Revasum : FY21 Appendix 4E and Annual Financial Report

For personal use only

APPENDIX 4E - PRELIMINARY FINAL REPORT FOR THE

PERIOD ENDED 2 JANUARY 2022

1. Company Details
   Name of entity: Revasum, Inc.
   ARBN: 629 268 533
   Reporting Period: Fiscal period ended 2 January 2022
   Previous Corresponding Period: Fiscal period ended 3 January 2021
2. Results for Announcement to the Market

	2 Jan 2022	3 Jan 2021	Movement Up/(Down)
	US$'000	US$'000	US$'000	%
Revenue from ordinary activities	13,710	15,368	(1,658)	(11%)
Gross profit	4,843	4,888	(45)	-
Operating loss	(5,244)	(8,927)	3,683	41%
Loss from ordinary activities after tax attributable to	(1,965)	(9,156)	7,191	79%
members of the parent entity

1. Review of Operations and Financial Results
   Refer to the accompanying Annual Financial Report for the Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and accompanying notes.
   Also refer to the Operational Update and Directors' Report in the accompanying Annual Financial Report and accompanying announcement for further details and commentary on the results.
2. Dividends
   No dividends have been paid or are proposed to be paid by Revasum, Inc. for the fiscal period ended 2 January 2022 (2021: $Nil).
3. Net Tangible Assets per share:

	2 Jan 2022	3 Jan 2021
Net tangible assets per share (US$ per share)	0.11	0.08

1. Control Gained or Lost over Entities
   During the fiscal period, no control was gained or lost over entities.
2. Details of Associates and Joint Venture Entities
   The Group has no investments in associates or joint ventures during the reporting period.
3. Accounting Standards
   The annual financial report has been compiled using Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ("AASB").
4. Audit Status
   The Revasum, Inc. annual financial report for the fiscal period ended 2 January 2022 has been subject to audit by our external auditors, BDO Audit Pty Ltd. A copy of the independent audit report to the members of Revasum, Inc. is included in the accompanying annual report.

Rebecca Shooter-Dodd (President and CEO & Executive Director)

24 February 2022

For personal use only

REVASUM, INC.

A DELAWARE CORPORATION

ARBN 629 268 533

ANNUAL FINANCIAL REPORT

FOR THE PERIOD ENDED

2 JANUARY 2022

TABLE OF CONTENTS

only	Corporate Directory
Chairman's	Letter
Operational	Update
Directors' Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
For personal use	Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor's Report
Additional Shareholder Information

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CORPORATE DIRECTORY

Company

Revasum, Inc.

825 Buckley Road

San Luis Obispo, 93401 USA Phone: [phone] Website: www.revasum.com

Directors

Kevin Landis	Chairman, Non-Executive Director
Rebecca Shooter-Dodd	President and CEO & Executive Director
Ryan Benton	Non-Executive Director
Paul Mirabelle	Independent Non-Executive Director

Company Secretary

Rebecca Shooter-Dodd

Australian Securities Exchange Representative

Danny Davies

United States Registered Office

c/o Incorporating Services Ltd 3500 South Dupont Highway Dover, Delaware 19901 USA

Australian Registered Office

c/o Company Matters Pty Limited Level 12, 680 George Street Sydney, NSW 2000 Australia

United States Legal Adviser

Troutman Pepper Hamilton Sanders LLP

5 Park Plaza

Suite 1400

Irvine, CA, 92614 USA

Australian Legal Adviser

Maddocks

Angel Place Level 27

123 Pitt Street

Sydney, NSW 2000 Australia

Share Registries

Link Market Services	American Stock Transfer and Trust Company, LLC
Level 12, 680 George Street	6201, 15th Avenue
Sydney, NSW 2000 Australia	Brooklyn, NY 11219 USA
Telephone: [phone]	Telephone: [phone]

Securities Exchange Listing

Revasum, Inc. (ASX Code: RVS)

Chess Depository Interests ("CDIs") over shares of the Company's common stock are quoted on the Australian Securities Exchange. One CDI represents one fully paid share in the Company.

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CHAIRMAN'S LETTER

Fellow Shareholders,

While 2021 saw pandemic-related challenges affect supply chains and production across the semiconductor industry, Revasum was able to successfully navigate through these headwinds, and through a refocus and expansion of revenue streams for the business we are well placed to capture the positive momentum in demand we are now seeing in the Silicon Carbide (SiC) industry.

I am proud and optimistic of the progress we achieved during FY21. We were able to offset the decline in equipment revenue brought about by global supply chain disruptions with increases in our other revenue streams, including spare parts, upgrades and consumables. Improving the revenue stream mix has been a key strategic focus for the team and has resulted in a more consistent cashflow profile.

We are one of only a few companies globally with grinding and polishing technology designed specifically for SiC, a material that is hard to process. It is core to our business strategy and we remain committed to harnessing our extensive design and engineering expertise to meet our clients' needs. The growing sales order backlog of US$8.7 million at 18 January 2022 reflects increased SiC industry demand and our ability to capture this demand.

Most recently, Revasum achieved process acceptance (meeting agreed process criteria for the tool) on the first 6EZ SiC Polisher shipped to Europe. This is a significant achievement confirming that our technology works to its advanced specifications and solidifies our market leading position for SiC equipment. We are seeing strong elevation activity on our flagship 6EZ, which alongside the 7AF-HMG SiC Grinder, positions us well to capitalise on the increasing industry demand.

While revenue of US$13.7 million for FY21 was slightly down from FY20 (US$15.4 million) we were pleased by two emerging trends. First, and as previously mentioned, our focus on further diversifying our revenue streams was achieved with the spare parts, upgrades and consumables revenue streams up 13% year on year to US$6.2 million, representing 45% of total revenue. Secondly, we generated strong second half earnings momentum, totaling US$9.1 million. With an increasing sales order backlog, we are confident that the earnings momentum will continue.

Gross margin improved to 35.3% in FY21, up from 31.8% in FY20. This was achieved through list prices reviewed across all product lines and higher margin product mix.

Strengthening our balance sheet has been a key priority for us in FY21. We finished the financial year with US$4.3 million cash in the bank, and successfully completed an entitlement offer in Q1 of A$7.9 million (US$6.1 million). It was pleasing to see our two major shareholders, Firsthand Venture Investors and Perennial, take up their full entitlements, while we also welcomed several new institutional investors to our register.

Looking forward, the two key fundamentals underpinning Revasum's markets are very attractive:

• Global fab equipment spending for front end facilities is expected to increase 10% YOY in 2022 to an all-time high of over US$98 billion. This represents the third consecutive year of growth following increases of 39% in 2021 and 17% in 20201
• Our technology is a critical part of the supply chain for the manufacture of electric vehicles (EV), 5G and solar products. While these end markets are contributing to the significant growth in SiC products, the EV industry has been particularly influential and represents a significant growth opportunity. For EVs, automakers are switching to SiC invertors, for the superior semiconductor properties, which in turn assist in reducing EV weight, achieve faster charging and ensure longer driving ranges. As more automakers switch to SiC invertors for EVs, demand for SiC is expected to increase exponentially.

• https://www.semi.org/en/news-media-press-releases/global-fab-equipment-spending-projected-to-log-record-high-in-2022-to-mark-third-consecutive-year-of-growth-semi-reports

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