Integrated Media Technology Ltd 6-K, filed Sep 27, 2022
Integrated Media Technology Ltd (IMTE)
About this 6-K
Integrated Media Technology Ltd filed this 6-K on September 27, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
Dated September 27, 2022
Commission File Number 001-38018
Integrated Media Technology Limited
(Exact Name as Specified in its Charter)
N/A
(Translation of Registrant’s Name)
Level 7, 420 King William Street
Adelaide SA 5000
Australia
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7): ☐
OTHER EVENTS
INTRODUCTION TO THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
The unaudited pro forma financial information in Exhibit 99.1 was prepared in conformity with Article 11 of Regulation S-X. The unaudited pro forma consolidated financial information of Integrated Media Technology Limited’s (“IMTE” or “Company”) give effect to the deemed disposal of Greifenberg Digital Limited and its subsidiaries, the disposal of eGlass Technologies Ltd and its subsidiaries and the disposal of Grand Dynasty Limited and its subsidiary. (collectively “Dispositions”).
The description of the Dispositions is as follows:
| 1. | Deemed Disposal of Greifenberg Digital Limited and its subsidiaries (“Greifenberg”) |
On February 15, 2022, IMTE shareholding in the equity of Greifenberg was reduced from 40.75% to 23.96% as a result of investors subscripting for shares in Greifenberg (“Greifenberg Deemed Disposal”). Greifenberg is engaged in analytic financial research services.
IMTE’s unaudited pro forma consolidated financial information giving effect to the Greifenberg Deemed Disposal and related transactions is attached as Exhibit 99.1.
| 2. | Disposal of eGlass Technologies Ltd and its subsidiary (“eGlass”) |
As reported under cover of Form 6-K on July 12, 2022, IMTE entered into the Sales and Purchase Agreement (“SP Agreement”) with Capital Stone Holdings Limited (“Purchaser”), pursuant to which the Company agreed to sell to the Purchaser 100% of its equity interest in eGlass Technologies Ltd (“eGlass”), a wholly-owned subsidiary of the Company that held all the assets of our switchable glass business in China (the “eGlass Disposal”) for US$6.8 million (“Consideration”).
The Purchaser agreed to pay the Consideration by issuing to IMTE a debt instrument (“Loan”), which bears interests of 5% per annum, is repayable in 2 years and is secured against the shares of eGlass.
The Purchaser has indicated an intention to list eGlass on the Australia Securities Exchange (“ASX”) by July 2024. Pursuant to the SP Agreement, the Purchaser has the right to pay the Loan by giving IMTE the number of shares in eGlass calculated by dividing the amount of outstanding loan by 10% discount to the then 5 day volume weighted average closing price (“VWAP”); provided that such price may not be greater than the 120% of the IPO Price. Alternatively, the Company has the right to have the Purchaser repay the Loan by transferring to IMTE the number of shares in eGlass calculated by dividing the amount of outstanding loan by the IPO Price. Any outstanding loan amount that could not be fully repaid by the eGlass shares would be settled by cash.
This eGlass Disposal was completed in September 2022 and as a result IMTE no longer has any operation in China and very little operation in Hong Kong where it will focus on transferring/disposing all of its operation out Hong Kong before the end of the year.
The IMTE’s unaudited pro forma consolidated financial information giving effect to the Disposal and related transactions is attached as Exhibit 99.1.
| 3. | Disposal of Grand Dynasty Limited and its subsidiary (“Grand Dynasty”) |
On July 25, 2022, IMTE entered into a sales and purchase agreement with an independent third party to sell 100% of its interest in Grand Dynasty (the “GD Disposal”) for consideration of HK$1.00 or US$0.13.
Grand Dynasty and its subsidiary have no assets and have not commenced any operation since their inception in 2021.
IMTE’s unaudited pro forma consolidated financial information giving effect to the GD Disposal and related transactions is attached as Exhibit 99.1.
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: September 27, 2022
| Integrated Media Technology Limited | ||
| By: | /s/ Xiaodong Zhang | |
| Name: | Xiaodong Zhang | |
| Title: | Chief Executive Officer | |
2
EXHIBIT INDEX
| Exhibit | Description of Exhibit | |
| 99.1 | Unaudited pro forma consolidated financial information |
3
Exhibit 99.1
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
Basis of Presentation
The following unaudited pro forma consolidated financial statements were derived from the historical financial statements of Integrated Media Technology Limited (“IMTE”) as at and for the year ended December 31, 2021 which were prepared in accordance with International Financial Reporting Standards as adopted by the International Accounting Standards Board.
The unaudited pro forma consolidated financial statements for the year ended December 31, 2021 assumes the following disposals had occurred on January 1, 2021:
| (i) | 100% equity interests in eGlass Technologies Ltd and its subsidiaries (“eGlass”); | |
| (ii) | 100% equity interests in Grand Dynasty Limited and its subsidiary (“Grand Dynasty”); and | |
| (iii) | the deemed disposal of the Company’s equity interest due to a decrease from 40.75% to 23.96%, in Greifenberg Digital Limited and its subsidiaries (“Greifenberg”) (collectively the “Dispositions”). |
The unaudited pro forma consolidated financial statements are provided for illustrative purposes only and do not reflect what IMTE’s results of operations or financial position would have been had the Dispositions been completed on the dates assumed and are not necessarily indicative of IMTE’s future results of operations or financial position.
The following unaudited pro forma consolidated financial statements and the accompanying notes to the unaudited pro forma consolidated financial statements should be read in conjunction with the historical consolidated financial statements of IMTE on Form 20 filed with the SEC on April 28, 2022.
INTEGRATED MEDIA TECHNOLOGY LIMITED
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2021
| IMTE | Greifenberg | eGlass | Grand Dynasty | Note | Pro forma adjustments | Unaudited Pro Forma |
||||||||||||||||||||||
| A$ | A$ | A$ | A$ | A$ | A$ | |||||||||||||||||||||||
| (Note 1) | (Note 2) | (Note 3) | (Note 4) | |||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||||||||||
| Cash and bank balances | 274,767 | (148,672 | ) | (123,948 | ) | - | 1 | 2,148 | ||||||||||||||||||||
| Trade and other receivables | 486,121 | - | (24,773 | ) | - | - | 461,348 | |||||||||||||||||||||
| Right-of-use assets | 513,942 | - | (369,632 | ) | - | - | 144,310 | |||||||||||||||||||||
| Other assets | 2,006,636 | - | (167,313 | ) | - | - | 1,839,323 | |||||||||||||||||||||
| Total current assets | 3,281,466 | (148,672 | ) | (685,666 | ) | - | 1 | 2,447,129 | ||||||||||||||||||||
| NON-CURRENT ASSETS | ||||||||||||||||||||||||||||
| Plant and equipment, net | 6,441,734 | - | (2,301,752 | ) | - | - | 4,139,982 | |||||||||||||||||||||
| Other assets - equipment deposits | 11,459,195 | - | (11,459,195 | ) | - | - | - | |||||||||||||||||||||
| Financial asset at fair value through other comprehensive income | 562,500 | - | - | - | - | 562,500 | ||||||||||||||||||||||
| Intangible assets and goodwill | 1,900,589 | (1,900,589 | ) | - | - | - | - | |||||||||||||||||||||
| Right-of-use assets | 1,444,927 | - | (1,444,927 | ) | - | - | - | |||||||||||||||||||||
| Loan receivables | - | - | - | - | 5 | 10,101,944 | 10,101,944 | |||||||||||||||||||||
| Investment in associate | - | - | - | - | 6 | 207,326 | 207,326 | |||||||||||||||||||||
| Total non-current assets | 21,808,945 | (1,900,589 | ) | (15,205,874 | ) | - | 10,309,270 | 15,011,752 | ||||||||||||||||||||
| TOTAL ASSETS | 25,090,411 | (2,049,261 | ) | (15,891,540 | ) | - | 10,309,271 | 17,458,881 | ||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Trade and other liabilities | 2,424,717 | (808,980 | ) | (359,676 | ) | - | - | 1,256,061 | ||||||||||||||||||||
| Amounts due to related companies | 247,406 | - | - | - | - | 247,406 | ||||||||||||||||||||||
| Lease liabilities | 425,567 | - | (248,954 | ) | - | - | 176,613 | |||||||||||||||||||||
| Derivative financial instruments | 2,321,003 | - | - | - | - | 2,321,003 | ||||||||||||||||||||||
| Convertible promissory notes | 4,311,416 | - | - | - | - | 4,311,416 | ||||||||||||||||||||||
| Total current liabilities | 9,730,109 | (808,980 | ) | (608,630 | ) | - | - | 8,312,499 | ||||||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Lease liabilities | 1,403,932 | - | (1,403,932 | ) | - | - | - | |||||||||||||||||||||
| 1,403,932 | - | (1,403,932 | ) | - | - | - | ||||||||||||||||||||||
| TOTAL LIABILITIES | 11,134,041 | (808,980 | ) | (2,012,562 | ) | - | - | 8,312,499 | ||||||||||||||||||||
| NET CURRENT (LIABILITIES)/ASSETS | (6,448,643 | ) | 660,308 | (77,036 | ) | - | 1 | (5,865,370 | ) | |||||||||||||||||||
| NET ASSETS | 13,956,370 | (1,240,281 | ) | (13,878,978 | ) | - | 10,309,271 | 9,146,382 | ||||||||||||||||||||
| CAPITAL AND RESERVES | ||||||||||||||||||||||||||||
| Issued capital | 48,144,406 | - | - | - | - | 48,144,406 | ||||||||||||||||||||||
| Foreign currency translation reserves | 762,348 | (38,949 | ) | 252,397 | 2 | - | 975,798 | |||||||||||||||||||||
| Other reserves | 62,500 | - | - | - | 7 | 701,400 | 763,900 | |||||||||||||||||||||
| Accumulated losses | (37,169,358 | ) | (457,440 | ) | (14,131,375 | ) | (2 | ) | 8 | 9,607,871 | (42,150,304 | ) | ||||||||||||||||
| Equity attributable to equity shareholders of Integrated Media Technology Limited | 11,799,896 | (496,389 | ) | (13,878,978 | ) | - | 10,309,271 | 7,733,800 | ||||||||||||||||||||
| Non-controlling interests | 2,156,474 | (743,892 | ) | - | - | - | 1,412,582 | |||||||||||||||||||||
| TOTAL EQUITY | 13,956,370 | (1,240,281 | ) | (13,878,978 | ) | - | 10,309,271 | 9,146,382 | ||||||||||||||||||||
| Ordinary shares issued | 9,329,420 | |||||||||||||||||||||||||||
2
INTEGRATED MEDIA TECHNOLOGY LIMITED
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2021
| IMTE | Greifenberg | eGlass | Grand Dynasty | Note | Pro forma adjustments | Unaudited Pro Forma | ||||||||||||||||||||||
| A$ | A$ | A$ | A$ | A$ | A$ | |||||||||||||||||||||||
| (Note 1) | (Note 2) | (Note 3) | (Note 4) | |||||||||||||||||||||||||
| Revenue, net | 193,113 | - | (6,846 | ) | - | - | 186,267 | |||||||||||||||||||||
| Interest income | 18,864 | (4 | ) | - | - | - | 18,860 | |||||||||||||||||||||
| 211,977 | (4 | ) | (6,846 | ) | - | - | 205,127 | |||||||||||||||||||||
| (Loss)/ gain on fair value change in derivative financial instruments | (842,463 | ) | - | - | - | - | (842,463 | ) | ||||||||||||||||||||
| Other income | 335,807 | - | - | - | - | 335,807 | ||||||||||||||||||||||
| (294,679 | ) | (4 | ) | (6,846 | ) | - | - | (301,529 | ) | |||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||||||
| Cost of sales | (149,447 | ) | - | - | - | - | (149,447 | ) | ||||||||||||||||||||
| Employee benefit expenses | (1,613,922 | ) | 10,925 | 659,008 | - | - | (943,989 | ) | ||||||||||||||||||||
| Depreciation and amortisation expenses | (1,326,811 | ) | - | 26,889 | - | - | (1,299,922 | ) | ||||||||||||||||||||
| Professional and consulting expenses | (2,376,038 | ) | 307,700 | 1,183,869 | 458 | - | (884,011 | ) | ||||||||||||||||||||
| Travel and accommodation expenses | (91,385 | ) | 10,633 | 66,727 | - | - | (14,025 | ) | ||||||||||||||||||||
| Other expenses and supplies | (142,482 | ) | 49 | 49,070 | 44 | - | (93,319 | ) | ||||||||||||||||||||
| Rental costs | (116,406 | ) | - | 33,654 | - | - | (82,752 | ) | ||||||||||||||||||||
| Other operating expenses | (378,500 | ) | 77,939 | 42,915 | 458 | - | (257,188 | ) | ||||||||||||||||||||
| Finance costs | (2,000,952 | ) | - | 60,448 | - | - | (1,940,504 | ) | ||||||||||||||||||||
| Reversal/ (Provision) of allowance for inventory obsolescence | 9,439 | - | - | - | - | 9,439 | ||||||||||||||||||||||
| Provision for bad debts | (14,390 | ) | - | - | - | - | (14,390 | ) | ||||||||||||||||||||
| Gain/ (loss) on disposal of subsidiaries | 1,998,269 | - | - | - | (512,218 | ) | 1,486,051 | |||||||||||||||||||||
| Share of loss in associate | - | - | - | - | (86,664 | ) | (86,664 | ) | ||||||||||||||||||||
| Exchange loss | (88,322 | ) | (11,616 | ) | 43,227 | - | - | (56,711 | ) | |||||||||||||||||||
| Total expenses | (6,290,947 | ) | 395,630 | 2,165,807 | 960 | (598,882 | ) | (4,327,432 | ) | |||||||||||||||||||
| Loss before income tax | (6,585,626 | ) | 395,626 | 2,158,961 | 960 | (598,882 | ) | (4,628,961 | ) | |||||||||||||||||||
| Income tax (expense)/credit | - | - | - | - | - | |||||||||||||||||||||||
| Loss for the year | (6,585,626 | ) | 395,626 | 2,158,961 | 960 | (598,882 | ) | (4,628,961 | ) | |||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||
| Items that may be re-classified subsequently to profit or loss: | ||||||||||||||||||||||||||||
| Fair value through other comprehensive income | 62,500 | - | - | - | - | 62,500 | ||||||||||||||||||||||
| Foreign currency translation | 158,547 | (36,080 | ) | 225,833 | 2 | - | 348,302 | |||||||||||||||||||||
| Other comprehensive income for the year, net of tax | 221,047 | (36,080 | ) | 225,833 | 2 | - | 410,802 | |||||||||||||||||||||
| Total comprehensive loss for the year | (6,364,579 | ) | 359,546 | 2,384,794 | 962 | (598,882 | ) | (4,218,159 | ) | |||||||||||||||||||
| Loss for the year attributable to: | ||||||||||||||||||||||||||||
| Owners of the Company | (5,771,510 | ) | 159,459 | 2,158,961 | 960 | (598,882 | ) | (4,051,012 | ) | |||||||||||||||||||
| Non-controlling interests | (814,116 | ) | 236,167 | - | - | - | (577,949 | ) | ||||||||||||||||||||
| (6,585,626 | ) | 395,626 | 2,158,961 | 960 | (598,882 | ) | (4,628,961 | ) | ||||||||||||||||||||
| Total comprehensive loss for the year attributable to: | ||||||||||||||||||||||||||||
| Owners of the Company | (5,830,540 | ) | 127,248 | 2,384,794 | 962 | (598,882 | ) | (3,916,418 | ) | |||||||||||||||||||
| Non-controlling interests | (534,039 | ) | 232,298 | - | - | - | (301,741 | ) | ||||||||||||||||||||
| (6,364,579 | ) | 359,546 | 2,384,794 | 962 | (598,882 | ) | (4,218,159 | ) | ||||||||||||||||||||
| Loss per share | ||||||||||||||||||||||||||||
| - Basic and Diluted | (0.70 | ) | (0.49 | ) | ||||||||||||||||||||||||
3
Note
| 1. | The balances represent the amounts in IMTE’s audited consolidated accounts as at December 31, 2021. |
| 2. | The balances represent the amounts in Greifenberg’s unaudited accounts as at as at December 31, 2021. |
| 3. | The balances represent the amounts in eGlass’s unaudited accounts as at December 31, 2021. |
| 4. | The balances represent the amounts in Grand Dynasty’s unaudited accounts as at December 31, 2021. |
| 5. | The loan receivable of US$6,800,000 (equivalent to A$10,101,944) represents the sales proceeds for the disposal of eGlass by IMTE. |
| 6. | The investment in associated company of A$201,326 represents the value of the Company’s investment in Greifenberg after the Deemed Disposal in Greifenberg from 40.75% to 23.96%. Accordingly, the investment in Greifenberg was accounted for on an equity basis rather than consolidated basis immediately after the Deemed Disposal. Greifenberg was previously consolidated on our balance sheet when we owned a 40.75% interest because IMTE had effective control over Greifenberg. |
| 7. | The amount of other reserve of A$701,400 represents the original investment cost in Greifenberg, which was adjusted as a result of the reduction interest of IMTE in Greifenberg from 40.75% to 23.96%. |
| 8. | The amounts represent the adjustments to accumulated losses resulting from the Disposals. The reconciliation of the proforma accumulated losses for the year ended December 31, 2021 is as follow: |
| IMTE | Greifenberg | eGlass | Grand Dynasty | Pro forma adjustments | Unaudited pro forma | |||||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||
| A$ | A$ | A$ | A$ | A$ | A$ | |||||||||||||||||||
| Accumulated losses – beginning of year | (34,102,300 | ) | - | 3,349,089 | - | 10,206,753 | (20,546,458 | ) | ||||||||||||||||
| Adjustment - current a/c & equity | - | (616,899 | ) | (19,639,425 | ) | (962 | ) | - | (20,257,286 | ) | ||||||||||||||
| Accumulated losses - equity movement | 2,704,452 | - | - | - | - | 2,704,452 | ||||||||||||||||||
| Loss for the year - 2021 | (5,771,510 | ) | 159,459 | 2,158,961 | 960 | (598,882 | ) | (4,051,012 | ) | |||||||||||||||
| Accumulated losses – end of year | (37,169,358 | ) | (457,440 | ) | (14,131,375 | ) | (2 | ) | 9,607,871 | (42,150,304 | ) | |||||||||||||
4