CLEARVUE TECHNOLOGIES LIMITED — Annual Report 2021

Aug 30, 2021

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487 Appendix 4E

1. Company details

Name of entity: Clearvue Technologies Limited ABN: 45 071 397 487 Reporting period: For the year ended 30 June 2021 Previous period: For the year ended 30 June 2020

2. Results for announcement to the market

			$
Revenues from ordinary activities	down	0% to	-
Loss from ordinary activities after tax attributable to the owners of
Clearvue Technologies Limited	up	338% to	6,917,061
Loss for the year attributable to the owners of Clearvue Technologies
Limited	up	338% to	6,917,061

Dividends

No dividend has been declared or paid for the year ended 30 June 2021(30 June 2020: $nil).

Brief Explanation of Results

During the year ended 30 June 2021, Clearvue Technologies had been focussed on the commercialisation of the Company’s technology. The Company entered into several different agreements directed at furthering the development and distribution of the Clearvue products in Europe, and Japan and is completing establishment of subsidiaries in Europe and signed a Term Sheet for a joint venture in The Netherlands.

There were no other significant changes in the nature of the activities of the Company during the financial year.

The loss for the consolidated entity after providing for income tax amounted to $6,917,061 (30 June 2020 $2,049,191).

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 7.91	Previous period Cents 0.69

4. Details of associates and joint venture entities

		Ownership	Interest
Name	Country of Incorporation	2021	2020
ClearVue International Pty Ltd	Australia	100%	100%
ClearVue USA Inc	United States of America	100%	100%
ClearVue (Asia) Pte.Ltd	Singapore	100%	100%

1

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487 Appendix 4E

5. Details of entities over which control has been gained or lost during the period

There are no entities over which control has been gained or lost during the period.

6. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements are in the process of being audited.

7. Attachments

Details of attachments (if any):

The Preliminary Financial Report of Clearvue Technologies Limited for the year ended 30 June 2021 is attached.

8. Signed

---

Date: 31 August 2021

Victor Rosenberg Chairman Perth

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487 Appendix 4E

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES

ABN 45 071 397 487

Appendix 4E Preliminary Financial Report

30 June 2021

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021

Revenue from contracts with customers Other income Expenses Consulting expense Depreciation and amortisation expense Employee benefits expense Finance costs Legal fees Material costs Project costs Share-based payments expense Travel expenses Other expenses Loss before income tax Income tax expense Loss for the year Other comprehensive income / (loss) Total comprehensive loss for the year Loss per share attributable to the owners of the Company (cents) Basic loss per share Diluted loss per share		Note	Consolidated 30 Jun 2021 $ - 1,200,922 1,200,922 (493,628) (172,774) (1,091,640) (22,383) (171,177) (97,146) (1,096,776) (4,215,632) (63,324) (693,503) (8,117,983) (6,917,061) - (6,917,061) - (6,917,061) (4.80) (4.80)	Consolidated 30 Jun 2020 $ - 1,131,809	Consolidated 30 Jun 2020 $ - 1,131,809
					1,131,809
					(623,508) (166,761) (846,581) (22,238) (76,124) (101,506) (634,169) - (159,529) (550,584)
		9
		10 10
					(3,181,000)
					(2,049,191)
					-
					(2,049,191)
					-
					(2,049,191)
					(1.91) (1.91)

See accompanying notes to the consolidated financial statements

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other assets Non-Current Assets Plant and equipment Right of use asset Intangible assets Other assets Total Assets LIABILITIES Current Liabilities Trade and other payables Lease liabilities Provisions Non-Current Liabilities Lease liabilities Provisions Total Liabilities Net Assets EQUITY Share capital Share-based payments reserve Accumulated losses Total Equity	Note 2 3 4 5 6 7 8	Consolidated 30 Jun 2021 $ 15,887,483 920,792 195,322 17,003,597 279,096 230,580 2,959,894 56,681 3,526,251 20,529,848 539,963 62,490 153,900 756,353 176,026 23,674 199,700 956,053 19,573,795 31,040,246 5,627,363 (17,093,814) 19,573,795	Consolidated 30 Jun 2020 $ 864,208 571,242 118,686	Consolidated 30 Jun 2020 $ 864,208 571,242 118,686
				1,554,136
				111,030 169,800 2,456,581 56,682
				2,794,093
				4,348,229
				831,473 42,493 99,680
				973,646
				130,892 15,540
				146,432
				1,120,078
				3,228,151
				12,521,181 4,223,027 (13,516,057)
				3,228,151

See accompanying notes to the consolidated financial statements

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021

Balance at 1 July 2019 Loss for the year Other comprehensive income Total comprehensive loss for the year Shares issued Share issue costs Balance at 30 June 2020 Balance at 1 July 2020 Loss for the year Other comprehensive income Total comprehensive loss for the year Shares issued Share issue costs Share based payments Options exercised Performance rights issued Performance shares cancelled Balance at 30 June 2021	Share Capital Share-Based Payments Reserve Accumulated Losses Total $ $ $ $
	10,681,302 4,223,027 (11,466,866) 3,437,463 - - (2,049,191) (2,049,191) - - - -
	- - (2,049,191) (2,049,191) 2,000,000 - - 2,000,000 (160,121) - - (160,121)
	12,521,181 4,223,027 (13,516,057) 3,228,151
	12,521,181 4,223,027 (13,516,057) 3,228,151 - - (6,917,061) (6,917,061) - - - -
	- - (6,917,061) (6,917,061) 3,039,885 - - 3,039,885 (938,770) - - (938,770) 209,140 903,640 - 1,112,780 16,208,810 (1,739,304) 1,739,304 16,208,810 - 3,840,000 - 3,840,000 - (1,600,000) 1,600,000 -
	31,040,246 5,627,363 (17,093,814) 19,573,795

See accompanying notes to the consolidated financial statements

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

Cash flows from operating activities Loss before income tax Adjustment for: Depreciation of plant and equipment Amortisation of intangible assets Research and development net rebate Share based payments Interest received Operating loss before working capital Changes in working capital: Decrease/(Increase) in trade receivables Decrease in other assets (Decrease)/Increase in trade and other payables Increase in provisions Net cash (used in) operating activities Cash flows from investing activities Patents and trademarks expenditure Development expenditure Purchase of plant and equipment Purchase of leased assets Payments for deposits Net cash (used in) investing activities Cash flows from financing activities Options exercised Proceeds from borrowings Loan repayments New leases Lease payments Proceeds from issuance of ordinary shares Release from share based payment reserve Share based payments Share issuance cost Net cash from financing activities Net (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	Note 2	Consolidated 30 Jun 2020 $ (6,917,061) 80,882 91,894 - 4,215,632 - (2,528,654) (349,550) (76,636) (36,421) 62,353 (2,928,908) (346,316) (248,889) (197,771) (111,957) - (904,933) 16,208,810 70,951 (326,040) 111,957 (46,826) 3,916,232 3,339,304 (4,215,632) (201,640) 18,857,116 15,023,275 864,208 15,887,483	Consolidated 30 Jun 2019 $ (2,049,191) 89,253 77,508 (661,288) - (2,421)	Consolidated 30 Jun 2019 $ (2,049,191) 89,253 77,508 (661,288) - (2,421)
				(2,546,139) 513,187 1,329 (365,628) 27,520
				(2,369,731)
				(174,539) (29,334) (25,903) - (1,328)
				(231,105)
				- 291,001 - - (42,772) 2,000,000 - - (160,121)
				2,088,108
				(512,728) 1,376,936
				864,208

See accompanying notes to the consolidated financial statements

7

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

These notes form an integral part of and should be read in conjunction with the accompanying financial report:

1. BASIS OF PREPARATION

This preliminary financial report has been prepared in accordance with Australian Securities Exchange Listing Rules as they relate to the Appendix 4E and in accordance with the recognition and measurement requirements of the Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001 .

As such, this preliminary financial report does not include all the notes of the type included in an annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2020 and with any public announcement made by Clearvue Technologies Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The principal accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year.

2. CASH AND CASH EQUIVALENTS

ASH AND CASH EQUIVALENTS
	Consolidated	Consolidated
	30 Jun 2021	30 Jun 2020
	$	$
Cash and cash equivalents	15,887,483	864,208

3. TRADE AND OTHER RECEIVABLE

RADE AND OTHER RECEIVABLE
Trade receivable R&D rebate receivable Grants receivable	Consolidated 30 Jun 2021 $ 73,131 847,661 - 920,792	Consolidated 30 Jun 2020 $ - 489,542 81,700
			571,242

8

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

5. INTANGIBLE ASSETS

Patents and trademarks Development asset Patents and trademarks Cost Less accumulated amortisation Carrying amount Cost Balance at 1 July Additions Balance at 30 June Accumulated amortisation Balance at 1 July Amortisation for the year Balance at 30 June Carrying amount at 30 June Development asset Cost Balance at 1 July Additions Balance at 30 June Accumulated amortisation Balance at 1 July Amortisation for the year Balance at 30 June Carrying amount at 30 June Net carrying amount at 30 June		Consolidated 30 Jun 2021 $ 1,608,787 1,351,107 2,959,894 2,028,245 (419,458) 1,608,787 1,681,929 346,316 2,028,245 327,565 91,893 419,458 1,608,787 1,102,217 248,890 1,351,107 - - - 1,351,107 2,959,894		Consolidated 30 Jun 2020 $ 1,354,364 1,102,217
				2,456,581
				1,681,929 (327,565)
				1,354,364
				1,433,641 248,288
				1,681,929
				251,210 76,355
				327,565
				1,354,364
				694,641 407,576
				1,102,217
				- -
				-
				1,102,217
				2,456,581

Intangible assets are stated at cost. The useful life of these patents and trademarks is estimated to be finite. No impairment losses were recognised during the financial year (2020: nil).

9

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

6. TRADE AND OTHER PAYABLES

RADE AND OTHER PAYABLES
Trade payables Other payables* Accruals	Consolidated 30 Jun 2021 $ 367,203 130,147 42,613 539,963	Consolidated 30 Jun 2020 $ 378,801 429,466 23,206
			831,473

• Other payables include amount from Attvest Finance of $35,912 that is secured against the current D&O insurance policy. Interest accrues monthly at 1% per annum and is repayable monthly instalments of $7,400 with the final payment during November 2021.

7. SHARE CAPITAL

HARE CAPITAL
Share issued and fully paid Balance at 1 July Issue of shares under a placement1 Options exercised3 Issue of shares2 Issue of shares SPP Share issue costs4 Balance at 30 June		30 Jun 2021 NO. OF SHARES 111,153,044 31,998,787 66,326,567 633,967 - - 210,112,365		30 Jun 2020 NO. OF SHARES 97,730,300 - - - 13,422,744 - 111,153,044		30 Jun 2021 $ 12,521,181 3,039,885 16,208,810 209,140 - (938,770) 31,040,246		30 Jun 2020 $ 10,681,302 - - - 2,000,000 (160,121)
								12,521,181

1On 24 August 2020, 14 September 2020 and 18 November 2020, a total of 31,998,787 fully paid ordinary shares were issued at $0.095 per share pursuant to the Company’s Placement, as announced in August 2020.

2On 7 December 2020 456,481 fully paid ordinary shares were issued at a deemed price of $0.3541 per share

2On 23 December 2020, 160,000 fully paid ordinary shares were issued at a deemed price of $0.25 per share 2On 30 June 2021, 17,486 fully paid ordinary shares were issued at a deemed price of $0.429 per share. 3During the year, a total of 6,274,142 fully paid ordinary shares on exercise of unlisted options, each option exercisable at $0.20 and 59,502,425 fully paid ordinary shares on exercise of unlisted options, each option exercisable at $0.25 and 550,000 fully paid ordinary shares on exercise of unlisted options, each option exercisable at $0.1425

4Share issue costs are comprised of a cash settlement of $201,647 and options issued to lead managers valued at $737,124.

The share capital of the Company consists only of fully paid ordinary shares; the shares do not have a par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ meeting of the Company

10

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

8. SHARE-BASED PAYMENTS RESERVE

HARE-BASED PAYMENTS RESERVE
Share plan for Directors1 Options issued to Lead Manager Offer Performance rights to Directors2 Options issued to Consultants Options issued to Lead Manager of placement Performance shares to Directors3	Consolidated 30 Jun 2021 $ 536,900 - 3,840,000 156,173 614,290 480,000 5,627,363	Consolidated 30 Jun 2020 $ 536,900 225,635 - 1,380,492 - 2,080,000
			4,223,027

1 The share plan arises on the grant of loan for a term of 10 years to Directors and related parties for the purchase of the Company’s ordinary shares under the ClearVue Loan Funded Share Plan in 2017. Amounts are transferred out of the reserve and into share capital when the loans are settled. There were no Shares issued under the Loan Funded Share Plan during the current financial year.

During the year ended 30 June 2017, shares were issued under the Loan Funded Share Plan to then members of the Board. All loans are outstanding at 30 June 2021 and at the date of this report. Such loans are to be settled on or before 19 September 2027.

Holder	Position	No of shares	Loan amount
Mr Victor Rosenberg	Executive Chairman	1,000,000	$150,000
Mr Jamie Lyford	Executive Director	1,950,000	$292,500
Mr Sean Rosenberg	Non-Executive Director	125,000	$18,750
Mr Ian Rosenberg	Former Non-Executive Director	125,000	$18,750

2On the 10 June 2021 10,000,000 performance rights were issued to Victor Rosenberg. Mr Rosenberg was issued with 1,000,000 Class A Performance Rights, 3,000,000 Class B Performance Rights and 6,000,000 Class C Performance Rights

3 On the 10 June 2021 10,000,000 performance shares previously issued to Mr Rosenberg were cancelled. The remaining performance shares are held by Mr Lyford.

11

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

8. SHARE-BASED PAYMENTS RESERVE – continued

Movements in Share based payment reserve Balance at 1 July 2020 Options issued to Lead Manager of placement1 Options issued to consultants2 Options exercised3 Performance rights issued to director4 Performance shares cancelled5 Balance at 30 June 2021	NO. OF OPTIONS NO. OF PERFORMANCE RIGHTS NO. OF PERFORMANCE SHARES $ 11,050,000 - 13,000,000 4,223,027 3,300,000 - - 737,148 900,000 - - 166,492 (11,700,000) - - (1,739,304) - 10,000,000 - 3,840,000 - - (10,000.000) (1,600,000)
	3,550,000 10,000,000 3,000,000 5,627,363

1On 18 November 2020, 3,300,000 unlisted options exercisable at $0.1425 per option, expiring 11 July 2024 were issued pursuant to the Company’s Placement, as announced in August 2020.

2 On 23 December 2020, 100,000 unlisted options exercisable at $0.25 per option, expiring 21 June 2021 and 800,000 unlisted options exercisable at $0.25 per option, expiring 22 December 2023 were issued pursuant to various agreements, as approved by shareholders on 27 November 2020.

3 During the year, a total of 11,150,00 fully paid ordinary shares on exercise of unlisted options, each option exercisable at $0.25 and 550,000 fully paid ordinary shares on exercise of unlisted options, each option exercisable at $0.1425

4 On the 10 June 2021 10,000,000 performance rights were issued to Victor Rosenberg. Mr Rosenberg was issued with 1,000,000 Class A Performance Rights, 3,000,000 Class B Performance Rights and 6,000,000 Class C Performance Rights.

12

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

8. SHARE-BASED PAYMENTS RESERVE – continued

The conversion of the performance rights is dependent on the following:

• (i) Class A Performance Rights

• (A) In the event that the aggregate of the value of the ClearVue (Orders and the ClearVue Payments is equal to or greater than $2,000,000 within a period of 24 months commencing on the date of issue of the Performance Rights ( Issue Date ) ( Class A Milestone 1 ), each Class A Performance Right will vest and be convertible into one Share; or

• (B) in the event that Class A Milestone 1 is not satisfied but the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $7,000,000 within a period of 36 months from the Issue Date ( Class A Milestone 2 ), each Class A Performance Right will vest and be convertible into one Share; or

• (C) in the event that neither Class A Milestone 1 or Class A Milestone 2 is satisfied but the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $17,000,000 within a period of 48 months from the Issue Date, each Class A Performance Right will vest and be convertible into one Share.

• (ii) Class B Performance Rights

• (A) In the event that the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $5,000,000 within a period of 24 to 36 months from the Issue Date ( Class B Milestone 1 ), each Class B Performance Right will vest and be convertible into one Share; or

• (B) in the event that Class B Milestone 1 is not satisfied but the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $7,000,000 within a period of 36 months from the Issue Date (Class B Milestone 2), each Class B Performance Right will vest and be convertible into one Share; or

• (C) in the event that neither Class B Milestone 1 or Class B Milestone 2 is satisfied but the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $17,000,000 within a period of 48 months from the Issue Date, each Class B Performance Right will vest and be convertible into one Share.

• (iii)

Class C Performance Rights

• (A) In the event that the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $10,000,000 within a period of 36 to 48 months from the Issue Date ( Class C Milestone 1 ), each Class C Performance Right will vest and be convertible into one Share; or

• (B) In the event that Class C Milestone 1 is not satisfied but the aggregate of the value of the ClearVue Orders and the ClearVue Payments is equal to or greater than $17,000,000 within a period of 48 months from the Issue Date, each Class C Performance Right will vest and be convertible into one Share.

5 On the 10 June 2021 10,000,000 Performance Shares previously issued to Mr Rosenberg were cancelled. These were 1,000,000 Class A Performance Shares, 3,000,000 Class B Performance Shares and 6,000,000 Class C Performance Shares.

13

CLEARVUE TECHNOLOGIES LIMITED AND ITS CONTROLLED ENTITIES ABN 45 071 397 487

NOTES TO CONSOLIDATED PRELIMINARY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

9. SHARE-BASED PAYMENTS EXPENSE

Shares issued to consultants1 Options issued to consultants2 Performance Rights issued to director3	Consolidated 30 Jun 2021 $ 209,140 166,492 3,840,000 4,215,632	Consolidated 30 Jun 2020 $ - - -	Consolidated 30 Jun 2020 $ - - -
			-

1 On 7 December 2020 456,481 fully paid ordinary shares were issued at a deemed price of $0.3541 per share and on 23 December 2020, 160,000 fully paid ordinary shares were issued at a deemed price of $0.25 per share and on 30 June 2021, 17,486 fully paid ordinary shares were issued at a deemed price of $0.429 per share.

2 On 23 December 2020, 100,000 unlisted options exercisable at $0.25 per option, expiring 21 June 2021 and 800,000 unlisted options exercisable at $0.25 per option, expiring 22 December 2023 were issued pursuant to various agreements, as approved by shareholders on 27 November 2020.

3 On the 10 June 2021 10,000,000 performance rights were issued to Victor Rosenberg. Mr Rosenberg was issued with 1,000,000 Class A Performance Rights, 3,000,000 Class B Performance Rights and 6,000,000 Class C Performance Rights.

10. LOSS PER SHARE

LOSS PER SHARE
	Consolidated	Consolidated
	30 Jun 2021	30 Jun 2020
	$	$
Loss after income tax used in calculating basic and diluted earnings per share	(6,917,061)	(2,049,191)
	No.	No.
Weighted average number or ordinary shares used in	144,160,975	102,530,057
calculating basic and diluted earnings per share
	Cents	Cents
Basic loss per share	(4.80)	(1.91)
Diluted loss per share	(4.80)	(1.91)

14