ADALTA LIMITED — Annual Report 2016

Aug 30, 2016

Appendix 4E Preliminary Final Report

Appendix 4E

Preliminary Final Report to the Australian Securities Exchange

Part 1

Part 1
Name of Entity	AdAlta Limited
ABN	92 120 332 925
Financial Year Ended	30 June 2016
Previous Corresponding Reporting Period	12 months ended 30 June 2015

Part 2 – Results for Announcement to the Market

	$’000	Percentage increase /(decrease) over previous corresponding period
Revenue from ordinary activities	746	%
Loss from ordinary activities after tax attributable to members	(1,163)	%
Net loss attributable to members	(1,163)	%

Dividends(distributions)	Amountper security	Amountper security	Franked amountper security
Final Dividend	Nil		Nil
Interim Dividend	Nil		Nil
Record date for determining entitlements to the dividends(if any)		Not Applicable

Brief explanation of any of the figures reported above necessary to enable the figures to be understood:

AdAlta Limited

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Appendix 4E Preliminary Final Report

Part 3 – Contents of ASX Appendix 4E

SECTION	CONTENTS
Part 1	Details of entity, reporting period
Part 2	Results for announcement to the market
Part 3	Contents of ASX Appendix 4E
Part 4	Consolidated statement of comprehensive income
Part 5	Consolidated accumulated losses
Part 6	Consolidated statement of financial position
Part 7	Consolidated statement of cash flows
Part 8	Basis of preparation
Part 9	Loss from ordinary activities
Part 10	Commentary on results
Part 11	Notes to the consolidated statement of cash flows
Part 12	Details relating to dividends
Part 13	Loss per share
Part 14	Net tangible assets per security
Part 15	Details of entities over which control has been gained or lost
Part 16	Details of associates and joint venture entities
Part 17	Issued securities
Part 18	Segment information
Part 19	Subsequent events
Part 20	Information on audit or review

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Appendix 4E Preliminary Final Report

Part 4 – Consolidated Statement of Profit or Loss and Comprehensive Income

Part Revenue Interest received Other revenue 9(a) Expenses Cost of services Depreciation and amortization Employee benefits expense Travel expense Board fees Patent and legal costs Other expenses from ordinary activities 9(b) Loss before income tax expense Income tax expense Loss after income tax for the year Other comprehensive income Other comprehensive income for the year, net of tax Total comprehensive loss attributable to members of AdAlta Limited	Year Ended 30 June 2016 $ 8,902 738,046 (1,413,975) (684) (224,620) (57,127) (50,000) (44,556) (119,042) (1,910,004) (1,163,056) - (1,163,056) - - (1,163,056)	Year Ended 30 June 2015 $ 12,828 887,553 (1,712,080) (723) (203,007) (47,728) (52,032) (83,837) (108,842)
		(2,208,249) (1,307,868) -
		(1,307,868) -
		-
		(1,307,868)

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Appendix 4E Preliminary Final Report

Part 5 – Consolidated Accumulated losses

Accumulated losses at the beginning of the year Loss for the year Accumulated losses at the end of the year	Year Ended 30 June 2016 $ (5,823,295) (1,163,056) (6,986,351)	Year Ended 30 June 2015 $ (4,515,427) (1,307,868)
		(5,823,295)

Part 6 – Consolidated Statement of Financial Position

Part 6 – Consolidated Statement of Financial Position	Part 6 – Consolidated Statement of Financial Position	Part 6 – Consolidated Statement of Financial Position
30 June 2016 30 June 2015 $ $ ASSETS Current Assets Cash and cash equivalents 485,558 34,864 Trade and other receivables 897,247 931,241 Total Current Assets 1,382,805 966,105 Non-Current Assets Plant and equipment 282 966 Total Non-Current Assets 282 966 Total Assets 1,383,087 967,071 LIABILITIES Current Liabilities Trade and other payables 178,797 232,649 Provisions 36,402 28,532 Total Current Liabilities 215,199 261,181 Total Liabilities 215,199 261,181 NET ASSETS/(LIABILITIES) 1,167,888 705,890 EQUITY Issued capital 8,150,331 6,525,277 Reserves 3,908 3,908 Accumulated losses (6,986,351) (5,823,295) TOTAL EQUITY 1,167,888 705,890
	30 June 2016 $ 485,558 897,247 1,382,805 282 282 1,383,087 178,797 36,402 215,199 215,199 1,167,888 8,150,331 3,908 (6,986,351) 1,167,888	30 June 2015 $ 34,864 931,241
		966,105
		966
		966
		967,071
		232,649 28,532
		261,181
		261,181
		705,890
		6,525,277 3,908 (5,823,295)
		705,890

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Appendix 4E Preliminary Final Report

Part 7 – Consolidated Statement of Cash Flows

Cash flows from operating activities Receipts from customers Payments to suppliers and employees R&D tax offset refund received Interest received Net cash (used in) operating activities Cash flows from financing activities Proceeds from convertible notes Proceeds from issue of shares Net cash provided by financing activities Net (decrease)/increase in cash held Cash at the beginning of the financial year Cash at the end of the financial year	Year Ended 30 June 2016 $ - (2,061,656) 878,394 8,902 (1,174,360) 1,625,000 54 1,625,054 450,694 34,864 485,558	Year Ended 30 June 2015 $ 23,158 (2,224,366) 805,942 12,828
		(1,382,438)
		1,035,000 -
		1,035,000
		(347,438) 382,302
		34,864

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Appendix 4E Preliminary Final Report

Part 8 – Basis of Preparation

This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.

Part 9 – Loss from Ordinary Activities

The loss from ordinary activities before income tax includes the following items of revenue and expense: REVENUES AND EXPENSES (a) Other revenue Contract expense Research and development tax incentive Grant income (b) Other expenses Audit Accounting Travel Marketing Subscriptions Other	Year Ended 30 June 2016 $ - 738,046 - 738,046 16,434 19,150 16,214 34,437 16,434 16,373 (119,042)	Year Ended 30 June 2015 $ (374) 878,395 9,532
		887,553
		5,400 17,100 34,839 37,086 1,080 13,337
		(108,842)

Part 10 – Commentary on Results

The loss of the Company for the year ended 30 June 2016, after accounting for income tax benefit, amounted to ($1,163,056) (30 June 2015: ($1,307,868)). The year ended 30 June 2016 operating results are attributed to the following material items:

• Research and Development rebate: $738,046 (30 June 2015: $887,553);

• Cost of services $1,413,975 (30 June 2015: $1,712,080); and

• Employment benefit expense ($224,620) (30 June 2015: ($203,007)).

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Appendix 4E Preliminary Final Report

Part 11 – Notes to the Consolidated Statement of Cash Flows

	(a) Reconciliation of cash: For the purposes of the Statement of Cashflows, cash includes cash on hand, and in banks, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the Balance Sheet as follows: Cash and cash equivalents Cash on hand and at bank (b) Reconciliation of loss for the year to net cash flows from operating activities: Loss for the year Non-cash flows in loss: Depreciation Changes in assets and liabilities: Increase in trade and other receivables Increase/(Decrease) in trade and other payables Increase in provisions Net cash outflows from operating activities	Year Ended 30 June 2016 $ 485,558 485,558 (1,163,056) 684 33,994 (53,852) 7,870 (1,174,360)	Year Ended 30 June 2015 $ 34,864
			34,864
			(1,307,868) 723 (49,528) (31,690) 5,925
			(1,382,438)

Part 12 – Details Relating to Dividends

Part 12 – Details Relating to Dividends
Date the dividend is payable	N/A
Record date to determine entitlement to the dividend	N/A
Amount per security	N/A
Total dividend	N/A
Amount per security of foreign sourced dividend or distribution	N/A
Details of any dividend reinvestment plans in operation	N/A
The last date for receipt of an election notice for participation in any dividend reinvestment plans	N/A

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Appendix 4E Preliminary Final Report

Part 13 – Loss per Share

art 13 – Loss per Share
	Consolidated
	Year Ended	Year Ended
	30 June 2016	30 June 2015
Basic (loss) per share	(32.5 cents)	(63 cents)
Weighted average number of ordinary shares used in the
calculation of basic (loss) per share	3,574,174	2,065,000
As the Company is in a loss position there is no diluted earnings
per share calculated.

Part 14 – Net Tangible Assets per Security

	30	June	2016	30	June 2015
Net tangible asset backing per ordinary security (cents)		9.4			34.2

Part 15 – Details of Entities Over Which Control has been Gained or Lost

ost
Name of entity	Nil
Date deregistered	Nil
Contribution of the controlled entity (or group of entities) to the profit/(loss) from ordinary activities during the period, from the date ofgainingor losingcontrol	Nil
Profit (loss) from ordinary activities of the controlled entity (or group of entities) for the whole of the previous corresponding period	Nil
Contribution to consolidated profit/(loss) from ordinary activities from sale of interest leading to loss of control	Nil

Part 16 – Details of Associates and Joint Venture Entities

	OwnershipInterest	OwnershipInterest	Contribution to netprofit/(loss)	Contribution to netprofit/(loss)
Name of entity	30/06/16 %	30/06/15 %	Year ended 30/06/16 $A’000	Year ended 30/06/15 $A’000
	N/A	N/A	N/A	N/A
Associate	N/A	N/A	N/A	N/A
Joint Venture Entities	N/A	N/A	N/A	N/A
Aggregate Share of Losses	N/A	N/A	N/A	N/A

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Appendix 4E Preliminary Final Report

Part 17 – Issued Securities

art 17 – Issued Securities
	30 June 2016	30 June 2015
	$	$
Share capital
12,418,223 (30 June 2015: 2,065,000) fully paid ordinary
shares	2,490,333	2,490,279
2,999,998 (30 June 2015: 2,999,998) series A preference
shares	2,999,998	2,999,998
2,660,000 (30 June 2015: 1,035,000) convertible notes 2,660,000		1,035,000
The following movements in issued capital occurred during the period:
	Year Ended	Year Ended
	30 June 2016	30 June 2015
	Number of	Number of
	Shares	Shares
Fully paid ordinary shares:
At beginning of the reporting period	2,065,000	2,065,000
Issue of shares	10,353,223	-
At end of the reporting period	12,418,223	2,065,000
Series A preference shares:
At beginning of the reporting period	2,999,998	2,999,998
At end of the reporting period	2,999,998	2,999,998
Convertible notes:
At beginning of the reporting period	1,035,000	-
Mezzanine Finance	1,625,000	1,035,000
At end of the reporting period	2,660,000	1,035,000
Options
The following options to subscribe for ordinary fully paid shares are outstanding		at balance date:
Number of shares	Exercise price of	Expiry date
under option Class of shares	option	of options
252,057 Ordinary	$0.17* 27 September 2016
145,976 Ordinary	$0.17*	1 July2018
20,569 Ordinary	$0.17* 21 September 2018
381,018 Ordinary	$0.17* 1 November 2018
291,953 Ordinary	$0.17*	1 July2019
818,378 Ordinary	$0.17* 1 November 2019
234,472 Ordinary	$0.17 1 November 2020
*50% of 1,909,951 Options have an exercise price of $0.0002 if exercised within 3 months of vesting, and with
the exercise price of the remaining 50% of those options being $0.09 if exercised within 12 months of vesting.
Otherwise the exerciseprice is$0.17.

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Appendix 4E Preliminary Final Report

Part 18 – Segment Information

The Company has identified its operating segments based on the internal reports that are used by the Board (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The Board as a whole will regularly review the identified segments in order to allocate resources to the segment and to assess its performance.

The Board considers that the Company has only operated in one segment.

Part 19 – Subsequent Events

On 8 July 2016, the Company lodged a prospectus with ASIC for the offer of 32,000,000 and up to 40,000,000 ordinary fully paid shares at a price of $0.25 per share to raise a minimum of $8,000,000 and a maximum of $10,000,000. On 17 August 2016, the Prospectus closed over-subscribed. The Company was admitted to the official list of the ASX on 22 August 2016.

On 11 August 2016, the Company’s convertible notes and preference shares converted to ordinary shares.

Apart from the above, there were no other significant events subsequent to year ended 30 June 2016 and prior to the date of this report that have not been dealt with elsewhere in this report.

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Appendix 4E Preliminary Final Report

Part 20 – Audit/Review Status

This report is based on accounts to which one of (Tick one)	This report is based on accounts to which one of (Tick one)	the following applies:
The accounts have been audited		The accounts have been subject to review
The accounts are in the process of being audited or subject to review		The accounts have not yet been audited or reviewed
If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification: Not applicable
If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification: Not applicable

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