IMT(US:IMTE)2019-05-15 10:59Financial Performance - Total revenue for the year ended December 31, 2018, was A$1,815,475, a significant decrease from A$10,153,636 in 2017, representing a decline of approximately 82.1%[24] - The net loss for 2018 was A$16,843,223, compared to a profit of A$1,692,666 in 2017, indicating a substantial shift in financial performance[24] - The accumulated deficit as of December 31, 2018, was A$10,676,713, reflecting ongoing financial challenges[35] - Total assets decreased to A$26,033,074 in 2018 from A$35,859,449 in 2017, a decline of approximately 27.2%[26] - Long-term debt was reported at A$4,690,822 in 2018, down from A$16,748,877 in 2017, indicating a reduction in financial leverage[26] - The company recorded a provision for impairment loss of goodwill amounting to A$9,953,311 in 2018, contributing to the overall loss[24] - Cash and cash equivalents decreased to A$1,514,215 in 2018 from A$2,860,014 in 2017, a decline of approximately 47.2%[26] - The company incurred losses in 2018 but reported profits in 2017 and 2016 from its ASD products and software, indicating a volatile financial history[45] Funding and Capital - The company plans to seek additional funding through public or private financings to support ongoing operations and product development[39] - The company intends to finance operations through the issuance of securities, which may lead to dilution of existing shareholders' ownership[127] - The company may face challenges in raising sufficient capital to sustain and expand its business, particularly in a tight credit environment[64] - The company may rely on dividends and other distributions from its PRC subsidiaries to fund cash and financing requirements, which could be restricted by PRC laws[94] Market and Competition - The company faces significant competition in the 3D display market, with competitors having greater financial resources and experience, which could adversely affect its market position[48] - The company’s growth prospects could be harmed if it fails to attract customers for its 3D products and services[60] - The weakening global economy is contributing to decreased consumer spending, which may adversely affect the market for the company's products and services[72] - Significant adoption of 3D displays in the advertisement sector is contributing to market growth, with agencies utilizing 3D content on billboards[215] Operational Risks - The company has limited manufacturing experience and may struggle to produce sufficient quantities of products, which could hinder commercialization and revenue generation[53] - The company is exposed to risks related to intellectual property infringement claims, which could be costly and time-consuming to defend[57] - The company relies on distributors for its 3D products, and failure to retain or attract key distributors could materially impact its business[61] - The company relies heavily on the services of its senior management and key personnel, and losing them could materially disrupt operations and financial condition[66] - Competition for qualified personnel is intense, and the company may struggle to attract and retain key employees, which is critical for growth[69] - The company does not have business liability or disruption insurance coverage for operations in China and Hong Kong, exposing it to significant risks[71] Regulatory and Economic Environment - The company operates in a legal environment in the PRC that is subject to frequent changes and uncertainties, which may impair business operations[93] - Changes in PRC government regulations may impact the company's operations and financial performance[101] - The inability of the Public Company Accounting Oversight Board (PCAOB) to inspect audit documentation located in China may deprive investors of oversight benefits[98] - The company is subject to Australian takeover laws, which may discourage takeover offers and affect share acquisition[86] Technology and Innovation - The company has focused on the development, sale, and distribution of autostereoscopic 3D display technology and related products since 2015[138] - The Group's primary focus is on 3D autostereoscopic technology, with plans to lead the market by owning and controlling core technologies[162] - The Company aims to be recognized as a leader in providing end-to-end solutions using autostereoscopic display technology, with products ranging from commercial platforms to consumer electronics[163] - IMTE has developed an ASIC chip with ASD functions incorporated in all 3D products, aiming for a cost-effective solution[185] - The next generation ASIC chip with 8K and HDR functions is expected to be ready by 2020, enhancing 3D image quality[185] - IMTE is working on a solution to deliver glasses-free 3D images on large glass pane windows, which could significantly impact the advertising industry[182] Future Outlook - The company anticipates increased costs associated with the development of 3D products in the coming years, which may impact future profitability[35] - The company’s future prospects are uncertain due to risks associated with early-stage companies in evolving electronic technology industries[45] - The global 3D display market is expected to grow significantly due to increasing demand for glasses-free 3D technology[192] - The ASD technology is seen as a disruptive innovation that could replace traditional LCD displays in various applications[194] - The global 3D display market size is expected to reach USD 204.16 billion by 2025, exhibiting a CAGR of 19.4% from 2017 to 2025[215] - Recent advancements in 3D display technology have improved visual experience, picture clarity, and resolution, leading to increased adoption across various industries[216]