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Annual Report 2023
OUR VISION
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OUR MISSION
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TOTM TECHNOLOGIES | 1 |
Annual Report 2023
- TOTM TECHNOLOGIES
Corporate Profile
TOTM Technologies Limited ("TOTM Technologies" orthe "Company" and together with its subsidiaries, the "Group") provides end-to-endidentity management and biometrics products, powering Digital Identity and Digital Onboarding solutions. The Group's multimodal range of technologies includes internally developed technologies as well as technology licensed from strategic partners such as National Institute of Standards and Technology ("NIST") rated biometrics matching software that has proven effective in ultra large-scaleidentity deployments. The Group's in-houseexpertise comprises innovators, disruptors and technologists providing the full technology suite in biometrics such as multi-modaltechnologies (face, finger, iris), eKYC, real-timeliveness detection, age classification and patented cryptograph that stores data encrypted with biometrics.
Leveraging on its strong execution experience and the robust technology platforms from its own subsidiaries and strategic technology partners, the Group's Digital Identity and Biometrics Business Unit currently serves mainly ministries and government agencies. The Company's solutions have processed over 370 million IDs worldwide, facilitating some of the world's largest national ID programs and immigration proceedings.
The Group has presence across North America, Europe, Asia-Pacific and Latin America.
In September 2022, Incode Technologies ("Incode"), Inc. a next-generation identity verification platform, has formed a valuable partnership with TOTM Technologies as its reseller. This collaboration aims to introduce Incode Omni, one of the world's most powerful identity solutions, to the Indonesian market as part of the Incode's Asia Pacific expansion. By joining forces with TOTM Technologies, Incode is further strengthening its presence in the region and offering innovative identity solutions to meet the growing demand.
Additionally, the Company's ongoing partnership with Presight.AI Ltd, a G42 company, to drive digital transformation and deploy their combined proprietary technologies allows the Company to deliver exceptional biometric and AI capabilities, as well as high-performance solutions, to partners and clients across the Middle East, North Africa (MENA), and Southeast Asia. By expanding its global footprint in the digital identity space, the Company aims to continuously enhance its presence and contribute to the advancement of the industry.
The Group is constantly looking to expand its coverage to more commercial sectors such as medical insurance, healthcare, banking electronic payments, transport, and telecommunications-related applications.
The Company was listed in August 2015 on the Catalist Board of the SGX-ST. In December 2021, TOTM Technologies was included in the MSCI Singapore Micro Cap Index, designed to measure the performance of the micro-cap segment of the Singapore market.
Annual Report 2023
TOTM TECHNOLOGIES | 3 |
Letter to Shareholders
Dear Shareholders,
On behalf of the Board, we are pleased to present the annual report of TOTM Technologies for the financial year ended 31 May 2023 ("FY2023").
FY2022 BUSINESS REVIEW
TOTM Technologies has successfully positioned itself as a leader in the identity management industry. With a focus on security, biometrics and artificial intelligence, we are at the forefront of technological innovations that are reshaping the digital ID and digital onboarding landscape.
Our primary objective remains to facilitate digital transformation for governments to empower citizens and businesses alike. By leveraging multi-modal biometric technologies such as face, finger, and iris recognition, we offer our customers enhanced efficiencies and provide their clients with secure and convenient transaction pathways. Our biometric solutions have already become integral to some of the largest national identity programs globally.
In FY2023, we continue to strategically pursue targeted acquisitions and establish valuable partnerships to strengthen our product portfolio and expand our expertise in the identity management sphere. These initiatives were complemented by our own efforts in research and development.
Furthermore, we have successfully built a reputation for delivering high-quality products and services. Our commitment to excellence, coupled with our technological prowess, has positioned us as a trusted partner for organizations seeking to optimize their identity management processes and ensure the security of their digital transactions.
Looking ahead as we enter the financial year ending
31 May 2024, TOTM Technologies is well-positioned to capitalize on the continued expansion of the digital ID and digital onboarding markets. Our ongoing efforts in research and development, combined with strategic partnerships and targeted acquisitions, will further enhance our product offerings and expertise. We remain dedicated to driving innovation, meeting the evolving needs of our customers, and shaping the future of identity management.
FINANCIAL PERFORMANCE
Our financial report for FY2023 is a testament to our unwavering dedication to becoming a leader in biometric technology and digital ID platforms. Throughout the year, we have consistently prioritized investments and strategic initiatives that propel us towards this goal. In FY2023, the Company has further acquired the remaining 49% interest in the investment in International Biometric Pte Ltd and its subsidiary, PT International Biometric
Indonesia ("InterBIO") underscores our commitment to building a robust and cutting-edge technology stack in the identity management domain.
FY2023 revenues were $19.4 million, up from $11.1 million in FY2022, representing 74.1% increase from our Digital Identity Business. The revenues were derived from supplying biometric identification systems integrated with the National ID database and providing biometric systems to a law enforcement agency in Indonesia; and offering technical support to the Ministry of Home Affairs and maintaining Indonesia's current biometric national identity system.
The Group placed focus on business development after acquiring the remaining 49% interest in InterBIO and narrowed its loss before interest, tax, depreciation and amortisation to $6.4 million from $7.6 million and slightly reduced the loss for the year to $11.9 million from $12.3 million.
The Group's total equity or net asset as at 31 May 2023 of $68.7 million are relatively consistent as compared to 31 May 2022 of $68.4 million, and current ratios remain healthy at 7.32 as at 31 May 2023 as compared to 5.46 as at 31 May 2022. Slight increase in total equity was mainly due to issuance of new ordinary shares which resulted in an increase in the share capital, which was partially offset by an increase in accumulated losses and other reserves recognised during the year, arising from the acquisition of remaining 49% interest in InterBIO. No major changes in our leverage ratios as the Group has no bank borrowings for the FY2023.
In FY2023, net cash flows used in operating activities amounted to approximately $5.6 million. This included mainly from operating cash outflows before changes in working capital of $5.3 million, outflow in contract asset of $1.4 million, which were offset by an increase trade and other receivables of $1.3 million. Net cash flows used in investing activities of $0.7 million was mainly due to purchases of property plant and equipment and intangibles relates to software during the year. Net cash flows generated from financing activities amounted to approximately $10.9 million, mainly due to net proceeds from issuance of new ordinary shares by way of a placement exercise amounting to $12.2 million, which were offset by the share issue expenses and repayment of lease liabilities and interest. As a result of the above, there was a net increase of approximately $4.6 million in cash and cash equivalents during the period.
POISED FOR GROWTH
Looking ahead, TOTM Technologies is focused on driving stability and making the right investments to ensure we are well-positioned for future growth. With innovation and R&D at the forefront, our sales and marketing efforts to further increase our pipeline remain our priorities as we continue to invest in strategic partnerships, our technology, deployment capabilities, and people.
Annual Report 2023
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Totm Technologies Ltd. published this content on 08 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2023 02:59:01 UTC.
