AML3D Limited (AL3) 2020年年度報告「ASX」.pdf

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1、Annual Report2019 20AML3D Ltd/ASX:AL3/ABN 55 602 857 983CHAIRMANS LETTER 3MANAGING DIRECTORS REPORT 5BOARD 8DIRECTORS REPORT 10REMUNERATION REPORT(AUDITED)15AUDITORS INDEPENDENCE DECLARATION 25AUDIT REPORT 26FINANCIAL STATEMENTS 29DIRECTORS DECLARATION 52ADDITIONAL SHAREHOLDER INFORMATION 53CORPORAT

2、E DIRECTORY 54ContentsAML3D Limited is a company established to commercialise WAM(Wire Additive Manufacturing),an emerging innovative metal additive manufacturing technology for the cost-efgective production of large,high performance metal components and structures.Agreed scope and purchase orderDev

3、elopment of CAD design optimised for WAM Prototype manufacture and internal testingCustomer evaluation and testingProduct certifjcation and commercialisationAML3D CUSTOMER JOURNEYWAM brings together welding science,metallurgy,CAD software design and robotics technology to construct metal components

4、and structures via welding sequential layers of metal.WAM is a faster,stronger,more cost-efgective environmentally friendly approach to metal fabrication that is transforming the metal fabrication landscape.AML 3 D Ltd/2 0 19/20 A n n ual Rep or t3Chairmans LetterOn behalf of the Board,it is with gr

5、eat pleasure that I welcome you to AML3Ds fjrst annual report as a listed company.and our Singapore Contract Manufacturing Centre is in the process of becoming operational,with senior appointments made to oversee growth in the region.We also relocated our local operations to the key industry precinc

6、t of Edinburgh in Adelaide.These activities have delivered the physical presence AML3D requires to progress the next phase of our growth strategy.Our initial public ofgering would not have been possible without the support of our shareholders,both existing shareholders at the time and new shareholde

7、rs introduced through the IPO process.We have some of Australias premier institutional investors on the register,which is a clear tick in the box in terms of their belief in AML3D,our strategy and the market that we are disrupting.Your company is now well capitalised with cash fmow to be generated f

8、rom early orders that have been secured.AML3Ds fjnancial results for FY20 refmect expenditure in line with the Use of Funds set out in our Prospectus.The Company incurred a loss before tax of$3,094,021 which was in line with expectations and attributable to expenditure for our expansion,listing expe

9、nses and other associated costs.The 2021 fjnancial year will provide a clearer picture of underlying business performance and growth prospects.At the time of writing this letter,the world is still working through the challenges presented by COVID-19.At AML3D,we are pleased to advise that we have not

10、 had any cases internally,in part due to early and decisive actions taken and enacting broad ranging procedures and protocols.Such measures include the ability for stafg to work from home,regular testing and strict enforcement of social distancing in the workplace.It is pleasing to say that aside fr

11、om some inevitable inconveniences caused by COVID-19,it has been business as usual for AML3D,and we plan on keeping it that way.We certainly do hope that your families and loved ones are keeping safe and healthy during these unsettling times.Continued overleaf.S t e p he n G e r l a c h /C h a i r m

12、 a nDear shareholder,On behalf of the Board,it is with great pleasure that I welcome you to AML3Ds fjrst annual report as a listed company.The past fjnancial year has set AML3D on course for what will be an exciting and inevitably rewarding journey as we seek to disrupt traditional metal fabrication

13、,which has been around in its current form for hundreds of years.I have sat on many Boards over the years and observed the internal machinations of numerous companies,and I can say without a shadow of a doubt,that AML3D has one of the strongest business cases for growth that I have seen.AML3D is a d

14、isruptor in a world of advanced manufacturing where disruption is the key to fast tracking evolution and enabling Australian manufacturing to be competitive.AML3D successfully listed on the Australian Securities Exchange in April 2020,raising$9 million with strong support from both institutional and

15、 retail shareholders and we have continued to receive strong support since listing.Our lean and experienced management team has a focused goal of becoming a leading diversifjed large-scale metal fabrication company in the Southern Hemisphere,capable of producing fjnished parts and components to a ce

16、rtifjed standard under an accredited Quality Management System,together with the important credential of Lloyds registration.At this early stage I am pleased to say that we are well on the way to achieving this goal.In our ASX announcement of 12 August 2020,our Managing Director Andrew Sales articul

17、ated the compelling value proposition of AML3Ds technology and product ofgering.In a short period of time we have become recognised as a global leader in the emerging large-scale 3D metal printing industry.Our technology combines welding science,robotics,metallurgy and software to produce automated

18、wire fed 3D printing in a large freeform environment.We fjrmly believe our technology will transform the metal manufacturing and fabrication landscape forever.Since listing,funds raised have been successfully directed towards establishing manufacturing footprints here and overseas.Our Singapore offj

19、ce has been established 4Chairmans Letter(continued)OUTLOOK FOR FY21The new fjnancial year is shaping up as a very exciting one for AML3D and will no doubt be a foundation year for the company.The main areas of focus in FY21 will be to:Grow the Contract Manufacturing Centres operations in Singapore,

20、as we have done in Adelaide;Pursue global business opportunities,focusing initially on creating customer and industry partnerships in high margin sectors such as defence;Expand our contract manufacturing base to drive long-term repeat customers;Build ARCEMY modules for customers looking to establish

21、 in-house 3D printing capability;Grow recurring revenue via annual software licencing,service and maintenance agreements and sale of wire feedstock;and Continue with our research and development activities to refjne and broaden our range of products and processes.AML3D now has the only diversifjed l

22、arge-scale WAM metal fabrication facility in the Southern Hemisphere that is capable of producing fjnished parts and components to a certifjed standard under an accredited Quality Management System.This is a clear fjrst mover advantage that we will look to capitalise on.Our pipeline of opportunities

23、 continues to build in an industry with exponential growth forecast over the coming years.The result of all this is that we are well positioned to sensibly grow our presence in the global metal fabrication market.I believe that our proprietary software and equipment will not only entice new customer

24、s to work with us but will help us retain these customers over the longer-term as we pursue sustainable value creation for all stakeholders.CLOSINGI would like to thank my fellow Board members for the wide-ranging skills and expertise they have brought to AML3D,and their support throughout our initi

25、al public ofgering process.Recognition must also be given to our management team and stafg,who have demonstrated resilience and dedication in what is a very challenging time.We operate as one team,keeping safe from COVID-19,and have not wavered from our overarching goal to become a leading diversifj

26、ed large-scale metal fabrication company in the Southern Hemisphere.To our Managing Director,and founder,Andrew Sales,it is very clear that AML3D would not be where it is today without your vision,dedication and relentless pursuit of 3D metal printing.AML3D is uniquely and strategically placed as a

27、major disruptor in the US$10 billion global metal fabrication market,which is still dominated by antiquated and environmentally unfriendly metallurgical casting and forging.Gaining market share in this market is already happening and is a credit to Andrew and his vision.Finally,to our shareholders,t

28、hank you for choosing to invest in AML3D.Your Board and management team are committed to pursuing profjtable and sustainable growth for the benefjt of all stakeholders,as we build upon the foundation created from our initial public ofgering in April.Stephen Gerlach AM Chairman5AML 3 D Ltd/2 0 19/20

29、A n n ual Rep or tManaging Directors ReportDear shareholder,In what has been an exciting year of change for the company,I would like to start by reiterating what I recently conveyed via a letter to you in July,that it is a privilege to be Managing Director of AML3D during what will be a period of ex

30、citing growth for your company.I have incredible support from an excellent team and Board here at AML3D,and I am committed to delivering sustainable value for our shareholders and stakeholders.Wire arc additive manufacturing,or WAM,came about from my interest in welding technology and fabrication,in

31、cluding the welding of high strength corrosion resistant alloys,and the realisation of the trend in new technology that traditional metal fabrication was not sustainable,from a cost,effjciency and environmental perspective.Traditional forging and casting takes a long time;supply chain is extensive a

32、nd at times problematic;a large-scale industrial footprint is required;costs of labour throughout the process are high;there is substantial waste;there are signifjcant emissions from the process itself and from transportation;and there is a lack of quality in fjnished cast and forged products.As a r

33、esult,I formed AML Technologies in late 2014 and built a team to undertake research and development that led to the delivery of WAM.WAM is a disruptive technology that is already materially transforming the metal fabrication landscape in what is currently a US$10 billion global market.WAM is a cheap

34、er,faster and more environmentally friendly approach to metal fabrication,which is delivered via a 3D platform,not dissimilar to current 3D printers.The metal printing process melts wire through a plasma delivered by an electric arc,then forms beads layer by layer which refjnes the metal geometry to

35、 produce high specifjcation metal components.This process is undertaken by our own ARCEMY module that is driven by our proprietary WAM software(WAMSoft).The process has received ISO9001 Quality Management Certifjcation,with AML3D becoming the worlds fjrst accredited Wire-feedstock Additive Manufactu

36、ring Facility through the Lloyds Register(Singapore).There are numerous competitive advantages of ARCEMY,WAM and WAMSoft,but key is the ability to promptly deliver an array of high-quality,large-scale,custom built components to customers at competitive prices.All of this can be done with signifjcant

37、ly shorter lead times,less raw material input and waste,and greater end product strength.In fact,when compared with traditional fabrication processes,WAM delivers cost savings of up to 70%,while the manufacturing process is 75%faster and reduces waste by up to 80%.Traditional fabrication has served

38、industry well for hundreds of years,however,today society is rightfully demanding businesses operate sustainably and with a smaller environmental footprint.WAM ProcessTraditional Metal Fabrication ProcessLow cost,highly effjcient with few process stepsConsiderable ineffjciencies and costsLocal feeds

39、tock not dependent on overseas supplySubstantial order lead time involvedEnergy effjcientConsiderable energy resources80%Less material waste with near net shape Wasted materialCertifjed and patented processLabour and time intensive to constructAs a result of all this,we are now taking domestic order

40、s for components that were previously sourced overseas.The driver of this shift is two-fold.Firstly,supply chains are changing due to COVID-19,with a desire and need for businesses to source locally if they can.Continued overleaf.A n d rew S a l e s /M a n a g i n g D i re c t o r6Managing Directors

41、 Report(continued)Secondly,traditional fabrication costs in Australia were higher than most,mainly driven by labour costs.Our WAM technology keeps labour costs to a minimum,which is a monumental shift in terms of our ability to outperform competition from pricing and time perspectives,both internati

42、onally and here at home.We were pleased to recently announce the signing of a Global Collaboration Agreement with AdditiveNow,which will involve end-to-end integrated additive manufacturing advisory and printing services for a broad range of global customers.AdditiveNow is a joint venture between Ad

43、visian Digital,the data science,software and technology business of Worley Limited,and Aurora Labs Limited.Under this agreement,AML3D and AdditiveNow will work towards a commercial framework to push the take-up of our WAM technology to the global energy,chemicals,oil and gas and mining industries.I

44、believe the end result of this collaboration will deliver enhanced capabilities to new global markets,with both companies complementing each other.AdditiveNow will focus on additive manufacturing consulting while AML3D will deliver WAM advisory services and WAMs product performance,time and manufact

45、uring effjciencies to AdditiveNows customer base.Other recent partnerships include the executed contract with Austal Limited to co-develop components for maritime defence applications,and the fjrst stage product testing with Lightforce Australia Pty Ltd to develop next-generation made-to-fjt titaniu

46、m body armour (with a Memorandum of Understanding signed).These types of agreements and business partnerships are seeing good momentum starting to build within our main revenue streams,these being:Contract manufacturing,which is fulfjlling manufacturing orders for customers using our ARCEMY module.A

47、RCEMY sales,with customers acquiring the ARCEMY module for their own fabrication needs.Licencing of software and service and maintenance agreements.To ensure our revenue momentum is not only maintained,but enhanced,we will continue to invest in sales and marketing and research and development initia

48、tives,which will drive the expansion of our product ofgering through focus on the application of new alloys and exotic metals in the WAM process.We must continue to evolve our product ofgering so that we remain a leader in this new wave of metal fabrication.It is because of these compelling statisti

49、cs that I believe WAM will ultimately be viewed as a driver of the fourth industrial revolution,and AML3D is uniquely positioned as a leader in this fast-growing sector.According to the Wohlers Report of 2019,“the industry is expected to grow by nearly 3.6 times to$US 35.6 billion in 2024”,which rep

50、resents a tremendous opportunity for AML3D.PROGRESS TO DATEThe dedicated team at AML3D has been working hard to deliver products to our customers as well as seeking out new market opportunities.While COVID-19 has had a negative impact on all of our lives in some way,shape or form,for AML3D the impac

51、t has actually been positive on a number of levels.With cross border trade becoming an issue,we will be able to manufacture parts all around the world,with our fjrst ARCEMY module in place in Singapore.The plan moving forward is to have our ARCEMY units strategically located globally,near customers

52、and relevant industries to ensure we can deliver products to them in a timely,cost efgective and environmentally effjcient manner.In January we delivered a Panama Chock weighing 1,400 kg to Keppel Corporation in Singapore.This purchase order was for a fjrst-of-a-kind 3D print and will be load tested

53、 to assess suitability for signifjcant future orders.The chock was recently independently validated by DNV-GL in Singapore and results show it is 1 times stronger than cast equivalents used in the marine industry.In April 2020 we proved that our steel products are stronger than forged equivalents.Ou

54、r printed high strength steel was independently demonstrated to have Ultimate Tensile Strength 30%higher than the applicable global standard,with less metal usage.This is a great endorsement for our technology and highlights the potential for AML3D to be a disruptive force in the metal fabrication i

55、ndustry.7AML 3 D Ltd/2 0 19/20 A n n ual Rep or tIn May 2020 we signed the lease for a new head offjce and manufacturing space in Edinburgh Parks,Adelaide.This is a shared facility,which allows us to keep costs to a minimum,and provides for AML3Ds anticipated growth with 110m2 of offjce space and 1,

56、250m2 for inventory and manufacturing.The premises will house seven large-format proprietary production cells for contract manufacturing and two ARCEMY metal 3D printers to meet industry demand for advanced manufacturing with WAM here in Australia.In June,we delivered the fjrst proprietary AML3D ARC

57、EMY unit to our customer ST Engineering in Singapore under a right to use with an option to buy arrangement,with AML3D retaining the right to 50%of the ARCEMY units printing capacity to manufacture products for our customers.As detailed above,this is a key factor in ensuring that we are able to serv

58、ice multiple markets and relevant industries in an efgective way.CLOSINGIn closing,I would like to mention our very capable team that has worked tirelessly through these challenging times to ensure AML3D continues on its path to success.Furthermore,none of this would be possible without the encourag

59、ing support that I receive from our shareholder base.We are embarking on an exciting period of growth for AML3D and I look forward to providing regular updates during FY21.Andrew Sales Managing Director1,400 kg Panama Chock developed for Keppel Corporation in Singapore.The new AML3D head offjce and

60、manufacturing space in Edinburgh Parks,Adelaide.8STEPHEN GERLACH AM /LLB,FAICD Chairman/Member of Audit&Risk CommitteeStephen is a company director and corporate advisor.He is Chancellor of Flinders University.He is also the Chairman of Adelaide Capital Partners Pty Ltd,Gerlach Asset Development Pty

61、 Ltd,Ebony Energy Ltd and a Director of Beston Global Foods Ltd and Beston Pacifjc Asset Management Pty Ltd.He was formerly the Chairman of Santos Limited,Futuris Corporation Ltd(subsequently known as Elders Ltd),Equatorial Mining Ltd,Elders Australia Ltd,Challenger Listed Investments Limited,Amdel

62、Ltd,and Penrice Ltd.He was also a Director of a number of other public companies including Southcorp Ltd,AMP Australia Ltd,Brunner Mond Holdings Ltd(UK)and Elders Rural Bank and a member of other public companies including companies located in the United Kingdom,United States of America and Chile.St

63、ephen was a partner of the Adelaide legal fjrm Finlaysons for 23 years and its Managing Partner from 1985 to 1991.He has also been actively involved in a number of community and professional associations and is currently a Trustee of the Australian Cancer Research Foundation,a Director of The Genera

64、l Sir John Monash Scholarship Foundation,Chairman of the South Australian Cricket Association Nomination Committee and Chairman of The Psychosis Australia Trust.He was the inaugural Chairman of Foodbank South Australia Inc from 1999 to 2014,and a Director of Foodbank Australia Ltd.The Board consider

65、s that Mr Gerlach is an independent Director.ANDREW SALES /MEng,MSc,CEng,CMatP Managing DirectorAndrew is a Chartered Engineer with a Master of Engineering and Master of Science and is a renowned expert in welding technology with over 27 years of global experience(Australia,Europe,South America,Afri

66、ca and Asia).Andrew has held varying roles across upper management and senior leadership within the oil and gas,resources and mining sectors as well as advanced manufacturing,heavy engineering and fabrication.He is also the author of numerous technical papers in the fjeld of welding high strength co

67、rrosion resistant alloys.In addition to Science and Engineering qualifjcations at Masters level,he also holds a Diploma in Quality Management and Auditing.He is a Chartered Engineer through ECUK and TWI(UK),a professional member of Materials Australia holding a CMatP,and also sits on two Standards A

68、ustralia committees including the newly established committee for Additive Manufacturing.Andrew founded AML Technologies in 2014 and has been Managing Director since that time.The Board considers that Mr Sales is not an independent Director.Board9AML 3 D Ltd/2 0 19/20 A n n ual Rep or tSEAN EBERT /B

69、Eng,Hons(Electrical),GAICD,MBA Executive DirectorSean has 25 years of executive and board level experience across public and commercial sectors with particular experience within the engineering sectors of oil and gas,mining and resources and emerging technologies in Australia,Middle East,South Ameri

70、ca,US and Europe.Sean was previously the CEO of Beston Pacifjc Asset Management,Global Director M&A of WorleyParsons,CEO of Camms Pty Ltd and CEO Camms Profjt Impact Pty Ltd.The Board considers that Mr Ebert is not an independent Director.LEONARD PIRO /BEc,DipCorpMgmt Non-Executive Director/Member o

71、f Audit&Risk CommitteeLeonard is the former Deputy Chief Executive of the SA Department of Trade and Economic Development,Executive Director Manufacturing and Chief Executive Automotive Industry Transformation Taskforce and Group Executive Director and Chairman of the Tonsley Re-development.Leonard

72、has had exposure to manufacturing trends and strategies in Europe and the US.The Board considers that Mr Piro is an independent Director.KEVIN REID /FCA GAICD Non-Executive Director/Chairman of Audit&Risk CommitteeKevin is a Chartered Accountant with 24 years experience as a partner with PwC and BDO

73、 practicing as an assurance specialist.He has experience with a wide range of listed companies.He has been an independent accountant for initial public ofgers,capital raisings and acquisitions and has extensive commercial and corporate experience as a company director and professional practice board

74、 member.Kevin is Chair of MPH Architects and deputy chair of Can:Do Group.Kevin is also a director of ACH Group Inc,Meals on Wheels(South Australia)and the Maggie Beer Foundation.He is a member of the Audit&Risk committee for the Offjce of the National Rail Safety Regulator.The Board considers that

75、Mr Reid is an independent Director.CHRISTINE MANUEL /BMus,GradDipACG,DipCD,DipInvRel,FGIA,FCG(CS,CGP),MAICD,MAITD,AAIPM Company SecretaryChristine is an experienced Company Secretary and corporate governance professional and has held Company Secretary and executive roles in a range of listed and unl

76、isted entities over more than 20 years.She was formerly Company Secretary of Santos Group companies and Peoples Choice Credit Union and is currently Company Secretary of ASX listed Angel Seafood Holdings Ltd.Christine holds postgraduate qualifjcations in Applied Corporate Governance and is a Charter

77、ed Secretary and Chartered Governance Professional.She is Vice-President of the Board and past SA/NT State Council Chair of the Governance Institute of Australia.She regularly facilitates Governance Institute training courses.10Directors ReportThe Directors of AML3D Limited(Company or AML3D)present

78、their report,together with the fjnancial statements of the Company and its controlled entities (the Group)for the fjnancial year ended 30 June 2020.DIRECTORSThe following persons were directors of the Company during the fjnancial year and to the date of this report:Stephen GerlachNon-executive Chair

79、manAppointed 30 August 2019Andrew SalesManaging DirectorAppointed 14 November 2014Sean EbertExecutive DirectorAppointed 30 August 2019Leonard PiroNon-executive DirectorAppointed 30 August 2019Kevin ReidNon-executive DirectorAppointed 3 December 2019Directors have been in offjce since the start of th

80、e fjnancial period to the date of this report unless otherwise stated.INFORMATION RELATING TO DIRECTORS AND COMPANY SECRETARYDetails of each Directors experience,qualifjcations and responsibilities are set out on pages 8 to 9.This includes information on other listed company directorships in the las

81、t three years.The Company Secretary is Christine Manuel.Details of her experience and qualifjcations are also set out on page 9.COMPANY OVERVIEWAML3D is an Australian public company incorporated on 14 November 2014.The Company was admitted to the Offjcial List of ASX on 16 April 2020 and commenced t

82、rading on ASX on 20 April 2020.AML3D is a welding,robotics,metallurgy and software business which uses automated wire-fed 3D printing in a large freeform environment to produce metal components and structures for commercial use.AML3D has commercialised its wire arc additive manufacturing technology(

83、under the trademark WAM),an innovative metal additive manufacturing technology for the cost-efgective production of large,high performance metal components and structures.AML3Ds proprietary WAM process is part of the spectrum of 3D metal printing that focuses on larger industrial applications with f

84、mexibility across multiple classes of metals including titanium alloys,nickel alloys and steel alloys.AML3Ds WAM technology combines electric arc as a heat source with wire as a feedstock and welds sequential layers of metal to produce near net-shape metal components.The WAM technology provides an a

85、lternative manufacturing and fabrication method for the production of components in industry sectors such as aerospace,marine,defence,oil and gas,mining and general manufacturing which vary from high-end aerospace parts to general engineering,with the value proposition being signifjcant in the case

86、of larger scale industrial grade and complex parts.In conjunction with its WAM technology,AML3D has developed its own proprietary software,WAMSoft,which combines metallurgical science and engineering design to automate the 3D printing process utilising advanced robotics technology.The WAMSoft softwa

87、re enables a highly tailored approach to the needs of each client by enabling difgerent pathways and welding operations for difgerent products and materials.Depending on material type,thickness of part,geometry and fjnal size,the software identifjes optimal path models using an extensive library of

88、weld bead geometries.PRINCIPAL ACTIVITIESThe principal activities of AML3D during the fjnancial year were to:a)Design and construct 3D parts using Wire Additive Manufacturing technology and to develop that technology.b)Design and construct ARCEMY 3D printing modules for right to use with an option t

89、o buy by customers.No signifjcant changes in the nature of the Companys activity occurred during the fjnancial year.OPERATING AND FINANCIAL REVIEWREVIEW OF OPERATIONSFY2020 has been a transformative year for the Company,in particular,its listing on the ASX,providing a platform for future growth.The

90、Company has continued to develop its technology and has printed a range of metal pieces for use in a variety of industries,including marine and defence.The Companys revenue has been derived from:a)Contract manufacturing,which is fulfjlling manufacturing orders for customers using our ARCEMY 3D print

91、ing module;andb)ARCEMY right to use with an option to buy,with customers acquiring the ARCEMY 3D printing module for their own fabrication needs.In January 2020,AML3D delivered a Panama Chock weighing 1,400 kg to Keppel Corporation in Singapore.This was a trial purchase order to assess suitability f

92、or future orders.The chock was independently confjrmed as stronger than forged equivalents.In April 2020,it was proven that our steel products are stronger than forged equivalents.AML3Ds printed high strength steel was independently demonstrated to have Ultimate Tensile Strength 30%higher than the a

93、pplicable global standard,with less metal usage.In May 2020,the Company entered into a lease for a new head offjce and manufacturing space in Edinburgh Parks,Adelaide.This is a shared facility and provides for AML3Ds anticipated growth.The premises will house up to seven large-format proprietary ARC

94、EMY 3D printing modules to meet market demand in Australia.In June 2020,AML3D delivered the fjrst proprietary AML3D ARCEMY 3D printing module to a customer,ST Engineering,under a right to use with an option to buy arrangement.The Company has retained the right to 50%of the modules printing capacity

95、to manufacture products for AML3Ds customers in the Asian region and beyond.Throughout the year,the Company has sought out new customers and markets and developed a pipeline of opportunities which will be built on in FY2021.FINANCIAL RESULTS AND POSITIONThe Company successfully listed on ASX on 20 A

96、pril 2020,raising$9,000,000 before costs by issuing 45,000,000 new shares at$0.20 per share in the Companys Initial Public Ofger(IPO).The funds raised by the Company are being deployed to implement its business plan and take advantage of the opportunities that exist for additive manufacturing in Aus

97、tralia,South East Asia and other markets.Equipment has been purchased and ordered to expand production capacity at the Groups new Adelaide facility in Edinburgh Parks and,in due course,for the Groups facility in Singapore.The Company has recruited additional stafg to enhance its operations,sales,mar

98、keting and technical capabilities in both Australia and Singapore.Several test and demonstration pieces have been prepared for marketing purposes,to demonstrate the capability of the Companys technology.The Company achieved sales revenue of$288,156.Total revenue for FY2020 was$735,350.This included

99、funds received in the form of an R&D Tax Incentive of$309,054 and Government support in the form of Cash Boost and Job Keeper payments of$126,000.Sales revenue includes progress payments for the delivery and installation of the fjrst ARCEMY 3D printing module in Singapore in addition to revenue from

100、 the sale of demonstration pieces.The loss before and after tax for FY2020 of$3,094,021 was largely attributable to expenditure related to the costs of listing,$584,056,and expansion of the Company,in particular,an investment in people for our sales,marketing,manufacturing and technology development

101、 capabilities.At the end of the fjnancial year,the Company had$8,227,986 in cash and cash equivalents after expending$826,085 on additional new equipment.USE OF IPO FUNDSIn the period from admission to ASX on 16 April 2020 and commencement of quotation of securities on ASX on 20 April 2020 until 30

102、June 2020,the Company has used the cash and assets in a form readily convertible to cash that it had at the time of admission in a way consistent with the Companys business objectives,as outlined in the prospectus dated 10 February 2020.BUSINESS STRATEGIES AND PROSPECTSThe Company plans to build on

103、the successes achieved in FY2020,summarised above in the Review of Operations.The main areas of focus in FY2021 will be to:Grow the Contract Manufacturing Centres operations in Singapore,as we have done in Adelaide;Pursue global business opportunities,focusing initially on creating customer and indu

104、stry partnerships in high margin sectors such as marine and defence;Expand our contract manufacturing base to drive long-term repeat customers;Build ARCEMY modules for customers looking to establish in-house 3D printing capability;Grow recurring revenue through annual software licencing,service and

105、maintenance agreements and sale of wire feedstock;and Continue with our research and development activities to refjne and broaden our range of products and processes.AML3D currently has the only diversifjed large-scale WAM metal fabrication facility in the Southern Hemisphere that can produce fjnish

106、ed parts and components to a certifjed standard under an accredited Quality Management System.This is an advantage that the Company will look to leverage.The achievement of our strategies and prospects may be impacted by the COVID-19 pandemic,the efgect of which cannot be foreseen.11AML 3 D Ltd/2 0

107、19/20 A n n ual Rep or t12MATERIAL BUSINESS RISKSThere are a number of material business risks which could afgect the Companys ability to achieve its business strategies as follows.MARKET ACCEPTANCE OF NEW TECHNOLOGYAML3D has commercialised its WAM technology and has established a number of importan

108、t relationships and research collaborations.However,there can be no assurances that the market will accept the WAM technology,given that it is challenging traditional and well-tried technologies such as machining and forging.WAM is a disruptive technology in traditional manufacturing industries wher

109、e many potential users of WAM have sunk investment in existing technologies.Wire arc additive manufacturing is a new technology in a relatively young industry of 3D metal printing.Widespread awareness-raising of the advantages and value proposition associated with the Companys WAM technology will be

110、 required to lift the profjle of the technology and educate the market.CUSTOMER CONVERSIONAt present,the Company is at a paid trial stage with a number of potential contract manufacturing clients.There can be no guarantee that any of these paid trial customers will convert into regular customer cont

111、racts.Although the Companys client base is expected to diversify as a result of the expansion of the Companys revenue streams,the Company will initially be substantially reliant on a select number of clients.The loss of any of these clients may have a negative impact on the Companys revenues and pro

112、fjts unless they can be replaced with new clients.The Companys future activities are specifjcally designed around further business development activities in order to grow the client base in Australia and Singapore,and other markets.RELIANCE ON KEY PERSONNELThe responsibility of overseeing the day-to

113、-day operations and the strategic management of the Company depends substantially on its senior management,technical experts and its Directors.In particular,the technology and the development of the ARCEMY 3D printing modules is largely due to the experience of the Managing Director and the Companys

114、 Technical Engineering Manager.The Company is seeking to reduce this risk by the appointment of additional technical stafg.ACCESS TO RAW MATERIALSThe Company requires access to markets for its raw materials including titanium alloys,nickel alloys,stainless steel,aluminium alloys and bronze alloys in

115、 order to manufacture components.If the Company is unable to secure these materials,this would likely have a material adverse efgect on the business and fjnancial performance of the Company.RESEARCH&DEVELOPMENT AND TECHNICAL RISKThe Companys products and technology are the subject of continuous rese

116、arch and development which will likely need to be developed further in order to enable the Company to remain competitive,increase sales and improve the scalability of products and technology.There are no guarantees that the Company will be able to undertake such research and development successfully

117、.Failure to successfully undertake such research and development,anticipate technical problems,or estimate research and development costs or timeframes accurately will adversely afgect the Companys results.INTERNATIONAL OPERATIONSAML3D is applying some of the funds raised from the IPO to develop its

118、 international operations in Singapore including through the establishment of the Singapore Contract Manufacturing Centre.This will represent the Companys fjrst international operation in a separately regulated environment.This exposes the Company to a risk that its execution may not result in the i

119、ntended outcome from the investment.INTELLECTUAL PROPERTYThe Company is in the early stages of protecting its process improvements through patents.The Company has submitted patent applications for its wire arc additive manufacturing process.The prospect of attaining patent protection for products an

120、d the technology such as those proposed to be used by the Company is highly uncertain.As a result,the Companys patent applications may not proceed to an issued patent and,if issued,may not be of commercial benefjt to the Company,or may not afgord the Company adequate protection from competing produc

121、ts.DATA LOSS AND CYBER SECURITYThe Company is reliant on the security of its network environment,vendor environments and websites.Breaches of security including hacking,denial of service attacks,malicious software use,internal Intellectual Property theft,data theft or other external or internal secu

122、rity threats could put the integrity and privacy of customers data and business systems used by the Company at risk which could impact technology operations and ultimately customer satisfaction with the Companys products and services,leading to lost customers and revenue.13AML 3 D Ltd/2 0 19/20 A n

123、n ual Rep or tACCREDITATIONThe growth of AML3D contract manufacturing services is dependent on retaining Lloyds Register and ISO 9001 accreditation for the certifjcation of parts produced for its customers.The loss of these accreditations would signifjcantly impact the demand for AML3Ds contract man

124、ufacturing services.PANDEMICTo the date of this report,the Companys operations have not been materially and directly adversely impacted by COVID-19.However,uncertainty remains as to the scope and length of the pandemic and the impact of restrictions that will be imposed to combat the pandemic.The pa

125、ndemic may result in the loss of or delay in sales to customers and potential customers.It may also impact access to equipment and supplies,delaying the delivery of products to customers.The Company is actively monitoring risks associated with COVID-19 and implementing risk management measures to mi

126、tigate against potential impacts.The recent IPO by the Company has resulted in signifjcant cash and cash equivalents which will assist the operations of the Company whilst the pandemic subsists.ENVIRONMENTAL AND SUSTAINABILITY RISKThe Board is not aware of any material exposure to economic,environme

127、ntal or social sustainability risks to which the Company may be subject.CLIMATE CHANGE RISKThe Board is not aware of any current material exposure to risks brought about,or likely to be brought about,by climate change.RISK MANAGEMENTThe Board determines the Companys risk profjle and is responsible f

128、or establishing,overseeing and approving the companys risk management framework,strategy and policies,internal compliance and internal control.The Board has delegated to the Audit and Risk Committee the responsibility for implementing the risk management system.The Companys risk management policy se

129、ts out the requirements for the Companys risk management framework,the process for identifjcation and management of risks and regular reviews.SUSTAINABILITYAML3D is committed to developing and maintaining sustainable and environmentally-conscious operations.One of the benefjts of AML3Ds manufacturin

130、g process is that it generates considerably less waste material than traditional casting and machining processes.ENVIRONMENTAL REGULATIONThe Groups activities are subject to general environmental laws and regulations relating to manufacturing operations,in particular for the disposal and storage of

131、scrap and hazardous materials.No breaches of environmental regulation occurred during the fjnancial year and to the date of this report.SIGNIFICANT CHANGES IN THE STATE OF AFFAIRSThe Company converted from a proprietary to a public company efgective 5 December 2019.Following a successful IPO which r

132、aised gross funds of$9m,the Company was admitted to the Offjcial List of ASX on 16 April 2020 and quotation of its securities on ASX commenced on 20 April 2020.The funds raised have contributed to the Groups equity increasing by$9,826,586.IPO proceeds have begun to be applied to the development of t

133、he Company in accordance with the Use of Funds set out in the Companys prospectus.There were no other signifjcant changes in the state of afgairs of the company,other than as referred to in this report.SIGNIFICANT EVENTS AFTER THE BALANCE DATENo matters or circumstances have arisen since the end of

134、the fjnancial year which signifjcantly afgected or may signifjcantly afgect the operations of the Group,the results of those operations,or the state of afgairs of the Group in future fjnancial years other than:On 17 July 2020,equipment orders to the value of$669,000 were placed for the expansion of

135、the new Adelaide facility.DIVIDENDSNo dividends were declared or paid during the year.14CORPORATE GOVERNANCEThe Board oversees the Companys business and is responsible for the overall corporate governance of the Company.It monitors the operations,fjnancial position and performance of the Company and

136、 oversees its business strategy,including approving the strategy and performance objectives of the Company.The Board is committed to maximising performance and generating value and fjnancial returns for Shareholders.To further these objectives,the Board has created a framework for managing the Compa

137、ny,including the adoption of relevant internal controls,risk management processes and corporate governance policies and practices which the Board believes are appropriate for the business and which are designed to promote the responsible management and conduct of the Company.To the extent relevant a

138、nd practical,the Company has adopted a corporate governance framework that is consistent with the ASX Corporate Governance Councils Corporate Governance Principles and Recommendations(4th Edition).The Companys Corporate Governance Plan,including key policies,is available on the Companys website at D

139、IRECTORS MEETINGSDuring the fjnancial year,8 meetings of Directors,including Committees of Directors,were held.Attendances by each Director during the year were as follows:DirectorsBoard MeetingsAudit and Risk Committee MeetingsEligible to attendMeetings attendedEligible to attendMeetings attendedSt

140、ephen Gerlach7711Andrew Sales77-Sean Ebert77-Leonard Piro7711Kevin Reid7611DIRECTORS SHAREHOLDINGSThe following table sets out each Directors relevant interest in shares,debentures,and rights or options in shares or debentures of the Company or a related body corporate,including securities held dire

141、ctly,indirectly or by related parties,as at the date of this report:DirectorFully paid ordinary sharesShare OptionsStephen Gerlach233,3342,566,667Andrew Sales40,251,250100,000Sean Ebert991,6662,333,333Leonard Piro800,0002,050,000Kevin Reid58,334516,667Further details of Directors security holdings,i

142、ncluding the numbers subject to escrow restrictions,are provided in the Remuneration Report commencing on page 15.DIRECTORS AND SENIOR EXECUTIVES REMUNERATIONDetails of the Companys remuneration policies and the nature and amount of the remuneration for the Directors and senior management(including

143、shares,options and rights granted during the fjnancial year)are set out in the Remuneration Report commencing on page 15 and in Notes 9 and 10 to the fjnancial statements.15AML 3 D Ltd/2 0 19/20 A n n ual Rep or tREMUNERATION REPORT(AUDITED)The Directors of the Company present this Remuneration Repo

144、rt for the Group for the year ended 30 June 2020.The information provided in this Report has been audited as required by s 308(3C)of the Corporations Act 2001(Cth)(Corporations Act)and forms part of the Directors Report.The Remuneration Report outlines the Companys key remuneration activities during

145、 the fjnancial year ended 30 June 2020 and remuneration information pertaining to the Companys Directors and senior management personnel who are the key management personnel(KMP)of the Group for the purpose of the Corporations Act and Accounting Standards.These are the personnel who have authority a

146、nd responsibility for planning,directing and controlling the activities of the Company.The report is structured as follows:1.Remuneration Governance2.Directors and Key Management Personnel(KMP)3.Remuneration Policy4.Remuneration Components5.Relationship between Remuneration and Group Performance6.De

147、tails of Directors and KMP Remuneration7.Key Terms of Employment Contracts8.Terms and Conditions of Share-based Payment Arrangements9.Directors and KMP Equity Holdings10.Other Transactions with Directors and KMP1.REMUNERATION GOVERNANCEConsistent with the Boards Charter,the Board has taken the decis

148、ion that at this early stage of the Companys growth a separate Remuneration and Nomination Committee is not warranted.Accordingly,the Board as a whole carries out the functions of the Remuneration and Nomination Committee,as described in the Committee Charter.Where appropriate,this is undertaken by

149、Non-executive Directors only,without the presence or participation of the Executive Director/s.FunctionsThe Board reviews any matters of signifjcance afgecting the remuneration of the Board and employees of the Company.The primary remuneration purpose of the Board is to fulfjl its responsibilities t

150、o shareholders,including by:a.Ensuring that the approach to executive remuneration demonstrates a clear relationship between key executive performance and remuneration;b.Fairly and responsibly rewarding executives,having regard to the performance of the Company,the performance of the executive and t

151、he prevailing remuneration expectations in the market;c.Reviewing the Companys remuneration,recruitment,retention and termination policies and procedures for senior management;d.Reviewing and approving any equity-based plans and other incentive schemes;e.Clearly distinguishing the structure of Non-e

152、xecutive Director(NED)remuneration from that of executive directors and senior executives,and recommending NED remuneration to the Board;f.Arrange the performance evaluation of the Board,its Committees,individual Directors and senior executives on an annual basis;andg.Oversee the annual remuneration

153、 and performance evaluation of the senior executive team.The Board considered remuneration of the Non-executive Directors in detail in the fjrst half of the fjnancial year as part of the due diligence process of preparation of the Prospectus for the Initial Public Ofger(IPO)leading to initial ASX li

154、sting of the Company on 20 April 2020.A remuneration review for the Managing Director for FY20 was undertaken in FY20 and implemented efgective from 1 July 2019 at the time of refreshing the Managing Directors employment agreement in preparation for the IPO.The Board has adopted protocols for engagi

155、ng and seeking advice from independent remuneration consultants.In FY20,some benchmarking of executive remuneration was undertaken in consultation with recruitment consultants however no remuneration recommendations were provided by remuneration consultants.Further information about remuneration str

156、uctures and the relationship between remuneration policy and company performance is set out below.The Board Charter and the Remuneration and Nomination Committee Charter,which outlines the terms of reference under which the Committee operates,are available in the Corporate Governance Plan at AND KEY

157、 MANAGEMENT PERSONNEL(KMP)The directors and KMP of the Group during the year were:Period of Responsibility in FY20PositionNON-EXECUTIVESStephen GerlachFrom 30 August 2019Independent Non-executive ChairmanLeonard PiroFrom 30 August 2019Independent Non-executive DirectorKevin ReidFrom 3 December 2019I

158、ndependent Non-executive DirectorEXECUTIVESAndrew SalesFull yearManaging DirectorSean EbertFrom 30 August 2019Executive DirectorBenjamin HodgsonFrom 4 November 2019Chief Financial Offjcer(CFO)3.REMUNERATION POLICYThe Companys remuneration framework for Directors and senior executives has been design

159、ed to remunerate fairly and responsibly,balancing the need to attract and retain key personnel with a prudent approach to management of costs.The Boards policy for determining the nature and amount of remuneration for Board members and senior executives of the Company is as follows.Non-Executive Dir

160、ector RemunerationThe Board aims to remunerate each Non-executive Director(NED)for their time,commitment and responsibilities at market rates for comparable companies.The Board determines the annual level of fees payable to Non-executive Directors and intends to review their remuneration annually,ba

161、sed on market practice,duties and accountability and subject to the maximum aggregate amount per annum as approved by shareholders.Fees for Non-executive Directors are not linked to the performance of the Group,other than participation in share options(refer to section 8 for share option plans).The

162、Board approves a letter of appointment setting out the key terms and conditions of appointment for each Non-executive Director.Non-executive Directors receive statutory superannuation guarantee payments and do not receive any other retirement benefjts.Executive RemunerationThe Board reviewed the exe

163、cutive structure and framework in FY20 in detail during the due diligence process leading to the prospectus and IPO.A further review of the employment arrangements for the CFO and general stafg,including newly recruited personnel,was undertaken by the Managing Director in the post-IPO period and rep

164、orted to the Board.It is intended that annual reviews will be undertaken by the Board to ensure that the remuneration framework remains aligned to business needs.The Board aims to ensure that remuneration practices are:Competitive and reasonable,enabling the Company to attract and retain key talent;

165、and Aligned to the Companys strategic and business objectives and the creation of shareholder value.4.REMUNERATION COMPONENTSNon-Executive DirectorsNon-executive Directors receive a fjxed fee for their participation on the Board.No additional fee is paid for service on Board sub-committees.Directors

166、 do not receive performance-based incentives but they are eligible,subject to shareholder approval,for the grant of options that do not include performance-based vesting criteria.Non-Executive Director fees are determined by the Board within an aggregate fee pool limit as approved by shareholders.Th

167、e current aggregate fee pool,as set out in the Constitution in Rule 14.8 detailing initial fees to Directors,is$400,000.In addition,Directors are eligible to participate in the Concessional Option Plan and the Share Rights and Option Plan,subject to approval by shareholders.ExecutivesExecutive remun

168、eration comprises fjxed remuneration(salary)and may include short-term and long-term incentive plan components.These are set with reference to the Companys performance and the market.Fixed remuneration,which refmects the individuals role and responsibility as well as their experience and skills,incl

169、udes base pay and statutory superannuation.Remuneration at risk may be provided through short-term and long-term incentive plan components,linked to performance measured against operational and fjnancial targets set by the Company,designed to achieve operational and strategic targets for the sustain

170、able growth of the Company and long-term shareholder value.No short-term or long-term incentive elements were implemented for KMP in the fjnancial year ended 30 June 2020.The Board will review the remuneration framework during the coming year.17AML 3 D Ltd/2 0 19/20 A n n ual Rep or t2020($)2019($)2

171、018($)2017($)2016($)Cash and cash equivalents($)8,227,9861,158,109404,13625,3446,052Net assets/equity9,712,920(113,666)480,145(135,659)(92,763)Revenue288,51636,0574,065-EBITDA(3,008,192)(595,966)(26,298)(315,486)(61,873)Underlying loss before income tax(3,094,021)(680,836)(50,301)(352,496)(84,163)Lo

172、ss from ordinary activities after income tax expense($)(3,094,021)(680,836)(50,301)(352,496)(84,163)No of issued shares132,366,16312,320,25011,782,75010,050,0004Basic earnings per share(cents)1(3.8)(1.3)(0)(1)(4,969)Diluted earnings per share(cents)1(3.8)(1.3)(0)(1)(4,969)Share price at start of yea

173、r20.20N/AN/AN/AN/AShare price at end of year0.155N/AN/AN/AN/AMarket capitalisation(Undiluted)($)20,516,755N/AN/AN/AN/AInterim and fjnal dividendN/AN/AN/AN/AN/A5.RELATIONSHIP BETWEEN REMUNERATION AND GROUP PERFORMANCEThe Board aims to align executive remuneration to the Companys strategic and busines

174、s objectives and the creation of shareholder wealth.The table below sets out key metrics in respect of the Groups performance over the past fjve years.The remuneration framework is designed to take account of a suitable level for the fjxed remuneration in the context of balancing the requirements of

175、 a rapidly growing and newly ASX-listed company and focussing on strategic and business objectives to ensure shareholder value.There are currently no short-term or long-term incentives on foot.1 Basic earnings per share and diluted earnings per share have been retrospectively restated to account for

176、 a capital restructure of shares.A capital reconstruction was undertaken on 29 July 2019 and 4.2348 shares were issued for every 1 share.The number of shares issued in the previous fjnancial periods have been multiplied by 4.2348 for the purpose of EPS calculation.2 The Company was incorporated in 2

177、014 as a proprietary company and was changed to an unlisted public company on 5 December 2019.Share price at start of FY20 is shown as at commencement of ASX quotation on 20 April 2020 following admission to the offjcial list of ASX on 16 April 2020,based on the value of shares taken up pursuant to

178、the prospectus.18Short-term employee benefjts($)Post-employment($)Share-based payments($)Salary&FeesShort-term incentiveAnnual leaveOtherSuperannuation SharesOptions2Total share-based paymentsNON-EXECUTIVE DIRECTORS1Stephen Gerlach40,000-3,800-150,470150,470Leonard Piro326,666-2,533105,000120,376225

179、,376Kevin Reid26,666-2,533-30,09430,094Subtotal93,332-8,866105,000300,940405,940EXECUTIVES1Andrew Sales220,066-5,502-20,906-Sean Ebert4,596,666-2,53350,000120,376170,376Benjamin Hodgson6121,200-Subtotal437,932-5,502-23,43950,000120,376170,376TOTAL531,264-5,502-32,305155,000421,316576,3161 Refer to s

180、ection 2 of this report for KMP commencement dates.2 Options:In accordance with the requirements of the Accounting Standards,remuneration includes the total value of equity-based compensation as determined as at the grant date,as this compensation is not performance-related and there is no residual

181、vesting period.The amount allocated as remuneration is not relative to or indicative of the actual benefjt(if any)that the KMP may ultimately realise.The fair value of$0.060188 per option was determined in accordance with AASB2 Share-based Payments,applying the Black-Scholes method.Details of the as

182、sumptions underlying the valuation are set out in note 10 to the fjnancial statements.3 Shares were issued to Leonard Piro on 7 February 2020 as consideration in lieu of cash for consulting services provided to the Company.Details are provided at section 8 of this report.4 Salary and fee remuneratio

183、n for Sean Ebert comprised Non-executive Director fees of$26,666 as well as$70,000 +GST paid to his controlled entity,Ebert Industries Pty Ltd,for consultancy services and his services as an Executive Director.See details in section 7 of this report.5 Shares were issued to Sean Ebert on 7 February 2

184、020 as consideration in lieu of cash for consulting services provided to the Company.Details are provided at section 8 of this report.6 Services were provided by Benjamin Hodgson through his controlled entity,Philhodge Business Services Pty Ltd.See details in section 7 of this report.Termination($)O

185、ther long-term benefjts($)Total($)Total at risk(%)NON-EXECUTIVE DIRECTORS1Stephen Gerlach-194,270-Leonard Piro3-254,575-Kevin Reid-59,293-Subtotal-508,138-EXECUTIVES1Andrew Sales-246,474-Sean Ebert4,5-269,575-Benjamin Hodgson6-121,200-Subtotal-637,249-TOTAL-1,145,387-6.DIRECTOR AND KMP REMUNERATIONR

186、emuneration for the fjnancial year ended 30 June 2020Termination($)Other long-term benefjts($)Total($)Total at risk(%)NON-EXECUTIVE DIRECTORS1Graham Durtanovich2-30,000-EXECUTIVES1Andrew Sales3-153,818-TOTAL-183,818-Short-term employee benefjts($)Post-employment($)Share-based payments($)Salary&FeesS

187、hort-term incentiveAnnual leaveOtherSuperannuation SharesOptions2Total share-based paymentsNON-EXECUTIVE DIRECTORS1Graham Durtanovich230,000-EXECUTIVES1Andrew Sales3153,818-TOTAL183,818-Remuneration for the fjnancial year ended 30 June 20191 During the fjnancial year ended 30 June 2019,Sean Ebert wa

188、s paid$5,000 for consulting services through his controlled entity Ebert Industries Pty Ltd and Leonard Piro was paid$24,500 for consulting services.Neither Sean Ebert nor Leonard Piro was considered to be KMP in the fjnancial year ended 30 June 2019.Refer to section 2 of this report for commencemen

189、t dates as KMP in the fjnancial year ended 30 June 2020 upon their appointments as Non-executive Directors.2 Graham Durtanovich was a KMP only during the period he was a Non-executive Director between 4 January 2019 and 28 February 2019.No remuneration was paid specifjcally as Directors fees in resp

190、ect of this role.During the fjnancial year consulting fees were paid for accounting and corporate advisory services provided through his controlled entities Connected Energy Solutions Pty Ltd trading as Chaperon Corporate($10,000+GST)and Energy Capital Partners Pty Ltd($20,000+GST).3 During the fjna

191、ncial year ended 30 June 2019,remuneration for Andrew Sales was paid to his controlled entity La Vida Investments Pty Ltd under a consultancy agreement with the Company.19AML 3 D Ltd/2 0 19/20 A n n ual Rep or t207.KEY TERMS OF EMPLOYMENT CONTRACTSNon-Executive DirectorsThe Company has entered into

192、Non-Executive Director letters of appointment with each of Stephen Gerlach,Leonard Piro,Kevin Reid and Sean Ebert(Letters of Appointment).Under temporary arrangements,Sean Ebert has acted as an Executive Director(see below).Each of the Letters of Appointment provide that amongst other things,in cons

193、ideration for their services,the Company will pay the following fees,exclusive of statutory superannuation:Chairman$60,000 per annumNon-Executive Directors$40,000 per annum11 Additional consulting fees are payable to Sean Eberts consulting company under the agreement for services as an Executive Dir

194、ector described above.Each Non-Executive Director is also entitled to be reimbursed reasonable expenses incurred in performing their duties.The appointment of the Non-Executive Directors is subject to the provisions of the Constitution and the ASX Listing Rules relating to retirement by rotation and

195、 re-election of directors.The appointment of a Non-Executive Director will automatically cease at the end of any meeting at which the relevant Director is not re-elected as a Director by shareholders.A Director may terminate their directorship at any time by advising the Board in writing.The Letters

196、 of Appointment otherwise contain terms and conditions that are considered standard for agreements of this nature and are in accordance with the ASX Corporate Governance Councils Corporate Governance Principles and Recommendations(4th Ed).ExecutivesManaging DirectorThe Company has entered into an ex

197、ecutive services agreement with Andrew Sales,whereby he was engaged as the Managing Director and Chief Executive offjcer(Managing Director)of the Company.Andrew Sales receives a base salary of$220,000 per annum(exclusive of superannuation)for services rendered under the executive services agreement.

198、The Company will also,subject to certain conditions,reimburse the Managing Director for all reasonable travelling intra/interstate or overseas,accommodation and general expenses incurred in the performance of all duties in connection with the business of the Company.There is no short-term or long-te

199、rm incentive component to his remuneration.The termination provisions in the executive services agreement are on standard commercial terms and generally require a minimum period of notice prior to termination.In the event that the Company elects to terminate the executive services agreement without

200、reason,it must pay the Managing Director the salary payable over a six-month period.Executive DirectorSean Ebert was appointed as a Non-Executive Director of the Company,however in order to assist the Company in preparation for the lodgement of the prospectus and immediate post-IPO tasks,the Company

201、 entered into an Executive Services Agreement with Ebert Industries Pty Ltd(an entity controlled by Sean Ebert)for the provision of executive services to the Company(Ebert Agreement)from 4 November 2019 until a month following the IPO.Sean Ebert,as the person nominated by the contracted party is app

202、ointed as an Executive Director of the Company by virtue of the Ebert Agreement.This agreement was subsequently extended from May 2020,to be reviewed by the Board on a monthly basis,for executive services provided to the Company in the post-IPO establishment and growth phase.The services include rep

203、resenting AML3D as an Executive Director,including for investor presentations,as well provision of support in establishing the Companys post-IPO operations inclusive of support to the Managing Director.In addition to Sean Eberts Non-Executive Directors fee of$40,000 per annum(exclusive of statutory

204、superannuation),the Company paid a fee of$5,000 per month(inclusive of superannuation and leave entitlements,if any)for the provision of executive services to the Company for the period until 1 month after IPO.This was amended to$10,000 per month efgective from May 2020.Sean Ebert is entitled to rea

205、sonable expenses properly incurred whilst undertaking his respective duties.There is no short-term or long-term incentive component to this remuneration.In accordance with Rule 14.9 of the Companys Constitution,the remuneration under the Ebert Agreement is considered to be for extra services in addi

206、tion to his standard remuneration as part of the aggregate director fee pool,for his role as a Non-Executive Director.The Ebert Agreement may be terminated by either party with 1 months written notice and otherwise includes standard commercial terms and conditions.Under a separate arrangement for pr

207、ovision of additional consulting services prior to IPO,Sean Ebert was remunerated by the allotment of shares to Ebert Industries Pty Ltd the value of$50,000.Further details are provided in section 8 of this Remuneration Report.Chief Financial OffjcerDuring FY20,Benjamin Hodgsons services as Chief Fi

208、nancial Offjcer(CFO)were undertaken in accordance with a contractor agreement between the Company and Philhodge Business Services Pty Ltd,an entity controlled by Benjamin Hodgson(CFO Agreement).Under the CFO Agreement,Philhodge Business Services Pty Ltd provides the services of Benjamin Hodgson in t

209、he position of CFO at an all-inclusive hourly rate of$100 plus GST for such number of hours per month as may be directed by the Company.The contract is ongoing and subject to termination by either party with a notice period of 1 day.No short-term or long-term incentives are included in the remunerat

210、ion arrangements.A review of the contractual arrangements was undertaken in July 2020 and the remuneration under the CFO Agreement was amended to a rate of$158,000 plus GST per annum,invoiced in equal monthly payments efgective from July 2020,based on a full-time position.The CFO Agreement otherwise

211、 includes standard commercial terms.8.TERMS AND CONDITIONS OF SHARE-BASED PAYMENT ARRANGEMENTSShares were issued to Directors Leonard Piro and Sean Ebert on 7 February 2020 as consideration in lieu of cash for consulting services provided to the Company.700,000 fully paid ordinary shares were issued

212、 to Leonard Piro at a share price of$0.15 each in settlement of an amount of$105,000 for consulting services in the period 13 April 2017 to 29 October 2019.250,000 fully paid ordinary shares were issued to Sean Ebert at a share price of$0.20 each in settlement of an amount of$50,000 for consulting s

213、ervices in FY20.The key terms and conditions of the grant of share options afgecting the remuneration of Directors and KMP in the current and future reporting periods are as follows.These options are subject to ASX-imposed escrow restrictions for a period of 24 months from the date of IPO and subjec

214、t to further restrictions for a period of 3 years from the date of issue in accordance with the terms of the Concessional Incentive Option Plan under which these options were issued.Grant Date4 Dec 2019Vesting Date4 Dec 2019Expiry Date4 Dec 2024Exercise Price$0.30Number Granted7,000,000Fair Value pe

215、r option at grant$0.06Concessional Incentive Option PlanThe key terms of the Concessional Incentive Option Plan are as follows:EligibilityEmployees,contractors or directors(Participants)OfgersThe Board may in its absolute discretion make a written ofger to any Participant to apply for options upon t

216、he terms set out in the Concessional Incentive Option Plan and upon such additional terms and conditions as the Board determines.Vesting ConditionsOptions may be made subject to vesting conditions.Options will only vest while the Participant remains employed,engaged or is an offjcer of the Company.W

217、here a Participant becomes a:Good Leaver,unless the Board in its sole and absolute discretion determines otherwise,unvested options will lapse and vested options that have not been exercised will remain exercisable for a period of 3 months;Bad Leaver,unvested options will lapse and subject to the di

218、scretion of the Board,vested options that have not been exercised will lapse on the date of cessation of employment,engagement or offjce of the Participant.DisposalDisposal restrictions apply,including either 3 years after the date of issue of the option or when the optionholder ceases to be a Parti

219、cipant.Details of the Concessional Incentive Option Plan were included in the Companys Prospectus and a copy of the Plan was released to the ASX market announcements platform on 16 April 2020.A copy of the Concessional Incentive Option Plan is available on the Companys website at Rights and Option P

220、lanA Performance Rights and Option Plan is also in place to accommodate future long-term remuneration incentives but as at the date of this report no grants of performance rights or options have been made pursuant to this plan.Details of the Performance Rights and Option Plan were included in the Co

221、mpanys Prospectus and a copy of the Plan was released to the ASX market announcements platform on 16 April 2020.A copy of the Performance Rights and Option Plan is available on the Companys website at 3 D Ltd/2 0 19/20 A n n ual Rep or t229.DIRECTOR AND KMP EQUITY HOLDINGSDetails of the number of or

222、dinary shares held by Directors and KMP in the Company are set out below.This includes shares held directly,indirectly or benefjcially by Directors and KMP,including related party holdings.Balance at 1 Jul 2019PurchasedSoldOther changesBalance at 30 Jun 2020NON-EXECUTIVE DIRECTORSStephen Gerlach1-23

223、3,334-233,334Leonard Piro2-100,000-700,000800,000Kevin Reid3-58,334-58,334EXECUTIVESAndrew Sales49,375,000550,000-30,326,25040,251,250Sean Ebert5-741,666-250,000991,666Benjamin Hodgson6-83,334-83,334TOTAL9,375,0001,766,668-31,276,25042,417,918Balance at 1 July 2019GrantedPurchasedOptions ExercisedEx

224、pired/LapsedBalance at 30 June 2020VestedUnvestedNON-EXECUTIVE DIRECTORSStephen Gerlach-2,500,00066,667-2,566,6672,566,667-Leonard Piro-2,000,00050,000-2,050,0002,050,000-Kevin Reid-500,00016,667-516,667516,667-EXECUTIVESAndrew Sales-100,000-100,000100,000-Sean Ebert-2,000,000333,333-2,333,3332,333,

225、333-Benjamin Hodgson-16,667-16,66716,667-Total-7,000,000583,334-7,583,3347,583,334-Details of the number of options held by Directors and KMP in the Company are set out below.This includes options held directly,indirectly or benefjcially by Directors and KMP,including their related parties.1 Stephen

226、 Gerlach:33,334 shares are subject to escrow for 24 months from IPO.2 700,000 shares were issued to Leonard Piro on 7 February 2020 as non-cash consideration for consulting services.725,000 shares are subject to escrow for 24 months from IPO.3 Kevin Reid:8,334 shares are subject to escrow for 24 mon

227、ths from IPO.4 A capital reconstruction was undertaken on 29 July 2019 and 4.2348 shares were issued for every 1 share(rounded up to the nearest whole share).The 9,375,000 shares held by Andrew Sales at 1 July 2019 were converted to 39,701,250 shares.39,751,233 shares are subject to escrow for 24 mo

228、nths from IPO.5 250,000 shares were issued to Sean Ebert on 7 February 2020 as non-cash consideration for consulting services.416,667 shares are subject to escrow for 24 months from IPO.6 8,334 shares held by Benjamin Hodgson are subject to escrow to 19 December 2020.23AML 3 D Ltd/2 0 19/20 A n n ua

229、l Rep or tNot all options were granted as part of KMP remuneration.Options shown as purchased were obtained upon purchase of shares in the pre-IPO seed capital raising,which included attached options on the basis of 1 option for every 2 shares;these shares and options were purchased under the same t

230、erms and conditions as all other investors in the pre-IPO seed capital raising.All options held by Directors are subject to escrow restrictions for 24 months following the date of IPO.Options held by Benjamin Hodgson are subject to escrow restrictions until 19 December 2020.Options may be exercised

231、during the restriction period but shares issued as a result of exercise will remain subject to the restriction period applicable to the options.Terms of the options granted to Directors are provided in section 8 of this report.10.OTHER TRANSACTIONS WITH DIRECTORS AND KMPA loan from the Managing Dire

232、ctor to the Company was repaid during the year ended 30 June 2020.No loans were made to or from Directors or KMP and the Company during the year ended 30 June 2020.In the previous fjnancial year a related party payable existed between the Company and the Managing Director,to the value of$33,931,as a

233、t 30 June 2019.No formal agreement was in place and no interest was payable in respect of this related party payable between the Company and the Managing Director.The Managing Director provided a letter of support that his Director Loans owing would not be called on in full within 12 months of the d

234、ate of signing of the fjnancial report for the year ended 30 June 2019(which was signed on 23 December 2019);the amount was in any case settled in full by the Company during the fjnancial year ended 30 June 2020.There have been no transactions with Directors and KMP other than those described in thi

235、s Remuneration Report.Related Party TransactionsDetails of transactions with related parties including KMP are provided at Note 26 to the fjnancial statements.-End of Remuneration Report-24OPTIONS AND SHARE RIGHTSHolders of options and share rights do not have any rights to participate in any issue

236、of shares or other interests of the Company or any other entity.During the fjnancial year ended 30 June 2020,17,166,179 options were issued(2019:Nil).No shares were issued on the exercise of options during the fjnancial year ended 30 June 2020(2019:Nil).No share rights were issued(2019:Nil).As at th

237、e date of this report,the unissued ordinary shares of the Company under option are as follows.Grant dateExpiry DateExercise PriceNumber of Options30 July 201930 July 2023$0.302,000,0004 December 20194 December 2024$0.307,500,000119 December 201930 June 2021$0.306,297,84630 January 202030 June 2021$0

238、.30368,3333 April 202030 June 2021$0.301,000,000Total17,166,179Details of options issued to Directors are provided in the Remuneration Report commencing on page 15.There have been no options or share rights granted over unissued shares or interests of the controlled entity within the Group during or

239、 since the reporting period.CONVERTING LOAN AGREEMENTSDuring the preceding fjnancial year ended 30 June 2019,the Company entered into Converting Loan Agreements(CLAs)to a total value of$1,726,000,convertible to shares at IPO on the basis of 50%of the IPO price of$0.20,i.e.$0.10 each.During the fjnan

240、cial year ended 30 June 2020,all CLAs converted to shares prior to IPO,resulting in the issue of a total of 17,260,000 shares.PROCEEDINGS ON BEHALF OF THE COMPANYNo person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Compan

241、y is party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.The Company was not a party to any such proceedings during the fjnancial year.INDEMNIFICATION AND INSURANCE OF OFFICERS OR AUDITORDuring the fjnancial year,in accordance with the pro

242、visions of the Companys Constitution,the Company paid a premium in respect of a contract insuring the Directors of the Company,the Company Secretary and all Executive Offjcers of the Company against a liability incurred as such a director,secretary or executive offjcer to the extent permitted by the

243、 Corporations Act 2001(Cth).The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.In accordance with the Constitution,the Company has entered into Deeds of Indemnity in favour of each of the current Directors and Company Secretary.The indemnities

244、 operate to the full extent permitted by law.The Company is not aware of any liability having arisen,and no claims have been made during or since the fjnancial year ending 30 June 2020 under the Deeds of Indemnity.The Companys subsidiary,AML Technologies(Asia)Pte Limited has provided a letter of ind

245、emnity to its Company Secretary.The Company has not otherwise,during or since the end of the fjnancial year,except to the extent permitted by law,indemnifjed or agreed to indemnity an offjcer or auditor of the Company or of any related body corporate against a liability incurred as such an offjcer o

246、r auditor.NON-AUDIT SERVICESThe Board is satisfjed that the provision of non-audit services by its auditor,William Buck,during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.The Directors are satisfjed that the non-audit services pr

247、ovided by the auditors during the year did not compromise the external auditors independence.The fees paid or payable to William Buck for non-audit services are set out in Note 11 of the fjnancial report.The non-audit services provided were the preparation of an Investigating Accountants Report in r

248、espect of the Companys IPO Prospectus and tax compliance services.AUDITORS INDEPENDENCE DECLARATIONThe auditors independence declaration is included on page 25 of this annual report.This Directors Report is signed in accordance with a resolution of Directors made pursuant to s298(2)of the Corporatio

249、ns Act 2001.On behalf of the DirectorsStephen Gerlach AM Chairman30 September 20201 Comprises 7,000,000 options issued to Directors and 500,000 options issued to the Company Secretary.25AML 3 D Ltd/2 0 19/20 A n n ual Rep or tAuditors Independence Declaration Under Section 307c Of The Corporations A

250、ct 2001 To The Directors Of AML3D Limited I declare that,to the best of my knowledge and belief during the year ended 30 June 2020 there have been:no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit;and no contraventions of any

251、applicable code of professional conduct in relation to the audit.William Buck ABN:38 280 203 274 M.D.King Partner Dated this 30th day of September,2020 in Adelaide,South Australia.Auditors Independence Declarationand the directors declaration.(i)giving a true and fair view of the Groups financial po

252、sition as at 30 June 2020 and of its financial Accounting Professional and Ethical Standards Boards APES 110 in of ide A detailed evaluation of the Groups research 26Report on the Audit of the Financial Report Opinion We have audited the financial report of AML3D Limited(the Company and its subsidia

253、ry(the Group),which comprises the consolidated statement of financial position as at 30 June 2020,the consolidated statement of profit or loss and other comprehensive income,the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended,and notes

254、 to the financial statements,including a summary of significant accounting policies and other explanatory information,and the directors declaration.In our opinion,the accompanying financial report of the Group,is in accordance with the Corporations Act 2001,including:(i)giving a true and fair view o

255、f the Groups financial position as at 30 June 2020 and of its financial performance for the year ended on that date;and (ii)complying with Australian Accounting Standards and the Corporations Regulations 2001.Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards.O

256、ur responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Report section of our report.We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requireme

257、nts of the Accounting Professional and Ethical Standards Boards APES 110 Code of Ethics for Professional Accountants(including Independence Standards)(the Code)that are relevant to our audit of the financial report in Australia.We have also fulfilled our other ethical responsibilities in accordance

258、with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Key Audit Matters Key audit matters are those matters that,in our professional judgement,were of most significance in our audit of the financial report of the current pe

259、riod.These matters were addressed in the context of our audit of the financial report as a whole,and in forming our opinion thereon,and we do not provide a separate opinion on these matters.KEY AUDIT MATTER Research and development expenditure-existence and valuation.Refer also to notes 3(i)and 12.H

260、ow our audit addressed it The group incurs significant amounts of research and development costs each year.In 2020 these costs amounted to$799,659.Each year the Group makes an assessment as to the amount it expects to claim from the Australian Government by the way of a Research&Development Tax Offs

261、et Refund.At 30 June 2020 the amount disclosed as a current trade and other receivable in relation to the refund is$310,000.Our audit procedures included:A detailed evaluation of the Groups research and development strategy;Testing the costs incurred;Engaging our own taxation specialists to consider

262、 the appropriateness of the Groups substantiation for the claim;AML3D Limited Independent auditors report to members Audit Reportand the directors declaration.(i)giving a true and fair view of the Groups financial position as at 30 June 2020 and of its financial Accounting Professional and Ethical S

263、tandards Boards APES 110 in of ide A detailed evaluation of the Groups research o s 27AML 3 D Ltd/2 0 19/20 A n n ual Rep or tOverall due to the high level of judgement involved,and the significant carrying amount involved,we have determined that this is a key audit matter area that our audit concen

264、trated on.Reviewing the historical accuracy by comparing actual Tax offset refunds with the original estimations.We assessed the adequacy of the Groups disclosures in respect of the transactions.KEY AUDIT MATTERValuation of Share based payments.Refer also to notes 10 and 23.How our audit addressed i

265、tThe Group has entered into share-based payment arrangements during the year.Options were issued to provide long term incentives for Directors,executives and consultants to deliver long term shareholder returns.Participation in the plan was at the boards discretion and no individual has a contractua

266、l right to participate in the plan or to receive any guaranteed benefits.This was a key audit matter because the arrangements required significant judgments and estimations by management,including the following:The evaluation of the grant date of each arrangement,and the evaluation of the fair value

267、 of the underlying share price of the Company as at the grant date;The evaluation of key inputs into the Black Scholes option pricing model,including the significant judgment of the forecast volatility of the share option over its exercise period.The results of these share-based payment arrangements

268、 materially affect the financial statements and disclosures.Our audit procedures included:Evaluating the grant dates based on the terms and conditions of the share-based payment arrangements;Evaluating the fair values of the share-based payment arrangements by understanding and documenting the assum

269、ptions used;and For the specific application of the Black Scholes model,we consulted with our internal experts,retested the assumptions used in the model and recalculated fair values using assumptions that are appropriately reasonable and within industry norms.We also reconciled the vesting of the s

270、hare-based payment arrangements to disclosures made in both the key management personnel compensation note and the disclosures in the Remuneration Report.Other Information The directors are responsible for the other information.The other information comprises the information in the Groups annual rep

271、ort for the year ended 30 June 2020,but does not include the financial report and the auditors report thereon.Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial report,o

272、ur responsibility is to read the other information and,in doing so,consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.If,based on the work we have performed,we conclude tha

273、t there is a material misstatement of this other information,we are required to report that fact.We have nothing to report in this regard.28Audit Report(continued)Responsibilities of the Directors for the Financial ReportThe directors of the Company are responsible for the preparation of the financi

274、al report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material

275、 misstatement,whether due to fraud or error.In preparing the financial report,the directors are responsible for assessing the ability of the Group to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accounting unless the direc

276、tors either intend to liquidate the Group or to cease operations,or has no realistic alternative but to do so.Auditors Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstate

277、ment,whether due to fraud or error,and to issue an auditors report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists

278、.Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.A further description of our responsibilities for the audit of these

279、 financial statements is located at the Auditing and Assurance Standards Board website at:http:/www.auasb.gov.au/auditors_responsibilities/ar1.pdfThis description forms part of our independent auditors report.Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Re

280、muneration Report included in pages 15 to 23 of the directors report for the year ended 30 June 2020.In our opinion,the Remuneration Report of AML3d Limited,for the year ended 30 June 2020,complies with section 300A of the Corporations Act 2001.Responsibilities The directors of the Company are respo

281、nsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001.Our responsibility is to express an opinion on the Remuneration Report,based on our audit conducted in accordance with Australian Auditing Standards.William Buck ABN:38

282、 280 203 274 M.D.King Partner Dated this 30th day of September,2020 in Adelaide,South Australia.29AML 3 D Ltd/2 0 19/20 A n n ual Rep or tFinancial StatementsSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 30STATEMENT OF FINANCIAL POSITION 31STATEMENT OF CHANGES IN EQUITY 32STATEMENT OF C

283、ASHFLOWS 32NOTES TO THE FINANCIAL STATEMENTS 33DIRECTORS DECLARATION 5230STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 30 June 2020NoteConsolidated 2020($)Consolidated 2019($)Revenue6288,51636,057Cost of goods sold(69,254)(108,254)Gross profjt219,262(72,197)R&D Tax Ofg

284、set309,054252,000Government grants126,000168,446Interest received11,780759Depreciation and amortisation expense7(85,829)(84,870)Directors and employees benefjt expense7(1,016,806)(356,959)Professional fees 7(1,274,755)(370,287)Insurance(53,784)(5,034)Travel(35,273)(77,006)Website costs-(26,125)Equit

285、y settled share-based payments10(966,740)-Other expenses(326,930)(109,563)Loss before income tax expense7(3,094,021)(680,836)Income tax8-Loss after tax attributable to the owners of the Company(3,094,021)(680,836)Other comprehensive(loss)net of tax-Total comprehensive loss for the year attributable

286、to the owners of the Company(3,094,021)(680,836)Loss per share(cents)25(3.8)(1.3)Basic and diluted loss per share(cents)25(3.8)(1.3)The Consolidated Statement of Profjt or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes,which form an integral part of the

287、 fjnancial report.STATEMENT OF FINANCIAL POSITIONAs at 30 June 2020NoteConsolidated 2020($)Consolidated 2019($)ASSETSCurrent AssetsCash and cash equivalents308,227,9861,158,109Trade and other receivables12706,735306,415Inventory13112,375-Other assets14235,2402,225Total current assets9,282,3361,466,7

288、49Non-current assetsFinancial assets1536,000-Property,plant and equipment161,121,552308,069Right of use assets17411,478-Intangible assets1841,00235,839Total non-current assets1,610,032343,908TOTAL ASSETS10,892,3681,810,657LIABILITIESCurrent liabilitiesTrade and other payables19738,392145,740Borrowin

289、gs20-1,759,931Lease liabilities 21125,098-Employee benefjts2227,95318,652Total current liabilities891,4431,924,323Non-current liabilitiesLease liabilities21288,005-Total non-current liabilities288,005-Total liabilities1,179,4481,924,323NET ASSETS/(LIABILITIES)9,712,920(113,666)EQUITYIssued capital23

290、13,310,7721,063,130Accumulated losses 24(4,270,817)(1,176,796)Reserves23672,965-TOTAL EQUITY9,712,920(113,666)The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes,which form an integral part of the fjnancial report.31AML 3 D Ltd/2 0 19/20 A n n u

291、al Rep or tIssued Capital($)Share Options Reserve($)Accumulated Losses($)Total Equity($)CONSOLIDATEDBalance at 1 July 2018976,105-(495,960)480,145Loss after income tax expense for the year(680,836)(680,836)Shares issued during the year,net of transaction costs87,025-87,025Balance at 30 June 20191,06

292、3,130-(1,176,796)(113,666)STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2020STATEMENT OF CASHFLOWSFor the year ended 30 June 2020CONSOLIDATEDBalance at 1 July 20191,063,130-(1,176,796)(113,666)Loss after income tax expense for the year-(3,094,021)(3,094,021)Shares issued during the year,n

293、et of transaction costs12,247,642-12,247,642Share options issued during the year-672,965-672,965Balance at 30 June 202013,310,772672,965(4,270,817)9,712,920The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes,which form an integral part of the fjn

294、ancial report.The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes,which form an integral part of the fjnancial report.NoteConsolidated 2020($)Consolidated 2019($)CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 129,80639,663Receipts from Gove

295、rnment grants119,225153,720Receipts from R&D Tax Incentive250,353103,288Payments to suppliers and employees(2,692,923)(985,285)Interest received8,330759Net cash(used in)operating activities30(2,185,209)(687,855)CASH FLOWS FROM INVESTING ACTIVITIESPayments for intangible assets(26,685)(18,848)Payment

296、 for fjnancial asset Term deposit(36,000)-Purchase of plant and equipment(826,085)(200,711)Net cash(used in)investing activities(880,770)(219,559)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from the issues of shares,net of costs10,227,86787,025Proceeds from the issue of convertible notes-1,726,000R

297、epayment of borrowings(84,011)(151,638)Net cash provided by fjnancing activities10,143,8561,661,387Net increase in cash and cash equivalents held7,069,877753,973Cash and cash equivalents at the beginning of year1,158,109404,136Cash and cash equivalents at end of fjnancial year308,227,9861,158,109NOT

298、ES TO THE FINANCIAL STATEMENTS1.GENERAL INFORMATIONAML3D Limited(“AML3D”or the“Company”)is a limited liability company incorporated in Australia,whose shares are listed on the ASX.The fjnancial statements were authorised for issue by the directors on 30 September 2020.The Directors have the power to

299、 amend and reissue the fjnancial statements.The fjnancial statements comprise the consolidated fjnancial statements of the Company and its controlled entity(the“Group”).The principle accounting policies adopted in the preparation of these consolidated fjnancial statements are set out below or includ

300、ed in the accompanying notes.Unless otherwise stated,these policies have been consistently applied to all the years presented.2.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES(a)Basis of PreparationThese general purpose fjnancial statements have been prepared in accordance with Australian Accounting St

301、andards and Interpretations of the Australian Accounting Standards Board and the Corporations Act 2001(Cth).The Company is a for profjt entity for the purpose of preparing the fjnancial statements.The consolidated fjnancial statements of AML3D comply with International Financial Reporting Standards

302、issued by the International Accounting Standards Board(IASB).The consolidated fjnancial statements have been prepared on an accruals basis,except for cashfmow information and are based on historical costs,except for the circumstances where the fair value method has been applied as detailed in these

303、accounting policies.The fjnancial statements have been prepared on a going concern basis which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.Comparatives are consistent with prior years,unles

304、s otherwise stated.(b)Principles of consolidationAs at reporting date,the assets and liabilities of all controlled entities have been incorporated into the consolidated fjnancial statements as well as their results for the year then ended.Where controlled entities have entered(left)the Consolidated

305、Group during the year,their operating results have been included(excluded)from the date control was obtained(ceased).(i)SubsidiariesSubsidiaries are entities controlled by the Group.A list of subsidiaries is provided in Note 33.(ii)Transactions eliminated on consolidation All intra-group balances an

306、d transactions,and any unrealised income and expenses arising from intra-group transactions,are eliminated in preparing the consolidated fjnancial statements.(c)Taxation(i)Income taxThe income tax expense/(income)of the year comprises current income tax expense/(income)and deferred tax expense/(inco

307、me).Current income tax expense/(income)charged to the profjt or loss is the tax payable on taxable income calculated using applicable income tax rates enacted,or substantially enacted,as at reporting date.Current tax liabilities(assets)are therefore measured at the amounts expected to be paid to(rec

308、overed from)the relevant taxation authority.Deferred income tax expense refmects movements in deferred tax assets and deferred tax liabilities during the year as well as unused tax losses.Deferred tax assets and liabilities are ascertained based on temporary difgerences arising between the tax bases

309、 of assets and liabilities and their carrying amounts in the fjnancial statements.Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available.No deferred income tax will be recognised from the initial recognition of an asset or liability,excluding a

310、 business combination,where there is no efgect on accounting or taxable profjt and loss.Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled,based on tax rates enacted or substantially enac

311、ted at reporting date.Their measurement also refmects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.Where temporary difgerences exist in relation to investments in subsidiaries,branches,associates,and joint ventures,deferred tax ass

312、ets and liabilities are not recognised where the timing of the reversal of the temporary difgerence can be controlled and it is not probable that the reversal will occur in the foreseeable future.33A M L 3 D L t d /2 0 1 9/2 0 A n n u a l R e p o r t34Deferred tax assets are recognised for deductibl

313、e temporary difgerences and unused tax losses only if it is probable that future tax amounts will be available to utilise those temporary difgerences and losses.Current tax assets and liabilities are ofgset where a legally enforceable right of ofgset exists and it is intended that net settlement or

314、simultaneous realisation and settlement of the respective asset and liability will occur.Deferred tax assets and liabilities are ofgset where a legally enforceable right of set-ofg exists,the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either t

315、he same taxable entity or difgerent taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which signifjcant amounts of deferred tax assets or liabilities are expected to be recovered

316、or settled.(ii)Goods and Services Tax(GST)Revenues,expenses,and assets are recognised net of the amount of GST,except where the amount of GST incurred is not recoverable from the taxation authority.In these circumstances,the GST is recognised as part of the cost of acquisition of the asset or as par

317、t of an item of expense.Receivables and payables in the Statement of Financial Position are shown inclusive of GST.The net amount of GST recoverable from,or payable to,the Australian Taxation Offjce is included as a current asset or liability in the Statement of Financial Position.Cash fmows are pre

318、sented in the statement of cash fmows on a gross basis,except for the GST component of investing and fjnancing activities,which are disclosed as operating cash fmows included in cash infmows from operations or payments to suppliers and employees.(d)Plant and equipment(i)Recognition and measurement I

319、tems of plant and equipment are measured on the cost basis and carried at cost less accumulated depreciation and impairment losses.In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount,the carrying amount is written down immediately to the estimated

320、 recoverable amount and impairment losses are recognised either in profjt or loss or as a revaluation decrease if the impairment losses relate to a revalued asset.A formal assessment of recoverable amount is made when impairment indicators are present.Cost includes expenditure that is directly attri

321、butable to the acquisition of the asset.The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not more than the recoverable amount from these assets.The recoverable amount is assessed based on the expected net cash fmows that will be received from the assets em

322、ployment and subsequent disposal.The expected net cash fmows have not been discounted to their present values in determining recoverable amounts.Where parts of an item of plant and equipment have difgerent useful lives,they are accounted for as separate items of plant and equipment.(ii)Subsequent co

323、stsThe cost of replacing part of an item of plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefjts embodied within the part will fmow to the Group and its cost can be measured reliably.Any costs of the day-to-day servicing of plant an

324、d equipment are recognised in the Statement of Profjt or Loss and Other Comprehensive Income as an expense as incurred.(iii)Depreciation Depreciation is charged to the statement of profjt or loss and other comprehensive income on a straight-line basis over the assets useful life to the Group commenc

325、ing from the time the asset is held ready for use.Depreciation rates and methods are reviewed annually for appropriateness.The straight-line depreciation rates used for the current period are as follows:Class of fjxed assetDepreciation rate(%)Offjce and Computer equipment20-33Plant and Equipment 10-

326、20Motor Vehicles22.5Leasehold improvements over the term of the leaseThe assets residual values and useful lives are reviewed,and adjusted if appropriate,at the end of each reporting period.An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount

327、is greater than its estimated recoverable amount.Gains and losses on disposal of an item of plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of plant and equipment and are recognised net within“other income”in the Statement of profjt or loss and oth

328、er comprehensive income.35AML 3 D Ltd/2 0 19/20 A n n ual Rep or t(e)Impairment of non-fjnancial assetsThe carrying amounts of the Groups non-fjnancial assets,other than deferred tax assets(see accounting policy 2(c)are reviewed at each reporting date to determine whether there is any indication of

329、impairment.If any such indication exists,then the assets recoverable amount is estimated.An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.A cash-generating unit is the smallest identifjable asset group that generates cash

330、fmows that largely are independent from other assets and asset groups.Impairment losses are recognised in the statement of profjt or loss and other comprehensive income,unless the asset has previously been revalued,in which case the impairment loss is recognised as a reversal to the extent of that p

331、revious revaluation with any excess recognised through the statement of profjt or loss and other comprehensive income.Impairment losses recognised in respect of cash-generating units are allocated to the other assets in the unit on a pro rata basis.The recoverable amount of an asset or cash generati

332、ng unit is the greater of its fair value less costs to sell and value in use.In assessing value in use,the estimated future cash fmows are discounted to their present value using a pre-tax discount rate that refmects current market assessments of the time value of money and the risks specifjc to the

333、 asset.For an asset that does not generate largely independent cash fmows,the recoverable amount is determined for the cash-generating unit to which the asset belongs.Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.An impairment loss is reversed if there has been a change in the estimates used to