BPH ENERGY LTD — Annual Report 2018

Sep 2, 2018

BPH Ener Limited gy

Appendix 4E - Preliminary Final Report

Name of Entity	BPH Energy Limited
ABN	41 095 912 002
Financial Year Ended	Year ended 30 June 2018
Previous Corresponding Reporting Period	Year ended 30 June 2017

Results for announcement to the market

Results for announcement to the market
		$A'000
Revenues from ordinary activities Net (loss) from ordinary activities after tax attributable to members (i) (2017: $2,508,646 loss) Net (loss) for the period attributable to members (2017: $2,508,646 loss)	Up 8.7% Down 40.0% Down 40.0%	to 236 to (1,506) to (1,506)
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	Nil Nil	Nil Nil
Previous corresponding period	Nil	Nil

(i) Net loss from ordinary activities after tax is after recognising a $1,003,001 fair value loss (2017: loss of $1,308,563) and $311,680 consulting and legal costs (2017: $285,065)

Ratios

Loss before tax / revenue Consolidated loss from ordinary activities before tax as a percentage of revenue	639%	1,173%
Loss after tax / equity interests Consolidated net loss from ordinary activities after tax attributable to members as a percentage of equity (similarly attributable) at the end of the period	42.3%	58.0%
Net tangible asset backing per ordinary security (cents per share)	0.4	0.7

Details of Associates

Name of Entity	Percentage Held	Percentage Held	Share of Net (Loss)	Share of Net (Loss)
	Current Period	Previous Period	Current Period ($)	Previous Period ($)
Advent Energy Ltd (i)	-	-	-	(48,049)
Molecular Discovery Systems Limited	20	20	(28,500)	(42,306)
Aggregate Share of Net (Losses)			(28,500)	(90,355)

Note (i): as of 1 January 2017 a judgement was made that, despite a shareholding of 27%, the Company no longer exercised significant influence over Advent Energy Ltd as required by the accounting standards and therefore it has ceased to be treated as an associate of BPH Energy Limited from that date.

Commentary on Results

The consolidated entity has reported an unaudited net loss after tax for the year ended 30 June 2018 of $1,506,758 (2017: loss of $2,544,301) and has a net cash outflow from operating activities of $488,222 (2017: outflow of $517,680). The consolidated entity has a working capital deficit of $1,101,201 (2017: deficit $1,084,626). The net assets of the consolidated entity decreased by $824,514 to $3,561,815 at 30 June 2018. Included in trade creditors and payables is director fee accruals and accrued director consultant fees payable of $1,265,496 (2017: $1,220,767) for both current and past directors.

The loss for the year is after recognising a $1,003,001 fair value loss (2017: loss of $1,308,563) and $311,680 consulting and legal costs (2017: $285,065).

Capital raisings

In January 2018 BPH issued 366,485,400 shares at $0.002 per share under a Rights Issue and associated share shortfall satisfied by $566,940 in cash and debt extinguishment of $166,031.

In April 2018 BPH issued 11,000,000 shares at $0.002 per share in lieu of cash payment for services rendered.

Board changes

During the period BPH announced the appointed of Mr Tony Huston and Mr Charles Maling to its board following the resignations of Mr Bruce Whan and Tom Fontaine.

Developments in the Company’s investments include:

Cortical Dynamics Ltd (“Cortical”)

BPH investee Cortical announced a number of developments during the period which included:-

• On 18 October 2017 BPH confirmed a European trial with Hôpital Foch in Paris, France. The arrangement with Hôpital Foch was the second installation of the BAR Monitor technology internationally (after New Zealand) and the first for Cortical in Europe.

• On 14 November 2017 BPH advised of the appointment of Reno Wright Smith & Partners (“RWS”) to undertake marketing activities to assist Cortical to enter the European market with the Brain Anaesthesia Response (“BAR”) monitor technology. RWS, based in Chicago, Illinois, are specialists in commercialisation for early stage medical technologies. The RWS President, David Smith, has a background in medical device marketing & general management for 25+ years including with Coopervision, Carl Zeiss, Biocompatibles International plc, Cohesion Technologies, Tenaxis Medical Inc & Device Technologies Australia

• On 20 November 2017 BPH advised of the appointment of Dr Bruce Whan as Corporate Development Director to assist to further the development of Cortical. Bruce Whan has a background in industry covering a range of research, operations and management positions, including the management of innovation and commercialisation of R&D, in particular from the public research sector. He was Director of Swinburne University of Technology’s commercialisation unit for 12 years and a member of the Commercialisation Australia board.

• On 13 December 2017 BPH confirmed the European Patent Office had granted a further patent titled, ‘EEG Analysis System’.

• On 14 December 2017 BPH advised that the Cortical BAR Monitor was being used in evaluation trials in a further major hospital in Melbourne. This is the second installation of the BAR Monitor technology in Melbourne, with further units being evaluated in Queensland, and internationally in New Zealand and Europe.

• On 22 December 2017 BPH advised that investee Cortical was to be further evaluated in a Sydney hospital in 2018. These trials introduce the BAR Monitor to a number of anaesthetists to assess its

function, which in turns assists Cortical to better understand how best to address the needs of the market, underpinning its marketing campaign.

• On 16 January 2018 BPH advised that that the Cortical BAR Monitor was being used in a set of evaluation trials in a further Melbourne hospital.

• On 19[th] April BPH advised that Cortical had signed an agreement for the distribution of its BAR Monitor in South Korea. The distribution agreement arose as a result of an invitation by Austrade to attend and present at the Austrade Korean Medtech Innovation Showcase.

• On 29[th] April BPH advised that Cortical had signed its first European Distribution agreement covering the BARM for the Benelux Countries of Belgium, Netherlands and Luxembourg . Cortical will initially focus on the Total Intravenous Anaesthesia (“TIVA”) market within Europe. TIVA provides a method of inducing and maintaining general anaesthesia intravenously without the use of any inhalation agents.

MEC Resources Limited (“MEC”) / Advent Energy Ltd (“Advent”)

• The 2018 MEC half year financial report to 31 December 2017 released on 27[th] Feb 2018 confirmed that the MEC subsidiary Advent Energy had (spending) commitments”…“for its exploration permits of $4,497,500 over the next 12 months” in order to maintain tenure. (In the 2017 MEC Annual Report an amount was confirmed of $2.5m of required permit compliance expenditures to retain EP386).

• On 21 July 2017 MEC announced the withdrawal of its statutory demand against BPH prior to a settlement conference between MEC, BPH and GBA to seek a global resolution of the respective legal disputes.

• On 1 September 2017 BPH received a writ from MEC Resources Ltd for an amount of $270,000 plus interest and costs and then received on 2 October 2017 an application for summary judgement in relation to this claim. The application by MEC for summary judgement was heard in December 2017 in the District Court of Western Australia. The summary judgement application decision in the claim by MEC Resources Ltd for $270,000 plus interest and costs was handed down on 23 February 2018. The MEC application was dismissed by the court. BPH disputes the basis of the claim by MEC and its interest claims, and BPH asserts that there has not been an Event of Default and that the loan is not due and owing. BPH had previously advised the market on 4[th] July that it has a claim against MEC of $388,050 plus interest and costs and has advised it will continue to pursue this matter.

• On 12 October 2017 MEC announced the appointment of a specialist firm to assist in finding joint venture partners for 3D seismic for PEP11.No announcement on any partner from this appointment has been made to date.

• On 5 December 2017 MEC announced a conditional Farmin with RL Energy Ltd a company controlled by Greg Channon, who until immediately prior to the announcement was a director of Advent Energy.

• On 8[th] January 2018 MEC announced that an extension of the PEP11 permit had been granted until 2021.The drilling of a well in PEP11 is a confirmed year 4 minimum commitment as set out in that announcement with this program to be completed by 12/02/2020 prior to a 3D seismic survey of 500 sq km .

• A further announcement on 8[th] confirmed Advent was planning the plug and abandonment of the three Bonaparte Basin wells Waggon Creek, Vienta and Weaber in the 2018 dry season .This has not occurred. In the MEC prospectus lodged with ASIC on 16 May it was advised that a well management plan, environmental plan and safety case must be submitted to the DMIRS by 28[th] September for the decommissioning of Waggon Creek-1 and Vienta -1 wells.

• On 15 February 2018 MEC was placed in a trading halt after the ASX had asked a series of questions by letters dated 31 January 2018 and 9 February 2018. MEC confirmed in a letter dated 14 February 2018 and released on 15[th] February in relation to RL Energy that: “there can be no certainty that the provision of funding to finalise the phase 2 3D seismic works will be finalised ” (page 2) and “in respect of the 3D seismic works..the second phase “(the 3d seismic works) “will be subject to RL Energy securing funding at the relevant time “(Page 1)

• On 19 Feb 2018 MEC announced that the 3D farmin transaction with RL Energy, a company controlled by previous Advent Director Greg Channon’s family company, would need MEC shareholder approval under ASX Listing Rule 10. Mr Channon’s company would, under the proposed agreement, earn an unspecified percentage interest in the PEP11 permit by funding the 3D project only up to a maximum of $4m. MEC has previously estimated the cost of this 500 sq km of 3D at least up to $8m.

• On 23 February 2018 MEC announced that the 2D seismic survey in PEP11, at the Baleen drill prospect, was now planned for April 2018.

• On 28[th] March 2018 BPH announced it had served Notices of Demand on MEC Resources and Advent Energy for outstanding loans of $225,486 and $164,744 respectively and on 4 April 2018 writs were issued against MEC and Advent for these amounts .The total amounts claimed against MEC and its subsidiaries by both BPH and GBA is $820,661.A statement of claim in the District Court of Western Australia in this matter was lodged on 6[th] June 2018.

• On the 6th July 2018 MEC announced it had increased its holding in Advent to 50% from 47%.

Advent Energy Ltd (BPH 25.44 % Direct)

The information in this section contains material extracted from the ASX announcements of MEC Resources Limited (ASX: MMR), the major shareholder in Advent Energy Ltd.

(i) PEP 11

PEP11 , offshore Sydney Basin adjacent to Newcastle-Sydney offshore New South Wales, is held 85% and operated by Asset Energy Pty Ltd (“Asset”), a wholly owned subsidiary of Advent Energy Ltd (“Advent”).

PEP11 holds significant structural targets potentially capable of comprising multi-Tcf natural gas resources. The offshore Sydney Basin has been lightly explored to date, including a multi-vintage 2D seismic data coverage and a single exploration well, New Seaclem-1 (2010). Its position as the only petroleum title offshore New South Wales provides a significant opportunity should natural gas be discovered in commercial quantities in this petroleum title. It lies adjacent to the Sydney-Newcastle region and the existing natural gas network servicing the east coast gas market.

Advent’s two core prospects in PEP11 have previously been calculated via external assessment to have the potential for un-risked (P50) prospective gas resources of 472 and 2,131 billion cubic feet (“BCF”) respectively, with multi-trillion cubic feet upside (“multi-TCF”, Pmean). This resource assessment was originally comprised within the independent expert report disclosed to the ASX on 22 December 2010 and has not materially changed since that date.

On 24 November 2017 the Advent AGM presentation ‘Strategic Summary: Tactics to Success ‘confirmed the strategy of “Complete current 2D seismic commitment to deliver shallow hazard survey work …to deliver ‘drill ready’ gas prospect ..and.. actively pursue farm-out ..for early drilling, capturing near-term rig availability off Australia’s coast.”

On 10 January 2018 MEC announced the acceptance by NOPSEMA of the Baleen 2D High Resolution Seismic Plan. This approval process took approximately 7 months for a seismic program with a primary survey area of just 9 square km.

The proposed PEP11 3D seismic program is for an area of 500 sq km (Refer 8[th] Jan 2018). The anticipated operational area for a seismic survey of 500 sq km is 2500 sq km. The whale migration period offshore NSW is between May to November which will exclude seismic operations during this time.

In April 2018 Advent undertook a high resolution 2D seismic data over the Baleen prospect designed to evaluate (amongst other things) shallow geohazard indications including shallow gas accumulations that can affect future potential drilling operations. On the 19[th] April it was announced that processing of this 2D data would take approximately 2 months .No announcement about the processing has been made to date.

It is a drilling prerequisite that a site survey is made prior to drilling at the Baleen location.

(ii) EP386 and RL1

EP386 and RL1 are held by Advent’s 100% subsidiary Onshore Energy Pty Ltd. The petroleum titles lie in the onshore Bonaparte Basin, one of Australia’s most prolific hydrocarbon producing basins. The petroleum wells Waggon Creek-1, Vienta-1 (EP386) and Weaber-4 (RL1) are cased and suspended.

On 29 March 2018 an Instrument of Direction was issued by the WA Department of Mines under S.95(1) of the Petroleum and Geothermal Energy resources Act 1967 to Onshore Energy Pty Ltd a wholly owned subsidiary of Advent Energy Ltd. The Instrument of Direction is available on the WA Govt. website and relates to Waggon Creek and Vienta wells in EP386 in the onshore Bonaparte Basin in WA. The Instrument of Direction to plug and abandon the wells must be completed by March 2020 .The wet season means this work must be completed during mid-year 2019.

On 3[rd] April 2018 MEC announced a two year extension to the EP386 permit to enable this work to be completed.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Note Revenue from ordinary activities 1 Other income 1 Share of associates’ loss Impairment charge 2 Fair value loss 2 Write back of loan Interest expense Administration expenses Provision against loans Consulting and legal expenses Depreciation 2 Employee expenses 2 Insurance expenses Service Fees Other expenses Loss before income tax Income tax expense 3 Loss for the year Other comprehensive income: Items that will not be reclassified subsequently to profit and loss Reclassification of revaluation reserve (net of tax) Other comprehensive loss (net of tax) Total comprehensive loss for the period Loss attributable to non-controlling interests Loss attributable to members of the parent entity Total comprehensive loss attributable to owners of the Company Total comprehensive loss attributable to non-controlling interests Earnings per share Basic and diluted loss per share (cents per share) 4	Consolidated 2018 $ 2017 $
	235,824 216,925 3,720 - (28,500) (90,355) - (72,454) (1,003,001) (1,308,563) - 61,312 (1,805) (28,726) (65,591) (191,584) (77,155) (551,167) (311,680) (285,065) - (22) (101,608) (128,931) (17,960) (18,593) (128,640) (140,335) (10,362) (6,743)
	(1,506,758) (2,544,301) - -
	(1,506,758) (2,544,301)
	- (15,015,000)
	- (15,015,000)
	(1,506,758) (17,559,301)
	(918) (35,655)
	(1,505,840) (2,508,646)
	(1,505,840) (17,523,646)
	(918) (35,655)
	(0.20) (0.59)

The accompanying notes form part of and should be read in conjunction with these financial statements

6

NOTES TO THE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

1. Revenue Revenue Interest revenue: other entities Interest revenue : cash accounts Other income Loan establishment fees 2. Expenses Included in loss for the year Depreciation Employee costs - Director fees - Share based payments other than directors - Share based payments to directors Total employee costs Impairment charge Intangibles Fair value loss Advent Energy Limited 3. Income Tax Expense (a) The prima facie tax on (loss) from operations before income tax is reconciled to the income tax as follows: Accounting (loss) before tax Prima facie tax benefit on loss from operations before income tax at 27.5% (2017: 27.5%) Add tax effect of: Tax benefit of revenue losses and temporary differences not recognised Income tax expense		Consolidated 2018 $ 2017 $ 233,455 213,219 2,369 3,706 235,824 216,925 3,720 - 3,720 - - 22
		100,174 123,058 - 193 1,434 5,680
		101,608 128,931
		- 72,454
		- 72,454
		(1,003,001) (1,308,563)
		(1,003,001) (1,308,563)
		(1,506,758) (2,544,301) (414,358) (699,683) 414,358 699,683 - -

7

NOTES TO THE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

4. Earnings per Share (“EPS”)

Earnings per Share (“EPS”)
Total earnings per share attributable to ordinary equity holders of the Company Earnings used in the calculation of basic earnings per share and diluted earnings per share For basic and diluted Earnings Per Share (cents per share) From continuing operations Total basic earnings per share and diluted earnings per share Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS and diluted EPS	Consolidated 2018 $ 2017 $
	(1,505,840) (2,508,646)
	(1,505,840) (2,508,646)
	(0.20) (0.59)
	(0.20) (0.59)
	Number 742,486,388 Number 426,024,411

The Company’s potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these options will result in a decreased net loss per share.

8

STATEMENT OF FINANCIAL POSITION

		Consolidated	Consolidated
	Note	2018 $	2017 $
Current Assets
Cash and cash equivalents	1	447,214	613,658
Trade and other receivables	2	19,658	25,059
Financial assets	4	165,058	165,058
Other current assets	3	4,051	17,960
Total Current Assets		635,981	821,735
Non-Current Assets
Financial assets	4	4,284,920	5,064,359
Investments in associates	6	464,547	493,047
Property, plant and equipment	5	-	-
Total Non-Current Assets		4,749,467	5,557,406
Total Assets		5,385,448	6,379,141
Current Liabilities
Trade and other payables	7	1,323,541	1,284,910
Financial liabilities	8	413,641	621,451
Total Current Liabilities		1,737,182	1,906,361
Non-Current Liabilities
Financial liabilities	8	86,451	86,451
Total Non-Current Liabilities		86,451	86,451
Total Liabilities		1,823,633	1,992,812
Net Assets		3,561,815	4,386,329
Equity
Issued capital	9	44,135,442	43,454,632
Reserves	10	494,014	492,580
Accumulated losses		(40,908,066)	(39,402,226)
Non-controlling interest		(159,575)	(158,657)
Total Equity		3,561,815	4,386,329

The accompanying notes form part of and should be read in conjunction with these financial statements

9

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

1. Cash and Cash Equivalents Cash at bank and in hand 2. Trade and Other Receivables Current Other receivables 3. Other Assets Current Other assets 4. Financial Assets Current Unsecured loans to other entities: MEC Resources Ltd Advent Energy Ltd Non - current Secured loans to other entities: Cortical Dynamics Limited Molecular Discovery Systems Limited Available for sale financial assets at fair value: Investments in unlisted entities - Cortical Dynamics Limited Investments in unlisted entities – Advent Energy Ltd		Consolidated 2018 $ 2017 $ 447,214 613,658 447,214 613,658 19,658 25,059 19,658 25,059 4,051 17,960 4,051 17,960 2,494 2,494 162,564 162,564
		165,058 165,058
		2,129,971 1,906,409 - - 148,949 148,949 2,006,000 3,009,001
		4,284,920 5,064,359

10

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

5. Property, Plant and Equipment Plant and equipment: At cost Accumulated depreciation Net carrying value (a) Movements in Carrying Amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Plant and equipment Balance at the beginning of the year Depreciation expense Carrying amount at the end of the year 6. Investments Accounted for Using the Equity Method Shares in associates Molecular Discovery Systems Limited (a) Movements in carrying amounts Advent Energy Ltd: Balance at the beginning of the year Share of associate loss for the year Transfer to financial assets (i) Balance at end of the year Molecular Discovery Systems Limited: Balance at the beginning of the year Share of associate loss for the year Balance at end of the year Notes:			Consolidated 2018 $ 2017 $ 41,486 41,486 (41,486) (41,486)
			- -
			- 22 - (22)
			- -
			464,547 493,047 464,547 493,047 - 19,380,613 - (48,049) - (19,332,564)
			- -
			493,047 535,353 (28,500) (42,306)
			464,547 493,047

(i) As of 1 January 2017 a judgement was made that, despite a shareholding of 27%, the Company no longer exercised significant influence over Advent Energy Ltd as required by the accounting standards and therefore it has ceased to be treated as an associate of BPH Energy Limited from that date.

11

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)
rade and Other Payables Current Trade payables Sundry payables and accrued expenses	Consolidated 2018 $ 2017 $
	29,305 33,823 1,294,236 1,251,087
	1,323,541 1,284,910

7. Trade and Other Payables

8. Financial Liabilities

Current Borrowings – unsecured Non-Current Borrowings – unsecured 9. Issued Capital 966,187,417 (2017: 588,702,017) fully paid ordinary shares The Company has no authorised capital and the issued shares do not have a par value.		413,641 621,451 413,641 621,451 86,451 86,451 86,451 86,451 Consolidated 2018 $ 2017 $ 44,135,412 43,454,632

(a) Ordinary Shares

At the beginning of reporting period Shares issued for cash Shares issued for cash at closure of share purchase plan Share issue costs Shares issued in lieu of consulting fees Shares issued as set-off against loans payable At reporting date	Consolidated 2018 $ 2017 $	Consolidated 2018 Number 2017 Number
	43,454,632 41,828,904 566,940 1,425,462 - (69,000) (74,161) (112,772) 22,000 87,000 166,031 295,038 44,135,442 43,454,632	588,702,017 235,766,727 283,469,930 283,390,265 - - - - 11,000,000 10,537,290 83,015,470 59,007,735
		966,187,417 588,702,017

Fully paid ordinary shares carry one vote per share and carry the right to dividends. The market price of the Company's ordinary shares at 30 June 2018 on ASX was 0.1 cents per share.

12

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

10. Reserves Option Reserve (a)	Consolidated 2018 $ 2017 $
	494,014 492,580
	494,014 492,580

(a) Option Reserve

The option reserve records items recognised as expenses on the valuation of director and employee share options. Reconciliation of movement: Opening balance Share based payments Closing balance	492,580 486,707 1,434 5,873
	494,014 492,580

13

STATEMENT OF CASHFLOWS

Note Cash flows from operating activities Payments to suppliers and employees Interest received Interest paid Net cash used in operating activities 1 Cash flows from investing activities Loans to related parties Investment in unlisted entity Net cash used in investing activities Cash flows from financing activities Proceeds from issue of securities (net of share issue costs) Repayment of borrowings Net cash provided by financing activities Net (decrease) / increase in cash held Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 1	Consolidated 2018 $ 2017 $
	(489,253) (519,206) 2,836 3,706 (1,805) (2,180)
	(488,222) (517,680)
	(68,000) (4,000) - (100,000)
	(68,000) (104,000)
	492,778 1,243,690 (103,000) (120,000)
	389,778 1,123,690
	(166,444) 502,010 613,658 111,648
	447,214 613,658

The accompanying notes form part of and should be read in conjunction with these financial statements.

14

NOTES TO THE STATEMENT OF CASH FLOWS

1. Cash Flow Information (a) Reconciliation of cash flow from operations with loss after income tax: Operating loss after income tax Non-cash items: Depreciation and amortisation Interest revenue on loans Write back of loan Fair value loss Impairment charge Share based payment expense Provision against loans Interest expense on loans Share of Associates’ losses Shares issued in lieu of third party fees Changes in net assets and liabilities, Decrease in other assets Decrease / (increase) in trade and other receivables Increase in trade payables and accruals Net cash (used in) operating activities (b) Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash and cash equivalents			Consolidated 2018 2017 $ $
			(1,506,758) (2,544,301) - 22 (232,714) (213,219) - (61,312) 1,003,001 1,308,563 - 72,454 1,434 5,873 77,155 551,167 - 26,545 28,500 90,355 22,000 87,000 13,909 6,457 5,401 (16,904) 99,850 169,620
			(488,222) (517,680)
			447,214 613,658

15

STATEMENT OF CHANGES IN EQUITY

Balance at 30 June 2016 Loss for the period Other comprehensive loss (net of tax) Total comprehensive loss for the year Transactions with owners in their capacity as owners Shares issued for cash Shares issue costs Shares issued in lieu of consulting fees Shares issued as set-off against loans payable Share based payments expense Balance at 30 June 2017 Loss for the period Total comprehensive loss for the year Transactions with owners in their capacity as owners Shares issued for cash Shares issue costs Shares issued in lieu of consulting fees Shares issued as set-off against loans payable Share based payments expense Balance at 30 June 2018	Ordinary share capital $ Accumulated losses $ Option reserve $ Revaluation Reserve $ Total attributable to owners of the parent entity $ Non- controlling Interest $ Total $ 41,828,904 (36,893,580) 486,707 15,015,000 20,437,031 (123,002) 20,314,029 - (2,508,646) - - (2,508,646) (35,655) (2,544,301) - - - (15,015,000) (15,015,000) - (15,015,000)
	- (2,508,646) - (15,015,000) (17,523,646) (35,655) (17,559,301) 1,356,462 - - - 1,356,462 - 1,356,462 (112,772) - - - (112,772) - (112,772) 87,000 - - - 87,000 - 87,000 295,038 - - - 295,038 - 295,038 - - 5,873 - 5,873 - 5,873
	43,454,632 (39,402,226) 492,580 - 4,544,986 (158,657) 4,386,329 - (1,505,840) - - (1,505,840) (918) (1,506,758)
	- (1,505,840) - - (1,505,840) (918) (1,506,758) 566,940 - - - 566,940 - 566,940 (74,161) - - - (74,161) - (74,161) 22,000 - - - 22,000 - 22,000 166,031 - - - 166,031 - 166,031 - - 1,434 - 1,434 - 1,434
	44,135,442 (40,908,066) 494,014 - 3,721,390 (159,575) 3,561,815

The accompanying notes form part of and should be read in conjunction with these financial statements

16

Compliance Statement

1. This report has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to the ASX.

2. This report, and the accounts upon which the report is based (if separate), use the same accounting policies.

3. This report does give a true and fair view of the matters disclosed.

4. This report is based on accounts to which one of the following applies.

The accounts have been audited

• ✓ The accounts are in the process of being audited or subject to review.

The accounts have been subject to review.

The accounts have not yet been audited.

==> picture [126 x 35] intentionally omitted <==

Sign here: ............................................................ Date: 31 August 2018 Director

Print name: David Breeze

17