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ROCKETDNA LTD. — Interim / Quarterly Report 2022
Aug 28, 2022
65709_rns_2022-08-28_680d6033-b3f8-4989-b876-ef2cafb54855.pdf
Interim / Quarterly Report
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Delta Drone International Limited Appendix 4D Half-year report
1. Company details
Name of entity: Delta Drone International Limited ABN: 17 618 678 701 Reporting period: For the half-year ended 30 June 2022 Previous period: For the half-year ended 30 June 2021
2. Results for announcement to the market
| 2. Results for announcement to the market | |||
|---|---|---|---|
| $ | |||
| Revenues from continuing ordinary activities including other income | up | 46.2% to | 2,825,907 |
| Loss from continuing ordinary activities afer tax attributable to the | |||
| owners of Delta Drone International Limited | up | 101.6% to | (1,344,148) |
| Loss for the half-year attributable to the owners of Delta Drone | |||
| International Limited | down | 43.9% to | (838,516) |
Dividends
There were no dividends paid, recommended or declared during the current financial period.
Comments
Further explanation of the results is contained in the attached announcement and interim financial report.
3. Net tangible assets
| Reporing | Previous | |
|---|---|---|
| period | period | |
| Cents | Cents | |
| Net tangible assets per ordinary security | 1.12 | 0.688 |
| ===== |
4. Control gained over entities
Not applicable.
5. Loss of control over entities
In February 2022, the Group finalised the sale of Parazero Israel. During the current period the discontinued operations contributed a gain of $505,632 (2021 :$828,338) after income tax expense.
6. Dividends
Current period
There were no dividends paid, recommended or declared during the current fin&ncial period.
Previous period
There were no dividends paid, recommended or declared during the previous financial period.
Delta Drone International Limited Appendix4D Half-year report
7. Dividend reinvestment plans
Not applicable.
8. Details of associates and joint venture entities
Not applicable.
9. Foreign entities
Details of origin of accounting standards used in compiling the report:
Foreign entity accounting information is prepared and complies with International Financial Reporting Standards (IFRS).
10. Audit qualification or review
This report is based on accounts that have been subject to an audit review. The Auditor has issued an Independent Auditor's Review Report with an unqualified opinion. The attached half-year financial report has been prepared on a going concern basis. There are no items of dispute with the auditor and the audit review is not subject to a qualification.
11. Signed
Date: 29 August 2022
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ASX Announcement
Half Year Financial Report and Appendix 4D Refocused Business, Strong Growth and Pathway to Profitability
HIGHLIGHTS
-
Operating revenue growth of 47% at $2.8m in 1H FY2022 compared to 1H FY2021
-
Introduction of new commercial performance metrics; Annual Recurring Revenue (ARR) and Total Contract Value (TCV) with ARR reaching $1.7m and TCV $3.8m
-
Continued growth in contracts signed; material multi-year contracts signed with Red 5 Limited and post period end, Assmang’s Khumani Iron Ore
-
Strong revenue contribution from Australian business following acquisition of Arvista in Western Australia (renamed Rocketmine WA) in late calendar 2021 and refocusing of the business on drone data services to the mining sector with the sale of ParaZero (drone safety solutions) in early calendar 2022
-
Board composition changes to size the board to the right size of the current business
-
Outlook: further multi-year contracts expected to be signed and a pathway to sustainable breakeven has been established with Gross Profit of $1.37m and Net Loss after tax of $0.8m in 1H FY2022; Cash at bank of $3.2m at 30 June 2022
29 August 2022 – Delta Drone International Limited (ASX: DLT), a Global drones-as-a-service provider, is pleased to provide this business update for the half year ending 30 June 2022 (1H FY2022), along with its Appendix 4D.
During the half year, DLT generated Operating revenue of $2.8m, 47% growth over 1H FY2021. This excludes revenues generated from ParaZero in both periods. Gross Profit was $1.37m (with Australia being a strong contributor and increasing its gross margin) and Net Loss after tax of $0.8m in 1H FY2022.
In addition, some initial steps were taken to unwind some of the corporate cost increases seen on late 2021. This resulted in a one-off impact from director termination fees and a part benefit in reduced underlying director fees during 1H FY2022, contributing only late in the period (see further information in section – Other key changes in this report).
DLT CEO Christopher Clark said: “ DLT has a unique value proposition, in which it offers a data commodity product to traditional industries, such as mining and agricultural, while operating in the highly-regulated framework for drones ..
These last 6-months have really been about positioning the business to take advantage of this value proposition locally in Australia: by focusing on our Arvista investment and giving it the operational capacity which it required, it has organically increased monthly revenues by 48% since acquiring the business.
With the local branding now standardised as Rocketmine WA, we are changing up another gear by incorporating more software and AI-related tools into our contract services. This will not only increase the overall profitability per enterprise customer but will also continue to separate us from
Delta Drone International Limited | ABN 17 618 678 701 T +61 8 6189 1155 | A: 75 Thomas Street, Subiaco WA 6008
the competition, as we are able to deliver more complex data products over much larger target areas.
Many of our long-term customers, who currently purchase our services repeatedly on an ad-hoc basis, are starting to take note of our unique offering, which ultimately transitions their projectbased arrangements into long-term commitments and allows them to benefit from a better pricing structure. This means we often need to follow a longer process of transferring these customers from single recurring monthly purchase orders into multi-year legal contracts.
This is where our new reporting metrics come in. To help shareholders and analysts understand the true value of our unique tech-services model, we have also introduced new Annual Recurring Revenue (ARR) & Total Contract Value (TCV) metrics to give scale to the extent of our confirmed order book and long-term customer billing commitments.
We look forward in continuing our mission of applying first principles to the business in 2H FY22, with the goal of solving complex customer problems and by incorporating simple product and partner additions, while aiming for overall profitability in the business, which we see a clear runway towards achieving.”
New commercial performance metrics
DLT introduced new commercial performance metrics late in the period (see Q2 FY2022 June quarterly report for further information announced 25 July 2022).
-
Annual Recurring Revenue (ARR) of $1.7m at 30 June 2022
-
• Total Contract Value (TCV) of $3.8m at 30 June 2022
These metrics will give investors insight into commercial drivers of the business and also help investors undertake peer valuation.
Multi-year contracts sit behind these metrics with Red 5 Limited (material contract) being a contributor. Post period end in July, a contract was signed with Assmang’s Khumani Iron Ore (material contract). In addition, smaller contracts or projects were signed with Seriti Coal, Exxaro, BDO for audit project (recontract), Lucapa Diamonds, Bibiani Mine and Newmont Akyem and Ahafo (additional scope).
Other key changes
Board: Changes were made to the composition of the Board to suit the size of the current business. This will contribute to reducing overhead costs in future periods.
Acquisition / divestiture: In late calendar 2021 DLT acquired Arvista in Western Australia (WA) who have an existing mining client base. The Company invested in building and expanding operational capacity in WA and building regulatory, marketing and sales functions to support future expected growth. The Arvista business was subsequently renamed to Rocketmine WA. In early calendar 2022, ParaZero was divested (drone safety solutions).
This announcement has been authorised for release by the CEO of Delta Drone International Limited.
-ENDS-
P a g e 2 | 3
For more information, please contact:
Corporate
Chris Clark, Chief Executive Officer E: [email protected] Stephen Buckley, Company Secretary P: +61 (0)8 6189 1155
Investors and Media Glen Zurcher P: +61 (0)420 249 299 E: [email protected]
About Delta Drone International www.dlti.com.au
Delta Drone International is a ASX listed (ASX: DLT) multi-national drone-based data service and technology solutions provider for the mining, agricultural and engineering industries.
Services are aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis through a fully-outsourced service with AI and fast data turnaround that allows enterprise customers to focus on operations on the ground while Delta Drone International takes care of everything in the air.
Revenues are generated through multi-year recurring revenue contracts and short projects which also have the potential to be recurring. Key customer contracts include with tier 1 and tier 2 miners, South32, Newmont Mining, Red 5 and Seriti Coal.
DLT’s operations are focused on Australia and Africa with regional offices in Perth, Johannesburg & Accra.
Scan this QR code to subscribe to DLT’s latest company News & Announcements, else click here
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P a g e 3 | 3
Delta Drone International Limited ABN 17 618 678 701
Interim Report - 30 June 2022
Delta Drone International Limited Corporate directory 30 June 2022
| Directors | Mr Christopher Clark | Executive Chairman, Chief Executive Officer |
|---|---|---|
| Mr Nicolas Clerc | Non-Executive Director | |
| Mr Christian Viguie | Non-Executive Director | |
| Mr Paul Williamson | Executive Director, Chief Financial Officer | |
| Company secretary | Mr Stephen Buckley | |
| Registered office | 75 Thomas Street | |
| Subiaco WA 6008 | ||
| Email: [email protected] | ||
| Principal place of business | 75 Thomas Street | |
| Subiaco WA 6008 | ||
| Share register | Automic Registry Services | |
| Level 5, 191 St Georges Terrace | ||
| Perth WA 6000 | ||
| Email: [email protected] | ||
| Web: www.automic.com.au | ||
| Auditor | Hall Chadwick | |
| 283 Rokeby Road | ||
| Subiaco WA 6008 | ||
| Legal Advisers (Australia) | Eaton Hall | |
| 20/210 Queen Victoria Street | ||
| North Fremantle WA 6159 | ||
| Legal Advisers (Israel) | Shibolet | |
| Museum Tower | ||
| 4 Berkowitz Street | ||
| Tel Aviv Israel 6423806 | ||
| Legal Advisers (South Africa) | Rodl & Partner | |
| 1 Eastgate Lane | ||
| Bedfordview | ||
| South Africa 2007 | ||
| Stock exchange listing | Delta Drone International Limited | shares are listed on the Australian Securities |
| Exchange (ASX code: DLT) | ||
| ASX Limited | ||
| Level 40, Central Park | ||
| 152-158 St Georges Terrace | ||
| Perth WA 6005 | ||
| Website | Web: www.dlti.com.au | |
| Corporate Governance Statement | Delta Drone's Corporate Governance Statement can be viewed at: | |
| https://www.dlti.com.au/resource/corporate-governance/ |
1
Delta Drone International Limited Directors' report 30 June 2022
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Delta Drone International Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2022.
Directors
| Directors | |||
|---|---|---|---|
| Name | Title | Appointed | Resigned |
| B. Gen (ret.) Eden Attias | Executive Chairman | 13 June 2018 | 17 June 2022 |
| Mr Christopher Clark | Executive Chairman, Chief | 3 December 2020 | - |
| Executive Officer | |||
| Mr Stephen Gorenstein | Non-Executive Director | 17 October 2018 | 17 June 2022 |
| Mr Nicolas Clerc | Non-Executive Director | 8 April 2021 | - |
| Mr Christian Viguie | Non-Executive Director | 8 April 2021 | - |
| Mr Clive Donner | Non-Executive Director | 14 July 2021 | 24 May 2022 |
| Mr Paul Williamson | Executive Director, Chief | 22 June 2022 | |
| Financial Officer |
Principal activities
Delta Drone International is a multi-national drone-based data service and technology solutions provider for the mining, agricultural and engineering industries.
Services are aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis through a fully-outsourced service with AI and fast data turnaround that allows enterprise customers to focus on operations on the ground while Delta Drone International takes care of everything in the air.
Revenues are generated through multi-year recurring revenue contracts and short projects which also have the potential to be recurring. Key customer contracts include with tier 1 and tier 2 miners, South32, Newmont Mining, Red 5 and Seriti Coal.
DLT’s operations are focused on Australia and Africa with regional offices in Perth, Johannesburg & Accra.
Review of operations
The loss for the Group after providing for income tax and non-controlling interest amounted to $818,264 (2021: $1,463,639).
The loss for the Group from continuing operations amounted to $1,323,896 (2021: $635,301).
Unless otherwise stated, all figures in this report are in the Company’s presentation currency, the Australian Dollar (“$”).
The Company introduced new operating metrics for the business which provide investors with insight into the Company’s commercial model. These metrics are driven by the ongoing signing of multi-year contracts and are measured as follows:
-
Annual Recurring Revenue (ARR)
-
Total Contract Value (TCV)
At 30 June 2022, ARR of the Group totalled $1.710m and TCV totalled $3.822m. In addition, the Company generates revenues from short contracts which are likely to re-occur as well as one-off revenue. For further information, see the Company’s June Q2 FY2022 quarterly report.
Key announcements made during the half year period include:
-
Beyond Visual Line of Sight (BLVOS) drone operating license granted by the Civil Aviation Safety Authority (CASA) in greater Kalgoorlie of Western Australia opening significant business opportunities to tender for contracts.
-
● Red-5 (via wholly owned subsidiary Greenstone Resources), 3-year contract.
-
During the half year Eden Attias (Non-executive Chairman), Stephen Gorenstein (Non-executive Director) and Clive Donner
-
(non-executive Director) resigned their positions as Directors of the Company. Paul Williamson was appointed as an Executive Director and now holds the positions of Executive Director and Chief Financial Officer, whilst Christopher Clark was appointed Executive Chairman and now holds the positions of Executive Chairman and Chief Executive Officer.
2
Delta Drone International Limited Directors' report 30 June 2022
Significant changes in the state of affairs
In February 2022, the Group finalised the sale of Parazero Israel. In line with AASB 5 Non-current Assets Held for Sale and Discontinued Operations the assets and liabilities of the entity has been disclosed separately in this note and has been recognised as assets of disposal groups classified as held for sale and liabilities directly associated with assets classified as held for sale. The performance of Parazero Israel has been included as a single line item in the Consolidated statement of profit or loss and other comprehensive income.
There were no further significant changes in the state of affairs of the Group during the financial half-year.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report.
This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
On behalf of the Dire . rs
C�-
29 August 2022
To the Board of Directors
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead audit director for the review of the financial statements of Delta Drone International Ltd for the halfyear ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:
-
the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
-
any applicable code of professional conduct in relation to the review.
Yours Faithfully,
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HALL CHADWICK AUDIT (WA) PTY LTD ABN 42 163 529 682
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NIKKI SHEN CA Director
Dated this 29[th] day of August 2022 Perth, Western Australia
Delta Drone International Limited Contents 30 June 2022
| Consolidated statement of profit or loss and other comprehensive income | 6 |
|---|---|
| Consolidated statement of financial position | 8 |
| Consolidated statement of changes in equity | 9 |
| Consolidated statement of cash flows | 10 |
| Notes to the consolidated financial statements | 11 |
| Directors' declaration | 23 |
| Independent auditor's review report to the members of Delta Drone International Limited | 24 |
General information
The financial statements cover Delta Drone International Limited as a Group consisting of Delta Drone International Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Delta Drone International Limited's functional and presentation currency.
Delta Drone International Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:
75 Thomas Street, Subiaco WA 6008
A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 24 August 2022.
5
Delta Drone International Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2022
| Note Continuing operations Revenue 3 Cost of sales Gross profit Other income Gains from disposals of assets Expenses Operating expense 4 Depreciation and amortisation expense Loss on disposal of assets Operating loss Finance income Finance expense Loss before income tax benefit from continuing operations Income tax benefit Loss after income tax benefit from continuing operations Discontinued operations (Loss)/profit after income tax expense from discontinued operations 5 Loss after income tax benefit for the half-year Other comprehensive (loss)/income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive (loss)/income for the half-year, net of tax Total comprehensive loss for the half-year Loss for the half-year is attributable to: Non-controlling interest Owners of Delta Drone International Limited |
Consolidated 2022 2021 $ $ 2,783,501 1,896,373 (1,417,359) (802,866) 1,366,142 1,093,507 10,625 36,621 31,781 - (2,572,065) (1,708,133) (149,149) (55,146) - (1,601) (1,312,666) (634,752) 6,784 5,990 (27,221) (13,527) (1,333,103) (642,289) 9,207 6,988 (1,323,896) (635,301) 505,632 (828,338) (818,264) (1,463,639) (423,394) 148,622 (423,394) 148,622 (1,241,658) (1,315,017) 20,252 31,485 (838,516) (1,495,124) (818,264) (1,463,639) |
|---|---|
| 1,366,142 | |
| 10,625 31,781 (2,572,065) (149,149) - |
|
| (1,312,666) 6,784 (27,221) |
|
| (1,333,103) 9,207 |
|
| (1,323,896) | |
| 505,632 | |
| (818,264) (423,394) |
|
| (423,394) | |
| (1,241,658) | |
| 20,252 (838,516) |
|
| (818,264) |
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
6
Delta Drone International Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2022
| Note Total comprehensive loss for the half-year is attributable to: Continuing operations Discontinued operations Non-controlling interest Continuing operations Discontinued operations Owners of Delta Drone International Limited Loss per share for loss from continuing operations attributable to the owners of Delta Drone International Limited Basic loss per share Diluted loss per share Earnings per share for profit/(loss) from discontinued operations attributable to the owners of Delta Drone International Limited Basic earnings/(loss) per share Diluted earnings per share Loss per share for loss attributable to the owners of Delta Drone International Limited Basic loss per share Diluted loss per share |
Consolidated 2022 2021 $ $ 35,742 31,485 - - 35,742 31,485 (1,348,363) (518,164) 70,963 (828,338) (1,277,400) (1,346,502) (1,241,658) (1,315,017) Cents Cents (0.26) (0.27) (0.26) (0.27) 0.10 (0.33) 0.10 (0.33) (0.16) (0.60) (0.16) (0.60) |
|---|---|
| (1,277,400) | |
| (1,241,658) | |
| Cents (0.26) (0.26) 0.10 0.10 (0.16) (0.16) |
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
7
Delta Drone International Limited Consolidated statement of financial position As at 30 June 2022
| Note Assets Current assets Cash and cash equivalents 6 Trade and other receivables 7 Deposits Assets of disposal groups classified as held for sale Total current assets Non-current assets Property, plant and equipment 8 Right-of-use assets 9 Intangibles 10 Deferred tax 11 Goodwill Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 12 Contract liabilities 13 Borrowings 14 Lease liabilities 15 Income tax Deferred consideration Liabilities directly associated with assets classified as held for sale 16 Total current liabilities Non-current liabilities Borrowings 17 Lease liabilities 18 Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Equity attributable to the owners of Delta Drone International Limited Non-controlling interest Total equity |
Consolidated 2022 2021 $ $ 3,188,730 954,916 2,226,638 1,415,957 44,346 40,178 5,459,714 2,411,051 - 6,540,901 5,459,714 8,951,952 1,121,082 741,252 73,693 121,621 5,454 5,313 145,048 97,542 1,210,181 1,403,438 2,555,458 2,369,166 8,015,172 11,321,118 681,907 470,528 87,258 114,850 49,661 369,085 58,311 97,638 16,407 - - 271,483 893,544 1,323,584 - 1,682,604 893,544 3,006,188 159,235 105,253 47,108 56,003 206,343 161,256 1,099,887 3,167,444 6,915,285 8,153,674 13,207,118 13,207,118 (1,007,479) (587,354) (5,419,795) (4,581,279) 6,779,844 8,038,485 135,441 115,189 6,915,285 8,153,674 |
|---|---|
| 5,459,714 - |
|
| 5,459,714 | |
| 1,121,082 73,693 5,454 145,048 1,210,181 |
|
| 2,555,458 | |
| 8,015,172 | |
| 681,907 87,258 49,661 58,311 16,407 - |
|
| 893,544 - |
|
| 893,544 | |
| 159,235 47,108 |
|
| 206,343 | |
| 1,099,887 | |
| 6,915,285 | |
| 13,207,118 (1,007,479) (5,419,795) |
|
| 6,779,844 135,441 |
|
| 6,915,285 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
8
Delta Drone International Limited Consolidated statement of changes in equity For the half-year ended 30 June 2022
| Issued Foreign currency translation Share based payment Accumulat ed capital reserve Reserves reserve losses Consolidated $ $ $ $ $ Balance at 1 January 2021 12,904,061 419,845 (968,570) - (963,472) (Loss)/profit after income tax benefit for the half-year - - - - (1,495,124) Other comprehensive income for the half-year, net of tax - 142,437 - - - Total comprehensive (loss)/income for the half-year - 142,437 - - (1,495,124) Issue of shares 20,939 - - - - Issue of performance rights - - - 1,829 - Share issue costs (3,844) - - - - Balance at 30 June 2021 12,921,156 562,282 (968,570) 1,829(2,458,596) Issued Foreign currency translation Share based payment Accumulated capital reserve Reserves reserve losses Consolidated $ $ $ $ $ Balance at 1 January 2022 13,207,118 327,423 (968,570) 53,793 (4,581,279) (Loss)/profit after income tax benefit for the half-year - - - - (838,516) Other comprehensive loss for the half-year, net of tax - (438,884) - - - Total comprehensive (loss)/income for the half- year - (438,884) - - (838,516) Transactions with owners in their capacity as owners: Share-based payments (note 20) - - - 3,269 - Balance at 30 June 2022 13,207,118 (111,461) (968,570) 57,062 (5,419,795) |
Issued Foreign currency translation Share based payment Accumulat ed capital reserve Reserves reserve losses Consolidated $ $ $ $ $ Balance at 1 January 2021 12,904,061 419,845 (968,570) - (963,472) (Loss)/profit after income tax benefit for the half-year - - - - (1,495,124) Other comprehensive income for the half-year, net of tax - 142,437 - - - Total comprehensive (loss)/income for the half-year - 142,437 - - (1,495,124) Issue of shares 20,939 - - - - Issue of performance rights - - - 1,829 - Share issue costs (3,844) - - - - Balance at 30 June 2021 12,921,156 562,282 (968,570) 1,829(2,458,596) Issued Foreign currency translation Share based payment Accumulated capital reserve Reserves reserve losses Consolidated $ $ $ $ $ Balance at 1 January 2022 13,207,118 327,423 (968,570) 53,793 (4,581,279) (Loss)/profit after income tax benefit for the half-year - - - - (838,516) Other comprehensive loss for the half-year, net of tax - (438,884) - - - Total comprehensive (loss)/income for the half- year - (438,884) - - (838,516) Transactions with owners in their capacity as owners: Share-based payments (note 20) - - - 3,269 - Balance at 30 June 2022 13,207,118 (111,461) (968,570) 57,062 (5,419,795) |
Issued capital $ 12,904,061 - - |
Issued capital $ 12,904,061 - - |
Foreign currency translation reserve $ 419,845 - 142,437 |
Foreign currency translation reserve $ 419,845 - 142,437 |
Reserves $ (968,570) - - |
Reserves $ (968,570) - - |
Share based payment reserve $ - - - |
Share based payment reserve $ - - - |
Accumulat ed losses $ (963,472) (1,495,124) - |
Non- controlling interest $ 75,021 31,485 6,185 |
Total equity $ 11,466,885 (1,463,639) 148,622 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| - 20,939 - (3,844) |
142,437 - - - |
- - - - |
- - 1,829 - |
(1,495,124) - - - |
37,670 - - - |
(1,315,017) 20,939 1,829 (3,844) |
||||||
| 12,921,156 | 562,282 | (968,570) | 1,829 | (2,458,596) | 112,691 | 10,170,792 | ||||||
| Foreign currency translation reserve $ 327,423 - (438,884) |
Reserves $ (968,570) - - |
Share based payment reserve $ 53,793 - - |
Accumulated losses $ (4,581,279) (838,516) - |
Non- controlling interest $ 115,189 20,252 15,490 |
Total equity $ 8,153,674 (818,264) (423,394) |
|||||||
| - - |
(438,884) - |
- - |
- 3,269 |
(838,516) - |
35,742 - |
(1,241,658) 3,269 |
||||||
| 13,207,118 | (111,461) | (968,570) | 57,062 | (5,419,795) | 150,931 | 6,915,285 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
9
Delta Drone International Limited Consolidated statement of cash flows For the half-year ended 30 June 2022
| Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers (inclusive of GST) Interest received Interest and other finance costs paid Net cash (used in) discontinued operations Income taxes refunded Income taxes paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment 8 Payment for deferred consideration Proceed from loans Proceeds from loans Proceeds from disposal of business Payments for costs associated with disposal of business Proceeds from disposal of property, plant and equipment Proceeds from release of security deposits Net cash used by discontinued operations Net cash from/(used in) investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Net cash used by discontinued operations Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year |
Consolidated 2022 2021 $ $ 3,101,160 2,248,388 (3,739,969) (2,477,535) (638,809) (229,147) 6,769 5,924 (1,155) (14,691) (127,423) (1,050,422) 26,853 - - (121,464) (733,765) (1,409,800) (543,507) (283,771) (274,483) - 7,775 - - 4,541 4,275,218 - (200,351) - 68,691 193 - 6,631 - (6,466) 3,333,343 (278,872) 40,000 200,994 (380,216) (506,838) - (36,963) (340,216) (342,807) 2,259,362 (2,031,479) 954,916 5,182,923 (25,548) (18,636) 3,188,730 3,132,808 |
|---|---|
| (638,809) 6,769 (1,155) (127,423) 26,853 - |
|
| (733,765) | |
| (543,507) (274,483) 7,775 - 4,275,218 (200,351) 68,691 - - |
|
| 3,333,343 | |
| 40,000 (380,216) - |
|
| (340,216) | |
| 2,259,362 954,916 (25,548) |
|
| 3,188,730 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
10
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 1. Significant accounting policies
These general purpose financial statements for the interim half-year reporting period ended 30 June 2022 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.
These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2021 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Discontinued Operation
Recognition and Measurement
A discontinued operation is a component of the Group that has either been disposed of, or is held for sale, and;
-
represents a separate major line of business or geographical area of operations;
-
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
-
is a subsidiary acquired exclusively with a view to resale.
Profit or loss from discontinued operations, including prior year components of profit or loss, are presented in a single amount in the statement of profit or loss and other comprehensive income. This amount, which comprises the post-tax profit or loss of discontinued operations, is analysed in Note 5.
Going Concern
During the period, the Group generated a loss after tax from continuing operations of $1,323,896 (2021: $635,301), is reporting a net working capital of $4,566,170 (2021 : $5,945,764), has incurred net cash outflows from operations of $733,765 (2021 outflow of $1,409,800). As at 30 June 2022, the Group had $3,188,730 in cash (2021 : $3,132,808) and consolidated net asset of $6,915,285 (2021 : net asset of $8,153,674).
The Group has prepared the financial statements for the financial period ended 30 June 2022 on a going concern basis, which assumes continuity of current business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.
11
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 1. Significant accounting policies (continued)
Significant Accounting judgements, estimates and assumptions
In the process of applying the Group’s accounting policies management makes judgements. In addition, the carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:
Coronavirus (COVID-19 pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Tax impact on discontinued operation
The Group has consulted a tax consultant in regards to the gain or loss arising from the discontinued operation. With that understanding, the Group has determined that there is a nil taxation impact from the discontinued operation.
Note 2. Operating segments
Identification of reportable operating segments
The Group is organised into one operating segment. These operating segment is 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. The segment is split into the geographical locations of the Group's main business, namely Australia, South Africa and Israel. The following table analyses sales revenue and EBITDA based on geographical location
Operating segment information
| Consolidated - 2022 Revenue Sales to external customers Other income and gain on sale of assets Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs (Loss)/profit before income tax benefit Income tax benefit Loss after income tax benefit |
Australia $ 973,732 1,215 |
Africa $ 1,809,769 41,191 |
Discontinued Operation $ 42,373 - 42,373 505,632 - - - 505,632 |
Corporate $ - - |
Total $ 2,825,874 42,406 2,868,280 (657,885) (149,149) 6,784 (27,221) (827,471) 9,207 (818,264) |
|---|---|---|---|---|---|
| 974,947 | 1,850,960 | - | |||
| (331,854) (73,612) - (691) |
6,050 (71,092) 5,428 (23,772) |
(837,713) (4,445) 1,356 (2,758) |
|||
| (406,157) | (83,386) |
(843,560) | |||
Results relating to operations in discontinued operations have been included in this note for disclosure purposes. Contained with the results is the gain on the disposal with the result being $505,632. Results for the segment are reported on a net basis in the consolidated statement of profit or loss and other comprehensive income as it is a discontinued operation.
12
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 2. Operating segments (continued)
| Consolidated - 2021 Revenue Sales to external customers Other income Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs (Loss)/profit before income tax benefit Income tax benefit Loss after income tax benefit |
Australia $ - |
Africa $ 1,896,373 36,621 |
Discontinued Operation $ 596,458 |
Corporate $ - |
Total $ 2,492,831 36,621 2,529,452 (1,104,826) (328,982) 5,990 (42,809) (1,470,627) 6,988 (1,463,639) |
|---|---|---|---|---|---|
| - | 1,932,994 | 596,458 | - | ||
| (86,960) (2,472) - - |
121,403 (52,674) 5,869 (13,527) |
(525,220) (273,836) - (29,282) |
(614,049) - 121 - |
||
| (89,432) | 61,071 |
(828,338) | (613,928) | ||
Results relating to operations in Israel have been included in this note for disclosure purposes. Results for the segment are reported on a net basis in the consolidated statement of profit or loss and other comprehensive income as it is a discontinued operation.
| Segment assets Unallocated assets: Cash Deferred tax asset Segment liabilities Unallocated liabilities: Borrowings Note 3. Revenue Rendering of services Timing of revenue recognition At a point in time Over time |
2022 4,681,394 3,188,730 145,048 |
|---|---|
| 8,015,172 | |
| 890,991 208,896 |
|
| 1,099,887 | |
| 2,783,501 |
Note 3. Revenue
All revenue received during the period was earned over a period of time. Revenue unearned have been recorded in the Statement of Financial Position as a Contract Liability.
13
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 4. Operating expense
| Employee benefits expense General and administrative expenses Corporate costs Share based payments Note 5. Discontinued operations |
Consolidated 2022 2021 $ $ 1,127,243 554,496 818,171 614,327 623,382 537,481 3,269 1,829 |
Consolidated 2022 2021 $ $ 1,127,243 554,496 818,171 614,327 623,382 537,481 3,269 1,829 |
|---|---|---|
| 2,572,065 | 1,708,133 | |
Financial performance information
| Revenue Expenses Loss before income tax expense Income tax expense Loss after income tax expense Gain on disposal before income tax Income tax expense Gain on disposal after income tax expense (Loss)/profit after income tax expense from discontinued operations Cash flow information Net cash used in operating activities |
Consolidated 2022 2021 $ $ 42,373 596,458 (176,265) (1,424,796) |
Consolidated 2022 2021 $ $ 42,373 596,458 (176,265) (1,424,796) |
|---|---|---|
| (133,892) - |
(828,338) - |
|
| (133,892) | (828,338) | |
| 639,524 - |
- - |
|
| 639,524 | - | |
| 505,632 | (828,338) | |
| Consolidated 2022 2021 $ $ (127,423) (991,647) |
14
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 5. Discontinued operations (continued)
Carrying amounts of assets and liabilities disposed
| Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Total assets Trade and other payables Total liabilities Net liabilities Details of the disposal Cash consideration to 30 June 2022 Funds held in escrow Disposal costs under sale agreement Net working capital adjustment Contractual amount Disposal costs under sale agreement Net working capital adjustment Provisions for withholding tax and claims Total accounting sale consideration Carrying amount of net liabilities disposed Derecognition of foreign currency reserve Derecognition of goodwill and intangible assets Disposal costs, Australia Gain on disposal before income tax Gain on disposal after income tax |
Consolidated 2022 2021 $ $ 68,001 - 184,879 - 463,307 - 83,780 - |
Consolidated 2022 2021 $ $ 68,001 - 184,879 - 463,307 - 83,780 - |
|---|---|---|
| 799,967 | - | |
| 1,081,907 | - | |
| 1,081,907 | - | |
| (281,940) | - | |
| Consolidated 2022 2021 $ $ 4,275,218 - 1,150,000 - 197,540 377,242 6,000,000 (197,540) (377,242) (113,026) 5,312,192 281,940 434,669 - (5,156,344) - (232,933) - |
||
| 6,000,000 (197,540) (377,242) (113,026) |
||
| 5,312,192 281,940 434,669 (5,156,344) (232,933) |
||
| 639,524 | - | |
| 639,524 | - |
In February 2022, the Group finalised the sale of Parazero Israel. In line with AASB 5 Non-current Assets Held for Sale and Discontinued Operations the assets and liabilities of the entity has been disclosed separately in this note and has been recognised as assets of disposal groups classified as held for sale and liabilities directly associated with assets classified as held for sale. The performance of Parazero Israel has been included as a single line item in the Consolidated statement of profit or loss and other comprehensive income.
Note 6. Current assets - cash and cash equivalents
| Cash and cash equivalents | Consolidated 2022 2021 $ $ 3,188,730 954,916 |
|---|---|
15
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 7. Current assets - trade and other receivables
| Trade receivables Expected Credit loss allowance Goods and services tax Prepayments Other receivables Parazero sale escrow net of provisions for witholding tax and claims |
Consolidated 2022 2021 $ $ 1,016,501 1,067,644 (6,257) (6,095) 49,278 92,143 1,059,522 1,153,692 111,991 259,885 18,151 2,380 1,036,974 - 1,055,125 2,380 2,226,638 1,415,957 |
|---|---|
| 1,059,522 | |
| 111,991 | |
| 18,151 1,036,974 |
|
| 1,055,125 | |
| 2,226,638 |
There are no receivables that are past due where expected credit loss has not been assessed.
Prepayments mainly relate to payments made for insurances paid in advance.
Note 8. Non-current assets - property, plant and equipment
| Cost Accumulated depreciation Net carrying amount |
Consolidated 2022 2021 $ $ 3,069,149 2,095,970 (1,948,067) (1,354,718) 1,121,082 741,252 |
|---|---|
| 1,121,082 |
16
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 8. Non-current assets - property, plant and equipment (continued)
| Opening balance $ 30 June 2022 Survey equipment - Furniture and fixtures 23,437 Motor vehicles 142,186 Office equipment 32,268 IT equipment 49,712 Leasehold improvements 10,172 Drone accessories 141,421 Drones 294,928 Drone batteries 19,995 Other fixed assets 2,460 Capital works in progress 24,673 Plant and equipment - 741,252 31 December 2021 Survey equipment Furniture and fixtures Motor vehicles Office equipment IT equipment Leasehold improvements Drone accessories Drone batteries Other fixed assets Drones Capital works in progress |
Opening balance $ - 23,437 142,186 32,268 49,712 10,172 141,421 294,928 19,995 2,460 24,673 - |
Additions $ - 1,879 51,951 30,983 51,590 33,967 143,522 160,223 68,572 820 - - |
Transfers $ - - - - - 24,673 88,567 - (88,567) - (24,673) - |
Transfers $ - - - - - 24,673 88,567 - (88,567) - (24,673) - |
Business combination $ - - - - - - - - - - - 211,294 |
Business combination $ - - - - - - - - - - - 211,294 |
Disposals $ - - (23,785) - - - (3,180) - - - - - |
Disposals $ - - (23,785) - - - (3,180) - - - - - |
Depreciation $ - (5,505) (20,285) (8,993) (19,279) (3,838) (139,774) (88,407) - (1,002) - (58,693) |
Depreciation $ - (5,505) (20,285) (8,993) (19,279) (3,838) (139,774) (88,407) - (1,002) - (58,693) |
Foreign exchange movements $ - 590 (1,861) (12,759) 6,693 1,387 953 2,768 - (1) - - |
Foreign exchange movements $ - 590 (1,861) (12,759) 6,693 1,387 953 2,768 - (1) - - |
Closing balance $ - 20,401 148,206 41,499 88,716 66,361 231,509 369,512 - 2,277 - 152,601 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 741,252 | 543,507 | - | 211,294 | (26,965) | (345,776) | (2,230) | 1,121,082 | |||||||
| Opening balance $ 18,961 28,571 20,281 12,533 44,779 16,285 55,404 - 287 183,832 17,019 |
Additions $ - 2,936 137,770 28,620 47,278 - 219,829 69,686 7,318 291,614 8,741 |
Disposals $ - - - - - - - (1,427) (1,488) (3,044) (189) |
Depreciation $ (19,310) (7,327) (14,679) (8,635) (43,206) (5,835) (129,241) (47,081) (4,962) (170,165) - |
Foreign exchange movements $ 349 (743) (1,186) (250) 861 (278) (4,571) (1,183) 1,305 (7,309) (898) |
Closing balance $ - 23,437 142,186 32,268 49,712 10,172 141,421 19,995 2,460 294,928 24,673 |
|||||||||
| 397,952 | 813,792 | (6,148) | (450,441) | (13,903) | 741,252 |
17
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 9. Non-current assets - right-of-use assets
| Land and buildings - right-of-use Less: Accumulated depreciation |
Consolidated 2022 2021 $ $ 391,953 397,700 (318,260) (276,079) 73,693 121,621 |
|---|---|
| 73,693 |
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:
| Consolidated Balance at 1 January 2022 Exchange differences Depreciation expense Balance at 30 June 2022 |
Land and buildings $ 121,621 (2,840) (45,088) |
Total $ 121,621 (2,840) (45,088) 73,693 |
|---|---|---|
| 73,693 |
Right-of-use assets relate to rental properties used in South Africa.
Note 10. Non-current assets - intangibles
| Brand Names - at cost Less: Accumulated amortisation Client contracts - at cost Less: Accumulated amortisation Licenses to operate - at cost Less: Accumulated amortisation Domain, manuals and processes - at cost Less: Accumulated amortisation |
Consolidated 2022 2021 $ $ 31,038 30,235 (30,003) (29,228) 1,035 1,007 200,007 194,837 (200,007) (194,837) - - 124,151 120,942 (120,013) (116,910) 4,138 4,032 97,104 94,594 (96,823) (94,320) 281 274 5,454 5,313 |
|---|---|
| 1,035 | |
| 200,007 (200,007) |
|
| - | |
| 124,151 (120,013) |
|
| 4,138 | |
| 97,104 (96,823) |
|
| 281 | |
| 5,454 |
18
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 10. Non-current assets - intangibles (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:
| Consolidated Balance at 1 January 2022 Exchange differences Balance at 30 June 2022 Note 11. Non-current assets - deferred tax Deferred tax asset Note 12. Current liabilities - trade and other payables Trade payables Goods and services tax |
Brand names $ 1,007 28 |
Licenses to operate $ 4,032 106 |
Licenses to operate $ 4,032 106 |
Domain, manuals and processed $ 274 7 |
Domain, manuals and processed $ 274 7 |
Total $ 5,313 141 |
|---|---|---|---|---|---|---|
| 1,035 | 4,138 | 281 | 5,454 | |||
| Consolidated 2022 2021 $ $ 145,048 97,542 |
||||||
| Consolidated 2022 2021 $ $ 678,875 431,198 3,032 39,330 |
||||||
| 681,907 | 470,528 |
Note 11. Non-current assets - deferred tax
Note 12. Current liabilities - trade and other payables
Note 13. Current liabilities - contract liabilities
| Contract liabilities Reconciliation Reconciliation of the written down values at the beginning and end of the current and previous financial half-year are set out below: Opening balance Payments received in advance Transfer to revenue Closing balance |
Consolidated 2022 2021 $ $ 87,258 114,850 |
Consolidated 2022 2021 $ $ 87,258 114,850 |
|---|---|---|
| 114,850 210,668 (238,260) |
- 114,850 - |
|
| 87,258 | 114,850 |
19
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 14. Current liabilities - borrowings
| Bank loans Short-term loan |
Consolidated 2022 2021 $ $ 49,661 19,085 - 350,000 |
Consolidated 2022 2021 $ $ 49,661 19,085 - 350,000 |
|---|---|---|
| 49,661 | 369,085 |
The borrowing represents a short-term bridge financing by way of an unsecured line of credit ("loan") of $350,000 advanced by Delta Drone SA France with an interest rate of 2.5% per annum. The loan and the accrued interest was repaid during the period.
Note 15. Current liabilities - lease liabilities
| Lease liability | Consolidated 2022 2021 $ $ 58,311 97,638 |
|---|---|
Note 16. Current liabilities - liabilities directly associated with assets classified as held for sale
| Trade payables Deferred tax liability |
Consolidated 2022 2021 $ $ - 932,302 - 750,302 |
Consolidated 2022 2021 $ $ - 932,302 - 750,302 |
|---|---|---|
| - | 1,682,604 |
Note 17. Non-current liabilities - borrowings
| Borrowings | Consolidated 2022 2021 $ $ 159,235 105,253 |
|---|---|
Non-current borrowings relate to motor vehicle finance leases and long-term borrowing from a supplier.
Note 18. Non-current liabilities - lease liabilities
| Lease liability | Consolidated 2022 2021 $ $ 47,108 56,003 |
|---|---|
Note 19. Events after the reporting period
No matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
20
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 20. Share-based payments
During the period, the Group provided performance rights and share options to Christopher Clark as a part of his remuneration package and as a performance incentive – the Board considers that these are appropriate forms of incentive as they align remuneration with the long-term success of the Group, shareholder interests and current market practice.
Vesting of performance rights is conditional on the satisfaction of various milestones within a 4-year timeframe. The performance rights were issued at nil cost and will be converted into the equivalent number of shares when exercised. Vesting of the Share options occurs based on employment conditions between 1 July 2022 and 1 July 2024.
There were 8,000,000 performance rights granted over ordinary shares, and 2,000,000 share options issued to Christopher Clark, on 3 June 2022, as approved by Shareholders of the Company at the Annual General Meeting of the Company held on 31 May 2022.
During the period, the 6,000,000 performance rights held by Eden Attias and the 1,000,000 performance rights held by Stephen Gorenstein were forfeited due to their resignations
2022
| 2022 | |||||
|---|---|---|---|---|---|
| Grant date Expiry date 24/06/2021 24/06/2024 03/06/2021 03/06/2026 |
Balance at the start of the half-year 13,000,000 - |
Granted - 8,000,000 |
Exercised - - |
Expired/ forfeited/ other (7,000,000) - |
Balance at the end of the half-year 6,000,000 8,000,000 |
| 13,000,000 | 8,000,000 | - | (7,000,000) | 14,000,000 |
During the period to 30 June 2022, an expense of $3,269 (2021: $1,829) has been recognised as set out below:
Share based payments recognised to 31 December 2021
| Share based payments recognised to 31 December 2021 Recognition of pro-rata expense for Performance rights granted 24 June 2021 (i) Recognition of pro-rata expense for Performance rights granted 3 June 2022 (ii) Recognition options granted 4 June 2022, vested 1 July 2022 (iii) De-recognition of pro-rata expense to 31 Dec 2021 for 7,000,000 forfeited performance rights Share based payments recognised to 30 June 2022 |
53,793 |
| 24,044 3,591 4,600 (28,966) |
|
| 3,269 | |
| 57,062 |
Share based payments recognised to 30 June 2022
-
(i) The performance rights granted on 24 June 2021 are recognised pro-rata to 30 June 2022 at a fair value of 2.4 cents per performance right over 36 months.
-
(ii) The performance rights granted on 3 June 2022 are recognised pro-rata to 30 June 2021 at a fair value of 1.4 cents per performance right over periods to 31 December 2023, 31 December 2024 and 31 December 2025 for each milestone respectively.
-
(iii) The options granted on 3 June 2022 have an exercise price of 2.1 cents, expiry date of 30 May 2026 and the expense is recognised pro-rata at a fair value of 0.69 cents per option on each vesting date. One third of the options vested on 1 July 2022, and given that the employment condition has been satisfied, the expense was recognised at 30 June 2022. The remaining two thirds vest over the next eight quarters in equal tranches commencing on 1 October 2022 and ending on 1 July 2024.
The details of holdings of performance rights as at 30 June 2022 and the milestones are described in the tables below: Name No. of Performance Rights Milestones
Christopher Clark 2,000,000 DDG 2021 Milestones Christopher Clark 4,000,000 2021 Milestones Christopher Clark 8,000,000 2022 Milestones
21
Delta Drone International Limited Notes to the consolidated financial statements 30 June 2022
Note 20. Share-based payments (continued)
DDG 2021 New Milestones
Milestone Description DDG Milestone 1 DDSA achieving consolidated revenue (for the avoidance of doubt, only DDSA and excluding the Group) for any full financial year (being 1 Jan to 31 Dec) during the three-year term of the Performance Rights of not less than US$3,200,000 (based on audited accounts having been prepared by an external auditor or other suitable expert). DDG Milestone 2 If DDSA enters into at least two binding contracts with Australian-based mining companies (being companies that conduct mining, exploration or extraction services) for the provision of drone survey or mapping solutions services to those mining companies in Australia (“Services”) and DDSA receives not less than US$1,000,000 (based on audited accounts having been prepared by an external auditor or other suitable expert) of verified revenue in aggregate from such executed contracts received within the three-year term of the Performance Rights for its Services. DDG Milestone 3 If during the three-year term of the Performance Rights, the Company announces to the ASX that DDSA has expanded the services of its business offering (being the provision of drone survey and mapping solutions) into a new geographic location outside of Australia, Israel, South Africa, Ghana and Namibia and achieved a revenue in that new geographic location of not less than US$1,000,000 (based on audited accounts having been prepared by an external auditor or other suitable expert). Note: DDSA means Delta Drone South Africa and its current subsidiaries, Drone Safety and Legal, Rocketmine South Africa and Rocketmine Ghana.
2021 New Milestones Milestones Description New Milestone 1 The Group achieving consolidated revenue of not less than A$10,000,000 in a single financial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor or other suitable expert. New Milestone 2 The Group achieving total consolidated EBITDA of not less than A$1,000,000 in a single financial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor or other suitable expert. New Milestone 3 The Company achieving a total return on equity of not less than 10% in a single financial year (being 1 Jan to 31 Dec), where return on equity is equal to net profit as a percentage of total equity based on audited accounts having been prepared by an external auditor or other suitable expert. 2022 Milestones Milestone Description New Milestone 1 The Group achieving total consolidated EBIT of not less than A$nil (i.e. break-even) in a single financial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor or other suitable expert. New Milestone 2 The Group achieving total consolidated revenue of not less than A$15,000,000 in a single financial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor or other suitable expert. New Milestone 3 The Group achieving total consolidated EBIT of more than A$2,000,000 in a single financial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor or other suitable expert.
22
Delta Drone International Limited Directors' declaration 30 June 2022
In the Directors' opinion:
-
the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;
-
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2022 and of its performance for the financial half-year ended on that date; and
-
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001.
ristopher Clark Chief Executive Officer
29 August 2022
23
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF DELTA DRONE INTERNATIONAL LTD
Report on the Half-Year Financial Report
Conclusion
We have reviewed the accompanying half-year financial report of Delta Drone International Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.
Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 , including:
-
a) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2022 and of its consolidated financial performance for the half-year ended on that date; and
-
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Directors’ Responsibility for the half-year Financial Report
The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s consolidated financial position as at 30 June 2022 and its consolidated financial performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
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A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .
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HALL CHADWICK AUDIT (WA) PTY LTD NIKKI SHEN CA ABN 42 163 529 682 Director
Dated this 29[th] day August 2022 Perth, Western Australia