ABN 39 078 388 155
ANNUAL REPORT
F o r t h e y e a r e n d e d 3 0 J u n e 2 0 2 2
Corporate Information
Pointerra Limited
ABN 39 078 388 155
Directors
Ian Olson, Managing Director
Paul Farrell, Non-Executive Director
Neville Bassett, Non-Executive Director (Chairman)
Company Secretary
Neville Bassett
Registered Office
Level 4, 216 St Georges Terrace
Perth, WA 6000
Telephone: +61 8 6268 2622
Facsimile: +61 8 6268 2699
Principal Office
Level 2, 27 Railway Road
Subiaco, WA 6008
Internet
Website: www.pointerra.com
info@pointerra.com
Email:
Auditor
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco, WA 6008
Share Registry
Advanced Share Registry Services Ltd
110 Stirling Highway
Nedlands, WA 6009
admin@advancedshare.com.au
Email:
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Solicitors
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth, WA 6000
Telephone: +61 8 9321 4000
Facsimile: +61 8 9262 3723
Stock Exchange Listing
Pointerra Limited shares are listed on the Australian
Securities Exchange (ASX Code: 3DP)
Contents
About Pointerra
Operational Highlights
Financial Highlights
Managing Director’s Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Financial Statements
1
2
3
4
9
22
23
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
24
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Corporate Governance Statement
Additional Information for Shareholders
25
26
27
28
50
51
56
57
About
Pointerra
Pointerra is a leading global geospatial technology company that is changing the
way people use 3D data to build digital twins and manage the physical world.
Pointerra3D is the world’s fastest true end-to-end digital twin solution, leveraging proprietary technology and
an innovative, unique cloud subscription business model.
We help our customers answer almost any physical asset management question and solve numerous
traditional workflow problems when using 3D digital twin data to plan, design, construct, own, operate, insure
and regulate the physical world around us.
Pointerra3D’s digital twin solution stores, processes, manages, analyses, extracts, visualises and shares the
key insights from massive 3D datasets at a new level of speed, smarts and scale.
Pointerra3D ANSWERS delivers the predictive insights that enable
definitive answers to physical asset management questions.
Pointerra3D ANALYTICS creates a digital twin to enable
intelligent analysis of physical assets.
Pointerra3D CORE is the baseline platform access
and 3D data workflow offering.
Pointerra’s business targets customers across 6 key sectors, each of which
represents total addressable market (TAM) of at least US$50 million in annual
contract value (ACV) opportunities.
SURVEY & MAPPING
AEC
UTILTIES
TRANSPORT
MINING, OIL & GAS
DEFENSE & INTELLIGENCE
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
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Operational
Highlights
Expanded core platform development team in
AUS and US
Created product team to sit between platform
development and business development
Opened US office and scaled business
development team across 6 target market sectors
Rebranded Pointerra corporate and Pointerra3D
solution architecture
Launched AI program to build on and accelerate
existing 3D data analytics capability
Successfully won and deployed material
contracts in strategic US power utility sector
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Financial
Highlights
Annual Contract Value
US$18.2m
86% (2021: US$9.8m)
Underlying EBITDA*
A$0.025m
Customer Revenue
A$9.8m
146% (2021: A$3.98 million)
Customer Cash Receipts
A$7.75m
102% (2021: -A$1.27 million)
[*adjusted for share based payments expense]
91% (2021: A$4.10 million)
Customer Receivables
A$2.70m
Cash Balance
A$3.60m
407% (2021: A$0.53 million)
30% (2021: A$5.18 million)
FY22 Highlights – step change in scale lead by US Utilities
•
•
•
•
•
•
Growth across Pointerra’s 6 key market sectors delivered 86% annual improvement in ACV with majority delivered
by the Company’s standout US Utilities sector
Growth in revenue from customers to A$9.8m reflects award of material contracts coupled with increased spend by
existing customers plus new customers added during the year
Underlying EBITDA of A$0.025m (FY21 -A$1.27m) reflects scaling customer revenue compared to more modest
growth in operating costs
Growth in cash receipts tracks growth in revenue and ACV with these metrics expected to align as the business
continues to mature in coming reporting periods
Cash balance of A$3.60m and trade and other receivables of $3.50m demonstrates self-funding business model
Pointerra enters FY23 funded for continued organic growth in platform development and customer acquisition with
new hires being sought across the operation – development, product and sales
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
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Managing Director’s
Review of Operations
Dear Shareholder
I’m pleased to provide a review of our operations for FY22, a year in which your company
continued to mature its world-class digital twin platform and solution, while also achieving
growth across the business in terms of customers, people and process.
Record Financial Performance
During FY22 the business generated step-change improvements across all key financial metrics with continued growth in
ACV delivering record revenue, cashflow and underlying EBITDA.
Pointerra has consistently sought to build a capital-light business model capable of generating very high gross margins
and over recent quarters has also demonstrated an ability to scale organically in a self-funding manner.
FY23 therefore presents an opportunity to exploit emerging positive operational leverage to deliver a maiden earnings
result for the Company.
Operational Achievements
FY22 marked a clear transition in Covid related border and general movement restrictions, which facilitated a return to
in-person meetings across the AUS and US operations.
Whilst Pointerra is a cloud SaaS business, people still buy from people and the resumption of travel and trade show
attendance in the US and more recently Australia has helped re-establish important face to face contact with customers,
prospects and technology partners in both countries.
Initiatives including the rebranding of both Pointerra corporate and Pointerra3D product/solution messaging, opening
our first US office in Virginia and making new BD appointments in key target market sectors in Australia and the US were
important.
During the year Pointerra secured a number of material enterprise sales in the strategically important US power utilities
sector. Onboarding these customers was another operational highlight for FY22 and required overcoming numerous
complex organisational challenges to deliver customer success.
In the emerging key target market sectors of Mining, Oil & Gas, the business development and product teams successfully
leveraged the Company’s proven power utility sector approach of working with customers and prospects to systematically
cloudify slow, inefficient desktop workflows to Pointerra3D, delivering operational productivity, safety and regulatory
compliance to the sector. As a result Pointerra now counts a number of Tier 1 global resources companies as customers
that are expected to scale their use to become material enterprise customers in coming periods.
Whilst Pointerra3D Defence & Intelligence and Transport sector digital twin solutions are less mature, the foundational
Pointerra3D Core platform facilitated the onboarding of enterprise customers during the year, with sector-specific
solutions also emerging via Pointerra3D Analytics and Answers.
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Industry & Market Update
The global geospatial sector continues to
experience material levels of year-on-year growth
in both hardware and software solutions, with
ready access to the creation and consumption of
3D data also becoming democratised down to the
consumer via recent LiDAR hardware and software
enhancements available on newer iPhone and iPad
models.
Importantly, the geospatial sector (surveying &
mapping) supports the AEC sector (architecture,
engineering and construction) in planning,
designing, building and operating infrastructure
assets for end-user customers across key Pointerra
target market sectors. With post-Covid government
infrastructure funding at unprecedented levels, the
AEC sector (Pointerra’s largest TAM) is accelerating
the adoption of workflow technology solutions
(like Pointerra3D) in order to deliver the required
infrastructure projects.
These structural tailwinds and innovation drivers
are helping grow Pointerra’s sales pipeline as well
as shrinking the sales cycle. Larger enterprise
customers that were cloud-cautious prior to 2020
have also embraced cloud migration across their
operations, aiding in the accelerated adoption of
cloud SaaS platforms like Pointerra3D.
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
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As we move further into FY23 the
Company remains laser-focused on
balancing our ambitions to deliver
exceptional organisational and
financial growth with a disciplined
approach to financial management.
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Growth Strategy
The Company’s growth strategy remains consistent:
1.
Identify and on-board quality people in development, product and business development across Pointerra’s
6 key target market sectors.
2. Continue to work with customers, prospects and partners to identify problematic and clumsy desktop
digital twin workflows that can be migrated to the cloud, building out Pointerra3D Analytics and Answers
solutions with sector-specific tools that leverage the power of Pointerra3D Core.
3.
Leverage the Company’s proven success in the power utility sector to provide a pathway for growth across
other key target market sectors.
4. Retain a disciplined focus on scaling sticky, recurring SaaS ACV, revenue and cashflow so that the resulting
operational leverage can drive sustainable profitability.
Outlook & Focus Areas for FY23
As we move further into FY23 the Company remains laser-focused on balancing our ambitions to deliver exceptional
organisational and financial growth with a disciplined approach to financial management.
Success will likely result if we are able to focus on the biggest drag on growth – identifying, onboarding, nurturing and
retaining exceptional people.
The absolute irony of scaling a cloud platform business is a magnified reliance on the need for exceptional people to
conceive, build and sell digital twin solutions to our customers and prospects across the Company’s key target market
sectors.
Your team at Pointerra is up to the challenge and we look forward to delivering through FY23 and beyond.
Ian Olson
Managing Director
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’
Report
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
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Directors’ Report
The directors of Pointerra Limited (“the Company”) present their report, together with the financial statements of the Company, for
the financial year ended 30 June 2022.
The names of the directors in office at any time during or since the end of the year are:
NAME OF PERSON
POSITION
DATE APPOINTED
Ian Olson
Managing Director
30 June 2016
Neville Bassett
Non-executive Chairman
30 June 2016
Paul Farrell
Non-executive Director
9 November 2018
Information on Directors
Mr Ian Olson – Managing Director
CA, B.Com, MAICD
Mr Olson is a Chartered Accountant and professional public company director with a 30-year career in finance and the capital
markets sector and has helped numerous high-growth companies move from private to public status via the ASX and International
stock exchanges. Mr Olson started his career with Ernst & Young and has worked in London and New York with global investment
banks. He is also the Non-Executive Chairman of Good Drinks Australia Limited.
In addition to being one of the co-founders of Pointerra in 2015, Mr Olson has more than 15 years’ experience in the geospatial
sector, having previously owned and operated a surveying business that specialised in the generation of 3D data for customers
in the mining, oil & gas and AEC sectors.
Mr Neville Bassett – Non-Executive Director (Chairman)
AM, FCA
Mr Bassett is a Chartered Accountant operating his own corporate consulting business, specialising in the area of corporate,
financial and management advisory services. He consults to a number of publicly listed companies and private company groups
in a diversity of industry sectors, and is a director or company secretary of a number of public and private companies. Mr Bassett
has been involved with numerous public company listings and capital raisings. His involvement in the corporate arena has also
included mergers and acquisitions, and includes significant knowledge and exposure to the Australian financial markets. He has
a wealth of experience in matters pertaining to the Corporations Act, ASX listing requirements, corporate taxation and finance.
Mr Bassett is the principal director of Westar Capital Limited, the holder of an Australian Financial Services License and is a Fellow
of Chartered Accountants Australia and New Zealand. He was previously State Chairman and a former National Director of the
Royal Flying Doctor Service.
Mr Paul Farrell – Non-Executive Director
B.Sc, GDip Mgt, MBA
Mr Farrell is the Managing Director of NGIS Australia, which was established in 1993 and has grown from being a boutique map
maker and digitising house to an integrated provider of mapping and location-based technology solutions to large enterprise
nationally and internationally, working with globally recognised technology companies such as Google.
Mr Farrell has tertiary qualifications in both Science and Management, completing an MBA in 2005. Outside of NGIS, Paul is
involved and has sat on many private, government and research boards including the WA Regional Development Trust and
Frontier SI. He is a past National Chairman of SIBA (Spatial Industry Business Association) and Vice-Chair of the AIIA (Australian
Information Industry Association) in WA.
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Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Directorships of other listed companies
Directorships of other listed companies held by directors during the 3 years immediately before the end of the financial year are
as follows:
Name
Company
Period of directorship
Mr Ian Olson
Good Drinks Australia Limited
(Non-executive Chairman)
12 November 2007 – current
Mr Neville Bassett
Metalsearch Ltd (Formerly
Laconia Resources Ltd)
Yowie Group Ltd
Auris Minerals Ltd
PharmAust Ltd
8 May 2015 – 16 October 2019
5 August 2019 – 27 November 2020
20 April 2018 – current
2 October 2018 – current
Tennant Minerals Ltd
28 November 2019 – current
Bulletin Resources Ltd
15 October 2021 - current
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Directors’ interests in shares and options
At the date of this report, the direct and indirect interests of the Directors in the ordinary shares and options of the Company were:
Ian Olson
Neville Bassett
Paul Farrell
Directors’ meetings
Ordinary shares
Options
42,814,889
4,732,266
3,000,000
-
-
-
Attendances by each Director at directors’ meetings during the year were as follows:
Directors Meetings
Number Eligible to
Attend
Number Attended
Ian Olson
Neville Bassett
Paul Farrell
3
3
3
3
3
3
Directors’ meetings held during the year, included above, do not include meetings held via circular resolution. Directors held an
additional 8 meetings via circular resolution, attended by all directors, for a total of 11 meetings.
Company Secretary
Mr Neville Bassett – appointed 30 June 2016.
For further information about Mr Bassett, please refer to the information on directors in this Directors’ Report.
Principal Activities
Pointerra is an Australian headquartered company with operations in the Australasian and North American regions, focused on
the global commercialisation of its proprietary 3D technology solution to support digital asset management activities across a
range of sectors, including civil infrastructure, mining, oil & gas, architecture, engineering & construction, and government
agencies at all levels. Pointerra’s cloud-based solution is based on compression, visualisation and analytics algorithms that index
massive 3D datasets, for which Pointerra has both granted and provisional Patent Applications in a range of countries and
jurisdictions. Customers 3D data hosted by Pointerra can be dynamically searched, accessed, visualised, analysed and shared
by anyone, anywhere, on any device and at any time.
Review of Operations
Sales & Platform
During the year the Company continued to generate growth in sales and cash receipts across target sectors, increasing the
number of paying customers and regularly reporting cumulative Annual Contract Value (ACV) of Pointerra’s customers.
Further investment in Pointerra3D’s Analytics and Answers solutions during FY22 broadened the appeal of the Company’s
platform, attracting new customers and prospects as well as growing sales from existing Pointerra3D Core customers in Australia
and the US. During FY22 the Company’s R&D team continued to work with customers and partners to build-out the platform and
analytics stack, responding to the simple questions that Pointerra uses in determining the suitability of its platform:
• What physical asset management problems are you trying to solve? (using 3D digital twin data); and/or
• What questions are you trying to ask of 3D digital twin data?
Responding to growth in demand for Pointerra’s 3D digital twin solution, the Company made a number of appointments during
the year to support the R&D team and the Company’s business development and sales activities.
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Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Financial Review
During the year the Company grew cash receipts from customers to $7.75 million from $4.07 million in FY21 and reported ACV
subscription growth from US$9.80 million (July 2021) to US$18.20 million by July 2022. Operating cash outflows were in line
with management expectations during the year.
The Company continues to operate a lean, agile, low-cost operating model as it scales customer sales and will continue to add
R&D and sales resources in line with growth in the sales pipeline. This approach generated multiple cashflow positive quarters
during FY22 and for the full year, Pointerra generated near cashflow breakeven from operating activities.
The Company notes that quarter-on-quarter cash receipts may continue to be variable as new customers are on-boarded following
contract award with a variety of different payment cycles including monthly, quarterly, annually and even multi-year in advance
agreements. This ongoing variability in quarterly cash receipts is however expected to smooth out in time as ACV continues to
grow and the size and diversity of Pointerra’s customer base continues to mature.
COVID-19
Pointerra team members now reside in 2 Australian and 5 US states and since the global outbreak of the COVID-19 pandemic,
Pointerra has followed and adopted hygiene, health and work practice advice from relevant state and federal health departments
and agencies in Australia and the US.
To date COVID-19 has had minimal impact on the ability of Pointerra’s team to continue to operate the Company’s business. The
Board has considered a range of operational risk management initiatives, which will continue to be monitored in this fluid and
rapidly changing global environment.
First and foremost, the safety of our people will continue to remain a priority.
Operating Results
The loss for the financial year after providing for income tax was $2,673,599 (2021: $1,509,332 (loss)).
Financial Position
As at 30 June 2022, the Company had cash of $3,596,423 (2021: $5,179,363) and net assets of $3,289,036 (2021: $4,588,729).
Future Developments
The Company will continue to commercialise its technology stack via a recurring subscription-based revenue model. Pointerra’s
vision is to become a globally relevant 3D digital twin geospatial technology business focused on solving the numerous challenges
of using 3D digital twin data to manage the physical world – simplifying the complex and doing it faster than anyone else.
Operational & Financial Risks
The Company faces a number of operational and financial risks as it seeks to scale operations in Australia and the US.
Operational risks include the ability to find and retain people, the continued suitability of Pointerra’s cloud platform to support
solving customer problems, potential competitors and wider macro-economic headwinds including rising interest rates and
stagnating global growth.
Financial risks include currency (foreign exchange) risk and having sufficient cash reserves to fund ongoing investment in people
and platform.
Dividends Paid or Recommended
No dividends were paid or declared since the start of the financial year.
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Environmental Issues
The Company has a policy of at least complying, but in most cases exceeding, its environmental performance obligations. No
environmental breaches have been notified by any government agency during the year ended 30 June 2022. The Board believes
that the Company has adequate systems in place for the management of its environmental regulations.
The Company also believes that the adoption of its cloud platform for 3D data by customers around the world generates positive
ESG (Environmental, Social and Governance) outcomes by allowing customers to manage their physical world using Pointerra’s
browser-based interface, resulting in fewer physical site visits.
Shares under Option
At the date of this report, there were no unissued ordinary shares of Pointerra Limited under option. Refer to Note 18 for further
information on terms of options.
Indemnifying officers or auditor
During or since the end of the financial year the Company has given an indemnity or entered into an agreement to indemnify, or
paid or agreed to pay insurance premiums as follows:
•
The Company has entered into agreements to indemnify all Directors and provide access to documents, against any liability
arising from a claim brought by a third party against the Company. The agreement provides for the company to pay all
damages and costs which may be awarded against the Directors.
•
No indemnity has been paid to auditors.
Remuneration Report (audited)
This report details the nature and amount of the remuneration for each member of key management personnel of Pointerra Limited
for the year ended 30 June 2022.
For the purposes of this report, Key Management Personnel of the company are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly.
For the purposes of this Remuneration Report, the term ‘Executive’ encompasses all Directors, the Company Secretary, the Chief
Operating Officer, Chief Research Officer and Chief Technical Officer of the company.
Remuneration Philosophy
The performance of the company depends upon the quality of its Directors and Executives. To prosper, the company must attract,
motivate and retain highly skilled Directors and Executives.
To this end, the company embodies the following principles in its remuneration framework:
‘The Board as a whole is responsible for considering remuneration policies and packages applicable both to board members and
senior executives of the company. The Board remuneration policy is to ensure the remuneration package, which is not linked to
the performance of the company, properly reflects the person’s duties and responsibilities and that remuneration is competitive in
attracting, retaining and motivating people of the highest quality.’
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and senior manager remuneration
is separate and distinct. The company does not engage remuneration consultants.
Non-executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the company with the ability to attract and retain directors
of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined
from time to time by a general meeting. An amount not exceeding the amount determined is then divided between the Directors
as agreed. The current aggregate remuneration pool is $500,000 per year.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst
Directors is reviewed annually. The Board may consider advice from external consultants as well as the fees paid to non-executive
Directors of comparable companies when undertaking the annual review process. Each director receives a fee for being a Director
of the company.
Non-executive Directors are encouraged by the Board to hold shares in the company. It is considered good governance for
directors to have a stake in the Company on whose board he or she sits.
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Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Voting on the Remuneration Report
At the Company’s 2021 Annual General Meeting a resolution to adopt the 2021 Remuneration Report was passed by poll, with
the poll indicating majority (98.61%) support in favour of adopting the Remuneration Report.
Managing Director and Executive Remuneration Structure
Based on the current stage in the company’s development, its size, structure and strategies, the Board considers that the key
performance indicator in assessing the performance of Executives and their contribution towards increasing shareholder value is
commercially based, inclusive of share price performance over the review period.
Individual and company operating targets associated with traditional financial and non-financial measures are difficult to set given
the small number of Executives and their need to be flexible and multi-tasked, as the company responds to a continually changing
business environment. Consequently, a formal process of defining Key Performance Indicators (KPI’s) and setting targets against
the KPI’s has not been adopted at the present time.
The proportion of fixed remuneration and variable remuneration is established for each Executive by the Board.
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration, which is both appropriate to the position and
is competitive in the market. Fixed remuneration is reviewed annually by the Board; having regard to the Company and individual
performance, relevant comparable remuneration in the industry sector and, where appropriate, external advice. Executives receive
their fixed remuneration in cash.
Variable Remuneration – Short-Term Incentive (STI)
The objective of the STI is to link the achievement of corporate and operational objectives over the year with the remuneration
received by the Executives charged with achieving that increase. The total potential STI available is set at a level so as to provide
sufficient incentive to the Executives to achieve the performance goals and such that the cost to the company is reasonable in the
circumstances.
Annual STI payments granted to each Executive depend on their performance over the preceding year and are based on
recommendations from the Managing Director and/or the Chairman following collaboration with the Board. Typically included are
measures such as contribution to strategic initiatives, risk management and leadership/team contribution.
The aggregate of annual STI payments available for Executives across the company is subject to the approval of the Board.
Payments are usually delivered as a cash bonus.
Variable Remuneration – Long-Term Incentive (LTI)
The objective of the LTI plan is to reward Executives in a manner, which aligns the element of remuneration with the creation of
shareholder wealth. As such LTI’s are made to Executives who are able to influence the generation of shareholder wealth and
thus have an impact on the company’s performance.
The level of LTI granted is, in turn, dependent on a number of factors including, the seniority of the Executive and the
responsibilities the Executive assumes in the company.
LTI grants to Executives are typically delivered in the form of options, performance rights or loan shares. These options,
performance rights or loan shares are issued at an exercise price determined by the Board at the time of issue.
However, under certain circumstances, including breach of employment conditions, the Directors may cause the options to expire
prior to their vesting date. In addition, individual performance is more commonly rewarded over time by STIs.
No LTI options were issued during the financial year.
Company performance, shareholder wealth and Director and executive remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and executives. Options
issued to Directors have an exercise price higher than the current share price of the Company.
The table below shows the performance of the Company for the five years to 30 June 2022:
2022
2021
2020
2019
2018
Net profit / (loss)
(2,673,599)
(1,509,332)
($2,525,453)
($1,907,036)
($1,660,843)
Revenue
9,801,575
3,983,603
1,228,165
443,504
312,068
Earnings per share
Share price at year end
(0.39)
$0.24
(0.23)
$0.49
(0.45)
$0.040
(0.37)
(0.41)
$0.046
$0.043
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Employment Details of Members of Key Management Personnel
The following table provides employment details of persons who were, during the financial year, members of key management
personnel of the Company. The table also illustrates the proportion of remuneration that was performance and non-performance
based and the proportion of remuneration received in the form of options, rights or loan shares.
Position
Contract details
Proportions of elements of remuneration
Proportions of elements of remuneration not
(duration and
termination)
related to performance
related to performance
Non-salary
cash-based
Shares/
Options/
Fixed Salary/
Employee loan
incentives
Units
Rights
Fees
Shares
Total
%
%
%
%
%
%
Key
Management
Personnel
Ian Olson
Managing
Ongoing commencing 30
-
Director
June 2016. 6 months’
notice to terminate.
Neville Bassett Chairman
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
Paul Farrell
Director
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
Randy Rhoads Chief Operating
Employment agreement in
-
Officer
place. 1 month’s written
notice to terminate by
Company, 3 months by
employee. If employment
is terminated by the
Company with notice,
employee is entitled to
severance payment of 6-
months base salary,
including the notice period.
Mark Morrison Chief Technology
Employment agreement in
-
Officer
place. 4 weeks written
notice to terminate by
Company, 1 month by
employee.
David Lowe
Chief Revenue
Employment agreement in
-
Officer
place. 4 weeks written
notice to terminate by
Company, 1 month by
employee.
-
-
-
-
-
-
-
-
100
100
-
-
100
100
-
100
-
100
-
100
-
100
-
100
-
100
-
100
-
100
16
Pointerra Limited ABN 39 078 388 155
7
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Details of remuneration for the year ended 30 June 2022
Name
Short-term benefits
Post-employment
benefits
Share-
based
payments
Share-
based
payments
Employee
service
entitlements
Total
Performance
related
Non-
cash
benefit Superannuation Options
$
$
Cash
salary, fees &
commission
$
36,000
411,000
36,000
346,276
200,000
220,000
1,249,276
Paul Farrell
Ian Olson (1)
Neville
Bassett
Randy Rhoads
Mark Morrison
David Lowe
-
-
-
-
-
-
-
-
37,500
-
20,055
20,000
22,000
99,555
Employee
loan
Shares
$
Long
service
leave
-
-
-
-
-
-
-
-
43,755
-
-
25,669
-
69,424
$
36,000
492,255
36,000
366,331
245,669
242,000
1,418,255
%
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
(1) Includes directors fees of $36,000 for the full financial year ended 30 June 2022.
Details of remuneration for the year ended 30 June 2021
Name
Short-term benefits
Post-employment
benefits
Share-based
payments
Share-based
payments
Total
Performance
related
Cash
salary, fees &
commission
$
36,000
455,000
36,000
346,405
170,000
263,608
1,307,013
Non-
cash
benefit
$
Superannuation
$
-
-
-
-
-
-
-
-
26,125
-
23,467
16,150
15,675
81,147
Paul Farrell
Ian Olson (2)
Neville
Bassett
Randy Rhoads (1)
Mark Morrison (1)
David Lowe (1)
Options
$
-
-
-
-
-
-
-
Employee loan
Shares
$
-
-
-
-
-
-
-
$
36,000
481,125
36,000
369,872
186,150
279,283
1,388,430
%
-
-
-
21%
-
35%
-
(1) During the year the Board determined that existing employees Mr Rhoads (Chief Operating Officer), Mr Morrison (Chief
Technology Officer) and Mr Lowe (Chief Revenue Officer) would form part of the key management personnel of the
Group.
(2) Included in the salary of Mr Olson was a one-off cash bonus of $144,000
Pointerra Limited ABN 39 078 388 155
8
17
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Ordinary Shares Held by Key Management Personnel – 30 June 2022
Key Management
Person
Paul Farrell
Ian Olson (1)
Neville Bassett
Randy Rhoads
Mark Morrison
David Lowe
Balance
at beginning of
year
3,000,000
42,814,889
4,732,266
8,000,000
20,409,452
-
78,956,607
Granted as
remuneration
during year
-
-
-
-
-
-
-
Issued on
exercise of
options
during year
-
-
-
-
-
-
-
Other changes
during the year
-
-
-
-
-
-
-
Balance
at end of year
3,000,000
42,814,889
4,732,266
8,000,000
20,409,452
-
78,956,607
(1) 33,960,950 ordinary shares of the 42,814,889 held at 1 July 2021, were held by Mr Olson’s spouse. This did not
change as at the reporting date 30 June 2022.
Ordinary Shares Held by Key Management Personnel – 30 June 2021
Key Management
Person
Paul Farrell
Ian Olson (2)
Neville Bassett
Randy Rhoads (1)
Balance
at beginning of
year
3,000,000
47,514,889
4,732,266
9,000,000
Mark Morrison (1)
24,010,778
David Lowe (1)
-
88,257,933
Granted as
remuneration
during year
-
-
-
-
-
-
-
Issued on
exercise of
options
during year
-
-
-
-
-
-
-
Other changes
during the year
-
Balance
at end of year
3,000,000
(4,700,000)
42,814,889
-
(1,000,000)
(3,601,326)
-
4,732,266
8,000,000
20,409,452
-
(9,301,326)
78,956,607
(1) During the year the Board determined that existing employees Mr Rhoads (Chief Operating Officer), Mr Morrison
(Chief Research Officer) and Mr Lowe (Chief Technical Officer) would form part of the key management personnel
of the Group.
(2) 37,960,950 ordinary shares of the 47,514,889 ordinary shares, held at 1 July 2020, were held by Mr Olson’s spouse.
As at the reporting date 30 June 2021, 33,960,950 ordinary shares of the 42,814,889 were held by Mr Olson’s spouse.
Options Held by Key Management Personnel – 30 June 2022
Key Management
Person
Ian Olson
Neville Bassett
Paul Farrell
Balance
at beginning of
year
Granted as
remuneration
during year
Issued on
exercise of
options during
year
-
-
-
-
-
-
-
-
-
-
-
-
Other changes
during the year
-
Balance
at end of year
-
Vested and
exercisable
at end of year
-
-
-
-
-
-
-
-
-
-
Options Held by Key Management Personnel – 30 June 2021
Key Management
Person
Ian Olson
Neville Bassett
Paul Farrell
Balance
at beginning of
year
Granted as
remuneration
during year
Issued on
exercise of
options during
year
-
-
-
-
-
-
-
-
-
-
-
-
Other changes
during the year
-
Balance
at end of year
-
Vested and
exercisable
at end of year
-
-
-
-
-
-
-
-
-
-
18
Pointerra Limited ABN 39 078 388 155
9
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Employee loan shares – 30 June 2022
The limited recourse loan provided under the Plan to Mr Farrell, Mr Olson and Mr Bassett as outlined below, remain outstanding,
in full at the reporting date. The Company will maintain a lien over the Shares in respect of which a loan is outstanding.
Employee loan shares – 30 June 2021
The limited recourse loan provided under the Plan to Mr Farrell, Mr Olson and Mr Bassett as outlined below, remain outstanding,
in full at the reporting date. The Company will maintain a lien over the Shares in respect of which a loan is outstanding.
Key Management Personnel
Participant
Number
issued
Grant
date
Share
price at
date of
issue
Exercise
price
Vesting
condition
Expected
Volatility
Date of
expiry
Risk
free
interest
rate
Value
per loan
share
Valuation
Paul Farrell
3,000,000
07.05.20
$0.032
Ian Olson
10,000,000
07.05.20
$0.032
$0.060
$0.060
Neville
Bassett
3,000,000
07.05.20
$0.032
$0.060
Nil
Nil
Nil
89.75%
89.75%
30.04.25
0.41%
$0.0186
$55,908
30.04.25
0.41%
$0.0186
$186,359
89.75%
30.04.25
0.41%
$0.0186
$55,908
Total
16,000,000
Vesting conditions
$298,175
The key terms of the Employee Share Plan (ESP) and of each limited recourse loan provided under the Plan are as follows:
-
-
-
-
-
-
-
-
The loan will be interest free;
The loan made available to a Participant shall be applied by the Company directly toward payment of the issue price of the
Shares;
The loan repayment date is five years from the date of issue;
A Participant must repay the Loan in full by the loan repayment date but may elect to repay the Loan amount in respect of
any or all of the Shares at any time prior to the loan repayment date;
The Company shall have a lien over the Shares in respect of which a Loan is outstanding and the Company shall be entitled
to sell those Shares in accordance with the terms of the ISP;
A loan will be non-recourse except against the Shares held by the Participant to which the loan relates;
The Board may, in its absolute discretion, agree to forgive a Loan made to a Participant; and
The total loan will be $0.06 per Share which shall be deemed to have been drawn down at Settlement upon issue of the Loan
Shares.
Sale of Loan Shares
Shares may be subject to restriction conditions (such as a period of employment) which must be satisfied before the Shares can
be sold, transferred, or encumbered. Shares cannot be sold, transferred or encumbered until any loan in relation to the Shares
has been repaid or otherwise discharged under the ESP.
Related party transactions
No related party transactions were entered into during the year.
-End of Remuneration Report-
Pointerra Limited ABN 39 078 388 155
10
19
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Subsequent events
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect
the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
Non-audit services
No non-audit services were provided by the auditor during the year.
Explanation for differences between 4E and Annual Report
As indicated in the Company’s ‘Appendix 4E – Preliminary final report, for the year ended 30 June 2022’, and lodged on the ASX
platform on 31 August 2022, at the time of lodgement, the accounts were in the process of being audited. In the period following
lodgement of the 4E, a number of adjustments were processed. The following table provides a reconciliation between the
Company’s Appendix 4E and the Annual Report.
Consolidated statement of profit or loss
and other comprehensive income
&
Consolidated statement of financial
position
Loss before income tax for the year
Total Assets
Total Liabilities
Net Assets/Equity
Appendix 4E
$
3,388,105
7,636,898
(4,821,076)
2,815,822
Statutory
Adjustments
Financial Report
$
(Annual Report)
$
2,963,662
7,651,366
(4,362,330)
3,289,036
(424,443)
14,468
458,746
473,214
The adjustments indicated were general in nature and mainly related to an increase in R&D receivable and the reversal of
previously accrued balances.
20
Pointerra Limited ABN 39 078 388 155
11
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Report
Auditor’s Independence Declaration
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 has been received and
can be found directly following the directors’ report.
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors made pursuant to s.298(2) of the Corporations Act of 2001.
Ian Olson
Director
29 September 2022
Pointerra Limited ABN 39 078 388 155
21
12
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Auditor’s Independence Declaration
To the Board of Directors
AUDITOR’S
CORPORATIONS ACT 2001
INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
As lead audit director for the audit of the financial statements of Pointerra Limited for the financial year ended
30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully,
HALL CHADWICK WA AUDIT PTY LTD
D M BELL CA
Director
Dated this 29th day of September 2022
Perth, Western Australia
22
Pointerra Limited ABN 39 078 388 155
13
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Financial
Statements
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
23
23
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155 Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2022
Revenue
Other income
Cost of Services
Employee benefits expense
Administrative expenses
Advertising and marketing expenses
Compliance and regulatory expenses
Research and development expenses
Share based payment expenses
Impairment expense
Other expenses
Loss before income tax
Income tax benefit
Note
2022
$
2021
$
9,801,575
3,983,603
6
7
8
18
13
9
858,531
(910,837)
591,011
(312,155)
(4,997,620)
(2,779,106)
(1,084,310)
(346,454)
(222,080)
(567,764)
(17,046)
(423,735)
(1,463,001)
(1,462,279)
(1,302,448)
(235,723)
(1,360,434)
(1,715,274)
-
(507,448)
(2,963,662)
(1,509,332)
3
290,063
-
Loss after income tax for the year
(2,673,599)
(1,509,332)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations
17,285
36,836
Total comprehensive loss for the year attributable to members of the
Company
(2,656,314)
(1,472,496)
Earnings per share
Cents
Cents
Basic and diluted loss per share
15
(0.39)
(0.23)
The accompanying notes form part of these financial statements
24
Pointerra Limited ABN 39 078 388 155
14
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Consolidated Statement of Financial Position
as at 30 June 2022
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Intangible assets
Right of use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Deferred revenue
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease Liabilities
Provisions
Deferred tax liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2022
$
2021
$
10
11
12
13
26
14a
27
14b
14c
27
14c
3
3,596,423
3,501,614
8,340
5,179,363
1,051,698
12,765
7,106,377
6,243,826
182,704
77,669
284,616
204,034
1,584,332
332,711
544,989
2,121,077
7,651,366
8,364,903
2,231,547
1,710,531
64,263
85,228
1,287,491
1,134,275
406,619
229,273
3,989,920
3,159,307
284,318
88,092
-
372,410
304,951
-
311,916
616,867
4,362,330
3,776,174
3,289,036
4,588,729
16
17
13,836,745
13,782,572
3,830,716
2,510,983
(14,378,425)
(11,704,826)
3,289,036
4,588,729
The accompanying notes form part of these financial statements
Pointerra Limited ABN 39 078 388 155
15
25
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Consolidated Statement of Changes in Equity
for the year ended 30 June 2022
Note
Issued
Capital
$
Option
Reserves
Foreign exchange
reserve
Accumulated
Losses
$
$
$
Total
$
BALANCE AT 1 JULY 2020
9,175,895
2,255,037
(16,613)
(10,195,494)
1,218,825
Loss for the year
Other comprehensive income
Total comprehensive loss
for the year
Transactions with owners
recorded directly in equity
-
-
-
Shares issued
16
4,606,677
Share issue transaction costs
Share-based payments
18
-
-
-
-
-
-
-
235,723
-
(1,509,332)
(1,509,332)
36,836
-
36,836
36,836
(1,509,332)
(1,472,496)
-
-
-
-
-
-
4,606,677
-
235,723
BALANCE AT 30 JUNE 2021
13,782,572
2,490,760
20,223
(11,704,826)
4,588,729
BALANCE AT 1 JULY 2021
13,782,572
2,490,760
20,223
(11,704,826)
4,588,729
Loss for the year
Other comprehensive income
Total comprehensive loss
for the year
Transactions with owners
recorded directly in equity
Cash receipt from employee
loan share participants
-
-
-
16
54,173
Share issue transaction costs
Share-based payments
18
-
-
-
-
-
-
-
1,302,448
-
(2,673,599)
(2,673,599)
17,285
-
17,285
17,285
(2,673,599)
(2,656,314)
-
-
-
-
-
-
54,173
-
1,302,448
BALANCE AT 30 JUNE 2022
13,836,745
3,793,208
37,508
(14,378,425)
3,289,036
The accompanying notes form part of these financial statements
26
Pointerra Limited ABN 39 078 388 155
16
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Consolidated Statement of Cash Flows
for the year ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest and other costs of finance paid
Interest received
Government grants and tax incentives
Note
2022
$
2021
$
7,753,581
4,069,794
(9,908,200)
(4,885,089)
(56,177)
(30,379)
-
1,146
618,371
590,258
Net cash used in operating activities
22(b)
(1,592,425)
(254,270)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire property, plant and equipment
Payments to acquire intangible and other assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Repayment of loan shares
Lease payments
Net cash (used in) / provided by financing activities
Net (decrease) / increase in cash held
Effect of movement in exchange rates on cash held
Cash and cash equivalents at beginning of the period
(74,032)
(108,425)
(36,527)
(28,605)
(110,559)
(137,030)
-
3,300,000
54,173
-
(61,586)
(59,218)
(7,413)
3,240,782
(1,710,397)
2,849,482
127,457
(6,992)
5,179,363
2,336,873
Cash and Cash Equivalents at the end of the period
22(a)
3,596,423
5,179,363
The accompanying notes form part of these financial statements
Pointerra Limited ABN 39 078 388 155
17
27
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Pointerra Limited is a for-profit company limited by shares incorporated in Australia whose shares are publicly traded on the ASX.
The registered office is:
C/- Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000
The principal place of business is:
Level 2, 27 Railway Road, Subiaco WA 6008
The financial report for the year ended 30 June 2022 was authorised for issue in accordance with a resolution of the Directors on
29 September 2022.
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The 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. The consolidated financial statements also comply with International Financial Reporting Standards
(IFRS) adopted by the International Accounting Standards Board (IASB).
The consolidated financial statements comprise the financial statements of Pointerra Limited and its subsidiaries at the reporting
date (the “Group”).
The consolidated financial statements have been prepared on an accruals basis and are measured at historical cost, except for
assets and liabilities acquired in business combinations, which are initially measured at fair value. All amounts are presented in
Australian dollars.
Accounting policies have been consistently applied, unless otherwise stated.
Basis of consolidation
Subsidiaries are fully consolidated from the date the Group obtains control until such time as control ceases. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent
accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses arising from intra-group transactions are eliminated in full.
Going Concern
The consolidated financial statements have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and settlements of liabilities in the ordinary course of business.
As at 30 June 2022, the Group had cash and cash equivalents of $3,596,423 (2021: $5,179,363) and had a working capital
surplus of $3,116,457 (2021: $3,084,519). The Group incurred a loss after tax of $2,673,599 for the year ended 30 June 2022
(2021: $1,509,332) and net cash outflows from operating activities amounting to $1,592,425 (2021: $254,270). Included in the
loss for the year were non-cash items including share based payments of $1,302,448, impairment expense of $1,360,434, and
depreciation and amortisation expense of $326,539.
The Directors have prepared a cash flow forecast which indicates that the Group will have sufficient cash flows to meet all
commitments and working capital requirements for the 12 month period from the date of signing this financial report. The
Directors believe it is appropriate to prepare these accounts on a going concern basis because of the following factors:
•
•
the Directors have an appropriate plan to grow revenue and generate positive cash flows from operations;
the Group has the ability to curtail discretionary expenditure as and when required in order to manage cash flows.
In the event the above is unable to be achieved the Company can raise capital as and when required. Based on the cashflow
forecast and other factors referred to above, the Directors are satisfied that the going concern basis of preparation is
appropriate.
28
Pointerra Limited ABN 39 078 388 155
18
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of consolidation
Subsidiaries are fully consolidated from the date the Group obtains control until such time as control ceases. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent
accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses arising from intra-group transactions are eliminated in full.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method involves
recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-
controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition
date fair values. The difference between the above items and the fair value of the consideration (including the fair value of any
pre-existing investment in the acquiree) is goodwill or a discount on acquisition.
Investments in subsidiaries are accounted for at cost in the separate financial statements of Pointerra Limited.
Income tax
The income tax expense / (benefit) for the year comprises current income tax expense / (income) and deferred tax expense /
(income).
Current income tax expense charged to profit or loss is the tax payable on taxable income calculated using applicable income
tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities / (assets) are therefore measured at the
amounts expected to be paid to / (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year and
unused tax losses.
Current and deferred income tax expense / (benefit) is charged or credited directly to equity instead of profit or loss when the tax
relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully
expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an
asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also
reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred
tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it
is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are
offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by
the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant
amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Tax consolidation legislation
Pointerra Limited and its wholly-owned Australian subsidiary have not implemented tax consolidation legislation.
Plant and equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any
accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable
amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are
recognised either in the profit and loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal
assessment of recoverable amount is made when impairment indicators are present.
Pointerra Limited ABN 39 078 388 155
19
29
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are
incurred.
Intangibles
Other intangible assets, including customer relationships, patents and trademarks, that are acquired by the Group and have
finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit
or loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line
method over their estimated useful lives, and is generally recognised in profit or loss. Goodwill is not amortised.
The estimated useful lives for current and comparative periods are as follows:
– patents and trademarks:
5–20 years
Financial Instruments
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to
the contractual provisions of the instrument.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair
value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are
expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.
Classification and subsequent measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants. The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the assets or liability, assuming the market participants acts in their economic best interests.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial instruments.
(i)
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to mature within 12
months after the end of the reporting period. (All other loans and receivables are classified as non-current assets.)
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains
or losses are recognised in profit and loss through the amortisation process and when the financial liability is
derecognised.
Derivative instruments
The Group does not trade or hold derivatives.
Financial guarantees
The Group has no material financial guarantees.
Impairment of assets
At the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources of information including dividends received from
subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, to the asset’s carrying value. Any excess of the asset’s carrying value over its
recoverable amount is expensed to the statement of comprehensive income.
30
Pointerra Limited ABN 39 078 388 155
20
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within twelve
months after the end of the period in which the employees render the related service are recognised in respect of employees’
services up to the end of the reporting date and are measured at the amounts expected to be paid when the liabilities are
settled. The liability for annual leave is recognised in the provision for employee benefits. No liabilities are recognised for non-
accumulating sick leave.
The liability for long service leave and other employee entitlements expected to be settled more than 12 months from the
reporting date is recognised and measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures, and years of service. Expected future payments are discounted
using market yields at the reporting date on corporate bonds with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows.
Contributions to defined contribution superannuation funds are recognised as an expense as they become payable.
Foreign currency translation
Functional and presentation currency
The financial report is presented in Australian dollars, which is the Company’s functional currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at
historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair
value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in
equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to
the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange difference is
recognised in profit or loss.
Share-based payment transactions
The Company measures the cost of equity-settled transactions with Directors and employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-
Scholes and Monte Carlo option pricing model.
For equity transactions with consultants and other employees, the fair value reflects the value attributable to services where
applicable. Where there is no quantifiable value of services, the value of options is calculated using the Black-Scholes and
Monte Carlo option pricing model, or the quoted bid price where applicable.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in
current liabilities on the balance sheet.
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 thirty days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within twelve months from the reporting date. They are
recognised at their fair value and subsequently measured at amortised cost using the effective interest method.
Issued capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction net of tax of the share proceeds received.
Pointerra Limited ABN 39 078 388 155
21
31
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for any bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
•
•
the after-tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and
the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of
all dilutive potential ordinary shares.
Revenue and other income
Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts
and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of
interest that is generally accepted in the market for similar arrangements. The difference between the amount initially
recognised and the amount ultimately received is interest revenue.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown
inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Comparatives
When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
Critical accounting estimates and judgments
The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Company.
Key Estimate – Share-based payments
The Company measures the cost of equity-settled transactions with Directors and employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined using the Black-Scholes and Monte
Carlo model using the assumptions disclosed in Note 18. The accounting estimates and assumptions relating to equity settled
share-based payments would have no impact on assets and liabilities within the next reporting period but may impact expenses
and equity.
Key Judgement – 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 Group, based on known information. This consideration extends to the nature of the supply chain, staffing and geographic
regions in which the Group operates. 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 Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
New Accounting Standards and Interpretations
There are no Australian accounting standards and Interpretations that have recently been issued or amended but are not yet
effective and have not been adopted by the Company for the year ended 30 June 2022 which are expected to have a material
impact on the Company in future reporting period.
32
Pointerra Limited ABN 39 078 388 155
22
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 3.
INCOME TAX
(a) The components of tax expense comprise:
Current
Deferred
Income tax expense
(b) Reconciliation of income tax expense to prima facie tax payable
The prima facie tax on profit from ordinary activities before income tax is
reconciled to income tax expense as follows:
Prima facie tax on operating loss at 25% (2021: 26%)
Add / (Less):
Tax effect of:
Non-assessable income
Research & Development refundable offset
Other permanent differences
Deferred tax assets not brought to account
Income tax expense/(benefit)
(c) Deferred tax assets
Accrued expenses
Capital raising costs
Tax losses
Total deferred tax assets
Set-off deferred tax liabilities pursuant to set-off provisions
Less deferred tax assets not recognised
Net deferred tax assets
(d) Deferred tax liabilities
Acquisition (Note 28)
Other
Set-off deferred tax liabilities
Net deferred tax liabilities
(e) Tax losses
Unused tax losses for which no deferred tax asset has been recognised
2022
2021
$
-
-
-
$
-
-
-
(740,916)
(392,426)
-
(336,998)
349,393
438,458
(290,063)
243,893
367,702
1,124,020
1,735,615
(58,274)
(153,366)
(255,899)
65,658
736,033
-
248,051
382,410
950,687
1,581,148
(66,020)
(1,677,341)
(1,515,128)
-
-
58,274
(58,274)
-
-
-
311,916
66,020
(66,020)
311,916
-
Potential tax benefit @ 25% (2021: 26%)
1,124,020
1,515,128
The benefit for tax losses will only be obtained if:
i.
ii.
iii.
The company and group derive future assessable income of a nature and an amount sufficient to enable the benefit from the
deductions for the losses to be realised;
The company and group continue to comply with the conditions for deductibility imposed by law; and
No changes to the tax legislation adversely affect the ability of the company and group to realise these benefits.
Pointerra Limited ABN 39 078 388 155
23
33
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 4. AUDITOR’S REMUNERATION
Remuneration of the auditor for:
- Auditing or reviewing the financial report
2022
$
42,871
42,871
2021
$
31,328
31,328
NOTE 5. KEY MANAGEMENT PERSONNEL COMPENSATION AND RELATED PARTY TRANSACTIONS
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Long service leave entitlement
NOTE 6. OTHER INCOME
Research and development refundable tax offset
Cashflow Boost
Interest Income
NOTE 7. ADMINISTRATIVE EXPENSES
Accounting and audit fees
Consulting and contracting expenses
Director fees
NOTE 8. RESEARCH AND DEVELOPMENT EXPENSES
Employee benefits expense
Other research and development expenses
NOTE 9. OTHER EXPENSES
Depreciation and amortisation expense
Legal fees
Bad debts
Travel expenses
General operating expenses
1,249,276
1,307,013
99,555
69,424
81,417
-
1,418,255
1,388,430
858,531
-
-
858,531
552,366
37,500
1,145
591,011
(186,055)
(790,255)
(108,000)
(1,084,310)
(177,454)
(25,000)
(144,000)
(346,454)
(776,218)
(686,783)
(1,077,916)
(384,363)
(1,463,001)
(1,462,279)
(326,539)
(17,900)
(437,497)
(474,724)
(458,614)
(124,005)
(39,329)
-
-
(344,114)
(1,715,274)
(507,448)
34
Pointerra Limited ABN 39 078 388 155
24
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 10. CASH AND CASH EQUIVALENTS
Cash at bank
Deposits on call
NOTE 11. TRADE AND OTHER RECEIVABLES
Trade receivables
R&D tax offset receivable
GST receivable
2022
2021
$
3,546,423
50,000
$
5,129,363
50,000
3,596,423
5,179,363
2,704,417
792,401
4,796
533,343
552,367
(34,012)
3,501,614
1,051,698
Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting
period for which the Group has not recognised an allowance for doubtful debts because there has not been a significant
change in credit quality and the amounts are still considered recoverable.
Age of receivables that are past due but not impaired
60-90 days
91-120 days
121+ days
Total
21,470
13,250
1,783
36,503
-
2,662
247,344
250,006
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is
limited due to the fact that the customer base is unrelated.
NOTE 12. PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Movement in the carrying amounts or plant and equipment during the year:
Balance at beginning of year
Additions (1)
Depreciation expense
Balance at end of year
430,714
(248,010)
182,704
353,582
(149,548)
204,034
204,034
77,131
(98,461)
182,704
82,411
171,849
(50,226)
204,034
(1) For the year ended 30 June 2021, $107,000 of the $171,849 related to the Airovant acquisition (Note 28).
Pointerra Limited ABN 39 078 388 155
25
35
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 13. INTANGIBLE ASSETS
At cost
Accumulated amortisation
Movement in the carrying amounts or intangible assets during the year:
Balance at beginning of year
Additions (1)
Amortisation expense
Impairment expense (1)
Balance at end of year
2022
$
206,811
(129,142)
2021
$
1,681,455
(97,123)
77,669
1,584,332
1,584,332
36,950
(183,179)
(1,360,434)
74,501
1,534,891
(25,060)
-
77,669
1,584,332
Intangible assets consist of patents, website development costs, intellectual property and customer relationships.
(1) The Company acquired US-drone based digital asset management business, Airovant LLC (“Airovant”) on 4 June 2021.
$1,511,593 relates to intellectual property and customer relationships. The Business Combination was provisionally
accounted for at the prior year reporting date and was subsequently impaired in full during the current reporting period,
resulting in a $Nil balance being recorded against Airovant at the 30 June 2022 reporting date (Note 28).
NOTE 14. TRADE AND OTHER PAYABLES, DEFERRED REVENUE AND PROVISIONS
(a) TRADE AND OTHER PAYABLES
CURRENT
Trade Payables
Sundry creditors and accrued expense
All amounts are unsecured and expected to be settled on 30-day terms.
(b) DEFERRED REVENUE
CURRENT
Deferred Revenue
(c) PROVISIONS
CURRENT
Annual Leave
Other
NON-CURRENT
Long Service Leave
705,685
1,525,862
2,231,547
582,283
1,128,248
1,710,531
1,287,491
1,287,491
1,134,275
1,134,275
399,421
7,198
406,619
88,092
88,092
229,273
-
229,273
-
-
36
Pointerra Limited ABN 39 078 388 155
26
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 15. EARNINGS PER SHARE
Earnings used in calculating basic loss per share
(2,673,599)
(1,509,332)
Weighted average number of ordinary shares used as the denominator in calculating
basic loss per share
677,806,204
669,246,504
No.
No.
This calculation does not include instruments that could potentially dilute basic earnings per share in the future, as these
instruments are anti-dilutive, since their inclusion would reduce the loss per share.
NOTE 16. ISSUED CAPITAL
677,806,204 (2021: 677,806,204) fully paid ordinary shares
Capital raising fees
Cash receipt from employee loan share participants at $0.06
Net issued capital
Movements:
As at 30 June 2020
Share placement: 14 July 2021
Option exercise at $0.05 (3DPAF): 24 July 2020
Option exercise at $0.06 (3DPAF): 10 August 2020
Option exercise at $0.05 (3DPAF): 01 September 2020
Option exercise at $0.06 (3DPAF): 03 September 2020
Option exercise at $0.05 (3DPAF): 22 September 2020
Option exercise at $0.06 (3DPAF): 22 September 2020
Option exercise at $0.09 (3DPAF): 22 September 2020
Option exercise at $0.06 (3DPAF): 15 February 2021
Option exercise at $0.06 (3DPAF): 17 March 2021
Option exercise at $0.09 (3DPAF): 17 March 2021
Acquisition of Airovant (Note 28)
As at 30 June 2021
2022
$
2021
$
13,782,572
15,050,803
-
(1,268,231)
54,173
-
13,836,745
13,782,572
$
No.
9,175,895
613,223,112
2,500,000
50,000,000
75,000
148,200
115,000
30,000
10,000
14,700
26,550
3,000
44,100
333,450
1,306,677
1,500,000
2,470,000
2,300,000
500,000
200,000
245,000
295,000
50,000
735,000
3,705,000
2,583,092
13,782,572
677,806,204
Employee loan share repayment at $0.06 per share
54,173
-
As at 30 June 2022
13,836,745
677,806,204
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of
shares held.
At the shareholders’ meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
Year ended 30 June 2022
During the reporting period, two participants holding employee loan shares re-paid a total $54,173 cash to the Company at
$0.06 per ordinary share.
Pointerra Limited ABN 39 078 388 155
27
37
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 16. ISSUED CAPITAL (continued)
Year ended 30 June 2021
On 14 July 2020, the Company announced that Australian tech entrepreneur Bevan Slattery had invested $2.5million in the
Company via the placement of 50 million shares at $0.05 per share. Funds to be used to accelerate the Company’s global
expansion.
The Company acquired US-drone based digital asset management business, Airovant LLC (“Airovant”) on 4 June 2021 (Note
28). Total purchase consideration was USD$1million. Pursuant to the Business and Assets Sale Agreement, the Company
resolved to issue to Airovant 2,583,092 fully paid ordinary shares in the Company in exchange for acquiring the business assets
and undertakings of Airovant. The number of shares issued to Airovant was calculated based on the closing price of Pointerra
shares and the AUD/USD exchange rate on 4 June 2021. 1,292,546 shares are subject to voluntary escrow for a period of 12
months from the date of issue.
Options
As at the reporting date, no options over unissued ordinary shares were outstanding.
Capital Management
The Directors' objectives when managing capital are to ensure that the Company can fund its operations and continue as a
going concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company's activities, the Company does not have ready access to credit facilities, with the primary
source of funding being equity raisings. Therefore, the focus of the Company's capital risk management is the current working
capital position against the requirements of the Company to meet business development and corporate overheads. The
Company's strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to
initiating appropriate capital raisings as required.
NOTE 17. RESERVES
Option Reserves
Balance at beginning of year
Employee loan shares vesting over multiple periods
Performance rights forfeited during the period
Performance rights vesting over multiple periods
Balance at end of year
Foreign Exchange Reserves
Balance at beginning of year
Foreign currency translation difference
Balance at end of year
2022
$
2021
$
2,490,760
2,255,037
52,612
(385,671)
1,635,507
3,793,208
52,612
-
183,111
2,490,760
20,223
17,285
37,508
(16,613)
36,836
20,223
38
Pointerra Limited ABN 39 078 388 155
28
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 18. SHARE-BASED PAYMENTS
(a) Options outstanding at end of year
The following table illustrates the number and weighted average exercise prices (WAEP) of share options granted as share-
based payments on issue during the year.
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
2022
Number
-
2022 WAEP
$
-
-
-
-
-
-
-
-
-
-
-
2021
Number
17,000,000
-
-
(12,000,000)
(5,000,000)
-
2021 WAEP
$
0.07
-
-
0.067
0.05
-
The weighted average remaining contractual life for options outstanding as at 30 June 2022 was Nil (2021: Nil).
(b) Share-based Payments summary
Class
Quantity
recognised
during year
Value
Forfeited during
the year
Expiry date
Exercise
Vesting
price
date
Value
recognised in
future years
2021
Tranche 1
Performance Rights 2,666,668
114,444
Tranche 2
Performance Rights 2,666,666
45,778
Tranche 3
Performance Rights 2,666,666
22,889
Total
8,000,0000
183,111
Loan Shares
7,000,000
52,612
Total
235,723
Performance rights grant date: 1 June 2021
Loan shares grant date: 7 May 2020
2022
Tranche 1
-
-
-
-
-
-
31/05/2024
N/a
31/05/2022
1,258,890
31/05/2024
N/a
31/05/2023
1,052,889
31/05/2024
N/a
31/05/2024
801,110
3,112,889
06/05/2025
0.06
Note 1
70,054
3,182,943
Performance Rights 2,666,668
1,115,833
(200,271)
31/05/2024
N/a
31/05/2022
-
Tranche 2
Performance Rights 2,666,666
369,370
(136,189)
31/05/2024
N/a
31/05/2023
236,042
Tranche 3
Performance Rights 2,666,666
150,304
(49,211)
31/05/2024
N/a
31/05/2024
219,351
Total
8,000,000
1,635,507
(385,671)
455,393
Loan Shares
7,000,000
52,612
-
06/05/2025
0.06
Note 1
17,443
Total
1,302,448
472,836
Performance rights grant date: 1 June 2021
Loan shares grant date: 7 May 2020
Pointerra Limited ABN 39 078 388 155
29
39
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 18. SHARE-BASED PAYMENTS (continued)
Note 1.
Vesting over multiple periods.
7million loan shares are subject to the following vesting conditions. Conditions shall cease to apply upon the holders remaining
continually employed by the Company throughout the vesting period:
- One-third on the first anniversary of commencement of employment;
- One-third on the second anniversary of commencement of employment; and
- One-third on the third anniversary of commencement of employment
The Company acquired US-drone based digital asset management business, Airovant LLC (“Airovant”) on 4 June 2021 (Note 28).
The Company has entered into employment agreements with the four Airovant founder employees. These employment
agreements include an offer made pursuant to the Company’s employee incentive share plan for the issue of 2 million ordinary
shares in the Company to each of the four Airovant employees (8 million shares in total), with the shares vesting in three equal
tranches of 666,667 shares over a three-year period on the anniversary of 1, 2 and 3 years continuous employment with the
Company.
As at 30 June 2021, the following probabilities were assigned.
Tranche 1: Assigned probability of 100% for satisfaction of vesting condition (1-year continuous employment with the Company).
Tranche 2: Assigned probability of 80% for satisfaction of vesting condition (2-years continuous employment with the Company).
Tranche 3: Assigned probability of 60% for satisfaction of vesting condition (3-years continuous employment with the Company).
Share price on grant date was $0.515.
As at 30 June 2022, the following probabilities were assigned.
Tranche 1: Vested during the year ended 30 June 2022 for any eligible participants.
Tranche 2: Updated assigned probability of 75% for satisfaction of vesting condition (2-years continuous employment with the
Company).
Tranche 3: Updated assigned probability of 50% for satisfaction of vesting condition (3-years continuous employment with the
Company).
At the reporting date, two of the four Airovant employees had resigned and were no long eligible participants of the Company.
Amounts previously expensed through the statement of profit and loss and other comprehensive income as share-based payments
applicable to these two employees were reversed during the reporting period ended 30 June 2022.
Employee loan shares
During the year ended 30 June 2020, remuneration in the form of Employee Loan Shares were issued to Key Management
Personnel and employees.
Key Management Personnel
Participant
Number
issued
Grant
date
Share
price at
date of
issue
Paul Farrell
3,000,000
07.05.20
$0.032
Ian Olson
10,000,000
07.05.20
$0.032
Exercise
price
$0.060
$0.060
Neville
Bassett
3,000,000
07.05.20
$0.032
$0.060
Vesting
condition
s
Expected
Volatility
Date of
expiry
Risk
free
interest
rate
Value
per loan
share
Valuation
Nil
Nil
Nil
89.75%
30.04.25
0.41%
$0.0186
$55,908
89.75%
30.04.25
0.41%
$0.0186
$186,350
89.75%
30.04.25
0.41%
$0.0186
$55,908
Total
16,000,000
$298,166
40
Pointerra Limited ABN 39 078 388 155
30
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 18. SHARE-BASED PAYMENTS (continued)
Employees
Participant
Number
issued
Grant
date
Share
price at
date of
issue
Exercise
price
Vesting
condition
s
Expected
Volatility
Date of
expiry
Risk
free
interest
rate
Value
per loan
share
Valuation
Employees
19,000,000
07.05.20
$0.032
$0.060
Nil
89.75%
30.04.25
0.41%
$0.0186
$354,082
Employees
Note 1
7,000,000
07.05.20
$0.032
$0.060
Note 1
89.75%
30.04.25
0.41%
$0.0186
$130,451
Total
26,000,000
$484,533
Note 1. 7 million loan shares are subject to the following vesting conditions. Conditions shall cease to apply upon the holders
remaining continually employed by the Company throughout the vesting period:
- One-third on the first anniversary of commencement of employment;
- One-third on the second anniversary of commencement of employment; and
- One-third on the third anniversary of commencement of employment – 29 October 2022.
The Loan Shares represent an option arrangement. Those with vesting conditions attached to the Loan Shares are expensed
over the vesting period.
Vesting conditions
The key terms of the Employee Share Plan and of each limited recourse loan provided under the Plan are as follows:
-
-
-
-
-
-
-
-
The loan is interest free;
The loan made available to a Participant shall be applied by the Company directly toward payment of the issue price of the
Shares;
The loan repayment date is 5 years from the date of issue;
A Participant must repay the Loan in full by the loan repayment date but may elect to repay the Loan amount in respect of
any or all of the Shares at any time prior to the loan repayment date;
The Company shall have a lien over the Shares in respect of which a Loan is outstanding and the Company shall be entitled
to sell those Shares in accordance with the terms of the ISP;
A Loan will be non-recourse except against the Shares held by the Participant to which the loan relates;
The Board may, in its absolute discretion, agree to forgive a Loan made to a Participant; and
The total loan will be $0.06 per Share which shall be deemed to have been drawn down at Settlement upon issue of the Loan
Shares
Sale of Loan Shares
Shares may be subject to restriction conditions (such as a period of employment) which must be satisfied before the Shares can
be sold, transferred, or encumbered. Shares cannot be sold, transferred or encumbered until any loan in relation to the Shares
has been repaid or otherwise discharged under the ISP.
NOTE 19. COMMITMENTS
The lease liability is now recognised in the balance sheet, in line with AASB 16. Refer to Note 27.
There are no other leasing or capital commitments for the year ended 30 June 2022 (2021: Nil).
NOTE 20. CONTINGENT LIABILITIES AND ASSETS
There are no contingent assets or liabilities.
Pointerra Limited ABN 39 078 388 155
31
41
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 21. OPERATING SEGMENTS
The Group has two reportable segments:
For the year ended 30 June 2022
Segment revenue
Segment expenditure
Segment result
Material expenditure items
Employee benefits expense
Impairment
Research and development expenses
Share based payments
Assets by geographical segment
Segment assets
Segment liabilities
Australia
$
United States
$
Adjustments/
Eliminations
$
Total
$
5,063,054
(6,954,096)
(1,891,042)
8,590,604
(8,150,705)
439,899
(2,993,552)
1,771,096
(1,222,456)
10,660,106
(13,333,705)
(2,673,599)
(2,212,584)
(1,360,434)
(1,394,114)
(1,302,448)
(2,785,036)
-
(68,887)
-
-
-
-
-
(4,997,620)
(1,360,434)
(1,463,001)
(1,302,448)
7,562,838
2,496,293
(2,407,765)
7,651,366
3,146,685
1,603,387
(387,742)
4,362,330
For the year ended 30 June 2021
Australia
$
United States United States
$
$
Total
$
Segment revenue
Segment expenditure
Segment result
Material expenditure items
1,645,994
(4,054,455)
(2,408,461)
2,928,620
(2,029,491)
899,129
-
-
-
4,574,614
(6,083,946)
(1,509,332)
Employee benefits expense
Research and development expenses
(1,082,315)
(1,462,279)
(1,696,791)
-
-
-
(2,779,106)
(1,462,279)
Assets by geographical segment
Segment assets
Segment liabilities
7,948,148
1,467,402
(1,050,647)
8,364,903
2,688,102
1,088,072
-
3,776,174
Information about major customers:
The Group has generated revenue from two of its largest customers of approximately $3 million (2021: $1.4 million). No other
single customers contributed 10% or more of the Group’s revenue for the year.
42
Pointerra Limited ABN 39 078 388 155
32
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 22. CASH FLOW INFORMATION
(a) Reconciliation of cash
2022
$
2021
$
Cash at the end of the financial year as shown in the Statement of Cash
Flows is reconciled to the related items in the balance sheet as follows:
Cash and cash equivalents
3,596,423
5,179,363
(b) Reconciliation of cash flow from operations with operating profit
after income tax
Operating loss after income tax
Non-cash flows in loss from ordinary activities
Depreciation and amortisation
Share-based payments
Foreign exchange
Changes in assets and liabilities
(2,673,599)
(1,509,332)
1,638,881
1,302,448
(68,728)
75,910
235,723
151,305
(Increase)/Decrease in trade and other receivables
(2,445,492)
(419,777)
(Increase)/Decrease in right to use assets
Increase/(Decrease) in trade and other payables
Increase/(Decrease) in Lease liabilities
Increase/(Decrease) in Deferred revenue
Increase/(Decrease) in Provisions
Increase/(Decrease) in Tax liabilities
Net Cash Used In Operating Activities
48,155
521,016
(20,965)
153,216
258,241
(305,598)
(1,592,425)
48,094
917,214
(37,244)
323,065
(39,228)
-
(254,270)
NOTE 23. EVENTS AFTER THE BALANCE SHEET DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect
the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
Pointerra Limited ABN 39 078 388 155
33
43
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 24. FINANCIAL INSTRUMENTS
(a) Financial Risk Management
The Company's financial instruments consist mainly of deposits with banks and accounts payable. The main purpose of
non-derivative financial instruments are to raise finance for company operations. The Company does not have any
derivative instruments at 30 June 2022 (30 June 2021: $Nil).
i.
Liquidity Risk
Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient
cash and marketable securities are available to meet the current and future commitments of the Company. Due to the
nature of the Company's activities, the Company does not have ready access to credit facilities, with the primary source of
funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction with the
Company's current and future funding requirements, with a view to initiating appropriate capital raisings as required. Any
surplus funds are invested with major financial institutions.
The financial liabilities of the Company are confined to trade and other payables and lease liabilities, as disclosed in the
statement of financial position. All trade and other payables are non-interest bearing and due within 12 months of the
reporting date. Lease liabilities are non-interest bearing and have fixed terms of repayment.
ii. Market Risk
The Board meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury management
strategies in the context of the most recent economic conditions and forecasts.
iii.
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period
whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
The Company is also exposed to earnings volatility on floating rate instruments. Interest rate risk is not material to the
Company as no debt arrangements have been entered into.
iv. Foreign exchange risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
44
Pointerra Limited ABN 39 078 388 155
34
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 24. FINANCIAL INSTRUMENTS (continued)
v. Credit Risk
Credit risk related to balances with banks and other financial institutions is managed by the Directors in accordance with
approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard &
Poor's rating of at least AA-. The following table provides information regarding the credit risk relating to cash and money
market securities based on Standard & Poor's counterparty credit ratings.
Cash and cash equivalents
- AA- Rated
(b) Interest Rate Risk
2022
$
3,596,423
2021
$
5,179,363
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rate for each class of financial assets and
financial liabilities comprises:
2021
Floating
interest rate
Fixed interest
Fixed interest
maturing in
maturing over
1 year or less
1 to 5 years
Non-interest
bearing
$
$
$
$
Total
$
Financial assets
Cash and cash equivalents
Trade and other receivables
Weighted average interest rate
Financial liabilities
Trade and other payables
Lease liability
5,179,363
-
5,179,363
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,064,463
5,179,363
1,064,463
1,064,463
6,243,826
1,710,531
390,179
1,710,531
390,179
2,100,710
2,100,710
2022
Floating
interest rate
Fixed interest
Fixed interest
maturing in
maturing over
1 year or less
1 to 5 years
Non-interest
bearing
$
$
$
$
Total
$
Financial assets
Cash and cash equivalents
Trade and other receivables
Weighted average interest rate
Financial liabilities
Trade and other payables
Lease liability
3,596,423
-
3,596,423
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,509,954
3,509,954
3,596,423
3,509,954
7,106,377
2,231,547
348,581
2,231,547
348,581
2,580,128
2,580,128
Pointerra Limited ABN 39 078 388 155
35
45
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 24. FINANCIAL INSTRUMENTS (continued)
Sensitivity Analysis
The sensitivity analysis below has been determined on the exposure to interest rates at the reporting date and on the
basis of the stipulated change taking place at the beginning of the year and held constant throughout the reporting
period. A sensitivity of 2.5% has been selected, as this is considered reasonable considering the current market
conditions (2021: 0.5%).
At 30 June 2022, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
profit/(loss) would have been affected as follows:
Profit/(loss) and equity
+ 2.5% (50 basis points) (2021: +0.5% (50 basis points))
- 2.5% (50 basis points) (2021 -0.5% (50 basis points))
2022
$
89,911
(89,911)
2021
$
25,897
(25,897)
Fair value estimation
The carrying amounts of financial assets and financial liabilities are equal to their fair value based on their short-term
nature. No financial assets or liabilities are required to be measured at their fair value on a recurring basis.
46
Pointerra Limited ABN 39 078 388 155
36
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 25. PARENT ENTITY INFORMATION
Pointerra Limited is the legal parent entity.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Total comprehensive loss
Legal subsidiaries
2022
$
2,519,901
3,573,175
6,093,076
2,431,630
372,410
2,804,040
3,289,036
2021
$
4,206,018
3,082,191
7,288,209
(2,082,279)
(616,867)
(2,699,146)
4,589,063
19,400,598
19,346,425
3,793,208
2,509,675
(19,904,770)
(17,267,037)
3,289,036
4,589,063
(2,656,314)
(1,472,163)
Name
Country of
Incorporation
Class of share
Pointerra
Australia
Ordinary
% Equity interest
% Equity interest
2021
100%
2020
100%
Technologies Pty
Ltd(i)
Principal activities
Provision of 3D
digital asset
management
solutions
Pointerra US, Inc(ii) United States of
Ordinary
100%
100%
Provision of 3D
America
i.
ii.
Acquired 30 June 2016
Incorporated 18 January 2018
digital asset
management
solutions
Pointerra Limited ABN 39 078 388 155
37
47
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 26. RIGHT TO USE ASSETS
The Group’s lease portfolio includes buildings, plant and equipment. These leases have an average of 3 years as their lease
term.
i) AASB 16 related amounts recognised in the balance sheet
Right of use assets
Leased Building
Accumulated depreciation
Total Right of use asset
Movement in carrying amounts:
Leased Buildings:
Opening balance
Depreciation expense
Net carrying amount
ii) AASB 16 related amounts recognised in the statement of profit or loss
Depreciation charge related to right-of-use assets
Interest expense on lease liabilities
Total cash outflows for leases
NOTE 27. LEASES
Current
Non-current
2022
$
429,032
(144,416)
284,616
2021
$
429,032
(96,321)
332,711
332,711
(48,095)
284,616
380,805
(48,094)
332,711
2022
$
48,095
20,193
68,288
2022
$
64,263
284,318
348,581
2021
$
48,094
22,171
59,218
2021
$
85,228
304,951
390,179
48
Pointerra Limited ABN 39 078 388 155
38
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Notes to the Financial Statements
for the year ended 30 June 2022 (continued)
NOTE 28. ACQUISITION
On 4 June 2021 (prior year), the Company purchased the business assets and undertakings of US drone-based digital asset
management business, Airovant LLC (“Airovant”). Pursuant to the Business and Assets Sale Agreement (“the Agreement”), the
consideration was USD$1 million which was agreed to be issued in shares using the closing price on execution of the
Agreement. The net assets acquired have been impaired in full at the reporting date, 30 June 2022.
For the year ended 30 June 2021
Details of the purchase consideration, and the net assets acquired, as recorded in the prior year were as follows:
Consideration 2,583,092 ordinary shares
Plant and equipment
Intangible assets (intellectual property and customer
relationships) (Note 13)
Deferred tax liability
Net Assets acquired
No goodwill was recognised upon acquisition of the business.
For the year ended 30 June 2022
$
1,306,677
107,000
1,511,593
(311,916)
1,306,667
The Airovant acquisition and the net assets acquired, in addition to any costs capitalised during the period were impaired in full.
An impairment expense of $1,360,434 has been recognised in the statement of profit or loss and other comprehensive income
for the year ended 30 June 2022.
Pointerra Limited ABN 39 078 388 155
39
49
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Directors’ Declaration
The directors of the Group, declare that:
(1) the financial statements, notes and additional disclosures included in the directors’ report designated as audited,
of the Group are in accordance with the Corporations Act 2001, including;
(a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(b) giving a true and fair view of the Company’s and Group’s financial position as at 30 June 2022 and of their
performance for the year ended on that date.
(2) The financial report also complies with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in Note 1 to the financial report.
(3) 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.
(4) This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended to 30 June 2022.
This declaration is made in accordance with a resolution of the Board of Directors of Pointerra Limited.
Ian Olson
Director
29 September 2022
50
Pointerra Limited ABN 39 078 388 155
40
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Independent Auditor’s Report
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POINTERRA LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Pointerra Limited (“the Company”) and its subsidiaries (“the
Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2022,
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 statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2022 and
of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
2.
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 Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Pointerra Limited ABN 39 078 388 155
41
51
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Independent Auditor’s Report
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.
Key Audit Matter
How our audit addressed the Key Audit Matter
Revenue recognition
During the year, the Consolidated Entity generated
Our procedures included, amongst others:
revenue of $9,801,575 and as at balance date had
deferred revenue of $1,287,491.
recognition of
The
revenue and associated
deferred revenue was considered a key audit
to
the
matter due
involved
obligations are met and revenue is recognised.
judgement and estimates
in determining when performance
• Obtaining an understanding of the processes
relating to revenue recognition;
• Reviewing the revenue recognition policy for
from
compliance with AASB 15 Revenue
Contracts with Customers;
• Testing revenue on a sample basis to supporting
documentation;
• Assessing cut-off of revenue at year end to ensure
the correct
in
revenue has been recorded
reporting period; and
• Assessing the adequacy of the Consolidated
Entity’s revenue disclosures within the financial
statements.
Accounting for Share-Based Payments
As disclosed in note 18 to the financial statements,
Our procedures amongst others included:
the year ended 30 June 2022
during
Consolidated
Entity
incurred
the
share-based
payments expense of $1,302,448.
Share based payments are considered to be a key
audit matter due to
•
•
•
the value of the transactions;
the complexities involved in the recognition and
measurement of these instruments; and
the judgement involved in determining the
inputs used in the valuations.
•
•
•
•
Analysing agreements to identify the key terms
and conditions of share-based payments issued
and relevant vesting conditions in accordance
with AASB 2 Share Based Payments;
Evaluating management’s
assessing the assumptions and inputs used;
valuations and
Assessing the amount recognised during the
year in accordance with the vesting conditions of
the agreements; and
Assessing the adequacy of the disclosures
included in Note 18 to the financial statements.
52
Pointerra Limited ABN 39 078 388 155
42
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Independent Auditor’s Report
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2022 but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly 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 Note 2, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Independent Auditor’s Report
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Consolidated Entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain
solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2022.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 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.
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Independent Auditor’s Report
Auditor’s Opinion
In our opinion, the Remuneration Report of Pointerra Limited, for the year ended 30 June 2022, complies with
section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
D M BELL CA
Director
Dated this 29th day of September 2022
Perth, Western Australia
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Corporate Governance Statement
The Board of Directors of the Company is responsible for the Corporate Governance of the Company. The Board is
committed to achieving and demonstrating the highest standard of corporate governance applied in a manner that is
appropriate to the Company’s circumstances.
The Company has taken note of the Corporate Governance Principles and Recommendations 4th edition, which became
effective for the first full financial year commencing on or after 1 January 2020.
The Company’s Corporate Governance Statement is current as of the date of this report and it has been approved by the
Board. The Corporate Governance Statement is available on the Company’s website at: www.pointerra.com
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Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Additional Information for Shareholders
The shareholder information set out below was applicable as at 26 September 2022.
Distribution of equity securities:
Analysis of numbers of equity security holders by size of holding:
Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 999,999,999,999
Total
Less than marketable parcel
Total
holders
Number of
Shares
% of issued
capital
1,649
4,195
1,631
2,678
541
726,361
11,185,674
13,007,840
83,981,332
568,904,997
0.11
1.65
1.92
12.39
83.93
10,694
677,806,204
100.00
Holders
3,799
Units
4,302,707
The names of the 20 largest holders of fully paid ordinary shares as at 26 September 2022:
Name
Number of
shares
Percentage
CARTOVISTA PTY LTD
60,777,958
BNP PARIBAS NOMINEES PTY LTD
47,905,771
1.
2.
3.
4.
5.
6.
CAPITAL B ASSET MANAGEMENT PTY LTD
CARTOVISTA PTY LTD
JENNIFER OLSON
CITICORP NOMINEES PTY LIMITED
7. MICHAEL FREETH
8. MRS ALISON ADRIENNE MORRISON + MR MARK WILLIAM MORRISON
14,586,710
9.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
10.
JENNIFER OLSON
11. MR BLAZE JASPER
12. MR RANDAL KARL RHOADS
13. MR HOANG HUY NGUYEN
14.
IAN OLSON
15.
LIVELY ENTERPRISES PTY LTD
16. MARK MORRISON & ALISON MORRISON
8.97
7.07
6.66
3.58
2.95
2.61
2.51
2.15
1.69
1.48
1.22
1.18
0.94
0.90
0.89
0.86
0.74
0.73
0.70
0.62
45,140,940
24,261,426
19,983,793
17,962,551
17,016,407
11,452,194
10,000,000
8,282,072
8,000,000
6,395,241
6,077,796
6,000,000
5,822,742
5,000,000
4,945,000
4,750,694
4,200,000
17.
STEPHEN SAKHAROV
18. MR KEIRAN JAMES SLEE
19. MR MICHAEL FREETH
20.
JAMES YOUNG
Total
Total all ordinary shares
328,291,295
48.34
677,806,204
Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
Additional Information for Shareholders
Substantial holders:
Substantial holders in the Company are set out below:
Name
Cartovista Pty ltd
Jennifer Olson
Capital B Asset Management Pty Ltd
Restricted Securities
The Company has no restricted securities on issue.
On-market Buy-back
There is no current on-market buy-back.
Number of shares
89,078,209
33,960,950
45,140,940
Class of
shares
Ordinary
Ordinary
Ordinary
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Pointerra Limited ABN 39 078 388 155
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ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 | POINTERRA LIMITED | ABN 39 078 388 155
ASX:3DP | www.pointerra.com