Title of each class | Trading Symbol | Name of each exchange on which registered |
American Depositary Shares (each representing 4 ‘A’ Ordinary Shares, par value US$0.0109) | TRIB | NASDAQ Global Market |
U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ | Other ☐ |
Page | ||
1 | ||
1 | ||
1 | ||
PART I | ||
2 | ||
2 | ||
2 | ||
A. | [Reserved] | 2 |
B. | Capitalization and Indebtedness | 2 |
C. | Reasons for the Offer and Use of Proceeds | 2 |
D. | Risk Factors | 3 |
A. | History and Development of the Company | 29 |
B. | Business Overview | 29 |
C. | Organizational Structure | 45 |
D. | Property, Plants and Equipment | 45 |
47 | ||
47 | ||
A. | Operating Results | 47 |
B. | Liquidity and Capital Resources | 57 |
C. | Research and Development, Patents and Licenses,etc. | 59 |
D. | Trend Information | 60 |
E. | Critical Accounting Estimates | 60 |
65 | ||
A. | Directors and Senior Management | 65 |
B. | Compensation | 67 |
C. | Board Practices | 67 |
D. | Employees | 69 |
E. | Share Ownership | 69 |
73 | ||
A. | Major Shareholders | 73 |
B. | Related Party Transactions | 74 |
C. | Interests of Experts and Counsel | 75 |
A. | Consolidated Statements and Other Financial Information | 75 |
B. | Significant Changes | 75 |
75 | ||
A. | Offer and Listing Details | 75 |
B. | Plan of Distribution | 75 |
C. | Markets | 76 |
D. | Selling Shareholders | 76 |
E. | Dilution | 76 |
F. | Expense of the Issue | 76 |
A. | Share Capital | 76 |
B. | Memorandum and Articles of Association | 76 |
C. | Material Contracts | 77 |
D. | Exchange Controls | 78 |
E. | Taxation | 78 |
F. | Dividends and Paying Agents | 84 |
G. | Statement by Experts | 84 |
H. | Documents on Display | 84 |
I. | Subsidiary Information | 84 |
85 | ||
PART II | ||
87 | ||
87 | ||
87 | ||
88 | ||
88 | ||
88 | ||
88 | ||
89 | ||
89 | ||
89 | ||
89 | ||
89 | ||
89 | ||
PART III | ||
90 | ||
90 | ||
171 |
Item | Offer Statistics and Expected Timetable |
Item | Key Information |
A. | Selected Financial Data |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
Year ended December 31, | ||||||||||||||||||||
2019 US$ ‘000 | 2018 US$‘000 | 2017 US$‘000 | 2016 US$‘000 | 2015 US$‘000 | ||||||||||||||||
Revenues | 90,435 | 97,035 | 99,140 | 99,611 | 100,195 | |||||||||||||||
Cost of sales | (52,315 | ) | (55,586 | ) | (57,250 | ) | (56,127 | ) | (53,683 | ) | ||||||||||
Gross profit | 38,120 | 41,449 | 41,890 | 43,484 | 46,512 | |||||||||||||||
Other operating income | 91 | 102 | 100 | 239 | 288 | |||||||||||||||
Research and development expenses | (5,325 | ) | (5,369 | ) | (5,657 | ) | (5,040 | ) | (5,069 | ) | ||||||||||
Selling, general and administrative expenses | (27,661 | ) | (29,477 | ) | (32,246 | ) | (30,366 | ) | (28,225 | ) | ||||||||||
Selling, general and administrative expenses - impairment charges and inventory write-off/provision | (24,295 | ) | (26,932 | ) | (41,755 | ) | (48,165 | ) | — | |||||||||||
Selling, general and administrative expenses – tax audit settlement | (5,042 | ) | — | — | — | — | ||||||||||||||
Operating (loss)/profit | (24,112 | ) | (20,227 | ) | (37,668 | ) | (39,848 | ) | 13,506 | |||||||||||
Financial income | 697 | 2,144 | 3,198 | 3,147 | 13,491 | |||||||||||||||
Financial expenses | (6,582 | ) | (5,080 | ) | (5,405 | ) | (5,439 | ) | (4,054 | ) | ||||||||||
Net financing (expense)/income | (5,885 | ) | (2,956 | ) | (2,207 | ) | (2,292 | ) | 9,437 | |||||||||||
(Loss)/Profit before tax | (29,997 | ) | (23,183 | ) | (39,875 | ) | (42,140 | ) | 22,943 | |||||||||||
Income tax credit/(expense) | 1,006 | 525 | 1,214 | 3,557 | (756 | ) | ||||||||||||||
(Loss)/Profit for the year | (28,991 | ) | (22,658 | ) | (38,661 | ) | (38,583 | ) | 22,187 | |||||||||||
(Loss)/Profit for the year on discontinued operations | 77 | 568 | (1,609 | ) | (62,042 | ) | (391 | ) | ||||||||||||
(Loss)/Profit for the year (all attributable to owners of the parent) | (28,914 | ) | (22,090 | ) | (40,270 | ) | (100,625 | ) | 21,796 | |||||||||||
Basic (loss)/earnings per ADS (US Dollars) | (1.38 | ) | (1.06 | ) | (1.86 | ) | (4.38 | ) | 0.94 | |||||||||||
Diluted (loss)/earnings per ADS (US Dollars) | (1.38 | ) | (1.06 | ) | (1.86 | ) | (4.38 | ) | 0.46 | |||||||||||
Basic (loss)/earnings per ‘A’ ordinary share (US Dollars) | (0.35 | ) | (0.27 | ) | (0.47 | ) | (1.10 | ) | 0.24 | |||||||||||
Diluted (loss)/earnings per ‘A’ ordinary share (US Dollars) | (0.35 | ) | (0.27 | ) | (0.47 | ) | (1.10 | ) | 0.12 | |||||||||||
Weighted average number of shares used in computing basic EPS per ADS | 20,901,703 | 20,903,227 | 21,621,602 | 22,964,703 | 23,161,773 | |||||||||||||||
Weighted average number of shares used in computing diluted EPS per ADS | 25,467,516 | 25,877,205 | 26,877,544 | 28,299,399 | 27,407,793 | |||||||||||||||
Weighted average number of shares used in computing basic EPS per ‘A’ ordinary share | 83,606,810 | 83,612,908 | 86,486,409 | 91,858,813 | 92,647,091 | |||||||||||||||
Weighted average number of shares used in computing diluted EPS per ‘A’ ordinary share | 101,870,064 | 103,508,820 | 107,510,179 | 113,197,598 | 109,631,172 |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | December 31, 2017 US$’000 | December 31, 2016 US$’000 | December 31, 2015 US$’000 | ||||||||||||||||
Net current assets (current assets less current liabilities) | 51,941 | 69,057 | 91,362 | 108,208 | 143,085 | |||||||||||||||
Non-current liabilities | (106,909 | ) | (90,001 | ) | (106,549 | ) | (115,585 | ) | (129,646 | ) | ||||||||||
Total assets | 131,071 | 151,659 | 192,974 | 249,592 | 363,683 | |||||||||||||||
Capital stock | 1,213 | 1,213 | 1,213 | 1,213 | 1,209 | |||||||||||||||
Shareholders’ equity | 4,713 | 44,054 | 65,196 | 108,727 | 213,892 |
• | Competition and trading conditions - our ability to sell products could be adversely affected by competition from new and existing diagnostic products, changing conditions in the diagnostic market, including, inter alia, reductions in government funding and sector consolidation. |
• | New product development - our long-term success depends upon the successful development and commercialization of new products. |
• | Capital structure - we may require future additional capital. |
• | Borrowings - we have incurred substantial debt, which could impair our flexibility and access to capital and adversely affect our financial position. To the extent we are unable to repay our debt as it becomes due with cash on hand or from other sources, we will need to refinance our debt, sell assets or repay the debt with the proceeds from equity offerings in order to continue in business. Our ability to obtain additional funding may determine our ability to continue as a going concern. Failure to comply with the terms of the credit agreement for our term loan could result in a default under its terms and, if uncured, could result in action against our pledged assets. |
• | Product recalls and claims - our products may in the future be subject to product recalls that could harm our reputation, business and financial results. If our products cause or contribute to a death or a serious injury, or malfunction in certain ways, we will be subject to medical device reporting regulations, which can result in voluntary corrective actions or regulatory agency enforcement actions. We may be subject to liability resulting from our products or services. |
• | Corporate strategy - failure to achieve our financial and strategic objectives could have a material adverse impact on our business prospects. |
• | Global economic conditions – changes in global economic conditions may have a material adverse impact on our results. |
• | Pandemic impact - the Covid-19 outbreak could significantly disrupt our operations and adversely affect our results of operations. |
• | People - we are highly dependent on our senior management team and other key employees, and the loss of one or more of these employees or the inability to attract and retain qualified personnel as necessary could adversely affect our operations. |
• | Supply chains - significant interruptions in production at our principal manufacturing facilities and/or third-party manufacturing facilities would adversely affect our business and operating results. We are dependent on third-party suppliers for certain critical components and the primary raw materials required for our test kits. Our inability to manufacture products in accordance with applicable specifications, performance standards or quality requirements could adversely affect our business. |
• | Distributor network - our revenues are highly dependent on a network of distributors worldwide. Our success depends on our ability to service and support our products directly or in collaboration with our strategic partners. |
• | Cyber security - our ability to protect our information systems and electronic transmissions of sensitive data from data corruption, cyber-based attacks, security breaches or privacy violations is critical to the success of our business. |
• | Foreign exchange - our sales and operations are subject to the risks of fluctuations in currency exchange rates. |
• | Financial impairment - the large amount of intangible assets and goodwill recorded on our balance sheet may lead to significant impairment charges in the future. |
• | Taxation - tax matters, including disagreements with taxing authorities, the changes in corporate tax rates and imposition of new taxes could impact our results of operations and financial condition. |
• | Acquisitions - future acquisitions may be less successful than expected, not generate the expected benefits, disrupt our ongoing business, distract our management, increase our expenses and adversely affect our business, and therefore, growth may be limited. |
• | Brexit - the United Kingdom’s withdrawal from the European Union could potentially impact our supply chains and the market for our products in the United Kingdom. |
• | Environmental, Social and Governance - increasing scrutiny and changing expectations from investors, lenders, customers and other market participants with respect to our Environmental, Social and Governance, or ESG, policies may impose additional costs on us or expose us to additional risks. |
• | Clinical trials - clinical trials necessary to support future premarket submissions will be expensive and will require enrolment of suitable patients who may be difficult to identify and recruit. Delays or failures in our clinical trials will prevent us from commercializing any modified or new products and will adversely affect our business, operating results and prospects. If the third parties on whom we rely to conduct our pre-clinical studies and clinical trials and to assist in pre-clinical development do not perform as contractually required or expected, we may not be able to obtain regulatory approval or commercialize our products. The results of our clinical trials may not support our product candidate claims. |
• | Regulatory compliance - we may be subject to fines, penalties or injunctions if we are determined to be promoting the use of our products for unapproved or “off-label” uses. If the FDA were to modify its policy of enforcement discretion with respect to our laboratory developed tests, we could incur substantial costs and delays associated with trying to obtain premarket clearance or other approvals. |
• | Product approvals - if we fail to maintain regulatory approvals and clearances our ability to commercially distribute and market these products could suffer. Failure to comply with FDA or other regulatory requirements may require us to suspend production of our products or institute a recall which could result in higher costs and a loss of revenues. Modifications to our products may require new 510(k) clearances or pre-market approvals, or may require us to cease marketing or recall the modified products until clearances or approvals are obtained. Our laboratory business could be harmed from the loss or suspension of a licence or imposition of a fine or penalties under, or future changes in, the law or regulations of the Clinical Laboratory Improvement Amendments of 1988 (“CLIA”), or those of other state or local agencies. |
• | International regulations - we face risks relating to our international sales and business operations, including regulatory risks, which could impact our current business operations and growth strategy. |
• | Healthcare industry laws - we are subject to various laws targeting fraud and abuse in the healthcare industry. Changes in healthcare regulation could affect our revenues, costs and financial condition. |
• | Public company regulations - compliance with regulations governing public company corporate governance and reporting is complex and expensive. |
• | Proprietary rights - we may be unable to protect or obtain proprietary rights that we utilise or intend to utilise. |
• | Patent protection – our patent protection may not be sufficiently broad to compete effectively, the existing patents could be challenged; and trade secrets and confidential know-how could be obtained by competitors. Our patent protection could be reduced or eliminated for non-compliance with various procedural requirements or due to changes in patent law. We may be involved in lawsuits to enforce our patents, the patents of our licensors or our other intellectual property rights, which could be expensive, time consuming and unsuccessful. Product infringement claims by other companies could result in costly disputes and could limit our ability to sell our products. |
• | Information - as a foreign private issuer we are exempt from a number of reporting requirements under the Exchange Act and are permitted to file less information with the SEC than a domestic U.S. reporting company. |
• | Passive foreign investment company - we may be classified as a passive foreign investment company, or PFIC, which would subject our U.S. investors to adverse tax rules. |
• | Volatility - the market price of our ADSs has been, and may continue to be, highly volatile. Future sales of our ADSs could reduce the market price of the ADSs. |
• | Capital - we expect we will need additional capital in the future. |
• | Dilution - the conversion of our outstanding employee share options, any new employee share options and existing warrants would dilute the ownership interest of existing shareholders. |
• | Governed by Irish law - it could be difficult for U.S. holders of ADSs to enforce any securities laws claims against Trinity Biotech, its officers or directors in Irish Courts. |
• | Dividends - we have no plans to pay dividends on our ADSs, and you may not receive funds without selling the ADSs. |
• | Voting rights of holders of ADSs – the terms of the deposit agreement limit the voting rights of holders of ADSs. |
• | NASDAQ listing standards - our securities could be delisted from Nasdaq if we do not comply with Nasdaq’s listing standards. |
• | the federal Anti-Kickback Statute, which prohibits, among other things, persons from knowingly and wilfully soliciting, receiving, offering or paying remuneration, directly or indirectly, in exchange for or to induce either the referral of an individual for, or the purchase, order or recommendation of, any good or service for which payment may be made under federal healthcare programs, such as the Medicare and Medicaid programs. A person or entity does not need to have actual knowledge of the federal Anti-Kickback Statute or specific intent to violate it to have committed a violation; in addition, the government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the False Claims Act; |
• | the Physician Self-Referral Law, also known as the “Stark Law”, which provides for strict liability for referrals by physicians to entities with which they or their immediate family members have a financial arrangement for certain designated health services, including clinical laboratory services provided by our CLIA-certified laboratory owned and operated by our subsidiary Immco Diagnostics Inc., that are reimbursable by federal healthcare programs, unless an exception applies. Penalties for violating the Stark Law include denial of payment, civil monetary penalties of up to fifteen thousand dollars per claim submitted, and exclusion from federal health care programs, as well as a penalty of up to one-hundred thousand dollars for attempts to circumvent the law; |
• | the U.S. Foreign Corrupt Practices Act, or the FCPA, which prohibits corporations and individuals from paying, offering to pay or authorising the payment of anything of value to any foreign government official, government staff member, political party or political candidate in an attempt to obtain or retain business or to otherwise influence a person working in an official capacity; the UK Bribery Act, which prohibits both domestic and international bribery, as well as bribery across both public and private sectors; and bribery provisions contained in the German Criminal Code, which makes the corruption and corruptibility of physicians in private practice and other healthcare professionals a criminal offense; and |
● | announcements of new products by us or others; | |
● | announcements by us of significant acquisitions, strategic partnerships, in-licensing, joint ventures or capital commitments; | |
● | the developments of the businesses and projects of our various subsidiaries; | |
● | expiration or terminations of licences, research contracts or other collaboration agreements; | |
● | public concern as to the safety of the products we sell; | |
● | the volatility of market prices for shares of companies with whom we compete; |
● | developments concerning intellectual property rights or regulatory approvals; | |
● | variations in our and our competitors’ results of operations; | |
● | changes in revenues, gross profits and earnings announced by us; | |
● | changes in estimates or recommendations by securities analysts, if the ADSs are covered by analysts; | |
● | fluctuations in the share price of our publicly traded subsidiaries; | |
● | changes in government regulations or patent decisions; and | |
● | general market conditions and other factors, including factors unrelated to our operating performance. |
A. | History and Development of the Company |
Point-Of-Care | Clinical Laboratory | |||||||||||
Infectious Diseases | Infectious Diseases | Haemoglobin | Autoimmune | Clinical Chemistry | Blood Bank Screening | |||||||
MarDx | Premier | ImmuBlot | EZ | Captia | ||||||||
Recombigen | FlexTrans | Ultra | ||||||||||
2021 | 2020 | Total project costs to December 31, 2021¹ | ||||||||||
Product Name | US$’000 | US$’000 | US$’000 | |||||||||
Premier Instrument for Haemoglobin A1c testing | 2,538 | 1,359 | 35,924 | |||||||||
HIV screening rapid test | 1,488 | 2,278 | 12,240 | |||||||||
Covid tests | 1,320 | 467 | 1,787 | |||||||||
Autoimmune Smart Reader | 550 | 666 | 3,287 | |||||||||
Mid-tier haemoglobins instrument | 303 | 243 | 609 | |||||||||
Tri-stat Point-of-Care instrument | 245 | 203 | 9,477 | |||||||||
Uni-Gold antigen improvement | - | 556 | 2,918 | |||||||||
Syphilis point-of-care test | - | 618 | 1,942 |
Year ended December 31, | ||||||||||||
2021 US$’000 | 2020 US$’000 | % Change | ||||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 74,700 | 84,280 | (11.4 | )% | ||||||||
Clinical laboratory services | 7,928 | 8,485 | (6.6 | )% | ||||||||
Point-of-Care | 10,337 | 9,215 | 12.2 | % | ||||||||
92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | ||||||||||||
2021 US$‘000 | 2020 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 57,799 | 70,408 | (17.9 | )% | ||||||||
Asia/Africa | 25,504 | 22,567 | 13.0 | % | ||||||||
Europe | 9,662 | 9,005 | 7.3 | % | ||||||||
Total | 92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | ||||||||||||
2020 US$’000 | $ | 2019 US$’000 | % Change | |||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 84,280 | 68,127 | 23.7 | % | ||||||||
Clinical laboratory services | 8,485 | 10,915 | (22.3 | )% | ||||||||
Point-of-Care | 9,215 | 11,393 | (19.1 | )% | ||||||||
101,980 | 90,435 | 12.8 | % |
Year ended December 31, | ||||||||||||
2020 US$‘000 | 2019 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 70,408 | 52,183 | 34.9 | % | ||||||||
Asia/Africa | 22,567 | 27,686 | (18.5 | )% | ||||||||
Europe | 9,005 | 10,566 | (14.8 | )% | ||||||||
Total | 101,980 | 90,435 | 12.8 | % |
B. | Liquidity and Capital Resources |
Year ended December 31, | ||||||||
2021 US$‘000 | 2020 US$‘000 | |||||||
Net cash inflow from operating activities | 13,238 | 23,755 | ||||||
Net cash outflow from investing activities | (8,691 | ) | (10,198 | ) | ||||
Net cash outflow from financing activities | (6,019 | ) | (2,716 | ) | ||||
Net (decrease)/increase in cash and cash equivalents and short-term investments | (1,472 | ) | 10,841 |
Year ended December 31, | ||||||||||||
2019 US$ ’000 | 2018 US$’000 | % Change | ||||||||||
Revenues | ||||||||||||
Clinical Laboratory | 68,127 | 71,618 | (4.9 | )% | ||||||||
Point-of-Care | 11,393 | 14,836 | (23.2 | )% | ||||||||
Laboratory Services | 10,915 | 10,581 | 3.2 | % | ||||||||
Total | 90,435 | 97,035 | 6.8 | % |
Year ended December 31, | ||||||||||||
2021 US$’000 | 2020 US$’000 | % Change | ||||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 74,700 | 84,280 | (11.4 | )% | ||||||||
Clinical laboratory services | 7,928 | 8,485 | (6.6 | )% | ||||||||
Point-of-Care | 10,337 | 9,215 | 12.2 | % | ||||||||
92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2019 US$‘000 | 2018 US$‘000 | % Change | 2021 US$‘000 | 2020 US$‘000 | % Change | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Americas | 52,183 | 57,559 | (9.3 | )% | 57,799 | 70,408 | (17.9 | )% | ||||||||||||||||
Asia/Africa | 27,686 | 29,466 | (6.0 | )% | 25,504 | 22,567 | 13.0 | % | ||||||||||||||||
Europe | 10,566 | 10,010 | 5.6 | % | 9,662 | 9,005 | 7.3 | % | ||||||||||||||||
Total | 90,435 | 97,035 | (6.8 | )% | 92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | ||||||||||||
2020 US$’000 | $ | 2019 US$’000 | % Change | |||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 84,280 | 68,127 | 23.7 | % | ||||||||
Clinical laboratory services | 8,485 | 10,915 | (22.3 | )% | ||||||||
Point-of-Care | 9,215 | 11,393 | (19.1 | )% | ||||||||
101,980 | 90,435 | 12.8 | % |
Year ended December 31, | ||||||||||||
2020 US$‘000 | 2019 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 70,408 | 52,183 | 34.9 | % | ||||||||
Asia/Africa | 22,567 | 27,686 | (18.5 | )% | ||||||||
Europe | 9,005 | 10,566 | (14.8 | )% | ||||||||
Total | 101,980 | 90,435 | 12.8 | % |
Year ended December 31, | ||||||||||||
2019 US$’000 | 2018 US$’000 | % Change | ||||||||||
Revenues | 90,435 | 97,035 | (6.8 | )% | ||||||||
Cost of sales | (52,315 | ) | (55,586 | ) | (5.9 | )% | ||||||
Gross profit | 38,120 | 41,449 | (8.0 | )% | ||||||||
Other operating income | 91 | 102 | (10.8 | )% | ||||||||
Research & development | (5,325 | ) | (5,369 | ) | (0.8 | )% | ||||||
SG&A expenses | (27,661 | ) | (29,477 | ) | (6.2 | )% | ||||||
Selling, general and administrative expenses – tax audit settlement | (5,042 | ) | — | — | ||||||||
Selling, general and administrative expenses - impairment charges | (24,295 | ) | (26,932 | ) | (9.8 | )% | ||||||
Operating loss on continuing operations | (24,112 | ) | (20,227 | ) | 19.2 | % |
Year ended December 31, | ||||||||||||
2018 US$’000 | 2018 US$’000 | % Change | ||||||||||
SG&A (excl. share-based payments and amortisation) | 24,561 | 25,317 | (3.0 | )% | ||||||||
Share-based payments | 732 | 1,335 | (45.2 | )% | ||||||||
Amortisation | 2,368 | 2,825 | (16.2 | )% | ||||||||
Total | 27,661 | 29,477 | (6.2 | )% |
Year ended December 31, | ||||||||||||
2019 US$‘000 | 2018 US$‘000 | % Change | ||||||||||
Operating loss | (24,112 | ) | (20,227 | ) | 19.2 | % | ||||||
Net financing expense | (5,885 | ) | (2,956 | ) | 99.1 | % | ||||||
Loss before tax | (29,997 | ) | (23,183 | ) | 29.4 | % | ||||||
Income tax credit | 1,006 | 525 | 91.6 | % | ||||||||
Loss for the year from continuing operations | (28,991 | ) | (22,658 | ) | 28.0 | % |
Year ended December 31, | ||||||||
2019 US$‘000 | 2018 US$‘000 | |||||||
Profit on discontinued operations | 77 | 568 |
B. | Liquidity and Capital Resources |
Year ended December 31, | ||||||||||||
2018 US$’000 | 2017 US$’000 | % Change | ||||||||||
Revenues | ||||||||||||
Clinical Laboratory | 71,618 | 73,366 | (2.4 | )% | ||||||||
Point-of-Care | 14,836 | 16,774 | (11.6 | )% | ||||||||
Laboratory Services | 10,581 | 9,000 | 17.6 | % | ||||||||
Total | 97,035 | 99,140 | (2.1 | )% |
Year ended December 31, | ||||||||||||
2018 US$‘000 | 2017 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 57,559 | 59,539 | (3.3 | )% | ||||||||
Asia/Africa | 29,466 | 27,131 | 8.6 | % | ||||||||
Europe | 10,010 | 12,470 | (19.7 | )% | ||||||||
Total | 97,035 | 99,140 | (2.1 | )% |
Year ended December 31, | ||||||||||||
2018 US$’000 | 2017 US$’000 | % Change | ||||||||||
Revenues | 97,035 | 99,140 | (2.1 | )% | ||||||||
Cost of sales | (55,586 | ) | (57,250 | ) | (2.9 | )% | ||||||
Gross profit | 41,449 | 41,890 | (1.1 | )% | ||||||||
Other operating income | 102 | 100 | 2.0 | % | ||||||||
Research & development | (5,369 | ) | (5,657 | ) | (5.1 | )% | ||||||
SG&A expenses | (29,477 | ) | (32,246 | ) | (8.6 | )% | ||||||
Selling, general and administrative expenses - impairment charges and inventory write-off/provision | (26,932 | ) | (41,755 | ) | (35.5 | )% | ||||||
Operating loss on continuing operations | (20,227 | ) | (37,668 | ) | (46.3 | )% |
Year ended December 31, | ||||||||||||
2018 US$’000 | 2017 US$’000 | % Change | ||||||||||
SG&A (excl. share-based payments and amortisation) | 25,317 | 28,050 | (9.7 | )% | ||||||||
Share-based payments | 1,335 | 893 | (49.5 | )% | ||||||||
Amortisation | 2,825 | 3,303 | (14.5 | )% | ||||||||
Total | 29,477 | 32,246 | (8.6 | )% |
Year ended December 31, | ||||||||||||
2018 US$‘000 | 2017 US$‘000 | % Change | ||||||||||
Operating loss | (20,227 | ) | (37,668 | ) | (46.2 | )% | ||||||
Net financing expense | (2,956 | ) | (2,207 | ) | 33.9 | % | ||||||
Loss before tax | (23,183 | ) | (39,875 | ) | (41.9 | )% | ||||||
Income tax credit | 525 | 1,214 | (56.8 | )% | ||||||||
Loss for the year from continuing operations | (22,658 | ) | (38,661 | ) | (41.4 | )% |
Year ended December 31, | ||||||||
2018 US$‘000 | 2017 US$‘000 | |||||||
Profit/(Loss) on discontinued operations | 568 | (1,609 | ) |
Year ended December 31, | ||||||||
2021 US$‘000 | 2020 US$‘000 | |||||||
Net cash inflow from operating activities | 13,238 | 23,755 | ||||||
Net cash outflow from investing activities | (8,691 | ) | (10,198 | ) | ||||
Net cash outflow from financing activities | (6,019 | ) | (2,716 | ) | ||||
Net (decrease)/increase in cash and cash equivalents and short-term investments | (1,472 | ) | 10,841 |
Payments due by Period | ||||||||||||||||||||
Contractual Obligations | Total US$’000 | less than 1 year US$’000 | 1-2 Years US$’000 | 2-5 Years US$’000 | more than 5 years US$’000 | |||||||||||||||
Exchangeable note* | 99,900 | — | — | — | 99,900 | |||||||||||||||
Exchangeable note interest | 101,898 | 3,996 | 3,996 | 11,988 | 81,918 | |||||||||||||||
Right of asset leases obligations | 19,630 | 2,156 | 2,012 | 4,840 | 10,622 | |||||||||||||||
Sale and leaseback lease obligations | 519 | 247 | 95 | 177 | — | |||||||||||||||
Total | 221,947 | 6,399 | 6,103 | 17,005 | 192,440 |
Item 4A. | Unresolved Staff Comments |
2019 | 2018 | Total project costs to December 31, 2019 ¹ | ||||||||||
Product Name | US$’000 | US$’000 | US$’000 | |||||||||
HIV screening rapid test | 2,587 | 1,657 | 8,474 | |||||||||
Premier Instrument for Haemoglobin A1c testing | 1,930 | 2,653 | 32,027 | |||||||||
Autoimmune Smart Reader | 1,325 | 746 | 2,071 | |||||||||
Syphilis point-of-care test | 870 | 454 | 1,324 | |||||||||
Uni-Gold antigen improvement | 691 | 453 | 2,362 | |||||||||
G-6-PDH test | 582 | 850 | 2,244 | |||||||||
Uni-gold test enhancement | 376 | 796 | 4,718 | |||||||||
Tri-stat Point-of-Care instrument | 361 | 727 | 9,029 |
Total estimated cost to complete | Estimated date for completion | |||||||
Product Name | US$’000 | |||||||
Premier Instrument for Haemoglobin A1c testing² | 900 | 2020 | ||||||
HIV screening rapid test | 1,250 | 2020 | ||||||
Autoimmune Smart Reader | 1,315 | 2021 | ||||||
Item 4A. | Unresolved Staff Comments |
Year ended December 31, | ||||||||||||
2021 US$’000 | 2020 US$’000 | % Change | ||||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 74,700 | 84,280 | (11.4 | )% | ||||||||
Clinical laboratory services | 7,928 | 8,485 | (6.6 | )% | ||||||||
Point-of-Care | 10,337 | 9,215 | 12.2 | % | ||||||||
92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | ||||||||||||
2021 US$‘000 | 2020 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 57,799 | 70,408 | (17.9 | )% | ||||||||
Asia/Africa | 25,504 | 22,567 | 13.0 | % | ||||||||
Europe | 9,662 | 9,005 | 7.3 | % | ||||||||
Total | 92,965 | 101,980 | (8.8 | )% |
Year ended December 31, | ||||||||||||
2020 US$’000 | $ | 2019 US$’000 | % Change | |||||||||
Revenues | ||||||||||||
Clinical laboratory goods | 84,280 | 68,127 | 23.7 | % | ||||||||
Clinical laboratory services | 8,485 | 10,915 | (22.3 | )% | ||||||||
Point-of-Care | 9,215 | 11,393 | (19.1 | )% | ||||||||
101,980 | 90,435 | 12.8 | % |
Year ended December 31, | ||||||||||||
2020 US$‘000 | 2019 US$‘000 | % Change | ||||||||||
Revenues | ||||||||||||
Americas | 70,408 | 52,183 | 34.9 | % | ||||||||
Asia/Africa | 22,567 | 27,686 | (18.5 | )% | ||||||||
Europe | 9,005 | 10,566 | (14.8 | )% | ||||||||
Total | 101,980 | 90,435 | 12.8 | % |
B. | Liquidity and Capital Resources |
Year ended December 31, | ||||||||
2021 US$‘000 | 2020 US$‘000 | |||||||
Net cash inflow from operating activities | 13,238 | 23,755 | ||||||
Net cash outflow from investing activities | (8,691 | ) | (10,198 | ) | ||||
Net cash outflow from financing activities | (6,019 | ) | (2,716 | ) | ||||
Net (decrease)/increase in cash and cash equivalents and short-term investments | (1,472 | ) | 10,841 |
Name | Age | Title |
Directors | ||
Ronan O’Caoimh | Chairman and Chief Executive Officer | |
Jim Walsh, PhD | Executive Director | |
John Gillard | 41 | Chief Financial Officer, Company Secretary and Executive Director |
Kevin Tansley | Executive | |
Clint Severson | ||
James D. Merselis | 68 | Non-Executive Director |
Senior Management | ||
Simon Dunne | 48 | Chief Accounting Officer |
Fernando Devia | 59 | Executive Vice President Sales |
Sanjiv Suri | 63 | Senior Vice President Global Sales and General Manager North America |
Terence Dunne, PhD | 41 | Business Development Director |
Eibhlín Kelly | 38 | Chief Information Officer |
Dan Goldsand | 66 |
Executive Director | Salary/ Benefits US$’000 | Performance related bonus US$’000 | Defined contribution pension US$’000 | Total 2019 US$’000 | Total 2018 US$’000 | |||||||||||||||
Ronan O’Caoimh1 | 425 | — | — | 425 | 585 | |||||||||||||||
Jim Walsh | — | — | — | — | 9 | |||||||||||||||
Kevin Tansley | 375 | 213 | 42 | 630 | 523 | |||||||||||||||
800 | 213 | 42 | 1,055 | 1,117 |
Non-executive Director | Fees US$’000 | Total 2019 US$’000 | Total 2018 US$’000 | ||||||||||||||||||||||||||||||||
Director | Title | Salary/ Benefits US$’000 | Performance related bonus US$’000 | Defined contribution pension US$’000 | Total 2021 US$’000 | Total 2020 US$’000 | |||||||||||||||||||||||||||||
Ronan O’Caoimh | Chairman and CEO | 643 | — | — | 643 | 1,052 | |||||||||||||||||||||||||||||
Jim Walsh | Executive Director | 20 | — | — | 20 | 38 | |||||||||||||||||||||||||||||
John Gillard | Chief Financial Officer | 346 | 227 | 20 | 593 | 52 | |||||||||||||||||||||||||||||
Kevin Tansley | Executive Director | 56 | — | 4 | 60 | 757 | |||||||||||||||||||||||||||||
Denis R. Burger | 75 | 75 | — | Non-Executive director | — | — | — | — | 48 | ||||||||||||||||||||||||||
Peter Coyne2 | — | — | 38 | ||||||||||||||||||||||||||||||||
James Merselis | 75 | 75 | 75 | Non-Executive director | 49 | — | — | 49 | 57 | ||||||||||||||||||||||||||
Clint Severson | 75 | 75 | 75 | Non-Executive director | 49 | — | — | 49 | 57 | ||||||||||||||||||||||||||
225 | 225 | 188 | 1,163 | 227 | 24 | 1,414 | 2,061 |
- | incurred by the person in his or her capacity as an officer of our company or a subsidiary of our company provided that the liability does not arise out of a conduct involving a wilful breach of duty in relation to our company or a subsidiary of our company; or |
- | for costs and expenses incurred by that person defending proceedings, whatever their outcome. |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Numbers of employees by geographic location | ||||||||||||
United States | 237 | 310 | 334 | |||||||||
Ireland | 211 | 199 | 215 | |||||||||
United Kingdom | 2 | 3 | 2 | |||||||||
Brazil | 27 | 31 | 28 | |||||||||
Total workforce | 477 | 543 | 579 | |||||||||
Numbers of employees by category of activity | ||||||||||||
Research scientists & technicians | 41 | 52 | 57 | |||||||||
Manufacturing/Operations | 239 | 280 | 303 | |||||||||
Quality Assurance | 63 | 63 | 60 | |||||||||
Finance/Administration | 68 | 65 | 66 | |||||||||
Sales & Marketing | 66 | 83 | 93 | |||||||||
Total workforce | 477 | 543 | 579 |
Name | Number of ‘A’ Ordinary Shares Beneficially Owned (1) | Percentage of Ownership (2) | ||||||
Ronan O’Caoimh (3) | 17,228,160 | 15.0 | % | |||||
Jim Walsh (4) | 2,863,612 | 2.6 | % | |||||
John Gillard (5) | 150,000 | * | ||||||
Kevin Tansley (6) | 1,547,336 | 1.4 | % | |||||
Clint Severson (7) | 878,000 | * | ||||||
James Merselis (8) | 778,600 | * | ||||||
Simon Dunne (9) | 210,000 | * | ||||||
Fernando Devia (10) | 330,000 | * | ||||||
Sanjiv Suri (11) | 280,000 | * | ||||||
Terence Dunne (12) | 283,336 | * | ||||||
Dan Goldsand | - | * | ||||||
Eibhlín Kelly | - | * | ||||||
Executive officers and directors as a group (12 persons) | 24,549,044 | 20.4 | % |
* | Less than 1% |
(1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Ordinary Shares relating to options currently exercisable or exercisable within 60 days of the date of this table are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them. |
(2) | The percentages shown are based on ‘A’ Ordinary Shares issued and outstanding as of April 15, 2022. |
(3) | Represents (a) 9,724,160 ‘A’ ordinary shares and (b) 7,504,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. Includes options issued to Darnick Company which in the past provided Trinity Biotech with the services of Mr. O’Caoimh as Chief Executive Officer. |
(4) | Represents (a) 1,393,612 ‘A’ ordinary shares and (b) 1,470,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. Note that 1,393,612 ‘A’ ordinary shares of Dr Walsh’s shares are held in trust for the benefit of Dr Walsh’s immediate family. |
(5) | Represents 150,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(6 | Represents (a) 150,000 ‘A’ ordinary shares and (b) 1,397,336 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(7) | Represents (a) 288,000 ‘A’ ordinary shares and (b) 590,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(8) | Represents (a) 188,600 ‘A’ ordinary shares and (b) 590,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(9) | Represents 210,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(10) | Represents 330,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(11) | Represents 280,000 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
(12) | Represents 283,336 ‘A’ ordinary shares underlying options that are currently vested and exercisable or that vest within sixty days of April 15, 2022. |
Director/Company Secretary | Number of Options ‘A’ Shares | Number of Options ADS Equivalent | Exercise Price (Per ‘A’ Share) | Exercise Price (Per ADS) | Expiration Date of Options | ||||||||||||
Ronan O’Caoimh* | 1,000,000 | 250,000 | 1.34 | 5.35 | 07/09/2024 | ||||||||||||
1,000,000 | 250,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
244,000 | 61,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
2,030,000 | 507,500 | 0.69 | 2.74 | 14/06/2026 | |||||||||||||
2,030,000 | 507,500 | 0.69 | 2.74 | 14/06/2026 | |||||||||||||
333,336 | 83,334 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
1,200,000 | 300,000 | 0.73 | 2.90 | 17/11/2027 | |||||||||||||
1,200,000 | 300,000 | 0.73 | 2.90 | 17/11/2027 | |||||||||||||
Jim Walsh | 53,333 | 13,333 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
53,333 | 13,333 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
53,334 | 13,334 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
360,000 | 90,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
360,000 | 90,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
30,000 | 7,500 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
280,000 | 70,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
280,000 | 70,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
40,000 | 10,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
Kevin Tansley | 340,000 | 85,000 | 1.34 | 5.35 | 07/09/2024 | ||||||||||||
340,000 | 85,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
184,000 | 46,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
266,668 | 66,667 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
266,668 | 66,667 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
266,664 | 66,666 | 0.19 | 0.77 | 20/03/2027 |
Director/Company Secretary | Number of Options ‘A’ Shares | Number of Options ADS Equivalent | Exercise Price (Per ‘A’ Share) | Exercise Price (Per ADS) | Expiration Date of Option | ||||||||||||
Ronan O’Caoimh* | 266,667 | 66,667 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
266,667 | 66,667 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
266,666 | 66,667 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
1,000,000 | 250,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
1,000,000 | 250,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
244,000 | 61,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
2,030,000 | 507,500 | 0.69 | 2.74 | 14/06/2026 | |||||||||||||
2,030,000 | 507,500 | 0.69 | 2.74 | 14/06/2026 | |||||||||||||
Denis Burger | 20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
321,000 | 80,250 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
20,000 | 5,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
Jim Walsh | 53,333 | 13,333 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
53,333 | 13,333 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
53,334 | 13,334 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
360,000 | 90,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
360,000 | 90,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
30,000 | 7,500 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
Kevin Tansley | 166,667 | 41,667 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
166,667 | 41,667 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
166,666 | 41,667 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
340,000 | 85,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
340,000 | 85,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
184,000 | 46,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
Jim Merselis | 20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
20,000 | 5,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
Clint Severson | 20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
20,000 | 5,000 | 1.34 | 5.35 | 07/09/2024 |
Director/Company Secretary | Number of Options ‘A’ Shares | Number of Options ADS Equivalent | Exercise Price (Per ‘A’ Share) | Exercise Price (Per ADS) | Expiration Date of Options | ||||||||||||
Jim Merselis | 20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
20,000 | 5,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
160,000 | 40,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
160,000 | 40,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
40,000 | 10,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
Clint Severson | 20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | ||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
20,000 | 5,000 | 2.43 | 9.73 | 24/02/2023 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
95,000 | 23,750 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
20,000 | 5,000 | 1.34 | 5.35 | 07/09/2024 | |||||||||||||
160,000 | 40,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
160,000 | 40,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
40,000 | 10,000 | 0.19 | 0.77 | 20/03/2027 | |||||||||||||
John Gillard | 150,000 | 37,500 | 0.67 | 2.69 | 23/10/2027 | ||||||||||||
150,000 | 37,500 | 0.67 | 2.69 | 23/10/2027 | |||||||||||||
150,000 | 37,500 | 0.67 | 2.69 | 23/10/2027 | |||||||||||||
150,000 | 37,500 | 0.67 | 2.69 | 23/10/2027 |
Number of ‘A’ Ordinary Shares Subject to Option | Range of Exercise Price per Ordinary Share | Range of Exercise Price per ADS | ||||||||||
Total options outstanding | US$ | US$ |
A. | Major Shareholders |
Number of ‘A’ Ordinary Shares Beneficially Owned | Number of ADSs Beneficially Owned | Percentage ‘A’ Ordinary Shares (8) | Percentage Total Voting Power | |||||||||||||
Stonehill Capital Management, LLC | 12,010,288 | 3,002,572 | 11.1 | % | 11.1 | % | ||||||||||
Paradice Investment Management, LLC | 6,172,460 | 1,543,115 | 5.7 | % | 5.7 | % | ||||||||||
Hunter Associates, Inc. | 5,918,000 | 1,479,500 | 5.5 | % | 5.5 | % | ||||||||||
Ronan O’Caoimh | 14,161,496 | (1) | 3,540,374 | 13.1 | % | 13.1 | % | |||||||||
Jim Walsh | 2,303,611 | (2) | 575,903 | 2.1 | % | 2.1 | % | |||||||||
Denis Burger | 496,000 | (3) | 124,000 | 0.5 | % | 0.5 | % | |||||||||
Clint Severson | 558,000 | (4) | 139,500 | 0.5 | % | 0.5 | % | |||||||||
James Merselis | 458,600 | (5) | 114,650 | 0.4 | % | 0.4 | % | |||||||||
Kevin Tansley | 1,514,000 | (6) | 378,500 | 1.4 | % | 1.4 | % | |||||||||
Directors & Co. Secretary as a group (6 persons) | 19,491,707 | (1)(2)(3)(4)(5)(6)(7) | 4,872,927 | 18.0 | % | 18.0 | % |
Number of ‘A’ Ordinary Shares Beneficially Owned | Number of ADSs Beneficially Owned (1) | Percentage ‘A’ Ordinary Shares (2) | Percentage Total Voting Power | |||||||||||||
Renaissance Technologies LLC | 6,274,220 | (3) | 1,568,555 | 5.8 | % | 5.8 | % | |||||||||
Paradice Investment Management, LLC | 6,172,460 | (4) | 1,543,115 | 5.7 | % | 5.7 | % | |||||||||
Ronan O’Caoimh | 17,228,160 | (5) | 4,307,040 | 15.0 | % | 15.0 | % | |||||||||
Stonehill Capital Management LLC | 9,272,872 | (6) | 2,318,218 | 8.6 | % | 8.6 | % | |||||||||
Perceptive Credit Holdings III, LP | 10,000,000 | (7) | 2,500,000 | 8.5 | % | 8.5 | % |
(1) |
(2) | The percentages shown are based on ‘A’ Ordinary Shares outstanding (excluding treasury shares). | |
(3) | Based on a Schedule 13G/A filed on February 11, 2022, with the SEC by Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation. The principal business address of each of these entities is 800 Third Avenue, New York, NY 10022 United States. | |
(4) | Based on a Schedule 13G/A filed on February 7, 2020 by Paradice Investment Management, LLC with the SEC. The principal business address of Paradice Investment Management, LLC is 257 Fillmore Street, Suite 200, Denver, Colorado 80206 United States. | |
(5) | Based on information provided to the Company, the above total includes ‘A’ Ordinary shares issuable upon exercise of options issued to Darnick Company. The address of Mr. O’Caoimh is c/o Trinity Biotech plc, Bray, Co. Wicklow, Ireland. |
(6) | ||
(7) | Based upon warrant agreement issued to Perceptive Credit Holdings III, LP in January 2022 in respect of 10,000,000 ‘A’ Ordinary |
Number of ‘A’ Ordinary Shares Beneficially Owned | Number of ADSs Beneficially Owned (1) | Percentage ‘A’ Ordinary Shares (2) | Percentage Total Voting Power | Date of Filing | |||||||||||||
Whitefort Capital Master Fund, LP | 2,342,280 | 585,570 | 2.2 | % | 2.2 | % | February 16, 2021 | ||||||||||
Highbridge Capital Management, LLC | 675,064 | 168,766 | 0.6 | % | 0.6 | % | April 14, 2022 |
Year Ended December 31 | High | Low | ||||||
US$ | US$ | |||||||
2015 | 20.24 | 10.74 | ||||||
2016 | 13.68 | 5.76 | ||||||
2017 | 7.04 | 4.50 | ||||||
2018 | 6.06 | 2.14 | ||||||
2019 | 3.22 | 0.69 |
2019 | High | Low | ||||||
US$ | US$ | |||||||
Quarter ended March 31 | 3.22 | 2.31 | ||||||
Quarter ended June 30 | 3.02 | 1.57 | ||||||
Quarter ended September 30 | 2.59 | 1.21 | ||||||
Quarter ended December 31 | 1.20 | 0.69 |
Month Ended | High | Low | ||||||
March 31, 2019 | 3.22 | 2.40 | ||||||
April 30, 2019 | 3.02 | 2.68 | ||||||
May 31, 2019 | 2.83 | 2.15 | ||||||
June 30, 2019 | 2.16 | 1.57 | ||||||
July 31, 2019 | 2.59 | 1.63 | ||||||
August 31, 2019 | 2.22 | 1.30 | ||||||
September 30, 2019 | 1.42 | 1.21 | ||||||
October 31, 2019 | 1.20 | 0.69 | ||||||
November 30, 2019 | 1.03 | 0.80 | ||||||
December 31, 2019 | 1.09 | 0.92 | ||||||
January 31, 2020 | 1.47 | 1.03 | ||||||
February 28, 2020 | 1.43 | 0.95 | ||||||
March 31, 2020 | 1.40 | 0.62 | ||||||
April 30, 2020 | 1.59 | 0.88 | ||||||
May 31, 2020 | 1.77 | 1.26 |
Service | Rate | By whom paid |
(1) Issuance of ADSs upon deposit of ordinary shares. | Up to $10.00 per 100 ADSs (or portion thereof) issued. | Persons depositing ordinary shares or person receiving ADSs. |
(2) Delivery of deposited securities against surrender of ADSs. | Up to $10.00 per 100 ADSs (or portion thereof) issued. | Persons surrendering ADSs for the purpose of withdrawal of deposited securities or persons to whom deposited securities are delivered. |
(3) Issuance of ADSs in connection with a distribution of shares. | Up to $10.00 per 100 ADSs (or portion thereof) issued. | Person to whom distribution is made. |
(4) Distribution of cash dividends or other cash distributions, including distribution of cash proceeds following the sale of rights, shares or other property in accordance with the deposit agreement | Up to $0.02 per 1 ADS | Person to whom distribution is made. |
(5) Transfer of ADSs | Up to $1.50 per certificate for ADRs or ADRs transferred | Person to whom Receipt is transferred. |
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. | Controls and Procedures |
Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2021 | Year ended December 31, 2020 | |||||||||||||||||||||||||||||
US$’000 | US$’000 | US$’000 | % | US$’000 | % | US$’000 | % | |||||||||||||||||||||||||
Audit | 508 | 67 | % | 562 | 97 | % | 477 | 72 | % | 495 | 80 | % | ||||||||||||||||||||
Audit-related | - | - | % | - | - | % | 94 | 14 | % | - | - | |||||||||||||||||||||
Tax | 248 | 33 | % | 17 | 3 | % | 89 | 14 | % | 124 | 20 | % | ||||||||||||||||||||
Total | 756 | 579 | 660 | 619 |
• | The Rule requiring maintaining an audit committee consisting of at least three independent directors (Rule 5605(c)(2). Instead, we follow Irish law that requires that an audit committee have at least one independent director. Our audit committee consists of two independent directors. | |
• | The Rule requiring a compensation committee consisting of at least two independent directors (Rule 5605(d)(2). We have a compensation committee, which we refer to as the remuneration committee, and although it consists of two independent directors, we may follow Irish law in the future, which does not require us to have an independent compensation committee. | |
• | The Rule requiring a quorum of 33 1/3% at any meeting of shareholders (Rule 5620(c)). Instead, we follow the provisions of our Articles of Association which require a quorum of 40%> If a quorum is not present, unless the meeting has been convened by shareholders in which case the meeting shall be dissolved, the meeting will be adjourned to another date. If a quorum is not present within 15 minutes of the time set for the adjourned meeting, the meeting may commence so long as there are two shareholders present. |
Item 17 | Financial Statements |
• | We evaluated the design effectiveness of controls over management’s selection of the discount rates, short-term forecasts of future revenues and margins, and long-term growth rates used to determine the recoverable amount of each selected CGU. |
• | We agreed the underlying cash flow forecasts to the Board-approved projections and we evaluated management’s ability to accurately forecast future revenues and margins by: |
• | performing a look-back analysis and comparing actual results to management’s historical forecasts; and |
• | assessing the reasonableness of the impact of new products, the COVID-19 pandemic, and other macroeconomic activity on short-term cash flows. |
• | We assessed the reasonableness of the valuation model used by the Company compared to generally accepted valuation practices and accounting standards. |
• | We tested the source information underlying the determination of the discount rates through use of observable inputs from independent external sources. |
• | We developed independent estimates and compared those to the discount rates selected by management. |
• | We compared the long-term growth rates, used by management to grow cash flows in order to calculate a terminal value, to independent external sources to assess the reasonableness of these rates. |
• | We examined the supporting documents of internally generated development costs additions in the financial year to ensure they constituted development phase costs allowable for capitalization as stipulated by accounting standards. |
• | We tested the key assumptions used by management in concluding that development projects capitalized during the financial year demonstrate the required characteristics to permit capitalization, particularly the commercial and technical feasibility of on-going development projects. |
• | We conducted detailed discussions with senior project personnel in charge of the developments to understand their rationale for concluding on the appropriateness of capitalization of the development phase costs and, where necessary, challenged the underlying reasoning. |
• | We obtained a detailed understanding of the role of the employees in the development of the relevant projects whose salaries are capitalized. |
• | We tested the design and operating effectiveness of operational controls (including specific controls for review of revenue recognition and year end cut-off analyses). |
• | We selected a statistical sample of revenue transactions to vouch to underlying documents. |
• | We examined contracts specific to samples selected and assessed revenue recognition in accordance with the accounting standards. |
• | We evaluated management assumptions in recognising revenue related to the performance obligation of certain contracts with high subjectivity. |
Year ended December 31 | ||||||||||||||||
Notes | 2019 Total US$‘000 | 2018 Total US$‘000 | 2017 Total US$‘000 | |||||||||||||
Revenues | 2 | 90,435 | 97,035 | 99,140 | ||||||||||||
Cost of sales | (52,315 | ) | (55,586 | ) | (57,250 | ) | ||||||||||
Gross profit | 38,120 | 41,449 | 41,890 | |||||||||||||
Other operating income | 5 | 91 | 102 | 100 | ||||||||||||
Research and development expenses | (5,325 | ) | (5,369 | ) | (5,657 | ) | ||||||||||
Selling, general and administrative expenses | (27,661 | ) | (29,477 | ) | (32,246 | ) | ||||||||||
Selling, general and administrative expenses – tax audit settlement | 6 | (5,042 | ) | - | - | |||||||||||
Impairment charges | 7 | (24,295 | ) | (26,932 | ) | (41,755 | ) | |||||||||
Operating loss | (24,112 | ) | (20,227 | ) | (37,668 | ) | ||||||||||
Financial income | 2,8 | 697 | 2,124 | 3,198 | ||||||||||||
Financial expenses | 2, 8 | (6,582 | ) | (5,080 | ) | (5,405 | ) | |||||||||
Net financing expense | (5,885 | ) | (2,956 | ) | (2,207 | ) | ||||||||||
Loss before tax | 11 | (29,997 | ) | (23,183 | ) | (39,875 | ) | |||||||||
Total income tax credit | 2, 9 | 1,006 | 525 | 1,214 | ||||||||||||
Loss for the year on continuing operations | 2 | (28,991 | ) | (22,658 | ) | (38,661 | ) | |||||||||
Profit/(Loss) for the year on discontinued operations | 10 | 77 | 568 | (1,609 | ) | |||||||||||
Loss for the year (all attributable to owners of the parent) | 2 | (28,914 | ) | (22,090 | ) | (40,270 | ) | |||||||||
Basic loss per ADS (US Dollars) – continuing operations | 12 | (1.39 | ) | (1.08 | ) | (1.79 | ) | |||||||||
Diluted loss per ADS (US Dollars) – continuing operations | 12 | (1.39 | ) | (1.08 | ) | (1.79 | ) | |||||||||
Basic loss per ‘A’ ordinary share (US Dollars) –continuing operations | 12 | (0.35 | ) | (0.27 | ) | (0.45 | ) | |||||||||
Diluted loss per ‘A’ ordinary share (US Dollars) – continuing operations | 12 | (0.35 | ) | (0.27 | ) | (0.45 | ) | |||||||||
Basic loss per ADS (US Dollars) – group | 12 | (1.38 | ) | (1.06 | ) | (1.86 | ) | |||||||||
Diluted loss per ADS (US Dollars) – group | 12 | (1.38 | ) | (1.06 | ) | (1.86 | ) | |||||||||
Basic loss per ‘A’ ordinary share (US Dollars) – group | 12 | (0.35 | ) | (0.26 | ) | (0.47 | ) | |||||||||
Diluted loss per ‘A’ ordinary share (US Dollars) –group | 12 | (0.35 | ) | (0.26 | ) | (0.47 | ) |
Year ended December 31 | |||||||||||||||
Notes | 2021 Total US$‘000 | 2020 Total US$‘000 | 2019 Total US$‘000 | ||||||||||||
Revenues | 2 | 92,965 | 101,980 | 90,435 | |||||||||||
Cost of sales | (54,888 | ) | (53,400 | ) | (52,315 | ) | |||||||||
Gross profit | 38,077 | 48,580 | 38,120 | ||||||||||||
Other operating income | 4 | 4,672 | 1,860 | 91 | |||||||||||
Research and development expenses | (4,497 | ) | (5,080 | ) | (5,325 | ) | |||||||||
Selling, general and administrative expenses | (24,683 | ) | (26,390 | ) | (27,661 | ) | |||||||||
Selling, general and administrative expenses – recognition of contingent asset | 26 | 0 | 1,316 | 0 | |||||||||||
Selling, general and administrative expenses – closure costs | 5 | 0 | (2,425 | ) | 0 | ||||||||||
Selling, general and administrative expenses – tax audit settlement | 6 | 0 | 0 | (5,042 | ) | ||||||||||
Impairment charges | 7 | (6,944 | ) | (17,779 | ) | (24,295 | ) | ||||||||
Operating profit/(loss) | 6,625 | 82 | (24,112 | ) | |||||||||||
Financial income | 2,8 | 1,223 | 36 | 697 | |||||||||||
Financial expenses | 2, 8 | (7,097 | ) | (6,751 | ) | (6,582 | ) | ||||||||
Net financing expense | (5,874 | ) | (6,715 | ) | (5,885 | ) | |||||||||
Profit/(Loss) before tax | 11 | 751 | (6,633 | ) | (29,997 | ) | |||||||||
Total income tax credit | 2, 9 | 178 | 620 | 1,006 | |||||||||||
Profit/(Loss) for the year on continuing operations | 2 | 929 | (6,013 | ) | (28,991 | ) | |||||||||
(Loss)/Profit for the year on discontinued operations | 10 | (54 | ) | (375 | ) | 77 | |||||||||
Profit(Loss) for the year (all attributable to owners of the parent) | 2 | 875 | (6,388 | ) | (28,914 | ) | |||||||||
Basic profit/(loss) per ADS (US Dollars) – continuing operations | 12 | 0.04 | (0.29 | ) | (1.39 | ) | |||||||||
Diluted profit/(loss) per ADS (US Dollars) – continuing operations | 12 | 0.04 | (0.29 | ) | (1.39 | ) | |||||||||
Basic profit/(loss) per ‘A’ ordinary share (US Dollars) –continuing operations | 12 | 0.01 | (0.07 | ) | (0.35 | ) | |||||||||
Diluted profit/(loss) per ‘A’ ordinary share (US Dollars) – continuing operations | 12 | 0.01 | (0.07 | ) | (0.35 | ) | |||||||||
Basic profit/(loss) per ADS (US Dollars) – group | 12 | 0.04 | (0.31 | ) | (1.38 | ) | |||||||||
Diluted profit/(loss) per ADS (US Dollars) – group | 12 | 0.04 | (0.31 | ) | (1.38 | ) | |||||||||
Basic profit/(loss) per ‘A’ ordinary share (US Dollars) – group | 12 | 0.01 | (0.08 | ) | (0.35 | ) | |||||||||
Diluted profit/(loss) per ‘A’ ordinary share (US Dollars) – group | 12 | 0.01 | (0.08 | ) | (0.35 | ) |
Year ended December 31 | ||||||||||||||||
Notes | 2019 US$‘000 | 2018 US$‘000 | 2017 US$‘000 | |||||||||||||
Loss for the year | 2 | (28,914 | ) | (22,090 | ) | (40,270 | ) | |||||||||
Other comprehensive (loss)/income | ||||||||||||||||
Items that will be reclassified subsequently to profit or loss | ||||||||||||||||
Foreign exchange translation differences | (167 | ) | (520 | ) | 3,086 | |||||||||||
Other comprehensive (loss)/income | (167 | ) | (520 | ) | 3,086 | |||||||||||
Total Comprehensive Loss (all attributable to owners of the parent) | (29,081 | ) | (22,610 | ) | (37,184 | ) |
Year ended December 31 | |||||||||||||||
Notes | 2021 US$‘000 | 2020 US$‘000 | 2019 US$‘000 | ||||||||||||
Profit/(Loss) for the year | 2 | 875 | (6,388 | ) | (28,914 | ) | |||||||||
Other comprehensive loss | |||||||||||||||
Items that will be reclassified subsequently to profit or loss | |||||||||||||||
Foreign exchange translation differences | (86 | ) | (1,360 | ) | (167 | ) | |||||||||
Other comprehensive loss | (86 | ) | (1,360 | ) | (167 | ) | |||||||||
Total Comprehensive Profit/(Loss) (all attributable to owners of the parent) | 789 | (7,748 | ) | (29,081 | ) |
At December 31 | At December 31 | ||||||||||||||||||||||
Notes | 2019 US$‘000 | 2018 US$‘000 | Notes | 2021 US$‘000 | 2020 US$‘000 | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Non-current assets | |||||||||||||||||||||||
Property, plant and equipment | 13 | 9,290 | 5,362 | 13 | 5,918 | 8,547 | |||||||||||||||||
Goodwill and intangible assets | 14 | 43,654 | 52,951 | 14 | 35,981 | 33,860 | |||||||||||||||||
Deferred tax assets | 15 | 6,252 | 6,127 | 15 | 4,101 | 4,185 | |||||||||||||||||
Derivative financial instruments | 24 | 0 | 150 | ||||||||||||||||||||
Other assets | 16 | 485 | 558 | 16 | 207 | 355 | |||||||||||||||||
Total non-current assets | 59,681 | 64,998 | 46,207 | 47,097 | |||||||||||||||||||
Current assets | |||||||||||||||||||||||
Inventories | 17 | 32,021 | 30,359 | 17 | 29,123 | 30,219 | |||||||||||||||||
Trade and other receivables | 18 | 20,987 | 24,441 | 18 | 16,116 | 22,668 | |||||||||||||||||
Income tax receivable | 1,982 | 1,584 | 1,539 | 3,086 | |||||||||||||||||||
Cash and cash equivalents | 19 | 15,231 | 30,277 | 19 | 25,910 | 27,327 | |||||||||||||||||
Short term investments | 20 | 1,169 | - | ||||||||||||||||||||
Total current assets | 71,390 | 86,661 | 72,688 | 83,300 | |||||||||||||||||||
TOTAL ASSETS | 2 | 131,071 | 151,659 | 2 | 118,895 | 130,397 | |||||||||||||||||
EQUITY AND LIABILITIES | |||||||||||||||||||||||
Equity attributable to the equity holders of the parent | |||||||||||||||||||||||
Share capital | 21 | 1,213 | 1,213 | 20 | 1,213 | 1,213 | |||||||||||||||||
Share premium | 21 | 16,187 | 16,187 | 20 | 16,187 | 16,187 | |||||||||||||||||
Treasury shares | 21 | (24,922 | ) | (24,922 | ) | 20 | (24,922 | ) | (24,922 | ) | |||||||||||||
Accumulated surplus | 21 | 16,145 | 55,319 | 20 | 12,559 | 10,573 | |||||||||||||||||
Translation reserve | 21 | (3,933 | ) | (3,766 | ) | 20 | (5,379 | ) | (5,293 | ) | |||||||||||||
Other reserves | 21 | 23 | 23 | 20 | 23 | 23 | |||||||||||||||||
Total equity | 4,713 | 44,054 | |||||||||||||||||||||
Total deficit | (319 | ) | (2,219 | ) | |||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Income tax payable | 48 | 210 | 22 | 154 | |||||||||||||||||||
Trade and other payables | 23 | 16,947 | 16,908 | 22 | 15,127 | 24,335 | |||||||||||||||||
Provisions | 24 | 50 | 50 | 23 | 50 | 416 | |||||||||||||||||
Exchangeable notes and other borrowings | 24 | 83,312 | 0 | ||||||||||||||||||||
Lease liabilities | 26 | 2,404 | 436 | 25 | 1,980 | 2,153 | |||||||||||||||||
Total current liabilities | 19,449 | 17,604 | 100,491 | 27,058 | |||||||||||||||||||
Non-current liabilities | |||||||||||||||||||||||
Exchangeable notes | 25 | 82,021 | 81,382 | ||||||||||||||||||||
Exchangeable notes and other borrowings | 24 | 0 | 82,695 | ||||||||||||||||||||
Derivative financial instruments | 25 | 4 | 238 | 24 | 0 | 1,370 | |||||||||||||||||
Lease liabilities | 26 | 17,745 | 526 | 25 | 13,865 | 16,588 | |||||||||||||||||
Deferred tax liabilities | 15 | 7,139 | 7,855 | 15 | 4,858 | 4,905 | |||||||||||||||||
Total non-current liabilities | 106,909 | 90,001 | 18,723 | 105,558 | |||||||||||||||||||
TOTAL LIABILITIES | 2 | 126,358 | 107,605 | 2 | 119,214 | 132,616 | |||||||||||||||||
TOTAL EQUITY AND LIABILITIES | 131,071 | 151,659 | 118,895 | 130,397 |
Share capital ‘A’ ordinary shares US$’000 | Share premium US$’000 | Treasury Shares US$’000 | Translation reserve US$’000 | Hedging reserves US$’000 | Accumulated surplus US$’000 | Total US$’000 | ||||||||||||||||||||||
Balance at January 1, 2019 | 1,213 | 16,187 | (24,922 | ) | (3,766 | ) | 23 | 55,319 | 44,054 | |||||||||||||||||||
Loss for the period | - | - | - | - | - | (28,914 | ) | (28,914 | ) | |||||||||||||||||||
Other comprehensive income | - | - | - | (167 | ) | - | - | (167 | ) | |||||||||||||||||||
Total comprehensive loss | - | - | - | (167 | ) | - | (28,914 | ) | (29,081 | ) | ||||||||||||||||||
Share-based payments | - | - | - | - | - | 839 | 839 | |||||||||||||||||||||
Adjustment on transition to IFRS 16 (Note 13) | - | - | - | - | - | (11,099 | ) | (11,099 | ) | |||||||||||||||||||
Balance at December 31, 2019 | 1,213 | 16,187 | (24,922 | ) | (3,933 | ) | 23 | 16,145 | 4,713 | |||||||||||||||||||
Balance at January 1, 2020 | 1,213 | 16,187 | (24,922 | ) | (3,933 | ) | 23 | 16,145 | 4,713 | |||||||||||||||||||
Loss for the period | - | - | - | - | - | (6,388 | ) | (6,388 | ) | |||||||||||||||||||
Other comprehensive income | - | - | - | (1,360 | ) | - | - | (1,360 | ) | |||||||||||||||||||
Total comprehensive loss | - | - | - | (1,360 | ) | - | (6,388 | ) | (7,748 | ) | ||||||||||||||||||
Share-based payments (Note 21) | - | - | - | - | - | 816 | 816 | |||||||||||||||||||||
Balance at December 31, 2020 | 1,213 | 16,187 | (24,922 | ) | (5,293 | ) | 23 | 10,573 | (2,219 | ) | ||||||||||||||||||
Balance at January 1, 2021 | 1,213 | 16,187 | (24,922 | ) | (5,293 | ) | 23 | 10,573 | (2,219 | ) | ||||||||||||||||||
Profit for the period | - | - | - | - | - | 875 | 875 | |||||||||||||||||||||
Other comprehensive income | - | - | - | (86 | ) | - | - | (86 | ) | |||||||||||||||||||
Total comprehensive profit/(loss) | - | - | - | (86 | ) | - | 875 | 789 | ||||||||||||||||||||
Share-based payments (Note 21) | - | - | - | - | - | 1,111 | 1,111 | |||||||||||||||||||||
Balance at December 31, 2021 | 1,213 | 16,187 | (24,922 | ) | (5,379 | ) | 23 | 12,559 | (319 | ) |
Other reserves | ||||||||||||||||||||||||||||||||
Share capital ‘A’ ordinary shares US$’000 | Share premium US$’000 | Treasury Shares US$’000 | Translation reserve US$’000 | Warrant reserve US$’000 | Hedging reserves US$’000 | Accumulated surplus US$’000 | Total US$’000 | |||||||||||||||||||||||||
Balance at January 1, 2017 | 1,213 | 16,187 | (17,327 | ) | (6,332 | ) | 4,529 | 23 | 110,434 | 108,727 | ||||||||||||||||||||||
Loss for the period | - | - | - | - | - | - | (40,270 | ) | (40,270 | ) | ||||||||||||||||||||||
Other comprehensive income | - | - | - | 3,086 | - | - | - | 3,086 | ||||||||||||||||||||||||
Total comprehensive income/(loss) | - | - | - | 3,086 | - | - | (40,270 | ) | (37,184 | ) | ||||||||||||||||||||||
Transfer of warrant reserve (Note 22) | - | - | - | - | (4,529 | ) | - | 4,529 | - | |||||||||||||||||||||||
Share-based payments (Note 22) | - | - | - | - | - | - | 1,109 | 1,109 | ||||||||||||||||||||||||
Shares purchased (Note 21) | - | - | (7,456 | ) | - | - | - | - | (7,456 | ) | ||||||||||||||||||||||
Balance at December 31, 2017 | 1,213 | 16,187 | (24,783 | ) | (3,246 | ) | - | 23 | 75,802 | 65,196 | ||||||||||||||||||||||
Balance at January 1, 2018 | 1,213 | 16,187 | (24,783 | ) | (3,246 | ) | - | 23 | 75,802 | 65,196 | ||||||||||||||||||||||
Loss for the period | - | - | - | - | - | - | (22,090 | ) | (22,090 | ) | ||||||||||||||||||||||
Other comprehensive income | - | - | - | (520 | ) | - | - | - | (520 | ) | ||||||||||||||||||||||
Total comprehensive loss | - | - | - | (520 | ) | - | - | (22,090 | ) | (22,610 | ) | |||||||||||||||||||||
Share-based payments (Note 22) | - | - | - | - | - | - | 1,607 | 1,607 | ||||||||||||||||||||||||
Shares purchased (Note 21) | - | - | (139 | ) | - | - | - | - | (139 | ) | ||||||||||||||||||||||
Balance at December 31, 2018 | 1,213 | 16,187 | (24,922 | ) | (3,766 | ) | - | 23 | 55,319 | 44,054 | ||||||||||||||||||||||
Balance at January 1, 2019 | 1,213 | 16,187 | (24,922 | ) | (3,766 | ) | - | 23 | 55,319 | 44,054 | ||||||||||||||||||||||
Loss for the period | - | - | - | - | - | - | (28,914 | ) | (28,914 | ) | ||||||||||||||||||||||
Other comprehensive income | - | - | - | (167 | ) | - | - | - | (167 | ) | ||||||||||||||||||||||
Total comprehensive loss | - | - | - | (167 | ) | - | - | (28,914 | ) | (29,081 | ) | |||||||||||||||||||||
Share-based payments (Note 22) | - | - | - | - | - | - | 839 | 839 | ||||||||||||||||||||||||
Adjustment on transition to IFRS 16 (Note 13) | - | - | - | - | - | - | (11,099 | ) | (11,099 | ) | ||||||||||||||||||||||
Balance at December 31, 2019 | 1,213 | 16,187 | (24,922 | ) | (3,933 | ) | - | 23 | 16,145 | 4,713 |
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||
Notes | 2019 US$‘000 | 2018 US$‘000 | 2017 US$‘000 | Notes | 2021 US$‘000 | 2020 US$‘000 | 2019 US$‘000 | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Loss for the year | (28,914 | ) | (22,090 | ) | (40,270 | ) | |||||||||||||||||||||||||
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||||||||||||||||||||||||||
Profit/(Loss) for the year | 875 | (6,388 | ) | (28,914 | ) | ||||||||||||||||||||||||||
Adjustments to reconcile net profit/(loss) to cash provided by operating activities: | |||||||||||||||||||||||||||||||
Depreciation | 11 | 2,526 | 1,296 | 1,896 | 11 | 1,827 | 1,674 | 2,526 | |||||||||||||||||||||||
Amortisation | 11,14 | 2,368 | 2,825 | 3,303 | 11,14 | 917 | 1,403 | 2,368 | |||||||||||||||||||||||
Income tax (credit) / expense | (1,006 | ) | (1,115 | ) | (374 | ) | |||||||||||||||||||||||||
Income tax credit | 9 | (167 | ) | (182 | ) | (1,006 | ) | ||||||||||||||||||||||||
Financial income | 8 | (697 | ) | (2,124 | ) | (3,198 | ) | 8 | (1,223 | ) | (36 | ) | (697 | ) | |||||||||||||||||
Financial expense | 8 | 6,582 | 5,080 | 5,405 | 8 | 7,097 | 6,751 | 6,582 | |||||||||||||||||||||||
Share-based payments | 22 | 758 | 1,369 | 928 | |||||||||||||||||||||||||||
Foreign exchange (gains)/losses on operating cash flows | (93 | ) | 311 | 307 | |||||||||||||||||||||||||||
Loss on disposal or retirement of property, plant and equipment | 11 | 17 | 15 | 3 | |||||||||||||||||||||||||||
Share-based payments (net of capitalized amounts) | 21 | 1,100 | 792 | 758 | |||||||||||||||||||||||||||
Foreign exchange gains on operating cash flows | (251 | ) | (663 | ) | (93 | ) | |||||||||||||||||||||||||
(Gain)/Loss on disposal or retirement of property, plant and equipment | 11 | (1 | ) | 30 | 17 | ||||||||||||||||||||||||||
Movement in inventory provision | 17 | 1,567 | 300 | 2,275 | 17 | 5,589 | 5,059 | 1,567 | |||||||||||||||||||||||
Impairment of prepayments | 7, 18 | 1,376 | 1,608 | 1,651 | 7, 18 | 583 | 562 | 1,376 | |||||||||||||||||||||||
Impairment of property, plant and equipment | 7, 13 | 6,349 | 6,112 | 10,437 | 7, 13 | 2,508 | 1,795 | 6,349 | |||||||||||||||||||||||
Impairment of intangible assets | 7, 14 | 16,570 | 19,212 | 29,667 | 7, 14 | 3,853 | 15,422 | 16,570 | |||||||||||||||||||||||
Provision for closure costs | 10 | - | - | (1,794 | ) | ||||||||||||||||||||||||||
Other non-cash items | 835 | 570 | (728 | ) | (5,317 | ) | (634 | ) | 835 | ||||||||||||||||||||||
Operating cash flows before changes in working capital | 8,238 | 13,369 | 9,508 | 17,390 | 25,585 | 8,238 | |||||||||||||||||||||||||
(Increase) / decrease in trade and other receivables | 445 | (5,960 | ) | 306 | |||||||||||||||||||||||||||
Decrease / (increase) in inventories | (2,959 | ) | 1,988 | (2,461 | ) | ||||||||||||||||||||||||||
(Decrease) / increase in trade and other payables | 151 | (3,419 | ) | 2,017 | |||||||||||||||||||||||||||
Decrease / (Increase) in trade and other receivables | 6,236 | (2,489 | ) | 445 | |||||||||||||||||||||||||||
(Increase) in inventories | (4,406 | ) | (3,419 | ) | (2,959 | ) | |||||||||||||||||||||||||
(Decrease) / Increase in trade and other payables | (7,591 | ) | 4,994 | 151 | |||||||||||||||||||||||||||
Cash generated from operations | 5,875 | 5,978 | 9,370 | 11,629 | 24,671 | 5,875 | |||||||||||||||||||||||||
Interest paid | (1,000 | ) | (39 | ) | (53 | ) | (11 | ) | (48 | ) | (1,000 | ) | |||||||||||||||||||
Interest received | 560 | 874 | 776 | 1 | 104 | 560 | |||||||||||||||||||||||||
Income taxes received / (paid) | (18 | ) | 416 | (843 | ) | 1,619 | (972 | ) | (18 | ) | |||||||||||||||||||||
Net cash generated by operating activities | 5,417 | 7,229 | 9,250 | 13,238 | 23,755 | 5,417 | |||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||
Payments to acquire intangible assets | (9,718 | ) | (9,863 | ) | (10,229 | ) | (6,879 | ) | (6,990 | ) | (9,718 | ) | |||||||||||||||||||
Acquisition of property, plant and equipment | (2,118 | ) | (7,528 | ) | (4,839 | ) | (1,812 | ) | (3,178 | ) | (2,118 | ) | |||||||||||||||||||
Disposal of property, plant and equipment | (17 | ) | 0 | (30 | ) | (17 | ) | ||||||||||||||||||||||||
Licence fees | 23 | - | - | (1,112 | ) | ||||||||||||||||||||||||||
Net cash used in investing activities | (11,853 | ) | (17,391 | ) | (16,180 | ) | (8,691 | ) | (10,198 | ) | (11,853 | ) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||
Share buyback | - | (434 | ) | (7,799 | ) | ||||||||||||||||||||||||||
Proceeds from Paycheck Protection loans | 1,764 | 4,520 | 0 | ||||||||||||||||||||||||||||
Interest payment on exchangeable notes | 30 | (3,996 | ) | (4,503 | ) | (4,600 | ) | 29 | (3,996 | ) | (3,996 | ) | (3,996 | ) | |||||||||||||||||
Purchase of exchangeable notes | 30 | - | (12,042 | ) | - | ||||||||||||||||||||||||||
Proceeds from sale & leaseback transactions | - | 481 | 51 | ||||||||||||||||||||||||||||
Loan Origination Costs | (848 | ) | 0 | 0 | |||||||||||||||||||||||||||
Payment of lease liabilities | 30 | (3,533 | ) | (374 | ) | (295 | ) | 29 | (2,939 | ) | (3,240 | ) | (3,533 | ) | |||||||||||||||||
Net cash used in financing activities | (7,529 | ) | (16,872 | ) | (12,643 | ) | (6,019 | ) | (2,716 | ) | (7,529 | ) | |||||||||||||||||||
Decrease in cash and cash equivalents and short term investments | (13,965 | ) | (27,034 | ) | (19,573 | ) | |||||||||||||||||||||||||
(Decrease) / Increase in cash and cash equivalents and short term investments | (1,472 | ) | 10,841 | (13,965 | ) | ||||||||||||||||||||||||||
Effects of exchange rate movements on cash held | 88 | (296 | ) | 71 | 55 | 86 | 88 | ||||||||||||||||||||||||
Cash and cash equivalents and short-term investments at beginning of year | 30,277 | 57,607 | 77,109 | 27,327 | 16,400 | 30,277 | |||||||||||||||||||||||||
Cash and cash equivalents and short term investments at end of year | 19,20 | 16,400 | 30,277 | 57,607 | |||||||||||||||||||||||||||
Cash and cash equivalents and short-term investments at end of year | 19 | 25,910 | 27,327 | 16,400 |
98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES |
i) | General information |
ii) | Statement of compliance |
iii) | Basis of preparation |
At December 31, 2021, the Group had net currently liabilities. However, at the date of this report the Group’s financial position has substantially improved following the successful re-financing of the Group’s debt in early 2022. This has significantly improved the Group’s capital structure by reducing gross debt by approximately US$19 million and there are no material debt maturities until 2026. Furthermore, the investment by MiCo Group will facilitate an early repayment of a substantial portion of the debt due to all periods presentedPerceptive Advisors and will also facilitate the Group exploring lower cost debt funding options, in these consolidated financial statements. The accounting policies have been applied consistently by all Group entities.the short term, with the aim of further reducing the Group’s interest expense through refinancing the balance of the Group’s term loan at substantially lower interest rates.
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. The accounting policies have been applied consistently by all Group entities. |
iv) | Basis of consolidation |
v) | Property, plant and equipment |
• Leasehold improvements | 5-15 years | |
• Buildings | 50 years | |
• Office equipment and fittings | 10 years | |
• Computer equipment | 3-5 years | |
• Plant and equipment | 2-15 years |
100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group |
• | the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract |
• | the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use. |
101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
vi) | Goodwill |
vii) | Intangibles, including research and development (other than goodwill) |
102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
• Capitalised development costs | 15 years | |
• Patents and licences | 6-15 years | |
• Other (including acquired customer and supplier lists) | 6-15 years |
(a) | once a diagnostic test becomes established, customers are reluctant to change to new technology until it is fully proven, thus resulting in relatively long product life cycles. There is also reluctance in customers to change to a new product as it can be costly both in terms of the initial changeover cost and as new technology is typically more expensive. |
(b) | demand for the diagnostic tests is enduring and robust within a wide geographic base. The diseases that the products diagnose are widely prevalent (HIV, Diabetes and Chlamydia being just three examples) in many countries. There is a general consensus that these diseases will continue to be widely prevalent in the future. |
(c) | there are significant barriers to new entrants in this industry. Patents and/or licences are in place for |
103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
viii) | Impairment |
104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
ix) | Inventories |
x) | Trade and other receivables |
xi) | Trade and other payables |
xii) | Cash and cash equivalents |
xiii) | Short-term investments |
xiv) | Share-based payments |
105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
xv) | Government grantsand financial support |
xvi) | Revenue recognition |
106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
xvii) | Employee benefits |
xviii) | Foreign currency |
107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
xix) | Hedging |
xx) | Exchangeable notes and derivative financial instruments |
xxi) | Segment reporting |
108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
xxii) | Tax (current and deferred) |
i. | Where the deferred tax liability arises from goodwill not deductible for tax purposes or the initial recognition of an asset or a liability in a transaction that is not a business combination and affects neither the accounting profit nor the taxable profit or loss at the time of the transaction; and |
ii. | Where, in respect of temporary differences associated with investments in subsidiary undertakings, the timing of the reversal of the temporary difference is subject to control and it is probable that the temporary difference will not reverse in the foreseeable future. |
xxiii) | Provisions |
xxiv) | Cost of sales |
xxv) | Finance income and costs |
109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
xxvi) | Treasury shares |
xxvii) | Equity |
xxviii) | Profit or loss from discontinued operations |
xxix) | Fair values |
xxx) | New IFRS Standards and Interpretations not applied |
• | Amendments IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and measurement |
• | IFRS | |||
7 Financial Instruments: Disclosures |
IFRS 4 Insurance Contracts |
IFRS 16 Leases – Interest Rate Benchmark Reform – Phase 2 |
• | Amendments to IFRS 16 – COVID-19-Related Rent Concessions beyond 30 June 2021. The amendment was adopted effective 1 January 2021 and did not result in a material impact on the Group’s results. |
110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Carrying amount at December 31, 2018 | Re-measurement | Impairment | IFRS 16 carrying amount at January 1, 2019 | |||||||||||||
US$000 | US$000 | US$000 | US$000 | |||||||||||||
Property, plant & equipment | 5,362 | 21,185 | (11,099 | ) | 15,448 | |||||||||||
Lease liabilities | (962 | ) | (21,185 | ) | - | (22,147 | ) | |||||||||
Retaining earnings | (55,319 | ) | - | 11,099 | (44,220 | ) | ||||||||||
Total | (50,919 | ) | - | - | (50,919 | ) |
2. | SEGMENT INFORMATION |
i) | The distribution of revenue by geographical area based on location of assets was as follows: |
Rest of World | ||||||||||||||||||||
Revenue | Americas | Ireland | Other | Eliminations | Total | |||||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 64,045 | 26,390 | - | - | 90,435 | |||||||||||||||
Inter-segment revenue | 39,563 | 1,629 | - | (41,192 | ) | - | ||||||||||||||
Total revenue | 103,608 | 28,019 | - | (41,192 | ) | 90,435 |
Rest of World | ||||||||||||||||||||
Americas | Ireland | Other | Eliminations | Total | ||||||||||||||||
Year ended December 31, 2018 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 65,863 | 31,172 | - | - | 97,035 | |||||||||||||||
Inter-segment revenue | 38,665 | 2,899 | - | (41,564 | ) | - | ||||||||||||||
Total revenue | 104,528 | 34,071 | - | (41,564 | ) | 97,035 |
Rest of World | ||||||||||||||||||||
Revenue | Americas | Ireland | Other | Eliminations | Total | |||||||||||||||
Year ended December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 67,249 | 25,716 | 0 | 0 | 92,965 | |||||||||||||||
Inter-segment revenue | 49,059 | 2,517 | 0 | (51,576 | ) | 0 | ||||||||||||||
Total revenue | 116,308 | 28,233 | 0 | (51,576 | ) | 92,965 |
Rest of World | ||||||||||||||||||||
Revenue | Americas | Ireland | Other | Eliminations | Total | |||||||||||||||
Year ended December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 77,688 | 24,292 | 0 | 0 | 101,980 | |||||||||||||||
Inter-segment revenue | 59,304 | 1,095 | 0 | (60,399 | ) | 0 | ||||||||||||||
Total revenue | 136,992 | 25,387 | 0 | (60,399 | ) | 101,980 |
111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. | SEGMENT INFORMATION (CONTINUED) |
Rest of World | ||||||||||||||||||||
Americas | Ireland | Other | Eliminations | Total | ||||||||||||||||
Year ended December 31, 2017 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 66,092 | 33,048 | - | - | 99,140 | |||||||||||||||
Inter-segment revenue | 42,147 | 3,587 | - | (45,734 | ) | - | ||||||||||||||
Total revenue | 108,239 | 36,635 | - | (45,734 | ) | 99,140 |
Rest of World | ||||||||||||||||||||
Americas | Ireland | Other | Eliminations | Total | ||||||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Revenue from external customers | 64,045 | 26,390 | 0 | 0 | 90,435 | |||||||||||||||
Inter-segment revenue | 39,563 | 1,629 | 0 | (41,192 | ) | 0 | ||||||||||||||
Total revenue | 103,608 | 28,019 | 0 | (41,192 | ) | 90,435 |
ii) | The distribution of revenue by customers’ geographical area was as follows: |
Revenue | December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | |||||||||
Americas | 52,183 | 57,559 | 59,539 | |||||||||
Asia / Africa | 27,686 | 29,466 | 27,131 | |||||||||
Europe (including Ireland) * | 10,566 | 10,010 | 12,470 | |||||||||
90,435 | 97,035 | 99,140 |
Revenue | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | |||||||||
Americas | 57,799 | 70,408 | 52,183 | |||||||||
Asia / Africa | 25,504 | 22,567 | 27,686 | |||||||||
Europe (including Ireland) * | 9,662 | 9,005 | 10,566 | |||||||||
92,965 | 101,980 | 90,435 |
* | Revenue from customers in Ireland is not disclosed separately due to the immateriality of these revenues. |
iii) | The distribution of revenue by major product group was as follows: |
Revenue | December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||||||||||
Clinical laboratory | 68,127 | 71,618 | 73,366 | |||||||||||||||||||||
Clinical laboratory goods | 74,700 | 84,280 | 68,127 | |||||||||||||||||||||
Clinical laboratory services | 7,928 | 8,485 | 10,915 | |||||||||||||||||||||
Point-of-Care | 11,393 | 14,836 | 16,774 | 10,337 | 9,215 | 11,393 | ||||||||||||||||||
Laboratory services | 10,915 | 10,581 | 9,000 | |||||||||||||||||||||
90,435 | 97,035 | 99,140 | 92,965 | 101,980 | 90,435 |
iv) | The group has recognised the following amounts relating to revenue in the consolidated statement of operations: |
Revenue | December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | |||||||||
Revenue from contracts with customers (a) | 90,435 | 97,035 | 99,140 | |||||||||
Revenue from other sources | - | - | - | |||||||||
�� | ||||||||||||
90,435 | 97,035 | 99,140 |
Revenue | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | |||||||||
Revenue from contracts with customers (a) | 92,965 | 101,980 | 90,435 | |||||||||
Revenue from other sources | 0 | 0 | 0 | |||||||||
92,965 | 101,980 | 90,435 |
112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(a) | Disaggregation of revenue from contracts with customers: |
Timing of revenue recognition | Americas | Ireland | Other | Total | Americas | Ireland | Other | Total | ||||||||||||||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||||||||||||
Year ended December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||||||||||||
At a point in time | 63,300 | 26,390 | — | 89,690 | 66,806 | 25,716 | 0 | 92,522 | ||||||||||||||||||||||||
Over time | 745 | — | — | 745 | 443 | 0 | 0 | 443 | ||||||||||||||||||||||||
Total | 64,045 | 26,390 | — | 90,435 | 67,249 | 25,716 | 0 | 92,965 |
Timing of revenue recognition | Americas | Ireland | Other | Total | ||||||||||||
Year ended December 31, 2018 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 64,941 | 31,172 | — | 96,113 | ||||||||||||
Over time | 922 | — | — | 922 | ||||||||||||
Total | 65,863 | 31,172 | — | 97,035 |
Timing of revenue recognition | Americas | Ireland | Other | Total | ||||||||||||
Year ended December 31, 2017 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 65,164 | 33,048 | — | 98,212 | ||||||||||||
Over time | 928 | — | — | 928 | ||||||||||||
Total | 66,092 | 33,048 | — | 99,140 |
Timing of revenue recognition | Americas | Ireland | Other | Total | ||||||||||||
Year ended December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 77,060 | 24,292 | 0 | 101,352 | ||||||||||||
Over time | 628 | 0 | 0 | 628 | ||||||||||||
Total | 77,688 | 24,292 | 0 | 101,980 |
Timing of revenue recognition | Americas | Ireland | Other | Total | ||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 63,300 | 26,390 | 0 | 89,690 | ||||||||||||
Over time | 745 | 0 | 0 | 745 | ||||||||||||
Total | 64,045 | 26,390 | 0 | 90,435 |
(b) | The Group derives revenue from the transfer of goods and services over time and at a point in time based on customers’ geographical area as follows: |
Timing of revenue recognition | Americas | Asia / Africa | Europe | Total | Americas | Asia / Africa | Europe | Total | ||||||||||||||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||||||||||||
Year ended December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||||||||||||
At a point in time | 51,438 | 27,686 | 10,566 | 89,690 | 57,356 | 25,504 | 9,662 | 92,522 | ||||||||||||||||||||||||
Over time | 745 | — | — | 745 | 443 | 0 | 0 | 443 | ||||||||||||||||||||||||
Total | 52,183 | 27,686 | 10,566 | 90,435 | 57,799 | 25,504 | 9,662 | 92,965 |
Timing of revenue recognition | Americas | Asia / Africa | Europe | Total | ||||||||||||
Year ended December 31, 2018 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 56,637 | 29,466 | 10,010 | 96,113 | ||||||||||||
Over time | 922 | — | — | 922 | ||||||||||||
Total | 57,559 | 29,466 | 10,010 | 97,035 |
113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. | SEGMENT INFORMATION (CONTINUED) |
Timing of revenue recognition | Americas | Asia / Africa | Europe | Total | ||||||||||||
Year ended December 31, 2017 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 58,611 | 27,131 | 12,470 | 98,212 | ||||||||||||
Over time | 928 | - | - | 928 | ||||||||||||
Total | 59,539 | 27,131 | 12,470 | 99,140 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before impairment and unallocated expenses | 5,239 | (4,334 | ) | (108 | ) | 797 | ||||||||||
Impairment | (14,562 | ) | (9,733 | ) | — | (24,295 | ) | |||||||||
Result after impairment | (9,323 | ) | (14,067 | ) | (108 | ) | (23,498 | ) | ||||||||
Unallocated expenses * | (614 | ) | ||||||||||||||
Operating loss | (24,112 | ) | ||||||||||||||
Net financing expense (Note 8) | (5,885 | ) | ||||||||||||||
Loss before tax | (29,997 | ) | ||||||||||||||
Income tax credit (Note 9) | 1,006 | |||||||||||||||
Loss for the year on continuing operations | (28,991 | ) | ||||||||||||||
Profit for the year on discontinued operations (Note 10) | 77 | |||||||||||||||
Loss for the year | (28,914 | ) |
Timing of revenue recognition | Americas | Asia / Africa | Europe | Total | ||||||||||||
Year ended December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 69,780 | 22,567 | 9,005 | 101,352 | ||||||||||||
Over time | 628 | 0 | 0 | 628 | ||||||||||||
Total | 70,408 | 22,567 | 9,005 | 101,980 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2018 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before impairment and unallocated expenses | 5,514 | 1,900 | (44 | ) | 7,370 | |||||||||||
Impairment | (19,095 | ) | (7,837 | ) | — | (26,932 | ) | |||||||||
Result after impairment | (13,581 | ) | (5,937 | ) | (44 | ) | (19,562 | ) | ||||||||
Unallocated expenses * | (665 | ) | ||||||||||||||
Operating loss | (20,227 | ) | ||||||||||||||
Net financing expense (Note 8) | (2,956 | ) | ||||||||||||||
Loss before tax | (23,183 | ) | ||||||||||||||
Income tax credit (Note 9) | 525 | |||||||||||||||
Loss for the year on continuing operations | (22,658 | ) | ||||||||||||||
Loss for the year on discontinued operations (Note 10) | 568 | |||||||||||||||
Loss for the year | (22,090 | ) |
Timing of revenue recognition | Americas | Asia / Africa | Europe | Total | ||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
At a point in time | 51,438 | 27,686 | 10,566 | 89,690 | ||||||||||||
Over time | 745 | 0 | 0 | 745 | ||||||||||||
Total | 52,183 | 27,686 | 10,566 | 90,435 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before impairment and unallocated expenses | 9,276 | 5,084 | (12 | ) | 14,348 | |||||||||||
Impairment | (6,088 | ) | (856 | ) | 0 | (6,944 | ) | |||||||||
Result after impairment | 3,188 | 4,228 | (12 | ) | 7,404 | |||||||||||
Unallocated expenses * | (779 | ) | ||||||||||||||
Operating profit | 6,625 | |||||||||||||||
Net financing expense (Note 8) | (5,874 | ) | ||||||||||||||
Profit before tax | 751 | |||||||||||||||
Income tax credit (Note 9) | 178 | |||||||||||||||
Profit for the year on continuing operations | 929 | |||||||||||||||
Loss for the year on discontinued operations (Note 10) | (54 | ) | ||||||||||||||
Profit for the year | 875 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before impairment and unallocated expenses | 14,495 | 4,264 | (71 | ) | 18,688 | |||||||||||
Impairment | (17,779 | ) | 0 | 0 | (17,779 | ) | ||||||||||
Result after impairment | (3,284 | ) | 4,264 | (71 | ) | 909 | ||||||||||
Unallocated expenses * | (827 | ) | ||||||||||||||
Operating profit | 82 | |||||||||||||||
Net financing expense (Note 8) | (6,715 | ) | ||||||||||||||
Loss before tax | (6,633 | ) | ||||||||||||||
Income tax credit (Note 9) | 620 | |||||||||||||||
Loss for the year on continuing operations | (6,013 | ) | ||||||||||||||
Loss for the year on discontinued operations (Note 10) | (375 | ) | ||||||||||||||
Loss for the year | (6,388 | ) |
114
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. | SEGMENT INFORMATION (CONTINUED) |
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2017 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before exceptional expenses | 3,744 | 1,125 | (44 | ) | 4,825 | |||||||||||
Impairment | (9,194 | ) | (32,561 | ) | — | (41,755 | ) | |||||||||
Result after exceptional expenses | (5,450 | ) | (31,436 | ) | (44 | ) | (36,930 | ) | ||||||||
Unallocated expenses * | (738 | ) | ||||||||||||||
Operating profit | (37,668 | ) | ||||||||||||||
Net financing expense (Note 8) | (2,207 | ) | ||||||||||||||
Loss before tax | (39,875 | ) | ||||||||||||||
Income tax credit (Note 9) | 1,214 | |||||||||||||||
Loss for the year on continuing operations | (38,661 | ) | ||||||||||||||
Loss for the year on discontinued operations (Note 10) | (1,609 | ) | ||||||||||||||
Loss for the year | (40,270 | ) |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
Year ended December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Result before impairment and unallocated expenses | 5,239 | (4,334 | ) | (108 | ) | 797 | ||||||||||
Impairment | (14,562 | ) | (9,733 | ) | 0 | (24,295 | ) | |||||||||
Result after impairment | (9,323 | ) | (14,067 | ) | (108 | ) | (23,498 | ) | ||||||||
Unallocated expenses * | (614 | ) | ||||||||||||||
Operating loss | (24,112 | ) | ||||||||||||||
Net financing expense (Note 8) | (5,885 | ) | ||||||||||||||
Loss before tax | (29,997 | ) | ||||||||||||||
Income tax credit (Note 9) | 1,006 | |||||||||||||||
Loss for the year on continuing operations | (28,991 | ) | ||||||||||||||
Profit for the year on discontinued operations (Note 10) | 77 | |||||||||||||||
Loss for the year | (28,914 | ) |
* | Unallocated expenses represent head office general and administration costs of the Group, which cannot be allocated to the results of any specific geographical area. |
vi) | The distribution of segment assets and segment liabilities by geographical area was as follows: |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
As at December 31, 2019 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Assets and liabilities | ||||||||||||||||
Segment assets | 69,224 | 37,212 | 1 | 106,437 | ||||||||||||
Unallocated assets: | ||||||||||||||||
Income tax assets (current and deferred) | 8,234 | |||||||||||||||
Cash and cash equivalents and short-term investments | 16,400 | |||||||||||||||
Total assets as reported in the Group balance sheet | 131,071 | |||||||||||||||
Segment liabilities | 14,575 | 104,396 | 200 | 119,171 | ||||||||||||
Unallocated liabilities: | ||||||||||||||||
Income tax liabilities (current and deferred) | 7,187 | |||||||||||||||
Total liabilities as reported in the Group balance sheet | 126,358 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
As at December 31, 2018 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Assets and liabilities | ||||||||||||||||
Segment assets | 75,658 | 38,009 | 4 | 113,671 | ||||||||||||
Unallocated assets: | ||||||||||||||||
Income tax assets (current and deferred) | 7,711 | |||||||||||||||
Cash and cash equivalents and short-term investments | 30,277 | |||||||||||||||
Total assets as reported in the Group balance sheet | 151,659 | |||||||||||||||
Segment liabilities | ||||||||||||||||
Unallocated liabilities: | 8,946 | 90,444 | 150 | 99,540 | ||||||||||||
Income tax liabilities (current and deferred) | 8,065 | |||||||||||||||
Total liabilities as reported in the Group balance sheet | 107,605 |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
As at December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Assets and liabilities | ||||||||||||||||
Segment assets | 45,891 | 41,453 | 1 | 87,345 | ||||||||||||
Unallocated assets: | ||||||||||||||||
Income tax assets (current and deferred) | 5,640 | |||||||||||||||
Cash and cash equivalents and short-term investments | 25,910 | |||||||||||||||
Total assets as reported in the Group balance sheet | 118,895 | |||||||||||||||
Segment liabilities | 12,382 | 101,927 | 25 | 114,334 | ||||||||||||
Unallocated liabilities: | ||||||||||||||||
Income tax liabilities (current and deferred) | 4,880 | |||||||||||||||
Total liabilities as reported in the Group balance sheet | 119,214 |
115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. | SEGMENT INFORMATION (CONTINUED) |
Rest of World | ||||||||||||||||
Americas | Ireland | Other | Total | |||||||||||||
As at December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||
Assets and liabilities | ||||||||||||||||
Segment assets | 58,164 | 37,632 | 3 | 95,799 | ||||||||||||
Unallocated assets: | ||||||||||||||||
Income tax assets (current and deferred) | 7,271 | |||||||||||||||
Cash and cash equivalents and short-term investments | 27,327 | |||||||||||||||
Total assets as reported in the Group balance sheet | 130,397 | |||||||||||||||
Segment liabilities | 20,431 | 107,080 | 46 | 127,557 | ||||||||||||
Unallocated liabilities: | ||||||||||||||||
Income tax liabilities (current and deferred) | 5,059 | |||||||||||||||
Total liabilities as reported in the Group balance sheet | 132,616 |
vii) | The distribution of long-lived assets, which are property, plant and equipment, goodwill and intangible assets and other non-current assets (excluding deferred tax |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Rest of World – Ireland | 14,626 | 14,864 | ||||||
Americas | 38,803 | 44,007 | ||||||
53,429 | 58,871 |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Rest of World – Ireland | 22,617 | 19,927 | ||||||
Americas | 19,489 | 22,835 | ||||||
42,106 | 42,762 |
viii) | The distribution of depreciation and amortisation by geographical area was as follows: |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Depreciation: | ||||||||||||
Rest of World – Ireland | 322 | 74 | 1,186 | |||||||||
Americas | 2,208 | 1,301 | 1,238 | |||||||||
2,530 | 1,375 | 2,424 | ||||||||||
Amortisation: | ||||||||||||
Rest of World – Ireland | 642 | 655 | 1,164 | |||||||||
Americas | 1,726 | 2,170 | 2,139 | |||||||||
2,368 | 2,825 | 3,303 |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Depreciation: | ||||||||||||
Rest of World – Ireland | 204 | 127 | 322 | |||||||||
Americas | 1,662 | 1,587 | 2,208 | |||||||||
1,866 | 1,714 | 2,530 | ||||||||||
Amortisation: | ||||||||||||
Rest of World – Ireland | 69 | 32 | 642 | |||||||||
Americas | 848 | 1,371 | 1,726 | |||||||||
917 | 1,403 | 2,368 |
ix) | The distribution of share-based payment expense by geographical area was as follows: |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Rest of World – Ireland | 1,072 | 722 | 659 | |||||||||
Americas | 28 | 70 | 99 | |||||||||
1,100 | 792 | 758 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Rest of World – Ireland | 659 | 1,265 | 841 | |||||||||
Americas | 99 | 104 | 87 | |||||||||
758 | 1,369 | 928 | ||||||||||
Share based-payments – discontinued operations | — | — | — | |||||||||
758 | 1,369 | 928 |
116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. | SEGMENT INFORMATION (CONTINUED) |
x) |
Rest of World | ||||||||||||||||||||
Interest Income Year ended December 31, 2019 | Americas US$‘000 | Ireland US$‘000 | Other US$‘000 | Eliminations US$‘000 | Total US$‘000 | |||||||||||||||
Interest income earned | 47 | 417 | — | — | 464 | |||||||||||||||
Non-cash financial income | — | 233 | — | — | 233 | |||||||||||||||
Inter-segment interest income | — | — | 4,853 | (4,853 | ) | — | ||||||||||||||
Total | 47 | 650 | 4,853 | (4,853 | ) | 697 |
Rest of World | ||||||||||||||||||||
Interest Expense Year ended December 31, 2019 | Americas US$‘000 | Ireland US$‘000 | Other US$‘000 | Eliminations US$‘000 | Total US$’000 | |||||||||||||||
Interest on finance leases | 294 | 653 | — | — | 947 | |||||||||||||||
Interest on tax audit settlement (Note 6) | — | 1,000 | — | — | 1,000 | |||||||||||||||
Cash interest on exchangeable notes | — | 3,996 | — | — | 3,996 | |||||||||||||||
Non-cash interest on exchangeable notes ( Note 25) | — | 639 | — | — | 639 | |||||||||||||||
Inter-segment interest expense | 4,853 | — | — | (4,853 | ) | — | ||||||||||||||
Total | 5,147 | 6,288 | — | (4,853 | ) | 6,582 |
Rest of World | ||||||||||||||||||||
Interest Income Year ended December 31, 2018 | Americas | Ireland | Other | Eliminations | Total | |||||||||||||||
US$‘000 | �� | US$‘000 | US$‘000 | US$’000 | US$‘000 | |||||||||||||||
Interest income earned | 32 | 704 | — | — | 736 | |||||||||||||||
Non-cash financial income | — | 1,388 | — | — | 1,388 | |||||||||||||||
Inter-segment interest income | — | — | 4,853 | (4,853 | ) | — | ||||||||||||||
Total | 32 | 2,092 | 4,853 | (4,853 | ) | 2,124 |
Rest of World | ||||||||||||||||||||
Interest Expense Year ended December 31, 2018 | Americas US$‘000 | Ireland US$‘000 | Other US$‘000 | Eliminations US$’000 | Total US$‘000 | |||||||||||||||
Interest on finance leases | 7 | 32 | — | — | 39 | |||||||||||||||
Cash interest on exchangeable notes | — | 4,352 | — | — | 4,352 | |||||||||||||||
Non-cash interest on exchangeable notes ( Note 25) | — | 689 | — | — | 689 | |||||||||||||||
Inter-segment interest expense | 4,853 | — | — | (4,853 | ) | — | ||||||||||||||
Total | 4,860 | 5,073 | — | (4,853 | ) | 5,080 |
Rest of World | ||||||||||||||||||||
Interest Income Year ended December 31, 2017 | Americas US$‘000 | Ireland US$‘000 | Other US$‘000 | Eliminations US$’000 | Total US$‘000 | |||||||||||||||
Interest income earned | 44 | 764 | — | — | 808 | |||||||||||||||
Non-cash financial income | — | 2,390 | — | — | 2,390 | |||||||||||||||
Inter-segment interest income | — | — | 4,853 | (4,853 | ) | — | ||||||||||||||
Total | 44 | 3,154 | 4,853 | (4,853 | ) | 3,198 |
Rest of World | ||||||||||||||||||||
Interest Expense Year ended December 31, 2017 | Americas US$‘000 | Ireland US$‘000 | Other US$‘000 | Eliminations US$’000 | Total US$‘000 | |||||||||||||||
Interest on deferred consideration and licence fee | — | 40 | — | — | 40 | |||||||||||||||
Interest on finance leases | — | 42 | — | — | 42 | |||||||||||||||
Cash interest on exchangeable notes | — | 4,600 | — | — | 4,600 | |||||||||||||||
Non-cash interest on exchangeable notes (Note 25) | — | 723 | — | — | 723 | |||||||||||||||
Inter-segment interest expense | 4,853 | — | — | (4,853 | ) | — | ||||||||||||||
Total | 4,853 | 5,405 | — | (4,853 | ) | 5,405 |
The distribution of taxation (expense)/credit by geographical area was as follows: |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Rest of World – Ireland | 540 | 293 | 831 | |||||||||
Rest of World – Other | (2 | ) | (8 | ) | 0 | |||||||
Americas | (360 | ) | 335 | 175 | ||||||||
178 | 620 | 1,006 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Rest of World – Ireland | 831 | (59 | ) | 192 | ||||||||
Rest of World – Other | — | (3 | ) | (81 | ) | |||||||
Americas | 175 | 587 | 1,103 | |||||||||
1,006 | 525 | 1,214 |
During |
The distribution of capital expenditure by geographical area was as follows: |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Rest of World – Ireland | 3,826 | 5,609 | ||||||
Rest of World – Other | 0 | 0 | ||||||
Americas | 4,776 | 4,317 | ||||||
8,602 | 9,926 |
3. | EMPLOYMENT |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Rest of World – Ireland | 20,758 | 7,148 | ||||||
Rest of World – Other | - | 1,746 | ||||||
Americas | 12,863 | 8,911 | ||||||
33,621 | 17,805 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Research and development | 41 | 52 | 57 | |||||||||
Administration and sales | 134 | 148 | 159 | |||||||||
Manufacturing and quality | 302 | 343 | 363 | |||||||||
477 | 543 | 579 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Wages and salaries | 25,885 | 26,475 | 26,316 | |||||||||
Social welfare costs | 2,538 | 2,585 | 2,424 | |||||||||
Pension costs | 503 | 490 | 459 | |||||||||
Tax settlement (Note 6) | 5,094 | — | — | |||||||||
Share-based payments | 758 | 1,369 | 928 | |||||||||
34,778 | 30,919 | 30,127 |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Wages and salaries | 26,561 | 26,187 | 25,885 | |||||||||
Social welfare costs | 2,403 | 2,195 | 2,538 | |||||||||
Pension costs | 352 | 447 | 503 | |||||||||
Tax settlement (Note 6) | 0 | 0 | 5,094 | |||||||||
Share-based payments | 1,100 | 792 | 758 | |||||||||
Restructuring Cost | 270 | 388 | 0 | |||||||||
Recognition of contingent asset (Note 26) | 0 | (1,316 | ) | 0 | ||||||||
30,686 | 28,693 | 34,778 |
117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Research and development | 57 | 59 | 60 | |||||||||
Administration and sales | 159 | 163 | 162 | |||||||||
Manufacturing and quality | 363 | 353 | 334 | |||||||||
579 | 575 | 556 |
4. | OTHER OPERATING INCOME |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Government supports - COVID-19 | 4,668 | 1,840 | 0 | |||||||||
Other income | 0 | 17 | 88 | |||||||||
Rental income from premises | 4 | 3 | 3 | |||||||||
4,672 | 1,860 | 91 |
5. |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Rental income from premises | 3 | 3 | - | |||||||||
Other income | 88 | 99 | 100 | |||||||||
91 | 102 | 100 |
6. | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES – TAX AUDIT SETTLEMENT |
118
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6. | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES – TAX AUDIT SETTLEMENT (CONTINUED) |
7. | IMPAIRMENT CHARGES |
December | December | December | December | December | December | |||||||||||||||||||
31, 2019 | 31, 2018 | 31, 2017 | 31, 2021 | 31, 2020 | 31, 2019 | |||||||||||||||||||
US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | |||||||||||||||||||
Selling, general & administration expenses | ||||||||||||||||||||||||
Impairment of PP&E (Note 13) | 6,349 | 6,112 | 10,437 | 2,508 | 1,795 | 6,349 | ||||||||||||||||||
Impairment of goodwill and other intangible assets (Note 14) | 16,570 | 19,212 | 29,667 | 3,853 | 15,422 | 16,570 | ||||||||||||||||||
Impairment of prepayments (Note 18) | 1,376 | 1,608 | 1,651 | 583 | 562 | 1,376 | ||||||||||||||||||
Total impairment loss | 24,295 | 26,932 | 41,755 | 6,944 | 17,779 | 24,295 | ||||||||||||||||||
( | ||||||||||||||||||||||||
Income tax impact of impairment loss | 148 | (1,752 | ) | (517 | ) | 0 | 0 | 148 | ||||||||||||||||
Total impairment loss after tax | 24,443 | 25,180 | 41,238 | 6,944 | 17,779 | 24,443 |
8. | FINANCIAL INCOME AND EXPENSES |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | |||||||||||||||||||
Financial income: | ||||||||||||||||||||||||
Non-cash financial income | 233 | 1,388 | 2,390 | 1,220 | 0 | 233 | ||||||||||||||||||
Interest income | 464 | 736 | 808 | 3 | 36 | 464 | ||||||||||||||||||
697 | 2,124 | 3,198 | 1,223 | 36 | 697 | |||||||||||||||||||
Financial expense: | ||||||||||||||||||||||||
Interest on leases | (947 | ) | (39 | ) | (42 | ) | (815 | ) | (896 | ) | (947 | ) | ||||||||||||
Interest on tax audit settlement (Note 6) | (1,000 | ) | - | - | 0 | 0 | (1,000 | ) | ||||||||||||||||
Cash interest on exchangeable notes | (3,996 | ) | (4,352 | ) | (4,600 | ) | (3,996 | ) | (3,996 | ) | (3,996 | ) | ||||||||||||
Non-cash interest on exchangeable notes (Note 25) | (639 | ) | (689 | ) | (723 | ) | ||||||||||||||||||
Interest on deferred consideration and licence fee | - | - | (40 | ) | ||||||||||||||||||||
Loan origination costs | (1,638 | ) | 0 | 0 | ||||||||||||||||||||
Non-cash interest on exchangeable notes (Note 24) | (648 | ) | (643 | ) | (639 | ) | ||||||||||||||||||
Non-cash financial expense | 0 | (1,216 | ) | 0 | ||||||||||||||||||||
(6,582 | ) | (5,080 | ) | (5,405 | ) | (7,097 | ) | (6,751 | ) | (6,582 | ) | |||||||||||||
Net Financing Expense | (5,885 | ) | (2,956 | ) | (2,207 | ) | (5,874 | ) | (6,715 | ) | (5,885 | ) |
119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9. | INCOME TAX CREDIT |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Current tax (credit)/expense | ||||||||||||
Irish Corporation tax | (511 | ) | (480 | ) | (312 | ) | ||||||
Foreign taxes (a) | 296 | 179 | 197 | |||||||||
Adjustment in respect of prior years | 0 | (152 | ) | (50 | ) | |||||||
Total current tax credit | (215 | ) | (453 | ) | (165 | ) | ||||||
Deferred tax credit (b) | ||||||||||||
Origination and reversal of temporary differences (see Note 15) | 620 | 48 | (625 | ) | ||||||||
Origination and reversal of net operating losses (see Note 15) | (583 | ) | (215 | ) | (216 | ) | ||||||
Total deferred tax credit | 37 | (167 | ) | (841 | ) | |||||||
Total income tax credit on continuing operations in statement of operations | (178 | ) | (620 | ) | (1,006 | ) | ||||||
Tax charge on discontinued operations (see Note 10) | 12 | 438 | 0 | |||||||||
Total tax credit | (166 | ) | (182 | ) | (1,006 | ) |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Current tax (credit)/expense | ||||||||||||
Irish Corporation tax | (312 | ) | (258 | ) | (51 | ) | ||||||
Foreign taxes (a) | 197 | 195 | 358 | |||||||||
Adjustment in respect of prior years | (50 | ) | (56 | ) | 150 | |||||||
Total current tax (credit)/expense | (165 | ) | (119 | ) | 457 | |||||||
Deferred tax credit (b) | ||||||||||||
Origination and reversal of temporary differences (see Note 15) | (841 | ) | (2,031 | ) | (5,969 | ) | ||||||
Origination and reversal of net operating losses (see Note 15) | - | 1,625 | 4,298 | |||||||||
Total deferred tax credit | (841 | ) | (406 | ) | (1,671 | ) | ||||||
Total income tax credit on continuing operations in statement of operations | (1,006 | ) | (525 | ) | (1,214 | ) | ||||||
Tax (credit)/charge on discontinued operations (see Note 10) | - | (590 | ) | 323 | ||||||||
00 | ||||||||||||
Total tax credit | (1,006 | ) | (1,115 | ) | (891 | ) |
(a) | In |
(b) | In |
Effective tax rate | December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | |||||||||
Loss before taxation | (29,997 | ) | (23,183 | ) | (39,875 | ) | ||||||
As a percentage of loss before tax: | ||||||||||||
Current tax | (0.55 | )% | (0.51 | )% | 1.14 | % | ||||||
Total (current and deferred) | (3.36 | )% | (2.26 | )% | (3.05 | )% |
Effective tax rate | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Profit/(Loss) before taxation – continuing operations (US$‘000) | 751 | (6,633 | ) | (29,997 | ) | |||||||
As a percentage of loss before tax: | ||||||||||||
Current tax % | 28.63 | % | (6.83 | )% | (0.55 | )% | ||||||
Total (current and deferred) % | (23.70 | )% | (9.35 | )% | (3.36 | )% |
120
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9. | INCOME TAX CREDIT (CONTINUED) |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Irish corporation tax | (12.5 | )% | (12.5 | )% | (12.5 | )% | ||||||
Effect of current year net operating losses and temporary differences for which no deferred tax asset was recognised (a) | 13.21 | % | 15.76 | % | 12.05 | % | ||||||
Effect of tax rates on overseas earnings | (3.05 | )% | (6.10 | )% | (2.09 | )% | ||||||
Effect of Irish income taxable at higher tax rate | 0.04 | % | 0.05 | % | - | |||||||
Adjustments in respect of prior years | (0.17 | )% | 0.94 | % | 0.38 | % | ||||||
Effect of changes in US tax code (b) | - | - | (1.89 | )% | ||||||||
R&D tax credits | (2.69 | )% | (1.70 | )% | (0.17 | )% | ||||||
Other items (c) | 1.80 | % | 1.29 | % | 1.17 | % | ||||||
Effective tax rate | (3.36 | )% | (2.26 | )% | (3.05 | )% |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Irish corporation tax | 12.5 | % | (12.5 | )% | (12.5 | )% | ||||||
Effect of current year net operating losses and temporary differences for which no deferred tax asset was recognised (a) | 49.63 | % | 24.13 | % | 13.21 | % | ||||||
Effect of tax rates on overseas earnings | (0.22 | )% | (9.92 | )% | (3.05 | )% | ||||||
Effect of Irish income taxable at higher tax rate | 98.68 | % | 5.92 | % | 0.04 | % | ||||||
Adjustments in respect of prior years | (0.01 | )% | (10.66 | )% | (0.17 | )% | ||||||
R&D tax credits | (79.22 | )% | (11.00 | )% | (2.69 | )% | ||||||
Other items (b) | (105.06 | )% | 4.68 | % | 1.80 | % | ||||||
Effective tax rate | (23.70 | )% | (9.35 | )% | (3.36 | )% |
(a) |
(b) |
Other items comprise items not chargeable to tax/expenses not deductible for tax purposes. In |
Unrecognised deferred tax assets – continuing operations | Effect in 2019 US$’000 | Percentage effect in 2019 | Effect in 2018 US$’000 | Percentage effect in 2018 | ||||||||||||
Increase in net operating losses arising in US | 1,117 | 3.72 | % | 2,174 | 9.38 | % | ||||||||||
Temporary differences arising in US | 129 | 0.43 | % | 19 | 0.08 | % | ||||||||||
Decrease in net operating losses arising in Brazil | 608 | 2.03 | % | (20 | ) | (0.09 | )% | |||||||||
Increase in net operating losses arising in Ireland | 2,110 | 7.03 | % | 1,482 | 6.39 | % | ||||||||||
3,964 | 13.21 | % | 3,655 | 15.76 | % |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | |||||||||||||||||||
Rest of World – Ireland | (20,318 | ) | (9,590 | ) | (35,821 | ) | 1,862 | 296 | (20,318 | ) | ||||||||||||||
Rest of World – Other | 4,760 | 4,809 | 4,809 | 3,939 | 3,304 | 4,760 | ||||||||||||||||||
Americas | (14,439 | ) | (18,402 | ) | (8,863 | ) | (5,050 | ) | (10,233 | ) | (14,439 | ) | ||||||||||||
(29,997 | ) | (23,183 | ) | (39,875 | ) | 751 | (6,633 | ) | (29,997 | ) |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
USA | 1,034 | 2,382 | 7,737 | |||||||||
Ireland | 73,754 | 60,629 | 57,206 | |||||||||
Brazil | 5,789 | 4,001 | 4,060 | |||||||||
80,577 | 67,012 | 69,003 |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Rest of World – Ireland | 68,132 | 78,700 | 73,754 | |||||||||
Rest of World – Other | 1,000 | 2,185 | 0 | |||||||||
Americas | 4,761 | 4,313 | 6,823 | |||||||||
73,893 | 85,198 | 80,577 |
121
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9. | INCOME TAX |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Ireland – unused tax losses | 12,062 | 9,953 | 8,471 | |||||||||
US – unused tax losses | 3,291 | 2,174 | - | |||||||||
US – unused tax credits | 493 | 364 | 345 | |||||||||
Brazil – unused tax losses | 1,968 | 1,360 | 1,380 | |||||||||
Unrecognised deferred tax asset | 17,814 | 13,851 | 10,196 |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Rest of World – Ireland – unused tax losses | 9,272 | 12,514 | 12,062 | |||||||||
Rest of World – Other – unused tax losses | 279 | 546 | 0 | |||||||||
Americas – unused tax losses | 5,891 | 1,466 | 5,259 | |||||||||
Americas – unused tax credits | 3,368 | 2,862 | 493 | |||||||||
Unrecognised deferred tax asset | 18,810 | 17,388 | 17,814 |
10. | (LOSS)/PROFIT |
122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10. | (LOSS)/PROFIT |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
(Loss)/Profit on re-measurement of assets and liabilities: | ||||||||||||
Closure provision | (42 | ) | 127 | (8 | ) | |||||||
Foreign currency translation reserve | 0 | (64 | ) | 85 | ||||||||
Tax (expense)/credit | (12 | ) | (438 | ) | 0 | |||||||
Total (loss)/profit | (54 | ) | (375 | ) | 77 | |||||||
(Loss)/Profit for the year from discontinued operations | (54 | ) | (375 | ) | 77 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Revenues | — | — | — | |||||||||
Operating loss | — | — | — | |||||||||
Loss for the year | — | — | — | |||||||||
Profit/(Loss) on re-measurement of assets and liabilities: | ||||||||||||
Closure costs | (8 | ) | (22 | ) | 1,794 | |||||||
Foreign currency translation reserve | 85 | — | (3,080 | ) | ||||||||
Tax credit/(expense) | — | 590 | (323 | ) | ||||||||
Total profit/(loss) | 77 | 568 | (1,609 | ) | ||||||||
Profit/(Loss) for the year from discontinued operations | 77 | 568 | (1,609 | ) |
Basic earnings/(loss)/earnings per ADS for discontinued operations is computed by dividing the profitloss after taxation on discontinued operations of US$77,000 (2018:54,000 (2020: loss US$375,000) (2019: profit US$568,000) (2017: loss US$1,609,000)77,000) for the financial year by the weighted average number of ADS in issue of 20,901,703 (2018: 20,903,227); (2017: 21,621,602)(2020: 20,901,703) (2019: 20,901,703), see note 12 for further details.
123
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(LOSS)/PROFIT FOR THE YEAR ON DISCONTINUED OPERATION (CONTINUED) |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Basic earnings/(loss) per ADS (US Dollars) – discontinued operations | 0.00 | 0.03 | (0.07 | ) | ||||||||
Diluted earnings/(loss per ADS (US Dollars) – discontinued operations | 0.00 | 0.02 | (0.07 | ) | ||||||||
Basic earnings/(loss) per ‘A’ share (US Dollars) – discontinued operations | 0.00 | 0.01 | (0.02 | ) | ||||||||
Diluted earnings/(loss) per ‘A’ share (US Dollars) – discontinued operations | 0.00 | 0.01 | (0.02 | ) |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Basic earnings/(loss) per ADS (US Dollars) – discontinued operations | 0.00 | (0.02 | ) | 0.00 | ||||||||
Diluted earnings/(loss) per ADS (US Dollars) – discontinued operations | 0.00 | (0.02 | ) | 0.00 | ||||||||
Basic earnings/(loss) per ‘A’ share (US Dollars) – discontinued operations | 0.00 | 0.00 | 0.00 | |||||||||
Diluted earnings/(loss) per ‘A’ share (US Dollars) – discontinued operations | 0.00 | 0.00 | 0.00 |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
US$000 | US$000 | US$000 | ||||||||||
Cash flows from operating activities | (5 | ) | 527 | (2,847 | ) | |||||||
Cash flows from investing activities | - | - | - |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
US$000 | US$000 | US$000 | ||||||||||
Cash flows from operating activities | (40 | ) | (22 | ) | (5 | ) |
11. | PROFIT/LOSS BEFORE TAX |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Directors’ emoluments (including non- executive directors): | ||||||||||||
Remuneration | 1,238 | 1,261 | 1,800 | |||||||||
Pension | 42 | 44 | 44 | |||||||||
Share based payments | 624 | 1,204 | 727 | |||||||||
Auditor’s remuneration | ||||||||||||
Audit fees | 523 | 506 | 568 | |||||||||
Tax fees | 172 | 15 | 73 | |||||||||
Other non-audit fees | - | - | - | |||||||||
Depreciation* | 2,526 | 1,296 | 1,896 | |||||||||
Amortisation | 2,368 | 2,825 | 3,303 | |||||||||
Loss on the disposal of property, plant and equipment | 17 | 15 | 3 | |||||||||
Net foreign exchange differences** | (179 | ) | 344 | (17 | ) |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Directors’ emoluments (including non- executive directors): | ||||||||||||
Remuneration | 1,390 | 2,020 | 1,238 | |||||||||
Pension | 24 | 41 | 42 | |||||||||
Share based payments | 986 | 678 | 624 | |||||||||
Auditor’s remuneration | ||||||||||||
Audit fees | 549 | 533 | 523 | |||||||||
Tax fees | 77 | 146 | 172 | |||||||||
Other non-audit fees | 31 | 25 | 0 | |||||||||
Depreciation* | 1,827 | 1,674 | 2,526 | |||||||||
Amortisation (Note 14) | 917 | 1,403 | 2,368 | |||||||||
(Gain)/Loss on the disposal of property, plant and equipment | (1 | ) | 30 | 17 | ||||||||
Net foreign exchange differences | (789 | ) | 583 | (179 | ) |
* | Note that US$ |
124
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. | PROFIT/(LOSS) PER SHARE |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
‘A’ ordinary shares | 83,606,810 | 83,612,908 | 86,486,409 | |||||||||
Basic earnings per share denominator | 83,606,810 | 83,612,908 | 86,486,409 | |||||||||
Reconciliation to weighted average earnings per share denominator: | ||||||||||||
Number of ‘A’ ordinary shares at January 1 (Note 21) | 96,162,410 | 96,162,410 | 96,162,410 | |||||||||
Weighted average number of shares issued during the year* | - | - | ||||||||||
Weighted average number of treasury shares | (12,555,600 | ) | (12,549,502 | ) | (9,676,001 | ) | ||||||
Basic earnings per share denominator | 83,606,810 | 83,612,908 | 86,486,409 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
‘A’ ordinary shares | 83,606,810 | 83,606,810 | 83,606,810 | |||||||||
Basic earnings per share denominator | 83,606,810 | 83,606,810 | 83,606,810 | |||||||||
Reconciliation to weighted average earnings per share denominator: | ||||||||||||
Number of ‘A’ ordinary shares at January 1 (Note 20) | 96,162,410 | 96,162,410 | 96,162,410 | |||||||||
Weighted average number of shares issued during the year* | 0 | 0 | 0 | |||||||||
Weighted average number of treasury shares | (12,555,600 | ) | (12,555,600 | ) | (12,555,600 | ) | ||||||
Basic earnings per share denominator | 83,606,810 | 83,606,810 | 83,606,810 |
Under IAS 33 Earnings per Share, diluted earnings per share cannot be anti-dilutive. Therefore, diluted loss per ordinary share in accordance with IFRS would be equal to basic loss per ordinary share when a loss occurs.
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Basic earnings per share denominator (see above) | 83,606,810 | 83,606,810 | 83,606,810 | |||||||||
Issuable on exercise of options and warrants | 4,648,586 | 3,154,668 | 0 | |||||||||
Issuable on conversion of exchangeable notes | 18,263,254 | 18,263,254 | 18,263,254 | |||||||||
Diluted earnings per share denominator | 106,518,650 | 105,024,732 | 101,870,064 |
125
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. | PROFIT/(LOSS) PER SHARE (CONTINUED) |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Profit/(Loss) after tax for the year | 875 | (6,388 | ) | (28,914 | ) | |||||||
Non-cash financial (income)/expense (Note 8) | (1,220 | ) | 1,216 | (233 | ) | |||||||
Cash interest expense (Note 8) | 3,996 | 3,996 | 3,996 | |||||||||
Non-cash interest on exchangeable notes (Note 8) | 648 | 643 | 639 | |||||||||
Adjusted profit/(loss) after tax | 4,299 | (533 | ) | (24,512 | ) |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
ADS | 20,901,703 | 20,901,703 | 20,901,703 | |||||||||
Basic earnings per share denominator | 20,901,703 | 20,901,703 | 20,901,703 | |||||||||
Reconciliation to weighted average earnings per share denominator: | ||||||||||||
Number of ADS at January 1 (Note 20) | 24,040,602 | 24,040,602 | 24,040,602 | |||||||||
Weighted average number of shares issued during the year* | 0 | 0 | 0 | |||||||||
Weighted average number of treasury shares | (3,138,899 | ) | (3,138,899 | ) | (3,138,899 | ) | ||||||
Basic earnings per share denominator | 20,901,703 | 20,901,703 | 20,901,703 |
Under IAS 33 Earnings per Share, diluted earnings per share cannot be anti-dilutive. Therefore, diluted earnings/(loss) per ADS in accordance with IFRS would be equal to basic loss per ADS when a loss occurs.
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Basic earnings per share denominator (see above) | 83,606,810 | 83,612,908 | 86,486,409 | |||||||||
Issuable on exercise of options and warrants | - | 22,359 | - | |||||||||
Issuable on conversion of exchangeable notes | 18,263,254 | 19,873,553 | 21,023,770 | |||||||||
Diluted earnings per share denominator | 101,870,064 | 103,508,820 | 107,510,179 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Loss after tax for the year | (28,914 | ) | (22,090 | ) | (40,270 | ) | ||||||
Non-cash financial income (Note 8) | (233 | ) | (1,388 | ) | (2,390 | ) | ||||||
Cash interest expense (Note 8) | 3,996 | 4,352 | 4,600 | |||||||||
Non-cash interest on exchangeable notes (Note 8) | 639 | 689 | 723 | |||||||||
Adjusted loss after tax | (24,512 | ) | (18,437 | ) | (37,337 | ) |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
ADS | 20,901,703 | 20,903,227 | 21,621,602 | |||||||||
Basic earnings per share denominator | 20,901,703 | 20,903,227 | 21,621,602 | |||||||||
Reconciliation to weighted average earnings per share denominator: | ||||||||||||
Number of ADS at January 1 (Note 21) | 24,040,602 | 24,040,602 | 24,040,602 | |||||||||
Weighted average number of shares issued during the year* | - | - | - | |||||||||
Weighted average number of treasury shares | (3,138,899 | ) | (3,137,375 | ) | (2,419,000 | ) | ||||||
Basic earnings per share denominator | 20,901,703 | 20,903,227 | 21,621,602 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Basic earnings per share denominator (see above) | 20,901,703 | 20,901,703 | 20,901,703 | |||||||||
Issuable on exercise of options and warrants | 1,162,146 | 788,666 | 0 | |||||||||
Issuable on conversion of exchangeable notes | 4,565,814 | 4,565,814 | 4,565,814 | |||||||||
Diluted earnings per share denominator | 26,629,663 | 26,256,183 | 25,467,517 |
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Basic earnings per share denominator (see above) | 20,901,703 | 20,903,227 | 21,621,602 | |||||||||
Issuable on exercise of options and warrants | - | 5,590 | - | |||||||||
Issuable on conversion of exchangeable notes | 4,565,814 | 4,968,388 | 5,255,942 | |||||||||
Diluted earnings per share denominator | 25,467,517 | 25,877,205 | 26,877,544 |
126
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. | PROPERTY, PLANT AND EQUIPMENT |
Land and buildings US$‘000 | Leasehold improvements US$‘000 | Computers, fixtures and fittings US$‘000 | Plant and equipment US$‘000 | Total US$‘000 | ||||||||||||||||
Cost | ||||||||||||||||||||
At January 1, 2018 | 2,624 | 3,004 | 5,894 | 37,895 | 49,417 | |||||||||||||||
Additions | 19 | 1,609 | 829 | 5,068 | 7,525 | |||||||||||||||
Disposals or retirements | — | (1 | ) | (131 | ) | (1,804 | ) | (1,936 | ) | |||||||||||
Exchange adjustments | (38 | ) | (52 | ) | (7 | ) | (1,095 | ) | (1,192 | ) | ||||||||||
At December 31, 2018 | 2,605 | 4,560 | 6,585 | 40,064 | 53,814 | |||||||||||||||
At January 1, 2019 | 2,605 | 4,560 | 6,585 | 40,064 | 53,814 | |||||||||||||||
Adjustment on transition to IFRS 16 | 20,961 | — | 149 | 75 | 21,185 | |||||||||||||||
Additions | 681 | 71 | 168 | 1,905 | 2,825 | |||||||||||||||
Disposals or retirements | — | (1,626 | ) | (2,610 | ) | (3,314 | ) | (7,550 | ) | |||||||||||
Exchange adjustments | 22 | — | — | (54 | ) | (32 | ) | |||||||||||||
At December 31, 2019 | 24,269 | 3,005 | 4,292 | 38,676 | 70,242 | |||||||||||||||
Accumulated depreciation and impairment losses | ||||||||||||||||||||
At January 1, 2018 | (1,283 | ) | (2,659 | ) | (5,308 | ) | (34,367 | ) | (43,617 | ) | ||||||||||
Charge for the year | (80 | ) | (47 | ) | (185 | ) | (1,063 | ) | (1,375 | ) | ||||||||||
Impairment loss | (578 | ) | (543 | ) | (423 | ) | (4,568 | ) | (6,112 | ) | ||||||||||
Disposals or retirements | — | — | 130 | 1,679 | 1,809 | |||||||||||||||
Exchange adjustments | 7 | 6 | 3 | 827 | 843 | |||||||||||||||
At December 31, 2018 | (1,934 | ) | (3,243 | ) | (5,783 | ) | (37,492 | ) | (48,452 | ) | ||||||||||
At January 1, 2019 | (1,934 | ) | (3,243 | ) | (5,783 | ) | (37,492 | ) | (48,452 | ) | ||||||||||
Charge for the year | (1,545 | ) | (105 | ) | (200 | ) | (680 | ) | (2,530 | ) | ||||||||||
Adjustment on transition to IFRS 16 | (10,984 | ) | — | (40 | ) | (75 | ) | (11,099 | ) | |||||||||||
Impairment loss as at December 31, 2019 | (4,024 | ) | (233 | ) | (276 | ) | (1,816 | ) | (6,349 | ) | ||||||||||
Disposals or retirements | — | 1,544 | 2,618 | 3,331 | 7,493 | |||||||||||||||
Reallocations / reclassifications | — | — | — | (5 | ) | (5 | ) | |||||||||||||
Exchange adjustments | (6 | ) | — | (1 | ) | (3 | ) | (10 | ) | |||||||||||
At December 31, 2019 | (18,493 | ) | (2,037 | ) | (3,682 | ) | (36,740 | ) | (60,952 | ) | ||||||||||
Carrying amounts | ||||||||||||||||||||
At December 31, 2019 | 5,776 | 968 | 610 | 1,936 | 9,290 | |||||||||||||||
At December 31, 2018 | 671 | 1,317 | 802 | 2,572 | 5,362 |
Land & Buildings US$‘000 | Leasehold Improvements US$‘000 | Computer & Office Equipment US$‘000 | Plant & Equipment US$‘000 | Total US$‘000 | ||||||||||||||||
Cost | ||||||||||||||||||||
At January 1, 2020 | 24,269 | 3,005 | 4,292 | 38,676 | 70,242 | |||||||||||||||
Additions | 8 | 41 | 96 | 2,766 | 2,911 | |||||||||||||||
Disposals or retirements | 0 | (299 | ) | (66 | ) | (5,758 | ) | (6,123 | ) | |||||||||||
Exchange adjustments | 10 | (77 | ) | (13 | ) | (1,845 | ) | (1,925 | ) | |||||||||||
At December 31, 2020 | 24,287 | 2,670 | 4,309 | 33,839 | 65,105 | |||||||||||||||
At January 1, 2021 | 24,287 | 2,670 | 4,309 | 33,839 | 65,105 | |||||||||||||||
Additions | 46 | 126 | 144 | 1,392 | 1,708 | |||||||||||||||
Disposals or retirements | 0 | (186 | ) | (255 | ) | (2,410 | ) | (2,851 | ) | |||||||||||
Reallocations/ reclassifications | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Exchange adjustments | 1 | (18 | ) | 2 | (484 | ) | (499 | ) | ||||||||||||
At December 31, 2021 | 24,334 | 2,592 | 4,200 | 32,337 | 63,463 | |||||||||||||||
Accumulated amortisation and Impairment losses | ||||||||||||||||||||
At January 1, 2020 | (18,493 | ) | (2,037 | ) | (3,682 | ) | (36,740 | ) | (60,952 | ) | ||||||||||
Charge for the year | (783 | ) | (146 | ) | (181 | ) | (604 | ) | (1,714 | ) | ||||||||||
Impairment losses as at December 31, 2020 | (347 | ) | (78 | ) | (180 | ) | (1,190 | ) | (1,795 | ) | ||||||||||
Disposals or retirements | 0 | 299 | 84 | 5,590 | 5,973 | |||||||||||||||
Exchange adjustments | (6 | ) | 78 | 13 | 1,845 | 1,930 | ||||||||||||||
At December 31, 2020 | (19,629 | ) | (1,884 | ) | (3,946 | ) | (31,099 | ) | (56,558 | ) | ||||||||||
At January 1, 2021 | (19,629 | ) | (1,884 | ) | (3,946 | ) | (31,099 | ) | (56,558 | ) | ||||||||||
Charge for the year | (628 | ) | (149 | ) | (115 | ) | (974 | ) | (1,866 | ) | ||||||||||
Disposals or retirements | 0 | 186 | 255 | 2,410 | 2,851 | |||||||||||||||
Impairment losses | (1,196 | ) | (279 | ) | (98 | ) | (935 | ) | (2,508 | ) | ||||||||||
Reallocations/ reclassifications | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Exchange adjustments | 21 | (5 | ) | (46 | ) | 566 | 536 | |||||||||||||
At December 31, 2021 | (21,432 | ) | (2,131 | ) | (3,950 | ) | (30,032 | ) | (57,545 | ) | ||||||||||
Carrying amounts | ||||||||||||||||||||
At December 31, 2021 | 2,902 | 461 | 250 | 2,305 | 5,918 | |||||||||||||||
At December 31, 2020 | 4,658 | 786 | 363 | 2,740 | 8,547 |
127
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. | PROPERTY, PLANT AND EQUIPMENT (CONTINUED) |
US$000 | ||||
Right-of-use assets cost at transition before impairment | ||||
Impairment adjustment on transition | (11,099 | ) | ||
Right-of-use assets value at transition after impairment |
Carrying amount at December 31, 2018 | Remeasurement | Impairment | IFRS 16 carrying amount at January 1, 2019 | |||||||||||||
US$000 | US$000 | US$000 | US$000 | |||||||||||||
Property, plant & equipment | 5,362 | 21,185 | (11,099 | ) | 15,448 | |||||||||||
Lease liabilities | (962 | ) | (21,185 | ) | - | (22,147 | ) | |||||||||
Retaining earnings | (55,319 | ) | - | 11,099 | (44,220 | ) | ||||||||||
Total | (50,919 | ) | - | - | (50,919 | ) |
Carrying amount | Depreciation | Impairment | ||||||||||
At December 31, 2019 | Year ended December 31, 2019 | Year ended December 31, 2019 | ||||||||||
US$000 | US$000 | US$000 | ||||||||||
Buildings | 5,220 | (1,523 | ) | (3,913 | ) | |||||||
Computer equipment | 7 | (39 | ) | (63 | ) | |||||||
5,227 | (1,562 | ) | (3,976 | ) |
Carrying amount | Depreciation Charge | Impairment Charge | ||||||||||
At December 31, 2021 | Year ended December 31, 2021 | Year ended December 31, 2021 | ||||||||||
US$000 | US$000 | US$000 | ||||||||||
Buildings | 2,549 | (609 | ) | (1,089 | ) | |||||||
Computer equipment | 23 | (5 | ) | 0 | ||||||||
Plant and Equipment | 0 | 0 | 0 | |||||||||
2,572 | (614 | ) | (1,089 | ) |
Carrying amount | Depreciation Charge | Impairment Charge | ||||||||||
At December 31, 2020 | Year ended December 31, 2020 | Year ended December 31, 2020 | ||||||||||
US$000 | US$000 | US$000 | ||||||||||
Buildings | 4,200 | (673 | ) | (347 | ) | |||||||
Computer equipment | 3 | (4 | ) | 0 | ||||||||
Plant and Equipment | 0 | (70 | ) | (154 | ) | |||||||
4,203 | (747 | ) | (501 | ) |
Right-of-Use assets at 31 December 2021 | No. of Right-of-Use leased assets | Range of remaining term in years | Average remaining lease term (years) | No. of Leases with extension options | No. of Leases with options to purchase | No. of leases with variable payments linked to index | No. of leases with termination options | ||||||||||||||||||
Building | 11 | 1 to 12 | 3 | 1 | 0 | 2 | 4 | ||||||||||||||||||
Vehicle | 16 | 1 to 3 | 2 | 0 | 16 | 0 | 16 | ||||||||||||||||||
I.T. and office equipment | 2 | 1 to 5 | 4 | 0 | 0 | 0 | 0 |
128
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. | PROPERTY, PLANT AND EQUIPMENT (CONTINUED) |
Right-of-Use assets at 31 December 2020 | No. of Right-of-Use leased assets | Range of remaining term in years | Average remaining lease term (years) | No. of Leases with extension options | No. of Leases with options to purchase | No. of leases with variable payments linked to index | No. of leases with termination options | ||||||||||||||||||
Building | 12 | 1 to 13 | 4 | 1 | 0 | 2 | 4 | ||||||||||||||||||
Vehicle | 16 | 1 to 3 | 2 | 0 | 16 | 0 | 16 | ||||||||||||||||||
I.T. and office equipment | 10 | 1 to 2 | 1 | 0 | 0 | 0 | 1 |
Right-of-Use assets | No. of Right-of-Use leased assets | Range of remaining term in years | Average remaining lease term (years) | No. of Leases with extension options | No. of Leases with options to purchase | No. of leases with variable payments linked to index | No. of leases with termination options | ||||||||||||||||||
Building | 13 | 1 to 14 | 5 | 1 | - | 2 | 4 | ||||||||||||||||||
Vehicle | 9 | 1 to 2 | 1 | - | 9 | - | 9 | ||||||||||||||||||
I.T. and office equipment | 11 | 1 to 2 | 2 | - | - | - | 1 |
129
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. | GOODWILL AND INTANGIBLE ASSETS |
Goodwill US$‘000 | Development costs US$‘000 | Patents and licences US$‘000 | Other US$‘000 | Total US$‘000 | ||||||||||||||||
Cost | ||||||||||||||||||||
At January 1, 2020 | 81,689 | 156,377 | 9,951 | 34,266 | 282,283 | |||||||||||||||
Additions | 0 | 6,896 | 30 | 89 | 7,015 | |||||||||||||||
Disposals or retirements | (2,507 | ) | (34,318 | ) | (1,034 | ) | (1,044 | ) | (38,903 | ) | ||||||||||
Exchange adjustments | 0 | 22 | 0 | 0 | 22 | |||||||||||||||
At December 31, 2020 | 79,182 | 128,977 | 8,947 | 33,311 | 250,417 | |||||||||||||||
At January 1, 2021 | 79,182 | 128,977 | 8,947 | 33,311 | 250,417 | |||||||||||||||
Additions | 0 | 6,771 | 102 | 21 | 6,894 | |||||||||||||||
Disposals or retirements | 0 | (14,576 | ) | (342 | ) | (134 | ) | (15,052 | ) | |||||||||||
Exchange adjustments | 0 | 1 | 0 | 0 | 1 | |||||||||||||||
At December 31, 2021 | 79,182 | 121,173 | 8,707 | 33,198 | 242,260 | |||||||||||||||
Accumulated amortisation and Impairment losses | ||||||||||||||||||||
At January 1, 2020 | (69,098 | ) | (133,599 | ) | (9,819 | ) | (26,113 | ) | (238,629 | ) | ||||||||||
Charge for the year | 0 | (959 | ) | (5 | ) | (439 | ) | (1,403 | ) | |||||||||||
Disposals or retirements | 2,507 | 34,318 | 1,034 | 1,044 | 38,903 | |||||||||||||||
Impairment losses | 0 | (15,287 | ) | 0 | (135 | ) | (15,422 | ) | ||||||||||||
Exchange adjustments | 0 | (6 | ) | 0 | 0 | (6 | ) | |||||||||||||
At December 31, 2020 | (66,591 | ) | (115,533 | ) | (8,790 | ) | (25,643 | ) | (216,557 | ) | ||||||||||
At January 1, 2021 | (66,591 | ) | (115,533 | ) | (8,790 | ) | (25,643 | ) | (216,557 | ) | ||||||||||
Charge for the year | 0 | (482 | ) | (7 | ) | (428 | ) | (917 | ) | |||||||||||
Disposals or retirements | 0 | 14,573 | 342 | 132 | 15,047 | |||||||||||||||
Impairment losses | (54 | ) | (2,053 | ) | (106 | ) | (1,640 | ) | (3,853 | ) | ||||||||||
Exchange adjustments | 0 | 1 | 0 | 0 | 1 | |||||||||||||||
At December 31, 2021 | (66,645 | ) | (103,494 | ) | (8,561 | ) | (27,579 | ) | (206,279 | ) | ||||||||||
Carrying amounts | ||||||||||||||||||||
At December 31, 2021 | 12,537 | 17,679 | 146 | 5,619 | 35,981 | |||||||||||||||
At December 31, 2020 | 12,591 | 13,444 | 157 | 7,668 | 33,860 |
Goodwill US$‘000 | Development costs US$‘000 | Patents and licences US$‘000 | Other US$‘000 | Total US$‘000 | ||||||||||||||||
Cost | ||||||||||||||||||||
At January 1, 2018 | 81,689 | 136,918 | 9,947 | 33,818 | 262,372 | |||||||||||||||
Additions | — | 9,871 | — | 410 | 10,281 | |||||||||||||||
Disposals | — | — | — | — | — | |||||||||||||||
Exchange adjustments | — | (17 | ) | — | — | (17 | ) | |||||||||||||
At December 31, 2018 | 81,689 | 146,772 | 9,947 | 34,228 | 272,636 | |||||||||||||||
At January 1, 2019 | 81,689 | 146,772 | 9,947 | 34,228 | 272,636 | |||||||||||||||
Additions | — | 9,569 | 4 | 38 | 9,611 | |||||||||||||||
Disposals | — | — | — | — | — | |||||||||||||||
Reclassification | — | — | — | — | — | |||||||||||||||
Exchange adjustments | — | 36 | — | — | 36 | |||||||||||||||
At December 31, 2019 | 81,689 | 156,377 | 9,951 | 34,266 | 282,283 | |||||||||||||||
Accumulated amortisation and Impairment losses | ||||||||||||||||||||
At January 1, 2018 | (63,791 | ) | (102,140 | ) | (9,728 | ) | (21,959 | ) | (197,618 | ) | ||||||||||
Charge for the year | — | (1,564 | ) | — | (1,261 | ) | (2,825 | ) | ||||||||||||
Disposals | — | — | — | — | — | |||||||||||||||
Impairment losses | (1,757 | ) | (16,773 | ) | (86 | ) | (596 | ) | (19,212 | ) | ||||||||||
Exchange adjustments | — | (30 | ) | — | — | (30 | ) | |||||||||||||
At December 31, 2018 | (65,548 | ) | (120,507 | ) | (9,814 | ) | (23,816 | ) | (219,685 | ) | ||||||||||
At January 1, 2019 | (65,548 | ) | (120,507 | ) | (9,814 | ) | (23,816 | ) | (219,685 | ) | ||||||||||
Charge for the year | — | (1,182 | ) | (2 | ) | (1,184 | ) | (2,368 | ) | |||||||||||
Disposals | — | — | — | — | — | |||||||||||||||
Impairment losses | (3,550 | ) | (11,904 | ) | (3 | ) | (1,113 | ) | (16,570 | ) | ||||||||||
Exchange adjustments | — | (6 | ) | — | — | (6 | ) | |||||||||||||
At December 31, 2019 | (69,098 | ) | (133,599 | ) | (9,819 | ) | (26,113 | ) | (238,629 | ) | ||||||||||
Carrying amounts | ||||||||||||||||||||
At December 31, 2019 | 12,591 | 22,778 | 132 | 8,153 | 43,654 | |||||||||||||||
At December 31, 2018 | 16,141 | 26,265 | 133 | 10,412 | 52,951 |
130
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. | GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
The following represents the costs incurred during each period presented for each of the principal development projects:
Product Name | 2019 US$’000 | 2018 US$’000 | ||||||
HIV screening rapid test | 2,587 | 1,657 | ||||||
Premier Instrument for Haemoglobin A1c testing | 1,930 | 2,653 | ||||||
Autoimmune Smart Reader | 1,325 | 746 | ||||||
Syphilis point-of-care test | 870 | 454 | ||||||
Uni-Gold antigen improvement | 691 | 453 | ||||||
G-6-PDH test | 582 | 850 | ||||||
Uni-gold test | 376 | 796 | ||||||
Tri-stat Point-of-Care instrument | 361 | 727 | ||||||
Ultra Genesys | 237 | 263 | ||||||
Column enhancement | 236 | 292 | ||||||
Sjogrens tests | 135 | 414 | ||||||
Other projects | 239 | 566 | ||||||
Total capitalised development costs | 9,569 | 9,871 |
Product Name | 2021 US$’000 | 2020 US$’000 | ||||||
Premier Instrument for Haemoglobin A1c testing | 2,538 | 1,359 | ||||||
HIV screening rapid test | 1,488 | 2,278 | ||||||
COVID tests | 1,320 | 467 | ||||||
Autoimmune Smart Reader | 550 | 666 | ||||||
Mid-tier haemoglobins instrument | 303 | 243 | ||||||
Tri-stat point-of-care instrument | 245 | 203 | ||||||
Uni-gold raw material stabilisation | 144 | 0 | ||||||
Sjögrens tests | 88 | 99 | ||||||
Uni-Gold antigen improvement | 0 | 556 | ||||||
Syphilis point-of-care test | 0 | 618 | ||||||
Column enhancement | 0 | 151 | ||||||
Other projects | 95 | 256 | ||||||
Total capitalised development costs | 6,771 | 6,896 |
(a) | The Group only develops products within its field of expertise. The R&D team is experienced in developing new products in this field and this experience means that only products which have a high probability of technical success are put forward for consideration as potential new products. |
(b) | A technical feasibility study is undertaken in advance of every project. The feasibility study for each project is reviewed by the R&D team leader, and by other senior management depending on the size of the project. The feasibility study occurs in the initial research phase of the project and costs in this phase are not capitalised. |
(c) | Nearly all of our new product developments involve the transfer of our existing product know-how to a new application. The Group does not engage in pure research. Every development project is undertaken with the intention of bringing a particular new product to market for which there is |
(d) | The commercial feasibility of each new product is established prior to commencement of a project by ensuring it is projected to achieve an acceptable income after applying appropriate discount rates. |
131
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. | GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | |||||||||||||
US$’000 | US$’000 | US$’000 | US$’000 | |||||||||||||
Immco Diagnostics Inc | 4,979 | 0 | ||||||||||||||
Trinity Biotech Manufacturing Limited | 9,732 | 7 ,837 | 856 | 0 | ||||||||||||
Immco Diagnostics Inc | 6,332 | - | ||||||||||||||
Trinity Biotech Do Brasil | 956 | 919 | ||||||||||||||
Biopool US Inc. | 153 | 154 | ||||||||||||||
Primus Corp | 5,321 | 12,424 | 0 | 16,706 | ||||||||||||
Trinity Biotech Do Brasil | 1,253 | 2,785 | ||||||||||||||
Clark Laboratories Inc. | 727 | 3,377 | ||||||||||||||
Mardx Diagnostics Inc. | 720 | - | ||||||||||||||
Biopool US Inc. | 210 | 509 | ||||||||||||||
Total impairment loss | 24,295 | 26,932 | 6,944 | 17,779 |
132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. | GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | |||||||||||||
US$’000 | US$’000 | US$’000 | US$’000 | |||||||||||||
Goodwill and other intangible assets (see Note 14) | 16,570 | 19,212 | 3,853 | 15,422 | ||||||||||||
Property, plant and equipment (see Note 13) | 6,349 | 6,112 | 2,508 | 1,795 | ||||||||||||
Prepayments (see Note 18) | 1,376 | 1,608 | 583 | 562 | ||||||||||||
Total impairment loss | 24,295 | 26,932 | 6,944 | 17,779 |
• | In the event that there was a reduction of 10% in the assumed level of future growth in revenue growth rate, which would represent a reasonably likely range of outcomes, there would be no additional impairment loss recorded at December 31, 2021. |
• | In the event there was a 10% increase in the discount rate used to calculate the potential impairment of the carrying values, which would represent a reasonably likely range of outcomes, there would be no additional impairment loss recorded at December 31, 2021. |
133
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. | GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
Fitzgerald Industries | December 31, 2019 | December 31, 2018 | ||||||
Carrying amount of goodwill (US$’000) | 12,592 | 12,592 | ||||||
Discount rate applied (real pre-tax) | 20.42 | % | 19.80 | % | ||||
Excess value-in-use over carrying amount (US$’000) | 2,385 | 8,847 | ||||||
% EBITDA would need to decrease for an impairment to arise | 12.11 | % | 32.6 | % | ||||
Long-term growth rate | 2.0 | % | 2.0 | % |
Fitzgerald Industries | December 31, 2021 | December 31, 2020 | ||||||
Carrying amount of goodwill (US$’000) | 12,591 | 12,591 | ||||||
Discount rate applied (real pre-tax) | 19.66 | % | 19.98 | % | ||||
Excess value-in-use over carrying amount (US$’000) | 3,496 | 7,915 | ||||||
% EBITDA would need to decrease for an impairment to arise | 18.15 | % | 31.98 | % | ||||
Long-term growth rate | 2.0 | % | 2.0 | % |
Intangible Assets with Indefinite Useful lives (included in other intangibles) | December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | ||||||
Fitzgerald Industries International CGU | ||||||||
Fitzgerald trade name | 970 | 970 | ||||||
RDI trade name | 560 | 560 | ||||||
Primus Corporation CGU | ||||||||
Primus trade name | 500 | 547 | ||||||
Immco Diagnostic CGU | ||||||||
Immco Diagnostic trade name | 2,938 | 3,393 | ||||||
Total | 4,968 | 5,470 |
Intangible Assets with Indefinite Useful lives (included in other intangibles) | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | ||||||
Fitzgerald Industries International CGU | ||||||||
Fitzgerald trade name | 970 | 970 | ||||||
RDI trade name | 560 | 560 | ||||||
Primus Corporation CGU | ||||||||
Primus trade name | 365 | 365 | ||||||
Immco Diagnostic CGU | ||||||||
Immco Diagnostic trade name | 2,069 | 2,938 | ||||||
Total | 3,964 | 4,833 |
134
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Assets | Liabilities | Net | Assets | Liabilities | Net | |||||||||||||||||||||||||||||||||||||||||||
2019 US$000 | 2018 US$’000 | 2019 US$’000 | 2018 US$’000 | 2019 US$’000 | 2018 US$’000 | 2021 US$’000 | 2020 US$’000 | 2021 US$’000 | 2020 US$’000 | 2021 US$’000 | 2020 US$’000 | |||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 1,027 | 815 | (9 | ) | (37 | ) | 1,018 | 778 | 477 | 733 | (11 | ) | (9 | ) | 466 | 724 | ||||||||||||||||||||||||||||||||
Intangible assets | — | — | (6,099 | ) | (7,189 | ) | (6,099 | ) | (7,189 | ) | 0 | 0 | (3,969 | ) | (4,072 | ) | (3,969 | ) | (4,072 | ) | ||||||||||||||||||||||||||||
Inventories | 642 | 668 | — | — | 642 | 668 | 620 | 750 | 0 | 0 | 620 | 750 | ||||||||||||||||||||||||||||||||||||
Provisions | 3,838 | 4,311 | — | — | 3,838 | 4,311 | 1,871 | 2,159 | 0 | 0 | 1,871 | 2,159 | ||||||||||||||||||||||||||||||||||||
Tax value of loss carry-forwards | 1,016 | 433 | 0 | 0 | 1,016 | 433 | ||||||||||||||||||||||||||||||||||||||||||
Other items | 745 | 333 | (1,031 | ) | (629 | ) | (286 | ) | (296 | ) | 117 | 110 | (878 | ) | (824 | ) | (761 | ) | (714 | ) | ||||||||||||||||||||||||||||
Deferred tax assets/(liabilities) | 6,252 | 6,127 | (7,139 | ) | (7,855 | ) | (887 | ) | (1,728 | ) | 4,101 | 4,185 | (4,858 | ) | (4,905 | ) | (757 | ) | (720 | ) |
Balance January, 1 2021 | Recognised in income | Balance December 31, 2021 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Property, plant and equipment | 724 | (258 | ) | 466 | ||||||||
Intangible assets | (4,072 | ) | 103 | (3,969 | ) | |||||||
Inventories | 750 | (130 | ) | 620 | ||||||||
Provisions | 2,159 | (288 | ) | 1,871 | ||||||||
Tax value of loss carry-forwards | 433 | 583 | 1,016 | |||||||||
Other items | (714 | ) | (47 | ) | (761 | ) | ||||||
(720 | ) | (37 | ) | (757 | ) |
135
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Balance January, 1 2020 | Recognised in income | Balance December 31, 2020 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Property, plant and equipment | 1,018 | (294 | ) | 724 | ||||||||
Intangible assets | (6,099 | ) | 2,027 | (4,072 | ) | |||||||
Inventories | 642 | 108 | 750 | |||||||||
Provisions | 3,622 | (1,463 | ) | 2,159 | ||||||||
Tax value of loss carry-forwards | 216 | 217 | 433 | |||||||||
Other items | (286 | ) | (428 | ) | (714 | ) | ||||||
(887 | ) | 167 | (720 | ) |
December 31, 2019 | December 31, 2018 | |||||||
US$’000 | US$’000 | |||||||
Capital losses | 8,293 | 8,293 | ||||||
Net operating losses | 80,577 | 67,012 | ||||||
US alternative minimum tax credits | 1,928 | 1,674 | ||||||
Other temporary timing differences | 7,399 | 3,880 | ||||||
US state credit carryforwards | 493 | 364 | ||||||
98,690 | 81,223 |
December 31, 2021 | December 31, 2020 | |||||||
US$’000 | US$’000 | |||||||
Capital losses | 8,293 | 8,293 | ||||||
Net operating losses | 73,893 | 85,198 | ||||||
US alternative minimum tax credits | 1,704 | 1,848 | ||||||
Other temporary timing differences | 21,301 | 21,878 | ||||||
US state credit carry-forwards | 1,664 | 802 | ||||||
106,855 | 118,019 |
Movement in unrecognised deferred tax assets | Increase / (decrease) US$’000 | Applicable tax rate % | Tax effect US$’000 | |||||||||
Net operating losses in US | (1,348 | ) | 21 | % | (283 | ) | ||||||
Alternative minimum tax credit in US | 254 | n/a | �� | 254 | ||||||||
Net operating losses in Brazil | 1,788 | 34 | % | 608 | ||||||||
Net operating losses in Ireland | 13,125 | 12.5% -25 | % | 2,353 | ||||||||
Other deferred tax assets in Ireland | (1,938 | ) | 12.5 | % | (243 | ) | ||||||
Other deferred tax assets in US | 5,457 | 21 | % | 1,146 | ||||||||
US state credit carryforwards | 129 | n/a | 129 | |||||||||
Total – continuing operations | 17,467 | 3,964 |
16. | OTHER NON-CURRENT ASSETS |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Finance lease receivables (see Note 18) | 151 | 291 | ||||||
Other assets | 56 | 64 | ||||||
207 | 355 |
Balance January, 1 2019 | Recognised in income | Balance December 31, 2019 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Property, plant and equipment | 778 | 240 | 1,018 | |||||||||
Intangible assets | (7,189 | ) | 1,090 | (6,099 | ) | |||||||
Inventories | 668 | (26 | ) | 642 | ||||||||
Provisions | 4,311 | (473 | ) | 3,838 | ||||||||
Other items | (296 | ) | 10 | (286 | ) | |||||||
(887 | ||||||||||||
(1,728 | ) | 841 | (887 | ) |
Balance January, 1 2018 | Recognised in income | Balance December 31, 2018 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Property, plant and equipment | 350 | 428 | 778 | |||||||||
Intangible assets | (9,443 | ) | 2,254 | (7,189 | ) | |||||||
Inventories | 1,006 | (338 | ) | 668 | ||||||||
Provisions | 3,510 | 801 | 4,311 | |||||||||
Other items | 818 | (1,114 | ) | (296 | ) | |||||||
Tax value of loss carryforwards recognised | 1,625 | (1,625 | ) | — | ||||||||
(2,134 | ) | 406 | (1,728 | ) |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Finance lease receivables (see Note 18) | 403 | 476 | ||||||
Other assets | 82 | 82 | ||||||
485 | 558 |
136
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17. | INVENTORIES |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Raw materials and consumables | 13,650 | 12,168 | ||||||
Work-in-progress | 5,546 | 5,169 | ||||||
Finished goods | 9,927 | 12,882 | ||||||
29,123 | 30,219 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Raw materials and consumables | 12,654 | 10,556 | ||||||
Work-in-progress | 6,940 | 8,239 | ||||||
Finished goods | 12,427 | 11,564 | ||||||
32,021 | 30,359 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | |||||||||||||||||||
Opening provision at January 1 | 6,299 | 7,543 | 10,017 | 9,781 | 6,716 | 6,299 | ||||||||||||||||||
Charged during the year | 1,567 | 480 | 2,561 | 5,589 | 5,179 | 1,567 | ||||||||||||||||||
Utilised during the year | (1,150 | ) | (1,544 | ) | (4,749 | ) | (3,307 | ) | (1,994 | ) | (1,150 | ) | ||||||||||||
Released during the year | - | (180 | ) | (286 | ) | 0 | (120 | ) | 0 | |||||||||||||||
Closing provision at December 31 | 6,716 | 6,299 | 7,543 | 12,063 | 9,781 | 6,716 |
After January 27, 2022, the assets of the Group are pledged as security for the term loan from Perceptive Advisors. Refer to Note 30, Post Balance Sheet events.
18. | TRADE AND OTHER RECEIVABLES |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Trade receivables, net of impairment losses | 13,290 | 20,025 | ||||||
Prepayments | 1,945 | 1,159 | ||||||
Contract assets | 739 | 1,177 | ||||||
Value added tax | 0 | 92 | ||||||
Finance lease receivables | 142 | 215 | ||||||
16,116 | 22,668 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Trade receivables, net of impairment losses | 17,754 | 21,318 | ||||||
Prepayments | 576 | 807 | ||||||
Contract assets | 2,317 | 1,894 | ||||||
Value added tax | 59 | 63 | ||||||
Finance lease receivables | 281 | 359 | ||||||
20,987 | 24,441 |
137
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18. | TRADE AND OTHER RECEIVABLES (CONTINUED) |
December 31, 2021 US$‘000 | ||||||||||||
Gross investment | Unearned income | Minimum payments receivable | ||||||||||
Less than one year | 292 | 150 | 142 | |||||||||
Between one and five years (Note 16) | 310 | 159 | 151 | |||||||||
602 | 309 | 293 |
December 31, 2020 US$‘000 | ||||||||||||
Gross investment | Unearned income | Minimum payments receivable | ||||||||||
Less than one year | 415 | 200 | 215 | |||||||||
Between one and five years (Note 16) | 591 | 300 | 291 | |||||||||
1,006 | 500 | 506 |
December 31, 2019 US$‘000 | ||||||||||||
Gross investment | Unearned income | Minimum payments receivable | ||||||||||
Less than one year | 523 | 242 | 281 | |||||||||
Between one and five years (Note 16) | 805 | 402 | 403 | |||||||||
1,328 | 644 | 684 |
December 31, 2018 US$‘000 | ||||||||||||
Gross investment | Unearned income | Minimum payments receivable | ||||||||||
Less than one year | 617 | 258 | 359 | |||||||||
Between one and five years (Note 16) | 888 | 412 | 476 | |||||||||
1,505 | 670 | 835 |
December 31, 2019 US$‘000 | ||||||||
Instruments | Total | |||||||
Less than one year | 3,528 | 3,528 | ||||||
Between one and five years | 27 | 27 | ||||||
3,555 | 3,555 |
December 31, 2018 US$‘000 | ||||||||
Instruments | Total | |||||||
Less than one year | 3,498 | 3,498 | ||||||
Between one and five years | 32 | 32 | ||||||
3,530 | 3,530 |
December 31, 2021 | ||||||||
US$‘000 | ||||||||
Instruments | Total | |||||||
Less than one year | 3,953 | 3,953 | ||||||
Between one and five years | 171 | 171 | ||||||
4,124 | 4,124 |
December 31, 2020 | ||||||||
US$‘000 | ||||||||
Instruments | Total | |||||||
Less than one year | 2,767 | 2,767 | ||||||
Between one and five years | 171 | 171 | ||||||
2,938 | 2,938 |
138
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19. | CASH AND CASH EQUIVALENTS |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Cash at bank and in hand | 6,275 | 6,854 | ||||||
Short-term deposits | 8,956 | 23,423 | ||||||
Cash and cash equivalents | 15,231 | 30,277 |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Cash at bank and in hand | 22,790 | 24,209 | ||||||
Short-term deposits | 3,120 | 3,118 | ||||||
Cash and cash equivalents | 25,910 | 27,327 |
20. |
CAPITAL AND RESERVES | ||||||||
Share capital |
Class ‘A’ Ordinary shares | Class ‘A’ Ordinary shares | |||||||
In thousands of shares | 2019 | 2018 | ||||||
In issue at January 1 | 96,162 | 96,162 | ||||||
Issued for cash | - | - | ||||||
In issue at December 31 | 96,162 | 96,162 |
ADS | ADS | |||||||
In thousands of ADSs | 2019 | 2018 | ||||||
Balance at January 1 | 24,041 | 24,041 | ||||||
Issued for cash | - | - | ||||||
Balance at December 31 | 24,041 | 24,041 |
Class ‘A’ Treasury shares | Class ‘A’ Treasury shares | |||||||
In thousands of shares | 2019 | 2018 | ||||||
Balance at January 1 | 12,556 | 12,448 | ||||||
Purchased during the year | - | 108 | ||||||
Balance at December 31 | 12,556 | 12,556 |
ADS Treasury shares | ADS Treasury shares | |||||||
In thousands of ADSs | 2019 | 2018 | ||||||
Balance at January 1 | 3,139 | 3,112 | ||||||
Purchased during the year | - | 27 | ||||||
Balance at December 31 | 3,139 | 3,139 |
Class ‘A’ Ordinary shares | Class ‘A’ Ordinary shares | |||||||
In thousands of shares | 2021 | 2020 | ||||||
In issue at January 1 | 96,162 | 96,162 | ||||||
Issued for cash | 0 | 0 | ||||||
In issue at December 31 | 96,162 | 96,162 |
ADS | ADS | |||||||
In thousands of ADSs | 2021 | 2020 | ||||||
Balance at January 1 | 24,041 | 24,041 | ||||||
Issued for cash | 0 | 0 | ||||||
Balance at December 31 | 24,041 | 24,041 |
Class ‘A’ Treasury shares | Class ‘A’ Treasury shares | |||||||
In thousands of shares | 2021 | 2020 | ||||||
Balance at January 1 | 12,556 | 12,556 | ||||||
Purchased during the year | 0 | 0 | ||||||
Balance at December 31 | 12,556 | 12,556 |
ADS Treasury shares | ADS Treasury shares | |||||||
In thousands of ADSs | 2021 | 2020 | ||||||
Balance at January 1 | 3,139 | 3,139 | ||||||
Purchased during the year | 0 | 0 | ||||||
Balance at December 31 | 3,139 | 3,139 |
139
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20. | CAPITAL AND RESERVES (CONTINUED) |
Hedging reserve
SHARE OPTIONS |
140
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. | SHARE OPTIONS (CONTINUED) |
Options and warrants | Weighted- average exercise price US$ | Range US$ | ||||||||||
‘A’ Ordinary Shares | Per ‘A’ Ordinary Share | Per ‘A’ Ordinary Share | ||||||||||
Outstanding January 1, 2017 | 9,830,183 | 3.19 | 0.66 –4.47 | |||||||||
Granted | 5,630,000 | 1.31 | 1.24 –1.44 | |||||||||
Exercised | - | - | - | |||||||||
Forfeited | (4,732,807 | ) | 3.86 | 0.75 –4.47 | ||||||||
Outstanding at end of year | 10,727,376 | 1.92 | 1.24 –4.36 | |||||||||
Exercisable at end of year | 3,268,707 | 2.57 | 1.66 –4.36 | |||||||||
Outstanding January 1, 2018 | 10,727,376 | 1.92 | 1.24 –4.36 | |||||||||
Granted | 720,000 | 1.07 | 0.67 –1.37 | |||||||||
Exercised | - | - | - | |||||||||
Forfeited | (539,176 | ) | 2.50 | 1.34 –4.23 | ||||||||
Outstanding at end of year | 10,908,200 | 1.83 | 0.67 –4.36 | |||||||||
Exercisable at end of year | 6,091,864 | 2.09 | 1.24 –4.36 | |||||||||
Outstanding January 1, 2019 | 10,908,200 | 1.83 | 0.67 –4.36 | |||||||||
Granted | 4,370,000 | 0.68 | 0.46 –0.78 | |||||||||
Exercised | - | - | - | |||||||||
Expired / Forfeited | (2,974,210 | ) | 2.25 | 0.66 –4.23 | ||||||||
Outstanding at end of year | 12,303,990 | 1.31 | 0.46 –4.36 | |||||||||
Exercisable at end of year | 6,622,667 | 1.73 | 1.24 –4.36 |
Options and warrants | Weighted- average exercise price US$ | Range US$ | ||||||||||
‘A’ Ordinary Shares | Per ‘A’ Ordinary Share | Per ‘A’ Ordinary Share | ||||||||||
Outstanding January 1, 2019 | 10,908,200 | 1.83 | 0.67 –4.36 | |||||||||
Granted | 4,370,000 | 0.68 | 0.46 –0.78 | |||||||||
Exercised | 0 | 0 | 0 | |||||||||
Expired / Forfeited | (2,974,210 | ) | 2.25 | 0.66 –4.23 | ||||||||
Outstanding at end of year | 12,303,990 | 1.31 | 0.46 –4.36 | |||||||||
Exercisable at end of year | 6,622,667 | 1.73 | 1.24 –4.36 | |||||||||
Outstanding January 1, 2020 | 12,303,990 | 1.31 | 0.46 –4.36 | |||||||||
Granted | 9,100,000 | 0.38 | 0.19 –1.10 | |||||||||
Exercised | 0 | 0 | 0 | |||||||||
Expired / Forfeited | (1,918,000 | ) | 2.14 | 0.19-4.21 | ||||||||
Outstanding at end of year | 19,485,990 | 0.79 | 0.19-4.36 | |||||||||
Exercisable at end of year | 7,959,323 | 1.27 | 0.66-4.36 | |||||||||
Outstanding January 1, 2021 | 19,485,990 | 0.79 | 0.19-4.36 | |||||||||
Granted | 0 | 0 | 0 | |||||||||
Exercised | 0 | 0 | 0 | |||||||||
Expired / Forfeited | (758,000 | ) | 1.07 | 0.19-4.21 | ||||||||
Outstanding at end of year | 18,727,990 | 0.78 | 0.19-4.36 | |||||||||
Exercisable at end of year | 13,401,322 | 0.93 | 0.19-4.36 |
141
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SHARE OPTIONS |
Options and warrants ‘ADS’ | Weighted- average exercise price US$ | Range US$ | Options and warrants | Weighted- average exercise price US$ | Range US$ | |||||||||||||||||||
Equivalent | Per ‘ADS’ | Per ‘ADS’ | ||||||||||||||||||||||
Outstanding January 1, 2017 | 2,457,546 | 12.76 | 2.64 - 17.88 | |||||||||||||||||||||
Granted | 1,407,500 | 5.25 | 4.95 – 5.75 | |||||||||||||||||||||
Exercised | - | - | - | |||||||||||||||||||||
Forfeited | (1,183,202 | ) | 10.26 | 3.00 –17.88 | ||||||||||||||||||||
Outstanding at end of year | 2,681,844 | 7.69 | 4.96–17.44 | |||||||||||||||||||||
Exercisable at end of year | 817,179 | 10.29 | 6.64 –17.45 | |||||||||||||||||||||
Outstanding January 1, 2018 | 2,681,844 | 7.69 | 4.96 - 17.44 | |||||||||||||||||||||
Granted | 180,000 | 4.28 | 2.68 – 5.48 | |||||||||||||||||||||
Exercised | - | - | - | |||||||||||||||||||||
Expired / Forfeited | (134,794 | ) | 10.00 | 5.36 – 16.92 | ||||||||||||||||||||
Outstanding at end of year | 2,727,050 | 7.32 | 2.68–17.44 | |||||||||||||||||||||
Exercisable at end of year | 1,522,966 | 8.36 | 4.96 –17.44 | |||||||||||||||||||||
‘ADS’ Equivalent | Per ‘ADS’ | Per ‘ADS’ | ||||||||||||||||||||||
Outstanding January 1, 2019 | 2,727,050 | 7.32 | 2.68–17.44 | 2,727,050 | 7.32 | 2.68 - 17.44 | ||||||||||||||||||
Granted | 1,092,500 | 2.72 | 1.83 - 3.10 | 1,092,500 | 2.72 | 1.83 – 3.10 | ||||||||||||||||||
Exercised | - | - | - | 0 | 0 | 0 | ||||||||||||||||||
Expired / Forfeited | (743,552 | ) | 8.99 | 2.64 – 16.92 | (743,552 | ) | 8.99 | 2.64 – 16.92 | ||||||||||||||||
Outstanding at end of year | 3,075,998 | 5.24 | 1.83 – 17.45 | 3,075,998 | 5.24 | 1.83–17.45 | ||||||||||||||||||
Exercisable at end of year | 1,655,667 | 6.92 | 4.95 –17.45 | 1,655,667 | 6.92 | 4.95 –17.45 | ||||||||||||||||||
Outstanding January 1, 2020 | 3,075,998 | 5.24 | 1.83–17.45 | |||||||||||||||||||||
Granted | 2,275,000 | 1.52 | 0.77 - 4.41 | |||||||||||||||||||||
Exercised | 0 | 0 | 0 | |||||||||||||||||||||
Expired / Forfeited | (479,500 | ) | 8.56 | 0.77 - 16.84 | ||||||||||||||||||||
Outstanding at end of year | 4,871,498 | 3.15 | 0.77 - 17.45 | |||||||||||||||||||||
Exercisable at end of year | 1,989,831 | 5.08 | 2.64 –17.45 | |||||||||||||||||||||
Outstanding January 1, 2021 | 4,871,498 | 3.15 | 0.77 - 17.45 | |||||||||||||||||||||
Granted | 0 | 0 | 0 | |||||||||||||||||||||
Exercised | 0 | 0 | 0 | |||||||||||||||||||||
Expired / Forfeited | (189,500 | ) | 4.28 | 0.76 - 16.84 | ||||||||||||||||||||
Outstanding at end of year | 4,681,998 | 3.12 | 0.76-17.44 | |||||||||||||||||||||
Exercisable at end of year | 3,350,331 | 3.72 | 0.76-17.44 |
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price range | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | |||||||||||||||||||
US$0.46-US$0.99 | 4,600,000 | 0.69 | 6.42 | - | - | - | |||||||||||||||||||
US$1.00-US$2.05 | 5,613,990 | 1.35 | 4.69 | 4,542,667 | 1.34 | 4.68 | |||||||||||||||||||
US$2.06- US$2.99 | 1,980,000 | 2.48 | 3.13 | 1,970,000 | 2.48 | 3.13 | |||||||||||||||||||
US$3.00 -US$4.36 | 110,000 | 4.19 | 2.07 | 110,000 | 4.19 | 2.07 | |||||||||||||||||||
12,303,990 | 6,622,667 |
Outstanding | Exercisable | |||||||||||||||||||||||
Exercise price range | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | ||||||||||||||||||
US$0.19-US$0.99 | 13,000,006 | 0.48 | 3.54 | 7,960,004 | 0.55 | 2.92 | ||||||||||||||||||
US$1.00-US$2.05 | 5,228,000 | 1.34 | 0.79 | 4,941,334 | 1.35 | 0.99 | ||||||||||||||||||
US$2.06- US$2.99 | 439,984 | 2.53 | 0.03 | 439,984 | 2.53 | 0.04 | ||||||||||||||||||
US$3.00 -US$4.36 | 60,000 | 4.17 | 0.00 | 60,000 | 4.17 | 0.00 | ||||||||||||||||||
18,727,990 | 13,401,322 |
142
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. | SHARE OPTIONS (CONTINUED) |
Outstanding | Exercisable | |||||||||||||||||||||||
Exercise price range | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | ||||||||||||||||||
US$0.77-US$3.96 | 3,250,002 | 1.94 | 3.54 | 1,990,001 | 2.19 | 2.92 | ||||||||||||||||||
US$4.00-US$8.20 | 1,307,000 | 5.36 | 0.79 | 1,235,334 | 5.40 | 0.99 | ||||||||||||||||||
US$8.24- US$11.96 | 109,996 | 10.13 | 0.03 | 109,996 | 10.13 | 0.04 | ||||||||||||||||||
US$12.00 -US$17.45 | 15,000 | 16.67 | 0.00 | 15,000 | 16.67 | 0.00 | ||||||||||||||||||
4,681,998 | 3,350,331 |
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price range | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | |||||||||||||||||||
US$1.84-US$3.96 | 1,150,000 | 2.75 | 6.42 | - | - | - | |||||||||||||||||||
US$4.00-US$8.20 | 1,403,498 | 5.40 | 4.69 | 1,135,667 | 5.38 | 4.68 | |||||||||||||||||||
US$8.24- US$11.96 | 495,000 | 9.92 | 3.13 | 492,500 | 9.91 | 3.13 | |||||||||||||||||||
US$12.00 -US$17.45 | 27,500 | 16.75 | 2.07 | 27,500 | 16.75 | 2.07 | |||||||||||||||||||
3,075,998 | 1,655,667 |
Outstanding | Exercisable | Outstanding | Exercisable | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise price range | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘A’ ordinary shares | Weighted– average exercise price | Weighted- average contractual life remaining (years) | ||||||||||||||||||||||||||||||||||||||
US$0.66-US$0.99 | 430,000 | 0.88 | 6.79 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
US$0.19-US$0.99 | 13,260,006 | 0.48 | 4.14 | 2,106,673 | 0.69 | 1.44 | ||||||||||||||||||||||||||||||||||||||||||||
US$1.00-US$2.05 | 6,111,800 | 1.35 | 5.64 | 2,476,133 | 1.35 | 5.57 | 5,664,000 | 1.34 | 1.11 | 5,290,667 | 1.35 | 2.44 | ||||||||||||||||||||||||||||||||||||||
US$2.06- US$2.99 | 4,168,400 | 2.51 | 2.23 | 3,437,731 | 2.51 | 1.83 | 499,984 | 2.52 | 0.05 | 499,984 | 2.52 | 0.13 | ||||||||||||||||||||||||||||||||||||||
US$3.00 -US$4.47 | 198,000 | 4.20 | 2.97 | 178,000 | 4.20 | 2.93 | ||||||||||||||||||||||||||||||||||||||||||||
US$3.00 -US$4.36 | 62,000 | 4.17 | 0.00 | 62,000 | 4.17 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||
10,908,200 | 6,091,864 | 19,485,990 | 7,959,324 |
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price range | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | |||||||||||||||||||
US$2.64-US$3.96 | 107,500 | 3.52 | 6.79 | - | - | - | |||||||||||||||||||
US$4.00-US$8.20 | 1,527,950 | 5.40 | 5.64 | 619,033 | 5.40 | 5.57 | |||||||||||||||||||
US$8.24- US$11.96 | 1,042,100 | 10.04 | 2.23 | 859,433 | 10.04 | 1.83 | |||||||||||||||||||
US$12.00 -US$17.88 | 49,500 | 16.80 | 2.97 | 44,500 | 16.80 | 2.93 | |||||||||||||||||||
2,727,050 | 1,522,966 |
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price range | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | No. of options ‘ADS equivalent’ | Weighted– average exercise price | Weighted- average contractual life remaining (years) | |||||||||||||||||||
US$0.77-US$3.96 | 3,315,002 | 1.92 | 4.17 | 526,668 | 2.76 | 1.44 | |||||||||||||||||||
US$4.00-US$8.20 | 1,416,000 | 5.36 | 1.10 | 1,322,667 | 5.40 | 2.44 | |||||||||||||||||||
US$8.24- US$11.96 | 124,996 | 10.08 | 0.05 | 124,996 | 10.08 | 0.13 | |||||||||||||||||||
US$12.00 -US$17.45 | 15,500 | 16.68 | 0.00 | 15,500 | 16.68 | 0.01 | |||||||||||||||||||
4,871,498 | 1,989,831 |
143
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SHARE OPTIONS | |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | December 31, 2019 US$‘000 | ||||||||||
Share-based payments – cost of sales | 5 | 12 | 26 | |||||||||
Share-based payments – selling, general and administrative | 1,095 | 780 | 732 | |||||||||
Total – continuing operations | 1,100 | 792 | 758 | |||||||||
Share-based payments – discontinued operations | 0 | 0 | 0 | |||||||||
Total | 1,100 | 792 | 758 |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | December 31, 2017 US$‘000 | ||||||||||
Share-based payments – cost of sales | 26 | 34 | 35 | |||||||||
Share-based payments – selling, general and administrative | 732 | 1,335 | 893 | |||||||||
Total – continuing operations | 758 | 1,369 | 928 | |||||||||
Share-based payments – discontinued operations | - | - | - | |||||||||
Total | 758 | 1,369 | 928 |
Key management personnel | Other employees | Key management personnel | Other employees | Key management personnel | Other employees | |||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||||||
Weighted average fair value at measurement date per ‘A’ share / (per ADS) | US$0.14 / (US$0.56 | ) | US$0.25 / (US$1.02 | ) | - | US$0.41 / (US$1.64 | ) | US$0.43 / (US$1.72 | ) | US$0.44 / (US$1.76 | ) | |||||||||||||
Total ‘A’ share options granted / (ADS’s equivalent) | 4,060,000 / (1,015,000 | ) | 310,000 / (77,500 | ) | - | 720,000 / (180,000 | ) | 5,150,000/ (1,287,500 | ) | 480,000 / (120,000 | ) | |||||||||||||
Weighted average share price per ‘A’ share / (per ADS) | US$0.46 / (US$1.84 | ) | US$0.64 / (US$2.53 | ) | - | US$1.07 / (US$4.28 | ) | US$1.34 / (US$5.36 | ) | US$1.31 / (US$5.24 | ) | |||||||||||||
Weighted average exercise price per ‘A’ share / (per ADS) | US$0.69 / (US$2.74 | ) | US$0.64 / (US$2.53 | ) | - | US$1.07 / (US$4.28 | ) | US$1.34 / (US$5.36 | ) | US$1.31 / (US$5.24 | ) | |||||||||||||
Weighted average expected volatility | 51.18 | % | 47.31 | % | - | 42.69 | % | 40.62 | % | 40.48 | % | |||||||||||||
Weighted average expected life | 4.15 | 4.42 | - | 4.55 | 4.45 | 4.69 | ||||||||||||||||||
Weighted average risk free interest rate | 1.84 | % | 2.23 | % | - | 2.72 | % | 1.59 | % | 1.91 | % | |||||||||||||
Expected dividend yield | - | - | - | - | 0.81 | % | 0.81 | % |
Key management personnel | Other employees | Key management personnel | Other employees | Key management personnel | Other employees | ||||||||
2021 | 2021 | 2020 | 2020 | 2019 | 2019 | ||||||||
Weighted average fair value at measurement date per ‘A’ share / (per ADS) | 0 / 0 | 0 / 0 | US$0.20 / (US$0.80) | US$0.27 / (US$1.08) | US$0.14 / (US$0.56) | US$0.25 / (US$1.02) | |||||||
Total ‘A’ share options granted / (ADS’s equivalent) | 0 / 0 | 0 / 0 | 8,480,000 / (2,120,000) | 620,000 / (155,000) | 4,060,000 / (1,015,000) | 310,000 / (77,500) | |||||||
Weighted average share price per ‘A’ share / (per ADS) | 0 / 0 | 0 / 0 | US$0.38 / (US$1.52) | US$0.48 / (US$1.96) | US$0.46 / (US$1.84) | US$0.64 / (US$2.53) | |||||||
Weighted average exercise price per ‘A’ share / (per ADS) | 0 / 0 | 0 / 0 | US$0.38 / (US$1.52) | US$0.48 / (US$1.96) | US$0.69 / (US$2.74) | US$0.64 / (US$2.53) | |||||||
Weighted average expected volatility | 0% | 0% | 66.98% | 65.89% | 51.18% | 47.31% | |||||||
Weighted average expected life | 0 | 0 | 4.34 | 4.35 | 4.15 | 4.42 | |||||||
Weighted average risk free interest rate | 0% | 0% | 0.44% | 0.42% | 1.84% | 2.23% |
144
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SHARE OPTIONS |
TRADE AND OTHER PAYABLES |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Trade payables | 6,763 | 7,103 | ||||||
Payroll taxes | 398 | 688 | ||||||
Employee related social insurance | 130 | 344 | ||||||
Accruals and other liabilities | 7,595 | 8,850 | ||||||
Deferred income | 141 | 4,445 | ||||||
Deferred government grants | 69 | 0 | ||||||
Other payables | 31 | 0 | ||||||
Government COVID-19 loans (Note 4) | 0 | 2,905 | ||||||
15,127 | 24,335 |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Trade payables | 7,833 | 8,116 | ||||||
Payroll taxes | 519 | 448 | ||||||
Employee related social insurance | 170 | 154 | ||||||
Accrued liabilities | 8,133 | 7,878 | ||||||
Deferred income | 292 | 312 | ||||||
16,947 | 16,908 |
145
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
23. | PROVISIONS |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Product warranty provision | 50 | 50 | ||||||
Other provisions | 0 | 366 | ||||||
50 | 416 |
December 31, 2019 US$’000 | December 31, 2017 US$’000 | |||||||
Provisions | 50 | 50 |
24. | EXCHANGEABLE NOTES AND OTHER BORROWINGS |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Current liabilities | ||||||||
Exchangeable senior notes | 83,312 | 0 | ||||||
Total current liabilities | 83,312 | 0 |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Non-Current liabilities | ||||||||
Exchangeable senior notes | 0 | 82,664 | ||||||
Other borrowings | 0 | 31 | ||||||
Total value of embedded derivatives – liability | 0 | 1,370 | ||||||
Total non-current liabilities | 0 | 84,065 |
146
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24. | EXCHANGEABLE NOTES AND OTHER BORROWINGS (CONTINUED) |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Balance at 1 January | 82,664 | 82,021 | ||||||
Accretion interest (Note 8) | 648 | 643 | ||||||
83,312 | 82,664 |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Non-current assets | ||||||||
Exchangeable note bond call option | - | - | ||||||
Non-current liabilities | ||||||||
Exchangeable note equity conversion option | 4 | 238 | ||||||
Exchangeable note bond put option | - | - | ||||||
4 | 238 | |||||||
Total value of embedded derivatives – net liability | 4 | 238 |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Non-current assets | ||||||||
Exchangeable note bond call option | 0 | 150 | ||||||
Non-current liabilities | ||||||||
Exchangeable note equity conversion option | 0 | 1,370 | ||||||
Exchangeable note bond put option | 0 | 0 | ||||||
0 | 1,370 | |||||||
Total value of embedded derivatives – net liability | 0 | 1,220 |
147
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24. | EXCHANGEABLE NOTES AND OTHER BORROWINGS (CONTINUED) |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Balance at 1 January | 81,382 | 92,955 | ||||||
Accretion interest | 639 | 689 | ||||||
Less: purchased during the year at fair value | - | (12,262 | ) | |||||
82,021 | 81,382 |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Exchangeable senior notes | 82,021 | 81,382 | ||||||
Total value of embedded derivatives – liability | 4 | 238 | ||||||
Total non-current liabilities | 82,025 | 81,620 |
LEASE LIABILITIES |
December 31, 2019 US$’000 | December 31, 2018 US$’000 | |||||||
Current liabilities | ||||||||
Lease liabilities related to Right of Use assets | 2,156 | - | ||||||
Sale and leaseback liabilities | 248 | 436 | ||||||
2,404 | 436 | |||||||
Non-Current liabilities | ||||||||
Lease liabilities related to Right of Use assets | 17,474 | - | ||||||
Sale and leaseback liabilities | 271 | 526 | ||||||
17,745 | 526 |
December 31, 2021 US$’000 | December 31, 2020 US$’000 | |||||||
Current liabilities | ||||||||
Lease liabilities related to Right of Use assets | 1,878 | 2,054 | ||||||
Sale and leaseback liabilities | 102 | 99 | ||||||
1,980 | 2,153 | |||||||
Non-Current liabilities | ||||||||
Lease liabilities related to Right of Use assets | 13,790 | 16,407 | ||||||
Sale and leaseback liabilities | 75 | 181 | ||||||
13,865 | 16,588 |
148
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. | LEASE LIABILITIES (CONTINUED) |
December 31, 2019 US$’000 | December 31, 2019 US$’000 | December 31, 2021 US$’000 | December 31, 2021 US$’000 | |||||||||||||||||||||||||||||||||||||||||||||
Lease liabilities related to Right of Use assets | Sale and leaseback liabilities | Lease liabilities related to Right of Use assets | Sale and leaseback Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Minimum lease payments | Interest | Principal | Minimum lease payments | Interest | Principal | Minimum lease payments | Interest | Principal | Minimum lease payments | Interest | Principal | |||||||||||||||||||||||||||||||||||||
Less than one year | 3,017 | 861 | 2,156 | 267 | 19 | 248 | 2,575 | 697 | 1,878 | 109 | 7 | 102 | ||||||||||||||||||||||||||||||||||||
In more than one year, but not more than two | 2,787 | 775 | 2,012 | 107 | 12 | 95 | 2,175 | 621 | 1,554 | 77 | 2 | 75 | ||||||||||||||||||||||||||||||||||||
In more than two years but not more than five | 6,700 | 1,861 | 4,840 | 185 | 9 | 176 | 5,985 | 1,469 | 4,516 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
more than five years | 12,748 | 2,126 | 10,622 | - | - | - | 8,992 | 1,272 | 7,720 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
25,252 | 5,263 | 19,630 | 559 | 40 | 519 | 19,727 | 4,059 | 15,668 | 186 | 9 | 177 |
December 31, 2018 | December 31, 2018 US$’000 | |||||||||||||||
Operating Leases | Sale and leaseback liabilities | |||||||||||||||
Minimum lease payments | Minimum lease payments | Interest | Principal | |||||||||||||
Less than one year | 3,083 | 473 | 37 | 436 | ||||||||||||
In more than one year, but not more than two | 2,783 | 271 | 19 | 252 | ||||||||||||
In more than two years but not more than five | 6,777 | 294 | 20 | 274 | ||||||||||||
more than five years | 14,699 | - | - | - | ||||||||||||
27,342 | 1,038 | 76 | 962 |
December 31, 2020 US$’000 | December 31, 2020 US$’000 | |||||||||||||||||||||||
Lease liabilities related to Right of Use assets | Sale and leaseback liabilities | |||||||||||||||||||||||
Minimum lease payments | Interest | Principal | Minimum lease payments | Interest | Principal | |||||||||||||||||||
Less than one year | 2,877 | 823 | 2,054 | 111 | 12 | 99 | ||||||||||||||||||
In more than one year, but not more than two | 2,644 | 730 | 1,914 | 111 | 7 | 104 | ||||||||||||||||||
In more than two years but not more than five | 6,621 | 1,765 | 4,856 | 79 | 2 | 77 | ||||||||||||||||||
more than five years | 11,389 | 1,752 | 9,637 | 0 | 0 | 0 | ||||||||||||||||||
23,531 | 5,070 | 18,461 | 301 | 21 | 280 |
Lease payments not recognised as a liability
No short term lease expenses were incurred for the year ended December 31, 2021. In 2020 the Group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are expensed as incurred. The expense relating to payments not included in the measurement of the lease liability is as follows:
149
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. | LEASE LIABILITIES (CONTINUED) |
Facility | Currency | Nominal interest rate | Year of maturity | Fair Value | Carrying Value | ||||||||||||
Sale and leaseback liabilities | Euro | 4.53 | % | 2023 | 286 | 286 | |||||||||||
Sale and leaseback liabilities | USD | 5.51 | % | 2023 | 233 | 233 | |||||||||||
Total interest-bearing loans and borrowings | 519 | 519 |
Facility | Currency | Nominal interest rate | Year of maturity | Fair Value | Carrying Value | |||||||||||||
Sale and leaseback liabilities | Euro | 4.53 | % | 2023 | 65 | 65 | ||||||||||||
Sale and leaseback liabilities | USD | 5.51 | % | 2023 | 111 | 111 | ||||||||||||
Total interest-bearing loans and borrowings | 176 | 176 |
Facility | Currency | Nominal interest rate | Year of maturity | Fair Value | Carrying Value | ||||||||||||
Sale and leaseback liabilities | Euro | 4.53 | % | 2023 | 648 | 648 | |||||||||||
Sale and leaseback liabilities | USD | 5.51 | % | 2023 | 314 | 314 | |||||||||||
Total interest-bearing loans and borrowings | 962 | 962 |
Facility | Currency | Nominal interest rate | Year of maturity | Fair Value | Carrying Value | |||||||||||||
Sale and leaseback liabilities | Euro | 4.53 | % | 2023 | 106 | 106 | ||||||||||||
Sale and leaseback liabilities | USD | 5.51 | % | 2023 | 174 | 174 | ||||||||||||
Total interest-bearing loans and borrowings | 280 | 280 |
COMMITMENTS AND CONTINGENCIES |
(a) | Capital Commitments |
(b) | Leasing Commitments |
Year ended | ||||
2018 | ||||
Operating leases | ||||
US$’000 | ||||
2019 | 3,083 | |||
2020 | 2,783 | |||
2021 | 2,512 | |||
2022 | 2,255 | |||
2023 | 2,010 | |||
Later years | 14,699 | |||
Total lease obligations | 27,342 |
(d) | Group Company Guarantees |
150
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(e) | Contingent Asset |
(f) | Government Grant Contingencies |
To mitigate the financial impact of the Covid-19 outbreak, the Company has availed of governmental supports. In 2020, the Company received US$4.5 million of Paycheck Protection Program (“PPP”) loans and in 2021, a further US$1.8 million of PPP loans were received. All of the loans received to date under the program have been forgiven by the US government before December 31, 2021 and therefore no liability for these loans exists at December 31, 2021.
(g) | Other Contingencies |
151
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RELATED PARTY TRANSACTIONS (CONTINUED) |
The Group has entered into an agreement for a 25-year lease with JRJ for offices that adjacent to its then premises at IDA Business Park, Bray, Co. Wicklow, Ireland. The annual rent of €381,000 (US$432,000) is payable from January 1, 2004. Upward-only rent reviews are carried out every five years and there have been no increases arising from these rent reviews. The Group has also entered into lease agreements with Ronan O’Caoimh for a 43,860 square foot manufacturing facility in Bray, Ireland and an adjacent warehouse of 16,000 square feet. The annual rent for the manufacturing facility is €787,000 (US$891,000) and the annual rent for the warehouse is €144,000 (US$163,000). These two leases expire in 2028 and 2026 respectively. At the time, independent valuers advised the Group that the rent in respect of each of the leases represents a fair market rent. Upward-only rent reviews are carried out every five years and there have been no increases arising from these rent reviews. |
December 31, 2019 | December 31, 2018 | |||||||
US$’000 | US$’000 | |||||||
Short-term employee benefits | 800 | 863 | ||||||
Performance related bonus | 213 | 210 | ||||||
Post-employment benefits | 42 | 44 | ||||||
Share-based compensation benefits | 542 | 1,041 | ||||||
1,597 | 2,158 |
December 31, 2021 | December 31, 2020 | |||||||
US$’000 | US$’000 | |||||||
Short-term employee benefits | 1,065 | 1,274 | ||||||
Performance related bonus | 227 | 584 | ||||||
Post-employment benefits | 24 | 41 | ||||||
Share-based compensation benefits | 965 | 626 | ||||||
2,281 | 2,525 |
152
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
27. | RELATED PARTY TRANSACTIONS (CONTINUED) |
‘A’ Ordinary Shares | Share options | |||||||
At January 1, 2021 | 9,077,706 | 17,394,004 | ||||||
Shares of retired director | 0 | 0 | ||||||
Options of retired director | 0 | (656,000 | ) | |||||
Shares purchased during the year | 0 | 0 | ||||||
Shares sold during the year | 0 | 0 | ||||||
Granted | 0 | 0 | ||||||
Expired / forfeited | 0 | 0 | ||||||
At December 31, 2021 | 9,077,706 | 16,738,004 |
‘A’ Ordinary Shares | Share options | |||||||
At January 1, 2020 | 9,077,709 | 10,414,004 | ||||||
Shares of retired director | 0 | 0 | ||||||
Options of retired director | 0 | 0 | ||||||
Shares purchased during the year | 0 | 0 | ||||||
Shares sold during the year | 0 | 0 | ||||||
Granted | 0 | 8,480,000 | ||||||
Expired / forfeited | 0 | (1,500,000 | ) | |||||
At December 31, 2020 | 9,077,706 | 17,394,004 |
‘A’ Ordinary Shares | Share options | |||||||
At January 1, 2019 | 9,139,706 | 8,655,004 | ||||||
Shares of retired director | (30,000 | ) | — | |||||
Options of retired director | — | (215,000 | ) | |||||
Shares purchased during the year | — | — | ||||||
Shares sold during the year | (32,000 | ) | — | |||||
Granted | — | 4,060,000 | ||||||
Expired / forfeited | — | (2,086,000 | ) | |||||
At December 31, 2019 | 9,077,706 | 10,414,004 |
‘A’ Ordinary Shares | Share options | |||||||
At January 1, 2018 | 5,719,706 | 8,770,004 | ||||||
Shares purchased during the year | 3,420,000 | — | ||||||
Expired | — | (115,000 | ) | |||||
At December 31, 2018 | 9,139,706 | 8,655,004 |
153
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT |
Level 1 | Level 2 | Total carrying amount | Fair Value | |||||||||||||||||
Note | US$’000 | US$’000 | �� | US$’000 | US$’000 | |||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Loans and receivables at amortised cost | ||||||||||||||||||||
Trade receivables | 18 | 13,290 | 0 | 13,290 | 13,290 | |||||||||||||||
Cash and cash equivalents | 19 | 25,910 | 0 | 25,910 | 25,910 | |||||||||||||||
Finance lease receivable | 16, 18 | 293 | 0 | 293 | 293 | |||||||||||||||
39,493 | 0 | 39,493 | 39,493 | |||||||||||||||||
Liabilities at amortised cost | ||||||||||||||||||||
Exchangeable note¹ | 24 | 0 | (83,312 | ) | (83,312 | ) | (83,312 | ) | ||||||||||||
Lease liabilities | 25 | (15,845 | ) | 0 | (15,845 | ) | (15,845 | ) | ||||||||||||
Trade and other payables (excluding deferred income) | 22 | (14,986 | ) | 0 | (14,986 | ) | (14,986 | ) | ||||||||||||
Provisions | 23 | (50 | ) | 0 | (50 | ) | (50 | ) | ||||||||||||
(30,881 | ) | (83,312 | ) | (114,193 | ) | (114,193 | ) | |||||||||||||
Fair value through profit and loss (FVPL) | ||||||||||||||||||||
Exchangeable note bond call option | 24 | 0 | 0 | 0 | 0 | |||||||||||||||
Exchangeable note equity conversion option | 24 | 0 | 0 | 0 | 0 | |||||||||||||||
0 | 0 | 0 | 0 | |||||||||||||||||
8,612 | (83,312 | ) | (74,700 | ) | (74,700 | ) |
¹ The last dividend paid by Trinity Research Limited to Rayville Limited was in June 2009 for US$2,830,000. At the time this amount was immediately lent back by Rayville Limited to Trinity Research Limited. Since then US$1,788,000 of these loans have been repaid and recognised as a compensation expense by the Group. As of December 31, 2018 and December 31, 2019, the remaining amountmaturity of the loan was US$1,042,000. As this remaining amountExchangeable Notes is based on the contractual maturity date of April 1, 2045 and does not take into account the potential exercise of put and call options in the next five years or the exchange agreements entered into with five exchangeable note holders in December 2021.
154
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the original dividend is matched byinputs to the fair value measurement in its entirety, which are described as follows:
Level 1 | Level 2 | Total carrying amount | Fair Value | ||||||||||||||||
Note | US$’000 | US$’000 | US$’000 | US$’000 | |||||||||||||||
December 31, 2020 | |||||||||||||||||||
Loans and receivables at amortised cost | |||||||||||||||||||
Trade receivables | 18 | 20,025 | 0 | 20,025 | 20,025 | ||||||||||||||
Cash and cash equivalents | 19 | 27,327 | 0 | 27,327 | 27,327 | ||||||||||||||
Finance lease receivable | 16, 18 | 506 | 0 | 506 | 506 | ||||||||||||||
47,858 | 0 | 47,858 | 47,858 | ||||||||||||||||
Liabilities at amortised cost | |||||||||||||||||||
Exchangeable note | 24 | 0 | (82,664 | ) | (82,664 | ) | (82,664 | ) | |||||||||||
Lease liabilities | 25 | (18,741 | ) | 0 | (18,741 | ) | (18,741 | ) | |||||||||||
Trade and other payables (excluding deferred income) | 22 | (19,890 | ) | 0 | (19,890 | ) | (19,890 | ) | |||||||||||
Provisions | 23 | (416 | ) | 0 | (416 | ) | (416 | ) | |||||||||||
(39,047 | ) | (82,664 | ) | (121,711 | ) | (121,711 | ) | ||||||||||||
Fair value through profit and loss (FVPL) | |||||||||||||||||||
Exchangeable note bond call option | 24 | 0 | 150 | 150 | 150 | ||||||||||||||
Exchangeable note equity conversion option | 24 | 0 | (1,370 | ) | (1,370 | ) | (1,370 | ) | |||||||||||
0 | (1,220 | ) | (1,220 | ) | (1,220 | ) | |||||||||||||
8,811 | (83,884 | ) | (75,073 | ) | (75,073 | ) |
¹ The maturity of the Remuneration CommitteeExchangeable Notes is based on the contractual maturity date of April 1, 2045 and does not take into account the potential exercise of put and call options in the next five years or the exchange agreements entered into with five exchangeable note holders in December 2021.
The valuation techniques used for instruments categorised as level 2 are described below:
155
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2021 | Note | Effective interest rate | Total US$’000 | 6 mths or less US$’000 | 6 –12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | > 5 years US$’000 | |||||||||||||||||||||||
Cash and cash equivalents | 19 | 0.01 | % | 25,910 | 25,910 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Lease receivable | 16,18 | 4.0 | % | 293 | 81 | 61 | 89 | 62 | 0 | ||||||||||||||||||||||
Exchangeable note¹ | 24 | 4.8 | % | (83,312 | ) | 0 | 0 | 0 | 0 | (83,312 | ) | ||||||||||||||||||||
Other borrowings | 22 | 0 | % | (31 | ) | 0 | (31 | ) | 0 | 0 | 0 | ||||||||||||||||||||
Lease payable on Right of Use assets | 25 | 5.0 | % | (15,668 | ) | (973 | ) | (905 | ) | (1,554 | ) | (4,516 | ) | (7,720 | ) | ||||||||||||||||
Lease payable on sale & leaseback transactions | 25 | 5.0 | % | (177 | ) | (51 | ) | (51 | ) | (75 | ) | 0 | 0 | ||||||||||||||||||
Total | (72,985 | ) | 24,967 | (926 | ) | (1,540 | ) | (4,454 | ) | (91,032 | ) |
¹ The maturity of the Exchangeable Notes is based on the contractual maturity date of April 1, 2045 and does not take into account the potential exercise of put and call options in the next five years or the exchange agreements entered into with five exchangeable note holders in December 2021.
As at December 31, 2019 | Note | Effective interest rate | Total US$’000 | 6 mths or less US$’000 | 6 –12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | > 5 years US$’000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2020 | Note | Effective interest rate | Total US$’000 | 6 mths or less US$’000 | 6 –12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | > 5 years US$’000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 19 | 1.1 | % | 15,231 | 15,231 | — | — | — | — | 19 | 0.1 | % | 27,327 | 27,327 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 20 | 1.3 | % | 1,169 | — | 1,169 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease receivable | 16,18 | 4.0 | % | 684 | 157 | 124 | 202 | 201 | — | 16,18 | 4.0 | % | 506 | 120 | 95 | 142 | 149 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Licence payments | 23 | 8.1 | % | (1,307 | ) | (1,307 | ) | — | — | — | — | 23 | 8.1 | % | (194 | ) | (194 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
Exchangeable note | 25 | 4.8 | % | (82,021 | ) | — | — | — | — | (82,021 | ) | 24 | 4.8 | % | (82,664 | ) | 0 | 0 | 0 | 0 | (82,664 | ) | |||||||||||||||||||||||||||||||||||||||||
Other borrowings | 22 | 0 | % | (31 | ) | 0 | 0 | (31 | ) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease payable on Right of Use assets | 26 | 5.0 | % | (19,630 | ) | (1,136 | ) | (1,020 | ) | (2,012 | ) | (4,840 | ) | (10,622 | ) | 25 | 5.0 | % | (18,461 | ) | (1,022 | ) | (1,032 | ) | (1,914 | ) | (4,856 | ) | (9,637 | ) | |||||||||||||||||||||||||||||||||
Lease payable on sale & leaseback transactions | 26 | 5.0 | % | (519 | ) | (122 | ) | (125 | ) | (95 | ) | (177 | ) | — | 25 | 5.0 | % | (280 | ) | (49 | ) | (50 | ) | (104 | ) | (77 | ) | 0 | |||||||||||||||||||||||||||||||||||
Total | (86,393 | ) | 12,823 | 148 | (1,905 | ) | (4,816 | ) | (92,643 | ) | (73,797 | ) | 26,182 | (987 | ) | (1,907 | ) | (4,784 | ) | (92,301 | ) |
¹ The maturity of the Exchangeable Notes is based on the contractual maturity date of April 1, 2045 and does not take into account the potential exercise of put and call options in the next five years or the exchange agreements entered into with five exchangeable note holders in December 2021.
As at December 31, 2018 | Note | Effective interest rate | Total US$’000 | 6 mths or less US$’000 | 6 –12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | > 5 years US$’000 | ||||||||||||||||||||||||
Cash and cash equivalents | 19 | 1.8 | % | 30,277 | 30,277 | — | — | — | — | |||||||||||||||||||||||
Short-term investments | 20 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Lease receivable | 18 | 4.0 | % | 835 | 191 | 168 | 238 | 238 | — | |||||||||||||||||||||||
Licence payments | 23 | 3.0 | % | (1,207 | ) | (1,207 | ) | — | — | — | — | |||||||||||||||||||||
Finance lease payable | 26 | 4.8 | % | (962 | ) | (217 | ) | (219 | ) | (252 | ) | (274 | ) | — | ||||||||||||||||||
Exchangeable note | 25 | 4.8 | % | (81,382 | ) | — | — | — | — | (81,382 | ) | |||||||||||||||||||||
Total | (52,439 | ) | 29,044 | (51 | ) | (14 | ) | (36 | ) | (81,382 | ) |
156
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
December 31, 2019 US$‘000 | December 31, 2018 US$‘000 | |||||||
Fixed rate instruments | ||||||||
Fixed rate financial liabilities (licence fees) | (1,307 | ) | (1,207 | ) | ||||
Fixed rate financial liabilities (exchangeable note) | (82,021 | ) | (81,382 | ) | ||||
Fixed rate financial liabilities (lease payables) | (20,149 | ) | (962 | ) | ||||
Financial assets (short-term deposits and short-term investments) | 10,125 | 23,423 | ||||||
Financial assets (lease receivables) | 684 | 835 | ||||||
(92,668 | ) | (59,293 | ) |
December 31, 2021 US$‘000 | December 31, 2020 US$‘000 | |||||||
Fixed rate instruments | ||||||||
Fixed rate financial liabilities (licence fees) | 0 | (194 | ) | |||||
Fixed rate financial liabilities (exchangeable note) | (83,312 | ) | (82,664 | ) | ||||
Fixed rate financial liabilities (borrowings) | (31 | ) | (31 | ) | ||||
Fixed rate financial liabilities (lease payables) | (15,844 | ) | (18,741 | ) | ||||
Financial assets (short-term deposits and short-term investments) | 3,121 | 3,118 | ||||||
Financial assets (lease receivables) | 293 | 506 | ||||||
(95,773 | ) | (98,006 | ) |
As at December 31, 2019 US$’000 | Carrying amount US$’000 | Contractual cash flows US$’000 | 6 mths or less US$’000 | 6 mths – 12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | >5 years US$’000 | |||||||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2021 US$’000 | Carrying amount US$’000 | Contractual cash flows US$’000 | 6 mths or less US$’000 | 6 mths – 12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | >5 years US$’000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade & other payables | 16,947 | 16,947 | 16,947 | — | — | — | — | 15,127 | 15,127 | 15,127 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Lease payable on Right of Use assets | 19,630 | 19,630 | 1,136 | 1,020 | 2,012 | 4,840 | 10,622 | 15,668 | 15,668 | 973 | 905 | 1,554 | 4,516 | 7,720 | ||||||||||||||||||||||||||||||||||||||||||
Lease payable on sale & leaseback transactions | 519 | 519 | 122 | 125 | 95 | 177 | — | 177 | 177 | 51 | 51 | 75 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Exchangeable notes | 82,021 | 99,900 | — | — | — | — | 99,900 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 31 | 31 | 0 | 31 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchangeable notes ¹ | 83,312 | 99,900 | 0 | 0 | 0 | 0 | 99,900 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchangeable note interest | 999 | 101,898 | 1,998 | 1,998 | 3,996 | 11,988 | 81,918 | 999 | 93,906 | 1,998 | 1,998 | 3,996 | 11,988 | 73,926 | ||||||||||||||||||||||||||||||||||||||||||
120,116 | 238,894 | 20,203 | 3,143 | 6,103 | 17,005 | 192,440 | 115,314 | 224,809 | 18,149 | 2,985 | 5,625 | 16,504 | 181,546 |
As at December 31, 2018 US$’000 | Carrying amount US$’000 | Contractual cash flows US$’000 | 6 mths or less US$’000 | 6 mths – 12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | >5 years US$’000 | |||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||
Trade & other payables | 16,908 | 16,908 | 16,908 | — | — | — | — | |||||||||||||||||||||
Exchangeable notes | 81,382 | 99,900 | — | — | — | — | 99,900 | |||||||||||||||||||||
Exchangeable note interest | 999 | 105,894 | 1,998 | 1,998 | 3,996 | 11,988 | 85,914 | |||||||||||||||||||||
99,289 | 222,702 | 18,906 | 1,998 | 3,996 | 11,988 | 185,814 |
157
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
As at December 31, 2020 US$’000 | Carrying amount US$’000 | Contractual cash flows US$’000 | 6 mths or less US$’000 | 6 mths – 12 mths US$’000 | 1-2 years US$’000 | 2-5 years US$’000 | >5 years US$’000 | |||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||
Trade & other payables | 24,335 | 24,335 | 24,335 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Lease payable on Right of Use assets | 18,461 | 18,461 | 1,022 | 1,032 | 1,914 | 4,856 | 9,637 | |||||||||||||||||||||
Lease payable on sale & leaseback transactions | 280 | 280 | 49 | 50 | 104 | 77 | 0 | |||||||||||||||||||||
Other borrowings | 31 | 31 | 0 | 0 | 31 | 0 | 0 | |||||||||||||||||||||
Exchangeable notes ¹ | 82,664 | 99,900 | 0 | 0 | 0 | 0 | 99,900 | |||||||||||||||||||||
Exchangeable note interest | 999 | 97,902 | 1,998 | 1,998 | 3,996 | 11,988 | 77,922 | |||||||||||||||||||||
126,770 | 240,909 | 27,404 | 3,080 | 6,045 | 16,921 | 187,459 |
EUR | GBP | SEK | CAD | BRL | Other | |||||||||||||||||||
As at December 31, 2021 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||
Cash | 327 | 115 | 5 | 4,617 | 1,370 | 0 | ||||||||||||||||||
Trade and other receivable | 464 | 58 | 0 | 488 | 1,538 | 0 | ||||||||||||||||||
Trade and other payables | (2,456 | ) | (28 | ) | (11 | ) | (166 | ) | (629 | ) | 0 | |||||||||||||
Total exposure | (1,665 | ) | 145 | (6 | ) | 4,939 | 2,279 | 0 |
As at December 31, 2019 | EUR | GBP | SEK | CAD | BRL | Other | ||||||||||||||||||||||||||||||||||||||||||
US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | |||||||||||||||||||||||||||||||||||||||||||
EUR | GBP | SEK | CAD | BRL | Other | |||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2020 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | ||||||||||||||||||||||||||||||||||||||||||
Cash | 394 | 138 | 10 | 3,265 | 238 | — | 1,229 | 152 | 9 | 2,859 | 776 | 0 | ||||||||||||||||||||||||||||||||||||
Trade and other receivable | 1,247 | 71 | — | 337 | 1,871 | — | 1,105 | 63 | 0 | 3,191 | 1,357 | 0 | ||||||||||||||||||||||||||||||||||||
Trade and other payables | (2,350 | ) | (27 | ) | (142 | ) | (47 | ) | (796 | ) | — | (2,821 | ) | (57 | ) | (1 | ) | (449 | ) | (529 | ) | 0 | ||||||||||||||||||||||||||
Total exposure | (709 | ) | 182 | (132 | ) | 3,555 | 1,313 | — | (487 | ) | 158 | 8 | 5,601 | 1,604 | 0 |
As at December 31, 2018 | EUR | GBP | SEK | CAD | BRL | Other | ||||||||||||||||||
US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | US$‘000 | |||||||||||||||||||
Cash | 81 | 122 | 9 | 2,512 | 322 | 6 | ||||||||||||||||||
Trade and other receivable | 894 | 113 | 38 | 430 | 2,065 | 6 | ||||||||||||||||||
Trade and other payables | (1,995 | ) | (51 | ) | (146 | ) | (103 | ) | (1,621 | ) | (2 | ) | ||||||||||||
Total exposure | (1,020 | ) | 184 | (99 | ) | 2,839 | 766 | 10 |
158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
Profit or loss US$’000 | ||||
December 31, | ||||
Euro | 780 | |||
December 31, | ||||
Euro | 541 |
Profit or Loss US$000 | ||||
December 31, | ||||
Euro | (953 | ) | ||
December 31, | ||||
Euro | ( | ) |
159
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
Carrying Value December 31, 2021 US$’000 | Carrying Value December 31, 2020 US$’000 | |||||||
Third party trade receivables (Note 18) | 13,290 | 20,025 | ||||||
Finance lease income receivable (Note 18) | 293 | 506 | ||||||
Cash and cash equivalents (Note 19) | 25,910 | 27,327 | ||||||
39,493 | 47,858 |
Carrying Value December 31, 2019 US$’000 | Carrying Value December 31, 2018 US$’000 | |||||||
Third party trade receivables (Note 18) | 17,754 | 21,318 | ||||||
Finance lease income receivable (Note 18) | 684 | 835 | ||||||
Cash & cash equivalents (Note 19) | 15,231 | 30,277 | ||||||
Short-term investments (Note 20) | 1,169 | — | ||||||
34,838 | 52,430 |
Carrying Value December 31, 2021 US$’000 | Carrying Value December 31, 2020 US$’000 | |||||||
United States | 5,822 | 10,730 | ||||||
Euro-zone countries | 1,072 | 1,360 | ||||||
United Kingdom | 118 | 98 | ||||||
Other European countries | 0 | 13 | ||||||
Other regions | 6,571 | 8,330 | ||||||
13,583 | 20,531 |
Carrying Value December 31, 2019 US$’000 | Carrying Value December 31, 2018 US$’000 | |||||||
United States | 8,647 | 9,472 | ||||||
Euro-zone countries | 786 | 1,502 | ||||||
United Kingdom | 121 | 132 | ||||||
Other European countries | 7 | 84 | ||||||
Other regions | 8,877 | 10,963 | ||||||
18,438 | 22,153 |
Carrying Value December 31, 2019 US$’000 | Carrying Value December 31, 2018 US$’000 | |||||||
End-user customers | 9,453 | 9,253 | ||||||
Distributors | 7,199 | 11,860 | ||||||
Non-governmental organisations | 1,786 | 1,040 | ||||||
18,438 | 22,153 |
Carrying Value December 31, 2021 US$’000 | Carrying Value December 31, 2020 US$’000 | |||||||
End-user customers | 6,923 | 11,812 | ||||||
Distributors | 6,220 | 8,186 | ||||||
Non-governmental organisations | 440 | 533 | ||||||
13,583 | 20,531 |
160
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. | CAPITAL AND FINANCIAL RISK MANAGEMENT (CONTINUED) |
Gross | Impairment | Expected Credit Loss Rate | Gross | Impairment | Expected Credit Loss Rate | |||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||||||
US$’000 | US$’000 | % | US$’000 | US$’000 | % | |||||||||||||||||||
Not past due | 10,924 | 8 | 0.1 | % | 13,917 | 4 | — | |||||||||||||||||
Past due 0-30 days | 3,743 | 6 | 0.2 | % | 3,761 | 17 | 0.5 | % | ||||||||||||||||
Past due 31-120 days | 2,115 | 27 | 1.3 | % | 3,438 | 36 | 1.0 | % | ||||||||||||||||
Greater than 120 days | 6,415 | 5,402 | 84.2 | % | 4,404 | 4,145 | 94.1 | % | ||||||||||||||||
23,197 | 5,443 | — | 25,520 | 4,202 | — |
Gross | Impairment | Expected Credit Loss Rate | Gross | Impairment | Expected Credit Loss Rate | |||||||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||||||
US$’000 | US$’000 | % | US$’000 | US$’000 | % | |||||||||||||||||||
Not past due | 8,461 | 0 | 0 | % | 16,754 | 112 | 0.7 | % | ||||||||||||||||
Past due 0-30 days | 2,423 | 1 | 0.1 | % | 1,829 | 222 | 12.1 | % | ||||||||||||||||
Past due 31-120 days | 1,981 | 97 | 4.9 | % | 1,755 | 60 | 3.4 | % | ||||||||||||||||
Greater than 120 days | 3,011 | 2,888 | 73.0 | % | 3,609 | 3,528 | 97.8 | % | ||||||||||||||||
15,876 | 2,986 | 0 | 23,947 | 3,922 | 0 |
2019 | 2018 | 2017 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Balance at January 1 | 4,202 | 3,590 | 3,171 | |||||||||
Charged to costs and expenses | 1,276 | 682 | 662 | |||||||||
Amounts written off during the year | (35 | ) | (70 | ) | (243 | ) | ||||||
Balance at December 31 | 5,443 | 4,202 | 3,590 |
2021 | 2020 | 2019 | ||||||||||
US$’000 | US$’000 | US$’000 | ||||||||||
Balance at January 1 | 3,922 | 5,443 | 4,202 | |||||||||
Charged to costs and expenses | 76 | 166 | 1,276 | |||||||||
Amounts written off during the year | (1,012 | ) | (1,687 | ) | (35 | ) | ||||||
Balance at December 31 | 2,986 | 3,922 | 5,443 |
161
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Level 1 | Level 2 | Total carrying amount | Fair Value | |||||||||||||||||
Note | US$’000 | US$’000 | US$’000 | US$’000 | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Loans and receivables at amortised cost | ||||||||||||||||||||
Trade receivables | 18 | 17,754 | — | 17,754 | 17,754 | |||||||||||||||
Cash and cash equivalents | 19 | 15,231 | — | 15,231 | 15,231 | |||||||||||||||
Investments (deposits) | 20 | 1,169 | — | 1,169 | 1,169 | |||||||||||||||
Finance lease receivable | 16,18 | 684 | — | 684 | 684 | |||||||||||||||
34,838 | — | 34,838 | 34,838 | |||||||||||||||||
Liabilities at amortised cost | ||||||||||||||||||||
Exchangeable note | 25 | — | (82,021 | ) | (82,021 | ) | (82,021 | ) | ||||||||||||
Lease liabilities | 26 | (20,149 | ) | — | (20,149 | ) | (20,149 | ) | ||||||||||||
Trade and other payables (excluding deferred income) | 23 | (16,655 | ) | — | (16,655 | ) | (16,655 | ) | ||||||||||||
Provisions | 24 | (50 | ) | — | (50 | ) | (50 | ) | ||||||||||||
(36,854 | ) | (82,021 | ) | (118,875 | ) | (118,875 | ) | |||||||||||||
Fair value through profit and loss (FVPL) | ||||||||||||||||||||
Exchangeable note bond call option | 25 | — | — | — | — | |||||||||||||||
Exchangeable note equity conversion option | 25 | — | (4 | ) | (4 | ) | (4 | ) | ||||||||||||
Exchangeable note bond put option | 25 | — | — | — | — | |||||||||||||||
— | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||
(2,016 | ) | (82,025 | ) | (84,041 | ) | (84,041 | ) |
29. |
Level 1 | Level 2 | Total carrying amount | Fair Value | |||||||||||||||||
Note | US$’000 | US$’000 | US$’000 | US$’000 | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Loans and receivables at amortised cost | ||||||||||||||||||||
Trade receivables | 18 | 21,318 | — | 21,318 | 21,318 | |||||||||||||||
Cash and cash equivalents | 19 | 30,277 | — | 30,277 | 30,277 | |||||||||||||||
Finance lease receivable | 16,18 | 835 | — | 835 | 835 | |||||||||||||||
52,430 | — | 52,430 | 52,430 | |||||||||||||||||
Liabilities at amortised cost | ||||||||||||||||||||
Exchangeable note | 25 | — | (81,382 | ) | (81,382 | ) | (81,382 | ) | ||||||||||||
Finance lease payable | 26 | (962 | ) | — | (962 | ) | (962 | ) | ||||||||||||
Trade and other payables (excluding deferred income) | 23 | (16,596 | ) | — | (16,596 | ) | (16,596 | ) | ||||||||||||
Provisions | 24 | (50 | ) | — | (50 | ) | (50 | ) | ||||||||||||
(17,608 | ) | (81,382 | ) | (98,990 | ) | (98,990 | ) | |||||||||||||
Fair value through profit and loss (FVPL) | ||||||||||||||||||||
Exchangeable note bond call option | 25 | — | — | — | — | |||||||||||||||
Exchangeable note equity conversion option | 25 | — | (238 | ) | (238 | ) | (238 | ) | ||||||||||||
Exchangeable note bond put option | 25 | — | — | — | — | |||||||||||||||
— | (238 | ) | (238 | ) | (238 | ) | ||||||||||||||
34,822 | (81,620 | ) | (46,798 | ) | (46,798 | ) |
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES |
Note | Borrowings & derivative financial instruments US$’000 | Lease liabilities US$’000 | ||||||||||
Balance at 1 January 2019 | 25,26 | 81,620 | 962 | |||||||||
Cash-flows: | ||||||||||||
Interest paid | (3,996 | ) | — | |||||||||
Repayment | — | (3,533 | ) | |||||||||
Non-cash: | ||||||||||||
Interest charged | 3,996 | — | ||||||||||
Adoption of IFRS 16 (Note 13) | — | 21,185 | ||||||||||
Additions (related to Right of Use assets) | — | 679 | ||||||||||
Exchange adjustment | — | (91 | ) | |||||||||
Accretion interest | 639 | 947 | ||||||||||
Fair value | (234 | ) | — | |||||||||
Balance at 31 December 2019 | 25,26 | 82,025 | 20,149 |
Note | Borrowings & derivative financial instruments US$’000 | Lease liabilities US$’000 | ||||||||||
Balance at 1 January 2018 | 25,26 | 95,185 | 886 | |||||||||
Cash-flows: | ||||||||||||
Interest paid | (4,503 | ) | — | |||||||||
Repurchase | (12,042 | ) | — | |||||||||
Repayment. | — | (374 | ) | |||||||||
Proceeds | — | 481 | ||||||||||
Non-cash: | ||||||||||||
Interest charged | 4,352 | — | ||||||||||
Reduction in accrued interest payable | 150 | — | ||||||||||
Exchange adjustment | — | (31 | ) | |||||||||
Accretion interest | 689 | — | ||||||||||
Fair value | (2,211 | ) | — | |||||||||
Balance at 31 December 2018 | 25,26 | 81,620 | 962 |
Note | Borrowings & derivative financial instruments US$’000 | Lease liabilities US$’000 | |||||||||
Balance at January 1, 2021 | 22,24,25 | 84,065 | 18,741 | ||||||||
Cash-flows: | |||||||||||
Interest paid | (3,996 | ) | (11 | ) | |||||||
Repayment | 0 | (2,939 | ) | ||||||||
Non-cash: | |||||||||||
Interest charged | 3,996 | 0 | |||||||||
Additions (related to Right of Use assets) | 0 | 71 | |||||||||
Exchange adjustment | 0 | (820 | ) | ||||||||
Accretion interest | 648 | 803 | |||||||||
Fair value | 8 | (1,370 | ) | 0 | |||||||
Balance at December 31, 2021 | 22, 24,25 | 83,343 | 15,845 |
162
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29. |
Note | Borrowings & derivative financial instruments US$’000 | Lease liabilities US$’000 | |||||||||
Balance at 1 January 2020 | 22,24,25 | 82,025 | 20,149 | ||||||||
Cash-flows: | |||||||||||
Interest paid | (3,996 | ) | 0 | ||||||||
Proceeds from government Covid-19 loan (Note 24) | 31 | 0 | |||||||||
Repayment | 0 | (3,240 | ) | ||||||||
Non-cash: | |||||||||||
Interest charged | 3,996 | 0 | |||||||||
Additions (related to Right of Use assets) | 0 | 224 | |||||||||
Disposals¹ | 0 | (216 | ) | ||||||||
Exchange adjustment | 0 | 928 | |||||||||
Accretion interest | 8 | 643 | 896 | ||||||||
Fair value | 1,366 | 0 | |||||||||
Balance at 31 December 2020 | 22, 24,25 | 84,065 | 18,741 |
¹ Disposal of years have seen a steady migration of customers away from using the Western Blot testing format for diagnosing Lyme in favour of alternative testing platforms. Production volumes at our Carlsbad, California facility (which specialises in Western Blot manufacturing) have declined steadilyLease liabilities relates to the extent that it no longer makes economic sense to continue. Consequently,early termination of a lease for a right-of-use building asset in the early part of 2020, management decided to close thisCarlsbad, California. This facility fromwas closed in June 30, 2020.
30. | POST BALANCE SHEET EVENTS |
• | the Group paid a total amount of US$86,730,000 to retire Exchangeable Notes with a carrying value of US$83,312,000 at December 31, 2021. Each holder that was party to the agreement received US$0.87 of cash per $1 nominal value of the Notes, and |
• | the Company also issued 5,333,000 ADSs (21,332,000 ‘A’ Ordinary shares) representing the equivalent of $0.08 of the Company’s ADS (based upon the 5-day trailing VWAP of the ADSs on NASDAQ on December 9, 2021, discounted by 13%) per $1 nominal value of the Notes, as partial consideration for the exchange of the notes. |
163
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
POST BALANCE SHEET EVENTS (CONTINUED) |
164
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31. | ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) |
At December 31, 2021 the carrying value of capitalised development costs was US$17,679,000 (2020: US$13,444,000) (see Item 18, Note 14 to the consolidated financial statements). The increase in 2021 was mainly as a result of additions of US$6,771,000. In 2021, an impairment charge of US$2,053,000 was incurred. This charge was partially offset by additions of US$6,771,000 and amortisation of US$482,000.
• | Significant underperformance relative to expected historical or projected future operating results; |
• | Significant changes in the manner of our use of the acquired assets or the strategy for our overall business; |
• | Obsolescence of products; |
• | Significant decline in our stock price for a sustained period; and |
• | Our market capitalisation relative to net book value. |
165
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
166
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31. | ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) |
• | Determining whether or not a contract contains a lease. Company assessed if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. |
• | Significant judgement is also required in establishing whether or not it is reasonably certain that an extension option will be exercised, considering whether or not it is reasonably certain that a termination option will not be exercised. In making this decision, management considered the facts and circumstances that create a significant economic incentive. Factors specific to the asset, the entity and the wider market were also considered. |
• | Further, critical judgement is involved in determining whether or not variable lease payments are truly variable, or in-substance fixed. In-substance variable lease payments are treated as fixed lease payments. |
167
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
32. | GROUP UNDERTAKINGS |
Name and registered office | Principal activity | Principal Country of incorporation and operation | Group % holding | |||
Trinity Biotech IDA Business Park, Bray Co. Wicklow, Ireland | Manufacture and of diagnostic test kits | Ireland | 100% | |||
Trinity IDA Business Park, Bray Co. Wicklow, Ireland | Research and development | Ireland | 100% | |||
IDA Business Park, Bray Co. Wicklow, Ireland | Trading | Ireland | 100% | |||
IDA Business Park, Bray Co. Wicklow, Ireland | Dormant | Ireland | 100% | |||
Trinity Biotech 1, rue Bender, | Investment and provision of financial services | Luxembourg | 100% | |||
Trinity Biotech Girts Road, NY 14702, USA | Holding Company | U.S.A. | 100% | |||
Clark Laboratories Inc Trading as Trinity Biotech Girts Road, Jamestown | Manufacture and sale of diagnostic test kits | U.S.A. | 100% | |||
5919 Farnsworth Court | Manufacture and sale of diagnostic test kits | U.S.A. | 100% | |||
2711 Centerville Road, Suite 400 | Management services company | U.S.A. | 100% | |||
Girts Road, | Sale of diagnostic test kits | U.S.A. | 100% | |||
4231 E 75th Terrace MO 64132, USA | Manufacture and sale of diagnostic test kits and instrumentation | U.S.A | 100% |
168
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
32. | GROUP UNDERTAKINGS (CONTINUED) |
Name and registered office | Principal activity | Principal Country of incorporation and operation | Group % holding | |||
Phoenix Bio-tech Corp. 1166 South Service Road West Oakville, ON L6L 5T7 Canada. | Dormant | Canada | 100% | |||
Dag Hammarskjöldsv 52A |
Sweden | 100% | |||||
Fiomi Diagnostics Dag Hammarskjöldsv 52A SE-752 37 Uppsala Sweden | Discontinued operation | Sweden | 100% | |||
Comercio e Importacao Ltda Ipiranga Sao Paulo Brazil | Sale of diagnostic test kits | Brazil | 100% | |||
Trinity Biotech Mills and Reeve LLP | Sales & marketing activties | UK | 100% | |||
60 Pineview Drive | Manufacture and sale of autoimmune products and laboratory services | U.S.A. | 100% | |||
5022 South Service Road Canada | Manufacture and sale of autoimmune products and | Canada | 100% | |||
Trinity Biotech Investment Ltd PO Box 309 Ugland House Grand Cayman KY1-1104 Cayman Islands | Investment and provision of financial services | Cayman Islands | 100% |
33. | AUTHORISATION FOR ISSUE |
TRINITY BIOTECH PLC | ||
By | ||
Director/ | ||
Chief Executive Officer | ||
Date: May 2, 2022 | ||
Mr John Gillard | ||
Company secretary/ | ||
Chief Financial Officer | ||
Date: May 2, 2022 |
Item 19 | Exhibits |
Exhibit No. | Description of Exhibit |
101.INS | XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. |
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Label Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |