Integrated Media Technology Ltd 6-K, filed Sep 29, 2021
Integrated Media Technology Ltd (IMTE)
About this 6-K
Integrated Media Technology Ltd filed this 6-K on September 29, 2021.
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 29, 2021
Commission File Number: 001-38018
______________________________________________
Integrated Media Technology Limited
(Exact Nameas Specified in its Charter)
______________________________________________
N/A
(Translationof Registrant's Name)
Level 7, 420King William Street
Adelaide SA5000
(Address ofprincipal 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): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If "Yes" is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
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 29, 2021
| Integrated Media Technology Limited | |
|---|---|
| By: | /s/ Xiaodong Zhang |
| Name: | Xiaodong Zhang |
| Title: | Chief Executive Officer |
EXHIBIT INDEX
| Exhibit | Description of Exhibit |
|---|---|
| 99.1 | Interim Report - For the Six Months Ended June 30, 2021 |
Safe Harbor Statement and Legal Disclaimer
This Form 6-K contains certain statements that describe our management's beliefs concerning future business conditions and prospects, growth opportunities and the outlook for our business, including our business in air filter, electronic glass and the 3D autostereoscopic or ASD display, based upon information currently available. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as "anticipates," "believes," "intends," "estimates," "expects," "projects" and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward-looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among other things, the risks and uncertainties disclosed in our annual report on Form 20-F filed with the Securities and Exchange Commission from time to time.
Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward-looking statements may turn out to be wrong. They speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in this Form 6-K and in our annual reports will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Actual future results may vary materially. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise.
Nasdaq/Media Release (NASDAQ: IMTE)
September 29, 2021
Half Year Report - For the Six Months Ended June 30, 2021
Integrated Media Technology Limited (NASDAQ: IMTE) ("IMTE" or the "Company") announces the release of its Interim Report for the six months ended June 30, 2021.
Presented In Australian dollars (A$)
| Key Information | For the Six Months Ended | ||
|---|---|---|---|
| June 30, 2021A$ | June 30, 2020A$ | % of Increase/ (Decrease) | |
| Revenue from operating activities | 3,294 | 444,663 | (99%) |
| Earnings before interest, tax, depreciation and amortization ("EBITDA") | (6,515,773) | (3,451,089) | (89%) |
| Loss from ordinary activities after tax attributable to members | (6,680,453) | (4,655,833) | (44%) |
| Total comprehensive loss attributable to members | (6,414,078) | (4,530,186) | (42%) |
| Basic and diluted loss per share | (0.88) | (1.32) | (33%) |
| Interim dividend | N/A | N/A | N/A |
The revenue from operating activities decreased by 99% from A$444,663 for the six months ended June 30, 2020 to A$3,294 for the six months ended June 30, 2021, primarily from the decreases in sale of display products.
During the six months ended June 30, 2021, IMTE has recorded a loss of A$7,130,857 (2020: loss of A$4,835,240). The increase in losses was mainly due to increase in the fair value loss of the derivative on financial instruments as compared to the prior period.
Please refer to Exhibit 99.1 for full text of our Interim Report for the six months ended June 30, 2021.
About Integrated Media Technology Limited ("IMTE")
IMTE is an Australian company engaged in the business of glasses-free 3D (also known as autostereoscopic 3D) display, the manufacture and sale of nano coated photocatalytic plates for filters, the sale of electronic glass and financial research. For more information, please visit www.imtechltd.com.
Investor Relations Contact:
Email: info@imtechltd.com
Exhibit | Integrated Media Technology Limited
INTEGRATED MEDIA TECHNOLOGY LIMITED
ACN 132 653 948
Interim Report
June 30, 2021
Contents
| Pages | |
|---|---|
| Condensed<br> Consolidated Statements of Profit or Loss and Other Comprehensive Income (Loss) | 1 |
| Condensed<br> Consolidated Statements of Financial Position | 2 |
| Condensed<br> Consolidated Statements of Changes in Equity | 3 |
| Condensed<br> Consolidated Statements of Cash Flows | 4 |
| Notes<br> to the Condensed Consolidated Financial Statements | 5-22 |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>i |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
CondensedConsolidated StatementS of Profit Or Loss and comprehensive income (loss)
FOR the six months ended 30 June2021 and 2020
| Group | |||
|---|---|---|---|
| June<br> 30<br><br> <br>2021 | June<br> 30<br><br> <br>2020 | ||
| Notes | A$ | A$ | |
| Revenue,<br> net | 4 | 3,294 | 444,663 |
| Cost<br> of goods sold | (2,202) | (331,663) | |
| 1,092 | 113,000 | ||
| Interest<br> income | 9,848 | - | |
| Other<br> income | 5 | 25,000 | 82,561 |
| 35,940 | 195,561 | ||
| EXPENSES | |||
| Employee<br> benefit expenses | (1,058,535) | (1,426,738) | |
| Depreciation<br> and amortization | (653,226) | (1,384,151) | |
| Professional<br> and consulting expenses | (1,103,185) | (831,396) | |
| Travel<br> and accommodation expenses | (29,801) | (33,829) | |
| Office<br> expenses and supplies | (41,065) | (195,787) | |
| Rental<br> costs | (63,039) | (194,049) | |
| Other<br> operating expenses | (168,741) | (385,143) | |
| Finance<br> costs | 6 | (1,089,514) | (487,871) |
| Fair<br> value loss on derivative financial instruments | (2,914,034) | - | |
| Exchange<br> losses | (45,657) | (62,847) | |
| Loss<br> on disposal of subsidiaries | 22 | - | (28,990) |
| Total<br> expenses | (7,166,797) | (5,030,801) | |
| LOSS<br> BEFORE INCOME TAX | (7,130,857) | (4,835,240) | |
| Income<br> tax credit | 7(a) | - | - |
| LOSS<br> FOR THE PERIOD | (7,130,857) | (4,835,240) | |
| OTHER<br> COMPREHENSIVE INCOME | |||
| Items<br> that may be reclassified subsequently to profit or loss: | |||
| Exchange<br> difference on translation of financial statements of overseas subsidiaries | 417,589 | 248,419 | |
| Other<br> comprehensive income for the period, net of tax | 417,589 | 248,419 | |
| TOTAL<br> COMPREHENSIVE LOSS FOR THE PERIOD | (6,713,268) | (4,586,821) | |
| Loss<br> for the period attributable to: | |||
| Owners<br> of the Company | (6,680,453) | (4,655,833) | |
| Non-controlling<br> interests | (450,404) | (179,407) | |
| (7,130,857) | (4,835,240) | ||
| Total<br> comprehensive loss for the period attributable to: | |||
| Owners<br> of the Company | (6,414,078) | (4,530,186) | |
| Non-controlling<br> interests | (299,190) | (56,635) | |
| (6,713,268) | (4,586,821) | ||
| Loss<br> per share | |||
| -<br> Basic and diluted | 9 | (0.88) | (1.32) |
The accompanying notes form part of these condensed consolidated financial statements.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>1 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
CondensedConsolidated StatementS of Financial Position
AS OF JUNE 30, 2021 AND DECEMBER31, 2020
| Group | |||
|---|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31<br><br> <br>2020 | ||
| Notes | A$ | A$ | |
| ASSETS | |||
| CURRENT<br> ASSETS | |||
| Cash<br> and bank balances | 3,996,723 | 2,194,084 | |
| Inventories | 10 | 190,804 | 187,401 |
| Right<br> of use assets | 18 | 144,359 | - |
| Trade<br> and other receivables | 11 | 1,100,543 | 1,164,605 |
| Other<br> assets | 12 | 2,343,608 | 2,089,897 |
| Total current assets | 7,776,037 | 5,635,987 | |
| NON-CURRENT<br> ASSETS | |||
| Plant<br> and equipment | 13 | 6,977,864 | 7,317,678 |
| Other<br> assets | 12 | 6,663,401 | - |
| Right<br> of use assets | 18 | 72,179 | - |
| Intangible<br> assets and goodwill | 14 | 452,875 | - |
| Investment | 15 | 500,000 | - |
| Total<br> non-current assets | 14,666,319 | 7,317,678 | |
| TOTAL<br> ASSETS | 22,442,356 | 12,953,665 | |
| LIABILITIES | |||
| CURRENT<br> LIABILITIES | |||
| Trade<br> and other liabilities | 16 | 2,747,607 | 3,589,164 |
| Amounts<br> due to related companies | 17 | 244,059 | 237,674 |
| Amount<br> due to holding company | 17 | 546,122 | 532,718 |
| Derivative<br> financial instruments | 19 | 2,521,784 | - |
| Convertible<br> promissory notes | 20 | 1,816,305 | - |
| Lease<br> liabilities | 18 | 154,994 | - |
| Total<br> current liabilities | 8,030,871 | 4,359,556 | |
| NON-CURRENT<br> LIABILITIES | |||
| Lease<br> liabilities | 18 | 92,694 | - |
| Deferred<br> tax liabilities | 7(b) | 14,012 | 13,668 |
| Derivative<br> financial instruments | 19 | 1,902,171 | 1,478,540 |
| Convertible<br> promissory notes | 20 | 1,540,835 | 2,196,049 |
| Total<br> non-current liabilities | 3,549,712 | 3,688,257 | |
| TOTAL<br> LIABILITIES | 11,580,583 | 8,047,813 | |
| NET<br> CURRENT (LIABILITIES)/ ASSETS | (254,834) | 1,276,431 | |
| NET<br> ASSETS | 10,861,773 | 4,905,852 | |
| CAPITAL AND RESERVES | |||
| Issued<br> capital (no par value, 8,440,533 ordinary shares issued and outstanding as of June 30, 2021 and 6,513,671 ordinary shares as of December<br> 31, 2020) | 21 | 44,318,145 | 32,089,997 |
| Foreign<br> currency translation reserves | 23 | 1,150,253 | 883,878 |
| Other<br> reserves | 23 | 2,704,452 | 2,704,452 |
| Accumulated<br> losses | (40,782,753) | (34,102,300) | |
| Equity<br> attributable to owners of the Company | 7,390,097 | 1,576,027 | |
| Non-controlling<br> interests | 3,471,676 | 3,329,825 | |
| TOTAL<br> EQUITY | 10,861,773 | 4,905,852 |
The accompanying notes form part of these condensed consolidated financial statements.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>2 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES INEQUITY
| Attributable<br> to Owners of the Company | Non-Controlling<br> Interests | Total<br> Equity | |||||
|---|---|---|---|---|---|---|---|
| Group | Issued<br> Capital | Retained<br> Earnings / (Accumulated<br><br> <br>Losses) | Foreign<br> Currency Translation Reserve<br><br> <br>(Note<br> 23(a)) | Other<br> reserves<br><br> <br>(Note<br> 23(b)) | Total | ||
| A$ | A$ | A$ | A$ | A$ | A$ | A$ | |
| Balance<br> at January 1, 2020 | 18,902,029 | (25,786,912) | 735,213 | 4,423,141 | (1,726,529) | 1,805,552 | 79,023 |
| Loss<br> for the period | - | (4,655,833) | - | - | (4,655,833) | (179,407) | (4,835,240) |
| Other<br> comprehensive income, net of tax | - | - | 125,647 | - | 125,647 | 122,772 | 248,419 |
| Total<br> comprehensive income / (loss) for the period | - | (4,655,833) | 125,647 | - | (4,530,186) | (56,635) | (4,586,821) |
| Transfer<br> convertible bond reserve to accumulated loss | - | 1,718,689 | - | (1,718,689) | - | - | - |
| Disposal<br> of subsidiaries | - | - | - | - | - | 257,542 | 257,542 |
| Issuance<br> of new ordinary shares | 1,407,658 | - | - | - | 1,407,658 | - | 1,407,658 |
| Balance<br> at June 30, 2020 | 20,309,687 | (28,724,056) | 860,860 | 2,704,452 | (4,849,057) | 2,006,459 | (2,842,598) |
| Balance<br> at January 1, 2021 | 32,089,997 | (34,102,300) | 883,878 | 2,704,452 | 1,576,027 | 3,329,825 | 4,905,852 |
| Loss<br> for the period | - | (6,680,453) | - | - | (6,680,453) | (450,404) | (7,130,857) |
| Other<br> comprehensive income, net of tax | - | - | 266,375 | - | 266,375 | 151,214 | 417,589 |
| Total<br> comprehensive income / (loss) for the period | - | (6,680,453) | 266,375 | - | (6,414,078) | (299,190) | (6,713,268) |
| Acquisition<br> of subsidiary | - | - | - | - | - | 441,041 | 441,041 |
| Issuance<br> of new ordinary shares | 12,228,148 | - | - | - | 12,228,148 | - | 12,228,148 |
| Balance<br> at June 30, 2021 | 44,318,145 | (40,782,753) | 1,150,253 | 2,704,452 | 7,390,097 | 3,471,676 | 10,861,773 |
The accompanying notes form part of these condensed consolidated financial statements.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>3 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR the six months ended 30 June2021 and 2020
| Group | |||
|---|---|---|---|
| For<br> the Six Months Ended June 30<br><br> <br>2021 | For<br> the Six Months Ended June 30<br><br> <br>2020 | ||
| Notes | A$ | A$ | |
| CASH<br> FLOWS FROM OPERATING ACTIVITIES | |||
| Net<br> loss before tax | (7,130,857) | (4,835,240) | |
| Adjustments<br> to reconcile net loss to net cash used in operating activities: | |||
| Depreciation<br> and amortization | 653,226 | 1,384,151 | |
| Loss<br> on disposal of subsidiaries | - | 28,990 | |
| Loss<br> on fair value change of derivative on financial instruments | 2,914,034 | ||
| Interest<br> accrued for lease liabilities | 8,475 | 32,526 | |
| Interest<br> accrued for convertible notes | 1,072,311 | 122,660 | |
| Provision<br> for inventories obsolescence | (230) | - | |
| Net<br> cash flows from changes in working capital | 27 | (1,059,016) | 796,857 |
| NET<br> CASH OUTFLOW USED IN OPERATING ACTIVITIES | (3,542,057) | (2,470,056) | |
| CASH<br> FLOWS FROM INVESTING ACTIVITIES | |||
| Disposal<br> of subsidiaries, net of cash disposal of | 22 | - | 855,506 |
| Development<br> expenditures | - | (125,520) | |
| Payment<br> for investment | (500,000) | - | |
| Deposit<br> paid for lamination production equipment | 12 | (6,663,401) | - |
| Payments<br> for plant and equipment | (61,552) | (2,064) | |
| NET<br> CASH (OUTFLOW)/ INFLOW FROM INVESTING ACTIVITIES | (7,224,953) | 727,922 | |
| CASH<br> FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds<br> of advances from related parties | - | 602,834 | |
| Proceeds<br> of advances from other payables | 224,291 | 2,357,112 | |
| Proceeds<br> from issuance of convertible notes | - | 2,626,400 | |
| Payment<br> of lease liabilities | (48,708) | (320,851) | |
| Repayment<br> for convertible bonds | - | (4,668,195) | |
| Proceeds<br> from shares issued | 12,228,148 | 1,407,658 | |
| NET<br> CASH INFLOW PROVIDED BY FINANCING ACTIVITIES | 12,403,731 | 2,004,958 | |
| NET<br> INCREASE IN CASH AND CASH EQUIVALENTS | 1,636,721 | 262,824 | |
| CASH<br> AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD | 2,194,084 | (166,758) | |
| Effect<br> of exchange rate changes on cash and cash equivalents | 165,918 | 43,108 | |
| CASH<br> AND CASH EQUIVALENTS AT END OF PERIOD | 3,996,723 | 139,174 | |
| Analysis of cash and cash equivalents: | |||
| Cash<br> and bank balances | 3,996,723 | 139,174 |
The accompanying notes form part of these condensed consolidated financial statements.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>4 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated financial statements are general purpose financial statements, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs") IAS 34 "Interim Financial Reporting".
The condensed consolidated financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these condensed consolidated financial statements are to be read in conjunction with the annual report for the financial year ended December 31, 2020 and any public announcements made by Integrated Media Technology Limited during the interim reporting period.
The condensed consolidated financial statements have been prepared on the accrual basis and are based on historical cost modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.
The Company and its subsidiaries are referred to as the "Group".
The Group incurred a net loss of A$7,130,857 (2020: loss of A$4,835,240) during the six months ended June 30, 2021 and, as of that date, the Group's current liabilities exceeded its current assets by A$254,834. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.
Going Concern
The Company’s consolidated financial statements are prepared using International Financial Reporting Standards as issued by the International Accounting Standards Board applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2021, the Company had accumulated losses of A$40,782,753 and generated a net loss for the six months ended June 30, 2021 of A$7,130,857 and used cash in operating activities in the amount of A$3,542,057. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.
For the period under review until the date of this report, the Company has raised a total of A$12.23 million from the selling of new shares. These corporate actions have stabilized the Company’s cashflow in the short term, but the Company will need to continue to build its capital base to fund its business plans.
In order to continue as a going concern, the Company will need continual short-term borrowings for our working and operating capital. In the longer term, the Company is dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations.
There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>5 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
| 1. | BASIS<br> OF PREPARATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) |
|---|
Based on the Company’s current rate of cash outflows, cash on hand and short term borrowings, management believes that its current cash may not be sufficient to meet the anticipated cash needs for working capital for the next twelve months.
The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:
| (a) | Continue<br> to raise financing through the sale of its equity and/or debt securities; |
|---|---|
| (b) | Seek<br> additional capital in the public equity markets to continue its operations as it rolls out<br> its current products in development, respond to competitive pressures, develop new products<br> and services, and support new strategic partnerships. The Company is currently evaluating<br> additional equity financing opportunities and may execute them when appropriate. However,<br> there can be no assurances that the Company can consummate such a transaction, or consummate<br> a transaction at favorable pricing. |
| --- | --- |
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraphs and eventually secure other sources of financing and achieve profitable operations. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.
The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
The consolidated financial statements of the Group are presented in Australian Dollars (“A$”), unless otherwise stated.
New,revised or amended Accounting Standards and Interpretations adopted
The IASB has issued a number of new IFRSs and amendments to IFRSs that are first effective for the current accounting period of the Group. Of these, the following developments are relevant to the Group’s financial statements:
| IFRS9,<br> IAS 39 and IFRS 7 Amendments | Interest<br> Rate Benchmark Reform |
|---|
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).
The amendments include the following practical expedients:
| · | A<br> practical expedient to require contractual changes, or changes to cash flows that are directly<br> required by the reform, to be treated as changes to a floating interest rate, equivalent<br> to a movement in a market rate of interest |
|---|---|
| · | Permit<br> changes required by IBOR reform to be made to hedge designations and hedge documentation<br> without the hedging relationship being discontinued |
| --- | --- |
| · | Provide<br> temporary relief to entities from having to meet the separately identifiable requirement<br> when an RFR instrument is designated as a hedge of a risk component |
| --- | --- |
These amendments had no impact on the interim condensed consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable. The adoption of these amendments has not had a material impact on the Group.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>6 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. USE OF JUDGEMENTS AND ESTIMATES
In preparing these interim condensed consolidated financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements.
3. OPERATING SEGMENTS
Operating segments have been determined on the basis of reports reviewed by the executive director. The executive director is considered to be the chief operating decision maker of the Group. The executive director considers that the Group has assessed and allocated resources on this basis. The executive director considers that the Group has six operating segments for the period ended June 30, 2021 (2020: three), being (1) the development, sale and distribution of autostereoscopic 3D displays, conversion equipment, software and others, (2) the sale of electronic glass, (3) sale of nano coated plates and air filters, (4) provision of credit risk analysis, (5) IoT and (6) Corporate.
The executive director reviews Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”). The accounting policies adopted for internal reporting to the executive director are consistent with those adopted in the condensed consolidated financial statements.
The information reported to the executive director is on at least a monthly basis.
Intersegmenttransaction
There are no intersegment transactions. There are no intersegment sales, receivables, payables and loans.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>7 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. OPERATING SEGMENTS (continued)
Operatingsegment information
| <br><br> <br> | Sales<br> and<br><br> <br>distribution<br> of<br><br> <br>3D<br> displays<br><br> <br>(Remark<br> 1) | Sales<br> of electronic<br><br> <br>glass<br><br> <br>(Remark<br> 2) | Sales<br> of<br><br> <br>air-filter<br> products<br><br> <br>(Remark<br> 2) | Provision<br> of<br><br> <br>credit<br> risk<br><br> <br>analysis<br><br> <br>(Remark<br> 3) | IoT<br><br> <br>(Remark<br> 3) | Corporate | Total |
|---|---|---|---|---|---|---|---|
| Consolidated – 2021 | A$ | A$ | A$ | A$ | A$ | A$ | A$ |
| For the six months ended<br><br> <br>June 30, 2021<br><br> <br>Revenue | |||||||
| Sales<br> to external customers | 3,294 | - | - | - | - | - | 3,294 |
| Intersegment<br> sales | - | - | - | - | - | - | - |
| Total<br> sales revenue | 3,294 | - | - | - | - | - | 3,294 |
| Other<br> revenue | 9,848 | - | - | - | - | 25,000 | 34,848 |
| Total<br> revenue | 13,142 | - | - | - | - | 25,000 | 38,142 |
| EBITDA | (6,515,773) | ||||||
| Depreciation<br> and amortization | (653,226) | ||||||
| Loss before income tax | (7,130,857) | ||||||
| Income<br> tax credit | - | ||||||
| Loss after income tax | (7,130,857) | ||||||
| ****<br><br> <br>As at June 30, 2021<br><br> <br>Assets | |||||||
| Segment assets | 1,900,220 | 8,881,894 | 6,750,677 | 521,175 | 500,000 | 3,888,390 | 22,442,356 |
| Liabilities | |||||||
| Segment liabilities | 1,351,722 | 68,527 | 878,945 | 67,732 | - | 9,213,657 | 11,580,583 |
| Consolidated – 2020 | |||||||
| For the six months ended<br><br> <br>June 30, 2020<br><br> <br>Revenue | |||||||
| Sales<br> to external customers | 444,663 | - | - | - | - | - | 444,663 |
| Intersegment<br> sales | - | - | - | - | - | - | - |
| Total<br> sales revenue | 444,663 | - | - | - | - | - | 444,663 |
| Other<br> revenue | 82,561 | - | - | - | - | - | 82,561 |
| Total<br> revenue | 527,224 | - | - | - | - | - | 527,224 |
| EBITDA | (3,451,089) | ||||||
| Depreciation<br> and amortization | (1,384,151) | ||||||
| Loss before income tax | (4,835,240) | ||||||
| Income<br> tax credit | - | ||||||
| Loss after income tax | (4,835,240) | ||||||
| ****<br><br> <br>As at June 30, 2020<br><br> <br>Assets | |||||||
| Segment assets | 7,134,056 | - | - | - | - | 200,564 | 7,334,620 |
| Liabilities | |||||||
| Segment liabilities | 5,820,019 | - | - | - | - | 4,357,079 | 10,177,218 |
Remark 1: Development, sale and distribution of 3D displays, conversion equipment, software and provision of technology solutions.
Remark 2: Commenced in 2H-2020.
Remark 3: Commenced in 1H-2021.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>8 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4. REVENUE
| Group | ||
|---|---|---|
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| A$ | A$ | |
| Development,<br> sales and distribution of autostereoscopic 3D products and conversion equipment | 3,294 | 444,663 |
5. OTHER INCOME
| Group | ||
|---|---|---|
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| A$ | A$ | |
| Government<br> grant | - | 82,082 |
| Sundry<br> income | 25,000 | 479 |
| 25,000 | 82,561 |
6. FINANCE COSTS
| Group | ||
|---|---|---|
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| A$ | A$ | |
| Bank<br> overdraft and borrowing interest | - | 37,091 |
| Interest<br> on finance lease liabilities | 8,475 | 32,526 |
| Interest<br> on revolving loan | 8,728 | 109,811 |
| Interest<br> on convertible bonds | - | 185,783 |
| Interest<br> on convertible promissory note | 1,072,311 | 122,660 |
| 1,089,514 | 487,871 |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>9 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7. INCOME TAX CREDIT
| Group | ||
|---|---|---|
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| A$ | A$ | |
| Current<br> tax expense | - | - |
| Deferred<br> tax benefit | - | - |
| Income<br> tax credit - Note 7(a) | - | - |
| (a) | The<br> prima-facie tax on loss before income tax is reconciled to the income tax benefit / (expense)<br> as follows: | |
| --- | --- | |
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| --- | --- | --- |
| A$ | A$ | |
| Numerical<br> reconciliation of income tax benefit / (expense) to prima facie tax payable | ||
| Loss<br> before income tax | (7,130,857) | (4,835,240) |
| Income<br> tax benefit on loss before income tax at 30% | (2,139,257) | (1,450,572) |
| Difference<br> in overseas tax rates | (439,376) | 564,245 |
| Less<br> the tax effect of: | ||
| Tax<br> losses and temporary differences for the period<br><br> for<br> which no deferred tax is recognized | 2,578,633 | 886,327 |
| Income<br> tax expense | - | - |
| (b) | Deferred<br> tax assets / (liabilities) arising from temporary differences and unused tax losses can be<br> summarized as follows: | |
| --- | --- | |
| June<br> 30<br><br> <br>2021 | December<br> 31<br><br> <br>2020 | |
| --- | --- | --- |
| A$ | A$ | |
| Balance<br> brought forward | (13,668) | (1,372,653) |
| Temporary<br> differences derecognized | - | - |
| Release<br> of disposal of subsidiaries | - | 1,380,402 |
| Exchange<br> rate difference | (344) | (21,417) |
| Total | (14,012) | (13,668) |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>10 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
8. DIVIDENDS
No dividends were declared and paid during the six months ended June 30, 2021 (2020: Nil).
9. LOSS PER SHARE
| Group | ||
|---|---|---|
| June<br> 30, 2021 | June<br> 30, 2020 | |
| A$ | A$ | |
| Basic<br> and diluted loss per share | (0.88) | (1.32) |
| Loss<br> after income tax attributable to shareholders | (6,680,453) | (4,655,833) |
| 2021 | 2020 | |
| No.<br> of shares | No.<br> of shares | |
| Weighted<br> average number of ordinary shares as at January 1 | 6,513,671 | 3,377,386 |
| Effect<br> of shares issued | 1,055,396 | 142,334 |
| Weighted<br> average number of ordinary shares adjusted as at June 30 | 7,569,067 | 3,519,720 |
The loss per share was calculated based on the weighted average of 7,569,067 (2020: 3,519,720) shares outstanding during the financial period.
10. INVENTORIES
Inventories consist of the following:
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Raw<br> materials | 303,933 | 296,472 |
| Finished<br> goods – displays and other products | 540,850 | 529,080 |
| Provision<br> for inventories obsolescence | (653,979) | (638,151) |
| Total,<br> net of allowance for inventories | 190,804 | 187,401 |
11. TRADE AND OTHER RECEIVABLES
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31<br><br> 2020 | |
| A$ | A$ | |
| Trade<br> receivables | 1,093,280 | 1,233,709 |
| Other<br> receivables | 79,837 | 1,689 |
| 1,173,117 | 1,235,398 | |
| Less: <br> Allowances for doubtful debts | (72,574) | (70,793) |
| Total <br> net of allowance for inventories | 1,100,543 | 1,164,605 |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>11 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. OTHER ASSETS
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31<br><br> 2020 | |
| A$ | A$ | |
| Prepayments | 32,597 | 50,382 |
| Trade<br> deposits | 873,857 | 692,026 |
| Other<br> deposits | 1,437,019 | 1,347,360 |
| VAT<br> receivable | 135 | 129 |
| 2,343,608 | 2,089,897 |
As at June 30, 2021, the Group placed a deposit of A$ 6,663,401 (US$ 5,000,000) for purchasing lamination production lines with maturity over 12 months. The deposit was classified as a non-current asset.
13. PLANT AND EQUIPMENT
| Group | Leasehold<br> Improvement | Office<br> Furniture and Equipment | Machinery | Total |
|---|---|---|---|---|
| A$ | A$ | A$ | A$ | |
| At December 31, 2020 | ||||
| Cost | - | 710,621 | 7,224,551 | 7,935,172 |
| Accumulated<br> depreciation | - | (447,995) | (169,499) | (617,494) |
| Net<br> book amount | - | 262,626 | 7,055,052 | 7,317,678 |
| Six months ended June 30, 2021 | ||||
| Opening<br> net book amount | - | 262,626 | 7,055,052 | 7,317,678 |
| Additions | 41,180 | 20,372 | - | 61,552 |
| Disposals | - | - | - | - |
| Depreciation<br> expense | (8,413) | (62,178) | (511,858) | (582,449) |
| Exchange<br> difference | (166) | 5,789 | 175,460 | 181,083 |
| Closing<br> net book amount | 32,601 | 226,609 | 6,718,654 | 6,977,864 |
| At June 30, 2021 | ||||
| Cost | 41,180 | 749,270 | 7,414,841 | 8,205,291 |
| Accumulated<br> depreciation | (8,579) | (522,661) | (696,187) | (1,227,427) |
| Net<br> book amount | 32,601 | 226,609 | 6,718,654 | 6,977,864 |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>12 of 22 |
|---|
INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. INTANGIBLE ASSETS
| Group | Autostereo-<br> scopic 3D Display Technologies and Knowhow | Knowhow | Patents<br> and Trademark | Software<br><br> <br>and<br> License | Total |
|---|---|---|---|---|---|
| A$ | A$ | A$ | A$ | A$ | |
| At December 31, 2020 | |||||
| Cost | 6,217,824 | - | 236,528 | 486,864 | 6,941,216 |
| Accumulated<br> amortization | (6,217,824) | - | (236,528) | (486,864) | (6,941,216) |
| At<br> December 31, 2020 | - | - | - | - | - |
| Six months ended June 30,2021 | |||||
| Opening<br> net book amount | - | - | - | - | - |
| Additions | - | 452,875 | - | - | 452,875 |
| Amortization<br> expense | - | - | - | - | - |
| Provision<br> for impairment | - | - | - | - | - |
| Disposal | - | - | - | - | - |
| Exchange<br> difference | - | - | - | - | - |
| Closing<br> net book amount | - | 452,875 | - | - | 452,875 |
| At June 30, 2021 | |||||
| Cost | - | 452,875 | - | - | 452,875 |
| Accumulated<br> amortization | - | - | - | - | - |
| Provision<br> for impairment | - | - | - | - | - |
| Net<br> book amount | - | 452,875 | - | - | 452,875 |
15. INVESTMENT
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Investment in equity instrument designated as at FVTOCI | ||
| Ordinary<br> Shares | 500,000 | - |
On February 25, 2021, the Group completed the underwriting in Oakridge International Limited (formerly known as Xped Limited) (“Oakridge”), a company listed on the Australian Securities Exchange, for 500 million shares at a subscription price of A$0.001 per share for a total subscription amount of A$500,000 or equivalent to US$381,000. The 500 million shares represent approximately 15% of the total outstanding shares in Oakridge.
This investment in equity instrument is not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the directors of the Company have elected to designate this investment in equity instrument as at Fair Value Through Other Comprehensive Income (FVTOCI) as they believe that recognising short-term fluctuations in this investment’s fair value in profit or loss would not be consistent with the Group’s strategy of holding this investment for long-term purposes and realising their performance potential in the long run.
The fair value of the investment was based on the market value quoted from Australian Stock Exchange (ASX) as at the reporting date. As at June 30, 2021, the fair value of the investment was A$500,000 (2020: Nil).
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>13 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
16. TRADE AND OTHER LIABILITIES
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31<br><br> <br>2020 | |
| A$ | A$ | |
| Trade<br> payables | 147,580 | 146,730 |
| Accruals | 578,768 | 385,888 |
| Trade<br> deposits | 1,072,625 | 630,523 |
| Other<br> borrowings | 225,791 | 211,567 |
| Other<br> payables | 722,843 | 2,214,456 |
| 2,747,607 | 3,589,164 |
17. AMOUNTS DUE TO RELATED COMPANIES
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Amounts<br> due to related companies | 244,059 | 237,674 |
| Amounts<br> due to holding company | 546,122 | 532,718 |
| 790,181 | 770,392 |
The amounts due to related companies and holding company are unsecured, non-interest bearing and repayable on demand.
18. LEASES
Right of use assets
The carrying amount of the Group’s right of use assets and the movements during the period are as follows:
| Group | |
|---|---|
| Leased<br> Property | |
| A$ | |
| As<br> at January 1, 2021 | - |
| Additions | 279,764 |
| Depreciation<br> expenses | (70,778) |
| Exchange<br> differences | 7,552 |
| As<br> at June 30, 2021 | 216,538 |
| Analyzed into: | |
| Current<br> portion | 144,359 |
| Non-current<br> portion | 72,179 |
| 216,538 |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>14 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18. LEASE (continued)
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Within<br> one year | 154,994 | - |
| Two<br> to five years | 92,694 | - |
| 247,688 | - | |
| Less:<br> Amount due within one year shown under current liabilities | (154,994) | - |
| Amount<br> due after one year | 92,694 | - |
| Analyzed<br> into: | ||
| Current<br> portion | 154,994 | - |
| Non-current<br> portion | 92,694 | - |
| 247,688 | - |
Obligations under finance lease carry interest rates of 2.5% per annum.
19. DERIVATIVE FINANCIAL INSTRUMENTS
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Derivative<br> financial liabilities | ||
| -<br> Derivatives related to convertible promissory note | 1,478,540 | 3,790,737 |
| -<br> Fair value change in derivative financial instruments during the six months ended June 30, 2021 / year ended December 31, 2020 | 2,914,034 | (2,312,197) |
| -<br> Exchange difference | 31,381 | - |
| Carrying<br> value as at period end | 4,423,955 | 1,478,540 |
| Analyzed<br> into: | ||
| Current<br> portion | 2,521,784 | - |
| Non-current<br> portion | 1,902,171 | 1,478,540 |
| 4,423,955 | 1,478,540 |
As at December 31, 2020, the management has determined that the option would not be executed and have written off the derivative financial instruments to the consolidated statement of profit or loss and other comprehensive income (loss).
In 2020, the Company entered into two convertible promissory notes as disclosed in Note 20. As at December 31, 2020, the derivatives related to these convertible promissory notes were revalued using the weighted average assumptions: volatility 102.3% and 91.80%, the weighted expected term of two years, a discount rate of 4.13% and a dividend yield of 0%.
The Group departed from IFRS 9 for certain disclosures of the note issued January 20, 2020 as not doing so would be misleading to the readers of the consolidated financial statements as it would greatly inflate the activity on the 2020 consolidated statement of activity but have no effect on the consolidated balance sheet or on the net loss of the Group. As such, the Group determined it was appropriate to present the change in fair value of this derivative instrument, net of interest expense recorded at the time of issuance.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>15 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20. CONVERTIBLE PROMISSORY NOTES
| Group | ||
|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | |
| A$ | A$ | |
| Face<br> value of convertible promissory note issued on January 20, 2020 (note i) | 2,621,360 | 2,621,360 |
| Face<br> value of convertible promissory note issued on August 6, 2020 (note ii) | 2,291,740 | 2,291,740 |
| Equity<br> component | (3,790,737) | (3,790,737) |
| Liability<br> component on initial recognition at January 20,2020 | 1,122,363 | 1,122,363 |
| Interest<br> accrued but not yet paid for the period (Note 6) | 2,580,054 | 1,692,217 |
| Interest<br> paid during the period | (185,469) | (185,469) |
| Exchange<br> differences | (159,808) | (433,062) |
| Carrying<br> value as at end of period | 3,357,140 | 2,196,049 |
| Analyzed<br> into: | ||
| Current<br> portion | 1,816,305 | - |
| Non-current<br> portion | 1,540,835 | 2,196,049 |
| 3,357,140 | 2,196,049 |
Note (i)
On January 20, 2020, the Company entered into a Convertible Promissory Note Purchase Agreement the (“CN Agreement"), with an independent third party (“Noteholder”). Pursuant to CN Agreement, the Noteholderpurchased from the Company a 10% convertible promissory note (the "Promissory Note") in the principal amount of HK$14 million (equivalent to approximately A$2.6 million) maturing in two (2) years from the date of the agreement. The Noteholder has the right to convert the principal amount to shares in the Company at a fixed conversion price of US$3.00, subject to adjustment, per share over the term of the Promissory Note.
In October 2020, the Group settled the interest accrued of A$174,811 by issuing 46,741 shares to the Noteholder.
Note (ii)
On August 6, 2020, the Company entered into a second Convertible Promissory Note Agreement ("the Second CN Agreement") with a third party ("Second Noteholder"). Pursuant to the Second CN Agreement, the holder invested US$1,650,000 under a convertible note (the "Second Note") without interest, maturing in two years from the date of the Second Note. The Second Noteholder or the Company has the right to convert the principal into ordinary shares of the Company at a conversion price of US$ 3.25 per share over the term of the Second Note. The conversion price is subject to downward adjustment and has a floor price of US$ 1.50 if the Company sells ordinary shares below the conversion price within 12 months after the date of the Second Note. The Second Note cannot be prepaid. The Second Noteholder agreed to waive piggyback registration rights.
The conversion feature in convertible promissory notes were derivative liabilities based on the fact the conversion into shares could result in a variable number of shares to be issued.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>16 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. ISSUED CAPITAL
| (a) | Share<br> capital | |||
|---|---|---|---|---|
| Company | ||||
| --- | --- | --- | --- | --- |
| June<br> 30, 2021 | December<br> 31, 2020 | |||
| Number<br> of shares | A$ | Number<br> of shares | A$ | |
| Ordinary<br> Shares fully paid | 8,440,533 | 44,318,145 | 6,513,671 | 32,089,997 |
(b) Movements in share capital
| Number<br> of Shares | A$ | |
|---|---|---|
| December<br> 31, 2020 and January 1, 2021 | 6,513,671 | 32,089,997 |
| Issuance of shares for services | 20,512 | 97,282 |
| Issuance of shares for cash | 1,906,350 | 12,173,040 |
| Legal expenses in respect of issuance of shares | - | (42,174) |
| June<br> 30, 2021 | 8,440,533 | 44,318,145 |
There is only one class of share on issue being ordinary fully paid shares. Holders of ordinary shares are treated equally in all respects regarding voting rights and with respect to the participation in dividends and in the distribution of surplus assets upon a winding up. The fully paid ordinary shares have no par value.
On February 2, 2021, the Company issued 17,744 ordinary shares at a share price of US$3.6125 per share for a total amount of US$64,100 (or about A$84,000) for performance remuneration.
On February 5, 2021, the Company issued 2,768 ordinary shares at a share price of US$3.6125 per share for a total amount of US$10,000 (or about A$13,000) for provision of accounting and administrative services.
On February 22, 2021, the Company entered into a Securities Purchase Agreement for the sale of 625,000 shares of the Company to an investor at a price of US$4.00 per share for US$2,500,000 (approximately A$3,162,500).
On March 4, 2021, the Company entered into subscription agreements in a private placement with twelve investors to subscribe a total of 573,350 shares in the Company at a price of US$4.00 per share for total proceeds of US$2,293,400 (approximately A$2,942,900).
On March 23, 2021, the Company entered into a Securities Purchase Agreement for the sale of 708,000 ordinary shares of the Company to an accredited investor at a price of US$6.50 per share for a total net proceeds of approximately US$4,577,000 (approximately A$6,013,000) after deducting estimated expenses in connection with the offering.
Subsequent to the period ended June 30, 2021 and up to the date of this financial report, the Group has issued 888,888 shares in a value of US$2,800,000. The details of this transaction is listed in Note 29.
(c) Options on issue
There were no share options issued and outstanding during and at the end of the financial period.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>17 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22. DISPOSAL OF SUBSIDIARIES
The detail of the net gain/(loss) on the subsidiaries disposal during the period are set out below:
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
|---|---|---|
| A$ | A$ | |
| Total<br> disposal consideration | - | 25,129 |
| Carrying<br> amount of net asset sold (note(i) below) | - | (230,294) |
| Gain<br> on sales before income tax and reclassification of foreign currency translation reserve | - | 255,423 |
| Reclassification<br> of foreign currency transaction reserve | - | (26,871) |
| Non-controlling<br> interest | - | (257,542) |
| Loss<br> on disposal after income tax | - | (28,990) |
| (a) | Net<br> asset disposal: | |
| --- | --- | |
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| --- | --- | --- |
| A$ | A$ | |
| Plant<br> and equipment | - | 284,240 |
| Development<br> projects | - | 2,864,052 |
| Intangible<br> assets | - | 4,790,784 |
| Right<br> of use assets | - | 865,996 |
| Cash<br> and bank balances | - | 99,061 |
| Inventories | - | 400,806 |
| Trade<br> and others receivable | - | 603,923 |
| Other<br> deposit and prepayment | - | 1,664,343 |
| Trade<br> and other liabilities | - | (912,580) |
| Amount<br> due to a related company | - | (6,689,290) |
| Bank<br> overdraft | - | (929,438) |
| Bank<br> loan | - | (966,747) |
| Lease<br> liabilities | - | (925,042) |
| Deferred<br> tax liabilities | - | (1,380,402) |
| - | (230,294) | |
| (b) | Net<br> cash flows from disposal of subsidiaries | |
| --- | --- | |
| Period<br> Ended <br><br>June 30<br><br> <br>2021 | Period<br> Ended <br><br>June 30<br><br> <br>2020 | |
| --- | --- | --- |
| A$ | A$ | |
| Consideration<br> received, satisfied in cash | - | 25,129 |
| Cash<br> and cash equivalents of subsidiaries disposed of (included cash at bank and bank overdraft) | - | 830,377 |
| - | 855,506 |
23. RESERVES
| (a) | The<br> translation reserve comprises all foreign currency differences arising from the translation<br> of the financial statements of foreign operations to Australian dollars. |
|---|---|
| (b) | Other<br> reserves represent reserve on the capital injection by non-controlling interest. |
| --- | --- |
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>18 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24. CAPITAL COMMITMENTS
As of June 30, 2021, the Group had internal capital commitments for the investments in two People’s Republic of China (“P.R.C.”) subsidiaries of A$19,277,746 (approximately RMB 9,620,859 and US$12,983,813 respectively) (2020: A$2,901,071)
On April 29, 2019, the Company and Teko International Limited ("Teko") entered into a distribution rights agreement for the territory of Hong Kong and Guangzhou Province, China ("Territories") for a proprietary conductive film and 3rd generation Polymer Dispersed Liquid Crystal ("PDLC") film. Pursuant to the Agreement, the Company shall pay 50,000 IMTE shares upon the commissioning of one (i) lamination line, (ii) for each of the next 3 years after the commissioning of the manufacturing line, IMTE shall pay Teko 50,000 IMTE shares should the annual revenue reach US$10 million or 100,000 IMTE shares should the revenue reach US$20 million, and (iii) 50,000 IMTE shares for each additional lamination line installed. In addition, for managing the operations, the Company will pay to Teko 25% of the net profits from the sale of the PDLC film products and the lamination operations.
As of June 30, 2021, the Group had internal commitment for purchasing lamination productions lines of A$6,659,950 (approximately US$5,000,000) (2020:A$ Nil).
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>19 of 21 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. CONTROLLED ENTITIES
| Country of Incorporation | Percentage<br><br> <br>Owned | ||
|---|---|---|---|
| June<br> 30<br><br> <br>2021 | December<br> 31 <br><br>2020 | ||
| Parent<br> Entity: | |||
| Integrated<br> Media Technology Limited | Australia | ||
| Subsidiaries of Integrated Media Technology Limited: | |||
| CIMC<br> Marketing Pty. Limited | Australia | 100% | 100% |
| Colour<br> Investment Limited | Hong<br> Kong | 100% | 100% |
| Cystar<br> International Limited | Hong<br> Kong | 100%<br> (indirect) | 100%<br> (indirect) |
| IMTE<br> Limited<br><br> (Formerly<br> known as: Great Gold Investment Limited) | Hong<br> Kong | 100% | 100% |
| GOXD<br> International Limited | Hong<br> Kong | 80%<br> (indirect) | 80%<br> (indirect) |
| Smart<br> (Zhenjiang) Intelligent Technology Co., Limited<br><br> (Formerly<br> known as: Smart (Shenzhen) Technology Limited) | P.R.C | 100%<br> (indirect) | 100%<br> (indirect) |
| Smartglass<br> Limited | Hong<br> Kong | 100% | 100% |
| Sunup<br> Holdings Limited | Hong<br> Kong | 51% | 51% |
| Sunup<br> Korea Limited | Hong<br> Kong | 51%<br> (indirect) | 51%<br> (indirect) |
| Binario<br> Limited | British<br> Virgin Islands | 100% | 100% |
| Cystar<br> International (Shenzhen) Limited | P.R.C. | 100%<br> (indirect) | 100%<br> (indirect) |
| Digital<br> Media Technology Limited | Malaysia | 100%<br> (indirect) | 100%<br> (indirect) |
| Greifenberg<br> Capital Limited* | Hong<br> Kong | 60%<br> (direct) | - |
*Acquired during the period
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>20 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26. RELATED PARTY TRANSACTIONS
Transactions with related parties include the following:
(a) Transactions with key management personnel
The total remuneration paid or payable to the directors and senior management of the Group during the period are as follows:
| Group | ||
|---|---|---|
| Period<br> ended<br><br> <br>June<br> 30<br><br> <br>2021 | Period<br> ended<br><br> <br>June<br> 30<br><br> <br>2020 | |
| A$ | A$ | |
| Short<br> term benefits ^(Remark 1)^ | 923,321 | 791,742 |
| Post-employment<br> benefits | 3,027 | 3,532 |
| 926,348 | 795,274 |
Remark 1: Included in short term benefits for directors and officers included payments of A$274,755 (US$210,000) to a service company owned by the Company Secretary for the provision of Chief Executive Officer and Chief Financial Officer services during the period.
| (b) | Other<br> related party transactions |
|---|
During the period, the Group has the following material transactions with its related parties:
| June<br> 30<br><br> <br>2021 | June<br> 30<br><br> <br>2020 | |
|---|---|---|
| A$ | A$ | |
| General<br> consultancy and management fees paid to a related party ^(Remark 1)^ | - | 282,971 |
| Purchase<br> of products from related parties ^(Remark 1)^ | - | 8,689 |
| Purchase<br> of plant and equipment from related parties ^(Remark 1)^ | - | - |
| Company<br> Secretarial and CFO fee paid to a related party ^(Remark 2)^ | 274,155 | 319,772 |
| Purchase<br> of products from a related party ^(Remark 3)^ | - | 274,417 |
Remark 1: Entities controlled over by former director, Dr. Herbert Ying Chiu LEE. The consultancy and management services transactions are carried at the current market value in the ordinary course of business.
Remark 2: An entity controlled by Mr. Cecil Ho, Company Secretary and CFO for providing professional services.
Remark 3: An entity controlled by Mr. Zhang Wuhua, our director of the Company. The transactions are carried at the current market value in the ordinary course of business.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>21 of 22 |
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INTEGRATED MEDIA TECHNOLOGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
27. CASH FLOW INFORMATION
| Group | ||
|---|---|---|
| Period<br> ended<br><br> <br>June<br> 30<br><br> <br>2021 | Period<br> ended<br><br> <br>June<br> 30<br><br> <br>2020 | |
| A$ | A$ | |
| CASH<br> FLOWS FROM CHANGES IN WORKING CAPITAL | ||
| (Increase)<br> / Decrease in assets: | ||
| Other<br> assets | (197,222) | 11,029 |
| Inventories | 1,517 | (117,956) |
| Trade<br> and other receivables | 32,946 | (7,001) |
| (Decrease)/<br> Increase in liabilities: | ||
| Trade<br> and other liabilities | (896,257) | 910,785 |
| NET<br> CASH FLOWS FROM CHANGES IN WORKING CAPITAL | (1,059,016) | 796,857 |
28. RECLASSIFICATION
Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform to the presentation of the current period condensed consolidated financial statements. These reclassifications had no effect on the previously reported net loss.
29. EVENTS OCCURRING AFTER THE REPORTING DATE
Sales of 888,888 ordinary shares
On July 6, 2021, the Group entered into three Securities Purchase Agreements ("SPA") with three accredited investors ("Investors") for the total sale of 888,888 ordinary shares of, no par value, of the Company ("Ordinary Shares") at a price of US$3.15 per share for a total subscription proceeds of US$2,800,000 (the "Cash Offerings"). The Cash Offerings will generate net cash proceeds of approximately US$2,765,000 after deducting estimated expenses in connection with the offering. The Company intends to use the net cash proceeds for the purchase of equipment for the Company's electronic glass business and working capital.
| Integrated<br>Media Technology Limited | Interim Report | For the six months ended June 30, 2021 | Page<br>22 of 22 |
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