DOTZ NANO LIMITED — Annual Report 2020

Feb 25, 2021

DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

Appendix 4E

Preliminary final report

1. Details of reporting period

Name of entity	DOTZ NANO LIMITED(ASX: DTZ) 71 125 264 575 Year ended 31 DECEMBER 2020 Year ended 31 DECEMBER 2019
ABN
ReportingYear
Previous CorrespondingYear

2. Results for announcement to the market

Key information	12 months ended 31 December 2020 US $	12 months ended 31 December 2019 US $	Increase/ (decrease) %	Amount change $
Revenues from ordinaryactivities	375,811	33,731	1014%	342,080
Profit/(Loss) from ordinary activities after tax attributable to members	(3,968,996)	(3,746,564)	6%	(222,432)
Net Profit/ (Loss) for the period attributable to members	(3,968,996)	(3,746,564)	6%	(222,432)
Net tangible asset/(deficiency) $ per share	0.014	0.004	250%	0.010

3. Consolidated statement of profit or loss and other comprehensive income

Refer to attached preliminary final report.

In the profit and loss and other comprehensive income certain comparative balances have been reclassified to ensure consistency with changes to current period presentation and classifications.

4. Consolidated statement of financial position

Refer to attached preliminary final report.

5. Consolidated statement of cash flows

Refer to attached preliminary final report.

6. Consolidated statement of changes in equity

Refer to attached preliminary final report.

7. Dividends/Distributions

No dividends declared in current or prior year.

8. Details of dividend reinvestment plans

N/A

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

Dotz Nano Singapore Pte Ltd (subsidiary) was de-registered during the financial year.

10. Details of associate and joint venture entities

N/A

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

11. Any other significant information needed by an investor to make an informed assessment of the Company’s financial performance and financial position

Refer to 13. Commentary for results for period and Explanatory information and additional Notes following the preliminary report.

12. Foreign entities

	Dotz Nano Limited	Dotz Nano Limited	Percentage Owned 2020 2019 100% 100% - 100%	Percentage Owned 2020 2019 100% 100% - 100%
	Controlled entity	Country of incorporation	Percentage Owned
			2020	2019
	Dotz Nano Ltd	Israel	100%	100%
	Dotz Nano Singapore Pte Ltd	Singapore	-	100%

13. Commentary on results for period and explanatory information

Financial Review

Dotz Nano Limited had a loss for the year of US$3,968,996 (2019: US$3,746,564 loss).

The net assets of the Group have increased from US$1,299,665 at 31 December 2019 to US$5,205,896 at 31 December 2020.

As at 31 December 2020 the Group's cash and cash equivalents increased from a balance at 31 December 2019 of US$1,371,275 to a balance of US$5,259,087 and had working capital of US$4,950,829 (2019: US$1,106,596).

14. Audit

This report is based on financial statements which are in the process of being audited.

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Bernard Brookes Non-Executive Chairman

26 February 2021

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DOTZ NANO LIMITED

ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

Note Revenue from contract with customers Cost of Sales Gross profit Research and development expenses General, administrative, selling and marketing expenses Share based compensation Finance costs Profit/(Loss) before income tax Income tax expense Profit/(Loss) for the year Other comprehensive income: Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Other comprehensive loss for the year, net of tax Total comprehensive income/(loss) for the year Basic earnings/(loss) per share (cents per share)	2020 2019 US$ US$ 375,811 33,731 (264,881) (21,041)
	110,930 12,690 (634,112) (784,844) (2,119,086) (2,215,927) (1,392,484) (731,308) 65,756 (27,175)
	(3,968,996) (3,746,564)
	- -
	(3,968,996) (3,746,564)
	322,180 (26,880) - -
	(3,646,816) (3,773,444)
	(1.24) (1.72)

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets Inventory TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables Plant and equipment Right to use assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions Contract liability Lease liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings Lease liabilities TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS SHAREHOLDERS’ EQUITY Issued capital 2 Reserves 3 Accumulated losses SHAREHOLDERS’ EQUITY	2020 2019 US$ US$ 5,259,087 1,371,275 189,478 144,592 28,360 34,141 14,475 4,312
	5,491,400 1,554,320
	- 27,914 214,958 283,239 47,845 174,663
	262,803 485,816
	5,754,203 2,040,136
	428,797 270,432 38,684 28,967 33,757 39,332 148,325
	540,570 447,724
	- 257,481 7,737 35,266
	7,737 292,747
	548,307 740,471
	5,205,896 1,299,665
	28,971,254 22,627,901 3,589,759 2,057,885 (27,355,117) (23,386,121)
	5,205,896 1,299,665

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

Balance at 1 January 2019 Loss for the year Other comprehensive loss Total comprehensive loss for the year Transactions with owners, recognised directly in equity Issue of shares Share based payments Balance at 31 December 2019 Balance at 1 January 2020 Loss for the year Other comprehensive loss Total comprehensive loss for the year Transactions with owners, recognised directly in equity Issue of shares Exercise of options Share based payments Balance at 31 December 2020	Issued Capital Option Reserve Foreign Currency Reserve Accumulated Losses Total US$ US$ US$ US$ US$ 18,762,675 1,626,095 (17,731) (19,639,557) 731,482 - - - (3,746,564) (3,746,564) - - (26,880) - (26,880)
	- - (26,880) (3,746,564) (3,773,444) 3,597,954 - - - 3,597,954 267,272 476,401 - - 743,673
	22,627,901 2,102,496 (44,611) (23,386,121) 1,299,665
	22,627,901 2,102,496 (44,611) (23,386,121) 1,299,665 - - - (3,968,996) (3,968,996) - - 322,180 - 322,180
	- - 322,180 (3,968,996) (3,464,816) 4,844,368 - - - 4,844,368 1,316,195 - - - 1,316,195 182,790 1,209,694 - - 1,392,484
	28,971,254 3,312,190 277,569 (27,355,117) 5,205,896

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest paid Interest received Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment Proceeds from investments Payment for intellectual property Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net Proceeds for the issue of shares Proceeds from exercise of options Grant from BIRD Lease payments Net cash from financing activities Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Foreign exchange Cash and cash equivalents at the end of the financial year	2020 2019 US$ US$ 394,461 34,792 (2,828,360) (2,659,687) (14,228) (42,917) 460 428
	(2,447,667) (2,667,384)
	(20,168) (34,739) - 25,225 - (15,000)
	(20,168) (24,514)
	4,835,041 3,597,954 1,320,281 - - 43,484 (144,896) (100,165)
	6,010,426 3,541,273
	3,542,591 849,375 1,371,275 508,572 345,221 13,328
	5,259,087 1,371,275

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED NOTES FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1: BASIS OF PREPARATION

The preliminary final report has been prepared in accordance with ASX listing rule 4.3A and the disclosure requirements of ASX Appendix 4E.

This report has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian interpretations) adopted by the Australian Accounting Standard Board (AASB) and the Corporations Act 2001. The financial statements have been prepared on an accruals basis and are based on historical costs.

NOTE 2: ISSUED CAPITAL (a) Share Capital 376,382,378 fully paid ordinary shares (31 December 2019: 295,004,274) (b) Reconciliation of Share Capital Opening balance at 1 January 2019 Shares issued on conversion of Convertible Loan on 15 February 2019 Shares issued to the CEO on 15 February 2019 Shares issue on conversion of Convertible Loan on 19 February 2019 Shares issued under the Placement on 7 May 2019 Shares issued under the Placement on 8 May 2019 Shares issued under the Cleansing Prospectus on 8 May 2019 Shares issued in lieu of cash payment on 8 May 2019 Shares issued under the Placement on 29 July 2019 Shares issued under Cleansing Prospectus on 29 July 2019 Shares issued in lieu of cash payment on 12 September 2019 Exercised of unquoted options expiring on 1 October 2021 Shares issued to Lead Manager on 12 September 2019 Shares issued under Placement on 26 November 2019 Shares issued to Consultant on 8 December 2019 Shares issued to CEO on 31 December 2019 Shares issued under Cleansing Prospectus on 31 December 2019 Shares issued to Employee on vesting options on 31 December 2019 Less: capital raising fees Closing balance at 31 December 2019 Subject to voluntary holding lock until 15 February 2020 Opening balance at 1 January 2020 Shares issued on exercise of options, 10 February 2020 Shares issued on exercise of options, 10 February 2020 Shares issued under Cleansing Prospectus, 6 May 2020 Shares issued under Deferred Share Placement, 18 June 2020 Shares issued on exercise of options, 18 June 2020 Shares issued on exercise of options, 18 June 2020 Shares issued to Mr Uzi Breier, 18 June 2020 Shares cancelled relating to Mr Uzi Breier, 18 June 2020 Shares issued to former employee, 18 June 2020 Shares issued on exercise of options, 18 June 2020	2020 US$	2019 US$
	28,971,254	22,627,901
	No. 180,714,622 9,791,632 1,500,000 875,000 19,750,000 5,250,000 100 283,672 16,129,045 100 300,000 695,000 1,000,000 55,000,003 2,500,000 1,000,000 100 215,000 -	US$ 18,762,675 554,833 86,058 49,917 830,804 220,658 4 13,730 690,971 4 11,324 - 42,551 1,349,931 70,130 43,479 3 - (99,171)
	295,004,274	22,627,901
	295,004,274 347,977 500,000 100 13,888,889 1,200,000 1,500,000 1,000,000 (1,000,000) 1,000,000 1,000,000	22,627,901 - - 4 342,250 - - 58,183 (42,440) - -

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED NOTES FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 2: ISSUED CAPITAL

(b) Reconciliation of Share Capital Shares issued on exercise of options, 10 July 2020 Shares issued on exercise of options, 22 July 2020 Shares issued on exercise of options, 28 July 2020 Shares issued on exercise of options, 20 August 2020 Shares issued to Consultant, 20 August 2020 Shares issued on exercise of options, 3 September 2020 Shares issued on exercise of options, 3 September 2020 Shares issued under Deferred Share Placement, 10 September 2020 Shares issued on exercise of options, 10 September 2020 Shares issued on exercise of options, 25 September 2020 Shares issued on exercise of options, 8 October 2020 Shares issued on exercise of options, 28 October 2020 Shares issued under Placement, 28 October 2020 Shares issued on exercise of options, 12 November 2020 Less: capital raising fees Closing balance at 31 December 2020

No. US$ 50,000 2,952 425,000 26,693 208,334 13,107 1,125,001 69,508 1,500,000 177,581 80,648 5,294 495,000 - 13,888,889 363,651 803,299 52,218 2,662,635 156,150 1,000,000 64,404 12,790,443 872,878 25,068,000 4,443,303 1,843,889 52,991 - (315,374)

376,382,378 28,971,254

NOTE 3: RESERVES (a) Reserves 82,547,879 Option Reserve (31 December 2019: 91,224,527) Foreign currency translation reserve (b) Options Reserve Opening balance at 1 January 2019 Issue of free attaching options on conversion of Convertible Loan on 15 February 2019 Issue of options to directors on 8 February 2019 Issue of options to employee on 8 February 2019 Issue of free attaching options on conversion of Convertible Loan on 19 February 2019 Issue of free attaching options under the Placement on 7 May 2019 Issue of free attaching options under the Placement on 8 May 2019 Issue of options to Lead Manager on 19 June 2019 Issue of free attaching options under the Placement on 29 July 2019 Broker options expired on 8 August 2019 Issue of options under Employees Share Option Plan on 22 August 2019 Employees Share Option Plan cancellation Exercised options under Employees Share Option Plan Issue of options to Lead Manager on 31 October 2019	2020 US$ 3,312,190 277,569	2019 US$ 2,102,496 (44,611)
	3,589,759	2,057,885
	No. 40,325,000 2,447,909 3,000,000 1,000,000 218,750 9,875,005 2,625,000 5,000,000 8,064,526 (10,000,000) 210,000 (1,465,000) (695,000) 10,000,000	US$ 1,626,095 - 103,780 31,676 - - - 122,302 - - 849 (5,625) - 26,110

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED NOTES FOR THE YEAR ENDED 31 DECEMBER 2020

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED NOTES FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 3: RESERVES

(b) Options Reserve Options expired on 31 October 2019 Issue of options to consultant on 3 December 2019 Issue of placement options Conversion of options to shares on 31 December 2019 Option cancellation on 31 December 2019 Expired of Tranche 3 options under Employees Share Option Plan on 27 November 2018 Vested Tranche 1 options under Employees Share Option Plan on 21 January 2019 and 22 August 2019 Vested Tranche 2 options under Employees Share Option Plan on 27 November 2018 Vested Tranche 3 options under Employees Share Option Plan on 27 November 2018 Closing balance at 31 December 2019 Opening balance at 1 January 2020 Cancellation of options, 5 February 2020 Exercise of options, 10 February 2020 Cancellation of options, 10 February 2020 Cancellation of options, 20 April 2020 Issue of options, 11 May 2020 and 6 November 2020 Cancellation of options, 14 June 2020 Exercise of options, 18 June 2020 Cancellation of options, 18 June 2020 Issue of options, 18 June 2020 Issue of free attaching options, 18 June 2020 Cancellation of options, 30 June 2020 Exercise of options, 10 July 2020 Exercise of options, 22 July 2020 Exercise of options, 28 July 2020 Cancellation of options, 1 August 2020 Exercise of options, 20 August 2020 Issue of options, 20 August 2020 Issue of options, 20 August 2020 Exercise of options, 3 September 2020 Exercise of options, 10 September 2020 Issue of free attaching options under Deferred Placement, 10 September 2020 Exercise of options, 25 September 2020 Exercise of options, 8 October 2020	No. (5,500,000) 10,000,000 18,333,337 (215,000) (1,000,000) (1,000,000) - - -	US$ - 14,344 - - - 30,823 138,232 13,910
	91,224,527	2,102,496
	91,224,527 (6,000,000) (847,977) (652,023) (2,425,000) 750,000 (5,000,000) (3,700,000) (210,000) 1,350,000 4,629,630 (2,666,659) (50,000) (425,000) (208,334) (1,500,000) (1,125,001) 500,000 500,000 (575,648) (803,299) 4,629,630 (2,662,635) (1,000,000)	2,102,496 - - - 14,675 - - (859) 21,025 - - - - - - - 14,332 8,155 - - - -

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DOTZ NANO LIMITED ABN 71 125 264 575

Appendix 4E Preliminary Final Report

PRELIMINARY CONSOLIDATED NOTES FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 3: RESERVES

(b) Options Reserve Issue of options to Lead Manager, 19 October 2020 Exercise of options, 28 October 2020 Issue of options under Employees Share Option Plan, 30 October 2020 Issue of options under Employees Share Option Plan, 30 October 2020 Issue of options under Employees Share Option Plan, 30 October 2020 Exercise of options, 12 November 2020 Issue of options, 12 November 2020 Issue of options, 12 November 2020 Vested value of consultant options issued 3 December 2019 Closing balance at 31 December 2020 (c) Foreign currency translation reserve Opening balance Difference arising on translation Balance at the end of the year	No. 5,000,000 (12,790,443) 6,650,000 5,650,000 5,650,000 (1,843,889) 100,000 400,000 -	US$ 487,979 - 350,163 192,032 59,944 - 17,761 12,006 32,433
	82,547,879	3,312,142
	2020 US$ (44,611) 322,180	2019 US$ (17,731) (26,880)
	277,569	(44,611)

The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary.

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