TIDMSEE
RNS Number : 0874U
Seeing Machines Limited
31 March 2021
31 March 2021
Seeing Machines Limited
("Seeing Machines" or the "Company)
Half year results and financial report
Seeing Machines Limited (AIM: SEE), the advanced computer vision
technology company that designs AI-powered operator monitoring
systems to improve transport safety, today publishes its unaudited
results and financial report for the six months to 31 December 2020
("H1 2021").
Financial Highlights:
-- Operational revenue of A$18.1m (H1 2020: A$15.8m) reflecting
comparative growth of 15% on previous period. Underlying revenue
growth using constant currencies is 19% year on year (exchange rate
as at 1 July 2020).
o Aftermarket (Fleet and Off-Road) revenue grew by 17% to A$15m
(H1 2020: A$12.9m)
o Annualised Recurring Revenues including royalties of A$15.5m,
representing growth of 17.4% (H1 2020: A$13.2m)
o OEM (Automotive and Aviation) revenue of A$3.1m (H1 2020:
A$2.97m), representing a 5% increase on previous period
-- Net loss of A$16.8m, representing an improvement of 33%
compared with the same period last year (H1 2020: A$24.9m)
-- Cash at 31 December 2020 of A$52.3m (31 December 2019: A$47.4m)
-- Range of cost-saving initiatives, introduced through height
of COVID-19 pandemic, has resulted in improved cost base management
aimed at contributing to better operational performance and
improved cash balance.
OEM Highlights:
-- Driver Monitoring System (DMS) technology now firmly
established as fundamental to improved safety on roads, underpinned
by regulation and standards, as well as to the increasingly smart
vehicle interior for carmakers;
-- The number of active automotive RFQs (Requests For Quotes)
requesting DMS has increased accordingly across major automotive
markets;
-- Cadillac Escalade by General Motors, is now available on
roads with Driver Attention System featuring Seeing Machines
technology, bringing total current production vehicles to five,
aross three OEM programs;
-- Automotive three-pillar embedded product strategy launched to
support carmakers with a range of integration options for DMS;
-- Seeing Machines now formally working with a range of
semi-conductor companies including Qualcomm Technologies and
Omnivision Technologies to extend the deliver of its DMS.
Aftermarket Highlights:
-- Max Verberne appointed to lead the Aftermarket business,
bringing a wealth of industry understanding having led telematics
businesses for over ten years including with Radius Telematics
Australia and Ctrack by Inseego, and has previously managed
divisions and channels for Siemens across Australia and New
Zealand;
-- Business continues to grow despite challenging global
conditions as Guardian hardware sales remain consistent with
ongoing momentum around safety technology in commercial transport
and logistics, and installation rates in Southern Hemisphere,
accelerate;
-- Guardian connections as at 31 December 2020 of 26,597
represents growth in installed base of over 3,000 units in the six
months prior, contributing to unrivalled set of naturalistic
driving data which now exceeds 6.3 billion kilometres and underpins
ongoing development of the Company's DMS platform technology.
Investment Highlights:
-- Investment by leading US based insititutional investors has
strengthened Seeing Machines' balance sheet and positioned the
Company to initiate a range of strategies to support incremental
growth objectives across its key transport markets.
Outlook:
Seeing Machines continues to trade in line with expectations for
FY2021.
Guardian connections are expected to accelerate as COVID-19
challenges subside with the global vaccine rollout and H2 2021 is
expected to see an incremental growth in Aftermarket related
revenue.
As the Company expects to be in production with existing OEM
customers on more than 30 distinct car models within the next two
calendar years, the current makeup of Automotive revenue is set to
change from NRE (Non-Recurring Revenue) to signficantly higher
margin based royalty revenue.
Paul McGlone, CEO of Seeing Machines commented: "The first half
of FY2021 has been pleasing and we are buoyed by the progress in
Fleet, as well as the significant increase in RFQ activity in
Automotive across key markets as carmakers ready themselves for
mounting safety standards and technology advances inside the cabin,
all supported by camera-based DMS. We are now in production on five
car models, working across three OEMs, and that is set to ramp up
signficantly over the coming two years.
"Further, I'm delighted with the interest we are seeing from
both UK and US based institutional investors, as DMS becomes more
and more relevant across all key Seeing Machines transport sectors.
We are now positioned to look beyond the near term and leverage our
strengthened balance sheet to grow company opportunities across
core markets."
Enquiries:
Seeing Machines Limited +61 2 6103 4700
Paul McGlone - CEO
Sophie Nicoll - Corporate Communications
Cenkos Securities plc (Nominated Adviser and
Broker)
Neil McDonald
Pete Lynch +44 131 220 6939
Stifel Nicolaus Europe Limited (Joint Broker) +44 20 7710 7600
Alex Price
Nick Adams
Lionsgate Communications (Media Enquiries) +44 7791 892509
Jonathan Charles
Seeing Machines (LSE: SEE), a global company founded in 2000 and
headquartered in Australia, is an industry leader in vision-based
monitoring technology that enable machines to see, understand and
assist people. Seeing Machines' technology portfolio of AI
algorithms, embedded processing and optics, power products that
need to deliver reliable real-time understanding of vehicle
operators. The technology spans the critical measurement of where a
driver is looking, through to classification of their cognitive
state as it applies to accident risk. Reliable "driver state"
measurement is the end-goal of Driver Monitoring Systems (DMS)
technology. Seeing Machines develops DMS technology to drive safety
for Automotive, Commercial Fleet, Off-road and Aviation. The
company has offices in Australia, USA, Europe and Asia, and
supplies technology solutions and services to industry leaders in
each market vertical.
www.seeingmachines.com
Review of Operations
Financial Results
As reported at the end of FY2020, the Company has identified two
key operating segments, OEM and Aftermarket, reflecting the
different paths to market for our products. The OEM segment
includes the Automotive and Aviation businesses which generate
largely license based revenue, channeled through Tier 1 customers.
The Aftermarket segment includes Fleet and Off-Road and generates
revenue from a mix of direct and indirect customers who retro-fit
Seeing Machines technology into commercial vehicles.
The Company's total sales revenue for H1 FY2021 (excluding
foreign exchange gains and finance income) increased by 14.6% to
A$18.1m (H1 FY2020: A$15.8m).
Business unit H1FY21 H1FY20 Variance
$'000 $'000 %
OEM 3,103 2,965 5
Aftermarket 15,040 12,866 17
Sales Revenue 18,143 15,831 15
Monitoring services revenue in Aftermarket grew by more than 42%
to A$5.8m for the half year, compared to
A$4.1m for the same period last year. Installed Guardian units
increased by over 3,000 to 26,597 connected units representing a
15.6% growth in connections over the six month period (FY20: 23,000
units), demonstrating ongoing momentum for Aftermarket, despite the
challenges posed by COVID-19.
Total OEM revenue increased 5% to A$3.1m compared to the same
period last year (H1 FY2020: A$3m).
Currently, OEM revenue is primarily made up of Non-recurring
Engineering (NRE), which is revenue provided by OEMs to fund the
development of DMS technology solutions and feature sets for their
specific requirements. Over the next few years, the nature of OEM
revenue will change to consist primarily of royalty revenue, and
will increase significantly as OEMs begin mass production on
vehicles under existing Seeing Machines DMS technology program
awards.
The Australian Government COVID-19 Grant, JobKeeper, increased
other income by A$1.6m to A$1.7m (2019: A$0.3m). Seeing Machines
qualified for the initial phase of the JobKeeper Grant which ran
from 1 March 2020 to 27 September 2020. Additional COVID-19 cost
reduction initiatives reduced the cost base by A$3.5m for the
period with a range of permanent (A$1.6m) and temporary initiatives
(A$1.9m) which included a temporary 4-day work week, CEO and
Director fee reductions and enforced travel restrictions. Of the
total A$12m identified COVID cost-saving initiatives, the Company
has achieved A$8.4m, in permanent and temporary savings and grants
to date with remaining savings expected to be achieved by end of
FY2021.
On 23 October 2020, Seeing Machines issued 372,000,000 new
ordinary shares of no par value each ("New Ordinary Shares") to
Federated Hermes, a well known US institutional investor, at a
price of 4.10 pence per New Ordinary Share, raising gross proceeds
of approximately US$20,000,000 (the "Purchase"). Subsequent to 31
December 2020, on 22 March 2021, Seeing Machines issued an
additional 68,403,430 New Ordinary Shares to another US based
investor, Toronado Fund, at a premium price of 10.50 pence per New
Ordinary Share, raising gross proceeds of approximately
US$10,000,000. The net proceeds of these Placings strengthen the
Company's
balance sheet as well as facilitating a range of incremental
growth initiatives.
Cash and cash equivalents at 31 December totaled A$52.4m
(H1FY20: A$47.4m).
We highlight this report is unaudited. There is no requirement
for the interim financial statements to be subject to audit review
by the external auditor and accordingly no audit or review has been
conducted.
Interim Consolidated Statement of Financial Position -
Unaudited
31 Dec 30 Jun
AS AT Notes 2020 2020
Unaudited Reviewed
A$000 A$000
---------------------------------------- -------------------- ---------------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9 52,361 38,138
Trade and other receivables 8 9,592 9,584
Inventories 7 4,102 4,743
Current financial assets 8 332 512
Other current assets 3,480 4,233
---------------- ------------
TOTAL CURRENT ASSETS 69,867 57,210
---------------- ------------
NON-CURRENT ASSETS
Property, plant & equipment 6 3,171 3,208
Right-of-use assets 3,847 4,371
Intangible assets 10 1,084 899
---------------- ------------
TOTAL NON-CURRENT ASSETS 8,102 8,478
---------------- ------------
TOTAL ASSETS 77,969 65,688
---------------- ------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 8 7,651 7,874
Provisions 3,897 3,763
Current financial liabilities 8 378 553
Contract liabilities 647 263
Interest-bearing loans and borrowings 8 1,141 1,057
TOTAL CURRENT LIABILITIES 13,714 13,510
---------------- ------------
NON-CURRENT LIABILITIES
Interest-bearing loans and borrowings 8 5,196 5,766
Provisions 186 215
---------------- ------------
TOTAL NON-CURRENT LIABILITIES 5,382 5,981
---------------- ------------
TOTAL LIABILITIES 19,096 19,491
---------------- ------------
NET ASSETS 58,873 46,197
================ ============
EQUITY
Contributed equity 244,730 217,204
Accumulated losses (201,454) (184,638)
Other reserves 15,597 13,631
---------------- ------------
Equity attributable to equity holders
of the parent 58,873 46,197
---------------- ------------
TOTAL EQUITY 58,873 46,197
================ ============
The above interim consolidated statement of financial position
should be read in conjunction with the accompanying notes.
Interim Consolidated Statement of Comprehensive Income -
Unaudited
FOR THE HALF-YEARED 31 DECEMBER 2020 2019
Notes Unaudited Reviewed
A$000 A$000
------------------------------------------- -------- ---------------- -----------------
Sale of goods and licence fees 9,159 8,721
Rendering of services 8,981 6,947
Research revenue 3 163
---------------- -----------------
Revenue 3 18,143 15,831
---------------- -----------------
Cost of sales (11,804) (10,221)
---------------- -----------------
Gross profit 4 6,339 5,610
---------------- -----------------
Net (loss)/gain in foreign exchange (2,002) 433
Finance income 196 569
Other income 1,672 323
Expenses
Research and development expenses 5 (8,853) (12,016)
Customer support and marketing expenses (3,194) (4,328)
Operations expenses (3,476) (5,463)
General and administration expenses (7,186) (9,769)
Finance costs (267) (307)
---------------- -----------------
Loss before tax (16,771) (24,948)
---------------- -----------------
Income tax expense - (4)
---------------- -----------------
Loss after income tax (16,771) (24,952)
Loss for the period
Attributable to:
Equity holders of the parent (16,771) (24,952)
---------------- -----------------
Other comprehensive (loss)/ income - to
be
reclassified subsequently to profit or
loss
Exchange differences on translation of
foreign operations (22) 130
---------------- -----------------
Other comprehensive (loss)/income net
of tax (22) 130
---------------- -----------------
Total comprehensive loss (16,793) (24,822)
---------------- -----------------
Total comprehensive loss attributable
to:
Equity holders of the parent 16,793 24,822
================ =================
Total comprehensive loss for the period (16,793) (24,822)
================ =================
Earnings per share for loss attributable
to the ordinary equity holders of
the parent:
Basic earnings per share (0.01) (0.02)
Diluted earnings per share (0.01) (0.02)
The above interim consolidated statement of comprehensive income
should be read in conjunction with the accompanying notes.
Interim Consolidated Statement of Changes in Equity -
Unaudited
Employee
Foreign Equity
Currency Benefits
Contributed Treasury Accumulated Translation & Other Total
Equity Shares Losses Reserve Reserve Equity
--------------------------
A$000 A$000 A$000 A$000 A$000 A$000
-------------------------- ------------- --------- ----------- ------------- ---------- --------
As at 1 July 2019 217,204 (1,109) (137,928) (1,738) 11,051 87,480
------------- --------- ----------- ------------- ---------- --------
Loss for the half
year - - (24,952) - - (24,952)
Other comprehensive
income - - - 130 - 130
------------- --------- ----------- ------------- ---------- --------
Total comprehensive
income - - (24,952) 130 - (24,822)
Transactions with
owners in their capacity
as owners:
Reclassification of
treasury shares - 1,109 - - (1,109) -
Shares issued 263 - - - - 263
Employee shares held
in trust - - - - 1,680 1,680
------------- --------- ----------- ------------- ---------- --------
At 31 December 2019
- Audited 217,467 - (162,880) (1,608) 11,622 64,601
============= ========= =========== ============= ========== ========
As at 1 July 2020 217,204 - (184,638) (1,516) 15,147 46,197
Loss for the period - - (16,771) - - (16,771)
Other comprehensive
income - - - (22) - (22)
------------ ------------------ ------- --------- --------
Total comprehensive
loss - - (16,771) (22) - (16,793
------------ ------------------ ------- --------- ----------
Transactions with
owners in their capacity
as owners:
Share-based payments
(Note 12) - - - - 1,943 1,943
Shares issued 27,526 - - - - 27,526
Employee shares held - - - - - -
in trust
------------ ------------------ ------- --------- ----------
At 31 December 2020
- Unaudited 244,730 - (201,409) (1,538) 17,090 58,873
============ ================== ======= ========= ==========
The above interim consolidated statement of changes in equity
should be read in conjunction with the accompanying notes.
Interim Consolidated Statement of Cash Flows - Unaudited
31 Dec 31 Dec
2020 2019
Unaudited Reviewed
-------------------------------------------
Notes A$000 A$000
------------------------------------------------------------- ---------- ---------
Operating activities
Receipts from customers (inclusive
of GST) 18,519 21,082
Payments to suppliers (inclusive
of GST) (32,556) (36,512)
Receipt of government grants 1,565 -
Interest received 45 367
Interest paid (267) (307)
Income tax paid - (4)
---------- ---------
Net cash flows used in operating
activities (12,694) (15,374)
---------- ---------
Investing activities
Purchase of property, plant and equipment 6 (92) (681)
Payments for intangible assets (190) (233)
Purchase/(maturity) of term deposits 180 9,049
---------- ---------
Net cash flows (used in)/from investing
activities 102 8,135
---------- ---------
Financing activities
Proceeds from issue of new shares 28,160 -
Cost of capital raising (634) -
Payment of lease liabilities 8 - (387)
Repayment of borrowings (700) (292)
---------- ---------
Net cash flows from/(used in) financing
activities 26,826 (679)
---------- ---------
Net foreign exchange difference 193 459
Cash and cash equivalents at 1 July 38,138 54,809
Net increase/(decrease) in cash and
cash equivalents 14,030 (7,918)
---------- ---------
Cash and cash equivalents at 31 December 9 52,361 47,350
========== =========
The above interim consolidated statement of cash flows should be
read in conjunction with the accompanying notes.
Notes to the interim consolidated financial statements
1 Corporate information
The interim consolidated financial statements of Seeing Machines
Limited and its subsidiaries (collectively, the Group) for the
half-year ended 31 December 2020 were authorised for issue in
accordance with a resolution of the directors on 25 March 2021.
Seeing Machines Limited (the parent) is a company limited by
shares incorporated in Australia whose shares are publicly traded
on the AIM market of the London Stock Exchange.
2 Basis of preparation and changes to the Group's accounting policies
(a) Basis of preparation
The interim consolidated financial statements for the half year
ended 31 December 2020 have been prepared in accordance with AASB
134 Interim Financial Reporting in order to fulfil the reporting
requirements of Rule 18 of the London Stock Exchange's AIM Rules
for Companies issued July 2016.
The interim consolidated financial statements do not include all
the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's
annual consolidated financial statements as at 30 June 2020.
There is no requirement for the interim financial statements to
be subject to audit or review by the external auditor and
accordingly no audit or review has been conducted.
(b) New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the
interim consolidated financial statements are consistent with those
followed in the preparation of the Group's annual consolidated
financial statements for the year ended 30 June 2020, except for
the adoption of new standards effective as of 1 July 2020.
Several amendments and interpretations apply for the first time
in 2020, but do not have an impact on the interim consolidated
financial statements of the Group.
Amendments to IFRS 3: Definition of a Business
The amendment to IFRS 3 clarifies that to be considered a
business, an integrated set of activities and assets must include,
at a minimum, an input and a substantive process that together
significantly contribute to the ability to create output.
Furthermore, it clarified that a business can exist without
including all of the inputs and processes needed to create outputs.
These amendments had no impact on the consolidated financial
statements of the Group, but may impact future periods should the
Group enter into any business combinations.
Amendments to IFRS 7, IFRS 9 and IAS 39: Interest Rate Benchmark
Reform
The amendments to IFRS 9 and IAS 39 Financial Instruments:
Recognition and Measurement provide a number of reliefs, which
apply to all hedging relationships that are directly affected by
interest rate benchmark reform. A hedging relationship is affected
if the reform gives rise to uncertainties about the timing and or
amount of benchmark-based cash flows of the hedged item or the
hedging instrument. These amendments had no impact on the
consolidated financial statements of the Group as it does not have
any interest rate hedge relationships.
Amendments to IAS 1 and IAS 8: Definition of Material
The amendments provide a new definition of material that states
"information is material if omitting, misstating or obscuring it
could reasonably be expected to influence decisions that the
primary users of general purpose financial statements make on the
basis of those financial statements, which provide financial
information about a specific reporting entity."
The amendments clarify that materiality will depend on the
nature or magnitude of information, either individually or in
combination with other information, in the context of the financial
statements. A misstatement of information is material if it could
reasonably be expected to influence decisions made by the primary
users. These amendments had no impact on the consolidated financial
statements of, nor is there expected to be any future impact to the
Group.
Conceptual Framework for Financial Reporting issued on 29 March
2018
The Conceptual Framework is not a standard, and none of the
concepts contained therein override the concepts or requirements in
any standard. The purpose of the Conceptual Framework is to assist
the IASB in developing standards, to help prepares develop
consistent accounting policies where there is no applicable
standard in place and to assist all parties to understand and
interpret the standards.
The revised Conceptual Framework includes some new concepts,
provides updated definitions and recognition criteria for assets
and liabilities and clarifies some important concepts.
These amendments had no impact on the consolidated financial
statements of the Group.
Classification of operating expenses
The Group has revised the presentation of operating expenses
within the categories of research and development, customer support
and marketing, operations and general and administration.
Management believes this provides more relevant information to
stakeholders as it more fairly reflects the split between business
functions and key activity drivers. Comparatives have been restated
to reflect this change in presentation.
2 Revenue from contracts with customers
Set out below is the disaggregation of the Group's revenue from
contracts with customers:
For the half year ended 31 December 2020
Segments OEM Aftermarket Total
Unaudited Unaudited Unaudited
A$000 A$000 A$000
----------------- ------------ -------------
Type of goods or service
Hardware and Installations 221 6,679 6,900
Non-recurring Engineering 2,101 797 2,898
Paid Research 3 - 3
Driver Monitoring - 5,811 5,811
Licensing 778 1,753 2,531
----------------- ------------ -------------
Total revenue from contracts with customers 3,103 15,040 18,143
================= ============ =============
Geographical markets
Australia 315 6,567 6,882
North America 50 5,370 5,420
Asia-Pacific (excluding Australia) 270 1,740 2,010
Europe 2,468 734 3,202
Other - 629 629
----------------- ------------ -------------
Total revenue from contracts with customers 3,103 15,040 18,143
================= ============ =============
Timing of revenue recognition
Goods and services transferred at a
point in time 1,002 6,679 7,681
Goods and services transferred over
time 2,101 8,361 10,462
----------------- ------------ -------------
Total revenue from contracts with customers 3,103 15,040 18,143
================= ============ =============
For the half year ended 31 December 2019
Segments OEM Aftermarket Total
Unaudited Unaudited
A$000 A$000 A$000
---------- ------------ -------
Type of goods or service
Hardware and Installations 717 6,321 7,038
Non-recurring Engineering 1,998 - 1,998
Paid Research 153 568 721
Driver Monitoring - 4,065 4,065
Licensing 87 1,922 2,009
---------- ------------ -------
Total revenue from contracts with customers 2,955 12,876 15,831
========== ============ =======
Geographical markets
Australia 108 4,598 4,706
North America 365 5,100 5,465
Asia-Pacific (excluding Australia) 196 1,079 1,275
Europe 2,286 446 2,732
Other - 1,653 1,653
---------- ------------ -------
Total revenue from contracts with customers 2,955 12,876 15,831
========== ============ =======
Timing of revenue recognition
Goods and services transferred at a
point in time 957 6,563 7,520
Goods and services transferred over
time 1,998 6,313 8,311
---------- ------------ -------
Total revenue from contracts with customers 2,955 12,876 15,831
========== ============ =======
The Group recognised impairment losses on receivables and
contract assets arising from contracts with customers, included
under Administrative expenses in the statement of profit or loss,
amounting to A$27,000 for the half year ended 31 December 2020
(H1FY20:A$241,000). The company has reclassified comparative
revenues into the two key operating segments, OEM and Aftermarket,
reflecting the different paths to market for our product.
3 Segment information
The following tables present revenue and gross profit
information for the Group's operating segments for the half year
ended 31 December 2020 and 2019, respectively:
OEM Aftermarket Total
FOR THE HALF YEARED 31 DECEMBER 2020
A$000 A$000 A$000
------------------------------------------- ----------- ------------- ----------
Segment revenue 3,103 15,040 18,143
----------- ------------- ----------
Segment gross profit 1,174 5,165 6,339
=========== ============= ==========
OEM Aftermarket Total
FOR THE HALF YEARED 31 DECEMBER 2019
A$000 A$000 A$000
------------------------------------------- ----------- ------------- ----------
Segment revenue 2,955 12,876 15,831
----------- ------------- ----------
Segment gross profit 1,325 4,285 5,610
=========== ============= ==========
4 Research and development expenses
The total research and development expenses in H1FY20 was
$8,853,287 (H1FY19: $12,015,664). Research and development expense
relates to ongoing investment in the group's core technology.
5 Property, plant and equipment
Acquisitions and disposals
During the half year ended 31 December 2020, the Group acquired
assets with a cost of A$92,000 (H1FY20: A$681,284).
No assets were disposed by the Group during the half year ended
31 December 2020.
6 Inventories
During the half year ended 31 December 2020, the Group wrote
down stock to the value of A$343,000 which had been provided for
during FY20.
Consolidated entity
31 Dec 30 Jun
2020 2020
Unaudited Audited
A$000 A$000
---------- --------
Finished goods (at lower of cost and net realisable
value) 4,184 5,168
Write-down of inventories for the period (82) (425)
---------- --------
Total inventories at the lower of cost and
net realisable value 4,102 4,743
========== ========
7 Financial assets and financial liabilities
Set out below, is an overview of financial assets, other than
cash and short-term deposits, held by the Group as at 31 December
2020 and 30 June 2020:
31 Dec 30 Jun
Unaudited Audited
--------------- -----------
A$000 A$000
Debt instruments at amortised cost
Trade and other receivables 9,592 9,584
Current Financial Assets 332 512
--------------- -----------
Total 9,924 10,096
--------------- -----------
Total current 9,924 10,096
--------------- -----------
Set out below is an overview of financial liabilities held by
the Group as at 31 December 2020 and 30 June 2020:
31 Dec 30 Jun
Unaudited Audited
A$000 A$000
---------- --------
Financial liabilities at amortised cost
Trade and other payables 7,651 7,874
Financial guarantee contracts 378 553
Non-current interest bearing loans and borrowings
Lease liabilities 5,196 5,766
Current interest bearing loans and borrowings
Lease liabilities 1,141 1057
---------- --------
Total 14,377 15,250
---------- --------
Total current 9,181 9,484
---------- --------
Total non-current 5,196 5,766
---------- --------
8 Cash and cash equivalents
For the purpose of the interim condensed statement of cash
flows, cash and cash equivalents are comprised of the
following:
31 December 30 June
2020 2020
Unaudited Audited
A$000 A$000
----------- --------
Cash at bank and in hand 52,361 38,138
Total cash and cash equivalents 52,361 38,138
=========== ========
9 Intangible assets
During the half year ended 31 December 2020, the Group purchased
intangibles totalling A$190,000 (H1FY20: A$233,042). These
purchases are related to trademark and patent applications. There
were no disposals of intangible assets during the period and the
net movement in intangible assets net of amortisation was
($183,799), relating to amortisation of capitalised development
costs.
10 Dividends paid
No dividends or distributions have been made to members during
the half year reporting period and no dividends or distributions
have been recommended or declared by the directors in respect of
the half year reporting period.
11 Share-based payments
LTI 2020 - Performance Rights or share options offers -
Executive and key staff
From 1 July 2015, senior staff and other key staff are offered
long term incentive (LTI) performance rights or share options.
Under this structure, the staff are only able to exercise the
rights, and have new ordinary shares issued to them, if any
performance, market and vesting conditions are met. These
conditions typically include a performance condition requiring the
staff member to achieve a minimum "meets expectations" rating and
some rights have included a market condition in the form of a
minimum Target Share Price (TSP). The vesting period ranges from 9
months to 5 years from the end of the relevant financial year or
grant date. Performance rights or options are often offered as part
of the annual remuneration review and may be offered at other
times. Any offer of performance rights or options requires Board
approval and, when granted, is announced to the market.
In November 2020 the Company awarded a total of 29,964,495
performance rights in respect of ordinary shares to
Executive and key staff to be issued at nil cost. The rights
were valued at the spot rate of the shares at grant date, and the
value is amortised over the vesting period. The rights vest
annually over 3 years in equal tranches with the first vesting date
being 1 July 2021 and require the employee to remain continuously
employed by the Company until each relevant vesting date. If an
employee leaves before the rights vest and the service condition is
therefore not met, the rights lapse.
In some cases, for 'good leavers', determined on a discretionary
basis by management, options are prorated for service in the
current period and that portion are vested on termination, and the
remaining rights are cancelled.
There is no cash settlement of the rights.
2020 - Ordinary Shares
In November 2020 the Company issued a total of 1,604,166
ordinary shares to non-executive directors in lieu of some cash
remuneration for FY 2020. The shares were valued at grant date at
GBP0.04. The number of Ordinary Shares received by each individual
was calculated at an issue price of 4 pence per Ordinary Share,
being the average daily VWAP over the 5 trading days to 30
September 2019.
12 Commitments
At 31 December 2020, the Group had commitments of A$23,674,000
(H1FY20: A$27,781,500) relating to the manufacturing contract for
the Group's Guardian 2.1 product to January 2022.
13 Related party disclosures
The following table provides the total amount of transactions
that have been entered into with related parties during the half
year ended 31 December 2020 and 2019:
Balance Granted as Acquired Balance
1-Jul Remuneration or 31-Dec
sold for
cash
'000 '000 '000 '000
------- ------------- --------- -----------
Director shares:
Directors' securities 2020 6,837 1,604 450 8,441
Directors' securities 2019 5,031 1,222 233 6,387
14 Events after the reporting period
On 22 March 2021, Seeing Machines issued 68,403,430 new ordinary
shares of no par value each (the "New Ordinary Shares") to US based
Toronado Capital Management, at a price of 10.50 pence per New
Ordinary Share, raising gross proceeds of approximately
US$10,000,000 (the "Purchase").
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END
IR KZGFFKMMGMZG
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March 31, 2021 02:00 ET (06:00 GMT)
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