ENERGY TECHNOLOGIES LIMITED — Annual Report 2024

Aug 28, 2024

Appendix 4E Preliminary final report

Appendix 4E

Preliminary final report

1. Company Details

Name of entity

ENERGY TECHNOLOGIES LIMITED

ABN or equivalent company reference	ABN or equivalent company reference	Financial year ended (‘current period’) 30 June 2024	Financial year ended (‘previous period’)
38 002 679 469		30 June 2024	30 June 2023

2. Results for announcement to the market

	$A'000	$A'000
2.1 Revenues from operating activities 2.2 Profit from operating activities after tax attributable to members 2.3 Profit for the period attributable to members	Down 17% to 12,899 Up 31% to (10,537) Up 31% to (10,537)
2.4Dividends	Amount per security	Franked amount per security
Final dividend	NIL	NIL
Interim dividend	NIL	NIL
2.5 Record date for determining entitlements to the dividend	Not applicable
2.6 Brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood: Energy Technologies Limited (EGY) has reported a consolidated loss for the year after tax and minority interests of $10,537,212 (FY2023 loss of $15,344,996). The FY2024 results include a loss after tax of $9,002,326 (FY2023 loss of $14,127,919) reported by subsidiary Bambach Wires and Cables Pty Ltd (BWC). The FY2023 result included a $5,194,327 impairment of the carrying value of intangible development assets and purchased intellectual property. There will be further discussion of the result below.

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3. Details of Individual and Total Dividends

		Date dividend is payable	Amount per security	Franked amount per security at 30% tax	Amount per security of foreign source dividend
	Final dividend:Current year Previous year		-¢ -¢	-¢ -¢	-¢ -¢
	Interim dividend:Current year		-¢ -¢	-¢ -¢	-¢ -¢
	Previous year

Total dividend per security (interim plus final)

Ordinary securities Preference securities	Current year	Previous year
	-¢ -¢	-¢ -¢

4. Dividend reinvestment plan

Details of any dividend reinvestment plans in operation:

N/A The last date for the receipt of an election notice for participation in any dividend or distribution reinvestment plan: N/A

5. Statement of retained earnings

	Accumulated losses at the beginning of the financial year Net loss attributable to members Accumulated losses at the end of the financialyear	Current period - $A'000	Previous corresponding period-$A'000
		(47,163) (10,537)	(31,818) (15,345)
		(57,700)	(47,163)

6.1	Net Tangible Asset backing	Current period	Previous corresponding period
	Net tangible asset* backing per ordinary security	($0.01)	$0.011

6.1 Net Tangible Asset backing

• Net tangible assets calculations above include the right-of use assets and lease liabilities.

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Earnings per security (EPS)	Current period	Previous corresponding period
Basic EPS (cents) Net loss after tax for the period attributable to members ($’000s) Weighted average number of ordinary securities	(3.0)	(5.2)
	(10,537)	(15,345)
	348,961,286	292,875,846

6.2 Earnings per security (EPS)

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

7.1 A Name of entity No entities were acquired during the period 7.2 A Date from which control was gained 7.3 A Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from operating activities during the period and the profit or loss of such entities during the whole of the previous corresponding period 7.1 B Name of entities No entities were disposed of during the period

• 7.2 A Date from which control was gained

• 7.3 A Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from operating activities during the period and the profit or loss of such entities during the whole of the previous corresponding period

• 7.2 B Date from which control was gained / lost

• 7.3 B Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from operating activities during the period and the profit or loss of such entities during the whole of the previous corresponding period

8. Details of Associates and Joint Ventures:

Name of entity	Percentage holding 30 June 2024	Percentage holding 30 June 2023
N/A

8.1 Where material to an understanding of the report - aggregate share of profits (losses) of these entities, details of contributions to net profit for each of these entities, and with comparative figures for each of these disclosures for the previous corresponding period:

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9 - Comments by directors

EGY has reported a consolidated loss after tax and minorities for FY2024 of $10,537,212 (FY2023 loss after tax and minorities $15,344,996). Wholly owned subsidiary Bambach Wires and Cables Pty Ltd (Bambach) reported a loss after tax of $9,002,326 (FY2023 loss $14,127,919).

During the period, the company resolved to change the business strategy. Post a wide-ranging review, the company moved to de-risk the company away from its reliance on manufacturing. The company signed a distribution agreement with Gantner to provide renewable energy solutions in Australia and New Zealand, engaged with overseas manufacturers and agreed supply agreements for purchased sales of Low Voltage cables and ancillary products and implemented the internal manufactured strategy of concentrating the operations to high margin low-voltage production.

While this has resulted in the short term revenue decline as experienced in the last quarter of the Financial Year, it provides the company with better financial controls on outgoing operational cash flow.

Pleasingly, albeit small, the company has now generated sales in both the Purchased Sales division and the Renewable Energy space. While the manufacturing division will continue to provide regular cash flow generation, the two new divisions will be concentrated around tender wins on larger scale contracts.

The company is buoyed by these small, short term results and looks forward to the second half of FY25 once the strategic pivot in operations is finalised.

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Appendix 4E Preliminary final report

1. This report is based on accounts to which one of the following applies.

 The accounts have been  The accounts have been audited. subject to review. � The accounts are in the  The accounts have not yet process of being audited been audited or reviewed. or subject to review.

1. Description of likely dispute or qualification if the accounts have not yet been audited or subject to review or are in the process of being audited or subjected to review:

The Preliminary Financial Report is based on the Group’s 2024 annual financial report, the accounts of which are in the process of being audited. No matters have arisen thus far which would result in a dispute or qualification in the current year.

1. Description of dispute or qualification if the accounts have been audited or subject to review: N/A

Sign here:

==> picture [137 x 58] intentionally omitted <==

Print name: Matthew Driscoll Director

Date: 29 August 2024

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 30 June 2024

Notes CONTINUING OPERATIONS Sale of goods 2a Cost of sales 3 Gross (loss) / profit Other revenue 2b Marketing expenses Occupancy expenses Administrative expenses Finance costs 3 Depreciation and amortisation expenses 3 Impairment of intangible assets Other expenses LOSS FOR THE YEAR BEFORE INCOME TAX Income tax (expense) / benefits LOSS FOR THE YEAR AFTER INCOME TAX LOSS / (PROFIT) ATTRIBUTABLE TO MINORITY INTEREST LOSS ATTRIBUTABLE TO MEMBERS OF ENERGY TECHNOLOGIES LIMITED	CONSOLIDATED 2024 2023 $’000 $’000 12,899 15,535 (14,171) (15,766) (1,272) (231) 173 65 (19) (8) (151) (104) (4,881) (5,108) (2,258) (2,094) (1,708) (2,482) - (5,194) (217) (231) (10,333) (15,387) (206) 43 (10,539) (15,344) 2 (1) (10,537) (15,345)	CONSOLIDATED 2024 2023 $’000 $’000 12,899 15,535 (14,171) (15,766) (1,272) (231) 173 65 (19) (8) (151) (104) (4,881) (5,108) (2,258) (2,094) (1,708) (2,482) - (5,194) (217) (231) (10,333) (15,387) (206) 43 (10,539) (15,344) 2 (1) (10,537) (15,345)
		(231) 65 (8) (104) (5,108) (2,094) (2,482) (5,194) (231)
		(15,387) 43
		(15,344) (1)
		(15,345)

The accompanying notes form part of these financial statements.

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2024

LOSS FOR THE YEAR OTHER COMPREHENSIVE INCOME FOR THE YEAR AFTER TAX: Items that will be reclassified subsequently to profit or loss when specific conditions are met: Movement in foreign exchange relating to translation of controlled foreign entities Exchange difference on foreign exchange relating to minorities Revaluation of Plant and Equipment to fair value (net of deferred tax) TOTAL OTHER COMPREHENSIVE INCOME / (LOSS) TOTAL COMPREHENSIVE LOSS FOR THE YEAR TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Members of the parent entity Minority equity interest Earnings per Share From continuing operations: Basic loss per ordinary share (cents) Diluted loss per ordinary share (cents)	CONSOLIDATED 2024 2023 $’000 $’000 (10,539) (15,344) - (4) - (4) 185 -	CONSOLIDATED 2024 2023 $’000 $’000 (10,539) (15,344) - (4) - (4) 185 -
	185 (10,354) (10,352) (2) (10,354) (3.0) (3.0)	(8)
		(15,352)
		(15,349) (3)
		(15,352)
		(5.2) (5.2)

The accompanying notes form part of these financial statements.

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2024

Notes CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment 5 Right of use assets 6 Intangibles Deferred tax assets Other non-current assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings 7 Short-term provisions Lease liabilities 6 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings 7 Lease liabilities 6 Long-term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS / (LIABILITIES) EQUITY Issued capital 8 Reserves Share based payment reserve Accumulated losses Parent interest Minority interest TOTAL EQUITY / (DEFICIENCY IN EQUITY)	CONSOLIDATED 2024 2023 $’000 $’000 67 49 2,158 2,791 4,832 5,279 89 252 7,146 8,371 9,710 9,805 3,051 2,782 119 12 - 206 102 101 12,982 12,906 20,128 21,277 2,519 2,326 6,283 10,228 837 859 764 820 10,403 14,233 10,875 1,469 2,634 1,824 27 25 13,536 3,318 23,939 17,551 (3,811) 3,726 48,055 45,239 5,963 5,778 496 496 (57,700) (47,163) (3,186) 4,350 (625) (624)	CONSOLIDATED 2024 2023 $’000 $’000 67 49 2,158 2,791 4,832 5,279 89 252 7,146 8,371 9,710 9,805 3,051 2,782 119 12 - 206 102 101 12,982 12,906 20,128 21,277 2,519 2,326 6,283 10,228 837 859 764 820 10,403 14,233 10,875 1,469 2,634 1,824 27 25 13,536 3,318 23,939 17,551 (3,811) 3,726 48,055 45,239 5,963 5,778 496 496 (57,700) (47,163) (3,186) 4,350 (625) (624)
		8,371
		9,805 2,782 12 206 101
		12,906
		21,277
		2,326 10,228 859 820
		14,233
		1,469 1,824 25
		3,318
		17,551
		3,726
		45,239 5,778 496 (47,163)
		4,350 (624)
	(3,811)	3,726

The accompanying notes form part of these financial statements

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY As at 30 June 2024

As at 30 June 2024
	Issued	Reserves		Share Based	Accumulated		Minority		Total
	Capital			Payment	Losses		Interest
				Reserve
	$’000	$’000		$’000	$’000		$’000		$’000
Balance at 1 July 2022	41,769	5,782		680	(31,818)		(621)		15,792
Comprehensive income
(Loss) for the year	-		-	-	(15,345)			1	(15,344)
Other comprehensive loss for the year	-	(4)		-		-	(4)			(8)
Total comprehensive loss for the year	-	(4)		-	(15,345)		(3)		(15,352)
Transactions with owners, in their
capacity as owners, and other
transfers
Contributions of equity – net of capital raising costs	3,250		-	-		-		-	3,250
Unlisted share options	-		-	36		-		-		36
Unlisted share options – expired	220		-	(220)		-		-		-
Total transaction with owners, in
their capacity as owners, and	3,470		-	(184)		-		-	3,286
other transfers
Balance at 30 June 2023	45,239	5,778		496	(47,163)		(624)		3,726
Comprehensive income
(Loss) for the year	-		-	-	(10,537)		(1)		(10,538)
Other comprehensive income for the	-	185		-		-		-		185
year
Total comprehensive income for the year	-	185		-	(10,537)		(1)		(10,353)
Transactions with owners, in their
capacity as owners, and other
transfers
Contributions of equity - net of capital raising costs	2,816		-	-		-		-	2,816
Total transaction with owners, in
their capacity as owners, and	2,816		-	-		-		-	2,816
other transfers
Balance at 30 June 2024	48,055	5,963		496	(57,700)		(625)		(3,811)

The accompanying notes form part of these financial statements.

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ENERGY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2024

Notes CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Receipts from Government Grants - R & D grant Receipts from Government Grants – wages subsidies Interest Received Payments to suppliers and employees Finance costs NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES 4 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment Purchases of property, plant and equipment Proceeds from government grants NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Less outflows of raising capital Proceeds from convertible notes Proceeds from borrowings Repayment of borrowings Repayment of lease liabilities Repayment of convertible notes Repayment of loan from director NET CASH INFLOW FROM FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH HELD Add: Opening cash brought forward CLOSING CASH AT THE END OF THE YEAR	CONSOLIDATED 2024 2023 $’000 $’000 14,866 16,591 - 1,122 28 21 1 1 (19,991) (22,783) (2,121) (1,948) (7,217) (6,996) 34 - (93) (1,094) - 432 (59) (662) 2,954 3,400 (138) (151) 6,812 4,600 200 8,354 (1,697) (7,268) (787) (795) (50) - - (515) 7,294 7,625 18 (33) 49 82 67 49	CONSOLIDATED 2024 2023 $’000 $’000 14,866 16,591 - 1,122 28 21 1 1 (19,991) (22,783) (2,121) (1,948) (7,217) (6,996) 34 - (93) (1,094) - 432 (59) (662) 2,954 3,400 (138) (151) 6,812 4,600 200 8,354 (1,697) (7,268) (787) (795) (50) - - (515) 7,294 7,625 18 (33) 49 82 67 49
		(6,996)
		- (1,094) 432
		(662)
		3,400 (151) 4,600 8,354 (7,268) (795) - (515)
		7,625
		(33) 82
		49

The accompanying notes form part of these financial statements.

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

1. BASIS OF PREPARATION

a) Basis of preparation

The preliminary final report does not include all the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The preliminary final report should be read in conjunction with the half-year financial report of Energy Technologies Limited as at 31 December 2023. It is also recommended that the financial report be considered together with any public announcements made by Energy Technologies Limited and its controlled entities during the year ended 30 June 2024 in accordance with the continuous disclosure requirements arising under the Corporations Act 2001 .

This preliminary final report has been prepared in accordance with the requirements of the Australian Securities Exchange listing rules.

This preliminary final report does not constitute the full financial report for the year ended 30 June 2024.

b) Going Concern

This report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business.

The consolidated entity incurred a loss after tax and excluding minority interest of $10,537,212 (June 2023: loss of $15,344,996). During the year the group generated negative cash flows from operations of $7,217,625 (June 2023: negative $6,996,441). This loss includes an inventory write down of $528,409 for the year (FY2023: $798,286) following a further detailed review of inventory including slow-moving stock.

At 30 June 2024 the consolidated entity had a deficiency in net assets of $3,810,533 (June 2023: positive $3,726,281). The June 2024 net assets include intangible assets of $119,089 (FY2023: $12,498) The deferred tax asset in the 2023 financial statements of $205,515 has been fully impaired at 30 June 2024. The consolidated entity’s current liabilities exceed its current assets by $3,257,891 (2023: $5,861,503). Included in current liabilities are employee entitlements of $836,614 which are not expected to be settled in cash in full within the next twelve months. In addition, included in current liabilities are convertible notes of $1,600,000, the terms of which is that these mature within twelve months or such later date as is agreed in writing between the parties. Furthermore, current liabilities include an amount of $190,000 owing to a director, the terms of which is that the amount matures as is agreed in writing between the parties.

These conditions give rise to a material uncertainty that may cast significant doubt upon the Consolidated Entity’s ability to continue as a going concern.

The Directors believe, notwithstanding the above financial performance, position and operating cash outflows, this result, along with funding raised post the reporting date (refer to note 10 on subsequent events), as well as its track record of raising capital is not a cause of concern considering the results for the year ended 30 June 2024 were:

• in part affected by staff retention issues;

• impacted by continuing transitional issues in the relocation, expansion and then fully commissioning of the new manufacturing facility in Rosedale, regional Victoria;

• impacted by delays in the construction of the new silicone line shed, which is expected to be completed during the 2025 financial year;

• impacted by the factory not operating at full capacity, albeit that it is now close to being fully operational; and

• cash constraints which impacted the supply of raw material.

The Directors’ are of the view that once capacity levels are reached at Rosedale, positive cash flows from operations will occur.

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ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

b) Going Concern (continued)

The Director’s also note the following:

• A contributing factor to the decline in revenue in FY2024 was the company's change in business planning. The business is now focusing on maintaining safe manufacturing margins supported by a focus on the renewable energy sector and purchased product to sell into previously manufactured product clients. This resulted in a shift in capital employed to re-position the factory while investing in the lateral business opportunities;

• As announced in December 2023, the company has revised its business strategy to include purchased imported product delivered into the domestic market;

• In addition, in May 2024 the company announced its first distribution agreement signing, further expanding its sales opportunities and ability to provide end to end solutions to the market;

• The current sales order book remains strong;

• Convertible notes of $6,811,500 were raised during the year of which $50,000 were redeemed;

• A capital raising of $3.0m by way of a placement of new shares during the period (refer note 8); and

• As part of their assessment of impairment to assets, management have reviewed the carrying values of all underlying assets. Plant and equipment was revalued at 30 June 2024, and was revalued at $9,140,994 (excluding Capital Work in progress), which is $185,543 higher than the previously recorded amount.

Matters already occurred post the reporting date:

• Further working capital has been provided by way of unsecured loans of $950,000 received post balance date (refer note 10); and

• The potential to raise additional capital (as and when required).

Matters expected to occur in the view of the Directors:

• The Group has maintained ongoing support from its financiers and shareholders throughout 2024 and in the period subsequent to the date of this report;

• The potential to renegotiate and or extend debt facilities;

• The potential to raise additional capital, including the issue of further additional convertible notes (as and when required); and

• As is prudent for a Group of this size, and consistent with the factors noted in the points in para 1(b) above, the directors continue to manage the working capital and capital expenditure requirements in the best interests of shareholders. This includes the preparation, and review of cash flow forecasts and other longer-term projections which in the view of the Directors align with the strategy of the Group to achieve growth predominantly through the Rosedale facility operating at higher production capacity levels.

Management have prepared a cash flow projection (including the above assumptions) for the period to 30 September 2025 and a FY2024-25 budget that supports the ability of the consolidated entity to continue as a going concern. As a consequence of these matters, the Directors believe the consolidated entity will continue as a going concern and it is appropriate to prepare these financial statements on that basis.

In the event that the consolidated entity is unable to achieve the matters detailed above, it may not be able to continue as a going concern and therefore the consolidated entity may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial statements.

No adjustments have been made to the recoverability and classification of recorded asset values and the amount and classification of liabilities that might be necessary should the consolidated entity and company not continue as going concerns.

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

2. REVENUES FROM CONTINUING OPERATIONS a) Revenue from continuing operations Sale of goods transferred at a point in time b) Other revenues from continuing operations R&D Grant Finance revenue Other income Total revenue and other revenue from continuing operations	CONSOLIDATED 2024 2023 $’000 $’000 12,899 15,535 12,899 15,535 31 - 1 1 141 64 173 65 13,072 15,600	CONSOLIDATED 2024 2023 $’000 $’000 12,899 15,535 12,899 15,535 31 - 1 1 141 64 173 65 13,072 15,600
		15,535
		- 1 64
		65
		15,600

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

EXPENSES Included in the determination of net profit / (loss) before tax from continuing operations are the following expenses. Cost of Sales: Cost of Goods Sold Factory direct expenses less recovery Freight Inventory write down and manufacturing variances Gross Profit % - pre inventory write down Depreciation and amortisation of non-current assets: Plant and equipment Building and leasehold improvements Furniture, fixtures and fittings Motor vehicles Computer equipment Intangibles amortisation Right of use asset depreciation Total depreciation and amortisation of non-current assets Borrowing costs expensed: Borrowing expense Interest expense Lease finance charges Superannuation contributions Impairment of intangible assets Operating lease rental expense: Minimum lease payments – short term leases	CONSOLIDATED 2024 2023 $’000 $’000 8,696 10,411 3,678 2,999 687 761 1,110 1,595 14,171 15,766 (1.3%) 8.8% 819 904 86 48 7 37 6 9 8 8 71 771 711 705 1,708 2,482 192 841 1,929 1,108 137 145 2,258 2,094 302 285 - 5,194 16 107	CONSOLIDATED 2024 2023 $’000 $’000 8,696 10,411 3,678 2,999 687 761 1,110 1,595 14,171 15,766 (1.3%) 8.8% 819 904 86 48 7 37 6 9 8 8 71 771 711 705 1,708 2,482 192 841 1,929 1,108 137 145 2,258 2,094 302 285 - 5,194 16 107
		15,766
		8.8% 904 48 37 9 8 771 705
		2,482
		841 1,108 145
		2,094
		285 5,194 107

3. EXPENSES

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

4. STATEMENT OF CASH FLOWS Reconciliation of the net loss after tax to the net cash flows from operating activities Loss after income tax Add/(less) non-cash items Depreciation of non-current assets Amortisation of intangible assets Depreciation of right of use assets Unrealised foreign exchange movements Non-cash movement of intangible assets Hire Purchase loan write back Net loss on disposal of property, plant and equipment Share-based payment Hire purchase interest charges Lease liability interest charges Make good provision Changes in assets and liabilities (Increase) / decrease in trade and other receivables (Increase) / decrease in inventories (Decrease) / Increase in trade and other payables (Increase) / decrease in deferred tax asset (Increase) / decrease in other-current assets (Increase) / decrease in other-non-current receivables Net movement in provisions for employee entitlements Net cash (outflow) from operating activities	CONSOLIDATED 2024 2023 $’000 $’000 (10,539) (15,344) 926 1,006 71 771 711 705 1 (8) (178) 5,194 (12) (4) 35 2 - 36 - 3 137 145 10 - 633 439 447 (183) 193 64 206 (44) 163 154 (1) 30 (20) 38 (7,217) (6,996)	CONSOLIDATED 2024 2023 $’000 $’000 (10,539) (15,344) 926 1,006 71 771 711 705 1 (8) (178) 5,194 (12) (4) 35 2 - 36 - 3 137 145 10 - 633 439 447 (183) 193 64 206 (44) 163 154 (1) 30 (20) 38 (7,217) (6,996)
		(6,996)

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2024

5. PROPERTY, PLANT AND EQUIPMENT Leasehold Improvements Leasehold improvements at independent valuation Less: Accumulated depreciation Plant & Equipment Plant and equipment at independent valuation Less: Accumulated Impairment Losses Less: Accumulated depreciation Capital work in progress at Cost Movement in Carrying Amounts	CONSOLIDATED 2024 2023 $’000 $’000 1,026 625 - (153) 1,026 472 8,115 13,326 - (614) - (3,924) 8,115 8,788 569 545 9,710 9,805	CONSOLIDATED 2024 2023 $’000 $’000 1,026 625 - (153) 1,026 472 8,115 13,326 - (614) - (3,924) 8,115 8,788 569 545 9,710 9,805
		472
		13,326 (614) (3,924)
		8,788
		545
		9,805

Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Consolidated: Carrying amount at the beginning of the year Additions Depreciation expense Transfer from HP assets unencumbered Loss on disposal Proceeds from disposal Revaluation to fair value Carrying amount at the end of the year	Capital Work In Progress Leasehold Improvements Plant and Equipment Total $’000 $’000 $’000 $’000 545 472 8,788 9,805 24 - 69 93 - (47) (879) (926) - - 622 622 - - (35) (35) - - (34) (34) - 601 (416) 185
	569 1,026 8,115 9,710

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Appendix 4E Preliminary final report

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

ENERGY TECHNOLOGIES LIMITED

RIGHT OF USE ASSETS AND LEASE LIABILITIES Right of Use Assets Office and factory premises Less: Accumulated depreciation Plant and equipment Less: Accumulated depreciation	CONSOLIDATED 2024 2023 $’000 $’000 4,891 4,059 (2,068) (1,962) 2,823 2,097 276 964 (48) (279) 228 685 3,051 2,782	CONSOLIDATED 2024 2023 $’000 $’000 4,891 4,059 (2,068) (1,962) 2,823 2,097 276 964 (48) (279) 228 685 3,051 2,782
		2,097
		964 (279)
		685
		2,782

6. RIGHT OF USE ASSETS AND LEASE LIABILITIES

The consolidated entity has leased office premises under operating leases with various expiry dates, some with options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial year are set out below:

2024 Balance at the beginning of the financial year Additions Transfer to unencumbered assets Depreciation expense Balance at the end of the financial year	Office and Factory Premises Plant and equipment Total $’000 $’000 $’000 2,097 685 2,782 1,326 276 1,602 - (622) (622) (600) (111) (711)
	2,823 228 3,051

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

6. RIGHT OF USE ASSETS AND LEASE LIABILITIES (Cont’d) Lease Liabilities CURRENT Lease liabilities Hire purchase agreements NON-CURRENT Lease liabilities Hire purchase agreements 7. BORROWINGS CURRENT Secured Borrowings Debtor finance facility (a) Trade finance facility (b) Grow Equipment finance loan (d) Procuret Equipment finance loan (e) Convertible notes (f) Executive and director loan (c) Total Current Borrowings NON-CURRENT Secured Borrowings Convertible notes (f) Grow Equipment finance loan (d) Procuret Equipment finance loan (e) Total Non-Current Borrowings Total Borrowings	CONSOLIDATED 2024 2023 $’000 $’000 764 699 - 121 764 820 2,634 1,716 - 108 2,634 1,824 3,398 2,644 1,358 1,626 2,708 3,510 355 302 72 - 1,600 4,600 190 190 6,283 10,228 9,762 - 1,051 1,469 62 - 10,875 1,469 17,158 11,697	CONSOLIDATED 2024 2023 $’000 $’000 764 699 - 121 764 820 2,634 1,716 - 108 2,634 1,824 3,398 2,644 1,358 1,626 2,708 3,510 355 302 72 - 1,600 4,600 190 190 6,283 10,228 9,762 - 1,051 1,469 62 - 10,875 1,469 17,158 11,697
		10,228
		- 1,469 -
		1,469
		11,697

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

7. BORROWINGS (Cont’d)

• a) Secured Debtor Finance Facility. Interest is charged on the facility at the base rate, currently 12.85% less margin rate of 1.85%. No maturity date.

• b) Secured Trade Finance Facility. Term Charges 5.85% per 120 days. No maturity date.

• c) Secured loan from director of EGY and subsidiary Bambach Wires and Cables Pty Ltd for $190,000. Interest rate 10.00% per annum. Maturity Date is as agreed by the parties.

• d) Secured equipment finance loan with balance outstanding 30 June 2024 of $1,405,623. Interest rate 13.81% per annum. Maturity date August 2027.

• e) Secured Equipment Finance loan with balance outstanding at the end of the quarter $134,617. Interest rate 15.80% per annum and Lender Procuret. Matures 5 March 2026.

• f) Convertible Notes issued of $11,361,500 to noteholders. These notes have a face value of $1.00, attract a coupon rate of 10% and are convertible at a share price of $0.08 per note.

Of these notes $600,000 matures in October 2024, $1,000,000 matures in February 2025, and $3,000,000 matures in October 2025. These notes amount to $4,600,000 and interest is paid monthly.

The remaining notes amount to $6,761,500, the funds of which were received from August 2023 to March 2024, mature twenty-four months from the issue date or such later date as is agreed in writing between the parties. Interest is payable on maturity.

• g) Summary of finance facilities in place at 30 June 2024:

Financing facilities: Debtor finance and trade finance facility Equipment Finance Loans Convertible notes Director loan Total financing facilities Unused financing facilities available	Total facility amount at 30/06/2024 $’000 Amount drawn at 30/06/2024 $’000 8,100 4,066 1,540 1,540 11,362 11,362 190 190
	21,192 17,158
	$4,034

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Appendix 4E Preliminary final report

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

ENERGY TECHNOLOGIES LIMITED

8. CONTRIBUTED EQUITY Issued capital 422,074,788 (337,659,830 – 2023) ordinary shares fully paid Ordinary Shares 2024 Number 2023 Number At the beginning of reporting period 337,659,830 272,275,214 13/05/2024 issued at $0.035 84,414,958 - 08/03/2023 issued at $0.052 - 65,384,616 Capital Transaction Costs - - Unlisted share options – expired - - At reporting date 422,074,788 337,659,830	8. CONTRIBUTED EQUITY Issued capital 422,074,788 (337,659,830 – 2023) ordinary shares fully paid Ordinary Shares 2024 Number 2023 Number At the beginning of reporting period 337,659,830 272,275,214 13/05/2024 issued at $0.035 84,414,958 - 08/03/2023 issued at $0.052 - 65,384,616 Capital Transaction Costs - - Unlisted share options – expired - - At reporting date 422,074,788 337,659,830	CONSOLIDATED 2024 2023 $ $ 48,055,588 45,239,038 $ $ 45,239,038 41,768,876 2,954,524 - - 3,400,000 (137,974) (150,081) - 220,243 48,055,588 45,239,038	CONSOLIDATED 2024 2023 $ $ 48,055,588 45,239,038 $ $ 45,239,038 41,768,876 2,954,524 - - 3,400,000 (137,974) (150,081) - 220,243 48,055,588 45,239,038
			$ 41,768,876 - 3,400,000 (150,081) 220,243
	422,074,788 337,659,830		45,239,038

On 13 May 2024 EGY issued 84,414,958 shares through a share placement. The issue price was $0.035 per share.

Shares issued under the non-renounceable rights issue 14 October 2021 had 25,000,058 attaching listed options expiring 31 October 2024. The offer price for these options was $NIL and the options have an exercise price of $0.20.

9. SEGMENT REPORTING

Primary reporting - Business segments

The Group’s primary business segment is Specialist and Industrial Cables and ancillary products. Therefore, the segment details are fully reflected in the results and balances reported in the Consolidated Statement of Profit or Loss and Consolidated Statement of Financial Position.

Management currently identifies the Group as one operating segment being Specialist and Industrial Cables and ancillary products. This segment is monitored by the Group’s chief operating decision makers and strategic decisions are made on the basis of this segment result only.

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Appendix 4E Preliminary final report

ENERGY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024

10. SUBSEQUENT EVENTS

The following matters have occurred post reporting date:

• Unsecured short-term loans issued of $950,000 post the reporting date. These loans incur an interest rate of 18% per annum.

Other than this there has not arisen since the end of the financial year any other matter of circumstance which, in the opinion of the directors of the Company, significantly affects the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years.

Compliance statement

1. Compliance with Australian Accounting Standards ensures that the financial statements and notes comply with International Financial Reporting Standards issued by the IASB.

2. 2 This preliminary report, and the accounts upon which the report is based (if separate), use the same accounting policies.

3. 3 This preliminary report does give a true and fair view of the matters disclosed.

4. 4 The accounts are in the process of being audited.

5. 5 The entity has a formally constituted audit committee.

Sign here:

==> picture [127 x 55] intentionally omitted <==

Print name: Matthew Driscoll Director

Date: 29 August 2024

30/06/2024

Appendix 4E Page 21 of 21