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SKIN ELEMENTS LIMITED — Annual Report 2024
Aug 29, 2024
65803_rns_2024-08-29_ba47c318-18a0-4b50-9939-b1e449b6706d.pdf
Annual Report
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Annual Report
Appendix 4E Preliminary Final Report SKIN ELEMENTS LIMITED A B N 9 0 6 0 8 0 4 7 7 9 4 2024 and its controlled entities ANNUAL REPORT 30 June 2024
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
ANNUAL REPORT 30 June 2024
ABN 90 608 047 794
Corporate directory
Current Directors Peter Malone Executive Chairman Filippo (Phil) Giglia Non-Executive Director Stuart Usher Non-Executive Director
Company Secretary
Stuart Usher
Registered Office
Registered Office Share Registry Street: 1242 Hay Street Link Market Services Limited West Perth WA 6005 Street: Level 12, QV1 Building, 250 St Georges Terrace Postal: 1242 Hay Street Perth WA 6000 WEST PERTH WA 6005 Telephone: 1300 554 474 (within Australia) Telephon e: +61 (0)8 6311 1900 +61 1300 554 474 (International) Facsimile: +61 (0)8 6311 1999 Facsimile: +61 (0)8 6370 4203 Email: [email protected] Email: [email protected] Website: www.skinelementslimited.com Website: www.linkmarketservices.com.au
Auditors
Securities Exchange
BDO Audit (WA) Pty Ltd Australian Securities Exchange Street: Mia Yellagonga Tower 2 Street: Level 40, Central Park, 152-158 St Georges Terrace 5 Spring Street Perth WA 6000 Perth WA 6000 Telephone: 131 ASX (131 279) (within Australia) Telephon e: +61 (0)8 6382 4600 Telephone: +61 (0)2 9338 0000 Facsimile: +61 (0)8 6382 4601 Facsimile: +61 (0)2 9227 0885 Website: www.bdo.com.au Website: www.asx.com.au ASX Code: SKN
PAGE | i
ANNUAL REPORT
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
30 June 2024
ABN 90 608 047 794
Contents
Company update ....................................................................................................................................................................... 1 Consolidated statement of profit or loss and other comprehensive income ............................................................................ 6 Consolidated statement of financial position ........................................................................................................................... 7 Consolidated statement of changes in equity ........................................................................................................................... 8 Consolidated statement of cash flows ...................................................................................................................................... 9 Notes to the preliminary final report ...................................................................................................................................... 10
PAGE | ii
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
Company update
1. Operating and financial review
1.1. Nature of Operations and Principal Activities
Skin Elements is a researcher and developer of the innovative proprietary SE Formula[TM] biotechnology. This plant-based and organic sourced SE Formula[TM] is used as a base in the Company’s proprietary flagship products including the SuprCuvr TGA-registered hospital-grade plant-based disinfectant, ECO-Nurture plant bio-stimulant, Invisi Shield alcohol free natural sanitiser, Soléo Organics natural and organic sunscreen, PapayaActivs natural therapeutics skincare and Elizabeth Jane Natural Cosmetics brand.
1.2. Operations Review
1.2.1. Development of SE Formula[TM]
The SE Formula[TM] has been developed by Skin Elements over the last 15 years and is the core of every natural product developed by Skin Elements. Products with the SE Formula[TM] have scientifically proven as high performance while using only natural and plant-based ingredients.
Skin Elements has a three-phase development process leading into commercial scale production and sales:
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Phase 1 Pure research and development to undertake investigations into natural organic ingredients and processes to prepare prototype formulations.
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Phase 2 Produce test batches and undertake product trials, test marketing and regulatory certifications.
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Phase 3 Negotiate distribution agreements and commence scale up production and launch into commercialisation.
1.2.2. Development of Eco Nurture Plant Bio-Stimulant
ECO-Nurture is a sustainable, horticultural-specific plant bio stimulant product developed from the plant-based SE Formula biotechnology research and development program as an effective alternative to chemical-based agricultural sprays currently used in crop disease protection globally.
Following extensive successful evaluation of ECO-Nurture in a live agricultural setting, including a full-season sprayprogram evaluation of ECO-Nurture on 10 kiwi fruit farms in New Zealand, ECO Nurture has demonstrated that it is effective against bacteria which has negatively impacted kiwifruit industry in addition to supporting high fruit quality, yield quantity, and cosmetic look of the fruit with zero residual toxicity.
During the quarter, over 2,500 litres of ECO Nurture concentrate have been delivered to kiwi fruit orchard managers in New Zealand with a further 1,500 litres delivered in July. For the third year of the farm evaluations commencing presently over 120 orchards out of the 200 kiwi fruit owners have all agreed to immediately move over to ECO Nurture spray application program instead of using chemicals – an immediate 60% take-up.
This evaluation was conducted under Zespri Crop Protection Standards Justified Approval (JA) protocols with ECO-Nurture now on the official list Zespri approved spray list. Headquartered in New Zealand, Zespri is the world’s largest marketer of kiwifruit with over $4.5 billion in sales annually.
With the initial success of its evaluation in the kiwifruit sector, the Company is assessing opportunities in other horticulture sectors, including testing on grapes and other fruit and vegetable crops.
1.2.3. SuprCuvr - Development Phase 2 Market Testing
SuprCuvr is a TGA registered hospital-grade disinfectant made from the Company’s proprietary 100% plant-based SE formula. It combines the world’s highest level of efficacy against viral and bacterial infection with a 100% plant-based organic input certified formula to present a significant market opportunity for a chemical-free disinfectant in large-scale settings such as food manufacturing, hospitality retailing businesses, public transport, educational facilities, hospitals and health services.
Skin Elements has continued to focus on test market assessment and qualification of SuprCuvr in transport and educational sectors. These represent large-scale, commercial opportunities for SuprCuvr to be utilised as a disinfectant, replacing widely used chemical-based products.
The Company is currently delivering early sales of SuprCuvr 3 in 1 formulae for disinfectant cleaning, across all government high schools and urban train carriages and stations in Melbourne, Australia.
1.2.4. Soleo Organics
Soléo Organics is an award-winning, natural and organic sunscreen formulation, providing a highly effective, highperformance chemical-free sunscreen. It was the first application borne out of Skin Elements’ SE Formula research and development program.
Negotiations continue to progress during the quarter with a leading health retail group in the United Kingdom for distribution of the Soléo Organics sunscreen formulation under white label.
PAGE | 1
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
ABN 90 608 047 794
Company update
As part of this process, independent laboratory testing designed to confirm key performance specifications for the UK market is in progress. This includes testing the Soléo Organics sunscreen formulation and final product development testing for both an SPF50 and 5-Star UVA rating which has previously been unheard of for a natural organic sunscreen formulation.
Skin Elements participated in an exclusive Rolls Royce Strive for Perfection: Celebrating 20 years of Goodwood event held in London, on 6 October 2023. Skin Elements was delighted to be a partner at the event and to promote its natural and organic Soléo Organics to a high net-worth audience with a focus on high-end, innovative and sustainable products.
1.2.5. PapayaActivs Phase 2 Completion
The fourth SE formulation, PapayaActivs combines a high concentration of natural pawpaw extract with other active natural ingredients to help relieve the symptoms of skin conditions, like psoriasis, rashes, eczema, assist in healing of minor burns and wounds, and relieve mild muscle, joint and arthritic pain. PapayaActivs is listed on the TGAs Australian Register of Therapeutic Goods.
Skin Elements has completed the Phase 2 product formulation improvements with products expected to go into Phase 3 test market launch in FY2025.
1.2.6. Research and development ( R&D ) tax incentive grant income
During the period, Skin Elements received R&D Rebate of $1.13 million in relation to the eligible research and development spend in the 2023 financial year.
The Company’s commitment to the continued research and development of its natural SE Formula Biotechnology sees it eligible for the Federal Government’s R&D tax incentive for the FY2024 with R&D Rebate calculation of $1.19 million as at 30 June 2024.
During the period, Skin Elements received an advance of $717K under a R&D Rebate advance facility provided by Radium Capital in relation to the FY2024 eligible R&D expenditure.
1.2.7. Placement raises $200,000
The Company announced on 23 October 2023 that it had undertaken a private placement to sophisticated investors raising $200,000 (before costs). The Company issued 20,000,000 SKN fully paid ordinary shares (under the Company’s ASX LR7.1A placement capacity) at $0.01 each with one attaching SKNOD option exercisable at $0.025 on or before 31 May 2026 (under the Company’s ASX LR7.1 capacity) for each new share issued.
1.3. Financial Review
1.3.1. Key profit and loss measures
| Movement (increased/ decreased) Movement $ |
|
|---|---|
| 2024 2023 |
|
| $ $ | |
| Revenues from ordinary activities increased 222,071 Loss from ordinary activities after tax decreased 9,542,364 EBITDA Loss decreased (564,622) 1.3.2. Key net asset measures |
416,202 194,131 (1,873,804) (11,416,168) (1,531,404) (2,096,026) |
| Movement (increased/ decreased) Movement $ |
|
| 2024 2023 |
|
| $ $ | |
| Cash and cash equivalents decreased 216,104 Working capital deficit_(excluding prepayments) _decreased 1,403,956 Net tangible liabilities decreased 1,438,578 Net liabilities decreased 1,438,578 Adjusted net asset measures1 (excluding KMP payables) Working capital_(excluding KMP payables) _decreased 653,126 Net tangible assets_(excluding KMP payables) _decreased 687,748 Net assets_(excluding KMP payables) _decreased 687,748 |
142,328 358,432 (870,820) 533,136 (833,775) 604,803 (833,775) 604,803 308,935 962,061 345,980 1,033,728 345,980 1,033,728 |
1 As disclosed in note 3.4.1a, the Board intends, subject to shareholder approval, to issue equity securities to Directors and key management for unpaid executive services and Directors’ services under current service agreements. Any unpaid amounts that remain will be paid on terms as agreed.
PAGE | 2
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
Company update
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
1.4. Future Developments, Prospects, and Business Strategies
Likely developments in the operations, business strategies and prospects of the Group include:
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- The Company will undertake future capital raising through either equity placement facility, private placement or entitlement issue, and the consideration of other equity and debt proposals
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- The Company will continue to focus on development and commercialisation of its natural anti-microbial technology as set out in its review of operations.
Other likely developments, future prospects and business strategies of the operations of the Group and the expected results of those operations have not been included in this report particularly given the early stage of the Company’s commercial operations with its new expanded range of natural and organic products. The Directors believe that the inclusion of such information would be likely to be unreasonably prejudicial to the Group.
1.5. Environmental Regulations
The Group's operations are not subject to significant environmental regulations in the jurisdictions it operates in, namely Australia.
The Directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the Directors have determined that the NGER Act has no effect on the Company for the current, nor subsequent, financial year. The Directors will reassess this position as and when the need arises.
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PETER MALONE
Executive Chairman
Dated this Friday, 30 August 2024
PAGE | 3
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
ABN 90 608 047 794
Results for announcement to the Market
for the year ended 30 June 2024
| 1. Reporting period(item 1) |
30 June 2024 30 June 2023 |
30 June 2024 30 June 2023 |
|---|---|---|
| Report for the financial year ended: Previous corresponding period is the year months ended: |
||
| 2. Results for announcement to the market |
Movement | Percentage Amount |
| % $ |
||
| Increase in revenues from ordinary activities (item 2.1) Increase in loss from ordinary activities after tax attributable to members (item 2.2) Increase in loss after tax attributable to members (item 2.3) |
||
| | 114.39 to 416,202 |
|
| (83.59) to (1,873,804) |
||
| (83.59) to (1,873,804) |
||
| 2.1. Dividends(item 2.4) |
Amount per Franked amount |
|
| Security per security |
||
| ₵ % |
||
| Interim dividend | nil n/a |
|
| Final dividend | nil n/a |
|
| Record date for determining entitlements to the dividend (item 2.5) n/a 2.2. Brief explanation of any of the figures reported above necessary to enable the figures to be understood (item 2.6): Refer to Company update on page1of this report. |
||
| 3. Preliminary Final Report 3.1. Statement of comprehensive income (item 3): Refer to Consolidated statement of profit or loss and other comprehensive income on page 6 3.2. Statement of financial position (item 4): Refer to Consolidated statement of financial position on page 7 3.3. Statement of cash flows (item 5): Refer to Consolidated statement of cash flows on page 9 3.4. Statement of changes in equity (item 6): Refer to Consolidated statement of changes in equity on page 8 |
||
| 4. Dividends(item 7)and Returns to shareholders including distributions and buy backs(item 14.2) |
||
| Nil. 4.1. Details of dividend or distribution reinvestment plans in operation are described below(item 8): Not applicable |
||
| 5. Ratios |
Previous | |
| Current corresponding |
||
| Period Period |
||
| $ $ | ||
| 5.1. Financial Information relating to 5.2 and 5.3: Earnings for the period attributable to owners of the parent Net assets _Less:_Intangible assets (including net deferred tax balances) Net tangible assets |
(1,873,804) (11,416,168) |
|
| (833,775) 604,803 - - |
||
| (833,775) 604,803 |
PAGE | 4
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
Results for announcement to the Market
for the year ended 30 June 2024
| 5 Ratios(cont.) |
Previous |
|---|---|
| Current corresponding |
|
| Period Period |
|
| No. No. |
|
| Fully paid ordinary shares Weighted average number of ordinary shares outstanding during the period used in calculation of basic EPS |
563,986,095 543,986,095 570,543,472 437,027,832 |
| ₵ ₵ 5.2. Net tangible assets backing per share (item 9): (0.148) 0.111 5.3. Earnings per share attributable to owners of the parent (item 14.1): (0.328) (2.612) As at 30 June 2024 the Group has 191,351,198 unissued shares under options (2023: 197,351,198) and 209,000,000 performance shares on issue (2023: 209,000,000). The Group does not report diluted earnings per share on losses generated by the Group. During the year, the Group's unissued shares under option and performance shares were anti-dilutive. |
₵ ₵ |
| 6. Details of entities over which control has been gained or lost during the period(item 10): |
|
| 6.1. Control gained over entities Name of entities (item 10.1) Nil Date(s) of gain of control (item 10.2) 6.2. Loss of control of entities Name of entities (item 10.1) Nil Date(s) of loss of control (item 10.2) N/A 6.3. Contribution to consolidated profit (loss) from ordinary activities after tax by the controlled entities to the date(s) in the current period when control was gained / lost (item 10.3). Nil 6.4. Profit (loss) from ordinary activities after tax of the controlled entities for the whole of the previous corresponding period (item 10.3) Nil |
|
| 7. Details of associates and joint venture(item 11): |
|
| Name of entities (item 11.1) Nil Percentage holding in each of these entities (item 11.2) n/a |
|
| Previous | |
| Current corresponding |
|
| Period Period |
|
| $ $ | |
| Aggregate share of profits (losses) of these entities (item 11.3) | N/A N/A |
| 8. Any other significant information needed by an investor to make an informed assessment of the entity’s financial |
|
| performance and financial position (item 12): | |
| Refer to Companyupdate onpage 1 of this report. | |
| 9. The financial information provided in the Appendix 4E is based on the preliminary final report (attached), which has |
|
| been prepared in accordance with Australian Accounting Standards (item 13). | |
| 10. Commentary on the results for the period(item 14): |
|
| Refer to Companyupdate onpage1 | |
| 11. The preliminary final report has been prepared based on the 30 June 2024 accounts which are in the process of being audited |
|
| by an independent Audit Firm in accordance with the requirements of s.302 of the_Corporations Act 2001_(Cth). (item 15) |
PAGE | 5
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2024
| for the year ended 30 June 2024 | |
|---|---|
| Note | 2024 2023 |
| $ $ | |
| Continuing operations Revenue 1.1 Cost of sales Gross profit Other income 1.2 Administrative and other costs Research and development costs Selling and distribution costs Operating loss Interest and finance costs Impairment expense 3.2.2 Put option agreement fees expensed Loss before tax 2.1 Income tax benefit Net loss for the year Other comprehensive income, net of income tax Other comprehensive income for the period, net of tax Total comprehensive income attributable to members of the parent entity Earnings per share: Basic and diluted loss per share (cents per share) 6.4 |
416,202 194,131 (54,328) (99,014) |
| 361,874 95,117 1,197,149 1,183,463 (1,333,812) (1,946,879) (1,688,692) (1,690,254) (74,017) (143,647) |
|
| (1,537,498) (2,502,200) (81,851) (58,252) (254,455) (8,017,774) - (837,942) |
|
| (1,873,804) (11,416,168) - - |
|
| (1,873,804) (11,416,168) |
|
| - - |
|
| - - |
|
| (1,873,804) (11,416,168) |
|
| ₵ ₵ (0.33) (2.61) (1,531,404) (2,096,026) |
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
PAGE | 6
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Consolidated statement of financial position
as at 30 June 2024
| Consolidated statement of financial position as at 30 June 2024 |
|
|---|---|
| Note | 2024 2023 |
| $ $ | |
| Current assets Cash and cash equivalents 3.1 Trade and other receivables 3.2 Inventories 4.1 Other current assets 3.3.1 Total current assets Non-current assets Right of use asset - property, plant, and equipment Financial assets 3.6.1 Intangible assets 4.2 Total non-current assets Total assets Current liabilities Trade and other payables 3.4.1 Borrowings 3.5.1 Total current liabilities Total liabilities Net assets Equity Issued capital 5.1.1 Reserves 5.4 Accumulated losses Total equity |
142,328 358,432 542,104 1,172,336 31,908 83,845 28,680 57,207 |
| 745,020 1,671,820 |
|
| 8,365 14,460 - - - - |
|
| 8,365 14,460 |
|
| 753,385 1,686,280 |
|
| 1,572,213 1,063,725 14,947 17,752 |
|
| 1,587,160 1,081,477 |
|
| 1,587,160 1,081,477 |
|
| (833,775) 604,803 |
|
| - - 24,444,454 24,244,454 1,059,924 824,698 (26,338,153) (24,464,349) |
|
| (833,775) 604,803 |
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
PAGE | 7
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
ABN 90 608 047 794
30 June 2024
Consolidated statement of changes in equity for the year ended 30 June 2024
| for the year ended 30 June 2024 | |
|---|---|
| Note Balance at 1 July 2022 Loss for the year attributable to the owners of the parent Other comprehensive income for the year attributable to the owners of the parent Total comprehensive income for the year attributable to the owners of the parent Transaction with owners, directly in equity |
Share-based |
| Contributed Accumulated payment Total |
|
| equity losses reserve equity |
|
| $ $ $ $ | |
| 22,871,096 (13,048,181) 229,094 10,052,009 - (11,416,168) - (11,416,168) - - - - |
|
| - (11,416,168) - (11,416,168) |
|
| Shares issued during the year_(net of costs)_ 5.1.1 |
1,268,355 - - 1,268,355 |
| Share-based payments during the year 5.1.1 |
105,003 - - 105,003 |
| Share-based payments during the year:options 5.2.1 |
- - 335,827 335,827 |
| Share-based payments during the year:rights 5.3.1 |
- - 259,777 259,777 |
| Balance at 30 June 2023 Balance at 1 July 2023 Loss for the year attributable to the owners of the parent Other comprehensive loss for the year attributable to the owners of the parent Total comprehensive loss for the year attributable to the owners of the parent Transaction with owners, directly in equity Shares issued during the year_(net of costs) 5.1.1 Share-based payments during the year:_rights 5.3.1 Balance at 30 June 2024 |
24,244,454 (24,464,349) 824,698 604,803 |
| 24,244,454 (24,464,349) 824,698 604,803 |
|
| - (1,873,804) - (1,873,804) |
|
| - - - - |
|
| - (1,873,804) - (1,873,804) |
|
200,000 - - 200,000 |
|
- - 235,226 235,226 |
|
| 24,444,454 (26,338,153) 1,059,924 (833,775) |
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
PAGE | 8
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Consolidated statement of cash flows
for the year ended 30 June 2024
| Consolidated statement of cash flows for the year ended 30 June2024 |
|
|---|---|
| Note | 2024 2023 |
| $ $ | |
| Cash flows from operating activities Receipts from customers Payments to suppliers and employees Receipt of_Research and development tax incentive_grant income Interest paid and facility fees Interest paid Net cash used in operating activities Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares 5.1.1 Share issue costs Proceeds of borrowings Repayments of borrowings Net cash provided by financing activities Net increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year - - 3.1 |
403,821 193,326 3,520 (2,955,997) (1,707,544) 984,992 1,129,934 (58,252) (81,851) - |
| (252,120) (1,835,931) |
|
| - - |
|
| 200,000 1,772,102 (39,708) (129,837) 983,413 638,251 (1,107,689) (834,203) |
|
| 36,016 1,446,313 |
|
| (216,104) (389,618) 358,432 748,050 |
|
| 142,328 358,432 |
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
PAGE | 9
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 1 Revenue and other income |
2024 2023 |
|---|---|
| $ $ | |
| 1.1 Revenue Sales to customers 1.2 Other Income Research and development tax incentive grant income Fair value adjustment of fee options Other income |
416,202 194,131 |
| 416,202 194,131 |
|
| 1,193,629 1,129,934 - 53,000 3,520 529 |
|
| 1,197,149 1,183,463 |
|
| Note 2 Expenses Note |
2024 2023 |
| $ $ | |
| 2.1 Expenses by nature Administration expenses 2.2 Advertising and marketing expenses Amortisation 4.2 Corporate expenses 2.3 Employee benefits expense 2.4 Impairment expense 3.2.2 Occupancy costs Manufacturing, purchasing, and distribution costs Put Option Agreement fees expensed Research and development expenses Total expenses by nature 2.1.1 Reconciliation to net profit or loss before tax Total revenue and other income _Less:_Total expenses by nature Net loss before tax 2.2 Administration expenses Accounting expenses External consulting fees Travel expenses Interest expenses and finance facility costs Other expenses 2.3 Corporate expenses ASX fees Audit expenses Legal expenses Share Registry and shareholder communications |
414,222 462,142 74,017 143,647 6,094 406,174 181,354 230,753 698,999 798,625 254,455 8,017,774 114,994 107,437 54,328 99,014 - 837,942 1,688,692 1,690,254 |
| 3,487,155 12,793,762 |
|
| 1,613,351 1,377,594 (3,487,155) (12,793,762) |
|
| (1,873,804) (11,416,168) |
|
| - - 121,143 157,709 30,000 81,892 234 13,898 81,851 58,252 180,994 150,391 |
|
| 414,222 462,142 |
|
| 37,705 51,545 88,362 71,376 32,040 61,444 23,247 46,388 |
|
| 181,354 230,753 |
PAGE | 10
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 2 Expenses (cont.) |
2024 2023 |
|---|---|
| $ $ | |
| 2.4 Employee benefits expense Directors’ fees Executive services contracts Wages and salaries – non-R&D Share-based performance rights:amortisation |
160,000 106,510 239,782 241,749 63,991 190,589 235,226 259,777 |
| 698,999 798,625 |
|
| Note 3 Financial assets and financial liabilities |
|
| 3.1 Cash and cash equivalents |
2024 2023 |
| $ $ | |
| Cash at bank | 142,328 358,432 |
| 142,328 358,432 |
|
| 3.2 Trade and other receivables Note |
2024 2023 |
| $ $ | |
| 3.2.1 Current Trade receivables 3.2.2 _Less:_Loss allowance 3.2.2 _Research and development tax incentive_rebate receivable 3.2.3 _Less:_R&D Rebate Advance Facility Terms Net Research and Development rebate receivable Other receivables |
31,662 1,074,847 - (527,784) 1,193,629 1,129,934 (716,780) (538,251) |
| 476,849 591,683 33,593 33,590 |
|
| 542,104 1,172,336 |
-
3.2.2 In the previous year the Company had received an order from Pacific Health for SuprCuvr totalling $1,055,568 which was produced and delivered into secured warehouse. Subsequently, due to the rapidly evolving market at that time and the launch of the newly developed SuprCuvr disinfectant range, the Company has revised the terms of the order with Pacific Health, including extended payment terms. Due to the uncertainty of the timing of payments under these new terms, as at 31 December 2023, the Company has agreed to the settlement of the debtor’s balance through the repurchase of the SuprCuvr inventory. The Company will continue to work with Pacific Health for the launch of SuprCuvr disinfectant into scale markets and will recognise sales revenue as product is delivered.
-
3.2.3 The Group continued its development program during the year ended 30 June 2024 resulting in a claim for research and development tax incentive which has been included as a receivable at year end.
-
3.2.4 During the year, the Group received advance funding (wholly or predominantly for working capital or research and development expenditures) on its expected annual R&D rebate from Radium Capital. Refer key terms below:
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- Amounts For 30 June 2024: 09/23: $229,000; 12/23: $238,000; 3/24: $112,200; 5/24: $137,580. Final Maturity Date 30 November 2024. Repayment Skin Elements has the option to repay earlier without penalties. Interest Rate 14% - 15% per annum, with default rate of 18% if repayment is later than 30 November 2024. Security Secured against the R&D refund receivable from the ATO
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PAGE | 11
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 3 Financial assets and financial liabilities(cont.) |
|
|---|---|
| 3.3 Other assets Note |
2024 2023 |
| $ $ | |
| 3.3.1 Current Prepayments – Raw materials |
28,680 57,207 |
| 28,680 57,207 |
|
| 3.4 Trade and other payables |
2024 2023 |
| $ $ | |
| 3.4.1 Current Unsecured – Third-party Trade payables 307,988 233,664 Sundry payables and accrued expenses 111,178 102,218 Net Goods and Services Tax (receivable) / payable (26,708) (1,082) Commitment Fee payable - 300,000 Sub-total 392,458 634,800 Other current payables Unsecured – Related party Key management personnel related 3.4.1a 1,179,755 428,925 1,572,213 1,063,725 a. The Board intends, subject to shareholder approval, to issue equity securities to Directors and key management for unpaid executive services and Directors’ services under current service agreements. Any unpaid amounts that remain will be paid on terms as agreed. |
307,988 233,664 111,178 102,218 (26,708) (1,082) - 300,000 |
| 392,458 634,800 1,179,755 428,925 |
|
| 1,572,213 1,063,725 |
|
| 3.5 Borrowings |
2024 2023 |
| $ $ | |
| 3.5.1 Current Leases – motor vehicle |
14,947 17,752 |
| 14,947 17,752 |
|
| Note 4 Non-financial assets and financial liabilities |
|
| 4.1 Inventories |
2024 2023 |
| $ $ | |
| Finished goods | 31,908 83,845 |
| 31,908 83,845 |
|
| 4.2 Intangible assets |
2024 2023 |
| $ $ | |
| SE FormulaTM Accumulated amortisation and impairment Website development costs Accumulated amortisation and impairment Total intangibles |
9,859,296 9,859,296 (9,859,296) (9,859,296) |
| - - |
|
| 55,410 55,410 (55,410) (55,410) |
|
| - - |
|
| - - |
a. The Board intends, subject to shareholder approval, to issue equity securities to Directors and key management for unpaid executive services and Directors’ services under current service agreements. Any unpaid amounts that remain will be paid on terms as agreed.
PAGE | 12
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 5 Equity |
|||
|---|---|---|---|
| 5.1 Issued capital |
2024 2023 |
2024 | 2023 |
| No. No. |
$ | $ | |
| Fully paid ordinary shares 5.1.1 Ordinary shares At the beginning of the year Shares issued during the year: 26.10.22_Consultancy_ fees 26.10.22_LDA fees_ 04.11.22_Placement_ 31.05.23_Entitlement_ issue 20.06.23_Shortfall_ placement 30.06.23_Underwriting_ fee Unplaced applications 01.11.23_Placement_ Share issue transaction costs At end of the year |
563,986,095 543,986,095 |
24,444,454 | 24,244,454 |
| 2024 No. 2023 No. |
2024 | 2023 $ |
|
| $ | |||
| 543,986,095 407,727,266 - 1,216,075 - 1,691,556 - 30,000,000 - 93,226,979 - 3,971,238 - 6,152,981 - - 20,000,000 - - - |
24,244,454 | 22,871,096 71,376 43,473 750,000 932,270 39,712 61,530 26,120 - (551,123) |
|
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| 200,000 | |||
| - | |||
| 563,986,095 543,986,095 |
24,444,454 | 24,244,454 |
- a. Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
| 5.1.2 Treasury shares |
2024 2023 |
|---|---|
| No. No. |
|
| At beginning of the year At end of the year |
25,500,000 25,500,000 |
| 25,500,000 25,500,000 |
- a. Treasury shares are ordinary shares issued as collateral shares for nil consideration.
PAGE | 13
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT 30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 5 Equity(cont.) |
||
|---|---|---|
| 5.2 Options |
2024 2023 |
2024 2023 |
| No. No. |
$ $ | |
| Options on issue 5.2.1 Options movement during the year: At the beginning of the year 04.11.22_Issued_f_ree attaching_ to Placement shares 17.02.23_Lead manager fee_ 31.05.23_Issued free attaching_ to Entitlement shares 20.06.23_Issued free attaching_ to Shortfall shares 30.06.23_Issued free attaching_ to underwriter fee shares 30.06.23_Lead_ manager fee 01.11.23_Issued_f_ree attaching_ to Placement shares 15.03.24_Expiration of LDA_ options At end of the year |
191,351,198 197,351,198 |
335,827 335,827 |
| 2024 No. 2023 No. |
2024 $ 2023 $ |
|
| 197,351,198 26,000,000 - 30,000,000 - 28,000,000 - 93,226,979 - 3,971,238 - 6,152,981 - 10,000,000 20,000,000 - (26,000,000) - |
335,827 - - - - 277,827 - - - - - - - 58,000 - - - - |
|
| 191,351,198 197,351,198 |
335,827 335,827 |
|
| 5.3 Performance rights |
2024 2023 |
2024 2023 |
| No. No. |
$ $ | |
| Performance rights 5.3.1 Performance rights movement during the year: At the beginning of the year Amortisation of rights Derecognition of rights not achieved At end of the year |
209,000,000 209,000,000 |
724,097 488,871 |
| 2024 No. 2023 No. |
2024 $ 2023 $ |
|
| 209,000,000 209,000,000 |
488,871 229,094 235,226 437,794 - (178,017) |
|
| - - |
||
| - - |
||
| 209,000,000 209,000,000 |
724,097 488,871 |
|
| 5.4 Reserves |
2024 2023 |
|
| $ $ | ||
| Share-based payment reserve | 1,059,924 824,698 |
|
| 1,059,924 824,698 |
PAGE | 14
SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES
APPENDIX 4E PRELIMINARY FINAL REPORT
30 June 2024
ABN 90 608 047 794
Notes to the preliminary final report
for the year ended 30 June 2024
| Note 6 Earnings per share (EPS) |
2024 2023 |
|---|---|
| $ $ | |
| 6.1 Reconciliation of loss to profit or loss Loss for the year Loss used in the calculation of basic and diluted EPS |
(1,873,804) (11,416,168) |
| (1,873,804) (11,416,168) |
|
| 2024 2023 |
|
| No. No. |
|
| 6.2 Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS Weighted average number of dilutive equity instruments outstanding 6.3 Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS |
570,543,472 437,027,832 N/A N/A |
| 570,543,472 437,027,832 |
|
| 6.4 Earnings per share |
2024 2023 |
| ₵ ₵ |
|
| Basic EPS (cents per share) Diluted EPS (cents per share) |
(0.33) (2.61) N/A N/A |
| Note 7 Share-based payments |
2024 2023 |
| $ $ | |
| 7.1 Share-based payments: Net recognised/derecognised in profit and loss (expenses/contra- expense) Recognised in equity (transaction costs): Shares Options Recognised in net assets (payables) Gross share-based payments |
235,226 259,777 - 105,003 - 335,827 - 71,376 |
| 235,226 771,983 |
PAGE | 15
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