The Directors of Audio Pixels Holdings Limited (ASX:AKP) submit herewith the financial report of the company for the financial year ended 31 December 2011. In order to comply with the provisions of the Corporations Act 2001.
The principal activity of the Company is an investment in Audio Pixels Limited of Israel. During the year the company acquired the outstanding shares in Audio Pixels Limited of Israel and now owns 100% of Audio Pixels Limited.
Audio Pixels Limited is engaged in the development of digital speakers.
The net loss for the financial year ended to 31 December 2011 was $2,930,697 (half-year financial period to 31 December 2010 - $530,606).
The directors recommend that no dividend be paid and no amount has been paid or declared by way of dividend since the end of the previous financial year and up to the date of this report.
Review of Operations
In January 2011, the Company completed the acquisition of the remaining minority shares in Audio Pixels Limited of Israel following shareholder approval on 13 January 2011. Following the completion of the formalities, the company was relisted on the Australian Stock Exchange on 1 February 2011 under the trading symbol "AKP". The main activity of the Company is the development of digital speakers.
On 28 June 2011, the Company launched its Level 1 American Depositary Receipt ("ADR") program for quotation on the Over-The-Counter ("OTC") market in the United States of America with the ticker symbol ADPXY.
The Company continues to lease its commercial property known as Lots 3, 4, 25 and 45 at 360 Pacific Highway, Crows Nest to Sydneyside (Australia) Pty Limited.
This last year was dominated by the company's continued efforts and progress advancing the digital speaker technologies towards mass-production. As proudly announced earlier this year we entered into a joint development agreement with a leading Japanese Consumer Electronic and Semiconductor manufacturer. The joint activities, while taking longer than originally anticipated, nonetheless have yielded results that exceeded our expectations.
The technological achievements, which stand at the forefront of our efforts, have been de-risking many of the key aspects of the technology commercialisation. The successful reduction of the structures' dimensions in combination with at total transition to a more cost effective mass manufacturing process, undoubtedly improved the commercial viability of the product.
As we progress toward the next phases we have taken additional steps to further mitigate the risk and expedite our time to market. In the coming months we expect to be in position to announce additional partnerships that we have formulated with several of the worlds leading fabricators. The aforementioned technological achievements have attracted the best silicon manufacturers that bring to bear vast additional resources, cutting edge fabrication technologies, and a wealth of proven MEMS experience. The strategic combination of our fabrication partners will assure the company of among others:
- Improved Probability of Successful Commercialisation
- Accelerated Development and Expedited Time to Market
- Competitive and Incentivised Cost Effective Manufacturing
- Quality Assurance
- Production Capacity
- Multiple Sourcing
- Global footprint
The core strength of the company continues to be its management in combination with a relatively small team of highly dedicated and uniquely skilled individuals. With a watchful eye on the struggling global economy we have kept operational and personnel expenses to a minimum expanding the team only slightly as to include the specific expertise needed for the ongoing phases of development.
Over the course of the year the company has been heavily involved in expanding and strengthening its IP portfolio.
The company's early patent filings of 2006 and 2007 have begun to reach sufficient maturity whereby submitted applications are receiving patent grants in various jurisdictions. Our "Basic-1" patent covering many of the critical aspects of the core functionality and methods of operation has been granted in the US, as has our patent for "digital volume control".
This year alone we have added 6 additional patent applications, which are characterised as comprehensive patent applications covering critical technological aspects of the product and its usage.
The company continues to strategically engage the marketplace holding meaningful conversations and entering into Non-Disclosure Agreements with an increasing number of future potential clients and distributors - most such entities can only be categorised as global leaders in their respective industries/markets. The interest and feedback remain exceptionally positive, leading management to strengthen its opinion that the market opportunities available to the company extremely large.
Changes in State of Affairs
Apart from the acquisition of the outstanding shares of Audio Pixels Limited during the financial year there was no significant change in the state of affairs of the company other than that referred to in the financial statements or notes thereto.
Significant Events After Balance Date
There has not been any matter or circumstance that has arisen since the end of the financial year which is not otherwise dealt with in this report or in the financial statements, that has significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in subsequent financial years.
The company will continue to focus on the development of its digital speaker technology.
In the opinion of the directors the company is in compliance with all applicable environmental legislation and regulations.
Indemnification of Officers and Auditors
During or since the financial year, the company has not indemnified or made a relevant agreement to indemnify an officer or auditor of the company against a liability incurred as such an officer or auditor. In addition, the company has not paid, or agreed to pay, a premium in respect of a contract insuring against a liability incurred by an officer or auditor.
To view the complete Audio Pixels Annual Report, please refer to the following link below:
About Audio Pixels Holdings Limited:
Audio Pixels Holdings Limited (ASX:AKP) was founded in July 2006 has developed a revolutionary technological platform for reproducing sound, thus enabling the production of an entirely new generation of speakers that will exceed the performance specifications and design demands of the world’s top consumer electronics manufacturers.
Audio Pixels Holdings Limited T: +61-2-9233-3915 F: +61-2-9232-3411 WWW: www.audiopixels.com.au
Audio Pixels Holdings Limited
Copyright (C) 2012 ABN Newswire. All rights reserved.