DataDot Technology : DDT Half Year Financial Report 2022

APPENDIX 4D

Half Year Report

for the half year ended 31 December 2021

Contents	Page
Appendix 4D - Half Year Report	2
Financial Report	3

ABN : 54 091 908 726

8 Ethel Ave Brookvale NSW 2100 P : [phone] www.datadotdna.com

Data Technology Ltd

Half Year Report - December 2021

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ASX Announcement

22 February 2022

DataDot Technology Limited - December 2021 - Appendix 4D and Financial Report

DataDot Technology Limited attaches the following documents relating to the results for the half year ended 31 December 2021.

• Appendix 4D; and
• Financial Report

These reports have been authorised for release by the Board of Directors of DataDot Technology Limited.

For further details contact the undersigned.

Yours faithfully

DataDot Technology Limited

David Mackenzie

Company Secretary

Email: [e-mail]

About DataDot: DataDot Technology Limited provides world leading asset identification, management, protection and authentication solutions that deliver great value to customers. For more information please visit www.datadotdna.com.

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Data Technology Ltd

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DataDot Technology Limited			Appendix 4D
ABN : 54 091 908 726			Half Year Financial Report
Reporting period	Half year ended 31 December 2021
Previous reporting period	Half year ended 31 December 2020
Results for announcement to the market	31 Dec 21	31 Dec 20	Change	Change
Revenue		$	$	$	%
	1,825,357	1,735,973	89,384	5.15%
Gross Profit		1,315,967	949,480	366,487	38.60%
Expenses		710,259	665,741	44,518	6.69%
EBITDA		613,091	369,971	243,120	65.71%
Profit / (Loss) from ordinary activities after tax attributable	6,295,171	256,730	6,038,441	2352.06%
to members
Net Profit / (Loss) attributable to members	6,295,171	256,730	6,038,441	2352.06%
Net tangible asset backing per ordinary share shown in cents	0.0030	0.0018	0.0012	66.67%

Dividends

No dividends were paid or made payable during the half year ended or since 31 December 2021.

Commentary

Please refer to the attached Directors' report which does not form part of the financial report for the half year ended 31 December 2021.

Other information

Control gained over entities having a material effect

N/A

Loss of control over entities having a material effect

N/A

Dividend or distribution reinvestment plans

N/A

Details of associates and joint venture entities

N/A

Audit status

This report is based on accounts that have been subject to review.

Attachments

Additional disclosure requirements can be found in the notes to the attached half year financial report.

Signed By

Ray Carroll - Chairman

22 February 2022

Data Technology Ltd

Half Year Report - December 2021

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Financial Report

for the half year ended 31 December 2021

Contents	Page
Directors' Report	5
Auditor's Independence Declaration	8
Consolidated Statement of Profit or Loss	9
Consolidated Statement of Comprehensive Income	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Notes to the Financial Statements	14
Directors' Declaration	20
Independent Auditor's Review Report	21

Data Technology Ltd

Half Year Report - December 2021

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Directors' Report

for the half year ended 31 December 2021

Your directors submit their report, together with the financial statements of the consolidated entity ("DataDot") consisting of DataDot Technology Limited ("DTL") and the entities it controlled at the end of or during the half year ended 31 December 2021.

Directors

The directors of the Company at any time during or since the end of the half-year are as follows:

Mr Ray Carroll (Chairman)

Mr David Lloyd (Chairman of the Audit and Risk Management Committee)

Mr Bradley Kellas (Managing Director)

Principal activities

The principal activities of DataDot during the half year were to develop, manufacture and distribute customisable asset identification solutions that include:

1. DataDotID - polymer and metallic microdots containing etched data that is unique to the assets to which the microdots are attached;

1. DataTraceID - a chemical fingerprint added to products to authenticate their identity and Vault Asset Registers ‑ databases that record asset identification data and are accessible by law(iii) provenance; and

enforcement agencies and insurance investigators.

There has not been any significant change in the nature of these activities during the half year.

Headline Profit

The Group is reporting a first half-year after tax profit of $6,295.2K. Of this $5,790.9k is attributable to the recognition of DTL's unused tax losses on to the Balance Sheet in accordance with AASB 112-Income Taxes. AASB 112 - Income Taxes specifies that a deferred tax asset should be recognised for unused tax losses when it is probable that future taxable profit will be available against which the unused tax losses will be utilised.

The unused tax losses being recognised in this financial period were accumulated in the years prior to the new Board being appointed in May 2019. It is the Board's view, considering the positive turnaround in the company's performance since that time and the expectation of future taxable profits of DTL, that it is now appropriate that the unused tax losses be recognised as a deferred tax asset in the books of the Company.

In practical terms the effect of this recognition is that subject to any changes in Australia's current corporate tax rate, the company is not required to pay company tax on future profits of approximately $22.2 million.

Review of operations

The Group has posted a first half- year profit before tax of $508.7k from its trading operations. This is a significant increase (96%) on the $260.2k profit before tax achieved in the prior comparable period ("pcp"). Total revenue for the half year is up by $89.4k (5.1% from the pcp) to $1,825.4k.

The major contribution to this continued improvement in our bottom-line result has been the combination of an increase in Royalty revenues stemming from our collaboration with Datadot South Africa in the European OEM automotive market and an overall across the board reduction in our cost of sales.

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