EDEN INNOVATIONS LTD — Annual Report 2019

Aug 29, 2019

ACN 109 200 900

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Appendix 4E Unaudited Preliminary Financial Report Year Ending 30 June 2019

The current reporting period is the year ended 30 June 2019. The previous corresponding period is the year ended 30 June 2018.

Results for announcement to the market:

Results	for announcement to the market:
		30 June 2019 $000’s	30 June 2018 $000’s	% **Change **	Up / Down
2.1	Revenue from ordinary activities	2,335	1,318	77.2%	Up
2.2	Loss from ordinary activities after tax attributable to shareholders	(9,216)	(10,825)	14.9%	Down
2.3	Loss for the year attributable to shareholders	(8,594)	(10,825)	20.6%	Down

Operating Results

Revenues increased due to increased sales of EdenCrete®. The loss from ordinary activities for the year decreased due to largely due to the increased sales and decreased employee benefits expense.

	30 June 2019 $000’s	30 June 2018 $000’s	% Change
EdenCrete® Sales	1,615	712	+126.8%
OptiBlend® Sales	720	606	+18.8%
Total Sales	2,335	1,318	+77.2%

Financial Position

During the financial year, net assets of the company and its controlled entities increased by $3.2 million from $17.8 million as at 30 June 2018 to $21.0 million as at 30 June 2019 primarily reflecting the net effect of the capital raised during the year less the loss for the year.

Dividends and Other Returns to Shareholders

No dividends are proposed and no dividends were declared or paid during the current or prior period. There were no share buy backs or proposed share buy backs during the financial year.

Net tangible assets per share

Net tangible assetsper share
	30 June 2019	30 June 2018
Net tangible*assets per share	$0.0087	$0.0093

* - This does not include any value for Eden’s investment in its pyrolysis, EdenCrete® or Optiblend® technology as these are intangible assets.

Eden Innovations Ltd | Telephone +61 8 9282 5889 Level 15, 197 St George’s Terrace, Perth, Western Australia 6000, Australia | edeninnovations.com

Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

Audit

This preliminary financial report is based on accounts which are in the process of being audited. No disputes or qualifications are likely to occur. As the company and its controlled entities are currently reliant on raising capital to continue as a going concern, an emphasis of matter paragraph, which is not a qualification, regarding going concern may be included in the audit report.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2019

Note Revenue Other income Changes in inventories Raw materials and consumables used Depreciation and amortisation expense Employee benefits expense Finance costs Other financial items Other expenses Loss before income tax Income tax (expense)/benefit Loss for the year Other Comprehensive Income / Loss) Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve Income tax relating to comprehensive income Items reclassified to profit or loss Foreign currency translation reserve Total Other Comprehensive Income / (Loss), net of tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic/Diluted loss per share (cents per share) 2	Consolidated Group 2019 $ 2018 $ 2,334,901 1,317,960 28,046 5,252 82,586 (4,128) (489,447) (204,404) (1,089,362) (1,023,344) (5,526,330) (7,355,821) (34,167) (24,572) (8,893) (77,312) (4,587,341) (3,640,661)
	(9,290,007) (11,007,030) 73,687 182,323
	(9,216,320) (10,824,707) 622,754 418,570 - - - -
	622,754 418,570 (8,593,566) (10,406,137)
	(0.5969) (0.8267)

The accompanying notes form part of these financial statements.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest bearing liabilities Other liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated Group 2019 $ 2018 $ 3,217,555 3,489,730 315,267 309,656 735,290 617,320 58,307 117,630
	4,326,419 4,534,336
	12,463,621 10,690,384 6,524,192 4,907,542
	18,987,813 15,597,926
	23,314,232 20,132,262
	1,069,010 1,049,639 247,422 230,058 156,954 89,269
	1,473,386 1,368,966
	772,355 984,296 28,757 17,430
	801,112 1,001,726
	2,274,498 2,370,692
	21,039,734 17,761,570
	102,636,700 91,230,956 8,953,733 7,864,993 (90,550,699) (81,334,379)
	21,039,734 17,761,570

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2019

Balance at 30 June 2017 Shares issued during the year, net of issue costs Options issued during the year Loss for year Other comprehensive loss Total comprehensive loss Balance at 30 June 2018 Shares issued during the year, net of issue costs Options issued during the year Loss for year Other comprehensive loss Total comprehensive loss Balance at 30 June 2019	Share Capital Ordinary Option Reserve Foreign Currency Translation Reserve Accumulated Losses Total $ $ $ $ $ 83,385,716 6,911,632 (222,354) (70,509,672) 19,565,322 7,845,240 - - - 7,845,240 - 757,145 - - 757,145 - - - (10,824,707) (10,824,707) - - 418,570 - 418,570
	- - 418,570 (10,824,707) (10,406,137)
	91,230,956 7,668,777 196,216 (81,334,379) 17,761,570
	11,405,744 - - - 11,405,744 - 465,986 - - 465,986 - - - (9,216,320) (9,216,320) - - 622,754 - 622,754
	- - 622,754 (9,216,320) (8,593,566)
	102,636,700 8,134,763 818,970 (90,550,699) 21,039,734

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2019

	Note	Consolidated	Group
		2019	2018
		$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		2,400,657	1,013,433
Payments to suppliers and employees		(9,623,820)	(10,380,806)
Income taxes paid / (received)		73,687	182,323
Interest paid		(27,677)	(24,572)
Interest received		3,167	5,252
Net cash used in operating activities		(7,173,986)	(9,204,370)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(1,983,077)	(1,350,253)
Payment for research and development		(2,065,638)	(1,514,619)
Net cash provided by (used in) investing activities		(4,048,715)	(2,864,872)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares, net of issue costs		11,298,297	7,845,240
Repayment of borrowings		(355,086)	(221,740)
Net cash provided by financing activities		10,943,211	7,623,500
Net increase (decrease) in cash held		(279,490)	(4,445,743)
Net increase (decrease) due to foreign exchange movements		7,315	(49,253)
Cash at beginning of financial year		3,489,730	7,984,726
Cash at end of financial year		3,217,555	3,489,730

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

NOTE 1: BASIS OF PREPERATION

The financial information included in this document for the year ended 30 June 2019 is unaudited. The financial information does not constitute the Eden Group’s (the Group) full financial statements for the year ended 30 June 2019, which will be approved by the board, reported on by the auditors and filed with the Australian Securities and Investment Commission. The Group’s full financial statement will be prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

The financial information in this document for the year ended 30 June 2019 has been prepared on the basis of accounting policies and methods of computation consistent with those applied in the 30 June 2018 financial statements contained within the 2018 Annual Report of the Group. As required and unless stated otherwise, comparative statutory financial information for the Group has been presented for the 2018 financial year. Comparative figures have been prepared on the same basis as the current year figures.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current year, including AASB 9 and AASB 15. The new and revised Standards and amendments thereof and Interpretations do not have any material impact on the disclosures or on the amounts recognised in the Group's consolidated financial statements.

AASB 9 Financial Instruments – There were no changes required to the consolidated financial report to recognise the revised requirements of AASB 9.

AASB 15 Revenue – The Group recognises revenue when the goods are shipped to the customer or for services when the services have been completed, this is in line with AASB 15 and has not resulted in any changes.

NOTE 2: EARNINGS PER SHARE

NOTE 2: EARNINGS PER SHARE
a. Reconciliation of earnings to profit or loss Profit/(loss) Earnings used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS	2019 $ 2018 $ (9,216,320) (10,824,707)
	(9,216,320) (10,824,707) 1,544,110,867 1,309,434,644

The options on issue are not potentially dilutive shares.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2019

NOTE 3: SEGMENT REPORTING

The Group has identified its operating segments based on internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining allocation of resources. Activities of the Group are managed on Group structure basis and operating segments are therefore determined on the same basis. In this regard the following list of reportable segments has been identified.

• Eden Innovations LLC – US EdenCrete® sales and development and US Optiblend® sales, service and manufacturing.

• Eden Innovations (India) Pvt Ltd – Optiblend® sales, service and manufacturing in India.

2019 External sales Internal sales Total segment revenue Segment Result Unallocated expenses Result from operating activities Finance costs Loss before income tax Income tax benefit Loss after income tax Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation and amortisation Impairment expense 2018 External sales Internal sales Total segment revenue Segment Result Unallocated expenses Result from operating activities Finance costs Loss before income tax Income tax benefit Loss after income tax Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation and amortisation Impairment expense	Eden Innovations LLC Eden Innovations India Pvt Ltd Eliminations Economic Entity $ $ $ $ 2,021,064 313,837 - 2,334,901 1,920,087 - (1,920,087) -
	3,941,151 313,837 (1,920,087) 2,334,901
	(6,060,223) 98,243 (338,571) (6,300,551) (2,955,589) (9,255,840) (34,167) (9,290,007) 73,687 (9,216,320) 13,839,397 340,364 - 14,179,761 9,134,471 23,314,232 2,015,006 497,179 - 2,512,185 (237,687) 2,274,498 2,151,726 - - 2,151,726 363,359 - 726,003 1,089,362 - - - - 1,204,298 113,662 - 1,317,960 1,416,928 - (1,416,928) -
	2,621,226 113,662 (1,416,928) 1,317,960
	(8,166,794) (14,455) (217,913) (8,399,162) (2,583,296) (10,982,458) (24,572) (11,007,030) 182,323 (10,824,707) 11,969,698 241,236 - 12,210,934 7,921,328 20,132,262 2,105,846 605,224 (569,468) 2,141,602 229,091 2,370,693 608,390 - - 608,390 679,858 - 343,486 1,023,344 - - - 17,437

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