Operational and Funding HighlightsCaldwell Bailey
ICR, Inc.
[email protected] Matt Dallas
ICR, Inc.
[email protected] Nick Albrow
Wilkinson Butler
[email protected] ABN 37 136 258 574December 31,(Deficit)No cash taxes were paid during the half-year ended December 31, 2023 or the half-year ended December 31, 2022.  
b)   Going concernConsulting fees4.   Grant revenueIn order to encourage the industry to invest more in R&D, the Australian government offers a tax incentive that reduces the Company’s R&D costs by offering tax offsets for eligible R&D expenditure. Under the R&D Tax Incentive, Vast is eligible to receive a refundable R&D tax offset in respect of its eligible R&D expenditure.5.   Expenses^{(December 31,(In thousands of AU Dollars)(In thousands of US Dollars)Convertible Notes 3, 4 and 5 issued by Vast were subjected to the same terms, which are as follows:December 31,December 31,Neptune Merger Sub, Inc.SubsidiaryUnited States0%100%  The capital contribution reserve represents the modification adjustment from loan from shareholder and convertible note issued to AgCentral Energy Pty Ltd (Noteholder). The Noteholder agreed to changes to the terms and conditions, which included interest waivers and term extensions as outlined in Note 11 – Borrowings, in their capacity as the shareholder of the entity. The gains arising as a result of the changes to the terms and conditions were therefore recognised directly in equity as a contribution in their capacity as owner. Modification adjustments presented are never reclassified to profit or loss. The balance in the reserve was derecognised against Issued Capital upon the consummation of the BCA and derecognition of the convertible notes.
15.   Accumulated losses16.   Financial Instruments – Fair values and financial risk managementVolatility: 25% (2022: not applicable)Volatility: 40% (2022: not applicable)Volatility: not applicable (2022: 40%)Reconciliation of level 3 fair valuesForeign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not Vast’s functional currency i.e. AUD.Vast’s exposure to credit risk is influenced mainly by the individual characteristics of each customer which are primarily government organisation and joint operator. Vast applies IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. Management believes that Vast’s overall exposure to credit risk from Trade receivables to be not material.Vast held cash and cash equivalents of $16.5 million and $2.1 million as of December 31, 2023 and June 30, 2023, respectively. The cash and cash equivalents are held with bank and financial institution counterparties, which are rated AA- based on Standard and Poor’s ratings. Management believes that Vast’s overall exposure to credit risk from cash and cash equivalents to be not material.Level 7, Suite 02, 124 Walker Street
North Sydney
NSW 2060(c)   the exchange of all outstanding NETC Warrants into an equal number of Vast Warrants, with substantially the same terms;
(d)   the entry into various agreements with CAG, under which CAG committed to invest $7.0 million of PIPE Financing. CAG and Vast agreed that this commitment would be satisfied by CAG’s purchase of Class A common stock of NETC from existing NETC stockholders who previously elected to redeem their shares in connection with the SPAC Merger and whose redemption election would be reversed. The $7.0 million included in Cash has been reflected in Issued Capital of Vast upon consummation of the BCA;
(e)   the issuance of 171,569 Ordinary Shares to Guggenheim Securities as consideration for its services. A resulting loss of $0.3 million upon consummation of the BCA has been recorded within share based listing expenses;
(f)   the issuance of 1.5 million Ordinary Shares as Accelerated Earnback Shares pursuant to the Nabors Backstop Agreement and issuance of 350,000 Ordinary Shares as Incremental Funding Commitment Fee pursuant to the October Notes Subscription Agreement.
(g)   During the Earnout Period, Vast may issue up to an aggregate of 2.4 million additional Ordinary Shares to NETC Sponsor in three equal tranches and up to an aggregate of 1.3 million Ordinary Shares to Legacy Vast shareholders in three equal tranches, upon the occurrence of each Triggering Event. Refer to note 14 – Reserves for further details.
(h)   Additionally, Vast may also issue 1.5 million Ordinary Shares to Legacy Vast shareholders upon receiving a notice to proceed under a contract for the procurement of a concentrated solar power plant at Port Augusta, in South Australia. Refer to note 14 – Reserves for further information.b)   SubsidiariesNeptune Merger Sub, Inc.SubsidiaryUnited States0%100%(
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