John, if you can hear me.
Just hi. I can hear you.
Yes.
Sorry, is there a bit of an echo or are you guys all right?
No, there is a serious echo.
I have just switched my volume on, so if you wouldn't mind just raising a hand or something in the software, or interrupting me, I have just got to reduce the echo that way. I will launch into the presentation and then I will give you guys back a chance when we get to the questions section. I will give you a quick update. You should be seeing the slides now. We will just start the slide presentation. That is just the agenda, which is the same as we usually have. We have got a few formats to go through. I will provide you with the presentation.
We will have a little question and answer session, and then we will get to the resolutions of the meeting. First off, the meeting is held by virtual attendance, and the voting is by poll. We are going based on written voting sheets. If you haven't submitted through MUFG, you are welcome to still send me a proxy form by 4:00 P.M. today if you did want to participate in the voting. I guess just before we get going, Casey apologizes, so I am flying solo today. Bruce, unfortunately, is in an area where he has been struggling to get onto the call, so he has made his apologies as well. It will just be me today. I guess this is just a review on the Sorry, I am not doing well with the technology today. Just go back there. There we go. Just the results for March 2026.
We didn't have great income because we used to keep our deposits in term deposits, and we didn't do that for 2026 because we were anticipating quite a large sale with a company that was interested in the jute bags. Which would have been quite a large order. We kept all of our cash in the credit, so that is the reason for the interest decline. The outsourced manufacturing fee, that was fully discounted in 2026. It was mostly discounted in 2025 as well, but it is fully discounted 2026. It is also going forward. It is discounted all the way through to March 2028. Admin expenses were pretty much in line with the previous years, but we had higher audit fees, and we had some savings in travel costs and in audit fees. Small saving overall.
No impairment expenses for 2026 because that all related to the trade for Pathoglaze. We didn't have any additional expenditure for those because all of that has been registered now. There were no changes in the number of shares on issue. Probably the main things to discuss is that we have financial support coming from Mr. Ee, because obviously we have been spending quite a lot of money on commercializing Pathoglaze. Now cash reserves are limited. We entered into a loan agreement with EliteSoft Asia, and that is a company that is controlled by Mr. Ee, a majority shareholder and who is also the chairman. That facility is NZD 250,000 at interest rate of 5%. We can increase that to NZD 1 million that is available. We do need to come here to shareholders for approval before we can actually engage and increase that loan facility value.
Mr. Ee's also confirmed that he'll provide finance to the company, if required to meet its capital obligations, and that's all through for 12 months, so through to 30 June 2027. To conserve cash, the directors are currently deferring payment of directors fees and management fees. We started doing that for six. The outsourcing plant, that is in Malaysia. You can see, again like I mentioned, the management fee already that it's been discounted. The main thing probably to update you on is just the plant itself was in Malaysia, and we've had to move it because the building where it was in couldn't hold it anymore. They've been in the process of moving it to Singapore. Part of the logic for moving to Singapore as well is that the large customer that we think we'll get around the jute bags is also based from Singapore.
That's currently where we think the customer base will be. But the equipment is currently in storage, and we have quite a lot of product that was made previously, so there's quite a lot of the compound that's still available if we need it to meet sales. In the interim, until the plant is set up again, the support for product development and any small orders we might get that needs any special formulations can be done from the licensed facilities that's also in Singapore. Because of the close collaboration with the licensor and the inventor, they've agreed to waive all of the performance targets that we actually had in that license agreement. I think to be fair, it's taking much longer for us to get these sales going than we expected. Sorry, I'm not quite sure why my sharing has dropped away there. Sorry, everyone.
Just go back there. Okay. Most of the work last year was around the Pathoglaze, the jute bags. That's going to be used for shipping coffee beans and cocoa beans. Any other specific trials we'll do, like I said, will be done at the inventor and inventor's facilities in Singapore. We've also been looking, because this has taken so long, but the East actually gave us quite a few different other options that we are exploring and really look at. We've done that over the last few months to see if there are some other opportunities for us to bring into the business. We also have been approached by a couple of other interesting businesses interested in bringing their businesses into Iperion, and we're looking at those as well. Okay, that is where we are at now.
I'm just going to try and put the sound on again. Actually, if you wouldn't mind, I might just go through to the resolutions, and then I'll try and sort out the volume on the other side so we don't get everybody on the echoes, and that'll give you an opportunity for the questions. I guess first, just the resolutions. First resolution is just my reappointment, just by rotation. Stock exchange rules in accordance with our constitution. You can see that's been passed by 100% in favor, and that's representing 78% of the issued capital. The second resolution was the reappointment of KC. That's similarly, it's 100% favor of that resolution, representing 78% of shares. The third resolution is for the auditor's audit fees, which we do try our best to keep down because that's a major expense.
And that is 99% in favor of the votes that we have received there. Okay. All right. I have got some information on Pathoglaze slides as well. We can go through that if you like, but I will also be putting the presentation onto the stock exchange probably immediately after the meeting. Then you can have a read through that at your leisure there. So, okay. Let us just see if I can get the volume on again, and we can have a conversation. Okay. I will just open the floor if anybody has any questions.
Hello.
Hello.
Hi, John.
Okay, guys, I do apologize for the quality of the sound presentation, but hopefully you have found that all right. Okay, any questions or things you would like me to provide a little more information on? Like I said, most of you are on mute, so you just need to unmute yourself, please.
John, is there a hard copy of the presentation? I have missed it.
A copy of the presentation will be put onto the NZX immediately after this meeting. So if you can just give me five minutes after the call, I will put it on there.
I am getting-
It has a few-- it has everything I showed, and it has on the back a few additional slides with the Pathoglaze information.
Yeah, sorry. I am getting terrible feedback on this connection.
If there are any other questions, you are very welcome to email me as well, on the email address, which is in the notice of meeting. It is just a john.cilliers@iperion.co.nz.
John.
Sorry, anybody else with a question? You can also use the chat on the screen. At the bottom of the screen is the chat if you would like to post me a message. Okay. It doesn't look like we've got any questions.
John, can you hear me?
Oh, I can hear you now. Sorry, Jimmy, is that you talking?
Can you hear me? It's Bob speaking.
Yes, I can.
Oh, sorry. I had trouble. I'm getting bad feedback on everything you say.
Sorry, the echo is really terrible on it, and I'm not quite sure how to get rid of it. If you'll give me one minute, we'll quickly try something. Okay, does that work?
All right, that is better. Yeah. Can you hear me, John?
Sorry, everyone. Is that better? Stopped getting echo.
Well, to be frank, the whole presentation, I missed it really because of echo and disconnect. So, we need to get the documentation. Maybe I can email you or something.
Please do email me. Like I said, I will be putting it on the NZX.
Yeah, problem, John, even what you said just then doesn't make a lot of sense because it's all full of feedback and echo.
Sorry, I don't know where the echo's coming from.
Is it consistent with all the people that are there? How many-
We had about eight, nine people on the call.
Yeah.
What I might do is I'm just going to mute everybody and then maybe just unmute yourself, please, if you wanted to talk.
Well, I've just connected through with my browser again to see if that makes any difference.
That has made the difference. Looks like the echo's gone now.
Really?
Yep.
Is everyone. What for everybody?
It's definitely stopped from my side.
Okay.
Okay.
Did you have the echo before I connected in on the iPhone?
I'm not sure, Bob.
Well, as I said, I couldn't get in and I've missed everything.
Okay.
Now that I'm not getting echo from you, just a matter of getting Did you say that you can email these slides and everything that you use?
Yes. I'll be putting the presentation onto the stock exchange. Now, if that echoed all the way through for everybody, because I put my sound off in case the echo was coming from here-
Yeah.
I'm happy to quickly run through it again. I'm not sure if you guys would like me to do that.
Oh, I'd like you to.
Or if you followed okay, all right?
I mean, very quickly. You don't need, just be succinct and just-
Yeah.
-make your points.
I'll quickly run through. I'll give you the abridged version seeing as you had the slides already. Just Okay. So it was just the formalities. Just a quick review. So what I said was we didn't have interest income because we didn't have our cash in term deposits because we were anticipating quite a large order on that jute bags, which we're still waiting for at the moment, and it's still a possible sale for us.
All right.
For that reason, we have kept the cash liquid, and we did not get any term deposit interest. The outsourced plant, fully discounted, so we did not have any expenses on that, and also we will not have any until March 28th. Okay. The admin expenses, we have had savings in travel costs and in audit fees, but we had higher costs in the stock exchange.
All right.
That's pushed things up a bit. No impairment expenses because that related just to the registration of the trademarks, so that's done. There were no more costs on that.
All right.
Okay. We've got the loan agreement with Mr. Ee for NZD 250,000 just via EliteSoft, and we can increase that to NZD 1 million, but to have a loan that size, we need to come back to shareholders for approval. Once we need to increase that, we will come back to shareholders, and we'll have a special resolution for that. Mr. Ee has confirmed financial support for the company if we need that in the next 12 months. To help to save cash flow, we're not getting 50% of the Director's fees and management fees paid, so we've been doing that since January 2026 just to stretch out our cash. That outsourced manufacturing plant, that's in the process of being moved to Singapore, so all the equipment's in storage at the moment.
We have enough compound already made, so we can actually fulfill even if we get that really big order on the jute bags, because those will be big orders if that happens. We've got enough-
So you've actually.
-compound to meet that.
Got an You're referring to an order. Have you actually got an order?
No, we don't. We've just been working with It's a large, it's actually a chocolate manufacturer t hat we've been-
Oh, yeah, about the bags.
-working in collaboration with these bags.
Yeah.
Now, the opportunity's still there, but look, I've got no idea if it's going to come through. I'm guessing at the moment they're doing their own internal trials and stuff because we made quite a few bags for them. So we've got some photos of the bags where they've been trialing it because they've been putting hooks into it and different things. So that can still happen, but it's an unknown.
Is that the only irons in the fire, so to speak?
No, we're still getting inquiries. But again, every one is kind of unique depending on what people want to use the product for. They all seem to be taking quite a long time. Activity's a little bit lower, I'd say, than we previously had.
Okay.
But we need to just push it ahead a little bit. I still think our biggest opportunity for a sale is still around the jute bags at the moment.
Yeah.
All right.
I think just, again, because things are taking longer, the licensors agreed to waive those performance targets that we had, so they're fully waived. We had some customer and sales targets as part of the licensing agreement. That's been waived now.
Yeah. Right.
So I think that's kind of what I said, most of the work's been focused on that jute bag last year, and we're still doing some trials. We're looking at quite a lot of different other products. Mr. Ee's got quite a range of businesses that he's involved with, so we've been exploring some of those to see whether we can bring some of that into Iperion as well. We have been approached by a couple of other companies looking at whether they can bring their business into the company as well. So there are things that we're looking at to see if we can bring something else and it'll move a little bit faster than the Pathoglaze and actually get us business.
Okay. Right, that was it. It was just the resolutions which, by the proxies we've received, they've all passed, so with the required majority, just this reappointment of myself, Casey, and the auditor's fee.
The auditing.
Yeah. Okay. The slides, I will just quickly flick through them, but these are just the product slides, just telling you a little bit more about Pathoglaze. That is the picture of the jute bags that we had. Then sort of just a little bit more information on the product. Like I said, I will put this onto the stock exchange immediately after this meeting. All right.
Yep, all right. Thank you, John.
Yep. Okay. No worries. Oh, it stopped sharing. Okay. All right. A little bit without the echo. All right, cool. Any other questions? All right. Well, in that case, thank you, everybody. I really appreciate your patience with that echo. That was terrible. I will know for next time that we do not get that again. Yeah, thank you very much for attending. Really appreciate it.
Thanks, John. Cheers.
Thank you. Bye, everyone.