Anteris Technologies Global Corp. — Annual Report 2012

Aug 30, 2012

Appendix 4E

Preliminary Final Report

Name of entity

Allied Healthcare Group Limited

ABN 35 088 221 078

Financial year ended (“current period”)

30 June 2012

For announcement to the market

$A’000’s

For announcement to the market $A’000’s	For announcement to the market $A’000’s	For announcement to the market $A’000’s
Revenues from ordinary activities Loss from ordinary activities after tax Loss for the year attributable to members	down 4.61% up 423.23% up 411.84%	to 6,460 to (10,222) to (9.995)
Dividends	Amount per security	Franked amount per security
Final dividend proposed	NIL¢	NIL¢
Interim dividend	NIL¢	NIL¢
	2012	2011
Net Tangible Asset Backing	1.02 cents	2.31 cents

Results Commentary

RESULTS:

The operating loss after taxation of the consolidated entity for the year ended 30 June 2012 amounted to $10.22 million, compared to the previous year’s loss of $1.95 million in Allied Healthcare Group Limited (formerly bioMD Limited). The majority of the loss is attributed to the impairment of goodwill of $5.4 million. The goodwill resulted from the merger between Allied Healthcare Group Limited (formerly bioMD Limited) and Allied Healthcare Group Investments Pty Limited (formerly Allied Medical Limited). This transaction was accounted for using provisional accounting in the prior year. The fair value of intangibles from the transaction has been increased and this reduced the value of goodwill previously calculated. It was resolved by directors that the remaining balance of goodwill was impaired. This now enables the Group to look forward with minimal impairments in the future. During the period Allied also invested $2.37 million to increase its holding in Coridon. As at 30 June 2012 the Group maintained cash reserves of $2.064 million with access to an additional $3 million equity facility. The Company notes that there was an increase in consultancy fees for the year which was directly related to the regulatory submissions for marketing approval globally of the leading regenerative medicine product CardioCel® used for repair and reconstruction of congenital heart disease in children.

OPERATIONS:

Over the past 12 months Allied Healthcare Group Limited has seen a number of highlights as it continues to grow as an integrated healthcare company. The Company has now completed the integration from the merger of Allied Healthcare Group Limited and Allied Healthcare Group Investments Pty Limited. The Company has also seen the strengthening of its board with the appointment of Mr Peter Turvey as a Non-Executive Director. The Group has made considerable progress towards commercialisation of its leading product CardioCel® for the repair and treatment of heart defects caused by congenital heart disease in children and anticipates an initial marketing approval in at least one marketing jurisdiction in the next 12months.

Over the last 12 months, the Company has had a number of ASX and press releases supporting the progress being made within the Allied Healthcare Group, which can be viewed on the Company’s website www.alliedhealthcaregroup.com.au.

1

ALLIED HEALTHCARE GROUP LIMITED

Sales & Marketing Division

The Company continues to see strong sales from its sales and distribution division. For the full year Allied Healthcare Group generated $6.5 million in revenue which was down slightly for the year, primarily due to product range rationalisation and some unexpected interruptions to our supply chain for key high turnover product during the second half of the year. Our team has been working diligently with our suppliers to resolve these supply issues and along with an increasing backorder list, we are expecting to see a strong 2012/13 financial year for revenue complimented by expanding our existing product range in the Cardiology and Infusion markets. Allied currently has one of the most extensive infusion product ranges available in Australia and New Zealand and a growing Cardiology range.

Regenerative Medicine Division

The regenerative medicine franchise continues to make significant progress with a number of significant milestones achieved in the financial year plus major milestones scheduled for the coming 12 months.

Our lead Regenerative Tissue product CardioCel® is currently seeking marketing approval in Australia (TGA) and Europe (CE mark) and we expect to file for US marketing approval (FDA) by the end of the Year.

We also expect to provide updates over the next quarter on our studies relating to a pivotal heart valve reconstruction model and in pelvic floor and hernia repair. In addition, we’ve recently announced a collaboration with CSIRO, which is being supported with a grant, to study our ADAPT® tissue matrix as a vehicle to grow and deliver stem cells. The company is expecting results from the initial study with CSIRO before the end of 2012.

Next Generation DNA Vaccines

We also increased our shareholding to 44.4% last financial year in Professor Ian Frazer’s next generation vaccine group Coridon. We’re working with Ian Frazer on developing next generation vaccines to both prevent and treat infectious diseases including Cancer.

Over the past 12 months the team has progressed the Herpes (HSV-2) program towards the initial Phase I human study after generating extremely positive preclinical results which showed the HSV-2 vaccine was able to both prevent and clear the Herpes virus.

In addition, the team has also announced the initiation of an HPV (Cervical Cancer) DNA vaccine program which will focus on developing a therapeutic vaccine for the treatment of people already exposed to the disease. The Company is expecting to see initial results from preclinical studies by the end of 2012.

Annual General Meeting

No date has been set for the Annual General Meeting at this stage however the Group expects it to be held in November 2012 and will notify both the ASX and shareholders of the date once confirmed.

Audit

The financial statements on which this report is based have not been audited.

ALLIED HEALTHCARE GROUP LIMITED

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2012

Note	CONSOLIDATED 2012 $ 2011 $
Revenue from continuing operations 2 Cost of sales Gross profit Other income Administrative expenses Employee benefits 3 Consultancy fees Travel expenses Research and development costs Corporate costs Operations costs Marketing expenses Share based payments Asset write-downs 3 Impairment expense 3 Depreciation expense 3 Amortisation expense 3 Loss from equity accounting 8 Loss before income tax from continuing operations Income tax benefit/(expense) Loss for the year Total loss is attributable to: Equity holders of Allied Healthcare Group Limited Non-controlling interest 7 Loss per share from continuing operations attributable to ordinary equity holders of the Company (cents per share) 9 Basic loss per share Diluted loss per share	6,460,516 6,772,776 (3,387,402) (3,758,178)
	3,073,114 3,014,598 138,431 101,282 (445,561) (136,914) (2,892,163) (1,958,373) (1,234,048) (275,654) (474,317) (111,307) (393,720) (6,251) (312,279) (129,238) (579,999) (291,854) (137,982) (65,976) (187,453) (709,620) (112,997) (390,807) (5,756,038) (790,851) (34,220) (22,916) (241,379) - (767,162) (184,645)
	(10,357,773) (1,958,526)
	135,638 4,878
	(10,222,135) (1,953,648)
	(9,995,227) (1,952,795) (226,908) (853)
	(10,222,135) (1,953,648)
	Cents Cents (1.507) (0.990) n/a n/a

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

ALLIED HEALTHCARE GROUP LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2012

Note	CONSOLIDATED 2012 $ 2011 $
Loss for the year Other comprehensive income Total comprehensive loss Total comprehensive loss is attributable to: Equity holders of Allied Healthcare Group Limited Non-controlling interest 7	(10,222,135) (1,953,648) - -
	(10,222,135) (1,953,648)
	(9,995,227) (1,952,795) (226,908) (853)
	(10,222,135) (1,953,648)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

ALLIED HEALTHCARE GROUP LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

Note	CONSOLIDATED 2012 $ 2011 $
ASSETS Current Assets Cash and cash equivalents 10 Trade and other receivables Inventories Total Current Assets Non-Current Assets Investments accounted for using the equity method 4 Property, plant & equipment Intangibles 5 Deferred tax asset Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Provisions Income tax payable Total Current Liabilities Non-Current Liabilities Provisions Borrowings Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves (Accumulated losses)/Retained profits Capital and reserves attributable to equity holders of Allied Healthcare Group Non-controlling interest 7 TOTAL EQUITY	2,064,052 1,351,518 1,080,472 1,217,279 1,719,619 1,722,341
	4,864,143 4,291,138
	2,500,033 1,245,355 132,094 132,846 3,357,630 8,947,399 343,804 131,441
	6,333,561 10,457,041
	11,197,704 14,748,179
	398,826 808,652 213,185 160,192 12,903 24,224
	624,914 993,068
	119,330 96,624 20,013 20,054
	139,343 116,678
	764,257 1,109,746
	10,433,447 13,638,433
	20,331,475 13,925,166 837,873 459,620 (10,740,727) (745,500)
	10,428,621 13,639,286 4,826 (853)
	10,433,447 13,638,433

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

ALLIED HEALTHCARE GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2012

FOR THE YEAR ENDED 30 JUNE 2012
	Share Capital $ Share-based payments reserve $ Accumulated Losses $ Total $ Non-controlling Interest $ Total Equity $
Balance at 1 July 2010 Loss for the year Total comprehensive income Transactions with owners in their capacity as owners Issue of options Issue of convertible note Issue of shares (net of transaction costs) Shares issued for the merger of AML and AHZ Balance at 30 June 2011 Loss for the year Total comprehensive income Transactions with non-controlling interest Transactions with owners in their capacity as owners Shares issued during the period Options issued during the period Shares issued to set-up equity facility Capital raising costs Exercise of options Balance at 30 June 2012	29,914 - 1,207,295 1,237,209 - 1,237,209 - - (1,952,795) (1,952,795) (853) (1,953,648)
	- - (1,952,795) (1,952,795) (853) (1,953,648) - 459,620 - 459,620 - 459,620 210,000 - - 210,000 - 210,000 4,281,561 - - 4,281,561 - 4,281,561 9,403,691 - - 9,403,691 - 9,403,691
	13,925,166 459,620 (745,500) 13,639,286 (853) 13,638,433 - - (9,995,227) (9,995,227) (226,908) (10,222,135)
	- - (9,995,227) (9,995,227) (226,908) (10,222,135) - - - - 232,587 232,587 6,387,777 - - 6,387,777 - 6,387,777 - 187,453 - 187,453 - 187,453 - 190,800 - 190,800 - 190,800 (425,561) - - (425,561) - (425,561) 444,093 - - 444,093 - 444,093
	20,331,475 837,873 (10,740,727) 10,428,621 4,826 10,433,447

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

ALLIED HEALTHCARE GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE YEAR ENDED 30 JUNE 2012

Note	CONSOLIDATED 2012 $ 2011 $
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payment to suppliers Income taxes paid Interest paid Interest received NET CASH OUTFLOW FROM OPERATING ACTIVITIES 10 CASH FLOWS FROM INVESTING ACTIVITIES Cash acquired on acquisition of subsidiaries 1 Payments for property, plant & equipment Payments for intangible assets Payments for equity accounted investment NET CASH OUTFLOW FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share or options issues Share issue transaction costs Transactions with non-controlling interest Interest paid NET CASH INFLOW FROM FINANCING ACTIVITIES NET INCREASE / (DECREASE) IN CASH HELD CASH AT BEGINNING OF THE YEAR CASH AT END OF THE YEAR	6,699,697 6,483,538 (10,162,059) (7,931,204) (88,046) (46,310) (10,209) - 24,863 23,060
	(3,535,754) (1,470,916)
	- 421,934 (33,468) (96,516) (59,488) - (2,370,000) (1,150,000)
	(2,462,956) (824,582)
	6,831,870 3,394,138 (353,213) (125,651) 232,587 - - -
	6,711,244 3,268,487
	712,534 972,989
	1,351,518 378,529
	2,064,052 1,351,518

The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

1. BUSINESS COMBINATIONS

Allied Healthcare Group Limited acquisition

On 24 June 2011, the reverse takeover of Allied Healthcare Group became compulsory. Allied Healthcare Group Limited acquired 100% of the issued capital of Allied Medical Limited, a medical product distribution business, for a purchase consideration of 70% of issued capital on completion of the transaction.

In accordance with AASB 3 “Business Combinations”, when Allied Healthcare Group Limited (legal parent) acquired Allied Medical Limited, the acquisition was deemed to be a reverse acquisition since the substance of the transaction is that the existing shareholders of Allied Medical Limited have effectively acquired Allied Healthcare Group Limited. Through acquiring 100% of the issued capital of Allied Medical Limited, the Group has obtained legal control of the company. The shareholders of Allied Medical Limited have become the accounting parent for the Group.

The acquisition is part of the Group’s overall strategy to expand its distribution operations to continue funding new medical technologies.

The purchase was satisfied by the issue of 32 ordinary shares for every Allied Medical share held.

Purchase consideration: — equity issued (136,285,381 shares at $0.069 per share) — cash at bank Less: Receivables (i) Property, plant and equipment Intangibles (ii) Payables Identifiable assets acquired and liabilities assumed Goodwill (iii)	Acquiree’s Carrying Amount $ 3,100 22,920 39,521 (389,884)	Fair Value $ 9,403,691 (820,156)
		8,583,535
		3,100 22,920 3,539,521 (389,884)
	(324,343)	3,175,657
		5,407,878

i. The directors believed the receivables were fully recoverable and no provision for impairment is required.

ii. The directors obtained an independent valuation of the intellectual property held in Celxcel Pty Ltd at the time of acquisition. The valuation of the ADAPT tissue engineering technology has increased the fair value calculated for intangibles at 30 June 2011 by $3.5 million. This in turn caused a reduction in the goodwill value.

iii. The goodwill was attributable to Allied Healthcare Group’s strong research position with the ADAPT tissue engineering. Directors agreed that as the transaction has only just completed an impairment test was not been completed at 30 June 2011. An impairment test was completed on 24 June 2012. The remaining value of goodwill after the revaluation of the intellectual property is considered impaired. Refer Note 5.

No amount of goodwill is deductible for tax purposes.

Loss and revenue resulting from the acquisition of Allied Healthcare Group Limited amounting to $19,246 and $Nil respectively are included in the consolidated statement of comprehensive income for the year ended 30 June 2011.

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

2. REVENUES

	CONSOLIDATED 2012 $ 2011 $
Revenue from continuing operations Finance revenue Total revenue from continuing operations Breakdown of Finance Revenue: Bank interest	6,435,653 6,749,716 24,863 23,060
	6,460,516 6,772,776
	24,863 23,060

3. EXPENSES

Note	CONSOLIDATED 2012 $ 2011 $
Loss before income tax includes the following specific expenses: Consultancy costs Rental expense relating to operating leases Depreciation Amortisation 5 Plant & equipment Research and development costs Write-down of inventory Bad debt expense Total Asset write-down Impairment of assets: Investment 8 Intangibles – patents 5 Total impairment losses Employee benefits expense Wages and salaries Superannuation Leave provisions Other benefits	1,234,048 275,654 34,220 22,916 241,379 - - - 393,720 - 79,356 356,867 33,641 33,940
	112,997 390,807
	348,160 - 5,407,878 790,851
	5,756,038 790,851
	2,405,503 1,612,657 205,584 132,028 171,126 109,396 109,950 104,292
	2,892,163 1,958,373

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

4. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	CONSOLIDATED 2012 $ 2011 $
Shares in associate (note 8) 5. INTANGIBLE ASSETS	2,500,033 1,245,355
	CONSOLIDATED 2012 $ 2011 $
Patents Intellectual property Goodwill (Note 1) Reconciliation - Patents Opening net book value Additions - acquisitions Impairment charge Closing net book value Reconciliation – Intellectual property Opening net book value Additions – acquisitions (valuation Celxcel ADAPT technology) Accumulated amortisation Closing net book value Reconciliation – Goodwill Opening net book value Additions – Medevco Additions – Allied Healthcare Group Impairment charge Closing net book value	99,009 39,521 3,258,621 3,500,000 - 5,407,878
	3,357,630 8,947,399
	39,521 - 59,488 39,521 - -
	99,009 39,521
	3,500,000 - - 3,500,000 (241,379) -
	3,258,621 3,500,000
	5,407,878 - - 790,851 - 5,407,878 (5,407,878) (790,851)
	- 5,407,878

Goodwill recognised on the acquisition of Medevco has been impaired due to the cancelling of patents over the speculum technology as this is no longer expected to become a cash generating unit.

The fair value of patents and goodwill from Allied Healthcare Group transaction were calculated on 24 June 2011. In the current year the directors obtained an independent valuation of the intellectual property held in Celxcel Pty Ltd at the time of acquisition. The valuation of the ADAPT tissue engineering technology has increased the fair value calculated for intangibles at 30 June 2011 by $3.5 million. This in turn caused a reduction in the goodwill value. The remaining value of goodwill after the revaluation of the intellectual property is considered impaired.

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

6. CONSOLIDATED ENTITIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance with the accounting policy.

Name of entity Class of share Country of Incorporation Equity Holding 2012 % 2011 % Accounting Parent Entity Allied Medical Limited Australia 100 100 Legal Parent Entity Allied Healthcare Group Limited Ordinary Australia - - Controlled Entities Innovative Medical Technologies (IMT) Limited Ordinary New Zealand 100 100 Medevco Pty Limited Ordinary Australia 100 100 Celxcel Pty Limited Ordinary Australia 78.2 77.35

Cost to Company 2012 $ 2011 $ 29,551,042 29,551,042 - - 1 1 847,423 847,423 1,093,048 112,388

31,491,514 30,510,854

The proportion of ownership interest is equal to the proportion of voting power held. For acquisitions refer note 1.

7. NON-CONTROLLING INTEREST

	CONSOLIDATED 2012 $ 2011 $
Interest in: Share Capital Accumulated losses	232,587 - (227,761) (853)
	4,826 (853)

During the period, the non-controlling interest in Celxcel Pty Ltd resulted in an adjustment of $227,761 to accumulated losses and $232,587 to share capital due to right issue during the year. (2011: $853 accumulated losses).

8. INVESTMENTS IN ASSOCIATES

	CONSOLIDATED 2012 $ 2011 $
(a) Movements in carrying amounts: Carrying amount at the beginning of the financial year Investment during year Impairment charge Share of profit/(loss) after income tax Carrying amount at the end of the financial year	1,245,355 - 2,370,000 1,430,000 (348,160) (767,162) (184,645)
	2,500,033 1,245,355

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

8. INVESTMENTS IN ASSOCIATES (continued)

(b) Summarised financial information of associates

The group's share of the results of its principal associates and its aggregated assets (including goodwill) and liabilities are as follows:

			Company’s	share of:
	Ownership	Assets	Liabilities	Revenues	Profits/(Loss)
	Interest	$	$	$	$
	%
2012
Coridon Pty Limited	44.4	2,412,877	38,756	22,208	(767,162)
2011
Coridon Pty Limited	23.84	1,318,675	94,930	2,054	(184,645)
All of the above associates are incorporated in Australia.
(c) Fair value of unlisted investments in associates
				2012	2011
				$	$
Coridon Pty Limited				2,500,033	1,245,355

(d) Contingent liabilities of associates

No contingent liabilities noted.

9. EARNINGS PER SHARE

	CONSOLIDATED 2012 Number 2011 Number
(a) Weighted Average Number of Shares Used as the Denominator Weighted average number of ordinary shares used in the denominator in calculating basic earnings per share Adjustment for calculation of diluted earnings per share: Options Weighted average number of ordinary shares used in the denominator in calculating diluted earnings per share (b) Earnings Used in Calculating Earnings/(Loss) Per Share Basic earnings/(loss) per share Diluted earnings/(loss) per share	663,193,947 197,364,099
	- -
	n/a n/a
	Cents Cents (9,995,227) (1,952,795) (1.507) (0.990) n/a n/a

(c) Information concerning classification of securities

Options:

No listed or unlisted options of Allied Healthcare Group Limited have been included in the determination of basic earnings/(loss) per share because all options on issue have an exercise price above the market share price of the Company as at year end.

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

10. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

	CONSOLIDATED 2012 $ 2011 $
(a) Reconciliation to Cash at the End of the Year Cash at bank and in hand Total cash at the end of the year (b) Cash at Bank and On Hand	2,064,052 1,351,518
	2,064,052 1,351,518

These are interest bearing accounts held at bank with average interest rates of 0.15%. (2011:0.15%)

(c) Deposits At Call

The deposits bear floating interest rates at 4.75% pa. (2009: 3.12%)

The deposits have an average maturity of 30 days.

(d) Reconciliation of Loss After Income Tax to Net Cash Outflow from Operating Activities Loss for the year Depreciation/Amortisation expense Inventory write-down Bad debts Impairment charge Non-cash share expense – share based payments Loss on associate Share issue costs (Finance activities) Accrued interest Change in operating assets and liabilities, net of effects from purchase of controlled entity: Decrease/increase) in receivables Decrease in inventories (Increase)/decrease in net tax asset Increase in deferred tax Decrease in creditors Increase in other provisions Net cash outflow from operating activities

(10,222,135) (1,953,648) 275,599 22,916 79,356 356,867 33,641 33,940 5,756,038 790,851 187,453 709,620 767,162 184,645 118,452 125,651 - - 103,166 (128,872) 2,722 520,042 (11,321) 67,786 (212,363) (118,974) (584,650) (2,191,136) 171,126 109,396

(3,535,754) (1,470,916)

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2012

11. SEGMENT REPORTING

a. Description of segments

Segment information is presented using a management approach, i.e. segment information is provided on the same basis as information as used for internal reporting purposes by the chief operating decision makers (board of directors that make key strategic decisions).

Management has determined that there are two identifiable reportable segments as follows:

• Disposable medical product and medical devices distribution; and

• Bioimplants operations of Celxcel Pty Ltd.

• b. Segment information

	Medical products & devices	Medical products & devices	Bioimplants	Bioimplants	Total	Total
	2012	2011	2012	2011	2012	2011
	$	$	$	$	$	$
Total segment revenue	6,435,653	6,749,716	-	-	6,435,653	6,749,716
Segment profit/(loss)	267,698	(1,977,384)	(1,127,708)	(2,885)	(860,010)	(1,980,269)
Segment assets	3,863,587	4,913,634	304,401	161,281	4,167,988	5,074,915
Segment liabilities	477,432	753,143	14,065	43,329	491,497	796,472
Other information
Acquisition of non-current	23,130	127,640	10,338	-	33,468	127,640
assets
Depreciation	29,040	22,741	3,001	111	32,041	22,852
Asset write-down	112,997	390,807	-	-	112,997	390,807
Loss from equity accounting	-	184,645	-	-	-	184,645
Share-based payments	-	709,620	-	-	-	709,620
Impairment of intangibles	-	790,851	-	-	-	790,851

(c) Other segment information

(i) Segment revenue

Sales between segments are carried out at arm’s length and are eliminated on consolidation.

Segment revenue reconciles to total revenue from continuing operations as follows:

	CONSOLIDATED 2012 $ 2011 $
Segment revenue Interest revenue Total revenue from continuing operations	6,435,653 6,749,716 24,863 23,060
	6,460,516 6,772,776

ALLIED HEALTHCARE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 30 JUNE 2011

12. SEGMENT REPORTING (continued)

(ii) Segment result

Performance is measured based on segment result before tax.

The reconciliation of segment information to loss before income tax from continuing operations is as follows:

	CONSOLIDATED 2012 $ 2011 $
Segment loss Unallocated: Depreciation Amortisation Loss from equity accounting Share-based payments Impairment of intangibles Other administration (expenses)/benefits Loss before income tax from continuing operations	(860,010) (1,980,269) (2,179) (64) (241,379) - (767,162) - (187,453) - (5,756,038) - (2,543,551) 21,807
	(10,357,773) (1,958,526)

(iii) Segment assets and liabilities

Segment assets and liabilities are those that are directly attributable to a segment and the relevant portion that can be allocated to the segment on a reasonable basis.

Segment assets include all assets used by the segment and consist primarily of operating cash, receivables, property, plant and equipment and other intangible assets.

Segment liabilities consist primarily of creditors, employee benefits and borrowings.

Reportable segment assets reconciled to total assets as follows:

	CONSOLIDATED 2012 $ 2011 $ 4,167,988 5,074,915 1,983,146 - 1,603,268 701,310 4,815 3,100 1,659 3,838 176,463 - 3,260,365 8,965,016 11,197,704 14,748,179 491,497 796,472 - - 52,375 243,583 - 41 162,767 57,618 69,650
Segment assets Intersegment eliminations Unallocated: Cash and cash equivalents Trade and other receivables Property, Plant & Equipment Deferred tax asset Intangibles Total assets per the statement of financial position Reportable segment liabilities reconciled to total liabilities as follows: Segment liabilities Intersegment eliminations Unallocated: Trade and other payables Borrowings Income tax provision Provisions Total liabilities per the statement of financial position
	764,257 1,109,746