Exhibit 99.1
Mobilicom Limited
Interim Condensed financial statements as of June 30, 2023, unaudited
| Mobilicom Limited Auditor’s independence declaration |
|
| i |
Mobilicom Limited For the half-year ended June 30, 2023 |
|
| Consolidated | ||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||
| Note | 2023 | 2022 | 2023 | |||||||||||
| AUD$ | AUD$ | $* | ||||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||||
| Revenue | ||||||||||||||
| Cost of sales | ( | ) | ( | ) | ( | ) | ||||||||
| Government grants | ||||||||||||||
| Foreign exchange gains/(losses) | ||||||||||||||
| Interest received | ||||||||||||||
| Net gain on fair value movement of warrants | 6 | |||||||||||||
| Total other income | ||||||||||||||
| Expenses | ||||||||||||||
| Selling and marketing expenses | ( | ) | ( | ) | ( | ) | ||||||||
| Research and development | ( | ) | ( | ) | ( | ) | ||||||||
| General and administration expenses | ( | ) | ( | ) | ( | ) | ||||||||
| Finance costs | ( | ) | ( | ) | ( | ) | ||||||||
| Foreign exchange gains/(losses) | ( | ) | ||||||||||||
| Loss before income tax expense | ( | ) | ( | ) | ( | ) | ||||||||
| Income tax expense | ( | ) | ( | ) | ||||||||||
| Loss after income tax expense for the half-year attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income | ||||||||||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||||||||||
| Re-measurement of defined benefit plans | ||||||||||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||||||||
| Foreign currency translation | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income for the half-year, net of tax | ( | ) | ( | ) | ( | ) | ||||||||
| Total comprehensive income for the half-year attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ( | ) | ||||||||
| AUD Cents | AUD Cents | Cents | ||||||||||||
| Basic earnings/(losses) per share | 11 | ( | ) | ( | ) | ( | ) | |||||||
| Diluted earnings /(losses) per share | 11 | ( | ) | ( | ) | ( | ) | |||||||
| * |
The above consolidated condensed statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
1
Mobilicom Limited Consolidated interim condensed statement of financial position As at June 30, 2023 |
|
| Consolidated | ||||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||
| Note | 2023 | 2022 | 2023 | |||||||||||
| AUD$ | AUD | $$* | ||||||||||||
| Unaudited | Audited | Unaudited | ||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | ||||||||||||||
| Trade receivables | ||||||||||||||
| Other receivables | ||||||||||||||
| Restricted cash | ||||||||||||||
| Inventories | ||||||||||||||
| Total current assets | ||||||||||||||
| Non-current assets | ||||||||||||||
| Property, plant and equipment | ||||||||||||||
| Right-of-use assets | ||||||||||||||
| Total non-current assets | ||||||||||||||
| Total assets | ||||||||||||||
| Liabilities | ||||||||||||||
| Current liabilities | ||||||||||||||
| Trade and other payables | 4 | |||||||||||||
| Lease liabilities | 5 | |||||||||||||
| Warrants financial liability | 6 | |||||||||||||
| Total current liabilities | ||||||||||||||
| Non-current liabilities | ||||||||||||||
| Lease liabilities | 5 | |||||||||||||
| Employee benefits | ||||||||||||||
| Governmental liabilities on grants received | ||||||||||||||
| Total non-current liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
| Net assets | ||||||||||||||
| Equity | ||||||||||||||
| Issued capital | 7 | |||||||||||||
| Reserves | 8 | ) | ( | ) | ||||||||||
| Accumulated losses | ( | ) | ( | ) | ( | ) | ||||||||
| Total equity | ||||||||||||||
| * |
The above consolidated condensed statement of financial position should be read in conjunction with the accompanying notes
2
Mobilicom Limited Consolidated interim condensed statement of changes in equity For the half-year ended June 30, 2023 |
|
| Share based | Foreign currency | |||||||||||||||||||||||
| Issued | payments | translation | Remeasurement | Accumulated | Total | |||||||||||||||||||
| Consolidated | capital | reserve | reserve | reserve | losses | equity | ||||||||||||||||||
| AUD$ | AUD$ | AUD$ | AUD$ | AUD$ | AUD$ | |||||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||||
| Balance at January 1, 2022 | ( | ) | ( | ) | ||||||||||||||||||||
| Loss after income tax expense for the half-year | ( | ) | ( | ) | ||||||||||||||||||||
| Other comprehensive income for the half-year, net of tax | ( | ) | ( | ) | ||||||||||||||||||||
| Total comprehensive income for the half-year | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
| Share-based payments | ||||||||||||||||||||||||
| Balance at June 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||
The above consolidated condensed statement of changes in equity should be read in conjunction with the accompanying notes
3
Mobilicom Limited Consolidated interim condensed statement of changes in equity For the half-year ended June 30, 2023 |
|
| Share based | Foreign currency | |||||||||||||||||||||||||||
| Issued | payments | translation | Remeasurement | Accumulated | Total | Total | ||||||||||||||||||||||
| Consolidated | capital | reserve | reserve | reserve | losses | equity | equity | |||||||||||||||||||||
| AUD$ | AUD$ | AUD$ | AUD$ | AUD$ | AUD$ | $ | ||||||||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||||||||||
| Balance at January 1, 2023 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Loss after income tax expense for the half-year | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Other comprehensive income for the half-year, net of tax | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Total comprehensive income for the half-year | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||||||
| Share-based payments | ||||||||||||||||||||||||||||
| Forfeiture of options | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Expiry of options | ( | ) | ||||||||||||||||||||||||||
| Cancellation of shares | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance at June 30, 2023 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| * | US Dollars numbers presented solely for convenience of the reader |
The above consolidated condensed statement of changes in equity should be read in conjunction with the accompanying notes
4
Mobilicom Limited Consolidated interim condensed statement of cash flows For the half-year ended June 30, 2023 |
|
| Consolidated | ||||||||||||
| June 30, | June 30, | June 30, | ||||||||||
| 2023 | 2022 | 2023 | ||||||||||
| AUD$ | AUD$ | $* | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Receipts from customers (inclusive of GST) | ||||||||||||
| Payments to suppliers and employees (inclusive of GST) | ( | ) | ( | ) | ( | ) | ||||||
| Interest received | ||||||||||||
| Interest paid on lease liabilities | ( | ) | ( | ) | ( | ) | ||||||
| Government grants received | ||||||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ( | ) | ||||||
| Cash flows from investing activities | ||||||||||||
| Payments for property, plant and equipment | ( | ) | ( | ) | ( | ) | ||||||
| Net cash used in investing activities | ( | ) | ( | ) | ( | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Shares buyback (Small parcel plan) payments | ( | ) | ( | ) | ||||||||
| Repayment of lease liabilities | ( | ) | ( | ) | ( | ) | ||||||
| Net cash used in financing activities | ( | ) | ( | ) | ( | ) | ||||||
| Net decrease in cash and cash equivalents and restricted cash | ( | ) | ( | ) | ( | ) | ||||||
| Cash and cash equivalents and restricted cash at the beginning of the financial half-year | ||||||||||||
| Effects of exchange rates on cash and cash equivalents and restricted cash | ( | ) | ( | ) | ( | ) | ||||||
| Cash and cash equivalents and restricted cash at the end of the financial half-year | ||||||||||||
| * |
The above consolidated condensed statement of cash flows should be read in conjunction with the accompanying notes
5
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 1. General information
The condensed interim unaudited financial statements cover Mobilicom Limited as a Group consisting of Mobilicom Limited and the entities it controlled at the end of, or during, the half year. The condensed interim unaudited financial statements are presented in Australian dollars, which is Mobilicom Limited’s functional and presentation currency.
The conversion from Australian dollars (AUD$)
into U.S. dollars ($) was made at the exchange rate as of June 30, 2023, on which $
The functional currency of Mobilicom Limited’s subsidiary, Mobilicom Ltd (“Mobilicom Israel”), is Israeli New Shekels.
Mobilicom Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:
C/- JM Corporate Services Pty Ltd
Level 21, 459 Collins Street
Melbourne, Victoria, 3000
Australia
The company’s principal activities are design, develop and deliver of cybersecurity and smart solutions for drone, robotics and autonomous platforms.
The Company is an end-to-end provider of cybersecurity and robust solutions for drones, robotics & autonomous platforms. As a high-tech company it designs, develops, and delivers robust solutions focused primarily on targeting global drone, robotics and autonomous system manufacturers. The Company holds patented technology & unique know-how for Mobile Mesh networking. It has a large, field proven portfolio of commercialized products used in a variety of applications. The Company is growing a global customer base with sales to high profile customers including corporates, governments, and military departments. Mobilicom’s competitive advantages include outstanding security capabilities and performance in harsh environmental conditions. The Company’s large solution portfolio is being deployed worldwide, seeing the Company derive revenue from hardware, software sales & licensing fees and professional support services for its solutions.
The condensed interim unaudited financial statements were authorised for issue, in accordance with a resolution of directors, on August 31, 2023.
Note 2. Material accounting policy information
These general-purpose condensed interim unaudited financial statements for the interim half-year reporting period ended June 30, 2023, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).
These general-purpose condensed interim unaudited financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these condensed interim unaudited financial statements are to be read in conjunction with the annual report for the year ended December 31, 2022, and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Australian Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
New Accounting Standards and Interpretations not yet mandatory or early adopted
International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the half-year ended June 30, 2023.
Going concern
The consolidated entity incurred a net loss
after tax for the half-year ended June 30, 2023, of AUD$
| ● | As of June 30, 2023, the consolidated entity had cash and cash equivalents of AUD$ |
| ● | As at the end of the half year, the Company had a trade and other receivables balance amounting to AUD$ |
6
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 3. Operating segments
The company operates in one segment. Management does not segregate its business for internal reporting. The company’s chief operating decision maker (“CODM”) evaluates the performance of its business based on financial data consistent with the presentation in the accompanying financial statements. The company concluded that its unified business is conducted globally and accordingly represents one operating segment.
Note 4. Current liabilities - trade and other payables
| Consolidated | ||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | ||||||||||
| AUD$ | AUD$ | $ | ||||||||||
| Unaudited | Audited | Unaudited | ||||||||||
| Trade payables | ||||||||||||
| Other payables | ||||||||||||
Note 5. Lease liabilities
| Consolidated | ||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | ||||||||||
| AUD$ | AUD$ | $ | ||||||||||
| Unaudited | Audited | Unaudited | ||||||||||
| Current | ||||||||||||
| Non-current | ||||||||||||
| Lease liability | ||||||||||||
7
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 6. Current liabilities - Warrants financial liability
| Consolidated | ||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | ||||||||||
| AUD$ | AUD$ | $ | ||||||||||
| Unaudited | Audited | Unaudited | ||||||||||
| Warrants at fair value | ||||||||||||
The Company accounts for warrants issued to investors in conjunction with IASB.
On August 25, 2022, the Company completed
its U.S. listing via the issuance of
In addition, on August 25, 2022,
under the U.S listing the Company granted a total
The pre-funded warrant and representative warrant are referred herein together as “warrants”. The warrants represent financial liabilities at fair value through profit or loss.
As of June 30, 2023, the Group reassessed the valuation methodology applied to the valuation of the warrants, in conjunction with an independent valuation from a third party. The warrants are trading on Nasdaq and based on current market activity, it was deemed to be in an active market. The directors believe the quoted share price of the MOBBW security trading on the Nasdaq represents a more accurate valuation of the warrants based on the guidance of IFRS 13 Fair Value Measurement where the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities. This has resulted in a change of valuation methodology that was applied at December 31, 2022 and is a change in accounting estimates.
For the half-year ended June 30, 2023, the Company
recorded fair value gain, net of translation adjustments of AUD$
| Assumption | At issue date | At December 31, 2022 | At June 30, 2023 | |||||||||
| Value methodology | Level 2 | Level 2 | Level 1 | |||||||||
| Historical volatility | % | % | ||||||||||
| Exercise price | US$ | US$ | US$ | |||||||||
| Share price | US$ | US$ | US$ | |||||||||
| Risk-free interest rate | % | % | ||||||||||
| Dividend yield | % | % | ||||||||||
| Fair value per warrant | US$ | US$ | | US$ | ||||||||
Fair value measurements using input type | ||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||
| Balance as of December 31, 2022 | AUD$ | |||||||||||
| Transfer to level 1 valuation input | AUD$ | AUD$ | ( | ) | ||||||||
| Fair value gain recognized in consolidated statement of profit or loss and other comprehensive income | ( | ) | ||||||||||
| Translation adjustments | ||||||||||||
| Warrant liability as of June 30, 2023 | AUD$ | |||||||||||
8
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 7. Equity - issued capital
| Consolidated | ||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | ||||||||||||||||
| Shares | Shares | AUD$ | AUD$ | $ | ||||||||||||||||
| Unaudited | Audited | Unaudited | Audited | Unaudited | ||||||||||||||||
| Ordinary shares - fully paid | ||||||||||||||||||||
| Details | Date | Shares | Issue price | AUD$ | $ | |||||||||||||
| Balance | ||||||||||||||||||
| Expiry of options | ||||||||||||||||||
| Cancelation of shares through small parcel buy back | ( | ) | $ | ( | ) | ( | ) | |||||||||||
| Balance | ||||||||||||||||||
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.
Employee Incentive Options
On May 31, 2023, the Company issued
For the half-year ended June 30, 2023, the
Company recognized share based payments related with May 31, 2023 grant in total of AUD$
9
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 8. Equity - reserves
| Consolidated | ||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | ||||||||||
| AUD$ | AUD$ | $ | ||||||||||
| Unaudited | Audited | Unaudited | ||||||||||
| Foreign currency reserve | ( | ) | ( | ) | ( | ) | ||||||
| Re-measurements reserve | ( | ) | ( | ) | ( | ) | ||||||
| ( | ) | ( | ) | ( | ) | |||||||
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the condensed interim financial statements of foreign operations to Australian dollars.
Re-measurement reserve
The reserve is used for remeasurements comprising actuarial gains and losses on the net defined benefit liability.
Movements in reserves
| Re-measurement | Foreign currency | |||||||||||||||
| Consolidated | reserve | reserve | Total | Total | ||||||||||||
| AUD$ | AUD$ | AUD$ | $ | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Balance on January 1, 2023 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Foreign currency translation | ( | ) | ( | ) | ( | ) | ||||||||||
| Re-measurement of defined benefits plans | ||||||||||||||||
| Balance on June 30, 2023 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
10
| Mobilicom Limited Notes to the consolidated interim condensed financial statements June 30, 2023 |
|
Note 9. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial half-year.
Note 10. Events after the reporting period
On August 3, 2023, the company’s board
of director approved the grant of
No other matter or circumstance has arisen since June 30, 2023, that has significantly affected, or may significantly affect the company’s operations, the results of those operations, or the company’s state of affairs in future financial years.
Note 11. Earnings per share
| Consolidated | ||||||||||||
| June 30, 2023 | June 30, 2022 | June 30, 2023 | ||||||||||
| AUD$ | AUD$ | $ | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| Loss after income tax attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ( | ) | ||||||
| Number | Number | |||||||||||
| Weighted average number of ordinary shares used in calculating basic earnings/(losses) per share | ||||||||||||
| Weighted average number of ordinary shares used in calculating diluted earnings/(losses) per share | ||||||||||||
| AUD $Cents | AUD $Cents | $Cents | ||||||||||
| Basic earnings/(losses) per share | ( | ) | ( | ) | ( | ) | ||||||
| Diluted earnings/(losses) per share | ( | ) | ( | ) | ( | ) | ||||||
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion under IASB 133 “Earnings per Share”. The rights to options are non-dilutive as the consolidated entity is loss generating.
11