Core Points - Integrated Media Technology Limited (IMTE) has received a delisting determination letter from Nasdaq due to non-compliance with filing requirements, specifically for failing to timely file its Form 20F for the year ended December 31, 2024 [1][2] - The company was granted an exception until October 29, 2025, to regain compliance but failed to meet the terms of this exception [2] - IMTE intends to request a hearing before the Nasdaq Hearings Panel, which will temporarily stay any suspension or delisting action for 15 days from the date of the request [3] Company Overview - IMTE is an Australian company involved in trading Halal products, manufacturing and selling nano coated plates for filters, and producing electronic glass [4]

Acquisitions and Divestitures - In 2023, the company acquired Itana Energy Pty Ltd to enter the new energy products sector under the Admiral Energy brand for the Asia Pacific region [165]. - The company divested from its China and Hong Kong businesses in 2022, reducing its equity interest in its financial research business to 23.8% [165]. - The company completed the acquisition of Marvel Digital Limited in 2015 for A$5,216,213, settling the consideration by issuing 26,081,065 shares at A$0.20 per share [167]. - In July 2023, the company acquired 100% equity interests in Teko Energy Pty Ltd for US$750,000, paid by issuing 3,000,000 ordinary shares at US$0.25 per share [186]. - The company acquired 51% of Sunup Holdings Limited for a total consideration of US$1,500,000, focusing on manufacturing nano-coated plates for air filters [197]. - The company completed the sale of its subsidiary eGlass Technologies Ltd for US$6.8 million, with the purchaser intending to list eGlass on the ASX within two years [182]. - The company disposed of its electronic glass business in China for US$6,800,000, realizing a gain on disposal of A$51,143 [204]. Financial Performance - The company reported total revenues of US$373,680 for the year ended December 31, 2023, compared to US$757,027 in 2022 [193]. - For the year ended December 31, 2023, the company reported revenues of $373,676, an increase of $9,271 or 2.54% compared to $364,405 in 2022, primarily from the sale of Halal products [268]. - The cost of sales for 2023 was $261,566, representing 70.0% of net revenues, a decrease from $475,546 or 130.5% in 2022 [267]. - The company incurred a total operating loss before income tax of $(20,037,431) for 2023, compared to $(11,578,149) in 2022 [267]. - The net loss for 2023 was $(18,350,112), which is an increase from $(10,901,539) in 2022, reflecting a significant operational challenge [267]. - The company has recorded losses of $18,350,112, $10,901,539, and $5,091,918 for the fiscal years ended December 31, 2023, 2022, and 2021 respectively [295]. Cash Flow and Financing - The company generated net cash proceeds of approximately US$920,000 from a securities purchase agreement in February 2020 [174]. - The company raised a total of US$10 million through the issuance of convertible notes, which were converted into 3,205,128 shares at a fixed conversion price of US$3.12 per share [180]. - In March and April 2022, the company sold 1,431,788 ordinary shares at US$4.50 per share, generating approximately US$6.4 million for expansion projects [181]. - From July to December 2022, the company raised US$5.5 million through convertible notes, which were converted into shares upon eGlass's admission to the ASX [183]. - The company raised US$15 million through convertible notes with a conversion price of US$1.42 per share, maturing in two years [188]. - Net cash provided by operating activities for the year ended December 31, 2023, was $2,840,058, a recovery from net outflows of $(17,183,849) in 2022 [300]. - Net cash outflows in investing activities were $14,998,240 in 2023, primarily due to deposits for lamination production lines [301]. - Net cash inflows from financing activities were $12,783,427 in 2023, attributed to share issuance and convertible notes [302]. Operational Developments - The company invested in a lamination glass project and a new nano-coated plate filter project to broaden its revenue base [165]. - The company stopped the marketing and sales of 3D display products in 2021 due to the pandemic's adverse effects on retail and advertising sectors [165]. - The company aims to produce approximately 160,000 m of laminated glass annually with its two lamination lines [209]. - The company has started limited manufacturing of air filter plates in 2020 and completed its proprietary design of air purifier products in 2022 [220]. - The company plans to seek manufacturing and distribution partners as part of its growth strategy for its nano-coated plate products [221]. - The company plans to invest in air purifiers targeting specific markets such as baby care and healthcare, and will explore manufacturing water filters for home use and food sanitary water treatment industries [222]. Market Strategy and Future Plans - The company plans to market its generation 2 air filter/purifiers in Korea, the United States, Europe, and Asia in 2024 [220]. - The company is in the process of identifying a manufacturing partner in Vietnam for its Ohho products, targeting sales in 2024 [197]. - The company plans to build its own brands for air purifiers, halal, and switchable glass products upon market launch [234]. - The halal products business is being developed through its subsidiary WISE, with a focus on establishing a global supply chain and halal certification, particularly in China following the lifting of travel restrictions [225][226]. - The halal products market is growing in Asia and Europe, driven by increased demand for halal food and the influx of immigrants from the Middle East [231]. - The company plans to focus on developing a network of suppliers for both halal and non-halal products in 2024, aiming to leverage a direct sales network with over 10,000 agents in Malaysia [265]. Governance and Management - The management team saw changes with the appointment of new directors and co-CEOs in 2023, enhancing leadership capabilities [306]. - The company follows ASX Corporate Governance Principles, ensuring a majority of independent directors on the board and compliance with NASDAQ requirements [340]. - The Audit Committee consists of three independent members, meeting at least twice a year to oversee financial reporting and risk management [344]. - The company has established a Nomination and Remuneration Committee consisting of a majority of independent directors [348]. - The company has established a formal remuneration policy based on financial performance and the success of product commercialization [324]. Employee and Compensation - Total executive compensation for fiscal year 2023 amounted to $423,187, with Mr. Xiaodong Zhang receiving $106,296 as the highest individual compensation [328]. - As of December 31, 2023, the company had 11 employees, a decrease from 15 employees as of December 31, 2022 [351]. - The company paid $228,400 in director remuneration for the year ended December 31, 2023 [361]. - The company has no employee share options issued and outstanding under the 2021 Employee Share Option Plan as of December 31, 2023 [331]. - There were no pension or retirement benefits accrued by the Group as of December 31, 2023, as these amounts were fully expensed [332].

Core Viewpoint - Integrated Media Technology Limited (IMTE) has received a deficiency letter from Nasdaq due to its failure to timely file its annual report for the year ended December 31, 2023, which affects its compliance with Nasdaq Listing Rule 5250(c)(1) [1][2]. Group 1: Compliance and Reporting - The company has until July 16, 2024, to submit a Compliance Plan to Nasdaq to regain compliance with the listing rules [2]. - If the Compliance Plan is accepted, Nasdaq may grant an extension until November 11, 2024, for the company to regain compliance [3]. - The delay in filing the annual report is attributed to the need for additional time for the independent registered public accounting firm to conduct an audit of the company's financial statements [3]. Group 2: Impact on Listing - The deficiency letter does not have an immediate impact on the listing of the company's ordinary shares on the Nasdaq Capital Market [4]. - The announcement is made in compliance with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of deficiency notifications [4]. Group 3: Company Overview - IMTE is engaged in various businesses, including the manufacturing of electronic glass, trading in Halal products, and the sale of new energy products and solutions [5].

[Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Loss](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Loss) [Profit and Loss Overview](index=3&type=section&id=Profit%20and%20Loss%20Overview) For the six months ended June 30, 2023, the company achieved a net profit of $163,585, a significant improvement from the $1,462,501 loss in the prior year, driven by product sales and a large gain from warrant value changes Profit and Loss Summary | Indicator | June 30, 2023 (USD) | June 30, 2022 (USD) | | :------------------------------------------------ | :------------------ | :------------------ | | Net Income | 304,208 | - | | Cost of Sales | (226,058) | - | | Gain from Fair Value of Derivative Financial Instruments | - | 1,658,274 | | Gain/(Loss) from Changes in Warrant Value | 2,367,292 | (863,426) | | Interest Income | 365,293 | 284,926 | | Other Income | 10,137 | 1,991 | | Depreciation and Amortization | (459,581) | (716,597) | | Employee Benefits Expense | (322,515) | (718,678) | | Finance Costs | (338,540) | (623,264) | | Professional and Consulting Fees | (820,400) | (514,286) | | Inventory Impairment Provision | (345,000) | - | | Allowance for Doubtful Debts | (133,433) | - | | Profit/(Loss) Before Tax | 163,585 | (1,462,501) | | Profit/(Loss) for the Period | 163,585 | (1,462,501) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 567,743 | (918,534) | | Profit/(Loss) for the Period Attributable to Non-Controlling Interests | (404,158) | (543,967) | | Basic and Diluted Earnings Per Share | 0.273 | (0.667) | - The company achieved a net profit of **$163,585** in H1 2023, compared to a loss of **$1,462,501** in H1 2022, primarily due to a **$2,367,292** gain from changes in warrant value[2](index=2&type=chunk) - In H1 2023, the company's revenue primarily stemmed from goods sales totaling **$304,208**, with no such revenue in H1 2022[2](index=2&type=chunk) [Unaudited Condensed Consolidated Statements of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) [Financial Position Overview](index=4&type=section&id=Financial%20Position%20Overview) As of June 30, 2023, total assets slightly decreased, but net assets increased, with a significant drop in cash and cash equivalents, an increase in trade and loan receivables, and a notable reduction in warrant liabilities Financial Position Summary | Indicator | June 30, 2023 (USD) | December 31, 2022 (USD) | | :-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :------------------ | :---------------------- | | **Assets** | | | | Cash and Cash Equivalents | 9,591 | 50,536 | | Trade Receivables | 745,272 | 580,582 | | Other Receivables | 1,337,783 | 2,039,517 | | Inventories | 3,687,836 | 4,195,077 | | Loan Receivable | 7,072,944 | 6,902,000 | | Total Current Assets | 20,311,492 | 21,280,068 | | Plant and Equipment | 1,838,903 | 2,233,393 | | Intangible Assets | 804,297 | 869,388 | | Investment in an Associate | 91,414 | 175,507 | | Total Non-Current Assets | 16,995,460 | 17,539,134 | | **Total Assets** | **37,306,952** | **38,819,202** | | **Liabilities** | | | | Trade and Other Payables | 726,665 | 698,493 | | Convertible Promissory Notes | 5,412,973 | 5,118,173 | | Derivative Financial Instruments | 1,677,178 | 1,677,178 | | Total Current Liabilities | 7,816,816 | 7,493,844 | | Warrant Liabilities | 40,979 | 2,408,271 | | **Total Liabilities** | **7,857,795** | **9,902,115** | | **Net Assets** | **29,449,157** | **28,917,087** | | **Equity and Reserves** | | | | Issued Capital | 66,601,053 | 66,232,568 | | Accumulated Losses | (39,622,361) | (40,190,104) | | Equity Attributable to Owners of the Company | 27,566,772 | 26,630,544 | | Non-Controlling Interests | 1,882,385 | 2,286,543 | | **Total Equity** | **29,449,157** | **28,917,087** | - As of June 30, 2023, total assets were **$37,306,952**, a slight decrease from **$38,819,202** as of December 31, 2022[4](index=4&type=chunk) - Cash and cash equivalents significantly decreased from **$50,536** at year-end 2022 to **$9,591** as of June 30, 2023[4](index=4&type=chunk) - Warrant liabilities significantly decreased from **$2,408,271** at year-end 2022 to **$40,979** as of June 30, 2023, contributing to a reduction in total liabilities[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) [Equity Changes Overview](index=5&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2023, total equity increased from **$28,917,087** at the beginning of the period to **$29,449,157**, primarily due to profit for the period and new ordinary share issuance Equity Changes Summary | Indicator | Balance as of January 1, 2023 (USD) | Balance as of June 30, 2023 (USD) | | :----------------------------------------- | :-------------------------- | :------------------------ | | Issued Capital | 66,232,568 | 66,601,053 | | Accumulated Losses | (40,190,104) | (39,622,361) | | Other Reserves | 588,080 | 588,080 | | Equity Attributable to Owners of the Company | 26,630,544 | 27,566,772 | | Non-Controlling Interests | 2,286,543 | 1,882,385 | | **Total Equity** | **28,917,087** | **29,449,157** | | **Profit/(Loss) for the Period Changes** | | | | Profit for the Period Attributable to Owners of the Company | - | 567,743 | | Loss for the Period Attributable to Non-Controlling Interests | - | (404,158) | | **New Ordinary Share Issuance** | | 368,485 | - In H1 2023, the company's total equity increased by **$532,070**, rising from **$28,917,087** to **$29,449,157**[6](index=6&type=chunk) - The equity increase is primarily attributable to a profit for the period of **$163,585** (of which **$567,743** is attributable to owners of the company) and **$368,485** from new ordinary share issuance[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) [Cash Flow Overview](index=5&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2023, operating cash outflows significantly decreased, investment cash outflows were zero, and financing cash inflows substantially declined, with cash and cash equivalents falling from **$50,536** to **$9,591** Cash Flow Summary | Indicator | June 30, 2023 (USD) | June 30, 2022 (USD) | | :----------------------------------------- | :------------------ | :------------------ | | Net Cash Outflow from Operating Activities | (409,430) | (6,967,002) | | Net Cash Outflow from Investing Activities | - | (11,317,506) | | Net Cash Inflow from Financing Activities | 368,485 | 18,206,470 | | Net Decrease in Cash and Cash Equivalents | (40,945) | (78,038) | | Cash and Cash Equivalents at Beginning of Period | 50,536 | 317,307 | | Cash and Cash Equivalents at End of Period | 9,591 | 239,269 | - In H1 2023, net cash outflow from operating activities was **$409,430**, a significant reduction from **$6,967,002** in H1 2022[7](index=7&type=chunk) - There were no cash outflows from investing activities in H1 2023, compared to a net outflow of **$11,317,506** in H1 2022, primarily for laminated production equipment deposits and plant and equipment purchases[7](index=7&type=chunk) - Net cash inflow from financing activities significantly decreased from **$18,206,470** in H1 2022 to **$368,485** in H1 2023, mainly due to reduced proceeds from share issuance[7](index=7&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation of Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=1.%20BASIS%20OF%20PREPARATION%20OF%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These unaudited condensed consolidated financial statements are prepared under IFRS IAS 34 "Interim Financial Reporting," using the accrual basis and historical cost, with fair value revaluation for selected non-current assets, financial assets, and liabilities, while the company addresses significant going concern uncertainties through equity and/or debt financing - The financial statements are prepared in accordance with IFRS IAS 34 "Interim Financial Reporting," using the accrual basis and historical cost method, with fair value revaluation for selected non-current assets, financial assets, and financial liabilities[8](index=8&type=chunk)[9](index=9&type=chunk) - As of June 30, 2023, the Group had accumulated losses of **$39,622,361** and cash outflows from operating activities of **$409,430**, indicating significant uncertainties that may cast substantial doubt on its ability to continue as a going concern[9](index=9&type=chunk)[10](index=10&type=chunk) - Management plans to continue raising funds through equity and/or debt securities and seek additional capital in public equity markets to support operations, product development, and strategic collaborations, addressing liquidity concerns[12](index=12&type=chunk) [Going Concern](index=7&type=section&id=Going%20Concern) The company faces significant going concern uncertainties due to accumulated losses and operating cash outflows, with management planning to sustain operations through ongoing financing and revenue generation, though success is not guaranteed - As of June 30, 2023, the Group had accumulated losses of **$39,622,361** and cash outflows from operating activities of **$409,430**, indicating significant uncertainties that may cast substantial doubt on its ability to continue as a going concern[9](index=9&type=chunk)[10](index=10&type=chunk) - Management plans to continue raising funds through equity and/or debt securities and seek additional capital in public equity markets to support operations, product development, and strategic collaborations[12](index=12&type=chunk) - Management believes that, based on current cash outflow rates, cash on hand, and short-term borrowings, existing cash may be insufficient to meet working capital requirements for the next twelve months[12](index=12&type=chunk) [Foreign Currency Translation](index=8&type=section&id=Foreign%20Currency%20Translation) Effective January 1, 2023, the company changed its functional currency from AUD to USD to reflect increased international operations and USD exposure, while its self-sustaining Malaysian operations maintain MYR as their functional currency - Effective January 1, 2023, the company changed its functional currency from Australian Dollars (AUD) to US Dollars (USD) to reflect its growing international operations and increased exposure to USD[14](index=14&type=chunk)[20](index=20&type=chunk) - The Malaysian operations are considered self-sustaining, with their functional currency being the Malaysian Ringgit (MYR), while the functional currency for the remaining operations is USD[20](index=20&type=chunk) - The change in functional currency had no material impact on the net profit for the period, as most assets and liabilities are denominated in USD[21](index=21&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=CHANGES%20IN%20ACCOUNTING) Several new, revised, or amended accounting standards and interpretations, including revisions to IAS 16, IFRS 3, IAS 37, IFRS 1, and IFRS 9, were adopted this period, none of which had a material impact on the Group's condensed consolidated financial statements - Revisions to IAS 16 "Property, Plant and Equipment: Proceeds before Intended Use" were adopted this period, prohibiting the deduction of proceeds from selling items produced while bringing an asset to the location and condition necessary for it to be capable of operating in the manner intended by management from the cost of the asset[22](index=22&type=chunk) - Amendments to IFRS 3 "Business Combinations" clarified that contingent assets do not qualify for recognition at the acquisition date and adjusted recognition principles for certain liabilities[24](index=24&type=chunk) - Revisions to IAS 37 "Onerous Contracts – Cost of Fulfilling a Contract" clarified that when assessing whether a contract is onerous, directly incremental costs of fulfilling the contract and an allocation of other costs directly related to activities to fulfill the contract should be included[26](index=26&type=chunk) - Amendments to IFRS 9 "Financial Instruments" clarified that fees paid or received between a borrower and a lender should be included when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability[27](index=27&type=chunk) - All the aforementioned revisions had no material impact on the Group's condensed unaudited consolidated financial statements[23](index=23&type=chunk)[25](index=25&type=chunk)[28](index=28&type=chunk) [2. Use of Judgements and Estimates](index=10&type=section&id=2.%20USE%20OF%20JUDGEMENTS%20AND%20ESTIMATES) Management made judgments and estimates impacting accounting policy application and reported amounts of assets, liabilities, income, and expenses, primarily in inventory valuation (lower of cost and net realizable value) and associate accounting (equity method) - Inventories are valued at the lower of cost and net realizable value, where net realizable value is the estimated selling price less estimated costs of completion and selling expenses[29](index=29&type=chunk) - The results, assets, and liabilities of associates are accounted for using the equity method, unless the investment is classified as held for sale[30](index=30&type=chunk) [3. Operating Segments](index=10&type=section&id=3.%20OPERATING%20SEGMENTS) As of June 30, 2023, the Group operated six segments: electronic glass, nano-coated panels and air filters, halal products, consulting, NFTs, and corporate, with executive directors reviewing performance based on EBITDA, and H1 2023 total revenue of **$3,046,930** primarily from warrant value changes and halal product sales - As of June 30, 2023, the Group had six operating segments: electronic glass sales, nano-coated panels and air filter sales, halal product sales, consulting services, NFTs, and corporate activities[31](index=31&type=chunk) Operating Segments Performance | Indicator | June 30, 2023 (USD) | June 30, 2022 (USD) | | :----------------------------------------- | :------------------ | :------------------ | | **Revenue** | | | | Sales to External Customers (Halal Products) | 304,208 | - | | Gain from Changes in Warrant Value | 2,367,292 | - | | Interest Income | 365,293 | 284,926 | | Other Income | 10,137 | 1,991 | | **Total Revenue** | **3,046,930** | **1,945,192** | | **EBITDA** | **961,706** | **810,826** | | **Profit/(Loss) After Tax** | **163,585** | **(1,462,501)** | | **Assets** | | | | Electronic Glass Sales Segment Assets | 14,260,846 | 14,260,846 | | Nano-Coated Panels and Air Filter Products Sales Segment Assets | 3,360,421 | 3,790,116 | | Halal Products Sales Segment Assets | 2,807,622 | 3,556,889 | | Corporate Segment Assets | 16,572,601 | 16,845,654 | | **Total Assets** | **37,306,952** | **38,819,202** | | **Liabilities** | | | | Corporate Segment Liabilities | (7,156,660) | (9,550,160) | | **Total Liabilities** | **(7,857,795)** | **(9,902,115)** | - In H1 2023, total revenue was **$3,046,930**, with halal product sales contributing **$304,208** and gains from changes in warrant value contributing **$2,367,292**[33](index=33&type=chunk) - EBITDA for H1 2023 was **$961,706**, an increase from **$810,826** in H1 2022[33](index=33&type=chunk)[34](index=34&type=chunk) [4. Revenue](index=12&type=section&id=4.%20REVENUE) For the six months ended June 30, 2023, the company's revenue primarily derived from halal product sales totaling **$304,208**, with no such revenue in the prior year Revenue Sources | Revenue Source | June 30, 2023 (USD) | June 30, 2022 (USD) | | :----------------- | :------------------ | :------------------ | | Halal Product Sales | 304,208 | - | - In H1 2023, halal product sales were the company's sole revenue source, amounting to **$304,208**[35](index=35&type=chunk) [5. Other Income](index=12&type=section&id=5.%20OTHER%20INCOME) For the six months ended June 30, 2023, the company's other income primarily consisted of management consulting fees totaling **$10,137**, compared to miscellaneous income in the prior year Other Income Sources | Other Income Source | June 30, 2023 (USD) | June 30, 2022 (USD) | | :--------------------- | :------------------ | :------------------ | | Management Consulting Fee Income | 10,137 | - | | Miscellaneous Income | - | 1,991 | | **Total** | **10,137** | **1,991** | - In H1 2023, management consulting fee income of **$10,137** became the primary source of "Other Income"[35](index=35&type=chunk) [6. Finance Costs](index=13&type=section&id=6.%20FINANCE%20COSTS) For the six months ended June 30, 2023, total finance costs were **$338,540**, a significant decrease from **$623,264** in the prior year, primarily due to reduced interest on convertible promissory notes Finance Cost Items | Finance Cost Item | June 30, 2023 (USD) | June 30, 2022 (USD) | | :------------------------- | :------------------ | :------------------ | | Short-Term Loan Interest | 43,740 | 12,603 | | Finance Lease Liability Interest | - | 69,364 | | Convertible Promissory Note Interest | 294,800 | 541,297 | | **Total** | **338,540** | **623,264** | - In H1 2023, interest on convertible promissory notes was **$294,800**, a substantial decrease from **$541,297** in H1 2022[36](index=36&type=chunk) - Interest on finance lease liabilities was zero in H1 2023, compared to **$69,364** in H1 2022[36](index=36&type=chunk) [7. Income Tax Expense](index=13&type=section&id=7.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2023, the company incurred no income tax expense, with the reconciliation between profit/loss before tax and income tax expense showing zero due to unrecognised deferred tax temporary differences Income Tax Expense Reconciliation | Indicator | June 30, 2023 (USD) | June 30, 2022 (USD) | | :-------------------------------------- | :------------------ | :------------------ | | Profit/(Loss) Before Tax | 165,585 | (1,462,501) | | Income Tax Benefit on Loss Before Tax at 30% | - | 438,750 | | Overseas Tax Rate Differences | - | 961,893 | | Less: Unrecognized Deferred Tax Temporary Differences for the Period | (165,585) | (1,400,643) | | **Income Tax Expense** | **-** | **-** | - In H1 2023, the company's income tax expense was zero, consistent with H1 2022[37](index=37&type=chunk)[38](index=38&type=chunk) - Despite a profit before tax of **$165,585** in H1 2023, income tax expense remained zero due to unrecognised deferred tax temporary differences[38](index=38&type=chunk) [8. Dividends](index=14&type=section&id=8.%20DIVIDENDS) For the six months ended June 30, 2023, the company neither declared nor paid any dividends, consistent with the prior year - In H1 2023, the company neither declared nor paid any dividends[40](index=40&type=chunk) [9. Earnings / (Loss) Per Share](index=14&type=section&id=9.%20EARNING%20%2F%20%28LOSS%29%20PER%20SHARE) For the six months ended June 30, 2023, basic and diluted earnings per share improved significantly to **$0.273** from a loss of **$0.667** in the prior year, driven by increased profit attributable to shareholders and a higher weighted average number of ordinary shares Earnings Per Share Summary | Indicator | June 30, 2023 (USD) | June 30, 2022 (USD) | | :-------------------------------------- | :------------------ | :------------------ | | Basic and Diluted Earnings/(Loss) Per Share | 0.273 | (0.667) | | Profit/(Loss) After Tax Attributable to Shareholders | 567,743 | (918,534) | | Weighted Average Number of Ordinary Shares (Shares) | 2,077,262 | 1,377,212 | - In H1 2023, basic and diluted earnings per share were **$0.273**, compared to a loss per share of **$0.667** in H1 2022[40](index=40&type=chunk) - Profit/(loss) after tax attributable to shareholders shifted from a loss of **$918,534** in H1 2022 to a profit of **$567,743** in H1 2023[40](index=40&type=chunk) - The weighted average number of ordinary shares increased from **1,377,212** in H1 2022 to **2,077,262** in H1 2023[40](index=40&type=chunk)[41](index=41&type=chunk) [10. Trade and Other Receivables](index=14&type=section&id=10.%20TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2023, total trade and other receivables, net of allowance for doubtful debts, decreased to **$2,083,055** from **$2,620,099** at December 31, 2022, with a significant increase in the allowance for doubtful debts Trade and Other Receivables | Receivable Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :------------------------- | :------------------ | :---------------------- | | Trade Receivables | 905,883 | 649,168 | | Other Receivables | 1,337,783 | 2,039,517 | | **Subtotal** | **2,243,666** | **2,688,685** | | Less: Allowance for Doubtful Debts | (160,611) | (68,586) | | **Total** | **2,083,055** | **2,620,099** | - Trade receivables increased from **$649,168** at year-end 2022 to **$905,883** as of June 30, 2023[42](index=42&type=chunk) - Other receivables decreased from **$2,039,517** at year-end 2022 to **$1,337,783** as of June 30, 2023[42](index=42&type=chunk) - The allowance for doubtful debts increased from **$68,586** at year-end 2022 to **$160,611** as of June 30, 2023[42](index=42&type=chunk) [11. Inventories](index=15&type=section&id=11.%20INVENTORIES) As of June 30, 2023, net inventories decreased to **$3,687,836** from **$4,195,077** at December 31, 2022, driven by a reduction in finished goods for halal products and an increase in inventory obsolescence provision Inventory Items | Inventory Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :--------------------------------- | :------------------ | :---------------------- | | Finished Goods - Halal Products | 124,732 | 350,252 | | Finished Goods - Displays and Other Products | 4,600,000 | 4,600,000 | | Inventory Obsolescence Provision | (1,036,896) | (755,175) | | **Total (Net of Provision)** | **3,687,836** | **4,195,077** | - Finished goods for halal products decreased from **$350,252** at year-end 2022 to **$124,732** as of June 30, 2023[43](index=43&type=chunk) - The inventory obsolescence provision increased from **$755,175** at year-end 2022 to **$1,036,896** as of June 30, 2023[43](index=43&type=chunk) [12. Other Assets](index=15&type=section&id=12.%20OTHER%20ASSETS) As of June 30, 2023, total other current assets slightly decreased to **$1,624,722** from **$1,695,707** at December 31, 2022, with prepayments reduced to zero Other Asset Items | Other Asset Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :----------------- | :------------------ | :---------------------- | | Prepayments | - | 41,406 | | Trade Deposits | 313,920 | 343,500 | | Other Deposits | 1,310,616 | 1,310,615 | | VAT Receivable | 186 | 186 | | **Total** | **1,624,722** | **1,695,707** | - Prepayments decreased from **$41,406** at year-end 2022 to zero as of June 30, 2023[43](index=43&type=chunk) [13. Loan Receivable](index=15&type=section&id=13.%20Loan%20receivable) As of June 30, 2023, total loan receivable increased to **$7,072,944** from **$6,902,000** at December 31, 2022, primarily due to accrued interest, stemming from the September 2022 sale of eGlass Technologies Ltd. with a 5% annual interest rate and conditional convertibility into eGlass shares Loan Receivable Details | Loan Receivable Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :----------------- | :------------------ | :---------------------- | | Loan Receivable | 6,800,000 | 6,800,000 | | Accrued Interest on Loan Receivable | 272,944 | 102,000 | | **Total** | **7,072,944** | **6,902,000** | - Accrued interest on the loan receivable increased from **$102,000** at year-end 2022 to **$272,944** as of June 30, 2023[44](index=44&type=chunk) - The loan originated from the September 2022 sale of eGlass Technologies Ltd. for **$6.8 million**, carries a 5% annual interest rate, and is convertible into eGlass shares upon its ASX listing[44](index=44&type=chunk) [14. Amounts Due From Former Group Companies](index=15&type=section&id=14.%20AMOUNTS%20DUE%20FROM%20FORMER%20GROUP%20COMPANIES) As of June 30, 2023, amounts due from former group companies slightly decreased to **$5,248,715** from **$5,339,834** at December 31, 2022, including **$5.5 million** non-interest-bearing, unsecured amounts related to convertible notes issued by the company, and other unsecured, 5% annual interest, repayable on demand amounts - As of June 30, 2023, amounts due from former group companies were **$5,248,715**, a slight decrease from **$5,339,834** as of December 31, 2022[4](index=4&type=chunk) - This includes **$5.5 million** related to convertible notes issued by the company, which are non-interest-bearing, unsecured, and payable on the convertible notes' maturity date[45](index=45&type=chunk) - Other amounts due from former group companies are unsecured, bear interest at 5% per annum, and are repayable on demand[45](index=45&type=chunk) [15. Plant and Equipment](index=16&type=section&id=15.%20PLANT%20AND%20EQUIPMENT) As of June 30, 2023, the company's net plant and equipment decreased to **$1,838,903** from **$2,233,393** at December 31, 2022, primarily due to **$394,490** in depreciation expense recognized during the period Plant and Equipment Details | Plant and Equipment Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :----------------------- | :------------------ | :---------------------- | | Office Furniture and Equipment Cost | 14,799 | 14,799 | | Machinery Cost | 3,920,000 | 3,920,000 | | **Total Cost** | **3,934,799** | **3,934,799** | | Accumulated Depreciation | (2,095,896) | (1,701,406) | | **Net Book Value** | **1,838,903** | **2,233,393** | | **Depreciation for the Period** | **(394,490)** | **-** | - In H1 2023, depreciation expense for plant and equipment amounted to **$394,490**[46](index=46&type=chunk) - As of June 30, 2023, the net value of machinery was **$1,829,333**, and office furniture and equipment was **$9,570**[46](index=46&type=chunk) [16. Intangible Assets](index=16&type=section&id=16.%20INTANGIBLE%20ASSETS) As of June 30, 2023, the company's net intangible assets decreased to **$804,297** from **$869,388** at December 31, 2022, primarily due to **$65,091** in amortization expense recognized during the period Intangible Assets Details | Intangible Asset Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :----------------------- | :------------------ | :---------------------- | | Technology and Know-How Cost | 666,667 | 666,667 | | Software and Licenses Cost | 374,786 | 374,786 | | **Total Cost** | **1,041,453** | **1,041,453** | | Accumulated Amortization | (237,156) | (172,065) | | **Net Book Value** | **804,297** | **869,388** | | **Amortization for the Period** | **(65,091)** | **-** | - In H1 2023, intangible asset amortization expense was **$65,091**, comprising **$41,667** for technology and know-how and **$23,424** for software and licenses[48](index=48&type=chunk) - As of June 30, 2023, the net value of technology and know-how was **$497,222**, and software and licenses was **$307,075**[48](index=48&type=chunk) [17. Investment in an Associate](index=17&type=section&id=17.%20INVESTMENT%20IN%20AN%20ASSOCIATE) As of June 30, 2023, the company's investment in Greifenberg Digital Limited, a Canadian-registered investment holding company with a 23.96% ownership, decreased to **$91,414** from **$175,505** at December 31, 2022 Investment in Associate and Financial Information | Indicator | June 30, 2023 (USD) | December 31, 2022 (USD) | | :-------------------------------------- | :------------------ | :---------------------- | | Investment in an Associate | 91,414 | 175,505 | | Amount Due From an Associate | 584,629 | 476,815 | | **Total** | **676,043** | **652,320** | | **Associate Financial Information (Greifenberg Digital Limited)** | | | | Current Assets | 116,976 | 85,419 | | Non-Current Assets | 1,564,276 | 1,656,298 | | Current Liabilities | (1,274,094) | (983,596) | | Equity | 407,158 | 758,121 | | Revenue | 59,942 | 90,000 | | Loss from Continuing Operations | (410,914) | (955,548) | | Loss and Total Comprehensive Loss for the Period | (350,972) | (865,548) | - The company's investment in associate Greifenberg Digital Limited decreased from **$175,505** at year-end 2022 to **$91,414** as of June 30, 2023[49](index=49&type=chunk) - Greifenberg Digital Limited is a Canadian-registered investment holding company, with the company holding a **23.96%** ownership interest[50](index=50&type=chunk) - Greifenberg Digital Limited generated **$59,942** in revenue and incurred a loss of **$350,972** in H1 2023[51](index=51&type=chunk) [18. Amount Due From an Associate](index=17&type=section&id=18.%20AMOUNT%20DUE%20FROM%20AN%20ASSOCIATE) As of June 30, 2023, the amount due from an associate increased to **$584,629** from **$476,815** at December 31, 2022, representing a non-trade, unsecured, 7% annual interest-bearing, and repayable on demand balance Amount Due From an Associate | Amount Due From an Associate | June 30, 2023 (USD) | December 31, 2022 (USD) | | :------------------------- | :------------------ | :---------------------- | | Amount Due From an Associate | 584,629 | 476,815 | - The amount due from an associate increased from **$476,815** at year-end 2022 to **$584,629** as of June 30, 2023[52](index=52&type=chunk) - This amount is non-trade in nature, unsecured, bears interest at 7% per annum, and is repayable on demand[52](index=52&type=chunk) [19. Trade and Other Liabilities](index=17&type=section&id=19.%20TRADE%20AND%20OTHER%20LIABILITIES) As of June 30, 2023, total trade and other liabilities slightly increased to **$726,665** from **$698,493** at December 31, 2022, with a notable decrease in amounts due to directors offset by increases in other payables and consulting fees Trade and Other Liabilities | Liability Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :------------------------- | :------------------ | :---------------------- | | Trade Payables | 111,871 | 98,515 | | Accrued Expenses | 60,867 | 57,077 | | Amounts Due to Directors | 64,816 | 275,844 | | Consulting Fees | 62,057 | 2,053 | | Other Payables | 427,054 | 265,004 | | **Total** | **726,665** | **698,493** | - Amounts due to directors decreased from **$275,844** at year-end 2022 to **$64,816** as of June 30, 2023, being non-trade, unsecured, non-interest-bearing, and repayable on demand[53](index=53&type=chunk) - Other payables increased from **$265,004** at year-end 2022 to **$427,054** as of June 30, 2023[53](index=53&type=chunk) - Consulting fees significantly increased from **$2,053** at year-end 2022 to **$62,057** as of June 30, 2023[53](index=53&type=chunk) [20. Derivative Financial Instruments](index=18&type=section&id=20.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) As of June 30, 2023, the carrying value of the company's derivative financial liabilities remained at **$1,677,178**, consistent with December 31, 2022, primarily comprising embedded derivatives in convertible promissory notes and fair value changes Derivative Financial Liabilities | Derivative Financial Liability Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :-------------------------------- | :------------------ | :---------------------- | | Carrying Value at Beginning of Year | - | 1,571,939 | | Derivatives Redeemed on Conversion of Convertible Promissory Notes | - | (1,571,939) | | Embedded Derivatives in Convertible Promissory Notes Issued | 589,600 | 589,600 | | Fair Value Changes of Derivative Financial Instruments | 1,087,578 | 1,087,578 | | **Carrying Value at End of Year** | **1,677,178** | **1,677,178** | - As of June 30, 2023, the carrying value of derivative financial liabilities was **$1,677,178**, remaining unchanged from December 31, 2022[54](index=54&type=chunk) - This liability includes **$589,600** for embedded derivatives in convertible promissory notes and **$1,087,578** for fair value changes[54](index=54&type=chunk) [21. Convertible Promissory Notes](index=18&type=section&id=21.%20CONVERTIBLE%20PROMISSORY%20NOTES) As of June 30, 2023, the carrying value of the company's convertible promissory notes increased to **$5,412,973** from **$5,118,173** at December 31, 2022, primarily due to accrued interest, with these approximately **$5.5 million** notes being non-interest-bearing, unsecured, convertible into eGlass or company shares under specific conditions, and accompanied by warrants Convertible Promissory Notes Details | Convertible Promissory Note Item | June 30, 2023 (USD) | December 31, 2022 (USD) | | :------------------------------- | :------------------ | :---------------------- | | Face Value of Convertible Promissory Notes Issued | 5,502,927 | 5,502,927 | | Debt Discount | (589,600) | (589,600) | | Liability Component at Initial Recognition | 4,913,327 | 4,913,327 | | Accrued Interest | 499,646 | 204,846 | | **Carrying Value at End of Year** | **5,412,973** | **5,118,173** | - Accrued interest on convertible promissory notes increased from **$204,846** at year-end 2022 to **$499,646** as of June 30, 2023[55](index=55&type=chunk) - These notes, totaling approximately **$5.5 million**, are non-interest-bearing, unsecured, and convertible into eGlass shares upon its ASX listing, or into company shares if not listed within one year[55](index=55&type=chunk)[56](index=56&type=chunk) - Each noteholder will also receive warrants to subscribe for eGlass shares at the IPO price within one year of eGlass's listing[56](index=56&type=chunk) [22. Issued Capital](index=19&type=section&id=22.%20ISSUED%20CAPITAL) As of June 30, 2023, the company had **2,125,169** ordinary shares issued, totaling **$66,601,053** in share capital, with **$368,485** raised from share issuance during the period, and share numbers in this report are retrospectively adjusted for a 1-for-10 share consolidation on October 16, 2023, to meet Nasdaq minimum bid price requirements Issued Capital Changes | Issued Capital Change Item | June 30, 2023 (Number of Shares) | June 30, 2023 (USD) | | :------------------------- | :------------------------------- | :------------------ | | Balance as of December 31, 2022 and January 1, 2023 | 2,052,360 | 66,232,568 | | Shares Issued for Services | 72,809 | 368,485 | | **Balance as of June 30, 2023** | **2,125,169** | **66,601,053** | - As of June 30, 2023, the number of issued ordinary shares was **2,125,169**, with total share capital amounting to **$66,601,053**[57](index=57&type=chunk) - In H1 2023, the company issued **72,809** new shares for services, generating **$368,485**[57](index=57&type=chunk) - The company implemented a 1-for-10 share consolidation on October 16, 2023, reducing issued shares from **21,486,202** to **2,148,501** to meet Nasdaq's minimum bid price requirement, with share numbers in this report retrospectively adjusted[59](index=59&type=chunk) [23. Commitments](index=20&type=section&id=23.%20COMMITMENTS) As of June 30, 2023, total irrevocable operating lease commitments increased to **$29,956** from **$22,263** at December 31, 2022, with **$12,838** due within one year Commitments by Period | Commitment Period | June 30, 2023 (USD) | December 31, 2022 (USD) | | :------------------------- | :------------------ | :---------------------- | | Within One Year | 12,838 | 13,358 | | Second to Fifth Year (Inclusive) | 17,118 | 8,905 | | **Total** | **29,956** | **22,263** | - Total irrevocable operating lease commitments increased from **$22,263** at year-end 2022 to **$29,956** as of June 30, 2023[60](index=60&type=chunk) - Of these, **$12,838** is due within one year, and **$17,118** is due between the second and fifth years (inclusive)[60](index=60&type=chunk) [24. Reserves](index=20&type=section&id=24.%20RESERVES) Other reserves represent capital contributions from non-controlling interests, amounting to **$588,080** as of both June 30, 2023, and December 31, 2022 - Other reserves represent capital contributions from non-controlling interests, totaling **$588,080**[61](index=61&type=chunk) [25. Controlled Entities](index=20&type=section&id=25.%20CONTROLLED%20ENTITIES) The company, as the parent entity, controls several subsidiaries including CIMC Marketing Pty. Limited, IMTE Asia Limited, IMTE Malaysia Limited, Itana Holdings Limited, Renfrew International Limited, Lonsdale International Limited, Merit Stone Limited, Ohho International Limited, Ouction Digital Limited, and World Integrated Supply Ecosystem Sdn. Bhd., with ownership ranging from 51% to 100% Controlled Entities | Subsidiary Name | Country/Region of Incorporation | Ownership Interest June 30, 2023 | Ownership Interest December 31, 2022 | | :--------------------------------------- | :------------------------------ | :------------------------------- | :----------------------------------- | | CIMC Marketing Pty. Limited | Australia | 100% | 100% | | IMTE Asia Limited | Hong Kong | 100% | 100% | | IMTE Malaysia Limited | Malaysia | 100% | 100% | | Itana Holdings Limited | Canada | 100% | 100% | | Renfrew International Limited | USA | 100% | 100% | | Lonsdale International Limited | USA | 100% | 100% | | Merit Stone Limited | British Virgin Islands | 100% | 100% | | Ohho International Limited | Canada | 51% | 51% | | Ouction Digital Limited | Canada | 60% | 60% | | World Integrated Supply Ecosystem Sdn. Bhd. | Malaysia | 60% | 60% | - The company owns multiple subsidiaries with varying ownership percentages, spanning Australia, Hong Kong, Malaysia, Canada, the United States, and the British Virgin Islands[62](index=62&type=chunk) [26. Related Party Transactions](index=21&type=section&id=26.%20RELATED%20PARTY%20TRANSACTIONS) For the six months ended June 30, 2023, total compensation paid to key management personnel was **$226,569**, a decrease from **$488,645** in the prior year Key Management Personnel Compensation | Compensation Type | June 30, 2023 (USD) | June 30, 2022 (USD) | | :----------------- | :------------------ | :------------------ | | Short-Term Benefits | 226,569 | 488,645 | | Post-Employment Benefits | - | - | | **Total** | **226,569** | **488,645** | - In H1 2023, short-term benefits paid to key management personnel amounted to **$226,569**, a reduction from **$488,645** in H1 2022[63](index=63&type=chunk) [27. Cash Flow Information](index=21&type=section&id=27.%20CASH%20FLOW%20INFORMATION) For the six months ended June 30, 2023, net cash flow from changes in working capital significantly improved to **$667,815** from a **$5,342,027** net outflow in the prior year, primarily due to increased other receivables and decreased inventories Cash Flow from Working Capital Changes | Working Capital Change Item | June 30, 2023 (USD) | June 30, 2022 (USD) | | :--------------------------------- | :------------------ | :------------------ | | Other Assets | 29,579 | (378,939) | | Inventories | 162,241 | (4,470,785) | | Trade Receivables | (256,717) | 251,366 | | Other Receivables | 701,734 | 16,894 | | Amounts Due From an Associate | (88,313) | (201,696) | | Amounts Due From Former Group Companies | 91,119 | - | | Trade and Other Payables | 28,172 | (384,149) | | Amounts Due to Related Companies | - | (174,718) | | **Net Cash Flow from Working Capital Changes** | **667,815** | **(5,342,027)** | - In H1 2023, net cash flow from changes in working capital was **$667,815**, compared to a net outflow of **$5,342,027** in H1 2022[64](index=64&type=chunk) - Increased other receivables (**$701,734**) and decreased inventories (**$162,241**) were key factors in the improved working capital cash flow in 2023[64](index=64&type=chunk) [28. Events Occurring After the Reporting Date](index=21&type=section&id=28.%20EVENTS%20OCCURRING%20AFTER%20THE%20REPORTING%20DATE) Post-reporting date, the company completed the acquisition of Teko Energy Pty Limited in July 2023, implemented a 1-for-10 share consolidation on October 16, 2023, to meet Nasdaq requirements, signed a **$15 million** convertible note purchase agreement on October 24, 2023, and issued shares in December 2023 for convertible note conversion and working capital - In July 2023, the company completed the acquisition of Teko Energy Pty Limited (subsequently renamed Itana Energy Pty Ltd.) and its 50% subsidiary, Admiral Energy Corporation Pty Ltd., for **$750,000** through the issuance of **300,000** shares (post-consolidation)[65](index=65&type=chunk) - On October 16, 2023, the company implemented a 1-for-10 share consolidation, reducing issued shares from **21,486,202** to **2,148,501** to meet Nasdaq's minimum bid price requirement[66](index=66&type=chunk) - On October 24, 2023, the company entered into a **$15 million** convertible promissory note purchase agreement with Nextglass Solutions Inc., with the notes being non-interest-bearing, non-prepayable, having a 2-year term, and convertible into company shares at **$1.42** per share[67](index=67&type=chunk) - On December 19, 2023, the company issued **240,000** shares for the conversion of **$600,000** in convertible promissory notes[67](index=67&type=chunk) - On December 27, 2023, the Board approved raising up to **$5 million** at an issue price of **$2.50** per share for working capital, subsequently entering into an agreement to issue **550,405** shares for total proceeds of **$1,376,013**[68](index=68&type=chunk)

Financial Performance - As of December 31, 2022, the company had an accumulated deficit of A$49,784,862 and recorded a loss of A$13,862,503 for the year, primarily due to operating costs and limited sales operations[33]. - The company had cash and cash equivalents of $74,106 as of December 31, 2022, and estimates that existing cash resources will not be sufficient to fund operations into the first quarter of 2024[38]. - In 2022, total revenues amounted to A$1,094,405, a significant decrease from A$1,744,629 in 2020, primarily due to the cessation of the glasses-free 3D display business[216]. - The Company reported sales of Halal products amounting to A$526,807 in 2022, marking a new revenue stream[216]. - Interest income increased to A$567,598 in 2022 from A$18,864 in 2021, indicating a strong growth in financial returns[216]. Business Operations and Strategy - The company is starting to roll out new businesses, including nano-coated plate filters and halal certification, but there is no certainty of achieving profitability from these ventures[34]. - The company is focused on integrating acquisitions, such as the nano-coated plate filter business, to enhance growth and operational success[46]. - The company has engaged in various projects including laminated switchable glass and nano-coated plate filters, aiming to broaden its revenue base[174]. - The company entered into a distribution rights agreement for proprietary films, with potential share payments based on revenue milestones[188]. - The Company entered into a contract to purchase a lamination line for US$1,650,000 to enhance its switchable glass operations[194]. Financing and Capital Requirements - The company anticipates requiring additional financing to support capital-intensive operations, including the lamination operation for switchable glass[37]. - The company may need to pursue additional capital through various means, including joint ventures and debt or equity financing, which could be dilutive to existing shareholders[41]. - The Company raised US$10 million through convertible notes, with a conversion price of US$3.12 per share, to support manufacturing infrastructure and working capital[203]. - The Company raised gross proceeds of US$1 million from the sale of 158,730 ordinary shares and warrants, generating net cash proceeds of approximately US$920,000 after expenses[191]. - The Company sold 1,431,788 ordinary shares at US$4.50 per share, raising approximately US$6.4 million for expansion projects[205]. Market and Competitive Risks - The company faces significant risks related to geopolitical tensions, particularly the ongoing military conflict between Russia and Ukraine, which could adversely affect costs and business operations[25]. - Significant competition is anticipated in the nano-coated plate filter, switchable glass, halal products, and digital assets marketplace, potentially affecting customer retention[48]. - The halal food market is highly competitive, with many competitors possessing greater resources, which could lead to reduced market share and revenue for the company[86]. - Consumer demand for halal products is critical, and any significant decline could negatively impact the company's business results[91]. - The company faces inherent risks in its switchable glass and halal products, including fluctuations in demand and rapid technological changes[103]. Operational Risks - The company has a history of operating losses and may not achieve profitability in the future without generating sufficient and consistent revenue[33]. - The company is subject to risks associated with limited operating history in new business segments, making it difficult for potential investors to evaluate its prospects[35]. - Limited manufacturing experience may lead to delays in product production, negatively impacting business operations[51]. - Reliance on contractors for manufacturing poses risks related to their business conditions and operational capabilities[52]. - The company relies on complex machinery for production, which involves risks related to operational performance and costs, potentially affecting cash flows and financial condition[107]. Regulatory and Compliance Issues - The company received a notification from Nasdaq on November 2, 2022, indicating that its Ordinary Shares closed below the minimum bid price of US$1.00 for 30 consecutive business days[149]. - The company has a compliance period of 180 calendar days, until May 1, 2023, to regain compliance with Nasdaq's minimum bid price requirement[150]. - Failure to meet Nasdaq's continued listing requirements could lead to delisting, negatively impacting the market price and liquidity of the Ordinary Shares[151]. - The company has identified a material weakness in its internal control over financial reporting, which could lead to misstatements and negatively affect the market price of its securities[169]. Intellectual Property and Technology Risks - Intellectual property infringement claims could result in costly litigation and impact the company's ability to provide services[56]. - The company faces significant risks in protecting its intellectual property rights, particularly in regions like China, which may adversely affect its brand and business operations[70]. - The company may face challenges in protecting its intellectual property, which could lead to competitive disadvantages[140]. - Lack of patent protection in certain countries may erode market potential for product candidates[147]. - The rapid pace of technological change in the industry poses a risk of products becoming obsolete if the company cannot keep up with competitors[138]. Economic and External Factors - Economic conditions, including consumer discretionary spending and the effects of COVID-19, are strongly correlated with the company's revenues and profitability[92]. - The weakening global economy due to COVID-19 has contributed to a decrease in consumer spending, which may adversely affect the market for the company's products and services[101]. - The company is monitoring the impact of COVID-19 and other public health developments, which could materially affect business operations and financial results[24]. - Currency fluctuations could lead to increased costs and decreased revenues, particularly with expenses in multiple currencies including Korean won and US dollars[129]. - An increase in the U.S. dollar's value may adversely affect competitiveness against foreign manufacturers and reduce foreign currency sales[50].

Revenue and Income - Revenue for the six months ended June 30, 2022, was A$0, compared to A$3.294 million for the same period in 2021, representing a 100% decrease[3] - Total revenue for the six months ended June 30, 2022, was A$2,722,678, compared to A$38,142 for the same period in 2021, indicating a significant increase[56] - Interest income increased significantly to A$398,797 from A$9,848, marking a growth of approximately 3,931%[3] - Other revenue for the six months ended June 30, 2022, included A$401,675, primarily from consultancy services and NFT sales[56] - The Group's total sales revenue from external customers was A$0 for the six months ended June 30, 2022, compared to A$3,294 in 2021[58] Loss and Financial Performance - Total comprehensive loss for the period was A$462,223, a significant improvement from A$6.713 million in the same period last year, reflecting a reduction of approximately 93%[3] - The company reported a loss for the period of A$2.109 million, a reduction from A$7.131 million in the previous year, representing a decrease of approximately 70%[3] - The Group reported a net loss of A$2,108,764 for the six months ended June 30, 2022, an improvement from a loss of A$7,130,857 in the same period of 2021[13] - The loss before income tax for the period ended June 30, 2022, was A$2,108,764, a reduction of 70.5% from A$7,130,857 in 2021[63] - The basic and diluted loss per share for the period ended June 30, 2022, was A$0.10, compared to A$0.88 for the same period in 2021, reflecting a significant improvement[65] Assets and Liabilities - Total assets increased to A$48.274 million as of June 30, 2022, compared to A$25.090 million at the end of 2021, indicating a growth of approximately 92%[5] - Net current assets improved to A$9.584 million from net current liabilities of A$6.449 million at the end of 2021[5] - The Group's accumulated losses reached A$38,516,759 as of June 30, 2022, raising concerns about its ability to continue as a going concern[14] - Trade and other liabilities totaled A$1,147,197 as of June 30, 2022, a significant decrease from A$2,424,717 as of December 31, 2021[80] - The Group's amounts due to related companies dropped to zero as of June 30, 2022, from A$247,406 as of December 31, 2021[81] Cash Flow and Financing - Cash outflows from operating activities totaled A$9,975,254, compared to A$3,542,057 in the prior year, indicating increased cash usage[14] - The Group's investing activities resulted in a net cash outflow of A$16,485,200, primarily due to a deposit paid for lamination production equipment amounting to A$16,467,808[19] - The Group's financing activities provided a net cash inflow of A$26,519,737, reflecting the proceeds from shares issued[19] - The Group plans to continue raising financing through equity and/or debt securities to support ongoing operations and product development[26] - The Group's management believes that current cash may not be sufficient to meet anticipated cash needs for working capital over the next twelve months[19] Share Capital and Equity - The company issued 15,785,072 ordinary shares as of June 30, 2022, up from 9,329,420 shares at the end of 2021[5] - The total issued capital increased to A$79,979,235 with 15,785,072 shares as of June 30, 2022, compared to A$48,144,406 with 9,329,420 shares as of December 31, 2021[94] - The Group recognized a gain on deemed disposal of A$48,374 related to the reduction of its shareholding in Greifenberg from 40.75% to 23.96%[99] Inventory and Receivables - The total inventories as of June 30, 2022, were valued at A$6,673,350, with no provision for obsolescence[66] - Trade receivables as of June 30, 2022, were A$480,576, showing a slight increase from A$480,095 as of December 31, 2021[67] - The company reported an increase in inventories, with a cash outflow of A$6,512,192 for the period ended June 30, 2022, compared to a slight inflow of A$1,517 in the previous year[105] Management and Operations - The Group has seven operating segments for the period ended June 30, 2022, compared to six in 2021, reflecting expansion in business operations[52] - The total remuneration paid to directors and senior management decreased to A$683,932 for the period ended June 30, 2022, down from A$926,348 in the previous year, representing a reduction of approximately 26.3%[103] - The company has not reported any significant events affecting operations since June 30, 2022, apart from the aforementioned transactions[107] Related Party Transactions - The company’s related party transactions included a decrease in fees paid to a related party for company secretarial and CFO services, from A$274,155 in the previous year to zero in the current period[104]

Financial Performance - As of December 31, 2021, the company had an accumulated deficit of A$37,169,358 and recorded a loss of A$6,585,626 for the year, primarily due to a decline in sales of 3D display products impacted by the pandemic[32]. - The company acknowledges the uncertainty surrounding its ability to achieve profitability and the potential need for further funding to sustain operations[33]. - Economic conditions, including the impact of COVID-19, have negatively affected consumer discretionary spending, which is correlated with the company's revenues[90]. - Currency fluctuations have negatively impacted the company, leading to foreign exchange losses in 2021[130]. - The Australian dollar has appreciated against the U.S. dollar, which may affect costs and revenues sourced from the U.S. and other jurisdictions[130]. Business Strategy and Operations - The company has ceased sales of its 3D display products to reduce overhead costs and is expanding into electronic glass, nano-coated plate air filters, air purifiers, halal certification, and a digital asset exchange[32]. - The company anticipates requiring additional financing to support its operations and new business ventures, including the capital-intensive lamination operation for switchable glass[38]. - The company plans to continue seeking new acquisition opportunities to enhance its operations and growth prospects[45]. - The company has shifted its business focus from 3D display products to laminated switchable glass, nano-coated plate filters, and IoT products due to the adverse effects of the pandemic on retail and advertising sectors[206]. Capital and Financing - The company is exploring various means of raising additional capital, including joint ventures and debt or equity financing, which may dilute existing shareholders[40]. - The company may issue additional securities in the future, which could result in dilution to existing shareholders[173]. - The company may need to raise additional funds through equity offerings, which could further dilute existing shareholders' ownership[174]. - The company has never paid dividends and does not intend to do so in the foreseeable future, meaning shareholders may not receive any return on their investment from dividends[177]. Market and Competition - The company faces significant competition in its nano-coated plate filter, switchable glass, halal products, and digital assets marketplace, which may adversely affect its business and financial condition[46]. - The halal products market is highly competitive, with many competitors having significantly greater resources, which could impact the company's market position[86]. - The company faces competition from both local and foreign competitors, which may lead to competitive pricing and lower profit margins[103]. - The company faces significant competition in technology and product development, which may render its products obsolete if it cannot keep pace[146]. Risks and Challenges - The company has faced significant operational challenges due to COVID-19, including travel restrictions and supply chain disruptions, which have adversely affected sales activities[36]. - The ongoing military conflict between Russia and Ukraine poses risks that could adversely affect the global economy and the company's business operations[25]. - The company is monitoring geopolitical risks and their potential impact on its business, including increased costs and disruptions in supply chains[30]. - The company may face challenges in negotiating collaborative arrangements or strategic alliances, which are crucial for the development and commercialization of its products[52]. - Unforeseen events, including natural disasters and public health issues, could disrupt operations and adversely affect operating results[106]. Intellectual Property and Regulatory Issues - Intellectual property infringement claims could be costly and time-consuming, potentially harming the company's ability to provide existing services[53]. - The company may face challenges in enforcing its intellectual property rights, which could adversely affect its business and financial condition[151]. - The company must comply with local building codes for its switchable glass products, and failure to do so may impair marketability and sales[118]. - Changes in government legislation and policy may adversely affect the company's operations and financial resources[128]. - The Foreign Investment Law in China may affect the company's business operations and structure, with potential risks if its electronic glass business is placed on the "negative list" for foreign investment[187]. Technology and Innovation - The company's growth is heavily reliant on its ability to innovate and enhance its technology infrastructure to meet customer demands[77]. - The success of the company's nano-coated products depends on the continuous innovation of its third-party equipment manufacturer[148]. - The blockchain technology underlying the company's NFT marketplace faces industry-wide challenges, which could materially impact its successful development[73]. - The company acknowledges that the NFT industry is characterized by rapid changes and uncertainties regarding consumer adoption, which may deter the acceptance of NFTs[74]. Operational Risks - The company has limited manufacturing experience and may face delays in producing sufficient quantities of products, which could harm its business and operations[48]. - Reliance on contractors for manufacturing air filters and air purifiers exposes the company to risks related to the business conditions of these contractors[49]. - The company relies on complex machinery for production, and unexpected malfunctions may significantly affect operational efficiency and production costs[105]. - Payment processing risks could adversely impact revenues and operating expenses due to reliance on third-party payment processors[59]. - Security breaches and attacks on internal systems could damage the company's reputation and materially affect its financial condition[60]. Shareholder and Market Considerations - The Ordinary Shares have traded below US$5.00 per share during the fiscal year ended December 31, 2021, categorizing them as "penny stock" under SEC regulations[162]. - The market price of the Ordinary Shares is likely to be highly volatile due to low trading volumes and external factors such as COVID-19[165]. - The company may be classified as a Passive Foreign Investment Company (PFIC), which could adversely affect U.S. investors' tax returns[166]. - The company follows home country corporate governance practices instead of certain NASDAQ requirements, which may not provide the same protections to shareholders[168]. - The company may face challenges in attracting major brokerage firms for coverage, which could limit its visibility in the market[178].

Board Composition - On April 28, 2021, Integrated Media Technology Limited appointed Ms. Jannu Binti Babjan as an independent board member, meeting Nasdaq and U.S. securities laws independence requirements[7] - Ms. Babjan has over 29 years of experience in civil litigations, including commercial disputes and shareholder disputes, enhancing the board's expertise[8] Regulatory Compliance - The report is filed under Form 6-K and is incorporated by reference in the Registration Statement on Form F-3, indicating ongoing compliance with SEC regulations[5]

Financial Performance - Total revenue for the year ended December 31, 2020, was A$1,833,387, a decrease of 24% from A$2,411,213 in 2019[23] - The net loss for 2020 was A$10,543,658, compared to a net loss of A$16,700,199 in 2019, indicating an improvement in financial performance[23] - Cash and cash equivalents increased to A$2,194,084 as of December 31, 2020, from a negative balance of A$166,758 in 2019[25] - Total assets decreased significantly to A$12,953,665 in 2020, down from A$19,946,276 in 2019, reflecting a reduction in the company's asset base[25] - Long-term debt rose to A$3,688,257 in 2020, compared to A$1,874,392 in 2019, indicating increased financial leverage[25] - The company reported an accumulated deficit of A$34,102,300 as of December 31, 2020, highlighting ongoing financial challenges[36] Operational Challenges - The impact of COVID-19 has led to significant delays in operations and sales, particularly affecting the advertising sector reliant on 3D displays[40] - Limited cash resources may hinder the ability to pay vendors and continue operations without raising additional funds[43] - The global economic downturn due to Covid-19 has negatively impacted business operations and customer financial stability[61] - Manufacturing experience is limited, and reliance on third-party manufacturers may lead to production delays[52] - The company is experiencing rapid growth, which places significant demands on its management and operational infrastructure, necessitating improvements in controls and reporting systems[70] Strategic Focus - The company has divested from in-house research and development of 3D technologies to reduce costs and focus on marketing and sales[37] - Future revenue generation will rely on the successful commercialization of new products, including nano-coat plated filters and switchable glass[38] - The company has stopped R&D in 3D technologies and is focusing on marketing and sales, with uncertain future prospects due to new product introductions[47] - The company is focusing on marketing ASD products and plans to manufacture and sell nano-coated plates for air filters and switchable glass, which are expected to drive future growth[187] Financing and Investment - The company anticipates requiring additional financing to support ongoing operations and product development[41] - Future financing may be pursued through joint ventures and debt or equity financing, which could dilute existing stockholders[44] - The company may seek to raise additional funds through equity offerings, which could dilute existing shareholders' ownership[141] - The company plans to use net cash proceeds from various securities offerings for working capital and development of existing and new businesses[176][175] Market and Competition - The company faces significant competition in its markets, which may affect customer retention and financial performance[50] - The company faces intense competition in the electronics and digital media industries, which could lead to lower profit margins due to competitive pricing[73] - Future sales may decline if the company's products do not gain market acceptance, influenced by factors such as timing of market introduction and pricing[96] Regulatory and Compliance Risks - The company must comply with local building codes and ordinances for its switchable glass products, and failure to do so could impair its ability to market and sell these products[88] - The company is subject to Australian takeover laws, which may discourage takeover offers or large share acquisitions[100] - Changes in Chinese government regulations could directly impact the company's operations and financial performance[111] Intellectual Property and Innovation - The company intends to seek patent protection for its 3D products and technologies, but there is uncertainty regarding the approval of pending or future patent applications[118] - The company faces risks related to the enforcement of its intellectual property rights, which could negatively impact its ability to commercialize products[119] - The company relies on unpatented trade secrets and know-how, which are difficult to protect and may lead to competitive harm if not adequately safeguarded[122] - The lack of patent protection in certain countries may hinder the company's ability to commercialize its products effectively in those markets[123] Shareholder and Market Considerations - The company has never paid a dividend and does not intend to pay dividends in the foreseeable future, meaning shareholders may not receive any return on their investment from dividends[144] - The ordinary shares of the company traded below $5.00 per share during the fiscal year ended December 31, 2020, categorizing them as "penny stocks" under SEC regulations[129] - The company may be classified as a Passive Foreign Investment Company (PFIC), which could impose adverse tax implications for U.S. investors[133] - The company may face delisting from Nasdaq if it fails to maintain compliance with continued listing requirements, which could adversely affect its stock liquidity and market perception[126] Acquisitions and Subsidiaries - The company acquired 51% of Sunup Holdings Limited for a total consideration of US$1,500,000, with uncertainties regarding the successful integration of Sunup's operations[75] - The company acquired 25.5% interests in Sunup Holdings Limited for US$1,500,000, paid by issuing 500,000 shares at US$3.00 per share[168][183] - The company established a new wholly owned subsidiary, GOXD Technology Limited, in July 2017 for sales and distribution of 2D/3D glasses-free 4K digital photo frames[156] Future Outlook - The company plans to install and operate switchable glass and energy-saving glass lamination operations with an annual production capacity of 160,000 - 240,000 m of laminated glass[193] - The switchable glass technology aims to reduce energy usage in buildings by blocking heat and glare, enhancing user comfort and reducing the need for blinds[201] - The company has started manufacturing and selling nano-coated plate filters, which eliminate small particle pollutants and are expected to secure orders in Q2 2021[209] - The company is focusing on IoT products as a core business, seeking investment opportunities in local IoT technologies and expanding into markets like Australia[215]

Financial Performance - Total revenue for the year ended December 31, 2019, was A$2,411,213, an increase of 32.7% from A$1,815,475 in 2018[23] - The company recorded a net loss of A$16,700,199 for the year ended December 31, 2019, compared to a net loss of A$16,843,223 in 2018[23] - As of December 31, 2019, the company had an accumulated deficit of A$25,786,912[35] - Total assets decreased to A$19,946,276 as of December 31, 2019, down from A$26,033,074 in 2018, representing a decline of 23.8%[24] - Cash and cash equivalents were A$166,758 as of December 31, 2019, a significant decrease from A$1,514,215 in 2018[24] - The company incurred significant losses in 2019 and may continue to face losses as it develops its 3D products, requiring additional financing to fund operations and R&D activities[41] - Future financing needs are anticipated to increase due to rising costs associated with 3D product development, including the need to defend intellectual property rights and outsource manufacturing[42] - The company has limited cash resources and may struggle to pay vendors and continue operations without raising additional funds[44] - The company has experienced fluctuations in operating results due to its limited operating history, making revenue and expense forecasting challenging[48] - The company has incurred losses in 2018 and 2019, but had profits in 2016 and 2017 from its ASD products and software, indicating uncertain future prospects[49] Operational Challenges - The company experienced a decline in sales of its ASD products and software, leading to operational losses[35] - The company faces significant risks due to the COVID-19 pandemic, which has impacted operations and sales activities[33][40] - The company needs to consistently sell its 3D products and services to increase revenue and return to profitability[35] - The company relies on contractors for manufacturing and may face risks related to contractor performance, which could negatively impact product commercialization[59] - The company is dependent on successful integration of recent acquisitions, such as Marvel Digital Limited, to grow its 3D products and services business[51] - The company faces significant competition in the 3D display market from competitors with greater financial resources and experience[52] - The company may need to rely on third-party marketing and distribution capabilities for its consumer electronics products, which could impact revenue potential[54] - The company is exposed to risks related to intellectual property infringement claims, which could be costly and time-consuming to defend[63] - The company primarily relies on distributors for its 3D display technology, and failure to retain key distributors could materially affect its business[68] Market and Economic Conditions - The global economic downturn due to Covid-19 has negatively impacted the company's operations, particularly in China and Hong Kong, leading to potential cash flow issues for customers[69] - Capital markets are experiencing instability, which may restrict the company's access to debt and equity capital, adversely affecting its financial condition[71] - The tightening of credit markets and weakening global economy due to Covid-19 may lead to decreased consumer spending on the company's products[79] - The company is subject to risks inherent in the electronics and digital media industries, including fluctuations in demand and rapid technological changes[82] - The company faces competition from both local and foreign competitors, which could result in lower profit margins[84] - Changes in government legislation and policy may adversely affect the company's operations and financial resources[92] - Currency fluctuations may increase costs and decrease revenues, particularly as expenses are primarily denominated in Hong Kong dollars and Renminbi[93] - China's GDP growth rate slowed to 6.1% in 2019, down from 6.7% in 2018 and 6.9% in 2017, potentially impacting investment in digital advertising networks and reducing demand for the company's products and services[100] - The company may rely on dividends from its operating subsidiaries in China to meet cash and financing needs, but limitations on these dividends could restrict business operations[102] - A significant portion of the company's revenues is denominated in Renminbi, which is currently convertible under the "current account," but future restrictions on currency exchange may limit the ability to utilize these revenues for international transactions[103] - The Chinese government may alter regulations and policies that could directly or indirectly impact the company's operations, including media broadcast regulations and foreign investment rules[106][107] Strategic Initiatives - The company divested from in-house research and development of core 3D technologies in May 2020 to reduce costs and focus on marketing and sales[36] - The company intends to continue financing operations through the issuance of securities, which may lead to dilution of existing shareholders' ownership[134] - The company aims to increase its shareholders' equity to more than US$2.5 million to comply with Nasdaq's continual listing requirements[171] - IMTE has developed a comprehensive ecosystem of technology in the autostereoscopic display domain, including hardware and software solutions[172] - IMTE plans to position itself as a technology investment company, seeking acquisitions that can broaden its revenue base and enhance synergy with existing operations[191] Product Development and Market Trends - The global 3D display market is expected to experience unprecedented growth, driven by increasing demand for autostereoscopic displays that do not require glasses[194] - The adoption of 3D displays in the advertising sector is a major trend, with vendors seeking to enhance customer engagement through glasses-free technology[195] - IMTE is developing a series of ASD displays and video walls, aiming to deliver high-quality 3D content for digital signage networks[187] - The company has developed VISUMOTION software for converting 2D/3D content to ASD, positioning itself at the forefront of ASD conversion technology[207] - IMTE's ASD mobile phone utilizes switchable parallax barrier technology, allowing for a seamless transition between 2D and 3D modes[214] - The ASD ecosystem requires a variety of products and services, along with sufficient 3D content, to facilitate consumer adoption of the technology[197] - The company is exploring new applications for ASD technology in education, entertainment, architecture, and healthcare, indicating a broad market potential[196] - The global 3D display market size is expected to reach USD 204.16 billion by 2025[217] - The market is exhibiting a CAGR of 19.4% during the forecast period from 2017 to 2025[217] - Increased popularity of 3D technology is driving market growth, evidenced by successful 3D films like The Lego Movie and Captain America: The Winter Soldier[217] - The advertisement sector is witnessing increased adoption of 3D displays, with agencies showcasing 3D content on billboards[217] - The growth rate of the global 3D display market is significantly attributed to the increased penetration of 3D TVs[217] - The rise in 3D content is expected to further contribute to the growth of the global 3D display market[217]