ADALTA LIMITED — Interim / Quarterly Report 2017

Aug 20, 2017

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 2017
Previous Corresponding Reporting Period	12 months ended 30 June 2016

Part 2 – Results for Announcement to the Market

	2017 $	2016 $	Increase/ (Decrease) $	Change %
Revenue from ordinary activities	1,967,680	746,948	1,220,732	163%
Loss from ordinary activities after tax attributable to members	(2,832,517)	(1,163,056)	(1,669,461)	‐144%
Net loss attributable to members	(2,832,517)	(1,163,056)	(1,669,461)	‐144%

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:

Not Applicable

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

AdAlta Limited

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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 2017 $ 170,926 1,796,754 (3,598,678) (5,435) (404,669) (76,575) (207,037) (73,310) (434,493) (2,832,517) (2,832,517) ‐ (2,832,517) ‐ ‐ (2,832,517)	Year Ended 30 June 2016 $ 8,902 738,046 (1,413,975) (684) (224,620) (57,127) (50,000) (44,556) (119,042)
		(1,163,056) (1,163,056) ‐
		(1,163,056) ‐
		‐
		(1,163,056)

AdAlta Limited

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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 2017 $ (6,986,351) (2,832,517) (9,818,868)	Year Ended 30 June 2016 $ (5,823,295) (1,163,056)
		(6,986,351)

Part 6 – Consolidated Statement of Financial Position

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON‐CURRENT ASSETS Plant and equipment Other non‐current assets TOTAL NON‐CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings (accumulated losses) TOTAL EQUITY	Year Ended 30 June 2017 $ 6,224,617 1,862,673 8,087,290 ‐ 2,600 2,600 8,089,890 285,915 58,597 344,512 344,512 7,745,378 17,560,338 3,908 (9,818,868) 7,745,378	Year Ended 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

AdAlta Limited

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Appendix 4E Preliminary Final Report

Part 7 – Consolidated Statement of Cash Flows

Cash flows from operating activities Payments to suppliers and employees R & D tax incentive Interest received Grants received Net cash provided by (used in) operating activities Cash flows from investing activities Proceeds from disposal of property, plant and equipment Payments for property, plant and equipment Payments for other assets Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from convertible notes Proceeds from share capital Proceeds from option conversions Payment of share issue costs Net cash provided by financing activities Net increase (decrease) in cash held Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year	Year Ended 30 June 2017 $ (4,632,076) 738,046 147,483 19,724 (3,726,823) 1,000 (6,745) (2,600) (8,345) ‐ 10,000,000 58,984 (584,757) 9,474,227 5,739,059 485,558 6,224,617	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

AdAlta Limited

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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 Research and development tax incentive Grant income (b) Other expenses Audit Accounting Marketing Subscriptions Other	Year Ended 30 June 2017 $ 1,777,030 19,724 1,796,754 29,092 61,925 145,135 30,902 167,439 (434,493)	Year Ended 30 June 2016 $ 738,046 ‐
		738,046
		16,434 19,150 34,437 16,434 32,587
		(119,042)

Part 10 – Commentary on Results

The Company reported a loss for the year ended 30 June 2017, after accounting for income tax benefit, of ($2,832,517) (30 June 2016: ($1,163,056)). The year ended 30 June 2017 operating results are attributed to the following:

• Research and Development tax incentive refund: $1,777,030 (30 June 2016: $738,046);

• Cost of services expense of $3,598,678 (30 June 2016: $1,413,975); and

• Employment benefit expense of $404,669 (30 June 2016: $224,620).

AdAlta Limited

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Appendix 4E Preliminary Final Report

Part 11 – Notes to the Consolidated Statement of Cash Flows

Reconciliation of Cash Cash at the end of financial year as included in the statement of cash flows is reconciled to the related items in the statement of financial position as follows Cheque account Cash reserve account Savings ‐ bonus Term Deposit Reconciliation of cash flow from operations with profit after income tax Loss attributable to members Non‐cash flows in loss: Depreciation Changes in assets and liabilities: Loss on sale of plant and equipment Prior year receivables classified as capital (Increase) / decrease in receivables Increase / (decrease) in payables Increase / (decrease) in provisions Net cash provided by (used in) operating activities	Year Ended 30 June 2017 $ 20,189 275,009 929,419 5,000,000 6,224,617 (2,832,517) 5,435 592 (65,220) (965,426) 107,118 23,195 (3,726,823)	Year Ended 30 June 2016 $ 8,632 455,822 21,104 ‐
		485,558
		(1,163,056) 684 ‐ ‐ 33,994 (53,852) 7,870
		(1,174,360)

AdAlta Limited

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Appendix 4E Preliminary Final Report

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

AdAlta Limited

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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 2017	30 June 2016
Basic (loss) per share	(3.15 cents)	(32.59 cents)
Weighted average number of ordinary shares used in the calculation of basic (loss) per share	90,035,620	3,574,154
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	2017	30	June	2016
Net tangible asset backing per ordinary security (cents)		8.0			9.4

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	30/06/17 %	30/06/16 %	Year ended 30/06/17 $A’000	Year ended 30/06/16 $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

AdAlta Limited

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Appendix 4E Preliminary Final Report

Part 17 – Issued Securities

Part 17 – Issued Securities
	Year Ended	Year Ended
	30 June 2017	30 June 2016
ISSUED CAPITAL
Fully paid ordinary shares	17,560,338	2,490,333
Fully paid Series A Preference shares	‐	2,999,998
Fully paid convertible notes	‐	2,660,000
	17,560,338	8,150,331
Ordinary Shares	No.	No.
At beginning of reporting period	12,418,223	2,065,000
Issued on exercise of options	1,110,874	53,500
Issued as part of share split	‐	10,299,723
Issue of ordinary shares	40,000,000	‐
Conversion of Preference Shares	21,594,477	‐
Conversion of Convertible Notes	25,987,316	‐
At the end of the reporting period	101,110,890	12,418,223
Series A Preference Shares	No.	No.
At beginning of reporting period	2,999,998	2,999,998
Conversion to Ordinary Shares	(2,999,998)	‐
At the end of the reporting period	‐	2,999,998
The conversion ratio for each Preference Share was adjusted as provided in		the relevant
subscription agreement and for the Share Split. Accordingly, 2,999,998 Preference Shares
converted to 21,594,477 Ordinary Shares.
Convertible Notes	No.	No.
At beginning of reporting period	2,660,000	1,035,000
Mezzanine Finance	‐	1,625,000
Conversion to Ordinary Shares	(2,660,000)	‐
At the end of the reporting period	‐	2,660,000

Convertible Notes	No. No.
At beginning of reporting period	2,660,000 1,035,000
Mezzanine Finance	‐ 1,625,000
Conversion to Ordinary Shares	(2,660,000) ‐
At the end of the reporting period	‐ 2,660,000
All Convertible Notes (which were issued	at a price of $1.00) converted to 25,987,316
Ordinary Shares (based on the terms of the relevant Convertible Note deed and the effect
of the Share Split).
Options
The following options to subscribe for ordinary fully paid shares are outstanding at
balance date:
Number of shares Class of shares	Exercise price of option Expiry date of options
under option
145,976 Ordinary	$0.17* 1July2018
20,569 Ordinary	$0.17* 21September2018
73,272 Ordinary	$0.17* 1November2018
129,913 Ordinary	$0.17* 1July2019
365,225 Ordinary	$0.17* 1November2019
234,472 Ordinary	$0.17 1November2020
*50% of 734,955 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 exercise price is $0.17.

AdAlta Limited

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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 7 August 2017, the Company received a Research and Development tax incentive refund of $1,077,030 for the 2016/2017 financial year.

Otherwise, there has not been any matter or circumstance that has arisen subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.

AdAlta Limited

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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

AdAlta Limited

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