IMT(US:IMTE)2020-06-15 23:16Financial 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]