EPX LIMITED - Annual Report 2021 | FinancialReports.eu

EP&T Global Limited Appendix 4E Preliminary final report

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1. Company details

Name of entity: EP&T Global Limited ABN: 50 645 144 314 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

2. Results for announcement to the market
			$
Revenues from ordinary activities	down	9.7% to	6,077,746
Loss from ordinary activities after tax attributable to the owners of EP&T
Global Limited	up	196.0% to	(12,156,861)
Loss for the year attributable to the owners of EP&T Global Limited	up	196.0% to	(12,156,861)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the Group after providing for income tax amounted to $12,156,861 (30 June 2020: $4,106,988).

On 11 May 2021, EP&T Global Limited (‘EPX’) was admitted to the Official List of ASX Limited (‘ASX’). Official quotation of EPX’s ordinary fully paid shares commenced on 12 May 2021. EPX raised $11,000,000 pursuant to the offer under its prospectus dated 19 March 2021 ('Prospectus') by the issue of 55,000,000 shares at an issue price of $0.20 per share.

Refer to Market announcement, which precedes the Appendix 4E, for further commentary on the results for the year ended 30 June 2021.

Underlying earnings before interest, taxation, depreciation and amortisation ('EBITDA') is a financial measure which is not prescribed by the Australian Accounting Standards (‘AASBs’) and represents the loss under AASBs adjusted for specific items, including the change in fair value of convertible notes, impairment of assets, Initial Public Offering ('IPO') costs, finance costs related to convertible notes and share-based payments expense. The directors consider Underlying EBITDA to be one of the key financial measures of the Group.

The following table summarises key reconciling items between statutory after tax result attributable to the shareholders of the Company and Underlying EBITDA:

Loss after income tax Less: Income tax benefit Less: Interest income Add: Interest expense Add: Depreciation Reported EBITDA Add: Change in fair value of convertible notes (1) Add: Impairment of assets (2) Add: IPO expense (3) Add: Finance costs related to convertible notes (4) Add: Share-based payments expense (5) Underlying EBITDA	Consolidated 2021 $ (12,156,861) (225,817) (175,680) 125,626 546,668	Aggregated 2020 $ (4,106,988) (122,034) (228,159) 154,204 528,563 (3,774,414) 213,546 471,079 - 617,948 - (2,471,841)
	(11,886,064) 3,996,465 1,998,584 980,288 757,251 896,457
	(3,257,019)

EP&T Global Limited Appendix 4E Preliminary final report

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(1) Represents the movement in derivatives recognised on convertible notes which were fully converted to ordinary shares in EP&T Global Limited at the time of the IPO.
(2) Represents accrued revenues and receivables on projects revenues recognised in prior years no longer considered recoverable.
(3) Expenses related to the IPO of EP&T Global Limited on ASX completed in May 2021.
(4) Interest and amortised borrowing costs in relation to convertible notes issued by EP&T Global Limited. Accrued interest and remaining unamortised borrowing costs were extinguished at the time of the IPO.
(5) Expense recognised in relation to the issue of options over ordinary shares prior to the IPO of EP&T Global Limited

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 4.40	Previous period Cents (5.90)

Net tangible assets per ordinary security has been calculated by excluding the net right-of-use assets and leases liabilities of ($69,076) (2020: ($45,416)).

The net tangible assets per ordinary shares is calculated based on 185,799,500 ordinary shares on issue as at 30 June 2021 and 63,921,081 ordinary shares that would have been in existence had the corporate/group reorganisation occurred as at 30 June 2020.

4. Control gained over entities

On 15 October 2020 EP&T Global Limited acquired the individual entities that comprised the EP&T Pty Limited Aggregate Group. For accounting purposes the acquisition has been treated as a group reorganisation.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

Not applicable.

EP&T Global Limited Appendix 4E Preliminary final report

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8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

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

The financial statements are in the process of being audited and an unqualified opinion is expected to be issued.

11. Attachments

Details of attachments (if any):

The Preliminary Financial Report of EP&T Global Limited for the year ended 30 June 2021 is attached.

12. Signed

Signed _________

Date: 27 August 2021

Jonathan Sweeney Chairman

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EP&T Global Limited

ABN 50 645 144 314

Preliminary Financial Report - 30 June 2021

EP&T Global Limited
Contents
30 June 2021
Statement of profit or loss and other comprehensive income	2
Statement of financial position	3
Statement of changes in equity	4
Statement of cash flows	5
Notes to the financial statements	6

General information

The financial statements cover EP&T Global Limited as a consolidated entity consisting of EP&T Global Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is EP&T Global Limited's functional and presentation currency.

EP&T Global Limited (‘EPX’) was incorporated on 15 October 2020 and was admitted to the Official List of ASX Limited (‘ASX’) on 11 May 2021.

EP&T Global Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Suite 2, 407 Pacific Highway Artarmon NSW 2064

EP&T Global Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

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Note Revenue 3 Other income 4 Interest revenue calculated using the effective interest method Expenses Raw materials and consumables used Employee benefits expense 5 Depreciation expense 5 Impairment of assets 5 Consultancy expense Marketing expense Occupancy expense IPO expense Change in fair value of convertible notes 5 Other expenses 5 Finance costs 5 Loss before income tax benefit Income tax benefit Loss after income tax benefit for the year attributable to the owners of EP&T Global Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of EP&T Global Limited Basic earnings per share 15 Diluted earnings per share 15	Consolidated 2021 $ 6,077,746 1,219,357 175,680 (208,477) (8,934,275) (546,668) (1,998,584) (152,147) (251,483) (231,147) (980,288) (3,996,465) (1,673,050) (882,877)	Aggregated 2020 $ 6,733,134 850,652 228,159 (794,514) (6,918,007) (528,563) (471,079) (426,292) (114,982) (194,954) - (213,546) (1,606,878) (772,152) (4,229,022) 122,034 (4,106,988) (216,033) (216,033) (4,323,021) Cents (6.43) (6.43)
	(12,382,678) 225,817
	(12,156,861) (483,513)
	(483,513)
	(12,640,374)
	Cents (34.26) (34.26)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

EP&T Global Limited Statement of financial position As at 30 June 2021

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 6 Inventories Other assets 7 Total current assets Non-current assets Trade and other receivables 6 Contract assets 8 Plant and equipment 9 Right-of-use assets 10 Deferred tax Other assets 7 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 11 Contract liabilities Borrowings 12 Lease liabilities Derivative financial instruments Employee benefits Provisions Total current liabilities Non-current liabilities Borrowings 12 Lease liabilities Derivative financial instruments Employee benefits Total non-current liabilities Total liabilities Net assets/(liabilities) Equity Issued capital 13 Reserves 14 Accumulated losses Total equity/(deficiency)	Consolidated 2021 $ 5,300,099 2,297,651 1,040,120 570,460	Aggregated 2020 $ 835,085 3,719,862 1,386,861 353,101 6,294,909 2,310,110 - 84,615 809,220 535,218 67,938 3,807,101 10,102,010 3,207,822 - 3,146,716 373,785 2,049,516 1,142,336 65,000 9,985,175 2,274,861 480,851 1,175,149 - 3,930,861 13,916,036 (3,814,026) - (3,814,026) - (3,814,026)
	9,208,330
	916,065 1,076,870 1,732,810 504,506 761,035 67,938
	5,059,224
	14,267,554
	3,452,902 51,940 - 412,271 - 1,388,058 65,000
	5,370,171
	592,434 161,311 - 32,402
	786,147
	6,156,318
	8,111,236
	36,219,410 (15,951,313) (12,156,861)
	8,111,236

The above statement of financial position should be read in conjunction with the accompanying notes

EP&T Global Limited Statement of changes in equity For the year ended 30 June 2021

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EP&T Global Limited Statement of changes in equity For the year ended 30 June 2021
Balance at 1 July 2019 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Group reorganisation Balance at 30 June 2020 Balance at 1 July 2020 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 13) Share-based payments (note 14) Group reorganisation (note 14) Balance at 30 June 2021	Issued capital $ 2,018,870 - -	Reserves $ 45,841 - (216,033)	Accumulated losses $ (1,668,182) (4,106,988) -	Total deficiency in equity $ 396,529 (4,106,988) (216,033)
	- (2,018,870)	(216,033) (3,643,834)	(4,106,988) 5,775,170	(4,323,021) 112,466
	-	(3,814,026)	-	(3,814,026)
	Issued capital $ - - -	Reserves $ (3,814,026) - (483,513)	Accumulated losses $ - (12,156,861) -	Total equity $ (3,814,026) (12,156,861) (483,513)
	- 36,219,410 - -	(483,513) - 896,457 (12,550,231)	(12,156,861) - - -	(12,640,374) 36,219,410 896,457 (12,550,231)
	36,219,410	(15,951,313)	(12,156,861)	8,111,236

The above statement of changes in equity should be read in conjunction with the accompanying notes

EP&T Global Limited Statement of cash flows For the year ended 30 June 2021

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EP&T Global Limited Statement of cash flows For the year ended 30 June 2021
Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Other revenue - grants and incentives Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment 9 Payments for security deposits Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares net of issue costs Proceeds from convertible notes net of issue costs Proceeds from borrowings Repayment of loan from shareholders Repayment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year	Consolidated 2021 $ 7,610,818 (12,308,053)	Aggregated 2020 $ 9,052,152 (11,542,076) (2,489,924) 228,159 (154,204) 685,630 (1,730,339) (22,199) (8,911) (31,110) - 2,324,752 - (64,383) (480,665) 1,779,704 18,255 247,742 265,997
	(4,697,235) 175,680 (189,602) 1,281,177
	(3,429,980)
	(1,757,833) -
	(1,757,833)
	9,125,738 1,950,000 592,434 (1,048,359) (397,898)
	10,221,915
	5,034,102 265,997
	5,300,099

The above statement of cash flows should be read in conjunction with the accompanying notes

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 1. Principles of consolidation and common control transaction

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of EP&T Global Limited ('Company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. EP&T Global Limited and its subsidiaries together are referred to in these financial statements as the 'Group'.

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Corporate/Group reorganisation - EP&T Global Limited and EP&T Pty Limited Aggregated Group

EP&T Global Limited was incorporated on 15 October 2020. On 19 March 2021, the shareholders of the Company undertook a corporate reorganisation, in which EP&T Global Limited acquired EP&T Pty Limited Aggregate Group ('Aggregated Group') which is comprised of EP & T Pty Limited, EP & T Global Limited (UK), EP & T Global Limited (HK) and EP & T FZ LLC (Dubai). Under the principals of corporate reorganisation, in accordance with the Australian Accounting Standards, the financial statements of EP&T Global Limited includes the historical financial information of the Aggregated Group for the period before the acquisition.

Accordingly, the financial statements for the year ended 30 June 2021 presents the financial results for the consolidated Group under EP&T Global Limited for the period from acquisition to 30 June 2021 and the consolidated Group under the Aggregated Group for the 1 July 2020 and 30 June 2021. The comparatives presented in the financial statements represent the financial position of the Aggregated Group as at 30 June 2020, and the financial performance of the Aggregated Group for the year ended 30 June 2020.

This corporate reorganisation did not represent a business combination in accordance with AASB 3 ‘Business Combination’. Instead the appropriate accounting treatment for recognising the new Group structure is on the basis that the transaction is a form of capital reconstruction and Group reorganisation. Accordingly the financial statements are a continuation of the Aggregated Group and as such:

The assets and liabilities recognised and measured are at carrying amounts of the Aggregated Group;
The retained earnings and other equity balances recognised are the existing retained earnings and other equity balances of the Aggregated Group;
The amount recognised as issued equity instruments are determined by adding the additional equity retained by the Group to the issued equity recorded in the Aggregated Group’s financial statements immediately before the acquisition;
No 'new' goodwill has been recognised as a result of the combination. The difference between the consideration paid and the equity 'acquired' is reflected in equity as a 'capital contribution'; and
The comparatives presented are that of the Aggregated Group.

Note 2. Operating segments

Identification of reportable operating segments

The Group is organised into four operating segments: based on the geographic markets they serve. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

Upon becoming a listed entity, the CODM now reviews EBITDA (earnings before interest, tax, depreciation and amortisation) for each reportable segment’s measure of profit or loss. In the comparative period the CODM reviewed each reportable segment’s share of statutory profit or loss before tax. The comparative period segment disclosures has not been updated to include EBITDA. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.

The information reported to the CODM is on a monthly basis.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 2. Operating segments (continued)

Intersegment transactions

Intersegment transactions were made at market rates. Intersegment transactions are eliminated on consolidation.

Intersegment receivables, payables and loans

Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation.

Major customers

There are no significant customers in any reported segment that comprise greater than 10% of the Group revenues.

Operating segment information

Australia $ 3,020,315 1,390,052	United Kingdom $ 1,878,200 -	Hong Kong $ 247,067 -	Middle East $ 932,164 -	Inter group eliminations $ - (1,390,052)
4,410,367 - 500,000 483,000 37,065	1,878,200 - 212,798 - 82,297	247,067 - - 23,559 1	932,164 - - - 56,317	(1,390,052) - - - -
5,430,432	2,173,295	270,627	988,481	(1,390,052)
5,430,432	2,173,295	270,627	988,481	(1,390,052)
(2,419,839) (217,227) 7,134 37,065 (221,213)	120,837 (165,633) (102,353) 82,297 (26,000)	(580,307) (81,960) - 1 (10,428)	(354,125) (81,848) (1,903,365) 56,317 (1,373)	- - - - -
(2,814,080)	(90,852)	(672,694)	(2,284,394)	-
16,703,830	2,179,114	222,152	4,139,959	(8,977,501)
2,734,225	3,458,956	2,445,571	6,495,067	(8,977,501)

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 2. Operating segments (continued)

Australia $ 4,865,167 -	United Kingdom $ 1,779,702 -	Hong Kong $ 387,107 -	Middle East $ 982,947 -	Inter segment eliminations $ (1,281,789) 228,159
4,865,167	1,779,702	387,107	982,947	(1,053,630)
(2,036,074)	(424,712)	(740,575)	(1,027,661)	-
(2,036,074)	(424,712)	(740,575)	(1,027,661)	-
8,955,949	2,281,605	260,994	4,588,165	(5,984,703)
9,736,707	3,440,279	1,963,428	4,615,069	(5,839,447)
				Consolidated 2021 $ 780,784 4,963,135 333,827
				6,077,746
				Consolidated 2021 $ 780,784 5,296,962
				6,077,746

Note 3. Revenue

Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 4. Other income

Note 4. Other income
Government grants - COVID-19 stimulus Research and development tax incentive Other income	Consolidated 2021 $ 506,559 712,798	Aggregated 2020 $ 273,380 577,272 850,652
	1,219,357

Government grants (COVID-19) represents grants received from the Government comprising of JobKeeper support payments. During the Coronavirus (COVID-19) pandemic, the Group has received JobKeeper support payments from the Australian Government which are passed on to eligible employees. These have been recognised as government grants in the financial statements and recorded as other income over the periods in which the related employee benefits are recognised as an expense. The Group was eligible for JobKeeper support from the government on the condition that employee benefits continue to be paid.

Note 5. Expenses

Loss before income tax includes the following specific expenses: Depreciation Leasehold improvements Computer equipment Office and other equipment Project equipment Buildings right-of-use assets Total depreciation expense Impairment of assets Impairment of receivables (note 6) Reverse of inventory provision Total impairment of assets Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Interest charges on convertible notes Amortised borrowing costs Finance costs expensed Net fair value loss Change in fair value of convertible notes (note 12) Leases Short-term lease payments Low-value assets lease payments Covid-19 rent concessions	Consolidated 2021 $ 4,268 31,534 8,196 82,990 419,680	Aggregated 2020 $ 56,368 32,336 8,744 - 431,115 528,563 474,670 (3,591) 471,079 51,640 102,564 495,156 122,792 772,152 213,546 194,954 69,600 (6,306) 258,248
	546,668
	1,998,584 -
	1,998,584
	47,471 78,155 623,863 133,388
	882,877
	3,996,465
	230,818 63,800 (7,236)
	287,382

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 5. Expenses (continued)

Note 5. Expenses (continued)
Employee benefits expense Salary and wages Sales commissions, bonus and incentives Payroll related taxes Defined contribution superannuation expense Share-based payment expense * Total employee benefits expense Other expenses Legal and professional fees Insurance IT and communication costs Travel and accommodation Other Total other expenses	Consolidated 2021 $ 6,730,071 689,008 236,719 382,020 896,457	Aggregated 2020 $ 6,182,338 135,616 279,597 320,456 - 6,918,007 374,034 138,983 299,414 441,986 352,461 1,606,878
	8,934,275
	619,820 169,623 330,517 135,022 418,068
	1,673,050

* Share-based payments

Equity-settled share-based compensation benefits are provided to employees in the form of options over shares. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 6. Trade and other receivables

Current assets Trade receivables Less: Allowance for expected credit losses Other receivables Accrued income Less: Provision for impairment R&D tax rebate receivable BAS receivable Non-current assets Accrued income Less: Provision for impairment	Consolidated 2021 $ 2,742,097 (1,892,469)	Aggregated 2020 $ 3,630,894 (538,995) 3,091,899 - - - 627,963 - 3,719,862 2,883,655 (573,545) 2,310,110 6,029,972
	849,628
	1,133,940 (300,386)
	833,554
	566,144 48,325
	2,297,651
	2,068,614 (1,152,549)
	916,065
	3,213,716

Accrued income

Amounts relating to goods transferred to a customer and not yet invoiced. The Group has entered into a contractual agreement with the respective customers under which the accrued income is invoiced and paid over time. The Group has an unconditional right to receive payment for these goods.

Allowance for expected credit losses

For the year ended 30 June 2021, the Group has recognised a loss of $1,998,584 (2020: $474,670) in the Statement of profit or loss in respect of expected credit losses and provision for impairment of accrued income. $1,903,365 (2020: $412,524) of this loss relate to projects for which the revenue was recognised in the 2018 and 2019 financial years.

Note 7. Other assets

Current assets Prepayments Security deposits Other current assets Non-current assets Security deposits	Consolidated 2021 $ 511,447 48,695 10,318	Aggregated 2020 $ 292,400 49,543 11,158 353,101 67,938 421,039
	570,460
	67,938
	638,398

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 8. Contract assets

Note 8. Contract assets
Non-current assets Contract assets Less: Accumulated amortisation Reconciliation Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out below: Opening balance Additions Amortisation of assets Closing balance	Consolidated 2021 $ 1,094,056 (17,186)	Aggregated 2020 $ - - - - - - -
	1,076,870
	- 1,094,056 (17,186)
	1,076,870

Contract assets are recognised in relation to the incremental costs of acquiring new contracts that would not be incurred if the contract were not obtained. These costs represent sales commissions and are amortised over the term of the contract to which they relate which ranges from 3 years to 7 years.

Note 9. Plant and equipment

Non-current assets Leasehold improvements - at cost Less: Accumulated depreciation Computer equipment - at cost Less: Accumulated depreciation Office and other equipment - at cost Less: Accumulated depreciation Project equipment at cost Less: Accumulated depreciation Projects under deployment	Consolidated 2021 $ 403,502 (395,981)	Aggregated 2020 $ 367,945 (350,598) 17,347 723,652 (672,669) 50,983 508,542 (492,257) 16,285 - - - - 84,615
	7,521
	841,277 (710,738)
	130,539
	544,754 (463,307)
	81,447
	635,491 (67,218)
	568,273
	945,030
	1,732,810

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 9. Plant and equipment (continued)

Reconciliations

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

below:
Balance at 1 July 2019 Additions Exchange differences Depreciation expense Balance at 30 June 2020 Additions Exchange differences Depreciation expense Balance at 30 June 2021	Leasehold improvements $ 68,851 - 4,864 (56,368)	Computer equipment $ 73,506 5,313 4,500 (32,336)	Office and other equipment $ 16,207 16,886 (8,064) (8,744)	Project equipment $ - - - -	Projects under deployment $ - - - -	Total $ 158,564 22,199 1,300 (97,448)
	17,347 - (5,558) (4,268)	50,983 111,871 (781) (31,534)	16,285 65,441 7,917 (8,196)	- 635,491 15,772 (82,990)	- 945,030 - -	84,615 1,757,833 17,350 (126,988)
	7,521	130,539	81,447	568,273	945,030	1,732,810

Project equipment and projects under deployment relate to the costs incurred by the Group in fulfilling contracts with customers. These are direct costs of materials and third party installation costs associated with specific contracts with customers. Project equipment is depreciated over the term of the contract to which the costs relate.

Note 10. Right-of-use assets

Non-current assets Buildings - right-of-use Less: Accumulated depreciation	Consolidated 2021 $ 1,355,426 (850,920)	Aggregated 2020 $ 1,240,335 (431,115)
	504,506	809,220

The Group leases buildings for its offices under agreements of between 1 to 2.5 years with, in some cases, options to extend. Leases are for office space in Australia, Hong Kong, UK and Dubai. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

The Group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are expensed as incurred.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 10. Right-of-use assets (continued)

Reconciliations

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

below:
Balance at 1 July 2019 Additions Value on adoption of AASB 16 Exchange differences Depreciation expense Balance at 30 June 2020 Additions Exchange differences Depreciation expense Balance at 30 June 2021	Buildings $ - 50,900 1,181,837 7,598 (431,115)
	809,220 116,844 (1,878) (419,680)
	504,506

Note 11. Trade and other payables

Current liabilities Trade payables Payroll related payables Accrued convertible note interest Accrued commission, bonus and incentives * BAS payable Other payables	Consolidated 2021 $ 1,332,417 764,070 - 927,329 - 429,086	Aggregated 2020 $ 1,135,551 634,610 640,922 134,582 133,089 529,068
	3,452,902	3,207,822

* Includes accrued sales commissions which are included in note 8-contract assets and short-term incentive payments relating to the 2021 financial year.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 12. Borrowings

Note 12. Borrowings
Current liabilities Bank overdraft Convertible notes payable Convertible notes issue costs Non-current liabilities Bank loan Shareholder related payable Convertible notes payable Convertible notes issue costs	Consolidated 2021 $ - - -	Aggregated 2020 $ 569,088 2,613,089 (35,461) 3,146,716 - 1,048,359 1,285,783 (59,281) 2,274,861 5,421,577
	-
	592,434 - - -
	592,434
	592,434

Shareholder related payable

The shareholder related payable was repaid in the year ended 30 June 2021. Prior to repayment, this amount was unsecured and non-interest bearing.

Borrowings at amortised cost

The interest rate on the bank loan is 2.75% per annum. This loan is denominated in Hong Kong dollars and is repayable in equal monthly instalments over 60 months commencing on 4 February 2021. The bank loan was provided under the Hong Kong SME Financing Guarantee Scheme introduced in response to COVID-19 and is unsecured.

The bank overdraft facility was repaid in May 2021. The interest rate on the bank overdraft facility was 4.6% (2020: 4.6%) per annum. The carrying amount of the bank overdraft is considered to be a reasonable approximation of the fair value.

Convertible notes

The convertible notes were converted to ordinary shares in EP&T Global Limited at the time of the IPO in May 2021. The face value of the convertible notes on issue at the conversion event was $7,956,000. The terms of the notes at the time of conversion were as follows:

conversion were as follows:
Redemption	24 months unless converted earlier
Conversion	Forced conversion to ordinary shares in case of a liquidity event within 24 months of
	issuance
Liquidity event	IPO, Reverse Take Over ('RTO') or trade sale
Interest rate	10% p.a. compounded daily from date of issue
Interest capitalisation	Noteholders can elect to capitalise the interest
Offer price	Price of ordinary share
	- under prospectus for IPO/RTO
	- offered by the purchaser in a trade sale
Conversion price	Tranche 1 - Face Value of $3,445,000 - 50% of the offer price
	Tranche 2 - Face Value of $2,261,000 - 70% of the offer price
	Tranche 3 - Face Value of $2,250,000 - 75% of the offer price
Conversion price (interest)	100% of the offer price
	$1,189,455 of accrued interest was converted to ordinary shares at the Liquidity event

A total of 71,520,424 ordinary shares in EP&T Global Limited were issued to holders of convertible notes on conversion of the convertible notes and accrued interest. An expense of $3,996,465 (2020: $213,546) was recognised in the Statement of profit or loss and other comprehensive income in relation to the change in fair value of convertible notes.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 13. Issued capital

Ordinary shares - fully paid	Consolidated 2021 Shares 185,799,500	Aggregated 2020 Shares -	Consolidated 2021 $ 36,219,410	Aggregated 2020 $ -

Group reorganisation

When EP&T Global Limited ('EPT') (the legal parent and legal acquirer) acquired the entities that comprise the Aggregated Group (the legal subsidiaries), the acquisition did not meet the definition of a business combination in accordance with AASB 3 'Business Combinations'. Instead, the acquisition has been treated as a Group reorganisation.

Movements in ordinary share capital

Details Date Balance 1 July 2019 Adjustment to issued capital on corporate reorganisation Balance 30 June 2020 Issue of shares on incorporation 15 October 2020 Shares issued as consideration for acquisition of subsidiaries 19 March 2021 Conversion of convertible notes 12 May 2021 Issue of shares at IPO 12 May 2021 Shares issued as consideration for IPO costs 12 May 2021 Share of IPO costs, net of tax Balance 30 June 2021	Shares Issue price 7,505,300 (7,505,300) $0.00 - 1,000,000 $0.01 63,921,081 $0.20 71,520,424 $0.20 47,500,000 $0.20 1,857,995 $0.20 - $0.00 185,799,500	$ 2,054,753 (2,054,753)
		- 10,000 12,784,216 14,304,085 9,500,000 371,599 (750,490)
		36,219,410

Note 14. Reserves

Note 14. Reserves
Reorganisation reserve Foreign currency reserve Share-based payments reserve	Consolidated 2021 $ (16,364,257) (483,513) 896,457	Aggregated 2020 $ (3,814,026) - -
	(15,951,313)	(3,814,026)

Reorganisation reserve

The reserve is used to recognise contributions from or to EP&T Global Limited and its controlled subsidiaries by shareholders.

Foreign currency reserve

The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services.

EP&T Global Limited Notes to the financial statements 30 June 2021

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Note 14. Reserves (continued)

Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Balance at 1 July 2019 Foreign currency translation Group reorganisation Group reorganisation - transfer of opening Foreign currency balance to Group reorganisation reserve Balance at 30 June 2020 Foreign currency translation Group reorganisation Share-based payments expense Balance at 30 June 2021	Reorgani- sation $ - - (3,984,218) 170,192	Foreign currency $ (45,841) 216,033 - (170,192)	Share-based payments $ - - - -	Total $ (45,841) 216,033 (3,984,218) -
	(3,814,026) - (12,550,231) -	- (483,513) - -	- - - 896,457	(3,814,026) (483,513) (12,550,231) 896,457
	(16,364,257)	(483,513)	896,457	(15,951,313)

Note 15. Earnings per share

Note 15. Earnings per share
Loss after income tax attributable to the owners of EP&T Global Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated 2021 $ (12,156,861)	Aggregated 2020 $ (4,106,988)
	Number 35,481,407	Number 63,921,081
	35,481,407	63,921,081
	Cents (34.26) (34.26)	Cents (6.43) (6.43)

20,696,780 options over ordinary shares are not included in the calculation of diluted earnings per share because they are antidilutive for the year ended 30 June 2021. These options could potentially dilute basic earnings per share in the future.

The weighted average number of ordinary shares for 2020 has been restated for the effect of the group reorganisation (-54.72 for -6.43) completed in 19 March 2021, in accordance with AASB 133 'Earnings per share'.

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EPX LIMITED — Annual Report 2021

64865_rns_2021-08-26_8f570745-c0a7-484a-83ea-f9fb03d78f07.pdf

1. Company details

2. Results for announcement to the market

Dividends

Comments

3. Net tangible assets

4. Control gained over entities

5. Loss of control over entities

6. Dividends

Current period

Previous period

7. Dividend reinvestment plans

8. Details of associates and joint venture entities

9. Foreign entities

10. Audit qualification or review

11. Attachments

Details of attachments (if any):

12. Signed

EP&T Global Limited

ABN 50 645 144 314

General information

EP&T Global Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

EP&T Global Limited Statement of cash flows For the year ended 30 June 2021

Note 1. Principles of consolidation and common control transaction

Corporate/Group reorganisation - EP&T Global Limited and EP&T Pty Limited Aggregated Group

Note 2. Operating segments

Identification of reportable operating segments

Intersegment transactions

Intersegment receivables, payables and loans

Major customers

Operating segment information

Note 3. Revenue

Disaggregation of revenue

Note 4. Other income

Note 5. Expenses

Note 5. Expenses (continued)

* Share-based payments

Note 6. Trade and other receivables

Accrued income

Allowance for expected credit losses

Note 7. Other assets

Note 8. Contract assets

Note 9. Plant and equipment

Note 9. Plant and equipment (continued)

Reconciliations

Note 10. Right-of-use assets

Note 10. Right-of-use assets (continued)

Reconciliations

Note 11. Trade and other payables

Note 12. Borrowings

Shareholder related payable

Borrowings at amortised cost

Convertible notes

Note 13. Issued capital

Group reorganisation

Movements in ordinary share capital

Note 14. Reserves

Reorganisation reserve

Foreign currency reserve

Share-based payments reserve

Movements in reserves

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EPX LIMITED Annual Report 2021