Integrated Media Technology Limited — FY2022 Form 20-F
Reporting period: Fiscal year ended December 31, 2022; this is an annual report, not a standalone Q4 filing. Financial amounts below are in Australian dollars (A$), unless stated otherwise. The company is an Australian-incorporated issuer listed on Nasdaq and reports under IFRS.
Business context and reporting period
IMTE shifted its operating focus away from China and Hong Kong toward Malaysia, Europe and the United States. It sold its China electronic-glass subsidiary in September 2022 and reduced its Greifenberg financial-research interest to 23.96%, accounting for it as an associate. Its current initiatives include halal product sales and certification, nano-coated air-filter products, U.S. switchable-glass lamination, and the Ouction digital-asset marketplace.
Halal products were the only operating-revenue source in 2022. The other business lines had not established material revenue. The company reported 15 employees at year-end, principally in Malaysia.
Financial and operating metrics
| Metric | FY2022 | FY2021 |
|---|---|---|
| Operating revenue | A$526,807 | A$193,113 |
| Gross profit / (loss) | (A$160,670) | A$43,666 |
| Gross margin | (30.5%) | 22.6% |
| Net loss | A$13,862,503 | A$6,585,626 |
| Net loss per share | A$0.77 | A$0.70 |
| Cash used in operating activities | A$17,850,642 | A$7,971,326 |
| Cash used in investing activities | A$21,879,871 | A$12,144,439 |
| Cash provided by financing activities | A$39,421,268 | A$18,120,257 |
| Cash and cash equivalents at year-end | A$74,106 | A$274,767 |
Revenue increased 72.8%, mainly from halal product sales, but cost of sales exceeded revenue, producing a gross loss. Management attributed the margin decline to product pricing and mix, transport-cost increases, market conditions following the war in Ukraine, and foreign-exchange movements. Net loss more than doubled. Notable FY2022 expenses included A$6.23 million in professional and consulting costs, A$1.99 million in depreciation and amortization, and a A$3.57 million non-cash fair-value loss on warrant liabilities. The company also recorded a A$1.12 million inventory provision.
At December 31, 2022, total assets were A$57.47 million and total liabilities A$14.55 million. Current assets were A$31.76 million versus current liabilities of A$10.98 million, giving reported net current assets of A$20.78 million, compared with net current liabilities of A$6.45 million a year earlier. Current assets included A$6.15 million of inventory, A$10.68 million of loan receivable, A$7.83 million due from former group companies and A$3.84 million of trade and other receivables. Non-current equipment deposits were A$20.91 million. These balances are not equivalent to cash liquidity.
Year-end liabilities included A$7.55 million of convertible promissory notes, A$2.41 million of derivative liabilities and A$3.57 million of warrant liabilities. The filing reports no cash dividends. No income-tax expense was recognized.
Material changes versus the prior comparable period
- Revenue rose from A$193,113 to A$526,807, but the business mix shifted from air-filter and minimal display sales in 2021 to halal products in 2022.
- Gross margin fell from 22.6% to negative 30.5%; net loss increased from A$6.59 million to A$13.86 million.
- Operating cash outflow increased to A$17.85 million. Financing inflows, primarily from share issues and convertible notes, were A$39.42 million.
- Current assets rose sharply, including substantial loan, inventory, receivable and former-group-company balances, while cash remained only A$74,106.
- IMTE completed the China eGlass disposal for a US$6.8 million debt instrument bearing 5% interest and due in two years; it also disposed of other subsidiaries and deconsolidated Greifenberg.
Outlook, risks and unusual items
Management planned to expand halal sales and pursue certification, launch air-filter products after manufacturing and chip-supply delays, develop U.S. switchable-glass operations, and attract users and products to Ouction. It discussed potential orders and revenue in 2023, but provided no numerical revenue, earnings or cash-flow guidance. Execution depends on funding, manufacturing readiness, certification and distribution, customer acceptance, and strategic partners.
Going concern: Management and the auditor identified substantial doubt about IMTE’s ability to continue as a going concern. The company reported a A$13.86 million net loss, A$17.85 million operating cash outflow and A$49.78 million accumulated deficit for 2022. The filing says available cash resources would not fund operations into the first quarter of 2024; its financial-statement note also says current cash may not meet anticipated working-capital needs for the next 12 months. Management expects to seek additional equity or debt financing and improve revenue and cost control; success is not assured.
Controls and audit: Management concluded disclosure controls and internal control over financial reporting were ineffective, citing inadequate segregation of duties, limited technical accounting expertise and lack of formal processes in key areas. The auditor issued an unqualified opinion on the financial statements, highlighted going-concern uncertainty, and identified convertible-note valuation as a critical audit matter. The auditor did not audit internal-control effectiveness.
Other investor risks: The filing reports a Nasdaq minimum-bid-price deficiency notice, with a stated compliance deadline of May 1, 2023. Further equity issuance, outstanding warrants and convertible instruments could dilute holders. IMTE faces currency, funding, inventory, customer and distributor, manufacturing, product-quality, cybersecurity, intellectual-property and digital-asset regulatory risks. The filing states it carries no product-liability or other business insurance.
Most important facts for investors to verify
- Whether the eGlass loan receivable and amounts due from former group companies are collectible, when they mature, and what repayment or share-conversion terms apply.
- How much of reported current assets can be realized promptly, particularly inventory, deposits, receivables and related former-group-company balances; reconcile this with the A$74,106 cash balance and going-concern disclosure.
- Current funding runway, subsequent financing, cash burn and any progress toward profitability, including whether the filing’s differing liquidity statements have been resolved.
- Commercial progress and unit economics for halal products, certification, air filters, U.S. switchable glass and Ouction; confirm actual orders, production capability and required capital.
- Status of Nasdaq bid-price compliance and the potential dilution or cash proceeds from outstanding warrants and convertible notes, including the US$5.5 million eGlass-related notes.
- Remediation of the disclosed material weaknesses, and any subsequent material changes, restatements or control deficiencies.