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, 2018 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
[        ]   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 April 15, 2019 is 3,377,386 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
    45Item
    5.
    Operating
    and Financial Review and Prospects
    46Item
    6.
    Directors,
    Senior Management and Employees
    60Item
    7.
    Major
    Shareholders and Related Party Transactions
    68Item
    8.
    Financial
    Information
    70Item
    9.
    The
    Offer and Listing
    72Item
    10.
    Additional
    Information
    73Item
    11.
    Quantitative
    and Qualitative Disclosures About Market Risks
    83Item
    12.
    Description
    of Securities Other than Equity Securities
    83PART
    II
    
    84Item
    13.
    Defaults,
    Dividend Arrearages and Delinquencies
    84Item
    14.
    Material
    Modifications to the Rights of Security Holders and Use of Proceeds
    84Item
    15.
    Controls
    and Procedures
    84Item
    15T
    Controls
    and Procedures
    86Item
    16
    Reserved
    86Item
    16A.
    Audit
    Committee Financial Expert
    86Item
    16B.
    Code
    of Ethics
    86Item
    16C.
    Principal
    Accountant Fees and Services
    86Item
    16D.
    Exemptions
    from the Listing Standards for Audit Committees
    87Item
    16E.
    Purchases
    of Equity Securities by the Issuer and Affiliated Purchasers
    87Item
    16F.
    Change
    in Registrant's Certifying Accountant
    87Item
    16G.
    Corporate
    Governance
    87Item
    16H.
    Mine
    Safety Disclosure
    87PART
    III
    
    88Item
    17.
    Financial
    Statements
    88Item
    18.
    Financial
    Statements
    88Item
    19.
    Exhibits
    89SIGNATURES
    90   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", "IMT", 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, 2018 and 2017 and for the fiscal years ended December 31,
    2018, 2017 and 2016 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 31,2018
    
    2017
    
    2016
    
    2015
    
    2014(Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)(in
    A$, except share amounts)Total
    revenue
    
    1,815,475
    
    10,153,636
    
    14,039,248
    
    7,306,699
    
    597,626Cost
    of sales
    
    (723,711)
    
    (2,548,064)
    
    (2,027,743)
    
    (2,984,291)
    
    (263,805)Depreciation
    and amortization expenses
    
    (2,029,373)
    
    (2,021,131)
    
    (2,147,231)
    
    (383,635)
    
    (124,335)Corporate
    administrative expenses
    
    (4,384,357)
    
    (2,522,927)
    
    (2,447,545)
    
    (1,432,564)
    
    (389,868)Loss
    on financial assets at fair value through profit or loss
    
    -
    
    -
    
    -
    
    -
    
    (551,787)Gain
    / (loss)     on disposal of a subsidiary
    
    608,995
    
    -
    
    (872)
    
    -
    
    -Other
    operating expenses
    
    (2,503,507)
    
    (1,510,267)
    
    (1,627,234)
    
    (506,245)
    
    (167,339)Gain on fair value change in derivative financial instruments
    
    709,543
    
    -
    
    -
    
    -
    
    -Provision for impairment loss of goodwill
    
    (9,953,311)
    
    -
    
    -
    
    -
    
    -Exchange (loss) / gain
    
    493,365
    
    61,307
    
    (100,950)
    
    -
    
    -Finance
    costs
    
    (1,383,399)
    
    (107,101)
    
    (73,666)
    
    -
    
    -Income
    tax credit / (expense)
    
    507,057
    
    187,213
    
    (2,018,939)
    
    356,158
    
    -Net / (loss)
    profit
    
    (16,843,223)
    
    1,692,666
    
    3,595,068
    
    2,356,122
    
    (899,508)Loss / (profit)
    per share - basic and diluted (post-reverse split)
    
    (5.93)
    
    0.64
    
    1.37
    
    1.22
    
    (0.51)Weighted average
    number of ordinary shares outstanding (post-reverse split)
    - basic and diluted
    
    2,692,543
    
    2,643,611
    
    2,643,611
    
    1,922,143
    
    1,763,762   2    Consolidated
Statement of Financial Position Data:   As
    of December 312018
    
    2017
    
    2016
    
    2015
    
    2014(Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)
    
    (Audited)Cash
    and cash equivalents
    
    1,514,215
    
    2,860,014
    
    1,820,994
    
    6,883,196
    
    2,227,715Working
    capital
    
    1,279,813
    
    5,478,132
    
    8,263,311
    
    7,642,256
    
    3,030,501Total
    assets
    
    26,033,074
    
    35,859,449
    
    43,481,437
    
    37,271,467
    
    3,392,353Long-term
    debt
    
    4,690,822
    
    16,748,877
    
    22,657,065
    
    24,464,929
    
    -Total
    shareholders' equity
    
    16,621,751
    
    15,390,334
    
    14,354,982
    
    11,086,012
    
    3,305,937  (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.   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$0.7046, the buying rate on December 31, 2018.  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, April 12, 2019: A$1.00 is US$0.7176  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
    
    0.704
    
    0.748
    
    0.810
    
    0.7020  Month
    
    High
    
    LowUS$
    
    US$July
    2018
    
    0.7466
    
    0.7322August
    2018
    
    0.7428
    
    0.7192September
    2018
    
    0.7287
    
    0.7107October
2018
    
    0.7223
    
    0.7048November
    2018
    
    0.7314
    
    0.7189December
2018
    
    0.7360
    
    0.7020January
2019
    
    0.7282
    
    0.7000February
    2019
    
    0.7260
    
    0.7065March
2019
    
    0.7140
    
    0.7023   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. Risks
Related to Our Business We
have a history of operating losses until recently and may not maintain profitability in the future We
are a company at an early stage in the development of its 3D products and our success is uncertain. 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, 2018, we had an accumulated deficit of A$10,676,713. For the year ended December 31, 2018
we recorded loss of A$16,843,223. 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$9,953,311.
The Group's business declined as compared to the prior year due to one-off sales of our software and technology solutions
from year to year. Unless we continue to sell these 3D products and services on a consistent basis through distribution
channels, we may incur losses from operations. Furthermore, we expect the costs of 3D development to increase over the next
years as we continue to innovate our technologies and products. Because of the numerous risks and uncertainties associated
with the development, manufacturing, sales and marketing of 3D products and services, we may experience lesser profits or
even incur losses, and may never become profitable again. Our current or any future products may not be successfully
developed, and if successfully developed, may not generate sufficient revenue to enable us to maintain
profitability. If
we fail to remain profitable, 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 complete
the development of our current 3D products or develop other 3D products. We will rely on 2D to 3D auto conversion workstation
and our other 3D products to generate revenues for us in the future. It is possible that none of them will be successfully commercialized,
which would prevent us from 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. Both our display and audio businesses 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 of our continuous innovation of both the 3D products. There can
be no assurance that our efforts will be successful or that we will be able to attain profitability. We
will require additional financing in the future to sufficiently fund our operations, research and development activities We have had intermediate success recently. However we had a significant loss in 2018, 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 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.  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 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 audio 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.   5    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 do. 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 74 employees as of December 31, 2018. 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 GOXD picture frame business  We
currently have limited experience in marketing, sales or distribution of consumer electronics products such as our
GOXD picture frame business. If GOXD 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. Should we obtain 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 or prevent 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 the 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 test manufacturing staff and small 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.
These requirements may first apply to our annual report on Form 20-F for the fiscal year ending December 31, 2019. 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 has had and may continue to have a negative effect on our business and results
of operations  Global
economic conditions could have a negative effect on our business and results of operations like the global economic and stock
market downturn in early 2018 when 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. 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 Dr. Herbert Ying Chiu Lee and other 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 Dr. Herbert Ying Chiu Lee, our director and former Chief Executive Officer, as well as a few
other 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.  Our
research and development efforts will be jeopardized if we are unable to retain key personnel and cultivate key academic and technology
collaborations  Our
future success depends to a large extent on the continued services of our senior management and key technology personnel. We are
currently in the process of obtaining key man insurance for key management personnel. We are not aware that any member of our
senior management personnel is contemplating ending their relationship with IMTE. Competition among technology companies for qualified
employees is intense and we may not be able to attract and retain personnel critical to our success. Our success depends on our
continued ability to attract, retain and motivate highly qualified management, technology personnel, manufacturing personnel,
sales and marketing personnel and on our ability to develop and maintain important relationships with researchers, scientists
and leading academic institutions. If we fail to identify, attract, retain and motivate these highly skilled personnel, we may
be unable to continue our development and commercialization activities.  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, 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 are contributing
to a decrease in spending by consumers. If these economic conditions are prolonged or deteriorate further, 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
Group's business is subject to certain risks inherent in the electronics and digital advertising industries for 3D products and services. Our Group'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
Group 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 Group's business.  Our
Company's business faces competition from local and foreign competitors  Our
Group faces competition from both local and foreign competitors which offer similar products that of our Group offerings. Increased
competition could result in competitive pricing resulting in lower profit margins. However, our Group 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
Group seeks to limit the competitive risks through, inter-alia constant review of our 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 Group will be able to compete effectively against our competitors and that competitive pressure will
not materially and adversely affect our Group'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 and audio 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 the PRC  Substantially
all of our non-cash assets are located in, and substantially all of our revenue is sourced from, the PRC. Accordingly, our business,
financial condition, results of operations and prospects may be influenced to a significant degree by political, economic and
social conditions in the PRC generally and by continued economic growth in the PRC as a whole.  The
PRC 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 the PRC economy has experienced
significant growth over the past three decades, growth has been uneven across different regions and among various economic sectors.
The PRC government has implemented various measures to encourage economic development and guide the allocation of resources. Some
of these measures benefit the overall PRC 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 PRC government on our
business and operations.  The
PRC is facing a continued slowdown in economic growth. China's annual gross domestic product growth rate 2018 was 6.7% compared
to 6.9% in 2017 and 6.9% in 2016. 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 PRC laws, rules and regulations could limit the legal protections available to you and
us.  The
PRC 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 PRC 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 the PRC. Our operations in the PRC are foreign-invested
enterprise and is subject to laws, rules and regulations applicable to foreign investment in the PRC 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 PRC 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 PRC 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 PRC 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 PRC laws, rules and regulations permit payments of dividends by our PRC subsidiaries only out of their retained earnings,
if any, determined in accordance with PRC accounting standards and regulations.  Restrictions
on currency exchange may limit our ability to effectively utilize our revenues as well as the ability of our PRC subsidiaries
to obtain debt or equity financing from financial institutions or investors outside the PRC, 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 PRC 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 SAFE by complying with
certain procedural requirements. However, the relevant PRC 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 the PRC or fund our business activities
outside the PRC 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 PRC government authorities. In particular,
any loans to our PRC subsidiaries are subject to PRC 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    Our independent registered public accounting firm's audit documentation related to its audit report included in our annual
report may include audit documentation located in China. The Public Company Accounting Oversight Board currently cannot inspect
audit documentation located in China and, as such, you may be deprived of the benefits of such inspection.  Our
independent registered public accounting firm issued an audit opinion on the financial statements included in our annual report
filed with the SEC. As an auditor of companies that are traded publicly in the United States and a firm registered with the Public
Company Accounting Oversight Board, or the PCAOB, our auditor is required by the laws of the United States to undergo regular
inspections by the PCAOB. However, work papers located in China are not currently inspected by the PCAOB because the PCAOB is
currently unable to conduct inspections without the approval of the PRC authorities.  Inspections
of certain other firms that the PCAOB has conducted outside of China have identified deficiencies in those firms' audit
procedures and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality.
However, the PCAOB is currently unable to inspect an auditor's audit work related to a company's operations in China
and where such documentation of the audit work is located in China. As a result, our investors may be deprived of the benefits
of the PCAOB's oversight of auditors that are located in China through such inspections.  The
inability of the PCAOB to conduct inspections of an auditor's work papers in China makes it more difficult to evaluate the
effectiveness of any of our auditor's audit procedures or quality control procedures that may be located in China as compared
with auditors outside of China that are subject to PCAOB inspections. Investors may consequently lose confidence in our reported
financial information and procedures and the quality of our financial statements.  PRC
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 PRC 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 PRC;   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 PRC by foreign investment entities;  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;*
    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. 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, 2018, our ordinary shares traded on the Nasdaq of at an average of US$8.93 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 board 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 much 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 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. As
a result of becoming a SEC registrant, we will be obligated to develop and maintain proper and effective internal controls over
financial reporting. We may not complete our analysis of our internal controls over financial reporting in a timely manner, or
these internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and,
as a result, the value of our common shares We
will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things,
the effectiveness of our internal control over financial reporting for the first fiscal year beginning after the effective date
of this Form 20-F. This assessment will need to include disclosure of any material weaknesses identified by our management in
our internal control over financial reporting, as well as, if we are an accelerated filer or a large accelerated filer as stipulated
in Item 308(b) of Regulations S-K, a statement that our auditors have issued an attestation report on our management's
assessment of our internal controls. We
have not begun the costly and challenging process of compiling the system and processing documentation necessary to perform the
evaluation needed to comply with Section 404. We may not be able to complete our evaluation, testing and any required remediation
in a timely fashion. During the evaluation and testing process, if we identify one or more material weaknesses in our internal
control over financial reporting, we will be unable to assert that our internal controls are effective. If
we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public
accounting firm is unable to express an opinion on the effectiveness of our internal controls, we could lose investor confidence
in the accuracy and completeness of our financial reports, which would cause the price of our common shares to decline.   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. When the reverse stock split became effective, every thirty shares of our issued
and outstanding common stock was automatically combined into one issued and outstanding share of common stock. 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, Marvel Digital Limited 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 subscribe 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$20
million, and (iii) 50,000 IMTE shares for each additional lamination line installed. In addition, for managing the operations, the Company will pay to Teko 25%
of the net profits from the sale of the PDLC film products and the lamination operations. Mr. Con Unerkov and Mr. Cecil Ho, both the CEO and CFO, respectively
of IMTE, are directors and shareholders of Teko.   23    In
summary, the Group's business activities are the development, sale and distribution of autostereoscopic 3D display,
3D video wall, 3D conversion equipment and software, sale of developed technology and provision of 3D consultancy services, and
(ii) sale.  Breakdown
of total revenues by category for the years ended December 31, 2018, 2017 and 2016:  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Development,
    sales and distribution of 3D autostereoscopic products and conversion equipment
    
    1,166,144
    
    4,365,364
    
    4,726,500Sales
    of software and technology solutions
    
    13,731
    
    1,180,491
    
    9,085,792Sales
    and distribution of audio products
    
    48,609
    
    54,251
    
    111,045Provision
    of consultancy and other services
    
    95,922
    
    162,605
    
    6,333Interest
    income
    
    21,409
    
    3,092
    
    2,0271,345,815
    
    5,765,803
    
    13,931,697  Breakdown
of total revenues by geographic market for the years ended December 31, 2018, 2017 and 2016:  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Australia
    
    65
    
    62
    
    154Hong
    Kong
    
    346,954
    
    3,235,912
    
    5,507,701China
    
    998,796
    
    2,529,829
    
    8,423,8421,345,815
    
    5,765,803
    
    13,931,697   24    B.
    
    Business
    Overview Integrated
Media Technology Limited is a technology investment, product development and distribution company. Our businesses involve three
distinct business units (i) core technology development and acquisition, (ii) commercializing these technologies into products
or services and (iii) distribution and branding of these products and services. Under
the Technology Business Unit, we intend to own a stable of core technologies through acquisition, in-house development or in collaboration
with research institutes. We can also profit from disposing some of the mature technology to non-competing parties once we have
developed more advance technology that supersedes the mature ones. Our Products and Services Business Unit will commercialize
the technology by integrating or developing innovative products, solutions and services using the technology. This will be the
revenue drivers for the Group. The Brand / Distribution Business Unit is the final phase to set up the distribution network and
channels for our own branded products. These business units are all interwoven and interdependent on the development of the other
business units. 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. Currently
our primary focus is in the 3D autostereoscopic (glasses free) technology domain. Our principal activities are (i) research
and development of 3D autostereoscopic (glasses free) technology, and (ii) the development, sale and distribution of 3D
autostereoscopic display, 3D video wall, 3D conversion equipment and software, provision of 3D consultancy services, sale of
3D technology solutions. Since
2013, we have been involved in the sale of 3D autostereoscopic displays to the advertising industry. Due to the growth in the
demand for 3D autostereoscopic displays across multiple industries i.e. advertising, retail including mobile handheld devices
like tablets and smartphones, and educational sectors to name a few, the Group intends to become a leader in 3D autostereoscopic
market by strategically owning and controlling the core technologies of (i) glasses-free 3D video encoding/decoding; (ii) conversion
hardware for glasses-free 3D which includes FPGA (field-programmable gate array) board & computer workstation; (iii) 2D to
3D and multi-view conversion software (Visumotion); and (iv) content distribution/management system (CMS). In 2015, we acquired
Marvel Digital Limited ("MDL"), a technology company that develops (i) a proprietary digital content management system
for the display of 2D/3D video and text to networked screens over the internet, (ii) 2D to 3D conversion software and workstation,
and (iii) autostereoscopic 3D display technology. These technologies acquired will help in our deployment of 3D advertising platform
and also allows the Group to use the core technologies to develop and customize solutions for our customers, and to enter new
and exciting markets for 3D products and services. Our
immediate goal is to be recognized as
a leader in providing end-to-end solutions using the autostereoscopic display ("ASD") technology. Our products range
from commercial platforms to consumer electronics. Commercial platforms include digital signage and video wall with ASD functions
and associated advertising platform. Consumer electronics products include ASD enabled smartphone and tablet and TV. The applications
are endless for consumers to enjoy the exciting glasses-free 3D visual effect across multiple platforms. In
the longer term, we will continue to focus on developing certain core technologies and to strategically position ourselves to
be recognized as a leader in developing technology solutions and innovative products and services using our core technologies.  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 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). The
acquisition of MDL has transformed the Company into a media technology company that focuses on the development of autostereoscopic 3D technology which includes ASD
display, 3D digital content management system and 2D to 3D content conversion system. We are starting to seek more display media that can enhance the viewing
experience in advertising besides digital signage and video wall. Our technical team is investigating on a solution to deliver glasses-free 3D images on large
glass pane windows. This is especially an impressive advertising effect when deployed onto the large display windows of street level retail shops. We are now
working with a conductive barrier film producer and we may come up with such a solution that can provide very inexpensive glasses-free 3D advertising solution
on large glass pane windows. The reason for the need of conductive barrier film laminated glass pane is to enable the glass pane to revert to its transparent
mode when there is no need to display advertising images. Although the 3D image quality produced by this solution may not be as good as the large format video
wall, the video wall solution cannot revert back to transparent mode and the cost is 5 to 10 times more expensive than conductive film glass pane solution. We
may think that if our glasses-free 3D conductive barrier film solution in retail shops does work for the advertising industry, it might make a big wave in the
advertising industry.  Our
main business focus in the coming years is to continue to develop state-of-the-art digital media related products and solutions using our core technologies. Our
market strategy is to locate distributors and marketing agents to sell our products and solutions. This will keep our sales and marketing team costs to a minimum
and allow the Company to focus on its core business which is on product and solution development. When the Group has acquired sufficient capital, we may build our
own product sales and marketing team.  In
the coming years, the Group will focus its development in the following area: 1)
We shall continue to develop the glasses-free 3D advertising networks in China through distributors and joint venture partners. We shall expand our markets other than
China and Hong Kong. The regions that we are going to develop in 2019 includes Malaysia, Taiwan, Japan and Korea. 2)
We have developed an ASIC chip with ASD functions to provide a very cost-effective solution to all our 3D products. This ASIC 3D chip is now incorporated in all of our
ASD products. However, ASD TVs for domestic home market may not be ready yet, as there are still some artifacts in the image rendering. We have started to develop another
ASIC chip to incorporate 8K and HDR functions. This next generation ASIC chip is expected to be ready by 2020. When ASD technology is applied to 8K panels, the 3D image
quality will be upgraded in many folds. By then, we expect the ASD TV market may start to explode. 3)
We shall develop specific business models to extend applications of our ASD products and solutions in vertical markets, e.g. the education, entertainment and medical
industries. 4)
We shall explore new display media to work with our ASD technology. The conductive film laminated glass pane is a big advertising market for retail shops and it has not
been explored yet. We may shift more resources into this area once we have developed a good and disruptive solution. We expect the new revenue stream arising from this
advertising solution will be many times bigger than digital signage, as the advertising effect and the associated cost factor are many times exceeded the conventional
digital signage model, especially when glasses-free 3D solution is available to this kind of display media. We
expect to continue our growth in revenue in the near future upon successful execution of the above business plans. IMTE
will continue to position itself as a technology investment company focusing on acquisition of technology related companies or projects that 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. The future development is dependent on the ability to have sufficient resources in funding, technology and human capital to execute our business plans. 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 limited 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 is 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 started to develop an ASIC
chip for such conversion purpose and we consider this ASD conversion technology will form 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 seen
in the three-dimensional form by naked eyes without any viewing aids.  Currently
the mainstream to create ASD content is the conversion from 2D 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. We shall only consider applying fixed lenticular technology to mobile phones when the problem
of reading 2D text has been solved.   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. Digitization is one of the major factors driving the demand for 3D LED TVs, which, in turn, contributes to the growth
of the global 3D display market.  Recent
advancements in 3D display technology, along with the improved visual experience, picture clarity, superior performance, and high
resolution of 3D display 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. Below is the ASD market overview by product
category in China and Hong Kong.  Diagram
4.2 - Auto Stereoscopic Display (ASD) Market Overview - Overall Market Size and Breakdown by Product Category - the PRC - Report Issued in 2017  USD
Million picture  USD
    Million sales
    2011
    2012
    2013
    2014
    2015
    2016E
    2017E
    2018E
    2019E
    2020EHardware
    181.7
    213.1
    257.0
    316.4
    405.6
    530.1
    697.1
    925.1
    1,231.3
    1,656.1Others
    69.5
    77.5
    88.3
    104.6
    128.7
    164.9
    214.7
    284.0
    384.1
    528.1Total
    251.2
    290.6
    345.3
    421.0
    534.3
    695.0
    911.8
    1,209.1
    1,615.4
    2,184.2 Exchange
Rate: 1 USD=6.6 RMB Source:
Frost & Sullivan report commissioned by the Group (Exhibit 15.2)   33    Diagram
4.3 - Auto Stereoscopic Display (ASD) Market Overview - Overall Market Size and Breakdown by Product Category - Hong
Kong - Report Issued in 2017  USD
Million picture  USD
    Million sales
    2011
    2012
    2013
    2014
    2015
    2016E
    2017E
    2018E
    2019E
    2020EHardware
    38.4
    45.4
    55.7
    68.6
    86.0
    108.5
    138.2
    177.1
    228.8
    300.9Others
    12.3
    14.3
    16.9
    20.2
    24.3
    30.6
    39.1
    50.3
    65.2
    87.1Total
    50.7
    59.7
    72.6
    88.8
    110.3
    139.1
    177.3
    227.4
    294.0
    388.0 Exchange
Rate: 1 USD=7.8 HKD Source:
Frost & Sullivan report commissioned by the Group (Exhibit 15.2)  Market
size by volume  The
global glasses free HD30 Display market is growing at a CAGR of 15% from 2017-2022 (Source: Factor 2017) Increased adoption of 3D display by 3D TV, smartphone, and
portable display device manufacturers has led to an increase in the volume shipments of 3D displays.  The
increased demand for 3D TVs and the rise in the number of 3D advertisements are the factors driving the increase in the shipments
of 3D displays worldwide. Consumers prefer 3D content because of its unique visual appeal. In addition, with the increase in popularity
of 3D technology, advertising agencies are employing autostereoscopic 3D technology to display advertisements on billboards. The
impact of 3D technology's immersive and unique visual quality has led to a substantial increase in brand recognition, loyalty,
retention, and advertisement recall across the globe.  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.  Below
is a market size breakdown by application as of 2015 and 2020 for the China and Hong Kong which shows Gaming & Entertainment
and advertising as the largest market size segment.   34    Diagram
4.4 - Market Size Breakdown by Application - the PRC  picture   Source:
Frost & Sullivan report commissioned by the Group (Exhibit 15.2)  Diagram
4.5 - Market Size Breakdown by Application - the Hong Kong picture   Source:
Frost & Sullivan report commissioned by the Group (Exhibit 15.2)   35    Market
Growth Drivers  Some
of the key growth drivers in the 3D market are as follows:  Growing
Market Demand Up
to now, in Asia, ASD technology has limited customer base with limited application scope. The high research and development cost
of ASD products leads to high price of ASD products, which are hardly affordable by the individuals. Also the immaturity of ASD
technology has restricted its application. Driven by the growing maturity of related technology and increasing demand for three
dimensional experience from the mass market, with the expanding range of application, considerable growth tends to be stimulated
in ASD market.  Continuous
Upgrade of Technology For
any emerging high-tech industry, the technology innovation is widely considered to be the most effective productivity force. ASD
technology, especially 2D/3D conversion technology has kept developing during the recent years, and now the leading ASD players
are still making effort to promote the success of ASD technology upgrading. In Korea, the traditional giant companies prefer to
cooperate with tech innovative companies from overseas so as to accelerate the technology integration and upgrading.  Decrease
in product cost As
the ASD technology progresses, the key production process of ASD panel modules gradually improves by both automating the production
and increasing the yield rate of the products. On the other hand, the production volume gradually ramps up with increasing demand.
This contributes to a significant lowering of the cost of the ASD modules which is a major cost factor in all ASD products.  Support
from Government  -
    In order
    to propel the upgrade of the traditional IT industry, Ministry of Industrial and Information Technology (MIIT) in China organized
    a seminar in 2016 to discuss the innovative technology of color TV, clearly pointing out the significance of promotion the
    development of ASD TV, which likely to stimulate the growth of ASD in China.-
    Korea Communications
    Commission, together with Ministry of Culture, Sports, and Tourism, set funds to support the investment on research, manufacturing
    and talent cultivation of 3D industry, aiming to launch holographic technology in the year 2020.-
    Japan holds a large
    number of ASD patents and plays a leading role in the global ASD market, especially in the field of ASD software. National
    Institute of Information and Communication Technology (NICT) in Japan has published periodicals on ASD, implying great attention
    on ASD industry. Japan government also supports and recommends the use of ASD products in the coming Olympics in 2020.  Increased
in 3D video content With
the commercialization of 3D displays, the global 3D display market has been witnessing an increase in 3D video content worldwide.
Although the market is still in its early stage, the penetration of 3D technology has been on the rise as 3D display panel are
being used in mobile handsets, tablet PCs, and in digital signage for advertisement. The increased volume of 3D video content
also has a significant impact on its growing popularity, which has led to the emergence of several 3D channels over the past few
years.  Increased
adoption of 3D displays in advertising sector The
high popularity of 3D technology has encouraged advertising agencies to display 3D content on billboards and feature 3D
advertisement of films. These agencies have also employed autostereoscopic 3D technology for advertising is expected to
foster the growth of the global 3D display market.  Use
of 3D displays in the healthcare sector The
healthcare sector is expected to increasingly adopt 3D display to help doctors diagnose patients more effectively. 3D projectors
will also help doctors identify and decide on the most effective form of treatment. They can also be used as an alternative to
microscopes during surgical procedures. 3D projectors can accurately display scientific content. They also display flawless images
and, at times, are tailored for clinical reviews. Autostereoscopic displays are expected to replace conventional 3D with glasses,
as the doctors no longer need to wear special glasses in surgical procedures and clinical reviews.  Increased
in 3D display applications The
number of applications of 3D projectors and displays has increased over the past few years. 3D displays are presently used in
flat panel TVs, portable gaming devices, and advertisement billboards. They are also expected to be featured extensively in several
devices in the future, including 3D smart displays, mobile handsets, displays used in the healthcare sector, notebooks, monitors,
and large-sized displays. This growing number of 3D display applications will lead to an increased penetration of 3D displays
and improve the growth prospects of the market.   36    Increased
penetration of high-bandwidth internet The
rapid development of infrastructure capable of supporting high-speed internet worldwide will facilitate market growth as it will
lead to increased adoption of 3D displays. Fiber-based, high-capacity broadband connection rollouts are increasingly being witnessed
in developed countries in the Americas and the EMEA. High-bandwidth networks also enable seamless transmission of live, high-quality
content over the internet. Thus, the high penetration of high-speed internet technologies in the market will lead to increased
adoption of small and medium-sized 3D display devices.  Increased
adoption of portable 3D gaming devices Portable
3D game devices have been gaining popularity worldwide, especially after the consumer electronics company Nintendo released its
device Nintendo 3DS in the market. This device, which supports 3D gameplay, does not require glasses as it uses autostereoscopic
3D technology. Because of its popularity, many 3D gaming devices are expected to enter the market. Thus, the entry of several
vendors into the portable 3D gaming devices domain will increase the market size and foster the growth of the global 3D display
market.  Emergence
of 3D tablet PCs A
few tablet PCs with 3D displays are available in the market, and autostereoscopic technology-based 3D tablet PCs are expected
to be commercialized in the near future. The market will see the entry of several tablet PC manufactures, which, in turn, propels
the growth prospects 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., Sony Corporation and
X6D Limited. 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 have a wider product and solution offerings than most
of our competitors. On the other hand, very few of these competitors are public listed companies. We shall have a better advantage
if we can stay listed on NASDAQ such that we can have a better position to raise adequate capital for our product development.   37    The
ASD market in Asia is fragmented with different players involved in research and development, production of lamination services,
production of the autostereoscopic display and production of complete ASD devices. At retail level, there are approximately over
50 brands of ASD devices available in the market. Japan and China are the leading countries in Asia featured with a number of
reputable market players who are capable to supply ASD devices to different countries worldwide.  Market
Concentration The
competition of ASD market at retail level is mainly triggered by selling price, quality and user acceptance. There are a variety
of ASD products available in market such as smartphones, digital signage, TV and tablets, and the number is growing along with
the market expansion and technology advancement. ASEAN and China are the fast growing developing regions in terms of ASD technology
development and product application in Asia. Some market players are capable to offer ASD solution and service to cooperate customers
from, for example, the advertising industry.  Technology
Competition The
majority of ASD devices in markets are based on fixed lenticular and switchable parallax technology. However, leading market players
are putting emphasis on research and commercialization of lenticular-based switchable ASD technology which offers better 3D visual
effect and brightness control than the existing parallax barrier method.  Product
Service Some
ASD solution providers focusing on corporate customers may offer related services such as content conversion for videos and games
apart from ASD hardware. The corporate customers are mainly from advertising and entertainment industries.  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.   38    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 sectors 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.  ASD
Reginal Development  The
ASD market in Asia has experience rapid development during recent years, and it still contains tremendous potential for the future
growth. Japan, South Korea, China and ASEAN are considered to be the major engines to propel the Asian ASD market from the perspective
of technology advancement or market potential, and these four regions represent different competitive advantages. In the coming
decades, with the increasing level of integration of the ASD industry in different regions, the Asian ASD market is estimated
to embrace a brilliant future.  China The
ASD market in China has demonstrated increasing competition. The continuous entry of new players has led to a relatively fragmented
market status. The ASD market in China is still in the period of rapid development, so the number of new entrants tends to keep
increasing. For now, China represents a high efficiency in the process of industrialization and application development of ASD
products.  ASEAN The
ASD market in AEAN has not yet fully established and the local ASD players have not emerged so far. Due to the relatively inexpensive
labor force, many overseas ASD players are transferring their hardware manufacturing facilities to Southeast Asia.  Korea Many
traditional technology giants in Korea have been striving to develop ASD business, such as Samsung, LG, Maxon F-Vision, etc.,
who are leading the development of ASD market in Korea. The technology communication environment in Korea is open and free. Most
of the local players in Korea are willing to receive the cooperation from overseas. It is projected that the competition in the
ASD market of Korea tends to become stiffer in the future with the introduction of new foreign entrants.  Japan The
ASD market in Japan demonstrates that highest market concentration ratio all over Asia. Both the government and relative companies
commit great investment and resources on research development and promotion of ASD. Japan has been among the leading countries
in ASD technology in Asia, especially in software. However, Japan shows a conservative attitude toward technical exchange communication
with overseas companies.   39    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 manufacturing policy is to manufacture to order. Thus we
would not expect to keep much inventory 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
2018, our major sales were for ASD displays to a few customers. These
products are normally sold as a system; therefore, our sales are focused on a few customers. In 2018, our largest 2 customers
accounted for 72% of our revenue. Our strategy is to appoint distributors to sell our products and services,
and we will maintain a very 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.   40    Research
and Developments  We
outsource 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. 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. We shall further expand our internal R&D team when we have enough earnings
or have acquired enough capital to grow. 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 IMT 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.   41    Patent
Portfolio The
following table presents our portfolio of patents and patent applications, including their status (as at December 31, 2018) 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 GermanyIndependent
                                         party - Versitech Limited
        (A
        subsidiary of the University of Hong Kong)
    (i) A
    depth discontinuity-based method for efficient intra coding for depth videos
    62/199,727
    Provisional
    Patent in U.S. 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
    N/A(ii) Global
    and major object motion estimation, compensation and efficient realization for depth compression
    62/199,754(iii) A
    multi-overlay variable support and order kernel-based representation for image deformation and view synthesis
    62/199,702(iv) Auxiliary
    Data for Artifacts-Aware View Synthesis
    62/285,825(v) Shape-adaptive
    model-based codec for loss and lossless compression of binary images
    62/300,502Marvel
                                         Display Technology (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
    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
    2029   42    Patent
    Owner
    Title
    Patent
    No./Application No.
    Status
    ExpiresMarvel
                                         Display Technology (Shenzhen) Ltd.
        (A
        wholly owned subsidiary of MDL) (Continued)
    A
    Method of Layered B Predictive Structural Arrangement with High Compressibility
    200910155883.2
    Granted
    in China
    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 post-processing methods
    201110460155.X
    December
    2031Marvel
                                         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
    2023A
    Lens For Extended Light Source and Design Method Therefor
    16106705.5
    Granted
    in HK
    June
    2023Method
    For Improving the Quality Of 2D-to-3D Automatic Conversion By Using Machine Learning
    16111899.1
    Granted
    in HK
    October
    2023Exterior
    design for computer
    CN201630079168.6
    Granted
    in CN
    March
    20261601506.3
    Granted
    in HK
    August
    2041   43    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.   44    C.
    
    Organizational
    Structure As
at December 31, 2018, we have a total of 8 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 companyDragon
    Creative Ltd
    Hong
    Kong
    100%
    Direct
    Sales
    and distribution of various 3D related products and provision of 3D consulting servicesGOXD
    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
    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 servicesDigital
    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, the Company rents a 100 square feet office on a month to month basis at a cost of A$1,000 per month.
In Hong Kong, the Company's the principal office is approximately 3,000 square feet which is currently rent free, and rents two operating offices,
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. The
Company's manufacturing plan is for pre-production or test production in Shenzhen. The Company intends to outsource the commercial production to
subcontractors. Accordingly, the Company does not intend to build infrastructure to expand its manufacturing capabilities, capital equipment,
headcount, or administrate burden. 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 financial statements as at December 31, 2018 consisted of A$86,298 for leasehold
improvements relating to renovation and decoration costs for our offices and A$751,940 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 stage.  ITEM 4A.
    
    UNRESOLVED
    STAFF COMMENTS None.   45    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 financial statements as at and for the fiscal year ended December 31, 2018, as at and for the year ended December 31, 2017, and
as at and for the year ended December 31 2016, together with the notes thereto included elsewhere in this Annual report. The financial
information contained in this Annual report is derived from the financial statement, 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, and (b) sale and distribution of audio
products. 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. 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. All share and
per share amounts disclosed herein give effect to this reverse stock split retroactively, for all periods presented. 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 We
are 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 2015 mainly through the sale of our autostereoscopic 3D
display, 3D conversion equipment and software. In 2017 we recorded profits of A$1,692,666 but in 2018 we recorded a
loss of A$16,843,223 mainly due to the decrease in sales as we sorted out certain manufacturing issues with our
manufacturer. Going forward, the Company needs to resolve the manufacturing issues and continue to develop and sell
the 3D products and services. 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 profits. 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.   46    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. 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, 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.  47    Impairment
of Assets (continued) 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, 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. (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.   48    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 Revenue
is recognized as interest accrues using the effective interest method.   49    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 31,2018
    
    2017
    
    2016Amount
        A$
    
    % of NetRevenues
    
    Amount
        A$
    
    % of NetRevenues
    
    Amount
        A$
    
    % of NetRevenuesRevenues:Products
    
    1,228,485
    
    92.8
    
    5,600,106
    
    97.2
    
    13,923,337
    
    100.0Services
    
    95,921
    
    7.2
    
    162,605
    
    2.8
    
    6,333
    
    -Total operating revenues
    
    1,324,406
    
    100.0
    
    5,762,711
    
    100.0
    
    13,929,670
    
    100.0ExpensesCost of sales
    
    723,711
    
    54.6
    
    2,548,064
    
    44.2
    
    2,027,743
    
    14.6Employee benefit expenses
    
    2,253,411
    
    170.1
    
    1,887,692
    
    32.8
    
    1,715,687
    
    12.3Depreciation and amortization expenses
    
    2,029,373
    
    153.2
    
    2,021,131
    
    35.1
    
    2,147,231
    
    15.4Professional and consulting expenses
    
    1,746,762
    
    131.9
    
    301,732
    
    5.2
    
    300,576
    
    2.2(Gain) / Loss on disposal of a subsidiary
    
    (608,995)
    
    (46)
    
    -
    
    -
    
    872
    
    -Travel and accommodation expenses
    
    384,184
    
    29.0
    
    333,503
    
    5.8
    
    431,282
    
    3.1Other operating expenses
    
    2,010,142
    
    151.8
    
    1,448,960
    
    25.1
    
    1,728,184
    
    12.4Provision for impairment loss for goodwill
    
    9,953,311
    
    751.5
    
    -
    
    -
    
    -
    
    -Financial costs
    
    1,383,399
    
    104.5
    
    107,101
    
    1.9
    
    73,666
    
    0.5Total expenses
    
    19,875,298
    
    1,300.7
    
    8,648,183
    
    150.1
    
    8,425,241
    
    60.5Operating (loss) / profit before income tax
    
    (18,550,892)
    
    (1,400.7)
    
    (2,885,472)
    
    (50.1)
    
    5,504,429
    
    39.5Non-operating incomeInterest income
    
    21,409
    
    1.6
    
    3,092
    
    0.1
    
    2,027
    
    -Gain on disposal of financial assets at fair value through profit or loss
    
    709,543
    
    53.6
    
    -
    
    -
    
    -
    
    -Fair value change in contingent consideration liability
    
    -
    
    -
    
    3,953,537
    
    68.6
    
    -
    
    -Other income
    
    469,660
    
    35.5
    
    434,296
    
    7.5
    
    107,551
    
    0.8Net (loss) / profit before income taxes
    
    (17,350,280)
    
    (1,310.0)
    
    1,505,453
    
    26.1
    
    5,614,007
    
    40.3Income tax credit / (expense)
    
    507,057
    
    38.3
    
    187,213
    
    3.2
    
    (2,018,939)
    
    (14.5)Net (loss) / profit
    
    (16,843,223)
    
    (1,271.8)
    
    1,692,666
    
    29.4
    
    3,595,068
    
    25.8   50    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
    
    97.2ServicesConversion 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 72% 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.   51    Other
income  It
represented primarily the government subsidy in respect of our technology development projects received for the years
ended December 31, 2018, 2017 and 2016.   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$13,306,993 or 153% 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.   52    Comparison
of Year Ended December 31, 2017 to Year Ended December 31, 2016  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 31,2017
    
    2016AmountA$
    
    % ofTotalRevenues
    
    AmountA$
    
    % ofTotalRevenuesProductsDisplays
    2,528,885
    
    43.9
    
    1,252,424
    
    9.0Tablets and mobiles
    655,076
    
    11.4
    
    175,021
    
    1.3Super workstations
    1,085,416
    
    18.8
    
    3,273,438
    
    23.5Software
    9,383
    
    0.2
    
    693,280
    
    5.0Technology solutions
    1,171,108
    
    20.3
    
    8,392,512
    
    60.2Audio products
    54,251
    
    0.9
    
    111,045
    
    0.8Other products
    95,987
    
    1.7
    
    25,617
    
    0.2Subtotal
    5,600,106
    
    97.2
    
    13,923,33
    
    100.0ServicesConversion services
    79,599
    
    1.4
    
    6,126
    
    -Other services
    83,006
    
    1.4
    
    -
    
    -Consulting services income
    -
    
    -
    
    207
    
    -Subtotal
    162,605
    
    2.8
    
    6,333
    
    -Total operating revenues
    5,762,711
    
    100.0
    
    13,929,670
    
    100.0  Revenues. The revenue from operating activities for the year ended December 31, 2017 was A$5,762,711 as compared to the prior year of
A$13,929,670, a decrease of A$8,166,959 or 59% from the prior year. The revenue for the year ended December 31, 2017 consists of the
sales and distribution of 3D autostereoscopic products and conversion equipment, sales of software and technology solutions, 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 one-off sales of our software and technology solutions amounting
to approximately A$8,390,000 in 2016.  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 31,2017
    
    2016AmountA$
    
    % of NetRevenues
    
    AmountA$
    
    % of NetRevenuesProducts
    2,468,763
    
    42.8
    
    2,024,067
    
    14.6Services
    79,301
    
    1.4
    
    3,676
    
    -Total cost of sales
    2,548,064
    
    44.2
    
    2,027,743
    
    14.6  Cost of sales increased by 26% to A$2,548,064 in 2017 from A$2,027,743 in 2016, which primarily due to the change in product mix of the Group with more software products and technology solutions being sold with less cost of sales than that of the products sold in the current year.  Gross
Profit and Gross Margin  Gross profit decreased by 73% from A$11,901,927 in 2016 to A$3,214,647 in 2017. Our gross margin significantly decreased from 85% in 2016 to 56% in 2017, 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  It
represented the fair value decrease in contingent consideration liability in relation to the acquisition of Marvel Digital Limited
as the Company recognized the actual deferred performance fee of A$15,110,749 paid to Marvel Finance Limited, the ultimate holding
company.   53    Other
income  It
represented primarily the government subsidy in respect of our technology development projects received for the years ended December 31, 2017 and 2016.  Comparison
of Year Ended December 31, 2017 to Year Ended December 31, 2016  Expenses  The
operating expenses for the year ended December 31, 2017 was A$8,648,183 as compared to the prior year of A$8,425,241 an increase
of A$222,942 or 3% from the prior year. The increase in total operating expenses was mainly attributable to the increase of
A$172,005 in employee related costs as a result of general salary increment.  Employee
benefit expenses increased by 10% to A$1,887,692 in 2017 from A$1,715,687 in 2016, which was primarily due to general salary
increment. As at December 31, 2017, the Group had a total of 53 staff, compared to 74 staff in the Group as at December 31,
2016. The decrease of staff was primarily due to restructuring of the Group in late 2017.  The
loss on disposal of subsidiary for the year ended December 31, 2016 is related to the Company's shareholding in Conco
International Co., Limited which was disposed in March 2016.  Income
tax  A
deferred tax benefit of A$187,213 was recognized during the year ended December 31, 2017 which were arising primarily
from the recognition of tax effect of temporary differences. While an income tax expense of A$2,018,939 consisted of
A$1,052,266 and A$966,673 of current tax and deferred tax were recognized during the year ended December 31, 2016
which were arising primarily from the increase of taxable profit and the recognition of tax effect of temporary
differences.  Net
Profit  We
recorded a net profit of A$1,692,666 and A$3,595,068 for the years ended December 31, 2017 and 2016 respectively.
The decrease was mainly due to 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.   54    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, 2018:  •  
IFRS 9 Financial Instruments and associated Amending Standards  The
Standard will be applicable retrospectively (subject to the comment on hedge accounting below) and includes revised requirements
for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial
instruments and simplified requirements for hedge accounting.  Key
changes made to this standard that may affect the Group on initial application include certain simplifications to the classification
of financial assets, simplifications to the accounting of embedded derivatives, and the irrecoverable election to recognize gains
and losses on investments in equity instruments that are not held for trading in other comprehensive income.  The
adoption of these amendments has not had a material impact on the Group.  •  
IFRS 15 Revenue from Contracts with Customers  IFRS
15 Revenue from Contracts with Customers, effective as of January 1, 2018, supersedes IAS 11 Construction Contracts, IAS 18
Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with
customers. The standard establishes a five-step model to account for revenue arising from contracts with customers and
requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled
in exchange for transferring goods or services to a customer.  Management
evaluated the new guidelines introduced by IFRS 15 and applied the five-step model in order to reassess its revenue
recognition criteria. Beginning January 1, 2018, management implemented the new guidelines introduced by IFRS 15.  The
adoption of these amendments has not had a material impact on the Group.  •  
IFRS 22 Foreign Currency Transactions and Advance Consideration  Foreign
Currency Transactions and Advance Consideration addresses how to determine the 'date of the transaction' when applying
IAS 21. It is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted.  The
adoption of these amendments has not had a material impact on the Group.   55    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. The Group does not plan to adopt these standards early.  •  
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.  Management
is currently evaluating the new guidelines introduced by IFRS 16 and its impact for the Group.  •  
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.  There
are no other standards or interpretations not yet effective that could have a material impact on the Group's financial statements.   56    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$16,843,223, profit of A$1,692,666, and profit of A$3,595,068 for the fiscal
years ended December 31, 2018, 2017, and 2016 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.  FiscalYear
    
    
    Number
    ofShares*
    
    
    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
    
    
    
    8,000,000 *
On post reverse split of 30 for 1 Capital
Requirements As
of December 31, 2018, we had cash and cash equivalents of A$619,705 and trade receivables of A$1,086,161. Our trade receivable
balance significantly decreased as compared to A$2,489,235 as of December 31, 2017, was attributable to the decrease in sales
in 2018. 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.   57    Cash
Flows The
following table summarizes our cash flows for the periods presented:  Fiscal Year Ended December 31,2018
    
    2017
    
    2016A$
    
    A$
    
    A$Net cash inflows / (outflows) in operating activities
    
    (6,858,433)
    
    4,864,308
    
    (1,209,052)Net cash (outflows) / inflows in investing activities
    
    (3,319,768)
    
    (2,189,991)
    
    (4,045,261)Net cash outflows by financing activities
    
    8,638,582
    
    (1,579,552)
    
    (444,707)Net increase / (decrease) in cash and cash   equivalents
    
    (1,539,619)
    
    1,094,765
    
    (5,699,020)Effect of exchange rate changes on cash and cash equivalents
    
    89,252
    
    (61,658)
    
    (147,211)Cash and cash equivalents at beginning of period
    
    2,070,072
    
    1,036,965
    
    6,883,196Cash and cash equivalents at end of period
    
    619,705
    
    2,070,072
    
    1,036,965  Net
cash (outflows)/inflows in operating activities was A$(6,858,433), A$4,864,308 and A$(1,209,052) during the years ended
December 31, 2018, 2017 and 2016, respectively. Net cash outflows in operating activities during the year ended December
31, 2018 was mainly to the decrease in revenue. Net cash inflows in operating activities significantly increased during
the year ended December 31, 2017 were attributable to the receipts from customers on sale of software and technology
solutions. Net
cash outflows in investing activities were A$(3,319,768), A$(2,189,991) and A$(4,045,261) during the years ended December
31, 2018, 2017 and 2016, respectively. Net cash outflows in investing activities during the years ended December 31, 2018,
2017 and 2016 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$8,638,582, A$(1,579,552) and (A$444,707) during the years ended
December 31, 2018 and 2017, respectively. Net
cash inflows in financing activities during the years ended December 31, 2018 are attributable to the share issuance of
subsidiaries and convertible bond issuance by a subsidiary. Net cash outflows in financing activities during the years
ended December 31, 2017 and 2016 are attributable to the repayment of advances to related parties and bank borrowings. We
had cash and bank balance of A$619,705, A$2,070,072 and A$1,036,965 as at December 31, 2018, 2017 and 2016
respectively. Cash and bank balance as at December 31, 2018, 2017 and 2016 were consisted of A$1,514,215, A$2,860,014 and A$1,820,994
of cash and bank balances, and A$(894,510), A$(789,942) and A$(784,029) of bank overdraft, respectively.  C.
    
    Research
    and Development, Patents and Licenses For
the 3 years ended December 31, 2018, we have employed 10, 10 and 8 staff, respectively, in the research and development
of 3D autostereoscopic technology and we incur annual staffing costs of approximately A$716,000, A$764,000 and A$926,000
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, 2016, 2017 and 2018, 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.   58    F.
    
    Tabular
    Disclosure of Contractual Obligations  As
of December 31, 2018 our contractual obligations were as set forth below:  Payments
    Due by PeriodTotal
    
    Less than1 year
    
    1-3
    years
    
    3-5
    years
    
    More
    than 5 yearsA$
    
    A$
    
    A$
    
    A$
    
    A$Contractual ObligationsBank Borrowings
    
    894,510
    
    894,510
    
    -
    
    -
    
    -Operating Lease Obligations
    
    1,333,260
    
    585,988
    
    747,272
    
    -
    
    -Total
    
    2,227,770
    
    1,480,498
    
    747,272
    
    -
    
    -   The
Group had internal capital commitments for the investments in one PRC subsidiaries of approximately A$3,189,000.   59    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
    
    
    
    PositionDr.
    Herbert Ying Chiu LEE (2)
    
    
    
    Executive
    Chairman and Chief Executive OfficerDr.
    Man-Chung CHAN (1) (3) (4)
    
    
    
    Independent
    Non-Executive DirectorMr.
    Wuhua ZHANG (1) (2) (6)
    
    
    
    Independent
    Non-Executive DirectorMr.
    Lawrence CHEN (1) (7)
    
    
    
    Independent
    Non-Executive DirectorCon
    UNERKOV (5)
    
    
    
    Non-Executive DirectorCecil
    HO (10)
    
    
    
    Chief
    Financial Officer and Joint Company SecretaryDr.
    Chang Yuen CHAN (1) (2) (8)
    
    
    
    Independent
    Non-Executive DirectorMr.
    Wilton Timothy Carr INGRAM (3)
    
    
    
    Independent Non-Executive DirectorGeorge
    YATZIS (9)
    
    
    
    Company
    SecretaryWilliam
    King To NG
    
    
    
    R&D
    Project DirectorLu
    Xia
    
    
    
    Corporate
    Services Executive  (1)
    Member of the Audit Committee(2)
    Member of the Nomination and Remuneration Committee(3)
    Mr. Wilton Timothy Carr INGRAM was the Chairman
    of Audit Committee for the year until his resignation as a director and Chairman of the Audit Committee on December 31,
    2018. On the same date, Dr. Man-Chung CHAN was appointed as the Chairman of the Audit Committee(4)
    Chairman of the Nomination and Remuneration Committee(5)
    Mr. Con Unerkov resigned as a non-executive director on May 30,
    2018 and was appointed as CEO in April 2019(6)
    Mr. Wuhua Zhang was appointed as a director on August 13, 2018(7)
    Mr. Lawrence Chen was appointed as a director on December 1, 2018(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 Dr. Herbert
Ying Chiu LEE ("Dr. Lee"), aged 66, 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. His major study is technology management. After that, he joined Hong Kong Polytechnic University as an engineering
doctoral student conducting research in knowledge management discipline. His major research is organizing information through
his newly developed semantic search engine. In 2011, Dr. Lee had been conferred the degree of Doctor of Engineering. In 2014,
he was appointed as professor for City College of Vocational Technology in Wuxi, China. In the same year, Dr. Lee was elected
by the Council of the Association to be the Senior Fellowship of Asia College of Knowledge Management.  Dr.
Lee was awarded the Scientific and Technological Innovation Awards by China Radio & TV Equipment Association (CRTA) for outstanding
individuals in 2013 and 2016. In 2015, he was awarded Asian Social Caring Leadership Award by Social Enterprise Research Institution.
In the same year, Enterprise Asia conferred the Asia Pacific Entrepreneurship Award to Dr. Lee for his outstanding and exemplary
achievement in entrepreneurship.  Dr.
Lee has extensive business experience, academic background and business network including through his work in the community to
lead the Group to new height in the coming future.   60    Dr.
Man-Chung CHAN ("Dr. MC Chan"), aged 60, 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.
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 44, 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.
Lawrence CHEN ("Mr. Chen"), aged 59, 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.
Con UNERKOV ("Mr. Unerkov"), aged 50, 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 resigned as a director on May 30, 2018 and he re-joined the Company as the CEO
in April 2019. Mr.
Cecil HO ('Mr. Ho"), aged 58, 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. 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. Mr.
Wilton Timothy Carr INGRAM (Mr. Ingram), aged 72, has operated his own Company since 1975 engaged in
various fields, including corporate advice and marketing in Australia and Hong Kong. In 1998, Mr. Ingram
established, with Australian partners, a venture capital business, Momentum Ventures Funds Limited in
Melbourne Australia. The fund invests in companies such as Engenic Pty Ltd (Bio Technology business),
CRX Pty Ltd (Communication technology business), Bentic Limited (Deep Water Drilling Company in the US
and world-wide), and Paniva Pty Ltd (Corporate Education Business world-wide). Since 1990, Mr. Ingram
has invested and developed resorts in the Philippines such as the Friday's Boracay and Oasis Hotel, as
well as commercial buildings in Makati, Manila in partnership with First Pacific Group which is listed
in Hong Kong. Mr. Ingram resigned as director and chairman of the audit committee on December 31, 2018. Dr.
Chang Yuen CHAN ("Dr. CY Chan"), aged 53, 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.
George YATZIS ("Mr. Yatzis"), aged 42, 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").   61    Dr.
William King To NG ("Dr. Ng"), aged 47, 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). Ms.
Lu XIA ("Ms. Xia"), aged 33, 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.   62    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 2018.   Short-term
    Benefits
    
    Post
    Employment
    
    Share-based
    
    TotalBenefits
    
    PaymentsSalary &
    
    Other
    
    Super-
    
    Retirement
    
    Shares
    
    OptionsFees
    
    
    
    annulation
    
    BenefitsA$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Dr.
    Herbert Ying Chiu Lee
    
    -
    
    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)
    
    12,000
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    12,000Wuhua Zhang (1)
    
    6,871
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    6,871Lawrence
    Chen (2)
    
    1,500
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    1,500Wilton
    Timothy Carr Ingram (3)
    
    30,000
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    30,000Con
    Unerkov (4)
    
    5,000
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    5,000Total
    
    67,371
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    N/A
    
    67,371   (1)
    Mr. Wuhua Zhang was appointed as a director on August 13, 2018.(2)
    Mr. Lawrence Chen was appointed as a director on December 1, 2018.(3)
    Mr. Wilton Timothy Carr INGRAM resigned as a director on December 31, 2018.(4)
    Mr. Con Unerkov resigned as a non-executive director on May 30, 2018.(5)
    Dr. Chang Yuen Chan resigned as a director on February 11, 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, Dr. Herbert
Ying Chiu Lee has employment agreement with the Group. The employment can be terminated immediately for serious misconduct, and
for all other cases, a 3-6 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, 2018 as
these amounts were expensed and paid as of this date.   63    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 a 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, 2017, 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, 2017 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.   64    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 four directors, of which three 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, Wuhua Zhang and Lawrence Chan 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 financial statements, including the integrity of our financial statements, compliance with legal and regulatory
requirements, our independent public accountants' qualifications and independence, and independent public accountants, 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, Wuhua Zhang and Lawrence Chan. 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. Herbert Ying Chiu Lee, Dr. Man-Chung Chan and Wuhua Zhang are the current members of the Nomination
and Remuneration Committee, Dr. Man-Chung Chan and Wuhua Zhang each qualifies as an "independent director"
within the meaning of NASDAQ Marketplace Rules. Dr. Man-Chung Chan is the chairman of this committee.   65    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."   66    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, 2016, we had 74 employees. Of such employees, 3 were employed in administration and management located in
the Australia, 12 employees in finance, administration and management located in the Hong Kong and 29 employees in
operations located in Hong Kong, 8 employees in finance, administration and management located in the China and 22
employees in operations located in China. As
of December 31, 2017, we had 53 employees. Of such 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 such 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. 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).   67    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, 2018 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, on a post-reverse split basis. 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)---------------------------
    
    ---------------
    --------------------
    --------------------
    ------------------
    -----------------Dr.
    Herbert Ying Chiu Lee (3) (10)
    
    2,201,412
    -
    -
    2,,201,412
    65.18%Wilton
    Timothy Carr Ingram (7)
    
    -
    -
    -
    -
    -Dr.
    Man-Chung Chan (3)
    
    -
    -
    -
    -
    -Dr.
    Chang Yuen Chan (4)
    
    -
    -
    -
    -
    -Wuhua Zhang (8)
    
    -
    -
    -
    -
    -Lawrence Chen (9)
    
    -
    -
    -
    -
    -Con
    Unerkov (5) (6)
    
    -
    -
    -
    -
    -All
    officers and directors as a Group (5 Persons)
    
    2,201,412
    -
    -
    2,201,412
    65.18%Marvel
    Finance Limited (10)
    
    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, 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)
        (5)
    A
        director of the Company as at December 31, 2015.
        Appointed
	as a director of the Company on March 22, 2016 and resigned on February 11, 2019.
        Appointed
	as a director of the Company on April 28, 2016 and resigned on May 30, 2018.(6)
    The
    person holds less than one percent of the shares in the Company.(7)
    Appointed
    as a director of the Company on April 28, 2016 and resigned as a director on December 31, 2018.(8)
    Appointed
    as a director of the Company on August 13, 2018.(9)
    Appointed
    as a director of the Company on December 1, 2018.(10)
    Marvel
    Finance Limited, a company wholly owned and controlled by Dr. Herbert Ying Chiu Lee, was issued with 708,500 shares during the
    year and as at December 31, 2018 and the date of this report held 2,201,412 shares of the Company.  As
of April 18, 2019, we had 278,042 shares of our Common Stock held by 249 shareholders in our share registrar in Australia, the host
county and we had 3,099,344 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.   68    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, 2018 and 2017 which
are highlighted in the consolidated financial statements.  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 totalling 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.  For
the year ended December 31, 2017  During
the year, the Group had the following related party transactions:  a)  Sales of products of A$2,070,866 to related parties b)  Purchase of products of A$85,242 from related parties c)  Service fees paid of A$16,895 to a related party d)  Interest charged of A$61,066 by the ultimate holding company e)  Company secretarial and service fees paid of A$5,250 to related parties  During
the year, the Group incurred expenditure of A$31,538 (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 2017, 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.   69    ITEM 8.
    
    FINANCIAL
    INFORMATION  A.
    
    Consolidated
    Statements and Other Financial Information Our
audited financial statements for the fiscal year ending December 31, 2018 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%.   70    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, are directors and shareholders of Teko.   71    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
    
    A$
    
    A$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
    
    5.13Month
    Ended:July
    2018
    
    18.04
    
    9.74August
    2018
    
    14.00
    
    10.12September
    2018
    
    11.98
    
    8.34October
    2018
    
    13.00
    
    5.50November
    2018
    
    7.83
    
    5.21December
    2018
    
    6.68
    
    4.01January
    2019
    
    9.64
    
    5.31February
    2019
    
    13.89
    
    6.44March
    2019
    
    18.00
    
    7.23  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.   72    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, 2018, we had 3,377,386 Common Stock issued, outstanding and fully paid.  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.  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.   73    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.   74    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.   75    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.   76    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, 2018 taxable year. Based on our audited 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, 2018 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.   77    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.   78    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, 2018 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.   79    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.   80    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.   81    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.   82    I.
    
    Subsidiary
    Information At
the date of this report, we have 13 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
    companyDragon
    Creative Ltd
    Hong
    Kong
    100%
    Direct
    Sales and distribution
    of various 3D related products and provision of 3D consulting servicesGOXD
    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
    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 servicesDigital
    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.   83    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, 2018. 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, 2018.  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, 2018 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, 2018 under the COSO 2013 Framework.   84     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, 2018:   i.inadequate
                                         segregation of duties due to limited number of personnel, which makes the reporting process
                                         susceptible to management override;  ii.insufficient
                                         written policies and procedures for accounting and financial reporting with respect to
                                         the requirements and application of IFRS and SEC disclosure requirements;  iii.ineffective
                                         controls over period end financial disclosure and reporting processes; and  iv.personnel
                                         turnover in upper management;  Management
believes that the material weaknesses set forth in items (1) through (4) above did not have an effect on the Company's financial
reporting during the year ended December 31, 2018.  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. •We
                                         are in the process of strengthening our internal policies and enhancing our processes
                                         for ensuring consistent treatment and recording of reserve estimates, performing impairment
                                         analyses, and that validation of our conclusions regarding significant accounting policies
                                         and their application to our business transactions are carried out by personnel with
                                         an appropriate level of accounting knowledge, experience and training.  While
we now believe that these material weaknesses are currently being addressed, we will continue our remediation efforts during fiscal year 2019.  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.   85    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, 2018.  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.  In
the past years, HKCMCPA Limited was our Principal Independent Registered Public Accountants engaged to audit our financial statements
for the fiscal years ended December 31, 2017 and 2016. The following table shows the fees that we paid or accrued for the audit and
other services provided by RJI, for the fiscal years ended December 31, 2018 and 2017.  Fee
    Category
    
    2018
    
    
    2017Audit
    Fees
    
    US$
    48,794
    
    
    US$
    36,000*Audit-Related
    Fees
    
    US$
    --
    
    
    US$
    --Tax
    Fees
    
    US$
    --
    
    
    US$
    --All
    Other Fees
    
    US$
    --
    
    
    US$
    --  * paid to HKCMCPA Limited  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.   86    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.   87    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 - 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, 2016, 2017 and 2018
    F-3Consolidated
    Statements of Financial Position as of December 31, 2017 and 2018
    F-4Consolidated
    Statements of Changes in Equity for the years ended December 31, 2016, 2017 and 2018
    F-5Consolidated
    Statements of Cash Flows for the years ended December 31, 2016, 2017 and 2018
    F-6Notes
    to the Consolidated Financial Statements
    F-7
    through F-40    88     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, 2018, and the related consolidated statements of profit or loss and other comprehensive income / (loss), changes in equity, and cash flows for the year ended December 31, 2018, and the related notes (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, 2018, and the results of its operations, and its cash flows for the year ended December 31, 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 $16,843,223, used cash in operating activities in the amount of $6,858,433, and had accumulated losses of $10,676,713 at December 31, 2018, 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 audit. 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   May
14, 2019   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 statement of financial position of Integrated Media Technology Limited (the
        “Company”) and its subsidiaries (collectively, the “Group”) as of December 31, 2017, and the related
        consolidated statements of profit or loss and other comprehensive (loss) / income, changes in equity, and cash flows for
        the years ended December 31, 2017 and 2016, and the related notes (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, 2017, and the results of their operations, and their cash flows
        for the years ended December 31, 2017 and 2016, 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.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
    
    2018A$
    
    2017A$
    
    2016A$Revenue,
    net
    
    4
    
    1,324,406
    
    5,762,711
    
    13,929,670Cost
    of sales
    
    
    
    (723,711)
    
    (2,548,064)
    
    (2,027,743)600,695
    
    3,214,647
    
    11,901,927Interest
    income
    
    
    
    21,409
    
    3,092
    
    2,027Gain
    on fair value change in derivative financial instruments
    
    25
    
    709,543
    
    -
    
    -Gain
    on fair value change in contingent consideration liability
    
    5
    
    -
    
    3,953,537
    
    -Gain
    / (loss) on disposal of subsidiaries
    
    27(b)
    
    608,995
    
    -
    
    (872)Other
    income
    
    6
    
    469,660
    
    434,296
    
    107,5512,410,302
    
    7,605,572
    
    12,010,633ExpensesEmployee
    benefit expenses
    
    8
    
    (2,253,411)
    
    (1,887,692)
    
    (1,715,687)Depreciation
    and amortization expenses
    
    8
    
    (2,029,373)
    
    (2,021,131)
    
    (2,147,231)Professional
    and consulting expenses
    
    
    
    (1,746,762)
    
    (301,732)
    
    (300,576)Travel
    and accommodation expenses
    
    
    
    (384,184)
    
    (333,503)
    
    (431,282)Office
    expenses and supplies
    
    
    
    (659,611)
    
    (447,414)
    
    (693,398)Rental
    costs
    
    
    
    (674,112)
    
    (407,184)
    
    (370,423)Other
    operating expenses
    
    
    
    (1,169,784)
    
    (655,669)
    
    (563,413)Finance
    costs
    
    7
    
    (1,383,399)
    
    (107,101)
    
    (73,666)Provision
    for impairment loss of goodwill
    
    
    
    (9,953,311)
    
    -
    
    -Exchange
    gain / (loss)
    
    
    
    493,365
    
    61,307
    
    (100,950)Total
    expenses
    
    
    
    (19,760,582)
    
    (6,100,119)
    
    (6,396,626)(Loss)/Profit
    before income tax credit / (expense)
    
    8
    
    (17,350,280)
    
    1,505,453
    
    5,614,007Income
    tax credit / (expense)
    
    9
    
    507,057
    
    187,213
    
    (2,018,939)(Loss)/Profit
    for the year
    
    
    
    (16,843,223)
    
    1,692,666
    
    3,595,068Other
    comprehensive income / (loss)Items
    that may be re-classified subsequently to profit or loss:Exchange
    differences on translation of financial statements of overseas subsidiaries
    
    
    
    1,015,454
    
    (657,314)
    
    (326,098)Other comprehensive income / (loss) for the year, net
of tax
    
    
    
    1,015,454
    
    (657,314)
    
    (326,098)Total
    comprehensive (loss)/income for the year
    
    
    
    (15,827,769)
    
    1,035,352
    
    3,268,970(Loss)/Profit
    for the year attributable to:Equity
    shareholders of Integrated Media Technology Limited
    
    
    
    (15,962,278)
    
    1,695,567
    
    3,627,757Non-controlling
    interests
    
    
    
    (880,945)
    
    (2,901)
    
    (32,689)(16,843,223)
    
    1,692,666
    
    3,595,068Total
    comprehensive (loss)/income for the year attributable to:Equity
    shareholders of Integrated Media Technology Limited
    
    
    
    (15,119,876)
    
    1,033,582
    
    3,302,453Non-controlling
    interests
    
    
    
    (707,893)
    
    1,770
    
    (33,483)(15,827,769)
    
    1,035,352
    
    3,268,970(Loss)/Earnings
    per share
    
    
    
    A$
    
    A$
    
    A$-   
    Basic and Diluted
    
    11
    
    (5.93)
    
    0.64
    
    1.37  The
above consolidated statements of profit or loss and 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, except number of shares)  December 31,2018
    
    2017Note
    
    
    A$
    
    A$ASSETSCurrent
    AssetsCash
    and bank balances
    
    
    
    
    1,514,215
    
    2,860,014Inventories
    
    12
    
    
    1,394,065
    
    1,768,232Trade
    and other receivables
    
    13
    
    
    1,183,765
    
    3,379,829Other
    assets
    
    14
    
    
    1,908,269
    
    1,190,295Total
    Current Assets
    
    
    
    
    6,000,314
    
    9,198,370Non-Current
    AssetsPlant
    and equipment
    
    15
    
    
    729,480
    
    581,317Intangible
    assets and goodwill
    
    16
    
    
    16,323,167
    
    22,052,310Development
    projects
    
    17
    
    
    2,980,113
    
    4,027,452Total
    Non-Current Assets
    
    
    
    
    20,032,760
    
    26,661,079TOTAL
    ASSETS
    
    
    
    
    26,033,074
    
    35,859,449LIABILITIESCurrent
    LiabilitiesTrade
    and other liabilities
    
    18
    
    
    636,042
    
    808,963Provision
    for employee benefits
    
    19
    
    
    54,320
    
    49,166Amounts
    due to related companies
    
    20
    
    
    2,130,368
    
    33,353Amount
    due to ultimate holding company
    
    21
    
    
    172,773
    
    157,492Income
    tax payable
    
    9
    
    
    -
    
    1,046,219Borrowings
    
    22
    
    
    1,708,875
    
    1,609,392Obligation
    under finance lease
    
    23
    
    
    18,123
    
    15,653Total
    Current Liabilities
    
    
    
    
    4,720,501
    
    3,720,238Non-current
    LiabilitiesObligation
    under finance lease
    
    23
    
    
    39,169
    
    51,819Deferred
    tax liabilities
    
    9
    
    
    1,244,814
    
    1,586,309Amount
    due to ultimate holding company
    
    21
    
    
    -
    
    15,110,749Convertible
    bonds
    
    24
    
    
    3,280,744
    
    -Derivative
    financial instruments
    
    25
    
    
    126,095
    
    -Total
    Non-Current Liabilities
    
    
    
    
    4,690,822
    
    16,748,877TOTAL
    LIABILITIES
    
    
    
    
    9,411,323
    
    20,469,115NET
    CURRENT ASSETS
    
    
    
    
    1,279,813
    
    5,478,132NET
    ASSETS
    
    
    
    
    16,621,751
    
    15,390,334CAPITAL
    AND RESERVESIssued
    capital (no par value, 3,377,386 and 2,643,611 ordinary shares issued and outstanding as of December 31, 2018 and 2017)
    
    28
    
    
    18,902,029
    
    10,410,279Foreign
    currency translation reserve
    
    29
    (a)
    
    629,383
    
    (251,659)Other
    reserves
    
    29
    (b)
    
    4,959,089
    
    -(Accumulated
    losses) / retained earnings
    
    
    
    
    (10,676,713)
    
    5,285,565Total equity attributable to equity shareholders of
Integrated Media Technology Limited
    
    
    
    
    13,813,788
    
    15,444,185Non-controlling
    interests
    
    
    
    
    2,807,963
    
    (53,851)TOTAL
    EQUITY
    
    
    
    
    16,621,751
    
    15,390,334 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, except number of shares)  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, 2016
    
    10,410,279
    
    (37,759)
    
    735,630
    
    -
    
    (22,138)
    
    11,086,012Changes
    in equity for 2016:Profit
    / (loss) for the year
    
    -
    
    3,627,757
    
    -
    
    -
    
    (32,689)
    
    3,585,068Other
    comprehensive loss for the year, net of tax
    
    -
    
    -
    
    (325,304)
    
    -
    
    (794)
    
    (326,098)Total
    comprehensive income for the year
    
    -
    
    3,627,757
    
    (325,304)
    
    -
    
    (33,483)
    
    3,268,970Balance
    at December 31, 2016
    
    10,410,279
    
    3,589,998
    
    410,326
    
    -
    
    (55,621)
    
    14,354,982Attributable
    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
    
    10,410,279
    
    5,285,565
    
    (251,659)
    
    -
    
    (53,851)
    
    15,390,334Attributable
        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, 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
    
    -
    
    -
    
    -
    
    535,948
    
    -
    
    535,948Capital
    injection by non-controlling interests
    
    -
    
    -
    
    -
    
    -
    
    3,528,287
    
    3,528,287Gain
    on deemed disposal of subsidiaries
    
    -
    
    -
    
    -
    
    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
    
    18,902,029
    
    (10,676,713)
    
    629,383
    
    4,959,089
    
    2,807,963
    
    16,621,751 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, except number of shares)  Years
    Ended December 31,2018
    
    2017
    
    2016Note
    
    A$
    
    A$
    
    A$Cash
    flows from operating activities(Loss)
    / Profit before income tax
    
    
    
    (17,350,280)
    
    1,505,453
    
    5,614,007Adjustments
    to reconcile profit before income tax to net cash   (used in) / provided by operating activities:Depreciation
    and amortization
    
    
    
    2,029,373
    
    2,021,131
    
    2,147,231Write
    off of plant and equipment
    
    
    
    171,371
    
    -
    
    -Equity
    settled share based payment transaction
    
    
    
    491,750
    
    -
    
    -Impairment
    loss of trade receivables
    
    
    
    124,528
    
    -
    
    -Provision
    for inventories obsolescence
    
    
    
    100,000
    
    -
    
    -Gain
    on disposal of subsidiaries
    
    
    
    (608,995)
    
    -
    
    -Fair
    value change in derivative financial instruments
    
    
    
    (709,543)
    
    -
    
    -Fair
    value change in contingent consideration liability
    
    
    
    -
    
    (3,953,537)
    
    -Finance
    costs for convertible bonds
    
    
    
    930,276
    
    -
    
    -Interest
    paid for convertible bonds
    
    
    
    (394,060)
    
    -
    
    -Provision
    for impairment loss of goodwill
    
    
    
    9,953,311
    
    -
    
    -Net
    cash inflows / (outflows) from changes in working capital
    
    33
    
    (1,596,164)
    
    5,291,261
    
    (8,970,290)Net
    cash (used in) / provided by operating activities
    
    
    
    (6,858,433)
    
    4,864,308
    
    (1,209,052)Cash
    flows from investing activitiesPayments
    for acquisition of plant and equipment
    
    
    
    (838,238)
    
    (47,513)
    
    (427,596)Payments
    for intangible assets
    
    
    
    (587,864)
    
    (181,287)
    
    (1,089,357)Payments
    for development projects
    
    
    
    (1,884,172)
    
    (1,961,191)
    
    (2,528,308)Disposal
    of subsidiaries, net of cash disposal of
    
    
    
    (9,494)
    
    -
    
    -Net
    cash used in investing activities
    
    
    
    (3,319,768)
    
    (2,189,991)
    
    (4,045,261)Cash
    flows from financing activitiesAdvances
    from / (repayment) of amounts due to related parties
    
    
    
    1,806,044
    
    (2,003,277)
    
    (891,957)Proceeds
    from bank borrowings
    
    
    
    809,280
    
    1,244,925
    
    447,250Repayment
    of bank borrowings
    
    
    
    (904,850)
    
    (821,200)
    
    -Payment
    to ultimate holding company
    
    
    
    (4,782,610)
    
    -
    
    -Payments
    for obligation under finance lease
    
    
    
    (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
    
    8,638,582
    
    (1,579,552)
    
    (444,707)Net
    (decrease) / increase in cash and cash equivalents
    
    
    
    (1,539,619)
    
    1,094,765
    
    (5,699,020)Effect of exchange rate changes on cash and cash equivalents
    
    
    
    89,252
    
    (61,658)
    
    (147,211)Cash and cash equivalents at the beginning of financial
year
    
    
    
    2,070,072
    
    1,036,965
    
    6,883,196Cash
    and cash equivalents at the end of financial year
    
    
    
    619,705
    
    2,070,072
    
    1,036,965Analysis
    of cash and cash equivalents:Cash
    and bank balances
    
    
    
    1,514,215
    
    2,860,014
    
    1,820,994Bank
    overdraft
    
    
    
    (894,510)
    
    (789,942)
    
    (784,029)Cash
    and cash equivalents
    
    
    
    619,705
    
    2,070,072
    
    1,036,965 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, 2018, 2017 and 2016 which were authorized for issue by the Board of Directors on May
13, 2019. 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 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, 2018, the Company had accumulated losses
of $10,676,713 and generated a net loss in 2018 of $16,843,223 and used cash in operating activities in the amount of $6,858,433.
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. As of December
31, 2018, the Company has continued to raise funds through the sale of its equity securities and issuance of convertible bonds
to obtain additional operating capital. The Company is 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 bonds, 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)
    Seek
    additional capital in the public equity markets to continue its operations as it rolls out its current products in development,
    respond to competitive pressures, develop new products and services, and support new strategic partnerships. 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.  NOTE
2. BASIS OF ACCOUNTING  The
consolidated financial statements present general purpose financial report that have 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, 2018 (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, 2018 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
Combination 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-7    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.   F-8    NOTE
3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (e)       Intangible
Assets (continued) (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)       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 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,
                                         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. (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-9    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. (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 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.   F-10    NOTE
3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (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
year ended December 31, 2018 and 2017, the comprehensive income was A$629,383 and A$(251,659) respectively which was mainly resulted
from the translation of the foreign operations in Hong Kong (HKD) 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. (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.   F-11    NOTE
3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (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. (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 statement of financial position. Employee
entitlements to sick leave and maternity leave are not recognised until the time of leave. (ii)       Pension
obligations Short
term employee benefits and contributions to defined contribution retirement plans 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 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 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 Revenue
is recognized as interest accrues using the effective interest method.   F-12    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 statement 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 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 are compensating.
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.   F-13    NOTE
3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (ab)	Fair
Value Fair
values may be used for financial asset and liability measurement 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. (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, 2018:  ·IFRS
                                         9 Financial Instruments and associated Amending Standards  The
Standard will be applicable retrospectively (subject to the comment on hedge accounting below) and includes revised requirements
for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial
instruments and simplified requirements for hedge accounting.  Key
changes made to this standard that may affect the Group on initial application include certain simplifications to the classification
of financial assets, simplifications to the accounting of embedded derivatives, and the irrecoverable election to recognize gains
and losses on investments in equity instruments that are not held for trading in other comprehensive income.  The
adoption of these amendments has not had a material impact on the Group.  ·IFRS
                                         15 Revenue from Contracts with Customers  IFRS
15 Revenue from Contracts with Customers, effective as of January 1, 2018, supersedes IAS 11 Construction Contracts, IAS 18 Revenue
and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. The
standard establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue
be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring
goods or services to a customer.  Management
evaluated the new guidelines introduced by IFRS 15 and applied the five-step model in order to reassess its revenue recognition
criteria. Beginning January 1, 2018, management implemented the new guidelines introduced by IFRS 15.  The
adoption of these amendments has not had a material impact on the Group.  ·IFRIC
                                         22 Foreign Currency Transactions and Advance Consideration  Foreign
Currency Transactions and Advance Consideration addresses how to determine the ‘date of the transaction’ when applying
IAS 21. It is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted.  The
adoption of these amendments has not had a material impact on the Group.  (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. The Group does not plan to adopt these standards early.  ·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.  Management
is currently evaluating the new guidelines introduced by IFRS 16 and its impact for the Group.  ·IFRIC
                                         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.  There
are no other standards or interpretations not yet effective that could have a material impact on the Group’s financial statements.   F-14    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 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$4,468,293
(2017: A$13,061,371). 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.   F-15    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 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. (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, 2017 and 2018, as the Company recognized the actual deferred performance fee to be paid to MFL of A$15,110,749 in 2017.   F-16    NOTE
4. REVENUE AND SEGMENT INFORMATION  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Development,
    sales and distribution of 3D autostereoscopic products and conversion equipment
    
    1,262,066
    
    4,365,364
    
    4,726,500Sales
    of software and technology solutions
    
    13,731
    
    1,180,491
    
    9,085,792Sales
    and distribution of audio products
    
    48,609
    
    54,251
    
    111,045Provision
    of consultancy and other services
    
    -
    
    162,605
    
    6,3331,324,406
    
    5,762,711
    
    13,929,670 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 four operating segments for the year ended December
31, 2018 (2017: four and 2016: four), being (1) the development, sale and distribution of autostereoscopic 3D displays, conversion
equipment, software and others, (2) sale and distribution of audio products, (3) provision of consultancy services and (4) corporate. Segment
information for the reporting period is as follows:  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
    
    11,774,848
    
    -
    
    35,610
    
    14,322,616
    
    26,033,074Segment
    liabilities 2018
    
    2,797,393
    
    -
    
    (688,268)
    
    7,302,198
    
    9,411,323   F-17    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 (loss) / profit
    
    (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  For
    the year ended December 31, 2016
    
    Development,
    sale and distribution of 3D displays, conversion equipment, software and othersA$
    
    Sales
    and distribution of audio productsA$
    
    Consultancy
    servicesA$
    
    CorporateA$
    
    TotalA$RevenueRevenue,
    net
    
    13,818,418
    
    111,045
    
    207
    
    -
    
    13,929,670Interest
    income
    
    1,856
    
    11
    
    6
    
    154
    
    2,027Other
    income
    
    100,374
    
    7,177
    
    -
    
    -
    
    107,551Segment
    revenue
    
    13,920,648
    
    118,233
    
    213
    
    154
    
    14,039,248Cost
    of sales
    
    1,928,904
    
    97,504
    
    1,335
    
    -
    
    2,027,743Employee
    benefit expenses
    
    1,002,040
    
    44,822
    
    611,825
    
    57,000
    
    1,715,687Depreciation
    and amortization expenses
    
    2,035,365
    
    14,322
    
    97,544
    
    -
    
    2,147,231Loss
    on disposal of a subsidiary
    
    -
    
    -
    
    -
    
    872
    
    872Professional
    and consulting expenses
    
    129,636
    
    1,813
    
    56,653
    
    112,474
    
    300,576Travel
    and accommodation expenses
    
    352,926
    
    5,924
    
    39,470
    
    32,962
    
    431,282Other
    operating expenses
    
    1,414,558
    
    112,449
    
    87,152
    
    114,025
    
    1,728,184Finance
    costs
    
    73,666
    
    -
    
    -
    
    -
    
    73,666Segment
    expenses
    
    6,937,095
    
    276,834
    
    893,979
    
    317,333
    
    8,425,241Segment
    operating profit / (loss)
    
    6,983,553
    
    (158,601
    )
    (893,766
    )
    (317,179
    )
    5,614,007Segment
    assets 2016
    
    21,117,152
    
    73,108
    
    297,280
    
    21,993,897
    
    43,481,437Segment
    liabilities 2016
    
    6,811,574
    
    17,453
    
    174,182
    
    22,123,246
    
    29,126,455 The
geographic information analyses the Group’s revenue and non-current assets by the Company’s country of domicile and
other countries. 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-18    NOTE
4. REVENUE AND SEGMENT INFORMATION (Continued) 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, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Australia
    
    -
    
    -
    
    -Hong
    Kong
    
    326,943
    
    3,235,872
    
    5,507,684China
    
    997,463
    
    2,526,839
    
    8,421,9861,324,406
    
    5,762,711
    
    13,929,670  Non-current
assets by geographic location ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Australia
    
    4,468,293
    
    13,062,904
    
    14,256,752Hong
    Kong
    
    14,534,313
    
    12,384,224
    
    13,026,972China
    
    1,030,154
    
    1,213,951
    
    1,465,01220,032,760
    
    26,661,079
    
    28,748,736 Major
customers For
the year ended December 31, 2018, the Group has two individual customers (2017 and 2016: 5 and 5 respectively) with revenues comprising
more than 10% of Group’s revenues and their respective receivables due from these customers are disclosed below:  31
    December 2018
    
    31
    December 2017
    
    31
    December 2016Percentage
    of Revenue
    
    Balance
                                         due
        A$
    
    Percentage
    of Revenue
    
    Balance
                                         due
        A$
    
    Percentage
    of Revenue
    
    Balance
                                         due
        A$Customer
    A
    
    44%
    
    576,590
    
    -
    
    -
    
    -
    
    -Customer
    B
    
    28%
    
    346,163
    
    -
    
    -
    
    -
    
    -Customer
    C
    
    -
    
    -
    
    20%
    
    -
    
    -
    
    -Customer
    D
    
    -
    
    -
    
    14%
    
    521,334
    
    -
    
    -Customer
    E
    
    -
    
    -
    
    13%
    
    802,009
    
    -
    
    -Customer
    F
    
    -
    
    -
    
    11%
    
    9,029
    
    12%
    
    378,673Customer
    G
    
    -
    
    -
    
    10%
    
    50,717
    
    -
    
    -Customer
    H
    
    -
    
    -
    
    -
    
    -
    
    15%
    
    -Customer
    I
    
    -
    
    -
    
    -
    
    -
    
    12%
    
    1,301,381Customer
    J
    
    -
    
    -
    
    -
    
    -
    
    10%
    
    299,046Customer
    K
    
    
    
    
    
    
    
    
    
    37%
    
    5,309,526   F-19    NOTE
5. GAIN ON FAIR VALUE CHANGE IN CONTINGENT CONSIDERATION LIABILITY  As
at December 31, 2017 and 2018, the Group did not hold any contingent consideration liability.  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 year 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$1,683,749 in 2017. NOTE
6. OTHER INCOME ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Government
    grant
    
    436,889
    
    426,281
    
    88,387Sundry
    income
    
    32,771
    
    8,015
    
    19,164469,660
    
    434,296
    
    107,551 NOTE
7. FINANCE COSTS  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Bank
    overdraft and borrowing interest
    
    53,262
    
    42,285
    
    1,245Interest
    on finance lease liability
    
    2,993
    
    3,750
    
    -Interest
    on convertible bonds
    
    930,276
    
    -
    
    -Interest
    charged by the ultimate holding company
    
    396,868
    
    61,066
    
    72,4211,383,399
    
    107,101
    
    73,666 NOTE
8. (LOSS) / PROFIT BEFORE INCOME TAX ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Employee
    benefit expenses:-
    Wages and salaries
    
    2,752,041
    
    2,479,754
    
    2,505,964-
    Defined contribution superannuation plan expenses
    
    150,114
    
    106,414
    
    86,515-
    Less: Labor cost allocated to development projects
    
    (716,115)
    
    (764,476)
    
    (925,792)-
    Non-executive directors’ remuneration
    
    67,371
    
    66,000
    
    49,000Total
    employee benefit expenses
    
    2,253,411
    
    1,887,692
    
    1,715,687Depreciation
    and amortization of non-current assets:-
    Leasehold improvements
    
    310,370
    
    222,015
    
    360,778-
    Office furniture and equipment
    
    115,123
    
    304,262
    
    382,789-
    Motor vehicle
    
    9,813
    
    11,087
    
    --
    Intangible assets
    
    1,594,067
    
    1,483,767
    
    1,403,664Total
    depreciation and amortization
    
    2,029,373
    
    2,021,131
    
    2,147,231Other
    Expenses:Allowances
    for doubtful debts
    
    124,528
    
    -
    
    -Rental
    expense on operating lease
    
    674,112
    
    407,184
    
    370,423Provision
    for inventories obsolescence
    
    100,000
    
    -
    
    --
        Audit and review of financial statements-   
    statutory auditor of the Group in Australia
    
    62,794
    
    64,000
    
    37,500-   
    auditors of the subsidiaries in Hong Kong and China
    
    9,175
    
    4,097
    
    1,627-   
    auditor for other reporting purposes
    
    69,110
    
    123,638
    
    7,105141,079
    
    191,735
    
    46,232   F-20    NOTE
9. INCOME TAX CREDIT / (EXPENSE)  ConsolidatedDecember 31,
    2018A$
    
    December 31,
    2017A$
    
    December 31,
    2016A$Income
    tax over provision / (income tax expense)
    
    102,853
    
    -
    
    (1,052,266)Deferred
    tax credit / (expense)
    
    404,204
    
    187,213
    
    (966,673)Income
    tax credit / (expense)
    
    507,057
    
    187,213
    
    (2,018,939) (a)The
                                         prima-facie tax on (loss) / profit before income tax is reconciled to the income tax
                                         credit /(expense) as follows: ConsolidatedDecember 31,
    2018A$
    
    December
    31, 2017A$
    
    December 31,
    2016A$Numerical
    reconciliation of income tax expense to prima facie tax payable(Loss)
    /Profit before income tax
    
    (17,350,280)
    
    1,505,453
    
    5,614,007Income
    tax credit / (expense) on profit before income tax at 30%
    
    5,205,084
    
    (451,636)
    
    (1,684,202)Difference
    in overseas tax rates
    
    (830,805)
    
    27,266
    
    312,313Add
    / (less) the tax effect of:Reversal
    of over provision
    
    102,853
    
    -
    
    -Utilisation
    of tax losses during the year
    
    -
    
    -
    
    (500,971)Tax
                                    losses and temporary differences for the year for which no
        deferred
        tax is recognized
    
    (3,970,075)
    
    611,583
    
    (146,079)Income
    tax credit / (expense)
    
    507,057
    
    187,213
    
    (2,018,939) (b)Deferred
                                         tax assets / (liabilities) arising from temporary differences and unused tax losses can
                                         be summarized as follows: ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Balance
    brought forward
    
    
    
    (1,586,309)
    
    (1,909,030)Accelerated
    depreciation allowances
    
    
    
    -
    
    (46,621)Temporary
    differences derecognized
    
    
    
    404,204
    
    -Release
    of disposal of subsidiaries
    
    
    
    65,232
    
    -Future
    benefit of tax losses
    
    
    
    -
    
    233,426Exchange
    difference
    
    
    
    (127,941)
    
    135,916Total
    
    
    
    (1,244,814)
    
    (1,586,309)  (c)Income
                                         tax payable in the consolidated statement of financial position represents:  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Balance
    brought forward
    
    
    
    (1,046,219)
    
    (1,069,364)Over
    provision of prior years
    
    
    
    102,853
    
    -Release
    on disposal of subsidiaries
    
    
    
    992,343
    
    -Exchange
    difference
    
    
    
    (48,977)
    
    23,145Total
    
    
    
    -
    
    (1,046,219)  NOTE
10. DIVIDENDS No
dividends were declared and paid during the financial year for the year ended December 31, 2018 (2017: Nil ).   F-21    NOTE
11. (LOSS) / EARNINGS PER SHARE  ConsolidatedDecember 31,
    2018A$
    
    December 31,
    2017A$
    
    December 31,
    2016A$(Loss)
    / Profit after income tax attributable to shareholders
    
    (15,962,278)
    
    1,695,567
    
    3,627,757Number
    of ordinary shares
    
    3,377,386
    
    2,643,611
    
    2,643,611Weighted
    average number of ordinary shares on issue
    
    2,692,543
    
    2,643,611
    
    2,643,611Basic
    and diluted (loss) / earnings per share
    
    (5.93)
    
    0.64
    
    1.37 The
above number of shares and earnings per share in 2016 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, 2018A$
    
    December
    31, 2017A$Raw
    materials
    
    
    
    1,216,298
    
    1,019,954Finished
    goods – displays and other products
    
    
    
    277,767
    
    748,278Provision
    for inventories obsolescence
    
    
    
    (100,000)
    
    -Total
    
    
    
    1,394,065
    
    1,768,232   NOTE
13. TRADE AND OTHER RECEIVABLES  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Trade
    receivables
    
    
    
    1,086,161
    
    2,489,235Other
    receivables
    
    
    
    222,132
    
    134,009Amounts
    due from related companies
    
    
    
    -
    
    756,5851,308,293
    
    3,379,829Less:
    Allowances for doubtful debts
    
    
    
    (124,528)
    
    -1,183,765
    
    3,379,829  (a)       Ageing
Analysis The
ageing analysis of trade receivables is as follows: ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Current
    
    
    
    -
    
    617,346Past
    due<
    31 days
    
    
    
    74,762
    
    244,00431
    - 90 days
    
    
    
    3,100
    
    95,277>
    91 days
    
    
    
    1,008,299
    
    1,532,6081,086,161
    
    1,871,8891,086,161
    
    2,489,235  (b)
       Trade receivables which are past due but not impaired Included
in the Group’s trade receivable balance are debtors with an aggregate carrying amount of A$1,086,161 (2017: A$1,871,889)
which are past due at the end of the reporting period for which the Group has made provision for impairment loss of A$124,528. The
carrying value of trade receivables is considered reasonable approximation of fair value to the short term nature of the balance. The
maximum exposure to credit risk at the reporting date is the fair value of each class of receivables in the consolidated financial
statements. Refer to Note 31(e) for further details of credit risk management.   F-22    NOTE
14. OTHER ASSETS  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Prepayments
    
    
    
    432,387
    
    106,815Trade
    deposits
    
    
    
    559,683
    
    850,845Other
    deposits
    
    
    
    874,840
    
    228,753GST
    receivable
    
    
    
    41,359
    
    3,8821,908,269
    
    1,190,295 NOTE
15. PLANT AND EQUIPMENT  ConsolidatedLeasehold
    ImprovementsA$
    
    Office
    Furniture and EquipmentA$
    
    Motor
    VehicleA$
    
    TotalA$At
    January 1, 2017Cost
    
    1,239,520
    
    2,003,660
    
    -
    
    3,243,180Accumulated
    depreciation
    
    (778,367)
    
    (1,399,178)
    
    -
    
    (2,177,545)Net
    book amount
    
    461,153
    
    604,482
    
    -
    
    1,065,635Year
    ended December 31, 2017Opening
    net book amount
    
    461,153
    
    604,482
    
    -
    
    1,065,635Additions
    
    -
    
    32,403
    
    85,129
    
    117,532Depreciation
    expense
    
    (222,015)
    
    (304,262
    
    (11,087)
    
    (537,364)Exchange
    difference
    
    (33,554)
    
    (28,230
    
    (2,702)
    
    (64,486)Closing
    net book amount at December 31, 2017
    
    205,584
    
    304,393
    
    71,340
    
    581,317  At
    December 31, 2017Cost
    
    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 at December 31, 2017
    
    205,584
    
    304,393
    
    71,340
    
    581,317  Year
    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
    
    729,480  At
    December 31, 2018Cost
    
    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, 2018
    
    88,477
    
    580,408
    
    60,595
    
    729,480   F-23    NOTE
16. INTANGIBLE ASSETS AND GOODWILL  GoodwillA$
    
    Autostereoscopic
    3D Display Technologies and KnowhowA$
    
    Patents
    and TrademarkA$
    
    Software
    and LicenseA$
    
    TotalA$CostAt
    January 1, 2017
    
    14,256,751
    
    10,893,981
    
    1,055,174
    
    34,385
    
    26,240,291Additions
    
    -
    
    -
    
    181,287
    
    -
    
    181,287Reclassification
    
    -
    
    487,555
    
    -
    
    -
    
    487,555Exchange
    difference
    
    (1,195,380)
    
    (928,032)
    
    (19,834)
    
    (1,008)
    
    (2,144,254)At
    December 31, 2017
    
    13,061,371
    
    10,453,504
    
    1,216,627
    
    33,377
    
    24,764,879At
    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
    
    30,938,350Accumulated
    Amortization and Impairment LossesAt
    January 1, 2017
    
    -
    
    (1,382,255)
    
    (33,052)
    
    (21,888)
    
    (1,437,195)Amortisation
    
    -
    
    (1,341,860)
    
    (131,419)
    
    (10,488)
    
    (1,483,767)Disposal
    
    -
    
    -
    
    -
    
    -
    
    -Exchange
    difference
    
    -
    
    167,679
    
    37,075
    
    3,639
    
    208,393At
    December 31, 2017
    
    -
    
    (2,556,436)
    
    (127,396)
    
    (28,737)
    
    (2,712,569)At
    January 1, 2018
    
    -
    
    (2,556,436)
    
    (127,396)
    
    (28,737)
    
    (2,712,569)Amortisation
    
    -
    
    (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)Carrying
    AmountAt
    December 31, 2017
    
    13,061,371
    
    7,897,068
    
    1,089,231
    
    4,640
    
    22,052,310At
    December 31, 2018
    
    4,468,293
    
    10,461,672
    
    946,278
    
    446,924
    
    16,323,617  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% (2017: 18%). 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 70%. The recoverable amount of the
corresponding cash generating unit from our value-in-use calculation is estimated to be approximately A$20,274,000, 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$9,953,311 has been made.  Included
in the amount of reclassification was A$3,032,234 being transferred from development projects and reclassified as intangible assets.
Development projects are reclassified as intangible asset only when the Group can demonstrate the technical feasibility of completing
the intangible asset itself or technology so that it will be available for application in existing or new products or for sale,
its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the
availability of resources to complete the development, the ability to measure reliably the expenditure attributable to the intangible
asset during its development and the ability to use the tangible asset generated.   F-24    NOTE
17. DEVELOPMENT PROJECTS  A$At
    January 1, 2017Cost
    
    
    
    
    
    2,880,005Accumulated
    impairment losses
    
    
    
    
    
    -Net
    book amount
    
    
    
    
    
    2,880,005A$Year
    ended December 31, 2017Opening
    net book amount
    
    
    
    
    
    2,880,005Additions
    
    
    
    
    
    1,961,191Reclassification
    
    
    
    
    
    (439,069)Disposal
    
    
    
    
    
    (68,360)Exchange
    difference
    
    
    
    
    
    (306,315)Closing
    net book amount
    
    
    
    
    
    4,027,452A$At
    January 1, 2018Cost
    
    
    
    
    
    4,027,452Accumulated
    impairment losses
    
    
    
    
    
    -Net
    book amount
    
    
    
    
    
    4,027,452A$Year
    ended December 31, 2018Opening
    net book amount
    
    
    
    
    
    4,027,452Additions
    
    
    
    
    
    1,884,172Reclassification
    
    
    
    
    
    (3,147,419)Disposal
    
    
    
    
    
    (120,715)Exchange
    difference
    
    
    
    
    
    336,623Closing
    net book amount
    
    
    
    
    
    2,980,113A$At
    December 31 2018Cost
    
    
    
    
    
    2,980,113Accumulated
    impairment losses
    
    
    
    
    
    -Net
    book amount
    
    
    
    
    
    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. Included
in the amount of reclassification was A$3,032,234 being transferred and reclassified to intangible assets. These represented the
accumulated development costs of projects that were completed during the year.  NOTE
18. TRADE AND OTHER LIABILITIES  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Trade
    payables
    
    
    
    24,275
    
    63,440Accruals
    
    
    
    593,245
    
    334,425Deferred
    revenue
    
    
    
    -
    
    165,983Value
    added tax payables
    
    
    
    -
    
    157,489Trade
    deposits received
    
    
    
    18,522
    
    11,872Others
    
    
    
    -
    
    75,754636,042
    
    808,963  NOTE
19. PROVISION FOR EMPLOYEE BENEFITS  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Provision
    for employee benefits
    
    
    
    54,320
    
    49,166 The
provision for employee benefits represents the unpaid annual leave provision. NOTE
20. AMOUNTS DUE TO RELATED COMPANIES  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Current
    portion
    
    
    
    2,130,368
    
    33,353Non-current
    portion
    
    
    
    -
    
    -2,130,368
    
    33,353 The
amounts due to related companies include a loan of $1,664,924 (HKD9,200,000) which is non-interest bearing, unsecured and payable
on September 30, 2019. All the other amounts of the A$465,444 due to related companies are unsecured, non-interest bearing and
repayable on demand.   F-25    NOTE
21. AMOUNT DUE TO ULTIMATE HOLDING COMPANY  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Current
    portion
    
    
    
    172,773
    
    157,492Non-current
    portion
    
    
    
    -
    
    15,110,749172,773
    
    15,268,241 The
amount due to the ultimate holding company, Marvel Finance Limited (“MFL”) was primarily from the acquisition of Marvel
Digital Limited (“MDL”) in September 2015. The ultimate holding company agrees to provide financial support to the
Group in the early stage for on-going technology development and operation after the acquisition of MDL. Effective
from February 1, 2018, the non-current portion of amount due to MFL is unsecured and carries interest at an annual interest rate
of 2.5% over the one month Hong Kong Interbank Offer Rate. The current portion is unsecured, carries interest at an annual interest
rate of 2.5% over the one month HIBOR and repayable on demand. On December 12, 2018, A$8,000,000 of the non-current portion were
settled by converting the debt to shares in the Company at a members’ meeting approved by the shareholders of the Company.
Other significant movements during the year include i) A$3,562,962 of the non-current portion were settled by debt assignment
which the deed was signed between MFL and Integrated Media Technology Limited on October 18, 2018; ii) Cash advance of A$3,846,068
was made by MDL to MFL; iii) During the year, the Group entered into a loan agreement with its parent company, Marvel Finance
Limited where it lend approximately of A$1,085,820 (HK$6,000,000) to GOXD Technology Limited. 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.   NOTE
22. BORROWINGS  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Bank
    overdraft, unsecured
    
    
    
    894,510
    
    789,942Bank
    borrowings, unsecured
    
    
    
    814,365
    
    819,4501,708,875
    
    1,609,392  Bank
overdraft and borrowings carry interest at an annual interest rate of 3.0 % over the one month HIBOR. As
at December 31, 2018, the Group had total banking facilities of A$1,809,700 (2017: A$1,638,900) of which A$1,708,875 (2017: A$1,609,392)
were utilised. The
Company was required to repay interest portion of the bank borrowing on a monthly basis and the two withdrawn principals, A$452,425
and A$361,940 on September 28, 2019 and October 15, 2019 respectively. The
unsecured bank overdraft and bank borrowings are guaranteed by our director, Dr. Herbert Ying Chiu LEE. The
company complied with all bank covenants and related capital requirements during 2018 and 2017. NOTE
23. OBLIGATION UNDER FINANCE LEASE  ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$Within
    one year
    
    
    18,123
    
    15,653Two
    to five years
    
    
    39,169
    
    51,81957,292
    
    67,472Less:
    Amount due within one year shown under current liabilities
    
    
    (18,123)
    
    (15,653)Amount
    due after one year
    
    
    39,169
    
    51,819No
    later than 1 year
    
    
    20,453
    
    18,522Later
    than 1 year and no later than 5 years
    
    
    51,131
    
    55,56771,584
    
    74,089Future
    finance charges on finance leases
    
    
    (14,292)
    
    (6,617)Present
    value of finance lease liability
    
    
    57,292
    
    67,472 Obligation
under finance lease carries an interest rates of 2.5% per annum.   F-26    NOTE
24. CONVERTIBLE BONDS  Group2018
    
    2017A$
    
    A$Face
    value of convertible bonds issued on 3 January 2018
    3,769,470
    
    -Equity
    component
    (535,948)
    
    -Derivatives
    embedded in the convertible bonds issued (Note 25)
    (772,112)
    
    -Liability
    component on initial recognition at January 1, 2018
    2,461,410
    
    -Interest
                                         accrued at effective interest rate during the year ended December 31, 2018
        (Note
        7)
    930,276
    
    -Interest
    paid during the year ended December 31, 2018
    (394,060)
    
    -Exchange
    difference
    283,118
    
    -Carrying
    value as at December 31, 2018
    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.  NOTE
25. DERIVATIVE FINANCIAL INSTRUMENTS  Group2018
    
    2017A$
    
    A$Derivative
    financial liabilitiesPut
    option liability embedded in the convertible bonds issued (Note 24)
    772,112
    
    -Fair
                                         value change in derivative financial
        instruments
        during the year ended December 31, 2018
    (709,543)
    
    -Exchange
    difference
    63,526
    
    -Carrying
    value as at December 31, 2018
    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 31 December 2018, the fair value of derivatives embedded therein was valued at approximately HK$696,771, equivalent to A$126,095
which was calculated using the Binomial Option Pricing Model.   F-27    NOTE
26. CONTROLLED ENTITIES As
at December 31, 2018, the entities controlled by the Company are as follows:  Name
    of Subsidiary
    
    Country
    of Incorporation
    
    Principal
    Activities
    
    Paid
    Up Capital
    
    PercentageOwned2018
    
    2017CIMC
    Marketing Pty. Limited
    
    Australia
    
    Management
        services and trading
    
    A$1
    
    100%
    
    100%Dragon
    Creative Limited
    
    Hong
    Kong
    
    Sale
        and distribution of various 3D related products and provision of 3D 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
    
    Hong
    Kong
    
    Sales
                                    of software and provision of consultancy services
    
    HK$1
    
    95%
    (indirect)
    
    100%
    (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
    
    RMB4,521,949(A$931,793)
    
    95%
    (indirect)
    
    100%
    (indirect)Binario
    Limited
    
    British
        Virgin Islands
    
    Investment
    holding
    
    A$1
    
    100%
    
    100%Digital
    Media Technology Limited
    
    Malaysia
    
    Dormant
    
    US$100(A$142)
    
    100%
    (indirect)
    
    100%
    (indirect)Yamaga
    Limited*
    
    Hong
    Kong
    
    Provision
        of advertising and media services
    
    HK$1
    
    0%
    
    100%Global
    Vantage Audio Limited*
    
    Hong
    Kong
    
    Sale
                                       and distribution of audio products
    
    HK$1
    
    0%
    
    50%
    (indirect)Marvel
    Digital (Shenzhen) Limited*
    
    P.R.C.
    
    Manufacturing
        and distribution of 3D products and provision of 3D consultancy services
    
    RMB23,939,197(A$4,932,911)
    
    0%
    
    100%
    (indirect)Yamaga
    Audio Limited*
    
    United
        States of America
    
    Investment
    holding
    
    US$1
    
    0%
    
    100%Zamora
    Corporation*
    
    United
    States of America
    
    Sale
        and administration office in U.S.A.
    
    US$1
    
    0%
    
    100%  *
Disposed during the year.   F-28    NOTE
27. BUSINESS COMBINATIONS (a)Sale
                                         of Conco International Co., Ltd During
the year ended December 31, 2016. The Company disposed of its shareholding in Conco International Co., Ltd. (“CICL”)
which was a company principally engaged in the design, sales and distribution of audio products. The consideration received for
the disposal of shares was A$54,257. A loss on disposal of A$872 was incurred on the disposal of these shares. (b)Disposal
                                         of subsidiaries  During
the year ended December 31, 2018, the Group sold 5 subsidiaries. The detail of the sale and the resulting net gain on disposal
of subsidiaries are set out below: 2018A$
    
    2017A$Total
    disposal consideration
    
    206,034
    
    -Carrying
    amount of net liabilities sold (note (i) below)
    
    483,021
    
    -Gain
    on sale before income tax and reclassification of foreign currency translation reserve
    
    689,055
    
    -Reclassification
    of foreign currency translation reserve
    
    (38,640)
    
    -Non-controlling
    interest
    
    (41,420)
    
    -Income
    tax expense on gain
    
    -
    
    -Gain
    on sale after income tax
    
    608,995
    
    -   (i)
       Net liabilities sold: 2018
        A$
    
    2017A$Plant
    and equipment
    
    190,593
    
    -Development
    projects
    
    120,715
    
    -Cash
    and bank balances
    
    215,528
    
    -Inventories
    
    550,906
    
    -Trade
    and others receivable
    
    179,276
    
    -Trade
    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 2018
        A$
    
    2017A$Consideration
    received, satisfied in cash
    
    206,034
    
    -Cash
    and bank balances disposed of
    
    (215,528)
    
    -Net
    cash outflow
    
    (9,494)
    
    -   F-29    NOTE
28. ISSUED CAPITAL (a)
Share Capital December
    31, 2018
    
    December
    31, 2017
    
    December
    31, 2016Number
    of shares
    
    A$
    
    Number
    of shares
    
    A$
    
    Number
    of shares
    
    A$Ordinary
    Shares fully paid
    
    3,377,386
    
    18,902,029
    
    2,643,611
    
    10,410,279
    
    2,643,611*
    
    10,410,279 *
The above number of shares in 2016 have been adjusted for the 30-for-1 reverse stock split effective on May 8, 2017. (b)
Movements in ordinary share capital Number
    of Shares
    
    A$December
    31, 2015 and January 1, 2016
    
    79,301,852
    
    10,410,279Issue
    of shares during the year
    
    -
    
    -December
    31, 2016 and 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
    
    25,275
    
    491,750Issue
    of shares for conversion of debt
    
    708,500
    
    8,000,000December
    31, 2018
    
    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 USD14.45 (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. (c)
Options on issue There
were no share options issued and outstanding during and at the end of the financial year. 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)Other
                                         reserves represent reserve on equity component of convertible bonds of A$535,948 (Note
                                         24) and the capital injection by non-controlling interest of A$3,528,287. (i)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
                                         (HKD15,000,000). 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 for 100% to 95%, and the corresponding reserve is A$1,718,689. (ii)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 for 100% to 80%,
                                         and the reserve is A$2,704,452.   F-30    NOTE
30. COMMITMENTS (a)Non-cancellable
                                         operating leases The
Group has entered into commercial leases for rental accommodation and certain items of plant and equipment. The lease terms ranged
from one year to three years. ConsolidatedDecember
    31, 2018
    
    December
    31, 2017A$
    
    A$Committed
    at the reporting date but not recognized as liabilities, which are payable:-Within
    one year
    
    585,988
    
    273,784-Two
    to five years
    
    747,272
    
    285,7691,333,260
    
    559,553 (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, 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. (c)Capital
                                         commitments As
of December 31, 2018, the Group had internal capital commitments for the investments in one P.R.C. subsidiary of RMB5,478,051
(approximately A$1,129,000) (2017: A$5,045,000). On January 8, 2019, the Group has determined to make additional internal capital
commitments for the same subsidiary of RMB10 million (approximately A$2,060,307). 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 is Dr. Herbert Ying Chiu LEE, who monitors the Group’s risks on an ongoing basis and
report 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 obligation under finance lease), 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.   F-31    NOTE
31. FINANCIAL RISK MANAGEMENT (Continued) (b)
       Interest rate risk management (Continued) 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$6,724 lower (2017: A$898 lower) / A$6,724 higher
(2017: A$898 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
        rateA$
    
    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
    
    -
    
    814,365Obligation
    under finance lease
    
    2.5%
    
    57,292
    
    -
    
    57,292Convertible
    bonds
    
    32.15%
    
    3,280,744
    
    -
    
    3,280,744Provisions
    
    
    
    -
    
    54,320
    
    54,320Total
    Financial Liabilities
    
    
    
    5,219,684
    
    2,820,730
    
    8,040,414   Weighted
    average effective interest rate
    
    Floating
        interest
        rateA$
    
    Non-interest
    bearingA$
    
    TotalA$2017Financial
    AssetsCash
    and bank balances
    
    0.23%
    
    1,654,659
    
    1,205,355
    
    2,860,014Trade
    and other receivables
    
    
    
    -
    
    3,379,829
    
    3,379,829Other
    assets
    
    
    
    -
    
    199,391
    
    199,391Total
    Financial Assets
    
    
    
    1,654,659
    
    4,784,576
    
    6,439,235Financial
    LiabilitiesTrade
    and other payables
    
    
    
    -
    
    664,461
    
    664,461Trade
    deposits received
    
    
    
    -
    
    7,939
    
    7,939Amount
    due to ultimate holding company
    3.07%
    
    15,268,241
    
    -
    
    15,268 ,241Bank
    overdraft
    
    3.07%
    
    784,942
    
    -
    
    789,942Bank
    borrowings
    
    3.07%
    
    819,450
    
    -
    
    819,450Obligation
    under finance lease
    
    4.87%
    
    67,472
    
    -
    
    67,472Provisions
    
    
    
    -
    
    49,166
    
    49,166Total
    Financial Liabilities
    
    
    
    16,940,105
    
    721,566
    
    17,666,671   F-32    NOTE
31. FINANCIAL RISK MANAGEMENT (Continued) (c)
       Foreign currency risk The
Group has net assets denominated in certain foreign currencies as at December 31, 2018. 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, HKD 0.18097, USD 1.41739 and RMB 0.20606:  Short
    term exposure
    
    Long
    term exposureHKD
    
    USD
    
    RMB
    
    HKD
    
    USD
    
    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)
    
    -
    
    -- Obligation under finance lease
    
    (18,123)
    
    -
    
    -
    
    (39,169)
    
    -
    
    -Total
    exposure
    
    (1,904,932)
    
    25,674
    
    947,378
    
    (3,446,008)
    
    -
    
    - Cash
and cash equivalents are exposed to foreign currency risk in a higher extent. Short
    term exposure
    
    Long
    term exposureHKD
    
    USD
    
    RMB
    
    HKD
    
    USD
    
    RMBDecember
    31, 2017Financial
    assets-
    Cash and bank balances
    
    1,219,072
    
    41,218
    
    1,590,859
    
    -
    
    -
    
    --
    Trade and other receivables
    
    965,855
    
    3
    
    2,413,971
    
    -
    
    -
    
    -- Other assets
    
    86,750
    
    -
    
    108,760
    
    -
    
    -
    
    -Financial
    liabilities-
    Trade and other liabilities
    
    (281,281)
    
    (53,495)
    
    (254,860)
    
    -
    
    -
    
    -- Trade deposit received
    
    (7,939)
    
    -
    
    -
    
    -
    
    -
    
    --
    Amount due to ultimate holding company
    (147,140)
    
    -
    
    (9,839)
    
    (15,110,749)
    
    -
    
    -- Provisions
    
    (49,166)
    
    -
    
    -
    
    -
    
    -
    
    -- Bank overdraft
    
    (789,942)
    
    -
    
    -
    
    -
    
    -
    
    -- Borrowings
    
    (819,450)
    
    -
    
    -
    
    -
    
    -
    
    -- Obligation under finance lease
    
    (67,472)
    
    -
    
    -
    
    -
    
    -
    
    -Total
    exposure
    
    109,287
    
    (12,274)
    
    3,848,891
    
    (15,110,749)
    
    -
    
    - The
following table illustrates the sensitivity of profit / (loss) and equity in regards to the Group’s financial assets and
financial liabilities and the HKD/AUD exchange rate, USD/AUD exchange rate and RMB/AUD exchange rate and assure‘all other
things being equal’. It assumes a +/- 5% change of the AUD/HKD exchange rate for the year ended at December 31, 2018 (2017:
5%). A +/- 5% change is considered for the AUD/USD exchange rate (2017: 5%). A +/- 10% change is considered for the AUD/RMB exchange
rate (2017: 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 HKD by 5% (2017: 5%), the USD by 5% (2017: 5%) and the RMB by 10% (2017: 10%) respectively
then this would have had the following impact:  Profit
    / (Loss) for the year
    
    EquityHKD
    
    USD
    
    RMB
    
    Total
    
    HKD
    
    USD
    
    RMB
    
    TotalDecember
    31, 2018
    267,547
    
    (1,284)
    
    (96,738)
    
    171,525
    
    267,547
    
    (1,284)
    
    (96,738)
    
    171,525December
    31, 2017
    750,073
    
    614
    
    (384,889)
    
    365,798
    
    750,073
    
    614
    
    (384,889)
    
    365,798   F-33    NOTE
31. FINANCIAL RISK MANAGEMENT (Continued) (c)
       Foreign currency risk (Continued) If
the AUD had weakened against the HKD by 5% (2017: 5%), the USD by 5% (2017: 5%) and the RMB by 10% (2017: 10%) respectively then
this would have had the following impact:  Profit
    / (Loss) for the year
    
    EquityHKD
    
    USD
    
    RMB
    
    Total
    
    HKD
    
    USD
    
    RMB
    
    TotalDecember
    31, 2018
    (267,547)
    
    1,284
    
    94,738
    
    (171,525)
    
    (267,547)
    
    1,284
    
    94,738
    
    (171,525)December
    31, 2017
    (750,073)
    
    (614)
    
    384,889
    
    (365,798)
    
    (750,073)
    
    (614)
    
    384,889
    
    (365,798)  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.  2018
    
    
    Totalcontractual
    
    0
    - 30 daysCarrying
    
    undiscounted
    
    or
    on
    
    31
    - 90
    
    91
    -365
    
    Overamount
    
    cash
    flow
    
    demand
    
    days
    
    Days
    
    1
    year$
    
    $
    
    $
    
    $
    
    $
    
    $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
    
    -Obligation
    under finance lease
    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  2017
    
    
    Totalcontractual
    
    0
    - 30 daysCarrying
    
    undiscounted
    
    or
    on
    
    31
    - 90
    
    91
    -365
    
    Overamount
    
    cash
    flow
    
    demand
    
    days
    
    Days
    
    1
    year$
    
    $
    
    $
    
    $
    
    $
    
    $Trade
    and other liabilities
    664,461
    
    664,461
    
    664,461
    
    -
    
    -
    
    -Trade
    deposits received
    7,939
    
    7,939
    
    7,939
    
    -
    
    -
    
    -Amount
    due to ultimate holding company
    15,268,241
    
    15,779,510
    
    157,492
    
    -
    
    -
    
    15,622,018Bank
    overdraft
    789,942
    
    789,942
    
    789,942
    
    -
    
    -
    
    -Bank
    borrowings
    819,450
    
    833,554
    
    -
    
    -
    
    833,554
    
    -Obligation
    under finance lease
    67,472
    
    74,089
    
    1,543
    
    3,087
    
    13,892
    
    55,567Provisions
    49,166
    
    49,166
    
    49,166
    
    -
    
    -
    
    -17,666,671
    
    18,198,661
    
    1,670,543
    
    3,087
    
    847,446
    
    15,677,585   F-34    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
    
    Total$
    
    $
    
    $
    
    $Derivative
    financial instrumentsDecember
    31, 2018
    
    -
    
    -
    
    126,095
    
    126,095December
    31, 2017
    
    -
    
    -
    
    -
    
    - 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, 2018
    
    
    
    
    
    -Issuance
    of put option at fair value
    
    
    
    
    
    772,112Gains
    included in profit or loss
    
    
    
    
    
    (709,543)Foreign
    currency translation
    
    
    
    
    
    63,526At
    December 31, 2018
    
    
    
    
    
    126,095 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-35    NOTE
32. RELATED PARTIES (a)Parent
                                         and ultimate controlling party On
September 30, 2015, the Company issued 869,369 ordinary shares on a post-reverse split basis to acquire 100% equity interests
in Marvel Digital Limited from Marvel Finance Limited, which is a company controlled and wholly owned by Dr. Herbert Ying Chiu
LEE. During the year, on December 12, 2018 the shareholders of the Company approved the settlement of A$8,000,000 debt owed to
MFL by the issuance of 708,500 shares in the Company. As at December 31, 2018 and 2017, MFL owns 2,201,412 and 1,492,912 shares
respectively, representing approximately 65.18% and 56.74% respectively, in the Company and is the ultimate controlling party
of the Group. (b)(b)	Transactions
                                         with directors During
the years ended December 31, 2018, 2017 and 2016, the remuneration of Directors of the Company is as follows: CompanyDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Short
    term benefits
    
    67,371
    
    66,000
    
    49,000Post-employment
    benefits
    
    -
    
    -
    
    -Total
    
    67,371
    
    66,000
    
    49,000 (c)Other
                                         related party transactions During
the years ended December 31, 2018, 2017 and 2016, the Group has following material transactions with its related parties: ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Revenue
    received from related parties (1)
    
    41,291
    
    2,070,866
    
    1,297,556Service
    fees paid to a related party (1)
    
    595,645
    
    16,895
    
    12,919Purchase
    of products from related parties (1)
    
    -
    
    85,242
    
    57,759Interest
    charged by the ultimate holding company (1)
    
    396,868
    
    61,066
    
    72,421Company
    Secretarial and service fees paid to related parties (2)
    
    -
    
    5,250
    
    27,500Company
    Secretarial, taxation service and interim CFO fee paid to a related company (3)
    
    117,663
    
    31,538
    
    -Purchase
    of plant and equipment from related parties (1)
    
    512,561
    
    -
    
    - (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, Company Secretary, is a partner of the company. 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 30 September 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 1 December 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. (d)Amounts
                                         due from / to related companies Other
than the related party balances disclosed in Note 20 and 21, the other related party balances as of December 31, 2018 and 2017
are disclosed: (i)trade
                                         and other receivables in Note 13, there were amounts of A$15,407 and A$ Nil (2017: A$1,002,058
                                         and A$756,585) which are trade and non-trade in nature respectively and were due from
                                         certain related companies in which Dr. Herbert Ying Chiu LEE has control. The amounts
                                         due from the related companies are unsecured, non- interest bearing and repayable on
                                         demand; (ii)included
                                         in trade and other liabilities in Note 18, there were amounts of A$ nil and A$ nil (2017:
                                         A$8,186 and A$ nil) which are trade and non-trade in nature respectively and were due
                                         to certain related companies in which Dr. Herbert Ying Chiu LEE has control. The amounts
                                         due to the related companies are unsecured, non-interest bearing and repayable on demand;
                                         and (iii)the
                                         Group had outstanding invoices owing to BDO Administration (SA) Pty Ltd totaling A$20,000
                                         (2017: A$2,500). George Yatzis, Company Secretary of IMTE is a director of BDO Administration
                                         (SA) Pty Ltd.   F-36    NOTE
33. CASH FLOW INFORMATION ConsolidatedDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$CASH
    FLOWS FROM CHANGES IN WORKING CAPITAL(Increase)
    / Decrease in assets:Trade
    and other receivables
    
    (1,526,651)
    
    5,132,064
    
    (7,590,963)Inventories
    
    (151,883)
    
    37,360
    
    (1,209,655)Other
    assets
    
    (400,034)
    
    885,469
    
    (1,420,951)Disposal
    of intangible assets
    
    -
    
    -
    
    265,095Development
    projects
    
    -
    
    68,360
    
    -Increase
    / (Decrease) in liabilities:Trade
    and other liabilities
    
    488,490
    
    (770,205)
    
    1,205,218Trade
    deposits received
    
    -
    
    (82,390)
    
    (221,191)Provisions
    
    29
    
    20,603
    
    2,157Obligations
    under finance lease
    
    (6,115)
    
    -
    
    -NET
    CASH INFLOWS / (OUTFLOWS) FROM CHANGES IN WORKING CAPITAL
    
    (1,596,164)
    
    5,291,261
    
    (8,970,290)  Reconciliation
of liabilities arising from financing activities   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
    balanceas 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
    movementIssue
    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 the 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
    balanceas at 31 December 2018
    
    2,130,368
    
    814,365
    
    172,773
    
    57,292
    
    3,280,744
    
    126,095
    
    -
    
    6,581,637    Amount
    due to ultimate holding company
    
    Bank
    borrowings, net
    
    TotalA$
    
    A$
    
    A$Beginning
    balance as at 1 January 2017
    
    2,382,707
    
    447,250
    
    2,829,957Cash
    flows from financing activities
    
    (2,003,277)
    
    423,725
    
    (1,579,552)Non-cash
    movementDeferred
    performance fee recognition
    
    15,110,749
    
    -
    
    15,110,749Foreign
    exchange movement
    
    (221,938)
    
    (51,525)
    
    (273,463)Ending
    balance as at 31 December 2017
    
    15,268,241
    
    819,450
    
    16,087,691   Amount
    due to ultimate holding company
    
    Bank
    borrowings, net
    
    TotalA$
    
    A$
    
    A$Beginning balance as at 1 January 2016
    
    3,570,839
    
    -
    
    3,570,839Cash flows from financing activities
    
    (891,957)
    
    447,250
    
    (444,707)Non-cash movementOther changes
    
    (245,417)
    
    -
    
    (245,417)Foreign
    exchange movement
    
    (50,758)
    
    -
    
    (50,758)Ending balance as at 31 December 2016
    
    2,382,707
    
    447,250
    
    2,829,957   F-37    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, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Short-term
    employee benefits
    
    673,284
    
    464,339
    
    573,477Post-employment
    benefits
    
    10,794
    
    9,265
    
    10,569Total
    
    684,078
    
    473,604
    
    584,046  (b)
       Loans to Key Management Personnel and their related parties Save
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
influences 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, 20, 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-38    NOTE
35. PARENT ENTITY INFORMATION (UNAUDITED) Set
out below is the supplementary information about the parent entity.  Statement
    of Comprehensive IncomeCompanyDecember
    31, 2018A$
    
    December
    31, 2017A$
    
    December
    31, 2016A$Loss
    after income tax
    
    3,926,487
    
    486,715
    
    303,505Other
    comprehensive income
    
    -
    
    -
    
    -Total
    comprehensive loss
    
    3,926,487
    
    486,715
    
    303,505  Statement
of Financial Position  CompanyDecember
    31, 2018
    
    December
    31, 2017A$
    
    A$Total
    non-current assets
    
    20,327,732
    
    5,217,752Total
    current assets
    
    57,810
    
    3,319,257Total
    assets
    
    20,385,542
    
    8,537,009Total
    current liabilities
    
    7,313,720
    
    30,450Total
    liabilities
    
    7,313,720
    
    30,450Total
    assets less liabilities
    
    13,071,822
    
    8,506,559EquityIssued
    capital
    
    18,902,029
    
    10,410,279Accumulated
    losses
    
    (5,830,207)
    
    (1,903,720)Total
    equity
    
    13,071,822
    
    8,506,559 Guarantees
entered into by the parent entity in relation to the debts of its subsidiary The
parent entity is not party to a deed of cross guarantee with any of its subsidiaries.  Contingent
liabilities The
parent entity had no contingent liabilities as at December 31, 2018 and December 31, 2017.  Capital
commitments – property, plant and equipment The
parent entity has no capital commitments for property, plant and equipment as at December 31, 2018 and December 31, 2017.  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-39    Note
36. PRIOR YEAR ADJUSTMENTS 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  Save
as disclosed below, there is no other matter or circumstance arisen since December 31, 2018, 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)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.  NOTE
38. COMPANY DETAILS The
registered office and principal place of business is: Level
7, 420 King William Street Adelaide
SA 5000     F-40    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)
    Share Sale and Purchase
    Agreement for the purchase of 100% in Conco International Co. Limited between Jeffrey Chang Ming-Yih and IMT dated December
    22, 20144.3(1)
    Shareholder Agreement
    between Conco International Co., Limited and Kaijuyuan Technology Co., Limited to establish a joint venture company (now known
    as Global Vantage Audio Limited) dated May 8, 20154.4(1)
    Consulting Agreement
    between IMT and BDO Partnership SA Pty Limited for the provision of Company Secretarial services dated November 6, 20154.5(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, 20184.6(3)
    Form F3 Registration
    Statement filed on October 9, 2018. The F3 became effective on October 19, 20184.7*
    Subscription agreement between IMTE and Marvel Finance Limited dated October 13, 20184.8*
    Distribution agreement between IMTE and Teko International Limited dated April 29, 20194.9*
    Directors agreement between IMTE and Wuhua Zhang dated August 10, 20184.10*
    Directors agreement between IMTE and Lawrence Chen dated November 29, 20188.1*
    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 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.*
    Incorporated herein.    89     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/    Dr. Herbert
    Ying Chiu LeeBy:
                                       Dr. Herbert Ying Chiu Lee
        Title:
        Executive Chairman and Chief Executive Officer    Date:
May 14, 2019     90