2024
ANNUAL
REPORT
FOR THE YEAR ENDED 30 JUNE 2024
PARKWAY CORPORATE LIMITED AND
ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
2
TABLE OF CONTENTS
Corporate Directory
3
Chairman’s Letter
4
Directors’ Report
5
Auditor’s Independence Declaration
29
Consolidated Statement of profit or loss and other Comprehensive Income
30
Consolidated Statement of Financial Position
31
Consolidated Statement of Changes in Equity
32
Consolidated Statement of Cash Flows
33
Notes to the Consolidated Financial Statements
34
Consolidated Entity Disclosure Statement
67
Directors’ Declaration
68
Independent Auditor’s Report
69
Shareholder Information
73
Tenement Register
75
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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CORPORATE DIRECTORY
Directors
Ayten Saridas
Bahay Ozcakmak
Penelope Creswell
Stephen van der Sluys
Company Secretary
Amanda Wilton-Heald
Registered and Principal Office
Warehouse 5,
45 Bunnett Street
Sunshine North VIC 3020 Australia
Telephone: +61 (0) 3 9069 3200
Website: www.pwnps.com
Email: ir@pwnps.com
Share Registry
Automic Group
Level 5/191 St Georges Terrace
Perth WA 6000 Australia
Telephone: 1300 288 664
Email: hello@automic.com.au
Auditor
Nexia Perth Audit Services Pty Ltd
3/88 William St
Perth WA 6000 Australia
Telephone: +61 (0) 8 9463 2463
Email: info@nexiaperth.com.au
Stock Exchange Listing
Parkway Corporate Limited shares are listed on the Australian Securities Exchange (ASX: PWN) and the Frankfurt Stock
Exchange (FSE: 4IP).
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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CHAIRMAN’S LETTER
Dear Shareholder,
On behalf of the board, I am pleased to present the Parkway Corporate Limited (“Parkway”)
2024 Annual Report to shareholders.
It has been another eventful year for Parkway, marked by significant progress in our
technology business where our team continued to grow, innovate and execute, as well as
achieve key technology commercialisation related milestones.
During the year we continued to attract further funding to invest in research, development and commercialisation of
our innovative technologies, including through the recent establishment of the Parkway Centre for Brine Technologies
- a dedicated facility for scaling-up our technologies.
In addition to our core technology related activities, during the year we more than doubled the size of our operating
business by growth of our team and productive assets to achieve significantly higher revenues.
Our operating business continued to grow strongly, generating revenues of $8.90 million for FY24 (FY23: $4.25 million),
which contributed to the narrowing of our operating loss for FY24 to $0.73 million (FY23: $1.68 million). Our move to
profitability is now a major priority to enhance our ability to broaden the financing options available to achieve higher
operating performance and entry to major projects.
This significant growth in our operations was supported by our recent strategic acquisition of Tankweld, a leading
industrial engineering solutions provider based in Melbourne. As an established industrial company, embedded in the
water sector since the 1940s, Tankweld has a proven project delivery capability, from design, fabrication and through
to installation and commissioning. This also represents an ideal platform to support the commercialisation of
Parkway’s existing technology assets. More specifically, we believe the acquisition of Tankweld represents an
important countercyclical investment, to secure strategically important capabilities, which will assist us further
accelerate the growth of Parkway.
In addition to the existing project pipeline, Tankweld has recently secured involvement in numerous major projects
which will generate several million dollars of revenue in the year ahead, as well as enable Parkway to support the
fabrication and delivery of larger scale projects with tier-1 industrial and municipal clients.
This represents a pivotal transformation for Parkway from a small-scale technology company with limited project
delivery capabilities, to a provider of more significant and integrated capabilities. Parkway is now increasingly capable
of delivering a diverse range of industrial water, wastewater treatment and infrastructure related projects on a turnkey
(Engineering, Procurement & Construction (EPC) and Design & Construct (D&C)) basis.
As we look ahead, our expanded team is focused on several key technology commercialisation related milestones,
including, most significantly in the Queensland coal seam gas industry, where Parkway has developed a Master Plan
“roadmap” to address the enormous wastewater and salt related challenges facing the industry. We continue to
engage with a range of important stakeholders, including in relation to the potential adoption of our various
technologies, which present significant opportunities to not only improve the sustainability of the industry, but also
provide attractive commercial benefits, including for Parkway.
Our growth during the year continued to be underpinned by a supportive shareholder base, which enabled us to raise
$6.25 million through the placement of shares to local and overseas institutions, professional and sophisticated
investors, with most new shares in the placement taken-up by existing major shareholders.
In this regard, on behalf of the board, I would like to take this opportunity to thank you for your continued support as
a shareholder of Parkway and to welcome all new shareholders.
Yours Sincerely,
Mr. Stephen van der Sluys
Non-Executive Chairman
20 September 2024
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
The Directors present their report on Parkway Corporate Limited (ACN 147 346 334) (“Parkway”, or the “Company”),
and its controlled entities (the “Group”), for Parkway’s financial year ended 30 June 2024 (“FY24”).
Directors
The names and details of Parkway’s Directors in office, for some or all of the financial year, and to the date of this
report unless otherwise stated, are set out below. During FY24 there were no changes to the Board of Directors.
Name
Tenure During Financial Year
Stephen van der Sluys (Non-executive Chairman)
1 July 2023 to 30 June 2024
Bahay Ozcakmak (Group Managing Director & CEO)
1 July 2023 to 30 June 2024
Penelope Creswell (Non-executive Director)
1 July 2023 to 30 June 2024
Ayten Saridas (Non-executive Director)
1 July 2023 to 30 June 2024
Names, qualifications, experience and special responsibilities
Stephen van der Sluys – Non-executive Chairman
Qualifications
BBuild, FAusIMM, FAICD
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
at the time during which Parkway 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 the successful transformation of Jervois.
Other listed company directorships during the last 3 years: None.
Mr van der Sluys is a member of the Audit & Risk Committee, Remuneration Committee (Chairman), and the
Nomination Committee.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
Bahay Ozcakmak – Group Managing Director & CEO
Qualifications
BSc, MABus, DipFin(Inv.), MAICD
Mr Ozcakmak is a highly experienced executive having been engaged as a corporate adviser by a large number of
companies operating in a range of sectors, during the last 20 years. Mr Ozcakmak has extensive corporate
development expertise, including M&A experience in the technology, energy and mining sectors, where he has led the
successful acquisition, development and/or commercialisation of several flagship projects, including major corporate
transactions, mostly with publicly listed companies. In addition to extensive corporate experience in business and
corporate strategy development in the energy and mining sectors, including in a diverse range of commodities, Mr
Ozcakmak has also been focused on creating value through the commercialisation of innovative and sustainable
technologies in these sectors. During two decades of successful technology commercialisation experience, Mr
Ozcakmak has also founded several technology companies, including Activated Water Technologies (“AWT”) and was
the CEO of AWT’s parent company, Consolidated Potash Corporation, up until its acquisition by Parkway. Mr Ozcakmak
is considered a technology commercialisation expert, having successfully led the commercialisation of numerous
technologies in the agtech, biotechnology, water, energy and mining sectors. Since 2015, Mr Ozcakmak has also led a
highly successful collaboration with leading researchers at Victoria University. In recognition of the contributions made
by Mr Ozcakmak to the Institute of Sustainable Industries & Liveable Cities at Victoria University, in May 2020, the
honorary title of Adjunct Associate Professor was conferred upon Mr. Ozcakmak. Mr Ozcakmak has extensive equity
capital market experience, is currently a director of several private and public companies and has previously held
directorships and C-suite roles with numerous companies listed in Australia (“ASX”), Canada (“TSX”) and the UK (“AIM”).
Other listed company directorships during the last 3 years: TSX Venture exchange listed Fidelity Minerals Corp.
(Director June 2019 – March 2021).
Ayten Saridas - Non-executive Director
Qualifications
CPA Australia, BComm, MAppFin
Ms Saridas is a results-driven finance executive with over 30 years of international experience across a broad range of
industries including in oil and gas, mining, retail, infrastructure, property, and financial services. Ms Saridas is a proven
leader with an established reputation in the financial markets, with a solid track record in the investment community
and brings commercial acumen and strength in strategic thinking and delivering solutions for complex financial
situations. Ms Saridas has until recently held CFO and executive roles with Coronado Global Resources, Santos Ltd,
AWE Limited and Woolworths amongst other ASX listed companies. Ms Saridas’s core strengths include working with
companies to develop disciplined capital allocation strategies, drive growth through strategic positioning and
execution of business plans to deliver sustainable profits. Ms Saridas has led the development of corporate strategy,
M&A and IPO transactions, corporate defence and multi-billion dollar capital raisings in support of these achievements.
Other listed company directorships during the last 3 years: Australian Pacific Coal Ltd (Director November 2022 –
Present).
Ms Saridas is a member of the Audit & Risk Committee, Remuneration Committee, and the Nomination Committee.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
Penelope Creswell – Non-executive Director
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 is currently the Head of Environment and Regulatory Compliance
at Cleanaway, a national role she has held since December 2021. 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 Group. 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.
Ms Creswell is a member of the Audit & Risk Committee, Remuneration Committee, and the Nomination Committee.
Company Secretary
Amanda Wilton-Heald
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
Interests in the shares and options of Parkway 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
Parkway were:
Number of ordinary
shares
Number of options over
ordinary shares
Number of Performance
Rights over ordinary
shares
Bahay Ozcakmak
220,737,201
10,000,000*
13,550,000
Penelope Creswell
-
-
-
Stephen Van der Sluys
-
-
-
Ayten Saridas
-
-
-
* 52,424,060 options expired on 28 July 2024.
Dividends
No dividend has been paid or declared for the year ended 30 June 2024 (30 June 2023: nil) 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 FY24 include:
•
the commercialisation of proprietary water, wastewater and brine processing technologies, with applications
in the energy and mining sectors (“Industrial Technology Division”); and
•
the development of an integrated water treatment project delivery capability (“Industrial Operations
Division”), to complement and support the Group’s Industrial Technology Division.
Operating results for the year
The Group’s loss after income tax expense for its FY24 was $734,406 (2023: $1,680,056).
Financial Performance
2024
2023
% Increase/
$
$
(Decrease)
Total income
9,627,625
4,706,614
104%
Loss before tax
(734,406)
(1,680,056)
-49%
Loss after income tax expense
(734,406)
(1,680,056)
-49%
Loss per share (cents)
(0.03)
(0.08)
-55%
The financial position of the Group is presented in the attached Consolidated Statement of Financial Position.
As of 30 June 2024, the Group had a net asset balance of $15,493,611 which is an increase of $7,325,880 from
$8,167,731 as of 30 June 2023. The cash balance increased from $2,003,639 as of 30 June 2023 to $3,492,197 as of
30 June 2024. For further details, refer to the Consolidated Statement of Financial Position.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW (continued)
INTRODUCTION
Parkway is a leading Australian water & wastewater treatment and process technology company. Parkway is focused
on the commercialisation of a portfolio of innovative process technologies in key industrial markets, as Parkway
believes this is an important and effective strategy for addressing various global water related sustainability challenges.
In recent years, Parkway has made significant investments in groundbreaking research and development (R&D) related
activities, including in the acquisition, development, validation and optimisation of a comprehensive portfolio of
cutting-edge industrial water treatment related process technologies.
In support of Parkway’s accelerated technology commercialisation strategy, Parkway primarily operates through two
strategically integrated capacities:
•
Industrial Operations business division is focused on the provision of conventional water and wastewater
treatment related products & services, including fabrication as well as project delivery related services
including installation, for a broad range of predominantly commercial, municipal and industrial clients.
•
Industrial Technology business division is primarily focused on innovative process technology related R&D,
including process screening, evaluation, optimisation and piloting, as well as a range of technology
commercialisation related activities.
As the Industrial Operations division continues to grow and build critical mass, it is increasingly valuable in providing
Parkway with a suitable platform to commercialise its portfolio of proprietary process technologies, being developed
by the Industrial Technology division.
Integrated Water Treatment Capabilities
Parkway has assembled an integrated inhouse project delivery capability, including for the innovative process
technologies being developed and commercialised by Parkway.
As a result of these integrated water treatment related capabilities, Parkway is increasingly capable of delivering a
diverse range of industrial water, wastewater treatment and infrastructure related projects on a turnkey (Engineering,
Procurement and Construction – “EPC” and Design & Construct – “D&C”) basis.
INDUSTRIAL OPERATIONS DIVISION
Industrial Operations are performed through Parkway Process Solutions (PPS) and predominantly focused on the
provision of conventional water and wastewater treatment related products and services, including specialty
fabrication services. In addition, PPS is increasingly involved in integrated project delivery related services including
installation services for a diverse range of commercial, municipal and industrial clients.
supplier of leading global OEM
PRODUCTS
§
We supply 1’000s of products
from 100s of suppliers, including
leading global OEMs.
§
Specialised range of industrial
water treatment related products
including, chemicals, disinfection,
instrumentation, filters and
membranes, pumps and more.
§
We also supply packaged water
treatment systems based on
established processes, including
integrated UF and RO systems.
provider of innovative process
TECHNOLOGY
specialised engineering and workshop
FABRICATION
experienced project delivery and
INSTALLATION
We’ve built a portfolio of high-quality industrial water treatment related capabilities, including:
Enables Parkway to deliver
integrated industrial water treatment related solutions.
§
We have a highly-experienced
process engineering team and
own a portfolio of innovative
process technologies, with highly
valuable applications in industry.
§
Extensive piloting capabilities
through the Parkway Centre for
Brine Technologies.
§
We have established research
partnerships, including with
leading R&D organisations.
§
Experienced mechanical
engineering and design team
focused on constructability.
§
Large modern workshop with
range of industrial equipment
suitable for fabricating in UPVC,
aluminium, stainless steel and
other materials.
§
Established water sector and tier-
1 industrial client base and
experience in fabrication of first-
of-a-kind process plants.
§
Established project execution
capabilities, incorporating range
of construction related trades,
including installation and
commissioning.
§
Nominated delivery partner
across water sector and for
leading industrial clients.
§
Extensive track-record in
delivering landmark complex
projects in the water sector.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW (continued)
Strategic Positioning
Whilst PPS achieved strong operating performance including robust operating revenues during FY24, Parkway
continued to focus on strategically important, particularly technology focused projects, with less emphasis on non-
strategic short-term revenue generation. As a result, projects incorporating more innovative industrial water
treatment solutions, including proprietary process technologies being commercialised by Parkway’s Industrial
Technology (Parkway Process Technologies, PPT) division, remain a key priority. These initiatives involve the design of
modular water treatment (and related process) systems, incorporating PPT technologies, with near-term applications,
including as part of the upstream brine concentration and beneficiation opportunities related to Master Plan, as
outlined in the Industrial Technology Division section, below. On this basis, Parkway continues to make strategic
investments in people, plant, equipment and inventory, with an emphasis on ongoing strategic capability
development. These strategic investments are critical in ensuring Parkway has the capabilities required to deliver,
technology based engineered solutions, as the PPT technology portfolio approaches key commercialisation milestones.
Acquisition of Tankweld
A key milestone for Parkway during FY24 was the acquisition of the Tankweld Group (“Tankweld”), an established
engineering solutions provider based in South-East Melbourne. Following the acquisition of Tankweld on
13 March 2024, in addition to maintaining operational continuity and implementing several process improvement
projects, a key priority has been to integrate Tankweld into Parkway’s broader Industrial Operations Division. In order
to i) improve organisational effectiveness, ii) manage risks, iii) build scalable systems, and iv) provide a platform for
integration with Parkway’s broader Industrial Operations, the Tankweld Workflow Management System was recently
implemented across its operations. These important changes, including development and implementation of the
TWMS is a critical step in transitioning the operations of Tankweld from a conventional “fabricate and install” business
model, to a more specialised “integrated project delivery” business model, consistent with the broader strategic
objectives of Parkway.
Project Delivery Capabilities
As the Industrial Operations of Parkway continue to grow, Parkway is increasingly involved in the design, fabrication
and installation of complex water and wastewater treatment related infrastructure. As outlined above, building these
project delivery capabilities, is an important aspect of Parkway’s broader priorities in providing integrated industrial
water treatment solutions, including solutions incorporating PPT technologies.
During the year, Parkway was awarded a contract to design, fabricate, deliver and supervise installation and
commissioning of an integrated water treatment plant for an Australian Defence Force (ADF) site. This integrated water
treatment plant was recently successfully installed and commissioned. This water treatment plant (incorporating
multiple process technologies) highlights the increasingly sophisticated capabilities of PPS, in delivering high quality
water treatment solutions, for major clients. These capabilities, particularly in relation to fabrication and installations
have been further bolstered, through the recent acquisition of Tankweld.
During the ordinary course of operations, Tankweld collaborates closely with leading industrial companies including
major construction contractors as well as municipal water authorities, to provide a range of water infrastructure
related fabrication and project installation related activities. In many instances, Tankweld is one of only a small number
of suitably credentialled service providers capable of providing the required solutions for the critical water related
infrastructure.
Business Development
Parkway continues to improve its market penetration through PPS, by securing new business from a diverse range of
clients, for the provision of industrial water and wastewater treatment related products, services, and solutions.
During the ordinary course of operations, PPS continues to grow its client base, which includes large mining and energy
companies, a diverse range of industrial companies, as well as engineering services, government, and municipal clients,
amongst others. The growing PPS client base, together with the established Tankweld client base, is anticipated to
provide a strong foundation and support future sales growth as these commercial relationships continue to grow and
mature.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW (continued)
INDUSTRIAL TECHNOLOGY DIVISION
Industrial Technology related activities are performed through Parkway Process Technologies (PPT) and predominantly
focused on innovative process technology related R&D, including process screening, evaluation and piloting, as well as
a range of commercialisation related activities.
Technology Development
By leveraging the process engineering capabilities of Parkway, PPT continues to build a portfolio of proprietary
technologies, capable of providing highly integrated process solutions, for a range of complex wastewater and process
streams traditionally considered difficult to treat. PPT has developed innovative applications for these technologies,
including applications resulting in improvements in the processing and treatment of challenging industrial wastewater
streams, particularly for large scale industrial, oil & gas, mining and mineral processing operations.
Parkway Centre for Brine Technologies (PCBT)
As a leading developer of innovative industrial brine processing technologies, Parkway has provided a range of process
technology development related services to a diverse range of third parties. In order to assist in the industrialisation
of Parkway’s R&D related activities and accelerate the commercialisation of PPT technologies, including Master Plan
related opportunities, Parkway has established the Parkway Centre for Brine Technologies (PCBT).
The Parkway Centre for Brine Technologies provides Parkway with the following key capabilities:
•
Experimental and bench scale testing and evaluations including analytical capabilities.
•
Pilot scale testing and demonstration to support commercialisation activities.
•
Development, integration and testing of modularised systems incorporating PPT technologies.
PPT Technology Portfolio
The development and commercialisation of a portfolio of proprietary process technologies remains an important
priority for Parkway, with a range of ongoing activities focused on realising the substantial advantages of the PPT
technology portfolio. During the year, the core emphasis in terms of technology development, was focused on two
separate but interrelated Master Plan related PPT technology packages:
•
Upstream brine concentration & beneficiation, and
•
Downstream electrochemical salt-splitting technology.
Although these respective technology packages are being advanced in the context of Master Plan, these technologies
have a much broader market opportunity, which Parkway is pursuing in parallel, particularly given Parkway’s rapidly
developing project delivery capabilities.
PPT Upstream Brine Concentration & Beneficiation
In order to address the significant coal seam gas (CSG) derived waste brine and salt challenges in Queensland, on
22 June 2023, Parkway announced the development of a Master Plan, an innovative, sustainability driven concept
based on providing an industry-wide solution. Parkway subsequently disclosed the successful development of a new
upstream brine concentration and beneficiation technology package which incorporates several new innovations that
have undergone extensive process development, bench-scale piloting and various engineering studies to confirm key
technoeconomic parameters. In addition to providing a pathway to subsequent downstream processing, the adoption
of the upstream technology package, is expected to reduce costs associated with building and maintaining brine
storage ponds, as well as provide a cost-effective brine dewatering/concentration option for industry.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW (continued)
PPT Downstream Electrochemical Salt-Splitting Technology
In the Master Plan, several downstream optimisation opportunities were also disclosed to further improve the salt
balance for each project, by eliminating the production of solid salt products. Subsequently, Parkway has been
evaluating various novel integration pathways for an innovative downstream process for sequestering the
intermediate salt streams into industrial chemicals, thereby providing an opportunity for significant additional value
creation. Extensive bench scale brine pre-treatment activities have been recently performed, to produce brine samples
suitable for downstream processing. Parkway has recently processed pre-treated brine samples through a proprietary
flowsheet, incorporating pilot scale electrochemical salt splitting technology. These highly innovative piloting activities
successfully converted salt products into caustic soda, as well as a mineral acid, widely used by industry. Importantly,
this downstream salt-splitting brine process technology package has significant potential applications beyond Master
Plan, with the production of mineral acids, (and caustic soda) presenting significant opportunities in the mining,
downstream mineral processing and refining industries.
Technology Commercialisation
In parallel with the research and development of a portfolio of innovative process technologies, Parkway is also
focused on the commercialisation of PPT’s more advanced proprietary flowsheets, incorporating the respective
process technologies.
Applications in the Mining & Minerals Industry
Potential applications for the proprietary process technologies developed by PPT include, but are not limited to, the
treatment of a range of complex industrial wastewater streams including brines, as well as acid and metalliferous
drainage (AMD). Parkway is collaborating with various parties, in relation to several mining and downstream
processing related opportunities, involving the production of critical minerals, as well as the potential treatment of
complex wastewater streams, through process technologies developed by PPT.
Master Plan – Queensland CSG Opportunity
Over the life of currently operating CSG projects in Queensland, an estimated 6 million tonnes of waste salts are
expected to be produced. A significant proportion of these salts have already been produced, in the form of waste
brine and are currently being stored in waste brine storage ponds, awaiting a viable long-term disposal solution. The
disposal of waste brine and salts, as contemplated by the CSG industry, present extensive environmental risks and
challenges, and remains deeply unpopular, with significant opposition from a diverse range of stakeholders.
Recognising these significant challenges, in recent years, Parkway has systematically developed a portfolio of
proprietary process technologies, to specifically address the waste brine and salt challenges facing the CSG industry.
These technologies have undergone extensive process optimisation, piloting and technoeconomic evaluations,
providing a high level of confidence in the value proposition presented by these technologies, particularly in
comparison to the industry’s planned approach of salt disposal (salt encapsulation).
Master Plan – The Opportunity Set
The primary objective of Master Plan is to utilise the proprietary process technology packages developed by Parkway,
to convert CSG derived waste brine and salts produced in Queensland, into valuable industrial chemical products. This
approach is intended to put the CSG industry on a more sustainable footing, by addressing community concerns and
by providing a sustainable waste “disposal” (convert waste-to-products) option, as well as generating substantial
revenues from the sale of industrial chemical products. As part of Master Plan and in collaboration with several
strategic partners, Parkway is pursuing a range of significant opportunities to provide high-value solutions for the CSG
industry in Queensland.
Master Plan – Advanced Large-Scale Downstream Opportunity
Parkway has performed a range of studies based on PPT technologies, including a comprehensive feasibility study for
a major CSG company with whom Parkway has been collaborating for several years. During the year, Parkway finalised
a pre-FEED and other technical studies for this CSG company (a global energy company), in order to further advance
the brine processing project/s proposed by Parkway.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
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DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW (continued)
Master Plan – Upstream Brine Concentration & Beneficiation Opportunities
The advanced large-scale downstream opportunity referred to above, provides a potential pathway to deliver a
complete brine treatment solution for one of the largest and most advanced CSG projects in Queensland. During the
last decade, the operator of this advanced project has made substantial investments in brine concentration, however,
the remaining three major Queensland CSG projects, continue to face a range of upstream brine concentration related
challenges. As a result, Parkway is advancing the potential adoption of an upstream brine concentration and
beneficiation process, that would provide the remaining three projects with significant near-term benefits – including
smaller and more cost-effective brine storage options. The upstream concentration and beneficiation of the waste
brine would also enable further processing of the brine, with PPT’s downstream process technologies, including
potentially with the downstream electrochemical salt-splitting technology, described above.
In order to provide a viable near-term solution for the CSG industry in Queensland, Parkway is developing standardised
designs incorporating modular equipment, based on Parkway’s proprietary upstream brine concentration and
beneficiation process technologies. Preliminary internal evaluations suggest Parkway is likely to be able to provide a
highly attractive brine concentration service (lower cost, better outcome) to CSG companies on a toll-treatment basis.
The development of the standard designs and modular equipment referenced above, will also provide Parkway with
opportunities to deliver the PPT technologies in applications beyond the Queensland CSG industry.
Master Plan – Improved Upstream Technology Roll-Out Capability
As part of Parkway’s rapidly developing project delivery capabilities, Parkway is increasingly capable of designing,
fabricating and installing the appropriate process equipment and infrastructure, as part of a turnkey industrial brine
processing solution for the CSG industry. Parkway’s improved project delivery related capabilities are also supporting
ongoing discussions with a range of stakeholders regarding progress towards various other Master Plan related
objectives.
PARKWAY VENTURES
Parkway previously held a minority equity interest in the Karinga Lakes Potash Project (KLPP). During FY24, no
substantive mining exploration related activities occurred in relation to the KLPP, given the KLPP-JV is in the advanced
stages of surrendering the KLPP Tenement Interests.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 23 August 2023 Parkway successfully conducted a placement to sophisticated and professional investors, raising
gross proceeds of $4,000,000, through the issuance of 285,714,286 new fully paid ordinary shares at an issue price of
$0.014. Allotment of the placement shares was made pursuant to Parkway’s ASX Listing Rule 7.1 capacity.
On 16 November 2023 Parkway signed a new lease to begin on 4 December 2023 for the purpose of establishing the
Centre for Brine Technologies at Warehouse 4/45 Bunnett Street, in Sunshine North, Victoria. Due to delays to the
departure of the prior tenant, the commencement date was amended to 17 January 2024. At this time the Group
recognised a right-of-use asset and lease liability of $581,154. The initial rent is $90,176 p.a. plus outgoings, with a 3%
increase from February 2024 and annually thereafter. The initial term is 2 years, 2 months and 7 days, plus one option
for a further five years.
On 12 March 2024, Parkway, through its wholly owned subsidiary, Parkway Process Solutions Pty Ltd, entered into a
Share Purchase Agreement to acquire the business of Tankweld Group (comprised of Tankweld Engineering Service
Pty Ltd and Tankweld Installations Pty Ltd) for total consideration of $2,350,260. As part of this acquisition, Parkway
signed a lease for 75 Boundary Road, Carrum Downs, Victoria, recognising a right-of-use asset and lease liability of
$3,989,882. The initial rent is $345,600 p.a. plus outgoings, with a 3% increase from March 2025 and annually
thereafter. The initial term is five years, plus two options for a further five years.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
14
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS (continued)
On 15 May 2024 Parkway successfully conducted a placement to sophisticated and professional investors, raising
gross proceeds of $2,250,000, through the issuance of 250,000,000 new fully paid ordinary shares at an issue price of
$0.009. Allotment of the placement shares was made pursuant to Parkway’s ASX Listing Rule 7.1 capacity.
On 17 June 2024, Parkway entered into a term loan funding agreement with Amal Security Services Pty Limited (as
trustee for Causeway Wholesale Private Debt Master Fund) for a debt financing facility of up to $4,000,000. The Term
Loan
Facility
consists
of
a
Senior
Secured
Debt
Facility
of
$3,000,000,
and
a
separate
Acquisition Facility of $1,000,000, intended to support potential future acquisition/s. The initial loan term
is two years, with an option to extend the Term Loan Facility for a further 12 months, at the election of
Parkway. At 30 June 2024 Parkway had drawn down $1,000,000 of this facility.
Other than the above, and 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 FY24.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 28 July 2024 245,918,535 Parkway options with an exercise price of $0.019 expired without exercise or conversion.
Other than the above, there have not been any matters that have arisen after reporting date that have significantly
affected, or may significantly affect, the operations and activities of the Group, the results of those operations or the
state of affairs of the Group in future financial years other than disclosed elsewhere in this consolidated financial
report.
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 (however
no substantive mining exploration activities occurred during FY24). During the Group’s FY24, the Group’s operations
did not result in any known breaches of relevant Australian environmental legislation and/or regulations.
RISK MANAGEMENT
The Group takes a proactive approach to risk management, outlined in the Board approved Parkway Integrated
Management System (PIMS). The Board is responsible for ensuring that risk and opportunities are identified on a timely
basis and that the Group’s objectives and activities are aligned with these risks and opportunities. The Audit and Risk
Committee also plays a role in assisting the Board in fulfilling its responsibility to manage the Group’s risks by
monitoring the actions taken by Management to ensure they align with Group policy. As part of the Group’s
annual ISO 9001/14001/45001 internal reviews, Management reviews relevant risks and opportunities as well as the
ongoing appropriateness of existing controls and residual risks. Parkway’s overarching objective is to embed risk
management throughout the Group, maintaining a structured, systematic, and proactive approach. The Group’s
material business risks and how they are addressed are as follows:
•
Commercialising Industrial Technology: While the Group is in the commercialisation phase and depends on further
funding for successful commercialisation, it has robust risk mitigation strategies in place. However, it is essential
to acknowledge the inherent risks associated with technology commercialisation, some of which may be beyond
Parkway’s control and could potentially lead to delays in commercialisation.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
15
DIRECTORS’ REPORT
RISK MANAGEMENT (continued)
•
Project Management: With the acquisition of Tankweld Group, commercial and delivery risks and opportunities
associated with projects have increased compared to FY23. To mitigate these risks, the Group has implemented
processes to ensure projects are well-defined and commercial terms suitable, projects are appropriately
resourced for successful execution, and project risks and opportunities are identified throughout a project’s
lifecycle in a timely manner through effective reviews, monitoring and feedback.
•
Corporate: including safety, quality, recruitment and retention of exceptional employees, innovation, customer
credit, financial, and procurement. In addition to the annual reviews noted above, the Group manages these risks
through continuous review and monitoring by the executive leadership team.
•
Environmental: the Group acknowledges the potential risks associated with climate change, which can impact
both the Group and its clients. As climate change leads to increased weather extremes and resource variability,
Parkway’s portfolio of solutions is strategically developed to address these challenges. The Group remains vigilant
in monitoring evolving risks and challenges through its risk assessment framework contained in the PIMs, in line
with the Group’s commitment to building a sustainable business.
•
Community/Social Risks: Parkway’s operations involve numerous stakeholders, including employees, contractors,
local communities, government agencies, customers, and suppliers. Managing reputational damage and potential
claims due to harm or loss to any stakeholder is a critical concern. In addition to the annual reviews noted above,
the Group manages these risks through continuous review and monitoring by the executive leadership team.
•
Regulatory and Compliance: Complying with various governance requirements, including those tied to Parkway’s
ASX listing, is essential. Navigating evolving regulations and international standards can be complex and
unpredictable. Changes in fiscal or regulatory regimes, tax laws, and community expectations may impact
international opportunities. To manage and minimise these risks, the Group relies on regularly reviewed Board-
approved governance policies. The Group’s Legislation Register provides a comprehensive summary of the various
legislative and regulatory frameworks within which the Group operates.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
Parkway has entered into deeds of access and indemnity with the Directors and Officers of Parkway, 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) owed to Parkway or a related body corporate of Parkway; or
(b) for a pecuniary penalty order under section 1317G or a compensation order under section 1317H or section
1317HA of the Corporations Act 2001.
Similarly, the indemnity does not extend to liability for legal costs and expense:
(c) owed to someone other than Parkway or a related body corporate of Parkway where the liability did not arise out
of conduct in good faith;
(d) in defending proceedings in which the officer is found to have a liability described in paragraph (a), (b) or (c);
(e) in proceedings successfully brought by the Australian Securities & Investments Commission or a liquidator; or
(f) in connection with proceedings for relief under the Corporations Act 2001 in which the court denies the relief.
During FY24, 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 AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
16
DIRECTORS’ REPORT
INDEMNIFICATION OF AUDITORS
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 FY24.
UNISSUED ORDINARY SHARES UNDER OPTION (“OPTIONS”)
As at the date of this Annual Report, there were 413,462,785 Options and Performance Rights on issue as follows:
Expiry Date
Exercise price
Number of Options
Number of Performance
Rights
28 July 2024
$0.019
245,912,785
-
16 December 2024
$0.02
15,000,000
-
16 May 2027
$0.015
125,000,000
-
7 December 2033
n/a
-
27,550,000
During FY24, the Company issued 152,550,000 Options and Performance Rights, no Options lapsed, and no Options
were cancelled or forfeited.
Option and Performance Right holders do not have any right, by virtue of the option, to participate in any share issue
of the Company 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.
Details of the amounts paid or payable to the auditor, Nexia Perth Audit Services Pty Ltd, for non-audit services
provided during FY24 are set out below.
2024
2023
$
$
Remuneration of Nexia Perth Audit Services Pty Ltd for:
- Non-audit services
-
-
-
-
In the event that non-audit services are provided by Nexia Perth Audit Services Pty Ltd, the Board has established
certain procedures to ensure that the provision of non-audit services are compatible with, and do not compromise,
the auditor independence requirements of the Corporations Act 2001. These procedures include:
(a) non-audit services are subject to the corporate governance procedures adopted by the Group and are reviewed
by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
(b) ensuring non-audit services do not undermine the general principles relating to auditor independence as set out
in APES 110 Code of Ethics for Professional Accountants (including independence Standards) by ensuring they do
not involve reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for
the Group, acting as an advocate for the Group or jointly sharing risks and rewards.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
17
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
Meetings of Directors held during Parkway’s FY24 (and the Directors’ attendance at such meetings) were as follows:
Board
Audit & Risk
Committee
Remuneration &
Nomination
Committee
Number of Meetings Held
6
3
1
Number of Meetings Attended:
Stephen van der Sluys
6
3
1
Bahay Ozcakmak
6
2*
-
Penelope Creswell
6
3
1
Ayten Saridas
6
3
1
* attended by invitation.
REMUNERATION REPORT (AUDITED)
This Remuneration Report outlines the Group’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 Group are defined as those persons having authority and responsibility for
planning, directing, and controlling the major activities of the Group, directly or indirectly, and includes Directors and
Executives of the Group. The information provided in this remuneration report has been audited as required by section
308(3C) of the Corporations Act 2001 (Cth).
The Group’s remuneration report for its financial year ended 30 June 2023 was adopted at Parkway’s 2023 Annual
General Meeting on 30 November 2023. 280,818,824 (2022: 260,905,500) votes were in favour of the report and
13,447,547 (2022: 1,491,808) were against. No questions or comments were raised relating to the FY23 remuneration
report.
No remuneration consultants were engaged during FY24.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
18
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Details of KMP
(i) Directors:
Bahay Ozcakmak
Group Managing Director and CEO
Penelope Creswell
Non-Executive Director
Stephen van der Sluys
Non-Executive Director
Ayten Saridas
Non-Executive Director
(ii) Executives:
Michael Hodgkinson
Chief Financial Officer
(iii) Resigned:
Robert Van Der Laan
Chief Financial Officer
Remuneration Philosophy
The performance of the Group depends upon the quality of its Directors (defined as being both Executive and Non-
Executive) and Executives. To prosper, the Group must attract, motivate and retain highly skilled Directors and
Executives.
To this end, the Group embodies the following principles in its remuneration framework:
•
Provide competitive rewards to attract high calibre Directors and Executives; and
•
Link Director and Executive rewards to shareholder value.
Shares and options issued under the incentive plans provide an incentive to stay with the Group. Shares and options
issued do not have performance criteria attached, however from FY24 Performance Rights with performance criteria
were issued. This policy is considered to be appropriate for the Group, having regard to the current state of its
development.
The Group has 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 Group 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 Group
will nevertheless seek to apply the principles described above to its Directors and Executives, whether they are
employees of/or consultants to the Group.
Remuneration Committee Responsibilities
The Committee assesses the appropriateness of the nature and amount of remuneration and fees of Directors and
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
Executives.
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 AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
19
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract and
retain Non-Executive Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
Parkway’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 Parkway 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 (2023: $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 by the Group in FY24), 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 $76,018 per annum (exclusive of the prevailing superannuation guarantee percentage) were paid, or
due and payable to Mr Stephen van der Sluys. In the event of termination, there is no notice period required.
Director’s fees of $43,439 per annum (exclusive of the prevailing superannuation guarantee percentage) were paid, or
due and payable to each of the Group’s Non-Executive Directors during FY24, being Ms Penelope Creswell and
Ms Ayten Saridas. In the event of termination, there is no notice period required.
As outlined above, each of the Group’s Non-Executive Directors receive a fee for being a Director of the Group. 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 Parkway (purchased on-market and in
accordance with Parkway’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 Group may also
participate in Parkway’s share and option plans, as described in this Annual Report.
As an incentive to employees, Directors and Executives and consultants, Parkway 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 and Executives and consultants of the Group an opportunity to subscribe for shares and/or
options in Parkway. The Directors consider that the ESIP will enable the Group to retain and attract skilled and
experienced employees, Directors and Executives and provide them with the motivation to participate in the future
growth of the Group and, upon becoming shareholders in Parkway, to participate in Group’s profits and development.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
20
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Executive Remuneration
Objective
The Group aims to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Group and so as to:
•
reward Executives for Group, 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.
•
Executive Directors are encouraged by the Board to hold shares in Parkway (purchased on-market and in
accordance with Parkway’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 Group
may also participate in the share and option plans as described in this report.
Performance table
The following table details the loss of the Group from continuing operations after income tax, together with the basic
loss per share for last 5 financial years:
2024
$
2023
$
2022
$
2021
$
2020
$
Net loss from continuing
operations after income tax
(734,406)
(1,680,056)
(2,332,196)
(923,715)
(2,421,674)
Basic loss per share in cents
(0.03)
(0.08)
(0.11)
(0.04)
(0.15)
Share Price in Cents*
0.8
1.0
1.0
1.0
0.7
* closing price 30 June.
No dividends were paid in any of these years.
Executive Remuneration
Long-Term Incentive (“LTI”) awards to Executives are made under the ESIP and are delivered in the form of shares or
share options. A Performance Rights plan has also been established by the Group under the ESIP and approved by
shareholders at a general meeting, whereby the Group may, at the discretion of the Remuneration Committee, grant
performance rights over ordinary shares in the Company to certain employees. The rights are issued for nil
consideration and are granted in accordance with performance guidelines established by the Remuneration
Committee. Performance Rights carry no dividend or voting rights.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
21
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Agreement with Group Managing Director and CEO
On 26 October 2021, Parkway entered into an Executive Services Agreement with Mr Ozcakmak (“MD Agreement”).
Pursuant to the terms of the MD Agreement:
•
Mr Ozcakmak was engaged by Parkway on a full-time and permanent basis, with no fixed term included in the MD
Agreement;
•
Mr Ozcakmak’s annual salary was set at $275,000 (exclusive of superannuation); and
•
either party may terminate the MD Agreement on providing six months’ prior written notice to the other party.
On 1 November 2023, Mr Ozcakmak’s annual salary (exclusive of the prevailing superannuation guarantee percentage)
was set at $305,000. Following approval at the AGM on 30 November 2023, Mr Ozcakmak was granted 3,050,000
Performance Rights for FY23 and 10,500,000 Performance Rights for the period FY24 to FY26 (3,500,000 each year).
Vesting of 50% of the Rights are subject to certain performance hurdles and vesting of the remaining 50% of the Rights
are subject to the discretion of the Board having regard to the performance of Mr Ozcakmak during the applicable
performance period. Mr Ozcakmak must also remain employed with the Group as at the vesting date for each of the
relevant tranches in order for the applicable tranche to vest.
On 1 January 2024 a discretionary bonus of $295 was awarded, in the form of a gift card, to all employees and directors
including Mr Ozcakmak.
Total Shareholder Return (TSR) performance hurdle
50% of each tranche of the FY24-26 Performance Rights are subject to the following performance hurdles:
•
up to 25% of the Performance Rights vest based on the satisfaction of a relative TSR performance hurdle; and
•
up to 25% of the Performance Rights vest based on the absolute TSR return performance of the Company.
Relative performance hurdle
The percentage of Performance Rights subject to the relative TSR performance hurdle will vest in accordance with the
following table:
Outcome vs. ASX Small Ordinaries Index
Percentage of Performance Rights which vest
< -12% per annum
6.25%
0% per annum
12.5%
> 12% per annum
25%
There is a straight-line pro-rata vesting of Performance Rights where the relative TSR performance fails between the
thresholds set out in the above table.
Absolute TSR performance hurdle
The percentage of Performance Rights subject to the absolute TSR performance hurdle will vest in accordance with
the following table:
Outcome
Percentage of Performance Rights which vest
< -12% per annum
6.25%
0% per annum
12.5%
> 12% per annum
25%
There is a straight-line pro-rata vesting of Performance Rights where the relative TSR performance fails between the
thresholds set out in the above table.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
22
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Agreement with prior Chief Financial Officer
On 1 January 2023, Mr Van der Laan’s annual salary was increased to $158,100 from $155,000 (exclusive of
superannuation requirement).
On 27 October 2023 Mr Van der Laan resigned as Chief Financial Officer.
Agreement with current Chief Financial Officer
On 29 May 2023, Parkway entered into an Executive Services Agreement with Mr Hodgkinson (“CCO Agreement”).
Pursuant to the terms of the CCO Agreement:
•
Mr Hodgkinson was engaged with Parkway on a full-time and permanent basis, with no fixed term included;
•
Mr Hodgkinson’s annual salary was set at $195,000 (exclusive of superannuation), $35,000 in ordinary shares
(12 month vesting, with a 2-year escrow), and a performance based Short Term Incentive of up to $35,000
ordinary shares; and
•
either party may terminate the CCO Agreement on providing four weeks’ prior written notice to the other party,
eight weeks after six months service and twelve weeks after 12 months service.
On 1 November 2023 Mr Hodgkinson was appointed Chief Financial Officer. On 30 November 2023, Mr Hodgkinson
was awarded 10,500,000 Performance Rights as a Long Term Incentive (LTI) for the period FY24 to FY26 (3,500,000
each year), and 3,500,000 as a Short Term Incentive (STI) for the period FY24. For both the STI and LTI, vesting of 50%
of the Rights are subject to certain performance hurdles and vesting of the remaining 50% of the Rights are subject to
the discretion of the Board having regard to the performance of Mr Hodgkinson during the applicable performance
period. Mr Hodgkinson must also remain employed with the Group as at the vesting date for each of the relevant
tranches in order for the applicable tranche to vest. The Performance Rights have identical Performance Hurdles to
the CEO Performance Rights outlined above. On 1 January 2024 M Hodgkinson’s annual salary (exclusive of the
prevailing superannuation guarantee percentage) was set at $198,071 (of which $15,000 was salary sacrificed into
ESOP) and a discretionary bonus of $1,000 (including $295 as a gift card and $70 in superannuation) was awarded for
the prior 12 months.
Valuation of Performance Rights
Performance Rights were measured at fair value on grant date. Fair value was determined using monte carlo
simulations on a Binomial option pricing model accounting for the term (10 years), share price at grant date ($0.01),
nil exercise price, and performance criteria detailed above, utilising the expected price volatility of the underlying share
and the ASX small ordinaries index (based on three year daily data) and risk free interest rate. The valuation of all
Performance Rights issued during FY24 and outstanding is:
Grant date
Expiry
date
Number
issued
Exercise
price
Fair value
per right at
grant date
Grantee
Number
vested at
30 June
2024
Number
lapsed at
30 June
2024
Total
Fair
Value
Fair Value
recognised
as expense
in FY24
7/12/2023
7/12/2033
3,500,000
n/a
0.00600
M Hodgkinson
-
-
21,010
21,010
7/12/2023
7/12/2033
3,500,000
n/a
0.00600
M Hodgkinson
-
-
21,010
7,003
7/12/2023
7/12/2033
3,500,000
n/a
0.00627
M Hodgkinson
-
-
21,944
7,315
7/12/2023
7/12/2033
3,500,000
n/a
0.00655
M Hodgkinson
-
-
22,916
7,639
7/12/2023
7/12/2033
3,050,000
n/a
0.01000
B Ozcakmak
3,050,000
-
30,500
30,500
7/12/2023
7/12/2033
3,500,000
n/a
0.00600
B Ozcakmak
-
-
21,010
7,003
7/12/2023
7/12/2033
3,500,000
n/a
0.00627
B Ozcakmak
-
-
21,944
7,315
7/12/2023
7/12/2033
3,500,000
n/a
0.00655
B Ozcakmak
-
-
22,916
7,639
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
23
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Directors’ Remuneration 2024
Share based Payments
Short-term
Post-employment benefits
Director
Cash
Salary
and Fees
Bonus
Net leave
entitlement
Superannuation
Contribution
Termination
Benefits
Shares
Options
Perform.
Rights
Total
$
$
$
$
$
$
$
$
$
B Ozcakmak
255,346
295
30,493
72,488
-
-
-
52,457
411,079
P Creswell
43,439
295
-
4,778
-
-
-
-
48,512
S Van der Sluys
76,018
295
-
8,362
-
-
-
-
84,675
A Saridas
43,439
295
-
4,778
-
-
-
-
48,512
Total
418,242
1,180
30,493*
90,406
-
-
-
52,457
592,778
*
Net leave entitlements (utilised) / charged during the period.
Directors’ Remuneration 2023
Share based Payments
Short-term
Post-employment benefits
Director
Director
Fees and
Salary
Bonus
Superannuation
Contribution
Termination
Benefits
Shares
Options
Perform.
Rights
Total
$
$
$
$
$
$
$
$
B Ozcakmak
275,000
-
28,875
-
-
-
-
303,875
P Creswell
43,439
-
4,561
-
-
-
-
48,000
S Van der Sluys*
60,633
-
6,367
-
-
-
-
67,000
A Saridas**
31,545
-
3,312
-
-
-
-
34,857
A Cook***
74,515
-
6,845
-
-
-
-
81,360
A Griffin****
13,575
-
1,425
-
-
-
-
15,000
Total
498,707
-
51,385
-
-
-
-
550,092
*
Appointed 31 August 2022.
**
Appointed 12 October 2022.
***
Resigned 26 September 2022.
****
Resigned 19 September 2022.
Executives’ Remuneration 2024
Share based Payments
Short-term
Post-employment benefits
Executive
Salary
Bonus
Net leave
entitlement
Superannuation
Contribution
Termination
Benefits
Shares
Options
Perform.
Rights
Total
$
$
$
$
$
$
$
$
$
R Van der Laan*
51,686
-
-
5,686
23,176
-
-
-
80,548
M Hodgkinson
174,036
930
2,793
20,864
-
50,000
-
42,967
291,590
Total
225,722
930
2,793
26,550
23,176
50,000
-
42,967
372,136
*
Resigned 27 October 2023
**
Net leave entitlements (utilised) / charged during the period.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
24
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Executives’ Remuneration 2023
Short-term
Post-employment benefits
Share based Payments
Superannuation
Termination
Executive
Salary
Bonus
Contribution
Benefits
Shares
Options
Perf.
Rights
Total
$
$
$
$
$
$
$
$
R Van der Laan
158,588
-
16,525
-
-
-
-
175,113
M Hodgkinson*
15,500
-
1,628
-
3,068
-
-
20,196
Total
174,088
-
18,153
-
3,068
-
-
195,309
Total Remuneration 2024
Total Directors’
.and Executives’
.Remuneration
643,964
2,110
33,286**
116,956
23,176
50,000
-
95,424
964,915
Total Remuneration 2023
Total Directors’
.and Executives’
.Remuneration
672,795
-
69,538
-
3,068
-
-
745,402
*
Appointed 29 May 2023.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
25
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Shares, Options and Performance Rights: Granted and vested during the year
Shares
3,885,821 shares were issued to KMP as part of remuneration during FY24 (2023: 3,068).
(a)
Share holdings of KMP
2024
Balance at 1 July 23
Granted as
remuneration
On Exercise of
Options
Net change other
Balance at 30 June 24
Directors
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
B Ozcakmak
220,237,201
-
-
500,000**
220,737,201
P Creswell
-
-
-
-
-
S van der Sluys
-
-
-
-
-
A Saridas
-
-
-
-
-
Total Directors
220,237,201
-
-
500,000
220,737,201
Executives
R Van der Laan
63,341,692
-
-
(63,341,692)*
-
M Hodgkinson
3,068
3,885,821
-
-
3,888,889
Total Executives
63,344,760
3,885,821
-
(63,341,692)
3,888,889
Total Directors' and Executives’ Share holdings
283,581,961
3,885,821
-
(62,841,692)
224,626,090
* Changes due to cessation as KMP during the year.
** On Market purchase.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
26
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Options
No Options were issued to KMP during FY24 (2023: nil).
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to KMP, including the directors and executives.
(b) Options holdings of KMP
2024
Balance at
1 July 23
Granted as
remuneration
Bonus issue
received
Net change
other
Balance at
30 June 24
Options
Options
Options
Options
Options
Vested and
exercisable
Unvested and
exercisable
Directors
B Ozcakmak
62,424,060
-
-
-
62,424,060
62,424,060
-
P Creswell
-
-
-
-
-
-
-
S van der Sluys
-
-
-
-
-
-
-
A Saridas
-
-
-
-
-
-
-
Total Directors
62,424,060
-
-
-
62,424,060
62,424,060
-
Executives
R Van der Laan
3,178,610
-
-
(3,178,610)*
-
-
-
M Hodgkinson
-
-
-
-
-
-
-
Total Executives
3,178,610
-
-
(3,178,610)
-
-
-
Total Directors' and Executives’ holdings
65,602,670
-
-
(3,178,610)
62,424,060
62,424,060
-
* Changes due to cessation as KMP in the year.
Of which:
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
27
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Performance Rights
The Performance Rights issued to KMP in FY24 as disclosed in the table below were made under the ESIP (2023: nil).
The amounts disclosed in the table are the amounts issued during the reporting period related to KMP, including the directors and executives.
(c) Performance Rights holdings of KMP
2024
Balance at
1 July 23
Issued as
remuneration
Bonus issue
received
Net change
other
Balance at
30 June 24
Perf. Rights
Perf. Rights
Perf. Rights
Perf. Rights
Perf. Rights
Vested and
exercisable
Unvested
Directors
B Ozcakmak
-
13,550,000
-
-
13,550,000
3,050,000
10,500,000
P Creswell
-
-
-
-
-
-
-
S van der Sluys
-
-
-
-
-
-
-
A Saridas
-
-
-
-
-
-
-
Total Directors
-
13,550,000
-
-
13,550,000
3,050,000
10,500,000
Executives
R Van der Laan*
-
-
-
-
-
-
-
M Hodgkinson
-
14,000,000
-
-
14,000,000
-
14,000,000
Total Executives
-
14,000,000
-
-
14,000,000
-
14,000,000
Total Directors' and Executives’ holdings
-
27,550,000
-
-
27,550,000
3,050,000
24,500,000
* Resigned 27 October 2023
Of which:
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
28
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(c)
Other Transactions with KMP and their related parties
There were no other transactions with KMP and their related parties during FY24 and no outstanding balances as at
the date of this report.
(d)
Loans to KMP and their related parties
There were no loans made to KMP and their related parties during FY24 and no outstanding balances as at the date of
this report.
End of Remuneration Report (audited).
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
Rounding of amounts
The Group has applied the relief available to it in ASIC Legislative Instrument 2016/191 and accordingly amounts
included in this report and in the consolidated financial report have been rounded off to the nearest $1 (where
rounding is applicable).
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 29 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: 20 September 2024
29
To the Board of Directors of Parkway Corporate Limited
Auditor’s Independence Declaration under section 307C of the Corporations
Act 2001
As lead auditor for the audit of the financial statements of Parkway Corporate Limited for the financial year
ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
Nexia Perth Audit Services Pty Ltd
Michael Fay
Director
Perth, Western Australia
20 September 2024
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
30
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
For the year
ended 30 June
2024
For the year
ended 30 June
2023
Note
$
$
INCOME FROM CONTINUING ACTIVITIES
Sales revenue
13
8,898,333
4,247,372
Cost of goods sold
6,471,650
1,661,384
GROSS PROFIT
2,426,683
2,585,988
Other income
3,200
-
Interest
90,925
17,723
Profit from the disposal of depreciated assets
44,085
4,237
Government grant
14
591,083
437,282
TOTAL OTHER INCOME
729,293
459,242
EXPENSES
Employee expenses
1,807,944
2,912,989
Corporate and Professional fees
639,129
277,511
Other expenses
354,510
521,750
Depreciation and Amortisation
587,331
430,916
Interest expense
254,262
53,026
Research
125,000
130,022
Occupancy
98,092
98,666
Impairment losses
11,15
24,114
300,407
TOTAL EXPENSES
3,890,382
4,725,287
LOSS BEFORE INCOME TAX
(734,406)
(1,680,056)
Income tax expense
-
-
NET LOSS FOR THE YEAR
(734,406)
(1,680,056)
OTHER COMPREHENSIVE INCOME FOR THE YEAR
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(734,406)
(1,680,056)
Basic and diluted loss per share (cents per share)
7
(0.03)
(0.08)
The Consolidated Statement of Profit or Loss and other Comprehensive Income should be read in conjunction with the
accompanying notes.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 2024
30 June 2023
Note
$
$
CURRENT ASSETS
Cash and cash equivalents
8
3,492,197
2,003,639
Trade and other receivables
9
3,770,511
427,246
Inventories
10
1,787,434
1,683,894
Other
175,493
77,830
Total Current Assets
9,225,635
4,192,609
NON-CURRENT ASSETS
Trade and other receivables
9
344,918
138,101
Plant and equipment
11
999,593
295,623
Intangible assets
15
9,575,981
4,624,426
Right of use assets
12
6,661,153
2,713,670
Other
108,314
-
Total Non-Current Assets
17,689,959
7,771,820
TOTAL ASSETS
26,915,594
11,964,429
CURRENT LIABILITIES
Trade and other payables
16
2,635,630
630,635
Short term debt
18
116,596
-
Provisions
17
318,906
192,012
Lease liability
12
421,655
336,220
Total Current Liabilities
3,492,787
1,158,867
NON-CURRENT LIABILITIES
Lease liability
12
6,374,306
2,460,837
Long term debt
18
1,000,000
-
Provisions
17
554,890
176,994
Total Non-Current Liabilities
7,929,196
2,637,831
TOTAL LIABILITIES
11,421,983
3,796,698
NET ASSETS
15,493,611
8,167,731
EQUITY
Contributed Equity
19
41,587,275
35,630,714
Reserves
20
3,281,772
1,178,047
Accumulated losses
(29,375,436)
(28,641,030)
TOTAL EQUITY
15,493,611
8,167,731
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Contributed
Equity
Accumulated
Losses
Share and
Option Based
Payment
Reserve
Total
$
$
$
$
Balance at 1 July 2022
35,475,444
(26,960,975)
1,178,047
9,692,516
Loss for the year
-
(1,680,055)
-
(1,680,055)
Other comprehensive income (net of tax)
-
-
-
-
Total comprehensive loss for the year
-
(1,680,055)
-
(1,680,055)
Transactions with owners in their capacity as
owners during the year:
Shares issued (Note 19)
200
-
-
200
Share issue transaction costs (Note 19)
-
-
-
-
Share based payments (Note 21)
155,070
-
-
155,070
Balance at 30 June 2023
35,630,714
(28,641,030)
1,178,047
8,167,731
Contributed
Equity
Accumulated
Losses
General
Reserve
Share and
Option Based
Payment
Reserve
Total
$
$
$
$
$
Balance at 1 July 2023
35,630,714
(28,641,030)
-
1,178,047
8,167,731
Loss for the year
-
(734,406)
-
-
(734,406)
Other comprehensive income
(net of tax)
-
-
-
-
-
Total comprehensive loss for the
year
-
(734,406)
-
-
(734,406)
Transactions with owners in
their capacity as owners during
the year:
Contributed equity - Tankweld
(Note 20)
-
-
1,950,000
-
1,950,000
Shares issued (Note 19)
6,250,000
-
-
-
6,250,000
Share issue transaction costs
(Note 19)
(293,439)
-
-
-
(293,439)
Share based payments (Note 21)
-
-
-
153,725
153,725
Balance at 30 June 2024
41,587,275
(29,375,436)
1,950,000
1,331,772
15,493,611
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
33
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
For the year
ended 30
June 2024
For the year
ended 30
June 2023
Note
$
$
OPERATING ACTIVITIES
Receipts from customers
6,166,511
4,860,130
Payments to suppliers and employees
(6,112,568)
(6,633,961)
Government grant received (net)
533,580
418,771
Net Interest received
56,922
17,723
NET CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
25
644,445
(1,337,337)
INVESTING ACTIVITIES
Proceeds from sale of plant and equipment
20,000
-
Payment for acquisition of plant and equipment
(173,617)
(139,711)
Payments for acquisition of Mawpump
-
10,595
Payments for acquisition of Tankweld, net of assets acquired
15B
(2,349,483)
-
Purchase of ROU assets
-
(257,959)
Payments for capitalised R&D expenditure
(1,274,790)
(48,101)
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES
(3,777,890)
(435,176)
FINANCING ACTIVITIES
Proceeds from borrowings
1,000,000
-
Proceeds from issue of shares, net of capital raising costs
5,956,562
200
Repayment of borrowings
(1,786,533)
-
Repayment of lease liabilities
(548,025)
(227,452)
NET CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
4,622,004
(227,252)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS
1,488,558
(1,999,765)
Cash and cash equivalents at the beginning of the year
2,003,639
4,003,404
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
8
3,492,197
2,003,639
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 1: Corporate information
The consolidated financial report of Parkway Corporate Limited (the “Company” or “Parkway”) and its controlled
entities (the “Group”) for the year ended 30 June 2024 was authorised for issue in accordance with a resolution of
Directors on 20 September 2024. The Group is a for-profit entity. The Group’s consolidated financial statements are
presented in Australian dollars, which is also Parkway’s functional currency.
Parkway is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on
the Australian Securities Exchange (ASX: PWN).
The nature of operations and principal activities of the Group are described in the Directors’ report.
The following is a summary of the material accounting policies adopted by the Group in the preparation and
presentation of the consolidated financial report. The accounting policies have been consistently applied, unless
otherwise stated.
Note 2: Material accounting policy information
(a)
Basis of preparation
The consolidated financial report is a general purpose financial report, which has been prepared in accordance with
the requirements of the Corporations Act 2001, Australian Accounting Standards and Interpretations and complies with
other requirements of the law, as appropriate for for-profit oriented entities.
Reporting basis and convention
The consolidated financial report has also been prepared on a historical cost basis.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in note 27.
Going concern
These consolidated financial statements have been prepared on going concern basis. In arriving at this position, the
Directors have had regard to the fact that the Group has, or in the Directors’ opinion will have access to, sufficient cash
to fund administrative and other committed expenditure. The Group’s cashflow forecasts for the twelve months ended
30 September 2025 indicate that the Group will have access to sufficient cash to fund administrative and other
committed expenditure and be able to settle its liabilities as and when they fall due for a period of at least 12 months
from the date of signing the consolidated financial report.
(b)
Adoption of new revised or amending accounting standards and interpretations
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 2024.
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
(c)
Statement of compliance
The consolidated financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (“IFRS”).
(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
Parkway 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 21.
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 Group assesses impairment for intangible assets at each reporting date or when an impairment indicator exists,
by evaluating conditions specific to the Group 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 15.
Research and development rebate
Research and development rebates are recognised 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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
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.
(e)
Principles of consolidation
The consolidated financial statements comprise the financial statements of the Company and its controlled entities as
at 30 June 2024.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
•
Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the
investee);
•
Exposure, or rights, to variable returns from its involvement with the investee; and
•
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
•
The contractual arrangement with the other vote holders of the investee,
•
Rights arising from other contractual arrangements; and
•
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are included in the Consolidated Statement of Comprehensive
Income from the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the
parent of the Group and to the Non-controlling interests, even if this results in the Non-controlling interests having a
deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between members of the Group are eliminated in full on
consolidation.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the Non-controlling interest acquired is recognised
directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the Group.
Losses incurred by the Group are attributed to the Non-controlling interest in full, even if that results in a deficit
balance.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
Group recognises the fair value of the consideration received and the fair value of any investment retained together
with any gain or loss in profit or loss.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
on which control commences until the date on which control ceases.
(f)
Business combinations
The Group applies the acquisition method in accounting for business combinations.
The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition
date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes
the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are
expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of
whether they have been previously recognised in the acquirer’s financial statements prior to the acquisition. Assets
acquired and liabilities assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum
of a) fair value of consideration transferred, b) the recognised amount of any non-controlling interest in the acquire
and c) acquisition-date fair value of any existing equity interest in the acquire, over the acquisition-date fair values of
identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount
(i.e., gain on a bargain purchase) is recognised in profit or loss immediately.
(g)
Share-based payment transactions
Employees (including Directors and Executives) of the Group may 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 Parkway’s best estimate of the number of equity instruments that will ultimately vest.
The Consolidated 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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
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, unless the
Group incurs a loss, in which case the effect of options on issue is considered to be antidilutive and thus not factored
in determining the diluted earnings per share (further details are given in Note 7).
(h)
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.
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 Consolidated
Statement of Comprehensive income in the period the item is derecognised.
(i)
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
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 Consolidated
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 took
effect from 1 July 2016. Parkway Corporate Limited is the head entity of the tax consolidated group.
(j)
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
(k)
Provisions and employee benefits
Provisions are recognised when the Group 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 Group 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 Consolidated 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 and annual leave
Liabilities for wages and salaries including non-monetary benefits and annual 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.
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.
(l)
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.
(m)
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
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.
(n)
Inventories
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.
(o)
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.
Revenue from a contract to provide project services is recognised over time, based on the revenue associated with
each milestone delivered if applicable or otherwise as a percentage of project completion, as the services are rendered
based on either a fixed price or an hourly rate.
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
When the Group receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and
released to the Consolidated 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.
(p)
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.
(q)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged
to make future payments in respect of the purchase of these goods and services.
(r)
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of Parkway 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 Parkway 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.
(s)
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
Subsequent measurement:
The subsequent measurement of other financial assets depends on their classification as described below:
a)
Financial assets at fair value through profit or loss
Financial assets are classified at fair value through profit or loss (“FVTPL”) include financial assets held for trading,
financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required to be measured
at fair value. Financial assets at FVTPL are carried in the statement of financial position at fair value with net changes
in fair value presented in the Consolidated Statement of Profit or Loss.
The Group does not hold any financial assets at FVTPL.
b)
Amortised cost
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.
This category is most relevant to the Group.
(t)
Impairment of financial assets
The Group assesses at each reporting date whether a financial asset or group of financial assets is impaired, excluding
financial assets at 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.
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
(u)
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 Group does not have a purchase option at the end of the
lease term). Right-of-use assets are subject to impairment.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances
that create an economical incentive to exercise an extension option, or not to exercise a termination option, are
considered at the lease commencement date. Factors considered may include the importance of the asset to the
Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties;
existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group
reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if
there is a significant event or significant change in circumstances.
(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 AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
(v)
Current versus non-current classification
The Group presents assets and liabilities in the Consolidated 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
The Group classifies all other assets 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.
(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 AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (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.
Business combinations
As discussed in note 1, business combinations are initially accounted for on a provisional basis. The fair value of assets
acquired, liabilities and contingent liabilities assumed are initially estimated by the Group taking into consideration all
available information at the reporting date. Fair value adjustments on the finalisation of the business combination
accounting is retrospective, where applicable, to the period the combination occurred and may have an impact on the
assets and liabilities, depreciation and amortisation reported.
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 2: Material accounting policy information (continued)
(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.
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 2024, 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 consolidated financial statements.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 4: Income tax
2024
2023
$
$
(a) Income tax expense/(benefit)
Current tax
-
-
Deferred tax
-
-
Total tax (benefit)/expense
-
-
(b) Income tax recognised in equity
Deferred tax liability recognised
-
-
Total income tax recognised in equity
-
-
(c) Numerical reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
(734,406)
(1,680,056)
Prima facie tax benefit at the Australian tax rate of 25% (FY23: 25%)
(183,601)
(420,014)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Non-deductible expenses
87,341
(50,515)
Non-assessable income
(158,367)
-
Current year tax profit / (loss) not recognised
(254,627)
(470,529)
Income tax expense not recognised
-
-
(d) Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
22,068,208
21,049,699
Potential tax benefit @25% (FY23: 25%)
5,517,052
5,262,425
The above potential tax benefit for tax losses has not been recognised in the Consolidated Statement of Financial
Position.
(e) Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Tax losses
5,517,052
5,262,425
Accruals and provisions
271,064
140,694
Total gross deferred tax assets not recognised
5,788,116
5,403,119
Offset against deferred tax liabilities
(19,458)
(19,458)
Total net deferred tax assets not recognised
5,768,658
5,383,661
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.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 5: KMP remuneration
2024
2023
$
$
Short-term employee benefits
679,360
672,796
Post-employment benefits
116,956
69,538
Termination benefits
23,176
-
Share-based payments
145,423
3,068
Total compensation
964,915
745,402
Refer to Note 24 for other related parties transactions.
Note 6: Auditor’s remuneration
Details of the amounts paid or payable to the auditor, Nexia Perth Audit Services Pty Ltd, for audit services provided
during FY24 are set out below;
2024
2023
$
$
Remuneration of Nexia Perth Audit Services Pty Ltd for:
- Auditing the consolidated financial report of the Group
88,300 108,491
88,300
108,491
Note 7: Loss per share
2024
2023
$
$
Basic loss per share (cents per share)
(0.03)
(0.08)
Diluted loss per share (cents per share)
(0.03)
(0.08)
Net loss
(734,406)
(1,680,056)
Loss used in calculating basic and diluted loss per share
(734,406)
(1,680,056)
Number
Number
Weighted average number of ordinary shares used in the calculation of
basic and diluted loss per share
2,494,752,622
2,216,468,236
As of 30 June 2024, a total of 413,462,785 options on ordinary shares had been issued (2023: 260,912,785). As the
Group incurred a loss for the year ended 30 June 2024 and 2023, the effect of options on issue is considered to be
antidilutive and thus not factored in determining the diluted earnings per share.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 8: Cash and cash equivalents
2024
2023
$
$
Cash at bank and on hand
3,492,197
2,003,639
3,492,197
2,003,639
Note 9: Trade and other receivables
2024
2023
Current
$
$
Trade debtors
2,872,243
427,246
R&D Tax incentive Receivable
673,635
-
Other Receivables
224,633
-
3,770,511
427,246
Non-Current
Project retentions
109,895
-
Security Bonds
235,023
138,101
344,918
138,101
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. At 30 June 2024, an ECL of $29,826 was recognised (2023:
$10,130).
The R&D Tax incentive provides tax offsets for eligible Research and Development expenditure. The R&D Tax Incentive
Receivable is based on the tax return submitted by Parkway Group for FY24.
Project retentions is a fixed percentage of the total payment due for a contract, withheld for a period after the work
is completed, typically until the end of the defect liability period (DLP).
Other than those receivables specifically provided for, trade and other receivables are considered fully recoverable.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 11: Plant and equipment
2024
2023
$
$
Office equipment at cost
77,538
69,655
Less impairment*
(4,363)
-
Less accumulated depreciation
(49,844)
(36,676)
23,331
32,979
Plant & equipment at cost
200,132
56,915
Less impairment*
(14,892)
-
Less accumulated depreciation
(51,822)
(30,034)
133,418
26,881
Computers & software at cost
50,043
46,604
Less impairment*
(4,859)
-
Less accumulated depreciation
(31,416)
(19,132)
13,768
27,472
Furniture fixtures at cost
133,740
133,740
Less accumulated depreciation
(85,726)
(54,311)
48,014
79,429
Motor vehicles at cost
956,796
212,225
Less accumulated depreciation
(183,407)
(83,363)
773,389
128,862
Low value assets at cost
8,958
-
Less accumulated depreciation
(1,287)
-
7,672
-
Total plant, equipment & motor vehicles
999,593
295,623
* During the year Parkway performed an impairment test on assets in the Parkway Process Solutions business in Perth,
and determined that the Plant and Equipment should be valued at the lower of depreciated cost and net realisable
value. The total impairment loss recognised was $24,114.
Note 10: Inventories
2024
2023
$
$
Inventories
1,787,434
1,683,894
1,787,434
1,683,894
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 11: Plant and equipment (continued)
Office
Equipment
Plant and
Equipment
Computers
and Software
Furniture
Fixtures
Motor Vehicles
Low Value
Assets
Total
$
$
$
$
$
$
$
Year ended 30 June 2023
Opening net carrying value
31,939
29,330
27,080
61,832
115,124
-
265,305
Opening Balance Adjustment
-
(5,408)
6,305
-
(898)
-
-
Disposal
-
-
-
-
(6,358)
-
(6,358)
Additions
16,360
15,933
5,203
43,344
58,871
-
139,711
Depreciation charge for year
(15,321)
(12,974)
(11,116)
(25,747)
(37,877)
-
(103,035)
Closing net carrying value
32,979
26,881
27,472
79,429
128,862
-
295,623
Office
Equipment
Plant and
Equipment
Computers
and Software
Furniture
Fixtures
Motor Vehicles
Low Value
Assets
Total
$
$
$
$
$
$
$
Year ended 30 June 2024
Opening net carrying value
32,979
26,881
27,472
79,429
128,862
-
295,623
Assets acquired on acquisition of
Tankweld (Note 15B)
5,097
101,571
-
-
625,629
5,625
737,923
Disposal
-
-
-
-
-
-
-
Impairments
(4,363)
(14,892)
(4,859)
-
-
-
(24,114)
Additions
2,786
45,116
3,440
-
118,941
3,333
173,617
Depreciation charge for year
(13,168)
(25,258)
(12,284)
(31,415)
(100,044)
(1,287)
(183,456)
Closing net carrying value
23,331
133,418
13,769
48,014
773,389
7,672
999,593
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 12: Leases
The Group leases land and buildings for its office and factory facilities under agreements of between 2 to 5 years with
options to extend. On renewal, the terms of the leases are renegotiated.
2024
2023
Amounts recognised in the balance sheet relating to leases:
$
$
Right of use assets
Buildings
6,661,153
2,713,670
Opening net book amount
2,713,670
1,192,095
Additions
4,108,657
1,839,777
Adjustment for surrender of Warehouse 20 lease
242,718
-
Depreciation expense
(403,892)
(318,202)
Closing net book amount
6,661,153
2,713,670
Cost
7,345,531
3,236,873
Adjustment for surrender of Warehouse 20 lease
242,718
-
Accumulated depreciation
(927,096)
(523,203)
Net book amount
6,661,153
2,713,670
Lease Liabilities
Current
421,655
336,220
Non-current
6,374,306
2,460,837
6,795,961
2,797,057
At beginning of year
2,797,057
1,217,990
Additions
4,330,213
1,818,902
Accretion of interest
204,313
48,956
Payment
(535,622)
(288,791)
At end of the year
6,795,961
2,797,057
In relation to the right-of-use assets and lease liabilities the following amounts were recognised in the consolidated
financial statements:
2024
2023
$
$
Depreciation expense
403,892
318,202
Interest expense
220,260
48,956
Expense relating to short-term and low value leases (included in General
and Administration expenses)
-
-
The total cash outflow for leases in the period was:
(535,621)
(288,791)
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 13: Sales revenue
Set out below is the disaggregation of the Group’s revenue from contracts with customers:
2024
$
2023
$
Type of goods or service
Water industry fabrication and installation services
4,387,890
-
Sale of water treatment related products
829,404 716,048
Commercial water treatment solutions
913,039 629,317
Industrial water related solutions
2,768,000
2,902,007
Total revenue from contracts with customers
8,898,333
4,247,372
2024
$
2023
$
Timing of revenue recognition
Goods and services transferred at a point in time
4,394,959
4,247,372
Goods and services recognised based on percentage project completion
4,503,374
-
Total revenue from contracts with customers
8,898,333
4,247,372
At 30 June 2024, all revenue from contract with customers is considered to be derived and held in one geographical
area being Australia.
Note 14: Government grants
The Group has recognised the following government grants:
2024
2023
$
$
R&D incentive for FY23 – consolidated statement of Profit and Loss and
.Other Comprehensive Income*
591,083
437,282
R&D incentive for FY24 – consolidated statement of Profit and Loss and
.Other Comprehensive Income *
57,503
-
R&D incentive for FY24 – consolidated statement of Financial Position*
616,132
-
Total
1,264,718 437,282
*As in FY23 all expenditure to which the R&D incentive relates was expensed, the full FY23 amount has been
recognised as income in the Consolidated Statement of Comprehensive Income in FY24 being the year in which the
Group determined with reasonable assurance that the government grant will be received and all attached conditions
will be complied with had been obtained. As in FY24 expenditure to which the R&D incentive relates was capitalised,
the proportion of FY24 amounts capitalised has been recognised as an offset to the Capitalised R&D Asset in the
Consolidated Statement of Financial Position in FY24, and the proportion of FY24 amounts expensed has been
recognised as income in the Consolidated Statement of Comprehensive income in FY24, being the year in which the
Group determined with reasonable assurance that the government grant will be received and all attached conditions
will be complied with has been obtained.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 15: Intangible assets
2024
2023
$
$
Intellectual property
3,323,299
3,323,299
Goodwill - Mawpump
1,301,127
1,301,127
Goodwill – Tankweld
4,212,077
-
Capitalised R&D
739,478
-
9,575,981
4,624,426
Intellectual
Property
Capitalised
R&D
Goodwill –
Multi-Wet
Goodwill -
Mawpump
Goodwill -
Tankweld
Total
$
$
$
$
$
$
Balance 1 July 2022
3,323,299
-
300,407
1,275,780
-
4,899,486
Additions
-
-
-
25,347
-
25,347
Impairment
-
-
(300,407)
-
-
(300,407)
Balance 30 June 2023
3,323,299
-
-
1,301,127
-
4,624,426
Balance 1 July 2023
3,323,299
-
-
1,301,127
-
4,624,426
Additions
-
1,355,610
-
-
4,212,077
5,567,687
R&D offset
-
(616,132)
-
-
-
(616,132)
Impairment
-
-
-
-
-
-
Balance 30 June 2024
3,323,299
739,478
-
1,301,127
4,212,077
9,575,981
The Group’s intellectual property portfolio consists of trade secrets, know-how, trademarks, and patents. At
30 June 2024, 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.
15A Impairment testing
At 30 June 2024, management performed an impairment test on the Intellectual Property, the Capitalised R&D, and
the Mawpump Goodwill and in accordance with the Group’s accounting policy assessed the recoverable amount of
the CGU’s to which the Intellectual Property and the goodwill are allocated by reference to ‘value in use’. In assessing
value in use, the estimated future cash flows of the CGUs to which the Intellectual Property and the goodwill are
allocated were 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 of the CGUs to which the
Intellectual Property and the goodwill are allocated was in excess of the carrying value and hence no impairment was
recognised. The following key assumptions were used in the discounted cash flow model:
•
14.9% (2023: 19.9%) pre-tax discount rate
•
3% (2023: 3%) per annum projected EBITDA growth rate
Management believes the projected EBITDA growth is prudent and justified, based on the general market conditions
for these businesses.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 15: Intangible assets (continued)
In performing the impairment tests, management applied a number of assumptions and judgments such as future
forecasted revenue, future revenue growth, allocation of costs and discount rates. The assumptions and judgments
used by management were determined to be reasonable based on the present and anticipated market conditions
applicable to Group. No reasonable fluctuation in assumptions or judgments would cause the carrying amount of the
CGUs to which the intangible assets were allocated to exceed the recoverable amount to require an adjustment for
impairment.
15B Business combination
On 13 March 2024, the Group, through its wholly owned subsidiary, Parkway Process solutions Pty Ltd, entered into a
Share Purchase Agreement to acquire the business of Tankweld Group (comprised of Tankweld Engineering Pty Ltd
and Tankweld Installations Pty Ltd) for total provisional consideration of $2,350,260. Tankweld Group Goodwill was
measured at cost less the fair market value of the tangible assets, liabilities, and intangible assets able to be identified.
As management is still completing the acquisition accounting, the identification and announced valuation of the assets
and liabilities acquired is provisional as allowable per AASB3 Business Combinations (“AASB3”) paragraph 45.
The provisional fair values of the identifiable assets as at the date of acquisition were:
$
Cash and cash equivalents
777
Trade receivables
1,180,315
Work in Progress
391,870
Plant and equipment
737,923
Trade payables
(1,619,965)
Employee benefits
(553,512)
Loans
(1,999,225)
Total identifiable net assets at fair value
(1,861,817)
Goodwill arising on acquisition
4,212,077
Purchase Price
2,350,260
Purchase Consideration
Cash consideration
650,000
Liabilities acquired (net)
1,700,260
Total purchase consideration
2,350,260
Less: Cash and cash equivalents balances acquired
(777)
Net cash flow on acquisition
2,349,483
As per AASB 3 paragraph 84 management is still determining the final fair values of assets and liabilities acquired as
well as the Cash Generating Unit (CGU) to which the Tankweld acquisition is allocated, hence allocation of goodwill is
provisional, and no detailed impairment testing has been performed. This will be performed when determination of
the CGU and finalisation of the value of assets and liabilities has been concluded.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 16: Trade and other payables
2024
2023
Current
$
$
Unsecured liabilities
Trade payables
2,116,122
327,077
Payroll and other statutory liabilities
254,747
157,131
Accrued expenses
264,761
146,427
2,635,630
630,635
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
Note 17: Provisions
2024
2023
Current
$
$
Annual leave provision
283,045
157,193
Long service leave provision
35,861
18,598
Other provisions
-
16,221
318,906
192,012
Non-current
Annual leave provision
269,196
107,880
Long service leave provision
285,694
69,113
554,890
176,993
Note 18: Loans and borrowings
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
2024
2023
$
$
Current
116,596
-
Non Current
1,000,000
-
1,116,596
-
The total financing arrangements are as follows:
2024
2023
$
$
Vehicle Hire Purchase
116,596
-
Private debt loan
1,000,000
-
1,116,596
-
Assets pledged as security
The Private debt loan was pledged through a General Security Deed covering all present and future undertakings,
assets and rights.
The Vehicle Hire Purchases are secured over their respective motor vehicles.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 18: Loans and borrowings (continued)
Total facilities are as follows:
2024
2023
$
$
Vehicle Hire Purchase
116,596
-
Private debt loan
4,000,000
-
4,116,596
-
Used at the reporting date
Vehicle Hire Purchase
116,596
-
Private debt loan
1,000,000
-
1,116,596
-
Unused at the reporting date
Vehicle Hire Purchase
-
-
Private debt loan
3,000,000
-
3,000,000
-
Private debt loan
On 14 June 2024 Parkway entered into a Term Loan Facility agreement. The Term Loan Facility consists of a Senior
Secured Debt Facility of $3,000,000 and a separate Acquisition Facility of $1,000,000, intended to support potential
future acquisition/s. The initial loan Term is two years, with an option to extend the Term Loan Facility for a further
twelve months, at the election of Parkway. The facility is interest only and Parkway is not required to repay any
principal until the end of the Term. Fees include an arranger fee equivalent to 2.5% of funds drawn at the time of each
drawdown, and an establishment Fee of 2% of the Senior Secured Debt Facility paid on settlement. Fees are capitalised
and amortised over the two year Loan Term. Interest, based on the Bank Bill Swap rate (BBSW), is:
•
Draw amounts – BBSW (subject to 3% floor) plus 8% p.a., payable monthly in arrears.
•
Undrawn amounts – BBSW (subject to 3% floor), payable monthly in arrears.
The Private debt loan was pledged through a General Security Deed covering all present and future undertakings,
assets and rights. Other terms include customary covenants for a secured corporate facility of this nature, including
Conditions Precedent, Conditions Subsequent, Representations and Warranties and Undertakings (including Permitted
Disposals, Permitted Distributions, and Permitted Debt) and events of default with market standard grace periods,
carve outs and equity cure.
Refer to note 26 for further information on financial instruments.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 19: Contributed equity
2024
2023
No.
$
No.
$
Ordinary shares
- fully paid
2,767,113,855
41,587,275
2,226,818,847
35,630,714
When managing capital (which is defined as the Group’s total equity amounting to $15,493,611 (2023: $8,167,731),
the Board's objective is to ensure the Group 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 Group is not subject to any externally imposed
capital requirements.
Movements in fully paid ordinary shares on issue of the legal parent are:
2024
2023
2024
2023
Number
Number
$
$
At the beginning of year
2,226,818,847
2,213,262,446
35,630,714
35,475,444
Issue of shares for cash – August 2023
285,714,286
-
4,000,000
-
Cost of issuing shares for cash
-
-
(187,427)
-
Issue of shares for cash – May 2024
250,000,000
-
2,250,000
-
Cost of issuing shares for cash
-
(106,012)
-
Issue of shares as share-based payments
4,580,722
13,538,401
-
155,070
Issue of shares for exercised options
-
18,000
-
200
At the end of the reporting year
2,767,113,855
2,226,818,847
41,587,275
35,630,714
On 23 August 2023 Parkway successfully conducted a share placement to sophisticated and professional investors,
raising gross proceeds of $4,000,000, through the issuance of 285,714,286 new fully paid ordinary shares at an issue
price of $0.014. Allotment of the placement shares was made pursuant to Parkway’s ASX Listing Rule 7.1 capacity.
On 15 May 2024 Parkway successfully conducted a placement to sophisticated and professional investors, raising gross
proceeds of $2,250,000, through the issuance of 250,000,000 new fully paid ordinary shares at an issue price of $0.009.
Allotment of the placement shares was made pursuant to Parkway’s ASX Listing Rule 7.1 capacity.
Note 20: Reserves
Note
2024
2023
$
$
At the beginning of reporting year
1,178,047
1,178,047
Tankweld General Reserve from
.payment of net liabilities
20A
1,950,000
-
Options issued
20B
-
-
Performance Rights issued
20C
95,423
-
Shares issued to employees
21
58,302
-
3,281,772
1,178,047
The share and equity-based payment reserves record items recognised as expenses on valuation of share-based
payments that will subsequently convert to equity on the issue of shares upon exercise of the rights when all conditions
for granting the rights have been met.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 20: Reserves (continued)
Note 20A: General Reserve
On 12 March 2024 Parkway acquired Tankweld Group. As part of the consideration $1,950,000 in Tankweld liabilities
were recognised as acquisition consideration (see note 15). These liabilities were subsequently extinguished, and the
$1,950,000 recognised as General Reserve.
Note 20B: Options
2024
2024
2023
2023
Number
WAEP
Number
WAEP
Outstanding at 1 July
260,912,785
$0.02
748,875,228
$0.02
Granted during the year
125,000,000
$0.01
-
-
Expired during the year
-
-
(487,962,443)
$0.02
Outstanding at 30 June
385,912,785
$0.02
260,912,785
$0.02
Exercisable at 30 June
385,912,785
$0.02
260,912,785
$0.02
The weighted average remaining contractual life of share options outstanding at 30 June 2024 was 1.6 years (2023:
1.1 years).
The average exercise price of options granted during the year was $0.02 (2023: n/a).
The range of exercise prices for options outstanding at the end of the year was $0.015 to $0.02 (2023: $0.019 to $0.02).
Reconciliation of total options on issue:
Options issued
as share-based
payments
Other options issued
Total options on
issue
At 30 June 2022
162,499,999
586,375,229
748,875,228
Issued during the year
-
-
-
Expired during the year
-
(487,962,443)
(487,962,443)
At 30 June 2023
162,499,999
98,412,786
260,912,785
Issued during the year
125,000,000
-
125,000,000
Expired during the year
-
-
-
At 30 June 2024
287,499,999
98,412,786
385,912,785
Note 20C: Performance Rights
A performance rights plan has been established by the Group and approved by shareholders at a general meeting,
whereby the Group may, at the discretion of the Remuneration Committee, grant performance rights over ordinary
shares in the Company to certain employees. The rights are issued for nil consideration and are granted in accordance
with performance guidelines established by the Remuneration Committee.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 20: Reserves (continued)
Reconciliation of total Performance Rights on issue:
Performance Rights
issued as share-
based payments
Other Performance
Rights issued
Total Performance
Rights on issue
At 30 June 2022
-
-
-
Issued during the year
-
-
-
Expired during the year
-
-
-
At 30 June 2023
-
-
-
Issued during the year
27,550,000
-
27,550,000
Expired during the year
-
-
-
At 30 June 2024
27,550,000
-
27,550,000
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:
Note
2024
2023
$
$
Performance rights issued to KMP
21.1
51,510
-
Performance rights to be issued to KMP
21.1
43,913
-
Shares issued to KMP
21.2
35,000
-
Shares to be issued to KMP
21.2
15,000
-
Total KMP
145,423
-
Shares issued to employees
21.2
8,302
25,070
Shares to be issued to employees
21.2
7,506
-
Total other employees
15,808
25,070
Total equity based payments expense
161,231
25,070
21.1
A performance rights plan has been established by the Group and approved by shareholders at a general
meeting, whereby the Group may, at the discretion of the Remuneration Committee, grant performance rights
over ordinary shares in the Company to certain employees. The rights are issued for nil consideration and are
granted in accordance with performance guidelines established by the Remuneration Committee.
21.2
During the year 4,580,722 shares were issued to employees as part of their remuneration (June 2023: 2,279,091
shares issued), at the share price on the date of issue.
For the equity-based payments expense recognised in the Condensed Consolidated Statement of Comprehensive
Income, the fair value of Options, Performance Rights and Shares issued have been recognised in the Share and Option
Based Payment reserve and Shares to be issued to employees of $7,506 (June 2023: $0) have been recognised as
accrued expenses.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 21: Equity based payments (continued)
Options, Shares and Performance
.Rights
30 Jun 2024
30 Jun 2023
30 Jun 2024
30 Jun 2023
Number
Number
$
$
At the beginning of reporting
period
260,912,785
748,875,228
1,178,047
1,178,047
Performance rights
27,550,000
-
95,423
-
Shares issued
-
-
58,302
-
Options issued
125,000,000
-
-
-
Options exercised
-
-
-
-
Options expired
-
(487,962,443)
-
-
At reporting date
413,462,785
260,912,785
1,331,772
1,178,047
Performance Rights were measured at fair value on grant date. Fair value was determined using monte carlo
simulations on a Binomial option pricing model accounting for the term (10 years), share price at grant date ($0.01),
nil exercise price, and performance criteria detailed above, utilising the expected price volatility of the underlying share
and the ASX small ordinaries index (based on three year daily data) and risk free interest rate. The inputs used to the
valuation of performance rights granted as share-based compensation during the reporting period were as follows:
Grant date
Expiry date
Number
issued
Exercise
price
Fair value
per right at
grant date
No. vested
at 30 June
2024
No. lapsed
at 30 June
2024
Total
Fair
Value
Fair Value
recognised
as expense
in FY24
7/12/2023
7/12/2033
3,500,000
n/a
0.00600
-
-
21,010
21,010
7/12/2023
7/12/2033
7,000,000
n/a
0.00600
-
-
42,020
14,007
7/12/2023
7/12/2033
7,000,000
n/a
0.00627
-
-
43,888
14,629
7/12/2023
7/12/2033
7,000,000
n/a
0.00655
-
-
45,832
15,277
7/12/2023
7/12/2033
3,050,000
n/a
0.01000
3,050,000
-
30,500
30,500
All performance rights 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
The Group has certain obligations with respect to Research Projects and the minimum expenditure requirements are
as follows:
2024
2023
$
$
Within 1 year
125,000
125,000
1 to 2 years
125,000
125,000
Total
250,000
250,000
The commitments may vary depending upon additions or relinquishments of funding agreements. The above figures
are based on the agreements at 30 June 2024. The figures are adjusted on the anniversary date of each funding
agreement. During the financial year, the Group recognised $125,000 of research expense (2023: 130,022).
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 23: Contingent liabilities
There are no contingent liabilities at 30 June 2024 (2023: Nil).
Note 24: Related party transactions
Other than payments to KMP there were no related party transactions for FY24 (2023: Nil) and no balances outstanding
at 30 June 2024 (2023: Nil).
Note 25: Cash flow information
Reconciliation of cash flow from operations with loss from ordinary activities after income tax
2024
2023
$
$
Loss from ordinary activities after income tax
(734,406)
(1,680,056)
Adjustments for:
Depreciation
587,331
430,916
Impairment expense
24,114
312,235
Non-cash finance costs
220,260
48,956
Share based payments
161,231
25,070
Profit from disposal of depreciated assets
(44,085)
(4,237)
Changes in operating assets and liabilities
(Increase)/decrease in receivables
(1,563,452)
274,065
(Increase)/decrease in inventories
(103,540)
(165,806)
(Increase)/decrease in other assets
(412,794)
11,821
Increase/(decrease) in trade and other payables
2,004,996
(596,425)
Increase/(decrease) in provisions
504,789
6,124
Cash flows used in operating activities
644,445
(1,337,337)
Non-cash investing and financing activities
As a result of the Mawpump acquisition, in FY23 $130,000 in ordinary shares in Parkway were issued as partial,
deferred consideration for the assets acquired.
During the year, additions to the right-of-use assets were $4,108,657 (2023: 1,839,777).
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 26: Financial risk management objectives and policies
The Group’s principal financial instruments comprise cash and short-term deposits, trade and other receivables and
trade and other payables. The main purpose of the financial instruments is to finance the Group’s operations. The
main risks arising from the Group’s financial instruments are interest rate risk and credit risk. The Board reviews and
agrees policies for managing each of these risks and they are summarised below:
(a)
Interest Rate Risk
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.
Interest Rate Risk Sensitivity
Interest
Rate
Floating
Interest
Rate
Fixed
Interest
Rate
Non
Interest
Bearing
Total
-10%
10%
Profit
Equity
Profit
Equity
%
$
$
$
$
$
%
$
%
2024
Financial Assets
Cash
4.35
3,492,197
-
-
3,492,197
(11,393)
-
11,393
-
Trade receivables
-
45,000*
4,070,430
4,115,430
Security Bonds**
-
-
235,023
235,023
Total Financial Assets
3,492,197
45,000
4,305,453
7,842,650
Financial Liabilities
Short Term Debt
-
116,596
-
116,596
Long Term Debt
1,000,000
-
-
1,000,000
3,263
-
(3,263)
-
Trade creditors
-
-
2,635,630
2,635,630
Total Financial Liabilities
1,000,000
116,596
2,635,630
3,752,226
Total
(8,131)
-
8,131
-
2023
Financial Assets
Cash
4.10
2,003,639
-
-
2,003,639
(6,161)
-
6,161
-
Trade receivables
-
45,000*
427,246
472,246
Security Bonds**
-
-
93,101
93,101
Total Financial Assets
2,003,639
45,000
520,347
2,568,986
Financial Liabilities
Trade creditors
-
-
630,635
630,635
Total Financial Liabilities
-
-
630,635
630,635
* Credit card security deposit held in National Australia Bank with the interest rate of 4.8% p.a. FY24 (FY23: 1.7%).
** Security bonds, classified as non current receivables. See note 9.
A sensitivity of 10% (2023: 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 2024 from around 4.35% to 3.92% (2023: 4.1% to 3.7%) representing 43 basis points (2023: 40 basis points),
which is 33 basis points (2023: 30 basis points) net of tax.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 26: Financial risk management objectives and policies (continued)
(b)
Liquidity Risk
The Group 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 2024
On demand
Less than
3 months
3 to 12
months
1 to 5 years
>5 years
Total
$
$
$
$
$
$
Lease liabilities
-
199,029
597,086
3,799,553
5,356,877
9,952,545
Short Term Debt
-
11,616
109,111
-
-
120,727
Long Term Debt
-
35,604
160,218
1,231,426
-
1,427,248
Trade and other
payables
-
2,635,630
-
-
-
2,635,630
-
2,881,879
866,415
5,030,979
5,356,877
14,136,150
All trade payables are due within 30 days, which is consistent with the prior year.
(c)
Fair Values
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.
(d)
Credit Risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument leading to
financial losses. The Group is exposed to credit risk from its operating activities, financing activities including deposits
with banks. The credit risk control procedures adopted by the Group 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.
The maximum exposure to credit risk on financial assets of the Group which have been recognised on the Consolidated
Statement of Financial Position is generally limited to the carrying amount.
Cash is maintained with Macquarie Bank, Westpac, National Australia Bank and Bank of Queensland, all investment
grade rated banks, and therefore carries insignificant expected credit loss.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Note 27: Parent entity disclosure
Parent
Parent
Assets
2024
2023
Current assets
2,812,349
1,112,214
Non-current assets
13,245,207
9,366,950
Total Assets
16,057,556
10,479,164
Liabilities
Current liabilities
457,432
262,431
Non-current liabilities
2,271,761
2,049,001
Total Liabilities
2,729,193
2,311,432
Net Assets
13,328,363
8,167,732
Equity
Contributed equity
41,587,274
35,475,644
Reserves
1,331,772
1,333,118
Accumulated losses
(29,590,683)
(28,641,030)
Total Equity
13,328,363
8,167,732
Parent
Parent
2023
2022
Loss for the year
(915,370)
(2,191,078)
Other comprehensive income
-
-
Total comprehensive loss for the financial year
(915,370)
(2,191,078)
The commitments and contingencies and commitments of the parent entity are the same as those for the Group.
Note 28: Subsequent events
On 28 July 2024 245,918,535 Parkway options with an exercise price of $0.019 expired without exercise or conversion.
Other than the above, there have not been any other matters that have arisen after reporting date that have
significantly affected, or may significantly affect, the operations and activities of the Group, the results of those
operations or the state of affairs of the Group in future financial years other than disclosed elsewhere in this
consolidated financial report.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
67
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Consolidated entity disclosure statement at 30 June 2024.
Entity Name
Place formed/
Incorporated
Entity Type
% of share
capital held
Tax Residency
Parkway Ventures Pty Ltd
Body Corporate
Australia
100%
Australia*
Parkway Process Technologies Pty Ltd
Body Corporate
Australia
100%
Australia*
Parkway Process Solutions Pty Ltd
Body Corporate
Australia
100%
Australia*
Consolidated Potash Corporation Ltd**
Body Corporate
Australia
100%
Australia*
Activated Water Technology Pty Ltd
Body Corporate
Australia
100%
Australia*
Mawpump Pty Ltd
Body Corporate
Australia
100%
Australia*
Queensland Brine Solutions Pty Ltd
Body Corporate
Australia
100%
Australia*
Tankweld Installations Pty Ltd
Body Corporate
Australia
100%
Australia*
Tankweld Engineering Service Pty Ltd
Body Corporate
Australia
100%
Australia*
* Parkway Corporate Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income
tax consolidated group under the tax consolidation regime.
** Parkway 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 this project is at the advanced stages of relinquishment.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
68
DIRECTORS’ DECLARATION
In the opinion of the Directors of Parkway Corporate Limited:
(a)
the consolidated financial statements and notes set out on pages 26 to 61 are in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the financial position of the Group as at 30 June 2023 and of its
performance, as represented by the results of its operations and its cash flows, for the year ended
on that date; and
(ii)
complying with Accounting Standards in Australia and the Corporations Regulations 2001;
(b)
the consolidated financial statements and notes also comply with International Financial Reporting Standards
as disclosed in Note 2(c); and
(c)
there are reasonable grounds to believe that Parkway will be able to pay its debts as and when they become
due and payable.
(d)
The information disclosed in the consolidated entity disclosure statement is true and correct.
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 2023.
This declaration is made in accordance with a resolution of the Directors.
Bahay Ozcakmak
Group Managing Director & CEO
Melbourne
Dated: 20 September 2024
69
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 2024, the
consolidated statement of profit and loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including material accounting policy information, the consolidated entity disclosure
statement 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 2024 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.
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.
70
Key audit matter
How our audit addressed the key audit matter
Funding/ Liquidity
(Refer to Note 2 (a) to the Financial Report)
The Group's strategy is focused on commercialising
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 Group’s Technology Commercialisation
Business.
As per the financial statements, the Group reported
a net loss of $734,406 (2023: $1,680,056) and a
cash inflow from operating activities of $644,445
for the year ended 30 June 2024 (2023: outflow of
$1,337,337). The Group had a net working capital
surplus
of
$5,732,848
(2023:
$3,033,743)
including cash and cash equivalents of $3,492,197
at 30 June 2024 (2023: $2,003,639).
The adequacy of funding and liquidity, as well as
the relevant impact on the going concern
assessment, was considered to be a key audit
matter due to the significance of management’s
judgments and estimates in respect of this
assessment.
Our procedures included, amongst others:
• Assessing the Group's working capital position as
at 30 June 2024;
• Vouching the cash and cash equivalents to
supporting documentation;
• Checking the mathematical accuracy of the cash
analysis prepared by management;
• Evaluating the reliability and completeness of
management's assumptions by comparing them
to our understanding of the Group's future plans
and operating conditions;
• Obtaining an understanding of management's
cash analysis and evaluating the sensitivity of
assumptions made by management;
• Considering 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; and
• Assessing the adequacy of the disclosures
included in the financial report.
Carrying value
of
goodwill
and other
intangible assets
(Refer to Note 15 to the Financial Report)
Goodwill and other intangible assets are reviewed
for impairment at least once a year and additionally
whenever there is an indication for impairment.
The Group annually carries out an impairment
assessment of goodwill using a value-in-use model
which is based on the net present value of the
forecast earnings of the cash-generating units to
which the goodwill is allocated. This is calculated
using certain assumptions around discount rates,
growth rates and cash flow forecasts.
The carrying value of goodwill and other intangible
assets was considered to be a key audit matter due
to the following:
• The evaluation of the recoverable amount is
based upon a value-in-use calculation which
requires significant judgement and estimation;
and
• The balance is material to users of the financial
statements.
Our procedures included, amongst others:
• Obtaining an understanding of managements
process with regards to the preparation of the
value-in-use model;
• Evaluating management’s methodologies and key
assumptions;
• Assessing and challenging the following:
i. reasonableness of long-term growth rates
used in the forecast cash flows by comparing
them to historical results; and
ii. discount rate applied.
• Testing the mathematical accuracy and integrity
of the value-in-use model;
• Assessing the accuracy of management’s forecast
cash flow model;
• Performing sensitivity analysis on the key drivers
of growth rates used in the cash flow forecasts
and the discount rate applied;
• Assessing management’s consideration of the
sensitivity to a change in key assumptions that
both individually or collectively would be required
for goodwill and other intangible assets to be
71
impaired and considering the likelihood of such a
movement in those key assumptions; and
• Assessing the disclosures in the financial report
using our understanding obtained from our
testing and against the requirements of the
accounting standards.
Revenue Recognition
(Refer to Note 13 to the Financial Report)
Included in the Consolidated Statement of Profit or
Loss and Other Comprehensive Income for the
year ended 30 June 2024 is an amount of
$8,898,333 relating to revenue. This is split
between water industry fabrication and installation
services,
industrial
water
related
solutions,
commercial water treatment solutions and the sale
of water treatment related products.
$4,503,374 of total revenue is recognised over time
based on a percentage of project completion basis
with the remainder recognised at a point in time in
accordance with the requirements of AASB 15
Revenue from contracts with customers ("AASB
15").
Revenue recognition was considered to be a key
audit matter due to its significance to the Group's
financial report and the judgment exercised by
management in determining when revenue should
be recognised.
Our procedures included, amongst others:
•
Obtaining an understanding of and evaluating
the processes and controls associated with
revenue recognition;
•
Performing detailed testing on a sample basis to
assess the revenue recognition policies for
appropriateness
and
compliance
with
the
recognition requirements of AASB 15; and
•
Assessing the adequacy of the disclosures
included within the financial report.
Accounting treatment for acquisition of the
Tankweld Group
(Refer to Note 15 to the Financial Report)
During the year, the Group acquired the Tankweld
Group resulting in the recognition of goodwill in
accordance with AASB 3 Business Combinations.
Goodwill is recognised based on the difference
between the consideration and the fair value of
assets and liabilities acquired.
The acquisition of the Tankweld Group was
considered to be a key audit matter due to the
following:
• The size of the acquisition having a significant
impact on the Group’s financial statements; and
• The judgement exercised by management and
complexity relating to the determination of the
fair values of assets and liabilities acquired.
Our procedures included, amongst others:
• Assessing the appropriateness of the acquisition
of the Tankweld Group being accounted for as
business combination;
• Reading the underlying contracts to understand
the terms of the business combination;
• Evaluating the valuation methodology used by
the Group to determine the fair value of the
consideration paid;
• Evaluating the valuation methodology used by
the Group to determine the fair value of the
assets and liabilities acquired with regard to the
accounting standard requirements and observed
industry practices; and
• Assessing the disclosures in the financial report
using our understanding obtained from our
testing and against the requirements of the
accounting standards.
72
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 2024, 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.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial (other than the consolidated entity disclosure statement) report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of 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:
www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf.
This description forms part of our auditor’s report.
73
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 28 of the Directors’ Report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of Parkway Corporate Limited for the year ended 30 June 2024
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
Michael Fay
Director
Perth, Western Australia
20 September 2024
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
73
SHAREHOLDER INFORMATION
Distribution schedules of shareholders and statements of voting rights are set out in Table 1, whilst Parkway’s top
twenty shareholders are shown in Tables 2 and 3.
Table 1
Shareholder spread as at 15 September 2024
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
No. Holders
1-1,000
127
1,001-5,000
151
5,001-10,000
111
10,001-100,000
936
100,001 - and over
1,239
Total number of holders of securities
2,564
Total number of securities
2,767,113,855
Based on $0.011 per security, number of holders with an unmarketable holding: 832, with total 12,712,180, amounting
to 0.46% of Issued Capital.
Table 2
Top twenty shareholders as at 15 September 2024
Position
Holder Name
Holding
Percentage
1
JACK YETIV
253,968,254
9.18%
2
BNP PARIBAS NOMINEES PTY LTD
220,237,958
7.96%
3
ACTIVATED LOGIC PTY LIMITED
215,170,534
7.78%
4
BNP PARIBAS NOMINEES PTY LTD
148,873,127
5.38%
5
HENADOME PTY LTD
88,705,000
3.21%
6
CITICORP NOMINEES PTY LIMITED
86,580,418
3.13%
7
BNP PARIBAS NOMS PTY LTD
66,565,894
2.41%
8
SNICK INVESTMENTS PTY LTD
45,000,000
1.63%
9
MR ANDRE SZARUKAN &
MS ROSE BRANISKA
38,400,129
1.39%
10
HORN RESOURCES PTY LTD
36,000,000
1.30%
11
MR SVEN OSCAR OLSSON &
MRS MANUELA OLSSON
32,900,000
1.19%
12
MR MARK ANDREW TKOCZ
30,000,000
1.08%
13
PEAK ENERGY PTY LTD
23,920,846
0.86%
14
MR DOUGLAS LEE COPLEY &
MRS ELIZABETH COPLEY
21,061,140
0.76%
15
MR JEFFREY PAUL LUKE
20,742,443
0.75%
16
MR PAUL HOMEWOOD
20,000,000
0.72%
17
MR PETER DALLAS CHECKLEY &
MS NIOMIE ESTHER VARADY
18,603,399
0.67%
18
PEAK ENERGY PTY LTD
18,253,968
0.66%
19
MRS CHARLOTTE EMILY GRIGG
18,111,111
0.65%
20
DR PETER ROSS HAWKINS
17,967,701
0.65%
Total
1,421,061,922
51.36%
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
74
SHAREHOLDER INFORMATION
Table 3
Substantial shareholders as at 15 September 2024
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
Holder Name
Holding
Percentage
JACK YETIV
253,968,254
9.18%
BNP PARIBAS NOMINEES PTY LTD
220,237,958
7.96%
ACTIVATED LOGIC PTY LIMITED
215,170,534
7.78%
BNP PARIBAS NOMINEES PTY LTD
148,873,127
5.38%
Voting Rights
All shares carry one vote per share without restriction.
PARKWAY CORPORATE AND ITS CONTROLLED ENTITIES
ABN: 62 147 346 334
75
TENEMENT REGISTER
Tenements (Australia) as at 20 September 2024
Australian Projects – Karinga Lakes Potash Project
Tenement ID
Location
State
Interest
EL32249
Karinga Lakes
NT
40%
EL32250
Karinga Lakes
NT
40%
EL32251
Karinga Lakes
NT
40%
The Karinga Lakes Potash Project (“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 this project is at the advanced stages of relinquishment.
PARKWAY CORPORATE LIMITED
5/45 Bunnett Street
Sunshine North
VIC 3020 Australia
+61 (0) 3 9069 3200
pwnps.com