Parkway
CORPORATE LIMITED
AN N UAL
RE PO RT
PARKWAY CORPORATE LIMITED
(Previously known as Parkway Minerals NL)
ACN 147 346 334
For the year ended 30 June 2022
Parkway Corporate Limited
ACN: 147 346 334
Contents of Financial Report
Corporate Directory
Group Managing Director & CEO Message
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Register
Page
3
4
5
30
31
32
33
35
36
67
68
72
74
Parkway Corporate Limited | 2022 Annual Report | 2
Corporate Directory
Directors:
Bahay Ozcakmak
Penelope Creswell
Stephen van der Sluys
Joint Company Secretary:
Amanda Wilton-Heald
Alexander Cook
Auditor:
Nexia Perth Audit Services Pty Ltd
3/88 William St
Perth WA 6000
Telephone (+61 8) 9463 2463
Email:
info@nexiaperth.com.au
Share Registry:
Advanced Share Registry
160 Stirling Highway
Nedlands WA 6009 AUSTRALIA
Telephone (+61 8) 9389 8033
Facsimile (+61 8) 9262 3723
Registered and Principal Office
5/45 Bunnett Street
Sunshine North VIC 3020
Telephone (+61 3) 9069 3200
Website:
Email:
www.pwnps.com
solutions@pwnps.com
Stock Exchange Listing
Parkway Corporate Limited shares are listed on the Australian Securities Exchange (ASX: PWN).
Bankers
National Australia Bank
Ground Floor
100 St Georges Terrace
Perth WA 6000 AUSTRALIA
Telephone: (+61 8) 9441 9313
Parkway Corporate Limited | 2022 Annual Report | 3
GROUP MANAGING DIRECTOR & CEO MESSAGE
Dear Shareholder,
Welcome to Parkway. As you are aware, financial year 2022 (FY22) presented a range of challenges for
communities and economies around the world. As a junior exploration company, many of these operational
challenges impacted our ability to grow the company, particularly in international markets, as quickly as we
would have liked. Notwithstanding the pandemic related headwinds, we entered FY22 with a strong
balance sheet, which allowed us to invest in building strong foundations for our company, and to transition
from a mineral exploration focused company, into a more technology leveraged, industrial water treatment
company.
Building strategic capabilities
In many respects, FY22 was a transformational year for Parkway. We continued to invest heavily in our
technology portfolio, as well as growing the size of our dedicated team, investments which have enabled us
to expand the scale and nature of our operations. During the year, we acquired a small water related
company, which enabled us to further expand our footprint in Australia, as well as gain access to a portfolio
of established client relationships, particularly in the mining sector. Our team which consisted of only a
handful of employees up until recently, now incorporates a diverse range of experienced professionals,
from technicians, mechanical fitters, engineers and other specialists, through to corporate team members.
Landmark technology milestone
Developing and commercialising innovative technologies is at the core of our purpose as a company. For
strategic and commercial reasons, we generally don’t publicise specific technology related achievements,
however, Parkway continues to make significant progress with a range of technologies. In April this year,
following an extensive technology development and evaluation process, we announced that Parkway had
been awarded a material contract to perform a feasibility study, for global energy company, Shell. In
addition to highlighting the commercial potential of Parkway’s patented iBC® technology, the award of the
contract also highlights and validates the calibre of capabilities developed by Parkway, in recent times.
Generating traction
In addition to achieving significant milestones for our core technologies, FY22 was also a watershed year
for Parkway as the company generated initial revenues from underlying activities. Whilst these revenues for
FY22 were relatively modest at ~$3.4 million, significantly, the majority of these revenues were generated
from major energy and mining companies, both strategically important industrial market segments for
Parkway.
Outlook
As we look to the future, we are excited by the opportunities in front of us. With a growing portfolio of both
conventional and more innovative industrial process technologies, and a particular focus on the increasingly
challenged energy and mining sectors, Parkway is well placed to take advantage of the sustainability
related tailwinds affecting these sectors. On the corporate front, Parkway remains well funded, debt free
and will continue to execute its strategy of becoming a leading provider of innovative water treatment
related products, services, solutions and technology. At the beginning of FY22, we launched Parkway
Process Solutions (PPS) to assist us execute on this strategy. In a relatively short period of time, PPS has
generated significant traction in the market, creating a range of strategic opportunities, but most
importantly, is providing Parkway with a launchpad, for its range of innovative process technologies.
Finally, I’d like to express my thanks and appreciation to our team for their hard work and dedication
throughout the year. On behalf of Parkway, I’d also like to extend my thanks to all our shareholders,
partners, clients and other valued stakeholders, that have contributed to our success during the year.
Yours Sincerely,
Bahay Ozcakmak
Group Managing Director & CEO
30 September 2022
Parkway Corporate Limited | 2022 Annual Report | 4
Directors’ Report
The Directors present their report on Parkway Corporate Limited (ACN 147 346 334) and its controlled
entities (“Parkway”, the “Company”, “Group” or “PWN”), for the Company’s financial year ended 30 June
2022 (“FY22”).
Directors
The names and details of the Company’s directors in office, for some or all of the financial year, are set out
below.
Name
Tenure During Financial Year
Adrian Griffin (Non-executive Chairman)
1 July 2021 to 30 June 2022
Bahay Ozcakmak (Managing Director)
Bahay Ozcakmak (Group Managing Director & CEO)
1 July 2021 to 25 October 2021
26 October 2021 to 30 June 2022
Patrick Power (Non-executive Director)
1 July 2021 to 26 October 2021
Richard Beresford (Non-executive Director)
1 July 2021 to 16 December 2021
Alexander Cook (Executive Director)
26 October 2021 to 30 June 2022
Penelope Creswell (Non-executive Director)
26 October 2021 to 30 June 2022
Names, qualifications, experience and special responsibilities
Adrian Griffin – Non-executive Chairman (appointed 12 November 2010 and resigned 12 September
2022)
Qualifications
Bsc(Honours),GSA,MAusIMM
Mr Adrian Griffin, an Australian-trained mining professional, has had exposure to metal mining and processing
worldwide during a career spanning more than three decades. A pioneer of the lateritic nickel processing
industry, he has helped develop extraction technologies for a range of minerals over the years. Today, Adrian
specialises in mine management and production. He is a former Chief Executive Officer of Dwyka Diamonds
Limited, an AIM- and ASX-listed diamond producer, was a founding director and executive of Washington
Resources Limited and also a founding director of Empire Resources Limited, Ferrum Crescent Limited and
Reedy Lagoon Corporation Limited. Moreover, Mr Griffin was a founding director of ASX-listed Northern
Minerals, of which company he is currently a non-executive director. Most recently, Mr Griffin was managing
director of ASX-listed Lithium Australia Limited, a role which he retired from on 31 May 2022.
Other listed company directorships during the last 3 years:
Northern Minerals Ltd (Director June 2006 – present), Reedy Lagoon Corporation Ltd (Director June 2014 –
present), Lithium Australia Limited (Director February 2011 – May 2022) and Charger Metals NL (May 2022
– present).
Adrian Griffin was also a member of the Audit & Risk Committee, Remuneration Committee (Chairman) and
the Nomination Committee.
Bahay Ozcakmak – Group Managing Director & CEO (appointed 28 November 2019 until 25 October
2021 as Managing Director, and on 26 October as Group Managing Director & CEO)
Qualifications
BSc, MABus, DipFin(Inv.), MAICD
Parkway Corporate Limited | 2022 Annual Report | 5
Directors’ Report (continued)
Mr Bahay Ozcakmak is the founder of several successful companies, including Activated Water Technologies
Pty Ltd (“AWT”) and was the CEO of AWT’s parent company, Consolidated Potash Corporation Ltd (“CPC”),
up until its acquisition by Parkway. In addition to two decades of successful technology commercialisation
experience, Mr Ozcakmak has extensive corporate development expertise, including M&A in the energy and
mining sectors, where he has led the successful acquisition of several flagship projects and major corporate
transactions, particularly with listed companies. Mr Ozcakmak has broad corporate experience ranging from
equity capital markets, business and corporate strategy development through to CEO and director level roles
in the energy and mining sectors, including companies focused on gold, copper, nickel, cobalt, lithium and
potash. In recognition of highly successful collaboration and significant contributions made to Victoria
University over a number of years, in May 2020 the honorary title of Adjunct Associate Professor was
conferred upon Mr. Ozcakmak.
Other listed company directorships during the last 3 years:
TSX Venture exchange listed: Lions Bay Capital Inc. (Director May 2018 – October 2019), Fidelity Minerals
Corp. (Director June 2018 – March 2021).
Patrick Power – Non-executive Director (appointed 17 September 2019 and resigned 26 October 2021)
Mr Patrick Power is the founder of Western Potash Corp, and was instrumental in securing substantial
investment for the company and advancing the Milestone (under construction) project in Saskatchewan,
Canada. Mr Power brings over 25 years' experience in mining finance, management and venture capital. Mr
Power is currently a director of Western Potash and President and CEO of Arctic Star Exploration, a diamond
exploration company. He has served as a director of other mineral exploration companies including Amarillo
Gold Corp., First Narrows Resources Corp., and Goldtex Resources Ltd.
Other listed Company directorships during the last 3 years:
Western Potash Corp. (Director April 2007 – April 2017), Arctic Star Exploration Corp. (Director June 2003 –
Present).
Richard Beresford – Non-executive Director (appointed 12 March 2020 and resigned 16 December
2021)
Qualifications
BSc (Mechanical Engineering), MSc (Technology and Development), and is a member of FAIE and FAICD
Mr. Beresford has over 30 years’ experience in the international energy natural gas and renewable energy
industries. Mr. Beresford served as a director of Eden Energy Limited. Mr. Beresford held the position of
Executive Chairman of Green Rock Energy Limited (ASX: BKT), a Perth based energy explorer and
developer from 2012 to 2015. Prior to his appointment as Executive Chairman he was the Managing Director
and a non-executive director from 2008 to 2012. Mr. Beresford was Head of Gas Strategy and Development
of CLP Power Hong Kong Limited from 2005 to 2007. Mr. Beresford spent five years with Woodside
Petroleum Limited and 12 years with British Gas Plc.
Other listed company directorships during the last 3 years:
Liquefied Natural Gas Limited (Feb 2004 – 30 April 2020).
Alexander Cook – Executive Director (appointed 26 October 2021 and resigned 27 September 2022)
Qualifications
BCom & LLB (1st Hons), GDLP, CertGovPrac
Mr Alexander Cook is an experienced commercial lawyer, with both top tier law firm and in-house legal
experience. Alexander started his legal career at King & Wood Mallesons and since that time has held various
senior in-house legal roles at ASX-listed companies in the mining & resources and industrial services
industries. Alexander was first admitted to practice as a Solicitor of the Supreme Court of Victoria and High
Court of Australia on 14 October 2014.
Other listed company directorships during the last 3 years:
None
Parkway Corporate Limited | 2022 Annual Report | 6
Penelope Creswell – Non-executive Director (appointed 26 October 2021)
Directors’ Report (continued)
Qualifications
BA & LLB (Hons) MAICD
Ms Creswell is a highly experienced lawyer, with 25+ years of professional experience, including ~10 years
at Allens (one of Australia’s most prestigious top-tier law firms) and most recently ~7 years as the leading in-
house legal counsel for all planning and environmental legal matters at Cleanaway Waste Management
Limited (ASX:CWY), Australia’s largest waste management company. Ms Creswell also brings ~4 years of
experience at the Northern Land Council in the Northern Territory, as well as experience as a secondee
General Counsel at Melbourne Water, to her role with the Company. While her professional career has
spanned diverse areas of law, her key focus over the last 15 years has been infrastructure projects, planning
and environmental law, including in the waste and water sectors.
Other listed company directorships during the last 3 years:
None
Stephen van der Sluys – Non-executive Director (appointed 01 September 2022)
Qualifications
BBuild, MAusIMM, MAICD
Mr van der Sluys is a highly credentialed investment banker and business executive, with extensive
international experience in capital markets and strategic transactions, including mergers & acquisitions. Mr
van der Sluys has held a number of senior investment banking roles (predominantly in Australia and the
United States of America), including with Citibank, JP Morgan Chase & Co, Bank of New Zealand and as
CEO of CIBC Wood Gundy Australia. In addition to his investment banking experience, Mr van der Sluys has
also held various senior executive roles, at a range of large companies which operate in the mining and
resources industry, including as executive director of Queensland Nickel during the period which the company
successfully listed as an ASX100 company. More recently, Mr van der Sluys has assisted a number of junior
resources companies achieve corporate success. In particular, Mr van der Sluys was executive chairman
and subsequently managing director of Jervois Mining Limited (now Jervois Global Limited, ASX: JRV),
having played a pivotal role in a successful transformation of the company.
Other listed company directorships during the last 3 years:
None
Joint Company Secretaries
Amanda Wilton-Heald (appointed 7 March 2018)
Amanda is a Chartered Accountant with over 20 years of accounting, auditing (of both listed and non-listed
companies) and company secretarial experience within Australia and the UK. Amanda has been involved
in the listing of junior explorer companies on the ASX and has experience in corporate advisory and
company secretarial services.
Alexander Cook (appointed 26 October 2021)
Please refer to Mr Cook’s biography on page 6 of this Report above.
Parkway Corporate Limited | 2022 Annual Report | 7
Directors’ Report (continued)
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the directors (including related parties) in the shares and options
of the company were:
Number of ordinary
shares
Number of options
over ordinary shares
Adrian Griffin
Bahay Ozcakmak
Patrick Power
Richard Beresford
Alexander Cook
Penelope Creswell
Stephen Van der Sluys
Dividends
21,112,665
219,737,201
1,308,009
622,610
-
-
-
13,783,550
87,257,393
5,000,000
5,000,000
5,000,000
-
-
No dividend has been paid or declared since the start of the financial year and the directors do not recommend
the payment of a dividend in respect of the financial year.
OPERATING AND FINANCIAL REVIEW
Principal activities
The principal activities of the Group during its FY22 include:
•
•
the commercialisation of proprietary brine processing technologies, with applications in the energy
and mining sectors (“Technology Commercialisation Business”); and
the development of an integrated water treatment products and services business, to complement
and support the entity’s Technology Commercialisation Business.
Operating results for the year
The Group’s loss after income tax expense for its FY22 were $ 2,332,196 (2021: $923,715).
Financial Performance
Total income
Loss before tax
Loss after income tax expense
Loss per share (cents)
2022
$
3,710,531
(2,332,196)
(2,332,196)
(0.11)
2021
$
1,568,480
(923,715)
(923,715)
(0.04)
% Increase/
(Decrease)
136.57%
152.48%
152.48%
164.33%
The financial position of the Group is presented in the attached Consolidated Statement of Financial Position.
As of 30 June 2022, the Group had a net asset balance of $9,692,516 which is a decrease of $2,176,072
from 30 June 2021. The cash balance decreased from $7,452,866 to $4,003,404 as of 30 June 2022. For
further details, refer to the consolidated statement of financial position.
Parkway Corporate Limited | 2022 Annual Report | 8
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PARKWAY VENTURES: SUMMARY OF PROJECT PORTOLIO
Parkway Ventures (Parkway Ventures Pty Ltd, “PV”) is a wholly owned subsidiary of the Company and holds
all resource project and royalty related interests owned by the Company.
Karinga Lakes Potash Project (KLPP)
As of 30 June 2022, the Company held an equity interest in the Karinga Lakes Potash Project (“KLPP”),
through PV. The KLPP is a joint venture between Verdant Minerals Pty Ltd and Consolidated Potash
Corporation Pty Ltd (a wholly owned subsidiary of the Company), which is administered through Territory
Potash Pty Ltd (“JV Operator”).
On 5 November 2020, the Company announced completion of the KLPP Pre-Feasibility Study (“KLPP-PFS”),
a pre-feasibility study based on the strategic application of the Company’s aMES® technology. The Company
notes the recent strength in agricultural commodity markets, is supporting elevated fertiliser prices, with the
primary target product from the KLPP, sulphate of potash (“SOP”), trading significantly higher than the prices
assumed by the Company in the KLPP-PFS.
Key Findings of the KLPP-PFS
• The KLPP-PFS confirmed the KLPP as a potentially attractive producer of high-quality, soluble
grade, SOP targeting key horticulture markets.
•
Innovative aMES® based flow sheet demonstrates potential (major improvement over scoping
study), even for a relatively small-scale operation targeting annual SOP production of 40,000
tonnes, over an initial mine life of 20 years.
• aMES® based development concept demonstrates highly efficient use of water.
• Mineral Resource Estimate
o Reporting Indicated Mineral Resource of 1,000,000 tonnes of potassium, with 580,000
tonnes of potassium hosted within eight lakes that are incorporated into the mine plan.
o The mine plan includes production of 430,000 tonnes of potassium, which is sufficient to
underpin an initial mine life of 20 years, based on a scheduled production rate of 40,000
tonnes per annum of SOP.
• Key Financial Metrics
o
Initial capital cost (CAPEX) of $80.0 million, inclusive of all non-process infrastructure and
indirect costs (which includes a contingency of $6.7 million).
o Production cost (OPEX) of $293/tonne of SOP, ex-mine gate.
o Strong cash generation potential, with estimated EBITDA margin of 54.4%, resulting in
annual EBITDA of $18.6 million.
o Ungeared development of the KLPP would result in:
▪ Project payback in approximately 5.5 years from first SOP production.
▪ Post-Tax NPV8% of $80.15 million with an IRR of 20.4%.
Parkway Corporate Limited | 2022 Annual Report | 9
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PARKWAY VENTURES: SUMMARY OF PROJECT PORTOLIO (continued)
• Significant additional opportunities to improve the financial performance of the project were
identified, particularly in relation to non-process infrastructure.
• KLPP-PFS prepared by owners’ team, supported by leading industry consultants, with Worley as
study manager, through existing Global Strategic Cooperation Agreement.
Generalised Development Concept Outlined in the KLPP-PFS
Mineral Resources
As outlined in the Group’s ASX announcement from 5 November 2020, the Mineral Resources Estimate
underpinning the KLPP-PFS is summarised as follows:
Parkway Corporate Limited | 2022 Annual Report | 10
UPSTREAM OPERATIONSDOWNSTREAM OPERATIONS
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PARKWAY VENTURES: SUMMARY OF PROJECT PORTOLIO (continued)
Lake
Mineralisation
Contained in
Drainable Porosity
Indicated Mineral
Resources Contained
in Total Porosity that
meets reasonable
prospects of
economic extraction
Production
Potassium Tonnage
(kt)
Potassium Tonnage
(kt)
Potassium Tonnage
(kt)
Lakes included in the mine plan (x8)
Sub Total
Remaining lakes (x16)
Sub Total
Total
220
520
300
580
430
1,000
430
-
430
Current Status
Following completion of the KLPP-PFS, a previously disclosed tenement rationalisation process, and the
recent finalisation of joint venture accounting processes, on 24 June 2022, the Group announced it had
satisfied the requisite earn-in requirements, resulting in the Group increasing its interest in the KLPP from
15% to 40%.
As of 30 June 2022, exploration tenure for the KLPP project area was held in the following three exploration
licences:
Tenement ID
Location
State
Interest1
EL32249
EL32250
EL32251
Karinga Lakes
Karinga Lakes
Karinga Lakes
NT
NT
NT
40%
40%
40%
As a result of a joint venture administration related procedures and for various other reasons, during FY22,
no substantive mineral exploration activities occurred in relation to the KLPP exploration project.
COMPETENT PERSON’S STATEMENT
Parkway reported the Mineral Resource estimate for the Karinga Lakes Potash Project in accordance with
Listing Rule 5.8 in its ASX announcement dated 5 November 2020. Parkway confirms that it is not aware of
any new information or data that materially affects the information included in the ASX announcement of 5
November 2020 and that all material assumptions and technical parameters underpinning the estimates in
the ASX announcement of 5 November 2020 continue to apply and have not materially changed.
1 Following recent satisfaction of the earn-in requirements, as announced on 24 June 2022, the KLPP-JV parties are working collaboratively to assign the Company’s interest in the KLPP
tenements and undertake the administrative process to register the Company’s interest in a timely manner.
Parkway Corporate Limited | 2022 Annual Report | 11
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PARKWAY VENTURES: SUMMARY OF PROJECT PORTOLIO (continued)
Other Resources Projects
During FY22, the Group continued to consider potential involvement in a number of additional resource
projects, whereby the Group may contribute its proprietary process technologies related capabilities, in
exchange for the Group receiving agreed equity interests in (and/or royalties from) the respective project/s.
In the event the Group is successful in adopting this strategy, the Group intends to leverage its technology
portfolio to gain economic exposure to additional resources project/s (including, amongst others, lithium brine
projects), without necessarily incurring material balance sheet exposure. For the avoidance of doubt, this
technology commercialisation strategy is consistent with the previously disclosed innovative business model,
being pursued by the Group.
PARKWAY PROCESS TECHNOLOGIES: SUMMARY OF TECHNOLOGY PORTFOLIO
Parkway Process Technologies (Parkway Process Technologies Pty Ltd, “PPT”) is a wholly owned subsidiary
of the Company and is used to own and develop the Company’s proprietary technology portfolio.
During FY22, the Company continued to make encouraging progress in the development and
commercialisation of its world-class wastewater processing technology portfolio. The Company continued to
perform a range of piloting, scoping and technoeconomic related evaluations for several projects, which
highlighted significant opportunities for the application of the Company’s suite of technologies to address a
range of wastewater related challenges.
Further details regarding the core technology portfolio owned by the Company, are outlined below.
aMES® Technology
The aMES® technology enables the processing of concentrated industrial process and wastewater streams
including brine solutions, to recover a range of valuable compounds, reagents, and fresh water.
As already noted above, in late 2020, the Company finalised the KLPP-PFS, which assisted the Company
to demonstrate the significant advantages of the aMES® technology in an SOP related application. In
conjunction with the KLPP-PFS, a new state-of-the-art aMES® pilot plant was commissioned, providing the
Company with an important process demonstration, optimisation and validation capability, an essential
requirement for successful commercialisation of the aMES® technology.
The performance data generated by the aMES® pilot plant, is providing important information that will impact
the engineering design of a commercial-scale modularised aMES® plant.
An important advantage of the aMES® technology that is of increasing interest in SOP production, is that the
aMES® technology incorporates a direct induced crystallisation approach, which avoids the requirement for
flotation-based processing. Recent experiences with flotation by various SOP projects under development
in Australia, highlight the challenges associated with flotation-based flow sheets, particularly when processing
feed salts of varying quality, which invariably occurs, when dealing with natural evaporation derived mixed
(KTMS type) salts.
During FY22, the Company continued to perform a range of technoeconomic evaluations in relation to the
aMES® technology, as well as engage in discussions with several parties, to further advance a range of
prospective commercial arrangements.
iBC® Technology
The Company’s Integrated Brine Causticisation or iBC® (“iBC®”) technology involves the pre-treatment of
complex brines, particularly from the energy, mining and other industrial sectors, enabling further downstream
processing, to reduce wastewater volumes and potentially recover a range of valuable chemical products.
The Company’s evaluations during FY22 continued to provide encouragement that in addition to achieving
significant wastewater volume reductions, the application of the iBC® technology is likely to be able to achieve
a highly desirable zero-liquid discharge (ZLD) solution for certain applications. The advantages of a ZLD
approach, incorporating an iBC® based processing route, also has the potential to create a valuable revenue
stream, through the sale of industrial chemicals, particularly sodium hydroxide.
Parkway Corporate Limited | 2022 Annual Report | 12
OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
PARKWAY PROCESS TECHNOLOGIES: SUMMARY OF TECHNOLOGY PORTFOLIO (continued)
Following recent agreements centred on the iBC® technology with global engineering company Worley (10
February 2022) and QGC (a Shell Group company) (7 April 2022), during FY22, the Company also explored
several other large-scale and high-value applications of the iBC® technology, with a range of industrial
companies. Discussions with a major global chemical company, have identified a significant opportunity for
the iBC® technology to treat various complex wastewater streams generated from an industrial process, at
operations in North America.
New iBC® Pilot Plant
During FY22, to support the ongoing commercialisation of the iBC® technology, the Company finalised the
design and fabrication of a New iBC® Pilot Plant, which recently achieved mechanical completion. The New
iBC® Pilot Plant will assist the Group to perform larger scale test work, further optimise process conditions,
and produce product samples, for industry evaluation. The New iBC® Pilot Plant is also supporting a range
of ongoing commercial discussions with a range of key stakeholders, including prospective clients and
partners.
The feasibility study contract which was awarded to the Group by QGC (a Shell Group company) during FY22
will incorporate a range of process piloting related activities, including with the New iBC® Pilot Plant, as shown
below (Figure 1).
Figure 1: New iBC® Pilot Plant, installed at Victoria University, Institute for Sustainable Industries & Liveable Cities (ISILC)
In addition, the Company continued to develop new technologies, as well as identify additional applications
for its portfolio of proprietary process technologies, to solve high-value problems facing industry.
Third-Party Technologies – Various
As part of the Group’s efforts to further expand the coverage of its cutting-edge technology portfolio, the
Group is continually (including during the course of FY22) evaluating a range of prospective technology
platforms. The most attractive technology platforms are those that not only provide substantial efficiency,
financial and sustainability related advantages over conventional processes, but are also highly
complementary with Parkway’s existing (core) technologies.
Parkway Corporate Limited | 2022 Annual Report | 13
OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
PARKWAY PROCESS TECHNOLOGIES: SUMMARY OF TECHNOLOGY PORTFOLIO (continued)
During FY22, the Group continued to develop and assess the feasibility of a variety of innovative industrial
water treatment related technologies. This process incorporated a range of desktop, experimental and
piloting related activities. Results from the Group’s investigations during FY22 demonstrated improvements
in the treatment of complex wastewater streams containing both organic and inorganic substances, including
the removal of emerging and highly problematic contaminants, such as PFAS (per-and polyfluoroalkyl
substances).
The Group made strong progress during FY22, in building a portfolio of technologies, capable of providing a
highly integrated process solution, for a range of wastewater and process streams traditionally considered
difficult to treat. Potential applications for these emerging technologies include, but are not limited to, the
treatment of a range of complex industrial wastewater streams, acid and metalliferous drainage (AMD),
municipal waste streams including landfill leachate.
As part of the Group’s growing modular product development capabilities, the Group continued to invest in
developing capabilities during FY22, to build modular systems based on commercial scale equipment,
including incorporation of a range of technologies, an innovative membrane-based technology as well as
advanced oxidation technology.
PARKWAY PROCESS SOLUTIONS: INTEGRATED WATER TREATMENT BUSINESS
Parkway Process Solutions (Parkway Process Solutions Pty Ltd, “PPS”) is a wholly owned subsidiary (and
the primary operating division) of the Group.
During FY22, in parallel with the Group’s ongoing technology development and commercialisation activities
(which are described in detail above), the Company also continued to establish its industrial water treatment
products and services offering through PPS, to address broader opportunities in the water treatment sector.
Parkway launched PPS on 8 July 2021, and strategically expanded the operations of PPS during FY22,
pursuing a range of commercial opportunities relating to industrial water treatment, predominantly in Australia.
With growing inhouse engineering and technical services capabilities, an innovative product and services
offering, and established operations in Perth, Melbourne and Darwin, PPS is increasingly well placed to
secure larger industrial water treatment related opportunities moving forward. To support the ongoing growth
of PPS, particularly the planned expansion of fabrication, assembly and testing related capabilities, during
FY22, the Company secured leases for two additional warehouse facilities. Further information about these
additional warehouse facilities is outlined in the “Significant Events After The Reporting Date”, section of this
Report.
In addition to generating growing revenues through the provision of conventional water treatment solutions,
PPS is increasingly supporting the commercialisation of the Group’s next-generation technology portfolio,
including the delivery of highly differentiated integrated water treatment and industrial process solutions.
Business Development
During FY22, PPS continued to improve its market penetration, by securing new business from a diverse
range of companies, for the provision of industrial water treatment related products, services, and solutions.
Following the preliminary launch of PPS, PPS has rapidly established a substantial client base, which
includes large mining and energy companies, a diverse range of industrial companies, as well as engineering
services, government and municipal clients.
In support of these new and existing business development activities, PPS continued to progress the
development of modular water treatment capabilities during FY22, specifically designed for rapid deployment
in a range of high value applications. PPS continues to receive encouraging feedback regarding the
advantages of a modular system, including in relation to PPS’s design and post-sales support (service and
consumables) related capabilities, which is increasingly important for customers, particularly given the global
supply chain challenges which are currently being experienced.
Importantly, the Company’s growing inhouse product development capabilities are also assisting in the
Company’s design, fabrication and delivery of modular water treatment (and related process) plants,
incorporating technologies being commercialised by PPT.
Parkway Corporate Limited | 2022 Annual Report | 14
OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
PARKWAY PROCESS SOLUTIONS: INTEGRATED WATER TREATMENT BUSINESS (continued)
In addition to the specific projects outlined below, during FY22, PPS continued to progress a broad range of
business development opportunities, including collaborations with several previously foreshadowed
companies.
Acquisition of Mawpump Pty Ltd
On 3 September 2021, the Group announced that PPS had acquired 100% of all shares in the capital of
Mawpump Pty Ltd (“Mawpump”), for up to $1.3 million (before agreed adjustments).
About Mawpump
Mawpump is an established Darwin based supplier of pumping related products, services and packaged
solutions, with a primary focus on the mining industry in Northern Australia. Mawpump has been successfully
operating since 1996, during which time it has provided various products and/or services, to most of the major
mining operations in the Northern Territory of Australia. Mawpump operates a fabrication and maintenance
workshop, as well as a large product inventory (together with associated plant and equipment), enabling
Mawpump to provide a fast and reliable service and maintain its position as a preferred vendor for various
mining operations predominantly in the Northern Territory of Australia.
Acquisition Rationale
▪ Parkway had previously identified several major industrial wastewater related challenges in Northern
Australia, which potentially represented attractive opportunities for the Group.
▪ The acquisition of Mawpump was considered by the Group to:
▪ Support Parkway’s evaluation and potential participation in its previously identified project
opportunities and other opportunities elsewhere in Australia;
▪
Immediately integrate into the PPS products and services offering, with several operational
and strategic synergies between the two businesses;
▪ Provide PPS with a client base, particularly in the large-scale mining sector;
▪ Assist PPS in developing and offering integrated end-to-end mine dewatering solutions,
incorporating Mawpump derived and/or supported solutions;
▪ Provide PPS with operational critical mass, as well as an incremental source of revenue, with
numerous growth opportunities;
▪ Provide PPS with a platform for introducing additional solutions, including next-generation
technologies, to Mawpump’s established client base; and
▪ Provide Mawpump’s clients with a broader range of products, services, and solutions,
available through PPS.
▪ As part of the acquisition of Mawpump, Parkway acquired all of Mawpump’s assets, including
(amongst others) plant & equipment, inventory, work in progress, intellectual property and all
associated goodwill.
Integration
During the remainder of FY22, the Company successfully integrated the Mawpump business into PPS. This
integration period included (amongst other things) Mawpump’s adoption of improved processes (including
group-wide accounting and inventory management systems), to support the growth of operations through
scalable infrastructure.
Parkway Corporate Limited | 2022 Annual Report | 15
OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
PARKWAY PROCESS SOLUTIONS: INTEGRATED WATER TREATMENT BUSINESS (continued)
Mine Pit Water Treatment Plant
During FY22, the Company was awarded a project to design, build and supply an integrated water treatment
plant and related infrastructure (mine pit pump, mine pit hoses, tanks and pipework) for a major global mining
company. The integrated membrane-based water treatment plant was designed to use mine pit water as the
feedwater and produce treated water for a critical downstream industrial process. During the final quarter of
FY22, the Company finalised the design, procurement, fabrication, transport, installation, and commissioning
of the mine pit water treatment plant, achieving an extremely tight project delivery schedule, demonstrating
the rapidly growing capabilities of the Company. The extensive water treatment related product inventory
held in stock by PPS, was pivotal to the award and being able to deliver the project, in a timeframe which
would ordinarily be considered unachievable, particularly given current supply chain related challenges. This
project is a good illustration of how PPS is making solid progress in becoming a preferred water treatment
related solution provider, for key industrial customers that are strategically important to the Company.
Based on the successful delivery of the mine pit water treatment plant, after the reporting date for FY22, the
parties have been separately exploring the scope for a second containerised water treatment plant, which
the Company anticipates will be awarded during FY23.
In a separate scope of work during FY22, in relation to the operations of the same major global mining
company, the Company also completed a preliminary water treatment plant design on behalf of an
engineering contractor, supporting a proposed expansion of the existing mine.
Wastewater Treatment Plant Study
PPS performed a range of piloting related activities during FY22, associated with an early-stage preliminary
engineering study, intended to assist a government entity to treat a problematic wastewater stream, onsite.
Based on the encouraging results from the piloting activities, the Company intends to use the findings of the
study during FY23, to potentially provide a toll treatment solution for the customer, in partnership with an
established collaboration partner specialised in the sector.
Integrated Management System & ISO Accreditation
The Company is committed to achieving high quality environmental, social & governance (ESG) outcomes,
including achieving and maintaining high levels of compliance. As part of the Company’s commitment to
industry best practices and continuous improvement, during FY22, the Company developed an Integrated
Management System, to facilitate certification and ongoing compliance in relation to:
▪
▪
▪
ISO9001:2015, Quality Management System;
ISO14001:2015, Environmental Management System; and
ISO 45001:2018, Occupational Health & Safety Management System.
Based on an independent audit and site evaluation performed in January 2022, on 4 February 2022, the
Company announced that it had achieved certifications for all the relevant standards.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Except for the matters disclosed in this Operating and Financial Review, there were no other significant
changes in the state of affairs of the Group during its FY22. A number of significant events occurred
between 30 June 2022 and the date of this Annual Report, further details of which are outlined below.
Parkway Corporate Limited | 2022 Annual Report | 16
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
Research Grant Funding
After the reporting date, the Group entered into a contract with Victoria University and the University of
Technology Sydney, to facilitate the Group’s receipt of grant funding as part of a circular economy focused
research hub which is being supported by the Australian Research Council (“ARC”), for usage in supporting
the Group’s innovative research and development (“R&D”) and associated commercialisation related
activities.
The Group has developed a project titled, “An integrated water treatment process for valuable nutrient
recovery and purification from industrial waste streams”, to pursue with the application of the grant funds.
The overall budget for the project developed by the Group is in the order of $1,140,000 (excluding in-kind
contributions), over a period of 4 years, whereby the Group will be required to make an annual contribution
in the order of $125,000, for the duration of the project. The balance of project funding ($640,000) will be
provided by the ARC and the Group’s longstanding research partner Victoria University, leveraging Parkway’s
contribution to provide a larger project budget.
iBC® Feasibility Study Related Experimentation
The production of caustic soda (sodium hydroxide) is a key component of the iBC® based flow sheet being
evaluated by the Group, for the purposes of the feasibility study awarded by QGC (a Shell group company).
As part of the iBC® based experimentation and desktop piloting related activities, in late July 2022, the Group
successfully produced the first ultrahigh concentration (52.6%) sodium hydroxide solution, from a
concentrated waste brine derived from one of QGC’s CSG wastewater treatment plants. Whilst the sodium
hydroxide production is yet to be fully optimised, this is the highest concentration of sodium hydroxide
produced to date through the application of the iBC® technology. Encouragingly, the concentration of the
produced sodium hydroxide, is well above the highest concentration of sodium hydroxide commercially
available as a liquid product (50% w/w).
During Q1 of FY23, the Group has continued to perform extensive experimentation and piloting, in order to
establish a range of optimal process conditions for the iBC® based flow sheet. These activities have been
performed on concentrated brines (~6,000 L) sourced from two of QGC’s largest CSG wastewater treatment
plants. Once the optimal process conditions have been established at bench scale, the preferred iBC® based
flow sheet will be further optimised by performing larger scale piloting, on the New iBC® Pilot Plant (as shown
in Figure 1 on page 13 of this Report).
Expanded Operations
In order to support ongoing growth, particularly the planned expansion of fabrication, assembly and testing
related capabilities, during May and June 2022, the Group secured leases to two additional warehouse (with
integrated office) facilities.
In late July 2022:
•
•
PPS-Perth: the West Australian operations of the Group relocated to a new and much larger (~2,500
m2) warehouse complex in Bayswater (Perth), incorporating a large warehouse area, office facilities,
store, and a range of laydown areas suitable for the planned expansion of operations; and
PPS-Melbourne: the Group also took possession of a second warehouse (664 m2) in the Bunnett
Business Park, which given the proximity to the existing PPS warehouse, will enable office and
warehouse operations to be segregated from a range of workshop related activities.
The enlarged footprint will enable the Group to significantly expand both the scale and nature of operations,
which will further support the Group’s aspirations of becoming a leading technology leveraged industrial water
treatment company.
Parkway Corporate Limited | 2022 Annual Report | 17
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s activities are subject to Australian legislation relating to the protection of the environment. The
Group is subject to significant environmental legal regulations in respect to its exploration and evaluation
activities. During the Group’s FY22, the Group’s operations did not result in any known breaches of relevant
Australian environmental legislation and/or regulations.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into deeds of access and indemnity with the directors and officers of the Company,
indemnifying them against liability incurred, including costs and expenses in successfully defending legal
proceedings. The indemnity applies to a liability for costs and expenses incurred by the director or officer
acting in their capacity as a director or officer.
Except in the case of a liability for legal costs and expenses, each deed of access and indemnity does not
extend to a liability that is:
(a)
(b)
owed to the Company or a related body corporate of the Company;
for a pecuniary penalty order under section 1317G or a compensation order under section 1317H or
section 1317HA of the Corporations Act 2001; or
Similarly, the indemnity does not extend to liability for legal costs and expense:
(c)
(d)
(e)
owed to someone other than the Company or a related body corporate of the Company where the
liability did not arise out of conduct in good faith;
in defending proceedings in which the officer is found to have a liability described in paragraph (a), (b)
or (c);
in proceedings successfully brought by the Australian Securities and Investments Commission or a
liquidator; or
in connection with proceedings for relief under the Corporations Act 2001 in which the court denies the relief.
During and/or since the Group’s FY22, the Group has paid premiums in respect of a contract insuring all the
Directors and Officers. The terms of the contract prohibit the disclosure of the details of the insurance contract
and premiums paid.
Parkway Corporate Limited | 2022 Annual Report | 18
INDEMNIFICATION OF AUDITORS
Directors’ Report (continued)
To the extent permitted by law, the Group has agreed to indemnify its auditors, Nexia Perth Audit Services
Pty Ltd, as part of the terms of its audit engagement agreement against claims by third parties arising from
the audit (for an unspecified amount). No payment has been made to indemnify Nexia Perth Audit Services
Pty Ltd during and/or since the Group’s FY22.
SHARE OPTIONS
As at the date of this Annual Report, there were 748,857,222 unissued ordinary shares under options, the
details of the issued options are as follows:
Expiry Date
16 December 2022
03 February 2023
28 July 2024
16 December 2024
Exercise price
$0.02
$0.03
$0.019
$0.02
Number of Options
310,666,664
177,277,773
245,912,785
15,000,000
During the Group’s FY22, the Group issued the following unlisted share options, which are included in the
numbers of options referred to in the table above:
• The Group issued 189,226,366 unlisted options, exercisable at $0.019 and expiring 28 July 2024, to
former holders of partly paid shares, in exchange for the Group’s cancellation of such partly paid
shares, as approved by the Group’s shareholders on 5 July 2021;
• The Group issued 57,374,277 unlisted options, exercisable at $0.019 and expiring 28 July 2024, to
the Group’s Managing Director and Chairman, in exchange for the Group’s cancellation of partly paid
shares which were previously held by (or on behalf of) the Group’s Managing Director and Chairman,
as approved by the Group’s shareholders on 5 July 2021;
• The Group issued 2,000,000 unlisted options, exercisable at $0.03 and expiring 3 February 2023, to
four of the Group’s employees, pursuant to the Employee Securities Incentive Plan which was
approved by the Group’s shareholders on 5 July 2021. 1,000,000 of these unlisted options have
since been cancelled, following the departure of two of the relevant employees from their roles at the
Group;
• The Group issued 500,000 unlisted options, exercisable at $0.02 and expiring 16 December 2022,
to one of the Group’s employees, pursuant to the Employee Securities Incentive Plan which was
approved by the Group’s shareholders on 5 July 2021. All 500,000 of these unlisted options have
since been cancelled, following the departure of the relevant employee from his role at the Group;
and
• The Group issued 15,000,000 unlisted options, exercisable at $0.02 and expiring 16 December 2024,
to its Group Managing Director & CEO and Executive Director, following receipt of shareholder
approval to do so at its Annual General Meeting on 16 December 2021.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Group or
any related body corporate.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to its statutory audit duties where the
auditor’s expertise and experience with the Group are important. The Directors are satisfied that the provision
of non-audit services is compatible with the general standard of independence for audits by the Corporations
Act 2001. The nature and scope of each type of non-audit service provide means that auditor independence
was not compromised.
Details of the amounts paid or payable to the auditor, Nexia Perth Audit Services Pty Ltd, for non-audit
services provided during FY22 are set out below.
Parkway Corporate Limited | 2022 Annual Report | 19
Directors’ Report (continued)
NON-AUDIT SERVICES (continued)
Remuneration of Nexia Perth Audit Services Pty
Ltd for:
- None applicable
2022
$
2021
$
-
-
-
-
Details of the amounts paid or payable to the Group’s former auditor, Ernst & Young (which resigned as the
Group’s auditor, with prior written approval from ASIC, on 1 August 2022), for non-audit services provided
during FY22 are set out below.
Remuneration of Ernst & Young for:
- research & development tax concession
- tax compliance
DIRECTORS’ MEETINGS
2022
$
2021
$
24,364
12,360
36,724
22,889
31,930
54,819
Meetings of Directors held during the Company’s FY22 (and the Directors’ attendance at such meetings)
were as follows:
Name of Director:
Directors’
meeting held
whilst in
office
Directors’
meetings
attended
Audit and
Risk
Committee
meetings
held
Audit and
Risk
Committee
meetings
attended
Remuneratio
n Committee
meetings
held
Remuneratio
n Committee
meetings
attended
Nomination
committee
meetings
held
Nomination
committee
meetings
attended
Adrian Griffin
Patrick Power
Bahay Ozcakmak
Richard Beresford
Alexander Cook
Penelope Creswell
Stephen van der
Sluys
6
2
6
3
4
4
-
6
2
6
2
6
4
-
4
4
-
-
-
4
-
4
-
-
-
-
3
-
3
3
-
3
-
3
-
3
2
-
2
-
1
-
2
2
-
2
-
2
-
2
1
-
1
-
1
-
REMUNERATION REPORT (AUDITED)
This Remuneration Report outlines the Company’s Director and Executive remuneration arrangements, in
accordance with the requirements of the Corporations Act 2001 (Cth) and its Regulations. For the purposes
of this Report, Key Management Personnel (“KMP”) 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, and includes Executives of the Company. The information provided in this remuneration report
has been audited as required by section 308(3C) of the Corporations Act 2001 (Cth).
The Company’s remuneration report for its financial year ended 30 June 2021 was adopted at the Company’s
2021 Annual General Meeting on 16 December 2021. 315,410,887 (2020: 388,756,662) votes were in favour
of the report and 8,347,584 (2020: 2,380,215) were against. No questions or comments were raised relating
to the FY21 remuneration report.
No remuneration consultants were used during the Company’s FY22.
Parkway Corporate Limited | 2022 Annual Report | 20
Directors’ Report (continued)
REMUNERATION REPORT (AUDITED)
Details of Key Management Personnel
(i) Directors:
Group Managing Director & CEO
Bahay Ozcakmak
Penelope Creswell
Non-Executive Director
Stephen van der Sluys Non-Executive Director
(ii) Executives:
Robert Van Der Laan
Chief Financial Officer
(iii) Resigned:
Adrian Griffin
Patrick Power
Richard Beresford
Alexander Cook
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
General Counsel, Joint Company Secretary & Executive Director
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:
▪
▪
Provide competitive rewards to attract high calibre Executives; and
Link Executive rewards to shareholder value.
Shares and options issued under the incentive plans provide an incentive to stay with the Company. At this
time, shares and options issued do not have performance criteria attached. This policy is considered to be
appropriate for the Company, having regard to the current state of its development.
The Company does not have a policy which precludes Directors and Executives from entering into contracts
to hedge their exposure to options or shares granted to them as remuneration.
The Company also recognises that, at this stage in its development, it is most economical to have only a few
employees and to draw, as appropriate, upon a pool of consultants selected by the Directors on the basis of
their known management, geoscientific, and engineering and other professional and technical expertise and
experience. The Company will nevertheless seek to apply the principles described above to its Directors and
Executives, whether they are employees of/or consultants to the Company.
Remuneration Committee Responsibilities
The Committee assesses the appropriateness of the nature and amount of remuneration of Directors and
Senior Executives on a periodic basis, by reference to relevant employment market conditions, with the
overall objective of ensuring maximum stakeholder benefit from the attraction and retention of a high quality
Board of Directors and Executive Team.
Remuneration Structure
In accordance with best practice corporate governance, the structure of Non-Executive Director and
Executive Director remuneration is separate and distinct.
Parkway Corporate Limited | 2022 Annual Report | 21
Directors’ Report (continued)
REMUNERATION REPORT (AUDITED)
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 Company’s constitution and the ASX Listing Rules specify that the aggregate remuneration of Non-
Executive Directors must be determined from time to time by shareholders of the Company in a general
meeting. An amount not exceeding the amount determined is then divided between the Non-Executive
Directors. As at the date of this Annual Report, the aggregate directors’ fees for Non-Executive Directors has
been set at an amount not exceeding $200,000 per annum (2021: $200,000 per annum).
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it
is apportioned amongst Non-Executive Directors is reviewed annually. The Board may consider advice from
external consultants (none were used during the Company’s FY22), as well as the fees paid to Non-Executive
Directors of comparable companies, when undertaking the annual review process. The remuneration report
has been approved by shareholders at the annual general meeting.
Agreements with non-executive directors
Director’s fees of $90,000 per annum (inclusive of superannuation requirements) were paid, or due and
payable to Mr Adrian Griffin. In the event of termination, there is no notice period required.
Director’s fees of $48,000 per annum (inclusive of superannuation requirements) were paid, or due and
payable to each of the Company’s Non-Executive Directors during FY22, being Mr Patrick Power (retired on
26 October 2021), Mr Richard Beresford (retired on 16 December 2021) and Penelope Creswell (appointed
on 26 October 2021). In circumstances where a Non-Executive Director was in office for only part of FY22,
their director’s fees were pro-rated, to reflect their tenure in office during FY22. In the event of termination,
there is no notice period required.
As outlined above, each of the Company’s Non-Executive Directors receives a fee for being a Director of the
Company. No additional fee is paid for participating in the Audit, Remuneration and Nomination Committees.
Non-Executive Directors are encouraged by the Board to hold shares in the Company (purchased on-market
and in accordance with the Company’s approved policies to ensure there is no insider trading). It is
considered good governance for Directors of a company to have a stake in that company. The Non-Executive
Directors of the Company may also participate in the Company’s share and option plans, as described in this
Annual Report.
As an incentive to employees, Directors, executive officers and consultants, the Company has adopted a
scheme called the Parkway Corporate Limited Employee Securities Incentive Plan (‘the ESIP”). The
purpose of the ESIP is to give employees, Directors, executive officers and consultants of the Company an
opportunity to subscribe for shares and/or options in the Company. The Directors consider that the ESIP
will enable the Company to retain and attract skilled and experienced employees, Board members and
executive officers and provide them with the motivation to participate in the future growth of the Company
and, upon becoming shareholders in the Company, to participate in the Company’s profits and
development.
Parkway Corporate Limited | 2022 Annual Report | 22
Directors’ Report (continued)
REMUNERATION REPORT (AUDITED)
Executive Director and Senior Management Remuneration
Objective
The Company aims to reward Executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company and so as to:
▪
▪
▪
reward Executives for Company, business team and individual performance;
align the interests of Executives with those of shareholders; and
ensure total remuneration is competitive by market standards.
Structure
▪ At this time, the cash component of remuneration paid to the Executive Directors, and other
▪
senior managers is not dependent upon the satisfaction of performance conditions.
It is current policy that some Executives are engaged by way of consultancy agreements with
the Company, under which they receive a contract rate based upon the number of hours of
service supplied to the Company. There is provision for yearly review and adjustment based on
consumer price indices. Such remuneration is hence not dependent upon the achievement of
specific performance conditions. This policy is considered to be appropriate for the Company,
having regard to the current state of its development.
▪ Executive Directors are encouraged by the Board to hold shares in the Company (purchased
on-market and in accordance with the Company’s approved policies to ensure there is no insider
trading). It is considered good governance for Directors of a company to have a stake in that
company. The Executive Directors of the Company may also participate in the share and option
plans as described in this report.
Performance table
The following table details the loss of the Company from continuing operations after income tax, together with
the basic loss per share for last 5 financial years:
2022
$
2021
$
2020
$
2019
$
2018
$
2017
$
Net loss from continuing
operations after income tax
Basic loss per share in cents
Share Price in Cents
(2,332,196)
(923,715)
(2,421,674)
(2,009,060)
(4,817,991)
(1,784,884)
(0.11)
1.0
(0.04)
1.0
(0.15)
0.72
(0.28)
0.4
(0.81)
1.0
(0.43)
1.0
No dividends were paid in any of these years.
Executive director and senior management remuneration
Long-Term Incentive (“LTI”) awards to executives are made under the ESIP and are delivered in the form of
shares. The Company issued employee incentive options as part of LTI during this financial year.
Agreement with Managing Director
On 28 November 2019, the Company announced the appointment of Mr Bahay Ozcakmak as the Company’s
new managing director. Mr Bahay Ozcakmak’s annual remuneration was originally set at $251,141 (exclusive
of superannuation) (“Original MD Agreement”).
Parkway Corporate Limited | 2022 Annual Report | 23
REMUNERATION REPORT (AUDITED)
Directors’ Report (continued)
On 26 October 2021, the Company entered into a new Executive Services Agreement with Mr Ozcakmak
(“New MD Agreement”). Pursuant to the terms of the New MD Agreement:
• Mr Ozcakmak was engaged with the Company on a full-time and permanent basis, with no fixed term
included in the New MD Agreement;
• Mr Ozcakmak’s annual salary was revised to $275,000 (exclusive of superannuation); and
• either party may terminate the New MD Agreement on providing six months’ prior written notice to
the other party.
Agreement with Chief Financial Officer
Mr Robert Van der Laan was originally appointed as Chief Financial Officer of the Company on 13 May
2011. On 5 August 2011, the Company entered into an agreement containing the terms and conditions
under which the services of Chief Financial Officer would be provided by Mr Robert Van der Laan, by way
of a consultancy arrangement.
The agreement initially involved the payment of an hourly fee of $130 (and reimbursement of expenses) to
the company associated with Mr Van der Laan. This transaction was considered to be on normal commercial
terms and conditions, no more favourable than those available to other parties.
On 1 April 2021, the above-mentioned services agreement with Mr Van der Laan was terminated, as Mr Van
der Laan was employed by the Company as a full-time employee, with annual remuneration of $150,000
(exclusive of superannuation requirement). During the current financial year, Mr Van der Laan’s remuneration
was revised to $155,000 (exclusive of superannuation requirement). The employment agreement between
the Company and Mr Robert Van der Laan can be terminated by either party giving the other party 4 weeks’
notice.
Agreement with General Counsel, Joint Company Secretary & Executive Director
Mr Alexander Cook, who originally commenced with the Company as General Counsel on 5 July 2021,
entered into a new Executive Services Agreement with the Company on 26 October 2021, to coincide with a
revision of his responsibilities and position title to General Counsel, Joint Company Secretary & Executive
Director (“ED Agreement”).
Pursuant to the terms of the ED Agreement:
• Mr Cook was engaged with the Company on a full-time and permanent basis, with no fixed term
included in the ED Agreement;
• Mr Cook’s annual salary was revised to $180,000 (exclusive of superannuation); and
• either party may terminate the ED Agreement on providing two months’ prior written notice to the
other party.
Directors’ Remuneration 2022
Short-term
Post-employment benefits
Director
A Griffin
B Ozcakmak
R Beresford**
P Power*
A Cook****
P Creswell***
Total
Directors’
Fees
$
Salary and
Consulting
Fees
$
81,818
-
20,000
16,000
-
29,762
147,580
-
267,415
-
-
169,946
-
437,361
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
8,182
26,741
-
-
16,995
2,976
54,894
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,675
-
-
15,838
-
47,513
90,000
325,831
20,000
16,000
202,779
32,738
687,348
Parkway Corporate Limited | 2022 Annual Report | 24
REMUNERATION REPORT (AUDITED) (CONTINUED)
Directors’ Report (continued)
Executives’ Remuneration 2022
Short-term
Post-employment benefits
Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
Consulting
Fees
$
Salary
$
150,000
150,000
-
-
15,000
15,000
Total
$
165,000
165,000
-
-
297,580
437,361
69,894
47,513
852,348
-
-
-
-
-
-
Executive
R Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
Retired 26 October 2021
Retired 16 December 2021
Appointed 26 October 2021
*
**
***
**** Appointed 26 October 2021 and resigned 27 September 2022
Directors’ Remuneration 2021
Short-term
Post-employment benefits
Director
A Griffin
B Ozcakmak
R Beresford
P Power
Total
Directors’
Fees
$
Salary and
Consulting
Fees
$
82,192
-
48,000
48,000
178,192
-
251,142
-
-
251,142
Executives’ Remuneration 2021
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
7,808
23,858
-
-
-
-
-
31,666
-
-
-
-
-
-
-
-
-
-
-
-
90,000
275,000
48,000
48,000
461,000
Short-term
Salary
$
Consulting
Fees
$
Post-employment benefits
Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
Total
$
37,500
37,500
46,410
46,410
3,563
-
3,563
-
215,692
297,552
35,229
-
-
-
-
-
-
87,473
87,473
-
548,473
Executive
R Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
Parkway Corporate Limited | 2022 Annual Report | 25
Remuneration Report (audited) (continued)
Incentive shares and options: Granted and vested during the year
Shares
Directors’ Report (continued)
There were no shares issued to key management personnel as part of the incentive plan during the Company’s FY22 (2021: nil). The shares issued to key management
personnel as disclosed in the table above were in lieu of Directors’ fees and consulting fees.
Options
The Company has issued 15,000,000 options to key management personnel during its FY22. (2021:nil).
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel, including the directors and
executives.
(a)
Share holdings of Key Management Personnel
2022
Directors
A Griffin
B Ozcakmak
P Power
R Beresford
A Cook
P Creswell
S van der Sluys
Total
Executives
R Van der Laan
Total
Balance at 1 July
2021
Ordinary
Granted as
remuneration
Ordinary*
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2022
Ordinary
21,112,665
217,853,184
1,308,009
622,610
-
-
-
240,896,468
63,207,744
63,207,744
-
-
-
-
-
-
-
-
273,095
273,095
273,095
-
-
-
-
-
-
-
-
-
-
-
-
1,884,017
-
-
-
-
-
-
-
-
-
21,112,665
219,737,201
1,308,009
622,610
-
-
-
242,780,485
63,480,839
63,480,839
306,261,324
Parkway Corporate Limited | 2022 Annual Report | 26
Total Directors' and Executives’ Share holdings
304,104,212
Remuneration Report (audited) (continued)
(b) Partly Paid Contributing Shares of Key Management Personnel
Directors’ Report (continued)
2022
Directors
A Griffin
B Ozcakmak
P Power
R Beresford
A Cook
P Creswell
S van der Sluys
Total
Executives
R Van der Laan
Total
Balance at 1 July
2021
Granted as
remuneration
Partly Paid
Partly Paid
Cancelled on
issue of Options,
in lieu of
Partly Paid
Bonus issue
received
Partly Paid
Net change other
Balance at 30 June
2022
Partly Paid
Partly Paid
4,950,217
52,424,060
-
-
-
-
-
57,374,277
-
-
-
-
-
-
-
-
(4,950,217)
(52,424,060)
-
-
-
-
-
(57,374,277)
3,178,610
3,178,610
-
-
(3,178,610)
(3,178,610)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Directors' and Executives’ Share
holdings
60,552,887
-
(60,552,887)
-
The partly paid contributing share were previously issued with outstanding calls of 1.9 cents each. The partly paid contributing share carried a right to a dividend on the same basis as holders
of Ordinary Shares. Partly paid contributing shares carried the right to vote in proportion which the amount paid (not credited) bearing to the total amounts paid and payable (excluding amounts
credited). The company had the power to forfeit any shares where the call remained unpaid 14 days after the call was payable. In such circumstances, the company was required to then offer
the shares forfeited for public auction within six weeks of the call becoming payable. All partly paid shares were cancelled by the company in July 2021, following receipt of shareholder approval
to proceed with such cancellation (and associated capital reduction) at general meetings of the Company’s shareholders held on 5 July 2021, and with holders of partly paid shares receiving
allocations of unlisted options on equivalent terms.
Parkway Corporate Limited | 2022 Annual Report | 27
Remuneration Report (audited) (continued)
(c) Options holdings of Key Management Personnel
Directors’ Report (continued)
2022
Directors
A Griffin
B Ozcakmak
P Power
R Beresford
A Cook
P Creswell
S van der Sluys
Total
Executives
R Van der Laan
Total
Total Directors' and Executives’ Share
holdings
Balance at 1 July
2021
Granted as
remuneration
Issued in lieu of
Partly Paid,
cancelled in July
2021
Bonus
issue
received
Net change other
Balance at 30 June
2022
Options
Options(**)
Options
Options
Options
Options
8,833,333
24,833,333
5,000,000
5,000,000
-
-
-
43,666,666
2,500,000
2,500,000
46,166,666
-
10,000,000
-
-
5,000,000
-
-
15,000,000
-
-
-
4,950,217
52,424,060
-
-
-
-
-
57,374,277
3,178,610
3,178,610
60,552,887
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,783,550
87,257,393
5,000,000
5,000,000
5,000,000
-
-
116,040,943
5,678,610
5,678,610
121,719,553
** 15,000,000 employee incentive options were issued with excise price of $0.02 on or before 16 December 2024, the value of the options was calculated by using Black-
Scholes model to be $47,513 (refer to note 21). These options have no vesting condition and were vested on issue.
Parkway Corporate Limited | 2022 Annual Report | 28
Remuneration Report (audited) (continued)
Directors’ Report (continued)
(d) Other Transactions with Key Management Personnel
Other transactions with key management personnel are set out below:
Fees were paid to Horn Resources Pty Ltd, a company of which
Robert Van der Laan is a director and shareholder.
Fees included investor relations, corporate advisory, accounting staff
(excluding fees directly related to Robert Van der Laan) and
exploration staff.
Service fees paid are considered to be on normal commercial terms
and conditions.
30-Jun-22
$
30-Jun-21
$
-
-
53,941
53,941
Trade and other payables to related parties as at 30 June 2022 amounted to nil (30 June 2021: nil).
All related party transactions are considered to be on an arms’ length basis.
End of Remuneration Report (audited).
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 30 and forms part of this report.
This report is made in accordance with a resolution of directors.
Bahay Ozcakmak
Group Managing Director & CEO
Melbourne
Dated: 30 September 2022
Parkway Corporate Limited | 2022 Annual Report | 29
Auditor’s independence declaration under section 307C of the Corporations Act
2001
To the directors of Parkway Corporate Limited
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year
ended 30 June 2022 there have been:
(i) no contraventions of the auditor’s independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Nexia Perth Audit Services Pty Ltd
Muranda Janse Van Nieuwenhuizen
Director
Perth
30 September 2022
| 30
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
INCOME FROM CONTINUING ACTIVITIES
Sales revenue
Other income
Interest
Government Grant
Fair value gain of financial assets
TOTAL INCOME
EXPENSES
Cost of goods sold
Loss from the disposal of depreciated assets
General and Administration expenses
Depreciation and Amortisation
Share based payments
Exploration
Legal
Occupancy
Employee benefit expense
Impairment expense
Interest Expense
TOTAL EXPENSES
LOSS BEFORE INCOME TAX
Income Tax Expense
NET LOSS FOR THE YEAR
For the year
ended 30 June
2022
For the year
ended 30 June
2021
Note
$
$
13
14
21
3,375,619
108,182
927
225,802
-
3,710,531
1,497,157
9,852
1,082,512
267,756
93,254
-
24,440
98,666
2,711,148
100,000
21,938
6,042,727
(2,332,196)
-
(2,332,196)
327,299
5,927
740
383,968
850,546
1,568,480
88,776
2,842
999,847
58,633
34,551
51,081
53,972
36,016
1,157,424
-
9,053
2,492,195
(923,715)
-
(923,715)
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit or loss:
Equity accounted investments - share of comprehensive income
TOTAL OTHER COMPREHENSIVE INCOME
-
-
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(2,332,196)
(923,715)
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Basic and diluted loss per share (cents per share)
7
(0.11)
(0.04)
The consolidated statement of comprehensive income should be read in conjunction with the accompanying
notes.
Parkway Corporate Limited | 2022 Annual Report | 31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
As at 30 June 2022 As at 30 June 2021
Note
$
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Inventory
Total Current Assets
NON CURRENT ASSETS
Trade and other receivables
Plant and equipment
Intangible assets
Right of use assets
Total Non Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Lease liability
Deferred payment
Total Current Liabilities
NON CURRENT LIABILITIES
Provisions
Lease liability
Total Non Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed Equity
Reserves
Accumulated losses
TOTAL EQUITY
8
9
10
9
11
15
12
16
18
17
18
12
19
20
4,003,404
615,266
89,652
1,518,088
6,226,409
89,847
265,305
4,899,486
1,192,095
6,446,734
12,673,143
1,121,749
185,888
173,046
455,000
1,935,683
-
1,044,944
1,044,944
2,980,627
7,452,866
209,344
59,106
671,732
8,393,048
45,000
286,614
3,749,706
490,947
4,572,267
12,965,315
328,086
100,886
-
150,000
578,972
22,767
494,988
517,755
1,096,727
9,692,516
11,868,588
35,475,444
1,178,047
(26,960,975)
9,692,516
35,383,574
1,113,793
(24,628,779)
11,868,588
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
Parkway Corporate Limited | 2022 Annual Report | 32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Contributed
equity
Accumulated
Losses
Share and
Option
Based
Payment
Reserve
$
$
$
Financial
Asset
Reserve
$
Partly Paid
Shares
Reserve
$
Total
$
Balance at 1 July 2020
28,867,382
(24,741,810)
862,161
1,036,746
123,300
6,147,779
Loss for the year
Other comprehensive income (net
of tax)
Equity accounted investments - share
of other comprehensive income
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued
Share issue transaction costs
Share and option based payments
(Note 21)
Balance at 30 June 2021
-
-
-
(923,715)
-
(923,715)
-
-
-
7,046,280
(615,988)
85,900
-
-
-
-
125,281
3,051
-
-
-
-
-
-
-
-
-
-
-
-
(923,715)
-
(923,715)
7,046,280
(490,707)
88,951
35,383,574
(25,665,525)
990,493
1,036,746
123,300
11,868,588
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Parkway Corporate Limited | 2022 Annual Report | 33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Contributed
equity
Accumulated
Losses
$
$
35,383,574
-
(25,665,525)
1,036,746
Share and
Option
Based
Payment
Reserve
$
990,493
Financial
Asset
Reserve
$
1,036,746
(1,036,746)
Balance at 1 July 2021
Re-allocation of the FAR
Restated Balance at 1 July 2021
35,383,574
(24,628,779)
990,493
Loss for the year
Other comprehensive income (net
of tax)
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued
Share issue transaction costs (Note
20)
Share and option based payments
(Note 21)
Balance at 30 June 2022
-
(2,332,196)
-
(2,332,196)
-
-
12,870
-
79,000
-
-
-
123,300
-
64,254
35,475,444
(26,960,975)
1,178,047
-
-
-
-
-
-
-
Partly Paid
Shares
Reserve
$
Total
$
123,300
11,868,588
123,300
11,868,588
-
(2,332,196)
(2,332,196)
(123,300)
12,870
-
-
-
-
143,254
9,692,516
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Parkway Corporate Limited | 2022 Annual Report | 34
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
OPERATING ACTIVITIES
Payments from customers
Other Receipts
Payments to suppliers and employees
Government grant
Interest received
NET CASH FLOWS USED IN OPERATING ACTIVITIES
INVESTING ACTIVITIES
Purchase of plant and equipment
Proceeds from sale of financial assets
Proceeds from sale of plant and equipment
Payments for acquisition of Multi-wet
Payments for acquisition of Mawpump
Rental bond paid
NET CASH FLOWS FROM INVESTING ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from the sale of shares
Share issue costs
NET CASH FLOWS FROM FINANCING ACTIVITIES
For the year
ended 30 June
2022
For the year
ended 30 June
2021
Note
$
$
25
15
15
2,384,791
-
(4,730,545)
225,803
927
(2,119,024)
(78,219)
-
8,181
-
(1,228,423)
(44,847)
(1,343,308)
12,870
-
-
12,870
143,788
11,576
(2,985,677)
383,968
741
(2,445,604)
(283,192)
2,049,916
6,800
(446,407)
-
-
1,327,117
6,852,280
194,000
(476,307)
6,569,973
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR
(3,449,462)
7,452,866
5,451,486
2,001,380
8
4,003,404
7,452,866
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Parkway Corporate Limited | 2022 Annual Report | 35
Notes to Financial Statements
Note 1: Corporate information
The financial report of Parkway Corporate Limited (the “Company” or “Parkway”) and its controlled entity (the
“consolidated entity” or the “Group”) for the year ended 30 June 2022 was authorised for issue in accordance
with a resolution of Directors on 29 September 2022.
Parkway Corporate Limited is a company limited by shares incorporated in Australia whose share are publicly
traded on the Australian Securities Exchange (ASX: PWN).
The nature of operations and principal activities of the Consolidated Entity are described in the directors’
report.
Note 2: Statement of significant accounting policies
(a) Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with other
requirements of the law. Parkway is a for-profit entity for the purpose of preparing the financial statements.
The accounting policies detailed below have been consistently applied throughout the year presented unless
otherwise stated.
The financial report has also been prepared on a historical cost basis with the exception of equity instrument
at fair value through profit and loss. Cost is based on the fair values of the consideration given in exchange
for assets.
The financial report is presented in Australian dollars.
The company is a listed public company, incorporated in Australia and operating in Australia. The company’s
principal activities include:
•
•
the commercialisation of proprietary brine processing technologies, with applications in the energy
and mining sectors (“Technology Commercialisation Business”); and
the development of an integrated water treatment products and services business, to complement
and support the entity’s Technology Commercialisation Business.
The main activities of the Company in FY22 is developing brine treatment related technologies, as well as
delivering water treatment related products and services. The Group also has an interest in a potash
exploration joint venture, KLPP. As a result of joint venture administration related procedures and for
various other reasons, during FY22, no substantive mineral exploration activities occurred in relation to the
KLPP exploration project.
The consolidated financial statements provide comparative information in respect of the previous period.
(b)
Adoption of new revised or amending accounting standards and interpretations
In June 2021, IFRIC published an agenda decision in relation to the accounting treatment when determining
net realisable value (NRV) of inventories, in particular what costs are necessary to sell inventories under IAS
2 Inventories. The Group is currently assessing the impact the agenda decision will have on its current
accounting policy and whether an adjustment to inventory may be necessary. Accordingly, a reliable estimate
of the impact of the IFRIC agenda decision on the Group cannot be made at the date of this report. The
Group expects to complete the implementation of the above IFRIC agenda decision as part of its 31
December 2022 reporting.
Parkway Corporate Limited | 2022 Annual Report | 36
Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
Aside from the above, the Group has where applicable, adopted all of the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their
operations and effective for the year ended 30 June 2022.
The adoption of these amendments did not have any impact on the current period or any prior period and is
not likely to affect future periods.
As at the date of the authorisation of the financial statements, the Standards and Interpretations listed below
were in issue but not yet effective and have not been adopted by the Group for the annual reporting year
ending 30 June 2022:
Standard
Effective date for annual
reporting periods
beginning on or after
Application date for the
Company
AASB 2021-2 Amendments to Australian
Accounting Standards – Disclosure of
Accounting Policies and Definition of
Accounting Estimates
AASB 2021-5 Amendments to Australian
Accounting Standards – Deferred tax related
to Assets and Liabilities arising from a Single
Transaction
AASB 2020-3 Annual Improvements to IFRS
Standards 2018–2020 and Other
Amendments
AASB 2020-1 Amendments to Australian
Accounting Standards – Classification of
Liabilities as Current or Non-Current
1 January 2023
1 July 2023
1 January 2023
1 July 2023
1 January 2022
1 July 2022
1 January 2023
1 July 2023
The Company has decided not to early adopt any of the new and amended pronouncements. Of the above
new and amended Standards and Interpretations the Company's assessment of those new and amended
pronouncements that are relevant to the Company but applicable in future reporting periods is set out
below. The Group has not yet determined the impact of these pronouncements on its financial statements.
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
This Standard amends:
AASB 7, to clarify that information about measurement bases for financial instruments is expected to
AASB 101, to require entities to disclose their material accounting policy information rather than their
AASB 108, to clarify how entities should distinguish changes in accounting policies and changes in
1.
be material to an entities financial statements;
2.
significant accounting policies;
3.
accounting estimates;
4.
financial statements; and
5.
accounting policy disclosures.
AASB 134, to identify material accounting policy information as a component of a complete set of
AASB Practice Statement 2, to provide guidance on how to apply the concept of materiality to
Parkway Corporate Limited | 2022 Annual Report | 37
Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment narrowed the scope of the recognition exemption in paragraphs 15 and 24 of AASB 112
(recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to
equal taxable and deductible temporary differences. The amendment applies to transactions that occur on
or after the beginning of the earliest comparative period presented.
AASB 2020-3 Annual Improvements to IFRS Standards 2018–2020 and Other Amendments
This Standard amends:
(a) the application of AASB 1 by a subsidiary that becomes a first-time adopter after its parent in
relation to the measurement of cumulative translation differences;
(b) AASB 3 to update references to the Conceptual Framework for Financial Reporting;
(c) AASB 9 to clarify when the terms of a new or modified financial liability are substantially different
from the terms of the original financial liability;
(d) AASB 116 to require an entity to recognise the sales proceeds from selling items produced while
preparing property, plant and equipment for its intended use and the related cost in profit or loss, instead of
deducting the amounts received from the cost of the asset;
(e) AASB 137 to specify the costs that an entity includes when assessing whether a contract will be
loss-making; and
(f)
AASB 141 to align the fair value measurement requirements in AASB 141 with those in other
Australian Accounting Standards.
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non- Current
Amends AASB 101 to clarify that liabilities are classified as either current or non-current, depending on the
rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the
entity or events after the reporting date (for example, the receipt of a waiver, a breach of covenant, or
settlement of the liability).
Management is currently assessing the effects of applying the new standards on the Group’s financial
statements. The Group will make more detailed assessments over the next 12 months.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
Parkway Corporate Limited | 2022 Annual Report | 38
Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
(d) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in
the year in which the estimate is revised if it affects only that year or in the year of the revision and future
years if the revision affects both current and future years.
Share-based payment transactions
The Company measures the share-based payment transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. Estimating fair value for share based payment
transactions requires determining the most appropriate valuation model, which is dependent on the terms and
conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation
model including the expected life of the share option, volatility and dividend yield and making assumptions
about them. The assumptions and models used for estimating fair value for share-based payment transactions
are disclosed in Note 20.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only when management considers
that it is probable that sufficient future tax profits will be available to utilise those temporary differences.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits over the next two years together
with future tax planning strategies.
Intangible assets and goodwill
The Company assesses impairment for intangible assets at each reporting date or when an impairment
indicator exists, by evaluating conditions specific to the Company and to the particular asset that may lead
to impairment. These include product, technology, economic and political environments and future
expectations. If an impairment indicator exists, the recoverable amount of the asset is determined.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. For further information on intangible assets and goodwill,
refer to Note 16.
Research and development rebate
Research and development rebates are recognised as income when there is reasonable assurance that the
rebate will be received and the entity will comply with the conditions attached to it. Management judgement is
required to assess that the rebate meets the recognition criteria and in determining the measurement of the
rebate including the assessment of the eligibility and appropriateness of the apportionment of eligible
expenses based on research and development activities undertaken by the consolidated entity and taking
into consideration relevant legislative requirements.
Further, the Research and Development Tax Incentive Offset program in Australia is a self-assessment
regime and there is a four-year period from the date of lodgement where the claim may be subject to a
review by the Australian Taxation Office or Ausindustry, with any amounts overclaimed being potentially
subject to full repayment with interest and penalties.
Parkway Corporate Limited | 2022 Annual Report | 39
Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
(e)
Share-based payment transactions
Employees (including senior executives) of the Company receive remuneration in the form of share-based
payment transactions, whereby employees render services as consideration for equity instruments (equity-
settled transactions).
The cost of equity-settled transactions is recognised, together with a corresponding increase in other capital
reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of
equity instruments that will ultimately vest. The statement of comprehensive income expense or credit for a
period represents the movement in cumulative expense recognised as at the beginning and end of that period
and is recognised in equity based payments expense (Note 21).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for
which vesting are conditional upon a market or non-vesting condition. These are treated as vesting
irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled transaction award are modified, the minimum expense recognised is the
expense as if the terms had not been modified, if the original terms of the award are met. An additional
expense is recognised for any modification that increases the total fair value of the share based payment
transaction, or is otherwise beneficial to the employee as measured at the date of modification.
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-
vesting conditions within the control of either the entity or the employee are not met. However, if a new award
is substituted for the cancelled award, and designated as a replacement award on the date that it is granted,
the cancelled and new awards are treated as if they were a modification of the original award, as described
in the previous paragraph. The dilutive effect of outstanding options is reflected as additional share dilution in
the computation of diluted loss per share (further details are given in Note 7).
(f) Plant & equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated
impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the
asset as follows:
Plant and equipment – over 2 to 15 years
Impairment
The carrying values of plant and equipment are reviewed for impairment when impairment indicators exist
under the accounting standards.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash-generating unit to which the asset belongs.
If any indication exists of impairment and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs of disposal and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
Parkway Corporate Limited | 2022 Annual Report | 40
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(f) Plant & equipment (continued)
Derecognition
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the statement of comprehensive income in the period the item is derecognised.
(g)
Income tax
Current tax assets and liabilities for the current year and prior periods are measured at amounts expected to
be recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax
rates and tax laws used for computations are enacted or substantively enacted by the reporting date.
Deferred tax is provided on all temporary differences at reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences except where the deferred income
tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax
losses can be utilised except where the deferred income tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income
tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement
of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
Tax Consolidation
Parkway Corporate Limited and its 100% owned subsidiaries have entered into tax consolidated group which
takes effect from 1 July 2016. Parkway Corporate Limited is the head entity of the tax consolidated group.
Parkway Corporate Limited | 2022 Annual Report | 41
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(h) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
receivables and payables are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component
of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
(i)
Provisions and employee benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made for the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the statement of comprehensive income net of
any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the reporting date. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
Employee leave benefits
i. Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries including non-monetary benefits, annual leave and accumulating sick leave
due to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’
services up to the reporting date and are measured at the amounts expected to be paid when the liabilities
are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured
at the rates paid or payable.
ii. Long service leave
The liability for long service leave 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 the expected future wage and salary levels, experience
of employee departures and periods of service. Expected future payments are discounted using market yields
at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
Parkway Corporate Limited | 2022 Annual Report | 42
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(k) Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or less.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of outstanding bank overdrafts.
(l)
Trade and other receivables
Trade receivables are initially recognised at their transaction price and other receivables at fair value.
Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows
representing solely payments of principal and interest are classified and subsequently measured at amortised
cost. Receivables that do not meet the criteria for amortised cost are measured at fair value through profit or
loss.
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost. The amount of expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial recognition of the respective financial instrument.
The expected credit losses on these financial assets are estimated based on the Group’s historic credit loss
experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group recognised lifetime expected credit losses
when there has been a significant increase in credit risk since initial recognition. If on the other hand the credit
risk on the financial instrument has not increased significantly since initial recognition, the Group measures
the loss allowance for that financial instrument at an amount equal to expected credit losses within the next
12 months.
(m)
Inventory
Inventories are valued at the lower of cost and net realisable value.
The Group elected to use average cost method to value inventory. When the Group sells a product, the
weighted average cost of all inventory produced or acquired in the accounting period is used to determine
the cost of goods sold. Net realisable value is the estimated selling price in the ordinary course of business,
less the estimated costs necessary to make the sale.
(n) Revenue recognition
Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group expects to be
entitled in exchange for those goods or services.
Revenue from the sale of water treatment related products and rendering of services are recognised at the
point in time based on the amount invoiced to the customer. The normal credit term is 30 days.
Parkway Corporate Limited | 2022 Annual Report | 43
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Other revenue
Interest Income
Income is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net
carrying amount of the financial asset.
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as
income over the period necessary to match the grant on a systematic basis to the costs that it is intended to
compensate. When the grant relates to an asset, it is recognised as deferred income and released to income
in equal amounts over the expected useful life of the related asset.
When the Company receives non-monetary grants, the asset and the grant are recorded gross at nominal
amounts and released to the statement of comprehensive income over the expected useful life and pattern
of consumption of the benefit of the underlying asset by equal annual instalments. When loans or similar
assistance are provided by governments or related institutions with an interest rate below the current
applicable market rate, the effect of this favourable interest is regarded as additional government grants.
(o) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
Own equity instruments (treasury shares) are recognised at cost and deducted from equity. No gain or loss
is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity
instruments.
(p) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Company prior to the end of the financial year that are unpaid and arise when the
Company becomes obliged to make future payments in respect of the purchase of these goods and services.
(q) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the Company adjusted to
exclude any costs of servicing equity (other than dividends) divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the Company adjusted for:
•
•
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
•
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
Parkway Corporate Limited | 2022 Annual Report | 44
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(r)
Investments and Financial assets
Initial recognition and measurement:
Financial assets are classified, at initial recognition, at amortised cost, financial assets at fair value through
profit or loss, fair value through other comprehensive income as appropriate. Other financial assets, are
recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the financial asset.
The Group has not recognised any financial assets at fair value through other comprehensive income.
Subsequent measurement:
The subsequent measurement of other financial assets depends on their classification as described below:
Financial assets at fair value through profit or loss
a)
Financial assetsclassified at “fair value through profit or loss” include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily
required to be measured at fair value. Financial assets at fair value through profit or loss are carried in the
statement of financial position at fair value with net changes in fair value presented in the statement of profit
or loss.
Amortised cost
b)
In order for a financial asset to qualify for measurement as amortised cost, it has to pass both the contractual
cash flow characteristics test as well as the business model test. Under the contractual cash flow
characteristics test, an entity has to assess, whether the cash flows resulting from the financial asset are
solely payments for principal and interest on the outstanding principal amount. Under the business model
test the objective is to hold the financial assets in order to collect contractual cash flows.
Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows
representing solely payments of principle and interest are classified and subsequently measured at amortised
cost using the effective interest rate method. Receivables that do not meet the criteria for amortised cost are
measured at fair value through profit or loss.
(s)
Impairment of financial assets
The Company assesses at each reporting date whether a financial asset or group of financial assets is
impaired, excluding financial assets at fair value through profit or loss (FVTPL).
The Group assesses on a forward looking basis the expected credit loss associated with other financial
assets. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the probability that they
will enter bankruptcy or other financial reorganisation and observable data indicating that there is a
measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults.
For financial assets, the expected credit loss is based on the 12-month expected credit loss. The 12-month
expected credit loss is the portion of lifetime expected credit losses that results from default events on a
financial instrument that are possible within 12 months after the reporting date. However, when there has
been a significant increase in credit risk since origination, the allowance will be based on the lifetime expected
credit loss.
Parkway Corporate Limited | 2022 Annual Report | 45
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(s)
Impairment of financial assets (continued)
The Group considers an event of default has occurred when a financial asset is more than 90 days past due
or external sources indicate that the debtor is unlikely to pay its creditors, including the Group. A financial
asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a
breach of contract, such as a default or past due event has occurred. The Group writes off a financial asset
when there is information indicating the counterparty is in severe financial difficulty and there is no realistic
prospect of recovery.
(t)
Leases
(i)
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset
at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line
basis over the shorter of its estimated useful life and the lease term (where the entity does not have a
purchase option at the end of the lease term). Right-of-use assets are subject to impairment.
(ii)
Lease Liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if
the lease term reflects the Group exercising the option to terminate. The variable lease payments
that do not depend on an index or a rate are recognised as expense in the period on which the event
or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at
the lease commencement date if the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the in-substance
fixed lease payments or a change in the assessment to purchase the underlying asset.
(iii) Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery
and equipment (i.e., those leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option). It also applies the lease of low-value
assets recognition exemption. Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
Parkway Corporate Limited | 2022 Annual Report | 46
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(u) Current versus non-current classification
The Group presents assets and liabilities in the statement of financial position based on current/non-current
classification. An asset is current when it is:
- Expected to be realised or intended to be sold or consumed in the normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realised within twelve months after the reporting period; or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
-
-
-
- There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(v) Treasury shares
Own equity instruments that are issued (treasury shares) are recognised nil value on the date of issue and
deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or
cancellation of the Group’s own equity instruments. The Group records treasury shares as a net of the shares
issued under contributed equity in the consolidated statement of changes in equity.
(w)
Intangible assets
Intangible assets represent identifiable non-monetary assets without physical substance.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated
impairment losses. Internally generated intangibles, excluding capitalised development costs, are not
capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is
incurred.
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite
lives are amortised over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortisation period and the amortisation method
for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates and adjusted on a prospective basis. The amortisation expense
on intangible assets with finite lives is recognised in the consolidated Statement of Comprehensive Income.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, and
when indicators of impairment exist, individually or at the cash-generating unit level. The assessment of
indefinite life is reviewed annually, or when indicators of impairment exist, to determine whether the
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on
a prospective basis.
Parkway Corporate Limited | 2022 Annual Report | 47
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(w)
Intangible assets (continued)
Goodwill
Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred
and the amount recognised for non-controlling interests and any previous interest held over the net
identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess
of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of
the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair
value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in
profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is
tested for impairment annually, and when indicators of impairment exist, individually or at the cash-
generating unit level. For the purpose of impairment testing, goodwill acquired in a business combination is,
from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned
to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the
operation within that unit is disposed of, the goodwill associated with the disposed operation is included in
the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in
these circumstances is measured based on the relative values of the disposed operation and the portion of
the cash-generating unit retained.
Intellectual property
The Group’s intellectual property portfolio consists of trade secrets, know-how, trademark and patent. The
Group is still in the process of developing the technology associated with the intellectual property; hence,
the corresponding asset is not yet available for use.
The Group tests the intangible assets not yet available for use for impairment annually by comparing its
carrying amount with its recoverable amount. The estimated useful life will only be determined and the
corresponding amortisation will be recognised when the corresponding asset is available for use.
(x) Research and development costs
Research costs are expensed as incurred. Development expenditures on an individual project are
recognised as an intangible asset when the Group can demonstrate:
• the technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
• its intention to complete and its ability and intention to use or sell the asset;
• how the asset will generate future economic benefits;
• the availability of resources to complete the asset; and
• the ability to measure reliably the expenditure during development.
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less
any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when
development is complete, and the asset is available for use. It is amortised over the period of expected
future benefit. During the period of development, the asset is tested for impairment annually.
Parkway Corporate Limited | 2022 Annual Report | 48
Notes to Financial Statements (continued)
Note 3: Segment information
The Group has based its operating segment on the internal reports that are reviewed and used by the
executive management team (“Chief Operating Decision Makers”) in assessing performance and in
determining the allocation of resources.
As no substantial exploration related activities occurred during the financial year, exploration related
expenditures were not deemed to be considered a separate segment for reporting purposes as a
consequence, activities in the operating segment are identified by management based on the manner in
which resources are allocated, the nature of the resources provided and the identity of the manager and
country of expenditure. Information is reviewed on a whole of entity basis. At 30 June 2022, all revenues and
material assets are considered to be derived and held in one geographical area being Australia.
Based on these criteria the Group has one operating segment providing water treatment related products
and services, and the segment operations and results are reported internally based on the accounting policies
as described in Note 2 for the computation of the Group’s results presented in this set of financial statements.
Note 4: Income tax
(a) Income tax (benefit)/expense
Current tax
Deferred tax
Total tax (benefit)/expense
(b) Income tax recognised in equity
Deferred tax liability recognised
Total income tax recognised in equity
2022
$
2021
$
-
-
-
-
-
-
-
-
-
-
(c) Numerical reconciliation of income tax expense to
prima facie tax payable
Profit/(loss) from continuing operations before income tax
expense
(2,332,196)
(923,715)
Prima facie tax benefit at the Australian tax rate of 25%
(2021: 26%)
(583,049)
(240,166)
Tax effect of amounts which are not deductible/(taxable) in
calculating taxable income:
Share based payment
Non-deductible expenses
Non-assessable income
Deferred tax assets not brought to account
Income tax (benefit)/expense
30,536
171
(81,451)
633,793
-
(793)
60
(89,571)
330,470
-
Parkway Corporate Limited | 2022 Annual Report | 49
Notes to Financial Statements (continued)
Note 4: Income tax (continued)
(d) Deferred tax assets
Accrued expenses
Lease liability
Business related deduction
Employee entitlement provisions
Other items capitalised for tax purposes
Revenue losses
Deferred tax asset not recognised
Offset against deferred tax liabilities
Total deferred tax assets
(e) Deferred tax liabilities
ROU Assets
Prepayments
Offset against deferred tax assets
Net deferred tax liabilities
87,337
311,442
120,497
46,472
-
1,585,630
2,151,378
(1,830,941)
320,437
(320,437)
-
298,024
22,413
320,437
(320,437)
-
11,440
128,697
145,033
43,660
52,849
1,462,308
1,843,987
(1,700,974)
143,013
(143,013)
-
127,646
15,367
143,013
(143,013)
-
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority. The taxation benefits of certain tax losses and temporary differences
have not been brought to account since it is not probable whether future assessable income would be
derived of a nature and of an amount sufficient to enable the benefits from the deductions to be realised.
Note 5: Key management personnel remuneration
Short-term employee benefits
Post-employment benefits
Termination benefits
Share-based payments
Total compensation
Refer to Note 24 for other related parties transactions.
Note 6: Auditor’s remuneration
2022
$
734,941
69,894
-
47,513
852,348
2021
$
513,244
35,229
-
-
548,473
Details of the amounts paid or payable to the auditor, Nexia Perth Audit Services Pty Ltd, for audit services
provided during FY22 are set out below;
Parkway Corporate Limited | 2022 Annual Report | 50
Notes to Financial Statements (continued)
Note 6: Auditor’s remuneration (continued)
Remuneration of Nexia Perth Audit Services Pty
Ltd for:
- Auditing the statutory financial report of the
Parent company of the Group and its controlled
entity
2022
$
2021
$
70,000
70,000
-
-
Details of the amounts paid or payable to the Company’s former auditor, Ernst & Young (which resigned as
the Company’s auditor, with prior written approval from ASIC, on 1 August 2022), remuneration during FY22
are set out below;
Remuneration of Ernst & Young for:
- Auditing the statutory financial report of the
Parent company of the Group and its controlled
entity
- research & development tax concession
- tax compliance
Note 7: Loss per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net loss
Loss used in calculating basic and diluted loss per share
2022
$
2021
$
213,839
24,364
12,360
250,563
2022
$
(0.11)
(0.11)
(2,332,196)
(2,332,196)
47,570
22,889
31,930
102,388
2021
$
(0.04)
(0.04)
(923,715)
(923,715)
Number
Number
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
2,205,758,441
2,211,937,227
As of 30 June 2022, a total of 748,875,228 potential ordinary shares had been issued, including 748,875,228
(2021: 481,444,443) options and nil (2021: 246,600,643) partly paid shares respectively. As the Group
incurred a loss for the year ended 30 June 2022 and 2021, the effect of options on issue is considered to be
antidilutive and thus not factored in determining the diluted earnings per share.
Note 8: Cash and cash equivalents
Cash at bank and on hand
2022
$
4,003,404
4,003,404
2021
$
7,452,866
7,452,866
Parkway Corporate Limited | 2022 Annual Report | 51
Notes to Financial Statements (continued)
Note 9: Trade and other receivables
Current
Trade debtors
GST Receivables
Other Receivables
Non-Current
Other receivables
2022
$
2021
$
570,911
25,224
19,132
615,266
89,847
89,847
196,210
7,269
5,865
209,344
45,000
45,000
Trade debtors are non-interest bearing and are generally on 30-90 days terms.
For trade and other receivables, the Group has applied the standard’s simplified approach and has
calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix
that is based on the Group’s historical credit loss experience for customer groups, adjusted for forward-
looking factors specific to the debtors, industry payment profiles and the economic environment. As at 30
June 2022, an ECL of $170,761 was recognised (2021: $17,977).
Other receivables – Non-Current relates to security bonds held with a reputable Australian bank and rental
bond paid.
Note 10: Inventories
Inventories
Note 11: Plant and equipment
Office equipment at cost
Less accumulated depreciation
Plant and equipment at cost
Less accumulated depreciation
Computers & software at cost
Less accumulated depreciation
Furniture fixtures at cost
Less accumulated depreciation
Motor vehicles at cost
Less accumulated depreciation
Total plant, equipment & motor vehicles
2022
$
1,518,088
1,518,088
2021
$
671,732
671,732
2022
$
2021
$
66,697
(34,757)
31,939
117,248
(87,918)
29,330
75,053
(47,973)
27,080
99,039
(37,207)
61,832
162,894
(47,770)
115,124
265,305
60,137
(21,986)
38,151
117,248
(76,255)
40,993
60,440
(41,303)
19,137
91,570
(15,391)
76,179
121,287
(9,133)
112,154
286,614
Parkway Corporate Limited | 2022 Annual Report | 52
Notes to Financial Statements (continued)
Note 11: Plant and equipment (continued)
Office
Equipment
$
Plant &
Equipment
$
Computers
& Software
$
Furniture
Fixtures
$
Motor
Vehicles
20,272
(9,131)
32,510
(5,500)
38,151
6,209
-
38,620
(3,836)
40,993
-
-
20,100
(963)
19,137
-
-
82,926
(6,747)
76,179
-
-
121,287
(9,133)
112,154
Total
$
26,481
(9,131)
289,238
(26,179)
286,614
Office
Equipment
$
Plant &
Equipment
$
Computers
& Software
$
Furniture
Fixtures
$
Motor
Vehicles
Total
$
38,181
-
6,559
40,993
-
-
(12,771)
31,939
(11,663)
29,330
19,137
-
14,613
(6,670)
27,080
76,179
-
7,469
112,154
(10,751)
42,357
286,614
(10,751)
70,998
(21,816)
61,832
(28,636)
115,124
(81,556)
265,305
Year ended 30 June 2021
Opening net carrying value
Disposal
Additions
Depreciation charge for the
year
Closing net carrying value
Year ended 30 June 2022
Opening net carrying value
Disposal
Additions
Depreciation charge for the
year
Closing net carrying value
Note 12: Leases
Amounts recognised in the balance sheet relating to leases:
Right of use assets
Buildings
Opening net book amount
Additions
Depreciation expense
Closing net book amount
Cost
Accumulated depreciation
Net book amount
Lease Liabilities
Current
Non-current
2022
$
2021
$
1,192,095
490,947
490,947
851,558
(150,410)
1,192,095
517,740
-
(26,793)
490,947
1,369,298
(177,203)
1,192,095
517,740
(26,793)
490,947
173,046
1,044,944
1,217,990
-
494,988
494,988
Parkway Corporate Limited | 2022 Annual Report | 53
Notes to Financial Statements (continued)
Note 12: Leases (continued)
Location
Sunshine North, VIC
Right-of-use asset
Commencement
Date
11/01/2021
Term
(Months)
60
Option
(Months)
36
Expiry
11/01/2029
Building and land
Cost
Adjustment for the initial cost recognition
Less accumulated depreciation
Carrying amount
Lease liabilities
Opening balance
Additions
Accretion of interest
Payment
As at 30 June
In relation to the right-of-use assets and lease liabilities the
following amounts were recognised in profit or loss:
Depreciation expense
Interest expense
Expense relating to short-term and low value leases (included in
General and Administration expenses)
Total amount recognised in profit or loss
2022
$
2021
$
517,740
8,721
(85,895)
440,566
517,740
-
(26,793)
490,947
2022
$
494,988
-
19,811
(57,835)
456,964
2021
$
-
485,935
9,053
-
494,988
2022
$
2021
$
59,102
19,811
93,661
172,574
26,793
9,053
36,016
71,862
Location
Yarrawonga, NT
Right-of-use asset
Commencement
Date
14/09/2021
Term
(Months)
24
Option
(Months)
96
Expiry
13/05/30
Building and land
Cost
Less accumulated depreciation
Carrying amount
2022
$
2021
$
842,837
(91,307)
751,530
-
-
-
Parkway Corporate Limited | 2022 Annual Report | 54
Notes to Financial Statements (continued)
Note 12: Leases (continued)
Lease liabilities
Opening balance
Additions
Accretion of interest
Payment
As at 30 June
In relation to the right-of-use assets and lease liabilities the
following amounts were recognised in profit or loss:
2022
$
2021
$
-
842,837
1,458
(83,269)
761,026
2022
$
2021
$
Depreciation expense
Interest expense
Expense relating to short-term and low value leases (included in
General and Administration expenses)
Total amount recognised in profit or loss
91,307
1,458
5,005
97,770
Note 13: Sales revenue
Set out below is the disaggregation of the Group’s revenue from contracts with customers:
-
-
-
-
-
-
-
-
-
Type of goods or service
Sale of water treatment related products
Commercial water treatment solutions
Industrial water related solutions
Total revenue from contracts with customers
Timing of revenue recognition
Goods and services transferred at a point in time
Total revenue from contracts with customers
2022
$
2021
$
1,045,571
517,571
1,812,477
3,375,619
63,360
263,939
-
327,299
2022
$
2021
$
3,375,619
3,375,619
327,299
327,299
At 30 June 2022, all revenue from contract with customers are considered to be derived and held in one
geographical area being Australia.
Note 14: Government Grant
During this financial year, the Consolidated entity received government grant due to Covid-19 and tax credits:
Cash flow boost payment
JobKeeper Payment
R&D incentives
Total
2022
$
-
-
225,802
225,802
2021
$
50,000
43,200
290,768
383,968
Parkway Corporate Limited | 2022 Annual Report | 55
Notes to Financial Statements (continued)
Note 15: Intangible assets
Intellectual property
-
-
-
aMES® technology
iBC® technology
IP Portfolio
Goodwill – Multi-wet
Goodwill - Mawpump
Total intangible assets
2022
$
3,174,267
109,032
40,000
300,407
1,275,780
4,899,486
2021
$
3,174,267
109,032
40,000
426,407
-
3,749,706
The Group’s intellectual property portfolio consists of trade secrets, know-how, trademarks and patents. At
30 June 2022, the Group is still in the process of developing the technology associated with the intellectual
property; hence, the corresponding asset is not yet available for use, however is the subject of various
technoeconomic evaluations.
At 30 June 2022, an annual impairment test was performed. The recoverable amount was assessed by
reference to a ‘value in use’. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. The recoverable amount was in excess of the carrying value
and no impairment was recognised.
The Group amortised the customer Goodwill of $26,000 during the year as the estimated useful life of
customer goodwill and the corresponding asset’s value for available for use reduced.
Acquisition of Mawpump
On 3 September 2021, the Group, through its wholly owned subsidiary, Parkway Process Solutions Pty Ltd,
entered into a Share Purchase Agreement to acquire the business of Mawpump, an established Darwin
based pump supplies business, to acquire 100% of all shares in the capital of Mawpump. The acquisition of
Mawpump will support the Group’s evaluation and potential participation in the delivery of the project
opportunities and other opportunities elsewhere in Australia.
The fair values of the identifiable assets as at the date of acquisition were:
Cash at bank
Trade Debtors
Liabilities
Total identifiable net assets at fair value
537,327
294,380
(318,284)
Goodwill arising on acquisition
Purchase consideration
Purchase consideration
Cash consideration
Deferred Equity payment
Deferred Cash payment (Note 8)
Total purchase consideration
$
$
513,423
1,275,780
1,789,203
$
1,228,423
105,780
455,000
1,789,203
From the date of acquisition, Mawpump contributed $1,929,647 of revenue and a loss of $465,393 to the
net loss before income tax of the Group. If the acquisition had taken place at the beginning of the year, the
Group’s revenue would have been $2,679,087 and profit before tax for the Group would have been
$169,525. The contingent consideration consists of $455,000 cash payable 12 months after acquisition
date, provided that Mawpump meets and exceeds a baseline revenue threshold.
Parkway Corporate Limited | 2022 Annual Report | 56
Notes to Financial Statements (continued)
Note 15: Intangible assets (continued)
Given the timing of the acquisition, the identification and valuation of the assets and liabilities acquired are
provisional as management is currently in the process of completing the acquisition accounting.
Management has assessed that there were no impairment triggers in relation to the unallocated provisional
goodwill as at 30 June 2022.
Acquisition of Multi-wet
On 1 March 2021, the Group, through its wholly owned subsidiary, Parkway Process Solutions Pty Ltd,
entered into an agreement to acquire 100% of the business of Multi-Wet, a provider of industrial water
treatment related products, chemicals, and services in Western Australia. This acquisition is generating
revenue and support the Group’s efforts to deliver highly differentiated and integrated water-treatment
related solutions.
The fair values of the identifiable assets as at the date of acquisition were:
2022 (final)
2021
(provisional)
Stocks
Customer list
Plant and equipment
Deferred tax liability
Total identifiable net assets at fair value
50,000
97,500
70,000
(25,350)
$
$
$
$
50,000
-
70,000
-
120,000
192,150
Goodwill arising on acquisition on the acquisition date
Purchase consideration
254,257
446,407
426,407
546,407
The purchase consideration is comprised of:
Purchase consideration
Cash consideration
Contingent consideration
Total purchase consideration
2022
2021
$
446,407 446,407
- 100,000
446,407 546,407
Management has assessed that there was an impairment trigger in relation to goodwill as at 30 June 2022,
as contractually obligated sales target were not achieved resulting in contingent consideration being
reduced by $100,000, hence, an impairment amounting to $100,000 was recognised.
Note 16: Trade and other payables
Current
Unsecured liabilities
Trade payables
2022
$
2021
$
1,121,749
1,121,749
328,086
328,086
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
(a) Relates to the Tranche 2 consideration amounting to $50,000 which is payable in shares as part of iBC®
technology acquisition transaction. The Tranche 2 consideration 3,876,525 shares were issued on 8
July 2021 as announced to the market.
Parkway Corporate Limited | 2022 Annual Report | 57
Notes to Financial Statements (continued)
Note 17: Deferred payments
Current
Contingent consideration payable in shares
Contingent consideration on the acquisition of Multi-wet
Contingent consideration payable in cash on the acquisition of
Mawpump
Note 18: Provisions
Current
Employee benefits
Non Current
Employee benefits
Note 19: Contributed equity
2022
$
-
-
455,000
455,000
2021
$
50,000
100,000
-
150,000
2022
$
185,888
185,888
2022
$
-
-
2021
$
100,886
100,886
2021
$
22,767
22,767
2021
2021
No.
$
No.
$
Ordinary shares
- fully paid
2,213,262,446
35,475,444
2,196,309,541
35,383,574
When managing capital (which is defined as the Company's total equity amounting to $9,654,125 (2021:
$11,868,588), the Board's objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders. The Board also aims to
maintain a capital structure that ensures the lowest cost of capital available for future development activity.
The Company is not subject to any externally imposed capital requirements.
Movements in fully paid ordinary shares on issue of the legal parent are:
At the beginning of reporting year
Issue of nil shares (2021: 469,808,889
shares) via share placements *
Sale of nil treasury shares (2021:24,000,000
shares)
Issue of 16,283,047 shares (2021: 5,800,000
shares) as share-based payments
Issue of 669,858 shares (2021: nil shares) for
the exercised options
Equity Raising Costs
At the end of the reporting year
2022
Number
2,196,309,541
2021
Number
1,720,700,652
2022
$
35,383,574
2021
$
28,867,382
-
-
469,808,889
-
-
-
6,852,280
194,000
16,283,047
5,800,000
79,000
85,900
669,858
-
12,870
-
-
2,213,262,446
-
2,196,309,541
-
35,475,444
(615,988)
35,383,574
*2021:Free attaching 145,777,779 options were issued to the shareholders who participated share placement.
Parkway Corporate Limited | 2022 Annual Report | 58
Notes to Financial Statements (continued)
Note 20: Reserves
Equity based payment reserve
Partly Paid Shares reserve
Note
20A
20B
Reconciliation of total options on issue:
2022
$
2021
$
1,178,047
-
1,178,047
990,493
123,300
1,113,793
Options
issued
as share-
based
payments
113,499,999
32,500,000*
(5,000,000)
140,999,999
22,000,000**
(500,000)
162,499,999
Other options
issued
Reserved shares
issued
Total options on
issue
244,792,665
145,777,779
(50,126,000)
340,444,444
246,600,643
(669,858)
586,375,229
3,150,000
-
(3,150,000)
-
-
-
-
361,442,664
178,277,779
(58,276,000)
481,444,443
268,600,643
(1,169,858)
748,875,228
2022
Number
2022
WAEP
2021
Number
2021
WAEP
481,444,443
268,600,643
(1,169,858)
748,875,228
748,875,228
$0.0300
$0.0200
$0.0200
$0.0200
$0.0200
358,292,664
178,277,779
(55,126,000)
481,444,443
481,444,443
$0.0200
$0.0300
$0.0200
$0.0300
$0.0300
As at 30 June 2020
Issued during the year
Expired during the year
As at 30 June 2021
Issued during the year
Expired during the year
As at 30 June 2022
Note 20A: Options
Outstanding at 1 July
Granted during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
* Total of 32,500,000 options were issued to consultants 30,000,000 options and employee 2,500,000 options, please
refer to note 19.1 and 19.2.
** Options issued to the directors and employees
The weighted average remaining contractual life of share options outstanding as at 30 June 2022 was 2.004
years (2021: 1.53 years).
The average exercise price of options granted during the year was $0.02 (2021: $0.03).
The range of exercise prices for options outstanding at the end of the year was $0.02 to $0.03 (2021: $0.02
to $0.03).
Parkway Corporate Limited | 2022 Annual Report | 59
Notes to Financial Statements (continued)
Note 20: Reserves (continued)
Reconciliation of value of equity-based payment reserve
At the beginning of reporting year
Capital raising costs for options issued to consultants.
30,000,000 options with exercise price of $0.03.
Amount expensed for options issued to employees as part
of employee incentive plan 20,000,000 options with
exercise price of $0.02 and 2,000,000 options with
exercise price of $0.03.
Note
19.1
2021
$
862,161
2021
$
862,161
-
125,281
19.2
64,254
3,051
Partly paid shares converted to options
19.3
123,300
-
At the end of the reporting year
1,178,047
990,493
19.1
19.2
The issue of 30,000,000 $0.03 options exercisable on or before 03 Feb 23 to consultants.
The issue of 20,000,000 $0.02 options exercisable on or before 16 Dec 22 and exercisable on or before 16 Dec 24 to the
employees & directors and 2,000,000 $0.03 options exercisable on or before 2 Feb 23.
Note 20B: Partly paid shares reserve
On 27 July 2021 the company cancelled the uncalled amount on 246,600,643 partly paid shares, with holders
of these partly paid shares being issued Options exercisable at $0.019 each in exchange for the partly paid
shares on a 1-for-1 basis.
Note 21: Equity based payments
Expenses arising from share-based payment and option-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Options/Shares issued to the employee recognised
Shares issued to employees
Total equity based payments expense
Note
21.1
21.2
2022
$
64,254
29,000
93,254
2021
$
34,551
-
34,551
21.1 During the current financial year, shares were issued to employee as part of employee incentive plan.
21.2 5,450,000 shares issued to employees as part of their remuneration upon the satisfactory completion of their 12-
months service.
The fair value of the options granted for the year ended 30 June 2022 and 30 June 2021 were estimated on
the date of grant using the following assumptions and valuing using a Black-Scholes model, the fair value of
the services provided was consider to equal the fair value determined using the Black-Scholes model:
Parkway Corporate Limited | 2022 Annual Report | 60
Notes to Financial Statements (continued)
Note 21: Equity based payments (continued)
Number of options issued
Dividend yield (%)
Expected volatility* (%)
Risk-free interest rate (%)
Expected life (years)
Share price
Exercise price ($)
Value per option
Grant date
2022
2,000,000
Nil
75
1.5
1.572
$0.013
$0.03
$0.0042
08 July 2021
2022
5,000,000
Nil
75
1.5
1.441
$0.013
$0.02
$0.0012
08 July 2021
2022
15,000,000
Nil
75
1.5
3
$0.01
$0.02
$0.0012
16 December 2021
2021
30,000,000
Nil
75
1.5
2
$0.017
$0.03
$0.0042
03 February 2021
2021
2,500,000
Nil
75
1.5
1.87
$0.008
$0.02
$0.0012
03 February 2021
* Volatility was determined using considered judgement as to the volatility of the share price over the vesting period.
All shares issued as equity-based payments were issued for nil cash consideration and were valued at market
fair value which was considered to approximate the fair value of the services provided.
Note 22: Commitments
(i) The Company has certain obligations with respect to Research Projects and the minimum expenditure
requirements are as follows:
Within 1 year
1 to 2 years
Total
2022
$
2021
$
125,000
125,000
250,000
90,000
90,000
180,000
The commitments may vary depending upon additions or relinquishments of funding agreements. The
above figures are based on the agreements as at 30 June 2022. The figures are adjusted on the
anniversary date of each funding projects. During the financial year, the Company recognised $136,005 of
research expense (2021: $444,287).
Note 23: Contingent liabilities
There are no contingent liabilities as at 30 June 2022 (2021: Nil).
Note 24: Related party transactions
Fees were paid to Horn Resources Pty Ltd, a
company of which Robert Van der Laan is a director
and shareholder. Fees included investor relations,
corporate advisory, office accommodation, accounting
staffs, administrative staffs and exploration staff.
2022
2021
-
-
53,941
53,941
Trade and other payables to related party as at 30 June 2022 amounted to nil (30 June 2021: Nil).
All related party transactions are considered to be on an arms’ length basis.
Parkway Corporate Limited | 2022 Annual Report | 61
Notes to Financial Statements (continued)
Note 25: Cash flow information
Reconciliation of cash flow from operations with loss from ordinary activities after income tax
Loss from ordinary activities after income tax
Depreciation and amortisation
Expenses settled via equity issues
Fair value movement of financial assets
Changes in assets and liabilities
(Increase)/decrease in receivables
(Increase)/decrease in other assets
(Increase)/decrease in inventories
Increase/(decrease) in payables
Increase/(decrease) in provisions
Cash flows used in operating activities
2022
$
2021
$
(2,332,196)
267,756
93,254
-
(450,769)
(9,237)
(846,356)
1,096,289
62,235
(923,715)
58,633
34,551
(850,546)
(250,672)
(40,489)
(671,732)
95,674
102,692
(2,119,024)
(2,445,604)
Note 26: Financial risk management objectives and policies
The Company’s principal financial instruments comprise cash and short-term deposits. The main purpose of
the financial instruments is to finance the Company’s operations. The Company also has other financial
instruments such as trade debtors and creditors which arise directly from its operations. The main risks arising
from the Group’s financial instruments are interest rate risk, credit risk and equity price risk. The board reviews
and agrees policies for managing each of these risks and they are summarised below:
Interest Rate Risk
(a)
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 is set out in the following table. Also included is the effect on profit
and equity after tax if interest rates at that date had been 10% higher or lower with all other variables held
constant as a sensitivity analysis.
The Group has not entered into any hedging activities to manage interest rate risk. In regard to its interest
rate risk, the Group continuously analyses its exposure. Within this analysis consideration is given to potential
renewals of existing positions, alternative investments and the mix of fixed and variable interest rates.
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit
$
Equity
%
Profit
$
Equity
$
2022
Financial Assets
Cash
Receivables
1.25
4,003,404
-
-
45,000*
-
615,266
4,003,404
660,266
-4,204
-
4,204
-
Total Financial Assets
4,003,404
45,000
615,266
4,663,670
Financial Liabilities
Trade creditors
Total Financial Liabilities
-
-
- 1,121,749
1,121,749
- 1,121,749
1,121,749
Parkway Corporate Limited | 2022 Annual Report | 62
Notes to Financial Statements (continued)
Note 26: Financial risk management objectives and policies (continued)
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit
$
Equity
%
Profit
$
Equity
$
2021
Financial Assets
Cash
Receivables
1.25
7,452,866
-
-
45,000*
-
209,344
7,452,866
254,344
-7,826
-
7,826
-
Total Financial Assets
7,452,866
45,000
209,344
7,707,210
Financial Liabilities
Trade creditors
Total Financial Liabilities
-
-
-
-
203,846
203,846
203,846
203,846
*Credit card security deposit held in National Australia Bank with the interest rate of 0.05% p.a.
A sensitivity of 10% (2021: 10%) has been selected as this is considered reasonable given the current level
of both short term and long term Australian dollar interest rates. A -10% sensitivity would move short term
interest rates at 30 June 2022 from around 1.25% to 1.13% (2021: 1.25% to 1.13%) representing a 12.0
basis points (2021: 12.0 basis points), which is 8.5 basis points (2021: 8.5 basis points) net of tax.
Liquidity Risk
(a)
The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities
required to meet the current commitments, through the continuous monitoring of actual cash flows.
Maturity analysis of financial liabilities based on contractual maturity
Year ended 30
June 2022
Lease liabilities
Trade and other
payables
On demand
Less than
3 months
3 to 12
months
1 to 5 years
>5 years
Total
$
$
$
$
$
$
-
43,261
129,785
464,420
580,524
1,217,990
1,121,749
-
1,121,749
1,121,749
43,261
129,785
464,420
580,524
2,339,739
All payables are due within 30 days, which is consistent with the prior year.
Fair Values
(b)
For financial assets and liabilities, the fair value approximates their carrying value. No financial assets and
financial liabilities are readily traded on organised markets in standardised form.
(c) Credit Risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument
leading to financial losses. The Consolidated entity is exposed to credit risk from its operating activities,
financing activities including deposits with banks. The credit risk control procedures adopted by the
Consolidated entity is to assess the credit quality of the institution with whom funds are deposited or invested,
taking into account its financial position and past experiences.
Parkway Corporate Limited | 2022 Annual Report | 63
Notes to Financial Statements (continued)
Note 26: Financial risk management objectives and policies (continued)
The maximum exposure to credit risk on financial assets of the Consolidated entity which have been
recognised on the statement of financial position is generally limited to the carrying amount. The Group’s
other receivables relate to a R&D claim from the ATO, which was subsequently collected in full and therefore
carries insignificant expected credit loss.
Cash is maintained with National Australia Bank, an AA S&P rated bank and therefore carries insignificant
expected credit loss.
Equity price risk
(d)
The Group’s listed equity securities are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Group manages the equity price risk through the Group’s
Board of Directors reviewing and approving all equity investment decisions. At the reporting date, the
exposure to listed equity securities recognised as financial assets fair value through profit or loss was nil
(2021:Nil).
Note 27: Controlled entities
Parkway Corporate Limited is the ultimate parent entity of the consolidated group.
The following are controlled entities at the reporting date and have been included in the consolidated financial
statements. All shares held are ordinary shares.
Name
Parkway Ventures Pty Ltd
Parkway Process Technologies Pty Ltd
Country of
Incorporation
Australia
Australia
Percentage
Interest Held %
2022
100%
100%
2021
100%
100%
Parkway Process Solutions Pty Ltd
Australia
100%
100%
Consolidated Potash Corporation Ltd*
Activated Water Technology Pty Ltd
Australia
Australia
100%
100%
100%
100%
Mawpump Pty Ltd
Australia
100%
-
Principal activities
Investment Holding
Holding intellectual
property
Providing water
treatment related
products and
services
Exploration
Research and
Development
Providing water
treatment related
products and
services in NT
*The Company held a 40% equity interest in a single mining exploration project, the Karinga Lakes Potash
Project (“KLPP”). The KLPP, located in the Northern Territory, is a joint venture between Verdant Minerals
Ltd and Consolidated Potash Corporation Ltd, which is administered through Territory Potash Pty Ltd. A fair
value of nil has been allocated to this interest given a range of uncertainties in relation to the future of the
project.
Parkway Corporate Limited | 2022 Annual Report | 64
Notes to Financial Statements (continued)
Note 28: Parent entity disclosure
Assets
Current assets
Non current assets
Total Assets
Liabilities
Current liabilities
Non current liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Loss for the year
Other comprehensive income
Total comprehensive loss for the financial year
Parent
2022
Parent
2021
3,225,116
9,014,008
7,479,863
5,524,912
12,239,124
13,004,775
486,585
1,549,000
2,035,585
219,559
1,549,001
1,768,560
10,203,539
11,236,215
35,475,444
1,178,047
(26,449,952)
35,383,574
1,113,793
(25,261,152)
10,203,539
11,236,215
Parent
2022
(1,188,800)
-
(1,188,800)
Parent
2021
(853,930)
-
(853,930)
The commitments and contingencies and commitments of the parent entity are the same as those for the
consolidated entity.
Note 29: Subsequent events
Research Grant Funding
After the reporting date, the Company entered into a contract with Victoria University and the University of
Technology Sydney, to facilitate the Company’s receipt of grant funding as part of a circular economy focused
research hub which is being supported by the Australian Research Council (“ARC”), for usage in supporting
the Company’s innovative research and development (“R&D”) and associated commercialisation related
activities.
The Company has developed a project titled, “An integrated water treatment process for valuable nutrient
recovery and purification from industrial waste streams”, to pursue with the application of the grant funds.
The overall budget for the project developed by the Company is in the order of $1,140,000 (excluding in-kind
contributions), over a period of 4 years, whereby the Company will be required to make an annual contribution
in the order of $125,000, for the duration of the project. The balance of project funding ($640,000) will be
provided by the ARC and the Company’s longstanding research partner Victoria University, leveraging
Parkway’s contribution to provide a larger project budget.
Parkway Corporate Limited | 2022 Annual Report | 65
Notes to Financial Statements (continued)
Note 29: Subsequent events (continued)
iBC® Feasibility Study Related Experimentation
The production of caustic soda (sodium hydroxide) is a key component of the iBC® based flow sheet being
evaluated by the Company, for the purposes of the feasibility study awarded by QGC (a Shell group
company). As part of the iBC® based experimentation and desktop piloting related activities, in late July
2022, the Company successfully produced the first ultrahigh concentration (52.6%) sodium hydroxide
solution, from a concentrated waste brine derived from one of QGC’s CSG wastewater treatment plants.
Whilst the sodium hydroxide production is yet to be fully optimised, this is the highest concentration of sodium
hydroxide produced to date through the application of the iBC® technology. Encouragingly, the concentration
of the produced sodium hydroxide, is well above the highest concentration of sodium hydroxide commercially
available as a liquid product (50% w/w).
During Q1 of FY23, the Company has continued to perform extensive experimentation and piloting, in order
to establish a range of optimal process conditions for the iBC® based flow sheet. These activities have been
performed on concentrated brines (~6,000 L) sourced from two of QGC’s largest CSG wastewater treatment
plants. Once the optimal process conditions have been established at bench scale, the preferred iBC® based
flow sheet will be further optimised by performing larger scale piloting, on the New iBC® Pilot Plant (as shown
in Figure 1 on page 13 of this Report).
Expanded Operations
In order to support ongoing growth, particularly the planned expansion of fabrication, assembly and testing
related capabilities, during May and June 2022, the Company secured leases to two additional warehouse
(with integrated office) facilities.
In late July 2022:
• PPS-Perth: the West Australian operations of the Company relocated to a new and much larger
(~2,500 m2) warehouse complex in Bayswater (Perth), incorporating a large warehouse area, office
facilities, store, and a range of laydown areas suitable for the planned expansion of operations; and
• PPS-Melbourne: the Company also took possession of a second warehouse (664 m2) in the Bunnett
Business Park, which given the proximity to the existing PPS warehouse, will enable office and
warehouse operations to be segregated from a range of workshop related activities.
The enlarged footprint will enable the Company to significantly expand both the scale and nature of
operations, which will further support the Company’s aspirations of becoming a leading technology leveraged
industrial water treatment company.
Other than the above, there have not been any other matters that have arisen after balance date that have
significantly affected, or may significantly affect, the operations and activities of the Company, the results of
those operations or the state of affairs of the Company in future financial years other than disclosed elsewhere
in this financial report.
Parkway Corporate Limited | 2022 Annual Report | 66
Directors’ Declaration
In the opinion of the directors of Parkway Corporate Limited:
(a)
the financial statements and notes set out on pages 31 to 66 are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position of the Company as at 30 June 2022
and of its performance, as represented by the results of its operations and its cash flows,
for the year ended on that date; and
complying with Accounting Standards in Australia and the Corporations Regulations
2001;
the financial statements and notes also comply with International Financial Reporting Standards
as disclosed in Note 2(c); and
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
(b)
(c)
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 year ended 30 June 2022.
This declaration is made in accordance with a resolution of the directors.
Bahay Ozcakmak
Group Managing Director & CEO
Melbourne
Dated: 30 September 2022
Parkway Corporate Limited | 2022 Annual Report | 67
Independent Auditor’s Report to the Members of Parkway Corporate Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Parkway Corporate Limited (“the Company”) and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated
statement of 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, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for
the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
| 68
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
Funding and liquidity
(Refer to note 19: Contributed equity)
▪ The Group's
primary
activities
the
commercialisation of proprietary brine processing
technologies, with applications in the energy and
mining sectors (“Technology Commercialisation
Business”) and;
are
▪ The development of an integrated water treatment
products and services business, to complement
and
Technology
Commercialisation Business.
support
entity’s
the
These activities are funded through equity raising and
the revenue generating activities of the group.
The adequacy of funding and liquidity, as well as the
relevant impact on the going concern assessment, is a
key audit matter due
the significance of
management’s judgments and estimates in respect of
this assessment.
to
How our audit addressed the key audit
matter
We evaluated the Group’s funding and liquidity
position at 30 June 2022 and its ability to repay its
debts as and when they fall due for a minimum of
12 months from the date of signing the financial
report. Our procedures included, amongst others:
▪ obtained management’s cash flow forecast for
the period up to September 2023;
▪ assessed the reliability and completeness of
management’s assumptions by comparing the
forecast cash flows to those of the previous
period and in the context of our understanding
of the Group’s future plans and operating
conditions; and
▪ considered events subsequent to year end to
determine whether any additional facts or
information have become available since the
date on which management made
its
assessment.
Business acquisition of Mawpump Pty Ltd
Our procedures included, amongst others:
(Refer to note 15: Intangible assets)
During the year, the Group acquired the business of
Mawpump Pty Ltd. The acquisition has been
accounted for in accordance with AASB 3 Business
Combinations.
The business combination was considered to be a key
audit matter due to the following:
▪ Accounting for this transaction is a complex and
judgmental exercise. Management is required to
determine the fair value of the assets acquired and
liabilities assumed, in particular in determining the
allocation
and
separately identifiable intangible assets with the
residual being goodwill; and
of purchase
consideration
▪ We read the acquisition agreement to
understand the key terms and conditions;
▪ We agreed the fair value of consideration paid
to supporting evidence;
▪ We obtained audit evidence
the
acquisition-date assets and liabilities of the
business were stated at fair value based on
the best available information at the balance
date;
that
▪ We considered
for
the accounting
the
difference between consideration paid from
identifiable assets acquired, having
the
the Group’s application of
regard
accounting concepts in accordance with AASB
3 Business Combinations; and
to
▪ The size of the acquisition has a significant impact
on the Group’s financial statements.
▪ We assessed the adequacy of the Group’s
disclosures in the financial report.
| 69
Carrying value of intangible assets
Our procedures included, amongst others:
▪ We
critically
evaluated management’s
methodology in the value-in-use model and
the basis for key assumptions;
▪ We reviewed the mathematical accuracy of
the value-in-use model;
▪ We performed sensitivity analysis around the
key inputs used in the model;
▪ We considered the appropriateness of the
discount rate used;
▪ We considered value-in-use to the carrying
amount of the cash-generating unit; and
▪ We assessed the appropriateness of the
disclosures included in the relevant notes to
the financial report.
(Refer to note 15: Intangible assets)
The carrying value of intangible assets includes
technology and intellectual property, and goodwill
from business acquisitions during the current year and
the prior year.
Intangible assets at 30 June 2022 were as follows:
Type
Intellectual property
- aMES® technology
- iBC® technology
-IP Portfolio
Goodwill – Multi-wet
Goodwill – Mawpump
Total
$
3,174,267
109,032
40,000
300,407
1,275,780
4,899,486
We considered the measurement and carrying amount
of goodwill as well as of other intangible assets as a
key audit matter due to the following:
▪ The evaluation and recoverable amount is based
upon a value-in-use calculation which required
significant judgement and estimation. In addition,
the balance is material to the users of the financial
statement and involved a significant amount of
communication with management.
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
| 70
Responsibilities of the Directors’ for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at The Australian
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf.
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 29 of the Directors’ Report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Parkway Corporate Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Nexia Perth Audit Services Pty Ltd
Muranda Janse Van Nieuwenhuizen
Director
Perth
30 September 2022
| 71
Shareholder Information
Distribution schedules of shareholders and statements of voting rights are set out in Table 1, whilst the
Company’s top twenty shareholders and option holders are shown in Tables 2, 3 and 4. Substantial
shareholder notices that have been received by the Company are set out in Table 5.
Table 1
Shareholder spread as at 28 September 2022
Ordinary shares, with right to attend meetings and vote personally or by proxy, through show of
hands and, if required, by ballot (one vote for each share)
Spread of Holdings
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 - and over
Total number of holders of securities
Total number of securities
Shareholder spread as at 28 September 2022
No. Holders PWN
126
161
118
1,074
1,287
2,766
2,213,280,446
The number of holders holding less than a marketable parcel of the entity’s main class of securities as at 28
September 2022 are as follows:
NUMBER OF HOLDERS
1,123
NUMBER OF UNITS
25,305,241
Table 2
Top twenty shareholders as at 28 September 2022
Shareholder
No. Shares
Percentage
1 ACTIVATED LOGIC PTY LTD
2 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
3 PAN ANDEAN CAPITAL PTY LTD
4 BNP PARIBAS NOMINEES PTY LTD
5 HENADOME PTY LTD
6 HORN RESOURCES PTY LTD
7 MR MARK ANDREW TKOCZ
8 MR PATRICK BERNARD DAVID MCMANUS + MRS VIVIENNE
EDWINA MCMANUS
9 CITICORP NOMINEES PTY LIMITED
10 LIONS BAY CAPITAL INC
11 MR DOUGLAS LEE COPLEY + MRS ELIZABETH COPLEY
12 SNICK INVESTMENTS PTY LTD
13 MR PAUL HOMEWOOD
14 MR GUY LEON BANDUCCI
15 WAH LEN ENTERPRISE SDN BHD
16 NOODLE XTRA ENTERPRISE PTY LTD
17 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
18 MR OLIVER CHARLES PITTS
19 MR PRADIP PATEL
20 HORN NOMINEES PTY LTD
214,420,534
164,312,159
142,000,000
94,307,748
67,500,000
43,445,858
43,200,000
31,572,486
27,577,470
25,000,000
23,000,000
22,000,000
21,000,000
18,000,000
16,666,666
16,500,000
15,830,498
14,665,760
14,000,000
12,250,000
1,027,499,179
9.69
7.42
6.42
4.26
3.06
1.96
1.95
1.43
1.25
1.13
1.04
0.99
0.95
0.81
0.75
0.75
0.72
0.66
0.63
0.55
46.42
Parkway Corporate Limited | 2022 Annual Report | 72
Shareholder Information (continued)
Table 3
Substantial shareholders as at 28 September 2022
Shareholder
ACTIVATED LOGIC PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
PAN ANDEAN CAPITAL PTY LTD
No. of shares Percentage
9.69%
7.42%
6.42%
214,420,534
164,312,159
142,000,000
Voting Rights
The voting rights attached to each class of equity securities are set out below.
(a)
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon
a poll each share shall have one vote.
Unlisted options as at 28 September 2022
Details of unlisted option holders are as follow:
Class of unlisted options
Options exercisable at $0.02 on or before 16 December 2022
Holders of more than 20% of this class
No. Options
310,166,664
0
Parkway Corporate Limited | 2022 Annual Report | 73
Tenement Register
Tenements (Australia) as at 28 September 2022
Australian Projects – Karinga Lakes Potash Project
Tenement ID
EL32249
EL32250
EL32251
Location
Karinga Lakes
Karinga Lakes
Karinga Lakes
State
NT
NT
NT
Interest*
40%
40%
40%
* Following recent satisfaction of the earn-in requirements, as announced on 24 June 2022, the KLPP-JV
parties are working collaboratively to assign the Company’s interest in the KLPP tenements and undertake
the administrative process to register the Company’s interest in a timely manner.
Parkway Corporate Limited | 2022 Annual Report | 74
Member
(cid:28) (cid:29)(cid:27)(cid:29)(cid:26)
(cid:29)
(cid:26)(cid:21)(cid:20)(cid:19)(cid:18)(cid:17)(cid:16)(cid:15)(cid:17)
(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:30)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
parkway-corp.com
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)
(cid:31)(cid:31)
(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:14)(cid:13)(cid:28)(cid:12)(cid:12)(cid:28)(cid:23)(cid:13)(cid:28)
(cid:24)(cid:23)
(cid:29)(cid:28)(cid:27)(cid:26)(cid:25) (cid:24) (cid:30) (cid:23) (cid:22)
(cid:30)
AMGC
ADVANCED MANUFACTURING
GROWTH CENTRE LTD
A S S O C I A T I O N