Integrated Media Technology : Basis of Presentation - Form 6-K

Basis of Presentation

The following unaudited pro forma consolidated financial statements were derived from the historical financial statements of Integrated Media Technology Limited ("IMTE") as at and for the year ended December 31, 2021 which were prepared in accordance with International Financial Reporting Standards as adopted by the International Accounting Standards Board.

The unaudited pro forma consolidated financial statements for the year ended December 31, 2021 assumes the following disposals had occurred on January 1, 2021:

(i)	100% equity interests in eGlass Technologies Ltd and its subsidiaries ("eGlass");

(ii)	100% equity interests in Grand Dynasty Limited and its subsidiary ("Grand Dynasty"); and

(iii)

the deemed disposal of the Company's equity interest due to a decrease from 40.75% to 23.96%, in Greifenberg Digital Limited and its subsidiaries ("Greifenberg") (collectively the "Dispositions").

The unaudited pro forma consolidated financial statements are provided for illustrative purposes only and do not reflect what IMTE's results of operations or financial position would have been had the Dispositions been completed on the dates assumed and are not necessarily indicative of IMTE's future results of operations or financial position.

The following unaudited pro forma consolidated financial statements and the accompanying notes to the unaudited pro forma consolidated financial statements should be read in conjunction with the historical consolidated financial statements of IMTE on Form 20 filed with the SEC on April 28, 2022.

INTEGRATED MEDIA TECHNOLOGY LIMITED

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2021

		IMTE			Greifenberg			eGlass			Grand Dynasty			Note			Pro forma adjustments			Unaudited Pro Forma
		A$			A$			A$			A$						A$			A$
		(Note 1)			(Note 2)			(Note 3)			(Note 4)
ASSETS
CURRENT ASSETS
Cash and bank balances			274,767				(148,672	)			(123,948	)			-								1				2,148
Trade and other receivables			486,121				-				(24,773	)			-								-				461,348
Right-of-use assets			513,942				-				(369,632	)			-								-				144,310
Other assets			2,006,636				-				(167,313	)			-								-				1,839,323
Total current assets			3,281,466				(148,672	)			(685,666	)			-								1				2,447,129
NON-CURRENT ASSETS
Plant and equipment, net			6,441,734				-				(2,301,752	)			-								-				4,139,982
Other assets - equipment deposits			11,459,195				-				(11,459,195	)			-								-				-
Financial asset at fair value through other comprehensive income			562,500				-				-				-								-				562,500
Intangible assets and goodwill			1,900,589				(1,900,589	)			-				-								-				-
Right-of-use assets			1,444,927				-				(1,444,927	)			-								-				-
Loan receivables			-				-				-				-				5				10,101,944				10,101,944
Investment in associate			-				-				-				-				6				207,326				207,326
Total non-current assets			21,808,945				(1,900,589	)			(15,205,874	)			-								10,309,270				15,011,752
TOTAL ASSETS			25,090,411				(2,049,261	)			(15,891,540	)			-								10,309,271				17,458,881
LIABILITIES
CURRENT LIABILITIES
Trade and other liabilities			2,424,717				(808,980	)			(359,676	)			-								-				1,256,061
Amounts due to related companies			247,406				-				-				-								-				247,406
Lease liabilities			425,567				-				(248,954	)			-								-				176,613
Derivative financial instruments			2,321,003				-				-				-								-				2,321,003
Convertible promissory notes			4,311,416				-				-				-								-				4,311,416
Total current liabilities			9,730,109				(808,980	)			(608,630	)			-								-				8,312,499
NON-CURRENT LIABILITIES
Lease liabilities			1,403,932				-				(1,403,932	)			-								-				-
			1,403,932				-				(1,403,932	)			-								-				-
TOTAL LIABILITIES			11,134,041				(808,980	)			(2,012,562	)			-								-				8,312,499
NET CURRENT (LIABILITIES)/ASSETS			(6,448,643	)			660,308				(77,036	)			-								1				(5,865,370	)
NET ASSETS			13,956,370				(1,240,281	)			(13,878,978	)			-								10,309,271				9,146,382
CAPITAL AND RESERVES
Issued capital			48,144,406				-				-				-								-				48,144,406
Foreign currency translation reserves			762,348				(38,949	)			252,397				2								-				975,798
Other reserves			62,500				-				-				-				7				701,400				763,900
Accumulated losses			(37,169,358	)			(457,440	)			(14,131,375	)			(2	)			8				9,607,871				(42,150,304	)
Equity attributable to equity shareholders of Integrated Media Technology Limited			11,799,896				(496,389	)			(13,878,978	)			-								10,309,271				7,733,800
Non-controlling interests			2,156,474				(743,892	)			-				-								-				1,412,582
TOTAL EQUITY			13,956,370				(1,240,281	)			(13,878,978	)			-								10,309,271				9,146,382
Ordinary shares issued			9,329,420

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INTEGRATED MEDIA TECHNOLOGY LIMITED

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2021

		IMTE			Greifenberg			eGlass			Grand Dynasty			Note			Pro forma adjustments			Unaudited Pro Forma
		A$			A$			A$			A$						A$			A$
		(Note 1)			(Note 2)			(Note 3)			(Note 4)
Revenue, net			193,113				-				(6,846	)			-								-				186,267
Interest income			18,864				(4	)			-				-								-				18,860
			211,977				(4	)			(6,846	)			-								-				205,127
(Loss)/ gain on fair value change in derivative financial instruments			(842,463	)			-				-				-								-				(842,463	)
Other income			335,807				-				-				-								-				335,807
			(294,679	)			(4	)			(6,846	)			-								-				(301,529	)
EXPENSES
Cost of sales			(149,447	)			-				-				-								-				(149,447	)
Employee benefit expenses			(1,613,922	)			10,925				659,008				-								-				(943,989	)
Depreciation and amortisation expenses			(1,326,811	)			-				26,889				-								-				(1,299,922	)
Professional and consulting expenses			(2,376,038	)			307,700				1,183,869				458								-				(884,011	)
Travel and accommodation expenses			(91,385	)			10,633				66,727				-								-				(14,025	)
Other expenses and supplies			(142,482	)			49				49,070				44								-				(93,319	)
Rental costs			(116,406	)			-				33,654				-								-				(82,752	)
Other operating expenses			(378,500	)			77,939				42,915				458								-				(257,188	)
Finance costs			(2,000,952	)			-				60,448				-								-				(1,940,504	)
Reversal/ (Provision) of allowance for inventory obsolescence			9,439				-				-				-								-				9,439
Provision for bad debts			(14,390	)			-				-				-								-				(14,390	)
Gain/ (loss) on disposal of subsidiaries			1,998,269				-				-				-								(512,218	)			1,486,051
Share of loss in associate			-				-				-				-								(86,664	)			(86,664	)
Exchange loss			(88,322	)			(11,616	)			43,227				-								-				(56,711	)
Total expenses			(6,290,947	)			395,630				2,165,807				960								(598,882	)			(4,327,432	)
Loss before income tax			(6,585,626	)			395,626				2,158,961				960								(598,882	)			(4,628,961	)
Income tax (expense)/credit			-				-				-												-				-
Loss for the year			(6,585,626	)			395,626				2,158,961				960								(598,882	)			(4,628,961	)
Other comprehensive income
Items that may be re-classified subsequently to profit or loss:
Fair value through other comprehensive income			62,500				-				-				-								-				62,500
Foreign currency translation			158,547				(36,080	)			225,833				2								-				348,302
Other comprehensive income for the year, net of tax			221,047				(36,080	)			225,833				2								-				410,802
Total comprehensive loss for the year			(6,364,579	)			359,546				2,384,794				962								(598,882	)			(4,218,159	)
Loss for the year attributable to:
Owners of the Company			(5,771,510	)			159,459				2,158,961				960								(598,882	)			(4,051,012	)
Non-controlling interests			(814,116	)			236,167				-				-								-				(577,949	)
			(6,585,626	)			395,626				2,158,961				960								(598,882	)			(4,628,961	)
Total comprehensive loss for the year attributable to:
Owners of the Company			(5,830,540	)			127,248				2,384,794				962								(598,882	)			(3,916,418	)
Non-controlling interests			(534,039	)			232,298				-				-								-				(301,741	)
			(6,364,579	)			359,546				2,384,794				962								(598,882	)			(4,218,159	)
Loss per share
- Basic and Diluted			(0.70	)																							(0.49	)

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Note

1.	The balances represent the amounts in IMTE's audited consolidated accounts as at December 31, 2021.

2.	The balances represent the amounts in Greifenberg's unaudited accounts as at as at December 31, 2021.

3.

The balances represent the amounts in eGlass's unaudited accounts as at December 31, 2021.

4.	The balances represent the amounts in Grand Dynasty's unaudited accounts as at December 31, 2021.

5.	The loan receivable of US$6,800,000 (equivalent to A$10,101,944) represents the sales proceeds for the disposal of eGlass by IMTE.

6.

The investment in associated company of A$201,326 represents the value of the Company's investment in Greifenberg after the Deemed Disposal in Greifenberg from 40.75% to 23.96%. Accordingly, the investment in Greifenberg was accounted for on an equity basis rather than consolidated basis immediately after the Deemed Disposal. Greifenberg was previously consolidated on our balance sheet when we owned a 40.75% interest because IMTE had effective control over Greifenberg.

7.	The amount of other reserve of A$701,400 represents the original investment cost in Greifenberg, which was adjusted as a result of the reduction interest of IMTE in Greifenberg from 40.75% to 23.96%.

8.	The amounts represent the adjustments to accumulated losses resulting from the Disposals. The reconciliation of the proforma accumulated losses for the year ended December 31, 2021 is as follow:

		IMTE			Greifenberg			eGlass			Grand Dynasty			Pro forma adjustments			Unaudited pro forma
		2021			2021			2021			2021			2021			2021
		A$			A$			A$			A$			A$			A$
Accumulated losses - beginning of year			(34,102,300	)			-				3,349,089				-				10,206,753				(20,546,458	)
Adjustment - current a/c & equity			-				(616,899	)			(19,639,425	)			(962	)			-				(20,257,286	)
Accumulated losses - equity movement			2,704,452				-				-				-				-				2,704,452
Loss for the year - 2021			(5,771,510	)			159,459				2,158,961				960				(598,882	)			(4,051,012	)
Accumulated losses - end of year			(37,169,358	)			(457,440	)			(14,131,375	)			(2	)			9,607,871				(42,150,304	)

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