BPH ENERGY LTD — Annual Report 2019

Sep 1, 2019

BPH Ener Limited gy

Appendix 4E - Preliminary Final Report

Appendix 4E - Preliminary Final Report
Name of Entity	BPH Energy Limited
ABN	41 095 912 002
Financial Year Ended	Year ended 30 June 2019
Previous Corresponding Reporting Period	Year ended 30 June 2018

Results for announcement to the market

Results for announcement to the market
		$A'000
Revenues from ordinary activities Net profit from ordinary activities after tax attributable to members (i) (2018: $1,506,758 loss) Net profit for the period attributable to members (2018: $1,506,758 loss)	Up 17.8% N/A N/A N/A N/A	to 278 304 304
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	Nil Nil	Nil Nil
Previous corresponding period	Nil	Nil

(i) Net profit from ordinary activities after tax is after recognising (i) a fair value gain of $280,372 (2018: $Nil) (ii) $Nil impairment charge with respect to Advent Energy Limited (2018: charge of $1,003,001) and; (iii) $332,102 consulting and legal costs (2018: $311,680)

Ratios

Ratios
Profit before tax / revenue Consolidated profit from ordinary activities before tax as a percentage of revenue	109%	N/A
Profit after tax / equity interests Consolidated net profit from ordinary activities after tax attributable to members as a percentage of equity (similarly attributable) at the end ofthe period	5.7%	N/A
Net tangible asset backing per ordinary security (cents per share)	0.2	0.4

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)	23	24	-	-
Molecular Discovery SystemsLimited	20	20	(28,006)	(28,500)
Aggregate Share of Net(Loss)			(28,006)	(28,500)

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. As a consequence of a legal settlement reached in August 2019 the Company has resumed significant influence over Advent Energy Limited.

Commentary on Results

The consolidated entity has reported an unaudited net profit after tax for the year ended 30 June 2019 of $304,165 (2018: loss of $1,506,758) and has a net cash outflow from operating activities of $487,427 (2018: outflow of $466,968). Revenue increased by 17.8% to $278,227 as the company continued to accrue interest on its secured loans to its investee companies The consolidated entity has a working capital deficit of $941,825 (2018: deficit $1,101,201). Included in trade creditors and payables is director fee accruals and accrued director consultant fees payable of $1,310,055 (2018: $1,265,671) for both current and past directors.

The net profit from ordinary activities after tax is after recognising (i) a fair value gain of $280,372 (2018: $Nil) (ii) $Nil impairment charge with respect to Advent Energy Limited (2018: charge of $1,003,001) and; (iii) $332,102 consulting and legal costs (2018: $311,680).

Capital Raising

During the year BPH issued 1.186,040,241 shares under a one for one non-renounceable entitlement issue (“Rights Issue”) at an issue price of $0.001 per share of which $1,027,504 was received in cash and $158,536 satisfied by debt set-off. In addition, during the period BPH raised $148,000 cash from the issue of placement shares, issued 100,000,000 shares in exchange for 5,555,556 shares in MEC Resources Limited, issued 123,050,000 shares as settlement of consulting fees, and issued 20,000,000 shares as part of director remuneration.

Operations

On 21 August 2019 the Company announced that it intended to pursue a complementary strategy of making an investment (or investments) in the medical cannabis sector, as it is considered that an investment of this nature is in line with its investee company strategy and, in particular, its biomedical business.

The medical cannabis sector is showing significant growth with current developments boosting the sectors viability including the move to legalise cannabis in Canada and the announcement by the UK Government to legalise medical cannabis. In pursuing this strategy, BPH has agreed to acquire an initial investment of 10% (with the option to increase its percentage to 49%) in Patagonia Genetics Pty Ltd (“PG Aust”), the entity that owns a 100% interest in Patagonia Genetics SPA (“PG”), a Chilean entity.

The key terms are:

• (a) BPH agrees to acquire a total 10% interest in PG Aust in consideration for a subscription amount of $50,000 in cash into the entity and the issue of 150,000,000 BPH shares and payment of $50,000 by equal instalments over 6 months to the shareholders of PG Aust (“T1 transaction”). The amount of capital issued by BPH for the consideration represents approximately 5.5% of the capital of BPH; and

• (b) BPH is granted the option to acquire a total shareholding of 49% in PG Aust (that is, an additional 39% when added to the original acquisition of a 10% interest) in consideration for a subscription amount of $700,000 into the entity and the issue of 450,000,000 shares in the capital of BPH (“T2 transaction”).

The transaction will be conditional on appropriate due diligence, and for the T2 transaction, shareholder approval. There will be no requirement for a shareholder approval for the T1 transaction as the consideration will be met from the current cash position and the shares issued from the existing 15% capacity of BPH.

It is acknowledged as part of the terms sheet and it will be acknowledged in the warranties and representations in the formal agreement to be prepared that the licence applications are owned by PG and that PG Aust and PG will not apply for or pursue recreational cannabis licences nor make investments in the recreational cannabis space or in any activities or projects using Mistella (unless the transactions have been otherwise approved by ASX).

2

Developments in the Company’s investments include:

Cortical Dynamics Ltd (“Cortical”)

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

• On 16 October 2018 Mr. Gary Todd was appointed as Managing Director of BPH investee Cortical. Mr Todd has extensive sales experience gained over the last thirty years both in Australia and internationally in Medical Devices, FMCG and IT&T markets

• Sydney Adventist Private Hospital in Sydney trialled the Brain Anaesthesia Response Monitoring System known as “BARM” during the first two weeks of July 2019 and positive comments were received from all four anaesthetists that trialled BARM

• LiDCO Ltd UK is currently trialling the “BARM” at Southampton University Hospital through September 2019. In the UK, the LiDCO Group enjoys a leading market share, with over 50% of NHS acute care hospitals using its technology.

• Successful trials of the BARM were carried out at St. Luke’s Private Hospital and Strathfield Private Hospital in Sydney. Strathfield is part of the Ramsay Hospital Group. The trials were conducted by Dr Adrian Sultana MD FRCP (Glasg) FANZCA, a consultant anaesthetist. He is a Clinical Lecturer in Anaesthesia at the Australian School of Advanced Medicine, Macquarie University. He is also a director of the International Society for the Perioperative Care of the Obese Patient. Key conclusions from these trials by Dr Sultana trialling BARM during 2018 and in 2019 to date include:

• The BARM has shown significant reduction in patients’ anaesthesia recovery time using TIVA (Total Intravenous Anaesthesia)

• The Cortical BARM was “Remarkably stable and the responsive signal permitted a new level of belief in the awareness monitoring technique and allowed him me to run cases at a Composite Cortical State (CCS) index of 45 with confidence in early tapering of the patients anaesthesia using TCI (infusions of propofol and remifentanil)

• The BARM had impressive stability and speed of response. I was able to administer significantly less Dr Sultana reported that “Often when using the BIS/Entropy (monitors), they dramatically lag the patents emergence and I have had patients that take up to 20 minutes to wake up

• In usage with NMB (Neuromuscular Block) he was able to “achieve accuracy, predictability and a smooth wake up”

The BAR Monitor has now been used with approximately 160 patients at Strathfield and St Luke’s Hospitals.

Cortical believes these conclusions have significant implications for hospital operations:

• (i) Optimising the dose of anaesthetic agent used can reduce the use of anaesthetic agents, and improve patient turn-around times and lead to cost savings

• (ii) Facilitate the delivery of higher quality and more reliable service to hospitals and patients

• Cortical advised that it has issued an Offer Information Statement to undertake a capital raising.

Cortical had previously announced it had signed two five-year exclusive distribution agreements, one with a European distribution company, Innomed, covering Belgium, Netherlands and Luxembourg and the other with a South Korean distribution company, Globaluck.

In early November, Mr Louis Delacretaz, Cortical’s Chief Technical Officer, attended the Korea Anesthesia 2018 congress in Seoul. Prior to the congress start, Mr. Delacretaz attended a series of meetings organised by Austrade with anaesthesiology professors from the Seoul National University College of Medicine, Konkuk University School of Medicine and the Catholic University of Korea College of Medicine.

Each Professor was actively looking for a substitute for their current monitors as they had strong concerns about the credibility of the current monitors reading. In several meetings they were very interested in a means to determine the patients’ pain levels and interested in trialing the BARM as a substitute device.

3

Cortical engaged an international testing and certification organization to test and certify the BARM to comply with the Korean certification process .The assessment also includes the latest medical safety standard deviations for Australia, New Zealand, European Union and the USA.

The regulatory compliance process to enable distribution of the BARM in Korea has now been significantly advanced.

MEC Resources Limited (“MEC”)

Settlement of Legal Matters with MEC

On 9 August 2019 BPH announced that it had reached a settlement with MEC in relation to the oppression proceedings it commenced in the Supreme Court of Western Australia with Grandbridge, Trandcorp Pty Ltd (“Trandcorp”), and Mr David Breeze.

In addition to the settlement of the oppression proceedings, BPH, MEC, GBA, Trandcorp and Mr David Breeze settled a number of other proceedings and entered into a deed of settlement and release with Advent Energy Ltd (“Advent”) and other relevant parties. As part of the settlement it was agreed that Messrs Matthew Battrick and Tobias Foster would appoint Messrs Steven James, Tony Huston and Thomas Fontaine as directors of Advent, and that Messrs Matthew Battrick and Tobias Foster would then resign from the Board of Advent. The Incoming Directors have since confirmed and acknowledged Mr David Breeze as a duly elected director of Advent.

The key terms of the settlement are as follows:

• The appointment of the Incoming Directors and the resignation of the Resigning Directors

• Until 23 July 2021, MEC agrees to not directly or indirectly interfere with the board composition and/or management of Advent.

• For a period of one year commencing from 6 August 2019 MEC must not sell or otherwise dispose of any shares it holds in Advent, other than by an in-specie distribution to MEC if requested in writing to do so by Advent. If notice is given, MEC must do all that is required to effect and support the In-Specie Distribution.

• The loan of $3,600,000 owed by Advent to MEC will be recoverable by MEC only by the following means and only in the following circumstances:

One month prior to the scheduled commencement date for the drilling of a well within the PEP 11 Permit Area, Advent will issue to MEC ordinary shares to the face value of the debt calculated at 80% of:

(a) the volume-weighted average price of Advent shares over the 5 days trading immediately prior to that date; or

(b) if as at that date Advent shares are not listed on any securities exchange, the price at which ordinary shares in Advent were last issued.

Advent Energy Ltd (BPH 22.6 % Direct)

(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.

4

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).

Advent'’s prior 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 ....for early drilling ,capturing near-term rig availability off Australia’s coast.”

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. It is a drilling prerequisite that a site survey is made prior to drilling at the Baleen location. On 31 December 2018 MEC announced that there were “no ‘seismically defined shallow gas hazards “at the proposed well location on the Baleen Prospect.

(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. MEC has previously announced a two year extension to the EP386 permit till March 2019.

5

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 gain 2 Interest expense Administration expenses Derecognition of financial liability 10 Provision for doubtful debts reversed Provision for doubtful debts Consulting and legal expenses Directors fees Insurance expenses Service fees Share based payments Other expenses Profit / (loss) before income tax Income tax expense 3 Profit / (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 profit (net of tax) Total comprehensive profit / (loss) for the period (Loss) attributable to non-controlling interests Profit / (loss) attributable to members of the parent entity Total comprehensive profit / (loss) attributable to owners of the Company Total comprehensive profit / (loss) attributable to non-controlling interests Earnings per share Basic and diluted profit / (loss) per share (cents per share) 4	Consolidated 2019 $ 2018 $
	278,227 235,824 17,625 3,720 (28,006) (28,500) - (1,003,001) 280,372 - (774) (1,805) (73,919) (65,591) 83,956 - 494,170 - (65,995) (77,155) (332,102) (311,680) (100,009) (100,174) (9,029) (17,960) (128,640) (128,640) (82,422) (1,434) (29,289) (10,362)
	304,165 (1,506,758) - -
	304,165 (1,506,758)
	- -
	- -
	304,165 (1,506,758)
	(245) (918)
	304,410 (1,505,840)
	304,410 (1,505,840)
	(245) (918)
	0.01 (0.20)

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 Fair value gain -Fair value losses - Fair value gains on financial instruments Impairment charge Advent Energy Limited 3. Income Tax Expense (a) The prima facie tax on profit / (loss) from operations before income tax is reconciled to the income tax as follows: Accounting profit / (loss) before tax Prima facie tax expense / (benefit) on loss from operations before income tax at 27.5% (2018: 27.5%) Add tax effect of: Effect of previously unrecognised and unused tax losses now brought to account Tax benefit of revenue losses and temporary differences not recognised Income tax expense		Consolidated 2019 $ 2018 $ 276,422 233,455 1,805 2,369 278,227 235,824 17,625 3,720 17,625 3,720 (72,222) - 352,594 - 280,372 - - 1,003,001 - 1,003,001 304,165 (1,506,758) 83,645 (414,358) (83,645) - 414,358 - -

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 attributable to ordinary equity holders of the Company Earnings used in the calculation of basic earnings per share and diluted earnings per share For 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 EPS	Consolidated 2019 $ 2018 $
	304,410 (1,505,840)
	304,410 (1,505,840)
	0.02 (0.20)
	0.02 (0.20)
	Number 1,790,200,291 Number 742,486,388

8

STATEMENT OF FINANCIAL POSITION

Note Current Assets Cash and cash equivalents 5 Trade and other receivables 6 Financial assets 7 Other current assets Total Current Assets Non-Current Assets Financial assets 7 Investments in associates 8 Total Non-Current Assets Total Assets Current Liabilities Trade and other payables 9 Financial liabilities 10 Total Current Liabilities Non-Current Liabilities Financial liabilities 10 Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital 12 Reserves 11 Accumulated losses Non-controlling interest Total Equity	Consolidated 2019 $ 2018 $
	437,316 447,214 20,969 19,658 190,342 165,058 33,869 4,051
	682,496 635,981
	5,824,751 4,284,920 436,541 464,547
	6,261,292 4,749,467
	6,943,788 5,385,448
	1,424,235 1,323,541 200,086 413,641
	1,624,321 1,737,182
	- 86,451
	- 86,451
	1,624,321 1,823,633
	5,319,467 3,561,815
	45,574,507 44,135,442 508,436 494,014 (40,603,656) (40,908,066) (159,820) (159,575)
	5,319,467 3,561,815

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)

5. Cash and Cash Equivalents Cash at bank and in hand 6. Trade and Other Receivables Current Other receivables 7. Financial Assets Current Unsecured loans to other entities: MEC Resources Ltd Advent Energy Ltd Investments in listed entities MEC Resources Ltd (Level 1) Non - current Unsecured loans to other entities: Cortical Dynamics Limited Secured loans to other entities: Cortical Dynamics Limited Available for sale financial assets at fair value: Investments in unlisted entities - Cortical Dynamics Limited Investments in unlisted entities – Advent Energy Ltd Loan receivables are stated net of the following provisions: Cortical Dynamics Limited Gross receivable Less provision Molecular Discovery Systems Limited Gross receivable Less provision		Consolidated 2019 $ 2018 $ 437,416 447,214 437,316 447,214 20,969 19,658 20,969 19,658 - 2,494 162,564 162,564 27,778 -
		190,342 165,058
		1,026,670 - 2,290,538 2,129,971 501,543 148,949 2,006,000 2,006,000
		5,824,751 4,284,920
		3,317,208 2,624,141 - (494,170)
		3,317,208 2,129,971
		1,284,517 1,218,522 (1,284,517) (1,218,522)
		- -

10

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

TES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)
Investments Accounted for Using the Equity Method Shares in associates Molecular Discovery Systems Limited (a) Movements in carrying amounts Molecular Discovery Systems Limited: Balance at the beginning of the year Share of associate loss for the year Balance at end of the year	Consolidated 2019 $ 2018 $
	436,541 464,547
	464,547 493,047 (28,006) (28,500)
	436,541 464,547

8. Investments Accounted for Using the Equity Method

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. As a consequence of a legal settlement reached in August 2019 the Company has resumed significant influence over Advent Energy Limited.

9. Trade and Other Payables

ade and Other Payables
Current Trade payables Sundry payables and accrued expenses inancial Liabilities Current Borrowings – unsecured Non-Current Borrowings – unsecured	72,463 29,305 1,351,772 1,294,236
	1,424,235 1,323,541
	200,086 413,641
	200,086 413,641
	- 86,451
	- 86,451

10. Financial Liabilities

As a result of a legal settlement reached in August 2019 the Company has derecognised a non-current financial liability of $86,451 to MEC Resources Limited.

11

NOTES TO THE STATEMENT OF FINANCIAL POSITION (CONTINUED)

		Consolidated	Consolidated
		2019	2018
		$	$
11.	Reserves
	Option Reserve	508,436	494,014
		508,436	494,014
	The option reserve records items recognised as expenses on the
	valuation of share options.
	Reconciliation of movement:
	Opening balance	494,014	492,580
	Share based payments	14,422	1,434
	Closing balance	508,436	494,014
12.	Issued Capital
	2,543,277,658 (2018: 966,187,417) fully paid ordinary shares	45,574,507	44,135,412

12.	Issued Capital
	2,543,277,658 (2018: 966,187,417) fully paid ordinary shares						45,574,507	44,135,412
	(a) Ordinary Shares
				Consolidated			Consolidated
				2019	2018		2019	2018
				$	$		Number	Number
	At the beginning of reporting period			44,135,442	43,454,632		966,187,417	588,702,017
	Shares issued for cash			1,175,504	566,940		1,175,504,193	283,469,930
	Share issue costs			(153,025)	(74,161)		-	-
	Shares issued in lieu	of consulting
	fees			138,050	22,000		123,050,000	11,000,000
	Shares issued as set-off		against
	loans payable			158,536	166,031		158,536,048	83,015,470
	Shares issued in exchange for
	ordinary shares in listed entity			100,000	-		100,000,000	-
	Shares issued	as	director
	remuneration			20,000	-		20,000,000	-
	At reporting date			45,574,507	44,135,442		2,543,277,658	966,187,417

Fully paid ordinary shares do not have a par value, have one vote per share, and carry the right to dividends. The market price of the Company's ordinary shares at 30 June 2019 on ASX was 0.1 cents per share.

12

STATEMENT OF CASHFLOWS

Consolidated

Note Cash flows from operating activities Payments to suppliers and employees Interest received Interest paid Net cash used in operating activities 13 Cash flows from investing activities Loans to other entities Net cash used in investing activities Cash flows from financing activities Proceeds from issue of securities (net of share issue costs) Repayment of borrowings 13(c) Net cash provided by financing activities Net (decrease) 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 13	2019 $ 2018 $
	(488,458) (467,999) 1,805 2,836 (774) (1,805)
	(487,427) (466,968)
	(505,000) (68,000)
	(505,000) (68,000)
	1,112,529 492,778 (130,000) (124,254)
	982,529 368,524
	(9,898) (166,444) 447,214 613,658
	437,316 447,214

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

13

NOTES TO THE STATEMENT OF CASH FLOWS

13. Cash Flow Information (a) Reconciliation of cash flow from operations with loss after income tax: Operating profit after income tax Non-cash items: Fair value gain Interest revenue on loans Impairment charge Derecognition of financial liability Share based payments (Reversal of provision) / provision against loans Share of Associates’ losses Changes in net assets and liabilities, (Increase) / decrease in other assets (Increase) / decrease in trade and other receivables Increase in trade payables and accruals Net cash (used in) operating activities		Consolidated 2019 2018 $ $
		304,165 (1,506,758) (280,372) - (253,992) (232,714) - 1,003,001 83,956 - 82,422 23,434 (428,175) 77,155 28,006 28,500 (29,818) 13,909 (1,310) 5,401 175,603 121,104
		(487,427) (466,968)

(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	437,316	447,214
(c)	Changes in financial liabilities arising from financing activities:
	Balance 1 July	500,092	707,902
	Net cash used in financing activities	(130,000)	(124,254)
	Shares issued as set of against loans payable	(83,555)	(83,556)
	Loan derecognised	(86,451)	-
	Balance 30 June	200,086	500,092

14

STATEMENT OF CHANGES IN EQUITY

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 Profit for the period Total comprehensive income 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 Shares issued as director remuneration Shares issued in exchange for ordinary shares in listed entity Share based payments expense Balance at 30 June 2019	Ordinary share capital $ Accumulated losses $ Option reserve $ Total attributable to owners of the parent entity $ Non- controlling Interest $ Total $ 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 - 304,410 - 304,410 (245) 304,165
	- 304,410 - 304,410 (245) 304,165 1,175,504 - - 1,175,504 - 1,175,504 (153,025) - - (153,025) - (153,025) 138,050 - - 138,050 - 138,050 158,536 - - 158,536 - 158,536 20,000 - - 20,000 - 20,000 100,000 - - 100,000 - 100,000 - - 14,422 14,422 - 14,422
	45,574,507 (40,603,656) 508,436 5,479,287 (159,820) 5,319,467

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

15

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 [114 x 48] intentionally omitted <==

Sign here: ............................................................ Date: 31 August 2019 Director

Print name: David Breeze

16