Announcement PDF Appendix 4E Preliminary final report Appendix 4E Preliminary final report 1. Company Details Name of entity ENERGY TECHNOLOGIES LIMITED ABN or equivalent company reference Financial year ended (‘current period’) 38 002 679 469 Financial year ended (‘previous period’) 30 June 2024 30 June 2023 2. Results for announcement to the market $A'000 2.1 Revenues from operating activities Down 17% to 12,899 2.2 Profit from operating activities after tax attributable to members Up 31% to (10,537) 2.3 Profit for the period attributable to members Up 31% to (10,537) 2.4 Dividends Amount per security Franked amount per security Final dividend NIL NIL Interim dividend NIL NIL 2.5 Record date for determining entitlements to the dividend Not applicable 2.6 Brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood: Energy Technologies Limited (EGY) has reported a consolidated loss for the year after tax and minority interests of $10,537,212 (FY2023 loss of $15,344,996). The FY2024 results include a loss after tax of $9,002,326 (FY2023 loss of $14,127,919) reported by subsidiary Bambach Wires and Cables Pty Ltd (BWC). The FY2023 result included a $5,194,327 impairment of the carrying value of intangible development assets and purchased intellectual property. There will be further discussion of the result below. 30/06/2024 Appendix 4E Page 1 of 21 Appendix 4E Preliminary final report 3. Details of Individual and Total Dividends Date dividend is payable Amount per security Franked amount per security at 30% tax Amount per security of foreign source dividend Current year -¢ -¢ -¢ Previous year -¢ -¢ -¢ Interim dividend: Current year -¢ -¢ -¢ Previous year -¢ -¢ -¢ Final dividend: Total dividend per security (interim plus final) Current year Previous year Ordinary securities -¢ -¢ Preference securities -¢ -¢ 4. Dividend reinvestment plan Details of any dividend reinvestment plans in operation: N/A The last date for the receipt of an election notice for participation in any dividend or distribution reinvestment plan: N/A 5. Statement of retained earnings Current period - $A'000 Previous corresponding period - $A'000 Accumulated losses at the beginning of the financial year (47,163) (31,818) Net loss attributable to members (10,537) (15,345) Accumulated losses at the end of the financial year (57,700) (47,163) 6.1 Net Tangible Asset backing Net tangible asset* backing per ordinary security Current period Previous corresponding period ($0.01) $0.011 * Net tangible assets calculations above include the right-of use assets and lease liabilities. 30/06/2024 Appendix 4E Page 2 of 21 Appendix 4E Preliminary final report 6.2 Earnings per security (EPS) Current period Basic EPS (cents) (3.0) (5.2) (10,537) (15,345) 348,961,286 292,875,846 Net loss after tax for the period attributable to members ($’000s) Weighted average number of ordinary securities Previous corresponding period 7. Details of entities over which control has been gained or lost during the period 17.1 A Name of entity No entities were acquired during the period 7.2 A Date from which control was gained 7.3 A Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from operating activities during the period and the profit or loss of such entities during the whole of the previous corresponding period 17.1 B Name of entities 7.2 B Date from which control was gained / lost 7.3 B Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from operating activities during the period and the profit or loss of such entities during the whole of the previous corresponding period No entities were disposed of during the period 8. Details of Associates and Joint Ventures: Name of entity Percentage holding 30 June 2024 Percentage holding 30 June 2023 N/A 8.1 Where material to an understanding of the report - aggregate share of profits (losses) of these entities, details of contributions to net profit for each of these entities, and with comparative figures for each of these disclosures for the previous corresponding period: 30/06/2024 Appendix 4E Page 3 of 21 Appendix 4E Preliminary final report 9 - Comments by directors EGY has reported a consolidated loss after tax and minorities for FY2024 of $10,537,212 (FY2023 loss after tax and minorities $15,344,996). Wholly owned subsidiary Bambach Wires and Cables Pty Ltd (Bambach) reported a loss after tax of $9,002,326 (FY2023 loss $14,127,919). During the period, the company resolved to change the business strategy. Post a wide-ranging review, the company moved to de-risk the company away from its reliance on manufacturing. The company signed a distribution agreement with Gantner to provide renewable energy solutions in Australia and New Zealand, engaged with overseas manufacturers and agreed supply agreements for purchased sales of Low Voltage cables and ancillary products and implemented the internal manufactured strategy of concentrating the operations to high margin low-voltage production. While this has resulted in the short term revenue decline as experienced in the last quarter of the Financial Year, it provides the company with better financial controls on outgoing operational cash flow. Pleasingly, albeit small, the company has now generated sales in both the Purchased Sales division and the Renewable Energy space. While the manufacturing division will continue to provide regular cash flow generation, the two new divisions will be concentrated around tender wins on larger scale contracts. The company is buoyed by these small, short term results and looks forward to the second half of FY25 once the strategic pivot in operations is finalised. 30/06/2024 Appendix 4E Page 4 of 21 Appendix 4E Preliminary final report 10. This report is based on accounts to which one of the following applies.  The accounts have been audited.  The accounts have been subject to review. The accounts are in the process of being audited or subject to review.  The accounts have not yet been audited or reviewed. 11. Description of likely dispute or qualification if the accounts have not yet been audited or subject to review or are in the process of being audited or subjected to review: The Preliminary Financial Report is based on the Group’s 2024 annual financial report, the accounts of which are in the process of being audited. No matters have arisen thus far which would result in a dispute or qualification in the current year. 12. Description of dispute or qualification if the accounts have been audited or subject to review: N/A Sign here: Print name: Matthew Driscoll Director Date: 29 August 2024 30/06/2024 Appendix 4E Page 5 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 30 June 2024 Notes CONTINUING OPERATIONS CONSOLIDATED 2024 2023 $’000 $’000 Sale of goods Cost of sales Gross (loss) / profit 2a 3 12,899 (14,171) (1,272) 15,535 (15,766) (231) Other revenue Marketing expenses Occupancy expenses Administrative expenses Finance costs Depreciation and amortisation expenses Impairment of intangible assets Other expenses LOSS FOR THE YEAR BEFORE INCOME TAX Income tax (expense) / benefits LOSS FOR THE YEAR AFTER INCOME TAX 2b 173 (19) (151) (4,881) (2,258) (1,708) (217) (10,333) (206) (10,539) 65 (8) (104) (5,108) (2,094) (2,482) (5,194) (231) (15,387) 43 (15,344) 2 (1) (10,537) (15,345) 3 3 LOSS / (PROFIT) ATTRIBUTABLE TO MINORITY INTEREST LOSS ATTRIBUTABLE TO MEMBERS OF ENERGY TECHNOLOGIES LIMITED The accompanying notes form part of these financial statements. 30/06/2024 Appendix 4E Page 6 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2024 CONSOLIDATED 2024 $’000 2023 $’000 (10,539) (15,344) Movement in foreign exchange relating to translation of controlled foreign entities - (4) Exchange difference on foreign exchange relating to minorities - (4) Revaluation of Plant and Equipment to fair value (net of deferred tax) 185 - TOTAL OTHER COMPREHENSIVE INCOME / (LOSS) 185 (8) (10,354) (15,352) (10,352) (15,349) (2) (3) (10,354) (15,352)  Basic loss per ordinary share (cents) (3.0) (5.2)  Diluted loss per ordinary share (cents) (3.0) (5.2) LOSS FOR THE YEAR OTHER COMPREHENSIVE INCOME FOR THE YEAR AFTER TAX: Items that will be reclassified subsequently to profit or loss when specific conditions are met: TOTAL COMPREHENSIVE LOSS FOR THE YEAR TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Members of the parent entity Minority equity interest Earnings per Share From continuing operations: The accompanying notes form part of these financial statements. 30/06/2024 Appendix 4E Page 7 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2024 CONSOLIDATED Notes 2023 $’000 2024 $’000 CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS 67 2,158 4,832 89 7,146 49 2,791 5,279 252 8,371 9,710 3,051 119 102 12,982 20,128 9,805 2,782 12 206 101 12,906 21,277 2,519 6,283 837 764 10,403 2,326 10,228 859 820 14,233 10,875 2,634 27 13,536 23,939 (3,811) 1,469 1,824 25 3,318 17,551 3,726 48,055 5,963 496 (57,700) (3,186) (625) (3,811) 45,239 5,778 496 (47,163) 4,350 (624) 3,726 NON-CURRENT ASSETS Property, plant and equipment Right of use assets Intangibles Deferred tax assets Other non-current assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS 5 6 CURRENT LIABILITIES Trade and other payables Borrowings Short-term provisions Lease liabilities TOTAL CURRENT LIABILITIES 7 6 NON-CURRENT LIABILITIES Borrowings Lease liabilities Long-term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS / (LIABILITIES) 7 6 EQUITY Issued capital Reserves Share based payment reserve Accumulated losses Parent interest Minority interest TOTAL EQUITY / (DEFICIENCY IN EQUITY) 8 The accompanying notes form part of these financial statements 30/06/2024 Appendix 4E Page 8 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY As at 30 June 2024 Issued Reserves Share Based Accumulated Capital $’000 Balance at 1 July 2022 Payment Reserve $’000 $’000 Minority Losses Interest $’000 $’000 Total $’000 41,769 5,782 680 (31,818) (621) 15,792 - - - (15,345) 1 (15,344) - (4) - - (4) (8) - (4) - (15,345) (3) (15,352) 3,250 - - - - 3,250 - - 36 - - 36 220 - (220) - - - 3,470 - (184) - - 3,286 45,239 5,778 496 (47,163) (624) 3,726 - - - (10,537) (1) (10,538) - 185 - - - 185 - 185 - (10,537) (1) (10,353) 2,816 - - - - 2,816 2,816 - - - - 2,816 48,055 5,963 496 (57,700) (625) (3,811) Comprehensive income (Loss) for the year Other comprehensive loss for the year Total comprehensive loss for the year Transactions with owners, in their capacity as owners, and other transfers Contributions of equity – net of capital raising costs Unlisted share options Unlisted share options – expired Total transaction with owners, in their capacity as owners, and other transfers Balance at 30 June 2023 Comprehensive income (Loss) for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners, in their capacity as owners, and other transfers Contributions of equity - net of capital raising costs Total transaction with owners, in their capacity as owners, and other transfers Balance at 30 June 2024 The accompanying notes form part of these financial statements. 30/06/2024 Appendix 4E Page 9 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2024 CONSOLIDATED Notes 2024 2023 $’000 $’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Receipts from Government Grants - R & D grant Receipts from Government Grants – wages subsidies Interest Received Payments to suppliers and employees Finance costs NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES 14,866 28 1 (19,991) (2,121) 4 (7,217) 16,591 1,122 21 1 (22,783) (1,948) (6,996) 34 (93) (59) (1,094) 432 (662) 2,954 (138) 6,812 200 (1,697) (787) (50) 7,294 3,400 (151) 4,600 8,354 (7,268) (795) (515) 7,625 18 49 67 (33) 82 49 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment Purchases of property, plant and equipment Proceeds from government grants NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Less outflows of raising capital Proceeds from convertible notes Proceeds from borrowings Repayment of borrowings Repayment of lease liabilities Repayment of convertible notes Repayment of loan from director NET CASH INFLOW FROM FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH HELD Add: Opening cash brought forward CLOSING CASH AT THE END OF THE YEAR The accompanying notes form part of these financial statements. 30/06/2024 Appendix 4E Page 10 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 1. BASIS OF PREPARATION a) Basis of preparation The preliminary final report does not include all the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. The preliminary final report should be read in conjunction with the half-year financial report of Energy Technologies Limited as at 31 December 2023. It is also recommended that the financial report be considered together with any public announcements made by Energy Technologies Limited and its controlled entities during the year ended 30 June 2024 in accordance with the continuous disclosure requirements arising under the Corporations Act 2001. This preliminary final report has been prepared in accordance with the requirements of the Australian Securities Exchange listing rules. This preliminary final report does not constitute the full financial report for the year ended 30 June 2024. b) Going Concern This report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. The consolidated entity incurred a loss after tax and excluding minority interest of $10,537,212 (June 2023: loss of $15,344,996). During the year the group generated negative cash flows from operations of $7,217,625 (June 2023: negative $6,996,441). This loss includes an inventory write down of $528,409 for the year (FY2023: $798,286) following a further detailed review of inventory including slow-moving stock. At 30 June 2024 the consolidated entity had a deficiency in net assets of $3,810,533 (June 2023: positive $3,726,281). The June 2024 net assets include intangible assets of $119,089 (FY2023: $12,498) The deferred tax asset in the 2023 financial statements of $205,515 has been fully impaired at 30 June 2024. The consolidated entity’s current liabilities exceed its current assets by $3,257,891 (2023: $5,861,503). Included in current liabilities are employee entitlements of $836,614 which are not expected to be settled in cash in full within the next twelve months. In addition, included in current liabilities are convertible notes of $1,600,000, the terms of which is that these mature within twelve months or such later date as is agreed in writing between the parties. Furthermore, current liabilities include an amount of $190,000 owing to a director, the terms of which is that the amount matures as is agreed in writing between the parties. These conditions give rise to a material uncertainty that may cast significant doubt upon the Consolidated Entity’s ability to continue as a going concern. The Directors believe, notwithstanding the above financial performance, position and operating cash outflows, this result, along with funding raised post the reporting date (refer to note 10 on subsequent events), as well as its track record of raising capital is not a cause of concern considering the results for the year ended 30 June 2024 were:  in part affected by staff retention issues;  impacted by continuing transitional issues in the relocation, expansion and then fully commissioning of the new manufacturing facility in Rosedale, regional Victoria;  impacted by delays in the construction of the new silicone line shed, which is expected to be completed during the 2025 financial year;  impacted by the factory not operating at full capacity, albeit that it is now close to being fully operational; and  cash constraints which impacted the supply of raw material. The Directors’ are of the view that once capacity levels are reached at Rosedale, positive cash flows from operations will occur. 30/06/2024 Appendix 4E Page 11 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 b) Going Concern (continued) The Director’s also note the following:  A contributing factor to the decline in revenue in FY2024 was the company's change in business planning. The business is now focusing on maintaining safe manufacturing margins supported by a focus on the renewable energy sector and purchased product to sell into previously manufactured product clients. This resulted in a shift in capital employed to re-position the factory while investing in the lateral business opportunities;  As announced in December 2023, the company has revised its business strategy to include purchased imported product delivered into the domestic market;  In addition, in May 2024 the company announced its first distribution agreement signing, further expanding its sales opportunities and ability to provide end to end solutions to the market;  The current sales order book remains strong;  Convertible notes of $6,811,500 were raised during the year of which $50,000 were redeemed;  A capital raising of $3.0m by way of a placement of new shares during the period (refer note 8); and  As part of their assessment of impairment to assets, management have reviewed the carrying values of all underlying assets. Plant and equipment was revalued at 30 June 2024, and was revalued at $9,140,994 (excluding Capital Work in progress), which is $185,543 higher than the previously recorded amount. Matters already occurred post the reporting date:  Further working capital has been provided by way of unsecured loans of $950,000 received post balance date (refer note 10); and  The potential to raise additional capital (as and when required). Matters expected to occur in the view of the Directors:  The Group has maintained ongoing support from its financiers and shareholders throughout 2024 and in the period subsequent to the date of this report;  The potential to renegotiate and or extend debt facilities;  The potential to raise additional capital, including the issue of further additional convertible notes (as and when required); and  As is prudent for a Group of this size, and consistent with the factors noted in the points in para 1(b) above, the directors continue to manage the working capital and capital expenditure requirements in the best interests of shareholders. This includes the preparation, and review of cash flow forecasts and other longer-term projections which in the view of the Directors align with the strategy of the Group to achieve growth predominantly through the Rosedale facility operating at higher production capacity levels. Management have prepared a cash flow projection (including the above assumptions) for the period to 30 September 2025 and a FY2024-25 budget that supports the ability of the consolidated entity to continue as a going concern. As a consequence of these matters, the Directors believe the consolidated entity will continue as a going concern and it is appropriate to prepare these financial statements on that basis. In the event that the consolidated entity is unable to achieve the matters detailed above, it may not be able to continue as a going concern and therefore the consolidated entity may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial statements. No adjustments have been made to the recoverability and classification of recorded asset values and the amount and classification of liabilities that might be necessary should the consolidated entity and company not continue as going concerns. 30/06/2024 Appendix 4E Page 12 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2023 $’000 2024 $’000 2. REVENUES FROM CONTINUING OPERATIONS a) Revenue from continuing operations Sale of goods transferred at a point in time 12,899 15,535 12,899 15,535 31 - 1 141 173 13,072 1 64 65 15,600 b) Other revenues from continuing operations R&D Grant Finance revenue Other income Total revenue and other revenue from continuing operations 30/06/2024 Appendix 4E Page 13 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2023 $’000 2024 $’000 3. EXPENSES Included in the determination of net profit / (loss) before tax from continuing operations are the following expenses. Cost of Sales: Cost of Goods Sold Factory direct expenses less recovery Freight Inventory write down and manufacturing variances 8,696 3,678 687 1,110 14,171 10,411 2,999 761 1,595 15,766 Gross Profit % - pre inventory write down (1.3%) 8.8% 819 86 7 6 8 71 711 1,708 904 48 37 9 8 771 705 2,482 192 1,929 137 2,258 841 1,108 145 2,094 302 - 285 5,194 16 107 Depreciation and amortisation of non-current assets: Plant and equipment Building and leasehold improvements Furniture, fixtures and fittings Motor vehicles Computer equipment Intangibles amortisation Right of use asset depreciation Total depreciation and amortisation of non-current assets Borrowing costs expensed: Borrowing expense Interest expense Lease finance charges Superannuation contributions Impairment of intangible assets Operating lease rental expense: Minimum lease payments – short term leases 30/06/2024 Appendix 4E Page 14 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2024 $’000 2023 $’000 (10,539) (15,344) 926 71 711 1 (178) (12) 35 137 10 1,006 771 705 (8) 5,194 (4) 2 36 3 145 - 633 447 193 206 163 (1) (20) 439 (183) 64 (44) 154 30 38 (7,217) (6,996) 4. STATEMENT OF CASH FLOWS Reconciliation of the net loss after tax to the net cash flows from operating activities Loss after income tax Add/(less) non-cash items Depreciation of non-current assets Amortisation of intangible assets Depreciation of right of use assets Unrealised foreign exchange movements Non-cash movement of intangible assets Hire Purchase loan write back Net loss on disposal of property, plant and equipment Share-based payment Hire purchase interest charges Lease liability interest charges Make good provision Changes in assets and liabilities (Increase) / decrease in trade and other receivables (Increase) / decrease in inventories (Decrease) / Increase in trade and other payables (Increase) / decrease in deferred tax asset (Increase) / decrease in other-current assets (Increase) / decrease in other-non-current receivables Net movement in provisions for employee entitlements Net cash (outflow) from operating activities 30/06/2024 Appendix 4E Page 15 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2023 $’000 2024 $’000 5. PROPERTY, PLANT AND EQUIPMENT Leasehold Improvements Leasehold improvements at independent valuation 1,026 625 - (153) 1,026 472 8,115 13,326 Less: Accumulated Impairment Losses - (614) Less: Accumulated depreciation - (3,924) 8,115 8,788 569 545 9,710 9,805 Less: Accumulated depreciation Plant & Equipment Plant and equipment at independent valuation Capital work in progress at Cost Movement in Carrying Amounts Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Capital Work In Progress $’000 Leasehold Improvements $’000 Consolidated: Carrying amount at the beginning of the year 545 472 8,788 9,805 Additions 24 - 69 93 Depreciation expense - (47) (879) (926) Transfer from HP assets unencumbered - - 622 622 Loss on disposal - - (35) (35) Proceeds from disposal - - (34) (34) Revaluation to fair value - 601 (416) 185 569 1,026 8,115 9,710 Carrying amount at the end of the year 30/06/2024 Plant and Equipment $’000 Total $’000 Appendix 4E Page 16 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2023 $’000 2024 $’000 6. RIGHT OF USE ASSETS AND LEASE LIABILITIES Right of Use Assets Office and factory premises 4,891 4,059 Less: Accumulated depreciation (2,068) (1,962) 2,823 2,097 Plant and equipment 276 964 Less: Accumulated depreciation (48) (279) 228 685 3,051 2,782 The consolidated entity has leased office premises under operating leases with various expiry dates, some with options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below: Office and Plant and Total Factory equipment 2024 Premises $’000 $’000 $’000 Balance at the beginning of the financial year 2,097 685 2,782 Additions 1,326 276 1,602 - (622) (622) Depreciation expense (600) (111) (711) Balance at the end of the financial year 2,823 228 3,051 Transfer to unencumbered assets 30/06/2024 Appendix 4E Page 17 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 2024 2023 $’000 $’000 6. RIGHT OF USE ASSETS AND LEASE LIABILITIES (Cont’d) Lease Liabilities CURRENT Lease liabilities Hire purchase agreements 764 764 699 121 820 2,634 2,634 3,398 1,716 108 1,824 2,644 (a) (b) (d) (e) (f) (c) 1,358 2,708 355 72 1,600 190 6,283 1,626 3,510 302 4,600 190 10,228 (f) (d) (e) 9,762 1,051 62 10,875 17,158 1,469 1,469 11,697 NON-CURRENT Lease liabilities Hire purchase agreements 7. BORROWINGS CURRENT Secured Borrowings Debtor finance facility Trade finance facility Grow Equipment finance loan Procuret Equipment finance loan Convertible notes Executive and director loan Total Current Borrowings NON-CURRENT Secured Borrowings Convertible notes Grow Equipment finance loan Procuret Equipment finance loan Total Non-Current Borrowings Total Borrowings 30/06/2024 Appendix 4E Page 18 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 7. BORROWINGS (Cont’d) a) Secured Debtor Finance Facility. Interest is charged on the facility at the base rate, currently 12.85% less margin rate of 1.85%. No maturity date. b) Secured Trade Finance Facility. Term Charges 5.85% per 120 days. No maturity date. c) Secured loan from director of EGY and subsidiary Bambach Wires and Cables Pty Ltd for $190,000. Interest rate 10.00% per annum. Maturity Date is as agreed by the parties. d) Secured equipment finance loan with balance outstanding 30 June 2024 of $1,405,623. Interest rate 13.81% per annum. Maturity date August 2027. e) Secured Equipment Finance loan with balance outstanding at the end of the quarter $134,617. Interest rate 15.80% per annum and Lender Procuret. Matures 5 March 2026. f) Convertible Notes issued of $11,361,500 to noteholders. These notes have a face value of $1.00, attract a coupon rate of 10% and are convertible at a share price of $0.08 per note. Of these notes $600,000 matures in October 2024, $1,000,000 matures in February 2025, and $3,000,000 matures in October 2025. These notes amount to $4,600,000 and interest is paid monthly. The remaining notes amount to $6,761,500, the funds of which were received from August 2023 to March 2024, mature twenty-four months from the issue date or such later date as is agreed in writing between the parties. Interest is payable on maturity. g) Summary of finance facilities in place at 30 June 2024: Financing facilities: Total facility amount at 30/06/2024 $’000 Amount drawn at 30/06/2024 $’000 Debtor finance and trade finance facility 8,100 4,066 Equipment Finance Loans 1,540 1,540 Convertible notes 11,362 11,362 190 190 21,192 17,158 Director loan Total financing facilities Unused financing facilities available 30/06/2024 $4,034 Appendix 4E Page 19 of 21 Appendix 4E Preliminary final report ENERGY TECHNOLOGIES LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2024 CONSOLIDATED 8. CONTRIBUTED EQUITY $ 2023 $ 48,055,588 45,239,038 2024 Issued capital 422,074,788 (337,659,83