Mobilicom (MOB) - 2022 Q4 - Annual Report

Financial Performance - Customer revenue in 2022 decreased by 35% compared to 2021, totaling $2.3 million, primarily due to supply chain challenges affecting production capabilities [18] - Sales revenue for the year ended December 31, 2022, was $2,327,058, a decrease from $3,578,603 in 2021 [83] - The profit after income tax for 2022 was a loss of $341,469, an improvement compared to a loss of $2,704,845 in 2021 [83] - Total revenue for the year ended 31 December 2022 was $2,327,058, a decrease of 35% from $3,578,603 in 2021 [106] - The company reported a loss after income tax expense of $341,469 for 2022, compared to a loss of $2,704,845 in 2021, indicating an improvement [106] - Total comprehensive income for the year was a loss of $910,094, which includes other comprehensive losses of $568,625 [110] - The company reported a loss before income tax of $327,483 for 2022, significantly improved from a loss of $2,695,679 in 2021 [170] Cash and Liquidity - The company ended 2022 with a cash balance of $19.0 million, providing a healthy runway for operations [21] - Cash and cash equivalents rose to $18,917,416, compared to $3,947,156 in the previous year, reflecting a strong liquidity position [107] - Cash at bank increased to $18,976,542 as of December 31, 2022, compared to $3,996,300 in 2021, indicating improved liquidity [170] - Cash flows from operating activities resulted in a net cash outflow of $4,468,304, compared to a smaller outflow of $1,806,179 in the previous year [110] Research and Development - Government R&D grants increased by 17.2% compared to 2021, amounting to $0.9 million [20] - Mobilicom secured $408,000 in a new U.S. Space Florida R&D program for existing innovation projects [31] - Research and development expenses for the year were $2,516,922, slightly higher than $2,374,700 in 2021, indicating continued investment in innovation [106] - Research and development expenses increased to $2,516,922 in 2022 from $2,374,700 in 2021, highlighting ongoing commitment to innovation [168] Product Development and Market Position - Mobilicom achieved 44 design wins, including 12 new wins in 2022, with 8 being Tier-1 customers [22] - The company successfully launched the SkyHopper Micro, designed for mass deployment of small drone fleets, which has been selected for integration by a Tier-1 manufacturer [22] - The AI-based Immunity Cybersecurity and Encryption (ICE) Cybersecurity Suite is positioned to serve a market forecasted to grow at a CAGR of 63% to $27 billion by 2028 [6] - Mobilicom's strategic partnership with Mistral aims to integrate its solutions into the U.S. defense industry [8] - The company expects 2023 to be a growth year, anticipating additional design wins and a ramp-up in manufacturing to scale revenues [12] - Mobilicom launched the SkyHopper Micro product, designed for mass deployment of small drone fleets, featuring ICE Cybersecurity software [28] Financial Position and Assets - Total assets increased significantly to $21,206,246 as of 31 December 2022, up from $5,945,599 in 2021 [107] - The total assets of the consolidated entity as of December 31, 2022, were $21,206,246, with net assets amounting to $17,860,907 [131] - The company recognized a net gain on fair value movement of warrants amounting to $3,768,466, contributing to total income [106] Executive Compensation - The executive remuneration framework includes fixed and variable components, with a focus on aligning executive rewards with shareholder interests [62] - Non-executive directors' fees were capped at a maximum annual aggregate remuneration of $250,000 as approved in February 2017 [61] - The short-term incentives (STI) program is linked to specific annual targets and key performance indicators (KPIs) such as profit contribution and customer satisfaction [65] - The long-term incentives (LTI) include share-based payments awarded over a three-year period based on shareholder value increases [66] - Key management personnel remuneration includes non-recurring payments totaling $244,551 related to the period from May to December 2021 [71] Shareholder Information - The company completed an oversubscribed $19 million IPO in August 2022, issuing 3.22 million units at $4.13 per unit [25] - The share price at the end of the financial year decreased to $0.01 from $0.04 at the start of the year [83] - Basic earnings per share for 2022 was a loss of $0.05, compared to a loss of $0.91 in 2021 [83] - The company has a total of 96,546,734 unissued ordinary shares under option as of the report date [89] Expenses and Liabilities - Total liabilities increased to $3,345,339 from $2,616,480 in 2021, primarily due to the addition of warrants financial liability [107] - Selling and marketing expenses rose to $2,415,883 in 2022, up from $1,657,958 in 2021, indicating increased investment in marketing efforts [166] - General and administration expenses also increased to $2,532,033 in 2022, compared to $1,376,829 in 2021, driven by higher salaries and professional fees [169] - The company incurred payments to suppliers and employees amounting to $8,231,267, which is an increase from $6,572,578 in the previous year [110]