TIDMSEE
RNS Number : 5552G
Seeing Machines Limited
30 March 2022
Seeing Machines Limited
30 March 2022
Half year results and financial report
Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the
"Company"), the advanced computer vision technology company that
designs AI-powered operator monitoring systems to improve transport
safety, today publishes its unaudited results and financial report
for the six months to 31 December 2021 ("H1 2021").
Financial Highlights:
- Total operational revenue of A$21.7m (H1 2021: A$18.1m),
reflecting comparative growth of c.19.4% on previous period.
o Underlying revenue growth[1] using constant currency is 24.6%
year on year (exchange rate as at 31 December 2021)
o OEM (Automotive and Aviation) revenue of A$5.2m, representing
a 69% increase on the previous period (H1 2021: A$3.1m)
-- Includes a 170% increase in royalty revenue derived from the
installation of the Group's DMS technology of $2.1m (H1 2021:
A$0.78m)
o Annual Recurring Revenue including royalties increased by 9.3%
since 30 June 2021 to A$18.8m (FY2021: A$17.2m)
o Aftermarket (Fleet and Off-Road) revenue grew by 9% to A$16.4m
(H1 2021: A$15m)
o Aftermarket Monitoring Service Revenues including royalties
grew by 16% to A$6.7m (H1 2021: A$5.8m)
- Net loss reduced by 17.8% to A$13.8m (H1 2021: A$16.8m)
- Cash at 31 December 2021 of A$79.3m (31 December 2020: A$52.4m)
OEM (Automotive and Aviation) Highlights:
- Global momentum calling for Driver Monitoring System (DMS)
technology for enhanced safety continues and saw the USA introduce
legislation that would require DMS to reduce risks of distracted
and drunk driving.
- Seeing Machines announced the largest driver and occupant
monitoring system technology award to date and was appointed by a
new Tier 1 partner for a leading German automaker, with an initial
lifetime value of A$125m. This brings total cumulative initial
lifetime value of all Company won automotive programs to more than
A$325m.
- With over nine vehicle models now past start of production,
there are more than 250,000 cars on roads featuring Seeing Machines
technology, representing an increase of 108% since 30 June 2021. A
further 30 distinct vehicle models, featuring Seeing Machines
technology, are expected to launch by early 2023.
- Key commercial traction in Aviation, as Airservices Australia
announced that it will collaborate with Seeing Machines Aviation to
enhance safety in Air Traffic Management, and Air Ambulance
Victoria announced its use of Seeing Machines in the world-first
pilot fatigue detection system.
- Seeing Machines and Collins Aerospace, the world's largest
Tier 1 Avionics company, have signed a collaboration agreement to
jointly market co-developed solutions across the Aviation
industry.
Aftermarket Highlights:
- Guardian, the Company's Aftermarket driver distraction and
fatigue technology, is now fitted to 36,933 individual vehicles, a
16.2% increase of 5,000 connections over the six month period (FY
2021: 31,771 units).
- The Company signed a Global Framework Agreement with Shell
Global Solutions International B.V. for the provision of Guardian,
to enhance safety across its worldwide operations.
- EROAD Limited, a leading transportation technology company
that offers fleet management software and products, has integrated
Seeing Machines Guardian technology into its fleet management
software to help combat driver fatigue and make roads safer.
- Seeing Machines established a European sales team,
headquartered in Amsterdam, the Netherlands, to lead the next phase
of its business development and focus on growing demand in Europe
for the Company's Aftermarket driver safety technology,
Guardian.
Investment Highlights:
- On 23 November 2021, Seeing Machines issued 277,123,492 new
ordinary shares of no par value each (the "New Ordinary Shares") at
a price of 11 pence per New Ordinary Share, raising gross proceeds
of approximately US$41,000,000 (the "Placing"). The net proceeds of
the Placing are being used to accelerate a range of features to
meet technology demands and for general working capital and
corporate purposes, as well as to strengthen the Company's balance
sheet.
Outlook:
- Seeing Machines continues to trade within the range of consensus expectations for FY2022.[2]
There is considerable accelerating momentum for the business,
with current market conditions presenting a significant opportunity
to capture an even greater market share as a number of structural
tailwinds continue to support application of the Company's
technology. The current 'active RFQ' pipeline, with program
opportunities exceeding a cumulative total of A$1bn, underpins the
board's view that Seeing Machines will have an increased market
share by 2025.
Paul McGlone, CEO of Seeing Machines commented: "These results
demonstrate positive momentum across the company. Our Automotive
business continues to grow with more cars starting production,
generating high-margin royalty revenue. This is underpinned by our
increasing confidence in ongoing RFQ processes as we focus on
feature development and integration options to support OEM demands,
in partnership with our Tier 1 customers. Aftermarket is
experiencing similar positive momentum with growth in our direct
business resulting in a more profitable business model and a
growing sales pipeline through our expanding global team.
"There are obviously challenges with the current geopolitical
and global inflationary environment and supply chain that affect
the market as a whole. We are focused on mitigating these risks as
they are identified and are confident in our ability to continue to
grow the business."
Enquiries:
Seeing Machines Limited +61 2 6103 4700
Paul McGlone - CEO
Sophie Nicoll - Corporate Communications
Stifel Nicolaus Europe Limited (Nominated
Adviser and Broker) +44 20 7710 7600
Alex Price
Nick Adams
Ross Poulley
Lionsgate Communications (Media Enquiries)
Jonathan Charles +44 07791 892509
Seeing Machines (LSE: SEE), a global company founded in 2000 and
headquartered in Australia, is an industry leader in vision-based
monitoring technology that enable machines to see, understand and
assist people. Seeing Machines' technology portfolio of AI
algorithms, embedded processing and optics, power products that
need to deliver reliable real-time understanding of vehicle
operators. The technology spans the critical measurement of where a
driver is looking, through to classification of their cognitive
state as it applies to accident risk. Reliable "driver state"
measurement is the end-goal of Driver Monitoring Systems (DMS)
technology. Seeing Machines develops DMS technology to drive safety
for Automotive, Commercial Fleet, Off-road and Aviation. The
company has offices in Australia, USA, Europe and Asia, and
supplies technology solutions and services to industry leaders in
each market vertical.
Review of Operations
Financial Results
The Company's total sales revenue for H1 FY2022 (excluding
foreign exchange gains and finance income) increased by 19.4% to
A$21.7m (H1 FY2021: A$18.1m).
Business unit 31 Dec 2021 31 Dec 2020 Variance
$'000 $'000 %
OEM 5,243 3,103 69
Aftermarket 16,421 15,040 9
Sales Revenue 21,664 18,143 19
Royalty revenue, derived from installation of Seeing Machines'
Driver Monitoring System (DMS) technology, increased by 170% to
A$2.1m compared to the same period last year (H1 FY2021: A$0.78m)
as vehicles start production across a number of Automotive OEM
programs. This demonstrates the significant ramp up of royalty
revenues, earned at a substantial margin, that is set to continue
as more of these programs are delivered.
Monitoring services revenue in Aftermarket grew by 16% to A$6.7m
for the half-year, compared to A$5.8m for the same period last
year. Installed Guardian units increased by over 5,000 to 36,933
connected units representing a 16.2% growth in connections over the
six-month period (FY21: 31,771 units), demonstrating ongoing
momentum for the Aftermarket business, despite ongoing challenges
posed by COVID-19 and supply chain pressures.
The Company continued to invest in its core technology
development to further strengthen our competitive moat, rapidly
expand features and leverage systems approach across global OEM and
Aftermarket industries. As a result, Seeing Machines incurred total
research and development expenses of A$18.1m during the six-months
ended 31 December 2021 (2020: A$8.9m), of which A$11.8m (2020: nil)
was capitalised.
Customer support and operations cost categories increased to
A$4.3m (2020: A$3.2m) and A$5.8m (2020: A$3.5m) respectively in
line with strengthening of business pursuit and emerging markets
activities to support increased pipeline and channel market
expansion.
On 23 November 2021, Seeing Machines issued 277,123,492 new
ordinary shares of no par value each (the "New Ordinary Shares") at
a price of 11 pence per New Ordinary Share, raising gross proceeds
of approximately US$41,000,000 (the "Placing"). The net proceeds of
the Placing are being used to accelerate a range of features to
meet technology demands and for general working capital and
corporate purposes, as well as to strengthen the Company's balance
sheet.
Cash and cash equivalents at 31 December totaled A$79.3m (2020:
A$52.4m).
We highlight this report is unaudited. There is no requirement
for the interim financial statements to be subject to review by the
external auditor.
Interim Consolidated Statement of Financial Position -
Unaudited
Consolidated
31 Dec 30 Jun
AS AT Notes 2021 2021
Unaudited Audited
A$000 A$000
---------------------------------- -------------------- ---------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5 79,261 47,393
Other short-term deposits 472 472
Trade and other receivables 6 17,633 19,851
Inventories 7 7,039 2,627
Other current assets 5,348 5,438
---------- ---------
TOTAL CURRENT ASSETS 109,753 75,781
---------- ---------
NON-CURRENT ASSETS
Property, plant & equipment 8 3,347 3,361
Intangible assets 9 21,477 9,540
Right-of-use assets 3,847 4,252
---------- ---------
TOTAL NON-CURRENT ASSETS 28,671 17,153
---------- ---------
TOTAL ASSETS 138,424 92,934
---------- ---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 1 0 9,218 8,839
Lease liabilities 1 1 998 918
Provisions 5,579 4,893
Contract liabilities 1,733 772
---------- ---------
TOTAL CURRENT LIABILITIES 17,528 15,422
---------- ---------
NON-CURRENT LIABILITIES
Provisions 261 192
Lease liabilities 1 1 4,772 5,272
---------- ---------
TOTAL NON-CURRENT LIABILITIES 5,033 5,464
---------- ---------
TOTAL LIABILITIES 22,561 20,886
---------- ---------
NET ASSETS 115,863 72,048
========== =========
EQUITY
Contributed equity 1 4 312,822 257,382
Accumulated losses (215,821) (202,046)
Other reserves 18,862 16,712
---------- ---------
Equity attributable to the owners
of the parent 115,863 72,048
---------- ---------
TOTAL EQUITY 115,863 72,048
========== =========
The above interim consolidated statement of financial position
should be read in conjunction with the accompanying notes.
Interim Consolidated Statement of Comprehensive Income -
Unaudited
Consolidated
2021 2020
FOR THE SIX-MONTH PERIODED 31 Notes Unaudited Unaudited
DECEMBER A$000 A$000
---------------------------------------- ----------------- ---------- ------------------
Sale of goods and licence fees 11,480 9,159
Rendering of services 10,184 8,981
Research revenue - 3
---------- ----------------
Revenue 3 21,664 18,143
---------- ----------------
Cost of sales (11,528) (11,804)
---------- ----------------
Gross profit 10,136 6,339
---------- ----------------
Net gain/(loss) in foreign exchange 164 (2,002)
Finance income 219 196
Other (expense) / income (9) 1,672
Expenses
Research and development expenses 4 (6,286) (8,853)
Customer support and marketing expenses (4,327) (3,194)
Operations expenses (5,790) (3,476)
General and administration expenses (7,530) (7,186)
Finance costs (239) (267)
---------- ----------------
Loss before tax (13,662) (16,771)
Income tax expense (113) -
---------- ----------------
Loss after income tax (13,775) (16,771)
========== ================
Loss for the period attributable to:
Equity holders of the parent (13,775) (16,771)
---------- ----------------
Other comprehensive income/(loss)
Exchange differences on translation
of foreign operations 172 (22)
---------- ----------------
Other comprehensive income/(loss)
net of tax 172 (22)
---------- ----------------
Total comprehensive loss (13,603) (16,793)
---------- ----------------
Total comprehensive loss attributable
to:
Equity holders of the parent (13,603) (16,793)
========== ================
Total comprehensive loss for the period (13,603) (16,793)
========== ================
Loss per share for loss attributable to the ordinary equity
holders of
the parent:
Basic loss per share 13 (0.01) (0.01)
Diluted loss per share 13 (0.01) (0.01)
The above interim consolidated statement of comprehensive income
should be read in conjunction with the accompanying notes.
Interim Consolidated Statement of Changes in Equity -
Unaudited
FOR THE Employee
SIX-MONTH Foreign Equity
PERIOD Currency BenefitsED 31 Contributed Accumulated Translation & Other
DECEMBER Equity Losses Reserve Reserve Total Equity
A$000 A$000 A$000 A$000 A$000
--------------- -------------------- -------------------- -------------------- -------------------- -------------------
As at 1 July
2020 217,204 (184.626) (1,516) 15,147 46,209
Loss for the
period - (16,771) - - (16,771)
Other
comprehensive
loss - - (22) - (22)
Total
comprehensive
loss - (16.771) (22) - (16,793)
Transactions
with owners
in their
capacity as
owners:
Issue of new
shares 27,526 - - - 27,526
Share-based
payments - - - 1,943 1,943
At 31 December
2020 -
Unaudited 244,730 (201,397) (1,538) 17,090 58,885
As at 1 July
2021 257,382 (202,046) (1,685) 18,397 72,048
Loss for the
period - (13,775) - - (13,775)
Other
comprehensive
income - - 172 - 172
Total
comprehensive
loss - (13,775) 172 - (13,603)
Transactions
with owners
in their
capacity as
owners:
Issue of new
shares 56,855 - - - 56,855
Capital
raising costs (1,415) - - - (1,415)
Share-based
payments - - - 1,978 1,978
At 31 December
2021 -
Unaudited 312,822 (215,821) (1,513) 20,375 115,863
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes.
Interim Consolidated Statement of Cash Flows - Unaudited
FOR THE SIX-MONTH PERIODED 2021 2020
31 DECEMBER Notes Unaudited Unaudited
A$000 A$000
-------------------------------------------- ------- ----------- --------------
Operating activities
Receipts from customers 25,919 18,519
Payments to suppliers (36,641) (32,556)
Receipt of government grants - 1,565
Interest received 219 45
Interest paid (239) (267)
Income tax paid (113) -
----------- --------------
Net cash flows used in operating activities (10,855) (12,694)
----------- --------------
Investing activities
Purchase of property, plant and equipment 8 (304) (92)
Payments for intangible assets (patents,
licences and trademarks) 9 (181) (190)
Payments for intangible assets (capitalised
development costs) 4, 9 (11,783) -
Maturity of term deposits - 180
----------- --------------
Net cash flows (used in)/from investing
activities (12,268) 102
----------- --------------
Financing activities
Proceeds from issue of new shares 56,855 28,160
Cost of capital raising (1,415) (634)
Principal repayment of lease liabilities (421) -
Repayment of borrowings - (700)
----------- --------------
Net cash flows from financing activities 55,019 26,826
----------- --------------
Net increase in cash and cash equivalents 31,896 14,030
Net (decrease)/increase due to foreign
exchange difference (28) 193
Cash and cash equivalents at 1 July 47,393 38,138
Cash and cash equivalents at 31 December 5 79,261 52,361
=========== ==============
The above interim consolidated statement of cash flows should be
read in conjunction with the accompanying notes.
Notes to the Interim Consolidated Financial Statements -
Unaudited
1 Corporate information
Seeing Machines Limited (the "Company") is a limited liability
company incorporated and domiciled in Australia and listed on the
AIM market of the London Stock Exchange. The address of the
Company's registered office is 80 Mildura Street, Fyshwick,
Australian Capital Territory, Australia.
Seeing Machines Limited and its subsidiaries (the "Group")
provide operator monitoring and intervention sensing technologies
and services for the automotive, mining, transport and aviation
industries.
The interim consolidated financial report of the Group (the
"interim financial report") for the six-month period ended 31
December 2021 was authorised for issue in accordance with a
resolution of the Directors on 30 March 2022.
2 Basis of preparation and changes to the Group's accounting policies
(a) Basis of preparation
The interim financial report for the six-month period ended 31
December 2021 has been prepared in accordance with AASB 134 Interim
Financial Reporting in order to fulfil the reporting requirements
of Rule 18 of the London Stock Exchange's AIM Rules for Companies
issued July 2016.
The interim financial report does not include all the
information and disclosures required in the annual financial report
and should be read in conjunction with the Group's annual
consolidated financial statements as at 30 June 2021.
There is no requirement for the interim financial report to be
subject to audit or review by the external auditor and accordingly
no audit or review has been conducted.
(b) New standards, interpretations and amendments adopted by the Group
The accounting policies applied are consistent with those of the
consolidated financial statements for the year ended 31 June 2021,
except for the adoption of new amendments to the existing standards
as set out below.
The Group has adopted all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to its
operations and effective for an accounting period that begins on or
after 1 July 2021.
(i) Amendments to existing standards effective and adopted with
no significant impact to the Group
There has been no significant impact due to the adoption of any
of the following standards or amendments thereto.
AASB 2020-8 Amendments to Australian Accounting Standards - Interest
Rate Benchmark Reform - Phase 2
----------- ----------------------------------------------------------------
AASB 2021-3 Amendments to Australian Accounting Standards - Covid-19-Related
Rent Concessions beyond 30 June 2021
----------- ----------------------------------------------------------------
(ii) New and amended standards and interpretations that have
been issued but not yet effective or early adopted by the Group
At the date of authorisation of the interim financial report,
the Group has not applied the following new and revised Australian
Accounting Standards, Interpretations and amendments that have been
issued but are not yet effective.
Effective for annual
reporting periods
beginning on or
Standard / Amendment after
-------------------------------------------------------------- -------------------------
AASB 17 and Insurance Contracts and Amendments 1 January 2023
AASB 2020-5 to Australian Accounting Standards
- Insurance Contracts
-------------- ---------------------------------------------- -------------------------
AASB 2014-10; Amendments to Australian Accounting 1 January 2022
AASB 2015-10; Standards - Sale or Contribution of (Editorial corrections
and AASB Assets between an Investor and its in AASB 2017-5
2017-5 Associate or Joint Venture; Amendments applied from 1
to Australian Accounting Standards January 2018)
- Effective Date of Amendments to AASB
10 and AASB 128; and Amendments to
Australian Accounting Standards - Effective
Date of Amendments to AASB 10 and AASB
128 and Editorial Corrections
-------------- ---------------------------------------------- -------------------------
Notes to the Interim Consolidated Financial Statements -
Unaudited
2 Basis of preparation and changes to the Group's accounting policies (continued)
(b) New standards, interpretations and amendments adopted by the Group (continued)
(ii) New and amended standards and interpretations that have
been issued but not yet effective or early adopted by the Group
(continued)
Effective for annual
reporting periods
beginning on or
Standard / Amendment after
--------------------------------------------------------- --------------------
AASB 2020-1 Amendments to Australian Accounting 1 January 2022
and AASB Standards - Classification of Liabilities
2020-6 as Current or Non-Current and Amendments
to Australian Accounting Standards
- Classification of Liabilities as
Current or Non-current - Deferral of
Effective Date
----------- -------------------------------------------- --------------------
AASB 2020-3 Amendments to Australian Accounting 1 January 2022
Standards - Annual Improvements 2018-2020
and Other Amendments
----------- -------------------------------------------- --------------------
AASB 2021-2 Amendments to Australian Accounting 1 January 2023
Standards - Disclosure of Accounting
Policies and Definition of Accounting
Estimates
----------- -------------------------------------------- --------------------
In addition, at the date of authorisation of the interim
financial report the following IASB Standards and IFRS
Interpretations Committee Interpretations were on issue but not yet
effective, but for which Australian equivalent Standards and
Interpretations have not yet been issued:
Effective for
annual reporting
periods beginning
Standard / Amendment on or after
----------------------------------------------- --------------------
Deferred Tax related to Assets and Liabilities 1 January 2023
arising from a Single Transaction - Amendments
to IAS 12
----------------------------------------------- --------------------
The Group is currently in the process of assessing the impact of
the above standards or amendments.
3 Segment information
a. Segment revenue based on operating segment
The following table presents revenue and net profit/(loss)
information for the Group's operating segments for the six-month
periods ended 31 December 2021 and 2020, respectively:
Segment Revenue Segment Profit/(Loss)
FOR THE SIX-MONTH PERIODED 2021 2020 2021 2020
31 DECEMBER A$000 A$000 A$000 A$000
Unaudited
---------------------------------------- ------------------------ ------------------ ------------------
OEM 5,243 3,103 (6,495) (7,515)
Aftermarket 16,421 15,040 844 (267)
Other - - (8,124) (8,989)
Total 21,664 18,143 (13,775) (16,771)
Notes to the Interim Consolidated Financial Statements -
Unaudited
3 Segment information (continued)
b. Revenue from contracts with customers
In the following tables, revenue segments have been
disaggregated by type of goods or services which also reflects the
timing of revenue recognition.
FOR THE SIX-MONTH PERIODED OEM A$000 Aftermarket Total A$000
31 DECEMBER 2021 A$000
Unaudited
------------------------------- ------------------------ ------------------ --------------------
Revenue Types
Sales at a point in time
Consulting - 839 839
Hardware and Installations 519 6,869 7,388
Royalties 2,099 - 2,099
Sales over time
Driver Monitoring - 6,726 6,726
Non-recurring Engineering 2,625 - 2,625
Licencing and royalties - 1,987 1,987
Total revenue 5,243 16,421 21,664
FOR THE SIX-MONTH PERIODED OEM A$000 Aftermarket Total A$000
31 DECEMBER 2020 A$000
Unaudited
------------------------------- ------------------------ ------------------ --------------------
Revenue Types
Sales at a point in time
Paid Research 3 - 3
Consulting - 544 544
Hardware and Installations 221 6,679 6,900
Royalties 778 - 778
Sales over time
Driver Monitoring - 5,811 5,811
Non-recurring Engineering 2,101 253 2,354
Licencing and royalties - 1,753 1,753
Total revenue 3,103 15,040 18,143
c. Geographic information
FOR THE SIX-MONTH PERIODED 2021 2020
31 DECEMBER A$000 A$000
Unaudited
-------------------------------------------------------------------- ------------------
Revenues from external customers
Australia 7,943 6,882
North America 10,038 5,420
Asia-Pacific (excluding Australia) 1,832 2,010
Europe 1,042 3,202
Other 809 629
Total revenue from external customers 21,664 18,143
The revenue information above is based on
the locations of the customers.
Notes to the Interim Consolidated Financial Statements -
Unaudited
4 Research and development expenses
Research and development expense relates to ongoing investment
in the Group's core technology.
The Group incurred total research and development expenses of
A$18,069,000 during the six-months ended 31 December 2021 (2020:
A$8,853,000), of which A$11,783,000 (2020: nil) were
capitalised.
As part of the assessment of research and development expenses
at 30 June 2021, total costs of A$8,311,000 were capitalised for
the year ended 30 June 2021, of which A$3,134,000 pertained to the
six-month period ended 31 December 2020.
5 Cash and cash equivalents
For the purpose of the interim consolidated statement of cash
flows, cash and cash equivalents are comprised of the
following:
31 Dec 30 June
2021 2021
Unaudited Audited
A$000 A$000
---------- --------
Cash at bank 29,307 47,393
Cash held for enhanced yield deposit (maturing
on 10 January 2022) 49,954 -
---------- --------
Total cash and cash equivalents 79,261 47,393
========== ========
On 10 December 2021 the Group entered into an enhanced yield
deposit with HSBC for principal amount of GBP 27,000,000. This is
classified as short-term, maturing on 10 January 2022 with an
interest rate of 4.75%.
6 Trade and other receivables
Current 31 Dec 30 June
2021 2021
Unaudited Audited
A$000 A$000
--------------------------------------- ---------------------- ---------------------
Trade receivables (net of provisions) 16,673 19,427
Deferred finance income (237) (302)
16,436 19,125
Other receivables 1,197 726
Total trade and other receivables -
current 17,633 19,851
The Group recognised nil impairment losses on receivables and
contract assets arising from contracts with customers for the
six-month period ended 31 December 2021 (2020: A$27,000).
7 Inventories
31 Dec 30 Jun
2021 2021
Unaudited Audited
A$000 A$000
---------- --------
Finished goods (at lower of cost and net realisable
value) 7,052 2,640
Provision for obsolescence (13) (13)
---------- --------
Total inventories at the lower of cost and
net realisable value 7,039 2,627
========== ========
Notes to the Interim Consolidated Financial Statements -
Unaudited
8 Property, plant and equipment
Acquisitions and disposals
During the six-month period ended 31 December 2021, the Group
acquired assets with a cost of A$304,000 (2020: A$92,000).
No assets were disposed by the Group during the six-month period
ended 31 December 2021.
9 Intangible assets
During the six-month period ended 31 December 2021, the Group
incurred expenditure of A$11,964,000 (2020: A$190,000) related to
intangibles. A$181,000 (2020: A$190,000) of this expenditure
related to patent and trademark applications and licences.
A$11,783,000 (2020: nil) related to capitalised development
costs.
A$1,000 (2020: nil) of intangibles relating to trademark
applications were disposed by the Group during the six-month period
ended 31 December 2021.
10 Trade payables
At 31 December 2021, the balance of the trade payables was
A$2,372,000 (30 June 2021: A$2,186,000), of which an amount of
A$2,123,000 (30 June 2021: A$2,043,000) was aged less than 60 days;
and an amount of A$249,000 (30 June 2021: A$144,000) was aged over
60 days.
11 Lease liabilities
31 Dec 30 June
2021 2021
Unaudited Audited
A$000 A$000
---------- --------
Current
Lease liabilities 998 918
Non-current
Lease liabilities 4,772 5,272
---------- --------
Total lease liabilities 5,770 6,190
========== ========
The table below summarises the maturity profile of the Group's
liabilities based on contractual undiscounted payments:
<=6 6-12 >1
AT 31 DEC 2021 months A$000 months A$000 year A$000 Total A$000 Carrying
Value A$000
------------------- ---------------------- ------------------ ----------------- ------------------- -------------
Lease liabilities 697 712 5,638 7,047 5,770
====================== ================== ================= =================== =============
<=6 6-12 >1
AT 30 JUN 2021 months A$000 months A$000 year A$000 Total A$000 Carrying
Value A$000
------------------- ---------------------- ------------------ ----------------- ------------------- -------------
Lease liabilities 685 694 6,345 7,724 6,190
====================== ================== ================= =================== =============
12 Dividends paid
No interim dividends or distributions have been made to members
during the six-month period ended 31 December 2021 (2020: nil) and
no interim dividends or distributions have been recommended or
declared by the directors in respect of the six-month period ended
31 December 2021 (2020: nil).
Notes to the Interim Consolidated Financial Statements -
Unaudited
13 Earnings per share
The following table reflects the income and share data used in
the basic and diluted earnings per share computations:
Earnings used in calculating earnings per share
Consolidated
2021 2020
FOR THE SIX-MONTH PERIODED 31 DECEMBER A$000 A$000
-------------------------------------------- ------------------- ------------------
For basic and diluted earnings per share:
Net loss (13,775) (16,771)
Net loss attributable to ordinary equity
holders of the Company (13,775) (16,771)
Weighted average number of shares
2021 2020
AT 31 DECEMBER Thousands Thousands
-------------------------------------------- ------------------- ------------------
Weighted average number of ordinary shares
for basic earnings per share 3,931,717 3,506,736
Weighted average number of ordinary shares
adjusted for the effect of
dilution
3,931,717 3,506,736
14 Share capital
Consolidated
31 Dec 30 June
2021 2021
Unaudited Audited
A$000 A$000
------------------------------------------------ ------------------------ --------------------
Ordinary shares 312,822 257,382
Total contributed equity 312,822 257,382
Number of ordinary shares
Consolidated
31 Dec 30 June
2021 2021
Unaudited Audited
Thousands Thousands
------------------------------------------------- ------------------------ --------------------
Issued and fully paid 4,155,419 3,875,618
Fully paid shares carry one vote per share
and carry the right to dividends.
The Company has no set authorised share capital
and shares have no par value.
Movement in ordinary shares:
Shares
Thousands A$000
------------------------------------------------- ------------------------ --------------------
As at 1 July 2021 3,875,618 257,382
Shares issued 279,801 56,855
Transaction costs - (1,415)
As at 31 December 2021 4,155,419 312,822
Notes to the Interim Consolidated Financial Statements -
Unaudited
15 Share-based payments
LTI 2021 - Performance rights or share options offers -
Executive and key staff
From 1 July 2015, senior staff and other key staff are offered
long term incentive (LTI) performance rights or share options.
Under this structure, the staff are only able to exercise the
rights, and have new ordinary shares issued to them, if any
performance, market and vesting conditions are met. These
conditions typically include a performance condition requiring the
staff member to achieve a minimum "meets expectations" rating and
some rights have included a market condition in the form of a
minimum Target Share Price (TSP). The vesting period ranges from 9
months to 5 years from the end of the relevant financial year or
grant date. Performance rights or options are often offered as part
of the annual remuneration review and may be offered at other
times. Any offer of performance rights or options requires Board
approval and, when granted, is announced to the market.
In November 2021 the Company awarded a total of 64,996,414
performance rights in respect of ordinary shares to Executive and
key staff to be issued at nil cost.
14,845,702 of the performance rights under the LTI have been
awarded in recognition of the past achievement of the Company's
objectives in FY2021. The rights were valued at the spot rate of
the shares at grant date, and the value is amortised over the
vesting period. The rights vest annually over 3 years in equal
tranches with the first vesting date being 1 July 2022 and require
the employee to remain continuously employed by the Company until
each relevant vesting date. If an employee leaves before the rights
vest and the service condition is therefore not met, the rights
lapse.
In some cases, for 'good leavers', determined on a discretionary
basis by management, options are prorated for service in the
current period and that portion are vested on termination, and the
remaining rights are cancelled.
The remaining 50,150,712 performance rights have been granted
under Key Person Agreements in respect of a total of 27 nominated
key people. These people have been identified as having key roles
directly related to the Company's long-term success and the
allocation of accelerated performance rights has been implemented
by the Board to successfully retain these employees and affirm
successful delivery on a range of projects and customer
commitments. These awards have an accelerated grant with delayed
vesting taking place on 1 July 2024 and require the employee to
remain continuously employed by the Company until the vesting date.
If an employee leaves before the rights vest and the service
condition is therefore not met, the rights lapse.
There is no cash settlement of the rights.
16 Related party disclosures
The following table provides the total amount of transactions
that have been entered into with related parties during the
six-month period ended 31 December 2021 and 2020:
Balance Granted as Acquired Balance
1-Jul Remuneration or sold for 31-Dec
cash
A$000 A$000 A$000 A$000
------- ------------------ -------------- ----------
Director shares:
Directors' securities 2021 5,714 - 238 5,952
Directors' securities 2020 6,837 1,604 - 8,441
17 Commitments
As at 31 December 2021, the group had commitments of
A$32,598,000 (31 December 2020: A$23,674,000) relating to the
manufacturing contract for the Group's Guardian 2.1 product for the
period January 2022 to March 2023 (31 December 2020: January 2021
to January 2022).
Notes to the Interim Consolidated Financial Statements -
Unaudited
18 Events after the reporting period
Other than the matters outlined below, there have been no
matters that have occurred subsequent to the reporting date, which
have significantly affected, or may significantly affect, the
Group's operations, results or state of affairs in future
periods.
-- As noted in cash and cash equivalents (refer Note 5), the
enhanced yield deposit matured on 10 January 2022. The strike rate
of the transaction was 0.5365 GBP/AUD, resulting in a principal
amount of A$50,326,000 and interest of A$203,000.
[1] This refers to underlying growth rates at constant currency
or adjusting for currency so business results can be viewed without
the impact of fluctuations in foreign currency exchange rates,
thereby facilitating period-to-period comparisons of Seeing
Machines business performance. To present this information, current
period results and comparative period results are converted into
Australian dollars at the 31 December 2021 exchange rate.
[2] Market expectations for FY2022 are for revenue of A$55.6m
and EBITDA of A$(32.7m)
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END
IR KZGFFFGKGZZG
(END) Dow Jones Newswires
March 30, 2022 02:00 ET (06:00 GMT)
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