UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549  FORM 20-F   (Mark One)  ☐
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR  ☒
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December
31, 2019 OR  ☐
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from 
to OR  ☐
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell
company report Commission file number 001-38018   Integrated Media Technology Limited Integrated Media Technology Limited (Exact name of Registrant as specified in its
charter and translation of Registrant's name into English) Australia (Jurisdiction of incorporation or organization)  Level 7, 420 King William Street, Adelaide,
SA 5000, Australia Phone: +61 8 7324 6018    Fax:
+61 8 8312 0248   (Address of principal executive offices)  Securities registered or to be registered pursuant to Section 12(b)
of the Act.  Title
        of each class
    
    Name of
        each exchange on which registered
        or to be registeredOrdinary Shares
    
    The NASDAQ Capital Market Securities registered or to be registered
pursuant to Section 12(g) of the Act. None Securities for which there is a reporting
obligation pursuant to Section 15(d) of the Act. None Indicate the number of outstanding shares
of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report. The number of ordinary shares, as
of June 1, 2020 is 3,663,100 Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.☐Yes☒No If this
report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.☐
Yes☒
No Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.☒
Yes☐
No Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).☒ Yes☐ No Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer"
in Rule 12b-2 of the Exchange Act. (Check one):  Large accelerated filer☐
    
    Accelerated filer☐
    
    Non-accelerated filer☒ Indicate by check mark which basis of
accounting the registrant has used to prepare the financial statements included in this filing:  U.S. GAAP☐
    
    International Financial Reporting Standards as issuedby the International Accounting Standards Board
    ☒
    
    
    Other☐ If "Other"
has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has
elected to follow.☐ Item 17☐ Item 18 If this
is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).☐ Yes☒ No        TABLE OF CONTENTS  INTRODUCTION
    1PART I
    2Item 1.
    Identity of Directors, Senior Management and Advisers
    2Item 2.
    Offer Statistics and Expected Timetable
    2Item 3.
    Key Information
    2Item 4.
    Information on the Company
    22Item 4A.
    Unresolved Staff Comments
    40Item 5.
    Operating and Financial Review and Prospects
    41Item 6.
    Directors, Senior Management and Employees
    57Item 7.
    Major Shareholders and Related Party Transactions
    64Item 8.
    Financial Information
    66Item 9.
    The Offer and Listing
    68Item 10.
    Additional Information
    69Item 11.
    Quantitative and Qualitative Disclosures About Market Risks
    79Item 12.
    Description of Securities Other than Equity Securities
    79PART II
    
    80Item 13.
    Defaults, Dividend Arrearages and Delinquencies
    80Item 14.
    Material Modifications to the Rights of Security Holders and Use of Proceeds
    80Item 15.
    Controls and Procedures
    80Item 15T
    Controls and Procedures
    82Item 16
    Reserved
    82Item 16A.
    Audit Committee Financial Expert
    82Item 16B.
    Code of Ethics
    82Item 16C.
    Principal Accountant Fees and Services
    82Item 16D.
    Exemptions from the Listing Standards for Audit Committees
    83Item 16E.
    Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    83Item 16F.
    Change in Registrant's Certifying Accountant
    83Item 16G.
    Corporate Governance
    83Item 16H.
    Mine Safety Disclosure
    83PART III
    
    84Item 17.
    Financial Statements
    84Item 18.
    Financial Statements
    84Item 19.
    Exhibits
    85SIGNATURES
    86   i    INTRODUCTION Integrated Media Technology Limited was
incorporated under the laws of the Commonwealth of Australia on August 8, 2008. As used in this annual report, the terms "we,"
"us," "our", "IMTE", and the "Company" mean Integrated Media Technology Limited and its
subsidiaries, unless otherwise indicated. Our consolidated financial statements
appearing in this annual report on Form 20-F are prepared in Australian dollars and in accordance with the International Financial
Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or IASB. Our consolidated financial statements
appearing in this annual report on Form 20-F comply with both the IFRS and Australian equivalents to IFRS, or A-IFRS. Compliance
with Australian Accounting Standards ensures that the financial statements and notes also comply with IFRS. In this annual report, all references
to "U.S. dollars" or "US$" are to the currency of the United States of America, and all references to "Australian
dollars" or "A$" are to the currency of Australia. Statements made in this annual report
on Form 20-F concerning the contents of any contract, agreement or other documents are summaries of such contracts, agreements
or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to this
annual report or to any annual report that we previously filed, you may read the document itself for a complete description of
its terms. Except for the historical information
contained in this annual report on Form 20-F, the statements contained in this annual report on Form 20-F are "forward-looking
statements" which reflect our current view with respect to future events and financial results. We urge you to consider that
statements which use the terms "anticipate," "believe," "do not believe," "expect," "plan,"
"intend," "estimate," and similar expressions are intended to identify forward-looking statements. We remind
investors that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors
and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements,
or industry results, to be materially different from any future results, performance, levels of activity, or our achievements expressed
or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Except as required by applicable law, including the securities laws of the United States,
we undertake no obligation to publicly release any update or revision to any forward-looking statements to reflect new information,
future events or circumstances, or otherwise after the date hereof. Please see the Risk Factors section that appears in "Item
3. Key Information - D. Risk Factors."   1    PART I   ITEM 1.
    
    IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS  Not applicable.   ITEM 2.
    
    OFFER STATISTICS AND EXPECTED TIMETABLE  Not applicable.   ITEM 3.
    
    KEY INFORMATION  A.
    
    Selected Financial Data  Our consolidated financial statements appearing in this annual report on Form 20-F comply with both the International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board and Australian equivalents to IFRS, or A-IFRS. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with IFRS.  The following selected consolidated financial data as of December 31, 2019 and 2018 and for the fiscal years ended December 31, 2019, 2018 and 2017 have been derived from our audited consolidated financial statements and notes thereto included elsewhere in this annual report on Form 20-F, on a post-reverse split basis. This data should be read together with, and is qualified in its entirety by reference to, "Item 5. Operating and Financial Review and Prospects" as well as our consolidated financial statements and notes thereto appearing in "Item 18. Financial Statements" of this annual report on Form 20-F.  The selected financial data are presented in
Australian dollars (A$) (except as otherwise noted).  Consolidated Statement of Profit or Loss
and Other Comprehensive Income (Loss) Data:  Year Ended December 31,2019
    
    2018
    
    2017
    
    2016
    
    2015(Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)(expressed in A$)Total revenue
    
    2,411,213
    
    1,815,475
    
    10,153,636
    
    14,039,248
    
    7,306,699Cost of sales
    
    (1,008,821)
    
    (723,711)
    
    (2,548,064)
    
    (2,027,743)
    
    (2,984,291)Depreciation and amortization expenses
    
    (3,174,784)
    
    (2,029,373)
    
    (2,021,131)
    
    (2,147,231)
    
    (383,635)Corporate administrative expenses
    
    (6,336,243)
    
    (4,384,357)
    
    (2,522,927)
    
    (2,447,545)
    
    (1,432,564)Gain / (loss) on disposal of a subsidiary
    
    -
    
    608,995
    
    -
    
    (872)
    
    -Other operating expenses
    
    (2,543,571)
    
    (2,503,507)
    
    (1,510,267)
    
    (1,627,234)
    
    (506,245)Gain on fair value change in derivative financial instruments
    
    127,551
    
    709,543
    
    -
    
    -
    
    -Provision for impairment loss of goodwill
    
    (4,486,301)
    
    (9,953,311)
    
    -
    
    -
    
    -Exchange (loss) / gain
    
    (10,296)
    
    493,365
    
    61,307
    
    (100,950)
    
    -Finance costs
    
    (1,561,625)
    
    (1,383,399)
    
    (107,101)
    
    (73,666)
    
    -Income tax credit / (expense)
    
    (117,322)
    
    507,057
    
    187,213
    
    (2,018,939)
    
    356,158Net / (loss) profit
    
    (16,700,199)
    
    (16,843,223)
    
    1,692,666
    
    3,595,068
    
    2,356,122Loss / (profit) per share - basic and diluted (post-reverse split)
    
    (4.63)
    
    (5.93)
    
    0.64
    
    1.37
    
    1.22Weighted average number of ordinary shares outstanding (post-reverse split)
- basic and diluted
    
    3,377,386
    
    2,692,543
    
    2,643,611
    
    2,643,611
    
    1,922,143   Consolidated Statement of Financial Position
Data:  As of December 312019
    
    2018
    
    2017
    
    2016
    
    2015(Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)(expressed in A$)Cash and cash equivalents
    
    (166,758)
    
    1,514,215
    
    2,860,014
    
    1,820,994
    
    6,883,196Working capital
    
    (12,798,159)
    
    1,279,813
    
    5,478,132
    
    8,263,311
    
    7,642,256Total assets
    
    19,946,276
    
    26,033,074
    
    35,859,449
    
    43,481,437
    
    37,271,467Long-term debt
    
    1,874,392
    
    4,690,822
    
    16,748,877
    
    22,657,065
    
    24,464,929Total shareholders' equity
    
    79,023
    
    16,621,751
    
    15,390,334
    
    14,354,982
    
    11,086,012  (1)
    All previously reported share and per share amounts have been restated to reflect the reverse stock split of thirty-to-one effective on May 8, 2017.   2    Exchange Rate Information: The Company publishes its consolidated
financial statements in Australian dollars. In this annual report and the annual report, references to dollars, "$" or
"A$" are to Australian dollars currency and references to "U.S. dollars" or "US$" are to U.S. currency.
Solely for informational purposes, this annual report and the annual report contains translations of certain Australian dollars
into or from U.S. dollars at specified rates. These translations should not be construed as representations that the Australian
dollars amounts actually represent such U.S. dollar amounts or could be converted into or from U.S. dollars at the rate indicated
or at any other rate. Unless otherwise stated herein, the translations of Australian dollars into or from U.S. dollars have been
made at $1.00 to US$0.7030, the buying rate on December 31, 2019.  The following tables set forth, for the periods
and dates indicated, certain information regarding the rates of exchange of A$1.00 into US$ based on the noon market buying rate
in New York City for cable transfers in Australian dollars as certified for customs purposes by the Federal Reserve Bank of New
York, or the noon buying rate. The period average data set forth below is the average of the last day of each full month during
the period. Exchange rate as of the latest practicable date, May 29, 2020:
A$1.00 is US$0.6642  Year Ended December 31,
    
    At Period End
    
    Average Rate
    
    High
    
    LowUS$
    
    US$
    
    US$
    
    US$2014
    
    0.8173
    
    0.9034
    
    0.9488
    
    0.80972015
    
    0.7286
    
    0.7522
    
    0.8212
    
    0.69172016
    
    0.7230
    
    0.7445
    
    0.7817
    
    0.68552017
    
    0.7815
    
    0.7671
    
    0.8071
    
    0.72302018
    
    0.7040
    
    0.7480
    
    0.8100
    
    0.70202019
    
    0.7030
    
    0.6954
    
    0.7282
    
    0.6698  Month
    
    High
    
    LowUS$
    
    US$July 2019
    
    0.7043
    
    0.6872August 2019
    
    0.6858
    
    0.6730September 2019
    
    0.6886
    
    0.6746October 2019
    
    0.6888
    
    0.6698November 2019
    
    0.6914
    
    0.6762December 2019
    
    0.7030
    
    0.6814January 2020
    
    0.6982
    
    0.6699February 2020
    
    0.6748
    
    0.6495March 2020
    
    0.6654
    
    0.5755April 2020
    
    0.6536
    
    0.6001May 2020
    
    0.6664
    
    0.6410  B.
    
    Capitalization and Indebtedness  Not applicable.  C.
    
    Reasons for the Offer and Use of Proceeds  Not applicable.    3    D.
    
    Risk Factors  The following risks relate specifically to
our business and should be considered carefully. Our business, financial condition and results of operations could be harmed by
any of the following risks. The risks and uncertainties described below are not the only ones that we face. Additional risks and
uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business. If
any of the following risks and uncertainties develops into actual events, our business, financial condition and results of operations
could be materially and adversely affected, and the trading price of our ordinary shares could decline. As a result of the above
factors, the trading price of our ordinary shares could decline and the holders could lose part or all of their investment.  General Risks  The
COVID-19 is currently impacting countries, communities, supply chains and markets globally. The outbreak of COVID-19 in China
and Hong Kong results in increased travel restrictions, border control, and shutdown of businesses, which may cause slower
recovery of the China and Hong Kong economies. We may experience impact from quarantines and market downturns related
to pandemic fears and impact on our workforce if the virus continues to spread. COVID-19 affects our workforce and supplier's workforce,
and as a result we are experiencing a slow resumption of operations and may experience delays or the inability to deliver goods
on a timely basis. In addition, one or more of our customers, partners, service providers or suppliers may experience financial
distress, delayed or defaults on payment, file for bankruptcy protection, sharp diminishing of business, or suffer disruptions
in their business due to the outbreak. The extent to which the COVID-19 impacts our results are highly uncertain and will include
emerging information concerning the severity of the COVID-19 and the actions taken by governments at various levels and private
businesses to attempt to contain the virus. Wider-spread COVID-19 in China and globally could prolong the deterioration
in economic conditions and could cause decreases in demand and reduce and/or negatively impact our ability to grow our revenues.
Any decreased collectability of accounts receivable, bankruptcy of small and medium businesses, or early termination of agreements
due to deterioration in economic conditions could negatively impact our results of operations. Although the Company is taking measures
to mitigate the effect as much as possible, there is no assurance that the steps will be sufficient. In most respects it is too
early in the pandemic to be able to quantify all the ramifications. Risks Related to Our Business We have a history of operating losses  and
may not achieve profitability in the future Our Company has been an early mover
in the development of 3D technologies and products for a number of years with limited success. Unless we are able to generate sufficient
and consistent product revenue, we will incur losses from operations and may not achieve or maintain profitability. As of December
31, 2019, we had an accumulated deficit of A$25,786,912. For the year ended December 31, 2019 we recorded loss of A$16,700,199.
The loss was the result of the decline of sales of our ASD products and software, technology solutions and 2D to 3D auto conversion
workstations, and the write-down of goodwill in the amount of A$4,486,301. The Group's business declined as compared to the prior
year due to the problems in the manufacturing process which is still being worked on. The Company needs to sell its 3D products
and services on a consistent basis through distribution channels for commercial and consumer sectors to increase revenue. In addition,
the Company also needs to reduce its operating overhead to return to profitability. There is no certainty that the Company can
solve the manufacturing process problems. In the past, the Company pursued the
strategy to undertake to innovate the technologies and products in house, the costs of which was substantial. Because of the numerous
risks and uncertainties associated with the research and development of 3D technologies and products, we may experience lesser
profits or even incur losses, and may never become profitable. In May 2020, the Company divested from research and development
in the core 3D technologies so that it could reduce costs and focus exclusively on marketing and sales of 3D products. We are then
dependent on outside developers to develop our future products which may not be successfully developed, and if successfully developed,
may not generate sufficient revenue to enable us to recover such development costs and to generate sales to achieve profitability
in the future.  If we fail to achieve profitability,
or if we are unable to fund our continuing operations, our business will be harmed and the holders of our ordinary shares could
lose all or part of their investment. There is a substantial risk that we may not be able to fund the completion of the development
of our current planned 3D products or other 3D products. We will rely on 2D to 3D auto conversion workstation and our other 3D
products to generate revenues in the future. It is possible that none of them will be successfully commercialized or any new 3D
products will be developed, which would prevent us from achieving and maintaining profitability.  We have a limited operating history, and it may be difficult
for potential investors to evaluate our business  The 3D display operation commenced in 2013
with relatively short history. Our limited operating history makes it difficult for potential investors to evaluate our business
or prospective operations with long term view. We are subject to all the risks inherent in the initial organization, financing,
expenditures, complications and delays inherent in a relatively new business. Our display business faced delays in sales and financing
from suppliers due to our new entry into the market. Our products are new in the market and face challenges in consumer recognition
and acceptance, where more established players and products have better resources to penetrate the markets. Moreover as a new entrant
in the competitive electronics market, we face many questions on our Company, organization, finances and product information before
electronic distributors are willing to carry our products into their network. Thus it takes additional time to establish distributor
network for our products and also for these distributors to accept our products into their network. Our products may never be accepted
by distributors and thereby hinder our ability to sell our products in the target markets. Investors should evaluate an investment
in us in light of the uncertainties encountered by such companies in a competitive environment. Our business is dependent upon
the implementation of our business plan, as well as the ability to access continuous innovation in 3D products. There can be no
assurance that our efforts will be successful or that we will be able to attain profitability.  We may incur significant delays and/or
expenses relating to the COVID-19 (coronavirus) outbreak in China and Hong Kong Beginning in late 2019,
a novel strain of coronavirus (COVID-19) was reported in Wuhan, China. The World Health Organization has declared the outbreak
to constitute a “Public Health Emergency of International Concern.” This has prompted government-imposed quarantines,
closures of certain travel and businesses. Following this outbreak, in February 2020, the Company temporarily shut down its operations
in Shenzhen and Guangzhou, Guangdong Province, as mandated by the local authorities. In March 2020, the Company gradually resumed
its operations in these cities and continue to conduct some of our development activities. In Hong Kong, for the months of February
and March, our offices has generally been open but some of our staff have been working remotely from home. This has delayed some
of our work in research and development activities. Our sales activities has been severely affected by the pandemic and the effect
of social distancing to advertising industry. As many people choose to stay at home, advertisers will be cautious in committing
capital expenditures for advertising i.e. 3D displays. Our customers are reviewing their purchase commitments with us for the rest
of 2020 and 2021. It is presently unknown whether and to what extent the Company’s sales pipeline may be affected if the
pandemic persists for an extended time. The Company will likely incur significant losses as most of our sales is derived from selling
our 3D displays to advertisers. This could have a material adverse impact on our business, operating results and financial condition.  We will require additional financing in the future to sufficiently
fund our operations, certain research and development activities We have had intermediate success recently.
However we had a significant loss in 2019, and we may incur losses in the future as we continue our 3D development. Our actual
cash requirements may vary from those now planned and will depend upon many factors, including: the continued progress of our research
and development programs; the timing, costs and results of product development; the commercial potential of our products; our ability
to outsource manufacturing capabilities; and the status and timing of competitive developments. We anticipate that as the development
of 3D products and its associated costs increase we will require additional funds to achieve our long-term goals of commercialization
and further development of other 3D products. In addition, we will require funds to defend intellectual property rights, outsource
manufacturing capacity, develop marketing and sales capability and fund operating expenses. We intend to seek such additional funding
through public or private financings and/or through licensing of our intellectual properties or other arrangements with corporate
partners. However, such financing, licensing opportunities or other arrangements may not be available from any sources on acceptable
terms, or at all. Any shortfall in funding could result in our having to curtail or cease our operations including our research
and development activities, which would harm our business, financial condition and results of operations.   4    We have limited cash resources and if we
cannot raise additional funds or generate more revenues, we will not be able to pay our vendors and will probably not be able to
continue as a going concern  We will need to raise additional funds to pay
outstanding debts, vendor invoices and execute our business plan. Our future cash flows depend on our ability to enter into, and
be paid under, contracts with our distributors for the 3D and consumer electronics business. There can be no assurance that additional
funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us.  We may be required to pursue sources of additional
capital through various means, including joint venture projects and debt or equity financings. Future financings through equity
investments will be dilutive to existing stockholders. Also, the terms of securities we may issue in future capital transactions
may be more favorable for our new investors. Newly issued securities may include preferences, superior voting rights, and the issuance
of warrants or other convertible securities, which will have additional dilutive effects. Further, we may incur substantial costs
in pursuing future capital and/or financing, including investment banking fees, legal fees, accounting fees, printing and distribution
expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we may issue,
such as convertible notes and warrants, which will adversely impact our financial condition and results of operations.  Our ability to obtain needed financing may
be impaired by such factors as the weakness of capital markets and the fact that we have incurred a substantial loss in 2018 and
2019 which could impact the availability or cost of future financings. If the amount of capital we are able to raise from financing
activities, together with our revenues from operations, is not sufficient to satisfy our capital needs, even to the extent that
we reduce our operations accordingly, we may be required to cease operations.   5    Our limited operating history and rapidly
evolving business makes it difficult for us to accurately forecast revenues and expenses  We have a limited operating history on which
to base an evaluation of our business and prospects. Our operating results may fluctuate as a result of a number of factors, many
of which are outside of our control. For these reasons, comparing our operating results on a period-to-period basis may not be
meaningful, and you should not rely on our past results as an indication of our future performance. Our prospects must be considered
in light of inherent risks, expenses, and difficulties encountered by companies in their early stages of development, particularly
in new and evolving markets.  We have incurred losses in 2019 and 2018, but
profits in 2017 and 2016 from our ASD products and software, 2D to 3D auto conversion workstations and the audio products. However,
our future prospects are uncertain in light of the risks and uncertainties experienced by early stage companies in evolving electronic
technology industries. Due to our short history, it is difficult for us to predict future revenues and operating expenses. We based
our expense levels, in part, on our expectations of future revenues from anticipated transactions. If our 3D business develop slower
than we expect, we may continue to incur losses and we may then have to curtail part of our business plan and the market price
of our stock may decline.  Some of the other risks and uncertainties of
our business relate to our ability to:  -  offer new and innovative 3D products
and services to attract and retain customer base; -  attract customers; -  increase awareness of our brand and
continue to develop consumer and customer loyalty; -  respond to competitive market conditions; -  respond to changes in our regulatory
environment; -  manage risks associated with intellectual
property rights; -  maintain effective control of our costs
and expenses; -  raise sufficient capital to sustain
and expand our business; -  attract, retain and motivate qualified
personnel; and -  upgrade our technology to support increased
traffic and expanded services.  If we are unsuccessful in addressing any of
these risks and uncertainties, our business may be materially and adversely affected.  The development of our business is dependent
upon the completion and integration of acquisitions and other transactions that have only recently closed or incurred in the future  Our principal focus is on our 3D products and
services businesses. Even when we close acquisitions like Marvel Digital Limited ("MDL") or the distribution of conductive
film for the electronic glass, our business will not be successful if we are unable to successfully operate and integrate the businesses
we acquire. Accordingly, it is difficult to evaluate our business based upon our historical financial results. We expect to continually
look for new businesses to acquire to develop and grow our operations. If we fail to identify such business, or are unable to acquire
such businesses on reasonable terms, or fail to successfully integrate such businesses, our operating results and prospects could
be harmed.  We face significant competition and may
suffer from a loss of customers as a result  We expect to face significant competition in
our 3D display businesses, particularly from other companies that seek to provide similar products and services. Many of these
competitors have significantly greater financial resources and more personnel than we have. They may also have longer operating
histories and more experience in attracting, retaining and managing customers. They may use their experience and resources to compete
with us in a variety of ways, including by competing more for users, customers, distributors, media channels and by investing more
heavily in research and development and making acquisitions. If we fail to compete effectively, our business, financial condition
and results of operation will be adversely affected.  Our research and development efforts will
be seriously jeopardized if we are unable to attract and retain key personnel and cultivate key academic and scientific collaborations  We are a Company with 53 employees as of December
31, 2019. Our success is highly dependent on the continued contributions of our principal management and technology personnel and
on our ability to develop and maintain important relationships with leading academic institutions. Competition among technology
companies for qualified employees is intense, and we cannot be certain that we will be able to continue to attract and retain qualified
scientific and management personnel critical to our success. We also have relationships with leading academic and technology collaborators
who conduct research at our request or assist us in formulating our research and development strategies. These academic and technology
collaborators are not our employees and may have commitments to, or consulting or advisory contracts with, other entities
that may limit their availability to us.   We may need to rely on the marketing and
distribution capabilities of third parties for our picture frame business  We currently have limited experience in marketing,
sales or distribution of consumer electronics products such as our picture frame business. If our picture frame enters into the
consumer electronics category, we may be required to enter into marketing arrangements with other parties who have established
appropriate marketing, sales and distribution capabilities. We cannot make any assurances that we will be able to enter into marketing
arrangements with any marketing partner or that if such arrangements are established, our marketing partners will be able to commercialize
our products successfully. Other companies offering similar or substitute products may have well-established and well-funded marketing
and sales operations in place that will allow them to market their products more successfully. Failure to establish sufficient
marketing capabilities may have a material adverse impact on our potential revenues and results of operations. Alternatively, if
we decide to perform our own sales and marketing activities,we will require additional management, will need
to hire sales and marketing personnel, and will require additional capital. We cannot make any assurances that qualified personnel
will be available in adequate numbers or at a reasonable cost, that additional financing will be available on acceptable terms,
or at all, or that our sales staff will achieve success in their marketing efforts.  Exchange rate fluctuations will continue
to affect our reported results of operations  The functional currency of each of our Group's
entities is measured using the currency of the primary economic environment in which that entity operates. For our operations in
Hong Kong and China, the functional currency for the companies operating in these territories will have a functional currency of
Hong Kong dollars and Chinese Renminbi, respectively. Substantially all of our revenues are realized, and a significant portion
of our operating costs are incurred, in Hong Kong dollars and Chinese Renminbi. Movement in currency exchange rates will also affect
cash denominated in U.S. dollars and Australian dollars and therefore will affect our reported results of operations.   6    We have limited manufacturing experience
with our production candidates. Delays in manufacturing sufficient quantities of products may negatively impact our business and
operations  We have limited manufacturing experience.
Our main focus is on pre-mass production manufacturing whilst we subcontract the mass production manufacturing to qualified manufacturers.
If we receive test orders, we may not be able to manufacture sufficient quantities in a cost-effective or timely manner which would
hinder the commercialization of the product, and reduce potential revenues. We may manufacture ourselves, but we may not have the
expertise, staffing and technical capability to operate a successful and profitable manufacturing operation. We may need to develop
additional manufacturing resources, enter into collaborative arrangements with other parties, or have third parties manufacture
our products on a contract basis. We may not have access, on acceptable terms, to substantial financing that would be required
to scale-up production and develop commercial manufacturing processes. We may not be able to enter into collaborative or contractual
arrangements on acceptable terms with third parties that will meet our requirements for quality, quantity and timeliness. Such
delays and hurdles could harm our business, financial condition and results of operations. To the extent we rely significantly
on contractors, we will be exposed to risks related to the business conditions of our contractors We are a small company, with few manufacturing
staff and small test assembly facilities. We rely on a variety of contractors to manufacture our products. Adverse events that
affect one or more of our contractors could adversely affect us, such as:  •
    a contractor is unable to retain key staff that have been working on our manufacturing orders;•
    a contractor produces substandard products that are unacceptable to clients;•
    a contractor is unable to sustain operations due to financial or other business issues;•
    a contractor loses its business permits or licenses that may be required to manufacture our products; or•
    errors, negligence or misconduct that occur within a contractor may adversely affect our business concerns although we may not be directly responsible.   To the extent we are able to enter into
collaborative arrangements or strategic alliances, we will be exposed to risks related to those collaborations and alliances An important element of our strategy
for developing, manufacturing and commercializing our 3D products is entering into partnerships and strategic alliances with other
electronics and distribution companies or other industry participants to advance our development and distribution capabilities
and enable us to maintain our financial and operational capacity. We may not be able to negotiate alliances on acceptable terms,
if at all. Although we are not currently party to any collaborative arrangement or strategic alliance that we believe is material
to our business, in the future we may rely on collaborative arrangements or strategic alliances to complete the development and
commercialization of some of our 3D products. Although we have no specific reason to believe that we will be at a disadvantage
when negotiating such collaborative arrangements or strategic alliances, our negotiating position will be influenced by our financial
capacity at the relevant time to continue the development and commercialization of the relevant 3D products, as well as the timing
of any such negotiations and the stage of development of the relevant product candidate. These arrangements may result in us receiving
less revenue than if we sold such products directly, may place the development, sales and marketing of our products outside our
control, may require us to relinquish important rights or may otherwise be on terms unfavorable to us. Collaborative arrangements
or strategic alliances will subject us to a number of risks, including the risk that:  •
    we may not be able to control the amount and timing of resources that our strategic partners/collaborators may devote to the 3D products;•
    our strategic partners/collaborators may experience financial difficulties;•
    we may be required to relinquish important rights such as marketing and distribution rights;•
    business combinations or significant changes in a collaborator's business strategy may also adversely affect a collaborator's willingness or ability to complete its obligations under any arrangement;•
    a collaborator could independently move forward with a competing product developed either independently or in collaboration with others, including our competitors; and•
    collaborative arrangements are often terminated or allowed to expire, which would delay the development and may increase the cost of developing our product candidates.   7    We may face intellectual property infringement
claims and other related claims that could be time-consuming and costly to defend and may result in our inability to continue providing
certain of our existing services  Technology and service companies are frequently
involved in litigation based on allegations of infringement of intellectual property rights, unfair competition, and invasion of
privacy, defamation and other violations of third-party rights. The validity, enforceability and scope of protection of intellectual
property, particularly in China, are uncertain and still evolving. In addition, many parties are actively developing and seeking
protection for electronics technologies, including seeking patent protection. There may be patents issued or pending that are held
by others that cover significant aspects of our technologies, products, business methods or services. As we face increasing competition
and as litigation becomes more common in China and Hong Kong and elsewhere in Asia for resolving commercial disputes, we face a
higher risk of being the subject of intellectual property infringement claims.  Intellectual property litigation is expensive
and time consuming and could divert resources and management attention from the operations of our businesses. If there is a successful
claim of infringement, we may be required to pay substantial fines and damages or enter into royalty or license agreements that
may not be available on commercially acceptable terms, if at all. Our failure to obtain a license of the rights on a timely basis
could harm our business. Any intellectual property litigation could have a material adverse effect on our business, financial condition
or results of operations.  If we fail to maintain an effective system
of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud  We are subject to reporting obligations under
the U.S. securities laws. The SEC, as required by Section 404 of the Sarbanes-Oxley Act of 2002, adopted rules requiring every
public company to include in its annual report a management report on such company's internal controls over financial reporting
which contains management's assessment of the effectiveness of the company's internal controls over financial reporting. In addition,
if the Company qualifies under certain revenue or market capitalization test an independent registered public accounting firm must
attest to and report on management's assessment of the effectiveness of the company's internal controls over financial reporting.
In addition, an independent registered public accounting firm must attest to and report on management's assessment of the effectiveness
of the company's internal controls over financial reporting. Our management may conclude that our internal controls over financial
reporting are not effective. Moreover, even if our management concludes that our internal controls over financial reporting are
effective, our independent registered public accounting firm may still decline to attest to our management's assessment or may
issue a report that is qualified if they are not satisfied with our controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us. Our reporting obligations as
a public company will place a significant strain on our management, operational and financial resources and systems for the foreseeable
future. We are a Company with a small team of accounting personnel and other resources with which to address our internal financial
controls and procedures. If we fail to timely achieve and maintain the adequacy of our internal financial controls, we may not
be able to conclude that we have effective internal controls over financial reporting at a reasonable assurance level. Moreover,
effective internal controls over financial reporting are necessary for us to produce reliable financial reports and are important
to help prevent fraud. As a result, our failure to achieve and maintain effective internal controls over financial reporting could
result in the loss of investor confidence in the reliability of our financial statements, which in turn could harm our business
and negatively impact the market price of our shares.  If we fail to attract customers for our
3D products or services, our growth prospects could be seriously harmed  Our distributors will not work with us if our
products and services offerings do not sell well or do not have adequate sales margin for their sales channels. In addition, our
customers will not maintain their business relationships with us if we cannot secure attractive competitive product and service
offerings. Failure to retain customers, distributors or channel partners could seriously harm our business and growth prospects.    8    Because we primarily rely on distributors
in distributing 3D display technology and systems, our failure to retain key distributors or attract additional distributors could
materially and adversely affect our business  For our 3D business, we mainly rely on distributors
to sell our products and services. If our distributors do not provide quality services to its customers, they may lose customers
and our results of operations may be materially and adversely affected indirectly. We will sign distributing agreements with our
distributors, although we may not sign any long-term agreements with them, but we cannot assure that we can maintain favorable
relationships with them. Our distribution arrangements will be non-exclusive. Furthermore, some of our potential distributors may
have contracts with our competitors or potential competitors and may not sign distribution agreements with us. If we fail to retain
our key distributors or attract additional distributors on terms that are commercially reasonable, our business and results of
operations could be materially and adversely affected.  The recent global economic and financial
market crisis due to Covid 19 has had and may continue to have a negative effect on our business and results of operations  Global economic conditions as a result of Covid
19 have had a negative effect on our business and results of operations as the economic activity in China and throughout much of
the world has also undergone an economic downturn. As a result, the global credit and liquidity have tightened in much of the world.
Some of our potential customers in China and Hong Kong may face business downturn and credit issues, and could experience cash
flow problems and other financial hardships, which could affect timeliness of doing business with us.  Changes in governmental banking, monetary and
fiscal policies to restore liquidity and increase credit availability may not be effective in alleviating the global economic declines
due to the Covid 19 pandemic. It is difficult to determine the breadth and duration of the economic and financial market problems
and the many ways in which they may affect our customers and our business in general. Nonetheless, continuation or further worsening
of these difficult financial and macroeconomic conditions could have a significant effect on our business and results of operations.  Capital markets are currently experiencing
a period of dislocation and instability, which has had and could continue to have a negative impact on the availability and cost
of capital  The general disruption in the U.S. and Australia
capital markets has impacted the broader financial and credit markets and reduced the availability of debt and equity capital for
the market as a whole. These conditions could persist for a prolonged period of time or worsen in the future. Our ability to access
the capital markets may be restricted at a time when we would like, or need, to access such markets, which could have an impact
on our flexibility to react to changing economic and business conditions. The resulting lack of available credit, lack of confidence
in the financial sector, increased volatility in the financial markets and reduced business activity could materially and adversely
affect our business, financial condition, results of operations and our ability to obtain and manage our liquidity. In addition,
the cost of debt financing may be materially adversely impacted by these market conditions.  The success of our business depends on the
continuing contributions of key personnel who may terminate their employment with us at any time, and we will need to hire additional
qualified personnel  We rely heavily on the services of technical
and management personnel. Loss of the services of any such individuals would adversely impact our operations. In addition, we believe
our technical personnel represent a significant asset and provide us with a competitive advantage over many of our competitors
and that our future success will depend upon our ability to retain these key employees and our ability to attract and retain other
skilled financial, engineering, technical and managerial personnel. We do not currently maintain any "key man" life insurance
with respect to any of such individuals.   9    Our success depends on the continuing efforts
of our senior management team and other key personnel and our business may be harmed if we lose their services  Our future success depends heavily upon the
continuing services of the members of our senior management. If one or more of our senior executives or other key personnel are
unable or unwilling to continue in their present positions, we may not be able to replace them easily or at all, and our business
may be disrupted and our financial condition and results of operations may be materially and adversely affected. Competition for
senior management and key personnel is intense, the pool of qualified candidates is very limited, and we may not be able to retain
the services of our senior executives or key personnel, or attract and retain high-quality senior executives or key personnel in
the future.  In addition, if any member of our senior management
team or any of our other key personnel joins a competitor or forms a competing company, we may lose customers, distributors, know-how
and key professionals and staff members. Each of our executive officers and key employees has entered into an employment agreement
with us which contains confidentiality and non-competition provisions. Legal proceedings to enforce such provisions would be costly
in both money and management time and such provisions may not be enforced or enforceable.  We rely on highly skilled personnel and
if we are unable to retain or motivate key personnel or hire qualified personnel, we may not be able to grow effectively  Our performance and future success depends
on the talents and efforts of highly skilled individuals. We will need to continue to identify, hire, develop, motivate and retain
highly skilled personnel for all areas of our organization. Competition in our industry for qualified employees is intense. Our
continued ability to compete effectively depends on our ability to attract new employees and to retain and motivate our existing
employees.  As competition in our industry intensifies,
it may be more difficult for us to hire, motivate and retain highly skilled personnel. If we do not succeed in doing so, we may
be unable to grow effectively.  We have no business insurance coverage  We do not have any business liability or disruption
insurance coverage for our operations in China and Hong Kong. Any business disruption, litigation or natural disaster may result
in our incurring substantial costs and the diversion of our resources.  We are exposed to risks associated with
the weakening global economy as a result of Covid 19, which increase the uncertainty of consumers purchasing products and/or services  The recent severe tightening of the credit
markets, turmoil in the financial markets, and weakening global economy due to Covid 19 pandemic are contributing to a decrease
in spending by consumers. If these economic conditions are prolonged or deteriorate further, as a result of Covid 19, the market
for our products and services will decrease accordingly.   10    Our Company may experience, and continues to
experience, rapid growth in operations, which may place, and may continue to place, significant demands on its management, operational
and financial infrastructure  If the Company does not effectively manage
its growth, the quality of its products and services could suffer, which could negatively affect the Company's brand and operating
results. To effectively manage this growth, the Company will need to continue to improve its operational, financial and management
controls and its reporting systems and procedures. Failure to implement these improvements could hurt the Company's ability to
manage its growth and financial position.  Our Company's business faces inherent risk
in the electronics and digital media industries for 3D products and services  Our Company’s business is subject to
certain risks inherent in the electronics and digital advertising industries for 3D products and services. Our Company’s
revenue and operating results could be adversely affect by many factors which include, amongst others, changes in general economic,
business and credit conditions, fluctuation in foreign exchange rates, changes in demand for and market acceptance of our products
and services, our ability to introduce new products and services and enhancements in a timely manner, rapid technological changes,
increase in operating expenses, lower profit margins due to pricing competition and delay in expansion plans.  Our Company seeks to limit these business risks
through, inter-alia prudent management policies, keeping abreast with new developments and technologies in the relevant industries
and maintaining good relationship with customers and suppliers. However there can be no assurance that any changes in these factors
will not have any material adverse effect on our Company’s business.  Our Company's business faces competition
from local and foreign competitors  Our Company faces competition from both local
and foreign competitors which offer similar products that of our Company offerings. Increased competition could result in competitive
pricing resulting in lower profit margins. However, our Company believes that we have competitive edge over our competitors; including
amongst others, better quality products, access to R&D capabilities and technological expertise acquired over the years.  Our Company seeks to limit the competitive
risks through, inter-alia constant review of our product development and marketing strategies to adapt to changes in economic conditions
and market demands as well as focusing on certain markets and industries. However, there can be no assurance that our Company will
be able to compete effectively against our competitors and that competitive pressure will not materially and adversely affect our
Company’s business, operations and results and or financial condition.   11    Risks Relating to Our Organization  Public company compliance may make it more
difficult for us to attract and retain officers and directors  The Sarbanes-Oxley Act and new rules subsequently
implemented by the SEC have required changes in corporate governance practices of public companies. As a public company, we expect
these new rules and regulations to increase our compliance costs to an estimate of about A$250,000 and to make certain activities
more time consuming and costly. As a public company, we also expect that these new rules and regulations may make it more difficult
and expensive for us to obtain director and officer liability insurance in the future and we may be required to accept reduced
policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more
difficult for us to attract and retain qualified persons to serve on our board of directors or as executive officers. If we infringe the intellectual
property rights of third parties, it may increase our costs or prevent us from the commercialization our product candidates. There is a risk that we are or may
infringe the proprietary rights of third parties of which we are unaware. There has been substantial litigation and other proceedings
regarding patent and other intellectual property rights in the electronics industries. To date, we have not been involved in any
such third-party claims and we are not aware that our 3D infringe the intellectual property rights of third parties. As a result
of intellectual property infringement claims, or to avoid potential claims, we might be:  •
    prohibited from selling or licensing any products that we may develop unless the patent holder licenses the patent to us, which it is not required to do;  •
    required to expend considerable amounts of money in defending the claim;  •
    required to pay substantial royalties or grant a cross license to our patents to another patent holder;  •
    required to redesign the formulation of a product so that it does not infringe, which may not be possible or could require substantial funds and time; or  •
    required to pay substantial monetary damages. Future sales of our products may
suffer if they are not accepted in the marketplace by consumers and customers. There is a risk that our 3D products
may not gain market acceptance by consumers and customers. The degree of market acceptance of any of our 3D products will depend
on a variety of factors, including:  •
    timing of market introduction; and  •
    price and product feature compared to existing and new products.  We may be exposed to product liability claims
which could harm our business.  The marketing and sale of consumer and electronic
products entails an inherent risk of product liability. We face product liability exposure related to our products. Regardless
of merit or eventual outcome, liability claims may result in:  •
    decreased demand for our products;  •
    injury to our reputation;  •
    costs of related litigation;  •
    substantial monetary awards to customers and others;  •
    loss of revenues; and  •
    the inability to commercialize our other products.  If there is a claim made against us or some
other problems that is attributable to our products, our share price may be negatively affected. Even if we were ultimately successful
in product liability litigation, the litigation would consume substantial amounts of our financial and managerial resources and
may create adverse publicity, all of which would impair our ability to generate sales of our product candidates. We may incur substantial
liabilities or be required to limit development or commercialization of our product candidates if we cannot successfully defend
ourselves against product liability claims. Such coverage may not be available in the future on acceptable terms, or at all. Even
if we have adequate insurance coverage, product liability claims or recalls could result in negative publicity and force us to
devote significant managerial and financial resources to those matters, and the commercialization of our other products may be
delayed or severely compromised.   12    Changes in government legislation and policy may adversely affect
us  While we do not anticipate in the near future
any specific material changes in government legislation that may adversely affect us, any material changes in interest rates, exchange
rates, relevant taxation and other legal regimes and government policies may adversely affect our operations, the use of our financial
resources and the market price of our ordinary shares.  Currency fluctuations may expose us to increased costs and revenue
decreases  Our business may in the future be affected
by fluctuations in foreign exchange rates. Currency fluctuations could, therefore, cause our costs to increase and revenues to
decline. The majority of our expenses will continue to be denominated in Hong Kong dollars and Renminbi. In the past two years,
the Australian dollars, our reporting currency, has as a general trend, depreciated against the U.S. currency. We cannot anticipate
whether this trend will continue in respect of the U.S. dollars. The exchange rates of the Australian dollar to the Hong Kong and
the Chinese Renminbi have also fluctuated over the same period. In circumstances where the Australian dollar depreciates against
either or both of the U.S. dollar, Hong Kong dollar or Chinese Renminbi, this may have an adverse effect on our costs incurred
in either the U.S. or Hong Kong or China (as applicable) but may have a positive effect on any revenues which we source from the
U.S. or Hong Kong or China (as applicable). The same principles apply in respect of our costs and revenues in other jurisdictions.
In addition, we conduct operations in Hong Kong and China, which exposes us to potential cost increases resulting from fluctuations
in exchange rates. To date, we have been affected negatively on material foreign exchange losses as a result of currency fluctuations. Australian takeovers laws may discourage
takeover offers being made for us or may discourage the acquisition of large numbers of our shares We are incorporated in Australia and
are subject to the takeovers laws of Australia. Amongst other things, we are subject to the Corporations Act 2001 (Commonwealth
of Australia). Subject to a range of exceptions, the Corporations Act prohibits the acquisition of a direct or indirect interest
in our issued voting shares if the acquisition of that interest will lead to a person's or someone else's voting power in us increasing
from 20% or below to more than 20%, or increasing from a starting point that is above 20% and below 90%. Exceptions to the general
prohibition include circumstances where the person makes a formal takeover bid for us, if the person obtains shareholder approval
for the acquisition or if the person acquires less than 3% of the voting power of us in any rolling six month period. Australian
takeovers laws may discourage takeover offers being made for us or may discourage the acquisition of large numbers of our shares. Rights as a holder of ordinary
shares are governed by Australian law and our Constitution and differ from the rights of shareholders under U.S. law. Holders of
our ordinary shares may have difficulty in effecting service of process in the United States or enforcing judgments obtained in
the United States We are a public company incorporated under the laws of Australia. Therefore, the rights of holders of our ordinary shares are governed
by Australian law and our Constitution. These rights differ from the typical rights of shareholders in U.S. corporations. Circumstances
that under U.S. law may entitle a shareholder in a U.S. company to claim damages may also give rise to a cause of action under
Australian law entitling a shareholder in an Australian company to claim damages. However, this will not always be the case. Holders
of our ordinary shares may have difficulties enforcing, in actions brought in courts in jurisdictions located outside the U.S.,
liabilities under U.S. securities laws. In particular, if such a holder sought to bring proceedings in Australia based on U.S.
securities laws, the Australian court might consider:  •
    that it did not have jurisdiction; and/or  •
    that it was not an appropriate forum for such proceedings; and/or  •
    that, applying Australian conflict of laws rule, U.S. law (including U.S. securities laws) did not apply to the relationship between holders of our ordinary shares and us or our directors and officers; and/or  •
    that the U.S. securities laws were of a public or penal nature and should not be enforced by the Australian court.  Holders of our ordinary shares may also have
difficulties enforcing in courts outside the U.S. judgments obtained in the U.S. courts against any of our directors and executive
officers or us, including actions under the civil liability provisions of the U.S. securities laws.   13    Our operations may be materially and adversely
affected by changes in the economic, political and social conditions of China  Some of our non-cash assets are located in,
and some of our revenue is sourced from China. However, the growth of our 3D display business will be derived from China. Accordingly,
our business, financial condition, results of operations and prospects may be influenced to a significant degree by political,
economic and social conditions in China generally and by continued economic growth in China as a whole.  China economy differs from the economies of
most developed countries in many respects, including the extent of government involvement, level of development, growth rate, control
of foreign exchange and allocation of resources. While China economy has experienced significant growth over the past three decades,
growth has been uneven across different regions and among various economic sectors. The Chinese government has implemented various
measures to encourage economic development and guide the allocation of resources. Some of these measures benefit the overall China
economy, but may also have a negative effect on us. For example, our operating results and financial condition may be adversely
affected by government control over capital investments or changes in tax regulations that are applicable to us. We cannot predict
the possible impact of any future economic policies of the Chinese government on our business and operations.  China is facing a continued slowdown in economic
growth. China's annual gross domestic product growth rate 2019 was 6.1% compared to 6.7% in 2018 and 6.9% in 2017. This slowdown
could cause a slowdown or decline in investment in digital advertising display networks, which, in turn, may result in a reduction
of demand for our products and services and thus materially reduce our revenues and profitability.  Uncertainties in the interpretation and
enforcement of Chinese laws, rules and regulations could limit the legal protections available to you and us.  China legal system is a civil law system based
on written statutes. Unlike common law systems, it is a system in which legal decisions have limited value as precedents. In 1979,
the Chinese government began to promulgate a comprehensive system of laws and regulations governing economic matters in general.
The overall effect of legislation over the past three decades has significantly increased the protections afforded to various forms
of foreign or private-sector investment in China. Our operations in China are foreign-invested enterprise and is subject to laws,
rules and regulations applicable to foreign investment in China as well as laws, rules and regulations applicable to foreign-invested
enterprises. These laws, rules and regulations change frequently, and their interpretation and enforcement involve uncertainties.
For example, we may have to resort to administrative and court proceedings to enforce the legal protections that we enjoy either
by law or contract. However, since China administrative and court authorities have significant discretion in interpreting and implementing
statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the
level of legal protection we enjoy than in more developed legal systems. These uncertainties may also impede our ability to enforce
the contracts we have entered into, and materially impair our business and operations.  We may rely on dividends and other distributions
on equity paid by our operating subsidiary to fund cash and financing requirements, and limitations on the ability of our operating
subsidiaries to pay dividends to us could materially restrict our ability to conduct our business.  We, as a holding company, may rely on dividends
and other distributions on equity paid by our operating China subsidiaries for our cash and financing requirements, including the
funds necessary to pay dividends and other cash distributions to the parent company, service any debt we may incur and pay our
operating expenses. If these China subsidiaries incurs debt on their own behalf in the future, the instruments governing the debt
may restrict their ability to pay dividends or make other distributions to us. Furthermore, relevant Chinese laws, rules and regulations
permit payments of dividends by our China subsidiaries only out of their retained earnings, if any, determined in accordance with
Chinese accounting standards and regulations.  Restrictions on currency exchange may limit
our ability to effectively utilize our revenues as well as the ability of our China subsidiaries to obtain debt or equity financing
from financial institutions or investors outside China, including us.  A significant portion of our operating revenues
have been denominated in Renminbi. The Renminbi is currently convertible under the "current account," which includes
dividends, trade and service-related foreign exchange transactions, but not under the "capital account," which includes
foreign direct investment and loans. Currently, each of our China subsidiaries may purchase foreign exchange for settlement of
"current account transactions," including purchase of imported components i.e. display chips and payment of dividends
to the overseas parent company, without the approval of the State Administration of Foreign Exchange (the “SAFE”) by
complying with certain procedural requirements. However, the relevant Chinese government authorities may limit or eliminate our
ability to purchase foreign currencies in the future for current account transactions. Since a significant amount of our future
revenues will likely be denominated in Renminbi, any existing and future restrictions on currency exchange may limit our ability
to utilize revenues generated in Renminbi to purchase for example computer display chips from suppliers outside China or fund our
business activities outside China denominated in foreign currencies or pay dividends in foreign currencies to our overseas parent
company.  In addition, certain foreign exchange transactions
under the capital account are still subject to limitations and require approvals from, or registration with, the SAFE (or qualified
banks designated by it) and other relevant Chinese government authorities. In particular, any loans to our China subsidiaries are
subject to China regulations and approvals. For example, loans by us to Marvel Display Technology (Shenzhen) Limited, a foreign-invested
enterprise, cannot exceed statutory limits and must be registered with the SAFE or its local counterpart.  This could affect the ability of Marvel Display
Technology (Shenzhen) Limited to obtain foreign exchange through debt or equity financing, including by means of loans or capital
contributions from us.   14    The Chinese government may alter its regulations
and policies from time to time which may have direct or indirect impact to our Company operation.  Regulations and policies may be altered or
other new regulations and policies may be implemented by the Chinese government from time to time which may have direct or indirect
impact to our business operations. Some examples of such regulations and policies are:  1
    media broadcast regulations over the Internet;  2
    foreign media to be distributed in China;  3
    operating permit for mobile sales and distribution;  4
    copyrighted digital media regulations;  5
    educational and cultural materials to be sold, distributed, created or transacted in China by foreign investment entities; and  6
    foreign investment entities to operate business in the educational and media industries.  These are only some of the examples that may
have more direct impact to our business. Change of government officials may also affect changes in regulations and policies, especially
within local government. These changes may have impact to the operating strategies or financial performance of the Company.   15    Risks Associated with Our Technology and
Intellectual Property  Potential technological changes in our field of business create
considerable uncertainty  We are engaged in the 3D technology field,
which is characterized by extensive research efforts and rapid technological progress. New developments in research are expected
to continue at a rapid pace in both industry and academia. Research and discoveries by others may render some or all of our products
uncompetitive or obsolete.  Our business strategy is based in part upon
new technologies to the development of 3D products. Unforeseen problems may develop with these technologies or applications and
it is possible that commercially feasible products will not ultimately be developed by us.  If we are unable to keep pace with technological
change or with the advances of our competitors our technology and products may become non-competitive  The 3D display and electronics industries are
subject to rapid and significant technological change. Our competitors in Hong Kong, China and Australia and elsewhere are numerous
and include, among others, major technology companies, large electronics companies, universities and other research institutions.
These competitors may develop technologies and products that are more effective than any that we are developing, or which would
render our technology and products obsolete or non-competitive. Many of these competitors have greater financial and technical
resources and manufacturing and marketing capabilities than we do. In addition, many of our competitors have much more experience
than we do in commercializing new technologies of new or improved display products.  We know that competitors are developing or
manufacturing various technologies or products for the 3D display products and services that we have targeted for product development.
Some of these competitive products use alternative approaches that compete directly with some of our product candidates. Our ability
to further develop our products may be adversely affected if any of our competitors were to succeed in commercializing their products
sooner than we do.  Our success depends upon our ability to protect our intellectual
property and our proprietary technology  Our success will depend in large part on whether we can:  •
    Obtain and maintain patents to protect our own products;  •
    Obtain licenses to relevant patented technologies of third parties;  •
    Operate without infringing on the proprietary rights of third parties;  •
    Protect our trade secrets and know-how; and  •
    Retain our valuable scientific staff who are experts on the subject matter.  Patent matters in industrial and consumer electronics
are highly uncertain and involve complex legal and factual questions. Accordingly, the availability and breadth of claims allowed
in electronics patents cannot be predicted. Statutory differences in patentable subject matter may limit the protection we can
obtain on some or all of our inventions outside Hong Kong or China or prevent us from obtaining patent protection outside Hong
Kong or China, either of which could have a material adverse effect on our business, financial condition and results of operations.
Moreover, since patent applications in Hong Kong or China are maintained in secrecy until the patent is issued, and since publication
of discoveries in the scientific or patent literature often lags behind actual discoveries, we cannot be certain that we or any
of our licensors were the first creator of inventions covered by pending patent applications or that we or our licensors were the
first to file patent applications for such inventions. Additionally, the enforceability of a patent depends on a number of factors
that may vary amongst jurisdictions. These factors may include the novelty of the invention, the requirement that the invention
not be obvious in light of prior art (including prior use or publication of the invention), the utility of the invention, and the
extent to which the patent clearly describes the best method of working the invention.   16    Our success depends upon our ability to protect our intellectual
property and our proprietary technology (continued)  While we intend to seek patent protection for
some of our 3D products and technologies, we cannot be certain that any of the pending or future patent applications filed by us
or on our behalf will be approved, or that we will develop additional proprietary products or processes that are patentable or
that we will be able to license any other patentable products or processes. We also cannot be certain that others will not independently
develop similar products or processes, duplicate any of the products or processes developed or being developed by us or licensed
to us, or design around the patents owned or licensed by us, or that any patents owned or licensed by us will provide us with competitive
advantages. Furthermore, we cannot be certain that patents held by third parties will not prevent the commercialization of products
incorporating the technology developed by us or licensed to us, or that third parties will not challenge or seek to narrow, invalidate
or circumvent any of the issued, pending or future patents owned or licensed by us.  We may have to resort to litigation to enforce
any patents issued or licensed to us or to determine the scope and validity of third party proprietary rights. We may have to defend
the validity of our patents in order to protect or enforce our rights against a third party, or third parties may in the future
assert against us infringement claims regarding proprietary rights belonging to them. Such proceedings could result in the expenditure
of significant financial and managerial resources and could negatively affect our profitability. Adverse determinations in any
such proceedings could prevent us from developing and commercializing our products and could harm our business, financial condition
and results of operations.  Our commercial success will also depend, in
part, on our ability to avoid infringement of patents issued to others. If a court determines that we were infringing any third-party
patents, we could be required to pay damages, alter our products or processes, obtain licenses or cease certain activities. We
cannot be certain that the licenses required under patents held by third parties would be made available on terms acceptable to
us or at all. To the extent that we are unable to obtain such licenses, we could be foreclosed from the development, manufacture
or commercialization of the product requiring such license or encounter delays in product introductions while we attempt to design
around such patents, and any of these circumstances could have a material adverse effect on our business, financial condition and
results of operations.  In addition to patent protection, we rely on
unpatented trade secrets and know-how and proprietary technological innovation and expertise that are protected in part by confidentiality
and invention assignment agreements with our employees, advisors and consultants. We cannot make any assurances that we will have
adequate remedies for any breach. In addition, third parties could independently develop the same or similar technologies.  If we are not able to protect and control
unpatented trade secrets, know-how and other technological innovation, we may suffer competitive harm  In addition to patented intellectual property,
we also rely on unpatented technology, trade secrets, confidential information and know-how to protect our technology and maintain
our competitive position. Trade secrets are difficult to protect. In order to protect proprietary technology and processes, we
rely in part on confidentiality and intellectual property assignment agreements with our employees, consultants and others. These
agreements may not effectively prevent disclosure of confidential information or result in the effective assignment to us of intellectual
property, and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information or other breaches
of the agreements. In addition, others may independently discover trade secrets and proprietary information that have been licensed
to us or that we own, and in such case we could not assert any trade secret rights against such party. Enforcing a claim that a
party illegally obtained and is using trade secrets that have been licensed to us or that we own is difficult, expensive and time-consuming,
and the outcome is unpredictable. In addition, courts outside the United States and Australia may be less willing to protect trade
secrets. Costly and time-consuming litigation could be necessary to seek to enforce and determine the scope of our proprietary
rights, and failure to obtain or maintain trade secret protection could have a material adverse effect on our business.  We do not have patent protection in certain
countries and we may not be able to effectively enforce our intellectual property rights in certain countries, which could significantly
erode the market for our product candidates  We intend to seek regulatory approval to market
our product candidates in a number of foreign countries. Our product candidates are not protected by patents in certain countries,
which means that competitors may be free to sell products that incorporate the same technology that is used in our products in
those countries. In addition, the laws and practices in some foreign countries may not protect intellectual property rights to
the same extent as in the United States or Australia. We may not be able to effectively obtain, maintain or enforce rights with
respect to the intellectual property relating to our product candidates in those countries. Our lack of patent protection in one
or more countries, or the inability to obtain, maintain or enforce intellectual property rights in one or more countries, could
adversely affect our ability to commercialize our products in those countries and could otherwise have a material adverse effect
on our business.   17    Risks Relating to Our Securities  Our stock price may be volatile  The market price of our Common Stock is likely
to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control,
including the following:  •
    changes in our industry;•
    our ability to work through a health crisis or pandemic;•
    competitive pricing pressures;•
    our ability to obtain working capital financing;•
    additions or departures of key personnel;•
    limited "public float" in the hands of a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for our Common Stock;•
    sales of our Common Stock;•
    our ability to execute our business plan;•
    operating results that fall below expectations;•
    loss of any strategic relationship;•
    regulatory developments;•
    developments concerning research and development, manufacturing, and marketing alliances or collaborations by us and our competitors;•
    announcements of technological innovations or new commercial products by us and our competitors;•
    regulatory actions in respect of any of our products or the products of any of our competitors;•
    determinations regarding our patent applications and those of others;•
    market conditions, including market conditions in the technology and digital media sectors;•
    increases in our costs or decreases in our revenues due to unfavorable movements in foreign currency exchange rates;•
    development or litigation concerning patents, licenses and other intellectual property rights;•
    litigation or public concern about the safety of our potential products;•
    changes in recommendations or earnings estimates by securities analysts;•
    deviations in our operating results from the estimates of securities analysts;•
    rumors relating to us or our competitors;•
    developments concerning current or future strategic alliances or acquisitions;•
    political, economic and other external factors such as interest rate or currency fluctuations; and•
    period-to-period fluctuations in our financial results.  In addition, stock markets have recently experienced
extreme price and volume fluctuations due to the effects of Covid 19. These fluctuations have especially affected the stock market
price of many technology and digital media companies and, in many cases, are unrelated to the operating performance of the particular
companies. We believe that these broad market fluctuations may continue to affect the market price of our ordinary shares. Our ordinary shares may be considered
a "penny stock" under SEC regulations which could adversely affect the willingness of investors to hold our Shares The SEC has adopted regulations which
generally define "penny stock" to be an equity security that has a market price of less than $5.00 per share, subject
to specific exemptions. During the fiscal year ended December 31, 2019, our ordinary shares traded on the Nasdaq at below of US$5.00
per share. The low trading price of our ordinary shares may adversely impact the willingness of investors to invest in our common
shares in the United States.   18    We may be deemed a passive foreign investment company (PFIC)
which would subject our U.S. investors to adverse tax rules Holders of our ordinary shares who
are U.S. residents face income tax risks. There is a substantial risk that if we are deemed a passive foreign investment company,
or PFIC, which could result in a reduction in the after-tax return to a "U.S. Holder" of our ordinary shares. For U.S.
federal income tax purposes, we will be classified as a PFIC for any taxable year in which (i) 75% or more of our gross income
is passive income, or (ii) at least 50% of the average value of all of our assets for the taxable year produce or are held
for the production of passive income. For this purpose, cash is considered to be an asset that produces passive income. The determination of whether we are a
PFIC is made on an annual basis and depends on the composition of our income and the value of our assets. Therefore, it is possible
that we could be deemed a PFIC in the current year as well as in future years. If we are classified as a PFIC in any year that
a U.S. Holder owns ordinary shares, the U.S. Holder will generally continue to be treated as holding ordinary shares of a PFIC
in all subsequent years, notwithstanding that we are not classified as a PFIC in a subsequent year. Dividends received by the U.S.
Holder and gains realized from the sale of our ordinary shares would be taxed as ordinary income and subject to an interest charge.
We urge U.S. investors to consult their own tax advisors about the application of the PFIC rules and certain elections that may
help to minimize adverse U.S. federal income tax consequences in their particular circumstances.  As a foreign private issuer whose shares
are listed on the NASDAQ Capital Market, we may follow certain home country corporate governance practices in lieu of instead of
certain NASDAQ requirements As a foreign private issuer whose shares
are listed on the NASDAQ Capital Market, we are permitted to follow certain home country corporate governance practices instead
of certain requirements of The NASDAQ Marketplace Rules. As an Australian company listed on the NASDAQ Capital Market, we may follow
home country practice with regard to, among other things, the composition of the board of directors, director nomination process,
compensation of officers and quorum at shareholders' meetings. In addition, we may follow Australian law instead of the NASDAQ
Marketplace Rules that require that we obtain shareholder approval for certain dilutive events, such as for the establishment or
amendment of certain equity based compensation plans, an issuance that will result in a change of control of the company, certain
transactions other than a public offering involving issuances of a 20% or more interest in the company and certain acquisitions
of the stock or assets of another company. A foreign private issuer that elects to follow a home country practice instead of NASDAQ
requirements, must submit to NASDAQ in advance a written statement from an independent counsel in such issuer's home country certifying
that the issuer's practices are not prohibited by the home country's laws. In addition, a foreign private issuer must disclose
in its annual reports filed with the U.S. Securities and Exchange Commission each such requirement that it does not follow and
describe the home country practice followed by the issuer instead of any such requirement. Accordingly, our shareholders may not
be afforded the same protection as provided under NASDAQ's corporate governance rules. Please see "Item 6. Directors, Senior
Management and Employees – C. Board Practices" for further information.  U.S. shareholders may not be able to enforce civil liabilities
against us  All of our directors and executive officers
are non-residents of the United States, and all or a substantial portion of the assets of such persons are located outside the
United States. As a result, it may not be possible for investors to affect service of process within the United States upon such
persons or to enforce against them judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal
securities laws of the United States. There is doubt as to the enforceability in Australia in original actions, or in actions for
enforcement of judgments of U.S. courts, of civil liabilities to the extent predicated upon the federal securities laws of the
United States.   19    As a foreign private issuer we do not have to provide the same
information as an issuer of securities based in the U.S  Given that we are a foreign private issuer
within the meaning of the rules under the Exchange Act, we are exempt from certain provisions of that law that are applicable to
U.S. public companies, including (i) the rules under the Exchange Act requiring the filing with the U.S. Securities and Exchange
Commission ("SEC") of quarterly reports on Form 10-Q or current reports on Form 8-K; (ii) the sections of the Exchange
Act regulating the solicitation of proxies, consents or authorizations in respect of a registered security; and (iii) the sections
of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for
insiders who profit from trades made in a short period of time. Thus, investors are not afforded the same information which would
be ordinarily available were they investing in a domestic U.S. public corporation.  In accordance with the requirements of the
Corporations Act 2001, we disclose annual and semi-annual results. Our results are presented in accordance with Australian Accounting
Standards and International Financial Reporting Standards (IFRS). Our annual results are audited, and our semi-annual results undergo
a limited review by our independent auditors. We file annual audited results presented in accordance with Australian Accounting
Standards and IFRS as issued by International Accounting Standards Board with the SEC on Form 20-F. We are required to provide
our semi-annual results and other material information that we disclose in Australia in the U.S. under the cover of Form 6-K. Nevertheless,
this information is not the same information as would be made available to investors were they investing in a domestic U.S. public
corporation.  Future issuances and sales of our stock
could dilute your ownership and may cause our stock price to decline  We intend to continue to finance our operations
through the issuance of securities, if feasible, including by way of the public equity markets, private financings and debt. If
we raise additional capital through the issuance of equity or securities convertible into equity, existing holders of our securities
may experience dilution. Those securities may have rights, preferences or privileges senior to those of the holders of our ordinary
shares. Additional financing may not be available to us on favorable terms, and financing available at less favorable terms may
lead to more substantial dilution of existing shareholders.  If we fail to comply with internal controls
evaluations and attestation requirements our stock price could be adversely affected  We are subject to United States securities
laws, including the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted by the SEC pursuant to such Act. As a foreign
private issuer, under Section 404 of the Sarbanes-Oxley Act and the related regulations, we will be required to perform an evaluation
of our internal control over financial reporting, including (1) management's annual report on its assessment of the effectiveness
of internal control over financial reporting; and (2) our independent registered public accounting firm's annual audit of the effectiveness
of internal control over financial reporting. In 2010, the enactment of the Dodd Frank Bill resulted in an exemption from Section
404(b) of the Sarbanes-Oxley Act for fiscal 2010 onwards, meaning that we did not have to comply with point (2) above. For further
information, see "Item 15 - Controls and Procedures - Management's Annual Report on Internal Control over Financial Reporting."  The requirements of Section 404(a) of the Sarbanes-Oxley
Act are ongoing and also apply to future years. We expect that our internal control over financial reporting will continue to evolve
as our business develops. Although we are committed to continue to improve our internal control processes and we will continue
to diligently and vigorously review our internal control over financial reporting in order to ensure compliance with the Section
404 requirements, any control system, regardless of how well designed, operated and evaluated, can provide only reasonable, not
absolute, assurance that its objectives will be met. Therefore, we cannot be certain that in the future additional material weaknesses
or significant deficiencies will not exist or otherwise be discovered. If our efforts to remediate weaknesses identified are not
successful or if other deficiencies occur, these weaknesses or deficiencies could result in misstatements of our results of operations,
restatements of our financial statements, a decline in our stock price, or other material effects on our business, reputation,
results of operations, financial conditions or liquidity.   20    Our Constitution and other Australian laws
and regulations applicable to us may adversely affect our ability to take actions that could be deemed beneficial to our shareholders  As an Australian company we are subject to
different corporate requirements than a corporation organized under the laws of the United States. Our constituent document, or
Constitution, as well as the Corporations Act 2001 set forth various rights and obligations that are unique to us as an Australian
company. These requirements may limit or otherwise adversely affect our ability to take actions that could be beneficial to our
shareholders. We have never paid a dividend and
we do not intend to pay dividends in the foreseeable future which means that holders of shares may not receive any return on their
investment from dividends To date, we have not declared or paid
any cash dividends on our ordinary shares and currently intend to retain any future earnings for funding growth. We do not anticipate
paying any dividends in the foreseeable future. Dividends may only be paid out of our profits. Payment of cash dividends, if any,
in the future will be at the discretion of our board of directors. Our holders of shares may not receive any return on their investment
from dividends. The success of your investment will likely depend entirely upon any future appreciation of the market price of
our ordinary shares, which is uncertain and unpredictable. There is no guarantee that our ordinary shares will appreciate in value
or even maintain the price at which you purchased your ordinary shares.  We may not be able to attract the attention
of major brokerage firms  Securities analysts of major brokerage firms
may not provide coverage of us since there is no incentive to brokerage firms to recommend the purchase of our Common Stock. No
assurance can be given that brokerage firms will, in the future, want to conduct any secondary offerings on behalf of our Company.    21    ITEM 4.
    
    INFORMATION ON THE COMPANY  A.
    
    History and Development of the Company We were incorporated under the laws
of the Commonwealth of Australia on August 8, 2008 under the name "China Integrated Media Corporation Limited." On October
12, 2016, we changed the name to Integrated Media Technology Limited ("IMTE"). The registered office is located at Level
7, 420 King William Street, Adelaide, SA 5000, Australia and our telephone number is +61 8 7324 6018 and our fax number is +61
8 8312 0248. Our principal office is located at 7/F., Siu On Center, 188 Lockhart Road, Wanchai, Hong Kong and our telephone number
is +852 2989 0220 and our fax number is +852 2565 1303. Our address on the Internet is www.imtechltd.com. The information
on, or accessible through, our website is not part of this annual report on Form 20-F. We have included our website address in
this annual report on Form 20-F solely as an inactive textual reference. In 2013, IMTE was engaged in (i) the
development of the digital advertising platform in glasses-free 3D (autostereoscopic), (ii) distribution of digital displays and
(iii) lottery gaming business in China. In 2015, the Company changed its focus of its businesses to concentrate on 3D autostereoscopic
business and took the following corporate actions: (i) terminated the lottery gaming business in China and (ii) through a series
of acquisitions for 3D technology and audio companies as described below. Today, the Company focuses on the business activities
in the development, sale and distribution of autostereoscopic 3D display, 3D conversion equipment and software, development and
sale of 3D autostereoscopic technology and provision of 3D consultancy services. IMTE was listed on the Australian Securities
Exchange, or ASX, in February 2013 and raised A$3,480,000 at IPO. On February 9, 2015, the Company acquired
all of the issued shares of Conco International Co., Ltd. ("CICL"), a company principally engaged in the design, sales
and distribution of audio products. The consideration paid was $61,591 which was the amount of the net asset value of CICL. The
consideration was settled by the Company issuing 307,954 shares at $0.20 per share. In addition, the Company will pay performance
shares to be issued to the vendor contingent on CICL achieving an agreed level of profit performance. In May 2015, the Company entered into
a cooperation agreement to set up Global Vantage Audio Limited, a 50% subsidiary company, to distribute and market branded "Syllable"
headsets globally except for the markets in China, India and Pakistan. On September 30, 2015, the Company acquired
all of the issued shares of Marvel Digital Limited ("MDL"), a Hong Kong incorporated technology company principally engaged
in the development of autostereoscopic 3D display technology and products, 2D to 3D conversion software and digital content management
system. The consideration paid was A$5,216,213 which was the net asset value of MDL. The consideration was settled by the Company
issuing 26,081,065 shares at $0.20 per share. In addition, the Company will pay a deferred performance fee calculated at five times
of the average annualized consolidated profits of MDL for the two years' period from the completion date less the initial purchase
consideration. The deferred performance fee was paid in February 2018. As a result of the above acquisition
of MDL, Marvel Finance Limited, a company wholly owned and controlled by our Chairman, Dr. Herbert Ying Chiu Lee, became the controlling
shareholder of IMTE holding 44,787,331 shares (pre share consolidation) representing approximately 56.48% of the then outstanding
shares of IMTE. In February 2016, Digital Media Technology
Limited, a 100% owned subsidiary of IMTE, was incorporated in the Labuan, Malaysia. This subsidiary will be the sales and distribution
of products and technology licenses outside of Hong Kong and China.  In March 2016, the Company disposed Conco International
Co., Limited to an independent third party for US$41,235, representing the net asset value of CICL.  On October 12, 2016, pursuant to an extraordinary
general meeting the Shareholders unanimously voted to change the name of the Company to Integrated Media Technology Limited which
was registered with Australian Securities and Investments Commission, and became effective on the same date.   22    On May 2, 2017, we effected a 1-for-30 reverse
split of our common stock, which was approved at a special meeting of our shareholders on March 2, 2017. The purpose of the reverse
stock split was to enable us to meet the Nasdaq's minimum share price requirement. The reverse stock split became effective and
the common stock began trading on a split-adjusted basis on the Australian Securities Exchange at the opening of trading on May
8, 2017. This reduced the number of outstanding shares of our common stock from 79,301,852 shares on May 5, 2017, to 2,643,611
shares on May 8, 2017, after adjusting for fractional shares.  In July 2017, the Group set up a new wholly-owned
subsidiary - GOXD Technology Limited, incorporated in Hong Kong, for carrying out business activities on sales and distribution
of 2D/3D glasses-free 4K digital photo frames to corporate customers and household consumers. In addition, a cloud platform with
smart 2D to 3D photo conversion services, professional photographer contributed photo eShop, operating mobile APP and user upload
photo storage have also been developed to form a complete digital photo frame ecosystem.  On August 3, 2017 our shares of Common Stock
were admitted for listing on the Nasdaq Capital Markets under the symbol "IMTE".  On January 12, 2018, the Group entered into
the following agreements in connection with the issue of a HK$23 million (equivalent to approximately AU$3.8 million) Convertible
Bonds (the "Convertible Bonds"): (i) Subscription Agreement between Marvel Digital Limited, a wholly-owned subsidiary
of the Company (the "Issuer" or "MDL") and an independent third party entity ("Bondholder") for the
Convertible Bonds, (ii) Deed of Guarantee between the Company and the Bondholder to guarantee the payment obligations under the
Convertible Bonds and (iii) Put Option Deed between the Company and the Bondholder to repurchase any converted MDL Shares as described
below. On the same date, pursuant to the Subscription Agreement, the Convertible Bonds were issued by MDL to the Bondholder as
all the terms and conditions in respect of the Subscription of the Convertible Bonds were complied with and fulfilled.  Pursuant to the terms of the Convertible Bonds,
the Convertible Bonds are convertible in the circumstances set out therein into 75,000 ordinary shares of MDL ("MDL Shares")
at a conversion price of HK$306.67 per share, which is equivalent to 20% of the then enlarged issued share capital of MDL. The
Bondholder will have the right to convert the whole of their Convertible Bonds into ordinary shares of MDL at any time during the
period from January 3, 2018 to January 2, 2020. The period may be extended to a further 12 months subject to the mutual agreement
among MDL, Company and Bondholder. Unless previously redeemed or converted, the Convertible Bonds will be redeemed at 100% of their
principal amount on the Maturity Date.  On August 6, 2018, the Company's subsidiary
company, MDL, completed the Share Subscription Agreement where the investor subscribed for 5% of the enlarged issued share capital
of MDL for HKD15,000,000 (approximately A$2,573,000). Upon the issuance of shares in MDL, IMTE's shareholding in MDL was decreased
from 100% to 95%.  On August 8, 2018, the Company's subsidiary
company, GOXD Technology Limited ("GOXD") entered into an Equity Investment Agreement where the investor purchased 20%
of the enlarged issued share capital of GOXD for USD4,000,000 (approximately A$5,378,000). GOXD is a subsidiary of MDL. Upon the
issuance of shares in GOXD, MDL's shareholding in GOXD will be decreased from 100% to 80%.  On December 12, 2018 the shareholders of the
Company approved the settlement of A$8,000,000 debt owed to Marvel Finance Limited, the ultimate holding company, by the issuance
of 708,500 shares in the Company.  During the year 2018, the Company disposed
several subsidiaries including Yamaga Audio Limited, our audio operation and Marvel Digital (Shenzhen) Limited, our then Shenzhen
manufacturing operation.  In April 2019, the Company and Teko International
Limited ("Teko") entered into a distribution rights agreement for the territory of Hong Kong and Guangzhou Province,
China ("Territories") for a proprietary conductive film and 3rd generation Polymer Dispersed Liquid Crystal ("PDLC")
film. Pursuant to the Agreement, the Company shall pay 50,000 IMTE shares upon the commissioning of one (1) lamination line, (ii)
for each of the next 3 years after the commissioning of the manufacturing line, IMTE shall pay Teko 50,000 IMTE shares should the
annual revenue reach US$10 million or 100,000 IMTE shares should the revenue reach US$20 million, and (iii) 50,000 IMTE shares
for each additional lamination line installed. In addition, for managing the operations, the Company will pay to Teko 25% of the
net profits from the sale of the PDLC film products and the lamination operations. Mr. Con Unerkov and Mr. Cecil Ho, both the CEO
and CFO, respectively of IMTE, were then directors and shareholders of Teko.  On January 3, 2020, the Convertible Bonds with
MDL matured and then on January 21, 2020 the Company reached an agreement with Bondholder to repay HK$23million (equivalent to
approximately A$4.3million) of the Convertible Bonds on the following schedule: i) HK$13 million (or about A$2.4million) to be
paid on January 17, 2020 and ii) the remaining HK$10 million (or about A$1.9million) to be paid in equal installments over the
next four(4) months from Feb to May. Furthermore the interest rate is changed to 15% per annum on the outstanding amount from the
date of the maturity of the Convertible Bonds on January 3, 2020. As of the date of this Report, all the installments have been
fully repaid.  On January 20, 2020, the Company entered
into a Convertible Note Purchase Agreement with CIMB Limited ("the CN Agreement"), an independent third party.
Pursuant to CN Agreement, CIMB will purchase from the Company a 10% convertible promissory note ("the Note") in the
principal amount of HK$14 million (or about A$2.6million or about US$1.8million) maturing in two (2) years from the date of
the agreement. The holder of the Note has the right to convert the principal amount to shares in the Company at a fixed
conversion price of US$5.00 per share, subject to adjustment, over the term of the Note. On February 11, 2020, the Company
and the holder of the Note entered into a supplement agreement to the CN Agreement to limit the total number of ordinary
shares of the Company issuable upon conversion of the Note to no more than 19.99% of the total issued and outstanding
ordinary shares of the Company. The supplement agreement further provides that the conversion price shall, in no event, be
less than $1.50 per share, subject to regulatory or shareholder approval. As at the date of this Report, i) the Note is still
outstanding, ii) 15,578 shares will be issued for the payment of interests in the CN Agreement, and (iii) the fixed
conversion price has been adjusted to US$3.50 per share due to the exercise of the cashless Warrants and described below.  On February 20, 2020,
the "Company entered into a Securities Purchase Agreement for the sale of 158,730 ordinary shares of, no par value, of the
Company ("Ordinary Shares") and warrants ("Warrants") to purchase up to 126,984 ordinary shares ("Warrant
Shares") to an accredited investor ("Investor") at a price of US$6.30 per share (the "Cash Offering").
The Warrants will be exercisable for the period of 12 months from the date of issuance, at an exercise price of US$10.50 per Share.
The Cash Offering is for US$1 million and will generate a net cash proceeds of approximately US$920,000 after deducting estimated
expenses in connection with the offering. The Company intends to use the net cash proceeds for partially paying off debts to a
bondholder and general corporate purposes.  On May 12, 2020, the Company) issued 126,984
ordinary shares (the "Shares") as a result of the exercise of warrants (the "Warrants") which were issued to
an accredited investor as announced on Form 6-K on February 24, 2020. The Warrants were exercised by means of a cashless exercise
where each Warrant exercised would receive one Share without any cash payment to the Company as the VWAP of the Company's ordinary
shares on the trading day immediately prior to the exercise date was less than US$10.50 per Share.  In May 2020, the Company disposed its
research and development operations to independent third parties so that the Group could rationalize its operations and focus on
the marketing and sales of autostereoscopic 3D displays.    23    In summary, the Group's business activities
are the development, sale and distribution of autostereoscopic 3D display, 3D video wall, 3D conversion equipment and software
and provision of 3D consultancy services, and (ii) sale of switchable windows  Breakdown of total revenues by category
for the years ended December 31, 2019, 2018 and 2017:  ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018
A$
    
    December 31, 2017
A$Development, sales and distribution of 3D autostereoscopic products and conversion equipment
    
    1,273,921
    
    1,166,144
    
    4,365,364Sales of software and technology solutions
    
    1,504
    
    13,731
    
    1,180,491Sales and distribution of audio products
    
    -
    
    48,609
    
    54,251Provision of consultancy and other services
    
    -
    
    95,922
    
    162,605Interest income
    
    115,762
    
    21,409
    
    3,0921,391,187
    
    1,345,815
    
    5,765,803  Breakdown of total revenues by geographic market for the
years ended December 31, 2019, 2018 and 2017:  ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018
A$
    
    December 31, 2017
A$Australia
    
    -
    
    65
    
    62Hong Kong
    
    1,310,912
    
    346,954
    
    3,235,912China
    
    80,275
    
    998,796
    
    2,529,8291,391,187
    
    1,345,815
    
    5,765,803   24    B.
    
    Business Overview Integrated Media Technology Limited
is a technology investment, product development and distribution company.  As a development company, we require funding for
research and development into our stable of core technologies through acquisition, in-house development or in collaboration with
research institutes.  Our strategy was to profit from the sale of mature technologies after we have developed advance technology
that superseded the mature ones. We had set up three business units being: Technology Business Unit, Products and Services Business
Unit and Brand/Distribution Business Unit. All 3 business units are interdependent on the development and success of the others. For example, products development depends
on the success of the technology, and distribution is dependent on the products being developed. Therefore, the Group's resources
allocation is skewed towards technology development today. As a result the Group’s resource allocation was skewed toward
technology development in recent years. In 2019, it was a challenge for each of our
business units as we were undercapitalized and so much of the work planned was postponed or delayed until funding was secured. 
Furthermore, the difficulty for our subcontractors to resolve the manufacturing process further delayed the sales process. 
In early 2020, Covid 19 pandemic hit China and then spread to the rest of the world putting all business on hold for most of first
half of 2020 and possible much longer into rest of 2020 and into 2021. The economic outlook for retail business is uncertain as
the extent of the people’s behavior change to stay at home more and rely on pick-up and delivery services. This will
drastically affect our 3D advertising platform business.  In May 2020, as a cost cutting measure in
the uncertain times ahead, we divested from the research and development operation. Instead we will focus on the Products and
Services Business Unit and Brand/Distribution Business Unit. Most of the remaining development works will be outsourced with
defined budgets. For the moment, our main focus is in the sales of our 3D products and services. In the term, we may
have developments to our technologies provided that we can see a clear path to market.  The Company has started to recapitalize its equity base by selling US$1 million of its shares in February 2020. Furthermore,
the Company is working on increasing its shareholder’s equity to more than US$2.5 million so that it complies with Nasdaq’s
continual listing, requirement. The Company is seeking to increase its shareholders’ equity through debt conversion or
sale of new shares.  IMTE Products and Services  IMTE has both the hardware and software
technologies for products in everyday applications in the autostereoscopic display (ASD) technology domain. We specialize in providing
a range of products incorporating this ASD technology for a whole new visual experience. This is a disruptive technology affecting
how we will see contents in the future. IMTE has also developed technology for content creation and conversion through its "VisuMotion"
software and 2D/3D conversion super-workstation hardware. In other words, IMTE has developed a whole ecosystem of technology in
the ASD domain. The current products and services we offer are:  Hardware: ASD technology display, and
Marvel3DPro Super-workstation;  Software: "Visumotion" content
creation and conversion software; Content Management System and  Services: 2D to 3D content conversion
service and ASD solutions consulting services.   25    IMTE Hardware Products  ASD Technology Display Products  ASD hardware products are mainly display
terminals for presenting glasses-free 3D content which generally include ASD Video Wall, ASD digital signage, ASD PC Monitors,
ASD mobile phones and tablets.  ASD hardware products can be classified
into fixed lenticular hardware and switchable lenticular hardware based on the capability display panel. Switchable technology
can display 2D image without affecting its perceived resolution, but the technology is still immature and limited to small screen
size. The following table shows the current application of fixed and switchable technology on ASD hardware and the products which
IMT is supplying today.  Screen Size
    Fixed Technology
    Switchable Technology
    Application
    IMTE Products35"-100"
    Yes
    No
    Display and video wall
    28", 46", 50", 55", 65", 85"
        1x3, 3x3, 4x3 configuration25"-34"
    Yes
    No
    PC monitor
    27", 28"15"-24"
    No
    Yes
    Laptop
    N/A7"-14"
    Yes
    Yes
    Tablet
    7", 10"5"-6"
    Yes
    Yes
    Phone
    6"  Autostereoscopic Display Solution  We provide a full series of ASD digital
signage displays with very high quality 3D image. We can provide the following 3D Displays:  i)
    A wide range of Glasses-Free 3D displays in ultra-high definition ranging from 27" to 85";ii)
    Outdoor Glasses-Free 3D digital signage which are waterproof and visible under sunlight making them suitable for use at bus-stops, stadiums and street store-fronts;iii)
    Indoor Glasses-Free 3D digital signage offer high-brightness making it suitable for use in shopping malls, hotels and casinos;iv)
    Indoor Glasses-Free 3D video wall using super thin bezel panels. Total resolution can be up to 8K with outstanding Glasses-Free 3D effect; andv)
    Glasses-Free 3D mobile phones and tables ranging from 5" to 10" using switchable parallax barrier display, allowing users to enjoy high resolution image in normal 2D application as well as watching 3D video and playing 3D games in 3D mode.  picture
    
    picture   26    ASD Video Wall  IMTE has developed Glasses-Free 3D video wall
comprising 3, 4, 9, 12 or 16 units of ASD displays.  picture3x3 Screen video wall Point of Sales Machine (“POS”)  picture  Glasses-Free 3D Mobile Device Solutions We have developed switchable 2D/3D mobile
device solutions based on the Android platform. The device can be used as an ordinary Android device such as mobile phone or tablet
and it can be switched automatically from 2D mode to glasses-free 3D mode when the user plays 3D video content or 3D video game.  picture
    
    picture Content Management System IMTE provides a proprietary 2D/3D content
management and distribution system ("CMS") to complement our 3D digital signage products to create a networked advertising
platform. This CMS can be sold as a standalone product or together with a network of 2D or 3D displays.   27    3D Super Workstation IMTE has developed auto real-time
conversion technology from 2D to 2D+Depth, 3D side-by-side and glasses–free 3D multi-view mode. This conversion technology
is embedded in our 3D super workstation (Marvel3DPro). This 3D super workstation will be used for content conversion for 2D videos
to 3D mode for the TV and movie industry.  picture
    
    picture3D Workstation Studio
    
    3D Workstation Servers   IMTE Software Products  Software - VisuMotion VisuMotion is a set of renowned professional
software designed for 2D to 3D conversion as well as advanced 3D content creation. This software can be a standalone product or
complementary to Marvel3DPro Workstation. It is a user-friendly software which allows users to easily create quality 3D images
and videos from using the software and plugins. The software is not only catered for commercial usage by the professionals in content
design and production, but also particularly useful for design institutes and schools for student training on 2D to 3D conversion
and 3D content creation. We have enhanced the VisuMotion's functions and features so that the software can be more widely used
by the educational and professional sector. The software and plug-ins we offer are as follows.   VisuMotion z.l.i.c.e 3D V3.0 is a
        professional video editing and compositing application especially designed for multi-view 3D footage. The software features 2D
        to 3D conversion, complete 2D+Depth workflow including declipse, import/export of native stereo view arrangements and file formats
        like StereoEXR (SXR) and MXF, shape/line functions and mathematical image functions. The application can perform real-time compositing
        and editing and preview on attached 3D device. Built-in graph filters allow flexible workflow set up with configuration nodes.
        VisuMotion 3D Stereo Camera
        Plug-ins – This is a plug-in that enhances the 3D animation packages Autodesk 3D Studio Max and Maya by mature stereo rendering
        capabilities. This plug-in features 3D planes concept, simple control of stereo effect, real-time 3D preview on secondary 3D displays,
        rendering of multiple views, support all standard file formats and rendering of 2D + depth file format, including occlusion layers.
        VisuMotion Stereo Tools for
        z.l.i.c.e. 3D - This is a plug-in collection of special nodes and a powerful tool to convert two-view stereo footage into multi-view
        content for usage with glasses-free display. This plug-in features a high resolution support up to 4K resolution, selectable color
        space (RGB & YUV), flicker mode with speed value for view comparison inter exploration up to 32 views and camera rectification
        through calibration pattern footage.
    
    picturepicture   28    IMTE Delivers Total Service  IMTE provides total solution to our customers.
IMTE has all the technology solutions that is needed to support the entire ASD ecosystem. We have 2D/3D video conversion technology
for converting 2D or conventional 3D (SBS) video to ASD format, either in real time or in high quality offline mode. We have also
developed content management system to deliver ASD content to our displays to form glasses free 3D digital signage networks. IMTE
also developed a series of ASD displays and video walls with superb video quality. In the consumer level, IMTE provides 3D mobile
phones and tablets. In the future and with the core technology that IMTE has developed, we can provide new innovative ASD products
so long as there are needs for the market and we try our best to be the first to provide such products and services. This underlines
the value of IMTE as a technology and product innovation company.  Future Developments  The focus of the Group is to continue to develop
its digital media / advertising in various platforms such as in glasses-free 3D (autostereoscopic) displays (ASD). We are building
technologies around ASD including ASD display, 3D digital content management system and 2D to 3D content conversion system. We
are seeking more display media that can enhance the viewing experience in advertising besides digital signage and video wall.  Due to recent losses incurred in operations
and in order to reduce the overhead and expenses of the Group, in May 2020 we have divested from the research and development operation,
other than some R&D relating to our consumer products division. Our strategy is to outsource the development to third parties
of our technologies and patents. This will ensure that we can cap the costs of development and off load the risk and share the
benefits. This will enable the Group to reduce its overhead costs and focus on sales and marketing of ASD products.  Our main business focus in the coming years
is to focus on our products and solutions for sale. We have an array of 3D products that are available. However the sales plan
has been delayed due to certain problems encountered in the manufacturing process and we expected the manufacturers can resolved
in later part of 2020 provided that the restriction in trade and movement as a result of the pandemic is relaxed.  Our focus on sales will be in a Point of Sales
(“POS”) 3D Terminal which we have sales of 5,000 units anticipated for completion in the third quarter of 2020. This
is an application of 3D display directly to consumers. We will focus our sales on this special segment of the market in addition
to the sale of our traditional 55” to 65” 3D displays IMTE will continue to position itself
as a technology investment company focusing on acquisition of technology related companies or projects that will broaden our revenue
base and have synergy with our existing business. The future business plans depend on adequate capital being available to the Group.
The Company will be reviewing potential acquisitions that can add value to the Group. Management will also seek synergistic acquisitions
to build revenue and bring in resources to complement and to supplement our internal capabilities to become a well-managed and
fast-growing technology company.   29    Analysis of Auto Stereoscopic Display (ASD)
technology market – the ASD ecosystem  3D displays exhibit images with depth perception
by using various technologies such as stereoscopic, multi-view, and 2D-plus-depth display. Currently, these popular 3D displays
need to be viewed with special 3D glasses in order to experience depth perception. 3D displays are used in numerous devices such
as 3D TVs, mobile handsets, tablets, gaming devices, and head mount devices ("HMDs").  Since the commercialization of 3D displays,
TV service providers, advertising agencies, and broadcasters have been focusing on airing more 3D content and displaying advertisements
on 3D billboards. As a result, 3D technology has evolved as one of the fastest growing display formats worldwide. Although the
global 3D display market is still in its early phase, the increasing popularity of 3D display is expected to lead to unprecedented
growth during the forecast period. The increased penetration of high-bandwidth internet is another major driver in this market.  The increased adoption of 3D displays in the
advertisement sector is a major trend witnessed in the market. To increase customer engagement, vendors in the advertising sector
are adopting autostereoscopic displays that enable the 3D effect without requiring the viewer to wear 3D glasses. Extensive use
of 3D projection and display in the healthcare sector is another major trend being witnessed in the market.  ASD technology is a disrupting technology as
it brings in better viewing experience in 3D mode without the need for special glasses. This technology can be integrated into
any products that uses LCD display panels. As most of the product displays use LCD panels, ASD technology will potentially replace
all products that incorporate LCD panels when ASD technology achieves broad acceptance and competitive pricing. In addition to
the current 3D display market that ASD technology can capture, there are new applications that ASD technology (3D without glasses)
can enhance our lifestyle and productivity in the digital informative society we live in. New applications will be created by tapping
into scenarios like 3D without glasses in education, entertainment, architecture, and medical industries. We are seeing some of
these new applications in the education classrooms and in surgical instruments in the operating room. The market potential for
ASD products and solutions is equal to society demand for 3D imagery in every digital display.  In order that ASD technology to be adopted
by the consumers, there need to be enough 3D content available for ASD technology adopter to consume. The buildup of an ASD ecosystem
that includes a variety of ASD products and services together with plentiful ASD content will enable the technology to be adopted
in the new market. The sections below will explain different technology needed to build this ASD ecosystem.  Technology overview  Auto Stereoscopy is any method of displaying
stereoscopic images (adding binocular perception of 3D depth) without the use of special headgear or glasses on the part of the
viewer. Because headgear is not required, it is also called "glasses-free 3D" or "glasses less 3D". There are
two broad approaches currently used to accommodate motion parallax and wider viewing angles: eye-tracking, and multiple views so
that the display does not need to sense where the viewer's eyes are located.  There are 3 main autostereoscopic displays
technologies, including parallax barrier, lenticular lens and directional backlight displays, used to create images on ASD.   30    ASD Technology Analysis  1) Parallax Barrier  This method is widely used in modern 3D
liquid crystal displays. Parallax barrier is a special device with a series of precision slits that is placed in front
of the LCD, serving as a filter for output image perception. The slits allow left and right eye to see their corresponding image,
which is produced by a different set of pixels. That is how the illusion of 3D vision is created by parallax barriers. To have
a clearer understanding of this method see the image in Diagram 4.1. The examples of parallax barrier employed in consumer
products are Nintendo 3DS game console, HTC EVO 3D and LG Optimus 3D smartphones. Also used in Range Rover's navigation system,
the parallax method allows both the driver to view GPS directions and a passenger to watch movies from the same display simultaneously.  However, the parallax method is not perfect,
because it has some disadvantages. First one is that in order to experience stereoscopic 3D effect the viewer must be positioned
at a certain angle to the display. That is actually not a big problem for video game consoles or smartphones, but not good when
it comes to 3D TV sets, laptops etc. Another disadvantage is that the count of horizontal pixels that work to create a different
image for each eye is reduced to one half. Another drawback for mobile devices is the barrier will block a certain percentage of
light going through it. In order not to keep the display the same brightness, more energy is needed to power the backlight which
will decrease the battery power of the device.  2) Lenticular Lens  The second mostly used method of glasses
free 3D is lenticular lens technique. In general, the lenticular method is based on the use of magnifying
lenses. Those lenses are set in arrays to produce slightly different images when viewed from different angles.  They are also constructed in such way that
when you see the image from one angle and then move to another angle the image changes as well and even moves (see Diagram in 4.1).  3) Directional Backlight  Multi-directional diffractive backlight technology
permits the rendering of high-resolution and full-parallax 3D images in a very wide view zone (up to 180 degrees in theory at an
observation distance of up to a meter). Pixels associated with different views or colors are spatially multiplexed and can be independently
addressed and modulated at video rate with an external shutter plane. The key factor is that the guided wave illumination technique
must be based on light-emitting diodes that produce wide angel multi-view images in color from a thin planar transparent light
guide. Directional backlight technology is still on the way of developing and not available for mass production.  Diagram 4.1 – Different types of technologies to create ASD
images   picture
    
    picture
    
    pictureParallax Barrier
    
    Lenticular Lens
    
    Directional Backlight    31    ASD Software  ASD software generally refers to a series of
programs applied in converting 2D/3D to ASD content. Typically, for mobile phones or tablets, such programs may include applications
from the app store to convert the 2D/3D content into ASD content. For ASD game consoles, there are default programs equipped inside
to realize 3D effects. Converting 2D/3D to ASD mode can be done in either real time conversion or offline conversion. Real time
conversion involves hardware acceleration and is done using dedicated computer hardware such as FPGA (field programmable gate array)
or ASIC chip. This needs advance development work that few companies have the resources to tap into this development level. The
offline conversion uses dedicated computer program to do the conversion. We have developed VISUMOTION which is a software program
for 2D/3D to ASD content. On the other hand, a number of dedicated real time conversion solution based on FPGA hardware have been
developed in the past two years. We have developed an ASIC chip for such conversion purpose and we consider this ASD conversion
technology has formed the base technology for the Company to stay at the technology forefront.  ASD Content  ASD content refers to the photos, games, animations
and other video content, which can be played in ASD hardware terminals and perceive depth by naked eyes without
any viewing aids.  Currently the mainstream to create ASD content
is the conversion from 2D or 3D/SBS content. With the continuous development of technology, it is believed that the ASD content could be
directly generated in the near future.  Services  ASD technology has a high technology entry
barrier for new players. Currently, ASD technology B2B service including consulting service, which aims to provide customized and
integrated ASD solutions based on the need from clients; and technology support, which aims to help clients to fix the technical
problems. Content conversion service can also be established. For example, in the digital advertising sector, almost all advertising
content is in 2D mode. In order to display in the ASD digital signage, the 2D video has to be converted to 3D or ASD mode. In the
future, one-stop ASD solution service throughout the process from consulting to post-maintenance tends to become the trend.  Technology Analysis of 2D/3D Switchable Display Technology  Fixed lenticular technology is a prevailing
technology used by most ASD displays. However, fixed lenticular has a big drawback as it does not perform well in display 2D content,
especially the display of text. For mobile devices such as smart phones, users spend a lot of time in surfing the Net. Fixed lenticular
display provides a bad viewing experience in displaying text. Despite the additional cost of deploying switchable display technology,
mobile phones will adopt 2D/3D switchable display.  Parallax barrier and lenticular lens are core
methods to achieve switchable technology between 2D and 3D. Currently, parallax barrier is more commonly available in market due
to the simple application and lower costs. Meanwhile, application of lenticular lens is considered as advanced switchable technology
with better visual effect and such technology is still under development.  Switchable technology with parallax barrier
is considered as an easy and low cost option, but the main drawback is reduced brightness of display, hence the method is battery
consuming especially for some consumer electronics such as smartphones to maintain the normal brightness to viewers.  Lenticular lens are generally regarded as ultimate
technology in switchable 2D/3D display. Compared with parallax barrier, switchable lenticular lens allows the display of 2D image
with original resolution and switching to 3D image with equal brightness.  We have developed our ASD mobile phone using
switchable parallax barrier technology. The mobile phone has a well balance design which presents a very good 3D image effect,
while still keeping the cost of the product in an acceptable level. We believe we are one of the few companies that can develop
such ASD mobile phone with outstanding image quality. There are a few ASD mobile producers in the market which are using fixed
lenticular technology. Fixed lenticular display has a big drawback. It is not a good experience when viewing text, especially for
surfing the net in a small screen. With switchable technology, the mobile phone will just act like an ordinary 2D mobile phone
when the ASD function is switched off. When it comes to playing 3D video or 3D games, the 3D mode will be switched on automatically.
However, we have a new method of designing fixed lenticular lens that can have little impact on viewing 2D mode on mobile device. We have only complated the testing of this new design method. We are now pushing it out to the consumer market as mobile protection screen with lenticular function. This may be a big market as mobile protection screens are sold in huge volume.   32    Market and Industry Analysis  3D Display Market  Currently, the 3D display market is in its
early stage. Most of the 3D-enabled electronic devices require 3D glasses to experience the 3D effect. The usage of these 3D glasses
is limiting the adoption of 3D displays as the glasses are uncomfortable to wear. For instance, wearing 3D glasses for a long period
sometimes causes headache or eyestrain. Therefore, to eliminate the use of glasses, vendors in 3D display market are focusing on
adopting autostereoscopic technology, which delivers the 3D effect to the naked eye.  However, autostereoscopic technology currently
has limitations because of its high cost and image quality. Therefore, the potential commercialization of this technology will
be seen in the near future as the vendors in the 3D display market are focusing on developing ideal 3D displays using autostereoscopic
technology.  Market size by revenue  The global 3D display market size is expected
to reach USD204.16 billion by 2025 (Source: Grand View Research Inc) exhibiting a CAGR of 19.4% during the forecast period from
2017 to 2025. The market is growing at an impressive rate because of the increasing popularity of 3D technology. Some Hollywood
movies such as The Lego Movie and Captain America: The Winter Soldier have been featured in 3D format and this is indicative of
the popularity of this format. The market is also witness increased adoption of 3D displays in the advertisement sector. The increased
popularity of 3D technology has stimulated advertising agencies to exhibit 3D content on billboards and feature 3D advertisement
films  The significant increase in the growth rate
of the global 3D display market is attributed to the increased penetration of 3D TVs and the popularity of 3D technology. The increase
in 3D content are expected to contribute to the growth of the global 3D display market.  Advancements in 3D display technology, along
with the improved visual experience, picture clarity, superior performance, and high resolution of 3D display (8K resolution) have led to their
increased adoption in numerous markets, industries, and applications. These benefits/features of 3D displays are expected to contribute
to the growth of the global 3D display market.  Market Segmentation by Application  Global 3D display market is segmented as follows: •   TVs •   Smartphones •   Others -
include tablets, portable gaming devices, monitors and HMDs.  The majority of the revenue in the global 3D
display market was generated from the 3D TVs segment in 2014. This was followed by the smartphones segment, wherein the penetration
of 3D displays in smartphones is expected to rise significantly in the coming years. The others segment, which includes applications
such as tablets, portable gaming devices, and HMDs will contribute significantly to the growth of the global 3D display market.  Consumers are adopting 3D technology at a significant
pace because of the increasing popularity of 3D technology and the increasing 3D content worldwide. Moreover, numerous Hollywood
movies such as Godzilla, 300, Rise of an Empire and animated movies such as Lego and How to Train Your Dragon are featuring 3D
technology. As a result of this consumers are more drawn to the 3D visual experience, and hence the demand for 3D TVs is increasing.
Therefore, the demand for 3D displays form the 3D TVs segment is increasing significantly. Moreover, with the advent of autostereoscopic
technology, the 3D TVs segment will flourish as it eliminates the usage of glasses for 3D content.  However, there are challenges in the market
with regards to the picture clarity when viewed from different angles in a TV. As a result, 3D display manufacturers are focusing
on eliminating such technical challenges, to deliver superior customer satisfaction. Portable devices such as gaming devices, smartphones,
and tablets will adopt 3D technology at a greater pace because consumers can adjust the eye angle accordingly as these are handheld
devices.  The 3D advertising space and 3D gaming is gaining
traction in the market, which will contribute significantly to the growth of the global 3D display market.  Trends in ASD Market  The three developing trends for autostereoscopic
display market are i) expanding application fields, ii) higher level of interactivity and iii) standardization of the industry.  Expanding Application Fields The application of ASD is still in the exploratory
stage. For now, the application field mainly include gaming & entertainment, advertising, education and medical fields. In
the future, ASD is estimated to further expand its application in existing fields and explore new land in architecture, military
and other industries. With ASD technology getting more mature, manufacturing and e-commerce are also likely to join the downstream
of ASD industry. Therefore, ASD industry is estimated to embrace a great surge in the future.  Enhance interactivity Limited by the technology, content and presentation
form of the current ASD, the audience has no choice but to play a passive role to accept the video information. However, in the
long term R&D will lay more emphasis on humanization design and better user experience, and consumers are expected to raise
higher requirements on the maneuverability of ASD products. As a result, higher interactivity tends to become a new focus for product
development in ASD market.  Standardization of Industry The ASD industry is typically of an emerging
technology where there is a lack of uniform product standard. There needs to be a push towards a unified ASD industry standard
such as input and output interface standard, media coding and encoding protocol, etc. Once the standards have been established
then the industry can move quickly to bring this technology to the masses. Through our affiliate, we are now working the unified
ASD industrial standard in China with the State Administration of Radio, Film and Television of the People's Republic of China
(SARFT).  Competitors  The market for glasses-free 3D technology is
still in its early stage, and there are very few competitors worldwide. Nonetheless, there are many established and early stage
companies that address the 3D display market in one way or another, including makers of 3D televisions and mobile phones, such
as Panasonic Corporation, Samsung Electronics Corporation, Ltd. and Sony Corporation. For the most part, these companies
do not market 3D autostereoscopic products, and thus do not compete directly with the products and services we seek to market.
However, at this time, we consider them to be competitors generally in the effort to market stereoscopic display (with glasses)
solutions to end user businesses. They have different markets apart from this new autostereoscopic (glasses-free) 3D market. Philips
is the pioneer in autostereoscopic technology. However, Philips does not produce or sell autostereoscopic 3D products for many
years. Other companies operating in this domain such as Magnetic 3D, Alioscopy, and Dimenco have started operations earlier than
us. They do have similar technology that we have, but we believe they do not have the cost advantage that we have. We have strategically
well positioned our base operation in Hong Kong and China where we believe we have cost effective outsourcing manufacturing strategy.
In addition, we are a public listed company on NASDAQ such that we can have a better position to raise capital for our product
development.   33    Market Challenges  Some of the major challenges faced by the vendors
in the market are as follows:  •
  Lack of interoperability among stakeholders •
  Lack of standardization of 3D displays •
  Increased selling price of 3D displays •
  Limitations of autostereoscopic 3D display technology  Lack of interoperability among stakeholders The adoption of 3D flat panel TVs plays a significant
role in the growth of this market as it accounts for more than 80% of the overall demand for 3D displays. The adoption of these
3D flat panel displays depends on the availability of 3D video content. The more 3D content available, the higher the adoption
rate of 3D TVs. However, the lack of interoperability among the players present in the 3D content delivery value chain works against
an increase in 3D video content. These players include content owners, flat panel manufactures, satellite operators, and platform
operators.  Lack of standardization of 3D displays 3D displays have been commercialized recently
and their development is still in an early stage; hence, 3D display technology is yet to be standardized. The lack of standards
has reduced the adoption rate of 3D displays among consumers. Standardization is essential to avoid confusion among potential buyers
and to avoid burdening them with too many options. It is also essential for smooth interoperability among players in the value
chain.  Increased Selling Price of 3D displays The market is expected to witness an increased
in the selling price of 3D displays because of the increased cost of raw materials and development. An increase in selling price
would transfer the cost pressure to consumers. Another factor behind the increased in the selling price is the high cost of producing
autostereoscopic 3D displays as the mass production process has not been established.  Limitations of autostereoscopic 3D display
technology All 3D technologies, except autostereoscopic
technology, require glasses to experience the 3D projection. But autostereoscopic technology is expensive and difficult to be integrated
with large-sized displays. The technology also has technical limitations pertaining to the viewing angle. It can also lead to visual
fatigue, though this is only for those lower quality ASD display suppliers, when the user is viewing the display for long periods
of time. Due to some of these limitations, the cost of autostereoscopic displays is expected to remain high, which will result
in slow rate of adoption.  Market traction  The revenue generation of the global 3D display
market is rising because of the increase in 3D content worldwide. The increasing popularity of 3D technology among end-consumers
and the rise in the launch of 3D Hollywood movies are the major factors driving the demand for 3D enabled devices. Currently, the
enhanced user experience through 3D technology is driving the market. The 3D display market is dominated by 3D TVs, and other application
areas such as smartphones, tablets, and HMDs will take off in future as 3D because mainstream format.  With the increase in the number of gamers worldwide,
3D enabled gaming consoles are gaining market traction. The unique gaming experience created through these displays is engaging
users. As traditional advertising has almost reached saturation, companies are focusing on 3D display billboards to enhance their
respective customer bases. Healthcare is another booming sector, wherein doctors use 3D displays to better analyze 3D images.  Market attractiveness  The industry is influenced by many factors
that either drive or curtail market growth. An increase in 3D content, rapid advances in technology, and the increased adoption
of 3D displays in the advertising and healthcare sector are some of the significant trends fueling market growth.  Rapid advances in technology have prompted
OEMs to upgrade their systems. But this has added to the costs for vendors. Moreover, with the emergence of autostereoscopic technology,
vendors in the global 3D display market are focusing on eliminating the limitations associated with this technology, as autostereoscopic
technology enables a user to see 3D visuals without the use of glasses.  Competition among vendors is expected to increase
because of increased demand for mobile devices such as smartphones and tablets in both developing and developed regions. Most vendors
are adopting new technologies to match global standards. 3D displays are penetrating numerous markets such as that of smartphones,
tablets, gaming devices, monitors, HMDs, healthcare, and advertising. The use of 3D displays in HMDs, in particular, will find
increased acceptance because of the enhanced visual experience it offers.  34    Sourcing and Manufacturing We will subcontract the production of
our hardware products to third party subcontract manufacturers. Such manufacturers produce these products using OEM parts under
specifications and licenses granted, as necessary, by our Company. This would reduce the capital requirements to maintain and support
a manufacturing infrastructure. Marketing, Distribution and Sales For our ASD products we have established
distributors in major cities in China. We are also in the process of building our own brand for our ASD which we intend to launch
when we have the necessary resources available. Sources and Availability of Raw Materials and Principal
Suppliers For our ASD products we rely on certain
critical components in the market place. Our principal suppliers are supplying us with LCD panels and computer hardware. Inventory, Operating Capital and Seasonality Our inventory levels are expected to
be modest relative to our sales. Our policy is to manufacture to order. Thus we would not expect to keep much inventory other than
key components unless under extraneous circumstances such as material shortage or expected prolonged manufacturing interruption
i.e. labor strike. We will monitor our operating capital
to meet our obligations as they come due. We monitor our operating budgets in view of our operating cash flow requirements. We do not expect any seasonality to our
business other than normally expected in the consumer electronics business where there is a general let down in the first quarter
of each year after the Christmas season. Dependence on Major Customers In 2019, our major sales were to a few
customers. Our strategy is to appoint distributors to sell our products and services, and we will maintain a small sales and marketing
team in order to keep our operating costs low. Each of these distributors will have their own major customers, but consider as
a whole, we are not dependent on only a few specific customers in order to derive sales as we build up our distributor network
and customer base.   35    Research and Developments  We have outsourced basic research to local
universities and research institutes on research and development of advanced technology in 3D imaging. The research outcome from
these research entities will be either owned by us or under exclusive or non-exclusive licenses to us. In the past, we maintain
our own development team to further develop products and solutions which we foresee to have potential markets. This kind of two-step
development will be best suited for small to medium size technology companies in order to keep a balance in the R&D budget.
However, due to recent losses and the uncertainty of the COVID 19, in May 2020, we have divested from any internal R&D. Intellectual Property Pivotal to the development and commercialization
of our ASD products is intellectual property protection for the underlying technology and the product candidates. The licenses
we hold are further described under "Patent Portfolio" below. In addition to patent protection, we
rely on unpatented trade secrets, know-how and other confidential information as well as proprietary technological innovation and
expertise that are protected in part by confidentiality and invention assignment agreements with our employees, advisors and consultants. Patent matters in electronics industry
are highly uncertain and involve complex legal and factual questions. The availability and breadth of claims allowed in electronics
patents cannot be predicted. Statutory differences in patentable subject matter may limit the protection IMTE can obtain on some
or all of its licensed inventions or prevent us from obtaining patent protection either of which could harm our business, financial
condition and results of operations. Since patent applications are not published until at least 18 months from their first filing
date and the publication of discoveries in the scientific literature often lags behind actual discoveries, we cannot be certain
that we, or any of our licensors, were the first creator of inventions covered by pending patent applications, or that we or our
licensors, were the first to file patent applications for such inventions. Additionally, the grant and enforceability of a patent
is dependent on a number of factors that may vary between jurisdictions. These factors may include the novelty of the invention,
the requirement that the invention not be obvious in the light of prior art (including prior use or publication of the invention),
the utility of the invention, and the extent to which the patent clearly describes the best method of working the invention. In
short, this means that claims granted in various territories may vary and thereby influence commercial outcomes. While we intend to seek patent protection
for our 3D products and technologies, we cannot be certain that any of the pending or future patent applications filed by the Company,
or licensed to us, will be approved, or that IMTE will develop additional proprietary products or processes that are patentable
or that we will be able to license any other patentable products or processes. IMTE cannot be certain that others will not independently
develop similar products or processes, duplicate any of the products or processes developed or being developed by the Company or
licensed to us, or design around the patents owned or licensed by us, or that any patents owned or licensed by us will provide
us with competitive advantages. Furthermore, we cannot be certain that
patents held by third parties will not prevent the commercialization of products incorporating the technology developed by us or
licensed to us, or that third parties will not challenge or seek to narrow, invalidate or circumvent any of the issued, pending
or future patents owned or licensed by us. Our commercial success will also depend,
in part, on our ability to avoid infringement of patents issued to others. If a court determines that we were infringing any third
party patents, we could be required to pay damages, alter our products or processes, obtain licenses or cease certain activities.
We cannot be certain that the licenses required under patents held by third parties would be made available on terms acceptable
to us or at all. To the extent that we are unable to obtain such licenses, we could be foreclosed from the development, export,
manufacture or commercialization of the product requiring such license or encounter delays in product introductions while we attempt
to design around such patents, and any of these circumstances could have a material adverse effect on our business, financial condition
and results of operations. We may have to resort to litigation to enforce any patents issued or licensed to us or to determine
the scope and validity of third party proprietary rights. Such litigation could result in substantial costs and diversion of effort
by us. We may have to participate in opposition proceedings before the relevant patent office, or in interference proceedings declared
by the United States Patent and Trademark Office, to determine the priority of invention for patent applications filed by competitors.
Any such litigation interference or opposition proceeding, regardless of outcome, could be expensive and time consuming, and adverse
determinations in any such proceedings could prevent us from developing, manufacturing or commercializing our products and could
have a material adverse effect on our business, financial condition and results of operations.   36    Patent Portfolio  The following table presents our portfolio of patents and patent
applications, including their status (as at December 31 2019) and a brief description of their respective inventions.  Patent Owner
    Title
    Patent No.
        /Application No.
    Status
    ExpiresVisumotion International Limited
        (A wholly owned subsidiary of MDL)
    (i) Method for processing a spatial image
    EP 2172032
    Granted in Germany
    June 2028EP 2172032
    Granted in FranceEP 2172032
    Granted in U.K.4988042
    Granted in JapanUS 8,817,013
    Granted in U.S.(ii) Method for stereoscopic illustration
    2010 80019861.4
    Granted in China
    May 2030US 8,797,383
    Granted in U.S.102010028668
    Granted in Germany(iii) Glasses-free 3D display device
    1252602 A
    Granted in HK
    Nov 2026Independent party  Versitech Limited (A subsidiary of the University of Hong Kong)
    (i) Method and System for Global Motion Estimation and Compensation
    US 10,453,207 B2
    These patent rights in relation to 3D video encoding and transmission will be assigned by the owner to Marvel Digital Limited in the event of either (1) IPO of MDL shares or (2) the 3D video technologies covered by the Patent Rights is approved by PRC authority as an industry standard.
    Oct 2036(ii) Auxiliary Data for ArtifactsAware View Synthesis
    US 10,404,961 B2
    Nov 2036(iii) A depth discontinuitybased method for efficient intra coding for depth videos
    US15/748,532
    N/A(iv) A multioverlay variable support and order kernelbased representation for image deformation and view synthesis
    US15/748,503
    N/A(v) Auxiliary Data for Artifacts Aware View Synthesis (US)
    62/285,825
    N/A(vi) Auxiliary Data for Artifacts Aware View Synthesis (PCT)
    PCT/CN2016/104887
    N/AJP2018523453A
    N/A201680078156.9
    N/A(vii) Shapeadaptive modelbased codec for loss and lossless compression of binary images
    62/300,502
    N/AKR1020187027805A
    N/A201780013263.8
    N/AEP17755817.8
    N/AJP2018544483A
    N/AUS15/441,530
    N/A   37    Patent Owner
    Title
    Patent No.
        /Application No.
    Status
    ExpiresMarvel Digital (Shenzhen) Limited (A wholly owned subsidiary of MDL)
    Method and apparatus for Chroma interpolation of video image
    200710070313.4
    Granted in China
    July 2027A Universal Stereo Image Synthesis Method Based on Lenticular Lens for LCD Stereoscopic Display
    200810062513.X
    June 2028A Method of Virtual View Synthesis Based on Depth and Occlusion Information
    200810062811.9
    July 2028A Methodof Layered B Predictive Structural Arrangement with High Compressibility
    200910155883.2
    December 2029A Method for Expressing 3D Scene and its TV System
    201010039540.2
    January 2030A Virtual View Method Based on Video Sequence Background Modeling
    201010039539.X
    January 2030A Depth Representation Method Based
on Optical Flow and Image Segmentation
    201010101197.X
    January 2030Extraction method of occlusion information in stereoscopic image pairing
    201010141105.0
    April 2030A Method of Generating Virtual Multiview Images Based on Depth Graph Layered
    201010228696.5
    July 2030A 3D Augmented Reality Method for Multiview Stereoscopic Display
    201110412061.5
    December 2031Depth image postprocessing methods
    201110460155.X
    December 2031Pre-mimo channel smart antenna apparatus and radio transmitting method for transmitting signals
    201310223518.7
    Jun 2033Pre-mimo channel wireless transmission apparatus and method for transmitting signals
    201310102976.5
    Mar 2033Genetic optimization method for space-time channel MIMO wireless transmission system
    201610298478.6
    Sept 2036LCD display
    201821476907.5
    Aug 2029A kind of cooling system of outdoor highlight screen
    201821423429.1
    Aug 2029A kind of open air mosaic screen
    201821423427-2
    Apr 2029A Method of Extracting Hierarchical Image for 3D TV
    200810062810.4
    July 2028A Multichannel Video Stream Coding Method Based on Depth Information
    200810062864.0
    July 2028Multichannel Video Stream Encoder and Decoder Based on Depth Image Rendering
    200810062865.5
    July 2028A Method of converting 2D video to 3D video in 3D TV system
    200910102114.6
    August 2029A Depth Extraction Method of Fusing Motion Information and Geometric Information
    200910102153.6
    August 2029GOXD Technology Limited
    Digital Photo Frame Device and Control Method thereof
    18103421.3
    Granted in HK
    Mar 2026201710744716.6
    Granted in China
    N/ADigital photo frame
    1701272.5
    Granted in HK
    Jun 2022228398846
    Granted in China
    Aug 2027Marvel Digital Limited
    Method for Enhancing Video Resolution and Video Quality, Encoder and Decoder
    16103565.1
    Granted in Hong Kong
    October 2023A Method, Apparatus and Device for Acquiring a Spatial Audio Directional vector
    16103566.0
    Granted in Hong Kong
    October 2023201610566911.X
    Granted in China
    N/A15/216,726
    Granted in U.S.
    N/A105134696
    Granted in Taiwan
    N/AA Lens For Extended Light Source and Design Method Therefor
    16106705.5
    Granted in HK
    Jun-2023201710427469.7
    Granted in China
    N/APCT/CN2017/087396
    Granted in PCT
    N/AA Method and a System for generating depth information associated with an image
    16111725.1
    Granted in HK
    N/AUS15/404,461
    Granted in U.S.
    Mar 2037Method For Improving the Quality Of 2D-to-3D Automatic Conversion By Using Machine Learning
    16111899.1
    Granted in HK
    Oct-2023PCT/CN2017/106019
    Granted in PCT
    N/AComputer
    1601506.3
    Granted in HK
    Aug-2041CN201630079168.6
    Granted in CN
    Mar-202629/574,856
    Granted in U.S.
    N/A   38    Material Contracts Related to Intellectual Property and Commercialization
Rights License Agreement with Versitech Limited  In September 2015, Versitech Limited
("Versitech") and Marvel Digital Limited ("MDL") entered into a License Agreement in respect to the sharing
of income arising from the intellectual property rights in the video encoding and transmission worldwide. The agreement provides
MDL and its affiliates for the term an exclusive and royalty-bearing license under the patent rights owned by Versitech listed
in the previous table above, to develop, make, have made, use, sell, offer to sell, lease, import, export or otherwise dispose
of licensed product in 3D video encoding and transmission worldwide and with the right to grant sublicense pursuant to the terms
of the agreement. MDL shall pay an upfront payment in the amount of HK$100,000 and a running royalties of 3% of net sales (“3%
Royalty”) on licensed product and licensed process by MDL and its affiliates and sublicensee. MDL shall also pay Versitech
a total of 15% of all sublicense income received by MDL or any of its affiliates. In addition, there are milestone payments payable
to Versitech Limited upon the event when cumulative gross revenue arising from the licensed products reaching certain levels with
the maximum cumulative total milestone payments of HK$2,000,000. This project was originally derived from an earlier agreement
entered into among the Government of the Hong Kong Special Administrative Region, MDL and the University of Hong Kong ("HKU")
under the Innovation and Technology Fund University-Industry Collaboration Programme entitled "Content Generation and Processing
Technologies for 3D/Multiview Images and Videos". Versitech is a wholly-owned subsidiary and the technology transfer arm of
HKU.  As at December 31, 2018 the development
of the application of the video encoding and transmission is still under development. Therefore, there has been no fees paid to
Veritech for royalty and sublicense fee.  Starting in 2019 and thereafter, the
royalty will be the greater of 3% Royalty and HKD200,000 (approximately A$36,194) each year.  Technology License Agreement with Koninklijke Philips N.V.  In October 2013, a Technology License Agreement
between Koninklijke Philips N.V. ("Philips") and MDL for granting MDL a non-exclusive and non-transferable license under
certain intellectual property rights on/over for licensed patents and knowhow in relation to the 3D lenticular display design,
3D content creation and 3D formats ("the 3D Technology") to develop, manufacture, sell and / or otherwise dispose of
such 3D display modules and sets, and to disclose and make available certain know-how and information relating to the 3D technology
to MDL. The Agreement shall remain in force for a period of 10 years or until the last to expire Licensed Patent has expired, whichever
is later, unless terminated earlier in accordance with the provisions. The Technology License Agreement involve 700+ patents owned
by Philips. Government Regulations  The market for 3D technology is affected by
a wide range of U.S. and international regulations, including regulations related to taxation and import-export controls, which
could negatively impact the market for these devices we sell or decrease potential profits to the Company. Pursuant to the Tariff
Act of 1930, as amended, the Trade Act of 1974 and regulations promulgated there under, the United States government charges tariff
duties, excess charges, assessments and penalties on many imports. These regulations are subject to continuous change and revision
by government agencies and by action of the United States Trade Representative and may have the effect of increasing the cost of
goods purchased by the Company or limiting quantities of goods available to the Company from our overseas suppliers. As some of
our products are sold in China, we will need to follow the Regulations of the People's Republic of China on Import and Export Duties
which are amended from time to time and may have the effect of increasing the costs of goods sold by the Company into China.  Costs and Effects of Compliance with Environmental Laws; Environmental
Matters We are not aware of any material costs
or impacts on our business related to compliance with federal, state or local environmental laws regarding the products we intend
to market and sell. Insurance We do not carry any kind of product liability or other business
insurance. Legal and Administrative Proceedings We are not part to any material legal
or administrative proceedings, and we are not aware of any threatened material legal or administrative proceedings against us.   39    C.
    
    Organizational Structure  As at December 31, 2019, we have a
total of 9 subsidiaries and their corporate details and business activities are listed below:  Subsidiary Name
    Place of Incorporation
    % held
    Business scopeCIMC Marketing Pty Ltd
    Australia
    100% Direct
    Management services and tradingBinario Ltd
    British Virgin Islands
    100% Direct
    Investment holding companySmartglass Limited (formerly Dragon Creative Ltd)
    Hong Kong
    100% Direct
    Sales and distribution of switchable glassGOXD Technology Limited
    Hong Kong
    76% Indirect
    Development and distribution of 3D digital picture framesMarvel Digital Ltd
    Hong Kong
    95% Indirect
    Development of 3D autostereoscopic display technology and investment holdingVisumotion International Ltd
(Renamed Cystar International Limited)
    Hong Kong
    95% Indirect
    Sale of software and provision of consultancy servicesMarvel Display Technology (Shenzhen) Limited (formerly known as Marvel Software (Shenzhen) Ltd)
    China, PRC
    95% Indirect
    Manufacturing and distribution of 3D products and provision of 3D consultancy servicesGOXD Dongguan Limited
    China, PRC
    76% Indirect
    Design and sale of 3D digital picture frameDigital Media Technology Ltd
    Labuan, Malaysia
    100% Indirect
    Sale and distribution of 3D and audio products  D.
    
    Property, Plant and Equipment The Company has its registered
office in Adelaide, Australia, the principal and main operating office located in Hong Kong, and a test assembly and
operating office in China. In Australia, in 2019 the Company rents a 100 square feet office on a month to month basis at a
cost of A$1,000 per month. In 2020, the Company’s Australia office is now rent free on a month to month basis. In Hong Kong, the Company's the principal
office is approximately 3,000 square feet which was rent free in 2019 and in January 2020 the Company entered into a short term
arrangement paying a monthly rent at US$20,000 A$28,500 per month on a month to month arrangement. The Group also rents two operating
offices, (i) one of which is approximately 4,000 square feet on a three-year lease at approximately A$15,500 per month until May
31, 2020. and the other is approximately 4,400 square feet on a 3 years lease at approximately A$26,300 per month until October,
2021. In China, the Company rents a 4,405
square feet development office in Dongguan, Guangdong Province, on a three years lease at approximately A$3,857 per month until
November, 2021 In addition, the Company rents a 15,930 square feet pre-production facility in Shenzhen on a 2 years rental at approximately
A$33,663 per month until January 2021. In April and May 2020, the Group disposed of the subsidiaries holding these leases. Due to the divestment of the Company’s
R&D and pre-production/testing in Shenzhen, the Company will outsource the production of its products. Accordingly, the Company
does not intend to build at this time any infrastructure for its manufacturing requirements. We believe we will be able to obtain
additional office space for our operations, as needed, on commercially reasonable terms. Our plant and equipment recorded in our
consolidated financial statements as at December 31, 2019 consisted of A$83,949 for leasehold improvements relating to renovation
and decoration costs for our offices and A$645,168 for office furniture and equipment. We are not aware of any environmental impact
on the use of these equipment. With the distribution rights agreement for conductive film, we will seek to raise funds to build
one lamination line for manufacturing electronic glass products. However, we are only at the preliminary planning and final raising.   ITEM 4A.
    
    UNRESOLVED STAFF COMMENTS None.  40    ITEM 5.
    
    OPERATING AND FINANCIAL REVIEW AND PROSPECTS  The following discussion and analysis
of the financial condition and results of operations of IMTE should be read in conjunction with the audited consolidated financial
statements as at and for the fiscal year ended December 31, 2019, as at and for the year ended December 31, 2018, and for the year
ended December 31 2017, together with the notes thereto included elsewhere in this Annual report. The financial information contained
in this Annual report is derived from the financial statements, which were prepared in accordance with IFRS.  A.
    
    Operating Results IMTE is an Australian company engaged
in the development, sale and distribution of autostereoscopic 3D display, 3D video wall, 3D conversion equipment and software,
and provision of 3D technology solutions and consultancy services. In the past few years, we were
incorporated under the laws of the Commonwealth of Australia on August 8, 2008 under the name "China Integrated Media
Corporation Limited". On October 12, 2016 we changed the company name to Integrated Media Technology Limited. Our
ordinary shares were listed on the Australia Securities Exchange, or ASX in February 2013. On May 2, 2017, we effected a 1-for-30
reverse split of our common stock and become effective on the Australian Securities Exchange at the opening of trading on May 8,
2017. All share and per share amounts disclosed herein give effect to this reverse stock split retroactively, for all periods presented.
The purpose of the reverse stock split was to enable us to meet the Nasdaq's minimum share price requirement. On August 3, 2017 our shares of Common
Stock were admitted for listing on the Nasdaq Capital Markets under the symbol "IMTE". On June 15, 2018 our shares of common
stock were de-listed from the ASX. Today, the principal listing of our ordinary shares is on the Nasdaq Capital Markets, or Nasdaq. For a description of the milestones that
we have achieved since inception and through to the date of this report, see "Item 4. Information on the Company – A.
History and Development of the Company." Overview In the past few years, we were at
an early stage in the development of our 3D products and services. We have incurred net losses since inception until recently
when we recorded a profit for the fiscal year 2017 mainly through the sale of our autostereoscopic 3D display, 3D conversion
equipment and software. However, in 2019 and 2018 we recorded losses of A$16,700,199 and A$16,843,223, respectively, mainly
due to the decrease in sales as we sorted out certain manufacturing issues with our manufacturer. In 2019, the Company
manufacturing issues continued, and our sales suffered. We now expect to resolve this manufacturing issue in second half of
2020. This combined with COVID 2019, will present a challenge for the Company to grow sales in 2020 and to return to
profitability. For the past 2 years, we have funded our operations primarily through the sale of equity securities in the
Company and its subsidiaries, advances from shareholder and from operation cashflows. For details of the business overview,
see "Item 4. Information on the Company - B. Business Overview." Critical Accounting Policies We prepare our consolidated financial
statements in accordance with IFRS as issued by IASB. As such, we are required to make certain estimates, judgments, and assumptions
that management believes are reasonable based upon the information available. These estimates, judgments and assumptions affect
the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of
revenues and expenses during the periods presented. The significant accounting policies listed in Note 3 to the consolidated financial
statements that management believes are the most critical to aid in fully understanding and evaluating our financial condition
and results of operations under IFRS are discussed below.  Goodwill  Goodwill
is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair
value of consideration transferred, (b) the recognized amount of any non-controlling interest in the acquiree, and (c) acquisition-date
fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets.  Any contingent consideration to be transferred
by the acquirer is recognized at acquisition-date fair value. Subsequent adjustments to consideration are recognized against goodwill
only to the extent that they arise from new information obtained within the measurement period (a maximum of 12 months from the
acquisition date) about the fair value at the acquisition date. All other subsequent adjustments to contingent consideration classified
as an asset or a liability are recognized in the consolidated statement of profit or loss.   41    Intangible Assets  (i)
    
    Acquired both separately and from a business combination Purchased intangible assets are initially
measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition.
Following initial recognition, intangible assets are measured at cost less any accumulated amortization and any accumulated impairment
losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset
with a finite useful life are reviewed at each financial year end.  (ii)
    
    Autostereoscopic 3D display technologies and knowhow The autostereoscopic 3D display technologies
and knowhow acquired in the business combination is measured at fair value as at the date of acquisition. These costs are amortized
over the estimated useful life of 8 years and are tested for impairment where an indicator of impairment exists. The useful lives
are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis. Please refer to Note 16
for impairment review of these autostereoscopic 3D display technologies and knowhow.  (iii)
    
    Research and development costs Development projects in the consolidated
statement of financial position represent the development costs directly attributable to and incurred for internal technology projects
of the Group. An intangible asset arising from development expenditure on an internal technology project is recognised and included
in development projects only when the Group can demonstrate the technical feasibility of completing the intangible asset or technology
so that it will be available for application in existing or new products or for sale, its intention to complete and its ability
to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development,
the ability to measure reliably the expenditure attributable to the intangible asset during its development and the ability to
use the tangible asset generated. For labour costs, all research and development member salaries that are directly attributable
to the technology project are capitalised. Administrative staff and costs are recognised in the profit or loss instead of capitalising
this portion of costs. Following the initial recognition of the development expenditure, the cost model is applied requiring the
asset to be carried at cost less any accumulated impairment losses. The amortisation rate of these intangible assets was determined
on the basis of the estimated useful life from the time that the relevant asset is taken into use.  (iv)
    
    Intellectual property Expenditure incurred on patents, trademarks
or licenses are capitalized from the date of application. They have a definite useful life and are carried at cost less accumulated
amortization. They are amortized, using the straight line method over their estimated useful lives for a period of 8 to 15 years.  (v)
    
    Computer software Acquired computer software licenses are
capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over
their estimated useful lives (2-5 years). Costs associated with maintaining computer software programmes are recognized as an expense
when incurred.  Inventories Finished goods are stated at the lower
of cost and net realizable value on a "first in first out" basis. Cost comprises direct materials and delivery costs,
import duties and other taxes. Costs of purchased inventories are determined after deducting rebates and discounts received or
receivable. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary
to make the sale.   42    Leases  The Group has applied IFRS 16 using the modified
retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17
and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately.  The policy applicable from 1 January 2019  At inception of a contract, the Group assesses
whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.  This policy is applied to contracts entered
into, on or after 1 January 2019.  As a lessee  At commencement or on modification of a contract
that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of
its relative and-alone prices. However, for the leases of property the Group has elected
not to separate lease components and account for the lease and non-lease components
as a single lease component.  The Group recognises a right-of-use
asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.  The right-of-use
asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the
lease term or the cost of the right-of-use
asset reflects that the Group will exercise a purchase option. In that case the right-of-use
asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property
and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The
lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.  The Group determines its incremental borrowing
rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of
the lease and type of the asset leased.  Lease payments included in the measurement
of the lease liability comprise the following:  -
    fixed payments, including in-substance fixed payments; -
    variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; -
    amounts expected to be payable under a residual value guarantee; and-
    the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.  The lease liability is measured at amortised
cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change
in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there
is a revised in-substance fixed lease payment.  When the lease liability is remeasured in this
way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.  The Group presents right-of-use
assets that do not meet the definition of investment property in‘plant and
equipment’ and lease liabilities in ‘loans and borrowings’ in the consolidated statement of financial position.  Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use
assets and lease liabilities for leases of low value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.  Policy applicable before 1 January 2019  For contracts entered into before 1 January
2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether: fulfilment of the
arrangement was dependent on the use of a specific asset or assets; and the arrangement had conveyed a right to use the asset.
An arrangement conveyed the right to use the asset if one of the following was met: the purchaser had the ability or right to operate
the asset while obtaining or controlling more than an insignificant amount of the output; the purchaser had the ability or right
to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or; amounts
expected to be payable under a residual value guarantee; and facts and circumstances indicated that it was remote that other parties
would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal
to the current market price per unit of output.  As a lessee In the comparative period, where the
Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower,
the present value of the minimum lease payments, of such assets are recognised as plant and equipment and the corresponding liabilities,
net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the
cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the
asset, the life of the asset, as set out in note 3(k). Impairment losses are accounted for in accordance with an accounting policy
as set out in note 3(h). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases
so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting
period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. Lease payments for operating lease, where
substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis unless another
method is more representative of the pattern to the users benefit.   43    Impairment of Assets Internal and external sources of information
are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in
the case of goodwill, an impairment loss previously recognised no longer exists or may have decreased: -       plant
and equipment (other than properties carried at revalued amounts); -       intangible
assets; and -       goodwill. If any such indication exists, the asset's
recoverable amount is estimated. In addition for goodwill, intangible assets that are not yet available for use and intangible
assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of
impairment.  Impairment of Assets (continued) (i)    Calculation of
recoverable amount The recoverable amount of an asset is
the greater of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other
assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a
cash-generating unit). (ii)    Recognition of
impairment losses An impairment loss is recognized in profit
or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment
losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated
to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group
of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less
costs of disposal (if measurable) or value in use (if determinable). (iii)    Reversals of
impairment losses In respect of assets other than goodwill,
an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount.
An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited
to the asset's carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals
of impairment losses are credited to profit or loss in the year in which the reversals are recognized. Plant and Equipment Items of plant and equipment are measured
at cost less accumulated depreciation and impairment losses. The carrying amount of plant and equipment
is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable
amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciable amount of all fixed assets
are depreciated over their estimated useful lives to the Group commencing from the time the assets is held ready for use. Depreciation is calculated on a straight-line
basis to write the net cost of each item of plant and equipment over their expected useful lives. The depreciation rates used for
each class of depreciable assets are generally as follows:  Class of fixed assets
    
    Depreciation rateLeasehold improvements
    
    lesser of 3-5 years or lease termOffice furniture and equipment
    
    3-5 yearsMotor vehicle
    
    5 years  Gains and losses on disposal are determined
by deducting the net book value of the assets from the proceeds of sale and are booked to the profit or loss in the year of disposal.   44    Convertible Bonds Convertible bonds that can be converted
into ordinary shares at the option of the holder, where the number of shares to be issued is fixed, are accounted for as compound
financial instruments, i.e. they contain both a liability component and an equity component. At initial recognition the liability
component of the convertible bonds is measured at fair value based on the future interest and principal payments, discounted at
the prevailing market rate of interest for similar non-convertible instruments. The equity component is the difference between
the initial fair value of the convertible bonds as a whole and the initial fair value of the liability component. Transaction costs
that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion
to the allocation of proceeds. The liability component is subsequently
carried at amortised cost. Interest expense recognised in profit or loss on the liability component is calculated using the effective
interest method. The equity component is recognised in the capital reserve until either the bonds are converted or redeemed. If the bonds are converted, the capital
reserve, together with the carrying amount of the liability component at the time of conversion, is transferred to share capital
and share premium as consideration for the shares issued. If the bonds are redeemed, the capital reserve is released directly to
retained profits. Derivative Financial Instruments Derivative financial instruments are
recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to
fair value is recognised immediately in profit or loss. Revenue Revenue is recognized in accordance with
IFRS 15 Revenue from Contracts with Customers. The underlying principle is to recognize revenue when a customer obtains control
of the promised goods at an amount that reflects the consideration that is expected to be received in exchange for those goods.
It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related
to contracts with customers. We adopted IFRS 15 Revenue from Contracts with Customers at the beginning of 2018, and implemented
new accounting policies and internal controls necessary to support its requirements. The adoption of IFRS 15 did not have any impact
on our revenue recognition. We recognize revenue upon transfer of
control of the promised goods in a contract with a customer in an amount that reflects the consideration we expect to receive in
exchange for those products. Transfer of control occurs once the customer has the contractual right to use the product, generally
upon shipment or once delivery and risk of loss has transferred to the customer. We account for a contract with customer when we
have approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial
substance and collectability of consideration is probable. We identify separated contractual performance obligations and evaluate
each distinct performance obligation within a contract, whether it is satisfied at a point in time or over time. All of our performance
obligations for the reported periods were satisfied at a point in time. Revenue is allocated among performance
obligations in a manner that reflects the consideration that we expect to be entitled to for the promised goods based on standalone
selling prices (“SSP”). SSP are estimated for each distinct performance obligation and judgment may be required in
their determination. The best evidence of SSP is the observable price of the product when we sell the goods separately in similar
circumstances and to similar customers. Until January 1, 2018, revenues from
sales of products and services were recognized upon delivery provided that the collection of the resulting receivable was reasonably
assured, there was persuasive evidence of an arrangement, no significant obligations remained and the price was fixed or determinable. The product warranties, which in the
great majority of cases includes component and functional errors, are usually granted for one year period from legal transfer of
the product. For the customers, the specific warranty period and the specific warranty terms are part of the basis of the individual
contract. Warranty provisions include only standard
warranty, whereas services purchased in addition to the standard warranty are included in the services contracts. Interest Income Income is recognized as interest accrues
using the effective interest method.   45    Recent Acquisitions  See "Item 4. Information on the Company
- A. History and Development of the Company."  Results of Operations  The following table sets forth our condensed
consolidated statements of operations by amount and as a percentage of our total operating revenues for the periods indicated:  For the years ended December 31,2019
    
    2018
    
    2017Amount
        A$
    
    % of NetRevenues
    
    Amount
        A$
    
    % of NetRevenues
    
    Amount
        A$
    
    % of NetRevenuesRevenues:Products
    
    1,165,607
    
    91.4
    
    1,228,485
    
    92.8
    
    5,600,106
    
    97.2Services
    
    109,818
    
    8.6
    
    95,921
    
    7.2
    
    162,605
    
    2.8Total operating revenues
    
    1,275,425
    
    100
    
    1,324,406
    
    100.0
    
    5,762,711
    
    100.0ExpensesCost of sales
    
    1,008,821
    
    76.2
    
    723,711
    
    54.6
    
    2,548,064
    
    44.2Employee benefit expenses
    
    4,034,378
    
    304.6
    
    2,253,411
    
    170.1
    
    1,887,692
    
    32.8Depreciation and amortization expenses
    
    3,174,784
    
    239.7
    
    2,029,373
    
    153.2
    
    2,021,131
    
    35.1Professional and consulting expenses
    
    2,019,970
    
    158.4
    
    1,746,762
    
    131.9
    
    301,732
    
    5.2Gain on disposal of a subsidiary
    
    -
    
    -
    
    (608,995)
    
    (46)
    
    -
    
    -Travel and accommodation expenses
    
    281,895
    
    22.1
    
    384,184
    
    29.0
    
    333,503
    
    5.8Other operating expenses
    
    2,341,672
    
    183.6
    
    2,010,142
    
    151.8
    
    1,448,960
    
    25.1Provision for impairment loss for goodwill
    
    4,486,301
    
    351.8
    
    9,953,311
    
    751.5
    
    -
    
    -Financial costs
    
    1,561,625
    
    122.4
    
    1,383,399
    
    104.5
    
    107,101
    
    1.9Total expenses
    
    18,909,446
    
    1,482.6
    
    19,875,298
    
    1,300.7
    
    8,648,183
    
    150.1Operating loss before income tax
    
    (17,634,021)
    
    (1,382.6)
    
    (18,550,892)
    
    (1,400.7)
    
    (2,885,472)
    
    (50.1)Non-operating incomeInterest income
    
    115,762
    
    9.1
    
    21,409
    
    1.6
    
    3,092
    
    0.1Gain on disposal of financial assets at fair value through profit or loss
    
    127,551
    
    10.0
    
    709,543
    
    53.6
    
    -
    
    -Fair value change in contingent consideration liability
    
    -
    
    -
    
    -
    
    -
    
    3,953,537
    
    68.6Other income
    
    807,831
    
    63.3
    
    469,660
    
    35.5
    
    434,296
    
    7.5Net (loss) / profit before income taxes
    
    (16,582,877)
    
    (1,300.2)
    
    (17,350,280)
    
    (1,310.0)
    
    1,505,453
    
    26.1Income tax credit / (expense)
    
    (117,322)
    
    9.2
    
    507,057
    
    38.3
    
    187,213
    
    3.2Net (loss) / profit
    
    (16,700,199)
    
    (1,309.4)
    
    (16,843,223)
    
    (1,271.8)
    
    1,692,666
    
    29.3   46    Comparison of Year Ended December 31, 2019 to Year Ended
December 31, 2018  Revenue The following table sets forth revenues
by sources and the percentage of our total operating revenues for the period indicated: For the years ended December 31,2019
    
    2018AmountA$
    
    % ofTotalRevenues
    
    AmountA$
    
    % ofTotalRevenuesProductsDisplays
    1,164,103
    
    91.3
    
    1,166,144
    
    88.0Tablets and mobiles
    -
    
    0.0
    
    -
    
    0.0Super workstations
    -
    
    0.0
    
    -
    
    0.0Software
    1,504
    
    0.1
    
    13,731
    
    1.0Technology solutions
    -
    
    0.0
    
    -
    
    0.0Audio products
    -
    
    0.0
    
    48,609
    
    3.7Other products
    -
    
    0.0
    
    -
    
    0.0Sub-total
    1,165,607
    
    91.4
    
    1,228,484
    
    92.7ServicesConversation services
    16,686
    
    1.3
    
    57,661
    
    4.4Other services
    93,132
    
    7.3
    
    38,261
    
    2.9Consulting services income
    -
    
    0.0
    
    -
    
    0.0Sub-total
    109,818
    
    8.6
    
    95,922
    
    7.3Total operating revenues
    1,275,425
    
    100.0
    
    1,324,406
    
    100.0 Revenues.The revenue
from operating activities for the year ended December 31, 2019 was A$1,275,425 as compared to the prior year of A$1,324,406, a
decrease of A$48,981 or 4% from the prior year. The revenue for the year ended December 31, 2019 consists of the sales and distribution
of 3D autostereoscopic products and sales of 2D tablets. In 2020, we will put more emphasis on sales of 3D POS machines, a new
advertising product. Cost of Sales. The following
table sets forth cost of sales by sources of revenues by amount and as a percentage of net revenues for the periods indicated:  Years ended December 31,2019
    
    2018AmountA$
    
    % of NetRevenues
    
    AmountA$
    
    % of NetRevenuesProducts
    962,799
    
    75.0
    
    559,840
    
    42.3Services
    46,022
    
    4.0
    
    163,871
    
    12.4Total cost of sales
    1,008,821
    
    79.0
    
    723,711
    
    54.7  Cost of sales increased by 39% to A$1,008,821
in 2019 from A$723,711 in 2018, which primarily due to the change in product mix of the Group with 2D tablets being sold in current
year, bringing more costs of sales than that of the products sold in the prior year. Gross Profit and Gross Margin.
Gross profit decreased by 56% from A$600,695 in 2018 to A$266,604 in 2019. Our gross margin significantly decreased from 45% in
2018 to 21% in 2019, primarily due to the change in product mix of the Group with 2D tablets being sold with comparatively lower
profit margin than that of the products sold in the prior year.  Gain on disposal of financial assets
at fair value through profit and loss.  The amount of derivative financial instrument
issued that is recognized as income is A$127,551.  Provision for impairment loss of intangible
assets and goodwill.  It represents the impairment loss of goodwill
in 2019.   47    Other income  It represented primarily the government
subsidy in respect of our technology development projects received for the years ended December 31, 2019 and 2018.  Expenses  The operating expenses for the year ended December 31, 2019 was
A$18,909,446 as compared to the prior year of A$19,875,298 a decrease of A$965,852 or 4.86% from the prior year. The decrease in
total operating expenses was mainly attributable to the following: -A decrease of A$5,467,010 in the provision for impairment loss of
goodwill from A$9,953,311 in 2018 to A$4,486,301 in 2019;  -An increase of A$285,110 in cost of sales from A$723,711 in 2018
to A$1,008,821 in 2019 as discussed above; -An increase of A$1,789,967 in employee benefit expenses from A$2,253,411
in 2018 to A$4,034,378 in 2019, which was primarily due to increase in the number of staff and general salary increment. The increase
of staff was primarily due to the addition of staff for GOXD operation and executive director’s compensation; -An increase of A$1,145,411 in depreciation and amortization expenses
from A$2,029,373 in 2018 to A$3,174,784 in 2019; -A decrease of A$608,995 in gain on disposal of a subsidiaries relating
to disposals of subsidiaries in 2018. There were no disposals in 2019; -An increase of A$273,208 in professional and consulting expenses
from A$1,746,762 in 2018 to A$2,019,970  in 2019 resulting from the increase in legal and professional fees for certain corporate
activities during the year including the investor relations fees. -An increase of A$331,530 in other operating expenses from A$2,010,142
in 2018 to A$2,341,672 in 2019 resulting from the operating cost of the GOXD operation for the full year in 2019; and -An increase of A$117,322 in finance costs from A$1,383,399 in 2018
to A$1,561,625 in 2019 was mainly attributable to the convertible bonds interest of amount A$1,316,702 in 2019, compared to the
prior year of A$930,276 in 2018 and interest charged of A$50,329 in 2019 on the amounts of revolving loan with interest rate on
8% per annum. Income tax  Income tax expenses of A$117,322 were recognized
during the year ended December 31, 2019 in mainly deferred tax were recognized during the year.  Net Profit (Loss)  We recorded a net loss of A$16,700,199 for
the year ended December 31, 2019 while net loss of A$16,843,223 was recorded for the year ended December 2018.   48    Comparison of Year Ended December 31, 2018 to Year Ended
December 31, 2017  Revenue  The following table sets forth revenues
by sources and the percentage of our total operating revenues for the period indicated: For the years ended December 31,2018
    
    2017AmountA$
    
    % ofTotalRevenues
    
    AmountA$
    
    % ofTotalRevenuesProductsDisplays
    1,166,144
    
    88.0
    
    2,528,885
    
    43.9Tablets and mobiles
    -
    
    0.0
    
    655,076
    
    11.4Super workstations
    -
    
    0.0
    
    1,085,416
    
    18.8Software
    13,731
    
    1.0
    
    9,383
    
    0.2Technology solutions
    -
    
    0.0
    
    1,171,108
    
    20.3Audio products
    48,609
    
    3.7
    
    54,251
    
    0.9Other products
    -
    
    0.0
    
    95,987
    
    1.7Sub-total
    1,228,484
    
    92.7
    
    5,600,106
    
    97.2ServicesConservation services
    57,661
    
    4.4
    
    79,599
    
    1.4Other services
    38,261
    
    2.9
    
    83,006
    
    1.4Consulting services income
    -
    
    0.0
    
    -
    
    0.0Sub-total
    95,922
    
    7.3
    
    162,605
    
    2.8Total operating revenues
    1,324,406
    
    100.0
    
    5,762,711
    
    100.0 Revenues.The revenue
from operating activities for the year ended December 31, 2018 was A$1,324,406 as compared to the prior year of A$5,762,711, a
decrease of A$4,438,305 or 77% from the prior year. The revenue for the year ended December 31, 2018 consists of the sales and
distribution of 3D autostereoscopic products and sales of software, sales and distribution of audio products, and provision of
conversion and other services. The significant decrease in revenue from operations in the year ended December 31, 2017 is primarily
attributable to the decline in sales of mobile and tablets of A$655,076, super workstation of A$1,085,416, technology solutions
of A$1,171,108 and displays of $1,362,741. We did not have any sales in mobile and tablets, super workstation and technology solution
when compared to the prior year. The technology solution sales are customized solutions and comes periodically. For display products,
we encountered contract manufacturing problems in 2018 which limited commercial production for 3D display products. Going forward,
we have identified a major contract manufacturer for our 3D display manufacturing. In addition, we will put more focus in the sale
of 3D display and video wall in 2019. Cost of Sales. The following
table sets forth cost of sales by sources of revenues by amount and as a percentage of net revenues for the periods indicated:  Years ended December 31,2018
    
    2017AmountA$
    
    % of NetRevenues
    
    AmountA$
    
    % of NetRevenuesProducts
    559,840
    
    42.3
    
    2,468,763
    
    42.8Services
    163,871
    
    12.4
    
    79,301
    
    1.4Total cost of sales
    723,711
    
    54.7
    
    2,548,064
    
    44.2  Cost of sales decreased by 72% to A$723,711
in 2018 from A$2,548,064 in 2017, which primarily due to the change in product mix of the Group with more software products and
technology solutions being sold in the prior year, bringing more costs of sales than that of the products sold in the current year.  Gross Profit and Gross Margin.
Gross profit decreased by 81% from A$3,214,647 in 2017 to A$600,695 in 2018. Our gross margin significantly decreased from 56%
in 2017 to 45% in 2018, primarily due to the change in product mix of the Group with more software products and technology solutions
being sold with comparatively higher profit margin than that of the products sold in the current year.  Fair value change in contingent consideration
liability  This represents the change in fair value of
the derivative financial instruments relating to the put option granted by the Company to the investor in MDL's Convertible Bond.  The amount of derivative financial instrument
issued that is expected to be recognized as income after more than one year is A$126,095.  Provision for impairment loss of intangible
assets and goodwill  It represents the impairment loss of goodwill
in 2018.   49    Other income  It represented primarily the government
subsidy in respect of our technology development projects received for the years ended December 31, 2018 and 2017.  Expenses  The operating expenses for the year ended December
31, 2018 was A$21,559,047 as compared to the prior year of A$8,648,183 an increase of A$12,910,864 or 149% from the prior year.
The increase in total operating expenses was mainly attributable to provisions for impairment loss of goodwill of A$9,953,311 made
during the year. Employee benefit expenses increased
by 19.3% to A$2,253,411 in 2018 from A$1,887,692 in 2017, which was primarily due to increase in the number of staff and general
salary increment. As at December 31, 2018, the Group had a total of 74 staff, compared to 53 staff in the Group as at December
31, 2017. The increase of staff was primarily due to the addition of staff for GOXD operation. The professionally and consulting expenses
increased by A$1,445,030 resulting from the increase in legal and professional fees for certain corporate activities during the
year including the convertible bonds, Marvel Finance Limited debt to share conversion, investor relations and fund raising fees. Finance costs increased by A$1,276,298
from A$107,101 in 2017 to A$1,383,399 in 2018. The increase of A$1,276,298 was mainly attributable to the convertible bonds interest
of amount A$930,276 and interest charged of A$396,868 in 2018 on the amounts by Marvel Finance Limited, the ultimate holding company
in respect of the A$15 million owed to MFL at the beginning of 2018. A$8 million of the amount was settled by the issue of 708,500
shares to MFL on December 12, 2018. The gain on disposal of subsidiaries
for the year ended December 31, 2018 is related to the Company's shareholding in Yamaga Limited, Global Vantage Audio Limited,
Marvel Digital (Shenzhen) Limited, Yamaga Audio Limited and Zamora Corporation, which were all disposed of in 2018. The majority
of the gain of about A$521,042 was derived from the sale of Marvel Digital (Shenzhen) Limited.  Income tax  Income tax credit of A$507,057 were recognized
during the year ended December 31, 2018 while A$102,853 and A$404,204 of current tax and deferred tax were recognized during the
year ended December 31, 2018 which were arising primarily from the disposal of subsidiaries and the loss for the year.  Net Profit (Loss)  We recorded a net loss of A$16,843,223 for
the year ended December 31, 2018 while net profit of A$1,692,666 was achieved for the year ended December 2017. The decrease was
mainly due to provision for impairment losses of goodwill of A$9,953,311 in 2018. Additionally, our results were impacted by the
decrease in our revenue from operating activities and increase in corporate expenses for setting up a new business stream. Included
in the profit for the year ended 31 December 2017 was an amount of $3,953,537 being the fair value decrease in contingent consideration
liability in relation to the acquisition of MDL.   50    Inflation and Seasonality Management believes inflation has not
had a material impact on our operations or financial condition and that our operations are not currently subject to seasonal influences. New, Revised or Amending Accounting
Standards and Interpretations  The Group has applied the following standards
and amendments for first time in their annual reporting period commencing January 1, 2019:  •   IFRS 16 Leases  IFRS 16 Leases was issued in January 2016 and
is effective as of January 1, 2019, replacing IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15
Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16 sets
out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for
all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes
two recognition exemptions for lessees - leases of 'low-value' assets (e.g., personal computers) and short-term leases (i.e., leases
with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease
payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e.,
the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation
expense on the right-of-use asset.  The adoption of these amendments has been disclosed
in note 3 to the consolidated financial statements.  •   IFRS 23 Uncertainty Over
Income Tax Treatments  IFRIC 23 Uncertainty Over Income Tax Treatments
clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments.
It is effective for annual periods beginning on or after January 1, 2019 with early adoption permitted.  Management evaluated the new guidelines introduced
by IFRIC 23 and did not identify any material impact for the Group.  The adoption of these amendments has not had
a material impact on the Group.   51    New standards and interpretations not yet
effective  The new and amended standards and interpretations
that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below.
The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.  (i)
    IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS
17 Insurance Contracts (“IFRS 17”), a comprehensive new accounting standard for insurance contracts covering recognition
and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (“IFRS 4”)
that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance),
regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary
participation features. A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for
insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely
based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering
all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by: • A specific adaptation for contracts
with direct participation features (the variable fee approach) • A simplified approach (the premium allocation approach) mainly
for short-duration contracts IFRS 17 is effective for reporting periods beginning on or after 1 January 2021, with comparative
figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it
first applies IFRS 17. This standard is not applicable to the Group.  (ii)
    Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued
amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of
activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether
market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process
is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New
illustrative examples were provided along with the amendments. Since the amendments apply prospectively
to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments
on the date of transition.  (iii)
    Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued
amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new
definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to
influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity.’ The amendments to the definition
of material is not expected to have a significant impact on the Group’s consolidated financial statements.   52    Critical Accounting Judgments, Estimates and Assumptions The preparation of the consolidated financial
statements requires management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated
financial statements. Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgments, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting
accounting judgments and estimates will seldom equal the related actual results.
The judgments, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below. (i)
    Goodwill and other intangible assets The goodwill included in the consolidated
financial statements was derived from the acquisition of Marvel Digital Limited. Determining whether goodwill is impaired requires
as estimation of the value in use of the cash generating unit (“CGU”) to which goodwill have been allocated. The value
in use calculation requires the Group to estimate the future cash flows expected to arise from the CGU and a suitable discount
rate in order to calculate the present value. Where the actual future cash flows are less than expected, a material impairment
loss may arise. At the end of the reporting year, the carrying amount of goodwill is A$NIL (2018: A$4,468,293). Details of the
recoverable amount calculations are disclosed in Note 16.  (ii)
    Provision for impairment of receivables The provision for impairment of
receivables assessment requires a degree of estimation and judgment. The level of provision is assessed by taking into account
the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtor’s
financial position. Refer to Note 13 for further details.  (iii)
    Estimation of useful lives of assets The Group determines the estimated
useful lives and related depreciation and amortization charges for its plant and equipment and finite life intangible assets. The
useful lives could change significantly as a result of technical innovations or some other events.
The depreciation and amortization charge will increase where the useful lives are less than previously estimated lives, or technically
obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Please refer to Note 3(e)
and 3(k) for further detail. (iv)
    Income tax The Group is subject to income
taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax and
in assessing whether deferred tax assets and certain deferred tax liabilities are recognized in the consolidated statement of financial
position. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are
recognized only where it is considered more likely than not that they will be recovered, which is dependent on the generation of
sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management’s estimates
of future cash flows. In addition, there are many transactions and calculations undertaken during the ordinary course of business
for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax audit issues based
on the Group’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Judgements are also required about
the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is
a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred
tax liabilities recognized in the statement of financial position and the amount of other tax losses and temporary differences
not yet recognized. In such circumstances, some or all of the carrying amounts of recognized deferred tax assets and liabilities
may require adjustments, resulting in a corresponding credit or charge to the consolidated statement of profit or loss and comprehensive
income. (v)
    Capitalized technology development expenditure in intangibles In determining which technology
development expenditure may be capitalized the Group applies judgement to distinguish those costs which have a direct relationship
to the criteria for capitalization described in accounting policy Note 3(e), from those which should be expensed in the period
incurred. This involves evaluating the nature of work performed by staff as well as universities, educational and professional
institutions, third party consultants and contractors, and in many cases includes a judgmental apportionment of costs. (vi)
    Impairment of non-financial assets The Group assesses impairment
of all assets (including intangible assets) at each reporting date by evaluating conditions specific to the Group and to the particular
asset that may lead to impairment. These include product, technology, economic and political environments and future product expectations.
If an impairment trigger exists the recoverable amount of the asset is determined. Given the current uncertain economic environment
management considered that the indicators of impairment were significant enough and as such these assets have been tested for impairment
in this financial period. Refer to Note 3(h) for details regarding the method and assumptions used. (vii)
    Fair value of convertible bonds The fair value of convertible
bonds are determined using valuation techniques including reference to other instruments that are substantially the same, discounted
cash flow analysis and option pricing model. The inputs to these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgement is required in establishing fair values. (viii)
    Fair value of derivative financial instruments The fair values of derivative
financial instruments that are not quoted in active markets are determined by using valuation techniques. Valuation techniques
used include discounted cash flows analysis and models with built-in functions available in externally acquired financial analysis
or risk management systems widely used by the industry such as option pricing models. To the extent practical, the models use observable
data. In addition, valuation adjustments may be adopted if factors such as credit risk are not considered in the valuation models.
Management judgement and estimates are required for the selection of appropriate valuation parameters, assumptions and modeling
techniques. (ix)
    Valuation of contingent consideration The contingent consideration
to be transferred by the acquirer is recognized at acquisition-date fair value. The fair value of contingent consideration was
based on an independent valuation which is determined by using the discounted cash flow method on the probability-weighted financial
projection of MDL for the period from October 1, 2015 to September 30, 2017 and is under level 3 fair value adjustment which involve
significant estimates and judgements from the management. There is no more contingent liabilities as at December 31, 2018 and 2019,
as the Company recognized the actual deferred performance fee to be paid to MFL of A$15,110,749 in 2017.   53    B.
    
    Liquidity and Capital Resources Since our inception, our operations have
mainly been financed through the issuance of equity securities. Additional funding has come through shareholder advances and short-term
investments. We have incurred significant losses since our inception until 2015. For the past 3 years, we have recorded loss of
A$16,700,199, loss of A$16,843,223, and profit of A$1,692,666, for the fiscal years ended December 31, 2019, 2018, and 2017 respectively. Equity Issuances The following table summarizes our issuance
of ordinary shares for cash or from the conversion debts. We did not issue shares for share-based payments, executive and employee
compensation in the last 3 fiscal years.  Fiscal
Year
    
    
    Number of
Shares*
    
    
    Net Proceeds(in A$)Issuance of new shares
    
    
    2013
    
    
    
    580,000*
    
    
    
    3,480,000Share issuance in respect of payment to a consultant
    
    
    2013
    
    
    
    16,666*
    
    
    
    100,000Share issuance in respect of acquisition of subsidiaries
    
    
    2015
    
    
    
    175,926*
    
    
    
    5,277,804Share issuance for payment to consultant
    
    
    2018
    
    
    
    25,275
    
    
    
    491,750Share issuance for debts
    
    
    2018
    
    
    
    708,500
    
    
    
    8,000,000Share issuance for debts or cash
    
    
    2019
    
    
    
    Nil
    
    
    
    Nil * On post reverse split of 30 for
1 Capital Requirements As of December 31, 2019, we had cash
and cash equivalents of A$(166,758) and trade receivables of A$892,488. Our trade receivable balance significantly decreased as
compared to A$1,086,161 as of December 31, 2018, was attributable to the decrease in sales in 2019. We anticipate that our current
cash and cash equivalents will be sufficient to fund our operations for the next 12 months based on our budget and forecasted revenue.
However, our forecast of the period through which our financial resources will be adequate to support our operations is a forward-looking
statement that involves risks and uncertainties, and actual results could vary materially. If we are unable to raise additional
capital when required or on acceptable terms or not realize our anticipated operating and sales plans, we may have to significantly
delay, scale back or discontinue our 3D developments or our operations. In addition, the Company has started to recapitalize its equity base by selling US$1 million of its shares in February 2020.
Furthermore, the Company is working on increasing its shareholder’s equity to more than US$2.5 million so that it complies
with Nasdaq’s continual listing requirement. The Company is seeking to increase its shareholders’ equity through
debt conversion or sale of new shares.   54    Cash Flows The following table summarizes our cash flows for the periods
presented:  Fiscal Year Ended December 31,2019
    
    2018
    
    2017A$
    
    A$
    
    A$Net cash outflows in operating activities
    
    (5,547,544)
    
    (6,858,433)
    
    4,864,308Net cash outflows in investing activities
    
    (1,828,617)
    
    (3,319,768)
    
    (2,189,991)Net cash inflows/ (outflows) by financing activities
    
    6,583,113
    
    8,638,582
    
    (1,579,552)Net increase (decrease) in cash and cash equivalents
    
    (793,048)
    
    (1,539,619)
    
    1,094,765Effect of exchange rate changes on cash and cash equivalents
    
    6,585
    
    89,252
    
    (61,658)Cash and cash equivalents at beginning of period
    
    619,705
    
    2,070,072
    
    1,036,965Cash and cash equivalents at end of period
    
    (166,758)
    
    619,705
    
    2,070,072  Net cash outflows in operating activities
was A$(5,547,544), A$(6,858,433) and A$(4,864,308) during the years ended December 31, 2019, 2018 and 2017, respectively. Net cash
outflows in operating activities during the year ended December 31, 2019 was mainly to the decrease in revenue. Net cash inflows
in operating activities significantly increased during the year ended December 31, 2018 were attributable to the receipts from
customers on sale of software and technology solutions. Net cash outflows in investing activities
were A$(1,828,617), A$(3,319,768), and A$(2,189,991) during the years ended December 31, 2019, 2018 and 2017, respectively. Net
cash outflows in investing activities during the years ended December 31, 2019, 2018 and 2017 was primarily attributable to the
payments for acquisition of various patents and intangible assets, and development costs incurred for various on-going technology
projects. Net cash inflows/(outflows) in financing
activities was A$6,583,113, A$8,638,582, and (A$1,579,552) during the years ended December 31, 2019 and 2018, 2017 respectively. Net cash inflows in financing activities
during the years ended December 31, 2019 are attributable to the revolving loan provided from third party. Net cash outflows in
financing activities during the years ended December 31, 2019 and 2018 are attributable to the revolving loan provided from third
party, advances from related companies and ultimate holding company. We had cash and bank balance of A$(166,758),
A$619,705, and A$2,070,072 as at December 31, 2019, 2018 and 2017 respectively. Cash and bank balance as at December 31, 2019,
2018 and 2017 were consisted of A$735,424, A$1,514,215, and A$2,860,014 of cash and bank balances, and A$(902,482), A$(894,510)
and A$(789,942) of bank overdraft, respectively.  C.
    
    Research and Development, Patents and Licenses  For
the 3 years ended December 31, 2019, we have employed 25, 10 and 10 staff, respectively, in the research and development of 3D
autostereoscopic technology and we incur annual staffing costs of approximately A$6,155,884, A$716,000 and A$764,000 during the
respective years. We also have Company sponsored research with certain universities and research institutes as discussed in Item
4. Information of the Company under Research and Developments, which also includes a cooperation agreement with the Hong Kong Applied
Science and Technology Institute (ASTRI) to establish the ASTRI-Marvel Digital Joint Research and Development Center, focusing
on research and development of advanced technology in 3D imaging, as announced on June 20, 2016.  D.
    
    Trend Information We are still a young company and it
is not possible for us to predict with any degree of accuracy the outcome of our business in the future. Our operations is mainly
dependent on further development and commercialization of our technologies.  E.
    
    Off-Balance Sheet Arrangements During fiscal years ended December
31, 2017, 2018 and 2019, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities
often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating
off-balance sheet arrangements or other contractually narrow or limited purposes.   55    F.
    
    Tabular Disclosure of Contractual Obligations  As of December 31, 2019 our contractual obligations were as set
forth below:  Payments Due by PeriodTotal
    
    Less than
1 year
    
    1-3 years
    
    3-5 years
    
    More than 5 yearsA$
    
    A$
    
    A$
    
    A$
    
    A$Contractual ObligationsBank Borrowings
    
    915,300
    
    915,300
    
    -
    
    -
    
    -Lease liability
    
    1,168,607
    
    666,868
    
    501,739
    
    -
    
    -Total
    
    2,083,907
    
    1,582,168
    
    501,739
    
    -
    
    -  The Group had internal capital commitments for the investments
in two China subsidiaries of approximately A$1,755,456 (2018: A$3,189,000).   56    ITEM 6.
    
    DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES  A.
    
    Directors and Senior Management The following table sets forth our
directors and senior management and the positions they held as of the date of this annual report on Form 20-F. All of our directors
and senior management may be contacted at our registered office located at Level 7, 420 King William Street, Adelaide, SA 5000,
Australia.  Name
    
    
    
    PositionMr. Con UNERKOV (5)
    
    
    
    Chairman and Chief Executive OfficerDr. Man-Chung CHAN (3) (4)
    
    
    
    Independent Non-Executive DirectorMr. Wuhua ZHANG (6)
    
    
    
    Non-Executive DirectorMr. Uwe von PARPART (1) (2) (7)
    
    
    
    Independent Non-Executive DirectorDr. Heming CUI (1) (2) (13)
    
    
    
    Independent Non-Executive DirectorMr. Cecil HO (10)
    
    
    
    Chief Financial Officer and Joint Company SecretaryDr. Herbert Ying Chiu LEE (12)
    
    
    
    Executive ChairmanDr. Chang Yuen CHAN (8)
    
    
    
    Independent Non-Executive DirectorMr. Lawrence CHEN (1) (11)
    
    
    
    Independent Non-Executive DirectorMr. George YATZIS (9)
    
    
    
    Company SecretaryMr. William King To NG
    
    
    
    R&D Project DirectorMr. Tommy Wong
    
    
    
    Accounting ManagerMs. Lu Xia
    
    
    
    Corporate Services Executive  (1)
    Member of the Audit Committee.(2)
    Member of the Nomination and Remuneration Committee.(3)
    Chairman of the Audit Committee.(4)
    Chairman of the Nomination and Remuneration Committee.(5)
    Mr. Con Unerkov was appointed as CEO in April 2019 and director and chairman on May 31, 2019.(6)
    Mr. Wuhua Zhang was appointed as a director on August 13, 2018.(7)
    Mr. Uwe von Parpart was appointed as a director on December 17, 2019 and a member of the Audit Committee and the Nomination and Remuneration Committee.(8)
    Dr. Chang Yuen Chan resigned as an Independent Non-Executive Director on February 11, 2019. He also resigned as a member of the Audit Committee and Nomination and Remuneration Committee on the same date.(9)
    Mr. George Yatzis resigned as the Company Secretary on March 13, 2019, Mr. Yatzis was also the interim CFO for the period from October 10, 2018 to March 13, 2019.(10)
    Mr. Cecil Ho was appointed as the Chief Financial Officer and joint Company Secretary on March 15, 2019.(11)
    Mr. Lawrence Chen was appointed as a director on December 1, 2018 and he retired on May 31, 2019.(12)
    Dr. Herbert Ying Chiu Lee retired as a director and Chairman of the Board on May 31 2019 and on the same date, he also resigned from the Nomination and Remuneration Committee.(13)
    Dr. Heming CUI was appointed as a director on June 12, 2020 and a member of the Audit Committee and the Nomination and Remuneration Committee.  Mr. Con UNERKOV ("Mr.
Unerkov"), aged 51, is an Australian based businessman and former Director and CEO of the Company, re-joins the Company
with more than 25 years of local and international senior executive experience. Throughout his career, Mr. Unerkov has worked
as an executive and chief executive officer for a number of companies both in the private and public sectors. He has
significant experience in the financial markets with a focus on structuring, M&A and corporate financing for both private
and public companies, simultaneously providing parallel guidance for companies to gain market recognition, shareholder value
and liquidity. Mr. Unerkov was a director of the Company in the past and he re-joined the Company as the CEO in April 2019
and as director and chairman on May 31, 2019. Mr. Unerkov is the non-executive Chairman of Xped Limited, a company listed on the Australian Securities Exchange (“ASX”)
engaged in the Internet of Things (IoT) and healthcare sector.  Dr. Man-Chung CHAN ("Dr. MC Chan"),
aged 61, graduated from the Chinese University of Hong Kong in 1980 in Philosophy and Government & Public Administration. He
received his PhD in Computer Science from La Trobe University in Australia. From 1988 till 1994, he taught Computer Science at
University of New South Wales. From 1994, he has worked with the Computing Department of the Hong Kong Polytechnic University.
Dr. MC Chan was a computational logician and lately he worked in the broad field of knowledge management, artificial intelligence
and intellectual property of computing. His theory of functional unification has bridged the gap between modal logic, natural language and logic programming. He founded the Institute of Systems Management in 2003. He has extensive working relationship
with municipal government of Jiangsu, Hubei and Henan provinces in China. Mr. Wuhua ZHANG ("Mr. Zhang"),
aged 45, is a businessman with significant experience in the electronics industry with a specialty in the semiconductors product
field. Mr. Zhang holds a Masters of Technology Management and a Bachelor of Applied Science in Electronic Engineering. Mr. Zhang
has extensive experience in product and engineering management, product marketing and sales which was attained during his career
as an Account Executive at ST Microelectronics (Shenzhen) Company and as a Key Account Manager at Philips Semiconductors. Mr. Zhang's
primary responsibilities in those roles was to drive distribution sales for semiconductor products in China and discover any key
new opportunities.  Mr. Uwe
von PARPART ("Mr. Parpart"), aged 79, Mr. Parpart is currently the Chairman and Publisher of Asia Times Holding Limited,
a Hong Kong based English language news media publishing group, covering politics, economics, business and culture from an Asian
perspective. Previously, Mr. Parpart was the Executive Managing Director, Chief Strategist, and Head - Research of Reorient Group
Limited, a company listed on the Hong Kong Stock Exchange Limited. Mr. Parpart brings over three decades of experience in finance,
journalism, and academia to our Company. Before Reorient, he was the Chief Economist and Strategist at Cantor Fitzgerald HK Capital
Markets and prior to that a senior currency strategist at Bank of America. Mr. Parpart's experience in Asia dates back to the late
1980s, when he worked with the Mitsubishi Research Institute in Tokyo, and later served as an advisor to the Thailand's Prime Minister's
office. He has contributed to numerous magazines and publications; he was the founding editor of Asia Times from 1995 - 1997, a
contributing editor of Forbes magazine, and a columnist for Shinchosha Foresight magazine, Tokyo. He is a frequent guest on CNBC
and Bloomberg TV. After serving as an officer in the German Navy, Mr. Parpart received a Fulbright scholarship for doctoral studies
in Mathematics and Philosophy at the University of Pennsylvania. He had also taught at University of Pennsylvania and Swarthmore
College. Dr. Heming CUI (“Dr. Cui”),
aged 37,an assistant professor in Computer Science of the University of Hong Kong (“HKU”) since January 2015.
His research interests are in distributed system, IoT, big-data computing, and parallel computing, with a particular focus on creating
software infrastructures and tools to greatly improve the performance, reliability and security of real-world software. After joining
HKU, Dr. Cui’s research publications mainly contained in two segments: (1) transparent and efficient distributed fault-tolerance
systems, and (2) automated program analysis tools that can greatly improve the security of parallel and IoT software. Dr. Cui’s
research in HKU has led to a series of open source projects as well as publications in international conferences and journals on
computer systems (e.g., SOSP, NSDI, ATC, DSN, SOCC, ACSAC, SRDS, JSAC, and TPDS). Dr. Cui’s serves on the program committees
of international top systems, and networking conferences, including NSDI, ATC, SOCC, DSN, and ICDCS. Much of the source code and
evaluation results in Dr. Cui’s publications are adopted by global software companies, including RedHat, Android, Ubuntu,
and VMWare. Before joining HKU, Dr. Cui obtained his master and bachelor degrees in Computer Science from Tsinghua University in
Beijing, and PhD degree in Computer Science from Columbia University in New York. Dr. Cui is an independent director of Xped Limited, a company listed on the ASX engaged in the IoT and healthcare sector.   57    Mr. Cecil HO ('Mr.
Ho"), aged 59, brings to IMTE nearly 30 years of financial management experience in both public and private companies.
He most recently served as the CFO for Asia Times Holdings Limited, an online news publication in Hong Kong. Prior to that,
Mr. Ho held various senior finance positions in public companies listed on the Hong Kong Stock Exchange. Currently, Mr. Ho is
the CFO of Xped Limited, a company listed on the ASX engaged in IoT and healthcare sector. In his roles, Mr. Ho excelled in
strategy execution, shareholder value creation and risk management. Mr. Ho is a member of the Hong Kong Institute of
Certified Public Accountant and a Chartered Professional Accountant (CA). Mr. Ho holds a Bachelor of Commerce degree from the
University of British Columbia in Canada. Dr. Herbert Ying Chiu LEE
("Dr. Lee"), aged 67, is a seasoned businessman with significant experience in the Hong Kong and Chinese digital advertising
market sector and technology development. Over the past 17 years, Dr. Lee has extensive working experience in technology management
and 3D autostereoscopy. During these years, he has also invested in many technology startups and incubated them into successful
companies.  Dr. Lee received his Bachelor of Applied Science
in civil engineering in 1977 from the University of British Columbia, B.C., Canada. He obtained his training in structural design
in Hong Kong after his graduation. In 1982, he became a member of the Institute of Structural Engineers (MIStructE.) and subsequently
he obtained his Chartered Engineer title from the Engineering Council of the United Kingdom. In 2004, Dr. Lee finished his Master
of Technology Management degree at the Hong Kong University of Science and Technology. In 2011, Dr. Lee had
been conferred the degree of Doctor of Engineering from the Hong Kong Polytechnic University. In 2014, Dr. Lee was elected by the Council of the Association to be the Senior Fellowship of Asia College
of Knowledge Management. Dr. Lee retired from the Board on May 31, 2019. Dr. Chang Yuen CHAN ("Dr.
CY Chan"), aged 54, graduated from the University of Hong Kong with a PhD in computer simulation and holds a LLB from the
Manchester Metropolitan University. Dr. CY Chan is employed as a project manager at the Partner State Key Laboratory in ultra-precision
machining technology working as one of the key project investigators. His main research interests are in light-field imaging, bionic
vision, nano-machining mechanics, adaptive control and compensation, and the design of lubricating components for ultra-precision
machining. Dr. CY Chan also has expertise in the areas of optical design and computer simulation and is also proficient in software
development. He joins the Board as an advisor in the areas of technology evaluation and strategic decision making. Dr. CY Chan
resigned from the Board on February 11, 2019. Mr. Lawrence CHEN ("Mr.
Chen"), aged 60, has 10+ years experience in business management, and technology transfer. Mr. Chen migrated to Australia
in the late 1980 where he furthered his study in Western Sydney University, and he then went back to China in 2007 and started
his career in technology transfer. He was appointed as deputy director in a system management institute in Jiangyin China in 2008
and was working on setting up different technology projects. Notable projects included involving animation and software enhancement
of motion movies. With his extensive experiences and professional knowledge, he is now working in Australia as Deputy General Manager
for Asia Pacific Resource Enterprises Corporation since 2017. Mr. George YATZIS ("Mr.
Yatzis"), aged 43, has served as our Company Secretary since November 9, 2015 until his resignation on March 13, 2019. Mr.
Yatzis was also the interim CFO for the period from October 10, 2018 to March 13, 2019. Mr. Yatzis has worked and held Company
Secretary roles in a number of Public Companies listed on the Australian Securities Exchange ("ASX"). He is currently
a partner at global accounting firm BDO, working in the Adelaide office. Mr. Yatzis supports the board of directors in respect
to all administrative and compliance matters relating to the Australian Securities Exchange. Mr. Yatzis has a Bachelor of Commerce
from the University of Adelaide. He is also a member of Chartered Accountants Australia and New Zealand ("CAANZ"). Dr. William King To NG ("Dr.
Ng"), aged 48, has served as our R&D Project Director since April 2013. He has more than ten years of experience in the
3D photography, auto-stereoscopic display and 3D TVs. Starting in 2003, Dr. Ng was a postdoctoral fellow of the Department of Electrical
and Electronic Engineering, The University of Hong Kong. His research interests include visual communication, image-based rendering,
and video transmission. He has published more than 30 papers in international journals and conferences. Dr. Ng has a Doctor of
Philosophy degree and a Master of Philosophy degree in the Electrical and Electronic Engineering from The University of Hong Kong,
and a Bachelor of Engineering degree in Computer Engineering from the City University of Hong Kong. He is also a member of the
Institute of Electrical and Electronics Engineers (MIEEE). Mr. Tommy WONG(“Mr. Wong”),
aged 51, joined the Group since Nov 2019 as Accounting Manager. He has over 20 years experiences
in accounting, auditing, taxation and financial management gained from various sizeable listed companies in Hong Kong. He holds
a Bachelor’s degree of Business Administration from Hong Kong Baptist University. He is an associate member of the Hong Kong
Institute of Certified Public Accountants and a fellow member of Association of Chartered Certified Accountants. Ms. Lu XIA ("Ms. Xia"),
aged 34, is our corporate services executive. Ms. Xia most recently was the executive in charge of our audio production division.
Ms. Xia has worked for the Group since 2013 initially in the display division and then in business development. Ms. Xia has over
6 years of experience working in the audio and display industry, corporate affairs and general consulting. Ms. Xia has a Master
of Science degree from Northeastern University and a Bachelor Degree of Arts from Shenzhen University in China.  There are no orders, judgments, or decrees
of any governmental agency or administrator, or of any court of competent jurisdiction, revoking or suspending for cause any license,
permit or other authority to engage in the securities business or in the sale of a particular security or temporarily or permanently
restraining any of our officers or directors from engaging in or continuing any conduct, practice or employment in connection with
the purchase or sale of securities, or convicting such person of any felony or misdemeanor involving a security, or any aspect
of the securities business or of theft or of any felony. Nor are any of the officers or directors of any corporation or entity
affiliated with us so enjoined. There are no family relationships among
any of our officers and directors.  58    B.
    
    Compensation Remuneration Principles Remuneration of all executive and non-executive
directors and officers is determined by the Nomination and Remuneration Committee. We are committed to remunerating senior
executives and executive directors in a manner that is market-competitive and consistent with "Best Practice" including
the interests of shareholders. Remuneration packages are based on fixed and variable components, determined by the executives'
position, experience and performance, and may be satisfied via cash or equity. Non-executive directors are remunerated
out of the aggregate amount approved by shareholders and at a level that is consistent with industry standards. Non-executive directors
do not receive performance based bonuses and prior shareholder approval is required to participate in any issue of equity. No retirement
benefits are payable other than statutory superannuation, if applicable. Our remuneration policy is based on our
financial performance and on success of our development and commercializing of our technologies into products or solutions. We envisage our performance, in terms
of earnings, will indicate the success of our research and development. Shareholder wealth reflects this speculative and volatile
market sector for technology companies. The purpose of a performance bonus is
to reward individual performance in line with our objectives. Consequently, performance based remuneration is paid to an individual
where the individual's performance clearly contributes to a successful outcome. This is regularly measured in respect of performance
against key performance indicators. We use a variety of key performance indicators
to determine achievement, depending on the role of the executive being assessed. These include:  •
    
    Successful in achieving sales targets,•
    
    Successful contract negotiations,•
    
    Achievement of research project milestones within scheduled time and/or budget, and•
    
    Our share price reaching a targeted level on the ASX/NASDAQ over a period of time.  Executive Compensation The following table sets forth all
of the compensation awarded to, earned by or paid to each individual who served as directors in fiscal 2019.  Short-term Benefits
    
    Post Employment
    
    Share-based
    
    TotalBenefits
    
    PaymentsSalary &
    
    Other
    
    Super-
    
    Retirement
    
    Shares
    
    OptionsFees
    
    
    
    annulation
    
    BenefitsA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Con Unerkov (4)
    
    -
    
    683,944
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    683,944Uwe von Parpart (6)
    
    -
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    -Dr. Man-Chung Chan
    
    12,000
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    12,000Dr. Chang Yuen Chan (5)
    
    1,537
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    1,537Wuhua Zhang (1)
    
    18,000
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    18,000Lawrence Chen (2)
    
    -
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    -Dr. Herbert Ying Chiu Lee (3)
    
    -
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    -Total
    
    31,537
    
    683,944
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    715,301  (1)
    Mr. Wuhua Zhang was appointed as a director on August 13, 2018.(2)
    Mr. Lawrence Chen retired as a director on May 31, 2019.(3)
    Dr. Herbert Ying Chiu Lee retired as a director on May 31, 2019.(4)
    Mr. Con Unerkov was appointed as director and chairman of the Board on May 31, 2019. He is
    engaged under a service agreement provided by a  related company.(5)
        (6)
    Dr. Chang Yuen Chan resigned as a director on February 11, 2019.
        Mr. Uwe von Parpart was appointed as director on December 17, 2019  Service Agreements All the directors have formal
letters of appointment in place that have been executed which outline their roles and responsibilities. The agreements with
the Company have no fixed term and the directors' position can be terminated with cause without notice, and subject to the
Company's Constitution. The letters of appointment executed do not provide for any termination payment to directors in the
event of being terminated or removed from their positions. Our director, Mr. Con Unerkov, has a service agreement provided by
a related company. The service agreement can be terminated immediately for serious misconduct, and for all other cases, a 3
months' notice period. Please refer to the executive compensation table for details on director individual remuneration. Employee Share Option Plan The Company currently does not have an Employee Share Option
Plan.  Pension and Retirement Benefits  There was no amount set aside or accrued by
the Group to provide pension, retirement or similar benefits as at December 31, 2019 as these amounts were expensed and paid as
of this date.   59    C.
    
    Board Practices Introduction Our Board of Directors is elected by
and accountable to our shareholders. It currently consists of five directors, the executive Chairman and four non-executive directors.
The Chairman of our Board of Directors is responsible for the management of the Board of Directors and its functions. Election of Directors Directors are elected at our annual
general meeting of shareholders. Under our Constitution, a director, other than a managing director, must not hold office for more
than three years or beyond the third annual general meeting following his appointment (whichever is the longer period) without
submitting himself for re-election. Our Board of Directors has the power to appoint any person to be a director, either to fill
a vacancy or as an additional director (provided that the total number of directors does not exceed the maximum allowed by law),
and any director so appointed may hold office only until the next annual general meeting when he or she shall be eligible for election. Corporate Governance ASX Corporate Governance Principles Pursuant to an exception available
to FPIs, we, as an Australian company, are not required to comply with the corporate governance practices followed by U.S. companies
under NASDAQ listing standards. In Australia there are no defined corporate governance structures and practices that must be observed
by a company listed on Nasdaq. The practices we follow in lieu of NASDAQ's corporate governance requirements is the ASX Best Practice
Guide published by the ASX Corporate Governance Council. The Guide contains what are called the Recommendations which articulate
eight core principles which are intended to provide a reference point for companies about their corporate governance structure
and practices. It is not mandatory to follow the Recommendations. We believe that our established practices in the area of corporate
governance are in line with the spirit of the NASDAQ standards and provide adequate protection to our shareholders. We believe
that we are in material compliance with the ASX Corporate Governance Principles. Set forth below are material provisions of the
ASX corporate Governance Principles together with the reasons, where applicable, for variation therefrom.  1.
    Lay solid foundations for management and oversight. Companies should establish and disclose the respective roles and responsibilities of board and management.  2.
    Structure the Board to add value. Companies should have a board of an effective composition, size, and commitment to adequately discharge its responsibilities and duties. During the year ended December 31, 2019, we varied from the Recommendations in the following area:  a)
    No formal performance evaluation of the Board was conducted for the year ended December 31, 2019 as the Board believes that we are not of a size, nor are our financial affairs of such complexity, to warrant such an exercise. The Board recognizes the importance of performance evaluations and will continually assess the necessity and timing of future performance evaluation.  3.
    Act ethically and responsibly. Companies should actively promote ethical and responsible decision-making.  4.
    Safeguard integrity in financial reporting. Companies should have a structure to independently verify and safeguard the integrity of their financial reporting.  5.
    Make timely and balanced disclosure. Companies should promote timely and balanced disclosure of all material matters concerning the compliance.  6.
    Respect the rights of security holders. Companies should respect the rights of shareholders and facilitate the effective exercise of those rights.  7.
    Recognize and manage risk. Companies should establish a sound system of risk oversight and management and internal control.  8.
    Remunerate fairly and responsibly. Companies should ensure that the level and composition of remuneration is sufficient and reasonable and that its relationship to performance is clear.   60    Non-Executive and Independent Directors Australian law does not require a company
to appoint a certain number of independent directors to its board of directors or audit committee. However, under the ASX Corporate
Governance Principles and Recommendations, that a listed company have a majority of independent directors on its board of directors
and that the audit committee be comprised of independent directors. Our Board of Directors currently have five directors, of which
four are non-executive directors within the meaning of the ASX Corporate Governance Principles and Recommendations, and our audit
committee consists of such three non-executive directors. Accordingly, we currently comply with the Recommendations. Under NASDAQ Marketplace Rules, in general
a majority of our Board of Directors must qualify as independent directors within the meaning of the NASDAQ Marketplace Rules and
our audit committee must have at least three members and be comprised only of independent directors, each of whom satisfies the
respective "independence" requirements of NASDAQ and the U.S. Securities and Exchange Commission. The Board of Directors does not have
regularly scheduled meetings at which only independent directors are present. The Board of Directors does meet regularly and independent
directors are expected to attend all such meetings. Our practices are consistent with the Recommendations, in that the Recommendations
do not provide that independent directors should meet separately from the Board of Directors. Our Board of Directors has
determined that each of Dr. Man-Chung Chan, Mr. Uwe von Parpart and Dr. Heming Cui qualifies as an independent director under
the requirements of the NASDAQ Marketplace Rules and U.S. Securities and Exchange Commission. Committees of the Board of Directors Audit Committee. NASDAQ Marketplace
Rules require us to establish an audit committee comprised of at least three members, each of whom is financially literate and
satisfies the respective "independence" requirements of the U.S. Securities and Exchange Commission and NASDAQ and one
of whom has accounting or related financial management expertise at senior levels within a company. Our Audit Committee assists our Board
of Directors in overseeing the accounting and financial reporting processes of our Company and audits of our consolidated financial
statements, including the integrity of our consolidated financial statements, compliance with legal and regulatory requirements,
our independent registered public accounting firm’s qualifications and independence, and independent registered public accounting
firm, and such other duties as may be directed by our Board of Directors. The Audit Committee is also required to assess risk management. Our Audit Committee currently
consists of three board members, each of whom satisfies the "independence" requirements of the U.S. Securities and
Exchange Commission, NASDAQ Marketplace Rules and ASX Rules. Our Audit Committee is currently composed of Dr. Man-Chung Chan,
Mr. Uwe von Parpart and Dr. Heming Cui. Dr. Man-Chung Chan is the chairman of the audit committee. The audit committee meets
at least two times per year. Nomination and Remuneration Committee.
Our Board of Directors has established a Nomination and Remuneration Committee, which is comprised by majority of independent directors,
within the meaning of NASDAQ Marketplace Rules. The Nomination and Remuneration Committee is responsible for reviewing the salary,
incentives and other benefits of our directors, senior executive officers and employees, and to make recommendations on such matters
for approval by our Board of Directors. The Nomination and Remuneration Committee is also responsible for overseeing and advising
our Board of Directors about the adoption of policies that govern our compensation programs. Dr. Man-Chung Chan, Mr. Uwe von Parpart
and Dr. Heming Cui are the current members of the Nomination and Remuneration Committee, each qualified as an "independent
director" within the meaning of NASDAQ Marketplace Rules. Dr. Man-Chung Chan is the chairman of this committee.   61    Corporate Governance Requirements Arising from Our U.S. Listing
- the Sarbanes-Oxley Act of 2002, SEC Rules and the Nasdaq Capital Market Marketplace Rules Our shares will be quoted on the Nasdaq
Capital Market. The Sarbanes-Oxley Act of 2002, as well as related new rules subsequently implemented by the SEC, require companies
which are considered to be foreign private issuers in the U.S, such as us, to comply with various corporate governance practices.
In addition, Nasdaq has made certain changes to its corporate governance requirements for companies that are listed on the Nasdaq
Capital Market. These changes allow us to follow Australian "home country" corporate governance practices in lieu of
the otherwise applicable Nasdaq corporate governance standards, as long as we disclose each requirement of Rule 5600 that we do
not follow and describe the home country practice we follow in lieu of the relevant Nasdaq corporate governance standards. We intend
to take all actions necessary to maintain compliance with applicable corporate governance requirements of the Sarbanes-Oxley Act
of 2002, rules adopted by the SEC and listing standards of Nasdaq. We follow Australian corporate governance practices in lieu
of the corporate governance requirements of the Nasdaq Marketplace Rules in respect of:  •
    
    Nasdaq requirement under Rule 5620(c) that a quorum consist of holders of 33 1/3% of the outstanding ordinary shares - In Australia, we do not have an express requirement that each listed company have a quorum of any particular number of the outstanding ordinary shares, but instead allow a listed issuer to establish its own quorum requirements. Our quorum is currently two persons who are entitled to vote. We believe this quorum requirement is consistent with the requirements in Australia and is appropriate and typical of generally accepted business practices in Australia.  •
    
    The Nasdaq requirements under Rules 5605(b)(1) and (2) relating to director independence, including the requirements that a majority of the board of directors must be comprised of independent directors and that independent directors must have regularly scheduled meetings at which only independent directors are present -The Nasdaq and ASX definitions of what constitute an independent director are not identical and the requirements relating to the roles and obligations of independent directors are not identical. In Australia, unlike Nasdaq, permits an issuer to establish its own materiality threshold for determining whether a transaction between a director and an issuer affects the director's status as independent and it does not require that a majority of the issuer's board of directors be independent, as long as the issuer publicly discloses this fact. In addition, in Australia, it is not required that the independent directors have regularly scheduled meeting at which only independent directors are present. We believe that our Board composition is consistent with the requirements in Australia and that it is appropriate and typical of generally accepted business practices in Australia.  •
    
    The Nasdaq requirements under Rule 5605(c)(1) and (2) relating to the composition of the audit committee and the audit committee charter - The Nasdaq and Australia's Recommendations on audit committee requirements are not identical. Moreover, differences in the requirements of Nasdaq and Australia's Recommendation also arise because of the differences in the definitions of who constitutes an independent director, as discussed above. We have an audit committee and audit committee charter that are consistent with the requirements of the Australia Recommendation and which we believe are appropriate and typical of generally accepted business practices in Australia.  •
    
    The Nasdaq requirements under Rules 5605(d) that compensation of an issuer's officers must be determined, or recommended to the Board for determination, either by a majority of the independent directors, or a compensation committee comprised solely of independent directors, and that director nominees must either be selected, or recommended for the Board's selection, either by a majority of the independent directors, or a nomination committee comprised solely of independent directors. The Nasdaq compensation committee requirements are not identical to the Australia's remuneration and nomination committee requirements. We have established a remuneration committee consisting of a majority of independent directors and an independent chairperson, or publicly disclose that it has not done so. We have a Nomination and Remuneration Committee that is consistent with the requirements in Australia and which we believe is appropriate and typical of generally accepted business practices in Australia. Directors' Service Contracts For details of directors' service contracts
providing for benefits upon termination of employment, see "Item 6. Directors, Senior Management and Employees - B. Compensation
- Service Agreements."   62    Indemnification of Directors and Officers Our Constitution provides that, we
may indemnify a person who is, or has been, an officer of our Company, to the full extent permissible by law, out of our property
against any liability incurred by such person as an officer in defending proceedings, whether civil or criminal, and whatever their
outcome. In addition, our Constitution provides
that to the extent permitted by law, we may pay, or agree to pay, a premium in respect of a contract insuring a person who is or
has been an officer of our company or one of our subsidiaries against any liability:  •
    
    incurred by the person in his or her capacity as an officer of our company or a subsidiary of our company, and  •
    
    for costs and expenses incurred by that person in defending proceedings relating to that person acting as an officer of IMTE, whether civil or criminal, and whatever their outcome.  We maintain a directors'
and officers' liability insurance policy. We have established a policy for the indemnification of our directors and officers against
certain liabilities incurred as a director or officer, including costs and expenses associated in successfully defending legal
proceedings.  D.
    
    Employees As of December 31, 2017, we had 53 employees.
Of these employees, 3 were employed in administration and management located in the Australia, 11 employees in finance, administration
and management located in the Hong Kong and 23 employees in operations located in Hong Kong, 7 employees in finance, administration
and management located in the China and 9 employees in operations located in China. As of December 31, 2018, we had 74 employees.
Of these employees, 2 were employed in administration located in the Australia, 19 employees in finance, administration and management
located in the Hong Kong and 27 employees in operations located in Hong Kong, 8 employees in finance, administration and management
located in the China and 18 employees in operations located in China. As of December 31, 2019, we had 53 employees.
Of these employees, 2 were employed in administration located in the Australia, 11 employees in finance, administration and management
located in the Hong Kong and 14 employees in operations located in Hong Kong, 7 employees in finance, administration and management
located in the China and 19 employees in operations located in China. Each of our full-time employees enters
into an employment agreement. We also engage part-time employees from time to time. We may only terminate the employment of any
of our employees in accordance with the relevant employee's contract of employment. Our standard contract of employment for
full time and part-time employees provides that we can terminate the employment of an employee without notice for serious misconduct
or with between one to three months' notice without cause (as set out in the relevant employee's contract of employment). We can
terminate the employment of a casual employee without notice. For a summary of the key terms of employment of each of our senior
management, see "Item 6. Directors, Senior Management and Employees - B. Compensation - Service Agreements."  E.
    
    Share Ownership Beneficial Ownership of Senior Management and Directors The beneficial ownership of senior management and directors
are set out in Item 7 (A).   63    ITEM 7.
    
    MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS  A.
    
    Major Shareholders The following table sets forth information
regarding shares of our common stock beneficially owned as of December 31, 2019 by: (i) each of our directors; (ii) all the directors
as a group; and (iii) each person known by us to beneficially own five percent or more of the outstanding shares of our common
stock. Name/Address (1)
    
    Common
Stock
    Common
Stock
Options Exercisable Within
60 Days
    Common
Stock
Purchase Warrants/ Convertible
Note
Exercisable Within
60 Days
    Total Stock 
and Stock 
Based Holdings (1)
    %
        Ownership (2)---------------------------
    
    -------------
    --------------------
    --------------------
    ------------------
    ----------------Con Unerkov (3) (5)
    
    -
    -
    -
    -
    -Uwe von Parpart (4)Dr. Man-Chung Chan
    
    -
    -
    -
    -
    -Wuhua Zhang
    
    -
    -
    -
    -
    -All officers and directors as a Group (4 Persons)
    
    -
    -
    -
    -
    -Marvel Finance Limited (6)
    
    2,201,412
    -
    -
    2,201,412
    65.18%  Notes:(1)
    Except as otherwise indicated, based on information furnished by the owners, we believe that the beneficial owners listed above have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws where applicable and to the information contained in the footnotes to this table. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Unless otherwise indicated, the address of the beneficial owner is c/o Integrated Media Technology Limited at 7/F., Siu On Center, 188 Lockhart Road, Wanchai, Hong Kong.(2)
    For purposes of computing the percentage of outstanding common stocks held by each person or group of persons named above, any shares that such person or group has the right to acquire within 60 days are deemed outstanding but are not deemed to be outstanding for purposes of computing the percentage ownership of any other person or group. As of the date of the table above on December 31, 2019, there were 3,377,386 outstanding shares of our common stock and there was no options, warrants, and convertible notes outstanding entitling the holders to purchase any shares of our common stock owned by officers and/or directors of the Company.(3)
        (4)
    Appointed as a director of the Company on May 31,
        2019.
        Appointed as a director of the Company on December
        17, 2019.(5)
    The person holds less than one percent of the shares in the Company.(6)
    Marvel Finance Limited, a company wholly owned and controlled by Dr. Herbert Ying Chiu Lee.  As of May 25, 2020, we had 273,970 shares of
our Common Stock held by 245 shareholders in our share registrar in Australia, the host county and we had 3,389,130 shares of our
Common Stock held by 25 shareholders in our share registrar in USA.  The Company is not aware that it is directly
owned or controlled by another corporation, any foreign government or any other natural or legal person(s) severally or jointly.
The Company is not aware of any arrangement, the operation of which may result in a change of control of the Company.   64    B.
    
    Related Party Transactions  The following related party transactions, other
than employment matters and indemnification agreements between our directors and executive officers on the one hand and IMTE on
the other, occurred during the years ended December 31, 2019 and 2018 which are highlighted in the consolidated financial statements.   For the year ended December 31, 2019  During the year, the Group had the following
related party transactions:  a)  Purchase of products of A$523,650 from
related parties c)  Service fees paid of A$571,519 to related
parties d)  Interest income of A$115,678 by the ultimate
holding company e)  Company secretarial and service fees
paid of A$563,196 to related parties  During the year, the Group incurred expenditure of A$40,000 (excluding
GST) to BDO Administration (SA) Pty Ltd in respect to company secretarial and taxation services. George Yatzis, Company Secretary
of IMT is a director of BDO Administration (SA) Pty Ltd.  During the year ended 31 December 2019, the unsecured bank overdraft
and bank borrowings are personally guaranteed by our former director, Dr. Herbert Ying Chiu LEE. No charge has been requested for
this guarantee.   For the year ended December 31, 2018  During the year, the Group had the following related party transactions:  a)  Revenue received from related parties
of A$41,291 b)  Purchases of plant and equipment from
related parties of A$512,561 c)  Services fees paid of a related party
of A$595,645 d)  Finance costs charged of A$396,868 by
the ultimate holding company e)  Company secretarial,
taxation service and interim CFO fee totaling A$117,663 paid to a company where our former Company Secretary George Yatzis is a
partner  During the year, on December 12, 2018 the shareholders
of the Company approved the settlement of A$8,000,000 debt owed to MFL by the issuance of 708,500 shares in the Company. As at
December 31, 2108, MFL owns 2,201,412 shares, representing approximately 65.18% in the Company and is the ultimate controlling
party of the Group.  During the year, a Group company GOXD Technology
Limited entered into a loan agreement to lend A$1,085,820 (HK$6,000,000) to Marvel Finance Limited, its parent company. The loan
bears interest at 10% per annum, unsecured and payable on September 30, 2019. The Company accrued interest income of A$19,933 during
the year. As at December 31, 2018, Marvel Finance Limited owed to the Group A$904,850 (HK$ 5,000,000) in respect of the loan.  During the year, on December 1, 2018, a Group
company entered into a loan agreement with Oakridge (Hong Kong) Corporation Limited, a company owned and controlled by Dr. Herbert
Ying Chiu LEE, where the Group borrowed of A$1,664,924 (HK$9,200,000) from Oakridge (Hong Kong) Corporation Limited. Pursuant to
the loan agreement, the loan is non-interest bearing, unsecured and repayable on September 30, 2019.  During the year the Company used a 3,000 sq
feet administrative and accounting office in Hong Kong rent free. This office belongs to the family of Dr. Herbert Ying Chiu Lee.
There is no written lease agreement, but a general understanding that there will be a 3 months notice period to vacate this office.
The Company's responsibility is to pay for the utilities.  During the years ended 31 December 2017 and
2018, the unsecured bank overdraft and bank borrowings are personally guaranteed by our director, Dr. Herbert Ying Chiu LEE. No
charge has been requested for this guarantee.  C.
    
    Interests of Experts and Counsel Not applicable.   65    ITEM 8.
    
    FINANCIAL INFORMATION  A.
    
    Consolidated Statements and Other Financial Information Our audited consolidated financial
statements for the fiscal year ending December 31, 2019 are included in Item 18 of this annual report on Form 20-F. Legal Proceedings We are not involved in any significant
legal, arbitration or governmental proceedings. We are not aware of any pending significant legal, arbitration or governmental
proceedings with respect to IMTE. Dividend Distribution Policy We have never paid cash dividends to
our shareholders. We intend to retain future earnings for use in our business and do not anticipate paying cash dividends on our
ordinary shares in the foreseeable future. Any future dividend policy will be determined by the Board of Directors and will be
based upon various factors, including our results of operations, financial condition, current and anticipated cash needs, future
prospects, contractual restrictions and other factors as the Board of Directors may deem relevant.  B.
    
    Significant Changes  On November 23, 2017, our major shareholder,
Marvel Finance Limited, informed the Company that it had entered into a conditional share swap agreement with Vantage Ultimate
Limited, a wholly owned subsidiary of Sharing Economy International Inc. (Nasdaq: SEII) being 1,348,241 fully paid ordinary shares
at a price of US$10.00 per IMTE share (valuing the parcel of shares at US$13,482,410). In consideration for the transfer, Vantage
Ultimate Limited shall arrange for SEII to issue and allocate a certain number of its ordinary voting shares, representing 19.5%
of the then issued share capital of SEII, and a 5 year interest free promissory note with a principal amount of US$11,482,410 to
MFL. The agreement is subject to various conditions, including entry into a definitive agreement satisfactory to the parties and
legal and financial due diligence on or before February 28, 2018. On March 1, 2018, MFL has indicated as the timeline has ended
on February 2018, the conditional share swap agreement has lapsed pursuant to its terms therein.  On January 12, 2018, the Group entered into
the following agreements in connection with the issue of a HK$23 million (equivalent to approximately AU$3.8 million) Convertible
Bonds (the "Convertible Bonds"): (i) Subscription Agreement between Marvel Digital Limited, a wholly-owned subsidiary
of the Company (the "Issuer" or "MDL") and an independent third party entity ("Bondholder") for the
Convertible Bonds, (ii) Deed of Guarantee between the Company and the Bondholder to guarantee the payment obligations under the
Convertible Bonds and (iii) Put Option Deed between the Company and the Bondholder to repurchase any converted MDL Shares as described
below. On the same date, pursuant to the Subscription Agreement, the Convertible Bonds were issued by MDL to the Bondholder as
all the terms and conditions in respect of the Subscription of the Convertible Bonds were complied with and fulfilled.  Pursuant to the terms of the Convertible Bonds,
the Convertible Bonds are convertible in the circumstances set out therein into 75,000 ordinary shares of MDL ("MDL Shares")
at a conversion price of HK$306.67 per share, which is equivalent to 20% of the then enlarged issued share capital of MDL. The
Bondholder will have the right to convert the whole of their Convertible Bonds into ordinary shares of MDL at any time during the
period from January 3, 2018 to January 2, 2020. The period may be extended to a further 12 months subject to the mutual agreement
among MDL, Company and Bondholder. Unless previously redeemed or converted, the Convertible Bonds will be redeemed at 100% of their
principal amount on the Maturity Date.  On March 19, 2018, the Company announced
that it had entered into two sale distribution agreements valued at approximately A$14.8 million (RMB76 million) with two independent
customers. The agreements relate to sales of autostereoscopic 3D digital video walls and standalone digital signage. During 2018,
we sold A$922,753 under these agreements and these agreements have since expired.  On July 17, 2018, the Company issued
25,275 ordinary shares at a share price of US$14.45 (or about A$19.456) per share for a total subscription proceeds of A$491,750.  On August 6, 2018, Marvel Digital Limited
completed the Share Subscription Agreement (the "Subscription Agreement") entered into with an independent investor (the
"Investor"). Pursuant to the Subscription Agreement, MDL received a total of approximately A$2,573,000 (HK$15,000,000)
and issued to the Investor 15,790 ordinary shares in MDL (the "New Shares"). The New Shares represents approximately
5% of the then enlarged issued share capital of MDL and upon the issuance of the New Shares in MDL, IMTE's ownership interest in
MDL decreased from 100% to 95%.   66    On August 8, 2018, one of the its subsidiaries
of the Group, GOXD Technology Limited ("GOXD"), received approximately A$5,378,000 (US$4,000,000) under an Equity Investment
Agreement (the "Equity Agreement") executed with an independent investor (the "Investor"). Pursuant to the
Equity Agreement, GOXD agreed to issue to the Investor 20% of the enlarged share capital of GOXD for an aggregate subscription
price of approximately A$5,378,000 (US$4,000,000). GOXD is a subsidiary of Marvel Digital Limited ("MDL") which is a
subsidiary of IMTE. The proceeds from this issue of shares will be used by GOXD for marketing and promotion, product development,
operations, order fulfillment, and working capital. In addition, the Investor has agreed to spend no less than approximately A$1,345,000
(US$1 million) for marketing and customer care, call center and other functions as required under the GOXD brand by the end of
2019 in Japan. Upon the issuance of the shares in GOXD to the Investor, MDL's shareholding in GOXD will be decreased from 100%
to 80%.  On 12 December 2018, the shareholders
of the Company approved the settlement of A$8,000,000 of debt owed to Marvel Finance Limited, the ultimate holding company of the
Company, by the issuance of 708,500 shares in the Company.  In April 2019, the Company and Teko
International Limited ("Teko") entered into a distribution rights agreement for the territory of Hong Kong and Guangzhou
Province, China ("Territories") for a proprietary conductive film and 3rd generation Polymer Dispersed Liquid Crystal
("PDLC") film. Pursuant to the Agreement, the Company shall pay 50,000 IMTE shares upon the commissioning of one (1)
lamination line, (ii) for each of the next 3 years after the commissioning of the manufacturing line, IMTE shall pay Teko 50,000
IMTE shares should the annual revenue reach US$10 million or 100,000 IMTE shares should the revenue reach US$20 million, and (iii)
50,000 IMTE shares for each additional lamination line installed. In addition, for managing the operations, the Company will pay
to Teko 25% of the net profits from the sale of the PDLC fil products and the lamination operations. Mr. Con Unerkov and Mr. Cecil
Ho, both the CEO and CFO, respectively of IMTE, were then directors and shareholders of Teko.  On January 20, 2020, the Company entered into
a convertible note purchase agreement (the "Purchase Agreement") with CIMB Limited, an independent third party. Pursuant
to the Purchase Agreement, CIMB will loan HK$14 million (about US$1.8 million) under a convertible promissory note (the "Note")
with a coupon rate of 10% per annum, maturing in two years from the date of the Purchase Agreement. Interest is payable in cash
on a quarterly basis, with the first payment due by March 31, 2020. The Company, at its sole option, may pay interest in ordinary
shares based on 75% of the average of the closing prices of its ordinary shares for the five trading days prior to each end-of-quarter
interest due date. The holder of the Note has the right to convert the principal and accrued interest to ordinary shares of the
Company at a conversion price of US$5.00 per share over the term of the Note. The conversion price is subject to downward adjustment
if the Company sells ordinary shares below the conversion price within 12 months after the date of the Purchase Agreement. Both
the Company and the holder may request prepayment of the Note at any time without penalty after the Company receives financing
of a minimum of US$4 million. The holder of the Note is also entitled to piggyback registration rights.  On February 11, 2020, the Company and the holder
of the Note entered into a supplement agreement to the Note Purchase Agreement to limit the total number of ordinary shares of
the Company issuable upon conversion of the Note to no more than 19.99% of the total issued and outstanding ordinary shares of
the Company as of the date of Purchase Agreement. The supplement agreement further provides that the conversion price shall, in
no event, be less than US$1.50 per share, subject to regulatory or shareholder approval.  As announced in the Form 6K on February 24,
2020, on February 20, 2020, the Company entered into a Securities Purchase Agreement for the sale of 158,730 ordinary shares of
the Company ("Ordinary Shares") and warrants ("Warrants") to purchase up to 126,984 ordinary shares ("Warrant
Shares") to an accredited investor ("Investor") at a price of US$6.30 per share (the "Cash Offering").
The Warrants will be exercisable for the period of 12 months from the date of issuance, at an exercise price of US$10.50 per Share.
The Cash Offering is for US$1 million and will generate a net cash proceeds of approximately US$920,000 after deducting estimated
expenses in connection with the offering. The Company intends to use the net cash proceeds for partially paying off debts to a
bondholder and general corporate purposes.  Pursuant to the Securities Purchase Agreement,
the Company may not, subject to certain exceptions, within 120 days of the closing, issue or enter into any agreement, other than
with the Investor, to issue any ordinary shares (or securities convertible into ordinary shares) with registration rights or involving
a drawdown 'off the shelf' on a variable rate transaction. Furthermore, the Investor a right of first participation, subject to
certain conditions and only as long as the Investor holds Warrants (which expire 12 months after issuance), to participate in an
amount of up to US$5 million in any debt or equity capital raising proposed by the Company.  Pursuant to the form of Warrant, if the VWAP
of the Company's ordinary shares on the trading day immediately prior to the exercise date is less than US$10.50, then the Warrants
may be exercised at such time by means of a cashless exercise where each Warrant exercised would receive one Share without any
cash payment to the Company.  On May 12, 2020, the Company issued the Warrant
Shares as a result of the exercise of Warrants. The Warrants were exercised by means of a cashless exercise where each Warrant
exercised would receive one Share without any cash payment to the Company as the VWAP of the Company's ordinary shares on the trading
day immediately prior to the exercise date was less than US$10.50 per Share.  In May 2020, the Company disposed its
research and development operation to independent third parties so that the Group could rationalize its operations and focus on
the marketing and sales of autostereoscopic 3D displays.   67    ITEM 9.
    
    THE OFFER AND LISTING  A.
    
    Offer and Listing Details  Nasdaq Capital Markets Our ordinary shares have traded on the Nasdaq Capital Markets since
August 4, 2017. The following table sets forth, for the periods indicated, the high and low market quotations for our ordinary
shares as quoted on the Nasdaq since being listed on the Nasdaq Capital Markets.  Per Ordinary Share (A$)High
    
    LowFiscal Year Ended December
        31,2017
    
    US$
    
    US$August 2017
    
    7.20
    
    6.00September 2017
    
    8.03
    
    7.34October 2017
    
    7.50
    
    7.12November 2017
    
    10.00
    
    6.00December 2017
    
    7.24
    
    5.60Fiscal Year Ended December
        31, 2018:First Quarter
    
    6.25
    
    3.19Second Quarter
    
    44.00
    
    1.85Third Quarter
    
    18.04
    
    8.38Fourth Quarter
    
    12.99
    
    4.01Fiscal Year Ended December 31, 2019:First Quarter
    
    18.00
    
    5.31Second Quarter
    
    15.51
    
    7.30Third Quarter
    
    10.26
    
    6.35Fourth Quarter
    
    11.82
    
    5.44Month Ended:July 2019
    
    10.26
    
    6.35August 2019
    
    8.84
    
    6.50September 2019
    
    8.60
    
    6.66October 2019
    
    7.50
    
    6.50November 2019
    
    8.71
    
    5.44December 2019
    
    11.82
    
    6.50January 2020
    
    9.9
    
    7.72February 2020
    
    8.5
    
    4.84March 2020
    
    5.49
    
    2.60April 2020
    
    5.24
    
    2.88May 2020
    
    4.37
    
    2.93  Australian Securities Exchange Our ordinary shares have traded on the ASX
since our initial public offering on February 22, 2013 to our delisting from the ASX on June 15, 2018.  B.
    
    Plan of Distribution Not applicable.  C.
    
    Markets Our ordinary shares are listed and
traded on the NASDAQ Capital Market and was traded on the Australian Securities Exchange Ltd., or ASX from February 2013 to June
15, 2018 when it was delisted from the ASX.  D.
    
    Selling Shareholders Not applicable.  E.
    
    Dilution Not applicable.  F.
    
    Expenses of the Issue Not applicable.   68    ITEM 10.
    
    ADDITIONAL INFORMATION  A.
    
    Share Capital As at the date of this Annual report,
there is no concept of authorized share capital and par value for companies incorporated in Australia. The Company can issue unlimited
number of Common Stock without par value. The Company only has one class of Common Stock. As at December 31, 2017, we had 2,643,611
Common Stock issued, outstanding and fully paid. On July 17, 2018, the Company issued
25,275 ordinary shares at a share price of US$14.45 (on about A$ 19.456) per share for a total subscription proceeds of A$491,750
for settlement of consultancy service payment. On December 12, 2018, the shareholder
of the Company approved the conversion of A$8,000,000 of debt owed to Marvel Finance Limited, the ultimate holding company, by
the issuance of 708,500 shares in the Company.  As at December 31, 2019, we had 3,377,386 Common Stock issued, outstanding
and fully paid.  On February 20, 2020 the Company completed
a Securities Purchase Agreement (“SPA”) and  issued 158,730 ordinary shares at a share price of USD6.30 (or about
A$) per share for a total subscription proceeds of USD1,000,000.  On May 12, 2020, the Company issued 126,984
ordinary shares as a result of the exercise of warrants (as describe more fully under Warrants below) issued under the SPA above.
The warrants were exercised by means of a cashless exercise pursuant to conditions in the form of warrant.  Common Stock  Each Common Stock entitles the holder thereof
to one vote at any meeting of IMTE's shareholders. The holder of Common Shares is entitled to receive if, as and when declared
by the Board, dividends in such amount as shall be determined by the Board. The holders of Common Shares have the right to receive
the Company's remaining property in the event of a liquidation, dissolution or winding up, whether voluntary or involuntary.  Warrants On February 20, 2020 the Company entered into
a SPA for the sale of 158,730 ordinary shares of the Company and warrants (“Warrants”) to purchase up to 126,984 ordinary
shares. The Warrants were exercisable for the period of 12 months from the date of issuance, at an exercise price of US$10.50 per
Share. If the VWAP of the Company’s ordinary shares on the trading day immediately prior to the exercise date is less than
US$10.50, then the Warrants may be exercised at such time by means of a cashless exercise where each Warrant exercised would receive
one Share without any cash payment to the Company.  On May 12, 2020, all the Warrants were exercised by means of a cashless
exercise.  Options  The Company has no share options outstanding at the date of this
Annual report.  B.
    
    
    Memorandum and Articles of Association  Incorporated by reference to our registration
statement on Form 20-F filed on July 21, 2017.  C.
    
    Material Contracts  Except for contracts entered into in the ordinary
course of business, the only contracts entered into by IMTE within two years immediately preceding this Annual report that are
still in effect, which may be regarded as material are as follows:  None.   69    D.
    
    
    
    Exchange Controls  Australia has largely abolished exchange controls
on investment transactions. The Australian dollar is freely convertible into U.S. dollars. In addition, there are currently no
specific rules or limitations regarding the export from Australia of profits, dividends, capital or similar funds belonging to
foreign investors, except that certain payments to non-residents must be reported to the Australian Transaction Reports and Analysis
Centre, which monitors such transaction, and amounts on account of potential Australian tax liabilities which may be required to
be withheld unless a relevant taxation treaty can be shown to apply. Article 11.8 of the free trade agreement between Australia
and the US provides that all transfers relating to a covered investment is to be made freely and without delay into and out of
each territory. Such transfers include inter alia contributions to capital, including the initial contribution; profits,
dividends, capital gains and proceeds from the sale of all or any part of the covered investment or from the partial or complete
liquidation of the covered investment.  The Foreign Acquisitions and Takeovers
Act 1975 Under Australian law, in certain circumstances
foreign persons are prohibited from acquiring more than a limited percentage of the shares in an Australian company without approval
from the Australian Treasurer. These limitations are set forth in the Australian Foreign Acquisitions and Takeovers Act, or
the Takeovers Act. Under the Takeovers Act, as currently
in effect, any foreign person, together with associates, or parties acting in concert, is prohibited (without approval) from acquiring
20% or more of the shares in any company having total assets of A$252 million or more (or A$1,094 million or more in case of private
(non-government) U.S. investors). "Associates" is a broadly defined term under the Takeovers Act and includes:  •
    
    spouses, lineal ancestors and descendants, and siblings;•
    
    any person with whom the person is acting, or proposes to act, in concert;  •
    
    partners, officers of companies, the company, employers and employees, and corporations;  •
    
    their shareholders related through substantial shareholdings or voting power;  •
    
    corporations whose directors are controlled by the person, or who control a person; and  •
    
    associations between trustees and substantial beneficiaries of trust estates. In addition, a foreign person may not
acquire shares in a company having total assets of A$252 million or more (or A$1,094 million or more in case of private (non-government)
U.S. investors) if, as a result of that acquisition, the total holdings of all foreign persons and their associates will exceed
40% in aggregate without the approval of the Australian Treasurer. If the necessary approvals are not obtained, the Treasurer may
make an order requiring the acquirer to dispose of the shares it has acquired within a specified period of time. At present, we
do not have total assets of A$252million or more. At this time, our total assets do not exceed any of the above thresholds and
therefore no approval would be required from the Australian Treasurer. Nonetheless, should our total assets exceed the threshold
in the future, we will be mindful to monitor the holdings for foreign persons (together with the associates) to ensure that the
thresholds will not be exceeded without the Australian Treasurer's approval. Each foreign person seeking to acquire
holdings in excess of the above caps (including their associates, as the case may be) would need to complete an application form
setting out the proposal and relevant particulars of the acquisition/shareholding. The Australian Treasurer then has 30 days to
consider the application and make a decision. However, the Australian Treasurer may extend the period by up to a further 90 days
by publishing an interim order. The Australian Treasurer has issued a guideline titled Australia's Foreign Investment Policy
which provides an outline of the policy. As for the risk associated with seeking approval, the policy provides that the Treasurer
will reject an application if it is contrary to the national interest. If the level of foreign ownership
exceeds 40% at any time (or if one individual not ordinarily resident in Australia, a foreign corporation or a foreign
government holds at least 20%), we would be considered a foreign person under the Takeovers Act. In such event, we would be
required to obtain the approval of the Australian Treasurer for our company, together with our associates, to acquire (i)
more than 20% of an Australian company or business with assets totaling over A$252 million (or A$1,094 million if we were
considered a private US investor); or (ii) any direct or indirect ownership in certain real estate interests.  The percentage of foreign ownership in
our company would also be included in determining the foreign ownership of any Australian company or business in which we may choose
to invest. Since we have no current plans for any such investments or acquisitions and do not currently own any relevant real estate
interests, any such approvals required to be obtained by us as a foreign person under the Takeovers Act will not affect our current
or future ownership or lease of real estate interests in Australia. Our Constitution does not contain any
additional limitations on a non-resident's right to hold or vote our securities. Australian law requires the transfer
of shares in our company to be made in writing. No stamp duty will be payable in Australia on the transfer of ordinary shares quoted
on the NASDAQ.   70    The Financial Transactions Reports Act
1988  The Financial Transactions
Reports Act 1988 (Cth) is an act of the Parliament of the Commonwealth of Australia, designed to facilitate the administration
and enforcement of Australia's taxation laws. It provides for the reporting of certain financial transactions and transfers, including
the export or import of currency exceeding $10,000 to Australian Transaction Reports and Analysis Centre.  The Income Tax
Assessment Act of 1936 and the Income Tax Assessment Act of 1997 (collectively, the "Tax Act")  The Income Tax
Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth) (collectively, the " Tax Act ")
is the principal law governing the imposition of Federal taxes in Australia (except goods and services tax and a number of specific
taxes such as fringe benefits tax).  Under the Tax Act,
in some circumstances overseas residents are obliged to pay income tax in Australia on income derived from Australian sources or
property.  E.
    
    Taxation  The following is a summary of the current tax
laws of the U.S. (including the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed regulations
thereunder, published rulings and court decisions) and Australia as they relate to us and our shareholders, including United States
and other non-Australian shareholders. The summary is based upon laws and relevant interpretations thereof in effect as of the
date of this annual report, all of which are subject to change, possibly on a retroactive basis. The discussion does not address
any aspects of U.S. taxation other than federal income taxation or any aspects of Australian taxation other than federal income
taxation, inheritance taxation, stamp duty and goods and services tax. Existing and prospective holders of
ordinary shares are advised to consult their own tax advisors with respect to the specific tax consequences to them of the purchase,
ownership and disposition of ordinary shares, including, in particular, the effect of any foreign, state or local taxes.  Australian Tax Consequences  Non-Australian residents may be liable to pay
Australian tax on income derived from Australian sources. One mechanism by which that tax is paid (for non-residents who have no
permanent establishment or fixed base in Australia or where the income is not connected with a permanent establishment or fixed
base) is known as withholding tax. Dividends paid by a resident Australian company to a resident of the United States of America
who is entitled to the benefits of the Australia/US double tax treaty and is beneficially entitled to the dividends are subject
to withholding tax at the rate of 15% to the extent the dividends are ‘unfranked'. The rate of withholding tax on dividends
is normally 30%, but since the United States has concluded a double tax treaty agreement with Australia, the rate is reduced to
15% where the benefits of the treaty apply. It should be noted, however, that under Section 128B(3) of the Income Tax Assessment
Act 1936 (Cth), to the extent that dividends paid to non-residents have been franked (generally where a company pays tax itself),
such dividends are exempt from withholding tax. "Franked dividends" is the expression given to dividends when the profits
out of which those dividends are paid have been taxed at company level and such tax is allocated to the dividend. Accordingly,
an Australian company paying fully franked dividends to a non-resident is not required to deduct any withholding tax. Dividends
on which withholding tax has been paid are generally not subject to any further Australian tax. In other words, the withholding
tax should represent the final Australian tax liability in relation to those dividends. The pertinent provisions of the double
tax treaty between Australia and the United States provide that dividends are primarily liable for tax in the country of residence
of the beneficial owner of the dividends. However, the source country, in this case Australia, may also tax them, but in such case
the tax will be limited to 15% if the benefits of the treaty apply. Where the beneficial owner is a United States resident corporation
that directly holds at least 10% of the voting power in us, the tax will be limited to 5%. The 15% limit does not apply to dividends
derived by a resident of the United States of America who has a permanent establishment or fixed base in Australia, if the holding
giving rise to the dividends is effectively connected with that establishment or base. Such dividends are taxed on a net assessment
basis as business income or independent personal services income as the case may be. We have not paid any cash dividends
since our inception and we do not anticipate the payment of cash dividends in the foreseeable future. See "Item 8.A. Financial
Statements and Other Financial Information–Dividend Policy." Capital gains tax in Australia is payable
on net assessable ‘real gains' over the period in which the shares have been held, that is, the difference between the selling
price and the total cost price calculated under Australian tax law. In some cases the cost price may be indexed for inflation,
or, if the shares have been held for more than one year, certain taxpayers can, with respect to shares held for more than one year,
be eligible for a discount of up to 50% of the gross gain. Capital losses may be available to offset capital gains.   71    Stamp Duty  Any transfer of shares through trading on the
NASDAQ, whether by Australian residents or foreign residents, should not be subject to stamp duty.  Australian Death Duty  Australia does not have estate or death duties.
Generally no capital gains tax liability is realized upon the inheritance of a deceased person's shares. The disposal of inherited
shares by beneficiaries, may, however, give rise to a capital gains tax liability.  Goods and Services Tax  The issue or transfer of shares will not incur
Australian goods and services tax and does not require a stockholder to register for Australian goods and services tax purposes.  U.S. Federal Income Tax Considerations  The following discussion summarizes the principal
U.S. federal income tax considerations relating to the purchase, ownership and disposition of our ordinary shares by a U.S. holder
(as defined below) holding such shares as capital assets (generally, property held for investment). This summary is based on the
Internal Revenue Code of 1986, as amended (the "Code"), Treasury regulations, administrative pronouncements of the U.S.
Internal Revenue Service (the "IRS") and judicial decisions, all as in effect on the date hereof, and all of which are
subject to change (possibly with retroactive effect) and to differing interpretations. This summary does not describe any state,
local or non-U.S. tax law considerations, or any aspect of U.S. federal tax law other than income taxation; U.S. holders are urged
to consult their own tax advisors regarding such matters. This summary does not purport to address
all material federal income tax consequences that may be relevant to a holder of ordinary shares or warrants. This summary does
not take into account the specific circumstances of any particular investors, some of which (such as tax-exempt entities, banks
or other financial institutions, insurance companies, broker-dealers, traders in securities that elect to use a mark-to-market
method of accounting for their securities holdings, regulated investment companies, real estate investment trusts, U.S. expatriates,
investors liable for the alternative minimum tax, partnerships and other pass-through entities, investors that own or are treated
as owning 10% or more of our voting stock, investors that hold the ordinary shares as part of a straddle, hedge, conversion or
constructive sale transaction or other integrated transaction, and U.S. holders whose functional currency is not the U.S. dollar)
may be subject to special tax rules  . This discussion does not address U.S. federal tax laws other than those
pertaining to U.S. federal income taxation (such as estate or gift tax laws or the Medicare tax on investment income), nor does
it address any aspects of U.S. state or local or non-U.S. taxation. As used below, a "U.S. Holder"
is a beneficial owner of an ordinary share that is, for U.S. federal income tax purposes, (i) a citizen or resident alien
individual of the United States, (ii) a corporation (or an entity taxable as a corporation) created or organized under the
law of the United States, any State thereof or the District of Columbia, (iii) an estate, the income of which is subject to
U.S. federal income tax without regard to its source, or (iv) a trust if (1) a court within the United States is able
to exercise primary supervision over the administration of the trust, and one or more U.S. persons have the authority to control
all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable U.S. Treasury Regulations
to be treated as a U.S. person. For purposes of this discussion, a "Non-U.S. Holder" is a beneficial owner of an ordinary
share or warrant that is (i) a non-resident alien individual, (ii) a corporation (or an entity taxable as a corporation)
created or organized in or under the law of a country other than the United States or a political subdivision thereof or (iii) an
estate or trust that is not a U.S. holder. This discussion does not address any aspect of U.S. federal gift or estate tax, or state,
local or non-U.S. tax laws. Additionally, the discussion does not consider the tax treatment of partnerships or other pass-through
entities or persons who hold ordinary shares through such entities. If a partnership (including for this purpose any entity treated
as a partnership for U.S. federal tax purposes) is a beneficial owner of ordinary shares or warrants, the U.S. federal tax treatment
of a partner in the partnership generally will depend on the status of the partner and the activities of the partnership. A holder
of ordinary shares or warrants that is a partnership and partners in that partnership are urged to consult their own tax advisers
regarding the U.S. federal income tax consequences of purchasing, holding and disposing of ordinary shares or warrants. We have not sought a ruling from the
IRS or an opinion of counsel as to any U.S. federal income tax consequence described herein. The IRS may disagree with the description
herein, and its determination may be upheld by a court.   72    GIVEN THE COMPLEXITY OF THE TAX LAWS AND BECAUSE THE TAX
CONSEQUENCES TO ANY PARTICULAR INVESTOR MAY BE AFFECTED BY MATTERS NOT DISCUSSED HEREIN, PROSPECTIVE INVESTORS ARE URGED TO
CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE SPECIFIC TAX CONSEQUENCES OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF ORDINARY
SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF STATE, LOCAL AND NON-U.S. TAX LAWS, AS WELL AS U.S. FEDERAL TAX LAWS.  TO ENSURE COMPLIANCE WITH REQUIREMENTS
IMPOSED BY THE IRS UNDER TREASURY CIRCULAR 230, WE INFORM YOU THAT (1) ANY DISCUSSION OF U.S. FEDERAL INCOME TAX ISSUES
CONTAINED HEREIN (INCLUDING ANY ATTACHMENTS), UNLESS OTHERWISE SPECIFICALLY STATED, WAS NOT INTENDED OR WRITTEN TO BE USED, AND
CANNOT BE USED, FOR THE PURPOSE OF AVOIDING PENALTIES UNDER THE UNITED STATES INTERNAL REVENUE CODE, AND (2) EACH U.S. HOLDER SHOULD
SEEK ADVICE BASED UPON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.  Taxation of Distributions U.S. Holders.  In general,
subject to the passive foreign investment company ("PFIC") rules discussed below, a distribution on an ordinary
share will constitute a dividend for U.S. federal income tax purposes to the extent that it is made from our current or accumulated
earnings and profits as determined under U.S. federal income tax principles. If a distribution exceeds the amount of our current
and accumulated earnings and profits, it will be treated as a non-taxable reduction of basis to the extent of the U.S. Holder's
tax basis in the ordinary share on which it is paid, and to the extent it exceeds that basis it will be treated as a capital gain.
For purposes of this discussion, the term "dividend" means a distribution that constitutes a dividend for U.S. federal
income tax purposes. The gross amount of any dividend on
an ordinary share (which will include the amount of any Australian taxes withheld) generally will be subject to U.S. federal income
tax as foreign source dividend income and will not be eligible for the corporate dividends received deduction. The amount of a
dividend paid in Australian currency will be its value in U.S. dollars based on the prevailing spot market exchange rate in effect
on the day that the U.S. Holder receives the dividend, whether or not the dividend is converted into U.S. dollars. A U.S. holder
will have a tax basis in any distributed Australian currency equal to its U.S. dollar amount on the date of receipt, and any gain
or loss realized on a subsequent conversion or other disposition of the Australian currency generally will be treated as U.S. source
ordinary income or loss. If dividends paid in Australian currency are converted into U.S. dollars on the date they are received
by a U.S. Holder, the U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the
dividend income. U.S. Holders are urged to consult their own tax advisers regarding the treatment of any foreign currency gain
or loss if any Australian currency received by the U.S. Holder is not converted into U.S. dollars on the date of receipt. Subject to certain exceptions for short-term
and hedged positions, any dividend that a non-corporate holder receives on an ordinary share will be subject to tax rate of 20%
if the dividend is a "qualified dividend". A dividend on an ordinary share will be a qualified dividend if (i) either
(a) the ordinary shares are readily tradable on an established securities market in the U.S. or (b) we are eligible for
the benefits of a comprehensive income tax treaty with the U.S. that the U.S. Secretary of the Treasury determines is satisfactory
for purposes of these rules and that includes an exchange of information program, and (ii) we were not, in the year prior
to the year the dividend was paid, and are not, in the year the dividend is paid, a PFIC. The ordinary shares are listed on the
Nasdaq Capital Market, which should then qualify them as readily tradable on an established securities market in the United States.
In any event, the double tax treaty between Australia and the U.S. (the "Treaty") satisfies the requirements of clause
(i)(b), and, although the matter is not free from doubt, we believe that we should be a resident of Australia entitled to the benefits
of the Treaty. However, because the facts relating to our entitlement to the benefits of the Treaty can change over time, there
can be no assurance that we will be entitled to the benefits of the Treaty for any taxable year. As discussed above, qualified
dividends do not include dividends paid by a company which was a PFIC in the year prior to the year the dividend was paid, or in
the year the dividend is paid. Based on our audited financial statements and relevant market and shareholder data, we believe we
were not a PFIC for U.S. federal income tax purposes for our December 31, 2019 taxable year. Based on our audited consolidated
financial statements and our current expectations regarding the value and nature of our assets, the sources and nature of our income,
and relevant market and shareholder data, we do not expect that we could be classified as a PFIC for our December 31, 2019 taxable
year. Given that the determination of PFIC status involves the application of complex tax rules, and that it is based on the nature
of our income and assets from time to time, no assurances can be provided that we will not be considered a PFIC for any past or
future taxable year. Moreover, as described in the section below entitled "Passive Foreign Investment Company Rules,"
if we were a PFIC in a year while a U.S. Holder held an ordinary share, and if the U.S. Holder has not made a qualified electing
fund election effective for the first year the U.S. Holder held the ordinary share, the ordinary share remains an interest in a
PFIC for all future years or until such an election is made. The IRS takes the position that that rule will apply for purposes
of determining whether an ordinary share is an interest in a PFIC in the year a dividend is paid or in the prior year, even if
the Company does not satisfy the tests to be a PFIC in either of those years.   73    Even if dividends on the ordinary shares would
otherwise be eligible for qualified dividend treatment, in order to qualify for the reduced qualified dividend tax rates, a non-corporate
holder must hold the ordinary share on which a dividend is paid for more than 60 days during the 120-day period beginning 60 days
before the ex-dividend date, disregarding for this purpose any period during which the non-corporate holder has an option to sell,
is under a contractual obligation to sell or has made (and not closed) a short sale of substantially identical stock or securities,
is the grantor of an option to buy substantially identical stock or securities or, pursuant to Treasury regulations, has diminished
their risk of loss by holding one or more other positions with respect to substantially similar or related property. In addition,
to qualify for the reduced qualified dividend tax rates, the non-corporate holder must not be obligated to make related payments
with respect to positions in substantially similar or related property. Payments in lieu of dividends from short sales or other
similar transactions will not qualify for the reduced qualified dividend tax rates. A non-corporate holder that receives an extraordinary
dividend eligible for the reduced qualified dividend rates must treat any loss on the sale of the stock as a long-term capital
loss to the extent of the dividend. For purposes of determining the amount of a non-corporate holder's deductible investment interest
expense, a dividend is treated as investment income only if the non-corporate holder elects to treat the dividend as not eligible
for the reduced qualified dividend tax rates. Special limitations on foreign tax credits with respect to dividends subject to the
reduced qualified dividend tax rates apply to reflect the reduced rates of tax. The U.S. Treasury has announced its
intention to promulgate rules pursuant to which non-corporate holders of stock of non-U.S. corporations, and intermediaries
though whom the stock is held, will be permitted to rely on certifications from issuers to establish that dividends are treated
as qualified dividends. Because those procedures have not yet been issued, it is not clear whether we will be able to comply with
them. Non-corporate holders of ordinary shares
are urged to consult their own tax advisers regarding the availability of the reduced qualified dividend tax rates in the light
of their own particular circumstances. Any Australian withholding tax will
be treated as a foreign income tax eligible for credit against a U.S. Holder's U.S. federal income tax liability, subject to generally
applicable limitations under U.S. federal income tax law. For purposes of computing those limitations separately under current
law for specific categories of income, a dividend generally will constitute foreign source "passive category income"
or, in the case of certain holders, "general category income". A U.S. Holder will be denied a foreign tax credit with
respect to Australian income tax withheld from dividends received with respect to the ordinary shares to the extent the U.S. Holder
has not held the ordinary shares for at least 16 days of the 30-day period beginning on the date which is 15 days before the ex-dividend
date or to the extent the U.S. Holder is under an obligation to make related payments with respect to substantially similar or
related property. Any days during which a U.S. Holder has substantially diminished its risk of loss on the ordinary shares are
not counted toward meeting the 16-day holding period required by the statute. The rules relating to the determination of the
foreign tax credit are complex, and U.S. Holders are urged to consult with their own tax advisers to determine whether and to what
extent they will be entitled to foreign tax credits as well as with respect to the determination of the foreign tax credit limitation.
Alternatively, any Australian withholding tax may be taken as a deduction against taxable income, provided the U.S. Holder takes
a deduction and not a credit for all foreign income taxes paid or accrued in the same taxable year. In general, special rules will
apply to the calculation of foreign tax credits in respect of dividend income that is subject to preferential rates of U.S. federal
income tax. Non-U.S. Holders.  A dividend
paid to a Non-U.S. Holder on an ordinary share will not be subject to U.S. federal income tax unless the dividend is effectively
connected with the conduct of trade or business by the non-U.S. Holder within the United States (and is attributable to a permanent
establishment or fixed base the Non-U.S. Holder maintains in the United States if an applicable income tax treaty so requires as
a condition for the Non-U.S. Holder to be subject to U.S. taxation on a net income basis on income from the ordinary share). A
Non-U.S. Holder generally will be subject to tax on an effectively connected dividend in the same manner as a U.S. Holder. A corporate
Non-U.S. Holder may also be subject under certain circumstances to an additional "branch profits tax," the rate of which
may be reduced pursuant to an applicable income tax treaty.  Taxation of Capital Gains  U.S. Holders.  Subject to the passive
foreign investment company rules discussed below, on a sale or other taxable disposition of an ordinary share, a U.S. Holder
will recognize capital gain or loss in an amount equal to the difference between the U.S. Holder's adjusted basis in the ordinary
share and the amount realized on the sale or other disposition, each determined in U.S. dollars. Such capital gain or loss will be long-term
capital gain or loss if at the time of the sale or other taxable disposition the ordinary share has been held for more than one
year. In general, any adjusted net capital gain of an individual is subject to a federal income tax rate of 20%. Capital gains
recognized by corporate U.S. Holders generally are subject to U.S. federal income tax at the same rate as ordinary income. The
deductibility of capital losses is subject to various limitations.   74    Any gain a U.S. Holder recognizes generally
will be U.S. source income for U.S. foreign tax credit purposes, and, subject to certain exceptions, any loss will generally be
a U.S. source loss. If an Australian tax is withheld on a sale or other disposition of an ordinary share, the amount realized will
include the gross amount of the proceeds of that sale or disposition before deduction of the Australian tax. The generally applicable
limitations under U.S. federal income tax law on crediting foreign income taxes may preclude a U.S. Holder from obtaining a foreign
tax credit for any Australian tax withheld on a sale of an ordinary share. The rules relating to the determination of the
foreign tax credit are complex, and U.S. Holders are urged to consult with their own tax advisers regarding the application of
such rules. Alternatively, any Australian withholding tax may be taken as a deduction against taxable income, provided the U.S.
Holder takes a deduction and not a credit for all foreign income taxes paid or accrued in the same taxable year. Non-U.S. Holders.  A Non-U.S.
Holder will not be subject to U.S. federal income tax on a gain recognized on a sale or other disposition of an ordinary share
unless (i) the gain is effectively connected with the conduct of a trade or business by the Non-U.S. Holder within the United
States (and is attributable to a permanent establishment or fixed base that the Non-U.S. Holder maintains in the United States
if an applicable income tax treaty so requires as a condition for the Non-U.S. Holder to be subject to U.S. taxation on a net income
basis on income from the ordinary share), or (ii) in the case of a Non-U.S. Holder who is an individual, the Non-U.S. Holder
is present in the United States for 183 or more days in the taxable year of the sale or other disposition and certain other conditions
apply. Any effectively connected gain of a corporate Non-U.S. Holder may also be subject under certain circumstances to an additional
"branch profits tax", the rate of which may be reduced pursuant to an applicable income tax treaty.  Passive Foreign Investment Company Rules A special set of U.S. federal income
tax rules applies to a foreign corporation that is a PFIC for U.S. federal income tax purposes. As noted above, based on our audited
consolidated financial statements and relevant market and shareholder data, we believe we were not a PFIC for U.S. federal income
tax purposes for our December 31, 2019 taxable year. Moreover, given that the determination of PFIC status involves the application
of complex tax rules, and that it is based on the nature of our income and assets from time to time, no assurances can be provided
that we will be considered a PFIC for any future taxable year. In general, a foreign corporation is
a PFIC if at least 75% of its gross income for the taxable year is passive income or if at least 50% of its assets for the taxable
year produce passive income or are held for the production of passive income. In general, passive income for this purpose means,
with certain designated exceptions, dividends, interest, rents, royalties (other than certain rents and royalties derived in the
active conduct of trade or business), annuities, net gains from dispositions of certain assets, net foreign currency gains, income
equivalent to interest, income from notional principal contracts and payments in lieu of dividends. The determination of whether
a foreign corporation is a PFIC is a factual determination made annually and is therefore subject to change. Subject to exceptions
pursuant to certain elections that generally require the payment of tax, once stock in a foreign corporation is classified as stock
in a PFIC in the hands of a particular shareholder that is a U.S. person, it remains stock in a PFIC in the hands of that shareholder. Unfavorable tax consequences for a
U.S. Holder can occur if we are treated as a PFIC for any year while a U.S. Holder owns ordinary shares. Certain of these tax consequences
can be mitigated with respect to a U.S. Holder's ordinary shares (but not a U.S. Holder's warrants) if the U.S. Holder makes, or
has made, a timely qualified electing fund election or election to mark to market the holder's ordinary shares, and such election
is in effect for the first taxable year during which the U.S. Holder owns ordinary shares that we are a PFIC. If we are treated
as a PFIC, and neither election is made, then contrary to the tax consequences described in "U.S. Federal Income Tax Considerations-Taxation
of Distributions" and "U.S. Federal Income Tax Considerations-Taxation of Capital Gains" above, in any year in which
the U.S. Holder either disposes of an ordinary share at a gain or receives one or more "excess distributions" in respect
of our ordinary shares, special rules apply to the taxation of the gain or the excess distributions. For purposes of these
rules, a U.S. Holder will be treated as receiving an "excess distribution" to the extent that actual or constructive
distributions received in the current taxable year exceed 125% of the average distributions (whether actual or constructive and
whether or not out of earnings and profits) received by such U.S. Holder in respect of our ordinary shares during the three preceding
years or, if shorter, the U.S. Holder's holding period. A disposition of an ordinary share, for purposes of these rules, includes
many transactions on which gain or loss is not realized under general U.S. federal income tax rules (but generally should
not include the exercise of a warrant, as discussed below). The gain or the excess distributions must be allocated ratably to each
day the U.S. Holder has held the ordinary share, as the case may be. Amounts allocated to each year are taxable as ordinary income
in their entirety (and are not eligible for the reduced qualified dividend rates) and not as capital gain, and amounts allocable
to prior years may not be offset by any deductions or losses. Amounts allocated to each such prior year are taxable at the highest
rate in effect for that year and are subject to an interest charge at the rates applicable to deficiencies for income tax for those
periods. In addition, a U.S. Holder's tax basis in an ordinary share that is acquired from a decedent would not receive a step-up
to fair market value as of the date of the decedent's death but instead would be equal to the decedent's basis, if lower.   75    The special PFIC rules described above
will not apply to a U.S. Holder's ordinary shares if the U.S. Holder makes a timely election, which remains in effect, to treat
us as a qualified electing fund, or QEF, for the first taxable year in which the U.S. Holder owns an ordinary share and in which
we are classified as a PFIC, provided that we comply with certain reporting requirements. Instead, a U.S. Holder that has made
a QEF election is required for each taxable year to include in income a pro rata share of our ordinary earnings as ordinary income
and a pro rata share of its net capital gain as long-term capital gain, subject to a separate election to defer payment of taxes,
which deferral is subject to an interest charge. In order for such a QEF election to be valid, we must provide U.S. Holders either
(1) a statement showing such U.S. Holder's pro rata share of our ordinary earnings and net capital gain (calculated for U.S.
tax purposes) for the Company's taxable year, (2) sufficient information to enable the U.S. Holder to calculate its pro rata
share for such year, or (3) a statement that the Company has permitted the U.S. Holder to inspect and copy its permanent books
of account, records, and such other documents as may be maintained by us that are necessary to establish that PFIC ordinary earnings
and net capital gain are computed in accordance with U.S. income tax principles. We have not yet determined whether, in years in
which we are classified as a PFIC, we will make the computations necessary to supply U.S. Holders with the information needed to
report income and gain pursuant to a QEF election. It is, therefore, possible that U.S. Holders would not be able to make or retain
that election in any year we are a PFIC. The QEF election is made on a shareholder-by-shareholder basis and once made, can only
be revoked with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed IRS Form 8621
(Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the information provided
in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the tax year to which the election
relates. Retroactive QEF elections may only be made by filing a protective statement with such return or with the consent of the
IRS. A U.S. Holder may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF
rules, but if deferred, any such taxes will be subject to an interest charge. If a U.S. Holder has elected the application
of the QEF rules to the U.S. Holder's ordinary shares, and the special tax and interest charge rules described in the
second preceding paragraph do not apply to such shares (because of a timely QEF election for the first tax year of the U.S. Holder's
holding period for such shares, or, as described below, a purge of the PFIC taint pursuant to a special purging election), any
gain realized on the disposition of an ordinary share generally will be taxable as capital gain and no interest charge will be
imposed. As discussed above, U.S. Holders of a QEF are currently taxed on their pro rata shares of the QEF's earnings and profits,
whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included
in income generally will not be taxable as a dividend. The tax basis of a U.S. Holder's shares in a QEF will be increased by amounts
that are included in income, and decreased by amounts distributed but not taxed as dividends, under the above rules. Similar basis
adjustments apply to property if by reason of holding such property the U.S. Holder is treated under applicable attribution rules as
owning shares in a QEF. If a QEF election is not made for the
first taxable year in which the U.S. Holder owns an ordinary share and in which we are a PFIC, certain elections can be made while
we continue to satisfy the definition of a PFIC that, combined with a QEF election, can cause the QEF election to be treated as
having been made for that first taxable year. Those elections may require the electing shareholder to recognize gain on a constructive
sale or to be taxable on the shareholder's share of certain undistributed profits of the foreign corporation. If gain or income
is recognized pursuant to one of those elections, the special PFIC rules set forth in the fourth preceding paragraph would
apply to that gain or income. Even if a QEF election ceases to apply because in a later taxable year we cease to satisfy the tests
to be a PFIC, the QEF election will apply again in any subsequent year in which the Company again satisfies the tests to be a PFIC.
Moreover, if a U.S. Holder sells all of the ordinary shares they own and later reacquires other ordinary shares, any QEF election
the U.S. Holder has made that remains in effect will apply to the ordinary shares acquired later. The applicable Treasury regulations
provide that the Commissioner of the IRS has the discretion to invalidate or terminate a QEF election if the U.S. Holder or we,
or an intermediary, fails to satisfy the requirements for the QEF election.   76    The special PFIC rules described in the fourth
preceding paragraph will not apply to a U.S. Holder's ordinary shares if the U.S. Holder elects to mark the U.S. Holder's ordinary
shares to market each year, provided that the ordinary shares are considered "marketable stock" within the meaning of
the applicable Treasury regulations. A U.S. Holder that makes this election will recognize as ordinary income or loss each year
an amount equal to the difference, if any, as of the close of the taxable year between the fair market value of the U.S. Holder's
ordinary shares and the U.S. Holder's adjusted tax basis in the ordinary shares. Losses would be allowed only to the extent of
net mark-to-market gain previously included in income by the U.S. Holder under the election for prior taxable years, reduced by
losses allowed in prior taxable years. If the mark-to-market election were made, then the special PFIC rules set forth in
the fourth preceding paragraph would not apply for periods covered by the election. In general, the ordinary shares will be marketable
stock within the meaning of the applicable Treasury regulations if they are traded, other than in de minimis quantities, on at
least 15 days during each calendar quarter on a "qualified exchange or other market" within the meaning of the applicable
Treasury regulations and certain other requirements are met. The Australian Securities Exchange is a qualified exchange within
the meaning of the applicable Treasury regulations. Thus, the ordinary shares should be "marketable stock" within the
meaning of the applicable Treasury regulations. If a U.S. Holder makes a mark-to-market election, but does not make that election
for the first taxable year in which the U.S. Holder owns an ordinary share and in which the Company is classified as a PFIC, and
if the U.S. Holder had not made a QEF election for that first such taxable year, the rules set forth in the fourth preceding
paragraph will apply to any distributions on an ordinary share in the year of the mark-to-market election, to any gain recognized
on an actual sale of an ordinary share in that year, and to any gain recognized in that year pursuant to the mark-to-market election.
The mark-to-market rules generally continue to apply to a U.S. Holder who makes the mark-to-market election, even in years
we do not satisfy the tests to be a PFIC. A U.S. Holder who owns ordinary shares
during a year in which we are classified as a PFIC generally will remain subject to the rules set forth in the fifth preceding
paragraph for all taxable years if the U.S. Holder has not made a QEF election or a mark-to-market election for the first taxable
year in which the U.S. Holder owns an ordinary share and in which we are classified as a PFIC. In that event, those rules will
apply to any gains on dispositions of ordinary shares and to any "excess distributions."  It is, however, possible
for a U.S. Holder to avoid this "once a PFIC, always a PFIC" result by electing to treat all of the U.S. Holder's ordinary
shares as sold for their fair market value as of the last day of the last taxable year we satisfy the tests to be a PFIC, provided
the statute of limitations has not run for that year. If a gain is recognized on that constructive sale, the rules set forth
in the fifth preceding paragraph would apply to that gain. If we are classified as a PFIC for a
taxable year, and, at any time during such taxable year, have a non-U.S. subsidiary that is classified as a PFIC, U.S. Holders
generally would be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred
tax and interest charge described in the sixth preceding paragraph, if we receive a distribution from, or dispose of all or part
of its interest in, the lower-tier PFIC. We have not yet determined whether, if we are classified as a PFIC, we would make the
computations necessary to supply U.S. Holders with the information needed to make or maintain a QEF election with respect to the
lower-tier PFIC. It is, therefore, possible that U.S. Holders would not be able to make or retain that election in any taxable
year that we are classified as a PFIC and has a non-U.S. subsidiary that is also classified as a PFIC. U.S. Holders are urged to
consult their own tax advisors regarding the tax issues raised by lower-tier PFICs. A dividend from a foreign corporation
that otherwise would qualify for reduced qualified dividend rates does not qualify for that rate if the foreign corporation is
a PFIC in either the taxable year of the dividend or the preceding taxable year. A U.S. Holder who owns (or is deemed
to own) shares in a PFIC during any taxable year, such U.S. Holder may have to file an IRS Form 8621 (whether or not a QEF
or mark-to-market election is made).  GIVEN THE COMPLEXITIES OF THE PFIC
RULES AND THEIR POTENTIALLY ADVERSE TAX CONSEQUENCES, U.S. HOLDERS OF ORDINARY SHARES ARE URGED TO CONSULT THEIR TAX ADVISERS ABOUT
THE PFIC RULES, INCLUDING THE CONSEQUENCES TO THEM OF MAKING A QEF ELECTION OR A MARK-TO-MARKET ELECTION WITH RESPECT TO THE ORDINARY
SHARES IN THE EVENT THAT THE COMPANY QUALIFIES AS A PFIC FOR ANY TAXABLE YEAR.   77    Information Reporting and Backup Withholding  U.S. Holders. Dividends paid on,
and proceeds from the sale or other disposition of, an ordinary share generally may be subject to information reporting requirements
and may be subject to backup withholding at the rate of 28% unless a U.S. Holder provides an accurate taxpayer identification number
or otherwise demonstrates that they are exempt. The amount of any backup withholding collected from a payment to a U.S. Holder
will be allowed as a credit against the U.S. Holder's U.S. federal income tax liability and may entitle the U.S. Holder to a refund,
provided that certain required information is submitted to the Internal Revenue Service. Under U.S. federal income tax law and
U.S. Treasury Regulations, certain categories of U.S. holders must file information returns with respect to their investment in,
or involvement in, a foreign corporation. U.S. holders are urged to consult with their own tax advisors concerning such reporting
requirements. Non-U.S. Holders. Non-U.S.
Holders generally will be exempt from these information reporting requirements and backup withholding tax but may be required to
comply with certain certification and identification procedures in order to establish their eligibility for exemption.  THE DISCUSSION ABOVE IS NOT INTENDED
TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSIDERATIONS APPLICABLE TO AN INVESTMENT IN ORDINARY SHARES. HOLDERS AND POTENTIAL
HOLDERS ARE URGED TO CONSULT THEIR TAX ADVISER(S) CONCERNING THE TAX CONSEQUENCES RELEVANT TO THEM IN THEIR PARTICULAR SITUATION.   F.
    
    Dividends and Paying Agents Not applicable.  G.
    
    Statement by Experts Not applicable.  H.
    
    Documents on Display We are subject to the reporting requirements
of the United States Securities and Exchange Act of 1934, as amended, or the Exchange Act, as applicable to "foreign private
issuers" as defined in Rule 3b-4 under the Exchange Act. As a foreign private issuer, we are exempt from certain provisions
of the Exchange Act. Accordingly, our proxy solicitations are not subject to the disclosure and procedural requirements of regulation
14A under the Exchange Act, and transactions in our equity securities by our officers and directors are exempt from reporting and
the "short-swing" profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not
required under the Exchange Act to file periodic reports and financial statements as frequently or as promptly as U.S. companies
whose securities are registered under the Exchange Act. However, we will file with the U.S. Securities and Exchange Commission
an annual report on Form 20-F containing financial statements that have been examined and reported on, with and opinion expressed
by an independent registered public accounting firm, and we will submit reports to the U.S. Securities and Exchange Commission
on Form 6-K containing (among other things) press releases and unaudited financial information for the first six months of each
fiscal year. We post our annual report on Form 20-F on our website promptly following the filing of our annual report with the
U.S. Securities and Exchange Commission. The information on our website is not incorporated by reference into this annual report. This document and the exhibits thereto
and any other document we file pursuant to the Exchange Act may be inspected without charge and copied at prescribed rates at the
U.S. Securities and Exchange Commission public reference room at 100 F Street, N.E., Room 1580, Washington D.C. 20549. You may
obtain information on the operation of the Securities and Exchange Commission's public reference room in Washington, D.C. by calling
the U.S. Securities and Exchange Commission at 1-800-SEC-0330. The U.S. Securities and Exchange Commission
maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding
registrants that make electronic filings with the U.S. Securities and Exchange Commission using its EDGAR (Electronic Data Gathering,
Analysis, and Retrieval) system. The documents concerning our Company
which are referred to in this document may also be inspected at the offices of our registered office located at Level 7, 420 King
William Street, Adelaide SA 5000, Australia.   78    I.
    
    Subsidiary Information At the date of this report, we have 9 subsidiaries as
follows:  Subsidiary Name
    Place of Incorporation
    % held
    Business scopeCIMC Marketing Pty Ltd
    Australia
    100% Direct
    Management services and tradingBinario Ltd
    British Virgin Islands
    100% Direct
    Investment holding companySmartglass Limited (Formerly Dragon Creative Ltd)
    Hong Kong
    100% Direct
    Sales and distribution of switchable glassGOXD Technology Limited
    Hong Kong
    76% Indirect
    Development and distribution of 3D digital picture framesMarvel Digital Ltd
    Hong Kong
    95% Indirect
    Development of 3D autostereoscopic display technology and investment holdingVisumotion International Ltd (to be renamed Cystar International Limited)
    Hong Kong
    95% Indirect
    Sale of software and provision of consultancy servicesMarvel Display Technology (Shenzhen) Limited (formerly known as Marvel Software (Shenzhen) Ltd)
    China, PRC
    95% Indirect
    Manufacturing and distribution of 3D products and provision of 3D consultancy servicesGOXD Dongguan Ltd
    China, PRC
    76% Indirect
    Design of 3D digital picture framesDigital Media Technology Ltd
    Labuan, Malaysia
    100% Indirect
    Sale and distribution of 3D and audio products   ITEM 11.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our cash and cash equivalents consist
primarily of cash and money market funds in Australia and Hong Kong currency. We invest our excess cash and cash equivalents in
interest-bearing accounts and term deposits with banks in Australia or Hong Kong. Our primary exposure to market risk is interest
income sensitivity, which is affected by changes in the general level of Australian and or Hong Kong interest rates. However,
because of the short-term nature of the instruments in our portfolio, a sudden change in market interest rates would not be expected
to have a material impact on our financial condition and/or results of operation. We are exposed to foreign currency risk
via our operation in Hong Kong and China and trade and other payables we hold. We are required to make certain payments in U.S.
dollars, Hong Kong dollars and Chinese Renminbi and other currencies. An adverse movement in end-of-period exchange rates would
have a material impact on our operating results.  ITEM 12.
    
    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES  A.
    
    Debt Securities Not applicable.  B.
    
    Warrants and Rights Not applicable.  C.
    
    Other Securities Not applicable.   79    PART II  ITEM 13.
    
    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES Not applicable.  ITEM 14.
    
    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS Not applicable.  ITEM 15.
    
    CONTROLS AND PROCEDURES  Disclosure Controls and Procedures  Management of the Company maintain disclosure
controls and procedures as such term is defined in Rules 13 a-15 (e) and 15d-15(e) under the Securities Exchange Act of 1934 as
amended (the "Exchange Act"), as amended, that are designed to ensure that information required to be disclosed in the
reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted
under the Exchange Act is accumulated and communicated to management, including the Executive Chairman and the Chief Financial
Officer, as appropriate, to allow timely decisions regarding required disclosure. Disclosure controls and procedures, no matter
how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives. Management has carried out an evaluation,
under the supervision and with the participation of the Executive Chairman and the Chief Financial Officer, of the effectiveness
of the disclosure controls and procedures as of December 31, 2019. Based on that evaluation, the Executive Chairman and Chief Financial
Officer concluded that the Company's disclosure controls and procedures were not effective as of December 31, 2019.  Management's Annual Report on Internal Control over Financial
Reporting  Management of the Company is responsible for
establishing and maintaining adequate internal control over financial reporting for the Company, as defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act. The Company's internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external
purposes in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board. A Company's internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of
the consolidated financial statements in accordance with IFRS as issued by the International Accounting Standards Board and that
receipts and expenditures of the Company are being made only in accordance with authorizations of our Board of Directors; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's
assets that could have a material effect on the consolidated financial statements.  A control system, no matter how well conceived
and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. In particular,
the design of a control system must be considered relative to their costs. Additionally, the design of a control system is based
in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed
in achieving its stated objectives under all potential future conditions. Due to its inherent limitations, internal control over
financial reporting may not prevent or detect all misstatements to the consolidated financial statements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  Management assessed the effectiveness of the
Company's internal control over financial reporting as of December 31, 2019 based on the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission ("COSO") (the "2013 Framework") Internal Control-Integrated
Framework. Based on this assessment, management concluded that the Company's internal control over financial reporting is not effective
as of December 31, 2019 under the COSO 2013 Framework.   80    Management's Annual Report on Internal Control over Financial
Reporting (Continued)  A material weakness is a deficiency, or combination
of deficiencies, that results in more than a remote likelihood that a material misstatement of annual or interim financial statements
will not be prevented or detected. In connection with the assessment described above, management identified the following control
deficiencies that represent material weaknesses at December 31, 2019:  i.
    inadequate segregation of duties due to limited number of personnel, which makes the reporting process susceptible to management override; and  ii.
    ineffective controls over period end financial disclosure and reporting processes.  Management believes that the material weaknesses
set forth in items (1) through (2) above did not have an effect on the Company's financial reporting during the year ended December
31, 2019.  Remediation of Material Weaknesses  A material weakness is a control deficiency
(within the meaning of the Public Company Accounting Oversight Board (“PCAOB”) Auditing Standard No. 5), or combination
of control deficiencies, that result in more than a remote likelihood that a material misstatement of the annual or interim financial
statements will not be prevented or detected. While management believes that the Company’s consolidated financial statements
previously filed in the Company’s SEC reports have been properly recorded and disclosed in accordance with IFRS, we have
designed and plan to implement, or in some cases have already implemented, the specific remediation initiatives described below:  •
    We plan to retain additional accounting personnel and continue to enhance our internal finance and accounting organizational structure.  •
    We are in the process of further enhancing the supervisory procedures to include additional levels of analysis and quality control reviews within the accounting and financial reporting functions.  While we now believe that these material weaknesses
are currently being addressed, we will continue our remediation efforts during fiscal year 2020.  Changes in Internal Control over Financial Reporting  There have been no significant changes in the
Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect
internal control over financial reporting during the period covered by this Annual Report.   81    ITEM 15T.
    
    CONTROLS AND PROCEDURES Not applicable.  ITEM 16.
    
    RESERVED Not applicable.  ITEM 16A.
    
    AUDIT COMMITTEE FINANCIAL EXPERT Not applicable.  ITEM 16B.
    
    CODE OF ETHICS We have adopted a code of ethics that
applies to our executive directors and chief financial officer. A copy of this Code of Ethics is available on the Company's website
at www.imtechltd.com . No waivers to this Code of Ethics were
granted to our executive directors or chief financial officer during the fiscal year ended December 31, 2019.  ITEM 16C.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES  On January 15, 2019 the Company appointed Ramirez
Jimenez International CPAs ("RJI") as our Principal Independent Registered Public Accountants engaged to audit our financial
statements for the year ended December 31, 2018.  Fee Category
    
    2019
    
    
    2018Audit Fees
    
    US$
    289,000
    
    
    US$
    34,000Audit-Related Fees
    
    US$
    -
    
    
    US$
    -Tax Fees
    
    US$
    -
    
    
    US$
    -All Other Fees
    
    US$
    -
    
    
    US$
    -   Audit Fees  This category consists of fees for professional
services rendered by our principal independent registered public accountant for the audit of our annual financial statements, review
of financial statements included in our interim reports and services that are normally provided by the independent registered public
accounting firms in connection with statutory and regulatory filings or engagements for those fiscal years.  Audit-Related Fees  This category consists of fees for assurance
and related services by our principal independent registered public accountant that are reasonably related to the performance of
the audit or review of our financial statements and are not reported above under "Audit Fees". The services for the fees
disclosed under this category include consultations concerning financial accounting and reporting standards.  Tax Fees  This category consists of fees for professional
services rendered by our principal independent registered public accountant for tax compliance, tax advice, and tax planning.  All Other Fees  This category consists of fees for services
provided by our principal independent registered public accountant other than the services described above.  Policy on Pre-Approval of Audit Services  The Audit Committee pre-approves all services,
including both audit and non-audit services, provided by our independent registered public accounting firm. All audit services
(including statutory audit engagements as required under local country laws) must be accepted by the Audit Committee before the
audit commences.  Each year, management and the independent registered
public accounting firm will jointly submit a pre-approval request, which will list each known and/or anticipated audit and non-audit
service for the upcoming calendar year and which will include associated budgeted fees. The Audit Committee will review the requests
and approve a list of annual pre-approved non-audit services.   82    ITEM 16D.
    
    EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES Not applicable.  ITEM 16E.
    
    PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS Not applicable.  ITEM 16F.
    
    CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT On January 15, 2019 Ramirez Jimenez International
CPAs ("RJI") was appointed as our independent PCAOB audit firm for US reporting purposes. Neither we, nor anyone on our
behalf, consulted RJI prior the engagement of RJI regarding any of the matters set forth in Item 16F(a)(2)(i) and (ii).  ITEM 16G.
    
    CORPORATE GOVERNANCE  Not applicable.  ITEM 16H.
    
    MINE SAFETY DISCLOSURES Not applicable.   83    PART III  ITEM 17.
    FINANCIAL STATEMENTS We have elected to furnish financial statements and related
information specified in Item 18.  ITEM 18.
    FINANCIAL STATEMENTS  Integrated
Media Technology Limited Financial Statements - Index to Consolidated
Financial Statements  Report of Independent Registered
    Public Accounting Firm - 2019 and 2018
    F-1Report of Independent Registered
    Public Accounting Firm - 2017
    F-2Consolidated Statements of Profit or Loss and Other Comprehensive Income / (Loss) for the years ended December 31, 2017, 2018 and 2019
    F-3Consolidated Statements of Financial Position as of December 31, 2018 and 2019
    F-4Consolidated Statements of Changes in Equity for the years ended December 31, 2017, 2018 and 2019
    F-5Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2018 and 2019
    F-6Notes to the Consolidated Financial Statements
    F-7 through F-54    84    Logo
    
    18012 Sky Park Circle, Suite 200
Irvine, California 92614
tel 949-852-1600
fax 949-852-1606
www.rjicpas.com    REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM   To the Board of Directors and Stockholders of
Integrated Media Technology Limited   Opinion on the Financial Statements  We have audited the accompanying consolidated statements of financial position of Integrated Media Technology Limited (the
“Company”) and its subsidiaries (collectively, the “Group”) as of December 31, 2019 and 2018, and
the related consolidated statements of profit or loss and other comprehensive income / (loss), changes in equity, and cash
flows for the years ended December 31, 2019 and 2018, and the related notes to the consolidated financial statements (collectively
referred to as the “consolidated financial statements”). In our opinion, such consolidated financial statements
present fairly, in all material respects, the financial position of the Group as of December 31, 2019 and 2018, and the results
of their operations, and their cash flows for the years ended December 31, 2019 and 2018, in conformity with International
Financial Reporting Standards as issued by the International Accounting Standards Board.  Emphasis of Matter  The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Group incurred a net loss in the amount of $16,700,199 and used cash in operating activities in the amount of $5,547,544 during the year ended December 31, 2019, and had accumulated losses of $25,786,912 as of December 31, 2019, which raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.  Basis for Opinion  These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.  We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Group is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control over financial reporting. Accordingly, we express no such opinion.  Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.   /s/
Ramirez Jimenez International CPAs Ramirez
Jimenez International CPAs   Irvine,
California   June 15, 2020   We have served as the Company’s auditor since 2019.   F-1          REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    To
                                         the Board of Directors and Stockholders of
        Integrated
        Media Technology Limited  Opinion
                                         on the Financial Statements
        
        We have audited the accompanying consolidated statements of profit or loss and other comprehensive loss, changes in equity,
and cash flows for the year ended December 31, 2017, and the related notes (collectively referred to as the "consolidated
financial statements" of Integrated Media Technology Limited (the "Company") and its subsidiaries (collectively,
the "Group")). In our opinion, such consolidated financial statements present fairly, in all material
respects, the results of their operations, and their cash
flows for the year then ended, in conformity with International Financial Reporting Standards as issued by the International
Accounting Standards Board.  Basis
                                         for Opinion
        
        These
        consolidated financial statements are the responsibility of the Group’s management. Our responsibility is to express
        an opinion on the Group's consolidated financial statements based on our audits. We are a public accounting firm registered
        with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect
        to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
        and Exchange Commission and the PCAOB.
        
        We
        conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
        audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement,
        whether due to error or fraud. The Group is not required to have, nor were we engaged to perform, an audit of its internal
        control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
        over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal
        control over financial reporting. Accordingly, we express no such opinion.
        
        Our
        audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements,
        whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining,
        on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also
        included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
        the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis
        for our opinion.     /s/
HKCMCPA Company Limited   HKCM
                                CPA & Co.
        (Predecessor
        firm: HKCMCPA Company Limited)
        Certified
        Public AccountantsWe
        have served as the Company’s auditor since 2016 to January 15, 2019.Hong
    Kong, ChinaMarch
    31, 2018   15th Floor,
Aubin House, 171-172 Gloucester Road, Wan Chai, Hong KongTel: (852)
2573 2296      Fax: (852) 3015 3860
http://www.hkcmcpa.us   F-2    INTEGRATED MEDIA TECHNOLOGY LIMITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME / (LOSS) (in Australian dollars, except number of
shares)  Years ended December 31,Note
    
    2019A$
    
    2018A$
    
    2017A$Revenue, net
    
    4
    
    1,275,425
    
    1,324,406
    
    5,762,711Cost of sales
    
    
    
    (1,008,821)
    
    (723,711)
    
    (2,548,064)266,604
    
    600,695
    
    3,214,647Interest income
    
    
    
    115,762
    
    21,409
    
    3,092Gain on disposal of plant and equipment
    
    
    
    212,195
    
    -
    
    -Gain on fair value change in derivative financial instruments
    
    25
    
    127,551
    
    709,543
    
    -Gain on fair value change in contingent consideration liability
    
    5
    
    -
    
    -
    
    3,953,537Gain on disposal of subsidiaries
    
    27(a)
    
    -
    
    608,995
    
    -Other income
    
    6
    
    807,831
    
    469,660
    
    434,2961,529,943
    
    2,410,302
    
    7,605,572ExpensesEmployee benefit expenses
    
    8
    
    (4,034,378)
    
    (2,253,411)
    
    (1,887,692)Depreciation and amortization expenses
    
    8
    
    (3,174,784)
    
    (2,029,373)
    
    (2,021,131)Professional and consulting expenses
    
    
    
    (2,019,970)
    
    (1,746,762)
    
    (301,732)Travel and accommodation expenses
    
    
    
    (281,895)
    
    (384,184)
    
    (333,503)Office expenses and supplies
    
    
    
    (312,343)
    
    (659,611)
    
    (447,414)Rental costs
    
    8
    
    (637,321)
    
    (674,112)
    
    (407,184)Other operating expenses
    
    
    
    (794,036)
    
    (1,069,784)
    
    (655,669)Finance costs
    
    7
    
    (1,561,625)
    
    (1,383,399)
    
    (107,101)Provision for impairment loss of goodwill
    
    
    
    (4,486,301)
    
    (9,953,311)
    
    -Provision for inventories obsolescence
    
    8
    
    (799,871)
    
    (100,000)
    
    -Exchange (loss) / gain
    
    
    
    (10,296)
    
    493,365
    
    61,307Total expenses
    
    
    
    (18,112,820)
    
    (19,760,582)
    
    (6,100,119)(Loss)/profit before income tax
    
    8
    
    (16,582,877)
    
    (17,350,280)
    
    1,505,453Income tax (expenses) / credit
    
    9
    
    (117,322)
    
    507,057
    
    187,213(Loss)/profit for the year
    
    
    
    (16,700,199)
    
    (16,843,223)
    
    1,692,666Other comprehensive income / (loss)Items that may be re-classified subsequently to profit or loss:Exchange differences on translation of financial statements of overseas subsidiaries
    
    
    
    157,471
    
    1,015,454
    
    (657,314)Other comprehensive income / (loss) for the year, net of tax
    
    
    
    157,471
    
    1,015,454
    
    (657,314)Total comprehensive (loss)/income for the year
    
    
    
    (16,542,728)
    
    (15,827,769)
    
    1,035,352(Loss)/profit for the year attributable to:Equity shareholders of Integrated Media Technology Limited
    
    
    
    (15,646,147)
    
    (15,962,278)
    
    1,695,567Non-controlling interests
    
    
    
    (1,054,052)
    
    (880,945)
    
    (2,901)(16,700,199)
    
    (16,843,223)
    
    1,692,666Total comprehensive (loss)/income for the year attributable to:Equity shareholders of Integrated Media Technology Limited
    
    
    
    (15,540,317)
    
    (15,119,876)
    
    1,033,582Non-controlling interests
    
    
    
    (1,002,411)
    
    (707,893)
    
    1,770(16,542,728)
    
    (15,827,769)
    
    1,035,352(Loss)/earnings per share
    
    
    
    A$
    
    A$
    
    A$- Basic and Diluted
    
    11
    
    (4.63)
    
    (5.93)
    
    0.64  The above consolidated statements of profit or loss and other comprehensive
income / (loss) should be read in conjunction with the accompanying notes.   F-3    INTEGRATED MEDIA TECHNOLOGY LIMITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in Australian dollars)  December 31,2019
    
    2018Note
    A$
    
    A$ASSETSCurrent AssetsCash and bank balances
    
    
    735,724
    
    1,514,215Inventories
    
    12
    749,173
    
    1,394,065Right of use assets
    
    23(a)
    682,119
    
    -Trade and other receivables
    
    13
    770,958
    
    1,183,765Other assets
    
    14
    2,291,273
    
    1,908,269Total Current Assets
    
    
    5,229,247
    
    6,000,314Non-Current AssetsPlant and equipment
    
    15
    729,117
    
    729,480Intangible assets and goodwill
    
    16
    9,950,803
    
    16,323,167Right of use assets
    
    23(a)
    425,773
    
    -Development projects
    
    17
    3,611,336
    
    2,980,113Total Non-Current Assets
    
    
    14,717,029
    
    20,032,760TOTAL ASSETS
    
    
    19,946,276
    
    26,033,074LIABILITIESCurrent LiabilitiesTrade and other liabilities
    
    18
    4,338,495
    
    636,042Provision for employee benefits
    
    19
    64,135
    
    54,320Amounts due to related companies
    
    20
    6,101,850
    
    2,130,368Amount due to ultimate holding company
    
    21
    582,832
    
    172,773Borrowings
    
    22
    1,817,782
    
    1,708,875Lease liability
    
    23(b)
    666,868
    
    18,123Convertible bonds
    
    24
    4,420,899
    
    -Total Current Liabilities
    
    
    17,992,861
    
    4,720,501Non-current LiabilitiesLease liabilities
    
    23(b)
    501,739
    
    39,169Deferred tax liabilities
    
    9
    1,372,653
    
    1,244,814Convertible bonds
    
    24
    -
    
    3,280,744Derivative financial instruments
    
    25
    -
    
    126,095Total Non-Current Liabilities
    
    
    1,874,392
    
    4,690,822TOTAL LIABILITIES
    
    
    19,867,253
    
    9,411,323NET CURRENT (LIABILTIES) / ASSETS
    
    
    (12,763,614)
    
    1,279,813NET ASSETS
    
    
    79,023
    
    16,621,751CAPITAL AND RESERVESIssued capital (no par value, 3,377,386 ordinary shares issued and outstanding as of December 31, 2019 and 2018)
    
    28
    18,902,029
    
    18,902,029Foreign currency translation reserve
    
    29(a)
    735,213
    
    629,383Other reserves
    
    29(b)
    4,423,141
    
    4,959,089Accumulated losses
    
    
    (25,786,912)
    
    (10,676,713)Total equity attributable to equity shareholders of Integrated Media Technology Limited
    
    
    (1,726,529)
    
    13,813,788Non-controlling interests
    
    
    1,805,552
    
    2,807,963TOTAL EQUITY
    
    
    79,023
    
    16,621,751  The above consolidated statements of financial position should
be read in conjunction with the accompanying notes.   F-4    INTEGRATED MEDIA TECHNOLOGY LIMITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in Australian dollars)  Attributable to owners of the CompanyIssued Capital
    
    (Accumulated Losses) / Retained Earnings
    
    Foreign Currency Translation Reserve
    
    Other Reserves
    
    Non-controlling Interests
    
    TotalA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Balance at January 1, 2017
    
    10,410,279
    
    3,589,998
    
    410,326
    
    -
    
    (55,621)
    
    14,354,982Changes in equity for 2017:Profit / (loss) for the year
    
    -
    
    1,695,567
    
    -
    
    -
    
    (2,901)
    
    1,692,666Other comprehensive loss for the year, net of tax
    
    -
    
    -
    
    (661,985)
    
    -
    
    4,671
    
    (657,314)Total comprehensive income for the year
    
    -
    
    1,695,567
    
    (661,985)
    
    -
    
    1,770
    
    1,035,352Balance at December 31, 2017 and as at January 1 2018
    
    10,410,279
    
    5,285,565
    
    (251,659)
    
    -
    
    (53,851)
    
    15,390,334Changes in equity for 2018:Loss for the year
    
    -
    
    (15,962,278)
    
    -
    
    -
    
    (880,945)
    
    (16,843,223)Other comprehensive income for the year, net of tax
    
    -
    
    -
    
    842,402
    
    -
    
    173,052
    
    1,015,454Total comprehensive loss for the year
    
    -
    
    (15,962,278)
    
    842,402
    
    -
    
    (707,893)
    
    (15,827,769)Disposal of subsidiaries
    
    -
    
    -
    
    38,640
    
    -
    
    41,420
    
    80,060Issue of convertible bonds 
(Note 29(b)(i))
    
    -
    
    -
    
    -
    
    535,948
    
    -
    
    535,948Capital injection by non-controlling interests
    
    -
    
    -
    
    -
    
    -
    
    3,528,287
    
    3,528,287Gain on deemed disposal of subsidiaries 
(Note 29 (b)(ii) & (iii))
    
    -
    
    -
    
    -
    
    4,423,141
    
    -
    
    4,423,141Issuance of new ordinary shares 
(Note 28(b))
    
    491,750
    
    -
    
    -
    
    -
    
    -
    
    491,750Issue of shares for conversion of debt 
(Note 28(b))
    
    8,000,000
    
    -
    
    -
    
    -
    
    -
    
    8,000,000Balance at December 31, 2018 and as at January 1, 2019
    
    18,902,029
    
    (10,676,713)
    
    629,383
    
    4,959,089
    
    2,807,963
    
    16,621,751Changes in equity for 2019:Loss for the year
    
    -
    
    (15,646,147)
    
    
    
    
    
    (1,054,052)
    
    (16,700,199)Other comprehensive income for the year, net of tax
    
    -
    
    -
    
    105,830
    
    -
    
    51,641
    
    157,471Total comprehensive loss for the year
    
    -
    
    (15,646,147)
    
    105,830
    
    -
    
    (1,002,411)
    
    (16,542,728)Transfer convertible bond reserves 
(Note 29 (b))
    
    -
    
    535,948
    
    -
    
    (535,948)
    
    -
    
    -Balance at December 31, 2019
    
    18,902,029
    
    (25,786,912)
    
    735,213
    
    4,423,141
    
    1,805,552
    
    79,023  The above consolidated statements of changes in equity should
be read in conjunction with the accompanying notes.  F-5    INTEGRATED MEDIA TECHNOLOGY LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in Australian dollars)  Years Ended December 31,2019
    
    2018
    
    2017Note
    
    A$
    
    A$
    
    A$Cash flows from operating activities(Loss) / profit before income tax
    
    
    
    (16,582,877)
    
    (17,350,280)
    
    1,505,453Adjustments to reconcile (loss) profit before income tax to net 
cash (used in) / provided by operating activities:Depreciation and amortization
    
    
    
    3,174,784
    
    2,029,373
    
    2,021,131Write off of plant and equipment
    
    
    
    -
    
    171,371
    
    -Equity settled share based payment transaction
    
    
    
    -
    
    491,750
    
    -Impairment loss of trade receivables
    
    
    
    11,052
    
    124,528
    
    -Provision for inventories obsolescence
    
    
    
    799,871
    
    100,000
    
    -Gain on disposal of subsidiaries
    
    
    
    -
    
    (608,995)
    
    -Gain on disposal of plant and equipment
    
    
    
    (212,195)Fair value change in derivative financial instruments
    
    
    
    (127,551)
    
    (709,543)
    
    -Fair value change in contingent consideration liability
    
    
    
    -
    
    -
    
    (3,953,537)Interest income from ultimate holding company
    
    
    
    (115,678)
    
    -
    
    -Interest received from ultimate holding company
    
    
    
    18,714
    
    -
    
    -Interest accrued for lease liabilities
    
    
    
    109,675
    
    -
    
    -Finance costs for convertible bonds
    
    
    
    1,316,702
    
    930,276
    
    -Interest paid for convertible bonds
    
    
    
    (209,392)
    
    (394,060)
    
    -Provision for impairment loss of goodwill
    
    
    
    4,486,301
    
    9,953,311
    
    -Net cash inflows / (outflows) from changes in working capital
    
    33(b)
    
    1,783,050
    
    (1,596,164)
    
    5,291,261Net cash (used in) / provided by operating activities
    
    
    
    (5,547,544)
    
    (6,858,433)
    
    4,864,308Cash flows from investing activitiesPayments for acquisition of plant and equipment
    
    
    
    (1,223,028)
    
    (838,238)
    
    (47,513)Payments for intangible assets
    
    
    
    (7,283)
    
    (587,864)
    
    (181,287)Payments for development projects
    
    
    
    (598,306)
    
    (1,884,172)
    
    (1,961,191)Disposal of subsidiaries, net of cash disposed of
    
    
    
    -
    
    (9,494)
    
    -Net cash used in investing activities
    
    
    
    (1,828,617)
    
    (3,319,768)
    
    (2,189,991)Cash flows from financing activitiesAdvances from / (repayment) of amounts due to related companies
    
    
    
    3,954,640
    
    1,806,044
    
    (2,003,277)Advance from other liabilities
    
    
    
    2,610,091
    
    -
    
    -Proceeds from bank borrowings
    
    
    
    930,334
    
    809,280
    
    1,244,925Repayment of bank borrowings
    
    
    
    (840,285)
    
    (904,850)
    
    (821,200)Advance from / (repayment) to ultimate holding company
    
    
    
    501,343
    
    (4,782,610)
    
    -Payment of lease liabilities
    
    
    
    (573,010)
    
    (10,180)
    
    -Proceeds from issuance of convertible bonds by a subsidiary
    
    
    
    -
    
    3,769,470
    
    -Proceeds from issue of shares of subsidiaries
    
    
    
    -
    
    7,951,428
    
    -Net cash provided by / (used in) financing activities
    
    33(a)
    
    6,583,113
    
    8,638,582
    
    (1,579,552)Net (decrease) / increase in cash and cash equivalents
    
    
    
    (793,048)
    
    (1,539,619)
    
    1,094,765Effect of exchange rate changes on cash and cash equivalents
    
    
    
    619,705
    
    89,252
    
    (61,658)Cash and cash equivalents at the beginning of financial year
    
    
    
    6,585
    
    2,070,072
    
    1,036,965Cash and cash equivalents at the end of financial year
    
    
    
    (166,758)
    
    619,705
    
    2,070,072Analysis of cash and cash equivalents:Cash and bank balances
    
    
    
    735,724
    
    1,514,215
    
    2,860,014Bank overdraft
    
    
    
    (902,482)
    
    (894,510)
    
    (789,942)Cash and cash equivalents
    
    
    
    (166,758)
    
    619,705
    
    2,070,072  The above consolidated statements of cash flows should be
read in conjunction with the accompanying notes.   F-6    INTEGRATED MEDIA TECHNOLOGY LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (in Australian dollars, unless otherwise
noted)  NOTE 1. REPORTING ENTITY  The consolidated financial report covers
the entity of Integrated Media Technology Limited (“IMTE”) and its controlled entities for the years ended December
31, 2019, 2018 and 2017 which were authorized for issue by the Board of Directors on June 13, 2020. IMTE is a for-profit public
company limited by shares, incorporated and domiciled in Australia whose shares are publicly traded on the NASDAQ Capital Markets.
IMTE is an investment holding company and its subsidiaries carry out the business of the Group in Australia, Hong Kong and China.  The Company and its subsidiaries are referred
to as the “Group”.  On May 2, 2017, the Company effected a
1-for-30 reverse split of the ordinary shares, which was approved at a special meeting of the shareholders on March 2, 2017 and
have been retrospectively restated in these consolidated financial statements.  On October 18, 2016, the Company approved
to change its name to “Integrated Media Technology Limited”.  Going Concern  The Company’s consolidated financial
statements are prepared using International Financial Reporting Standards as issued by the International Accounting Standards Board
applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course
of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow
it to continue as a going concern. As of December 31, 2019, the Company had accumulated losses of A$25,786,912 and generated a
net loss in 2019 of A$16,700,199 and used cash in operating activities in the amount of A$5,547,544. The ability of the Company
to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes
profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.  In order to continue as a going concern, the
Company will need, among other things, additional capital resources. Since December 31, 2019, the Company was successful in raising
a total of US$2.8 million through debt and equity financing for the repayment of debts and working capital in the Company. Furthermore,
the Company disposed of its research and development operation to reduce the overhead of the Group going forward and focus on the
sale and marketing operation. The Company will need to continue to raise funds through the sale of its equity securities and issuance
of debt instruments to obtain additional operating capital. The Company is and will continue to be dependent upon its ability,
and will continue to attempt, to secure additional equity and/or debt financing until the Company can earn revenue and realize
positive cash flow from its operations.  There are no assurances that the Company will
be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing, it would be
unlikely that the Company will continue as a going concern.  Based on the Company’s current rate of
cash outflows, cash on hand and proceeds from the recent sale of equity securities and convertible promissory note, management
believes that its current cash may not be sufficient to meet the anticipated cash needs for working capital for the next 12 months.  The Company’s plans with respect to its
liquidity issues include, but are not limited to, the following:  1)
    Continue to raise financing through the sale of its equity and/or debt securities;  2)
    Continue developing its business, products and services and seek strategic partnerships and alliances or joint ventures  to grow our revenue and profitability.  The Company is currently evaluating additional
equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can
consummate such a transaction, or consummate a transaction at favorable pricing.  The ability of the Company to continue
as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and
eventually secure other sources of financing and achieve profitable operations. These consolidated financial statements do not
include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification
of liabilities that might result from this uncertainty.  The consolidated financial statements
of the Group are presented in Australian Dollars (“A$”), unless otherwise stated.   F-7    NOTE 2. BASIS OF ACCOUNTING  The consolidated financial statements
present a general purpose financial report that has been prepared in accordance with Australian Accounting Standards (“AASBs”),
including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board
and the Corporations Act 2001 as appropriate for for-profit entities. The consolidated financial statements also comply with International
Financial Reporting Standards (“IFRSs”) as adopted by the International Accounting Standards Board.  NOTE 3. SIGNIFICANT ACCOUNTING POLICIES  The following is a summary of the significant
accounting policies adopted by the Group in the preparation of the consolidated financial statements. The accounting policies have
been consistently applied, unless otherwise stated.  (a)
    Basis
of Preparation The consolidated financial statements
have been prepared on the accrual basis and are based on historical costs modified by the revaluation of selected non-current assets,
financial assets and financial liabilities for which the fair value basis of accounting has been applied.  (b)
    Principles
of Consolidation The consolidated financial statements
comprise the financial statements of IMTE and its subsidiaries as at December 31, 2019 (the “Group”). Subsidiaries
are consolidated from the date on which control is transferred to the Group and are deconsolidated from the date that control ceases.
A list of the controlled entities as at December 31, 2019 is disclosed in Note 26 to the consolidated financial statements. Other
than Marvel Digital Limited, Visumotion International Limited and GOXD Technology Limited, all other controlled entities have a
December, 31 statutory financial year end. All inter-company balances and transactions
between entities within the Group, including any unrealized profits or losses, have been eliminated upon consolidation.  Non-controlling interest in the results
and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and other comprehensive income
or loss and consolidated statement of financial position of the Group.  (c)
    Business
Combinations The Group accounts for business combinations
using the acquisition method when control is transferred to the Group. The consideration transferred by the Company to obtain control
of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the
equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration
arrangement. Acquisition costs are expensed as incurred, except if related to the issue of debt or equity securities. The Company recognizes identifiable assets
acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree’s
financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date
fair values. Goodwill is stated after separate recognition
of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair value of consideration transferred, (b)
the recognized amount of any non-controlling interest in the acquiree, and (c) acquisition-date fair value of any existing equity
interest in the acquiree, over the acquisition-date fair values of identifiable net assets. Any contingent consideration to be transferred
by the acquirer is recognized at acquisition-date fair value. Subsequent adjustments to consideration are recognized against goodwill
only to the extent that they arise from new information obtained within the measurement period (a maximum of 12 months from the
acquisition date) about the fair value at the acquisition date. All other subsequent adjustments to contingent consideration classified
as an asset or a liability are recognized in the consolidated statement of profit or loss.   F-8    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (d)
    Current
and deferred income tax Income tax for the year comprises current
tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are
recognised in profit or loss, except to the extent that they relate to items recognised in other comprehensive income / loss or
directly in equity, in which case the relevant amounts of tax are recognised in other comprehensive income or directly in equity,
respectively. Current tax is the expected tax payable
on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and any
adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise
from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused
tax credits. Apart from certain limited exceptions,
all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised, are recognised. Future taxable profits that may support the recognition of deferred
tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary
differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to
reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax
loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether
existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits,
that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and
are expected to reverse in a period, or periods, in which the tax loss or credit can be utilised. The limited exceptions to recognition
of deferred tax assets and liabilities are those temporary differences arising from goodwill not deductible for tax purposes, the
initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a
business combination), and temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable
differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable
future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The carrying amount of a deferred tax
asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow the related tax benefit to be utilised. Any such reduction is reversed to the extent
that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax
balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against
current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Company or the Group has the legally
enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: (i)
    in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously; or  (ii)
    in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either:  -
    the same taxable entity; or-
    different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realized and settle simultaneously.  (e)
    Intangible Assets (i)
    Acquired both separately and from a business combination Purchased intangible assets are
initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date
of acquisition. Following initial recognition, intangible assets are measured at cost less any accumulated amortization and any
accumulated impairment losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method
for an intangible asset with a finite useful life are reviewed at each financial year end. (ii)
    Autostereoscopic 3D display technologies and knowhow The autostereoscopic 3D display
technologies and knowhow acquired in the business combination is measured at fair value as at the date of acquisition. These costs
are amortized over the estimated useful life of 8 years and are tested for impairment where an indicator of impairment exists.
The useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis. Please
refer to Note 16 for impairment review of these autostereoscopic 3D display technologies and knowhow. (iii)
    Research and development costs Development projects in the consolidated
statement of financial position represent the development costs directly attributable to and incurred for internal technology projects
of the Group. An intangible asset arising from development expenditure on an internal technology project is recognised and included
in development projects only when the Group can demonstrate the technical feasibility of completing the intangible asset or technology
so that it will be available for application in existing or new products or for sale, its intention to complete and its ability
to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development,
the ability to measure reliably the expenditure attributable to the intangible asset during its development and the ability to
use the tangible asset generated. For labour costs, all research and development member salaries that are directly attributable
to the technology project are capitalised. Administrative staff and costs are recognised in the profit or loss instead of capitalising
this portion of costs. Following the initial recognition of the development expenditure, the cost model is applied requiring the
asset to be carried at cost less any accumulated impairment losses. The amortisation rate of these intangible assets was determined
on the basis of the estimated useful life from the time that the relevant asset is taken into use. (iv)
    Intellectual property Expenditure incurred on patents,
trademarks or licenses are capitalized from the date of application. They have a definite useful life and are carried at cost less
accumulated amortization. They are amortized using the straight line method over their estimated useful lives for a period of 8
to 15 years. (v)
    Computer software Acquired computer software licenses
are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized
over their estimated useful lives ranging (2-5 years). Costs associated with maintaining computer software programmes are recognized
as an expense when incurred.   F-9    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (f)
    Inventories Finished goods are stated at the lower
of cost and net realizable value on a “first in first out” basis. Cost comprises direct materials and delivery costs,
import duties and other taxes. Costs of purchased inventories are determined after deducting rebates and discounts received or
receivable. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary
to make the sale.  (g)
    Leases  The Group has applied IFRS 16 using the modified
retrospective approach, and therefore, the comparative information has not been restated and continues to be reported under IAS
17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately.  The policy applicable from 1 January 2019  At inception of a contract, the Group assesses
whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.  This policy is applied to contracts entered
into, on or after 1 January 2019.  As a lessee  At commencement or on modification of a contract
that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of
its relative and-alone prices. However, for the leases of property the Group has elected
not to separate lease components and account for the lease and non-lease components
as a single lease component.  The Group recognises a right-of-use
asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.  The right-of-use
asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the
lease term or the cost of the right-of-use
asset reflects that the Group will exercise a purchase option. In that case the right-of-use
asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property
and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The
lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.  The Group determines its incremental borrowing
rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of
the lease and type of the asset leased.  Lease payments included in the measurement
of the lease liability comprise the following:  -
    fixed payments, including in-substance fixed payments;  -
    variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;  -
    amounts expected to be payable under a residual value guarantee; and-
    the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.  The lease liability is measured at amortised
cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change
in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there
is a revised in-substance fixed lease payment.  When the lease liability is remeasured in this
way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.  The Group presents right-of-use
assets that do not meet the definition of investment property in‘propertyand
equipment’ and lease liabilities in ‘loans and borrowings’ in the consolidated statement of financial position.  Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use
assets and lease liabilities for leases of low value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.   F-10    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (g)
    Leases
(continued)  Policy applicable before 1 January 2019  For contracts entered into before 1 January
2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether: fulfilment of the
arrangement was dependent on the use of a specific asset or assets; and the arrangement had conveyed a right to use the asset.
An arrangement conveyed the right to use the asset if one of the following was met: the purchaser had the ability or right to operate
the asset while obtaining or controlling more than an insignificant amount of the output; the purchaser had the ability or right
to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or; amounts
expected to be payable under a residual value guarantee; and facts and circumstances indicated that it was remote that other parties
would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal
to the current market price per unit of output.  As a lessee In the comparative period, where the
Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower,
the present value of the minimum lease payments, of such assets are recognised as plant and equipment and the corresponding liabilities,
net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the
cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the
asset, the life of the asset, as set out in note 3(k). Impairment losses are accounted for in accordance with an accounting policy
as set out in note 3(h). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases
so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting
period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. Lease payments for operating lease, where
substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis unless another
method is more representative of the pattern to the users benefit.  (h)
    Impairment
of Assets Internal and external sources of information
are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in
the case of goodwill, an impairment loss previously recognised no longer exists or may have decreased: -
    property and equipment (other than properties
    carried at revalued amounts);  -
    intangible assets; and  -
    goodwill. If any such indication exists, the asset's
recoverable amount is estimated. In addition for goodwill, intangible assets that are not yet available for use and intangible
assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of
impairment. (i)
    Calculation of recoverable amount The recoverable amount of an asset
is the greater of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those
from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently
(i.e. a cash-generating unit). (ii)
    Recognition of impairment losses An impairment loss is recognized
in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable
amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets
in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual
fair value less costs of disposal (if measurable) or value in use (if determinable). (iii)
    Reversals of impairment losses In respect of assets other than goodwill,
an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount.
An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss
is limited to the asset's carrying amount that would have been determined had no impairment loss been recognized in prior years.
Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized.   F-11    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (i)
    Investments and Other Financial Assets (i)
    Recognition Financial instruments are initially
measured at costs on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent
to initial recognition, these instruments are measured as set out below. (ii)
    Financial assets at fair value through profit and loss A financial asset is classified
in this category if acquired principally for the purpose of selling in the short term or if so designed by management and within
the requirements of IFRS 39: Recognition and Measurement of Financial Instruments. Derivatives are also categorized as held for
trading unless they are designated as hedges. Realized and unrealized gains and losses arising from changes in the fair value of
these assets are recognized in profit or loss in the period in which they arise. (iii)
    Loans and receivables Loans and receivables are non-derivative
financial assets with fixed or determined payments that are not quoted in an active market and are stated at amortized costs using
the effective interest rate methods. (iv)
    Financial liabilities Non-derivative financial liabilities
are recognized at amortized costs, comprising original debt less principal payments and amortization. (v)
    Fair value Fair value is determined based on
current bid prices for all quoted investments. (vi)
    Impairment At each reporting date, the Group
assesses whether there is any objective evidence that a financial instrument has been impaired. Impairment losses are recognized
in profit or loss.  (j)
    Trade
deposits Trade deposits are payments in advance
to suppliers of equipment, products and services, which are initially recognized at fair value, and thereafter stated at amortized
cost using the effective interest method less impairment losses, except where the effect of discounting would be immaterial.  F-12    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (k)
    Plant
and Equipment Items of plant and equipment are measured
at cost less accumulated depreciation and impairment losses. The carrying amount of plant and equipment
is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable
amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciable amount of all fixed assets
are depreciated over their estimated useful lives to the Group commencing from the time the assets is held and ready for use. Depreciation is calculated on a straight-line
basis to write the net cost of each item of plant and equipment over their expected useful lives. The depreciation rates used for
each class of depreciable assets are generally as follows:  Class of fixed assets
    Depreciation rateLeasehold Improvements
    lesser of 3-5 years or lease termOffice furniture and equipment
    3-5 yearsMotor vehicle
    5 years Gains and losses on disposal are determined
by deducting the net book value of the assets from the proceeds of sale and are booked to the profit or loss in the year of disposal.  (l)
    Foreign Currency Translation  (i)
    Functional
and presentation currency Items included in the financial
statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity
operates (the "functional currency"). The consolidated financial statements are presented in Australian Dollars ("A$"),
which is the Group's presentation currency.  (ii)
    Transactions
and balances Foreign currency transactions during
the year are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated
in foreign currencies are translated at the foreign exchange rates ruling at the end of the reporting period. Exchange gains and
losses are recognized in profit or loss, except those arising from foreign currency borrowings used to hedge a net investment in
a foreign operation which are recognized in other comprehensive income. Non-monetary assets and liabilities
that are measured in terms of historical cost in a foreign currency are translated using the foreign exchange rates ruling at the
transaction dates. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated
using the foreign exchange rates ruling at the dates the fair value was measured.  (iii)
    Group
companies The results of foreign operations
are translated into Australian Dollars at the exchange rates approximating the foreign exchange rates ruling at the dates of the
transactions. Statement of financial position items, are translated into Australian Dollars at the closing foreign exchange rates
at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated
separately in equity in the exchange reserve. On disposal of a foreign operation,
the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to profit or loss
when the profit or loss on disposal is recognized. For years ended December 31, 2019
and 2018, the comprehensive income was A$735,213 and A$629,383 respectively, which was mainly resulted from the translation of
the foreign operations in Hong Kong (HK$) and China (RMB) into Australia dollars. The significant monetary items denominated in
currencies other than Australia dollars include intangible assets and goodwill, due to related companies, amount due to ultimate
holding company, borrowings, convertible bonds and derivative financial instruments.  F-13    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (m)
    Trade
and Other Receivables Trade receivables are recognized at original
invoice amounts less an allowance for uncollectible amounts and have repayment terms between 30 and 90 days. Collectability of
trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance is made
for doubtful debts where there is objective evidence that the Group will not be able to collect all amounts due according to the
original terms. Objective evidence of impairment includes financial difficulties of the debtor, default payments or debts more
than 30 days overdue. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset
is written off against the associated provision.  (n)
    Trade
and Other Payables These amounts represent liabilities for
goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and
are paid on normal commercial terms.  (o)
    Provisions and Contingent Liabilities Provisions are recognized for other liabilities
of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, it is
probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Where
the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. Where it is not probable that an outflow
of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent
liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless
the probability of outflow of economic benefits is remote.  (p)
    Borrowings Borrowings are initially recognized at
fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating
to the actual draw-down of the facility, are recognized as an offset against the liability balance and amortized on a straight-line
basis over the term of the facility. Borrowings are removed from the statement
of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between
the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration
paid, including any non-cash assets transferred or liabilities assumed, is recognized in other income or other expenses. Borrowings are classified as current
liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end
of the reporting period.  (q)
    Borrowing
Costs Borrowing costs that are directly attributable
to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for
its intended use or sale are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in
which they are incurred. The capitalization of borrowing costs
as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being
incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of
borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its
intended use or sale are interrupted or complete.  (r)
    Convertible
Bonds Convertible bonds that can be converted
into ordinary shares at the option of the holder, where the number of shares to be issued is fixed, are accounted for as compound
financial instruments, i.e. they contain both a liability component and an equity component. At initial recognition, the liability
component of the convertible bonds is measured at fair value based on the future interest and principal payments, discounted at
the prevailing market rate of interest for similar non-convertible instruments. The equity component is the difference between
the initial fair value of the convertible bonds as a whole and the initial fair value of the liability component. Transaction costs
that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion
to the allocation of proceeds. The liability component is subsequently
carried at amortised cost. Interest expense recognised in profit or loss on the liability component is calculated using the effective
interest method. The equity component is recognised in the capital reserve until either the bonds are converted or redeemed. If the bonds are converted, the capital
reserve, together with the carrying amount of the liability component at the time of conversion, is transferred to share capital
and share premium as consideration for the shares issued. If the bonds are redeemed, the capital reserve is released directly to
retained profits.  (s)
    Derivative
Financial Instruments Derivative financial instruments are
recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to
fair value is recognised immediately in profit or loss.   F-14    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (t)
    Employee
Benefits  (i)
    Employee
leave entitlements Employee entitlements to annual
leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result
of services rendered by employees up to the date of the consolidated statement of financial position. Employee entitlements to sick leave
and maternity leave are not recognised until the time of leave.  (ii)
    Pension
obligations Salaries, annual bonuses, paid annual
leave, contributions to defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in
which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material,
these amounts are stated at their present values.  (iii)
    Termination
benefits Termination benefits are recognised
at the earlier of when the Group can no longer withdraw the offer of those benefits and when it recognises restructuring costs
involving the payment of termination benefits.  (u)
    Cash
and Cash Equivalents Cash and cash equivalents include cash
on hand and call deposits with banks or financial institutions and net of bank overdrafts.  (v)
    Revenue Revenue is recognized in accordance with
IFRS 15 Revenue from Contracts with Customers. The underlying principle is to recognize revenue when a customer obtains control
of the promised goods at an amount that reflects the consideration that is expected to be received in exchange for those goods.
It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related
to contracts with customers. We adopted IFRS 15 Revenue from Contracts with Customers at the beginning of 2018, and implemented
new accounting policies and internal controls necessary to support its requirements. The adoption of IFRS 15 did not have any impact
on our revenue recognition. We recognize revenue upon transfer of
control of the promised goods in a contract with a customer in an amount that reflects the consideration we expect to receive in
exchange for those products. Transfer of control occurs once the customer has the contractual right to use the product, generally
upon shipment or once delivery and risk of loss has transferred to the customer. We account for a contract with customer when we
have approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial
substance and collectability of consideration is probable. We identify separate contractual performance obligations and evaluate
each distinct performance obligation within a contract, whether it is satisfied at a point in time or over time. All of our performance
obligations for the reported periods were satisfied at a point in time. Revenue is allocated among performance
obligations in a manner that reflects the consideration that we expect to be entitled to for the promised goods based on standalone
selling prices (“SSP”). SSP are estimated for each distinct performance obligation and judgment may be required in
their determination. The best evidence of SSP is the observable price of the product when we sell the goods separately in similar
circumstances and to similar customers. Until January 1, 2018, revenues from
sales of products and services were recognized upon delivery provided that the collection of the resulting receivable was reasonably
assured, there was persuasive evidence of an arrangement, no significant obligations remained and the price was fixed or determinable. The product warranties, which in the
great majority of cases includes component and functional errors, are usually granted for a one year period from legal transfer
of the product. For the customers, the specific warranty period and the specific warranty terms are part of the basis of the individual
contract. Warranty provisions include only standard
warranty, whereas services purchased in addition to the standard warranty are included in the services contracts. Interest Income Income is recognized as interest accrues
using the effective interest method.   F-15    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued)  (w)
    Sales
Taxes Revenues, expenses and assets are recognized
net of the amount of goods and services tax (“GST”) or valued-added tax (“VAT”), except where the amount
of GST or VAT incurred is not recoverable from the Australian Taxation Office or taxation authorities in other jurisdictions. In
these circumstances, the GST or VAT is recognized as part of the cost of acquisition of the assets or as part of an item of expense.
Receivables and payables in the consolidated statement of financial position are shown inclusive of GST or VAT. Cash flows are included in the consolidated
statements of cash flows on a gross basis, and the GST or VAT component of cash flows arising from investing and financing activities,
which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.  (x)
    Earnings
Per Share  (i)
    Basic
earnings per share Basic earnings per share is calculated
by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the year.  (ii)
    Diluted
earnings per share Diluted earnings per share adjusts
the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed
to have been issued for no consideration in relation to dilutive potential ordinary shares.  (y)
    Issued Capital Ordinary shares are classified as equity. Incremental costs directly attributable
to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly
attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of the acquisition
as part of the purchase consideration.  (z)
    Related
Parties For the purpose of these consolidated
financial statements, related party includes a person and entity as defined below:  (i)
    A person, or a close member of that person's family, is related to the Group if that person: (i)
    has control or joint control over the Group;  (ii)
    has significant influence over the Group; or  (iii)
    is a member of the key management personnel of the Group or the Group's parent.  (ii)
    An entity is related to the Group if any of the following conditions applies: (i)
    the entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).  (ii)
    one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).  (iii)
    both entities are joint ventures of the same third party.  (iv)
    one entity is a joint venture of a third entity and the other entity is an associate of the third entity.  (v)
    the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group.  (vi)
    the entity is controlled or jointly controlled by a person identified in (i).  (aa)
    Government grants Government grants are recognized at fair
value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating
to expenses are recognised as income over the periods necessary to match grants to the costs that are being compensated. Grants
relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the
assets on a straight line basis.  (ab)
    Fair Value Fair values may be used for financial
asset and liability measurements and for sundry disclosures. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. It is based on the presumption that the transaction takes place either in the principal market for the asset or liability
or, in the absence of a principal market, in the most advantageous market. The principal or most advantageous market must be accessible
to, or by, the Group. Fair value is measured using the assumptions
that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic
interest. The fair value measurement of a non-financial
asset takes into account the market participant's ability to generate economic benefits by using the asset at its highest and best
use or by selling it to another market participant that would use the asset at its highest and best use. In measuring fair value, the Group uses
valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  F-16    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (ac)
    New, Revised or Amending Accounting
Standards and Interpretations (i)
    The Group has applied the following standards and amendments for first time in their annual reporting period commencing January 1, 2019:  IFRS 16 Leases  The Group has initially adopted IFRS
16 Leases from January 1, 2019. A number of other new standards are effective from January 1, 2019, but they did not have a material
effect on the Group’s consolidated financial statements.  IFRS 16 introduced a single, on-balance
sheet accounting model for lessees. As a result, the Group, as a lessee, has recognized right-of-use assets representing its rights
to use the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains
similar to previous accounting policies.  The Group has applied IFRS
16 as of January 1, 2019. Accordingly, the comparative information presented for 2018 has not been restated – i.e. it is
presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies
are disclosed are disclosed below.  A.
    Definition
of a lease  Previously, the Group determined at
contract inception whether an arrangement was or contained a lease under IFRIC 4 Determining Whether an Arrangement contains a
Lease. The Group now assesses whether a contract is or contains a lease based on the new definition of a lease. Under IFRS 16,
a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time
in exchange for consideration.  On transition to IFRS 16, the Group
elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applied IFRS 16 only
to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were
not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on
or after January 1, 2019.  At inception or on reassessment of
a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component
on the basis of their relative stand-alone prices. However, for leases of properties in which it is a lessee, the Group has elected
not to separate non-lease components and will instead account for the lease and non- lease components as a single lease component.  B.
    As a lessee  The Group leases many assets, including
properties, production equipment and IT equipment.  As a lessee, the Group previously
classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of
the risks and rewards of ownership. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for most leases
– i.e. these leases are on-balance sheet.  F-17    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (ac)
    New, Revised or Amending Accounting
Standards and Interpretations (Continued)  IFRS 16 Leases (Continued)  However, the Group has elected not
to recognize right-of-use assets and lease liabilities for some leases of low-value assets (e.g. IT equipment). The Group recognizes
the lease payments associated with these leases as an expense on a straight-line basis over the lease term.  The Group presents right-of-use assets
that do not meet the definition of investment property in ‘plant and equipment’, the same line item as it presents
underlying assets of the same nature that it owns. Right-of-use assets that meet the definition of investment property are presented
within investment property. The carrying amounts of right-of-use assets are as below. The movements in this right-of use assets
are set out in Note 3 (ii) below.  PropertyA$Balance at January 1, 2019
    1,106,486Balance at December 31, 2019
    1,064,986 The Group recognizes right-of-use
assets and lease liabilities at the lease commencement date. The right-of-use assets are initially measured at discounted cost
using the Group’s incremental borrowing rate, and subsequently at discounted cost less any accumulated depreciation and impairment
losses, and adjusted for certain remeasurements of the lease liability.  When a right-of-use asset meets the
definition of investment property, it is presented in investment property. The right-of-use asset is initially measured at cost,
and subsequently measured at fair value, in accordance with the Group’s accounting policies.  The lease liability is initially measured
at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group
uses its incremental borrowing rate as the discount rate.  The lease liability is subsequently
increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable
under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably
certain to be exercised or a termination option is reasonably certain not to be exercised.  The Group has applied judgement to
determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether
the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease
liabilities and right-of-use assets recognized.   F-18    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (ac)
    New, Revised or Amending Accounting
Standards and Interpretations (Continued)  IFRS 16 Leases (Continued)  C.
    Transition  Previously, the Group classified property
leases as operating leases under IAS 17. These include warehouse and factory facilities. The leases typically run for a period
of 10 years. Some leases include an option to renew the lease for an additional five years after the end of the non-cancellable
period. Some leases provide for additional rent payments that are based on changes in local price indices.  At transition, for leases classified
as operating leases under IAS 17, lease liabilities were measured at the present value of the remaining lease payments, discounted
at the Group’s incremental borrowing rate as at January 1, 2019. Right-of-use assets are measured at either:  -their carrying amount as if IFRS 16 had been applied since the commencement date, discounted using
the lessee’s incremental borrowing rate at the date of initial application – the Group applied this approach to its
largest property lease; or  -an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments – the Group applied this approach to all other leases  The Group used the following practical
expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17.  -Applied the exemption not to recognize right-of-use assets and liabilities for leases with less
than 12 months of lease term;  -Excluded initial direct costs from measuring the right-of-use asset at the date of initial application;
and  -Used hindsight when determining the lease term if the contract contains options to extend or terminate
the lease.  The Group leases a number of items
of production equipment. These leases were classified as finance leases under IAS 17. For these finance leases, the carrying amount
of the right-of-use asset and the lease liability at January 1, 2019 were determined at the carrying amount of the lease asset
and lease liability under IAS 17 immediately before that date.  D.
    Impact on transition  On transition to IFRS 16, the Group
recognized additional right-of-use assets and additional lease liabilities. The impact on transition is summarized below.  January 1 2019A$Right-of-use assets
    1,106,486Lease liabilities
    1,106,486  When measuring lease liabilities for
leases that were classified as operating leases, the Group discounted lease payments using its incremental borrowing rate at January
1, 2019. The weighted- average rate applied is 6%.  A$Operating lease commitments at December 31, 2018 as disclosed in the Group’s 
consolidated financial statements
    1,333,260Net present value of lease commitments/liabilities at January 1, 2019
    1,106,486Finance lease liabilities recognized as at December 31, 2018
    57,292- Recognition exemption for leases of low-value assets
    -- Recognition exemption of leases
with less than 12 months of lease term at transition
    -- Extension options
    reasonably certain to be exercised
    -Lease liabilities recognized at January 1, 2019
    1,163,778 Right of use assets PropertyA$As at January 1, 2019 – remark 1
    1,106,486During the periodAddition – remark 2
    1,267,476Terminations
    (825,454)Transfer from plant and equipment
    41,838Depreciation
    (488,520)Exchange difference
    6,066Balance at December 31, 2019
    1,107,892  Remark:  1.As a result of initially applying IFRS 16, in relation to the leases that were previously
classified as operating leases, the Group recognized A$1,106,486 of right-of-use assets and A$1,106,486 of lease liabilities as
at January 1, 2019.  2.During the year ended December 31, 2019, the Group entered into 3
new lease agreements for rental of property for two years. The Group makes fixed monthly payments. On lease commencement, the Group
recognized A$1,267,476 of right-of-use assets and A$1,323,407 of lease liabilities.  Also in relation to those leases under
IFRS 16, the Group has recognized depreciation and interest costs, instead of operating lease expense. During the year ended December
31, 2019, the Group recognized A$488,520 of depreciation charges and A$109,027 of interest costs from these leases.   F-19    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
(Continued)  (ac)
    New, Revised or Amending Accounting
Standards and Interpretations (Continued)  (ii)
    New standards and interpretations not yet adopted  A number
of new standards, amendments to standards and interpretations issued by the IASB which are not yet mandatorily applicable to the
Group have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are
set out as below and not expected to have a significant impact on the Group’s consolidated financial statements. The Group
does not plan to adopt these standards early.  -Amendments to References to Conceptual Framework in IFRS Standards.;-Definition of a Business (Amendments to IFRS 3);-Definition of Material (Amendments to IAS 1 and IAS 8); and-IFRS 17 Insurance Contracts.   F-20    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued)  (ad)
    Critical Accounting Judgments,
Estimates and Assumptions The preparation of the consolidated financial statements requires
management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated financial statements.
Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgments, estimates and assumptions on historical experience and on other various factors,
including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgments and estimates will seldom equal the related actual results. The judgments, estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below. (i)
    Goodwill and other intangible assets The goodwill included in the consolidated financial
statements was derived from the acquisition of Marvel Digital Limited. Determining whether goodwill is impaired requires an estimation
of the value in use of the cash generating unit (“CGU”) to which goodwill have been allocated. The value in use calculation
requires the Group to estimate the future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate
the present value. Where the actual future cash flows are less than expected, a material impairment loss may arise. At the end
of the reporting year, the carrying amount of goodwill is A$NIL (2018: A$4,468,293). Details of the recoverable amount calculations
are disclosed in Note 16. (ii)
    Provision for impairment of receivables The provision for impairment of receivables assessment
requires a degree of estimation and judgment. The level of provision is assessed by taking into account the recent sales experience,
the ageing of receivables, historical collection rates and specific knowledge of the individual debtor’s financial position.
Refer to Note 13 for further details. (iii)
    Estimation of useful lives of assets The Group determines the estimated useful lives and
related depreciation and amortization charges for its plant and equipment and finite life intangible assets. The useful lives could
change significantly as a result of technical innovations or some other events. The depreciation and amortization charge will increase
where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been
abandoned or sold will be written off or written down. Please refer to Note 3(e) and 3(k) for further detail. (iv)
    Income tax The Group is subject to income
taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax and
in assessing whether deferred tax assets and certain deferred tax liabilities are recognized in the consolidated statement of financial
position. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are
recognized only where it is considered more likely than not that they will be recovered, which is dependent on the generation of
sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management’s estimates
of future cash flows. In addition, there are many transactions and calculations undertaken during the ordinary course of business
for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax audit issues based
on the Group’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Judgements are also required about
the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is
a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred
tax liabilities recognized in the consolidated statement of financial position and the amount of other tax losses and temporary
differences not yet recognized. In such circumstances, some or all of the carrying amounts of recognized deferred tax assets and
liabilities may require adjustments, resulting in a corresponding credit or charge to the consolidated statement of profit or loss
and comprehensive income (loss).   F-21    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued)  (ad)
    Critical Accounting Judgments, Estimates and Assumptions (continued) (v)
    Capitalized technology development expenditure in intangibles In determining which technology
development expenditure may be capitalized, the Group applies judgement to distinguish those costs which have a direct relationship
to the criteria for capitalization described in accounting policy Note 3(e), from those which should be expensed in the period
incurred. This involves evaluating the nature of work performed by staff as well as universities, educational and professional
institutions, third party consultants and contractors, and in many cases includes a judgmental apportionment of costs. (vi)
    Impairment of non-financial assets The Group assesses impairment
of all assets (including intangible assets) at each reporting date by evaluating conditions specific to the Group and to the particular
asset that may lead to impairment. These include product, technology, economic and political environments and future product expectations.
If an impairment trigger exists, the recoverable amount of the asset is determined. Given the current uncertain economic environment
management considered that the indicators of impairment were significant enough and as such these assets have been tested for impairment
in this financial period. Refer to Note 3(h) for details regarding the method and assumptions used. (vii)
    Fair value of convertible bonds The fair value of convertible
bonds are determined using valuation techniques including reference to other instruments that are substantially the same, discounted
cash flow analysis and option pricing models. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. (viii)
    Fair value of derivative financial instruments The fair values of derivative
financial instruments that are not quoted in active markets are determined by using valuation techniques. Valuation techniques
used include discounted cash flows analysis and models with built-in functions available in externally acquired financial analysis
or risk management systems widely used by the industry such as option pricing models. To the extent practical, the models use observable
data. In addition, valuation adjustments may be adopted if factors such as credit risk are not considered in the valuation models.
Management judgement and estimates are required for the selection of appropriate valuation parameters, assumptions and modeling
techniques. (viii)
    Valuation of contingent consideration The contingent consideration
to be transferred by the acquirer is recognized at acquisition-date fair value. The fair value of contingent consideration was
based on an independent valuation which is determined by using the discounted cash flow method on the probability-weighted financial
projection of MDL for the period from October 1, 2015 to September 30, 2017 and is under level 3 fair value adjustment which involve
significant estimates and judgements from the management. There is no more contingent liabilities as at December 31, 2018 and 2019,
as the Company recognized the actual deferred performance fee to be paid to MFL of A$15,110,749 in 2017.   F-22    NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (Continued)  (ae)
    Standards issued but not yet effective  The new and amended standards and interpretations that are issued,
but not yet effective, up to the date of issuance of the Group’s consolidated financial statements are disclosed below. The
Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.  (i)
    IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS
17 Insurance Contracts (“IFRS 17”), a comprehensive new accounting standard for insurance contracts covering recognition
and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (“IFRS 4”)
that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance),
regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary
participation features. A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for
insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely
based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering
all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by: • A specific adaptation for contracts
with direct participation features (the variable fee approach) • A simplified approach (the premium allocation approach) mainly
for short-duration contracts IFRS 17 is effective for reporting periods beginning on or after 1 January 2021, with comparative
figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it
first applies IFRS 17. This standard is not applicable to the Group.  (ii)
    Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued
amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of
activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether
market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process
is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New
illustrative examples were provided along with the amendments. Since the amendments apply prospectively
to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments
on the date of transition.  (iii)
    Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued
amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new
definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to
influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity.’ The amendments to the definition
of material is not expected to have a significant impact on the Group’s consolidated financial statements.   F-23    NOTE 4. REVENUE AND SEGMENT INFORMATION  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Development, sales and distribution of 3D autostereoscopic products and conversion equipment
    
    1,273,921
    
    1,262,066
    
    4,365,364Sales of software and technology solutions
    
    1,504
    
    13,731
    
    1,180,491Sales and distribution of audio products
    
    -
    
    48,609
    
    54,251Provision of consultancy and other services
    
    -
    
    -
    
    162,605Total Revenue
    
    1,275,425
    
    1,324,406
    
    5,762,711 Operating segments have been determined
on the basis of reports reviewed by the executive director. The executive director is considered to be the chief operating decision
maker of the Group. The executive director considers that the Group has assessed and allocated resources on this basis. The executive
director considers that the Group has three operating segments for the year ended December 31, 2019 (2017: four and 2018: four),
being (1) the development, sale and distribution of autostereoscopic 3D displays, and conversion equipment, software and others,
(2) provision of consultancy services and (3) corporate. In the prior years, the Group also had the business segment sale and distribution
of audio products. Revenue by geographic location  The Group’s operations are located
in the PRC and Hong Kong. The following table provides an analysis of the Group’s sales by geographical markets based on
locations of customers: ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Australia
    
    -
    
    -
    
    -Hong Kong
    
    1,195,150
    
    326,943
    
    3,235,872China
    
    80,275
    
    997,463
    
    2,526,8391,275,425
    
    1,324,406
    
    5,762,711  Non-current assets by geographic
location ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Australia
    
    -
    
    4,468,293
    
    13,062,904Hong Kong
    
    13,136,585
    
    14,534,313
    
    12,384,224China
    
    1,580,444
    
    1,030,154
    
    1,213,95114,717,029
    
    20,032,760
    
    26,661,079  F-24    NOTE 4. REVENUE AND SEGMENT INFORMATION (Continued) Major customers For the year ended December 31,
2019, the Group has two individual customers (2018 and 2017: 2 and 5 respectively) with revenues comprising more than 10% of Group’s
revenues and their respective receivables due from these customers are disclosed below:  December 31, 2019
    
    December 31, 2018
    
    December 31, 2017Percentage of
        Revenue
    
    Balance due
        A$
    
    Percentage of
        Revenue
    
    Balance due
        A$
    
    Percentage of
        Revenue
    
    Balance due
        A$Customer A
    
    41%
    
    -
    
    -
    
    -
    
    -
    
    -Customer B
    
    13%
    
    116,488
    
    -
    
    -
    
    -
    
    -Customer C
    
    -
    
    -
    
    44%
    
    576,590
    
    -
    
    -Customer D
    
    -
    
    -
    
    28%
    
    346,163
    
    -
    
    -Customer E
    
    -
    
    -
    
    -
    
    -
    
    20%
    
    -Customer F
    
    -
    
    -
    
    -
    
    -
    
    14%
    
    521,334Customer G
    
    -
    
    -
    
    -
    
    -
    
    13%
    
    802,009Customer H
    
    -
    
    -
    
    -
    
    -
    
    11%
    
    9,029Customer I
    
    
    
    
    
    
    
    
    
    10%
    
    50,717  F-25    NOTE 4. REVENUE AND SEGMENT INFORMATION
(Continued) Segment information for the reporting
period is as follows:  For the year ended December 31, 2019
    
    Development, sale and distribution of 3D displays, conversion equipment, software and othersA$
    
    Sales and distribution of audio products*A$
    
    Consultancy servicesA$
    
    CorporateA$
    
    TotalA$RevenueRevenue from operating activities
    
    1,275,425
    
    -
    
    -
    
    -
    
    1,275,425Interest income
    
    115,707
    
    -
    
    -
    
    55
    
    115,762Fair value change in derivative financial instruments
    
    -
    
    -
    
    -
    
    127,551
    
    127,551Other income
    
    807,831
    
    -
    
    -
    
    -
    
    807,831Gain on disposal of property and equipment
    
    212,195
    
    -
    
    -
    
    -
    
    212,195Segment revenue
    
    2,411,158
    
    -
    
    -
    
    127,606
    
    2,538,764Cost of sales
    
    1,008,821
    
    -
    
    -
    
    -
    
    1,008,821Employee benefit expenses
    
    3,302,504
    
    -
    
    42,573
    
    689,301
    
    4,034,378Depreciation and amortization expenses
    
    3,166,643
    
    -
    
    7,375
    
    766
    
    3,174,784Professional and consulting expenses
    
    711,172
    
    -
    
    547,018
    
    761,780
    
    2,019,970Travel and accommodation expenses
    
    174,914
    
    -
    
    51,171
    
    55,810
    
    281,895Other operating expenses
    
    1,731,000
    
    -
    
    5,544
    
    17,452
    
    1,753,996Provision for impairment loss of goodwill
    
    -
    
    -
    
    -
    
    4,486,301
    
    4,486,301Provision for obsolesce inventory
    
    799,871
    
    -
    
    -
    
    -
    
    799,871Finance costs
    
    1,561,625
    
    -
    
    -
    
    -
    
    1,561,625Segment expenses
    
    12,456,550
    
    -
    
    653,681
    
    6,011,410
    
    19,121,641Segment operating (loss) / profit
    
    (10,045,392)
    
    -
    
    (653,681)
    
    (5,883,804)
    
    (16,582,877)Segment assets 2019
    
    12,498,397
    
    -
    
    29,716
    
    7,418,163
    
    19,946,276Segment liabilities 2019
    
    16,209,166
    
    -
    
    3,004,589
    
    653,498
    
    19,867,253   * Discontinued in 2019   F-26    NOTE 4. REVENUE AND SEGMENT INFORMATION
(Continued)  For the year ended December 31, 2018
    
    Development, sale and distribution of 3D displays, conversion equipment, software and othersA$
    
    Sales and distribution of audio productsA$
    
    Consultancy servicesA$
    
    CorporateA$
    
    TotalA$RevenueRevenue from operating activities
    
    1,275,797
    
    48,609
    
    -
    
    -
    
    1,324,406Interest income
    
    21,343
    
    1
    
    -
    
    65
    
    21,409Fair value change in derivative financial instruments
    
    -
    
    -
    
    -
    
    709,543
    
    709,543Other income
    
    469,660
    
    -
    
    -
    
    -
    
    469,660Gain / (loss) on disposal of subsidiaries
    
    521,042
    
    (39,399)
    
    -
    
    127,352
    
    608,995Segment revenue
    
    2,287,842
    
    9,211
    
    -
    
    836,960
    
    3,134,013Cost of sales
    
    696,787
    
    26,924
    
    -
    
    -
    
    723,711Employee benefit expenses
    
    2,154,015
    
    -
    
    32,025
    
    67,371
    
    2,253,411Depreciation and amortization expenses
    
    2,002,195
    
    586
    
    26,592
    
    -
    
    2,029,373Professional and consulting expenses
    
    1,273,595
    
    -
    
    -
    
    473,167
    
    1,746,762Travel and accommodation expenses
    
    244,867
    
    481
    
    21,142
    
    117,694
    
    384,184Other operating expenses
    
    2,175,550
    
    (446,085)
    
    2,530
    
    278,147
    
    2,010,142Provision for impairment loss of goodwill
    
    -
    
    -
    
    -
    
    9,953,311
    
    9,953,311Finance costs
    
    986,531
    
    -
    
    -
    
    396,868
    
    1,383,399Segment expenses
    
    9,533,540
    
    (418,094)
    
    82,289
    
    11,286,558
    
    20,484,293Segment operating (loss) / profit
    
    (7,245,698)
    
    427,305
    
    (82,289)
    
    (10,449,598)
    
    (17,350,280)Segment assets 2018
    
    11,674,848
    
    -
    
    35,610
    
    14,322,616
    
    26,033,074Segment liabilities 2018
    
    2,797,393
    
    -
    
    (688,268)
    
    7,302,198
    
    9,411,323   F-27    NOTE 4. REVENUE AND SEGMENT INFORMATION
(Continued)  For the year ended December 31, 2017
    
    Development, sale and distribution of 3D displays, conversion equipment, software and othersA$
    
    Sales and distribution of audio productsA$
    
    Consultancy servicesA$
    
    CorporateA$
    
    TotalA$RevenueRevenue from operating activities
    
    5,708,460
    
    54,251
    
    -
    
    -
    
    5,762,711Interest income
    
    3,030
    
    -
    
    -
    
    62
    
    3,092Fair value change in contingent consideration liability
    
    -
    
    -
    
    -
    
    3,953,537
    
    3,953,537Other income
    
    434,296
    
    -
    
    -
    
    -
    
    434,296Segment revenue
    
    6,145,786
    
    54,251
    
    -
    
    3,953,599
    
    10,153,636Cost of sales
    
    2,506,037
    
    42,027
    
    -
    
    -
    
    2,548,064Employee benefit expenses
    
    1,681,123
    
    5,831
    
    134,415
    
    66,323
    
    1,887,692Depreciation and amortization expenses
    
    1,937,133
    
    1,001
    
    79,930
    
    3,067
    
    2,021,131Professional and consulting expenses
    
    36,482
    
    1,913
    
    11,808
    
    251,529
    
    301,732Travel and accommodation expenses
    
    285,693
    
    6,376
    
    1,508
    
    39,926
    
    333,503Other operating expenses
    
    1,184,595
    
    18,626
    
    17,768
    
    227,971
    
    1,448,960Finance costs
    
    107,101
    
    -
    
    -
    
    -
    
    107,101Segment expenses
    
    7,738,164
    
    75,774
    
    245,429
    
    588,816
    
    8,648,183Segment operating profit / (loss)
    
    (1,592,378)
    
    (21,523)
    
    (245,429)
    
    3,364,783
    
    1,505,453Segment assets 2017
    
    16,868,789
    
    73,130
    
    57,923
    
    18,859,607
    
    35,859,449Segment liabilities 2017
    
    4,615,366
    
    76,731
    
    (587,484)
    
    16,364,502
    
    20,469,115 In presenting the geographic information,
segment revenue has been based on the geographic location of customers and segment assets were based on the geographic location
of the assets.   F-28    NOTE 5. GAIN ON FAIR VALUE CHANGE IN CONTINGENT CONSIDERATION
LIABILITY  As at December 31, 2018 and 2019, the Group
did not have any contingent consideration liability.  In 2017, the fair value change in contingent
consideration liability represented the fair value decrease in contingent consideration liability in relation to the acquisition
of Marvel Digital Limited ("MDL") from Marvel Finance Limited ("MFL"). In accordance to the terms of MDL acquisition,
the Company was to pay a deferred consideration calculated at 5 times of the 2 years average of the consolidated profits of MDL
from the completion date less the initial consideration. As of 30 September 2017, there was a contingent liability of A$15,110,749
which was recognized as the actual deferred performance fee paid to MFL. This resulted in the write back of liabilities and a gain
on fair value change in contingent consideration liability of A$3,953,537 and a credit to foreign exchange reserve of A$1,683,749
in 2017.   NOTE 6. OTHER INCOME ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Government grant
    
    789,083
    
    436,889
    
    426,281Sundry income
    
    18,748
    
    32,771
    
    8,015807,831
    
    469,660
    
    434,296   NOTE 7. FINANCE COSTS  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Bank overdraft and borrowing interest
    
    84,920
    
    53,262
    
    42,285Interest on revolving loan
    
    50,328
    
    -
    
    -Interest on finance lease liability
    
    109,675
    
    2,993
    
    3,750Interest on convertible bonds (Note 24)
    
    1,316,702
    
    930,276
    
    -Interest charged by the ultimate holding company
    
    -
    
    396,868
    
    61,0661,561,625
    
    1,383,399
    
    107,101  F-29    NOTE 8. (LOSS) / PROFIT BEFORE INCOME TAX ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Employee benefit expenses:- Wages and salaries
    
    3,352,495
    
    2,752,041
    
    2,479,754- Defined contribution superannuation plan expenses
    
    255,708
    
    150,114
    
    106,414- Less: Labor cost allocated to development projects
    
    (289,126)
    
    (716,115)
    
    (764,476)3,319,077
    
    2,186,040
    
    1,821,692- Executive directors’ remuneration
    
    683,944
    
    -
    
    -- Non-executive directors’ remuneration
    
    31,357
    
    67,371
    
    66,000715,301
    
    67,371
    
    66,000Total employee benefit expenses
    
    4,034,378
    
    2,253,411
    
    1,887,692Depreciation and amortization of non-current assets:- Leasehold improvements
    
    44,698
    
    310,370
    
    222,015- Office furniture and equipment
    
    504,447
    
    115,123
    
    304,262- Motor vehicle
    
    18,757
    
    9,813
    
    11,087- Right of use assets
    
    488,520
    
    -
    
    -- Intangible assets
    
    2,118,362
    
    1,594,067
    
    1,483,767Total depreciation and amortization
    
    3,174,784
    
    2,029,373
    
    2,021,131Other Expenses:Allowances for doubtful debts
    
    11,052
    
    124,528
    
    -Rental expense on operating lease
    
    637,321
    
    674,112
    
    407,184Provision for inventories obsolescence
    
    799,871
    
    100,000
    
    -Audit and review of financial statements:- statutory audit of the Group in Australia
    
    55,157
    
    62,794
    
    64,000- statutory audit of the Group in USA
    
    435,899
    
    -
    
    -- auditors of the subsidiaries in Hong Kong and China
    
    14,246
    
    9,175
    
    4,097- audit for other reporting purposes
    
    -
    
    69,110
    
    123,638Total audit and review fees
    
    505,302
    
    141,079
    
    191,735  F-30    NOTE 9. INCOME TAX (EXPENSE) / CREDIT ConsolidatedDecember
    31, 2019A$
    
    December
    31, 2018A$
    
    December
    31, 2017A$Income tax over provision / (income tax expense)
    
    -
    
    102,853
    
    -Deferred tax (expense) / credit
    
    (117,322)
    
    404,204
    
    187,213Income tax (expenses) / credit
    
    (117,322)
    
    507,057
    
    187,213  (a)
    The prima-facie tax on (loss) / profit before income tax is reconciled to the income tax credit /(expense) as follows:  ConsolidatedDecember
    31, 2019A$
    
    December
    31, 2018A$
    
    December
    31, 2017A$Numerical reconciliation of income tax expense to prima facie tax payable(Loss) / Profit before income tax
    
    (16,582,877)
    
    (17,350,280)
    
    1,505,453Income
    tax credit / (expense) on profit / (loss) before income tax at 30%
    
    4,974,863
    
    5,205,084
    
    (451,636)Difference in overseas tax rates
    
    (3,260,006)
    
    (830,805)
    
    27,266Add / (less) the tax effect of:Reversal of over provision
    
    -
    
    102,853
    
    -Tax losses and temporary differences for the year for which no deferred tax is recognized
    
    (1,832,179)
    
    (3,970,075)
    
    611,583Income tax (expenses) / credit
    
    (117,322)
    
    507,057
    
    187,213  (b)
    Deferred tax assets / (liabilities) arising from temporary differences and unused tax losses can be summarized as follows:  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Balance brought forward
    
    
    
    (1,244,814)
    
    (1,586,309)Temporary differences derecognized
    
    
    
    (117,322)
    
    404,204Release of disposal of subsidiaries
    
    
    
    -
    
    65,232Exchange difference
    
    
    
    (10,517)
    
    (127,941)Total
    
    
    
    (1,372,653)
    
    (1,244,814)  F-31    NOTE 9. INCOME TAX CREDIT / (EXPENSE) (Continued)  (c)
    Income tax payable in the consolidated statement of financial position represents:  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Balance brought forward
    
    
    
    -
    
    (1,046,219)Over provision of prior years
    
    
    
    -
    
    102,853Release on disposal of subsidiaries
    
    
    
    -
    
    992,343Exchange difference
    
    
    
    -
    
    (48,977)Total
    
    
    
    -
    
    -   NOTE 10. DIVIDENDS No dividends were declared and paid during
the financial year ended December 31, 2019 (2018: Nil).   NOTE 11. (LOSS) / EARNINGS PER SHARE  ConsolidatedDecember 31, 2019
    
    December
    31, 2018
    
    December
    31, 2017(Loss) / Profit after income tax attributable to shareholders
    
    A$ (15,646,147)
    
    A$ (15,962,278)
    
    A$ 1,695,567Number of ordinary shares
    
    3,377,386
    
    3,377,386
    
    2,643,611Weighted average number of ordinary shares on issue
    
    3,377,386
    
    2,692,543
    
    2,643,611Basic and diluted (loss) / earnings per share
    
    A$ (4.63)
    
    A$ (5.93)
    
    A$ 0.64 The above number of shares and earnings
per share in 2017 have been adjusted for the 30-for-1 reverse stock split effective on May 8, 2017.   NOTE 12. INVENTORIES Inventories consist of the following: ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018A$Raw materials
    
    843,686
    
    1,216,298Finished goods – displays and other products
    
    789,984
    
    277,767Provision for inventories obsolescence
    
    (884,497)
    
    (100,000)Total
    
    749,173
    
    1,394,065   F-32    NOTE 13. TRADE AND OTHER RECEIVABLES  ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018A$Trade receivables
    
    892,488
    
    1,086,161Other receivables
    
    2,390
    
    222,132894,878
    
    1,308,293Less: Allowances for doubtful debts
    
    (123,920)
    
    (124,528)770,958
    
    1,183,765  (a)
    Ageing Analysis  The ageing analysis of trade receivables is as follows: ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Current
    
    -
    
    -Past due:< 31 days
    
    31,495
    
    74,76231 - 90 days
    
    12,655
    
    3,100> 90 days
    
    848,338
    
    1,008,299892,488
    
    1,086,161  (b)
    Trade receivables
which are past due but not impaired  Included in the Group’s trade receivable
balances are debtors with an aggregate carrying amount of A$892,488 (2018: A$1,086,161) which are past due at the end of the reporting
period for which the Group has made provision for impairment loss of A$123,920 (2018: A$124,528). The carrying value of trade receivables
is considered reasonable approximation of fair value to the short term nature of the balance. The maximum exposure to credit risk at
the reporting date is the fair value of each class of receivables in the consolidated financial statements. Refer to Note 31(e)
for further details of credit risk management.   NOTE 14. OTHER ASSETS  ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018
A$Prepayments
    
    311,710
    
    432,387Trade deposits
    
    1,522,976
    
    559,683Other deposits
    
    262,228
    
    874,840VAT receivable
    
    194,359
    
    41,3592,291,273
    
    1,908,269   F-33   NOTE 15. PLANT AND EQUIPMENT  ConsolidatedLeasehold ImprovementsA$
    
    Office Furniture and EquipmentA$
    
    Motor VehicleA$
    
    TotalA$At January 1, 2018Cost
    
    1,143,329
    
    1,905,962
    
    82,315
    
    3,131,606Accumulated depreciation
    
    (937,745)
    
    (1,601,569)
    
    (10,975)
    
    (2,550,289)Net book amount
    
    205,584
    
    304,393
    
    71,340
    
    581,317Year ended December 31, 2018Opening net book amount
    
    205,584
    
    304,393
    
    71,340
    
    581,317Additions
    
    86,298
    
    751,940
    
    -
    
    838,238Disposals
    
    -
    
    (190,593)
    
    -
    
    (190,593)Written off
    
    (104,793)
    
    -
    
    (66,578)
    
    (171,371)Depreciation expenses
    
    (115,123)
    
    (310,370)
    
    (9,813)
    
    (435,306)Exchange difference
    
    16,511
    
    25,038
    
    65,646
    
    107,195Closing net book amount at December 31, 2018
    
    88,477
    
    580,408
    
    60,595
    
    729,480At December 31, 2019Cost
    
    731,794
    
    2,290,643
    
    68,170
    
    3,090,607Accumulated depreciation
    
    (643,317)
    
    (1,710,235)
    
    (7,575)
    
    (2,361,127)Net book amount at December 31, 2019
    
    88,477
    
    580,408
    
    60,595
    
    729,480  Year ended December 31, 2019Opening net book amount
    
    88,477
    
    580,408
    
    60,595
    
    729,480Additions
    
    38,866
    
    1,184,162
    
    -
    
    1,223,028Disposals
    
    -
    
    (636,587)
    
    -
    
    (636,587)Transfer to right of use assets (Note 23(a))
    
    -
    
    -
    
    (41,838)
    
    (41,838)Depreciation expenses
    
    (44,698)
    
    (504,447)
    
    (18,757)
    
    (567,902)Exchange difference
    
    1,304
    
    21,632
    
    -
    
    22,936Closing net book amount at December 31, 2019
    
    83,949
    
    645,168
    
    -
    
    729,117  At December 31, 2019Cost
    
    826,997
    
    2,888,508
    
    -
    
    3,715,505Accumulated depreciation
    
    (743,048)
    
    (2,243,340)
    
    -
    
    (2,986,388)Net book amount at December 31, 2019
    
    83,949
    
    645,168
    
    -
    
    729,117   F-34    NOTE 16. INTANGIBLE ASSETS AND GOODWILL  ConsolidatedGoodwillA$
    
    Autostereoscopic 3D Display Technologies and KnowhowA$
    
    Patents and TrademarkA$
    
    Software and LicenseA$
    
    TotalA$CostAt January 1, 2018
    
    13,061,371
    
    10,453,504
    
    1,216,627
    
    33,377
    
    24,764,879Additions
    
    -
    
    -
    
    77,050
    
    510,814
    
    587,864Reclassification
    
    -
    
    3,032,234
    
    -
    
    -
    
    3,032,234Exchange difference
    
    1,360,233
    
    1,224,697
    
    (5,531)
    
    (26,026)
    
    2,553,373At December 31, 2018
    
    14,421,604
    
    14,710,435
    
    1,288,146
    
    518,165
    
    30,938,350At January 1, 2019
    
    14,421,604
    
    14,710,435
    
    1,288,146
    
    518,165
    
    30,938,350Additions
    
    -
    
    -
    
    -
    
    7,283
    
    7,283Reclassification
    
    -
    
    -
    
    -
    
    -
    
    -Exchange difference
    
    157,103
    
    169,887
    
    (4,446)
    
    6,023
    
    328,567At December 31, 2019
    
    14,578,707
    
    14,880,322
    
    1,283,700
    
    531,471
    
    31,274,200Accumulated Amortization and Impairment LossesAt January 1, 2018
    
    -
    
    (2,556,436)
    
    (127,396)
    
    (28,737)
    
    (2,712,569)Amortization
    
    -
    
    (1,362,101)
    
    (167,342)
    
    (64,624)
    
    (1,594,067)Provision for impairment
    
    (9,953,311)
    
    -
    
    -
    
    -
    
    (9,953,311)Disposal
    
    -
    
    -
    
    -
    
    -
    
    -Exchange difference
    
    -
    
    (330,226)
    
    (47,130)
    
    22,120
    
    (355,236)At December 31, 2018
    
    (9,953,311)
    
    (4,248,763)
    
    (341,868)
    
    (71,241)
    
    (14,615,183)At January 1, 2019
    
    (9,953,311)
    
    (4,248,763)
    
    (341,868)
    
    (71,241)
    
    (14,615,183)Amortization
    
    -
    
    (1,863,639)
    
    (130,221)
    
    (124,502)
    
    (2,118,362)Provision for impairment
    
    (4,486,301)
    
    -
    
    -
    
    -
    
    (4,486,301)Disposal
    
    -
    
    -
    
    -
    
    -
    
    -Exchange difference
    
    (139,095)
    
    (45,470)
    
    81,598
    
    (584)
    
    (103,551)At December 31, 2019
    
    (14,578,707)
    
    (6,157,872)
    
    (390,491)
    
    (196,327)
    
    (21,323,397)Carrying AmountAt December 31, 2018
    
    4,468,293
    
    10,461,672
    
    946,278
    
    446,924
    
    16,323,167At December 31, 2019
    
    -
    
    8,722,450
    
    893,209
    
    335,144
    
    9,950,803  The technology and software applied to
develop the autostereoscopic 3D display technologies was included with the acquisition of Marvel Digital Limited on September 30,
2015 and was revalued to fair value at that time by an independent valuer. For the above goodwill and autostereoscopic
3D display technologies and knowhow at the reporting period end, the management has considered the recoverable amount of the corresponding
cash generating unit which has been determined by a value-in-use calculation. The key assumptions for the value in use calculations
are those regarding the discount rates, growth rates and expected changes in gross margin of the products and services. Management
estimates discount rates that reflect current market assessments of the time value of money and the risks specific to the cash
generating unit. The growth rates are based on industry growth forecasts. Changes in gross margin are based on past practices and
expectations of future changes in the market. The Group performed impairment review for the goodwill, based on the cash flow forecast
derived from the most recent financial budgets and estimated future cash flows for the following five years as approved by management
and using a discount rate of 20% (2018: 20%). The present value of future cash flows has been calculated using projected cash flows
approved by the board covering year 1. The present value of future cash flows for years 2 to 5 have been calculated using average
growth rates of approximately 146%. The recoverable amount of the corresponding cash generating unit from our value-in-use calculation
is estimated to be approximately A$14,436,000, which was exceeded by the carrying amount of intangible assets and goodwill. Based
on the results of impairment review and value-in-use assessment, the management considered that the goodwill and intangible assets
have suffered an impairment loss and provision of impairment for goodwill of A$4,486,301 (2018: A$9,953,311) has been made.  There was no reclassification of development
costs to intangible assets in 2019. In 2018, included in the amount of reclassification was A$3,032,234 being transferred from
development projects and reclassified as intangible assets. Development projects are reclassified as intangible asset only when
the Group can demonstrate the technical feasibility of completing the intangible asset itself or technology so that it will be
available for application in existing or new products or for sale, its intention to complete and its ability to use or sell the
asset, how the asset will generate future economic benefits, the availability of resources to complete the development, the ability
to measure reliably the expenditure attributable to the intangible asset during its development and the ability to use the tangible
asset generated.   F-35    NOTE 17. DEVELOPMENT PROJECTS  ConsolidatedDecember 31, 2019
        A$
    
    December 31, 2018
        A$At January 1:Cost
    
    2,980,113
    
    4,027,452Accumulated impairment losses
    
    -
    
    -Net book amount
    
    2,980,113
    
    4,027,452A$
    
    A$Year ended December 31:Opening net book amount
    
    2,980,113
    
    4,027,452Additions
    
    598,649
    
    1,884,172Reclassification
    
    -
    
    (3,147,419)Disposal
    
    (687)
    
    (120,715)Exchange difference
    
    33,261
    
    336,623Closing net book amount
    
    3,611,336
    
    2,980,113A$
    
    A$At December 31:Cost
    
    3,611,336
    
    2,980,113Accumulated impairment losses
    
    -
    
    -Net book amount
    
    3,611,336
    
    2,980,113  Development projects represent the development
costs directly attributable to and incurred for several internal technology projects of the Group which are in cooperation with
the universities and professional technology institutions in Hong Kong for developing innovative technology to be applied in the
existing and new 3D related products of the Group. Cost model is applied for development projects which require these assets to
be carried at cost less any accumulated impairment losses. The Group had performed impairment review for the development projects
at the reporting period end and there was no indication that the development projects have suffered an impairment loss. In 2018, A$3,032,234 was included in
the amount of reclassification being transferred and reclassified to intangible assets. These represented the accumulated development
costs of projects that were completed during the year.   NOTE 18. TRADE AND OTHER LIABILITIES  ConsolidatedDecember 31, 2019A$
    
    December
31, 2018
A$Trade payables (Note 32 (dii))
    
    109,746
    
    24,275Accruals
    
    328,071
    
    593,245Trade deposits received
    
    900,740
    
    18,522Other borrowing (1)
    
    1,761,308
    
    -Other payable  (Note 32 (dii))
    
    1,238,630
    
    -4,338,495
    
    636,042  (1)In August 2019, a Group
company entered into a revolving loan agreement to borrow with a third party. The loan is unsecured, carry interest at 8% per annual
and repayable on December 31, 2020.   NOTE 19. PROVISION FOR EMPLOYEE BENEFIT  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Provision for employee benefits
    
    64,135
    
    54,320 The provision for employee benefits represents the unpaid
annual leave provision.   F-36    NOTE 20. AMOUNTS DUE TO RELATED COMPANIES  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Current portion
    
    6,101,850
    
    2,130,368Non-current portion
    
    -
    
    -6,101,850
    
    2,130,368 In 2018, a Group company entered into
a loan agreement to borrow A$1,664,924 (HK$9,200,000) from Oakridge (Hong Kong) Corporation Limited (“Oakridge”), a
company owned and controlled by Dr. Herbert Ying Chiu LEE, the controlling shareholder of the Company. The loan was non-interest
bearing, unsecured and repayable on March 31, 2020 after an extension from the previous repayment date of September 30, 2019. During
the year 2019, Oakridge advanced to the Group an additional A$3,478,140 (HK$19,000,000). These advances were non-interest bearing,
non-secured and repayable on March 31, 2020. As at December 31, 2019, the Group owed Oakridge A$5,162,292 (HK$28,200,000) in respect
of these loans. On March 31, 2020, the terms of the
above said unsecured loans of A$5,162,292 (HK$28,200,000) was changed to interest bearing at an annual interest rate of 6.0% and
the repayment date was extended to March 31, 2021.   NOTE 21. AMOUNT DUE TO ULTIMATE HOLDING COMPANY  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Current portion
    
    582,832
    
    172,773Non-current portion
    
    -
    
    -582,832
    
    172,773  In 2018, the Group entered into two loans with
Marvel Finance Limited ("MFL") where the Group lend approximately a total of A$2,117,349 (HK$11,700,000) to MFL. One
loan of A$1,085,820 (HK$6,000,000) bears interest at 10% per annum and the second loan of A$1,031,529 (HK$5,700,000) bears interests
at 5% per annum. Both loans are unsecured and repayable on September 30, 2019. During the year, the Group earned interest income
of A$115,678 (HK$637,301) from these two loans.   NOTE 22. BORROWINGS  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$Bank overdraft, unsecured
    
    902,482
    
    894,510Bank borrowings, unsecured
    
    915,300
    
    814,3651,817,782
    
    1,708,875 Bank overdraft and borrowings carry
interest at an annual interest rate of 3.0% over the one month HIBOR. As at December 31, 2019, the Group had
total banking facilities of A$1,830,600 (2018: A$1,809,700) of which A$1,817,782 (2018: A$1,708,875) were utilised. During the year, the Group repaid interest
portion of the bank borrowing on a monthly basis and the two withdrawn principals, A$452,425 and A$361,940 on September 24, 2019
and September 16, 2019 respectively. Furthermore, the Group received three additional borrowings of A$91,530, A$366,120 and A$457,650.
The Group paid the total bank overdraft and borrowing interests of A$84,920 The unsecured bank overdraft and bank
borrowings are guaranteed by our former director, Dr. Herbert Ying Chiu LEE. The Group complied with all bank covenants
and related capital requirements during 2019 and 2018.  F-37    NOTE 23. LEASES  (a)
    Right of use assets  The carrying amount of the Group’s right of use assets and the movements during the year are as follows: ConsolidatedLeased Properties
A$
    
    Motor VehicleA$
    
    TotalA$As at January 1, 2019
    
    
    
    1,106,486
    
    -
    
    1,106,486Additions
    
    
    
    1,267,476
    
    -
    
    1,267,476Terminations
    
    
    
    (825,454)
    
    -
    
    (825,454)Transfer from plant and equipment (Note 15)
    
    
    
    -
    
    41,838
    
    41,838Depreciation expenses
    
    
    
    (488,520)
    
    -
    
    (488,520)Exchange difference
    
    
    
    4,998
    
    1,068
    
    6,066As at December 31, 2019
    
    
    
    1,064,986
    
    42,906
    
    1,107,892Analyzed into:
    
    
    
    
    
    
    
    A$Current portion
    
    
    
    
    
    
    
    682,119Non-current portion
    
    
    
    
    
    
    
    425,7731,107,892  (b)
    Lease liabilities  ConsolidatedDecember 31, 2019
A$
    
    December 31, 2018
A$Within one year
    
    666,868
    
    18,123Two to five years
    
    501,739
    
    39,1691,168,607
    
    57,292Less: Amount due within one year shown under current liabilities
    
    (666,868)
    
    (18,123)501,739
    
    39,169Analyzed into:Current portion
    
    666,868
    
    18,123Non-current portion
    
    501,739
    
    39,1691,168,607
    
    57,292   F-38    NOTE 24. CONVERTIBLE BONDS  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018
A$Face value of convertible bonds issued on 3 January 2018
    
    3,769,470
    
    3,769,470Equity component
    
    (535,948)
    
    (535,948)Derivatives embedded in the convertible bonds issued (Note 25)
    
    (772,112)
    
    (772,112)Liability component on initial recognition at January 3, 2018
    
    2,461,410
    
    2,461,410Interest accrued but not yet paid for the year ended 2018
    
    536,216
    
    -Interest accrued at effective interest rate during the year (Note 7)
    
    1,316,702
    
    930,276Interest paid during the year
    
    (209,392)
    
    (394,060)Exchange difference
    
    315,963
    
    283,118Carrying value as at end of year
    
    4,420,899
    
    3,280,744  On January 3, 2018, the Group entered
into the following agreements in connection with the issue of HK$23 million (equivalent to approximately A$3.8 million) Convertible
Bonds (“Convertible Bonds”): (i) Subscription Agreement between Marvel Digital Limited, a wholly-owned subsidiary of
the Company (the “Issuer” or “MDL”) and an independent third party entity (“Bondholder”) for
the Convertible Bonds, (ii) Deed of Guarantee between the Company and the Bondholder to guarantee the payment obligations under
the Convertible Bonds and (iii) Put Option Deed between the Company and the Bondholder to repurchase any converted MDL Shares as
described below. On the same date, pursuant to the Subscription Agreement, the Convertible Bonds were issued by MDL to the Bondholder
as all the terms and conditions in respect of the subscription of the Convertible Bonds were complied with and fulfilled.  Pursuant to the terms of the Convertible
Bonds, the Convertible Bonds are convertible in the circumstances set out therein into 75,000 ordinary shares of MDL (“MDL
Shares”) at a conversion price of HK$306.67 per share, which is equivalent to 20% of the enlarged issued share capital of
MDL as of the date of the above Subscription Agreement. The Bondholder will have the right to convert the whole of their Convertible
Bonds into ordinary shares of MDL at any time during the period from January 3, 2018 to January 2, 2020. The period may be extended
to a further 12 months subject to the mutual agreement among MDL, the Company and Bondholder. Unless previously redeemed or converted,
the Convertible Bonds will be redeemed at 100% of their principal amount on the maturity date which is 2 years from the Convertible
Bonds issue date.  In connection with the Convertible Bonds, the
Company also entered into a Deed of Guarantee to guarantee the due and punctual performance and observance by the Issuer of its
payment obligations of the bond principal and interest under the Convertible Bonds until all the guaranteed obligations have been
fully satisfied, discharged or paid in full. A Put Option Deed was also entered into between the Company and the Bondholder whereby
the Bondholder can exercise an option, during the Put Option Exercise Period as defined in Note 25, to have IMTE repurchase the
MDL Shares converted by the Bondholder at the principal amount of the converted Convertible Bonds.  The estimated net proceeds from this bond
issue, after deduction of commission and expenses, amount to approximately HK$21.5 million.  Subsequent to the balance sheet date on
January 3, 2020, the Company was not able to pay the Convertible Bonds on the maturity date. On or about January 17, 2020 the Company
and the Bondholder agreed to a payment schedule of paying HK$13 million or approximately A$2.4 million on January 17, 2020 and
the remaining HK$10 million or approximately A$1.9 million to be paid in 4 equal monthly installments of HK$2.5 million or approximately
A$475,000. Furthermore, the interest charged on the outstanding Convertible Bonds amount from January 3, 2020 will be at 15% per
annum.  As at the date of this report, the Group
has fully repaid the installments and the accrued interest.   F-39    NOTE 25. DERIVATIVE FINANCIAL INSTRUMENTS  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018
A$Derivative financial liabilities:Put option liability embedded in the convertible bonds issued (Note 24)
    
    126,095
    
    772,112Fair value change in derivative financial instruments during the year
    
    (127,551)
    
    (709,543)Exchange difference
    
    1,456
    
    63,526Carrying value as at end of year
    
    -
    
    126,095  In connection with the Convertible Bonds
as disclosed in Note 24, a Put Option Deed was entered into between the Company and the Bondholder whereby the Bondholder can exercise
an option, during the Put Option Exercise Period (means the period of 7 days commencing from the day immediately after the date
falling 2 years from the conversion date of the Convertible Bonds or such other date as agreed by the Company and the Bondholder
in writing), to have the Company repurchase the MDL Shares converted by the Bondholder at the principal amount of the converted
Convertible Bonds.  As at December 31, 2019, the management
has determined that the option was not going to be executed and have written off this derivative financial instruments to the consolidated
statement of profit or loss and other comprehensive income (loss).   F-40    NOTE 26. CONTROLLED ENTITIES As at December 31, 2019, the entities
controlled by the Company are as follows:  Name of Subsidiary
    
    Country of Incorporation
    
    Principal Activities
    
    Paid Up Capital
    
    PercentageOwned2019
    
    2018CIMC Marketing Pty. Limited
    
    Australia
    
    Management services and trading
    
    A$1
    
    100%
    
    100%Smartglass Limited 
(formerly Dragon Creative Limited)
    
    Hong Kong
    
    Sale and distribution of
switchable glass and consulting services
    
    HK$8
    
    100%
    
    100%GOXD Technology Limited
    
    Hong Kong
    
    Development and distribution
of 3D digital picture frames
    
    HK$81,357,800
    
    76% (indirect)
    
    100% (indirect)Marvel Digital Limited
    
    Hong Kong
    
    Development of 3D autostereoscopic
display technology and investment holding
    
    HK$45,002,970
    
    95% (indirect)
    
    100% (indirect)Visumotion International Limited
        
(renamed to Cystar International Limited on March 24, 2020)
    
    Hong Kong
    
    Sales of software and provision of
        consultancy services
    
    HK$1
    
    95% (indirect)
    
    100% (indirect)Digital Media Technology Limited
    
    Malaysia
    
    Dormant
    
    US$100
(A$142)
    
    100% (indirect)
    
    100% (indirect)GOXD Dongguan Limited
    
    P.R.C.
    
    Design of 3D picture frame
    
    RMB2,179,403(A$452,640)
    
    76% (indirect)
    
    -Marvel Display Technology (Shenzhen) Limited (formerly known as Marvel Software (Shenzhen) Limited)
    
    P.R.C.
    
    Manufacturing and distribution
of 3D products and provision of 3D consultancy services
    
    RMB14,397,512(A$2,990,219)
    
    95% (indirect)
    
    100% (indirect)Binario Limited
    
    British Virgin Islands
    
    Investment holding
    
    A$1
    
    100%
    
    100%    F-41    NOTE 27. BUSINESS COMBINATIONS (a)
    Disposal of subsidiaries  During the year ended December 31, 2018,
the Group sold 5 subsidiaries. The detail of the sale and the resulting net gain on disposal of subsidiaries are set out below: 2018A$Total disposal consideration
    
    206,034Carrying amount of net liabilities sold (note (i) below)
    
    483,021Gain on sale before income tax and reclassification of foreign currency translation reserve
    
    689,055Reclassification of foreign currency translation reserve
    
    (38,640)Non-controlling interest
    
    (41,420)Income tax expense on gain
    
    -Gain on disposal after income tax
    
    608,995  (i)        Net
liabilities sold: 2018A$Plant and equipment
    
    190,593Development projects
    
    120,715Cash and bank balances
    
    215,528Inventories
    
    550,906Trade and others receivable
    
    179,276Trade and other liabilities
    
    (677,397)Amount due to a related company
    
    (5,067)Income tax payable
    
    (992,343)Deferred tax liabilities
    
    (65,232)(483,021) (ii)        Net
cash flows from disposal of subsidiaries 2018A$Consideration received, satisfied in cash
    
    206,034Cash and bank balances disposed of
    
    (215,528)Net cash outflow
    
    (9,494)   F-42    NOTE 28. ISSUED CAPITAL  (a)
    Share Capital December 31, 2019
    
    December 31, 2018
    
    December 31, 2017Number of shares
    
    A$
    
    Number of shares
    
    A$
    
    Number of shares
    
    A$Ordinary Shares fully paid
    
    3,377,386
    
    18,902,029
    
    3,377,386
    
    18,902,029
    
    2,643,611
    
    10,410,279  (b)
    Movements in ordinary share capital Number of Shares
    
    A$January 1, 2017
    
    79,301,852
    
    10,410,2791-for-30 reverse split of our fully paid ordinary shares
    
    (76,658,241
    )
    -December 31, 2017 and January 1, 2018
    
    2,643,611
    
    10,410,279Issue of shares during the year 2018
    
    25,275
    
    491,750Issue of shares for conversion of debt
    
    708,500
    
    8,000,000December 31, 2018
    
    3,377,386
    
    18,902,029Issue of shares during the year 2019
    
    -
    
    -December 31, 2019
    
    3,377,386
    
    18,902,029 There is only one class of share on
issue being ordinary fully paid shares. Holders of ordinary shares are treated equally in all respects regarding voting rights
and with respect to the participation in dividends and in the distribution of surplus assets upon a winding up. The fully paid
ordinary shares have no par value. On May 2, 2017, the Company effectuated
a 1-for-30 reverse split of the ordinary shares, which was approved at a special meeting of the shareholders on March 2, 2017.
The purpose of the reverse stock split was to enable the Company to meet the Nasdaq’s minimum share price requirement. The
reverse stock split became effective on May 8, 2017 and every thirty shares of our issued and outstanding ordinary shares was automatically
combined into one issued and outstanding ordinary share. This reduced the number of outstanding shares from 79,301,852 shares to
2,643,611 after adjusting for fractional shares. On July 17, 2018, the Company issued
25,275 ordinary shares at a share price of US$14.45 (or about A$19.46) per share for a total subscription amount of A$491,750.
These 25,275 ordinary shares were issued for consultancy services payment. On December 12, 2018, the shareholders
of the Company approved the conversion of A$8,000,000 of debt owed to Marvel Finance Limited, the ultimate holding company by the
issuance of 708,500 shares in the Company. Subsequent to the year end on January
20, 2020, the Company entered into a convertible note purchase agreement with CIMB Limited, an independent third party. Pursuant
to this agreement the holder of the note can convert this note for 2 years from the date of issuance to maturity on January 20,
2022 at a price of US$5.00 per share, subject to adjustment, over the term of the note. The Company, at its sole option, may pay
interests in ordinary shares based on 75% of the average of the closing prices of its ordinary shares for the five trading days
prior to each end-of-quarter interests due date. Further details on the note are set out in Note 37(ii) to the consolidated financial
statements. Subsequent to the year end on February
24, 2020, the Company issued 158,730 shares at a share price of US$6.30 (or about A$9.54) per share for a total subscription amount
of US$1,000,000 (or about A$1.5 million). The proceeds from this sale of shares shall be used for repaying debts and working capital
in the Company. Subsequent to the year end on May 12,
2020, the Company issued 126,984 shares as a result of the exercise of the warrants referred to (c ) below and disclosed in Note
37 to the consolidated financial statements.  (c)
    Warrants Subsequent to the year end on February
24, 2020, and in connection with the sale of the 158,730 shares in the Company, the Company entered into an Ordinary Share Purchase
Warrant agreement for the sale of warrants ("Warrants") to purchase up to 126,984 ordinary shares ("Warrant Shares")
to an accredited investor ("Investor"). The Warrants will be exercisable for the period of 12 months from the date of
issuance, at an exercise price of US$10.50 per Share. Pursuant to the Warrants, if the VWAP of the Company's ordinary shares on
the trading day immediately prior to the exercise date is less than US$10.50, then the Warrants may be exercised at such time by
means of a cashless exercise where each Warrant exercised would receive one Share without any cash payment to the Company. On May
12, 2020, the Investor exercised the Warrants and the Warrant Shares were issued. Further details on the Warrants and the exercise
of the Warrants are set out in Note 37 to the consolidated financial statements.  (d)
    Options on issue There were no share options issued and outstanding during
and at the end of the financial year.   F-43    NOTE 29. RESERVES (a)
    The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations to Australian dollars. (b)
    In 2019, the movement in other reserves represents the release of the reserve to accumulated losses as a result of the redemption of the Convertible Bonds on January 3, 2020 (Note 24).In 2018, the other reserve represented the following: (i)
    Equity component of Convertible Bonds of A$535,948 (Note 24).(ii)
    On August 6, 2018, Marvel Digital Limited (“MDL”), a subsidiary company of the Group issued 15,790 ordinary shares (“New Shares”) in MDL for A$2,573,000 (HK$15,000,000). The issue of New Shares represents 5% of the enlarged issued share capital of MDL. Upon the issuance of the New Shares in MDL to the investor, IMTE’s ownership interest was decreased from 100% to 95%, and the corresponding reserve of A$1,718,689 was recorded. (iii)
    On August 8, 2018, GOXD Technology Limited (“GOXD”), a subsidiary company of the Company issued to investor 20% of the enlarged issued share capital of GOXD for approximately A$5,378,000 (US$4 million). GOXD is a subsidiary of MDL. Upon the issuance of the share in GOXD to the investor, MDL’s shareholding in GOXD was decreased from 100% to 80%, and the reserve of A$2,704,452 was recorded.   F-44    NOTE 30. COMMITMENTS (a)
    Non-cancellable operating leases The Group has entered into commercial
leases for rental accommodations and certain items of plant and equipment. The lease terms ranged from one year to three years. ConsolidatedDecember 31, 2019
    
    December 31, 2018A$
    
    A$Committed at the reporting date but not recognized as liabilities, which are payable:-Within one year
    
    -
    
    585,988-Two to five years
    
    -
    
    747,272-
    
    1,333,260  (b)
    License Agreement with Versitech Limited In September 2015, Versitech
Limited (“Versitech”) and Marvel Digital Limited (“MDL”) entered into a License Agreement in respect to
the sharing of income arising from the intellectual property rights in the video encoding and transmission worldwide. The agreement
provides MDL and its affiliates for the term an exclusive and royalty-bearing license under the patent rights owned by Versitech
to develop, make, have made, use, sell, offer to sell, lease, import, export or otherwise dispose of licensed product in 3D video
encoding and transmission worldwide and with the right to grant sublicense pursuant to the terms of the agreement. MDL shall pay
an upfront payment in the amount of HK$100,000 and a running royalty of 3% of net sales (“3% Royalty”) on licensed
product and licensed process by MDL and its affiliates and sublicensee. Beginning in 2019, the royalty will be the greater of 3%
Royalty and HK$200,000 each year. MDL shall also pay Versitech a total of 15% of all sublicense income received by MDL or any of
its affiliates. In addition, there are milestone payments payable to Versitech Limited upon the event when cumulative gross revenue
arising from the licensed products reaching certain levels with the maximum cumulative total milestone payments of HK$2,000,000.
This project was originally derived from an earlier agreement entered into among the Government of the Hong Kong Special Administrative
Region, MDL and the University of Hong Kong (“HKU”) under the Innovation and Technology Fund University-Industry Collaboration
Programme entitled “Content Generation and Processing Technologies for 3D/Multiview Images and Videos”. Versitech is
a wholly-owned subsidiary and the technology transfer arm of HKU. As at December 31, 2019, the
development of the application of the video encoding and transmission is still under development. Therefore, there has been no
fees paid to Veritech for royalty and sublicense fee. (c)
    Capital commitments As of December 31, 2019, the Group had
internal capital commitments for the investments in two P.R.C. subsidiaries of RMB8,423,085 (approximately A$1,755,456) (2018:
A$1,129,000). (d)
    Share commitments On April 29, 2019, the Company and Teko
International Limited (“Teko”) entered into a distribution rights agreement for the territory of Hong Kong and Guangzhou
Province, China (“Territories”) for a proprietary conductive film and 3rd generation Polymer Dispersed Liquid Crystal
(“PDLC”) film. Pursuant to the Agreement, the Company shall pay 50,000 IMTE shares upon the commissioning of one (1)
lamination line, (ii) for each of the next 3 years after the commissioning of the manufacturing line, IMTE shall pay Teko 50,000
IMTE shares should the annual revenue reach US$10 million or 100,000 IMTE shares should the revenue reach US$20 million, and (iii)
50,000 IMTE shares for each additional lamination line installed. In addition, for managing the operations, the Company will pay
to Teko 25% of the net profits from the sale of the PDLC film products and the lamination operations. Mr. Con Unerkov and Mr. Cecil
Ho, both the CEO and CFO, respectively of IMTE, are directors and shareholders of Teko. F-45    NOTE 31. FINANCIAL RISK MANAGEMENT  (a)
    Financial
risk management objectives The Group is exposed to financial risk
through the normal course of their business operations. The key risks impacting the Group’s financial instruments are considered
to be interest rate risk, foreign currency risk, liquidity risk, credit risk and capital risk. The Group’s financial instruments
exposed to these risks are cash and short term deposits, receivables, trade payables and borrowings. The Group’s chief executive officer
for operations is Dr. Chang Yuen CHAN, who monitors the Group’s risks on an ongoing basis and reports to the Board.  (b)
    Interest
rate risk management The Group is exposed to interest rate
risk (primarily on its cash and bank balances, amount due to ultimate holding company, borrowings and lease liabilities), which
is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest-bearing
financial instruments. The Group has adopted a policy of ensuring
it maintains adequate cash and cash equivalents balances available at call. These accounts currently earn low interests. The sensitivity analyses below have been
determined based on the exposure to interest rates at the reporting date and the stipulated change taking place at the beginning
of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease represents management’s
assessment of the possible change in interest rates. At reporting date, if interest rates
had increased/decreased by 50 basis points from the weighted average effective rate for the year, with other variables constant,
the profit for the year would have been A$17,889 lower (2018: A$6,724 lower) / A$17,889 higher (2018: A$6,724 higher). The following table summarizes interest
rate risk for the Group, together with effective interest rates as at the reporting date.  Weighted average effective interest rate
    
    Floating
        interest rate
        A$
    
    Non-interest bearingA$
    
    TotalA$2019Financial AssetsCash and bank balances
    
    0.47%
    
    40,860
    
    694,864
    
    735,724Trade and other receivables
    
    
    
    -
    
    770,958
    
    770,958Other assets
    
    
    
    -
    
    2,291,273
    
    2,291,273Total Financial Assets
    
    
    
    40,860
    
    3,757,096
    
    3,848,419Financial LiabilitiesTrade and other payables
    
    8%
    
    1,761,308
    
    1,676,447
    
    3,437,755Trade deposits received
    
    
    
    -
    
    900,740
    
    900,740Amounts due to related companies
    
    
    
    -
    
    6,101,850
    
    6,101,850Amount due to ultimate holding company
    
    
    -
    
    582,832
    
    582,832Bank overdraft
    
    4.62%
    
    902,482
    
    -
    
    902,482Bank borrowings
    
    4.62%
    
    915,300
    
    -
    
    915,300Lease liability
    
    2.5%
    
    39,492
    
    1,129,115
    
    1,168,607Convertible bonds
    
    34.67%
    
    4,420,899
    
    -
    
    4,420,899Provision for employee benefit
    
    
    
    -
    
    64,135
    
    64,135Total Financial Liabilities
    
    
    
    8,039,481
    
    10,455,119
    
    18,494,600  Weighted average effective interest rate
    
    Floating
        interest rate
        A$
    
    Non-interest bearingA$
    
    TotalA$2018Financial AssetsCash and bank balances
    
    0.3%
    
    594,116
    
    920,099
    
    1,514,215Trade and other receivables
    
    
    
    -
    
    1,183,765
    
    1,183,765Other assets
    
    
    
    -
    
    1,908,269
    
    1,908,269Total Financial Assets
    
    
    
    594,116
    
    4,012,133
    
    4,606,249Financial LiabilitiesTrade and other payables
    
    
    
    -
    
    617,520
    
    617,520Trade deposits received
    
    
    
    -
    
    18,522
    
    18,522Amounts due to related companies
    
    
    
    -
    
    2,130,368
    
    2,130,368Amount due to ultimate holding company
    3.83%
    
    172,773
    
    -
    
    172,773Bank overdraft
    
    4.33%
    
    894,510
    
    -
    
    894,510Bank borrowings
    
    4.33%
    
    814,365
    
    -
    
    814,365Lease liability
    
    2.5%
    
    57,292
    
    -
    
    57,292Convertible bonds
    
    32.15%
    
    3,280,744
    
    -
    
    3,280,744Provision for employee benefit
    
    
    
    -
    
    54,320
    
    54,320Total Financial Liabilities
    
    
    
    5,219,684
    
    2,820,730
    
    8,040,414   F-46    NOTE 31. FINANCIAL RISK MANAGEMENT (Continued)  (c)
    Foreign
currency risk The Group has net assets denominated
in certain foreign currencies as at December 31, 2019. Foreign currency denominated financial assets and liabilities which expose
the Group to currency risk are disclosed below. The amounts are those reported to key management translated into AUD at the following
closing rates, HK$ 0.18306, US$ 1.42569 and RMB 0.20457:  Short term exposure
    
    Long term exposureHK$
    
    US$
    
    RMB
    
    HK$
    
    US$
    
    RMBDecember 31, 2019Financial assets- Cash and bank balances
    
    583,524
    
    29,989
    
    116,085
    
    -
    
    -
    
    -- Trade and other receivables
    
    197,906
    
    -
    
    570,662
    
    -
    
    -
    
    -- Other assets
    
    1,726,881
    
    -
    
    564,392
    
    -
    
    -
    
    -Financial liabilities- Trade and other liabilities
    
    (2,992,663)
    
    (202,448)
    
    (455,854)
    
    -
    
    -
    
    -- Provisions
    
    (64,135)
    
    -
    
    -
    
    -
    
    -
    
    -- Amounts due to related companies
    
    (6,101,850)
    
    -
    
    -
    
    -- Amount due to ultimate holding company
    
    (582,832)
    
    -
    
    -
    
    -- Bank overdraft
    
    (902,482)
    
    -
    
    -
    
    -
    
    -
    
    -- Borrowings
    
    (915,300)
    
    -
    
    -
    
    -
    
    -
    
    -- Convertible bonds
    
    (4,420,899)
    
    -
    
    -
    
    -
    
    -
    
    -- Derivative financial instruments
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -- Lease liabilities
    
    (666,867)
    
    -
    
    -
    
    (501,740)
    
    -
    
    -Total exposure
    
    (14,138,717)
    
    (172,459)
    
    795,285
    
    (501,740)
    
    -
    
    -  Short term exposure
    
    Long term exposureHK$
    
    US$
    
    RMB
    
    HK$
    
    US$
    
    RMBDecember 31, 2018Financial assets- Cash and bank balances
    
    1,420,409
    
    41,600
    
    7,429
    
    -
    
    -
    
    -- Trade and other receivables
    
    245,213
    
    -
    
    938,552
    
    -
    
    -
    
    -- Other assets
    
    662,229
    
    702
    
    89,370
    
    -
    
    -
    
    -Financial liabilities- Trade and other liabilities
    
    (321,097)
    
    (16,628)
    
    (87,973)
    
    -
    
    -
    
    -- Provisions
    
    (54,320)
    
    -
    
    -
    
    -
    
    -
    
    --  Amounts due to related companies
    
    (2,130,368)
    
    -
    
    -
    
    -
    
    -
    
    --  Amount due to ultimate holding company
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -- Bank overdraft
    
    (894,510)
    
    -
    
    -
    
    -
    
    -
    
    -- Borrowings
    
    (814,365)
    
    -
    
    -
    
    -
    
    -
    
    -- Convertible bonds
    
    -
    
    -
    
    -
    
    (3,280,744)
    
    -
    
    -- Derivative financial instruments
    
    -
    
    -
    
    -
    
    (126,095)
    
    -
    
    -- Lease liabilities
    
    (18,123)
    
    -
    
    -
    
    (39,169)
    
    -
    
    -Total exposure
    
    (1,904,932)
    
    25,674
    
    947,378
    
    (3,446,008)
    
    -
    
    - The following table illustrates the sensitivity
of profit / (loss) and equity in regards to the Group’s financial assets and financial liabilities and the HK$/AUD exchange
rate, US$/AUD exchange rate and RMB/AUD exchange rate and assure‘all other things being equal. It assumes a +/- 5% change
of the AUD/HK$ exchange rate for the year ended at December 31, 2019 (2018: 5%). A +/- 5% change is considered for the AUD/US$
exchange rate (2018: 5%). A +/- 10% change is considered for the AUD/RMB exchange rate (2018: 10%). These percentages have been
determined based on the average market volatility in exchange rates in the previous twelve (12) months. The sensitivity analysis
is based on the Group’s foreign currency financial instruments held at each reporting date and also takes into account forward
exchange contracts that offset effects from changes in currency exchange rates. If the AUD had strengthened against the
HK$ by 5% (2018: 5%), the US$ by 5% (2018: 5%) and the RMB by 10% (2018: 10%) respectively then this would have had the following
impact:  Profit / (Loss) for the year
    
    EquityHK$
    
    US$
    
    RMB
    
    Total
    
    HK$
    
    US$
    
    RMB
    
    TotalDecember 31, 2019
    643,219
    
    8,623
    
    (79,529)
    
    572,313
    
    643,219
    
    8,623
    
    (79,529)
    
    572,313December 31, 2018
    267,547
    
    (1,284)
    
    (96,738)
    
    171,525
    
    267,547
    
    (1,284)
    
    (94,738)
    
    171,525   F-47    NOTE 31. FINANCIAL RISK MANAGEMENT (Continued)  (c)
    Foreign
currency risk (Continued) If the AUD had weakened against the HK$
by 5% (2018: 5%), the US$ by 5% (2018: 5%) and the RMB by 10% (2018: 10%) respectively then this would have had the following impact:  Profit / (Loss) for the year
    
    EquityHK$
    
    US$
    
    RMB
    
    Total
    
    HK$
    
    US$
    
    RMB
    
    TotalDecember 31, 2019
    (643,219)
    
    (8,623)
    
    79,529
    
    (572,313)
    
    (643,219)
    
    (8,623)
    
    79,529
    
    (572,313)December 31, 2018
    (267,547)
    
    1,284
    
    94,738
    
    (171,525)
    
    (267,547)
    
    1,284
    
    94,738
    
    (171,525)  Exposures to foreign exchange rates vary
during the year depending on the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative
of the Group’s exposure to currency risk.  (d)
    Liquidity
risk management Prudent liquidity risk management implies
maintaining sufficient cash and term deposits, the availability of funding through an adequate amount of committed credit facilities
and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and liabilities. The following tables detail the Group’s
remaining contractual maturity for its non-derivative financial liabilities based on the agreed repayment terms or the earliest
date on which the Group can be required to pay. The table has been drawn up based on the undiscounted cash flows of financial liabilities
and include both interest and principal cash flows.  2019
    
    
    Totalcontractual
    
    0 - 30 daysCarrying
    
    undiscounted
    
    or on
    
    31 - 90
    
    91 -365
    
    Overamount
    
    cash flow
    
    demand
    
    days
    
    Days
    
    1 yearA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Trade and other liabilities
    3,437,755
    
    3,437,755
    
    3,437,755
    
    -
    
    -
    
    -Trade deposit received
    900,740
    
    900,740
    
    900,740
    
    -
    
    -
    
    -Provision for employee benefits
    64,135
    
    64,135
    
    64,135
    
    -
    
    -
    
    -Amounts due to related companies
    6,101,850
    
    6,101,850
    
    -
    
    -
    
    -
    
    6,101,850Amount due to ultimate holding company
    582,832
    
    582,832
    
    582,832
    
    -
    
    -
    
    -Bank overdraft
    902,482
    
    902,482
    
    902,482
    
    -
    
    -
    
    -Bank borrowings
    915,300
    
    929,625
    
    -
    
    -
    
    929,625
    
    -Lease liability
    1,168,606
    
    1,399,149
    
    1,501
    
    3,004
    
    99,339
    
    1,295,305Convertible bonds
    4,420,899
    
    4,420,899
    
    4,420,899
    
    -
    
    -
    
    -18,494,599
    
    18,739,467
    
    10,310,344
    
    3,004
    
    1,028,964
    
    7,397,155  2018
    
    
    Totalcontractual
    
    0 - 30 daysCarrying
    
    undiscounted
    
    or on
    
    31 - 90
    
    91 -365
    
    Overamount
    
    cash flow
    
    demand
    
    days
    
    Days
    
    1 yearA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Trade and other liabilities
    636,042
    
    636,042
    
    636,042
    
    -
    
    -
    
    -Provision for employee benefits
    54,320
    
    54,320
    
    54,320
    
    -
    
    -
    
    -Amounts due to related companies
    2,130,368
    
    2,130,368
    
    465,444
    
    -
    
    1,664,924
    
    -Amount due to ultimate holding company
    172,773
    
    172,773
    
    172,773
    
    -
    
    -
    
    -Bank overdraft
    894,510
    
    894,510
    
    894,510
    
    -
    
    -
    
    -Bank borrowings
    814,365
    
    814,365
    
    -
    
    -
    
    814,365
    
    -Lease liabilities
    57,292
    
    63,098
    
    1,579
    
    3,520
    
    15,837
    
    42,162Convertible bonds
    3,280,744
    
    3,280,744
    
    -
    
    -
    
    -
    
    3,280,7448,040,414
    
    8,046,220
    
    2,224,668
    
    3,520
    
    2,495,126
    
    3,322,906   F-48    NOTE 31. FINANCIAL RISK MANAGEMENT (Continued)  (e)
    Credit
risk Credit risk refers to the risk that a
counter-party will default on its contractual obligations resulting in a financial loss to the Group. The Group’s potential
concentration of credit risk consists mainly of cash deposits with banks and trade receivables with its customers. The Group’s
short term cash surpluses are placed with banks that have investment grade ratings. The Group considers the credit standing of
counterparties and customers when making deposits and sales, respectively, to manage the credit risk. The Group does not have any
material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Group. Considering
the nature of the business at current, the Group believes that the credit risk is not material to the Group’s operations. The maximum exposure to credit risk,
excluding the value of any collateral or other security, at the end of the reporting period, to financial assets, is represented
by the carrying amount of cash and bank balances, trade and other receivables, net of any provisions for doubtful debts, as disclosed
in the consolidated statement of financial positions and notes to the consolidated financial statements.  (f)
    Fair
value of financial instruments The following liability is recognized
and measured at fair value on a recurring basis: - Derivative financial instruments Fair value hierarchy All assets and liabilities for which
fair value is measured or disclosed are categorized according to the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in
active markets for identical assets or liabilities. Level 2:	Inputs other than quoted
prices included in level 1 that are observable for the asset or liability, either directly or indirectly. Level 3:	Inputs for the asset or liability
that are not based on observable market data (unobservable inputs). Recognized fair value measurements The following table sets out the Group’s
assets and liabilities that are measured at fair value in the consolidated financial statements.  Level 1
    
    Level 2
    
    Level 3
    
    TotalA$
    
    A$
    
    A$
    
    A$Derivative financial instrumentsDecember 31, 2019
    
    -
    
    -
    
    -
    
    -December 31, 2018
    
    -
    
    -
    
    126,095
    
    126,095 There were no transfers during the year
between level 1 and level 2 recurring fair value measurements. The Group’s policy is to recognize
transfers into and out of the different fair value hierarchy levels at the date the event or change in circumstances that caused
the transfer occurred. The valuation techniques used in determining
the fair value measurement of level 3 derivative are based on the Market Approach, for the fair value of the underlying securities,
and the Binomial Tree Pricing Method, an income approach, for the fair value of the put option. Unobservable inputs into the Market
Approach include a lack of marketability discount of 25%, while the Binomial Tree Pricing Method applies a probability rate against
multiple scenarios in determining the maturity of the put option. The lack of marketability discount directly reduces the fair
value of the underlying asset by 25% and the probability rates weigh the estimated fair value calculated for each scenario in determining
the ending fair value. The reconciliation of the opening and
closing fair value balance of level 3 financial instruments is provided below:  Put OptionA$At January 1, 2019
    
    
    
    
    
    126,095Issuance of put option at fair value
    
    
    
    
    
    -Losses included in profit or loss
    
    
    
    
    
    (126,095)Foreign currency translation
    
    
    
    
    
    -At December 31, 2019
    
    
    
    
    
    - Disclosed fair values The Group also has assets and liabilities
which are not measured at fair values, but for which fair values are disclosed in the notes to the consolidated financial statements. Due to their short term nature, the carrying amounts of trade
receivables (refer to Note 13) and payables (refer to Note 18) are assumed to approximate their fair values because the impact
of discounting is not significant.  (g)
    Capital
management risk The Group’s objective when managing
capital are to safeguard the Group’s ability to continue as a going concern and to maintain a strong capital base sufficient
to maintain future development of its business. In order to maintain or adjust the capital structure, the Group may return capital
to shareholders, issue new shares or sell assets to reduce debts. The Group’s focus has been to raise sufficient funds through
equity to fund its business activities. There were no changes to the Group’s
approach to capital management during the year. Risk management policies and procedures are established with regular monitoring
and reporting. Neither the Company nor any of its subsidiaries
are subject to externally imposed capital requirements. The capital structure of the Group consists
of equity attributable to equity holders of the parent, comprising issued capital, reserves and accumulated loss or retained earnings
as disclosed in Notes 28 and 29 respectively.   F-49    NOTE 32. RELATED PARTIES (a)
    Parent and ultimate controlling party On December 12, 2018, the shareholders
of the Company approved the settlement of A$8,000,000 debt owed to Marvel Finance Limited (“MFL”) by the issuance of
708,500 shares in the Company. As at December 31, 2018 and 2019, MFL owns 2,201,412 shares, representing approximately 65.18% in
the Company and is the ultimate controlling party of the Group. (b)
    Transactions with directors During the years ended December
31, 2019, 2018 and 2017, the remuneration of directors of the Company is as follows:  CompanyDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Short term benefits (1)
    
    715,301
    
    67,371
    
    66,000Post-employment benefits
    
    -
    
    -
    
    -Total
    
    715,301
    
    67,371
    
    66,000 (1)The director remuneration
relating to Mr. Con Unerkov, our CEO, is provided by a related company over which Mr. Cecil Ho, our Company Secretary and Chief
Financial Officer has control.  (c)
    Other related party transactions During the years ended December
31, 2019, 2018 and 2017, the Group has following material transactions with its related parties:  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Revenue received from related parties (1)
    
    -
    
    41,291
    
    2,070,866Service fees paid to a related party (1)
    
    571,519
    
    595,645
    
    16,895Purchase of products from related parties (1)
    
    22,588
    
    -
    
    85,242Interest charged by the ultimate holding company (1)
    
    -
    
    396,868
    
    61,066Interest income earned from the ultimate holding company (1)
    
    115,678
    
    -
    
    -Purchase of plant and equipment from related parties (1)
    
    -
    
    512,561
    
    -Company Secretarial service fees paid to a related company (2)
    
    -
    
    -
    
    5,250Company Secretarial, taxation service and interim CFO fee paid to a related company (3)
    
    40,000
    
    117,663
    
    31,538Company Secretarial, taxation service and CFO fee paid to a related company (4)
    
    523,196
    
    -
    
    -Purchase of products from a related party (5)
    
    501,062
    
    -
    
    - (1)Dr. Herbert Ying
Chiu LEE, has control over the above related parties. The transactions are carried at the current market value in the ordinary
course of business. (2)Mr. Con UNERKOV,
our CEO, is a director of the company. (3)Mr. George Yatzis,
former Company Secretary, is a director of the related party. (4)Mr. Cecil Ho, Company
Secretary and interim CFO, has control over the above related party. (5)Mr. Zhang Wuhua,
our director of the Company, has control over the above related party. The transactions are carried at the current market value
in the ordinary course of business.  During the year, the Group charged MFL interest income
for a total of A$115,762 in relation to 2 loans: (i)
    a loan of A$1,043,442 (HKD5,700,000)
to Visumotion International Limited. This loan bears interest at 5% per annum, unsecured and payable on September 30, 2019. For
the year ended December 31, 2019 the Company accrued interest income of A$76,533. This loan was repaid on September 30, 2019;
and  (ii)
    in 2018, a Group company GOXD Technology Limited entered into a loan agreement to lent A$1,085,820 (HK$6,000,000) to Marvel Finance Limited, its parent company. The loan bears interest at 10% per annum, unsecured and payable on September 30, 2019. The Company accrued interest income of A$39,145 (2018: A$19,933) during the year. This loan was repaid in September 30, 2019 and as at December 31 2019, Marvel Finance Limited did not owe any amount to the Group (2018: A$904,850 (HK$ 5,000,000)) in respect of this loan. During the year the Company used
a 3,000 sq feet administrative and accounting office in Hong Kong rent free. This office belongs to the family of Dr. Herbert Ying
Chiu Lee. There is no written lease agreement, but a general understanding that there will be a 3 months notice period to vacate
this office. The Company’s responsibility is to pay for the utilities. (d)
    Amounts due from / to related companies Other than the related
party balances disclosed in Note 18, 20 and 21, the other related party balances as of December 31, 2019 and 2018 are disclosed: (i)
    included in trade and other receivables in Note 13, there were amounts of $15,585 (2018: $15,407) in respect to trade and non-trade in nature respectively and were due from certain related companies in which our former director, Dr. Herbert Ying Chiu LEE has control. The amounts due from the related companies are unsecured, non-interest bearing and repayable on demand;(ii)
    included in trade liabilities and other payables in Note 18, there were three amounts owed to related parties: (a) an amount of $11,899 (2018: NIL) in trade payables due to a related company in which our former director, Dr. Herbert Ying Chiu LEE (“Dr. Lee”) has control; (b) an amount of $79,564  (2018:NIL) in other payables due to our former director, Dr. Lee; (c) an amount of $916,259 (2018: NIL) in other payables was due to an officer of the Company. The amounts due to the related parties stated above are all unsecured, non-interest bearing and repayable on demand; and(iii)
    included in other assets in Note 14, there was amount of $650,183 (2018: NIL) in respect to trade in nature and was deposits paid to a related company in which our director, Mr. Michael Wuhua ZHANG has control.   F-50    NOTE 33. CASH FLOW INFORMATION  (a)
    Reconciliation of liabilities
arising from financing activities  Amounts due to related companies
    
    Other liabilities
    
    Bank borrowings, net
    
    Amount due to ultimate holding company
    
    Obligation under finance lease
    
    Convertible bonds by a subsidiary
    
    Lease liabilities
    
    Derivative embedded in convertible bonds issued
    
    TotalA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Beginning balance as at 1 January 2019
    
    2,130,368
    
    -
    
    814,365
    
    172,773
    
    -
    
    3,280,744
    
    1,163,778
    
    126,095
    
    7,688,123Cash flows from financing activities
    
    3,954,640
    
    2,610,091
    
    90,049
    
    501,343
    
    -
    
    -
    
    (573,010)
    
    -
    
    6,583,113Non-cash movement:Unpaid interest
    
    -
    
    -
    
    -
    
    -
    
    -
    
    1,107,310
    
    109,027
    
    -
    
    1,216,337Interest
    
    -
    
    -
    
    -
    
    (96,965)
    
    -
    
    -
    
    648
    
    -
    
    (96,317)Inception of lease
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    458,990
    
    -
    
    458,990Fair value change
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (127,551)
    
    (127,551)Disposal of plant and equipment
    
    -
    
    (848,782)
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (848,782)Foreign exchange movement
    
    16,842
    
    -
    
    10,886
    
    5,681
    
    -
    
    32,845
    
    9,174
    
    1,456
    
    76,884Ending balance as at 31 December 2019
    
    6,101,850
    
    1,761,309
    
    915,300
    
    582,832
    
    -
    
    4,420,899
    
    1,168,607
    
    -
    
    14,950,797   Amounts due to related companies
    
    Bank borrowings, net
    
    Amount due to ultimate holding company
    
    Lease liabilities
    
    Convertible bonds by a subsidiary
    
    Derivative embedded in the convertible bonds issued
    
    Issue of shares of subsidiaries
    
    TotalA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Beginning balance as at 1 January 2018
    
    33,353
    
    819,450
    
    15,268,241
    
    67,472
    
    -
    
    -
    
    -
    
    16,188,516Cash flows from financing activities
    
    1,806,044
    
    (95,570)
    
    (4,782,610)
    
    (10,180)
    
    3,769,470
    
    -
    
    7,951,428
    
    8,638,582Non-cash movement:Issue share for debt
    
    -
    
    -
    
    (8,000,000)
    
    -
    
    -
    
    -
    
    -
    
    (8,000,000)Debt assignment
    
    -
    
    -
    
    (3,562,962)
    
    -
    
    -
    
    -
    
    -
    
    (3,562,962)Other reserves
    
    -
    
    -
    
    -
    
    -
    
    (535,948)
    
    -
    
    (3,915,161)
    
    (4,451,109)Non-controlling interest
    
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (4,036,267)
    
    (4,036,267)Unpaid interest
    
    -
    
    -
    
    -
    
    -
    
    536,216
    
    -
    
    -
    
    536,216Put option liabilities in convertible bonds issued
    
    -
    
    -
    
    -
    
    -
    
    (772,112)
    
    772,112
    
    -
    
    -Fair value change
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (709,543)
    
    -
    
    (709,543)Other changes
    
    175,975
    
    -
    
    -
    
    -
    
    -
    
    
    
    -
    
    175,975Foreign exchange movement
    
    114,996
    
    90,485
    
    1,250,104
    
    -
    
    283,118
    
    63,526
    
    -
    
    1,802,229Ending balance as at 31 December 2018
    
    2,130,368
    
    814,365
    
    172,773
    
    57,292
    
    3,280,744
    
    126,095
    
    -
    
    6,581,637   Amounts due to related companies
    
    Bank borrowings, net
    
    Amount due to ultimate holding company
    
    Obligation under finance lease
    
    Convertible bonds by a subsidiary
    
    Derivative embedded in the convertible bonds issued
    
    Issue of shares of subsidiaries
    
    TotalA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Beginning balance as at 1 January 2017
    
    -
    
    447,250
    
    2,382,707
    
    -
    
    -
    
    -
    
    -
    
    2,829,957Cash flows from financing activities
    
    -
    
    423,725
    
    (2,003,277)
    
    -
    
    -
    
    -
    
    -
    
    (1,579,552)Non-cash movement:Deferred performance  fee recognition
    
    -
    
    -
    
    15,110,749
    
    -
    
    -
    
    -
    
    -
    
    15,110,749Foreign exchange movement
    
    -
    
    (51,525)
    
    (221,938)
    
    -
    
    -
    
    -
    
    -
    
    (273,463)Ending balance as at 31 December 2017
    
    -
    
    819,450
    
    15,268,241
    
    -
    
    -
    
    -
    
    -
    
    16,087,691   F-51    NOTE 33. CASH FLOW INFORMATION (Continued)  (b)
    Net cash inflows /
(outflows) from changes in working capital  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$CASH FLOWS FROM CHANGES IN WORKING CAPITAL(Increase) / Decrease in assets:Trade and other receivables
    
    (137,579)
    
    (1,526,651)
    
    5,132,064Inventories
    
    405,891
    
    (151,883)
    
    37,360Other assets
    
    (361,676)
    
    (400,034)
    
    885,469Development projects
    
    -
    
    -
    
    68,360Increase / (Decrease) in liabilities:Trade and other liabilities
    
    1,876,414
    
    488,490
    
    (770,205)Trade deposits received
    
    -
    
    -
    
    (82,390)Provisions
    
    -
    
    29
    
    20,603Obligations under finance lease
    
    -
    
    (6,115)
    
    -NET CASH INFLOWS / (OUTFLOWS) FROM CHANGES IN WORKING CAPITAL
    
    1,783,050
    
    (1,596,164)
    
    5,291,261   NOTE 34. KEY MANAGEMENT PERSONNEL DISCLOSURES (UNAUDITED)  (a)
    Remuneration The total remuneration paid or
payable to the directors and senior management of the Group during the year are as follows:  ConsolidatedDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Short-term employee benefits
    
    1,645,794
    
    673,284
    
    464,339Post-employment benefits
    
    7,703
    
    10,794
    
    9,265Total
    
    1,653,497
    
    684,078
    
    473,604  Included in short term benefits for directors
and officers included payments of A$1,207,141 (US$861,294) to a service company owned by the CFO for the provision of Chief Executive
Officer and Chief Financial Officer services during the period. In addition, the Company paid A$40,000 to BDO Administration (SA)
Pty Ltd where Company’s former interim CFO and Company Secretary is a director.  (b)
    Loans
to Key Management Personnel and their related parties As disclosed in Note 32(d), there
were no other loans outstanding at the reporting date to Key Management Personnel and their related parties. Other transactions with Key
Management Personnel Several key management persons,
or their related parties, held positions in other entities that resulted in them having control or significant influence over the
financials or operating policies of these entities. Transactions between related parties are in normal commercial terms and conditions
unless otherwise stated in Notes 13, 18, 21 and 32.  (c)
    Share
Options – number of share options held by management There were no share options held
outstanding held by the management.   F-52    NOTE 35. PARENT ENTITY INFORMATION (UNAUDITED) Set out below is the supplementary
information about the parent entity.  Statement of Comprehensive IncomeCompanyDecember 31, 2019A$
    
    December 31, 2018A$
    
    December 31, 2017A$Loss after income tax
    
    1,635,241
    
    3,926,487
    
    486,715Other comprehensive income
    
    -
    
    -
    
    -Total comprehensive loss
    
    1,635,241
    
    3,926,487
    
    486,715  Statement of Financial Position  CompanyDecember 31, 2019
    
    December 31, 2018A$
    
    A$Total non-current assets
    
    3
    
    20,327,732Total current assets
    
    12,521,701
    
    57,810Total assets
    
    12,521,704
    
    20,385,542Total current liabilities
    
    1,085,124
    
    7,313,720Total liabilities
    
    1,085,124
    
    7,313,720Total assets less liabilities
    
    11,436,580
    
    13,071,822EquityIssued capital
    
    18,902,029
    
    18,902,029Accumulated losses
    
    (7,465,449)
    
    (5,830,207)Total equity
    
    11,436,580
    
    13,071,822 Guarantees entered into by the parent
entity in relation to the debts of its subsidiary Other than as disclosed in this
Annual Report, the parent entity had not guarantee debts of its subsidiary companies.  Contingent liabilities Other than as disclosed in this
Annual Report, the parent entity had no contingent liabilities as at December 31, 2019 and December 31, 2018.  Capital commitments – property,
plant and equipment The parent entity has no capital
commitments for propertyand equipment as at December 31, 2019 and December 31, 2018.  Significant accounting policies The accounting policies of the
parent entity are consistent with those of the Group, as disclosed in Note 3, except for: -
    Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity,  -
    Dividends received from subsidiaries are recognized as other income by the parent entity and its receipt may be an indicator of impairment.   F-53    NOTE 36. PRIOR YEAR RECLASSIFICATIONS Certain comparative figures have been
reclassified to conform with the current year’s presentation of the financial statements. NOTE 37. EVENTS OCCURRING AFTER THE REPORTING DATE  Except as disclosed below, there is no
other matter or circumstance arisen since December 31, 2019, which has significantly affected, or may significantly affect the
operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.  (i)
    As disclosed in Note 24, Marvel Digital Limited
        (“MDL”), a subsidiary of the Company has Convertible Bonds of HK$23 million due on January 2, 2020. The bondholder
        did not exercise the conversion of the Convertible Bonds as of January 2, 2020 so the right of the conversion on the Convertible
        Bond has expired, and the Put Option Deed, as discussed in Note 25, is no longer exercisable as well.
        
        On January 3, 2020, the Convertible Bond
        were due for repayment and the Company disclosed in a Form 6K filing that MDL was not able to repay the Convertible Bonds and accrued
        interest amounting to a total of HK$23,000,000 (equivalent to approximately A$4.2 million) on the maturity date. Subsequently,
        MDL agreed to pay the bondholder HK$13 million on January 17, 2020 and then 4 equal installments of HK$2.5 million fro m February
        to May 2020 including accrued interests at 15% per annum for the amounts due from January 3, 2020. As at the date of this report,
        MDL has fully repaid the installments and accrued interests.  (ii)
    On January 20, 2020, the Company entered into
        a convertible note purchase agreement (the "Purchase Agreement") with CIMB Limited, an independent third party. Pursuant
        to the Purchase Agreement, CIMB will loan HK$14 million (about US$1.8 million) under a convertible promissory note (the "Note")
        with a coupon rate of 10% per annum, maturing in two years from the date of the Purchase Agreement. Interest is payable in cash
        on a quarterly basis, with the first payment due by March 31, 2020. The Company, at its sole option, may pay interest in ordinary
        shares based on 75% of the average of the closing prices of its ordinary shares for the five trading days prior to each end-of-quarter
        interest due date. The holder of the Note has the right to convert the principal and accrued interest to ordinary shares of the
        Company at a conversion price of US$5.00 per share over the term of the Note. The conversion price is subject to downward adjustment
        if the Company sells ordinary shares below the conversion price within 12 months after the date of the Purchase Agreement. Both
        the Company and the holder may request prepayment of the Note at any time without penalty after the Company receives financing
        of a minimum of US$4 million. The holder of the Note is also entitled to piggyback registration rights.
        
        On February 11, 2020, the Company and the holder
        of the Note entered into a supplement agreement to the Purchase Agreement to limit the total number of ordinary shares of the Company
        issuable upon conversion of the Note to no more than 19.99% of the total issued and outstanding ordinary shares of the Company
        as of the date of Purchase Agreement. The supplement agreement further provides that the conversion price shall, in no event, be
        less than US$1.50 per share, subject to regulatory or shareholder approval.(iii)
    As announced in the Form 6K on February 24,
        2020, on February 20, 2020, the Company entered into a Securities Purchase Agreement for the sale of 158,730 ordinary shares of
        the Company ("Ordinary Shares") and warrants ("Warrants") to purchase up to 126,984 ordinary shares ("Warrant
        Shares") to an accredited investor ("Investor") at a price of US$6.30 per share (the "Cash Offering").
        The Warrants will be exercisable for the period of 12 months from the date of issuance, at an exercise price of US$10.50 per Share.
        The Cash Offering was for US$1 million and generates net cash proceeds of approximately US$920,000 after deducting estimated expenses
        in connection with the offering. The Company intends to use the net cash proceeds for partially paying off debts to a bondholder
        and general corporate purposes.
        
        Pursuant to the Securities Purchase Agreement,
        the Company may not, subject to certain exceptions, within 120 days of the closing, issue or enter into any agreement, other than
        with the Investor, to issue any ordinary shares (or securities convertible into ordinary shares) with registration rights or involving
        a drawdown 'off the shelf' on a variable rate transaction. Furthermore, the Investor has a right of first participation, subject
        to certain conditions and only as long as the Investor holds Warrants (which expire 12 months after issuance), to participate in
        an amount of up to US$5 million in any debt or equity capital raising proposed by the Company.
        
        Pursuant to the form of Warrant, if the VWAP
        of the Company's ordinary shares on the trading day immediately prior to the exercise date is less than US$10.50, then the Warrants
        may be exercised at such time by means of a cashless exercise where each Warrant exercised would receive one Share without any
        cash payment to the Company.
        
        On May 12, 2020, the Company issued the Warrant
        Shares as a result of the exercise of Warrants. The Warrants were exercised by means of a cashless exercise where each Warrant
        exercised would receive one Share without any cash payment to the Company as the VWAP of the Company's ordinary shares on the trading
        day immediately prior to the exercise date was less than US$10.50 per Share  (iv)
    In May 2020, the Company disposed its research and development operation to independent third parties so that the Group could rationalize its operations and focus on the marketing and sales of autostereoscopic 3D displays. The consideration received for this disposal will be A$23,798.  NOTE 38. COMPANY DETAILS The registered office and principal
place of business is: Level 7, 420 King William Street Adelaide SA 5000    F-54    ITEM 19.
    
    EXHIBITS  The following exhibits are filed as part of this registration
statement:  Exhibit
    Description1.1(1)
    Constitution of Registrant4.1(1)
    Share Sale and Purchase Agreement for the purchase of 100% in Marvel Digital Limited between Marvel Finance Limited and IMT dated May 14, 20154.2(1)
    Consulting Agreement between IMT and BDO Partnership SA Pty Limited for the provision of Company Secretarial services dated November 6, 20154.3(2)
    Subscription agreement between Marvel Digital Limited and E-Tech Electronics Limited, Deed of Guarantee between IMTE and E-Tech Electronics Limited, and Put option between IMTE and E-Tech Electronics Limited.  All 3 agreements are dated January 3, 20184.4(3)
    Form F3 Registration Statement filed on October 9, 2018. The F3 became effective on October 19, 20184.5(4)
    Subscription agreement between IMTE and Marvel Finance Limited dated October 13, 20184.6(4)
    Distribution agreement between IMTE and Teko International Limited dated April 29, 20194.7(5)
    Convertible Note Purchase Agreement with CIMB Limited dated January 20, 2020 and Supplemental Agreements dated February 11, 20204.8(6)
    Securities Purchase Agreement for the sale of Shares and Warrants to Ionic Ventures, LLC dated February 20, 20204.9*
    Service agreement for Con Unerkov, between
    IMTE  and Sky Energy Limited dated January 7, 20194.10*
    Directors agreement between IMTE and Uwe von Parpart dated November 15, 20194.11*
    Directors agreement between IMTE and Dr Heming Cui dated June 12, 20204.12*
    Service agreement for Cecil Ho,  between
    IMTE  and Asset Union Limited dated March 19, 20194.13*
    Agreement for Sale of 95% Issued Shares of Marvel Digital
    Limited dated May 11, 20208.1*
    List of subsidiaries12.1*
    Certification of Chief Executive Officer12.2*
    Certification of Principal Accounting Officer13.1*
    Certification by Chief Executive Officer of periodic financial report pursuant to 18 U.S.C. Section 1350, as mandated by Section 906 of the Sarbanes-Oxley Act13.2*
    Certification by Chief Accounting Officer of periodic financial report pursuant to 18 U.S.C. Section 1350, as mandated by Section 906 of the Sarbanes-Oxley Act15.1*
    Consent of Independent Registered Public Accounting Firm for the 2019 and 2018 Financial Statements15.2*
    Consent of Independent Registered Public Accounting Firm for the 2017 Financial Statements    (1)
    Incorporated by reference on Form 20-F A/3 submitted on May 8, 2017.(2)
    Incorporated by reference on Form 6K filed on January 3, 2018.(3)
    Incorporated by reference on Form 6K filed on October 9, 2018.(4)
    Incorporated by reference on Form 20F filed on May 15, 2019.(5)
    Incorporated by reference on Form 6K filed on January 20, 2020 and Form 6K/A filed on February 12, 2020.(6)
    Incorporated by reference on Form 6K filed on February 24, 2020.*
    Incorporated herein.    85     SIGNATURES  The registrant hereby certifies that
it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this
Annual Report on its behalf.   Integrated Media Technology Limited/s/    Con UnerkovBy: Con Unerkov
        Title: Executive Chairman and Chief Executive Officer    Date: June 15, 2020     86