IMT(IMTE) - 2020 Q4 - Annual Report

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]