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DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2018
Feb 15, 2018
64764_rns_2018-02-15_d6fe3afb-a122-4d0d-9dc9-effc290650ce.pdf
Interim / Quarterly Report
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APPENDIX 4D Half Yearly Report for the half year ended 31 December 2017
| Contents | Page |
|---|---|
| Appendix 4D - Half Year Report | 2 |
| Financial Report | 3 |
ABN : 54 091 908 726 Unit 9, 19 Rodborough Road Frenchs Forest NSW 2086 P : (02) 8977 4900 F : (02) 9975 4700 www.datadotdna.com
Half Year Report - December 2017
Page 1
DataDot Technology Limited
Appendix 4D Half Year Financial Report
DataDot Technology Limited
ABN : 54 091 908 726
Reporting period Half year ended 31 December 2017 Previous reporting period Half year ended 31 December 2016
| Results for announcement to the market | 31 Dec 17 | 31 Dec 16 | Change | Change |
|---|---|---|---|---|
| $ | $ | $ | % | |
| Revenue | 2,490,443 | 2,810,758 | (320,315) | (11.40)% |
| Gross Profit | 1,407,848 | 1,639,880 | (232,032) | (14.15)% |
| Expenses | 1,704,670 | 2,216,768 | (512,098) | (23.10)% |
| EBITDA | (86,253) | (314,205) | 227,952 | 72.55% |
| Loss from ordinary activities after tax attributable to members | (307,983) | (541,334) | 233,351 | 43.11% |
| Net loss attributable to members | (307,983) | (541,334) | 233,351 | 43.11% |
| Net tangible asset backing per ordinaryshare shown in cents | 0.0028 | 0.0042 | (0.0014) | (33.33)% |
| Dividends | ||||
| No dividends werepaid or madepayable duringthe halfyear ended or since 31 December 2017. |
Commentary
Please refer to the attached Directors report which does not form part of the financial report for the half year ended 31 December 2017.
Other information
Control gained over entities having a material effect N/A
Loss of control over entities having a material effect N/A
Dividend or distribution reinvestment plans N/A Details of associates and joint venture entities N/A
Audit status
This report is based on accounts that have been subject to review.
Attachments
Additional disclosure requirements can be found in the notes to the attached half year financial report.
Signed By Gary Flowers - Chairman 16 February 2018
Half Year Report - December 2017
Page 2
DataDot Technology Limited
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Financial Report for the half year ended 31 December 2017
| Contents | Page |
|---|---|
| Directors' Report | 4 |
| Auditor's Independence Declaration | 6 |
| Consolidated Statement of Profit or Loss | 7 |
| Consolidated Statement of Comprehensive Income | 8 |
| Consolidated Statement of Financial Position | 9 |
| Consolidated Statement of Changes in Equity | 10 |
| Consolidated Statement of Cash Flows | 11 |
| Notes to the Financial Statements | 12 |
| Directors' Declaration | 16 |
| Independent Auditor's Review Report | 17 |
Half Year Report - December 2017
Page 3
DataDot Technology Limited
for the half year ended 31 December 2017
Directors’ Report
Your directors submit their report, together with the financial statements of the consolidated entity (“DataDot”) consisting of DataDot Technology Limited and the entities it controlled at the end of or during the half year ended 31 December 2017.
Directors
The directors of the Company at any time during or since the end of the half-year are as follows:
Mr G Flowers (Chairman)
Mr S Wilks Mr T Hield – Appointed 24 November 2017 Mr Bruce Rathie – Retired 24 November 2017
Principal activities
The principal activities of DataDot during the year were:
-
(a) to manufacture and distribute asset identification solutions that include:
-
(i) DataDotDNA® - polymer and metallic microdots containing etched data that is unique to the assets to which the microdots are attached;
-
(ii) Asset Registers ‑ databases that record asset identification data and are accessible by law enforcement agencies and insurance investigators;
-
(b) to manufacture and distribute high security DataTraceID authentication solutions;
-
(c) to develop and distribute customised solutions combining DataDotDNA, DataTraceID and asset registration.
There has been no significant change in the nature of these activities during the half year (but see below re potential merger with Beston Technologies Pty Ltd).
Review of operations
Earnings for first half of 2017/18 have improved against the prior comparable period (pcp). EBITDA improved by $0.23m to a $0.09m loss (1H2017, $0.31m loss) and NPAT improved by $0.23m to a $0.31m loss (1H2017 $0.54m loss).
These improvements were driven by further rationalisation of the cost base, which yielded savings of $0.51m against pcp. This has increased the operating models’ sustainability and efficiency.
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23%
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With a lower cost base in place, the group is now well placed to translate revenue growth into positive earnings results. Pleasingly, we have now had a positive EBITDA for 5 months in row (September 2017 – January 2018)[1] for the business since the beginning of the financial year.
1 January 2018 result unaudited DataDot Technology Limited
Half Year Report - December 2017
Page 4
for the half year ended 31 December 2017
Directors’ Report
Group revenue has fallen against pcp from $2.81m to $2.49m. Revenue growth continues to be the key imperative for the Company. To address this we have implemented a number of new initiatives, particularly to promote our authentication solutions, including:
-
Launch of a stand-along DataTraceID website (see datatraceid.com)
-
An increased focus on thought leadership and content based lead generation; for example in November we held a webinar on smart packaging and presented at a the Monash University Food Innovation Centre on Food Fraud (see http://datatraceid.com/resources/)
-
The launch of the Corporate Counsel Survey Report to benchmark industry views on counterfeit on a recurring basis
Subsequent event – possible merger with Beston Technologies Pty Ltd
As set out in our announcement of 16 February 2018 the Company has executed a Heads of Agreement for a proposed merger with Beston Technologies Pty Limited (BT). Key points of that announcement are that:
-
Merger subject to, among other things, satisfactory completion of due diligence, negotiation of definitive transaction documents, final board approvals, DDT shareholder approval and completion of a capital raising
-
DDT and BT have agreed to a period of exclusivity until 30 March 2018
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Merger would create an Australian-owned and integrated e-commerce traceability and anti-counterfeit software-as-aservice (SaaS) solution across a range of industries
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Proposed merger terms value BT at $13.0 million and DDT at $7.0 million with a combined enterprise value of $20.0 million
-
The Board of the merged group would comprise three Directors appointed by Beston Global Food Company (BFC), the current ultimate holding company of BT, and two of the current directors of DDT
-
A capital raising is proposed to be undertaken in conjunction with the merger to raise $12.0 million to $15.0 million
-
At this point there is no assurance that the transaction will proceed to completion as it remains subject to further due diligence investigations and other conditions.
Outlook
The outlook for the Company is positive with:
-
a significantly improved cost base meaning the group is well placed to translate revenue growth into positive earnings results
-
a number of improvements in our authentication value proposition implemented and to come, with resultant lead generation and pipeline growth expected to follow and translate into revenue
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increasing confidence in the prospects for our authentication business’ future and the role it can play in delivering material upside to our results
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strong volume being maintained in our microdot business, and
-
the proposed merger with Beston Technologies to be progressed in the coming half-year
Auditor’s independence declaration
The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 , for the half year ended 31 December 2017 has been received and can be found on page 6 of the financial report.
Signed in accordance with a resolution of the Board of Directors, pursuant to section 306(3)(a) of the Corporation Act 2001.
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G Flowers Chairman Sydney 16 February 2018
Half Year Report - December 2017
DataDot Technology Limited
Page 5
Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia
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DECLARATION OF INDEPENDENCE BY GILLIAN SHEA TO THE DIRECTORS OF DATADOT TECHNOLOGY LIMITED
As lead auditor for the review of Datadot Technology Limited for the half-year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been:
-
No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and
-
No contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Datadot Technology Limited and the entities it controlled during the period.
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Gillian Shea Partner
BDO East Coast Partnership
Sydney, 16 February 2018
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
Consolidated Statement of Profit or Loss
for the half year ended 31 December 2017
| Notes Revenue Sale of goods Service and licence fees Royalties Cost of sales Gross Profit Other income 2 Expenses Administrative expenses Marketing expenses Occupancy expenses Travel expenses EBITDA Depreciation, Amortisation and Impairment Finance costs Loss before income tax expense Income tax expense 6 Loss after income tax expense for the period Loss for the period attributable to :- Owners of DataDot Technology Limited Basic loss per share (cents per share) Diluted loss per share (cents per share) |
31 Dec 2017 31 Dec 2016 $ $ 2,223,054 2,467,572 70,803 120,546 196,586 222,640 |
|---|---|
| 2,490,443 2,810,758 1,082,595 1,170,878 |
|
| 1,407,848 1,639,880 |
|
| 210,569 262,683 |
|
| 1,403,393 1,893,607 86,532 53,313 173,383 189,790 41,362 80,058 |
|
| 1,704,670 2,216,768 (86,253) (314,205) |
|
| 214,870 219,220 - 1,406 (301,123) (534,831) |
|
| 6,860 6,503 |
|
| (307,983) (541,334) |
|
| (307,983) (541,334) |
|
| (0.04) (0.07) |
|
| (0.04) (0.07) |
The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
Half Year Report - December 2017
DataDot Technology Limited
Page 7
Consolidated Statement of Comprehensive Income
for the half year ended 31 December 2017
| Loss after income tax expense for the period Other comprehensive income :- Items that may be classified subsequently to profit or loss :- Exchange difference on translation of foreign operations Total comprehensive income for the period net of tax Total comprehensive income attributable to :- Owners of DataDot Technology Limited |
31 Dec 2017 31 Dec 2016 $ $ (307,983) (541,334) 2,446 15,826 |
|---|---|
| (305,537) (525,508) |
|
| (305,537) (525,508) |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Half Year Report - December 2017
Page 8
DataDot Technology Limited
Consolidated Statement of Financial Position
as at 31 December 2017
| Notes Current Assets Cash and cash equivalents 5 Trade and other receivables Inventories Grant receivable Total Current Assets Non‑Current Assets Plant and equipment Intangibles Investments Deferred Tax Total Non‑Current Assets Total Assets Current Liabilities Trade and other payables Employee benefits Provisions Other current liabilities Total Current Liabilities Non‑Current Liabilities Employee benefits Other non-current liabilities Total Non‑Current Liabilities Total Liabilities Net Assets Equity Issued capital 7 Accumulated losses Reserves Total Equity |
31 Dec 2017 30 Jun 2017 $ $ 1,683,383 1,768,175 889,124 939,585 652,259 737,022 100,000 320,000 |
|---|---|
| 3,324,766 3,764,782 |
|
| 414,126 466,552 2,678,972 2,730,511 120 120 33,853 33,131 |
|
| 3,127,071 3,230,314 |
|
| 6,451,837 6,995,096 |
|
| 776,761 985,582 88,491 127,248 60,000 60,000 168,364 216,820 |
|
| 1,093,616 1,389,650 |
|
| 27,136 23,649 365,489 403,115 |
|
| 392,625 426,764 |
|
| 1,486,241 1,816,414 |
|
| 4,965,596 5,178,682 |
|
| 39,692,526 39,664,364 (32,556,852) (32,248,869) (2,170,078) (2,236,813) |
|
| 4,965,596 5,178,682 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Half Year Report - December 2017
Page 9
DataDot Technology Limited
Consolidated Statement of Changes in Equity
for the half year ended 31 December 2017
| Balance at 1 July 2016 Share based payments Share rights exercised Balance at 31 December 2016 Balance at 1 July 2017 Share based payments Share Issues Share Issue Costs Balance at 31 December 2017 Loss after income tax expense for the period Transactions with owners in their capacity as owners :- Total comprehensive income for the period Total comprehensive income for the period Transactions with owners in their capacity as owners :- Loss after income tax expense for the period Other comprehensive income for the period, net of tax Other comprehensive income for the period, net of tax |
Attributable to equity holders of theparent |
|---|---|
| 39,584,463 (30,869,416) (1,774,501) 163,390 (678,623) 6,425,313 - (541,334) - - - (541,334) - - 15,826 - - 15,826 |
|
| - (541,334) 15,826 - - (525,508) - - - 54,436 - 54,436 18,000 - - (18,000) - - 39,602,463 (31,410,750) (1,758,675) 199,826 (678,623) 5,954,241 |
|
| 39,664,364 (32,248,869) (1,789,295) 231,105 (678,623) 5,178,682 - (307,983) - - - (307,983) - - 2,446 - - 2,446 |
|
| - (307,983) 2,446 - - (305,537) - - - 64,289 - 64,289 30,000 - - - - 30,000 (1,838) - - - - (1,838) |
|
| 39,692,526 (32,556,852) (1,786,849) 295,394 (678,623) 4,965,596 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Half Year Report - December 2017
Page 10
DataDot Technology Limited
Consolidated Statement of Cash Flows
for the half year ended 31 December 2017
| Notes Cash from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest paid Income tax paid Receipt of government grant Net cash flows received from / (used in) operating activities Cash flows from investing activities Interest received Purchase of plant and equipment Payments for development costs and other intangibles Net cash flows used in investing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of period 5 |
31 Dec 2017 31 Dec 2016 $ $ 2,738,092 3,296,814 (3,101,761) (3,836,820) - (1,406) (7,582) (3,454) 377,920 - |
|---|---|
| 6,669 (544,866) |
|
| 1,132 12,297 (10,490) (12,266) (95,600) (80,773) |
|
| (104,958) (80,742) |
|
| (98,289) (625,608) 1,768,175 2,355,153 13,497 (50,472) |
|
| 1,683,383 1,679,073 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Half Year Report - December 2017
Page 11
DataDot Technology Limited
Notes to the Financial Statements
for the half year ended 31 December 2017
1 Summary of significant accounting policies
The financial statements cover DataDot Technology Limited as a consolidated entity consisting of DataDot Technology Limited and its subsidiaries. The financial statements are presented in Australian dollars, which is DataDot Technology's functional and presentation currency.
DataDot Technology Limited is a listed public company limited by shares, incorporated and domiciled in Australia.
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors on 16 February 2018.
Basis of preparation
These interim financial statements for the interim half-year reporting period ended 31 December 2017 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.
These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2017 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
New, revised or amending Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Half Year Report - December 2017
Page 12
DataDot Technology Limited
Notes to the Financial Statements
for the half year ended 31 December 2017
| 2 Other Income Interest income Government grant: Research and development grant * Sundry income |
31 Dec 2017 31 Dec 2016 $ $ 1,132 12,297 184,640 191,500 24,797 58,886 |
|---|---|
| 210,569 262,683 |
- There are no unfulfilled conditions or contingencies attached to the grant.
3 Expenses
The consolidated statement of profit or loss includes the following specific expenses :-
| Cost of sales Stock obsolescence Administrative expenses Net (gain) / loss on foreign currency Employee benefits Employee share based expenses Superannuation expenses Depreciation Amortisation |
(4,944) 14,360 |
|---|---|
| (15,866) 67,672 789,445 1,007,680 64,286 54,436 67,805 90,443 67,731 71,086 147,139 148,134 |
|
| 1,120,540 1,439,451 |
4 Fair values of financial instruments
Unless otherwise stated, carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables assume to approximate their fair values due to their short term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments.
| 5 Cash and cash equivalents Reconciliation of cash Cash at bank and on hand Balance as per statement of cash flows 6 Income Tax Major components of tax expense Withholding Tax Income tax expense Cash at the end of the financial period shown in the consolidated statement of cash flows is reconciled as follows |
31 Dec 2017 31 Dec 2016 $ $ 1,683,383 1,679,073 |
|---|---|
| 1,683,383 1,679,073 |
|
| 31 Dec 2017 31 Dec 2016 $ $ 6,860 6,503 |
|
| 6,860 6,503 |
Half Year Report - December 2017
Page 13
DataDot Technology Limited
Notes to the Financial Statements
for the half year ended 31 December 2017
7 Equity - Contributed equity
| Equity - Contributed equity Ordinary shares Balance 1 July 2017 Issue of Shares - Share Rights Issue of Shares - Employee Share Issue & Loan Scheme Balance 31 December 2017 |
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 Shares Shares $ $ 761,674,461 39,692,526 39,602,463 810,606,351 |
| Date No of Shares $ 01-07-17 766,004,605 39,664,364 24-07-17 4,285,714 28,162 40,316,032 - 810,606,351 39,692,526 31-12-17 19-08-17 |
8 Segment Information
Segment descriptions
DataDot has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.
Management has reviewed the segments and determined the group is organised into business units based on their product and services and accordingly has two reportable segments. Discrete financial information about each of these operating businesses is reported to the executive management team on at least a monthly basis.
Products and services by segment
Two reportable segments have been identified as follows:
DataDotDNA® ‑ polymer and metallic microdots containing etched data that is unique to the assets to which the microdots are attached.
DataTraceDNA® – a high speed, high security, machine readable system for authenticating materials, products and assets and IntelliSeed™ by AgTechnix is a frontier patent pending technology, supporting global agriculture and protecting investments in intellectual property across a diverse spectrum of agricultural activities, including seed and plant genetics.
Accounting policies and intersegment transactions
The accounting policies used by DataDot in reporting segments internally is the same as those contained in the prior period. Intersegment pricing is determined on an arm’s length basis. Intersegment transactions are eliminated on consolidation.
The following tables present the revenue, profit/(loss) before tax, assets and liabilities information regarding operating segments for half years ended 31 December 2017 and 31 December 2016.
Half Year Report - December 2017
Page 14
DataDot Technology Limited
Notes to the Financial Statements
for the half year ended 31 December 2017
8 Segment Information (continued)
| Segment performance Period ended 31 December 2017 Revenue from external customers Total revenue Finance revenue Finance costs Net loss after income tax Segment assets Segment liabilities Period ended 31 December 2016 Revenue from external customers Total revenue Finance revenue Finance costs Net (loss) / profit after income tax Segment assets Segment liabilities Intersegment revenue Intersegment revenue Depreciation, amortisation and disposals Depreciation, amortisation and disposals |
DataDot DataTraceDNA Eliminations Total $ $ $ $ |
|---|---|
| 2,180,742 309,701 - 2,490,443 208,824 7,171 (215,995) - |
|
| 2,389,566 316,872 (215,995) 2,490,443 |
|
| (104,043) (110,827) - (214,870) 1,132 - - 1,132 - - - - |
|
| (222,479) (85,504) - (307,983) |
|
| 6,852,067 736,122 (1,136,352) 6,451,837 |
|
| 1,485,139 2,402,162 (2,401,060) 1,486,241 |
|
| DataDot DataTraceDNA Eliminations Total $ $ $ $ |
|
| 2,100,572 710,186 - 2,810,758 96,130 5,582 (101,712) - |
|
| 2,196,702 715,768 (101,712) 2,810,758 (104,171) (115,049) - (219,220) 12,297 - - 12,297 (1,406) - - (1,406) |
|
| (720,756) 179,422 - (541,334) |
|
| 7,116,394 1,310,883 (1,136,352) 7,290,925 |
|
| 1,357,018 2,550,424 (2,570,758) 1,336,684 |
9 Events after the reporting period
The company has executed to a Heads of Agreement for a proposed merger with Beston Technologies Pty Ltd. This is subject to completion of due diligence, board and shareholder approval and completion of capital raising.
Half Year Report - December 2017
Page 15
DataDot Technology Limited
Directors’ Declaration
In the directors’ opinion:
-
(a) the attached financial statements and notes thereto comply with the Corporations Act 2001, Australia Accounting Standard AASB 134 “Interim Financial Reporting”, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
-
(b) the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and of its performance for the financial half-year ended on that date; and
-
(c) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors made pursuant to section 303(5) of the Corporations Act 2001.
On behalf of the Board
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G Flowers Chairman 16 February 2018
Half Year Report - December 2017
Page 16
DataDot Technology Limited
Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia
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INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of Datadot Technology Limited
Report on the Half-Year Financial Report
Conclusion
We have reviewed the half-year financial report of Datadot Technology Limited and its subsidiaries, which comprises the consolidated statement of financial position as at 31 December 2017, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear then ended, and notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 including:
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(i) Giving a true and fair view of the Group’s financial position as at 31 December 2017 and of its financial performance for the half-year ended on that date; and
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(ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Directors’ responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2017 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
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substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Datadot Technology Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.
BDO East Coast Partnership
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Gillian Shea Partner
Sydney, 16 February 2018
2