Ava Group (AVA) 2024年年度報告「ASX」.pdf

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1、DETECT ACCESS ILLUMINATE2024 ANNUAL REPORT2|2024 ANNUAL REPORT AVA GROUPCORPORATE INFORMATIONABN 67 064 089 318 DIRECTORSDavid Cronin,Chairman and Non-Executive DirectorMark Stevens,Non-Executive DirectorMike McGeever,Non-Executive DirectorMalcolm Maginnis,Group Chief Executive Officer and Executive

2、 DirectorCOMPANY SECRETARIESNeville Joyce,Kim LarkinREGISTERED OFFICE&PRINCIPAL PLACE OF BUSINESS10 Hartnett Close,Mulgrave,Victoria 3170,AustraliaTelephone:+61 3 9590 3100Facsimile:+61 3 9560 8000INVESTOR RELATIONS Email:SHARE REGISTRYBoardroom Pty Ltd Grosvenor Place,Level 12,225 George Street,Syd

3、ney,NSW 2000,AustraliaTelephone(within Australia):1300 737 760Telephone(outside Australia):+61 2 9290 9600Facsimile:+61 2 9279 0664STOCK EXCHANGEAVA Risk Group Limited shares are quoted on the Australian Securities Exchange(ASX).ASX Code:AVABANKERSWestpac Banking Corporation,275 Kent Street,Sydney,N

4、SW 2000,AustraliaAUDITORSBDO Audit Pty Ltd,Level 18,Tower 4/727 Collins St.Docklands VIC 3008WEBSITEInformation correct as at 27 August 2024.CHAIRMANS REPORT 04 CHIEF EXECUTIVE OFFICERS REPORT 06DIRECTORS REPORT 10DIRECTORS DECLARATION 79INDEPENDENT AUDITORS REPORT 81SHAREHOLDER INFORMATION 86TABLE

5、OF CONTENTS4|AVA GROUP ANNUAL REPORT 2023The investments made in our commercial capability and technology impacted EBITDA in FY2024.However,these investments have positioned the Company well for future growth.We remain committed and focused on the strategy to grow revenue and profits and have a clea

6、r path to continued growth over the next 24 months underpinned by:Growth in sales order intake.Strong sales order backlog.Increasing recurring revenue.High gross margins of 60 65%.Scalable cost base generating positive EBITDA.Finally,I would like to thank you,our shareholders and associates,for your

7、 continued support and engagement with the Ava Group as we build a world class technology business.On behalf of my fellow Directors,I also thank the management team for their hard work,dedication,and achievements throughout FY2024.DEAR FELLOW SHAREHOLDERS AND ASSOCIATESI am pleased to report to shar

8、eholders on the significant progress that Ava Risk Group Limited(Ava Risk Group/the Company)has made during FY2024 on building its position as a global leader in sensing and risk management technology.Since Mal Maginnis joined the Company as Group CEO in January 2023 the Company has focussed on enha

9、ncing its commercial capability and technology to grow revenue by increasing market share and developing adjacent applications.In the Detect segment,we have continued to invest in the technology that supports the Companys product offering.Aura Ai-X is a market leading fibre optic sensing solution th

10、at has enormous versatility in its application.It is rapidly becoming a solution of choice for diverse industries ranging from telecommunications,sovereign border detection and energy infrastructure protection.In the Access segment we completed product certifications for the Cobalt series locks whic

11、h enabled initial stocking orders from dormakaba under its global framework agreement.Total sales order intake for Access grew by 48%on the previous year underlining the importance of the framework agreement with dormakaba.Access is well placed to continue its growth trajectory in FY2025.In the Illu

12、minate segment we have developed a new wireless solution based on LoRa which enables the integration of up to 500 devices without the need for data cables to provide a unified control and security network.The LoRa product will be launched in the market in FY2025.The improved sophistication in our co

13、mmercial capability is best demonstrated by the significant agreements that the Company progressed during FY2024.Following extensive collaboration and product trials,Ava Risk Group signed a supply agreement with Telstra Group for the supply of its technology and services to Australias largest teleco

14、mmunication provider and owner of Australias largest fibre optic network.This is an exciting opportunity for the Company to deploy its technology to an existing fibre network,transforming the sensing capability of the network.Ava Risk Group also entered an agreement with UGL Limited to deploy its fi

15、bre optic sensing technology on a major Sydney transportation project.Using the Companys market leading Aura Ai-X technology,Ava Risk Groups obligations on this project have been substantially delivered during FY2024.Our obligations included ensuring that Aura Ai-X received Safety Integrity Level 2

16、certification,a safety standard specific to railway control and protection applications.This is a globally recognised certification that ensures Aura Ai-X can be deployed to further railway protection opportunities.Reflecting the strength of the opportunities before the Company,the Company undertook

17、 a successful equity raising during H2 FY2024.Ava Risk Group raised$4.3 million from an institutional placement of$3.0 million in March 2024 and$1.3 million from an oversubscribed Share Purchase Plan in May 2024.Funds raised have been used to support major contract delivery and ongoing technology de

18、velopment.Total sales order intake for the Company was$35.3 million,an increase of 14%on the previous year.This has resulted in revenue of$30.2 million for FY2024,an increase of 6%on the previous year.The difference between sales order intake and revenue is reflected in growth in the sales order bac

19、klog to$8.5 million,including$2.0 million in contracted ARR.Growing ARR remains a key element of Aura Ai-X market offering.Pleasingly the Company recorded positive EBITDA during H2 FY2024 as revenue increased and the cost base stabilised.David Cronin ChairmanCHAIRMANS REPORT|52024 ANNUAL REPORT AVA

20、GROUP6|AVA GROUP ANNUAL REPORT 2023REVIEW OF OPERATIONSI am pleased to report on the continued progress that Ava Risk Group has made towards becoming a world leader in the provision of sensing and risk management technologies.Since joining Ava Risk Group in January 2023 my focus has been in three ke

21、y areas:Grow our commercial capability to improve the sophistication of our sales and business development offering and target premium partners for delivery of our products and services.Grow revenue and market share to better leverage our cost base and improve earnings,while creating a sales order b

22、acklog to improve predictability of forecast revenue.Ensuring our technology is market leading and provides a competitive advantage.This has resulted in an increase in our backlog and the volume and quality of our pipeline.These two factors are the key to sustaining the achievements of this year and

23、 building on this foundation for a strong FY25.During H1 FY2024 I completed the restructuring of our customer facing sales and technical support capability.We have invested heavily to upskill these teams,reflecting the complex challenges of larger program sales which is fundamental to growing the re

24、venue base of the business.We have seen the benefit of this investment through growth in sales order intake and backlog while establishing contracts with significant partners such as Telstra,UGL Limited,Siemens,Santos,Exxon and dormakaba.Highlights during FY2024 include:Sales order intake grew by 14

25、%to$35.3 million with growth recorded in each operating segment.At 30 June 2024 we carried a sales order backlog of$8.5 million which represents orders received that are yet to be fulfilled.Of the backlog,$4.9 million relates to equipment for project delivery which is anticipated to be fulfilled pri

26、marily in H1 FY2025.The balance of the backlog relates to commissioning services and multi-year support contracts including contracted ARR of$2.0 million.In February 2024 we signed a supply agreement with Telstra for the provision of all our goods and services.This agreement represents a significant

27、 milestone in adapting our fibre optic technology to other applications such as telecommunications.By partnering with Telstra,we are able to use our fibre optic technology to transform their existing fibre network into sensors.This will also open major new markets globally and demonstrates that our

28、technology can be applied to solutions beyond security detection.Partnering with UGL Limited to provide intrusion detection systems to a major transport infrastructure project in New South Wales.This contract is significant as it is the first major transport project that the Company has been awarded

29、 in Australia for transport infrastructure.It follows our successful completion of a metro program in Chile in 2023.As part of this project,Aura Ai-X achieved Safety Integration Level 2,a globally recognised safety certification within the rail sector.We are now well placed to pursue further rail re

30、lated opportunities both in Australia and internationally.Deepened our relationship with dormakaba for our Access products including the first sales orders for the distribution of our Cobalt series locks in North America.This important distribution channel is the culmination of product development a

31、nd certification since signing a global framework agreement with dormakaba in December 2021.It remains a key driver of future growth within the Access segment.Focus on sales growth in key geographies and industry verticals.During FY2024 we received our first sales orders for Aura Ai-X perimeter dete

32、ction systems with U.S.correctional facilities and received further orders in the North American energy sector.Both of these sectors remain important catalysts for growth in the North American segment.CHIEF EXECUTIVE OFFICERS REPORTWe also continued to invest heavily in our technology across all thr

33、ee operating segments during FY2024.The Aura Ai-X is a market leading fibre optic sensing product that has achieved significant customer uptake since its launch in March 2023.It is at the forefront of transforming the deployment of our technology from its security-based heritage to fibre sensing app

34、lications which generate sensing data for end users.Its versatility is demonstrated by the wide range of applications to which it has been deployed during FY2024 sovereign border protection in Europe,energy infrastructure in the U.S.,telecommunications in Australia.We have grown our contracted recur

35、ring revenue base to$2.0 million as a subscription model has become an integral element of the Aura Ai-X product.In addition,we launched a second product within the Aura Ai-X family to cater for shorter range applications and integrate with our successful Illuminate range of sensors.In Access,the pr

36、oduct development and certification of the Cobalt series locks was finalised in FY2024.This enabled us to fulfill initial stocking orders with dormakaba under a global framework agreement and was a key driver of the impressive sales order growth of 48%that was recorded in FY2024.We will continue to

37、invest in both locks and reader development in the Access business and believe that this segment can sustain its growth rate.Development of the LoRa wireless connection solution was completed during FY2024 in the Illuminate segment.LoRa is a system that can connect up to 500 devices without the need

38、 for data cables.It incorporates devices into a unified network alongside other control,automation and security systems and offers configuration capabilities that enable intelligent responses to events.It will be launched in the market during H1 FY2025.A$mFY2023H1 FY2024H2 FYFY2024ChangeRevenue and

39、other income28.614.216.030.21.6Underlying EBITDA*1.3(0.9)0.1(0.9)(2.1)Loss after tax(1.1)(2.3)(2.9)(5.2)(4.1)*Underlying EBITDA is loss after tax adjusted for depreciation and amortisation,impairment of goodwill,finance expense and foreign exchange movements per Consolidated Statement of Comprehensi

40、ve Income.FINANCIAL REVIEWRevenue and Other Income of$30.2 million was$1.6 million higher than the previous year(FY2023:$28.6 million).Revenue grew in the second half compared to the first half(up by 13%)driven by improved performance in the Detect segment.Over the full year revenue growth was achie

41、ved in both Access(38%)and Illuminate(5%).Despite growth in sales order intake for Detect,revenue was slightly lower in FY2024 reflecting a subdued first half and a number of open sales orders remaining in the sales order backlog pending fulfillment in FY2025.EBITDA loss prior to the impairment of g

42、oodwill of$0.9 million is lower than for the prior year impacted by the significant investment in both commercial and technology capability.Underlying EBITDA was positive during the second half year driven by increased revenue and a stabilised cost base following completion of business restructure a

43、ctivity during H1 FY2024.An impairment charge of$1.5 million against goodwill in the Illuminate segment was recognised in FY2024.The charge is a result of lower than previously forecast(within our internal impairment testing model)performance during FY2024 for the segment which has resulted in a re-

44、assessment of subsequent periods.In accordance with relevant accounting standards an adjustment to the carrying value of goodwill was recorded.Nonetheless I remain very confident in the future performance of the Illuminate segment,particularly its complimentary offering with Detect.Net loss for the

45、period was$5.2 million(FY2023 was a net loss of$1.1 million)reflecting lower EBITDA and the impairment of goodwill.The Company had a cash balance at 30 June 2024 of$5.1 million.|72024 ANNUAL REPORT AVA GROUP|92024 ANNUAL REPORT AVA GROUPOUTLOOKThe Company remains well placed to accelerate revenue an

46、d earnings growth in FY2025.Given our business capability and technology investment,earnings growth will be driven by increased revenue leveraging a stable cost base.To this end,growth catalysts exist in each of the segments to drive future revenue.The focus in Detect is on increasing the market pen

47、etration of Aura Ai-X.We have successfully deployed this technology to multiple applications and will build on that to drive further sales in FY2025.We will consolidate our position in both the North American corrections and energy sectors.We will complete the UGL transportation project in early FY2

48、025 and use that to position ourselves for future rail infrastructure projects,both in Australia and internationally.The successful deployment of our technology to sovereign border protection has led to a number of other opportunities in Europe and Asia which we expect to close in FY2025.We carry a

49、strong global sales pipeline of traditional infrastructure protection opportunities.Our supply agreement with Telstra provides tangible evidence of the ability to use our technology in adjacent sensor-based applications.We are actively working with Telstra to generate use-cases of how our technology

50、 can be installed on Telstras fibre network to transform it to sensors.This is an incredibly exciting opportunity which will propel growth in Australia and provide additional opportunities in the international telecommunications sector.Building on the strong growth in Access in FY2024,we will exploi

51、t our key distribution channels for our market leading locks.dormakaba is an important relationship to drive increased volume as it enables our products to access a global distribution network.We also continue to grow our other distribution channels particularly in Europe,U.K.and Asia Pacific.We are

52、 refreshing our reader technology and are confident that this will generate opportunities for equipment upgrades to existing customers while also attracting new customers.The Illuminate segment provides a complimentary product offering to the Detect segment.Increasingly through FY2025 I expect to se

53、e close collaboration across the Illuminate and Detect segments to provide a more holistic solution to our customers requirements.It remains a priority to leverage our position in North America and Asia Pacific to grow the Illuminate segment.The anticipated launch of LoRa System in early FY2025 will

54、 provide another strong growth catalyst.I look forward to updating you on our successes in FY2025.Mal Maginnis,Chief Executive OfficerFY2024 HIGHLIGHTS$CASH BALANCE$5.1M$REVENUE$30.2M$SALES ORDERS$35.3MREVENUE BY SEGMENT DETECT ACCESS ILLUMINATE REVENUE BY REGION EUROPEOTHERAMERICAS APACDETECT Aura

55、Ai-X continued to demonstrate enormous versatility in applications from border protection to energy facility and prison security.Launched new Aura Ai-XS for shorter perimeter of up to 5kms per channel.Continued expansion in transport sector with Aura Ai-X now protecting mass transit infrastructure l

56、ocally and overseas.ACCESS Newly launched YG80B,Bluetooth-enabled lock An innovation built on the success of the YG80 lock.Continued to build,grow,and nurture dormakaba distribution relationships,including in the UK&Ireland,Poland,New Zealand,and Switzerland.Launched YD30S and YD30D Version 2.0 for

57、the U.S.market.ILLUMINATE Released LoRa Connect wireless solution which allows integration of up to 500 devices to delivering unified control/security network.New distributors secured in Poland,Germany,Austria,Estonia and Slovakia.LoRa system installed at the UK Parliament,detectors by the mining in

58、dustry and illuminators for wildlife filming.8|2024 ANNUAL REPORT AVA GROUP$ORDER BACKLOG$8.5MDIRECTORS REPORTTABLE OF CONTENTSAUDITORS INDEPENDENCE DECLARATIONCONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT

59、OF CASH FLOWS CONSOLIDATED STATEMENT OF CHANGES IN EQUITYNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DIRECTORS DECLARATION INDEPENDENT AUDIT REPORT SHAREHOLDER INFORMATION 3132 3436373879818612|AVA GROUP ANNUAL REPORT 2023The directors present their report together with the financial report of th

60、e Consolidated Entity(referred to hereafter as the“Group”or“Consolidated Entity”)consisting of AVA Risk Group Limited(referred to hereafter as the“Company”or“AVA Risk Group”or“AVA Group”)and the entities it controlled for the financial year ended 30 June 2024 and auditors report thereon.DirectorsThe

61、 names of directors in office at any time during or since the end of the year are detailed in the table below.The directors have been in office since the start of the year to the date of this report unless otherwise stated.Information on Company Directors and Company SecretaryThe qualifications,expe

62、rience and special responsibilities of each person who has been a director of AVA Group at any time since 1 July 2023 to the date of this report is provided below with details of the company secretaries as at the year end.Name,qualifications,and independence statusExperience,special responsibilities

63、 and other directorshipsDavid CroninChairman of the Board(Appointed 31 August 2018)Non-Executive Director(Appointed 10 April 2018)David has over 25 years professional experience and more than 15 years of international experience at the director/chairman board level.David is presently the Managing Di

64、rector of the investment&consulting group Pierce Group Asia where he is responsible for its technology focussed corporate development and investment activities.Previous to his role at Pierce Group Asia,David was an investment manager for the London listed Guinness Peat Group PLC and Director of M&A

65、for its technology focussed division.Working for several large financial and non-financial institutions,David has been involved in various advisory,executive level and board positions with several early to mid-stage technology companies.David has extensive knowledge of AVA Group and the security mar

66、kets that it services.He has more than 10 years of board level experience within AVA Risk Group,having previously served as a Director and Chairman of AVA Group prior to its IPO.Mike McGeeverNon-Executive Director (Appointed 8 August 2018)Mr McGeever has over 35 years experience in the military,faci

67、lities and securities sectors.Prior to his retirement in 2015,Mr McGeever was the Managing Director and founder of Transguard Group LLC,a UAE based security and facilities management company and one of the largest security companies in the world,employing 55,000 staff.Prior to that he held senior po

68、sitions in a range of security and facilities focussed companies.Mr McGeever has a Master of Business Administration from the University of Portsmouth(England).Mark StevensNon-Executive Director(Appointed 11 March 2015)With more than 30 years of experience in senior management roles with multi-natio

69、nal corporations,Mark is a seasoned executive with broad experience in sales and general management in the telecommunications and Information technology sector.Mark has held senior positions with Nortel Networks Inc.,Aircom International Limited,ECI Telecom Limited,Transmode Systems AB,and more rece

70、ntly Infinera Corporation.He has lived and worked in Europe,the United States,Singapore and Australia.Mark holds a Master of Business Administration from the University of Melbourne,a Bachelor of Engineering degree from Monash University and is a Graduate Member of the Australian Institute of Compan

71、y Directors.Malcolm MaginnisGroup Chief Executive Officer (Appointed 9 January 2023)Mal has more than 35 years of experience in the defence,security,safety and technology industries.Most recently,Mal served as President of Rapiscan Systems from July 2017 until September 2022 a US-headquartered globa

72、l manufacturer of security equipment and systems.Prior to joining Rapiscan,Mal was head of Iveagh Technology a technology development company based in Singapore and part owner of SX Technologies,a Sydney-based detection company.He was also President of Smiths Detection from 2011 to 2014.Mal is based

73、 in Singapore.Joint Company SecretariesNeville JoyceAppointed 3 November 2021Neville is a highly experienced financial and commercial executive with proven expertise across multiple sectors including energy,mining,technology and manufacturing.With extensive experience in leadership,management and st

74、rategic financial analysis,Neville has held senior finance positions at Origin and Energy Australia including roles as Chief Financial Officer and Divisional Head of Finance.Prior to joining AVA Group,Neville was Group Chief Financial Officer at Redflex Holdings Limited from 2017 to 2021.Neville is

75、a CPA and holds a Bachelor of Business.Kim LarkinAppointed 20 January 2017Kim is an experienced business professional with 24 years experience in the banking and finance industries and 7 years as a Company Secretary(in-house)of an ASX300 company.Her experience includes debt and capital raising,risk

76、management,mergers and acquisitions,compliance and governance.Kim currently acts as Company Secretary to various ASX listed and unlisted companies in Australia and is the Head of Corporate Services for Boardroom Pty Limiteds Queensland office.Directors MeetingsThe number of meetings of the board of

77、directors and of each board committee held during the financial year and the number of meetings attended by each director are:Board of Directors MeetingsMeetings of Audit&Risk Committee(ARC)Meetings of Remuneration&Nomination Committee(REM)Eligible to AttendAttendedEligible to AttendAttendedEligible

78、 to AttendAttendedD Cronin12124444M Stevens12124444M McGeever12124444M Maginnis1212-Committee Membership As at the date of this report,the company had an Audit&Risk Committee,and a Remuneration&Nomination Committee of the Board of Directors.Members acting on the committees of the Board during the ye

79、ar were:Audit CommitteeRemuneration&Nomination CommitteeM Stevens(Chairman)M McGeever(Chairman)D Cronin D Cronin M McGeeverM StevensGender Diversity PolicyThe Remuneration&Nomination Committee is responsible for setting the diversity policy of the Company.The Committee has established a diversity po

80、licy for the Company,which is disclosed on the Company website.Measurable objectives for achieving gender diversity have been set with the Company assessing annually both the objectives and the entitys progress in achieving them.The Company has set an objective to ensure that the representation of w

81、omen across the business is 25%.During the year ended 30 June 2024,women represented 26%of the business.Whilst AVA Group particularly focuses on narrowing the gap in gender representation across all levels,it strives for equal development opportunities for all employees,irrespective of gender,cultur

82、al,physical capabilities,or other differences.DIRECTORS REPORT|132024 ANNUAL REPORT AVA GROUP14|AVA GROUP ANNUAL REPORT 2023DIRECTORS REPORT Directors Interests in shares or optionsAs at the date of this report,the interests of the directors in the shares and performance rights of AVA Group are as d

83、etailed below:Number of ordinary sharesNumber of performance rightsD Cronin33,750,706-M Stevens1,721,181-M Mc Geever6,005,000-M Maginnis333,3332,102,482Principal ActivitiesThe principal activities of the Consolidated Entity during the financial year were:the provision of security technology products

84、 for perimeter intrusion detection solutions;the development,manufacture and supply of high quality,high security card and biometric readers,electromechanical locks and related electronic security products;and manufacture and supply of professional external security and intruder detection equipment

85、including ANPR cameras,lighting controllers and infrared and white-light LED Illuminators.Review of operationsDuring FY2024 Ava Risk Group has pursued its strategy to grow revenue from its market leading technologies by increasing market share and developing new and adjacent applications.The Company

86、 has achieved a number of significant milestones on the implementation of its strategy.In the Detect segment,the Company has continued to invest in its technology and commercial capability.Aura Ai-X is a market leading fibre optic sensing solution that has enormous versatility in its application.It

87、is rapidly becoming a solution of choice for diverse industries ranging from telecommunications,sovereign border detection and energy infrastructure protection.Product certifications for the Cobalt series locks were completed in the Access segment which enabled initial stocking orders from dormakaba

88、 under its global framework agreement.Total sales order intake for Access grew by 48%on the previous year underlining the importance of the framework agreement with dormakaba.Access is well placed to continue its growth trajectory in FY2025.A new wireless solution(“LoRa”)has been developed in the Il

89、luminate segment which enables the integration of up to 500 devices without the need for data cables to provide a unified control and security network.The LoRa product will be launched in the market in FY2025.The improved sophistication in our commercial capability is best demonstrated by the signif

90、icant agreements that the Company progressed during FY2024.Following extensive collaboration and product trials,Ava Risk Group signed a supply agreement with Telstra Group for the supply of its technology and services to Australias largest telecommunication provider and owner of Australias largest f

91、ibre optic network.This is an exciting opportunity for the Company to deploy its technology to an existing fibre network,transforming the sensing capability of the network.Ava Risk Group also entered an agreement with UGL Limited to deploy its fibre optic sensing technology on a major Sydney transpo

92、rtation project.Using the Companys market leading Aura Ai-X technology,Ava Risk Groups obligations on this project have been substantially delivered during FY2024.Our obligations included ensuring that Aura Ai-X received Safety Integrity Level 2 certification,a safety standard specific to railway co

93、ntrol and protection applications.This is a globally recognised certification that ensures Aura Ai-X can be deployed to further railway protection opportunities.Reflecting the strength of the opportunities before the Company,the Company undertook a successful equity raise during H2 FY2024.Ava Risk G

94、roup raised$4.3 million from an institutional placement of$3.0 million in March 2024 and$1.3 million from an oversubscribed Share Purchase Plan in May 2024.Funds raised have been used to support major contract delivery and ongoing technology development.Total sales order intake for the Company was$3

95、5.3 million,an increase of 14%on the previous year.This has resulted in revenue and other income of$30.2 million for FY2024,an increase of 6%on the previous year.The difference between sales order intake and revenue is reflected in growth in the sales order backlog to$8.5 million,including$2.0 milli

96、on in contracted ARR.Growing ARR remains a key element of Aura Ai-X market offering.Review of financial performanceA$mFY2023H1 FY2024H2 FY2024FY2024ChangeRevenue and other income28.614.216.030.21.6Underlying EBITDA*1.3(0.9)0.1(0.9)(2.1)Loss after tax(1.1)(2.3)(2.9)(5.2)(4.1)*Underlying EBITDA is pro

97、fit/(loss)after tax adjusted for depreciation and amortisation,impairment of goodwill,finance expense and foreign exchange movements per Consolidated Statement of Comprehensive Income.Revenue and Other Income of$30.2 million was$1.6 million higher than the previous year(FY2023:$28.6 million).Revenue

98、 grew in the second half compared to the first half(up by 13%)driven by improved performance in the Detect segment.Over the full year revenue growth was achieved in both Access(38%)and Illuminate(5%).Despite growth in sales order intake for Detect,revenue was slightly lower reflecting a subdued firs

99、t half and a number of open sales orders remaining in the sales order backlog pending fulfilment in FY2025.EBITDA loss prior to the impairment of goodwill of$0.9m is lower than for the prior year impacted by the significant investment in both commercial and technology capability.Significantly Underl

100、ying EBITDA was positive during the second half year driven by increased revenue and a stabilised cost base following completion of business restructure activity during H1 FY2024.An impairment charge of$1.5 million against goodwill in the Illuminate segment was recognised in FY2024.The charge is a r

101、esult of lower than previously forecast(within the Companys internal impairment testing model)performance during FY2024 for the segment which has resulted in a re-assessment of subsequent periods.In accordance with relevant accounting standards an adjustment to the carrying value of goodwill was rec

102、orded.Nonetheless the Company remains very confident in the future performance of the Illuminate segment,particularly its complimentary offering with Detect.Net loss for the period was$5.2 million(FY2023 was a net loss of$1.1 million)reflecting lower EBITDA and the impairment of goodwill.The Company

103、 had a cash balance at 30 June 2024 of$5.1 million.Significant changes in the state of affairsDuring the financial year the following events occurred:The Company undertook a successful equity raise of$4.3m via an institutional placement and Share Purchase Plan.An impairment charge of$1.5m against Go

104、odwill in the Illuminate segment was recognised in FY2024.The charge is the result of lower than previously forecast(within the companys internal impairment testing model)performance during FY2024 for the segment which has resulted in a re-assessment of subsequent periods.After balance date eventsNo

105、 matters of circumstances have arisen since the end of the financial year that have significantally affected or may significantally affect the operations of the Consolidated Entity,the results of those operations,or the state of affairs of the Consolidated Entity in future financial years.Risks Spec

106、ific to the businessIntellectual Property Theft and Cyber Security threatsThe Company has patents and trademarks protecting some of its intellectual property.Know-how contained in confidential documentation and software source code attributable to the intellectual property may be appropriated by a t

107、hird party to the detriment of the Company.To mitigate this risk the company imposes restrictions on coding controlled by passwords and firewalls.All network data is protected from loss by secure backup processes and remote secure storage.Staff are provided with regular updates on cyber security thr

108、eats and training.|152024 ANNUAL REPORT AVA GROUP16|AVA GROUP ANNUAL REPORT 2023Supply Chain disruption riskAva Risk Group sources a number of key technology components such as laser and optical devices,and some complete products that make up its total solution provided by third parties.The global s

109、upply of these components may experience disruption.To mitigate this risk the Company has identified its critical components and expected lead times.Where possible the Company has identified multiple suppliers of critical components.Coupled with detailed forecasts of expected demand,the Company uses

110、 this information to ensure its inventory levels are adequate to fulfil expected demand.Cancellation or delay of infrastructure projectsThe Companys growth is dependent in part on specifications by System Integrators as part of a tender for large construction and infrastructure projects.The cancella

111、tion or delay of an infrastructure project where Ava Risk Group has been specified as the system provider could have adverse implications on future revenue.To mitigate this risk the Company continues to develop a sales opportunity pipeline which contains both geographic and opportunity diversificati

112、on.CompetitionThere are some companies that sell security intrusion and access technologies.There are other large organisations that provide complex security solutions that have developed in house technologies that support security applications.Ava Risk Group expects to face competition from such or

113、ganisations,some of which may have greater financial,technical and marketing resources.Increased competition could result in margin reductions,reduced operating margins and loss of market share.To mitigate this risk Ava Risk Group continues to invest in its core technologies to ensure that it is mar

114、ket leading.Attract and retain skilled staffAva Risk Groups success will in part depend on its ability to hire and retain key staff.This risk is mitigated by the Company having appropriate incentive schemes and ensuring that the Companys remuneration policy remains consistent with market demands.Lik

115、ely developmentsLikely development of the operations of the Group are encompassed in the Operating and Financial Review section of this report.Environmental regulation and performanceThe Consolidated Entitys operations are not subject to any significant environmental Commonwealth or State regulation

116、s or laws.The Group has complied with all environmental regulations to which it is subject.Dividends recommended or declaredOn 26 October 2023 the following dividends were declared:2024$0002023$000Special dividend at the rate of 0.0017 cents per share,paid on 15 December 2023436-Share options grante

117、d to directors and executivesThere were no options over unissued ordinary shares granted by AVA Risk Group during or since the financial year end to directors and executives in office.Shares under optionThere are no unissued ordinary shares of AVA Risk Group under option at the date of this report.P

118、erformance Rights Shares(PSRs)During the year ended 30 June 2024,the following performance rights were issued to the Directors:Number of PSRs issuedMalcolm Maginnis2,935,815Neville Joyce377,454Jim Viscardi357,260Total3,670,529The performance rights were granted to Mal Maginnis as part of remuneratio

119、n time-based vesting conditions and share price hurdles.The performance rights were granted to Neville Joyce and Jim Viscardi as part of remuneration in two equal tranches,vesting on 31 August 2025 and 31 August 2026 with vesting conditions relating to continuity of employment and achievement of sha

120、re price hurdle.During the year ended 30 June 2024,the following performance rights were issued to Non-Executive KMP.Their performance criteria was however not met,and as a result they were not delivered.Grant dateNumber of PSRs issuedDavid Cronin26 Oct 2023200,000Mark Stevens26 Oct 2023200,000Mike

121、McGeever26 Oct 2023200,000Unissued ordinary shares of AVA Risk Group under performance rights at the date of this report are as follows:Date the Performance rights were grantedNumber of unissued ordinary shares under rightsExpiry date of the performance rights1/09/2021262,70231/08/202428/10/202122,6

122、7231/08/202431/01/20229,16031/08/20246/09/2022352,06631/08/20246/09/2022304,82331/08/20259/01/2023500,0009/01/20259/01/2023500,0009/01/20269/01/2023333,3339/01/20259/01/2023333,3339/01/202626/10/2023200,0007/10/202426/10/2023200,0007/10/202426/10/2023200,0007/10/202426/10/2023217,90831/08/202526/10/

123、2023217,90831/08/20266/09/2023634,39331/08/20256/09/2023634,39331/08/2026Total4,922,691No performance rights holder has any right under the performance rights to participate in any other share issue of the company.Proceedings on behalf of the Consolidated EntityNo person has been granted leave of Co

124、urt to bring proceedings against the Consolidated Entity.DIRECTORS REPORT|172024 ANNUAL REPORT AVA GROUP18|AVA GROUP ANNUAL REPORT 2023Indemnification and Insurance of Directors and OfficersAVA Risk Group maintains a Directors and Officers insurance policy that,subject to some exceptions provides in

125、surance cover to past,present and future directors and officers of the Consolidated Entity and its subsidiaries.The Company has paid$134,497 premium for the policy including stamp duty.In addition,under the Constitution of the Company,and to the extent permitted by law,each director of the Company i

126、s indemnified by the Company against liability incurred to another person(other than the Company or related body corporate)except where the liability arises out of conduct involving a lack of good faith.Accordingly,each director is indemnified against any liability for costs and expenses incurred by

127、 the director in defending proceedings,whether civil or criminal,in which judgement is given in favour of the director or in which the director is acquitted,or in connection with an application in relation to such proceedings in which a court grants relief to the officer under the Corporations Act 2

128、001.Indemnification and insurance of auditorsThe Company has not,during or since the end of the financial year,indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.During the financial year,the Company has not paid a premium

129、in respect of a contract to insure the auditor of the Company or any related entity.Rounding of amountsIn accordance with ASIC Corporations(Rounding in Financial/Directors Reports)Instrument 2016/191,the amounts in the directors report and in the financial report have been rounded to the nearest one

130、 thousand dollars,or in certain cases,to the nearest dollar(where indicated).REMUNERATION REPORT(AUDITED)The Directors present the Remuneration Report(the Report)for the Company and its controlled entities for the year ended 30 June 2024.This Report forms part of the Directors Report and has been au

131、dited in accordance with section 300A of the Corporations Act 2001.The table below lists the Executives of the Company whose remuneration details are outlined in this Remuneration Report.These Executives,together with the Directors,are defined as Key Management Personnel(KMP)under Australian Account

132、ing Standards.In this report Executive KMP(Executives)refers to the KMP other than the Non Executive Directors.Non Executive Directors have oversight of the strategic direction of the Company but have no direct involvement in the day to day management of the business.1.Details of key management pers

133、onnel(KMP)The table below lists the KMP of the Company whose remuneration details are outlined in this Remuneration Report.(i)Non-Executive DirectorsDavid Cronin Chairman(Non-Executive)appointed 31 August 2018 (Appointed as Non-Executive Director on 10 April 2018)Mark Stevens Non-Executive Director

134、appointed 11 March 2015Mike McGeever Non-Executive Director appointed 8 August 2018(ii)Executive Directors Malcolm Maginnis Group Chief Executive Officer(CEO)and Executive Director appointed on 9 January 2023.(iii)Other KMPs Neville Joyce Group Chief Financial Officer(CFO)and Company Secretary appoi

135、nted on 3 November 2021.James Viscardi Executive Vice President,Global Security appointed on 1 July 2022.2.Remuneration policiesThe board policy for determining the nature and amount of remuneration of key management personnel is based on the recommendations from the Remuneration and Nomination Comm

136、ittee.The Remuneration and Nomination Committee comprises three members of the Board of Directors.All members are Non-Executive Directors.The CEO participates in Board decisions relating to all KMPs,except for the CEOs which is also approved at the AGM.The Board or the Remuneration and Nomination Co

137、mmittee may engage external consultants to provide independent advice where it considers it appropriate to ensure that the Company attracts and retains talented and motivated directors and employees who can enhance Company performance through their contributions and leadership.During the year ended

138、30 June 2024 neither the Board nor the Remuneration and Nomination Committee engaged any external consultants.2.1 Non-Executive Director remuneration arrangementsThe remuneration of Non-Executive Directors(NEDs)consists of directors fees,which includes attendance at Committee meetings.NEDs do not re

139、ceive retirement benefits other than compulsory superannuation scheme contributions.Each NED,including the Chairman receives a base fee for being a director of the Company.As part of their remuneration NEDs may receive share options or performance rights in theCompany and are encouraged to hold shar

140、es in the Company.This is in line with the Companys overall remuneration philosophy and aligns NEDs with shareholder interests.The remuneration of NEDs for the year ended 30 June 2024 and 30 June 2023 is detailed on pages 21-22 respectively of this report.The Companys constitution and the ASX listin

141、g rules specify that the NED fee pool shall be determined from time to time by a general meeting.The Companys current aggregate fee pool is$250,000 per year.2.2 Executive remuneration arrangementsFor executives the Company provides a remuneration package that incorporates both cash-based remuneratio

142、n and share-based remuneration.The contracts for service between the Company and executives are on a continuing basis the terms of which are not expected to change in the immediate future.Share-based remuneration is conditional upon continuing employment and achievement of certain KPIs,thereby align

143、ing executive and shareholder interests.The table below represents the target remuneration mix for group executives in the current year.The incentives are provided at target levels.ExecutiveFixed remunerationAt Risk (Short-Term and Long-Term Incentives)CEO63%37%CFO67%33%EVP71%29%(a)Fixed remuneratio

144、nThe level of fixed remuneration is set so as to provide a base level of remuneration,and is reviewed annually by the Remuneration Committee to ensure that it is both appropriate to the position and is competitive in the market.Salary packages are subject to local regulatory labour laws.DIRECTORS RE

145、PORT|192024 ANNUAL REPORT AVA GROUP20|AVA GROUP ANNUAL REPORT 2023(b)Short-Term Incentive(STI)The objective of the STI program is to link the achievement of the Groups annual operational targets with the remuneration received by the executives charged with meeting those targets.The total potential S

146、TI available is set at a level that provides sufficient reward to the Executive KMP for exceeding the operational targets and at such a level that the cost to the Group is reasonable in the circumstances.Actual STI payments granted to each Executive KMP depend on the extent to which specific annual

147、operational targets set at the beginning of the financial year are met or exceeded.The CEOs targets are set by the Remuneration and Nomination Committee.The targets for all other executives are set by the CEO.STI rewards are assessed annually by the Remuneration and Nomination Committee and are usua

148、lly paid in cash and performance rights.Achievement against individual targets are assessed on an individual basis.Vesting conditions are decided upon on a case-by-case basis.FY 2024 STI Incentives and targetsA summary of the measures and weightings for FY 24 are set out in the table below:MeasureFY

149、 24 Target95%of target100%of targetDelivery methodGroup revenue and EBITDA Targets$45m10%delivered100%deliveredPaid in cash representing 50%of the incentive planEBITDA$7.1mLong-Term Incentive(LTI)Long-term incentives are provided to KMPs through the issuance of performance rights.The performance rig

150、hts are designed to provide long-term incentives for employees to deliver long-term shareholder returns.The performance rights are usually issued for nil or nominal consideration and are granted in accordance with the Companys Employee Equity Incentive Plan(EIP).Performance rights are issued for a s

151、pecified period and are convertible into ordinary shares.The Performance rights typically have zero exercise price.The performance rights expire on the earlier of their expiry date or three months after termination of the employees employment subject to Boards discretion.Performance rights do not ve

152、st until any vesting or performance criteria set at granting have been met in accordance with the terms and conditions of the EIP.There are no voting or dividend rights attached to performance rights.Voting rights will attach to the ordinary shares when the performance rights have been exercised.Unv

153、ested performance rights cannot be transferred and will not be quoted on the ASX.FY 2024 LTI Incentives and targetsA summary of the measures and weightings for FY 24 are set out in the table below:MeasureFY 24 TargetTargetDeliveryShare priceShare price in August 2024 will reach 0.32c per share100%ac

154、hievementPerformance Shares 50%deferred for one year and 50%deferred for two years3.Executive contractual arrangementsThe Company has entered into service agreements with the following key management personnel:Malcolm MaginnisGroup Chief Executive Officer(Appointed 9 January 2023)Contract of Employm

155、entMalcolm Maginnis is employed by BQT Solution SEA Pte Limited(based in Singapore)as a permanent,full-time employee.His current base salary is SGD$339,500(approx AUD$374,460)to be reviewed annually by the Remuneration Committee.He has a notice period of 3 months.Time Vested Performance Shares(PSRs)

156、The contract awards 1,000,000 PSRs that vest in three equal amounts being 12,24 and 36 months after commencement.Performance IncentivesThe contract provides for Incentive plans which are payable in half in cash and half in performance rights upon meeting pre-defined KPIs(as disclosed in Section 4)by

157、 the executive.Neville JoyceGroup Chief Financial Officer&Company SecretaryAppointed 3 November 2021Contract of EmploymentNeville Joyce is employed by AVA Risk Group as a permanent,full-time employee.Mr Joyce commenced his position with AVA Risk Group in November 2021 and is employed on a current ba

158、se salary of AUD$311,496,to be reviewed annually by the Remuneration Committee.Performance ConditionsThe contract provides for Incentive plans which are payable in half in cash and half in performance rights upon meeting pre-defined KPIs(as disclosed in Section 4)by the executive.James ViscardiExecu

159、tive Vice President Global SecurityContract of EmploymentJames Viscardi is employed by Future Fibre Technologies(US)Inc.as a permanent,full-time employee.Mr Viscardi commenced employment in August 2021 as Vice President-Americas.He was appointed on 1 July 2022 as Executive Vice President Global Secu

160、rity.His base salary is USD$252,000(approx.AUD$377,800),to be reviewed annually by the Remuneration Committee.Where applicable,commissions on sales are paid according to the sales target plan.Performance ConditionsThe contract provides for Incentive plans which are payable in half in cash and half i

161、n performance rights upon meeting pre-defined KPIs(as disclosed in Section 4)by the executive.DIRECTORS REPORT|212024 ANNUAL REPORT AVA GROUP22|AVA GROUP ANNUAL REPORT 2023Remuneration of Key Management Personnel The table below shows the realised remuneration the Groups KMPs have received during FY

162、2024 Salary and FeesShort-term Cash BonusOther benefits(1)Post employment benefit(2)Long Service LeaveShare-based Payment expense Total Performance Related$Non-Executive Directors David Cronin65,000-7,150-7,14779,2979%Mark Stevens65,000-7,150-7,14779,2979%Mike McGeever63,000-7,14772,14710%Sub-total

163、Non-Executive Directors193,000-14,300-21,441230,741Executive Directors and other KMPs Malcolm Maginnis371,843-26,2879,689-148,655556,47427%Neville Joyce308,625-25,87033,9495,49215,673389,6094%James Viscardi373,32615,43766,24511,110-7,417473,5355%Sub-total executive KMP1,053,79415,437118,40254,7485,4

164、92171,7451,419,618Totals1,248,79415,437118,40269,0485,492193,1861,650,3591 Other benefits include Health Insurance and Annual leave.2 Post-employment benefits include Pension and superannuation benefits.Remuneration of Key Management PersonnelThe table below shows the realised remuneration the Group

165、s KMPs have received during FY 2023Note Salary and FeesShort-term Cash BonusOther benefits(2)Post-employment benefits(3)Long Service LeaveShare-based Payment expense Total Performance Related$Non-Executive Directors David Cronin65,000-6,825-71,8250%Mark Stevens65,000-6,825-71,8250%Mike McGeever63,00

166、0-63,0000%Sub-total Non-Executive Directors193,000-13,650-206,650Executive Directors and other KMPs Malcolm Maginnis1176,858-12,7264,412-54,476248,47222%Neville Joyce300,00014,15721,37832,4584,99717,418390,4088%James Viscardi356,12375,89157,26011,667-5,849506,79016%Sub-total executive KMP832,98190,0

167、4891,36448,5374,99777,7431,145,670Totals1,025,98190,04891,36462,1874,99777,7431,352,3201 Appointed as Group Chief Executive Officer on 9 January 2023.2 Other benefits include Health Insurance and Annual leave.3 Post-employment benefits include Pension and superannuation benefits.DIRECTORS REPORT|232

168、024 ANNUAL REPORT AVA GROUP24|AVA GROUP ANNUAL REPORT 20234.Relationship between remuneration and Company Performance4.1 Principles of compensationThe board seeks to align the remuneration to align with the interest of the shareholders and drive performances against short and long-term business obje

169、ctives.4.2 Remuneration dependent on satisfaction of performance conditionA portion of the Executive Remuneration is based on attainment of performance conditions.Performance-based remuneration includes short-term cash bonuses(STIs)and Performance Share Rights(PSRs).Short-term Performance-based remu

170、neration granted to key management personnel has regard to Company performance over a 12-month period.The following table sets out the performance conditions used for performance-linked incentive payments.Performance MetricsFY 24 outcomeFinancialGroup CEORevenue TargetNot metEBITDA Target Not metGro

171、up CFORevenue TargetNot metEBITDA Target Not metEVP(Global)Revenue TargetNot metEBITDA Target Not metNon-FinancialGroup CEOShare price target unvested Group CFOShare price target unvested EVP(Global)Share price target unvested These performance conditions are selected to align the goals and incentiv

172、es of the KMP with the creation of shareholder wealth during the relevant period.Quantitative financial performance conditions are assessed against the Consolidated Entitys financial report for the year.Other performance conditions are assessed by the CEO,or in the case of the CEOs performance condi

173、tions,the Board giving consideration to outcomes achieved,external influences and a range of other qualitative factors.These assessments ensure clearly defined and objective assessment of financial and quantitative targets and promote fair and reasonable judgements in respect of qualitative performa

174、nce conditions.4.3 Impact of Companys performance on shareholder wealthThe following table summarises Company performance and key performance indicatorsFinancial Performance20242023202220212020EarningsRevenue and other income($000)30,21828,63718,96165,71446,640%increase/(decrease)in revenue6%51%-71%

175、41%47%Profit/(loss)before tax($000)(5,203)(1,054)33,13213,7494,947%increase/(decrease)in profit(loss)before tax394%-103%141%178%205%Shareholder valueShare price$-45%11%-53%145%3%Change in share price(%)(436)-31,5867,224-Dividends to shareholders($000)-7,566-Return of capital($000)-7,566-KMP remunera

176、tionTotal remuneration of KMPs$1,650,359$1,492,933$14,882,343$3,598,456$3,052,714Total performance-based remuneration$208,623$187,064$13,687,206$1,629,373$1,185,2895.Performance based rewards5.1 Cash bonus provided to Executive DirectorsThe following table sets out the terms and conditions of each g

177、rant of the performance-linked bonuses affecting compensation in current and future years.2024Maximum cash bonus$Amount awarded$%Achieved Malcolm Maginnis109,197-0%Neville Joyce75,000-0%James Viscardi68,968-0%DIRECTORS REPORT|252024 ANNUAL REPORT AVA GROUP26|AVA GROUP ANNUAL REPORT 2023None of the c

178、ash bonuses associated with these awards will be paid for FY24.5.2 Performance rights awarded to Executive DirectorsThe following table summarises the results of the performance rights awarded and allocated to Executive Directors during the year ended 30 June 2024.Number of performance rights awarde

179、dGrant dateFair value at Grant date$Vesting datesVesting conditionsNumber allocated based on vesting criteriaMalcolm Maginnis 1500,0009 Jan 20230.0079 Jan 2024Share price hurdle-500,0009 Jan 20230.0579 Jan 2025Share price hurdlen/a500,0009 Jan 20230.0739 Jan 2026Share price hurdlen/a333,3339 Jan 202

180、30.1879 Jan 2024Service based333,333333,3339 Jan 20230.1879 Jan 2025Service basedn/a333,3339 Jan 20230.1879 Jan 2026Service basedn/a217,90826 Oct 20230.04631 Aug 2025Share pricen/a217,90826 Oct 20230.04631 Aug 2026Share pricen/aNeville Joyce188,7276 Sep 20230.05431 Aug 2024Share pricen/a188,7276 Sep

181、 20230.05431 Aug 2025Share pricen/aJames Viscardi178,6306 Sep 20230.05431 Aug 2024Share pricen/a178,6306 Sep 20230.05431 Aug 2025Share pricen/a1 The performance rights for Mal Maginnis were approved at the AGM on 26 October 2023.5.3 Performance rights awarded to Non-executive DirectorsThe following

182、table summarises the performance rights awarded to Non-Executive Directors during the year ended 30 June 2024.Number of performance rights awardedGrant dateFair value at Grant date$Vesting datesVesting conditionsDavid Cronin200,00026 Oct 20230.0507 Oct 2024Share price hurdleMark Stevens200,00026 Oct

183、 20230.0507 Oct 2024Share price hurdleMike McGeever200,00026 Oct 20230.0507 Oct 2024Share price hurdle6.Key management personnels equity holdings6.1 Number of Shares held by key management personnel:Balance at beginning of PeriodOn exercise of rightsNet change,other 1Balance at End of Period1 July 2

184、023 30 June 2024Non-Executive DirectorsDavid Cronin33,519,937-230,76933,750,706Mark Stevens1,218,396-502,7851,721,181Mike McGeever6,005,000-6,005,000Sub-total40,743,333-733,55441,476,887ExecutivesMalcolm Maginnis10,000333,333(10,000)333,333Neville Joyce-9,160230,769239,929James Viscardi-Sub-total10,

185、000342,493220,769573,262Total40,753,333342,493954,32342,050,149 Balance at beginning of PeriodOn exercise of rightsNet change,otherBalance at End of Period1 July 2022 30 June 2023Non-Executive DirectorsDavid Cronin33,519,937-33,519,937Mark Stevens1,218,396-1,218,396Mike McGeever6,005,000-6,005,000Su

186、b-total40,743,333-40,743,333ExecutiveMalcolm Maginnis-10,00010,000Neville Joyce-James Viscardi-Sub-total-10,00010,000Total40,743,333-10,00040,753,3331 Net change,other relates to on-market share changesDIRECTORS REPORT|272024 ANNUAL REPORT AVA GROUP28|AVA GROUP ANNUAL REPORT 20236.2 Number of perfor

187、mance rights held by key management personnel Balance at beginning of PeriodGranted as remunerationExercisedForfeited/other changesBalance at end of yearFair value of rights granted during the year1 July 2023 30 June 2024$Non-Executive DirectorsDavid Cronin-200,000-200,00010,000Mark Stevens-200,000-

188、200,00010,000Mike McGeever-200,000-200,00010,000Sub-total NEDs-600,000-600,00030,000 Executive Directors Malcolm Maginnis-2,935,815(333,333)(500,000)2,102,482275,548Neville Joyce89,888377,454(9,160)(17,617)440,56520,382Jim Viscardi64,762357,260-(32,382)389,64019,292Sub-total executive KMP154,6503,67

189、0,529(342,493)(549,999)2,932,687315,222Totals154,6504,270,529(342,493)(549,999)3,532,687345,222 Balance at beginning of PeriodGranted as remuneration 3ExercisedForfeited/lapsedBalance at end of yearFair value of rights granted during the year1 July 2022 30 June 2023$Non-Executive DirectorsDavid Cron

190、in200,000-(200,000)-Mark Stevens200,000-(200,000)-Mike McGeever200,000-(200,000)-Sub-total NEDs600,000-(600,000)-Executive Directors Neville Joyce28,228308,300-(246,640)89,88863,656Neville Joyce-323,805-(259,043)64,76274,475Sub-total executive KMP28,228632,105-(505,683)154,650138,131Totals628,228632

191、,105-(1,105,683)154,650138,1317.Other transactions with key management personnelDuring the current and previous financial year,the Group transacted with related entities of directors,other than in their capacity as director as follows:The Consolidated Entity purchased consulting services from Pierce

192、 Asia Pty Ltd and Pierce Group Asia Pte Ltd,related entities through Chairman and Non-Executive Director,David Cronin,for an amount of$259,228(2023:$282,000).Accounts Payable balance at 30 June 2024 totals$nil(2023:$17,270).These arrangements were in the normal course of business and included amount

193、s related to the provision of consultancy and administration services,and general office expenses provided by the related entities for the benefit of the Consolidated Entity.During the year,there were no other transactions with directors or management personnel.This report is made in accordance with

194、 a resolution of directors,pursuant to section 298(2)(a)of the Corporations Act 2001.DIRECTORS REPORT|292024 ANNUAL REPORT AVA GROUP30|AVA GROUP ANNUAL REPORT 2023AUDITORS INDEPENDENCE DECLARATION Tel:+61 3 9603 1700 Fax:+61 3 9602 3870 .au Collins Square,Tower Four Level 18,727 Collins Street Melbo

195、urne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,an Australian company limited by guarantee.BDO Audit Pty Ltd and BDO Australia Ltd

196、are members of BDO International Ltd,a UK company limited by guarantee,and form part of the international BDO network of independent member firms.Liability limited by a scheme approved under Professional Standards Legislation.DECLARATION OF INDEPENDENCE BY WAI AW TO THE DIRECTORS OF AVA RISK GROUP L

197、IMITED As lead auditor of AVA Risk Group Limited for the year ended 30 June 2024,I declare that,to the best of my knowledge and belief,there have been:1.No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;and 2.No contraventions of any app

198、licable code of professional conduct in relation to the audit.This declaration is in respect of AVA Risk Group Limited and the entities it controlled during the period.Wai Aw Director BDO Audit Pty Ltd Melbourne,27 August 2024 32|AVA GROUP ANNUAL REPORT 2023Consolidated Statement of Profit or Loss a

199、nd Other Comprehensive Income ConsolidatedNoteJune 2024June 2023$000$000Revenue from contracts with customers4a30,14528,601Other income4b7336Total Revenue and other income30,21828,637Cost of raw materials and consumables used(12,096)(10,393)Employee benefit expenses(11,837)(10,487)Research and devel

200、opment(2,001)(1,767)Advertising and marketing(611)(620)Travel and entertainment(1,231)(923)Facilities and office costs(743)(695)Compliance,legal,and administration(1,375)(1,157)Impairment of goodwill13,14(1,545)-(Impairment)Reversal of impairment of receivables9(53)24Depreciation and amortisation ex

201、penses12,13,15(2,451)(2,068)Finance expense(240)(195)Foreign exchange(loss)gain(net)(111)156Other expenses(1,133)(1,356)Total expenses(35,427)(29,481)Loss before income tax(5,209)(844)Tax expense benefit(expense)56(210)(Loss)for the year(5,203)(1,054)ConsolidatedNoteJune 2024June 2023$000$000Items t

202、hat will not be reclassified subsequently to profit and lossExchange differences on translation of foreign operations(98)1,021Total other comprehensive(loss)income for the year(98)1,021Total comprehensive loss for the year(5,301)(33)Loss for the year attributable to:Equity holders of the parent comp

203、any(5,203)(1,054)Loss for the year to the equity holders of the Company relates to:Loss for the year,net of tax(5,203)(1,054)Total comprehensive income for the year attributable to:Equity holders of the parent company(5,301)(33)Earnings per share attributable to ordinary shareholders of AVA Risk Gro

204、upBasic(loss)per share20(1.98)(0.41)Diluted(loss)per share20(1.98)(0.41)The above Consolidated Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.|332024 ANNUAL REPORT AVA GROUP34|AVA GROUP ANNUAL REPORT 2023Consolidated Statement of Financial Pos

205、ition ConsolidatedNote20242023$000$000ASSETSCurrent AssetsCash and cash equivalents6,85,0845,517Trade and other receivables97,3608,388Contract assets91,651-Prepayments11738670Inventories106,5847,464Total Current Assets21,41722,039 Non-Current Assets Plant and equipment129421,114Intangible assets1312

206、,79813,584Right of use assets15854263Deferred tax assets54675Total Non-Current Assets14,64015,036TOTAL ASSETS36,05737,075 LIABILITIES Current Liabilities Trade and other payables162,9302,671Contract liabilities17394278Borrowings231,9521,999Lease Liabilities15326171Provisions181,2671,408Total Current

207、 Liabilities6,8696,527 ConsolidatedNote20242023$000$000Non-Current LiabilitiesProvisions189159Borrowings23203542Lease liabilities15540118Contract liabilities17405429Deferred tax liabilities5-146Total Non-Current Liabilities1,2391,294TOTAL LIABILITIES8,1087,821NET ASSETS27,94929,254 EQUITY Contribute

208、d Equity757,93253,831Accumulated losses(29,257)(23,618)Reserves(726)(959)TOTAL EQUITY27,94929,254The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.|352024 ANNUAL REPORT AVA GROUP36|AVA GROUP ANNUAL REPORT 2023Consolidated Statement of Ca

209、sh Flows ConsolidatedNote20242023$000$000Cash flow from operating activitiesReceipts from customers(inclusive of GST)29,83827,170Payments to suppliers and employees(inclusive of GST)(30,319)(28,628)Interest received2629Tax refund(paid)159(558)Finance costs(201)(175)Lease interest paid(38)(20)Net cas

210、h flows used in operating activities8(535)(2,182)Cash flow from investing activitiesPayment for intangible assets(2,373)(1,961)Payment for plant and equipment(355)(459)Purchase of business,net of cash acquired-(5,522)Net cash flows used in investing activities(2,728)(7,942)Cash flow from financing a

211、ctivitiesProceeds from share issue4,342-Share issue costs(241)(3)Repayment of borrowings(292)(915)Dividends paid21(436)(101)Payment of lease liabilities15(455)(325)Net cash flows from(used in)financing activities2,918(1,344)Net(decrease)in cash and cash equivalents(345)(11,468)Net foreign exchange d

212、ifferences on cash(74)129Cash and cash equivalents at beginning of period3,88715,226Cash and cash equivalents at end of the period63,4683,887The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.Consolidated Statement of Changes in EquityReservesSha

213、re CapitalShare based payment ReserveForeign Exchange Translation ReserveOther Equity ReservesAccumulated LossesTotal Equity$000$000$000$000$000$000At 1 July 202353,8312,05038(3,047)(23,618)29,254Loss for the year-(5,203)(5,203)Other comprehensive income/(loss)-(98)-(98)Total comprehensive loss for

214、the year-(98)-(5,203)(5,301)Transactions with owners in their capacity as owners Dividends/distributions-(436)(436)Shares issued4,342-4,342Share issue costs(241)-(241)Share-based payments-331-331Total transactions with owners in their capacity as owners4,101331-(436)3,996Balance at 30 June 202457,93

215、22,381(60)(3,047)(29,257)27,949At 1 July 202250,7931,749(983)(3,047)(22,564)25,948Losses for the year-(1,054)(1,054)Other comprehensive income-1,021-1,021Total comprehensive income for the year-1,021-(1,054)(33)Transactions with owners in their capacity as owners Shares issued as part of business co

216、mbination3,041-3,041Share issue costs(3)-(3)Share based payments-301-301Total transactions with owners in their capacity as owners3,038301-3,339Balance at 30 June 202353,8312,05038(3,047)(23,618)29,254The above Consolidated Statement of Changes in Equity should be read in conjunction with the accomp

217、anying notes.38|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Financial Statements1.1 Basis of preparation of the financial reportThis is a general purpose financial report which has been prepared by a for profit entity in accordance with the requirements of applicable Australian Accounting

218、Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)and the Corporations Act 2001.It covers AVA Risk Group Limited and controlled entities as a Consolidated Entity.AVA Risk Group Limited is a Company limited by shares,incorporated and domiciled in Australia whose s

219、hares are publicly traded on the Australian Securities Exchange.The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars($000)unless otherwise stated under the option available to the Company under ASIC Corporations(Rounding in Financial/Dire

220、ctors Reports)Instrument 2016/191.The Company is an entity to which this legislative instrument applies.The consolidated financial statements of AVA Risk Group Limited for the year ended 30 June 2024 were authorised for issue in accordance with a resolution of the directors on 27 August 2024.Complia

221、nce with IFRSThe consolidated financial statements of AVA Risk Group Limited also comply with the International Financial Reporting Standards(IFRS),issued by the International Accounting Standards Board(IASB).Historical Cost ConventionThe financial report has been prepared under the historical cost

222、convention.Significant Accounting EstimatesThe preparation of financial report requires the use of certain estimates and judgements in applying the Groups accounting policies.Those estimates and judgements significant to the financial report are disclosed in Note 1.5.1.2 Going ConcernThe financial r

223、eport has been prepared on a going concern basis which assumes the Group will continue its operations and have sufficient cash to pay its debts as and when they become payable for a period of at least 12 months from the date the financial report was authorised for issue.1.3 Principles of consolidati

224、onThe consolidated financial statements are those of the Consolidated Entity,comprising the financial statements of the parent entity and of all entities which the parent entity controls.The group controls an entity when it is exposed,or has rights,to variable returns from its involvement with the e

225、ntity and has the ability to affect those returns through its power over the entity.SubsidiariesThe financial statements of subsidiaries are prepared for the same reporting period as the parent entity,using consistent accounting policies.Adjustments are made to bring into line any dissimilar account

226、ing policies,which may exist.Parent entity informationIn accordance with the Corporations Act 2001,these financial statements present the results of the consolidated entity only.Supplementary information about the parent entity is disclosed in note 27.1.4 Summary of material accounting policiesThe f

227、ollowing is a summary of material accounting policies adopted by the Consolidated Entity in the preparation and presentation of the financial report.The accounting policies have been consistently applied,unless otherwise stated.a)RevenueThe Group has three segments with the following main revenue st

228、reams:DetectDesign and manufacture of fibre optic intrusion detection systems.AccessDesign and manufacture of electro-mechanical locks,biometrics and access control cards,card readers and biometric terminals.IlluminateDesign and manufacture of camera illuminators,ANPR cameras and laser perimeter det

229、ectors.Sale of GoodsAccess and Illuminate ProductThe Groups contracts with customers for the sale of equipment is one performance obligation.Revenue from sale of equipment is recognised at the point in time when control of the equipment is transferred to the customer,which is on dispatch or on deliv

230、ery,dependent on the delivery terms.Detect ProductContracts have multiple elements,such as hardware,software and rendered services.When there is more than one performance obligation in the contract,revenue is allocated to each performance obligation on the basis of relative standalone selling prices

231、.Revenue from the sale of the equipment and software is recognised at a point in time,on dispatch or upon delivery.Warranty provisionsThe Group generally provides warranties for general repairs of defects that existed at the time of sale,as required by law.As such,most warranties are assurance-type

232、warranties,which the Group accounts for under AASB 137 Provisions,Contingent Liabilities and Contingent Assets.However,in some contracts,the Group provides extended warranties.These warranties are service-type warranties and,therefore,are accounted for as a separate performance obligation to which t

233、he Group allocates a portion of the revenue based on the relative standalone selling price.Revenue is subsequently recognised over time based on the time elapsed.Rendering of servicesDetect DivisionThe Groups Detect division provides installation services.These services are sold either separately or

234、 bundled together with the sale of equipment to a customer.The installation services can be obtained from other providers and do not significantly customise or modify the Perimeter security product.There are two performance obligations in a contract for bundled sales of equipment and installation se

235、rvices,because the Group promises to transfer equipment and provide installation services are capable of being distinct and separately identifiable.Revenue from the provision of services is recognised over the period of time the work is performed.Contract balancesThe timing of revenue recognition ma

236、y differ from the contract payment schedule,resulting in revenue that has been earned but not billed.These amounts are included in contract assets.Amounts billed in accordance with contracts with customers,but not yet earned,are recorded as contract liabilities.Contract liabilities are recognised as

237、 revenue when the Group performs under the contract.b)Impairment of non-financial assetsThe Group assesses,at each reporting date,whether there is an indication that an asset may be impaired.If any indication exists,or when annual impairment testing for an asset is required,the Group estimates the a

238、ssets recoverable amount.Recoverable amount is determined for an individual asset,unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.If this is the case,recoverable amount is determined for the cash-generating unit to which the

239、 asset belongs.An assets recoverable amount is the higher of an assets or the cash generating units(CGU)fair value less costs of disposal and its value in use.In assessing value in use,the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects c

240、urrent market assessments of the time value of money and the risks specific to the asset.In determining fair value less costs of disposal,recent market transactions are taken into account.If no such transactions can be identified,an appropriate valuation model is used.These calculations are corrobor

241、ated by valuation multiples,quoted share prices for publicly traded companies or other available fair value indicators.|392024 ANNUAL REPORT AVA GROUP40|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Financial Statements The Group bases its impairment calculation on detailed budgets and forec

242、ast calculations,which are prepared separately for each of the Groups CGUs to which the individual assets are allocated.These budgets and forecast calculations generally cover a period of five years.A long-term growth rate is calculated and applied to project future cash flows after the fifth year.I

243、mpairment losses of continuing operations are recognised in the profit or loss in expense categories consistent with the function of the impaired asset.For assets excluding goodwill,an assessment is made at each reporting date to determine whether there is an indication that previously recognised im

244、pairment losses no longer exist or have decreased.If such indication exists,the Group estimates the assets or CGUs recoverable amount.A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last

245、impairment loss was recognised.The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount,nor exceed the carrying amount that would have been determined,net of depreciation,had no impairment loss been recognised for the asset in prior years.Such reversal

246、is recognised in the profit or loss.Goodwill is tested for impairment annually as at 30 June and when circumstances indicate that the carrying value may be impaired.Impairment is determined for goodwill by assessing the recoverable amount of each CGU(or group of CGUs)to which the goodwill relates.Wh

247、en the recoverable amount of the CGU is less than its carrying amount,an impairment loss is recognised.Impairment losses relating to goodwill cannot be reversed in future periods.Intangible assets with indefinite useful lives are tested for impairment annually as at 30 June at the CGU level,as appro

248、priate,and when circumstances indicate that the carrying value may be impaired.c)InventoriesInventories are valued at the lower of average cost and net realisable value.The cost of manufactured products includes direct material,direct labour and a proportion of manufacturing overheads based on norma

249、l operating capacities.Net realisable value is the estimated selling price in the ordinary course of business,less the estimated costs of completion and the estimated costs necessary to make the sale.d)Plant and equipmentPlant and equipment is stated at historical cost less accumulated depreciation

250、and any accumulated impairment losses.Depreciation is calculated on a straight line or diminishing balance basis over the estimated useful life of the specific assets as follows:Plant and EquipmentYearsOffice furniture and equipment2-10Motor vehicles5Computer equipment2-5Production plant and equipme

251、nt2-10Demonstration equipment2-5e)LeasesThe Group assesses at contract inception whether a contract is,or contains,a lease.That is,if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.Group as a lessee The Group applies a sing

252、le recognition and measurement approach for all leases,except for short-term leases and leases of low-value assets.The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.Right-of-use-assets The Group recognises right-

253、of-use assets at the commencement date of the lease(i.e.,the date the underlying asset is available for use).Right-of-use assets are measured at cost,less any accumulated depreciation and impairment losses,and adjusted for any remeasurement of lease liabilities.The cost of right-of-use assets includ

254、es the amount of lease liabilities recognised,initial direct costs incurred,and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of

255、the assets,as follows:Right-of-use-assetsYearsOffice space and machinery3-5Motor vehicles3-5If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,depreciation is calculated using the estimated useful life of the as

256、set.The right-of-use assets are also subject to impairment.Refer to the accounting policies in section Impairment of non-financial assets.Lease LiabilitiesAt the commencement date of the lease,the Group recognises lease liabilities measured at the present value of lease payments to be made over the

257、lease term.The lease payments include fixed payments(including in-substance fixed payments)less any lease incentives receivable,variable lease payments that depend on an index or a rate,and amounts expected to be paid under residual value guarantees.The lease payments also include the exercise price

258、 of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease,if the lease term reflects the Group exercising the option to terminate.Variable lease payments that do not depend on an index or a rate are recognised as expenses(unless they ar

259、e incurred to produce inventories)in the period in which the event or condition that triggers the payment occurs.In calculating the present value of lease payments,the Group uses the lessees incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is

260、not readily determinable.After the commencement date,the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.In addition,the carrying amount of lease liabilities is remeasured if there is a modification,a change in the lease term,a ch

261、ange in the lease payments(e.g.,changes to future payments resulting from a change in an index or rate used to determine such lease payments)or a change in the assessment of an option to purchase the underlying asset.The Groups lease liabilities are included in Lease liabilities in the Statement of

262、financial position(see Note 15).Short-term leases and leases of low-value assetsThe Group applies the short-term lease recognition exemption to its short-term leases(i.e.,those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).It also

263、 applies the lease of low-value assets recognition exemption to leases that are considered to be low value.Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.f)Intangibles Trademarks and LicencesTrademarks and Lic

264、ences are recognised at cost of acquisition.Trademarks and Licences have a finite life and are amortised on a systematic basis,matched to the future economic benefits over the life of the asset,less any impairment losses.|412024 ANNUAL REPORT AVA GROUP42|AVA GROUP ANNUAL REPORT 2023Notes to the Cons

265、olidated Financial Statements Research and DevelopmentExpenditure on research activities is recognised as an expense when incurred;Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate:The technical feasibility of completing the intang

266、ible asset so that the asset will be available for use or Its intention to complete and its ability and intention to use or sell the asset How the asset will generate future economic benefits The availability of resources to complete the asset The ability to measure reliably the expenditure during d

267、evelopmentCapitalised development expenditure is stated at cost less accumulated amortisation and accumulated impairment losses.Amortisation is calculated using a straight-line method to allocate the cost of the intangible assets over their estimated useful lives.Amortisation commences when the inta

268、ngible asset is available for use between 5 and 10 years depending on the product type.During the period of development,the asset is tested for impairment annually.PatentsPatents are initially recognised at the cost on acquisition.Patents have a finite life and are amortised on a systematic basis ma

269、tched to the future economic benefits over the life of the asset,less any impairment losses.Amortisation of the patents commences on approval of the patent and is matched to the timing of economic benefits flowing to the Company from the application of the technology.Patents are reviewed for impairm

270、ent at the end of the financial year and more frequently when an indication of impairment exists.Any impairment charge is recorded separately.Patents are amortised over a period of 3-10 years.Gains or losses arising from de-recognition of an intangible asset are measured as the difference between th

271、e net disposal proceeds and the carrying amount of the asset and are recognised in the statement of other comprehensive income when the asset is derecognised.g)Provisions and employee benefitsProvisions are recognised when the Group has a present obligation(legal or constructive)as a result of a pas

272、t event,it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.When the Group expects some or all of a provision to be reimbursed,for example under an insurance contract,the

273、 reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.If the effect of the time value of money is material,provisions are discounted us

274、ing a current pre-tax rate that reflects the risks specific to the liability.Warranty ProvisionsProvision is made for the estimated liability on all products and services still under warranty at balance date.This provision is estimated having regard to prior service warranty experience.In calculatin

275、g the liability at balance date,amounts were not discounted to their present value as the effect of discounting was not material.In determining the level of provision required for warranties,the Group has made judgments in respect of the expected performance and the costs of fulfilling the warranty.

276、Historical experience and current knowledge have been used in determining this provision.The initial estimate of warranty-related costs is revised annually.Employee Entitlementsi.Wages,salaries,annual leave,long service leave and personal leave expected to be settled within 12 monthsLiabilities for

277、wages and salaries,including non-monetary benefits,annual leave and any other employee benefits expected to be settled within 12 months of the reporting date are recognised in respect of employees services up to the reporting date.They are measured at the amounts expected to be paid when the liabili

278、ties are settled.Expenses for non-accumulating personal leave are recognised when the leave is taken and are measured at the rates paid or payable.ii.Long service leave and annual leave expected to be settled after 12 monthsThe liability for long service leave and annual leave expected to be settled

279、 after 12 months is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method.Consideration is given to expected future wage and salary levels,experience of employee

280、 departures,and periods of service.Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match,as closely as possible,the estimated future cash outflows.h)Share-based payment transactionsEquity set

281、tled transactionsThe Group provides benefits to its employees(including senior executives)in the form of share-based payments,whereby employees render services in exchange for share options or performance rights(equity-settled transactions).The cost of these equity-settled transactions with employee

282、s is measured by reference to the fair value of the equity instruments at the date at which they are granted.The fair value is determined by using the Monte Carlo or Binomial valuation model.In valuing equity-settled transactions,no account is taken of any vesting conditions,other than conditions li

283、nked to the price of the shares of AVA Risk Group Limited(market conditions)if applicable.The cost of equity-settled transactions is recognised,together with a corresponding increase in equity,over the period in which the performance and/or service conditions are fulfilled(the vesting period),ending

284、 on the date on which the relevant employees become fully entitled to the award(the vesting date).At each subsequent reporting date until vesting,the cumulative charge to the statement of comprehensive income is the product of:(i)the grant date fair value of the award;(ii)the current best estimate o

285、f the number of awards that will vest,taking into account such factors as the likelihood of employee turnover during the vesting period and the likelihood of non-market performance conditions being met;and(iii)the expired portion of the vesting period.The charge to the statement of comprehensive inc

286、ome for the period is the cumulative amount as calculated above less the amounts already charged in previous periods.There is a corresponding entry to equity.Until an award has vested,any amounts recorded are contingent and will be adjusted if more or fewer awards vest than were originally anticipat

287、ed to do so.Any award subject to a market condition is considered to vest irrespective of whether or not that market condition is fulfilled,provided that all other conditions are satisfied.No expense is recognised for awards that do not ultimately vest,except for awards where vesting is conditional

288、upon a market condition.If the terms of an equity-settled award are modified,as a minimum an expense is recognised as if the terms had not been modified.An additional expense is recognised for any modification that increases the total fair value of the share-based payment arrangement,or is otherwise

289、 beneficial to the employee,as measured at the date of modification.If an equity-settled award is cancelled,it is treated as if it had vested on the date of cancellation,and any expense not yet recognised for the award is recognised immediately.However,if a new award is substituted for the cancelled

290、 award and designated as a replacement award on the date that it is granted,the cancelled and new award are treated as if they were a modification of the original award,as described in the previous paragraph.|432024 ANNUAL REPORT AVA GROUP44|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Fina

291、ncial Statements i)Parent entity financial informationThe financial information for the parent entity,AVA Risk Group Limited,has been prepared on the same basis as the consolidated financial statements,except Investments in subsidiaries.They are accounted for at cost less impairment charge in the fi

292、nancial statements of AVA Risk Group Limited.Dividends received are recognised in the parent entitys profit or loss.j)ComparativesWhere necessary,comparative information has been reclassified and repositioned for consistency with current year disclosures.1.5.Significant accounting judgements,estimat

293、es and assumptionsEstimates and judgements are continually evaluated and are based on historical experience and other factors,including expectations of future events that may have a material impact on the entity and that are believed to be reasonable under the circumstances.a)Critical accounting est

294、imates and assumptionsThe Group makes estimates and assumptions concerning the future.The resulting accounting estimates will,by definition,seldom equal the related actual results.The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of a

295、ssets and liabilities within the next financial year are discussed below.i)Impairment of tangible and intangible assetsThe Group determines whether tangible and intangible assets are impaired at least on an annual basis by evaluating whether indicators of impairment exist in relation to the continue

296、d use of the asset by the Consolidated Entity.Goodwill is tested for impairment on at least an annual basis.Impairment triggers include declining product or manufacturing performance,technology changes,adverse changes in the economic or political environment or future product expectations.If an indi

297、cator of impairment exists,the Group estimates the assets recoverable amount.An assets recoverable amount is the higher of an assets fair value less costs of disposal and its value in use(“VIU”).The recoverable amount is determined for an individual asset,unless the asset does not generate cash infl

298、ows that are largely independent of those from other assets or groups of assets.When the carrying amount of an asset exceeds its recoverable amount,the asset is considered impaired and is written down to its recoverable amount.Refer to note 14 for further details.ii)Allowance for expected credit los

299、sesThe Group considers customers ability to pay including timing and the amount of payment.In considering ability to pay consideration is given to macro-economic,and industry specific conditions,as well as any information known about specific customer risks and judgement is exercised.iii)Share-based

300、 payment transactionsThe Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted.The fair value is determined using a Black-Scholes or binomial valuation model,with the assumptions detailed i

301、n Note 19.iv)Capitalisation of Development CostsJudgement is required using the criteria outlined in note 1.4(f),where expenditure meets the definition of development.The Group capitalises costs for development projects.Initial capitalisation of costs is based on managements judgement that technolog

302、ical and economic feasibility is confirmed when the development project has reached a defined milestone according to an established project management model.In determining the amounts to be capitalised,management makes assumptions regarding the expected future cash generation of the project and the

303、expected period of benefits.Capitalised development costs have a finite life and are amortised on a systematic basis over the expected life of the asset and cease at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognised.Costs capitalised in

304、clude direct payroll and payroll related costs of employees time spent on the development projects.v)Leased assets and liabilitiesThe Group determines the lease term as the non-cancellable term of the lease,together with any periods covered by an option to extend the lease if it is reasonably certai

305、n to be exercised,or any periods covered by an option to terminate the lease,if it is reasonably certain not to be exercised.The Group has some lease contracts that include extension and termination options.The Group applies judgement in evaluating whether it is reasonably certain whether or not to

306、exercise the option to renew or terminate the lease.That is,it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination.After the commencement date,the Group reassesses the lease term if there is a significant event or change in circumstan

307、ces that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate(e.g.construction of significant leasehold improvements or significant customisation to the leased asset).The Group included the renewal period as part of the lease term for some

308、office leases with shorter non-cancellable period(i.e.,three to five years).Furthermore,the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.Refer to Note 15 for information on potential future rental payments rel

309、ating to periods following the exercise date of extension and termination options that are not included in the lease term.vi)Leases-Estimating the incremental borrowing rateThe Group cannot readily determine the interest rate implicit in the lease,therefore,it uses its incremental borrowing rate(IBR

310、)to measure lease liabilities.The IBR is the rate of interest that the lessee would have to pay to borrow over a similar term,and with a similar security,the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.The IBR therefore reflects w

311、hat the lessee would have to pay,which requires estimation when no observable rates are available(such as for subsidiaries that do not enter into financing transactions)or when they need to be adjusted to reflect the terms and conditions of the lease.The Group estimates the IBR using observable inpu

312、ts(such as market interest rates)when available and is required to make certain entity-specific estimates(such as the subsidiarys stand-alone credit rating).vii)Inventory-estimating impairment of inventoryThe provision for impairment of inventories assessment requires a degree of estimation and judg

313、ement.The level of the provision is assessed by taking into account recent sales,the age of inventories,obsolete,slow moving inventories and other factors that affect inventory obsolescence.|452024 ANNUAL REPORT AVA GROUP46|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Financial Statements 2

314、.New and amended standardsThe Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)that are mandatory for the current reporting period.Any new or amended Accounting Standards or Interpretations that are not yet

315、mandatory have not been early adopted,and its impact has not yet been assessed.3.Segment information(a)Description of segmentsOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.The chief operating decision maker,who is re

316、sponsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of AVA Risk Group Limited.The Groups segments were based on three separately identifiable products.The Group operates in Detect,Access,and Illuminate,which are its rep

317、ortable segments.These divisions offer different products and services and are managed separately because they require different technology and marketing strategies.The following summary describes the operations of each reportable segment:DetectManufactures and markets smart fibre optic sensing syst

318、ems for security and condition monitoring for a range of applications including perimeters,pipelines,AccessSpecialises in the development,manufacture and supply of high security biometric readers,security access control and electronic locking products.IlluminateSpecialises in the development and man

319、ufacture of illuminators,ANPR cameras and perimeter detectors.(b)Reportable Segments 30 June 2024DetectAccessIlluminateEliminationsConsolidated$000$000$000$000$000Revenue and other incomeExternal customers18,1465,5076,492-30,145Intersegment revenue146-56(202)-Other income13430-47Interest Income1412-

320、26Segment revenue and other income18,3195,5236,578(202)30,218 EBITDA(60)(217)(2,349)82(2,544)Reconciliation to Segment operating lossDepreciation and amortisation(1,337)(727)(387)-(2,451)Finance costs(16)(7)(217)-(240)Interest Income1412-26Income tax(70)(55)131-6Segment operating loss(1,469)(994)(2,

321、822)82(5,203)Total assets34,18212,0684,738(14,690)36,057Total liabilities4,2536233,473-8,108Capital expenditure1,872610246-2,728The segment operating loss for Illuminate Segment includes impairment loss recognised during the financial year.Refer to Note 14 for further details.|472024 ANNUAL REPORT A

322、VA GROUP48|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Financial Statements(b)Reportable segments(continued)30 June 2023DetectAccessIlluminateEliminationsConsolidated$000$000$000$000$000Revenue and other incomeExternal customers18,4573,8536,291-28,601Intersegment revenue(28)117-(89)-Other

323、income1019-29Interest Income25-7Segment revenue and other income18,4413,9946,291(89)28,637EBITDA1,603(242)3471,411Reconciliation to Segment operating profit(loss)Depreciation and amortisation(1,135)(607)(326)-(2,068)Finance costs(11)(3)(181)-(195)Interest Income25-7Income tax(30)(204)25-(209)Segment

324、 operating loss429(1,051)(479)47(1,054)Total assets32,89810,4036,602(12,828)37,075Total liabilities3,8884773,2532037,821Capital expenditure1,937350116-2,403c)Geographic information Consolidated20242023$000$000RevenueAustralia6,3333,083APAC(excl Australia)2,8053,066Europe9,30412,532India1,190210Middl

325、e East and North Africa880667United States of America7,7425,932Rest of world1,8913,111Total external revenue by region30,14528,601d)Non-current operating assets30 June 202430 June 2023$000$000Australia7,0406,590United Kingdom6,6677,698Rest of world887673Total non-current assets by region14,59414,961

326、Non-current assets for this purpose consist of property,plant and equipment,right-of-use assets,and intangible assets.e)Reconciliation of non-current assets30 June 202430 June 2023$000$000Non-current operating assets by region14,59414,961Deferred tax assets4675Total non-current assets14,64015,036|49

327、2024 ANNUAL REPORT AVA GROUP50|AVA GROUP ANNUAL REPORT 2023Notes to the Consolidated Financial Statements 4.Revenue and other incomea)Revenue from contracts with customers Consolidated20242023$000$000Revenue from sales of goods27,66526,132Revenue from provision of services2,4802,469Total revenue fro

328、m contracts with customers30,14528,601(b)Other incomeInterest2629Other477Total other income7336Total Revenues and other income30,21828,637(c)Disaggregation of revenueTiming of revenue recognitionGoods transferred at a point in time27,66526,132Services transferred over time2,4802,469Total revenue fro

329、m contracts with customers30,14528,601(d)Performance obligationsThe Group holds contract liabilities in relation to services including extended warranty,support,commisioning and training which have been invoiced in advance with the services yet to be provided.Refer to note 17.5.Income tax and deferr

330、ed tax Consolidated20242023$000$000(a)Components of tax expense/(benefit):Current tax(55)47Deferred tax2937Under provision in prior year20126(6)210(b)Prima facie tax payableThe prima facie tax payable on profit/(loss)before income tax is reconciled to the income tax expense(benefit)as follows:Accoun

331、ting loss before tax(5,209)(844)At the Groups statutory income tax rate of 25.0%(1,302)(211)Difference in tax rates in foreign subsidiaries2429Tax effect of amounts which are not deductible in calculating taxable income 1479231Unbooked tax losses851147Adjustments in respect of current income tax of

332、previous(20)126Utilisation of carried forward tax losses/unbooked tax losses(92)(303)Other54191Income tax(6)2101 Non-deductible amounts for FY 2024 include the impairment charge for the Illuminate segment.Refer to note 14.Consolidated20242023$000$000(c)Deferred taxDeferred tax relates to the followi

333、ng:Losses available for offsetting against future taxable income-15Accelerated depreciation for tax purposes-(161)Temporary differences4675Net Deferred tax Assets(liabilities)46(71)Management assessed deferred tax assets and liabilities for the reporting period 30 June 2024 and their recoverability based on the forecasted taxable profits.Tax losses in Australia can be carried forward indefinitely