loss for the
year
Total comprehensive loss for the
year
Transactions with owners
recorded directly in equity
Shares issued
Capital raising costs
Transfer from share-based
payments reserve
Total transactions with owners
recorded directly in equity
Balance as at 30 June 2020
Issued
Capital
$
Share-based
Payments
Reserve
Accumulated
Losses
$
$
Total
$
Non-
controlling
interest
Total Equity
$
$
23,408,139
1,965,372
(8,985,329)
16,388,182
(7,463)
16,380,719
-
-
-
-
-
23,408,139
-
-
-
1,034,369
1,034,369
(744)
1,033,625
-
-
-
-
1,034,369
1,034,369
(744)
1,033,625
(62,669)
(62,669)
1,902,703
-
-
(62,669)
(62,669)
-
-
(62,669)
(62,669)
(7,950,960)
17,359,882
(8,207)
17,351,675
23,408,139
-
1,902,703
-
(7,950,960)
(149,872)
17,359,882
(149,872)
(8,207)
(379)
17,351,675
(150,251)
23,408,139
1,902,703
(8,100,832)
17,210,010
(8,586)
17,201,424
-
-
-
2,899,618
(146,119)
-
-
-
-
-
850,804
(850,804)
3,604,303
27,012,442
(850,804)
1,051,899
(4,564,524)
(4,564,524)
(496)
(4,565,020)
-
-
-
-
(4,564,524)
(4,564,524)
(496)
(4,565,020)
-
-
-
-
(12,665,356)
2,899,618
(146,119)
-
2,753,499
15,398,985
-
-
-
-
(9,082)
2,899,618
(146,119)
-
2,753,499
15,389,903
The accompanying notes form part of these financial statements.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
19
O C E A N G R O W N A B A L O N E L I M I T E D
C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Cash flows from operating activities
Receipts from customers
Other income
Payments to suppliers and employees
Income taxes refunded/(paid)
R&D tax incentive
Consolidated Group
Notes
2020
$
2019
$
2,795,269
382,633
(6,617,239)
137,246
1,578,886
2,759,849
317,402
(6,678,074)
(20,096)
1,994,059
Net cash (used in) operating activities
27
(1,723,205)
(1,626,860)
Cash flows from investing activities
Purchases of plant, equipment and intangible assets
Proceeds from disposals of plant, equipment and intangible assets
Receipt of lease deposits
Interest received
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liability
Interest paid
Borrowing costs
Proceeds from issue of shares
Capital raising costs
(622,657)
16,903
36,030
43,087
(3,508,565)
206,808
9,500
148,082
(526,637)
(3,144,175)
8,000
(115,315)
(95,035)
(38,700)
-
2,899,618
(201,543)
44,542
(103,204)
-
(10,364)
(4,220)
-
-
Net cash provided by / (used in) financing activities
2,457,025
(73,246)
Net increase / (decrease) in cash and cash equivalents
207,183
(4,844,281)
Cash and cash equivalents at the beginning of the year
2,571,694
7,415,975
Cash and cash equivalents at the end of the year
6
2,778,877
2,571,694
The accompanying notes form part of these financial statements.
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Note 1. NATURE OF OPERATIONS OF OCEAN GROWN ABALONE LIMITED
Ocean Grown Abalone Limited (the Company) and its wholly-owned subsidiaries’ (the Group) principal activities during the
year were the ongoing development of its sea ranching hardware design and processes that allows for near-shore
aquaculture. This included activities in relation to the establishment of its initial Ranching operation in Flinders Bay, Augusta
Western Australia for the purposes of undertaking larger scale trials over a three year growth cycle.
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Statement of compliance
These consolidated financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and
the Corporations Act 2001. These consolidated financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board (IASB).
b) Basis of measurement
The financial report is prepared on the accruals basis and the historical cost basis, modified, where applicable, by the
measurement at fair value of selected financial assets and financial liabilities. The financial statements are presented in
Australian dollars, and all values are rounded to the nearest dollar unless otherwise stated.
c) Basis of preparation
(i) General purpose financial report
The consolidated general purpose financial report of the Group has been prepared in accordance with the requirements of
the Corporations Act 2001, applicable Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board. Ocean Grown Abalone Limited is the Group’s ultimate parent company and is a for-
profit entity for the purpose of preparing the financial statements. The Company is a public company limited by shares,
incorporated and domiciled in Australia.
The consolidated financial statements for the financial year ended 30 June 2020 were approved and authorised for issue by
the Board of Directors on 28 August 2020.
The financial statements have been prepared using the measurement bases specified by Australian Accounting Standards
for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting
policies below.
(ii) New and amended standards adopted by the Company
The Group has considered the implications of new and amended Accounting Standards which have become applicable for
the current financial reporting period. The Group had to change its accounting policies and make adjustments as a result of
adopting the following Standard:
- AASB 16: Leases
The impact of the adoption of this Standard and the respective accounting policies is disclosed in Note 2 (d) below.
d) Changes in Accounting Policies
This note describes the nature and effect of the adoption of AASB 16: Leases on the Group's financial statements and
discloses the new accounting policies that have been applied from 1 July 2019, where they are different to those applied in
prior periods.
As a result of the changes in Group's accounting policies, prior year financial statements were required to be restated.
However, the Group has adopted AASB 16: Leases using the modified retrospective approach with the cumulative effect of
initially applying AASB 16 recognised as 1 July 2019.
Leases
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
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• leases of low value assets; and
• leases with a term of 12 months or less.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the
discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily
determinable, in which case the group’s incremental borrowing rate on commencement of the lease is used. Variable lease
payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the
initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term.
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also includes:
• amounts expected to be payable under any residual value guarantee;
• the exercise price of any purchase option granted in favour of the group if it is reasonable certain to assess that
option; and
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination
option being exercised.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and
increased for:
• lease payments made at or before commencement of the lease;
• initial direct costs incurred; and
• the amount of any provision recognised where the group is required to dismantle, remove or restore the leased
asset.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the
remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the
lease term.
When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee
extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to
make over the revised term, which are discounted using a revised discount rate (being the interest rate implicit in the lease
for the remainder of the lease term or, if that cannot be readily determined, the Group’s incremental borrowing rate at the re-
assessment date). An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying
amount being amortised over the remaining (revised) lease term.
The carrying value of lease liabilities is also revised when the variable element of future lease payments dependent on a rate
or index is revised or there is a revision to the estimate of amounts payable under a residual value guarantee. In both cases
an unchanged discount rate is used. In both cases an equivalent adjustment is made to the carrying value of the right-of-use
asset, with the revised carrying amount being amortised over the remaining (revised) lease term.
When the group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the
modification:
• if the renegotiation results in one or more additional assets being leased for an amount commensurate with the
standalone price for the additional rights-of-use obtained, the modification is accounted for as a separate lease in
accordance with the above policy
• in all other cases where the renegotiated increases the scope of the lease (whether that is an extension to the lease
term, or one or more additional assets being leased), the lease liability is remeasured using the discount rate applicable
on the modification date, with the right-of-use asset being adjusted by the same amount.
• if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability and
right-of-use asset are reduced by the same proportion to reflect the partial of full termination of the lease with any
difference recognised in profit or loss. The lease liability is then further adjusted to ensure its carrying amount reflects
the amount of the renegotiated payments over the renegotiated term, with the modified lease payments discounted at
the rate applicable on the modification date. The right-of-use asset is adjusted by the same amount.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are items
such as IT-equipment and small items of office furniture.
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(ii) Initial Application of AASB 16: Leases
AASB 16 Leases replaces AASB 117 Leases and Interpretation 4 Determining whether an Arrangement contains a Lease.
In accordance with the transitional provisions of AASB 16, the Group has elected to adopt AASB 16 using the modified
retrospective approach, where the lease liability is measured at the present value of future lease payments on the initial date
of application, being 1 July 2019. In determining the present value, the discount rate is determined by reference to the group’s
incremental borrowing rate on the date of initial application of the standard (1 July 2019).
On transition to AASB 16 the Group has chosen to measure their right of use assets as if AASB 16 had been applied since
the commencement of the lease, except that the discount rate used is the incremental borrowing rate on the date of initial
application and certain practical expedients are available (see below for the practical expedients used by the Group). The
Group has used this method for all of its leases.
In applying the modified retrospective approach, the Group has taken advantage of the following practical expedients:
• A single discount rate has been applied to portfolios of leases with reasonably similar characteristics.
•
Leases with a remaining term of 12 months or less from the date of application have been accounted for as short-
term leases (i.e. not recognised on balance sheet) even though the initial term of the leases from lease
commencement date may have been more than 12 months.
• For the purposes of measuring the right-of-use asset hindsight has been used. Therefore, it has been measured
based on prevailing estimates at the date of initial application and not retrospectively by making estimates and
judgements (such as the term of leases) based on circumstances on or after the lease commencement date.
The weighted average incremental borrowing rate applied to lease liabilities on 1 July 2019 was 4.5%.
The Group’s operating lease commitment at 30 June 2019 can be reconciled to the aggregate lease liability recognised in the
statement of financial position at 1 July 2019 as follows:
Operating lease commitment at 30 June 2019
Effect of discounting those lease commitments at an annual rate of 4.5%
Add: adjustments as a result of different treatment of variable lease payments
(Less): short-term and low value leases being accounted for off balance sheet
Lease liability recognised as at 1 July 2019
(iii) New and revised Accounting Standards for Application in Future Periods
1 July 2019
$
1,077,224
(394,211)
89,725
(4,500)
768,238
A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet mandatorily
applicable to the Group have not been applied in preparing these consolidated financial statements. Those which may be
relevant to the Group are set out below. The Group does not plan to adopt these standards early.
AASB 2018-6: Amendments to the Australia Accounting Standards – Definition of a business
This standard amends AASB 3 Business Combinations’ (“AASB 3”) definition of a business. To be considered a business, an
acquisition would have to include an input and a substantive process that together significantly contributes to the ability to
create outputs. The new guidance provides a framework to evaluate when an input and a substantive process are present.
The revisions to AASB 3 also introduced an optional concentration test. If the concentration test is met, the set of activities
and assets acquired is determined not to be a business combination and asset acquisition accounting is applied. The
concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable
asset or group of similar identifiable assets. The Group's assessment of the impact of this new amendment is that it is not
expected to have a material impact on the Group in the current or future reporting periods.
(iv) Other standards not yet applicable
A number of other standards, amendments to standards and interpretations issued by the AASB which are not materially
applicable to the Group have not been applied in preparing these consolidated financial statements.
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e) Basis of Consolidation
The Group financial statements consolidate those of the parent company and its subsidiaries. The parent controls a subsidiary
if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. A list of subsidiaries is provided in Note 31. All subsidiaries have a reporting
date of 30 June.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended. Profit or loss and other comprehensive income of subsidiaries
acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of
disposal, as applicable.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and
losses on transactions between Group companies. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with those adopted by the parent entity.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-controlling interests”.
The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to
a proportionate share of the subsidiary’s net assets on liquidation at either fair value or at the non-controlling interests’
proportionate share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling interest are attributed
their share of profit or loss and each component of comprehensive income. Non-controlling interests are shown separately
within the equity section of the statement of financial position and statement of comprehensive income.
f) Foreign currency translation
Foreign currency transactions during the period are converted to Australian currency using the exchange rates prevailing at
the dates of the transactions. Amounts receivable and payable in foreign currency at balance date are also converted at the
spot rate at each reporting date.
Realised exchange gains and losses during the period are included in the operating profit before income tax as they arise.
Unrealised exchange gains and losses at balance date are included in the operating profit before income tax to the extent
that their realisation is certain.
g) Revenue
Revenue is recognised when or as a performance obligation in the contract with customer is satisfied, i.e. when the control
of the goods or services underlying the particular performance obligation is transferred to the customer. A performance
obligation is a promise to transfer a distinct goods or service (or a series of distinct goods or services that are substantially
the same and that have the same pattern of transfer) to the customer that is explicitly stated in the contract and implied in the
Group's customary business practices.
Revenue is measured at the amount of consideration to which the Group expects to be entitled in exchange for transferring
the promised goods or services to the customers, excluding amounts collected on behalf of third parties such as sales taxes
or services taxes. If the amount of consideration varies due to discounts, rebates, refunds, credits, incentives, penalties or
other similar items, the Group estimates the amount of consideration to which it will be entitled based on the expected value
or the most likely outcome. If the contract with customer contains more than one performance obligation, the amount of
consideration is allocated to each performance obligation based on the relative stand-alone selling prices of the goods or
services promised in the contract. Revenue is recognised to the extent that it is highly probable that a significant reversal in
the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration
is subsequently resolved.
The control of the promised goods or services may be transferred over time or at a point in time. The control over the goods
or services is transferred over time and revenue is recognised over time if:
i.
ii.
iii.
the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group
performs;
the Group's performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or
the Group's performance does not create an asset with an alternative use and the Group has an enforceable right
to payment for performance completed to date.
Revenue for performance obligations that are not satisfied over time is recognised at the point in time at which the customer
obtains control of the promised goods or services.
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i.
Sale of Abalone products
Revenue from sales of Abalone products is recognised at the point in time when control of the asset is transferred to the
customer, i.e. point of delivery of goods to the customer.
ii.
Sales of service (processing)
Revenue from rendering processing service is recognised upon the delivery of service to the customers.
iii.
Research and development tax incentives
Refund amounts received or receivable under the Federal Government’s Research and Development Tax Incentives are
recognised on an accrual basis.
iv.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and
recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets.
h) Financial instruments
(i) Financial assets
Initial recognition and measurement
Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics
and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset
at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or for which the Group has applied the practical expedient are measured
at the transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise
to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits
to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
Financial assets at amortised cost (debt instruments)
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
Financial assets at fair value through profit or loss
The Group’s financial assets at amortised cost includes trade receivables.
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Financial assets at amortised cost (debt instruments)
The Group measures financial assets at amortised cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows and;
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
Financial assets at fair value through OCI (debt instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
The financial asset is held within a business model with the objective of both holding to collect contractual cash flows
and selling and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or
reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured
at amortised cost.
The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in
OCI is recycled to profit or loss.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at
fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments: Presentation and are
not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in
the statement of profit or loss when the right of payment has been established, except when the Group benefits from such
proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon
initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near
term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated
as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are
classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria
for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may
be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an
accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net
changes in fair value recognised in the statement of profit or loss.
This category includes derivative instruments and listed equity investments which the Group had not irrevocably elected to
classify at fair value through OCI. Dividends on listed equity investments are also recognised as other income in the statement
of profit or loss when the right of payment has been established.
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and
accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract
is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair
value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that
significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair
value through profit or loss category.
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A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial
asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value
through profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
The rights to receive cash flows from the asset have expired Or
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a)
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to
recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an
associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment.
For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date,
the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable
information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit
rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when
contractual payments are more than 30 days past due.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases,
the Group may also consider a financial asset to be in default when internal or external information indicates that the Group
is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by
the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
(ii) Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
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The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and
derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered into by the Group that are not designated as hedging
instruments in hedge relationships as defined by AASB 9. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of
recognition, and only if the criteria in AASB 9 are satisfied. The Group has not designated any financial liability as at fair value
through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well
as through the effective interest rate amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. The effective interest rate amortisation is included as finance costs in the statement
of profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.
(iii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial
position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
i) Employee benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to balance
date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be
paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured
at the present value of the estimated future cash outflows to be made for those benefits.
j)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses. The Group is not consolidated for tax purposes.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the Company’s subsidiaries and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised
if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting
nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
k) Good and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of 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 taxation authority is included with other receivables or payables in the balance sheet.
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 taxation authority, are presented as operating cash flows.
l) Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position includes cash on hand, deposits held at call with banks and other
highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of
changes in value. For the purposes of the Statement of Cash Flows, cash and cash equivalents are as described above.
m) Trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They
are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially
at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised
at fair value. The group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective interest method. Details about the group’s impairment policies and the
calculation of the expected credit loss allowance are provided in note 2(h).
n) Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the
costs that they are intended to compensate. This includes Job Keeper income received due to COVID-19 during the year which has
been detailed in Note 4 Other Income this year.
o) Inventories
Inventories are measured at the lower of cost and net realisable value. Costs include all expenses directly attributable to the
manufacturing process. Costs are assigned on the basis of weighted average costs. In the case of abalone stock, upon harvest
the stock is transferred from Biological Assets to Inventory at a revised cost value, being the carrying value previously determined
for that stock in accordance with the AASB 141 (refer Note 2(p) below). Net realisable value is the estimated selling price in the
ordinary course of business less any applicable selling expense.
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p) Biological Assets
Biological assets comprise abalone stock located on Abitats.
Pursuant to AASB 141 Agriculture standard, abalone stock are valued at the end of each half and full-year reporting periods at their
fair value less costs to sell. Where fair value cannot be reliably measured, biological assets are measured at cost less impairment
losses.
The material reduction in the value of the biomass that occurred for the full year ending 30 June 2020 of ($2,171,409) is consistent
of with AASB 141 where the Company made a fair value adjustment to its abalone stock above 90 mm. OGA notes, while these
actions are consistent with the AASB 141 standard, the fair value adjustment is a point in time valuation, which are likely to be
subject to subsequent changes, reflective of fair valuations in future reporting periods.
Had the prices and costs to complete remained constant from the prior financial year, and with the increase in total biomass
this would have translated into a positive contribution to the profit and loss of $397,458.
For abalone stock below 90mm (~120g whole weight), these biological assets are measured at cost as the Company considers that
the fair value for this stock cannot be reliably measured on the basis that its commercial sales are only for product above this size
threshold.
Abalone stock above 90mm (~120g whole weight) are measured at fair value less cost to sell. The valuation takes into consideration
estimated growth rates and mortality (refer Note 2(t) for a description of the methodology used for the estimation of growth rates and
mortality rates). The market prices are derived from observable market prices (when available) and realised prices. The prices are
reduced for estimated harvesting costs, processing costs, freight costs and other selling costs, to determine the net fair value.
The fair value adjustment that occurred in FY2020 of ($2,171,409), was predominantly due to a decrease in abalone market prices,
which had an impact of ($2,413,277) on the profit and loss. Had the prices remained constant from the prior financial year, and with
the increase in total biomass this would have translated into a positive outcome to the profit and loss of $397,458.
The net increase / (decrease) in the fair value of abalone stock at period end is recognised as income / (expense) in the profit and
loss.
q) Property, plant and equipment
Property, plant and equipment is initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating in a manner intended by the Group’s
management. These assets are subsequently measured at cost less and depreciation and impairment losses.
Repairs and maintenance expenditure is charged to the Statement of Profit or Loss and Other Comprehensive Income during the
financial period in which it is incurred.
Depreciation
The depreciable amount of fixed assets are depreciated on either a diminishing value (DV) method or on a straight-line (SL)
basis over their useful lives to the Group commencing from the time the asset is held ready for use. The following depreciation
rates were applied during the financial period:
Leasehold improvements
Plant and equipment
Office equipment
Buildings
20% SL
20% SL
10%-50% DV
4.5% SL
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Derecognition
Additions of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These gains and losses are recognised in the Statement of Profit or Loss and Other Comprehensive Income.
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Impairment
Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any objective
indicators of impairment that may indicate the carrying values may be impaired.
r) Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
s) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.
t) Provisions
Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
u) Critical accounting estimates and judgments
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the
circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Biological Assets
Biological assets are measured at fair value less cost to sell in accordance with AASB 141. Abalone stock below 90mm
(~120g) are measured at the same rate per mm as the rate charged to the Company by the supplier. Management estimates
this is a more accurate reflection of fair value as it takes into consideration growth rates from approximately 40mm to 90mm.
Abalone stock above 90mm (120g) is measured at fair value in accordance with AASB 141. Management estimates the fair
value of biological assets, taking into account the most reliable evidence available at each reporting date in relation to the
underlying assumptions, including mortality rates, growth rates, calculation of biomass, harvest costs, processing costs,
selling costs and market prices.
Biomass is calculated using a size/weight algorithm derived from industry reports. In relation to the assumptions underlying
mortality rates and growth rates, from which the stock estimates are extrapolated, including biomass, these are updated
following each six monthly survival count and size class measurements. The bi-annual stock counts and measurements are
taken over approximately 6% of the entire ranch, which has been determined to be a statistically relevant sample size.
The future realisation of these biological assets may be affected by any variance between actual results and the assumptions
relied upon.
Net realisable value of inventories
The net realisable value of inventories assessment required a degree of estimation and judgement by taking into account the
recent sales experience, the ageing of inventories and other factors that affect inventory obsolescence. The quality of
inventory is also taken into account in the assessment of net realisable value. The impact of COVID-19 has been considered
in the ability to sell the inventory.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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Fair value measurement hierarchy
The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy,
based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant
to fair value and therefore which category the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include
discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable
inputs.
Impairment
In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit based on
expected future cash flows and uses an interest rate to discount them (where applicable). Estimation uncertainty relates to
assumptions about future operating results and the determination of a suitable discount rate (if applicable).
Useful life of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected
useful life of the assets. Uncertainties in these estimates include assessing the impact of the Company’s operating
environment and technical and other forms of obsolescence.
Impact of Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the company based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain and staffing. Other than as addressed in specific notes, there does not currently appear to be either
any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which
may impact the company unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount
future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is
based on what the entity estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a
similar value to the right-of-use asset, with similar terms, security and economic environment.
Revenue from contracts with customers involving sale of goods
When recognising revenue in relation to the sale of goods to customers, the key performance obligation of the consolidated
entity is considered to be the point of delivery of the goods to the customer, as this is deemed to be the time that the customer
obtains control of the promised goods and therefore the benefits of unimpeded access.
v) Going concern
The financial statements for the year ended 30 June 2020 have been prepared on the basis that the group is a going concern
and therefore, contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the
normal course of business.
During the year the group recorded a net loss after tax of $4,565,020 (2019: net profit after tax $1,033,625) and had net cash
outflows from operating activities of $1,723,205 (2019: $1,626,860) . At balance date the group has working capital of
$6,533,102 (2019: $8,085,444).
The Group’s ability to continue as a going concern is dependent upon its ability to generate cash flow through its business
operations and the ability to raise additional finance from debt or equity if and when required to contribute to the Group’s
working capital position. The Directors continue to be focused on meeting the Group’s business objectives and are mindful of
the funding requirements to meet these objectives.
The COVID-19 pandemic, announced by the World Health Organisation on 31 January 2020, is having a negative impact on
world stock markets, currencies and general business activity. The Group has developed a policy and is evolving procedures
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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to address the health and wellbeing of employees, consultants and contractors in relation to COVID-19. The timing and extent
of the impact and recovery from COVID-19 is unknown but it may have an impact on activities and potentially impact the
ability for the entity to raise capital in the current prevailing market conditions.
These conditions indicate a material uncertainty that may cast significant doubt about the entity’s ability to continue as a going
concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
The Directors at the date of preparing these annual accounts, believe that the Group has the ability to raise additional funding
and therefore, are satisfied that the going concern basis for preparing the financial statements is appropriate. In arriving at
this position, the Directors expect that the Group may:
Raise additional finance from debt or equity if and when required to contribute to the Group’s working capital position
in the near term; and
Scale back certain activities that are non-essential so as to conserve cash;
The directors are, uncertain of the duration of the COVID-19 pandemic and of the potential consequential impact that may
flow through to OGA’s future operating costs; demand; and sales prices. The directors and executive management think there
are reasonable prospects OGA can make it through the COVID-19 pandemic and are committed to the long term development
and growth of the Company on behalf of its shareholders, employees and the communities in which it operates.
Should the entity not be able to continue as a going concern it may be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The
financial report does not include any adjustments relating to the recoverability or classification of recorded asset amounts,
nor the amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going
concern.
Note 3.
REVENUE
Revenue for the reporting period consisted of the following:
Sales
Juvenile Sales
Sale of abalone products
Processing revenue
Primary geographical markets
Asia
Australia
North America
Major goods/service lines
By-product
IQF meat
Juvenile abalone
Live abalone
Processing
Retail pack
Whole frozen abalone
Consolidated Group
2020
$
2019
$
2,512,708
-
2,512,708
17,124
2,529,832
2,101,443
412,852
15,537
2,772,481
64,769
2,837,250
222,506
3,059,756
2,478,361
581,395
-
2,529,832
3,059,756
23,557
1,975,800
-
161,908
17,124
225,707
125,736
2,529,832
-
2,321,447
64,769
222,605
222,506
210,611
17,818
3,059,756
3,059,756
-
Timing of revenue recognition
Goods or services transferred at a point in time
Goods or services transferred over time
Processing revenue relates to processing activities undertaken for third party customers.
2,529,832
-
Major customer information
75% of the Group's revenue was attributable to 2 major customers, each with more than 10% of the Group’s
revenue (2019: 73% from 1 customer).
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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Note 4.
OTHER INCOME
(a)
Other revenue for the reporting period consisted of the following:
Grant income- cash flow boost
Grant income- JobKeeper
Government grants
Foreign exchange (loss) on sales
Miscellaneous
Consolidated Group
2020
$
2019
$
110,728
204,000
92,500
(1,986)
59,391
-
-
210,000
(20,817)
138,154
464,633
327,337
(b)
Research and Development Tax Incentive
Accrued during the year (refer also Note 7)
1,291,996
1,578,886
Note 5.
INCOME TAX
(a) The components of tax expense comprise:
Current income tax
Current income tax expense
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to the origination and reversal of temporary differences
Adjustments for prior period & movements in deferred taxes not recognised
Total income tax (benefit)/expense from continuing operations
Deferred income tax (income)/expense included in income tax
expense comprises:
1,291,996
1,578,886
-
(137,011)
(930,147)
(173,374)
(1,240,532)
647
-
1,335,752
-
1,336,399
(Increase)/decrease in deferred tax assets/(liabilities)
(1,158,063)
1,335,752
(1,158,063)
1,335,752
(b) Amounts recognised directly in equity
Aggregate current and deferred tax arising in the reporting period and not
recognised in net profit or loss or other comprehensive income but directly
debited or (credited) to equity.
Net deferred tax
(55,424)
(55,424)
-
-
(c) The prima facie tax on profit from ordinary activities before
income tax is reconciled to the income tax expense as follows:
(Loss)/Profit Before Income Tax
(5,805,552)
2,370,024
Prima facie tax payable on profit from ordinary activities before income tax
at 27.5%
(1,596,526)
651,758
Add:
Tax effect of:
- Research & Development Expenditure: Non-deductible
- Other non-deductible permanent adjustments
- Adjustments for prior period & movements in deferred taxes not
recognised
636,090
1,612
414,426
757,858
2,170
376,042
(544,398)
1,787,828
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Note 5.
INCOME TAX (continued)
Less:
Tax effect of:
- Adjustments for current tax of prior period
- Income not assessable for income tax purposes
Income tax (benefit)/expense
Consolidated Group
2020
$
2019
$
(310,385)
(385,749)
(1,240,532)
-
(451,429)
1,336,399
The applicable weighted average effective tax rates are as follows:
21%
56%
Note 6.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Note 7.
TRADE AND OTHER RECEIVABLES
Trade debtors
Sundry & other debtors
GST receivable
2,778,877
2,571,694
2,778,877
2,571,694
776
1,379,179
69,021
266,213
1,582,569
184,207
1,448,976
2,032,989
At the reporting date, none of the trade and other receivables were past due or impaired.
Sundry & other debtors for the 2020 financial year represents the research and development tax incentive
for the year of $1,291,996 and $87,183 other debtors (2019: research and development tax incentive
$1,578,886 and $3,683 other debtors).
Note 8.
BIOLOGICAL ASSETS
CURRENT
Abalone on Abitats
NON CURRENT
Abalone on Abitats
The carrying value of abalone on hand at year end was calculated as
follows:
Opening balance
Increases due to purchases
Decreases due to harvest for processing to inventory
Fair value adjustment at year end recognised in profit and loss
Closing balance
2,400,000
3,870,000
2,400,000
3,870,000
4,585,402
6,040,705
4,585,402
6,040,705
9,910,705
1,441,093
(2,194,987)
(2,171,409)
5,887,560
1,310,665
(2,366,097)
5,078,577
6,985,402
9,910,705
The significant decrease in the fair value of the biological assets during the year is due to the impact of
COVID-19 on the fair value, valuation selling price and demand of the product post-year-end, the fair value,
valuation price was reduced by (23%) for FY2020 compared to FY2019. During the year, the Group sold
48,171 kg (WWE) of abalone (2019: 52,832 kg (WWE)).
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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Note 8.
BIOLOGICAL ASSETS (continued)
The fair value adjustment that occurred in FY2020 of ($2,171,409) , was predominantly due to a decrease
in abalone market prices, which had an impact of ($2,413,277) on the profit and loss. Had the prices and
costs to complete remained constant from the prior financial year, and with the increase in total biomass this
would have translated into a positive contribution to the profit and loss of $397,458.
The classification of the closing biological stock between current and non-current is based on the estimated
harvest potential for the following 12 month period, which will be sourced from within the closing stock above
90mm.
Abalone stock below 90mm (~120g) are valued at a per mm rate. Management estimates this is a more
accurate reflection of fair value as it takes into consideration growth rates from approximately 40mm to
90mm.
Stock above 90mm is measured at fair market value less costs to sell. The fair value assessment also
assumes a further 10% mortality rate between balance date and harvest date. As these valuation variables
are unobservable, they are deemed Level 3 inputs.
Level 3 analysis: The finance and operational departments undertake the valuation of the abalone. The
calculations are considered to be level 3 fair values. The data is taken from internal management reporting
and work completed by the executives within the operations to determine material inputs of the model. The
key inputs are agreed by the Board of Directors every six months. The following table summarises the
quantitative information about the significant unobservable inputs used in level 3 fair value measurements:
Description
30 June 2020
30 June 2019
Comments
Selling price
Based on estimated market
price at year end
Based on average sales
throughout the year
Percentage (decrease)/increase
from previous year selling price
(23%)
0%
Weight of live abalone
Adjusted weight of live abalone
for fair value measurement:
185,637 kg
Adjusted weight of live
abalone for fair value
measurement: 186,743 kg
Costs to complete
$10/Kg
$9/Kg
Obtained by analysing sales prices
and market research during the
months that have been impacted by
COVID-19
Obtained by analysing sales prices
and market research during the
months that have been impacted by
COVID-19
Based on the results from the
stocktake procedures
Based on historical data over the last
12 months
Mortality
10% of >90mm animals
10% of >90mm animals
Based on historical research
The valuation of the biological assets requires the estimate of the closing number of abalone and biomass
and hence the resultant fair value estimate for closing stock. As detailed in Note 2(t), the number of abalone
and biomass is estimated using a model that factors in projected growth and mortality rates, which in turn
are based on the results of survival counts and size class measurements taken during the Company’s trial
phase and subsequent six monthly stock counts (based upon a 6% sample). Actual growth and mortality
rates will invariably differ to some extent across the ranch.
The following tables summarises the number of <90mm animals for current year and prior year and number
of >90mm animals for current year and prior year:
No of Abalone
< 90mm
> 90mm
Total
30 June 2020
998,350
1,182,996
2,181,346
30 June 2019
1,230,825
1,096,333
2,327,158
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
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Note 8.
BIOLOGICAL ASSETS (continued)
Sensitivity analysis - Biological assets
The following tables summarise the potential impact of changes in the key variables on the biological asset
valuation:
Selling price
Weight of live abalone
-10%
($742,547)
($556,910)
10%
$742,547
$556,910
Note 9.
INVENTORY
Harvested stock
Consolidated Group
2020
$
2019
$
399,003
399,003
418,602
418,602
Inventory is stated at the lower of cost (value at harvest time on valuation of biological assets) or net realisable
value. The inventory balance has been held at net realisable value for the current financial year with the cost
balance reduced by $62,742 being the allocation of harvest and processing costs (deferred cost of production).
These costs are capitalised and carried forward to harvested stock and subsequently cost of goods sold when
the product is eventually sold. The decrease in net realisable value was due to the impact of COVID-19 on the
selling price of the product.
Note 10.
PROPERTY, PLANT AND EQUIPMENT
Plant & equipment, at cost
less : Accumulated depreciation
Leasehold improvements, at cost
less : Accumulated depreciation
Office equipment, at cost
less : Accumulated depreciation
Land & Buildings, at cost
less : Accumulated depreciation
Net carrying amount
3,363,778
(2,113,352)
1,250,426
3,128,264
(1,864,300)
1,263,964
48,816
(29,819)
18,997
80,172
(45,499)
34,673
112,769
(81,989)
30,780
65,566
(32,873)
32,693
3,558,748
(164,992)
3,393,756
3,425,685
-
3,425,685
4,697,852
4,753,122
A reconciliation of the movement in the carrying amounts of each class of property, plant and equipment
between the beginning and end of the current financial years:
Plant & equipment
Carrying amount at beginning of year
Additions
Depreciation charges
Disposals
Carrying amount at the end of the year
Leasehold Improvements
Carrying amount at beginning of year
Additions
Depreciation charges
Disposals
Carrying amount at the end of the year
1,263,964
471,420
(468,193)
(16,765)
1,250,426
1,537,127
358,458
(508,324)
(123,297)
1,263,964
30,780
-
41,632
-
(10,252)
(1,531)
18,997
(10,852)
-
30,780
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
37
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 10. PROPERTY, PLANT AND EQUIPMENT (continued)
Office Equipment
Carrying amount at beginning of year
Additions
Depreciation charges
Disposals
Carrying amount at the end of the year
Land & Buildings
Carrying amount at beginning of year
Additions
Depreciation charges
Disposals
Carrying amount at the end of the year
Net carrying amount
Note 11. RIGHT-OF-USE ASSETS
Consolidated Group
2020
$
2019
$
32,693
18,174
(16,089)
(106)
34,672
36,784
9,367
(13,458)
-
32,693
3,425,685
133,063
(164,991)
-
3,393,757
-
3,425,685
-
-
3,425,685
4,697,852
4,753,122
The right-of-use assets have arisen upon adoption of AASB 16 Leases on 1 July 2019. The Group's lease
portfolio includes building and aquaculture leases. The building lease has an average term of 5 years and
the aquaculture leases have an average term of 21 years.
(a) The carrying amount of right-of-use assets is detailed below:
Leased Property Aquaculture Lease
$
$
Total
$
Recognised at inception of lease (previously
classified as operating leases under AASB 17)
Impact of Depreciation on Retained Earnings,
beginning
At 1 July 2019
651,676
209,516
861,192
(196,513)
455,163
(46,692)
162,824
(243,205)
617,987
Leased Property Aquaculture Lease
$
$
Total
$
Balance at 1 July 2019
Depreciation expense for the year ended
As at 30 June 2020
455,163
(74,943)
380,220
162,824
(9,797)
153,027
617,987
(84,740)
533,247
(b) AASB 16 related amounts recognised in statement of profit or loss
Depreciation charge related to right-of-use assets
Interest expense on lease liabilities
Low-value asset expense
Variable lease payment expense
As at
30 Jun 2020
$
84,740
32,862
1,728
9,677
The group has some property leases which contain variable lease payments. These variable lease payments
are recognised in the statement of profit or loss in the period which they occur.
(c) Total yearly cash outflows for leases
As at
30 Jun 2020
$
95,035
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
38
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 11. RIGHT-OF-USE ASSETS (continued)
(d) Options to extend or terminate
The options to extend or terminate are contained in several leases of the Group. There were no extension
options for the building lease. All of the extension or termination options are only exercisable by the Group.
The extension options which management were reasonably certain to be exercised have been included in
the calculation of the lease liability.
Note 12. TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
Consolidated Group
2020
$
2019
$
162,183
205,506
323,049
374,662
367,689
697,711
Trade payables are not past due and are non-interest bearing. The carrying amount of trade and other
payables are considered to be the same as their fair values due to their short term nature.
Note 13.
INTEREST BEARING LIABILITIES
CURRENT
Equipment Loans
NON-CURRENT
Equipment Loans
Consolidated Group
2020
$
2019
$
34,112
34,112
25,380
25,380
115,314
115,314
59,493
59,493
Equipment Loans
The equipment loans have been provided to Ocean Grown Abalone Operations Pty Ltd and its subsidiaries
by National Australia Bank Limited, pursuant to a master asset finance agreement with a facility limit of
$1,500,000 (2019: $1,500,000). The loans are secured over the financed assets via an equitable
mortgage. Additional loan security is provided in the form of a charge over the assets of OGA Operations
and the Company. The Company has also provided a guarantee and indemnity to the loan provider for the
full facility limit.
The equipment loans at reporting date comprised:
- Balance of $5,114. Original loan $271,273, which commenced in July 2015, with 60 monthly repayments
(final payment date of 10 July 2020) and an annual interest rate of 5.2%;
- Balance of $20,421. Original loan $220,000, which commenced in November 2015, with 60 monthly
repayments (final payment date 15 November 2020) and an annual interest rate of 4.82%; and
- Balance of $33,957. Original loan $43,542, which commenced in May 2019, with 60 monthly repayments
(final payment date of 24 June 2024) and an annual interest rate of 3.99%.
Note 14. PROVISIONS
CURRENT
Employee entitlements – annual leave
Employee entitlements – long service leave
113,775
51,260
95,398
45,701
165,035
141,099
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
39
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 15. DEFERRED TAX ASSETS AND LIABILITIES
Recognised deferred tax assets
Accruals
Provisions
Losses
Expenses taken into equity
Other
Deferred tax assets to offset deferred tax liability
Recognised deferred tax liabilities
Biological & Inventory Asset
Prepayments
Other
Deferred tax assets to offset deferred tax liability
Note 16. CONTRIBUTED EQUITY
(a) Issued and paid up capital
No. fully paid ordinary shares
Balance at beginning of year
Employee performance rights vested - class D1
Managing Director performance rights vested - class A2
Rights issue ($0.13 on 20 November 2019)3
Share issue costs
Balance at end of the year
(b) Movement in ordinary shares
Balance at the beginning of year
Employee performance rights vested - class D1
Managing Director performance rights vested - class A2
Rights issue ($0.13 on 20 November 2019)3
Balance at end of the year
Consolidated Group
2020
$
2019
$
26,925
57,894
1,208,700
133,291
191,185
(1,569,472)
48,523
74,903
52,484
840,314
143,327
1,290
(1,051,753)
60,565
1,922,834
48,164
146,661
(1,569,472)
548,187
2,730,568
39,477
-
(1,051,753)
1,718,292
Consolidated Group
2020
No.
2019
No.
200,742,780
174,110,260
$
23,408,139
50,804
800,000
2,899,618
(146,119)
$
23,408,139
-
-
-
-
27,012,442
23,408,139
No.
174,110,260
327,766
4,000,000
22,304,754
No.
174,110,260
-
-
-
200,742,780
174,110,260
1. On 2 August 2019, the Company issued 327,766 shares from performance rights to employees in
accordance with the Company's Employee Incentive Plan.
2. On 15 November 2019, the Company issued 4,000,000 shares to Managing Director Brad Adams
through conversion Class A Performance Rights.
3. On 20 November 2019, the Company issued 22,304,754 shares by a pro-rata non-renounceable rights
offer on the basis of 1 new share for every 8 shares held at an issue price of 13 cents per new share.
(c) Ordinary Shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to
the number of shares held. At shareholders meetings, each ordinary share is entitled to one vote when a
poll is called.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
40
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 16. CONTRIBUTED EQUITY (continued)
(d) Share options
On 1 August 2017, the existing 7,633,125 options, each with an exercise price of $0.26 and expiry date of
28 December 2020, were cancelled and replaced with 8,807,452 new options, each with an exercise price
of 30 cents and an expiry date of 28 December 2020. The increased number of options being in proportion
to the 30/26 increase in the exercise price.
On 1 August 2017, 10,039,450 options, each exercisable at $0.39 on or before 30 September 2021, were
issued as part consideration for corporate advisory services provided in relation to IPO.
On 1 August 2017, 2,500,000 options, each exercisable at $0.44 on or before 30 September 2021 were
issued as part of the remuneration packages for Peter Harold (Non-Executive Chairman) and Danielle Lee
(Non-Executive Director).
All of these options remained outstanding at balance date.
Note 17. RESERVES
Consolidated Group
2020
$
2019
$
Share-based payment reserve
1,051,899
1,902,703
The share-based payment reserve is used to record the value of equity benefits (options) provided to
directors, executives and employees as part of their remuneration and consultants / advisers for their
services. Refer to Note 25 for details of share-based payments during the financial year.
Movement in reserves:
Share-based payments reserve
Balance at beginning of the year
Net performance rights (reversed) to managing director
Performance rights issued to employees
Transfer to issued capital upon the vesting of Class A performance rights
Transfer to issued capital upon the vesting of Class D performance rights
Balance at the end of the year
1,902,703
-
-
(800,000)
(50,804)
1,965,372
(113,473)
50,804
-
-
1,051,899
1,902,703
In the prior year, the remaining balance being the $307,307 of class A performance rights for the managing
director was expensed upon successful completion of the performance condition. At the same time, the
balance of $296,110 of class B performance rights for the managing director and $124,670 of class C
performance rights for the managing director expensed in previous years were reversed.
On 23 November 2018, 342,391 class D performance rights were issued to employees of which 327,466
performance rights were converted to shares on 2 August 2019 after successfully achieving service and
performance conditions on 30 June 2019.
Refer to Note 25 Share-based payments for further details on performance rights.
Note 18. ACCUMULATED LOSSES
Accumulated losses at beginning of year
Adjustment on adoption of AASB 16
Profit/(Loss) attributable to Owners of the Company
Accumulated losses at end of year
(7,950,960)
(149,872)
(4,564,524)
(8,985,329)
-
1,034,369
(12,665,356)
(7,950,960)
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
41
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 19. SUBSEQUENT EVENTS
Significant matters that have arisen since the end of the financial year are:
• On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency
because of a new strain of coronavirus originating in Wuhan, China (COVID-19 outbreak) and the risks to
the international community as the virus spreads globally beyond its point of origin. Because of the rapid
increase in exposure globally, on 11 March 2020, the WHO classified the COVID-19 outbreak as a
pandemic.
The full impact of the COVID-19 outbreak continues to evolve at the date of this report. The Group is
therefore uncertain as to the full impact that the pandemic will have on its financial condition, liquidity, and
future results of operations during FY2021.
Management is actively monitoring the global situation and its impact on the Group's financial condition,
liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak
and the global responses to curb its spread, the Group is not able to estimate the effects of the COVID-19
outbreak on its results of operations, financial condition, or liquidity for the 2020 financial year.
Although the Group cannot fully estimate the length or gravity of the COVID-19 effect, from its initial
assessment, it is expecting to be able to continue as a going concern.
Other than as disclosed above or in the financial statements, no significant matters have arisen since the
end of the financial year, which significantly affects the operations of the Consolidated Group, the results of
those operations or the state of affairs of the Consolidated Group in future financial years.
Note 20. COMMITMENTS AND CONTINGENCIES
Within one year
After one year but not more than five years
More than five years
The Consolidated Group had the following capital purchase commitments
as at 30 June 2020
Within one year
After one year but not more than five years
More than five years
Consolidated Group
2020
$
2019
$
1,381,319
1,470,557
-
2,851,876
725,004
1,242,864
-
1,967,868
-
-
-
-
262,341
-
-
262,341
Other than as disclosed in the financial statements, the Consolidated Group does not have any contingent
assets or liabilities at balance sheet date and none have arisen since balance sheet date to the date of
signing the Directors’ report.
Note 21. AUDITOR'S REMUNERATION
Auditors of the Group - BDO and related network firms
Audit and review of financial statements
Group
Total audit and review of financial statements
Other statutory assurance services
Non-audit services
Group Tax
Total non-audit services
Total services provided by BDO
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
35,569
35,569
-
-
52,083
52,083
87,652
5,000
5,000
5,000
42
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 21. AUDITOR'S REMUNERATION (continued)
Other auditors - Stantons International
Audit and review of financial statements
Group
Total audit and review of financial statements
Other statutory assurance services - Stantons International
Non-audit services
Consulting services
Total non-audit services
Other statutory assurance services - RSM
Non-audit services
Consulting services
Total non-audit services
Other statutory assurance services
Non-audit services
Consulting services
Total non-audit services
Total services provided by other auditors (excluding BDO)
Note 22.
PROFIT/(LOSS) PER SHARE
The calculation of basic and diluted profit/(loss) per share was based on
the following:
Consolidated Group
2020
$
2019
$
36,366
36,366
65,053
65,053
-
-
4,828
4,828
45,480
45,480
42,998
42,998
1,590
1,590
5,390
5,390
83,436
118,269
Net (loss)/profit for the year attributable to owners of the Company
(4,564,524)
1,034,369
No.
No.
Weighted average number of ordinary shares used in calculating basic
profit/(loss) per share
190,490,332
157,923,054
Effect of dilution:
Share options
Convertible loans
-
n/a
-
n/a
Adjusted weighted average number of ordinary shares used in calculating
diluted profit/(loss) per share
190,490,332
174,110,260
Basic and diluted (loss)/profit per share (cents)
(2.40)
0.59
There is no impact from the 21,346,902 options outstanding at 30 June 2020 (2019: 21,346,902 options)
on the profit per share calculation because they are anti-dilutive. These options could potentially dilute
basic EPS in the future.
Note 23. KEY MANAGEMENT PERSONNEL DISCLOSURES
Names and positions held by Directors and other members of Key Management Personnel (“KMP”) in office
at any time during the financial year are set out below:
Name
Peter Harold
Bradley Adams
Ignazio Ricciardi
Danielle Lee
Romolo Santoro
Position Held
Non-Executive Chairman
Managing Director
Non-Executive Director (appointed 1 November 2019)
Non-Executive Director
Chief Financial Officer & Company Secretary
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
43
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 23. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
The aggregate compensation made to Directors and other KMP of the Group during the financial year is set
out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated Group
2020
$
2019
$
637,805
56,599
-
796,841
72,480
(82,138)
694,404
787,183
From 9 April 2020, all Directors and Executive Management agreed to reduce their base employment
benefits and directors fees by 10% to assist in mitigating the costs of the COVID-19 pandemic. Total cost
saving for FY2020 was $13,309 (FY2019: Nil).
Note 24. RELATED PARTY TRANSACTIONS
The ultimate parent entity is Ocean Grown Abalone Limited. Refer to Note 31 for a list of all controlled
entities.
In each of the following related party transactions normal commercial terms and conditions applied. Terms
and conditions were no more favourable than those available or which might reasonably be expected to be
available for a similar transaction or service to unrelated parties on arms-length basis.
Bigstreet Pty Ltd, of whom Ignazio Ricciardi is a director and in which he holds a beneficial ownership
interest, was paid $1,575 during the financial year (FY2019: $303) for the provision of cold storage and
handling services.
Vincenzo Ricciardi, son of Ignazio Ricciardi, is an employee of the Company. He received total remuneration
inclusive of superannuation during the financial year of $131,400 (FY2019: $131,400) as the Group Financial
Controller.
Jodee Adams, the wife of Brad Adams, was an employee of the Company up until 7 April 2020, her
employment ceased when her position was made redundant. Her redundancy payment was $5,289 and is
included in the total remuneration inclusive of superannuation during the financial year of $27,055 (FY2019:
$27,375) for the provision of office administration services.
Max Adams, son of Brad Adams, is an employee of the Company. He received total remuneration inclusive
of superannuation during the financial year of $4,540 (FY2019: $414) for the provision of services of general
labour.
Note 25. SHARE-BASED PAYMENTS
The Company makes share based payments, in the form of options and performance rights, to directors,
executives and employees as part of their remuneration and to consultants / advisers for their services.
Set out below is a summary of unlisted option movements during the financial year.
Balance at the start of the period
Cancelled during the period
Granted during the period
Exercised during the period
Lapsed during the period
Balance at the end of the period
2020
2019
Weighted
average
exercise
price per
Option
$0.36
-
-
-
-
$0.36
Number of
options
21,346,902
-
-
-
-
21,346,902
Weighted
average
exercise
price per
Option
$0.36
-
-
-
-
$0.36
Number of
options
21,346,902
-
-
-
-
21,346,902
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
44
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 25. SHARE-BASED PAYMENTS (continued)
Outstanding listed options at the end of the year, which were granted as share base payments, are
summarised as follows:
Series
Grant Date
Expiry Date
A
B
C1
1 Aug 2017
1 Aug 2017
1 Aug 2017
28 Dec 2020
30 Sep 2021
30 Sep 2021
Exercise
Price
$0.30
$0.39
$0.44
Total
Number of
options
8,807,452
10,039,450
2,500,000
21,346,902
1 Total of $218,239 is the fair value of Director Options granted in the
2018 financial year.
Fair value of performance rights during the year
The following performance rights were issued previously:
Class
Grant Date
A
B
C
D
Total
1 Aug 2017
1 Aug 2017
1 Aug 2017
31 Jan 2019
Number of
Performance
Rights
4,000,000
4,000,000
4,000,000
342,391
12,342,391
Value per
Share
$0.20
$0.20
$0.20
$0.155
Fair Value
$800,000
$800,000
$800,000
$53,071
$2,453,071
2020
2019
Total
expense
-
-
-
-
-
Total
expense
$307,307
($296,110)
($124,670)
$50,804
($62,669)
The Company previously issued 12,000,000 Performance Rights to Brad Adams, the Managing Director.
The Performance Rights have been issued in 3 classes, with 4,000,000 performance rights in each class
and subject to separate service and performance conditions. During the previous financial year, the
Company granted 342,391 Performance Rights (327,766 issued) to eligible employees. The service
conditions for each class are detailed below:
• Class A – Service Condition: remain engaged as an employee for a continuous period until
the performance condition is satisfied; and
Performance Condition: Prior to 31 December 2018, the Company completes its
Flinders Bay 2 Project in Augusta, with completion deemed to occur upon the
deployment and seeding of 5,000 Abitats at the Flinders Bay 2 Project site.
• Class B – Service Condition: remain engaged as an employee for a continuous period until
the performance condition is satisfied; and
Performance Condition: Prior to 14 November 2019, the Company recognises
revenue from the sale of 100 tonnes of abalone combined from Flinders Bay 1,
Flinders Bay 2, Wylie Bay and Port Lincoln Development projects in any 12 month
period.
• Class C – Service Condition: remain engaged as an employee for a continuous period until
the performance condition is satisfied; and
Performance Condition: Prior to 14 November 2022, subject to the Board
determining the success material part of the Port Lincoln Development Project, the
Company (either on its own or together with an affiliate or joint venture partner)
deploys and seeds a cumulative total of 5,000 Abitats across one or more
commercial project sites within South Australia.
• Class D – Service Condition: remain engaged as an employee for a continuous period until
30 June 2019.
Performance Condition: Maintain a satisfactory level of performance.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
45
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 25. SHARE-BASED PAYMENTS (continued)
For the purposes of the financial statements, where the assessed probability of the relevant performance
conditions is 50% or greater, the Group recognised the resulting share-based payment expense over the
relevant performance period. Support for a greater or less than 50% probability assessment of the
respective performance conditions, are set out below:
(i) Class A – 4,000,000 performance rights allocated after successfully achieving service and performance
conditions as outlined above. Transfer to issued capital upon the vesting of Class A performance rights
occurred on 15 November 2019
(ii) Class B – based on the projected FY2020 annual harvests and current stock estimates, production and
harvest capacity, the probability of achieving the applicable performance condition was considered to be
less than 50%. As per AASB 2 Share-based Payment, no amount is recognised because of failure to satisfy
vesting condition and therefore the share-based payment expense was reversed in the prior year. The
4,000,000 Class B performance rights have lapsed.
(iii) Class C – based on the Company’s assessment, the probability of achieving the applicable performance
condition was considered to be less than 50%. As per AASB 2 Share-based Payment, no amount is
recognised because of failure to satisfy vesting condition and therefore the share-based payment expense
was reversed in the prior year.
(iv) Class D – 327,766 performance rights allocated after successfully achieving service and performance
conditions as outlined above.
Note 26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Board monitors and manages the financial risk relating to the operations of the Group. Exposure to a
variety of financial risks: credit risk, liquidity risk and market risk (interest rate and currency risk) arises in
the normal course of the Consolidated Group’s business. The risk management policies are designed to
minimise potential adverse effects on the Consolidated Group’s financial performance.
The Consolidated Group holds the following financial instruments as at the reporting date:
Financial assets
Cash and cash equivalents
Trade & other receivables
Deposits
Financial liabilities
Trade and other payables
Lease liabilities
Loans and borrowings
Current tax liability
Market Risk
Consolidated Group
2020
$
2019
$
2,778,877
1,448,976
74,667
4,302,520
2,571,694
2,032,989
110,507
4,715,190
162,183
673,203
59,492
-
894,878
323,049
-
174,807
647
498,503
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will
affect the Consolidated Group’s income or the value of its holding of financial instruments. The Consolidated
Group’s objective is to manage and control market risk exposures within acceptable parameters, whilst
optimising returns.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
46
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)
Currency Risk
The Consolidated Group is exposed to currency risk on overseas sales of abalone product and associated
selling costs that are denominated in US dollars and cash holdings that are held in the Company’s US dollar
account. The Consolidated Group does not have any overseas borrowings. The Consolidated Group does
not currently hedge any of its estimated foreign currency exposure in respect of forecast sales. There were
no US dollar cash holdings at balance date. The Consolidated Group had a US dollar debtor balance of
USD502 (2019: USD159,099) and creditor balance of USD2,070 (2019: Nil).
The table below summarises the effect on the Consolidated Group’s comprehensive loss (movement in
average rate) and cash and cash equivalents (movement at balance date) if the AUD / USD exchange rates
moved by +10%:
Percentage shift in AUD / USD exchange rate
Total effect on debtors of +ve movement
Total effect on debtors of -ve movement
Total effect on creditors of +ve movement
Total effect on creditors of -ve movement
Total effect on comprehensive (loss) of +ve movement
Total effect on comprehensive profit of –ve movement
Consolidated Group
2020
$
10%
2019
$
10%
73
(89)
(274)
335
20,791
(25,411)
-
-
(205,754)
251,477
(217,492)
265,824
The following table sets out the interest rates applicable to financial instruments that are exposed to interest
rate risk:
Consolidated
Financial assets
Cash and cash equivalents
Trade & other receivables
Deposits
Total financial assets
Financial liabilities
Trade & other payables
Lease liabilities
Loans and borrowings
Total financial liabilities
Consolidated
Financial assets
Cash and cash equivalents
Trade & other receivables
Deposits
Total financial assets
Interest
bearing
Non-interest
bearing
2020
$
2020
$
Total
2020
$
Weighted
average
interest rate
2020
%
2,772,194
-
74,667
2,846,861
6,683
1,448,976
-
1,455,659
2,778,877
1,448,976
74,667
4,302,520
0.80
-
0.95
6,131
673,203
59,492
738,826
156,052
-
-
156,052
162,183
673,203
59,492
894,878
0.13
4.50
4.74
Interest
bearing
Non-interest
bearing
2019
$
2019
$
Total
2019
$
Weighted
average
interest rate
2019
%
2,553,033
-
110,507
2,663,540
18,661
2,032,989
-
2,051,650
2,571,694
2,032,989
110,507
4,715,190
1.90
-
2.31
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
47
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)
Consolidated
Financial liabilities
Trade & other payables
Loans and borrowings
Current tax liability
Total financial liabilities
Interest
bearing
Non-interest
bearing
2019
$
2019
$
Total
2019
$
Weighted
average
interest rate
2019
%
20,000
174,807
-
194,807
303,049
-
647
303,696
323,049
174,807
647
498,503
1.59
4.74
-
The Consolidated Group receives interest on its cash management deposits based on daily balances and
at balance date was exposed to a weighted average variable interest rate of 0.80% (2019: 1.90%). The
Consolidated Group’s US dollar account does not attract interest.
The Consolidated Group receives interest on its Deposits and at balance date was exposed to a weighted
average fixed interest rate of 0.95% (2019: 2.31%)
Interest payable on trade and other payables relates to the Consolidated Group credit card balances at
balance date.
Credit Risk
Credit risk represents the risk of financial loss to the Consolidated Group if a customer or counterparty to
the financial instrument fails to meet its contractual obligations and arises principally from the Consolidated
Group’s receivables from customers. This in turn is influenced by the characteristics of each customer and
the Consolidated Group regularly assesses the creditworthiness of its customers.
The Consolidated Group regularly reviews its trade and other receivables balances for impairment. At the
reporting date, $1,998 (2019: nil) trade and other receivables were past due or impaired.
The Consolidated Group’s maximum exposure to credit risk at the reporting date was:
Financial assets
Cash and cash equivalents
Trade & other receivables
Deposits
Total financial assets
Consolidated Group
2020
$
2,778,877
1,448,976
74,667
4,302,520
2019
$
2,571,694
2,032,989
110,507
4,715,190
The Consolidated Group’s maximum exposure to credit risk at the reporting date was:
Credit quality of financial assets
At 30 June 2020
Financial assets
Cash and cash equivalents
Trade debtors & other receivables 2
Deposits
Total financial assets
Equivalent
S&P rating 1
$
Internally
rated No
default
$
Total
$
2,778,877
-
74,667
2,853,544
-
1,448,976
-
1,448,976
2,778,877
1,448,976
74,667
4,302,520
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
48
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)
Credit quality of financial assets
At 30 June 2019
Financial assets
Cash and cash equivalents
Trade debtors & other receivables 2
Deposits
Total financial assets
Equivalent
S&P rating 1
$
Internally
rated No
default
$
Total
$
2,571,694
-
110,507
2,682,201
-
2,032,989
-
2,032,989
2,571,694
2,032,989
110,507
4,715,190
1 The equivalent S&P rating of the financial assets and deposits represents the rating of the counterparty
with whom the financial asset is held rather than the rating of the financial asset itself. NAB has a rating of
A-1+ (short-term) and AA- (long-term). CBA has a credit rating of A-1+ (short-term) and AA- (long-term).
2 Includes trade receivables of $766 (FY2019: $266,213). Other receivables include net amounts owing from
Government institutions of $1,291,996 (FY2019: $1,763,093).
Liquidity Risk
Liquidity risk arises from the financial liabilities of the Consolidated Group and its ability to meet their
obligations to repay their financial liabilities as and when they fall due. The Consolidated Group manages
liquidity risk by maintaining adequate reserves and monitoring budgeted and actual cash flows and matching
the maturity profiles of financial assets, expenditure commitments and liabilities.
Maturity of financial liabilities
The table below reflects an undiscounted contractual maturity analysis for financial liabilities:
Contractual maturities of financial
liabilities
Less than
12 months
Between 1
and 2 years
Between 2
and 5 years
Over 5
years
Total
contractual
cash flows
$
$
$
$
$
Carrying
amount
$
At 30 June 2020
Non-Derivatives
Trade and other payables
Lease liabilities
Loans and borrowings
Total expected outflows
162,183
130,571
35,580
328,334
-
114,882
9,777
124,659
-
141,106
17,873
158,979
-
508,890
-
508,890
162,183
895,449
63,230
1,120,862
162,183
673,203
59,492
894,878
Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
Fair Value Measurement of financial instruments
Note 2(h) summarises the Consolidated Group’s approach to fair value assessment of its assets and liabilities.
The carrying amount of the Consolidated Group’s financial instruments are assumed to approximate their fair
value due to either the short term nature or their terms and conditions.
Capital Risk Management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern,
so that they can continue to provide returns to shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt. The Group has a net gearing ratio of 0.39% at 30 June 2020 (30 June
2019: 1.01%). The Group has no external requirements imposed upon it in relation to capital structure.
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
49
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Consolidated Group
2020
$
2019
$
Note 27. RECONCILIATION OF CASH FLOWS FROM
OPERATING ACTIVITIES
Reconciliation of net Cash provided by Operating Activities to
Operating (Loss)/Profit after Income Tax
(Loss) / Income after income tax for the year
(4,565,020)
1,033,625
Depreciation and amortisation
Fair value (FV) adjustment – biological assets
Net interest (received) including interest expense on lease liability
Loss / (gain) on sale of assets
Performance rights (reversed)
Amounts recognised directly in equity - net deferred tax
Change in assets and liabilities
Decrease in biological assets and inventory (excluding FV adjustment)
Decrease / (Increase) in trade and other receivables
Decrease in R&D tax refund receivable
Decrease / (Increase) in deferred tax assets
(Decrease) / Increase in deferred tax liabilities
(Decrease) in trade and other payables
(Decrease) / Increase in income tax payable
Increase in provisions
761,429
2,171,409
(1,065)
1,500
-
55,424
550,016
(5,078,577)
(122,260)
(83,510)
(62,669)
-
773,493
297,123
286,890
12,042
(1,170,105)
(369,614)
(647)
23,936
934,348
(220,649)
415,173
(60,565)
1,263,928
(317,150)
112,940
8,490
Net cash used in operating activities
(1,723,205)
(1,626,860)
Note 28. OPERATING SEGMENT
For management purposes, the Consolidated Group is organised into one main operating segment, which
involves its abalone ranching operations, inclusive of its seeding, farming and processing activities. All of
the Consolidated Group’s activities are interrelated, and discrete financial information is reported to the
Board (Chief Operating Decision Makers) as a single segment. Accordingly, all significant operating
decisions are based upon analysis of the Consolidated Group as one segment. The financial results from
this segment are equivalent to the financial statements of the Consolidated Group as a whole. The
Consolidated Group operates only in Australia.
Note 29. DIVIDENDS
No dividend was paid or declared by the Company in the period since the end of the financial year and up
to the date of this report. The Directors do not recommend that any amount be paid by way of dividend for
the financial year ended 30 June 2020 (2019: Nil). The balance of the franking account as at 30 June 2020
is Nil (2019: Nil).
Note 30. PARENT ENTITY INFORMATION
Total assets
Total liabilities
Net assets
Issued capital
Share based payment reserve
Adjustment on adoption AASB 16
Accumulated losses
Total shareholders’ equity
(Loss)/Profit of the parent entity
Total comprehensive (loss)/profit of the parent entity
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
2020
$
2019
$
16,879,286
(1,561,727)
15,317,559
27,012,442
1,051,899
(149,114)
(12,597,668)
15,317,559
(4,666,383)
(4,666,383)
19,733,997
(2,354,440)
17,379,557
23,408,139
1,902,703
-
(7,931,285)
17,379,557
845,987
845,987
50
O C E A N G R O W N A B A L O N E L I M I T E D
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Note 30. PARENT ENTITY INFORMATION (continued)
(a) Guarantees entered into by the parent entity
Refer to Note 13 for information on the guarantee and other security provided by the Company in relation to
the debts of its subsidiaries.
(b) Contingent liabilities of the parent entity
The Company did not have any other contingent liabilities not recognised as liabilities at balance date.
(c) Contractual commitments for capital expenditure
The Company did not have any other commitments in relation to capital expenditure contracted but not
recognised as liabilities at balance date.
Note 31. CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in Note 2(e).
Name
Country of Incorporation
Ocean Grown Abalone Operations Pty Ltd
Two Oceans Abalone Pty Ltd
Wylie Bay Abalone Pty Ltd
Ocean Grown Abalone Wylie Bay Pty Ltd
Australia
Australia
Australia
Australia
Percentage Owned
2019
2020
100%
100%
100%
100%
66.67%
66.67%
100%
100%
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
51
O C E A N G R O W N A B A L O N E L I M I T E D
D I R E C T O R S ’ D E C L A R A T I O N
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
The directors of the Company declare that:
1.
The financial statements and notes, as set out on pages 17 to 51 are in accordance with the Corporations Act 2001,
including:
a)
b)
complying with Australian Accounting Standards as described in Note 2, the Corporations Act 2001 and with
International Financial Reporting Standards; and
giving a true and fair view of the consolidated Group’s financial position as at 30 June 2020 and of its performance
for the financial year ended on that date.
2.
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
_______________________
Bradley Adams
Managing Director
28 August 2020
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
52
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Ocean Grown Abalone Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Ocean Grown Abalone Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at
30 June 2020, 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 30 June 2020 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 (including Independence Standards) (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.
Material uncertainty related to going concern
We draw attention to Note 2(v) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 Audit (WA) Pty Ltd 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.
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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Accounting for Biological Assets
Key audit matter
How the matter was addressed in our audit
The Group’s biological assets, as disclosed in Note
8 to the financial report, was a key audit matter
as the calculation of the fair value of abalone
requires significant estimates and judgements by
management.
The Australian Accounting Standards require
biological assets to be measured at fair value less
costs to sell or, in the absence of a fair value, at
cost less impairment.
The Group have valued the biological assets at
fair value less costs to sell. The valuation
requires management’s judgement in relation to
estimating the future selling prices, quantity of
abalone, abalone size, mortality and costs to
complete.
Our audit procedures included, but were not
limited to:
•
•
•
•
•
considering the appropriateness of the
valuation methodology against the relevant
Australian Accounting Standards;
testing the mathematical accuracy of the
fair value model used by management;
performing a reconciliation of the number of
abalone by obtaining the opening balance
and comparing the known and estimated
movements (juveniles planted, harvests and
mortalities for the year) to supporting
documentation on a sample basis in order to
assess the reasonableness of the number of
abalone at year end;
counting a sample of abalone on hand at
reporting date as part of our year end site
visit and comparing this to the Group’s
count for reasonableness;
assessing the key inputs contained within
the fair value model, including the future
selling prices, incorporating any potential
impact of the COVID-19 pandemic, mortality
and costs to complete;
Key audit matter
How the matter was addressed in our audit
•
performing a sensitivity analysis of the key
inputs including the future selling price,
abalone quantity and abalone size as these
are the key assumptions against which the
model is most sensitive to; and
•
evaluating the adequacy of the related
disclosure in Note 8 to the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2020, 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.
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 at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.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 9 to 14 of the directors’ report for the
year ended 30 June 2020.
In our opinion, the Remuneration Report of Ocean Grown Abalone Limited, for the year ended 30 June
2020, 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 Audit (WA) Pty Ltd
Dean Just
Director
Perth, 28 August 2020
O C E A N G R O W N A B A L O N E L I M I T E D
A D D I T I O N A L S E C U R I T I E S E X C H A N G E I N F O R M A T I O N
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
Shareholder Information
The shareholder information set out below was applicable as at 25 August 2020.
1. Quotation
Listed securities in Ocean Grown Abalone Limited are quoted on the Australian Securities Exchange under ASX code OGA
(Fully Paid Ordinary Shares).
2. Voting Rights
The voting rights attached to the Fully Paid Ordinary shares of the Company are:
(a)
(b)
at a meeting of members or classes of members each member entitled to vote may vote in person or by
proxy or by attorney; and
on a show of hands, every person present who is a member has one vote, and on a poll every person
present in person or by proxy or attorney has one vote for each ordinary share held.
There are no voting rights attached to any Options or Performance Rights on issue.
3. Distribution of Shareholders
i)
Fully Paid Ordinary Shares
Shares Range
Holders
Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
17
160
293
548
180
1,193
5,781
574,020
2,418,229
20,143,084
177,601,666
200,742,780
0.00
0.29
1.20
9.85
88.47
100.00%
On 25 August 2020, there were 130 holders of unmarketable parcels of less than 351,964 ordinary shares (based on the
closing share price of $0.1150).
ii)
Unlisted Class A Options exercisable at $0.30 on or before 28 December 2020
Shares Range
Holders
Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
-
-
-
-
4
4
-
-
-
-
8,807,4521
8,807,452
-
-
-
-
100.00
100.00%
1Holders who hold more than 20% of securities are:
Ainsley Gae Andrew – 2,300,000 Options
Tejiman Holdings Pty Ltd - 2,300,000 options
Jaek Holdings Pty Ltd - 2,300,000 options
View Street Partners Pty Ltd - 1,907,452 options
-
-
-
-
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
57
O C E A N G R O W N A B A L O N E L I M I T E D
A D D I T I O N A L S E C U R I T I E S E X C H A N G E I N F O R M A T I O N
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
3. Distribution of Shareholders (continued)
iii)
Unlisted Class B Options exercisable at $0.39 on or before 30 September 2021
Shares Range
Holders
Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
-
-
-
-
4
4
-
-
-
-
10,039,4501
10,039,450
-
-
-
-
100.00
100.00%
1Holders who hold more than 20% of securities are:
-
-
Tejiman Holdings Pty Ltd - 4,394,725 options
Jaek Holdings Pty Ltd - 4,394,725 options
iv)
Unlisted Class C Options exercisable at $0.44 on or before 30 September 2021
Shares Range
Holders
Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
-
-
-
-
2
2
-
-
-
-
2,500,0001
2,500,000
-
-
-
-
100.00
100.00%
1Holders who hold more than 20% of securities are:
Springway Investments Pty Ltd - 1,500,000 options
-
- Danielle Marguerite Lee – 1,000,000 options
v)
Class C Performance Rights
Shares Range
Holders
Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
-
-
-
-
1
1
-
-
-
-
4,000,0001
4,000,000
-
-
-
-
100.00
100.00%
1Holders who hold more than 20% of securities are:
-
Bradley Adams – 4,000,000 performance rights
4. Substantial Shareholders
As at 20 August 2020, the Company’s register showed the following substantial shareholders:
Name
Mr Ignazio Peter Ricciardi & Mrs Silvana Ricciardi
Calogero Paul Ricciardi
NE & HJ Soulos Pty Ltd
Frewin Corporation Pty Ltd
No. of Shares
15,257,577
13,008,003
10,273,422
9,867,012
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
%
7.60
6.52
5.12
4.92
58
O C E A N G R O W N A B A L O N E L I M I T E D
A D D I T I O N A L S E C U R I T I E S E X C H A N G E I N F O R M A T I O N
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 0
5. Restricted Securities
There are currently no restricted securities.
6. On market buy-back
There is currently no on market buy back in place.
7. Application of funds
The Company has applied its cash and assets readily convertible to cash in a way that is consistent with its business objectives
detailed in its IPO prospectus.
8. Twenty Largest Shareholders
The twenty largest shareholders of the Company’s quoted securities as at 25 August 2020 are as follows:
Name
No. of Shares
%
Mr Ignazio Peter Ricciardi & Mrs Silvana Ricciardi
Calogero Paul Ricciardi
NE & HJ Soulos Pty Ltd
Frewin Corporation Pty Ltd
UBS Nominees Pty Ltd
Tomba Nominees Pty Ltd
Mr Michael Kelsey Cross
BNP Paribas Noms Pty Ltd
HSBC Custody Nominees (Australia) Limited
Abracadabra Fishing Company Pty Ltd
1
2
3
4
5
6
7
8
9
10
11 Whale Watch Holdings Limited
12
13
14
14
15
16
17
18
19
20
Sylvia Ricciardi
Blair House Pty Ltd
Montrose Investments (WA) Pty Ltd
Teakdale Investments Pty Ltd
Mrs Sylvia Ricciardi
Pyxis Holdings Pty Ltd
Tejiman Holdings Pty Ltd
Makaba Pty Ltd
Citicorp Nominees Pty Limited
Reay Corporation Pty Ltd
Total
15,257,577
13,088,003
10,273,422
9,867,012
9,473,019
7,671,330
6,300,000
5,986,936
5,771,962
5,451,055
4,200,000
3,656,250
3,622,689
3,000,000
3,000,000
2,812,500
2,650,000
2,500,000
2,370,000
2,209,777
2,187,500
121,349,032
7.60%
6.52%
5.12%
4.92%
4.72%
3.82%
3.14%
2.98%
2.88%
2.72%
2.09%
1.82%
1.80%
1.49%
1.49%
1.40%
1.32%
1.25%
1.18%
1.10%
1.09%
60.45%
2020 Annual Financial Report for the Financial Year Ended 30 June 2020
59