Exhibit 99.1
| Mobilicom Limited |  | |
| Appendix 4E | ||
| Preliminary (unaudited) final report |
1. Company details
| Name of entity: | Mobilicom Limited | |
| ABN: | 26 617 155 978 | |
| Reporting period: | For the year ended 31 December 2022 | |
| Previous period: | For the year ended 31 December 2021 |
2. Results for announcement to the market
| $ | ||||||||
| Revenues from ordinary activities | down | 35.0% to | 2,327,058 | |||||
| Loss from ordinary activities after tax attributable to the owners of Mobilicom Limited | down | 78.9% to | (571,985 | ) | ||||
| Loss for the year attributable to the owners of Mobilicom Limited | down | 78.9% to | (571,985 | ) | ||||
Dividends
There were no dividends paid, recommended or declared during the current financial period.
Comments
The loss for the consolidated entity after providing for income tax amounted to $571,985 (31 December 2021: $2,704,845).
Revenues
Total revenue for the 2022 financial year decreased to $2,327,058 (35%) from the corresponding period (31 December 2021: $3,578,603).
The decrease in revenue for the period was mainly due to supply chain challenges negatively affecting customers’ production capabilities, which resulted in lower orders for Mobilicom’s products and services. Furthermore, supply chain challenges limited the company’s ability to deliver on existing orders.
Total government grants of $923,033, up 17% on the prior corresponding period (31 December 2021: $787,544).
At 31 December 2022, the backlog to be delivered and invoiced in 2023 totalled $620,000.
Expenses
Total expenses increased by 44% to $8,159,896 compared to the prior corresponding period (31 December 2021: $5,686,202).
Sales and marketing expenses increased by 46% to $2,415,883 compared to prior corresponding period (31 December 2021: $1,657,958). The company increased its sale and marketing investment efforts, mainly in the U.S. and Europe drone and robotics markets, as also stated in the company’s Nasdaq listing prospectus (under key growth strategies). The success of this investment was reflected as increase in the number of our design wins and an increase to 8 in the number of Tier-1 customers we are engaged with.
General and administrative expenses increased by 84% to $2,535,610 compared to prior corresponding period (31 December 2021: $1,376,829) mainly as a result of the Nasdaq listing related costs, as well as certain non-recurring costs.
Statement of financial position
Cash reserves at year end were $18,976,542 (31 December 2021: $3,996,300) and net assets amounted to $17,639,620 (31 December 2021: $3,329,119).
Net cash used in operating activities during 2022 was $4,497,493. This, with the cash reserves balance of $18,976,542, will allow the company sufficient funding to supports the company’s growth and strategic plans execution.
| Mobilicom Limited | | |
| Appendix 4E | ||
| Preliminary (unaudited) final report |
3. Net tangible assets
| Reporting period | Previous period | |||||||
| Cents | Cents | |||||||
| Net tangible assets per ordinary security | 1.33 | 1.04 | ||||||
4. Control gained over entities
Not applicable.
5. Loss of control over entities
Not applicable.
6. Dividends
Current period
There were no dividends paid, recommended or declared during the current financial period.
Previous period
There were no dividends paid, recommended or declared during the previous financial period.
7. Dividend reinvestment plans
Not applicable.
8. Details of associates and joint venture entities
Not applicable.
9. Foreign entities
Details of origin of accounting standards used in compiling the report:
Not applicable.
10. Audit qualification or review
Details of audit/review dispute or qualification (if any):
The unaudited summary financial statements of Mobilicom Limited for the financial year ended 31 December 2022 are attached. At the time of issuing this Appendix 4E, the audit procedures are ongoing.
11. Attachments
Details of attachments (if any):
The preliminary (unaudited) financial statements report of Mobilicom Limited for the year ended 31 December 2022 is attached.
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| Mobilicom Limited | | |
| Appendix 4E | ||
| Preliminary (unaudited) final report |
12. Signed
| Signed | /s/ Oren Elkayam | Date: 28 February 2023 |
| Oren Elkayam | ||
| Chairman and Managing Director | ||
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| ||
Mobilicom Limited
ABN 26 617 155 978
Preliminary (Unaudited) Financial Statements - 31 December 2022
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| Mobilicom Limited | | |
| Corporate directory | ||
31 December 2022 |
| Directors | Oren Elkayam (Chairman and Managing Director) | |
| Yossi Segal (Executive Director) | ||
| Campbell McComb (Non-executive Director) | ||
| Jonathan Brett (Non-executive Director) | ||
| Company secretary | Justin Mouchacca | |
| Registered office | C/- JM Corporate Services | |
| Level 21 | ||
| 459 Collins Street | ||
| Melbourne, VIC 3000 | ||
| Ph: 03 8630 3321 | ||
| Share register | Boardroom Pty Limited | |
| Level 12, 225 George Street | ||
| Sydney, NSW, 2000 | ||
| Ph: 1300 737 760 (within Australia) | ||
| Ph: +61 2 9290 9600 | ||
| Auditor | BDO Audit Pty Ltd | |
| Collins Square, Tower 4 | ||
| Level 18, 727 Collins Street | ||
| Melbourne, Victoria, 3008 | ||
| Stock exchange listing | Mobilicom Limited shares are listed on the Australian Securities Exchange (ASX code: MOB) | |
| Website | https://mobilicom-ltd.com.au | |
| Corporate Governance Statement | https://mobilicom-ltd.com.au/charters/ |
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| Mobilicom Limited | | |
| Consolidated statement of profit or loss and other comprehensive income | ||
For the year ended 31 December 2022 | ||
| Consolidated | ||||||||||
| 31 December 2022 | 31 December 2021 | |||||||||
| Note | $ | $ | ||||||||
| Revenue | 2,327,058 | 3,578,603 | ||||||||
| Cost of sales | (1,089,334 | ) | (1,192,461 | ) | ||||||
| Government grants | 923,033 | 787,544 | ||||||||
| Interest received | 168,843 | 1,580 | ||||||||
| Foreign exchange gains/(losses) | 1,503,831 | (184,743 | ) | |||||||
| Fair value gain from financial liability | 3,768,466 | - | ||||||||
| Other income | 6,364,173 | 604,381 | ||||||||
| Expenses | ||||||||||
| Selling and marketing expenses | (2,415,883 | ) | (1,657,958 | ) | ||||||
| Research and development | (2,505,082 | ) | (2,374,700 | ) | ||||||
| General and administration expenses | (2,535,610 | ) | (1,376,829 | ) | ||||||
| Share based payments | (309,256 | ) | (223,171 | ) | ||||||
| Finance costs | (394,065 | ) | (53,544 | ) | ||||||
| Loss before income tax expense | (557,999 | ) | (2,695,679 | ) | ||||||
| Income tax expense | (13,986 | ) | (9,166 | ) | ||||||
| Loss after income tax expense for the year attributable to the owners of Mobilicom Limited | (571,985 | ) | (2,704,845 | ) | ||||||
| Other comprehensive income | ||||||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||||||
| Re-measurement of defined benefit plans | 366,517 | (34,197 | ) | |||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||||
| Foreign currency translation | (925,913 | ) | 206,363 | |||||||
| Other comprehensive income for the year, net of tax | (559,396 | ) | 172,166 | |||||||
| Total comprehensive income for the year attributable to the owners of Mobilicom Limited | (1,131,381 | ) | (2,532,679 | ) | ||||||
| Cents | Cents | |||||||||
| Basic losses per share | 7 | (0.09 | ) | (0.91 | ) | |||||
| Diluted losses per share | 7 | (0.09 | ) | (0.91 | ) | |||||
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
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| Mobilicom Limited | | |
| Consolidated statement of financial position | ||
As at 31 December 2022 | ||
| Consolidated | ||||||||||
| 31 December 2022 | 31 December 2021 | |||||||||
| Note | $ | $ | ||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 18,976,542 | 3,996,300 | ||||||||
| Trade and other receivables | 828,351 | 695,541 | ||||||||
| Inventories | 617,371 | 490,990 | ||||||||
| Total current assets | 20,422,264 | 5,182,831 | ||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | 135,878 | 152,571 | ||||||||
| Right-of-use assets | 426,817 | 610,197 | ||||||||
| Total non-current assets | 562,695 | 762,768 | ||||||||
| Total assets | 20,984,959 | 5,945,599 | ||||||||
| Liabilities | ||||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 1,608,846 | 1,151,455 | ||||||||
| Lease liabilities | 333,850 | 305,414 | ||||||||
| Financial Liability | 2 | 1,097,520 | - | |||||||
| Total current liabilities | 3,040,216 | 1,456,869 | ||||||||
| Non-current liabilities | ||||||||||
| Lease liabilities | 95,403 | 336,246 | ||||||||
| Employee benefits | 203,636 | 818,190 | ||||||||
| Governmental liabilities on grants received | 6,084 | 5,175 | ||||||||
| Total non-current liabilities | 305,123 | 1,159,611 | ||||||||
| Total liabilities | 3,345,339 | 2,616,480 | ||||||||
| Net assets | 17,639,620 | 3,329,119 | ||||||||
| Equity | ||||||||||
| Issued capital | 3 | 41,636,762 | 26,504,136 | |||||||
| Reserves | 598,057 | 943,297 | ||||||||
| Accumulated losses | (24,595,199 | ) | (24,118,314 | ) | ||||||
| Total equity | 17,639,620 | 3,329,119 | ||||||||
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
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| Mobilicom Limited | | |
| Consolidated statement of changes in equity | ||
For the year ended 31 December 2022 | ||
| Issued capital | Share based payments reserve | Foreign currency translation reserves | Re-measurement reserves | Accumulated losses | Total equity | |||||||||||||||||||
| Consolidated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Balance at 1 January 2021 | 22,884,795 | 1,046,869 | 198,160 | (474,752 | ) | (21,635,786 | ) | 2,019,286 | ||||||||||||||||
| Loss after income tax expense for the year | - | - | - | - | (2,704,845 | ) | (2,704,845 | ) | ||||||||||||||||
| Other comprehensive income for the year, net of tax | - | - | 206,363 | (34,197 | ) | - | 172,166 | |||||||||||||||||
| Total comprehensive income for the year | - | - | 206,363 | (34,197 | ) | (2,704,845 | ) | (2,532,679 | ) | |||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
| Contributions of equity, net of transaction costs (note 3) | 3,619,341 | - | - | - | - | 3,619,341 | ||||||||||||||||||
| Share-based payments | - | 223,171 | - | - | - | 223,171 | ||||||||||||||||||
| Expiry of options | - | (46,425 | ) | - | - | 46,425 | - | |||||||||||||||||
| Cancellation of options | - | (8,806 | ) | - | - | 8,806 | - | |||||||||||||||||
| Re-allocation between accumulated loses and foreign currency reserve | - | - | (167,086 | ) | - | 167,086 | - | |||||||||||||||||
| Balance at 31 December 2021 | 26,504,136 | 1,214,809 | 237,437 | (508,949 | ) | (24,118,314 | ) | 3,329,119 | ||||||||||||||||
| Issued capital | Share based payments reserve | Foreign currency translation reserves | Re-measurement reserves | Accumulated losses | Total equity | |||||||||||||||||||
| Consolidated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Balance at 1 January 2022 | 26,504,136 | 1,214,809 | 237,437 | (508,949 | ) | (24,118,314 | ) | 3,329,119 | ||||||||||||||||
| Loss after income tax expense for the year | - | - | - | - | (571,985 | ) | (571,985 | ) | ||||||||||||||||
| Other comprehensive income for the year, net of tax | - | - | (925,913 | ) | 366,517 | - | (559,396 | ) | ||||||||||||||||
| Total comprehensive income for the year | - | - | (925,913 | ) | 366,517 | (571,985 | ) | (1,131,381 | ) | |||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
| Contributions of equity, net of transaction costs (note 3) | 15,132,626 | - | - | - | - | 15,132,626 | ||||||||||||||||||
| Share-based payments | - | 309,256 | - | - | - | 309,256 | ||||||||||||||||||
| Expiry of options | - | (95,100 | ) | - | - | 95,100 | - | |||||||||||||||||
| Balance at 31 December 2022 | 41,636,762 | 1,428,965 | (688,476 | ) | (142,432 | ) | (24,595,199 | ) | 17,639,620 | |||||||||||||||
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
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| Mobilicom Limited | | |
| Consolidated statement of cash flows | ||
For the year ended 31 December 2022 | ||
| Consolidated | ||||||||||||
| 31 December | 31 December | |||||||||||
| 2022 | 2021 | |||||||||||
| Note | $ | $ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Receipts from customers (inclusive of GST) | 2,670,178 | 3,977,275 | ||||||||||
| Interest received | - | 1,580 | ||||||||||
| Payments to suppliers and employees (inclusive of GST) | (8,172,456 | ) | (6,572,578 | ) | ||||||||
| Interest and other finance costs paid | (88,000 | ) | - | |||||||||
| Government grants received | 923,942 | 787,544 | ||||||||||
| Interest received | 168,843 | - | ||||||||||
| Net cash used in operating activities | (4,497,493 | ) | (1,806,179 | ) | ||||||||
| Cash flows from investing activities | ||||||||||||
| Payments for property, plant and equipment | (22,164 | ) | - | |||||||||
| Proceeds from disposal of property, plant and equipment | - | (30,534 | ) | |||||||||
| Net cash used in investing activities | (22,164 | ) | (30,534 | ) | ||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issue of shares | 3 | 22,450,965 | 3,840,000 | |||||||||
| Share issue transaction costs | (2,615,470 | ) | (220,659 | ) | ||||||||
| Repayment of lease liabilities | (335,596 | ) | (250,983 | ) | ||||||||
| Net cash from financing activities | 19,499,899 | 3,368,358 | ||||||||||
| Net increase in cash and cash equivalents | 14,980,242 | 1,531,645 | ||||||||||
| Cash and cash equivalents at the beginning of the financial year | 3,996,300 | 2,464,655 | ||||||||||
| Cash and cash equivalents at the end of the financial year | 18,976,542 | 3,996,300 | ||||||||||
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
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| Mobilicom Limited | | |
| Notes to the consolidated financial statements | ||
31 December 2022 | ||
Note 1. General information
The financial statements cover Mobilicom Limited as a Group consisting of Mobilicom Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Mobilicom Limited’s functional and presentation currency.
The functional currency of Mobilicom Limited’s subsidiary, Mobilicom Ltd (“Mobilicom Israel”), is Israeli New Shekels.
Mobilicom Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:
| Registered office | Principal place of business | |
| C/- JM Corporate Services | Level 21, 459 Collins Street | |
| Level 21, 459 Collins Street | Melbourne, Victoria, 3000 | |
| Melbourne, Victoria, 3000 | Australia | |
| Australia |
A description of the nature of the consolidated entity’s operations and its principal activities are included in the directors’ report, which is not part of the financial statements.
Note 2. Current liabilities - Financial liability
| Consolidated | ||||||||
| 31 December 2022 | 31 December 2021 | |||||||
| $ | $ | |||||||
| Financial liability at fair value through profit or loss | 1,097,520 | - | ||||||
On 25 August 2022 the Company completed its US listing via the issue of 3,220,338 ADRs (American Depository Shares) and the accompanying 3,220,338 warrants for a total consideration of USD 13,299,996. One ADR represents 275 ordinary shares in the Company. One warrant gives the holder the right to purchase one ADR share. The warrants have a 5 year term and can be exercised at any time before expiry date on 24 August 2027.
Note 3. Equity - issued capital
| Consolidated | ||||||||||||||||
| 31 December | 31 December | 31 December | 31 December | |||||||||||||
| 2022 | 2021 | 2022 | 2022 | |||||||||||||
| Shares | Shares | $ | $ | |||||||||||||
| Ordinary shares - fully paid | 1,331,279,665 | 321,936,715 | 41,636,762 | 26,504,136 | ||||||||||||
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| Mobilicom Limited | | |
| Notes to the consolidated financial statements | ||
31 December 2022 | ||
Note 3. Equity - issued capital (continued)
Movements in ordinary share capital
| Details | Date | Shares | Issue price | $ | ||||||||||
| Balance | 1 January 2021 | 257,936,715 | 22,884,795 | |||||||||||
| Placement | 17 May 2021 | 64,000,000 | $ | 0.06 | 3,840,000 | |||||||||
| Capital raising costs | - | - | (220,659 | ) | ||||||||||
| Balance | 31 December 2021 | 321,936,715 | 26,504,136 | |||||||||||
| Issue of NASDAQ IPO shares (net of warrant fair value) | 29 August 2022 | 885,592,950 | $ | 0.015 | 13,662,563 | |||||||||
| Exercise of 450,000 NASDAQ warrants | 31 August 2022 | 123,750,000 | $ | 0.026 | 4,085,533 | |||||||||
| Capital raising costs | - | - | (2,615,470 | ) | ||||||||||
| Balance | 31 December 2022 | 1,331,279,665 | 41,636,762 | |||||||||||
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.
Capital risk management
The consolidated entity’s objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current Company’s share price at the time of the investment. The consolidated entity is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk management decisions. There have been no events of default on the financing arrangements during the financial year.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
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| Mobilicom Limited | | |
| Notes to the consolidated financial statements | ||
31 December 2022 | ||
Note 4. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 5. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in:
| Ownership interest | ||||||||||
| Principal place of business / | 31 December 2022 | 31 December 2021 | ||||||||
| Name | Country of incorporation | % | % | |||||||
| Mobilicom Ltd (“Mobilicom Israel”) | Israel | 100.00 | % | 100.00 | % | |||||
| Mobilicom Inc | United States | 100.00 | % | - | ||||||
In late December 2022 and following the Company’s listing on NASDAQ and increased operations in the United States, the Company incorporated a wholly owned subsidiary Mobilicom Inc, a Delaware incorporated Company. As at 31 December 2022, there were no significant operations which commenced as the Company was in an incorporation phase.
Note 6. Events after the reporting period
No matter or circumstance has arisen since 31 December 2022 that has significantly affected, or may significantly affect the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in future financial years.
Note 7. Losses per share
| Consolidated | ||||||||
| 31 December 2022 | 31 December 2021 | |||||||
| $ | $ | |||||||
| Loss after income tax attributable to the owners of Mobilicom Limited | (571,985 | ) | (2,704,845 | ) | ||||
| Number | Number | |||||||
| Weighted average number of ordinary shares used in calculating basic earnings per share | 664,158,704 | 297,914,797 | ||||||
| Weighted average number of ordinary shares used in calculating diluted earnings per share | 664,158,704 | 297,914,797 | ||||||
| Cents | Cents | |||||||
| Basic losses per share | (0.09 | ) | (0.91 | ) | ||||
| Diluted losses per share | (0.09 | ) | (0.91 | ) | ||||
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”. The rights to options are non-dilutive as the consolidated entity is loss generating.
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