IMT(US:IMTE)2023-04-28 20:31Financial 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].