BuildingIQ : Preliminary Final Report for the year ended 31 December 2020

For personal use only

BuildingIQ, Inc.

Appendix 4E

Preliminary Final Report

1. Company details
Name of entity:	BuildingIQ, Inc.
ARBN:	605 422 166
Reporting period:	For the year ended 31 December 2020
Previous period:	For the year ended 31 December 2019
2. Results for announcement to the market
		Change			2020
		$	%		$
2.1 Revenues from ordinary activities (Continuing)	(148,805)	(11%)	to	1,187,584
2.2 Revenues from ordinary activities (Discontinued)	(166,925)	(3%)	to	4,863,288
2.3 Total revenues from ordinary activities	(315,730)	(5%)	to	6,050,872
2.4 Revenue and other income (Continuing)	(146,718)	(11%)	to	1,187,584
2.5 Revenue and other income (Discontinued)	(1,034,552)	(16%)	to	5,467,288
2.6 Total Revenue and other income	(1,181,270)	(15%)	to	6,654,872
2.7 Loss from ordinary activities after tax
attributable to the members of BuildingIQ, Inc.	304,677	(5%)	to	(5,640,564)
(Continuing)
2.8 Loss from ordinary activities after tax
attributable to the members of BuildingIQ, Inc.	(425,110)	8%	to	(5,664,459)
(Discontinued)
2.9 Total loss from ordinary activities after tax	(120,433)	1%	to	(11,305,023)
attributable to the members of BuildingIQ, Inc.
2.10 Total comprehensive loss for the year
attributable to the members of BuildingIQ, Inc.	787,299	(13%)	to	(5,181,507)
(Continuing)
2.11 Total comprehensive loss for the year
attributable to the members of BuildingIQ, Inc.	(425,110)	8%	to	(5,664,459)
(Discontinued)
2.12 Total comprehensive loss for the year	362,189	(3%)	to	(10,845,966)
attributable to the members of BuildingIQ, Inc.
2.6 Dividends
Nil

Comments on financial performance:

Operationally 2020 was a challenging year due to COVID-19, despite the uncertain period in which businesses are operating, BuildingIQ 's revenue from ordinary activities decreased 5%, receipts from customers (incl. GST) increased 6% to $7.87m, and net cash used in operating activities significantly decreased 51% to $1.20m.

In the US, sales activities remained constrained largely due to the slow ramp up effects due the impacts of COVID- 19, painstaking reduction of the workforce for the operations of the buildings and commercial real estate industry

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in general and issues faced by delayed supply chain upheavals. Despite this, the Company has successfully renegotiated contracts with its key anchor clients with higher commercial value and ensured the delivery of same high quality service commitments.

Based on various business developmental activities and planned expansion of its product offerings, the Company's next version of the platform is slated now to be launched in second half of 2022 to include these modules and technologies to meet the needs of diverse customer base.

Looking ahead, BuildingIQ will continue to focus on optimizing its cash flows and achieving financially astute growth. We will strengthen our position in current markets and leverage strategic partnerships to accelerate our business in North America. We will also continue to drive more of our services to existing clients while exploring new geographies.

Receivership of Subsidiaries

From 21 December 2020, the Company continues to be under suspension from official quotation per its request from the correspondence received by subsidiaries BuildingIQ Pty Ltd and Buildingsense Australia Pty Ltd regarding the appointment of Receivers and Managers over certain assets (namely the bank accounts and accounts receivable) of the subsidiaries and subsequent notification by the ASX.

Liquidation of Buildingsense Australia Pty Ltd.

The company engaged Price Waterhouse Coopers (PwC) for the liquidation of one of its subsidiaries in Australia, Buildingsense Australia Pty Ltd. PwC has completed its investigations into the company's affairs and have not identified any further avenues of recovery or lines of investigation. The Receivers and Managers of the Company are expected to retire upon which PwC will proceed to finalize the liquidation and request the Australian Securities & Investments Commission to deregister the Company.

Other matters

SNAPS Holding Company ('SNAPS'), major shareholder and secured lender of BuildingIQ Group, continues to work diligently to ensure and protect of its investment and that they remain committed towards the growth of the Company.

For past 5 months, the company has been working closely with ASX through its legal advisors to actively engage in pursuing the opportunity to reinstate company's listing at the Exchange.

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3. Statement of profit or loss and other comprehensive income
		Consolidated
	2020	2019
Note	$	$
Continuing operations
Revenue from continuing operations	1,187,584	1,336,389
Other income from continuing operations	-	(2,087)
Revenue & other income from continuing operations	1,187,584	1,334,302
Cost of sales	(562,887)	(600,366)
Gross profit	624,697	733,936
Expenses
Sales and marketing	(34,292)	(399,314)
Employment expenses	(865,240)	(1,143,659)
Administrative expenses	(846,765)	(805,517)
Impairment expenses	(2,656,625)	(3,936,019)
Finance costs	(25,731)	(80,282)
Depreciation & amortisation		(1,382,210)	(641,242)
Loss before income tax expense	(5,186,166)	(6,272,097)
Income tax expense		-	-
Loss from continuing operations, net of tax	(5,186,166)	(6,272,097)
Discontinued operations
Loss from discontinued operations, net of tax		(5,664,459)	(5,239,349)
Loss for the year after income tax expense	(10,850,625)	(11,511,446)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation		459,057	(23,565)
Other comprehensive loss for the year, net of tax		459,057	(23,565)
Total comprehensive loss for the year	(10,391,566)	(11,535,011)
Net loss attributable to;
Owners of the parent entity	(11,305,023)	(11,184,590)
Non-controlling interest		454,398	(326,856)
	(10,850,625)	(11,511,446)
Total comprehensive loss attributable to;
Owners of the parent entity	(10,845,966)	(11,208,155)
Non-controlling interest		454,398	(326,856)
		(10,391,568)	(11,535,011)

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4. Statement of financial position

Assets

Current assets

Cash and cash equivalents Trade and other receivables R&D grant receivable Other current assets

Assets held for sale

Total current assets

Non-current assets

Property, plant and equipment Right of use assets Goodwill

Other Intangible assets Total non-current assets

Total assets

Liabilities

Current liabilities

Trade and other payables Employee benefits Deferred revenue Borrowings

Lease liabilities

Other current liabilities

Liabilities held for sale Total current liabilities

Non-current liabilities Employee benefits Lease liabilities

Total non-current liabilities

Total liabilities

Net (liabilities)/assets

Equity

Issued capital

Reserves

Non-controlling interest

Accumulated losses

Total equity

		Consolidated
		2020	2019
Note	$	$
		21,882	702,702
		795,646	3,600,896
		-	2,671,990
		98,514	556,190
		916,042	7,531,778
16		29,630	-
		945,672	7,531,778
		26,068	56,306
		-	526,974
17		-	931,805
		-	3,876,181
		26,068	5,391,266
		971,740	12,923,044
		685,746	2,351,959
		254,291	605,122
		125,937	254,831
		590,840	2,983,368
		-	283,974
		644,002	416,313
		2,300,816	6,895,567
16		2,683,369	-
		4,984,185	6,895,567
		-	91,688
		-	288,385
		-	380,073
		4,984,185	7,275,640
		(4,012,445)	5,647,404
		55,190,043	54,467,679
		943,063	474,651
		(262,639)	(717,037)
		(59,882,912)	(48,577,889)
		(4,012,445)	5,647,404

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5. Statement of cash flows		Consolidated
		2020	2019
	Note	$	$
Cash flows from operating activities
Receipts from customers (including GST)		7,872,316	7,455,340
Payments to suppliers (including GST)		(4,886,739)	(6,854,537)
Payments to employees		(3,205,521)	(4,959,682)
Payments for interest		(981,001)	(563,044)
R&D tax refund received		-	2,494,439
Net cash used in operating activities		(1,200,945)	(2,427,484)
Cash flows from investing activities
Payments for plant and equipment		-	(13,279)
Payments for intangible assets		(530,000)	(2,588,719)
Cash acquired on business acquisition		-	-
Payments for business acquisition		-	-
Net cash used in investing activities		(530,000)	(2,601,998)
Cash flows from financing activities
Proceeds from borrowings		1,146,304	5,581,390
Repayment of borrowings		-	(4,879,126)
Repayment of lease liabilities		-	(418,898)
Proceeds from issues of shares		-	3,460,795
Capital raising costs (capitalised)		-	-
Net cash generated by financing activities		1,146,304	3,744,161
Net decrease in cash and cash equivalents		(584,641)	(1,285,321)
Cash and cash equivalents at the beginning of the
financial year		702,702	1,975,777
Effects of exchange rate changes on cash and cash
equivalents		(85,646)	12,246
Cash and cash equivalents at the end of the financial year	18	32,415	702,702

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