Highlights

• During FY22, Skin Elements (ASX:SKN) advanced the distribution agreement and product expansion for SuprCuvr.
• The company raised AU$2.1 million through a placement.
• The company’s net assets increased by about AU$449K.

Skin Elements (ASX:SKN), a natural and organic skincare company, has published its annual report for the financial year ending 30 June 2022. The company has spent the last two decades designing, formulating, and testing all-natural, organic, health and wellness products.

Skin Elements’ products are marketed under the brands SKN Shield, SKN Protect, SKN Activs, and SKN Cosmetics.

Major company highlights

The following are the major company highlights for FY22:

1.  Progressing SuprCuvr –  SuprCuvr is a TGA-registered hospital-grade disinfectant of Skin Elements with 99.99999% effectiveness against COVID-19 and other germs. During the financial year, the company made distribution agreements for SuprCuvr with Pacific Health Care Pty Ltd for Australia and New Zealand. Furthermore, the company has progressed in other distribution opportunities in New Zealand and Hong Kong. It is also expanding the product range of SuprCuvr by offering new products at different prices.
2. The company’s Soleo Organics High-Performance Coconut Sunscreen and Face Moisturising Sunscreen making it as finalists in the Clean Beauty Awards for 2022.
3. Appointing Mr Lee Christensen’s to the board as a non‑executive director.
4. Receiving approval and payment from AusIndustry for the 2021 research and development (R&D) rebate of AU$989K; recognising AU$984K R&D rebate for the R&D expenditure invested in the 12 months to 30 June 2022.
5. Raising AU$2.1 million through a placement.
6. Entering an equity funding facility agreement with LDA Capital, as per which the latter will provide up to AU$20 million in committed equity capital over the next 3 years.

Financial highlights

1. The company’s revenue from ordinary activities increased by around AU$1.1 million.
2. The company’s net assets increased by about AU$449K.

Outlook

Skin Elements has laid out the following operations and business strategies for the near term:

1. Over the next 21 months, the company expects to place equity and receive up to AU$20 million in committed equity capital under the equity funding facility with LDA Capital.
2. The company plans to take on future capital raising through an entitlement issue and will be considering other equity and debt proposals.
3. The company will continue to focus on developing and commercialising its natural antimicrobial technology.