
	2022						2021
(in Australian dollars)	Current		Non-Current		Total		Current		Non-Current		Total
Secured
Bank loans (i)	$	1,300,037	$	50,563,095	$	51,863,132	$	110,752	$	5,297,180	$	5,407,932
Total secured borrowings		1,300,037		50,563,095		51,863,132		110,752		5,297,180		5,407,932

Unsecured
Other loans (ii)		174,053		1,589,357		1,763,410		166,308		689,385		855,693
Total unsecured borrowings		174,053		1,589,357		1,763,410		166,308		689,385		855,693
Total borrowings	$	1,474,090	$	52,152,452	$	53,626,542	$	277,060	$	5,986,565	$	6,263,625

(i) Secured liabilities and assets pledged as security

(a)

In December 2017, the group entered into a loan facility to purchase commercial land and buildings in Nova Scotia from which the Battery Technology Solutions business operates. The initial amount loaned under the facility was CAD $1,330,000.

On February 5, 2021, the group extended the loan facility and the total available amount now available under the facility was CAD $2,680,000. At June 30, 2022 the facility had been fully drawn down. The total liability at June 30, 2022 is CAD $2,597,512.

The facility is bearing interest at the bank’s base rate minus 1% payable monthly and principal of the loan repayable in 265 monthly principal instalments of CAD $9,760 followed by 1 monthly principal instalment of CAD $1,352, maturing September 2044.

The Group's freehold land and buildings at 177 Bluewater Road, Bedford, Canada are pledged as collateral against the bank loan. The carrying amount of this asset is $4,890,976 (June 2021: $3,104,819).

For the year ended June 30, 2022, the Group incurred interest expense of CAD $94,210 (2021 – CAD $48,168; 2020 – CAD $64,470).

(b)

On May 28, 2021, the Group purchased commercial land and buildings in Nova Scotia, Canada for CAD$3,550,000 from which the Cathode business will operate. The Group entered into a loan facility to purchase the land and buildings. The initial amount loaned under the facility was CAD $4,375,000. On January 24, 2022, the group extended the loan facility and the total available amount now available under the facility was CAD $4,985,000. At June 30, 2022 the facility had been drawn down to CAD $4,923,170 and CAD $61,830 remains to be disbursed. The total liability at June 30, 2022 is CAD $4,923,170.

The facility is bearing interest at the bank’s base rate minus 1% payable monthly and principal of the loan repayable in 1 monthly principal instalment of CAD $18,610 in December 2022, followed by 299 monthly principal instalments of CAD $16,610 commencing January 2023, maturing November 2047.

The Group’s freehold land and buildings at 110 Simmonds Drive, Dartmouth, Canada are pledged as collateral against the bank loan. The carrying amount of this asset is $5,665,963 (June 2021: $4,006,926).

For the year ended June 30, 2022, the Group incurred interest expense of CAD $156,522 (2021 – CAD $9,975; 2020 – CAD $Nil).

(c)

On January 24, 2022, the group entered into a loan facility to purchase equipment. The total amount available under the facility was CAD $2,300,000.

At June 30, 2022 the facility had been drawn down to CAD $500,000 and CAD $1,800,000 remains to be disbursed. The total liability at June 30, 2022 is CAD $500,000.

The facility is bearing interest at the bank’s base rate minus 1.5% payable monthly and principal of the loan repayable in 1 monthly principal instalment of CAD $19,960 in December 2023, followed by 119 monthly principal instalments of CAD $19,160 commencing January 2024, maturing November 2033. Equipment being purchased are pledged as collateral against the bank loan.

For the year ended June 30, 2022, the Group incurred interest expense of CAD $7,617 (2021 – CAD $Nil; 2020 – CAD $Nil).

(d)

On July 28, 2021, the Group purchased commercial land and buildings in Chattanooga, USA for USD $42,600,000 to expand the NAM business. The Group entered into a loan facility with PNC Real Estate for USD$30,100,000 and an interest rate of 4.09% to purchase the land and buildings. The loan has been fully drawn down as at June 30, 2022. The total liability at June 30, 2022 is USD $29,467,266. The facility is repayable in monthly instalments, which commenced in September 2021 and end in August 2031. The land and buildings at 1029 West 19th Street, Chattanooga, USA have been pledged as security for the loan, the carrying amount of which is $40,913,359. For the

year ended June 30, 2022, the Group incurred interest expense of USD$223,229 (2021 -USD$92,189; 2020- USD $80,445).

This loan imposes certain loan covenants to ensure that the following financial ratios are met:

•

net assets of USD$30.1 million to be maintained (exclusive of the land and building secured by this loan and minimum liquidity of USD$3.1 million); and

•

a debt service coverage ratio of 1.2 to 1 is to be maintained.

NOVONIX Limited has complied with the financial covenants of its borrowing facilities during both the 2022 and 2021 financial years.

In December 2017, the group entered into a contribution agreement with Atlantic Canada Opportunities Agency (ACOA), for CAD$500,000. As at June 30, 2022, CAD$500,000 of the facility has been drawn down. The funding was to assist with expanding the market to reach new customers through marketing and product improvements. The facility is repayable in monthly instalments which commenced in September 2019 and end in May 2027.

In October 2018, the group entered into another contribution agreement with Atlantic Canada Opportunities Agency (ACOA), for CAD$500,000. As at June 30, 2022, CAD$500,000 of the facility has been drawn down. The funding was to assist in establishing a battery cell manufacturing facility. The facility is repayable in monthly instalments which commenced in April 2020 and end in March 2026.

During the year ended June 30, 2022, the group entered into a further contribution agreement with Atlantic Canada Opportunities Agency (ACOA), for CAD$250,000. As at June 30, 2022, the facility has been fully drawn down. The funding was to assist in expanding the BTS operations. The facility is repayable in monthly instalments commencing in January 2024 and ending December 2026.

During the year ended June 30, 2022, the group entered into a further contribution agreement with Atlantic Canada Opportunities Agency (ACOA), for CAD$1,000,000. As at June 30, 2022 it has been drawn down to CAD $900,000. The funding will be used to will assist with purchasing equipment for the cathode pilot line and expansion of cell making capabilities. The facility is repayable in monthly instalments commencing in January 2025 and ending December 2036.

For all borrowings, other than the ACOA loan noted at (ii) above, the fair values are not materially different to their carrying amounts, since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature.

The ACOA loans are interest free. The initial fair value of the ACOA loans were determined using a market interest rate for equivalent borrowings at the issue date. This resulted in a day one gain of $100,152 in FY2018 (December 2017 loan), a day one gain of $114,106 in FY2019 (October 2018 loan) and a day one gain of $302,922 in the year ended June 30, 2022.