Alexium International : Half Year Report and Accounts

onlyuse personalForALEXIUM INTERNATIONAL GROUP LIMITED

HALF-YEAR REPORT

or the Six Months Ended 31 December 2021

PRESENTED IN US DOLLARS

ABN 91 064 820 408

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TABLE OF CONTENTS

Results for the Announcement to the Market-Appendix 4D
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Directors' Report
Declaration of Independence
Co	solidated Statement of Profit or Loss and Other Comprehensive Income
C	nsolidated Statement of Financial Position
Consolidated Statement of Changes in Equity

useConsolidated Statement of Cash Flows Notes on the Consolidated Statements Directors' Declaration Independent Auditor's Report

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RESULTS FOR ANNOUNCEMENT TO THE MARKET- APPENDIX 4D

ALEXIUM INTERNATIONAL GROUP LIMITED

ABN 91 064 820 408

This information is provided to the Australian Securities Exchange under ASX Listing Rule 4.2A (3). This information should be read in conjunction with the most recent annual financial report.

	Current reporting period:	01 July 2021 to 31 December 2021
	Previous reporting period:	01 July 2020 to 31 December 2020
	Revenue from ordinary activities		up	46.3%	to	5,283,851
	L ss from ordinary activities for the period after tax attributable to members	up	(8.9%)	to	(1,954,213)
	Net loss for the period attributable to members	up	(8.9%)	to	(1,954,213)
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						Franked
				Amount per		amount per
	Dividends			security		security
	Int rim dividend declared this period			Nil		Nil
	Interim dividend declared and paid in previous corresponding period		Nil		Nil
	Revenue from ordinary activities
useRevenue from ordinary activities increased over the prior year by 46.3% from increased sales in the PCM product line with the introduction
	of BioCool™ biobased products. Margin improved 7.6 percentage points over the same period prior year. The loss before finance costs of
	$0.9M was a 45.0% improvement versus the comparative period primarily due to increased revenue and decreased cost of sales. Operating

expenses are up 8.5% mainly because of the reduced internal development capitalisation of research and development costs. Total loss for the period of $2.0M was an 8.9% increase over the comparative period. Notably the derivative adjustment accounted for 0.7M of this loss.

	Net Tangible Assets	31-Dec-21	31-Dec-20
	Net Tangible Asset backing per ordinary shares	US (0.01) cents	US 0.08 cents
	C ntrolled entities acquired or disposed of:
	There were no entities acquired or disposed of during the current reporting period.
	Additional dividend/distributions information
	Not applicable
	Dividend/distribution reinvestment plans
	None
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	Associates and Joint Venture entities
	None
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DIRECTORS' REPORT

Your directors submit their report for the half-year ended 31 December 2021.

The names of the Group's Directors in office during the half-year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated.

onlyMs Rosheen Garnon

Brigadier General Stephen Cheney Mr Simon Moore

Dr Paul Stenson

Dr Bob Brookins

Mr Carl Dennis (appointed 01-Sep-21)

RESULTS AND REVIEW OF OPERATIONS

Principal activities

useThe Group's revenue is generated from the development and sale of innovative and proprietary chemistry solutions to various partners in the textile industry. The Group's proprietary technologies, Alexicool®, BioCool™ Eclipsys™, Alexigard™ and Alexiflam®, serve the phase change material (PCM) and flame retardant (FR) market opportunities where Alexium's product differentiation and technical service model creates distinction from others in the market.

Revenues were up 46.3% with increased sales of the Alexicool® and BioCool™ product lines. Gross margin year over year increased because of the introduction of biobased products along with changes in product mix versus the comparative period.

Operating expenses at $3.0M were up 8.5% versus the comparative period mainly due to decreased research and development costs being personalcapitalised to internal development costs on the balance sheet. The loss before financing costs decreased 45.0% to $0.9M from same period prior year with the increase in sales and gross profit. The net loss attributable to members for the period was $2.0M which increased $0.2M

from $1.8M in the comparative period. There was an $0.7M charge due to the embedded derivative increase for the period.

As of 31 December 2021, the cash position was $1,828,919 (30 June 2021: $2,932,673) and the Group had 644,892,054 ordinary shares on

issue (30 June 2021: 640,197,246).

COVID-19

In the first half of the year, the Group continued to monitor various aspects of COVID-19 that could impact the business such as employee wellbeing, customer activities and supply chain related activities such as raw material availability, shipping related activities and contract manufacturing impacts.

Management continues to take a multifaceted approach to reviewing the balance sheet for COVID-19 related asset impairment. Management has considered potential impacts by estimating the recoverable amount of intangible assets as part of impairment testing. The results of our assessment indicate that assets are not held at amounts higher than the recoverable amount. Further, no expected credit losses are recognised, and period end customer receivables are considered fully collectable.

SUBSEQUENT EVENTS

The Company has signed a letter of intent with Alterna CS to provide working capital funding to support the growth of the company. The Forcu rently contemplated facility is a three-year $3.0M asset-based facility which can be increased to $5.0M as the Company grows. The borrowing base consists of eligible accounts receivable and inventory. The initial fund usage interest rate is 8.25% and adjusts with upward

changes in the Wall Street Journal Prime Rate. Anticipated close date is 04 March 2022.

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration is included on the following page Dated this 25th day of February 2022 and was signed in accordance with a resolution of the Directors.

Dr. Bob Brookins

Chief Executive Officer

25 February 2022

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DECLARATION OF INDEPENDENCE

For personal use only

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