| Restatement of Previously Issued Financial Statements |
2
Restatement of Previously Issued Financial Statements
During
the preparation of the consolidated financial statements for the year ending June 30, 2023, the Company’s management identified
the following material misstatements in the Company’s financial statements:
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● |
The
Company did not properly recognize the machinery spare parts acquired from the related party Good Earth Oils Pty Ltd. As a result,
the plant and equipment were understated, and the related party transactions were not properly disclosed. To correct this item, the
fixed assets and related party payables were recorded, and the relevant depreciation expense was recognized. |
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● |
The
Company did not properly record prepayment of stock which resulted in an overstatement in equity and related party loan payables.
To correct this error, both of accounts were reduced accordingly. |
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● |
The
Company did not properly record revenue during the cut-off period at the financial year end. As a result, the revenue relating to
the prior year was recorded in the current year. To correct this cut-off issue, the revenue was reduced and retained earnings of
prior years were increased. |
| |
● |
The
Company did not recognize sufficient bad debt provision of the account receivables relating to ROBE tolling revenue. Based on the
deed of debt settlement with ROBE, account receivables were overstated since no bad debt provision was made. To correct this issue,
the account receivables were written off accordingly. |
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● |
The
Company did not properly record the stock balance of Meal resulting in the Company mistakenly accounting for the ROBE consignment
stock as its own stock. As a result, the Cost of Goods Sold was understated. To correct the issue, the Cost of Goods Sold
was increased and the inventory balance was decreased. |
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● |
The
Company did not recognize the lease assets and liabilities for solar PV systems, biofuel gensets and site plant of fuller driver
land lease. To correct this error, the right-of-use asset (“ROU”) and lease liability accounts were recognized. The relevant
depreciation of ROU and interest accrual of lease liability were recorded and reclassification from the administration expenses previously
disclosed. |
Based
on an analysis of the factors, the Company determined that the errors discussed above were material to the Company’s previously
issued financial statements for the year ended June 30, 2023, and these financial statements need to be restated. The Company’s
prior period financial statements should no longer be relied upon.
The
impact of the restatements on the line items within the previously reported consolidated Audited consolidated Statement of Financial
Position at June 30, 2023 and 2022, included in the Company’s Form F-1 filed with the SEC on April 29, 2024 (the
“Original Report”) are reported below.
Summary
of Error Corrections and Prior Period Adjustments
| Statement
of Financial Position as of June 30, 2023 | |
As
Previously Reported | | |
Adjustment | | |
As
Restated | |
| Trade and other
receivables | |
$ | 4,579,879 | | |
$ | (142,626 | ) | |
$ | 4,437,253 | |
| Prepayment of seed purchase | |
$ | 3,951,896 | | |
$ | (279,199 | ) | |
$ | 3,672,697 | |
| Tax assets | |
$ | 224,215 | | |
$ | 29,545 | | |
$ | 253,760 | |
| Inventories | |
$ | 1,143,033 | | |
$ | (122,564 | ) | |
$ | 1,020,469 | |
| Total current assets | |
$ | 10,319,851 | | |
$ | (514,844 | ) | |
$ | 9,805,007 | |
| Property, plant and equipment | |
$ | 10,261,910 | | |
$ | 280,682 | | |
$ | 10,542,592 | |
| Right-of-use asset | |
$ | - | | |
$ | 1,040,472 | | |
$ | 1,040,472 | |
| Total non-current assets | |
$ | 12,934,382 | | |
$ | 1,321,154 | | |
$ | 14,255,536 | |
| Accounts receivable | |
| | | |
| | | |
| | |
| Total assets | |
$ | 23,254,233 | | |
$ | 806,310 | | |
$ | 24,060,543 | |
| Trade and other payables | |
$ | 6,473,495 | | |
$ | 239,273 | | |
$ | 6,712,768 | |
| Lease liability, current | |
$ | - | | |
$ | 82,386 | | |
$ | 82,386 | |
| Related party loans | |
$ | 4,585,751 | | |
$ | (1,397,745 | ) | |
$ | 3,188,006 | |
| Total
current liabilities (1) | |
$ | 10,211,821 | | |
$ | 271,954 | | |
$ | 10,483,775 | |
| Lease liability, non-current | |
$ | - | | |
$ | 971,752 | | |
$ | 971,752 | |
| Related party loans | |
$ | 2,982,499 | | |
$ | (108,570 | ) | |
$ | 2,873,929 | |
| Total
non-current liabilities | (1) |
$ | 5,061,069 | | |
$ | 863,182 | | |
$ | 5,924,251 | |
| Other assets | |
| | | |
| | | |
| | |
| Total liabilities | |
$ | 15,272,890 | | |
$ | 1,135,136 | | |
$ | 16,408,026 | |
| Retained earnings | |
$ | 4,051,390 | | |
$ | (339,057 | ) | |
$ | 3,712,333 | |
| Retained earnings attributable to members of the parent entity | |
| | | |
| | | |
| | |
| Total equity attributable
to equity holders of the Company | |
$ | 6,633,877 | | |
$ | (339,057 | ) | |
$ | 6,294,820 | |
| Non-controlling interest | |
$ | 1,347,466 | | |
$ | 10,231 | | |
$ | 1,357,697 | |
| (1) | Includes
the correction of a footing error of $ |
| Statement of Financial Position as of June 30, 2022 | |
As Previously Reported | | |
Adjustment | | |
As Restated | |
| Accounts receivable | |
$ | 3,717,696 | | |
$ | (77,938 | ) | |
$ | 3,639,758 | |
| Other assets | |
$ | 1,373,489 | | |
$ | (294,733 | ) | |
$ | 1,078,756 | |
| Retained earnings attributable to members of the parent entity | |
$ | 2,541,200 | | |
$ | (372,671 | ) | |
$ | 2,168,529 | |
The
impact of the restatements on the line items within the previously reported Audited Consolidated Statement of Profit or Loss and Other
Comprehensive Income for the year ended June 30, 2023 and 2022, previously filed in the Original Report is as follows:
| Statement of Profit or Loss and Other Comprehensive Income (Loss) for
the year ended June 30, 2023 | |
As Previously
Reported | | |
Adjustment | | |
As Restated | |
| Cost of goods sold (2) | |
$ | 20,498,069 | | |
$ | 3,564,534 | | |
$ | 24,062,603 | |
| Gross profit | |
$ | 8,551,276 | | |
$ | (3,564,534 | ) | |
$ | 4,986,742 | |
| General and administrative expenses (3) | |
$ | 3,331,864 | | |
$ | (864,432 | ) | |
$ | 2,467,432 | |
| Finance expenses | |
$ | 552,076 | | |
$ | 60,659 | | |
$ | 612,735 | |
| Occupancy costs (1) | |
$ | 40,890 | | |
$ | (40,890 | ) | |
$ | - | |
| Employee benefits expense (1) | |
$ | 2,302,641 | | |
$ | (2,302,641 | ) | |
$ | - | |
| Depreciation (1) | |
$ | 461,074 | | |
$ | (461,074 | ) | |
$ | - | |
| Profit before income tax | |
$ | 1,911,004 | | |
$ | 43,844 | | |
$ | 1,954,848 | |
| Profit from continuing operations | |
$ | 1,801,126 | | |
$ | 43,844 | | |
$ | 1,844,970 | |
| Profit attributable to: | |
| | | |
| | | |
| | |
| Members of the parent entity | |
$ | 1,399,080 | | |
$ | 33,613 | | |
$ | 1,432,693 | |
| Non-controlling interest | |
$ | 402,046 | | |
$ | 10,231 | | |
$ | 412,277 | |
| (1) | Certain
prior year amounts have been reclassified to conform to the presentation in the current period.
These reclassifications had no effect on the reported results of operations. |
| (2) | Includes
$436,629 of depreciation, $40,890 of occupancy costs, and $2,154,793 of employee benefits
expense reclassified to conform to the presentation in the current period. |
| (3) | Includes
$24,445 of depreciation and $147,848 of employee benefits expense reclassified to conform
to the presentation in the current period. |
| Statement of Profit or Loss and Other Comprehensive Income (Loss) for the year ended June 30, 2022 | |
As Previously
Reported | | |
Adjustment | | |
As Restated | |
| Cost of goods sold | |
$ | 18,797,541 | | |
$ | 294,733 | | |
$ | 19,092,274 | |
| Administrative expenses | |
$ | 1,139,999 | | |
$ | 77,938 | | |
$ | 1,217,937 | |
| General and administrative expenses | |
$ | 1,139,999 | | |
$ | 77,938 | | |
$ | 1,217,937 | |
The
impact of the restatements on the line items within the previously reported Audited Consolidated Statements of Changes in Equity for
the year ended June 30, 2023, previously filed in the Original Report is as follows:
| Statement of Changes in Equity for the year ended June 30, 2023 | |
As Previously Reported | | |
Adjustment | | |
As Restated | |
| Retained earnings, balance at 1 July 2022 | |
$ | 2,652,310 | | |
$ | (372,670 | ) | |
$ | 2,279,640 | |
| Profit attributable to members of the parent entity, retained earnings | |
$ | 1,399,080 | | |
$ | 33,613 | | |
$ | 1,432,693 | |
| Retained earnings, balance at 30 June 2023 | |
$ | 4,051,390 | | |
$ | (339,057 | ) | |
$ | 3,712,333 | |
| Non-controlling interests | |
$ | 402,046 | | |
$ | 10,231 | | |
$ | 412,277 | |
| Non-controlling interests, balance at 30 June 2023 | |
$ | 1,347,466 | | |
$ | 10,231 | | |
$ | 1,357,697 | |
| Total equity, balance at 1 July 2022 | |
$ | 6,180,217 | | |
$ | 372,670 | | |
$ | 6,552,887 | |
| Profit attributable to members of the parent entity, total equity | |
$ | 1,801,126 | | |
$ | 43,844 | | |
$ | 1,844,970 | |
| Total equity, balance at 30 June 2023 | |
$ | 7,981,343 | | |
$ | (328,826 | ) | |
$ | 7,652,517 | |
|