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Anteo Diagnostics Limited – Annual Report 2015

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Anteo Diagnostics 2015 Annual Report

Chairman’s Report

Anteo Diagnostics: at the tipping point

Dear Shareholders,

I am pleased to present Anteo Diagnostics’ annual report for 2015 that covers what has been an important period both for Anteo and the markets in which we operate.

IVD markets surge, driven by ageing, need, cost improvements and point of care

During the year, we continued to focus on delivering growth through our primary In Vitro Diagnostics (IVD) market, the largest of the medtech subsectors, and one which is tipped to be worth $70 billion by 2017[1] .

This growth in the IVD subsector, which was estimated to be worth $50 billion in 2012, is being driven by a number of macro factors, including a burgeoning ageing population; the push to deliver test results sooner, more accurately, and cheaper; increased capacity in emerging markets to pay for tests which were previously cost-prohibitive (such as India, where more than 100 million malarial tests are now run per year), as well as the trend towards a Point of Care testing model that allows patients to be tested at home or in medical practices, rather than in hospitals. Additionally, there is a trend towards miniaturisation driven by a desire to use less blood.

Mix&Go provides an ideal solution

Pleasingly for Anteo, our Mix&Go nanoglue technology directly supports the needs created by these market forces. In house and third party projects have repeatedly shown that inclusion of Mix&Go consistently enables tests that can be developed faster and are either less expensive to manufacture, or have greater specificity or sensitivity than incumbent tests.

In fact, Mix&Go is unique in its ability to work on just about any surface in a laboratory situation and deliver improved results for customers. The smaller the surface area on which a diagnostic test is based, the more value Mix&Go delivers, which supports the case for Point of Care testing, where diagnostic tools are typically smaller and cost reduction is an important commercial driver.

Reaching a tipping point with customers

Among the considerable highlights from the year, which CEO Geoff Cumming will cover in his report, was one recent instance where a customer returned to Anteo after trying to solve a problem independently for their novel diagnostic technology. We learnt that the customer had been working with a recognised group, using conventional approaches, for two years unsuccessfully, and after three weeks of consulting with Anteo, the problem was solved using a Mix&Go based solution.

It is this sort of success coupled with industry trends that is moving Anteo to a tipping point in its lifecycle. Where previously, the team was knocking on doors to introduce the product concept, customers are now seeking out our products, IP and know-how. We are also increasingly being asked for exclusive arrangements as a means to blocking competitors from accessing the Mix&Go technology. This sector is increasingly looking to adopt new technology to gain a competitive advantage. While there is still much to be done to capitalise on the full value of what Mix&Go can bring to market, all these encouraging signals make this a pivotal time for Anteo.

The life sciences area is our other primary market and will be the first to deliver on the potential of the Mix&Go nanoglue technology. Due to the reduced regulatory barriers in this market, excellent revenue opportunities can be achieved with the right distribution strategies.

1 !Source:!Results!Healthcare,!Medical!Technologies,!what’s!hot!and!key!trends!in!2013:! http://www.resultshealthcare.com/media/105652/medtech_2013.pdf

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An ever-increasing number of publications are appearing in the form of scientific papers and posters which summarise findings of customers who have used Mix&Go, a valuable outcome given the life sciences and IVD markets rely on peer review when considering the adoption of new technologies.

Enhancing value through focused contribution to secondary markets

The versatility and need for our nanoglue technology has created three secondary areas of business, each driven by customer need: bioseparations, medical devices and batteries. Each of these areas provide Anteo with the opportunity to extend our IP portfolio and provide solutions to challenging problems for industries where the existing approaches are inadequate or could be improved.

In April, Anteo announced that a patent filing in the area of bioseparations, a process important to the growing immunoassay market, which is expected to be valued at $19.1 billion in 2018. The patent centred on what is now an unmet clinical need: currently ~10 billion immunoassays run each year in the world are susceptible to sample-specific interference that can result in erroneous test results and unfavourable patient outcomes.

Our patent centres around the provision of an automatable and effective sample pre-treatment that mitigates interference without impacting laboratory workflow or changing the sample composition.

Given the size of the immunoassay market and the health and financial impact of incorrect results, the Mix&Go-based serum depletion patent has the potential to change the way immunoassays are performed across the world. So far, feedback on the concept has been strong, and we are progressing this opportunity by creating a consortium of stakeholders across the entire value chain.

Another major intellectual property development has been the application of Anteo’s nanoglue to improving the performance of lithium ion batteries. Initial data has been promising, and we have recently recruited a second scientist to further explore the future potential for the product concept.

DIAsource and Anteo: The sum is greater than the parts

Under our strategy to explore synergistic assets, and following a targeted search, Anteo has now announced its intention to acquire Belgian diagnostics company, DIAsource Immunoassays SA.

Following the completion of a robust due diligence process, the Board formed the view that the Anteo / DIAsource combination would be game changing for Anteo and its shareholders, and would deliver a strong set of benefits to both companies.

Not only is the combined group expected to move Anteo Diagnostics to a cash flow positive position, it delivers a truly global presence, with strong European representation and sales in 75 countries, through which both DIAsource’s existing range and Anteo’s Mix&Go products can be sold. The transaction also brings a world-class manufacturing facility to the asset register, fully FDA and ISO 13485 (IVD) certified, which will enable Anteo to act as contract manufacturer, where required by our customers.

With a strong balance sheet and an excellent team of diagnostic experts, DIAsource is already a sound investment, moreover the revenue improvements that can be achieved through further exploitation of DIAsource’s product families and inclusion of Mix&Go on a global level makes the acquisition even more attractive for Anteo.

At our AGM in October, Anteo shareholders will be asked to vote to approve the financing requirements necessary to complete the transaction. Along with my fellow Directors, I recommend that shareholders review the material available and support this transaction, which I believe will be transformative for our company. I look forward to speaking with shareholders on the day, and thank you in advance for your consideration.

Yours sincerely, Mark Bouris, Chairman

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Anteo Diagnostics 2015 Annual Report

CEO’s Report

A significant year in the company’s history

Dear Fellow Shareholder,

I am pleased to report on the progress that Anteo Diagnostics has made during the 2015 financial year, a year which has been filled with a number of notable highlights.

Pursuing strategic growth

Earlier in the year, we introduced the concept that any task or project conducted by the Anteo team would need to contribute to one or more of the Company’s five core strategic growth areas in order to be considered an appropriate fit. The five areas of growth were defined as being:

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While we explore each of these areas in detail in the Operating and Financial Review Report Review section of this report, it is noteworthy that the five growth areas have led Anteo to crystallise our approach to revenue generating activities, and positioning the Company for future growth.

Mix&Go, consulting and product revenue on the slow rise – positioned for rapid growth

Previously, to assist with early adoption, product was regularly provided for trial purposes free of charge. This year, with increased acceptance of Mix&Go, we were able to bill both for product, and for access to our people to ensure our customers had better success when trialling Mix&Go. The team has established an admirable reputation for its capability and expertise as assay developers across many testing platforms. This capability is valued by our customer-base, who sees Anteo’s skillsets as important for their development activities.

The DIAsource transaction is expected to not only transform Anteo’s bottom line, moving the Company to a cash flow positive position, but it will also provide the opportunity to accelerate the broader use of Mix&Go through the DIAsource distribution network.

Transitioning to growth

This year, as well as progressing on many of the projects and relationships built last year, the Anteo team worked hard to capitalise on the acceptance of Mix&Go in key markets, extend our intellectual property position and grow our revenue streams.

The Company’s business and its technology has become increasingly de-risked throughout the year. This has been the result of a collection of core activities, one of which has been working with third party reference labs to complete evaluation studies using clinical samples where the performance of “Mix&Go” assays is compared with the performance of incumbent assays by independent laboratories. The encouraging results that we’ve seen to date are important for larger, risk averse customers who need to be assured incorporating Mix&Go materials can be achieved easily and the

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Anteo Diagnostics 2015 Annual Report

results are clinically valid. This work is now an invaluable component of our business development process.

Consolidation of Anteo team

At the time of last year’s report, we had spent some time building up the operational team and broadening our customer scope beyond diagnostics with the change of name of our operational subsidiary from Bio-Layer to Anteo Technologies. The addition of VP of Scientific Affairs, Josh Soldo with a proven track record building business relationships and implementing technology in the IVD market has added another dimension to our team.

Across the management and operational teams, we now have an excellent set of skills, and an engaged, enthusiastic, innovative team which has built robust business foundations. Along with the Board, our team members are focused on pushing Anteo into its revenue generating phase. With this team, I believe we have a prosperous outlook and the ability to drive Anteo's presence further into our key markets.

A business like Anteo is the sum of all parts, and my sincere thanks must go to the Anteo team and my fellow Directors for all the effort that has gone into strengthening the business during the year.

DIAsource acquisition – a game changer

While our Chairman, Mark Bouris also discussed the DIAsource acquisition in his introduction, I feel it important here to reinforce the positive nature of this transaction.

This is a transformative amalgamation. Bringing DIAsource into the Anteo group takes us from having a very regional presence to one with a true global footprint.

Acquiring DIAsource will also place Anteo on the radar of institutional investors who have a watching brief on revenue generating medical technology companies. This is an important step for a company that has historically had little institutional coverage.

In the Operati ng and Financial Review Report , we discuss DIAsource in more detail, and highlight the benefits we expect both parties will draw from the relationship, however I echo Mark’s sentiments and urge shareholders to read all the available material on DIAsource prior to the AGM in October, so as to be fully informed ahead of the meeting, when Anteo shareholders will be asked to vote to approve the capital requirements necessary to complete the transaction.

Sincere thanks to all our shareholders for the loyal support shown during the year. I also look forward to speaking with you at the AGM, and to reporting on a very different Anteo in next year’s annual report.

Dr Geoff Cumming, CEO

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Anteo Diagnostics 2015 Annual Report

Operating and Financial Review Report

Key announcements

Date	Announcement	Status
25 Aug 2014	Patent Cooperation Treaty Filed – Conjugating Molecules to Particles	Lead to the 21 April 2015 announcement under which Anteo announced it had filed a new patent controlling multi-functional activity on a surface.
27 Aug 2014	Anteo agreement with an undisclosed global healthcare company extended, referred to as POC1	In April it was disclosed that Anteo had signed a new agreement with POC1, following an 18 month feasibility study. Under the new agreement, Anteo is using its Mix&Go IP to more holistically improve the performance characteristics of POC1’s handheld immunoassay analyser.
19 Dec 2014	AMG™ Activation Kit for Multiplex Microspheres released to market	Anteo continues to drive product development using the Mix&Go core technology. The AMG™ Activation Kit for Multiplex Microspheres (focused on Luminex® systems) has been met with great reception.
22 Dec 2014	Anteo and USA based IMRA Enter into Agreement	The feasibility study was finished and proof of concept was demonstrated with excellent results. The two parties have now taken the collaboration to the next stage and entered into a funded Product Development Agreement.
24 Feb 2015	New bioseparations patent for sample pre-treatment filed	Anteo presented at the American Association for Clinical Chemistry conference. A key opinion leader in the field has confirmed urgent commercial need for a product that eliminates interference in clinical samples and offered his assistance to pursue the opportunity with Anteo.
10 Mar 2015	Exclusive distribution partnership with Veritas Corporation, Japan	Both companies are working proactively to meet commercialisation targets in Japan and are in discussions to scope and develop opportunities with several Japanese IVD companies.
25 Mar 2015	Funded feasibility study with Cook Australia involving Mix&Go technology	Cook is the largest private medical device manufacturer in the world. The in-vivo diagnostic project with Cook is progressing well and Anteo expects to be able to report on progress in early 2016
1 April 2015	New agreement that expands R&D program with undisclosed global healthcare company.	The collaboration with our partner is delivering encouraging results and we have received positive feedback following feasibility work undertaken by an IVD customer.
7 April 2015	Luminex endorses benefits of using Anteo Mix&Go™ (AMG) Activation Kit for Multiplex Microspheres on the Luminex xMAP® platform.	This product is gaining considerable interest from Luminex assay developers looking for a competitive advantage.
14 April 2015	Launch of funded in-vivo research partnership with Australian Institute for Bioengineering and Nanotechnology (AIBN) at The University of Queensland.	This in-vivo research partnership is progressing well with positive initial data demonstrating compatibility with in-vivo applications.
21 April 2015	Filing of new patent in the energy sector together with formation of Anteo Energy Pty Ltd.	The initial data warranted more in depth research and assessment of opportunities for Anteo nanoglue technology in the energy sector. Anteo Energy Pty Ltd was formed to carry this activity forward.
6 May 2015	Launch of new product - AMG™ Coupling Kit, 200 nm Magnetic Particles to market.	Since its release in May, the 200 nm Magnetic Particle kit has delivered extremely positive outcomes. This product is gaining considerable interest, especially in the Point of Care sector.
26 May 2015	$1 million placement for the development of Anteo’s nanoglue technology in the battery sector.	This non-core opportunity is being advanced in a measured manner, while the business remains focused on progressing core revenue building projects.

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Operating and Financial Review Report

Financial results

The net consolidated operating loss of the economic entity for the financial year, after providing for income tax, amounted to $4,220,342 compared with a loss for the 2014 year of $2,492,150. Revenue from sales increased 50% to $0.465 million during the year , which is another step forward growing revenue from Mix&Go sales, royalties and consulting services. We received less from the Commercialisation Australia Grant $649,740, (2014 $836,200) because the grant completed at the end of March. The R&D Tax incentive was also lower, $1,087,247 (2014 $1,203,659) , as a result of timing impact of the grant. In future years we expect the R&D Tax incentive to be more substantive. The impact on profit of these items was $302,872. This year we reported $547,121 in non-cash share based payments (2014 $185,225) an impact of $361,896. The vast majority of the cost was expensing of options allotted to directors at the Annual General meeting in 2014. Following the placement at the end of 2013 we have increased our technical and transactional capability to better drive all business activities and push to profitability. This worthwhile investment is reflected in the increase in Research and Development Costs $3,116,891 (2014 $2,845,651), Selling & Distribution $1,780,711 (2014 $1,426,041).The following paragraphs provide you with an understanding of how this valuable investment is unfolding.

Progressing our five strategic growth areas

The report summarises the key highlights recorded under each of the five growth areas.

Exploiting existing IP

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An important change instigated in 2014 was the creation of AMG product kits, which combined our intellectual property with our know-how. We found that it was important to provide customers with off the shelf products to help them have a fail-safe, positive experience and get the best out of Mix&Go. This evolution in approach has freed up Anteo resources, and has been instrumental in reducing barriers to success that had previously been contributing to slower than expected uptake of Anteo’s Mix&Go technology.

These bundled products can be further leveraged to expand Anteo’s capabilities and create bespoke products where we partner with manufacturers, assay developers and other parties to increase supply and licensing deals across product value chains.

For example, the AMG Coupling Kit, 200 nm Magnetic Particle product is being used to demonstrate the effectiveness of Mix&Go in one of its numerous market applications; lateral flow. Anteo is working with magnetic bead manufacturers to develop a range of Mix&Go activated magnetic beads and we are also working directly with lateral flow assay developers to develop better assays for IVD manufacturers. This illustrates one approach in using a simple product to allow others to utilise the Mix&Go advantage. As a result, the market is provided with a patient solution incorporating Mix&Go within the point of care tool – such as a disposable pregnancy test. Consequently, using pregnancy

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Anteo Diagnostics 2015 Annual Report

testing as an example, it can be illustrated how widely Mix&Go can be applied across the lateral flow industry providing accumulating advantages throughout. In the above example we have:

Incorporated Anteo’s know-how
Utilised Anteo’s IP
Generated an ongoing revenue stream through either royalties or a supply agreement
Created value along the complete value chain from consultancy to consumer

Expanding core competencies and IP

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Our!core IP and capabilities lie in the area of developing nanometre thin “glues”.!The initial area of application was the in!vitro!diagnostics and related life-science areas. These glues have commercial benefit broadly where biological materials, such as antibodies, are bound to synthetic materials. The benefits become increasingly significant as assay platforms become smaller and smaller. In this context, Anteo’s IP strategy, and the expansion of its core competencies sit with smaller and smaller devices where Mix&Go can give performance benefits that cannot be achieved using existing methodologies.

During FY15, Anteo broadened its capabilities such that Mix&Go can now be used in the healthcare market to improve almost any platform and surface. For scientists, Mix&Go can truly create “the surface you want on the surface you have”, meaning that where previously attaching laboratory samples to plastic, glass or nanoparticles was at best difficult, and at worst impossible, incorporating Mix&Go creates a workable surface, allowing the job to be done. This has been achieved through the development and formulation of an extensive library of Mix&Go variants to allow positive outcomes on all surfaces encountered to date.

Patent portfolio progress

In the context of building and implementing our IP strategy, Anteo continues to strengthen its IP base and as well, utilise its existing IP in commercial opportunities.

A patent application, Conjugating Molecules to Particles, will move to “national phase” this year. The application focuses on methods to form multi-functional nanoparticles, which is very difficult to achieve using conventional methods. Since filing, this method has been used with success in four different commercial opportunities. It is expected that this method will underpin many collaborative or contract research activities in PoC!opportunities where nanoparticles are used.

Another patent application, Heterofunctional Binding Systems, entered Patent Cooperation Treaty (PCT) stage in early 2015. This application discloses methods to coat more diverse materials, some of which are of importance for providing new solutions in PoC assays. This application has been successfully used in progressing four other commercial opportunities.

In February this year, a new patent application addressing pre-treatment strategies, useful for the IVD industry was filed. Work validating its commercial importance in generating data that is!not!biased!by! interfering!substances is currently in progress with an independent reference laboratory. There has been significant interest in this product concept and it was the subject of a poster, then presentation at the American Association for Clinical Chemistry conference, the world’s leading event for laboratory

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medicine, It covers approaches for clearing or depleting interfering substances from pathology samples, prior to analytical testing.

Apart from these patents, during the period, other work was also conducted to progress intellectual property activities across Anteo’s non-core areas discussed later.

Development of products

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On 19 December 2014, Anteo released the AMG™ Activation Kit for Multiplex Microspheres to market. This kit is for use with Luminex® particles, and was designed as an alternative to the traditional covalent coupling method. Reference laboratory testing underway has confirmed the ease of use, reproducibility and scalability attributes this kit delivers, solving known problems for Luminex system users.

In April, on the corporate blog, Luminex wrote about the benefits of using the Anteo Mix&Go™ (AMG) Activation Kit for Multiplex Microspheres on the Luminex xMAP® platform.

How the Anteo Mix&Go (AMG) Activation Kit for Multiplex Microspheres works

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On 6 May 2015, Anteo released the AMG™ Coupling Kit, 200 nm Magnetic Particles to market. While this kit has many uses, it is an excellent product to demonstrate Anteo’s Lateral Flow capabilities.

This new kit has been extremely well received and in addition to lateral flow, has been applied to a number of uses, including one with our customer, POC1, and another applied directly to Hepatitis B in serum. The diversity of applications for this kit is assisted by the fact that at 200 nm, very small particles can be easily handled and manipulated, further demonstrating Anteo’s strengths working with small surface areas.

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Exploring non-core opportunities

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In-vivo applications

Late in 2014 Anteo teamed up with Cook Medical Australia, a subsidiary of the world’s largest private medical device manufacturer, to conduct a feasibility study, applying Mix&Go technology in the development of medical devices for use inside people’s bodies ( in vivo ).

Since commencement of this project our technologies and capabilities to address new applications for our nanoglue have impressed our Cook colleagues. This project has the capability to deliver a new medical technology and provide Anteo with expansion into the in vivo medical devices sector a tangible market equally as significant as immunoassays. A number of additional projects are now in progress with Cook as a result of our initial positive interactions. The current projects are all in the feasibility stage of demonstrating that Mix&Go can provide targeted advantages to existing products. We expect that subsequent to successful completion of these projects, Anteo will be involved in supporting the further development and verification activities required.

In early April, we announced the launch of a research partnership with the Australian Institute for Bioengineering and Nanotechnology (AIBN) at The University of Queensland. The study is focused on the creation of dual labelled imaging agents using Mix&Go.

The partnership is important for two reasons: firstly, it is expected to deliver in vivo toxicity data as a first step towards utilising Mix&Go for high-value in vivo applications. Secondly, it further develops Anteo’s ongoing relationship with the AIBN, an important step in providing grass-roots researchers with access to our nanoglue technology for novel in vivo applications that Anteo would otherwise not be commercially ready to explore.

Anteo Energy project

Outside of the medical technology and life sciences space, an opportunity exists that has the potential to deliver innovations to the $30 billion lithium ion batteries market, a market which is expected to be worth $50 billion per annum by 2018.[2]

Initial data indicates that Anteo’s nanoglue can be easily implemented within the battery manufacturing process between the raw materials and electrode manufacturing stages to improve efficiencies in capacity, charging times and battery life.

We are progressing our investigation of this non-core opportunity in a measured manner, with the purpose of defining what commercial future exists at scale for this product.

2!Source:!Avicenne,!Roland!Berger,!October!2012;!Takeshita!2010!

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Acquisition of synergistic assets

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On 26 August we entered into an agreement to acquire 100% of the equity in global specialty diagnostics company, DIAsource ImmunoAssays, SA (Belgium). This is the culmination of a strategy that has been discussed with our shareholders over several years and the engagement of our US based advisors, Ferghana Partners.

The transaction will transition Anteo to a cash flow positive operation and will accelerate the commercialisation of our Mix&Go products. DIAsource generated revenue of €11.9m (A$18.0m) in CY14; €7.2m (A$10.9m) in the first half of 2015 (25% growth) and EBITDA of 20%. DIAsource recently booked its fifth consecutive growth quarter and fifth consecutive best quarter ever in the company’s history, thanks to growth in its Vitamin D portfolio and its established line of specialty RIA and ELISA assays.

The purchase price is €15.4m (A$23.3m) with an earn out of up to €7.3m (A$11.3m), subject to achievement of a number of financial targets, that would be payable in the first quarter of 2017. Completion will be in November 2015 and is subject to financing, regulatory approvals and other conditions that are typical for transactions of this nature.

DIASource comprises a vertically-integrated specialty diagnostics company that develops, manufactures, markets and distributes clinical diagnostic products in the fields of endocrinology, especially bone metabolism, fertility, cardiovascular and oncology.

DIASource is a truly international company that services customers in 75 countries worldwide and sells products both directly and through a global network of 90 distributors and 40 OEM partners.

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The Company has a highly flexible supply chain with fully IVD certified production facility to manufacture its complete catalogue of antibodies, ELISA and RIA assays as well as many on behalf of selected partners, including ThermoFisher Scientific.

The Company is headquartered on a 4,500 square metre site in Louvain-La-Neuve near Brussels where it combines offices and laboratories with a fully integrated manufacturing and storage facility.

Further information can be found at the DIASource website (http://www.diasource-diagnostics.com/).

A transformative acquisition

The acquisition of DIAsource is an important step in the staged global expansion strategy for Anteo. DIAsource has strong fundamentals including a 20% EBITDA margin over the last four quarters and the acquisition will underpin Anteo’s move towards an operating cash flow positive position with significant upside earnings potential.

The DIAsource team brings extensive industrial diagnostic experience that dovetails with Anteo’s capabilities and knowhow. In addition, they introduce an established network of research and commercial partners worldwide. They are geographically close to many of the customers that Anteo is currently pursuing and well acquainted with a number of parties with whom we are dealing.

DIAsource manufactures and distributes a broad catalogue of ELISA and RIA products for clinical diagnostics via established distribution and dealer networks worldwide. Included in the offering is a broad range of antibodies and laboratory instrumentation. DIAsource’s products are well suited to mid-tier and specialist laboratories. The large manufacturing capability will provide a platform to produce Anteo products at considerably greater scale. This was previously unattainable to Anteo without significant investment.

It is expected that the already impressive performance of DIAsource can be further improved through the introduction of Mix&Go. The power of Mix&Go, along with Anteo knowhow, to allow for the development of tests that are either more commercially valuable or less expensive to manufacture will strengthen the current position. The ability to demonstrate these commercial benefits, coupled with the distribution made possible through DIAsource, is expected to amplify the broader uptake of Mix&Go.

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Anteo Diagnostics Limited – Statutory Reports 2015

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CONSOLIDATED ENTITY

Financial Statements For The Year Ending 30 June 2015

Anteo Diagnostics

ABN: 75 070 028 625

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

STATUTORY REPORTS 30 JUNE 2015

*Contents*	*Page*	*Contents*	*Page*
Corporate Directory	1	Consolidated Statement of Cash Flows	14
Directors’ Report	2	Notes to the Financial Statements	15
Corporate Governance Statement	5	Directors’ Declaration	40
Remuneration Report	5	Auditor’s Independence Declaration	41
Consolidated Profit and Loss Statement	11	Independent Audit Report	42
Consolidated Statement of Financial Position	12	Additional ASX Information	44
Consolidated Statement of Changes in Equity	13

CORPORATE DIRECTORY

Directors	Mr Mark Bouris Non-Executive Chairman
	Dr Geoffrey Cumming CEO, Executive Director
	Mr Richard Martin CFO, Executive Director
	Mrs Sandra (Sam) Andersen Non-Executive Director
	Dr John Hurrell Non-Executive Director
Company Secretary	Mr Shane Hartwig
Registered Office	4/26 Brandl Street, Eight Mile Plains QLD 4113
Mailing Address	4/26 Brandl Street, Eight Mile Plains QLD 4113
E-mail	[email protected]
Website	www.anteodx.com
Legal Advisors	ClarkeKann Lawyers
	300 Queen Street, Brisbane QLD 4000
Auditors	Grant Thornton
	145 Ann Street, Brisbane QLD 4000
Patent Attorneys	Freehills Patent Attorneys
	101 Collins Street, Melbourne Victoria 3000
Share Registry	Boardroom Pty Limited
	Level 7, 207 Kent Street, Sydney NSW 2000
Insurance advisors	IC Frith & Associates
	Level 1, 175 Melbourne Street, South Brisbane QLD 4101
	Yellow Brick Road Wealth Management Pty Limited
	1 Chifley Square, SYDNEY, 2001
Bankers	Australia and New Zealand Banking Group Limited
	3 Sherwood Road, Toowong QLD 4066

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

Your Directors present their report on the Company and its controlled entity for the financial year ended 30 June 2015.

DIRECTORS

Persons holding the position of Directors at any time during or since the end of the year are:

Mr Mark Bouris Dr Geoffrey Cumming Mr Richard Martin Mrs Sandra Andersen Dr John Hurrell

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

The Directors of the Company at the date of this report are set out below, together with details of their qualifications, experience and interests in the Company.

Mr Mark Bouris BCom(UNSW), MCom(UNSW), Hon DBus(UNSW), Hon DLitt(UWS), F.S.A.

Chairman

In addition to his chairmanship with Anteo, Mark Bouris is the Executive Chairman of Yellow Brick Road Wealth Management and the Executive Chairman of global technology company TZ Limited. Mark is an Adjunct Professor at the University of New South Wales Australian School of Business and he sits on boards for the University of NSW Business Advisory Council and the University of Western Sydney Foundation Council. Mark holds a Bachelor and Master of Commerce from the University of New South Wales and has doctorates from the University of New South Wales and the University of Western Sydney. Mark is also a Fellow of the Institute of Chartered Accountants and the author of three business books, Wealth Wizard , The Yellow Brick Road to Your Financial Security , and What It Takes .

Responsibilities: Chairperson of Nomination & Remuneration Committee.

Interest in options: 5,000,000 (exercise price of 12 cents, expiry date of 24/10/2015; 5,000,000 (exercise price of 20 cents, expiry date of 10/11/2018 all vested)

Dr Geoffrey Cumming B.App.Sc, B.Sc.(Hons.), MBA, PhD, MAICD

Chief Executive Officer - Executive Director

Dr Cumming has over 20 years’ experience in the healthcare and biotechnology market. Geoff’s roles have progressed from pure research to sales and marketing roles through to Managing Director level – and Board seats. Previously Managing Director of Roche Diagnostic Systems Oceania Regional Centre, where he transformed a loss making business to one achieving over 30% compound annual growth over a four year period and the highest profitability levels in Roche’s global organisation. Geoff was also Managing Director and CEO of an Australian based biotechnology company commercialising a range of products in cancer diagnosis and treatment. During his tenure he was responsible for taking research from Sydney University through to product registration. This involved capital raising, managing Intellectual Property, investor relations and forging links with relevant international partners.

Dr Cumming has been a Director of Anteo since April 2009 and is a Non-Executive Director of ASX listed Medical Australia Limited.

Responsibilities: Chief Executive Officer of the Company

Interest in shares: 17,500,000 ordinary fully paid Interest in options: 6,000,000 (exercise price of 12 cents, expiry date of 31/10/2017; 1,500,000 of these options are vested and the remainder vest on an annual basis in the following ratio 25% and 50%.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

Mr Richard Martin BBus	Mr Richard Martin BBus	Executive Director
	Mr Martin holds a Bachelor of Business. He practised as a Chartered Accountant for 16 years, 11 as a partner in a medium sized Sydney practice. Mr Martin has been involved with the Company since it was founded by Dr Maeji. He has considerable experience both operationally and advising corporate entities, his work has included complex business structuring and financing, the establishment of international hotels from conception, public listing of companies, management of foreign currency exposure, establishing and operating start up technology companies and the negotiation and implementation on the purchase and sale of enterprises. Mr Martin is a former director of Boulder Steel Ltd. He has been a Director of Anteo since September 2005. Responsibilities: Chief Financial Officer; Member of the Audit & Risk Committee and Nomination & Remuneration Committee. Interest in shares: 1,400,000 ordinary fully paid Interest in options: 7,600,000 (1,600,000 exercise price of 12 cents, expiry date of 24/10/2015; 6,000,000 exercise price of 20 cents, expiry date of 10/11/2018;), all are vested.
Mrs Sandra (Sam) Andersen LLB, CPA, FFinsia, FAICD		Non-Executive Director
	Mrs Sandra (Sam) Andersen is a Certified Practicing Accountant, and holds a Bachelor of Laws. She is a Fellow of Finsia and the Australian Institute of Company Directors. Sam Andersen was appointed as a Director in May 2011 and is Chair of the Audit & Risk Committee. Mrs Andersen is a Director & Chair of the Risk Committee of Beyond Bank Australia, Member of the Board of Trustees and Chair of the Finance and Audit Committee for Melbourne Convention and Exhibition Trust, a Director of Australian Hearing Services, Chair of the Audit and Risk Committee for the Department of Premier and Cabinet Victoria and a Director and the Chair of the Audit & Risk Management Committee for Victrack. She began her career with a law degree and subsequently held senior executive positions with ANZ Bank, Commonwealth Bank of Australia and National Australia Bank. Following a career change from banking and finance into industry, Mrs Andersen was the Chief Financial Officer at Lumacom Ltd and Chief Operating and Financial Officer of Multi-Emedia.com Ltd. She led the initial public offering for and became the Managing Director of Eyecare Partners Limited, a company which trebled in size in its first 2 years of operation. Responsibilities: Chairman of the Audit & Risk Committee. Interest in options: 6,000,000 (3,000,000 exercise price of 12 cents, expiry date of 24/10/2015; 3,000,000 exercise price of 20 cents, expiry date of 10/11/2018), all are vested)
Dr John Hurrell B.Sc, M.Sc (Qual), PhD, Fulbright Fellow		Non-Executive Director
	Dr. John Hurrell has 30 years of experience in the biotechnology and life science industries. He has a strong track record of success in starting, building, growing and improving the profitability, performance and value of life science and healthcare companies. Currently Dr. Hurrell works as Senior Vice President at PTS Diagnostic Inc. where he is responsible for the International Business Development and Sales. Previous roles included: Senior Executive Vice President at Seegene, Inc. where he was responsible for the International Business Division, President and General Manager at Focus Diagnostics, VP of Business Development at Quest Diagnostics as well as senior positions at Genzyme, Boehringer Mannheim, Merck Serono, and a number of other companies Interest in Options: 6,000,000 (exercise price of 12 cents, expiry date of 31/10/2017 ; 3,000,000 exercise price of 20 cents, expiry date of 10/11/2018), all are vested

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

COMPANY SECRETARY

The position of Company Secretary has been held by Mr Shane Hartwig since 24 May 2010. Mr Hartwig’s experience is set out below.

Mr Hartwig is a Certified Practising Accountant and Chartered Company Secretary and holds a Bachelor of Business degree, majoring in Accounting and Taxation from Curtin University of Technology in Western Australia.

Mr Hartwig is involved in the areas of IPOs, capital raisings, prospectus and information memorandum preparation and project management, company assessments and due diligence reviews, mergers and acquisitions and providing general corporate advice and is currently Company Secretary of ASX listed Rutila Resources Ltd; and a Non Executive Director/Company Secretary of ASX listed Exalt Resources Limited. Mr Hartwig has over 20 years experience in the finance industry both nationally and internationally with exposure in both the debt and equity capital markets.

PRINCIPAL ACTIVITIES

The principal activities of the Company in the course of the year were the development and commercialisation of specialised surfaces used in life sciences, and the research & development of surfaces for specific binding of proteins (“abiotics”). The Company is applying capability in surfaces and binding of proteins to the development of invitro diagnostic tests.

There were no significant changes in the nature of the Company’s principal activities during or after the end of the financial year.

CONSOLIDATED OPERATING RESULT

The net consolidated operating loss of the economic entity for the financial year, after providing for income tax, amounted to $4,220,342 compared with a loss for the 2014 year of $2,492,150.

Revenue from sales was up 50% to $0.465 million, as compared to 2014, growing revenue from Mix&Go sales, royalties and consulting services. We received less from the Commercialisation Australia Grant $649,740, (2014 $836,200) because the grant completed at the end of March. The R&D Tax incentive was also less $1,087,247 (2014 $1,203,659) as a result of timing impact of the grant. In future years we expect the R&D Tax incentive to be more substantive. The impact on profit of these two items was $302,872. This year we reported $547,121 in non-cash share based payments (2014 $185,225) and impact of $361,896. The vast majority of the cost was expensing of options allotted to directors at the Annual General meeting in 2014. Following the placement at the end of 2013 we have increased our technical and transactional capability to better drive all business activities and push to profitability. This worthwhile investment is reflected in the increase in Research and Development Costs $3,116,891 (2014 $2,845,651), Selling & Distribution $1,780,711 (2014 $1,426,041).

As at 30 June 2015, the Company maintained cash reserves of $5,206,567 (2014: $7,070,722) which will be used in the further development and commercialisation of Anteo Diagnostics Limited’s proprietary technology.

DIVIDENDS PAID OR RECOMMENDED

No dividend has been paid during the year and the Directors do not recommend payment of a dividend.

REVIEW OF OPERATIONS

The review of operations is set out in the Operating and Financial Review.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

AFTER BALANCE DATE EVENTS

At the time of issuing this report the Company had entered into an agreement to acquire all the shares of DIAsource Immunoassays SA announced on 26[th] August,2015.

OPERATIONS AND FUTURE DEVELOPMENTS

Going forward the Company will focus on progressing its business strategy in the diagnostic market places, as outlined in the Operating and Financial Review.

ENVIRONMENTAL ISSUES

Anteo is licensed under the Queensland Health (Drugs and Poisons) Regulations 1996 for the use and storage of chemicals for research use. Anteo complies with all Workplace, Health and Safety requirements.

CORPORATE GOVERNANCE STATEMENT

Anteo Diagnostics Limited has published its Corporate Governance Statement on its website. It can be found at www.anteotech.com/investors/company-policies-and-codes/

REMUNERATION REPORT (AUDITED)

This report details the nature and amount of remuneration for each Director and relevant Executives of Anteo Diagnostics Limited.

Remuneration Policy

The Board’s policy for determining the nature and amount of remuneration for Non-executive Directors and Executive Directors and Senior Executives (collectively Executives) of the economic entity is as follows:

The remuneration structure that has been adopted consists of the following components:

Fixed remuneration being annual salary; and
Short term incentives, being employee share schemes and bonuses.

The Nomination and Remuneration Committee assess the appropriateness of the nature and amount of remuneration on a periodic basis by reference to recent employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executive team.

The payment of bonuses, share options and other incentive payments are reviewed by the Nomination and Remuneration Committee annually as part of the review of executive remuneration and a recommendation is put to the Board for approval. All bonuses, options and incentives must be linked to pre-determined performance criteria. Where share options or securities are provided as a component of remuneration or incentive schemes, the holders of those options or securities must not enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk or participating in the scheme.

Short term incentive (STI)

Anteo performance measures involve the use of annual performance objectives, metrics, performance appraisals and continuing emphasis on living the company values. The performance measures are set annually after consultation with the directors and executives and are specifically tailored to the areas where each executive has a level of control. The measures target areas the Board believes hold the greatest potential for expansion and profit and cover financial and non-financial measures. The KPI’s for the Executive Team are summarised as follows: Performance area:

Financial – completion of agreements, profitability and improvement in share price; and
Non-financial - strategic goals set by each individual business unit and holistic companywide performance criteria, including human resources, Workplace, Health & Safety and technical outcomes.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

The STI program incorporates both cash and share-based components for the executive team and other employees. The Board may, at its discretion, award bonuses for exceptional performance in relation to each person’s pre-agreed KPIs.

All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed. Shares (if any) attained by Directors and Executives are valued as the difference between the market price of those shares and the amount paid by the Director or Executive. Options are valued using methodologies set out in Notes 1(r) and 5 of the Financial Statements.

Executive Directors and Executives (Executives)

The remuneration policy of Anteo Diagnostics Limited currently consists of a base remuneration and in some cases the consideration of a short term cash incentive, and a long term incentive through the issue of options at the Board’s discretion. The Board believes the policy is appropriate as it repositions itself in the market, aligning Executive objectives with shareholder and business objectives.

The remuneration policy, setting the terms and conditions for the Executives was developed by the Nomination & Remuneration Committee, and approved by resolution of the Board. All eligible Executives receive a base salary and superannuation with options issued at the discretion of the Board. The Board of Directors, excluding Executive Directors, review Executive packages annually by reference to the economic entity’s performance, Executive performance and comparable information from industry sectors and other listed companies in similar industries. Executive performance is evaluated based on achievement of Business Plan and objectives set by the Board. Performance evaluation of Executives was carried out during the reporting period, in accordance with the remuneration policy.

Non-Executive Directors

The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and responsibilities. The Nomination & Remuneration Committee determines payments to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. Any changes to the maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are not linked to performance of the economic entity. However to align Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and are able to participate in the employee share option plan. Non-Executive Directors receive a superannuation guarantee contribution required by the Government, which at the date of this report is 9.5%, and do not receive any other retirement benefits.

Details of Directors’ Remuneration for the Year Ended 30 June 2015

Parent Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
M Bouris R Martin G Cumming S Andersen J Hurrell	1 - - 80,000 140,000 220,000 2 50,004 - - 168,000 218,004 3 400,000 - 38,000 - 438,000 4 54,795 - 5,205 84,000 144,000 5 49,992 - - 84,000 133,992
Total	554,790 - 123,206 476,000 1,153,996

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

Emoluments of the key management personnel of the group for the Year Ended 30 June 2015

Economic Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
J Maeji	6 201,918 - 50,000 - 251,918
Total	201,918 - 50,000 0 251,918

A detailed list of Directors including their skills and experience can be found on pages 2 and 3.

Notes regarding Directors and executive emoluments:

(1) Mr Bouris was a Director for the full year.
(2) Mr Martin was a Director for the full year. Mr Martin is a Director of Shubrick Investments Pty Ltd. Transactions with Shubrick Investments are disclosed as part of related party transactions in the Financial Statements.
(3) Dr Cumming was Chief Executive Officer for the full year.
(4) Mrs Andersen was a Director for the full year.
(5) Dr John Hurrell was a Director for the full year
(6) Dr Maeji was the Chief Scientific Officer for the full year.

Details of Directors’ Remuneration for the Year Ended 30 June 2014

Economic Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
M Bouris R Martin G Cumming S Andersen J Hurrell	1 - - 80,000 - 80,000 2 50,000 - - - 50,000 3 414,960 80,000 45,784 9,300 550,044 4 54,920 - 5,080 - 60,000 5 49,992 - - 17,700 67,692
Total	569,872 80,000 130,864 27,000 807,736

Emoluments of the key management personnel of the group for the Year Ended 30 June 2014

Economic Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
J Maeji	6 185,073 - 50,088 3,720 238,881
Total	185,073 - 50,088 3,720 238,881

Notes regarding Directors and executive emoluments:

(1) Mr Bouris was a Director for the full year.
(2) Mr Martin was a Director for the full year. Mr Martin is a Director of Shubrick Investments Pty Ltd. Transactions with Shubrick Investments are disclosed as part of related party transactions in the Financial Statements.
(3) Dr Cumming was Chief Executive Officer for the full year.
(4) Mrs Andersen was a Director for the full year.
(5) Dr John Hurrell was a Director for the full year
(6) Dr Maeji was the Chief Scientific Officer for the full year.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

Performance Remuneration as a Proportion of Total Remuneration

No bonuses were paid to executives during the year.

Options Issued or Vested as Part of Remuneration for the Year Ended 30 June 2015

17,000,000 options were issued to directors. 2,100,000 options held by Directors or key personnel vested during the year, because a time criteria was met. 17,000,000 options were issued in accordance with shareholder resolution with no vesting conditions. 6,300,000 options issued have not vested and will vest over the next 2 years in the proportion 33% and 67% in the final year.

Options Outstanding as at 30 June 2015

	Options Granted	Options Vested	Grant Date	Due Vesting	Value per Option	Exercise Price	Expiry Date
	No.	No.		Date	$	$
G Cumming	6,000,000	1,500,000	31/10/2013	31/10/2016	$0.0062	$0.1200	31/10/2017
R Martin	1,600,000	1,600,000	24/10/2011	Vested	$0.0173	$0.1200	24/10/2015
	6,000,000	6,000,000	10/11/2014	Vested	$0.0280	$0.2000	10/11/2018
M Bouris	5,000,000	5,000,000	24/10/2011	Vested	$0.0173	$0.1200	24/10/2015
	5,000,000	5,000,000	10/11/2014	Vested	$0.0280	$0.2000	10/11/2018
S Andersen	3,000,000	3,000,000	24/10/2011	Vested	$0.0173	$0.1200	24/10/2015
	3,000,000	3,000,000	10/11/2014	Vested	$0.0280	$0.2000	10/11/2018
J Hurrell	3,000,000	3,000,000	31/10/2013	Vested	$0.0062	$0.1200	31/10/2017
	3,000,000	3,000,000	10/11/2014	Vested	$0.0280	$0.2000	10/11/2018
J Maeji	2,400,000	600,000	31/10/2013	31/10/2016	$0.0062	$0.1200	31/10/2017
Total	38,000,000	31,700,000

Employment contracts of Directors and senior executives

The executives of the Company are employed on open-ended employment contracts that provide for termination by either party with notice. For Geoff Cumming and Joe Maeji, the notice period is 6 months and 3 months respectively. There are no special termination provisions.

There are no terms in any of the above agreements that provide for changes to remuneration for future periods. The Nomination & Remuneration Committee may review these arrangements annually or as required.

This is the end of the Remuneration Report.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

MEETINGS OF DIRECTORS

During the financial year, 7 meetings of Directors, 4 meetings of the Audit & Risk Committee and 3 meetings of the Nomination & Remuneration Committee were held. Attendances were as follows:

Director	Directors’ Meetings	Directors’ Meetings	Audit & Risk Committee	Audit & Risk Committee	Remuneration & Nomination Committee	Remuneration & Nomination Committee
	Number eligible to attend Number Attended		Number eligible to attend Number Attended		Number eligible to attend Number Attended
M Bouris R Martin G Cumming S Andersen JHurrell	7 7 7 7 7	6 7 7 7 7	4 4 4	4 4 4	3 3 2	3 3 2

INDEMNIFYING OFFICERS OR AUDITOR

The Company’s Constitution provides that the Company will indemnify officers of the Company against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of Director or officer of the Company other than conduct involving a wilful breach of duty in relation to the Company.

The Company has paid premiums to insure the Directors and officers against such liabilities that may arise. No premiums were paid for the auditors.

SHARE OPTIONS

At the date of this report, the un-issued ordinary shares of Anteo Diagnostics Limited under option are as follows:

follows:
		Exercise Price	Number under Option
Grant Date	Date of Expiry
		(Post consolidation value)	(Post consolidation number)
24 October 2011	24 October 2015	$0.120	9,600,000
9 November 2011	24 October 2015	$0.120	3,500,000
25 October 2012	24 October 2015	$0.120	500,000
15 August 2013	15 August 2017	$0.120	7,300,000
18 September 2013	18 September 2017	$0.120	2,400,000
31 October 2013	31 October 2017	$0.120	9,000,000
24 February 2014	24 February 2018	$0.250	1,000,000
16 April 2014	16 April 2018	$0.265	1,200,000
10 November 2014	10 November 2018	$0.200	17,000,000
4 February 2015	15 December 2018	$0.120	4,000,000
4 February 2015	15 December 2018	$0.200	1,000,000
16 April 2015	16 April 2018	$0.135	2,250,000
			58,750,000

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

DIRECTORS’ REPORT

All options are on issue to Employees, Directors, consultants or investors. 35,600,000 options were on issue to Directors and 23,150,000 options to executives, employees, consultants and investors. The weighted average share price during the year was $0.1239.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year.

NON-AUDIT SERVICES

$3,480 for non-audit services were paid for consulting services to an associated firm of the external auditors during the year ended 30 June 2015.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page 41, which forms part of this report.

Signed in accordance with a resolution of the Board of Directors.

==> picture [134 x 35] intentionally omitted <==

Mr Mark Bouris

Chairman Dated this 26[th] day of August 2015

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

		2015	2014
	Note	$	$
Sales revenue	2	465,131	309,759
Cost of sales		-	-
Grossprofit		465,131	309,759
Other revenue	2	1,978,739	2,326,089
Selling and distribution expenses		(1,780,711)	(1,426,041)
Occupancy expenses		(17,293)	(41,556)
Administrative expenses		(1,749,312)	(814,695)
Borrowing costs		(5)	(55)
Research and development expenses		(3,116,891)	(2,845,651)
Loss before income tax	3	(4,220,342)	(2,492,150)
Income tax benefit	4	-	-
Loss after income tax	15	(4,220,342)	(2,492,150)
Other Comprehensive Income		-	-
Total comprehensive income		(4,220,342)	(2,492,150)
Total changes in equity other than those resulting from transactions with owners as owners		(4,220,342)	(2,492,150)
Basic loss per share (cents)	7	(0.5)	(0.3)
Diluted loss per share (cents)	7	(0.5)	(0.3)

The financial statements should be read in conjunction with the accompanying notes.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

		2015	2014
	Note	$	$
CURRENT ASSETS
Cash assets	8	5,206,567	7,070,722
Receivables	9	242,905	233,500
Other	10	53,673	10,182
TOTAL CURRENT ASSETS		5,503,145	7,314,404
NON-CURRENT ASSETS
Property, plant and equipment	11	540,123	352,532
TOTAL NON-CURRENT ASSETS		540,123	352,532
TOTAL ASSETS		6,043,268	7,666,936
CURRENT LIABILITIES
Payables	12	345,942	280,310
Provisions	13	255,562	202,658
TOTAL CURRENT LIABILITIES		601,504	482,968
NON-CURRENT LIABILITIES
Provisions	13	94,901	82,633
TOTAL NON-CURRENT LIABILITIES		94,901	82,633
TOTAL LIABILITIES		696,405	565,601
NET ASSETS		5,346,863	7,101,335
EQUITY
Contributed equity	14	40,610,141	38,657,954
Share Option Reserve	14	967,627	455,739
Accumulated losses		(36,230,905)	(32,012,358)
TOTAL EQUITY		5,346,863	7,101,335

The financial statements should be read in conjunction with the accompanying notes.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

	Ordinary Shares	Options	Accumulated Losses	Total
	$	$	$	$
Balance at 30 June 2013	31,968,537	329,062	(29,521,832)	2,775,766
Issued during the year	6,979,213	-	-	6,979,213
Capital Raising Costs	(346,720)	-	-	(346,720)
Conversion of options into shares	-	-	-	-
Options expense for the period	-	185,225	-	185,225
Reversal of lapsed share options	-	(1,624)	1,624	-
Conversion of employee options into shares	56,924	(56,924)	-	-
Losses attributable to members of the parent entity	-	-	(2,492,150)	(2,492,150)
Balance at 30 June 2014	38,657,954	455,739	(32,012,358)	7,101,335
Balance at 30 June 2014	38,657,954	455,739	(32,012,358)	7,101,335
Issued during the year	1,918,749	-	-	1,918,749
Capital raising costs	-	-	-	-
Conversion of options into shares	-	-	-	-
Options expense for the period	-	547,121	-	547,121
Reversal of lapsed share options	-	(1,795)	1,795	-
Conversion of employee options into shares	33,438	(33,438)	-	-
Losses attributable to members of the parent entity	-	-	(4,220,342)	(4,220,342)
Balance at 30 June 2015	40,610,141	967,627	(36,230,905)	5,346,863

The financial statements should be read in conjunction with the accompanying notes.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
	Note	2015	2014
		$	$
Cash Flows from Operating Activities:
Receipts from customers		526,067	483,402
Receipts from government grants and rebates		1,708,657	2,354,159
Payments to suppliers and employees		(5,810,056)	(4,983,496)
Borrowing costs		(5)	(55)
Interest received		142,310	169,324
Net cash used in operating activities	15(i)	(3,433,025)	(1,976,666)
Cash Flows From Investing Activities:
Payment forproperty,plant and equipment		(349,879)	(206,177)
Net cashprovided by investing activities		(349,879)	(206,177)
Cash Flows From Financing Activities:
Proceeds from share issues		1,918,749	6,979,213
Capital raisingcosts		-	(346,720)
Net cash provided by (used in) financing activities		1,918,749	6,632,493
Net increase (decrease) in cash held		(1,864,155)	4,449,650
Cash at start ofyear		7,070,722	2,621,072
Cash at end of year	8, 15 (ii)	5,206,567	7,070,722

The financial statements should be read in conjunction with the accompanying notes.

ANTEO DIAGNOSTICS LIMITED – CONSOLIDATED ENTITY ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes under the Australian Accounting Standards. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with the International Financial Reporting Standards.

Anteo Diagnostics Limited is a listed public company, incorporated and domiciled in Australia.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2015. The financial report has been prepared on an accruals basis, except for cash flow information.

Going Concern

The financial statements have been prepared on the going concern basis.

The Board is continually assessing the capital needs of the Company’s business and addressing the alternatives available to fund the operational requirements of the Company. As at the 30[th] June 2015 the Company had $5,206,567 in cash reserves. The Board believes that based upon current spending forecasts there is adequate funding to provide for the Company’s requirements to carry on its strategic plan and beyond 12 months of operation. The Company will need to raise capital to acquire DIAsource Immunoassays SA.

Significant accounting policies

The following significant accounting policies have been adopted in the preparation and presentation of the financial report:

(a) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash in banks and investments with original maturities of three months or less.

(b) Comparatives

When required by accounting standards or accounting policy, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(c) Employee benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of employee benefits which are not expected to be settled within 12 months, are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of the services provided by employees up to reporting date.

Contributions to defined contribution superannuation plans are expensed when incurred.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(d) Financial assets

Financial investments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition, these investments are assessed at each reporting date to determine whether there is any evidence that an investment is impaired. Any such impairment is reported in the Statement of Comprehensive Income.

(e) Foreign currency transactions

All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Exchange differences are recognised in profit or loss in the period in which they arise.

(f) Goods and services tax

Revenues, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST), except:

i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
ii. for receivables and payables which are recognised inclusive of GST.

The amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables and payables.

Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(g) Goodwill

Pursuant to the adoption of AASB3 Business Combinations (reverse acquisitions), goodwill, representing the excess of the cost of combination to Bio-Layer Pty Limited over the fair value of the identifiable assets, liabilities and contingent liabilities acquired of Anteo Diagnostics Limited (formerly BioLayer Corporation Limited and prior to that SSH Medical Limited), was recognised as an asset and not amortised, and was tested for impairment. This impairment was recognised in profit or loss and will not be subsequently reversed.

(h) Government grants

Government grants are assistance by the government in the form of transfers or resources to the consolidated entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. Government grants include government assistance where there are no conditions specifically relating to the operating activities of the consolidated entity other than the requirement to operate in certain regions or industry sectors.

Government grants relating to income are recognised as income over the periods necessary to match them with the related costs.

(i) Impairment of assets

At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Goodwill is tested for impairment at each reporting date and whenever there is an indication that the asset may be impaired. An impairment of goodwill is not subsequently reversed.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment is treated as a revaluation increase.

(j) Income tax

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred tax

Deferred tax is accounted for using the comprehensive statement of financial position liability method in respect of temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilized. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from goodwill.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, branches, associates and joint ventures except where the consolidated entity is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with these investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability giving rise to them are realized or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the consolidated entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company/consolidated entity intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the period

Current and deferred tax is recognised as an expense or income in the Statement of Comprehensive Income, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill.

(k) Intangible assets

Patents, trademarks and licenses

Patents, trademarks and license costs are recognised as an expense in the period in which they are incurred.

Research and development costs

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

(l) Overheads

The Company allocates overheads for the operating entity to their business cost centres. This procedure has been adopted in this period to more accurately represent operating costs of the economic entity.

(m) Payables

Trade payables and other accounts payable are recognised when the economic entity becomes obliged to make future payments resulting from the purchase of goods and services.

(n) Principles of consolidation

The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the economic entity, being the Company (the parent entity) and its subsidiaries as defined in Accounting Standard AASB 10 Consolidated and Separate Financial Statements. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements.

On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. If, after assessment, the fair values of the identifiable net assets acquired exceed the cost of acquisition, the deficiency is credited to profit and loss in the period of acquisition.

The consolidated financial statements include the information and results of each subsidiary from the date on which the Company obtains control and until such time as the Company ceases to control such entity.

In preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised profits arising within the economic entity are eliminated in full.

(o) Property, plant and equipment

Plant and equipment, leasehold improvements and equipment under finance lease are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred,

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.

Depreciation is provided on property, plant and equipment. Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The following depreciation rates, based on estimated useful lives, are used in the calculation of depreciation:

Leasehold improvements	10% - 50%
Plant and equipment	20% - 40%
Furniture and office equipment	20% - 40%
Leased plant and equipment	20%

(p) Provisions

Provisions are recognised when the consolidated entity has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

(q) Revenue recognition Sale of goods

Revenue from the sale of goods is recognised when the economic entity has transferred to the buyer the significant risks and rewards of ownership of the goods.

Rendering of services

Revenue for a contract to provide services is recognised by reference to the stage of completion of the contract. Revenue is not recognised until each milestone has been successfully completed under the terms of the contract.

Royalties, grants and licence fees

Royalty, grant and licence fee revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.

Interest revenue

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.

(r) Share-based payments

Share-based payments are measured at fair value at the date of grant. Fair value for options is measured by use of the Black Scholes and Hull White valuation models.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

The fair value determined as at the grant date of the share-based payments is expensed on a straight line basis over the vesting period, based on the economic entity’s estimate of shares that will eventually vest.

Terms and conditions of Share-based payments are set out in Note 5.

(s) New accounting standards and interpretations

A number of new and revised standards are effective for annual periods beginning on or after 1 July 2014 Information on these new standards is presented below.

Accounting Standards issued but not yet effective and not been adopted early by the Group	Impact on Group
AASB 9 Financial Instruments (December 2014)	The entity is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019.
AASB 15 Revenue from Contracts with Customers (replaces AASB 118 Revenue, AASB 111 Construction Contracts and some revenue- related Interpretations)	The entity is yet to undertake a detailed assessment of the impact of AASB 15. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2018.
AASB 2014-1 Amendments to Australian Accounting Standards (Part D: Consequential Amendments arising from AASB 14)	When these amendments become effective for the first time for the year ending 30 June 2017, they will not have any impact on the entity.
AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality	When this Standard is first adopted for the year ending 30 June 2016, there will be no impact on the financial statements.
AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.

(t) Critical Accounting Estimates and Judgements

Key Estimates - Impairments

The Company assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Per AASB 136 value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

	2015	2014
	$	$
2. REVENUE
Revenues from operating activities:
Sale ofgoods and services	465,131	309,759
Other Revenue	757,451	946,769
R&D Tax Concession	1,087,247	1,203,659
Grants	649,740	836,200
Rent & Other	107,711	110,569
Interest-othercorporations	134,041	175,661
	1,978,739	2,326,089
Revenues from other non-operating activities:
Gainondisposalofsubsidiary undertaking	-	-
	-	-
Total Revenue	2,443,870	2,635,848

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

3. LOSS FROM ORDINARY ACTIVITIES

The loss from ordinary activities before income tax expense has been determined after:

Amortisation of non-current assets:
Leasehold improvements	17,190	14,635
Total amortisation of non-current assets	17,190	14,635
Depreciation of non-current assets:
Plant and equipment	128,020	78,520
Furniture,office equipment and software	17,078	11,381
Total depreciation of non-current assets	145,098	89,901
Borrowing costs:
Interest,otherpersons	5	55
	5	55
Movements in provisions:
Doubtful debts	-	-
Employee benefits	65,172	85,515
	65,172	85,515
Staff Remuneration
Salaries	2,243,288	1,904,189
Superannuation	278,275	251,657
Share Based Payments	547,121	185,225
	3,068,684	2,341,071

Operating lease rentals	324,437	336,421

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

	2015	2015		2014
	$			$
4. INCOME TAX EXPENSE
(a) The prima facie income tax on the loss from
ordinary income tax is reconciled as follows:
Prima facie tax calculated at 30% on losses from ordinary activities	(1,266,103)			(747,645)
Add/(deduct) tax effect of :
- interest on converting note			-	-
- other deductible items		(27,837)		(27,837)
- write downs to recoverable amounts			-	-
- impairment of financial assets			-	-
- impairment of goodwill			-	-
- gain on sale for accounting purposes			-	-
- options expensed for accounting purposes		164,136		55,568
- R&D tax incentive	(326,174)			363,521
Timing differences not brought to account to the extent of income tax losses	1,455,977			356,393
Income taxbenefit attributable to ordinary activities			-	-
Weighted Average Effective Tax Rates			-	-
(b) Deferred Tax Assetsarising from income tax losses
not brought to account, the benefits of which will only be
realised if the conditions for deductibility set out in Note	10,197,344			9,776,555
1(j) occur
Gross Income Tax Losses	33,991,146			32,588,515

5. DIRECTORS’ AND EXECUTIVES’ REMUNERATION

(a) Directors and Key Management Personnel

Names and positions held of parent entity Directors and key management personnel in office at any time during the financial year have been included in the Directors Report.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(b) Parent Entity Directors’ Remuneration and Key Management Personnel Details of Directors’ Remuneration for the Year Ended 30 June 2015

Parent Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
M Bouris R Martin G Cumming S Andersen J Hurrell	1 - - 80,000 140,000 220,000 2 50,004 - - 168,000 218,004 3 400,000 - 38,000 - 438,000 4 54,795 - 5,205 84,000 144,000 5 49,992 - - 84,000 133,992
Total	554,790 - 123,206 476,000 1,153,996

Emoluments of the key management personnel of the group for the Year Ended 30 June 2015

Economic Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
J Maeji	6 201,918 - 50,000 - 251,918
Total	201,918 - 50,000 0 251,918

A detailed list of Directors including their skills and experience can be found on page 2.

Notes regarding Directors and executive emoluments:

(1) Mr Bouris was a Director for the full year.
(2) Mr Martin was a Director for the full year. Mr Martin is a Director of Shubrick Investments Pty Ltd. Transactions with Shubrick Investments are disclosed as part of related party transactions in the Financial Statements.
(3) Dr Cumming was Chief Executive Officer for the full year.
(4) Mrs Andersen was a Director for the full year.
(5) Dr John Hurrell was a Director for the full year.
(6) Dr Maeji was the Chief Scientific Officer for the full year.

Details of Directors’ Remuneration for the Year Ended 30 June 2014

Parent Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
M Bouris R Martin G Cumming S Andersen J Hurrell	1 - - 80,000 - 80,000 2 50,000 - - - 50,000 3 414,960 80,000 45,784 9,300 550,044 4 54,920 - 5,080 - 60,000 5 49,992 - - 17,700 67,692
Total	569,872 80,000 130,864 27,000 807,736

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Emoluments of the key management personnel of the group for the Year Ended 30 June 2014

Economic Entity	Note Base Fee / Salary Bonus Post Employment Super- annuation Share Based Options Total $ $ $ $ $
J Maeji	6 185,073 - 50,088 3,720 238,881
Total	185,073 - 50,088 3,720 238,881

Notes regarding Directors and executive emoluments:

(1) Mr Bouris was a Director for the full year.

(2) Mr Martin was a Director for the full year. Mr Martin is a Director of Shubrick Investments Pty Ltd. Transactions with Shubrick Investments are disclosed as part of related party transactions in the Financial Statements.

(3) Dr Cumming was Chief Executive Officer for the full year.

(4) Mrs Andersen was a Director for the full year.

(5) Dr John Hurrell was a Director for the full year.

(6) Dr Maeji was the Chief Scientific Officer for the full year.

(c) Options

Directors and key management personnel remuneration has been included in the Remuneration Report section of the Directors Report. Further information regarding value of options vested during the year is on page 8 of the Directors Report.

The fair value of options issued to Directors and Executives was determined using the Black Scholes and Hull White methods of valuation as the basis for determining value. Regard was given to the vesting terms of the options and that they are not transferable by halving the nominal calculated amount. The follow parameters were used in the calculation:

i) Expected Volatility – 55% ii) Share price $0.12.4

iii) Exercise Price $0.20

iv) Risk Free Rate 2.7%

v) The option life 4 years. vi) Employee exit rate 5%.

(d) Shares issued on exercise of remuneration options

13,125,000 shares were issued on the exercise of remuneration options during the year ended 30 June 2015 (2014: 14,600,000).

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(e) Options holdings

Number of options held by or at the nomination of Parent Entity Directors (who held office during the year) as at 30[th] June 2015.

								Total
	Balance	Granted as	Options	Options Sold		Balance	Total Vested	Exercisable
	1Jul 14	Remuneration	Lapsed	or Exercised	Net Change	30 Jun 15	30 Jun 15	30 Jun 15
Parent Entity
Directors
M Bouris	5,000,000	5,000,000	-	-	5,000,000	10,000,000	10,000,000	10,000,000
G Cumming	6,000,000	-	-	-	-	6,000,000	1,500,000	1,500,000
R Martin	3,000,000	6,000,000	-	1,400,000	4,600,000	7,600,000	7,600,000	7,600,000
S Andersen	3,000,000	3,000,000	-	-	3,000,000	6,000,000	6,000,000	6,000,000
J Hurrell	3,000,000	3,000,000	-	-	3,000,000	6,000,000	6,000,000	6,000,000
	20,000,000	17,000,000	-	1,400,000	15,600,000	35,600,000	31,100,000	31,100,000

Number of options held by or at the nomination of key management personnel (who held office during the year) as at 30[th] June 2015:

								Total
	Balance	Granted as	Options	Options Sold		Balance	Total Vested	Exercisable
	1Jul 14	Remuneration	Lapsed	or Exercised	Net Change	30 Jun 15	30 Jun 15	30 Jun 15
Specified
Executives
J Maeji	8,650,000	-	-	6,250,000	(6,250,000)	2,400,000	600,000	600,000
S Hartwig	-	-		-	-	-	-	-
	8,650,000	-	-	6,250,000	(6,250,000)	2,400,000	600,000	600,000

Number of options held by or at the nomination of Parent Entity Directors (who held office during the year) as at 30[th] June 2014.

								Total
	Balance	Granted as	Options	Options Sold		Balance	Total Vested	Exercisable
	1Jul 13	Remuneration	Lapsed	or Exercised	Net Change	30 Jun 14	30 Jun 14	30 Jun 14
Parent Entity
Directors
M Bouris	5,000,000	-	-	-	-	5,000,000	5,000,000	5,000,000
G Cumming	13,000,000	6,000,000	-	(13,000,000)	(7,000,000)	6,000,000	-	-
R Martin	3,000,000	-	-	-	-	3,000,000	3,000,000	3,000,000
S Andersen	3,000,000	-	-	-	-	3,000,000	3,000,000	3,000,000
J Hurrell	-	3,000,000	-	-	3,000,000	3,000,000	3,000,000	3,000,000
	24,000,000	9,000,000	-	(13,000,000)	(4,000,000)	20,000,000	14,000,000	14,000,000

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Number of options held by or at the nomination of key management personnel (who held office during the year) as at 30[th] June 2014:

				Options				Total	Total
	Balance	Granted as	Options	Sold or		Balance	Total Vested	Exercisable	Unexercisable
	1Jul 13	Remuneration	Lapsed	Exercised	Net Change	30 Jun 14	30 Jun 14	30 Jun 14	30 Jun 14
Specified
Executives
J Maeji	9,852,552	2,400,000	3,602,552	-	(1,202,552)	8,650,000	6,250,000	6,250,000	2,400,000
S Hartwig	750,000	-		750,000	(750,000)	-	-	-	-
	10,602,552	2,400,000	3,602,552	750,000	(1,952,552)	8,650,000	6,250,000	6,250,000	2,400,000

(f) Shareholdings

Number of shares held by or at the nomination of Directors and key management personnel as at 30[th] June 2015:

	Balance 1 Jul 14	Received as Remuneration	Rights Issue Alloted	Purchased Non- Remuneration	Sold	Options Exercised	Net Change	Balance 30 Jun 15
Parent Entity Directors
M Bouris	-				-	-	-	-
R Martin	-	-	-	-	-	1,400,000	1,400,000	1,400,000
G Cumming	17,500,000	-	-	-	-	-	-	17,500,000
S Andersen	-	-	-	-	-	-	-	-
J Hurrell	-	-	-	-	-	-	-	-
J Maeji	6,315,781	-	-	-	-	6,250,000	6,250,000	12,565,781
	23,815,781	-	-	-	-	1,400,000	1,400,000	18,900,000

(g) Remuneration practices

Remuneration Policy

The remuneration structure that has been adopted consists of the following components:

Fixed remuneration being annual salary; and
Short term incentives, being employee share schemes and bonuses.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Short Term Incentive (STI)

The KPI’s for the Executive Team are summarised as follows: Performance area:

Financial – completion of agreements, profitability and improvement in share price; and
Non-financial - strategic goals set by each individual business unit and holistic companywide performance criteria, including human resources, Workplace, Health & Safety and technical outcomes.

Executive Directors and Executives (Executives)

Non-Executive Directors

The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and responsibilities. The Nomination & Remuneration Committee determines payments to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. Any changes to the maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are not linked to performance of the economic entity. However to align Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and are able to participate in the employee share option plan. Non-Executive Directors remuneration is inclusive of a superannuation guarantee contribution required by the Government, which was 9.5% for the year and is currently 9.5%, and they do not receive any other retirement benefits.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

			Consolidated
	Note	2015		2014
		$		$
6. AUDITORS’ REMUNERATION
Remuneration of the auditors of the company for:
- Auditingor reviewingfinancial report			56,896	50,503
			56,896	50,503
7. EARNINGS PER SHARE (EPS)
Weighted average number of ordinary shares outstanding during the year used in the calculation of basic EPS		840,306,068		798,168,546
Weighted number of dilutive options outstanding		54,270,367		57,852,075
Weighted average number of ordinary shares outstanding during the year used in the calculation of diluted EPS		894,576,436		856,020,622
8. CASH ASSETS
Cash on hand			972	764
Cash at bank		5,087,595		6,951,958
Deposits at call			118,000	118,000
		5,206,567		7,070,722
9. RECEIVABLES
CURRENT
Trade debtors			111,240	113,352
			111,240	113,352
Other debtors			131,665	120,148
			242,905	233,500

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

2015	Net Amount	Past Due but not impaired (days overdue) < 30 31-60 61-90 > 90	Within initial trade
Trade Debtors Otherdebtors	111,240 131,665	3,565 863 - 9,169 - - - -	97,643 131,665
Total	242,905	3,565 863 - 9,169	229,308
2014 Trade Debtors Otherdebtors	113,352 120,148	- - - - - - - -	113,352 120,148
Total	233,500	- - - -	233,500

Allowance for Impairment of Receivables

Current trade receivables are non-interest bearing and generally on 14 day terms. Allowance for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts have been included in the other expenses item.

No allowance for impairment was made during 2015 nor 2014.

	2015	2014
	$	$
10. OTHER ASSETS
CURRENT
Prepayments	53,673	10,182
	53,673	10,182
11. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment, at cost	1,767,319	1,432,897
Accumulated depreciation	(1,305,447)	(1,177,427)
	461,872	255,470
Furniture and fittings, office equipment, at cost	518,234	502,777
Accumulated depreciation	(439,983)	(405,715)
	78,251	97,062

Total Property, Plant and Equipment	540,123	352,532

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Movements in carrying amounts

Movement in carrying amounts for each class of property, plant and equipment between the beginning and end of the financial year is as follows:

end of the financial year is as follows:
2015	Furniture, Office Equipment	Plant and Equipment	Total
	$	$	$
Carrying amount at start of year	97,062	255,470	352,532
Additions	15,457	334,422	349,879
Depreciation / amortisation	(34,268)	(128,020)	(162,288)
Carryingamount at end ofyear	78,251	461,872	540,123

2014	Furniture, Office Equipment	Plant and Equipment	Total
	$	$	$
Carrying amount at start of year	70,609	180,282	250,891
Additions	52,469	153,708	206,177
Depreciation / amortisation	(26,016)	(78,520)	(104,536)
Carryingamount at end ofyear	97,062	255,470	352,532

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

	Note	2015	2014
		$	$
12. PAYABLES
Trade creditors		227,171	164,790
Sundrycreditors and accrued expenses		118,771	115,520
		345,942	280,310
13. PROVISIONS
CURRENT
Employee benefits	13(a)	255,562	202,658
		255,562	202,658
NON-CURRENT
Employee benefits	13(a)	94,901	82,633
		94,901	82,633
(a)Aggregate employee benefits		350,463	285,291

(b)Number of employees atyear end		24	21

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

	2015	2014
	$	$
14 (a). CONTRIBUTED EQUITY
Closingbalance contributed equity	40,610,141	38,657,954
Balance at beginning of year:
Opening balance contributed equity	38,657,954	31,968,537
Shares issued during the year:
Issue of shares	1,952,187	7,036,137
Costs associated with share issues	-	(346,720)
Balance at the end of year
Closingbalance contributed equity	40,610,141	38,657,954
14 (b). SHARE OPTIONS
Closingbalance contributed equity	967,627	455,739
Balance at beginning of year:
Opening balance contributed equity	455,739	329,062
Shares issued during the year:
Issue of options	547,121	185,225
Lapsed Options	(1,795)	(1,624)
Excercised Options	(33,438)	(56,924)
Balance at the end of year
Closingbalance contributed equity	967,627	455,739
Ordinary shares at the beginning of reporting period	831,689,493	770,351,591
Sharesissued during the period	25,625,000	61,337,902
Fully paid ordinary shares at reporting date	857,314,493	831,689,493
Options on Issue at the beginning of reporting period	49,498,966	49,025,884
Options issued during the period	24,250,000	22,100,000
Options converted or lapsed during the period	(14,998,966)	(21,626,918)
Options on Issue at reporting date	58,750,000	49,498,966

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held.

At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

Between 2nd September 2014 and 31st December 2014 the Company issued 13,125,000 Shares from the exercise of $0.07 employee share options.

On 10th November 2014 the Company issued 17,000,000 options with an exercise price of $0.20 to directors in accordance with a shareholder resolution.

On 5th February 2015 the Company issued 4,000,000 optionswith an exercise price of $0.12 and 1,000,000 options with an exercise price of $0.20 in accordance with the employee share option plan.

On 16th April the Company issued 2,250,000 options with an exercise price of $0.135 in accordance with the employee share option plan.

On 28th May 2015 the Company issued 12,500,000 shares at $0.08 in a placement.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Capital Management

Management controls the capital of the group to ensure that the group can fund its operations and continue as a going concern.

The group’s debt and capital includes ordinary share capital, options and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements.

Management effectively manages the group’s capital by assessing the group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of cash position and share issues.

There have been no changes in the strategy adopted by management to control the capital of the group since the prior year.

	Note	2015	2014
		$	$
Total Payables	12	345,942	280,310
Less Cash and Cash Equivalents	8	(5,206,567)	(7,070,722)
Net Cash Surplus		(4,860,625)	(6,790,412)
Total Equity		5,346,863	7,101,335
Gearing Ratio		N/A	N/A
15. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
i. Cash Flows from operating activities:
Net loss		(4,220,342)	(2,492,150)
Non-cash items:
Depreciation and Amortisation	3	162,288	104,536
(Profit) / Loss on disposal of non current assets		-	-
Share based remuneration		547,121	185,225
Changes in assets and liabilities:
Decrease / (increase) in receivables	9	(67,531)	168,153
Decrease / (increase) in other current assets	10	14,635	(8,451)
(Decrease) / increase in trade creditors and accruals	12	65,632	(19,495)
(Decrease) / increase in other liabilities	13	65,172	85,515
Net cash flows from operations		(3,433,025)	(1,976,666)

ii. For the purpose of this statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, net of bank overdrafts, as shown in Note 8.

iii. Credit Facilities. The economic entity has no unused credit facilities with Banks or other financial institutions.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

16. SEGMENT REPORTING

The economic entity operates in the life sciences sector. Furthermore, although activities are conducted in a number of countries, the core business functions supporting the activities of the economic entity are located in Australia. The Company has concluded that there is only one segment at this time and the entire financial report reflects the operations and activities of the group.

17. RELATED PARTY TRANSACTIONS

Shubrick Investments Pty Ltd

Richard Martin is a Director of Shubrick Investments Pty Ltd. During the year, Shubrick Investments Pty Ltd invoiced the Company for the following services.

a. Director’s fees - $50,000 (2014: $50,000). Note these amounts are included in Directors Remuneration in the Director’s Report.
b. Fees for Chief Financial Officer services - $163,163 (2014: $159,250).

Share Transactions of Directors - Directors and Director-related entities holding shares directly, indirectly or beneficially as at the reporting date have the equity interests set out in Note 5.

18. CAPITAL AND LEASING COMMITMENTS

Non-cancellable operating leases contracted for but not capitalised in the financial report. This lease relates to the current business premises and expires in November 2017.

	2015	2014
	$	$
(a) Operating Lease Commitments
Payable:
- Not later than one year	322,141	294,898
- Later than oneyear and not later than fiveyears	456,477	737,718
	778,618	1,032,616
(b) Operating Lease Receivables
Receivable:
- Not later than one year	20,522	98,550
- Later than oneyear and not later than fiveyears	-	32,961
	20,522	131,511

19. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Policies

The group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable, loans to and from subsidiaries.

The main purpose of non-derivative financial instruments is to finance for Group operations. There are no derivatives used by the Group.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

i. Treasury Risk Management

The senior management of the Group regularly analyse the financial risk exposure to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The management strategy seeks to assist the economic entity in meeting its financial targets, whilst minimising potential adverse effects on the financial performance.

The senior management operates under policies approved by the Board of Directors, risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

ii. Financial Risk Exposures and Management

The main risks the Group is exposed to through its financial instruments are interest rate risk, foreign currency risk, liquidity risk and credit risk.

Interest Rate Risk

There is no significant interest expense rate risk as the Group does not have any external debt. Interest income rate risk is managed by placing cash excess to short term needs on deposit with one of top four banks in Australia. For further details on interest rate risk refer to Note 19 (b) (iii).

Foreign Currency Risk

The economic entity is not exposed to significant financial risks from movements in foreign exchange rates as there are no material financial assets and liabilities denominated in foreign currencies. This is inclusive of both on and off statement of financial position financial instruments. The Group does not participate in any type of hedging transaction or derivatives.

Liquidity Risk

The Group manages liquidity risk by monitoring forecast cash flows.

Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount as disclosed in the statement of financial position and notes to the financial statements.

Trade debtors that are neither past due or impaired are considered to be of high credit quality. Aggregates of such amounts are as detailed in Note 9.

(b) Financial Instruments

i. Net Fair Values

For all financial assets and liabilities the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements.

ii. Financial Instruments composition and maturity analysis

The tables below reflect the settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments.

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Trade and sundry payables are expected to be paid as follows:

Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:	Trade and sundry payables are expected to be paid as follows:
Note 2015 2014
$ $ Trade and Sundry Payables are expected to be paid as follows: - Less than 6 months 345,942 280,310 345,942 280,310



Consolidated Group	Weighted average effective interest rate	Floating interest rate		Fixed interest rate maturing			Non-interest Bearing	Total
	2015 2014 % %	2015 2014 $ $		2015 2014 $ $ Within 1 year	2015 2014 $ $ 1 to 5 years		2015 2014 $ $	2015 2014 $ $
Financial Assets
Cash	3.50% 3.50%	5,206,567 6,952,722		- 118,000	- -		- -	5,206,567 7,070,722
Receivables	0.00% 0.00%	- -		- -	- -		242,905 233,500	242,905 233,500
Total Financial Assets		5,206,567 6,952,722		- 118,000	- -		242,905 233,500	5,449,472 7,304,222

Financial Liabilit	ies
Payables	0.00% 0.00%	- -		- -	- -		345,942 280,310	345,942 280,310
Total Financial Liabilities		- -		- -	- -		345,942 280,310	345,942 280,310

iii. Sensitivity Analysis Interest Rate Risk The group has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. At 30 June 2015, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows:
Cash held in 2014 Weighted average interest rate Estimated interest earned Movement in Profit Cash held in 2015 Weighted average interest rate Estimated interest earned Movement in Profit			Actual Increase Rate by 2% Decrease Rate by 2% 7,070,722 7,070,722 7,070,722 3.50% 5.50% 1.50%
			247,475			388,890 106,061
			141,415 -141,414 5,206,567 5,206,567 5,206,567 3.50% 5.50% 1.50%
						141,415 -141,414
			182,230			286,361 78,099

						104,131 -104,131

iii. Sensitivity Analysis

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

20. CONTROLLED ENTITIES AND PARENT ENTITY DISCLOSURES

	20. CONTROLLED ENTITIES AND PARENT ENTITY DISCLOSURES
	Location 2015 2014
	Parent entity:  Anteo Diagnostics Limited Aust Subsidiaries: Anteo Technologies Pty Limited (Formerly Bio-Layer Pty. Limited) Aust 100% 100% Anteo Energy Pty. Limited Aust 100% Aged Care Diagnostics Pty Limited Aust 100% 100%

	2015 2014 $ $ Result of the Parent Entity Net Loss 2,401,724 689,515 Financial Position of Parent Entity Current assets 16,802,219 15,938,435 Non current assets 3,700,001 3,700,001 TOTAL ASSETS 20,502,220 19,638,436 CURRENT LIABILITIES Current liabilities 127,734 93,094 TOTAL LIABILITIES 127,734 93,094 NET ASSETS 20,374,486 19,545,342 EQUITY Contributed equity 62,565,665 59,366,690 Accumulated losses (42,191,179) (39,821,348) TOTAL EQUITY 20,374,486 19,545,342

21. AFTER BALANCE DATE EVENTS

At the time of issuing this report the Company had entered into an agreement to acquire all of the shares in DIAsource Immunoassays SA announced on 26[th] August 2015.

The financial report was authorised for issue on the 26th August 2015 by the Board of Directors.

22. COMPANY DETAILS

The registered office and principal place of business of the Company is:

4/26 Brandl Street Eight Mile Plains QLD 4113

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

DIRECTORS’ DECLARATION

The Directors of Anteo Diagnostics Limited declare that:

1) The financial statements and notes, as set out on pages 11 to 39 are in accordance with the Corporations Act 2001 and:
a) comply with Accounting Standards, the Corporations Regulations 2001;and
b) give a true and fair view of the financial position as at 30 June 2015 and of the financial performance for the year ended on that date of the Consolidated Entity,
2) The Chief Executive Officer and the Chief Financial Officer have declared that :
a) The financial records for the Company for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001;
b) The financial statements and notes for the financial year comply with the Accounting Standards; and
c) The financial statements and notes for the financial year give a true and fair view.
3) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable having regard to the disclosures made in Note 1 to the financial statements.
4) Note 1 confirms that the consolidated financial statements also comply with International Financial Reporting Standards.

Signed in accordance with a resolution of the Board of Directors

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Mr Mark Bouris Chairman Dated this 26[th] day of August 2015

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Grant Thornton Audit Pty Ltd ACN 130 913 594

Level 18 King George Central 145 Ann Street Brisbane QLD 4000 Correspondence to: GPO Box 1008 Brisbane QLD 4001

T + 61 7 3222 0200 F + 61 7 3222 0444 E [email protected] W www.grantthornton.com.au

Auditor’s Independence Declaration To the Directors of Anteo Diagnostics Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Anteo Diagnostics Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M S Bell Partner - Audit & Assurance

Brisbane, 26 August 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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Grant Thornton Audit Pty Ltd ACN 130 913 594

Level 18 King George Central 145 Ann Street Brisbane QLD 4000 Correspondence to: GPO Box 1008 Brisbane QLD 4001

T + 61 7 3222 0200 F + 61 7 3222 0444 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report To the Members of Anteo Diagnostics Limited

Report on the financial report

We have audited the accompanying financial report of Anteo Diagnostics Limited (the “Company”), which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit and loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001. The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion:

a the financial report of Anteo Diagnostics Limited is in accordance with the Corporations Act 2001, including:
i giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and
ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the remuneration report

We have audited the remuneration report included in pages 5 to 8 of the directors’ report for the year ended 30 June 2015. The Directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s opinion on the remuneration report

In our opinion, the remuneration report of Anteo Diagnostics Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

M S Bell Partner - Audit & Assurance

Brisbane, 26 August 2015

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

ADDITIONAL ASX INFORMATION

SHAREHOLDINGS AS AT 21 AUGUST 2015

Distribution of shareholdings:

Holding From	Holding To	No. of Holders	Total Shares Held	%
1	1,000	1,061	457,893	0.05
1,001	5,000	579	1,666,691	0.19
5,001	10,000	452	3,634,668	0.43
10,001	100,000	1,734	74,250,937	8.66
Holdings larger than	100,000	1,021	777,304,304	90.67
TOTAL		5,847	857,314,493	100.00

Voting rights:

In accordance with the Company’s constitution, the following rights to vote apply to members holding ordinary shares:

(a) On a show of hands every member present in person or by proxy or attorney or representative will have one vote; and
(b) on a poll every member present in person or by proxy, attorney or representative will have one vote for each fully paid share held.

Holdings less than a Marketable Parcel:

As defined by the ASX Listing Rules a marketable parcel is a parcel of securities of not less than $500 in value based on the closing price on SEATS the date before the issue of the notice. At the date of this report, in relation to ordinary shares in the Company, a marketable parcel equates to 7,463 ordinary shares. The number of shareholders holding less than a marketable parcel and the number of shares held by them were as follows:

No. of holders holding less than a marketable parcel	1,563
No. of shares held	1,739,584

Names and details of substantial shareholders

The following is a listing of Substantial Shareholders as at 21[th] August 2015.

Name of Substantial Shareholder	Shares held	% of Total
		Shares
First Cape Management Pty Ltd <FCM Unit	119,214,091	13.9
A/c>

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

ADDITIONAL ASX INFORMATION

Top 20 shareholders

The following is a listing of the 20 largest shareholders at 21[th] August 2015 together with the number of shares held and the percentage of total shares held.

Shareholder	Shares Held	%
First Cape Management Pty Ltd	79,055,349	9.221
Austcorp No 190 Pty Ltd	40,158,742	4.684
Nimrod Finance Limited	19,867,574	2.317
Dr Geoffrey Cumming	17,500,000	2.041
Mr Ian Andrew Noble & Mrs Annette Joy Noble <Noble Family Retire
Fund A/C>	15,565,000	1.816
Dr Nobuyoshi Joe Maeji	12,565,781	1.466
Australian Good Food Guide Publishing Pty Ltd	10,733,888	1.252
Sietsma Holdings Pty Ltd	9,300,000	1.085
Masali Pty Ltd	9,270,177	1.081
J P Morgan Nominees Australia Limited	9,059,958	1.057
AbN Amro Clearing Sydney Nominees Pty Ltd	8,596,754	1.003
Mr Thomas David Cumming	8,000,000	0.933
Growsmart Super Fund Pty Ltd	7,400,000	0.863
Computer Visions Pty Ltd	6,372,740	0.743
Mrs Mary Curtis	5,508,000	0.642
Diamond Rock Pty Ltd	5,500,000	.642
Mr Adrian Quilter-Harvey & Ms Vanessa Krivograd <Harvey Family
S/F A/C>	5,000,000	0.583
Mr Philip Alan Smith	4,444,444	0.518
Pexxon Pty Ltd	4,070,000	0.475
Mr John Ignatious Malolakis & Mrs Christine Malolakis	4,020,000	0.469
Total Top 20 Shareholders	281,968,407	32.891

Total Top 20 Shareholders

On-market buy-back There is currently no proposal to undertake an on-market buy-back of the Company’s securities.

Company Secretary:

Mr Shane Hartwig

Company Registered Office: 4/26 Brandl Street, Eight Mile Plains QLD 4113 (07) 3219 0085 Share Registry: Boardroom Pty Limited Level 7, 207 Kent Street, Sydney. NSW 2000 1300 737 760

Stock Exchange Listing: The Company’s securities are quoted on the official list of the ASX. The ASX listing code for the Company’s securities is: Ordinary shares - ADO

ANTEO DIAGNOSTICS LIMITED ABN 75 070 028 625

ADDITIONAL ASX INFORMATION

Unquoted Securities:

(a) Employee Option Plan
The Employee Option Plan last approved by shareholders on 10[th] November 2014, provides that employees may be issued options to acquire shares in the Company. These options are not quoted on the Australian Stock Exchange. As at 21[th] August 2015 the total number of Options issued under the Employee Option Plan was 28,975,000 held by nineteen holders.
(b) Unquoted shares

There were nil unquoted fully paid ordinary shares as at 21[th] August 2015.

AI assistant

ANTEOTECH LTD — Annual Report 2015

64304_rns_2015-08-25_de78dbe4-d6f9-4cf9-8f57-83041dd80c70.pdf

Chairman’s Report

Anteo Diagnostics: at the tipping point

IVD markets surge, driven by ageing, need, cost improvements and point of care

Mix&Go provides an ideal solution

Reaching a tipping point with customers

Enhancing value through focused contribution to secondary markets

DIAsource and Anteo: The sum is greater than the parts

CEO’s Report

A significant year in the company’s history

Pursuing strategic growth

Mix&Go, consulting and product revenue on the slow rise – positioned for rapid growth

Transitioning to growth

Consolidation of Anteo team

DIAsource acquisition – a game changer

Operating and Financial Review Report

Key announcements

Operating and Financial Review Report

Financial results

Progressing our five strategic growth areas

Exploiting existing IP

Expanding core competencies and IP

Patent portfolio progress

Development of products

How the Anteo Mix&Go (AMG) Activation Kit for Multiplex Microspheres works

Exploring non-core opportunities

In-vivo applications

Anteo Energy project

Acquisition of synergistic assets

A transformative acquisition

Anteo Diagnostics Limited – Statutory Reports 2015

CONSOLIDATED ENTITY

STATUTORY REPORTS 30 JUNE 2015

CORPORATE DIRECTORY

DIRECTORS’ REPORT

DIRECTORS

Mr Mark Bouris BCom(UNSW), MCom(UNSW), Hon DBus(UNSW), Hon DLitt(UWS), F.S.A.

Chairman

Dr Geoffrey Cumming B.App.Sc, B.Sc.(Hons.), MBA, PhD, MAICD

Chief Executive Officer - Executive Director

DIRECTORS’ REPORT

COMPANY SECRETARY

PRINCIPAL ACTIVITIES

CONSOLIDATED OPERATING RESULT

DIVIDENDS PAID OR RECOMMENDED

REVIEW OF OPERATIONS

AFTER BALANCE DATE EVENTS

OPERATIONS AND FUTURE DEVELOPMENTS

ENVIRONMENTAL ISSUES

CORPORATE GOVERNANCE STATEMENT

REMUNERATION REPORT (AUDITED)

Remuneration Policy

Short term incentive (STI)

DIRECTORS’ REPORT

Executive Directors and Executives (Executives)

Non-Executive Directors

Details of Directors’ Remuneration for the Year Ended 30 June 2015

DIRECTORS’ REPORT

Emoluments of the key management personnel of the group for the Year Ended 30 June 2015

Notes regarding Directors and executive emoluments:

Details of Directors’ Remuneration for the Year Ended 30 June 2014

Emoluments of the key management personnel of the group for the Year Ended 30 June 2014

DIRECTORS’ REPORT

Performance Remuneration as a Proportion of Total Remuneration

Options Issued or Vested as Part of Remuneration for the Year Ended 30 June 2015

Employment contracts of Directors and senior executives

MEETINGS OF DIRECTORS

~~INDEMNIFYING OFFICERS OR AUDITOR~~

SHARE OPTIONS

DIRECTORS’ REPORT

PROCEEDINGS ON BEHALF OF THE COMPANY

NON-AUDIT SERVICES

AUDITOR’S INDEPENDENCE DECLARATION

Mr Mark Bouris

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

ANTEOTECH LTD Annual Report 2015

INDEMNIFYING OFFICERS OR AUDITOR