Announcement PDF Ai-Media Technologies Limited Appendix 4E Preliminary final report 1. Company details Name of entity: ABN: Reporting period: Previous period: Ai-Media Technologies Limited 12 122 058 708 For the year ended 30 June 2023 For the year ended 30 June 2022 2. Results for announcement to the market $ Revenues from ordinary activities up 3.3% to 61,769,967 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) up 200.8% to 3,310,552 Loss from ordinary activities after tax attributable to the owners of AiMedia Technologies Limited down 18.4% to (4,017,064) Loss for the year attributable to the owners of Ai-Media Technologies Limited down 18.4% to (4,017,064) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments Revenue for the period was $61,769,967, up 3.3% from the prior year (30 June 2022: $59,784,026). Revenue share of technology sales (including hardware and SaaS) increased to 39% of total revenue, compared to 30% in the prior year. EBITDA for the Group was profit of $3,310,552 up 200.8% from the prior period (30 June 2022: profit of $1,100,574). EBITDA growth was driven by increase in higher margin technology sales. EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents the profit under AASBs adjusted for specific items. The directors consider EBITDA to be one of the key financial measures of the Group. The loss for the Group after providing for income tax amounted to $4,017,064, an improvement of 18.4% year on year (30 June 2022: $4,923,715). Refer to the attached Directors' report 'Review of Operations' section for further explanation. Ai-Media Technologies Limited Appendix 4E Preliminary final report The following table summarises key reconciling items between statutory loss after income tax and EBITDA: Consolidated 2023 2022 $ $ Revenue Less: Direct employee costs Less: Other direct costs including inventory expenses 61,769,967 (20,750,957) (4,158,191) 59,784,026 (23,409,456) (3,506,507) Gross profit* Add: Other revenue** Less: Indirect costs or overheads Less: Income tax expense 36,860,819 456,469 (39,623,352) (1,711,000) 32,868,063 313,246 (37,882,754) (222,270) Loss after income tax expense Add: Finance costs Add: Income tax expense Less: Interest income (4,017,064) 761,594 1,711,000 (50,169) (4,923,715) 1,366,631 222,270 (17,285) Loss before interest and taxation (EBIT) Depreciation and amortisation expense (1,594,639) 4,905,191 (3,352,099) 4,452,673 EBITDA 3,310,552 1,100,574 * ** Not all allocation of indirect costs or overheads to direct employee costs and other direct costs. This consists of a one off reversal of an over accrual of USA sales tax. 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security 6.91 Previous period Cents 6.47 The net tangible assets calculation includes rights-of-use assets of $318,220 (30 June 2022: $634,918) and the corresponding lease liabilities of $345,713 (30 June 2022: $599,381). 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. Ai-Media Technologies Limited Appendix 4E Preliminary final report 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements have been audited and an unmodified opinion has been issued. 11. Attachments Details of attachments (if any): The Annual Report of Ai-Media Technologies Limited for the year ended 30 June 2023 is attached. 12. Signed As authorised by the Board of Directors. Signed ___________________________ Anthony Abrahams Director Sydney Date: 29 August 2023 2023  ANNUAL REPORT AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA World leading AI-powered captioning solutions CONTENTS ABOUT AI-MEDIA 01 HIGHLIGHTS 02 CEO AND CHAIR LETTERS 04 PRODUCTS AND TECHNOLOGY 06 BOARD OF DIRECTORS 08 DIRECTORS’ REPORT 11 AUDITOR’S INDEPENDENCE DECLARATION 24 FINANCIAL REPORT 25 DIRECTORS’ DECLARATION 63 SHAREHOLDER INFORMATION 69 CORPORATE DIRECTOR 73 HIGHLIGHTS CEO & CHAIR LETTERS PRODUCTS & TECHNOLOGY BOARD OF DIRECTORS DIRECTORS’ REPORT FINANCIAL REPORT CORPORATE DIRECTORY ABOUT AI-MEDIA AI-Media is the leading captioning, transcription, and translation provider globally, with over 9 million minutes captured on its iCap platform a month. The Company has deployed the latest in artificial intelligence (AI) technology to transform its market offering to better serve the growing demand for high-quality captioning worldwide. The demand for captioning, transcription and translation has grown far beyond its broadcasting origin. AI-Media’s best-in-class technology provides the only end-to-end captioning solution in market, from encrypting source data to encoding, captioning and translation. AI-Media is uniquely positioned as a global leader in the live captioning and translation industry with six offices across three continents servicing live streaming in media, events, corporate, education, government, municipalities and more. 1 2 AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA Highlights TECH GROSS PROFIT 20.2m $ UP 30% (FY22: $15.5M) TOTAL GROSS PROFIT 36.9m $ UP $4.0M (FY22: $32.9M) HIGHLIGHTS CEO & CHAIR LETTERS PRODUCTS & TECHNOLOGY BOARD OF DIRECTORS TOTAL REVENUE 1 DIRECTORS’ REPORT FINANCIAL REPORT CORPORATE DIRECTORY LEXI REVENUE MONTHLY LEXI MINUTES 3 UP $2.0M (FY22: $59.8M) UP 45% (FY22: $5.4M) UP 44% (FY22: 2.4M) TECH REVENUE 2 TOTAL EBITDA CASH BALANCE 4 61.8m 7.8m $ $ 24.0m 3.3m $ $ UP 33% (FY22: $18.0M) UP >200% (FY22: $1.1M) >3.4m 17.0m $ UP $1.8M (FY23 OP. CF: $3.5M) GROWTH IN CAPTIONING MINUTES Increasing iCap usage (minutes) underpinning conversion opportunity to higher margin LEXI solutions. ICAP NETWORK USAGE (MONTHLY MINUTES) +21% LEXI USAGE (MONTHLY MINUTES) 3.4m 9.1m +44% 7.6m 2.4m 6.1m 1.0m Jun 21 Jun 22 Jun 23 1. FY23 and FY22 revenue from ordinary activities, excludes interest and other income 2. Includes revenue from Hardware, SaaS & Support 3. Based on management information 4. Cash balance as at 30 June 2023 Jun 21 Jun 22 Jun 23 3 4 AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA HIGHLIGHTS Chair’s letter DEANNE WEIR CHAIR Dear fellow Shareholders, This has been another year of significant transformation for your Company, and I am pleased to present the Annual Report for the financial 2023 year (FY23). We have continued to refine our product solutions and enhance our technology, to ensure we are well positioned for increased growth in an expanding global captioning, transcription and translation market. Our improved financial performance over the year was underpinned by our high‑quality technology and scalable suite of solutions, that are designed to meet the varying quality, security and accuracy needs of our customers. This increased flexibility allowed us to attract new customers and continue to deliver great value to our existing customers. Some customers have changed their service mix, swapping out human delivered services where their needs are better met by our technology led solutions. This change in services impacts our revenue mix, pleasingly we have continued to deliver both topline revenue growth and significant improvement to the bottom line during this ongoing transformation. Our FY23 financial performance demonstrates the reformation in our business approach towards higher quality revenue streams, which underpinned FY23 revenue of $61.8 million, a 3.3% increase on FY22. Gross Profit of $36.9 million, a 12% increase on FY22 with over 54% of Gross Profit now coming from technology revenues. The Company delivered $3.3 million of earnings before interest, tax depreciation and amortisation (EBITDA), an increase of 201% compared to FY22, further highlighting increased operating leverage in the business. As we continue our transformation into higher margin, SaaS products, we have observed a growing demand for language services across entertainment, government, and corporate clients. Through our engagement with customers across the globe we have continued to build our reputation for delivering extremely accurate, low-cost captioning and translation services, and have been rewarded with new premium contract signings from customers including Google and SBS, in addition to renewed agreements with Foxtel and Al Jazeera. We remain committed to driving further growth and profitability via broadening our SaaS offerings and believe our product suite is well-placed to take advantage of mandated spending across captioning and translation services by potential customers including broadcasters. Social inclusion and equity is in our DNA. Our Company has a long history of advancing social inclusion throughout all business operations and making the world’s content accessible to all. Last year we launched the Leonie Jackson Education Grant, and I am pleased to share that the 2022 recipient is Sylvia Ciechanowski. In the year ahead, Sylvia will put the $10,000 grant towards completing the PostProfessional Doctor of Audiology Program at A.T. Still University. We continue to nurture a diverse workplace that fosters inclusivity and career development. As at 30 June 2023 40% of AI-Media’s leadership team, 54% of our employees and 60% of our board identify as women. We continue to build upon our purpose to be inclusive to all and continue to be focused on our commitment to achieve growth by investing in our people and products. We believe it is this vision that deepens our appeal to potential customers, making AI-Media an attractive captioning partner of choice. Throughout the year the transformation strategy was at the forefront of AI-Media’s work, with continued investment being made in the business to accelerate growth and deliver significant value to shareholders. As a fellow shareholder I believe the share price has not reflected the inherent value of our Company. We are seeking to rectify this by continuing to improve our product suite, upselling to our existing customer base and winning new customers. Ending the year with a cash balance of $17.0 million (from which the final amounts of US$5.25 million for previous acquisitions will be paid in Q1 FY24) puts us in a good position to capitalise on growth opportunities as they arise. Despite the mismatch between the share price performance and the inherent value of the business, the current view of the Board is that we are better to preserve available cash for growth opportunities rather than undertake a further share buy‑back program. The growth achieved over the financial year would not have been achieved without the commitment of everyone at AI-Media. I would like to thank the team, including, management and the board, who have worked consistently and efficiently to deliver great results to our customers and to position the business for significant future growth. I am very proud of the entire team for the outstanding job achieved this financial year. Finally, my sincere thanks to you, our shareholders. We greatly appreciate your continued support, and as we move into FY24 we look forward to updating you on our progress in delivering enhanced shareholder value. DEANNE WEIR CHAIR 54% AI-Media OF GROSS PROFIT NOW COMING FROM TECHNOLOGY REVENUES CEO & CHAIR LETTERS PRODUCTS & TECHNOLOGY BOARD OF DIRECTORS DIRECTORS’ REPORT FINANCIAL REPORT CORPORATE DIRECTORY CEO’s letter TONY ABRAHAMS CO-FOUNDER, CEO AND MANAGING DIRECTOR FY23 cemented AI-Media’s position as a global leader in the delivery of high-quality live and recorded captioning, transcription, and translation solutions, demonstrating the success of our transformational shift towards higher margin software-as-a-service (SaaS) revenues. Our results were underpinned by new customer wins, in addition to existing iCap customers who have transferred to our LEXI products and further product developments with the release of LEXI 3.0 in May 2023. LEXI 3.0 provides a more accurate and advanced automatic captioning solution, delivering results that rival human captions at a fraction of the cost; with 35% fewer recognition, formatting, and punctuation errors than the previous version of LEXI. Our improved product accelerates automatic captioning adoption as it significantly increases quality, reduces latency, and includes new automated features that previously required manual intervention, including speaker changes and placement of captions to not obscure important visuals. We are extremely proud of LEXI 3.0 as it provides a streamlined product offering, enabling product differentiation in the market, whilst providing opportunities to expand our market reach and grow sales. Demand for LEXI continues to grow beyond broadcasting, with new sales wins in enterprise, government and corporate. Our captioning monthly minutes increased 21%, delivering an average of 9 million minutes every month. Over the year we witnessed many customers increasing the minutes captioned via our suite of solutions, including Major League Baseball (MLB), the United Kingdom Parliament and a five-year contract renewal with major Australian broadcaster the Seven Network (Seven). AI-Media is well-positioned to capitalise on the increasing need by broadcasters to meet accessibility requirements, as more countries continue to adopt and implement accessibility legislation. The renewal by Seven showcased the strength of our full suite of technology products, as the partnership included the broadcaster pioneering the use of our rebranded LEXI Library product (formerly SubSilo) with captioning powering intuitive search across Seven’s extensive media archive.The successful multi-year contract signing with Google in August 2022 demonstrates AI-Media’s position as a trusted partner by the corporate market. Since acquiring EEG in May 2021, we have made strategic investments in our technology products, while transitioning the business away from legacy services towards higher margin SaaS revenues. It is this shift which has successfully underpinned FY23 revenue of $61.8 million, with 39% delivered via technology revenues, delivering an increase to Gross Profit Margins to 60% in FY23, up 5 percentage points on FY22. Overall, we witnessed strong growth in monthly captioning minutes, with LEXI minutes up 44% and iCap network minutes up 21%, this demonstrates further opportunity for conversion to LEXI product suite. As the business transitions further towards SaaS revenues, we expect further improvements in operating leverage. FY23 delivered a 201% increase in EBITDA to $3.3 million in FY23 and an EBITDA margin of 5%, reflecting the scalability of the business model. 60% GROSS PROFIT MARGINS IN FY23 UP 5% points on FY22 To celebrate AI-Media’s 20th anniversary in August 2023 and in recognition of our technology-led strategy, we launched a new brand and logo set. The rebrand champions our market-leading position, to meet the growing demand for accessible content worldwide, across a variety of industries. As we seek to capture further market share in FY24 and beyond, our competitive moat continues to be strengthened by the transformative advances in Artificial Intelligence (AI). Our full range of encoding solutions (hardware, virtualised and cloud-based) together with access to customer data behind corporate firewalls are the key to unlocking this transformative potential of AI. As we look to the future, we have strengthened our balance sheet, with a cash position of $17.0 million as at 30 June 2023. In Q1 FY24 the final amounts of US$5.25m for previous acquisitions will be paid, leaving the balance available for further product and market development. The success we have achieved in our transformation to date would not have been possible without the efforts of our customers, dedicated employees and the leadership of the Board and management team. Thank you to our shareholders for your patience through difficult market conditions. I look forward to updating you further as we build and extend our technology-led growth strategy. TONY ABRAHAMS CO-FOUNDER, CEO AND MANAGING DIRECTOR AI-Media 5 6 AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA HIGHLIGHTS Products and technology LEXI ECOSYSTEM The launch of LEXI 3.0 delivered a new and improved version of AI-Media’s flagship live automatic captioning solution. Launched in May 2023, the new release is strengthened by innovation in AI, affording a more accurate and advanced automatic captioning solution. AI-Media’s unique product suite offers an end-to-end ecosystem of captioning, translation and transcription solutions to a large and growing customer base. The product suite combines the best technology, security, and service, differentiating AI-Media from the competition as it enables the delivery of end-to-end solutions to meet any customers captioning needs. LEXI 3.0 delivers results that rival human captions at a fraction of the cost; with 35% fewer recognition, formatting, and punctuation errors than the previous version of LEXI. Average quality results have increased significantly from 98.2% to 98.7% NER. Across the AI industry fast-emerging improvements in Generative Pre‑Trained Transformative (GPT), Natural Language Processing (NLP) and Acoustic & Pronunciation Modelling (APM) language modelling are delivering enhancements in prediction, text transcripts databases and are improving and enhancing accent and language accuracy. Powered by AI advancements LEXI 3.0 has closed the gap on human captions, improving the value of AI-Media’s automatic captioning solution by accelerating adoption of captioning by significantly increasing quality, reducing latency, and delivering new automated features including speaker identification and AI-powered caption placement to avoid on-screen interference. LEXI 3.0 is an affordable on-demand solution perfect for live captioning a wide range of content types – from linear TV broadcasts, OTT, Live Sports and live streams, to meetings, events, lectures and more. Delivered via any AI-Media encoder (Hardware, Alta and Falcon) connected to AI-Media’s iCap Cloud Network, existing AI-Media customers, have access to LEXI 3.0 at no additional cost. “We are extremely proud of LEXI 3.0 our flagship product it is enabling product differentiation, expanding market opportunities to grow sales by revolutionising automatic captioning to deliver unprecedented accuracy and reliability, without the sizeable per hour costs typical of human captions.” — James Ward- Chief Sales Officer The world leading captioning network is comprised of an ecosystem of hardware, infrastructure, and software solutions. The network of end-to-end solutions begins with a range of on-premise, virtualised, cloud-captioning encoders that seamlessly integrate via iCap to AI-Media’s world-leading proprietary speech recognition solutions. The encoders, Falcon, Alta and Encoder Pro are compatible with multiple resolutions and deliver physical, virtual, and cloud-based encoding technology to our customers, captioning content reliably, flexibly and securely. AI-Media’s encoding solutions make it easy to deliver a high-quality, low‑latency broadcast with near real-time captions for any need. The iCap network integrates seamlessly with AI-Media’ ASR cloud captioning solutions LEXI and third‑party captioners across the globe. iCap’s scalable cloud based network separates us from the competition by delivering a secure, encrypted connection with a global standard of service with the highest accuracy at an affordable price to customers anywhere in the globe. Fast, accurate, efficient and scalable LEXI is our proprietary speech recognition solution. Underpinned by AI, LEXI has leading captioning capabilities, delivering coherent captions using advanced algorithms with enterprise grade accuracy of 98.7%. AI-MEDIA ECOSYSTEM Leading global captioning platform, providing customers with the only end-to-end solution in market 1 2 3 4 Video Input Encrypted Encoding Real-time Captioning Captioned Video Output Encoders and iCap network used by both customers and competitors Live or recorded video source via broadcasts, events or over‑the-top (OTT) content Cloud, virtual, or physical encoders convert audio into digital data that is sent to iCap network Matches captions to video sources and provides encrypted remote access to customer data improving contextual accuracy LEXI converts spoken language into written text to present live captions on any screen or platform, in any language PRODUCTS & TECHNOLOGY CEO & CHAIR LETTERS BOARD OF DIRECTORS DIRECTORS’ REPORT FINANCIAL REPORT CORPORATE DIRECTORY FY24 OUTLOOK Continued technology transition will drive long-term business model. LEVERAGE RECENT PRODUCT RELEASES (LEXI 3.0 AND LEXI TOOLKIT) TO DRIVE GROWTH. ACCELERATE CONVERSION OF 3RD PARTY ICAP USERS TO LEXI & UPSELL BASE PRIORITISE ICAP AND ENCODING TECHNOLOGY DEVELOPMENT TO BROADEN REVENUE OPPORTUNITY AND DRIVE CUSTOMER STICKINESS SCALE GLOBAL PRESENCE THROUGH NEW STRATEGIC PARTNERSHIPS, TRACK RECORD AND ENHANCED SOLUTIONS EXECUTE ON GROWTH OPPORTUNITIES IN NEW TERRITORIES AND ADJACENT MARKETS REVENUE COMPOSITION & GP MARGIN (%) FY22 55% FY23 60% FY21 41% 6% 30% 39% $48.7m $59.8m $61.8m 94% 70% 61% Tech Services Executing on business model transition away from low margin services (>40% GPM) towards technology revenues (>80% GPM) 7 8 AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA HIGHLIGHTS Board of Directors DEANNE WEIR ANTHONY ABRAHAMS JOHN MARTIN Non-Executive Director and Chair BA(Hons) LLB(Hons) LLM Co-Founder, Director and Chief Executive Officer BCom (Hons). LLB (UNSW), MPhil. MBA (Oxford) Independent, Non-Executive Director BA LLB (Hons) Deanne has served as a director of Ai‑Media since 2010 and became Chair in August 2013. An entrepreneur, company director and philanthropist, she previously spent 10 years at ASX listed company Austar United Communications as General Counsel and Company Secretary. Deanne is Chair of Seer Data and Analytics, an Australian scale up technology company, and also a Board member at Verve Super. Deanne is passionate about community engagement and the power of storytelling to help influence social change. She was a long-term Board member and Deputy Chair at Screen Australia and in 2017 was appointed Chair of the Sydney Film Festival. Deanne is a graduate of the Australian Institute of Company Directors. Tony co-founded AI-Media in 2003. He served as a Director of Northcott Disability Services from 2010 to 2018 and was recognised by the World Economic Forum as a Young Global Leader in 2013. In previous roles, Tony worked to establish the Oxford Internet Institute in 2001, while attending the University of Oxford as a Rhodes Scholar. Tony has been a member of the Australian Institute of Company Directors since 2006. John joined the board in 2010 and served as the company’s first Chairman until 2013. He’s an experienced company director and business executive, having served as CEO and director of ASX‑listed Babcock & Brown Communities, Primelife and Regeneus. John is a Non‑Executive Director of Australian law firm Sparke Helmore; Sydney biotech company Biopoint; US internet services company Lokket and Melbourne notfor-profit CCRM Australia. He is also a member of the Australian Institute of Company Directors. 482 220 EMPLOYEES PERMANENT STAFF CEO & CHAIR LETTERS PRODUCTS & TECHNOLOGY BOARD OF DIRECTORS DIRECTORS’ REPORT ALISON LOAT CHERYL HAYMAN Independent, Non-Executive Director BAH, Queen’s University, Kingston Canada; MPP, Harvard Kennedy School Independent, Non-Executive Director Bachelor of Commerce, FAICD, FGIA Alison is the Managing Director, Sustainable Investing and Innovation at OPTrust, a Canadian public pension plan. Previously, she was the Senior Managing Director of FCLTGlobal, a long-term investing organization, the CEO of a think tank and a consultant at McKinsey & Company. She’s also on the board of two Canadian educational institutions and a privately held media company. Alison received the Queen’s Gold and Diamond Jubilee Medals and was named one of the 100 Most Powerful Women in Canada. She received the ICD designation from Canada’s Institute of Corporate Directors. She has degrees from Queen’s University and the Harvard Kennedy School. 5 OFFICE LOCATIONS Cheryl joined the board in March 2022 and has extensive experience working as an independent Director across multiple sectors including ASX-listed companies as well as industry bodies and not‑for‑profit organisations. Her Board roles include Beston Global Food Company (ASX: BFC) and Silk Logistics Holdings (ASX:SLH). Cheryl’s corporate experience encompasses a range of senior strategic technology, digital strategy roles and global marketing roles including Head of Marketing and Innovation at Sunrice, George Weston Foods, Unilever Australia, NZ and UK, Yum Restaurants International and Who Weekly magazine. Cheryl is a Fellow of the Australian Institute of Company Directors and a Fellow of the Governance Institute of Australia, and serves as Chair of AIM’s Remuneration and Nomination Committee and member of the Audit and Risk Committee. FINANCIAL REPORT CORPORATE DIRECTORY 9 10 AI MEDIA ANNUAL REPORT 2023 ABOUT AI MEDIA HIGHLIGHTS Ai-Media Technologies Limited Contents 30 June 2023 Directors' report Auditor's independence declaration 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 Notes to the consolidated financial statements Note 1. General information Note 2. Significant accounting policies Note 3. Critical accounting judgements, estimates and assumptions Note 4. Operating segments Note 5. Revenue Note 6. Other income Note 7. Expenses Note 8. Income tax Note 9. Cash and cash equivalents Note 10. Trade and other receivables Note 11. Inventories Note 12. Contract assets Note 13. Term deposits Note 14. Property, plant and equipment Note 15. Right-of-use assets Note 16. Intangibles Note 17. Trade and other payables Note 18. Contract liabilities Note 19. Borrowings Note 20. Lease liabilities Note 21. Provisions Note 22. Issued capital Note 23. Reserves Note 24. Dividends Note 25. Financial instruments Note 26. Remuneration of auditors Note 27. Contingent liabilities Note 28. Key management personnel disclosures Note 29. Related party transactions Note 30. Interests in subsidiaries Note 31. Earnings per share Note 32. Parent entity information Note 33. Reconciliation of loss after income tax to net cash from operating activities Note 34. Changes in liabilities arising from financing activities Note 35. Share-based payments Note 36. Events after the reporting period Directors' declaration Independent auditor's report to the members of Ai-Media Technologies Limited Shareholder information 10 11 24 25 26 27 28 29 29 29 38 39 40 41 42 43 45 45 46 46 47 47 48 49 50 51 51 52 52 53 55 55 56 58 58 58 58 59 59 60 61 61 62 62 63 64 69 CEO & CHAIR LETTERS PRODUCTS & TECHNOLOGY DIRECTORS’ REPORT BOARD OF DIRECTORS FINANCIAL REPORT CORPORATE DIRECTORY 11 Ai-Media Technologies Limited Directors' report 30 June 2023 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Ai-Media Technologies Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023. Directors The following persons were directors of Ai-Media Technologies Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Deanne Weir - Non-Executive Director and Chair Anthony Abrahams - Executive Director and Chief Executive Officer John Martin - Non-Executive Director Alison Loat - Non-Executive Director Cheryl Hayman - Non-Executive Director Principal activities Ai-Media Technologies Limited (Ai-Media or Company) (ASX: AIM), is a global provider of technology-driven captioning, transcription and translation products and services. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Review of operations The loss for the Group after providing for income tax amounted to $4,017,064 (30 June 2022: $4,923,715). Operations A summary of the results for the year is as follows: Revenue from operating activities Earnings/(loss) before interest, taxation, depreciation and amortisation (EBITDA) Loss after tax (expense)/benefit from ordinary activities 2023 $ 2022 $ Change $ Change % 61,769,967 59,784,026 1,985,941 3.3% 3,310,552 (4,017,064) 1,100,574 (4,923,715) 2,209,978 906,651 200.8% 18.4% EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents the profit under AASBs adjusted for specific items. The directors consider EBITDA to be one of the key financial measures of the Group. The strengths of the technology and products introduced into the Group as part of the EEG acquisition in 2021 has provided the main impetus to the EBITDA growth. The legacy business continues to perform in the broadcast sector where tailored solutions and a high degree of accuracy is required. Comparatively, there has been