Integrated Media Technology Limited — FY2023 Form 20-F
Reporting period: Year ended December 31, 2023; this is an annual report, not a standalone fourth-quarter filing. Filed October 22, 2024. The company is incorporated in Australia, operates primarily from Malaysia, and reports under IFRS in U.S. dollars.
Business context
IMTE reported limited operations and is attempting to build businesses in halal products and certification, switchable glass, nano-coated air filters, a digital-asset marketplace, and new-energy products. In 2023, halal products were its only reported operating revenue. It acquired Itana Energy Pty Ltd during the year and continued pursuing switchable-glass manufacturing and other planned businesses.
Financial results and liquidity
| Metric | FY2023 | FY2022 |
|---|---|---|
| Revenue | $373,676 | $364,405 |
| Gross profit (loss) | $112,110 | $(111,141) |
| Gross margin | Approximately 30% | Negative |
| Net loss | $(18,350,112) | $(10,901,539) |
| Operating cash flow | $2,840,058 | $(17,183,849) |
| Investing cash flow | $(14,998,240) | $(15,083,437) |
| Financing cash flow | $12,783,427 | $32,118,268 |
| Cash at year-end | $675,781 | $50,536 |
| Current assets / current liabilities | $3,690,314 / $2,387,649 | $21,280,068 / $7,493,844 |
| Total liabilities | $13,531,649 | $9,902,115 |
- Revenue increased 2.5% and came entirely from halal-product sales in Malaysia. There was no reported 2023 revenue from glass, filters, digital assets, or energy products.
- Net loss widened by about $7.45 million. The principal unusual charge was a $19.28 million “other expenses” line, including provisions for equipment deposits ($5.0 million), a loan receivable ($6.902 million), other receivables and current assets, inventory, and other items. The filing also reports a $2.396 million gain on warrant fair-value changes, partly offsetting the loss.
- Operating cash flow turned positive, but this did not reflect profitable operations: the cash-flow reconciliation includes substantial non-cash provisions and a $5.175 million working-capital inflow. Investing cash outflows included $15 million of equipment deposits.
- At year-end, current assets exceeded current liabilities by $1.303 million, but cash was only $675,781. Current assets included $2.997 million of inventory; inventory was written down by $1.009 million during the year.
- Debt disclosures include a $15 million convertible note issued in 2023, with a $11.144 million year-end carrying amount, as well as $1.449 million of derivative liabilities. The note has conversion features and could dilute shareholders.
- Accumulated losses were $53.821 million. The auditor highlighted substantial doubt about the company’s ability to continue as a going concern; management said available cash might not fund the next 12 months’ working-capital needs. The company expects to seek additional equity or debt financing.
Material changes and unusual items
- Halal-product gross profit improved to $112,110 from a $111,141 gross loss in 2022, as the company shifted sales toward Malaysia. Management attributed the prior-year loss to higher product and transport costs, market pricing, and European market-entry pricing.
- Major asset provisions were recorded in 2023. The $6.902 million eGlass-related loan receivable was fully provided for; the $5 million equipment-deposit provision reduced the carrying amount of deposits, which nevertheless totaled $24.261 million at year-end.
- The company sold its China glass business in 2022 in exchange for a $6.8 million loan bearing 5% interest. The loan and accrued interest were fully provided for in 2023. The filing describes repayment options involving eGlass shares or cash.
- IMTE changed its functional currency to the U.S. dollar effective January 1, 2023. It also completed a 1-for-10 share consolidation in October 2023.
- The 2023 loss-per-share figure was $(4.91), compared with $(4.86) in 2022; the share counts and per-share data reflect the share consolidation.
Outlook, risks, and contingencies
- Management’s 2024 plans include growing halal sales and pursuing halal-certification work, promoting the Ouction marketplace, starting new-energy product sales, and advancing switchable-glass and air-filter operations. Execution is expressly dependent on funding, suppliers, manufacturing partners, and customer or distributor demand; the filing gives no quantified revenue or profit guidance.
- Management said it expected commercial operation of switchable-glass lamination lines in 2025, subject to funding, staffing, and execution. The filing describes a planned Malaysian facility and deposits for additional lines, but also reports a substantial provision against an equipment deposit.
- The company identifies material risks from its recurring losses, limited operating history, need for additional capital, reliance on distributors and third-party manufacturing, product acceptance, competition, foreign-exchange movements, and digital-asset regulation and volatility. It states that it does not carry product-liability or other business insurance.
- Management concluded that disclosure controls and internal control over financial reporting were ineffective at December 31, 2023. Reported material weaknesses include inadequate segregation of duties, insufficient technical accounting expertise, and lack of formal accounting processes. Management said it planned to add accounting personnel and improve review procedures.
- Nasdaq notified the company in May 2024 that it was not compliant with timely-filing requirements and could face delisting if it failed to cure the deficiency. The filing describes a compliance plan and extended filing timetable; it does not clearly establish the ultimate Nasdaq outcome. ASIC also notified the company in September 2024 of alleged contraventions relating to report lodgments and resident-director requirements; IMTE said it supplied requested information.
- Disclosure inconsistency to note: the 2023 convertible note is described as interest-free in parts of the filing, but Note 20 and the financial-risk disclosures state a 12% interest rate. Confirm the executed note terms and accounting treatment.
Important facts for investors to verify
- Whether IMTE has secured sufficient financing to meet operating needs and fund planned businesses, and the current status of its going-concern plans.
- The recoverability, counterparties, and supporting documentation for the $24.261 million equipment-deposit balance, including the $5 million provision, and the fully provided eGlass loan.
- The actual interest, conversion, maturity, and dilution terms of the $15 million 2023 convertible note, given conflicting interest-rate descriptions in the filing.
- Whether Nasdaq accepted the compliance plan and whether the company remains in good standing; also confirm the status and resolution of the ASIC notice.
- Evidence of manufacturing readiness, customer orders, distributor commitments, and certification progress for the businesses that have not yet generated reported revenue.
- The quality and realizability of inventory and receivables: the filing records large provisions, including a full allowance against 2023 gross trade receivables of $791,496.