EDEN INNOVATIONS LTD

ACN 109 200 900

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Appendix 4E Unaudited Preliminary Financial Report Year Ending 30 June 2017

The current reporting period is the year ended 30 June 2017. The previous corresponding period is the year ended 30 June 2016.

Results for announcement to the market:

		30 June 2017 $000’s	30 June 2016 $000’s	% Change	Up / Down
2.1	Revenue from ordinary activities	949	1,207	21.3%	Down
2.2	Loss from ordinary activities after tax attributable to shareholders	(11,264)	(3,314)	239.9%	Up
2.3	Loss for the year attributable to shareholders	(11,264)	(3,341)	237.2%	Up

Operating Results

Revenues decreased due to reduced OptiBlend® sales following continued low oil prices and increased focus the development of EdenCrete® sales. The loss from ordinary activities for the year increased due to decreased revenues and additional expenses including of the expansion of the workforce in Colorado, the establishment of an EdenCrete® sales team, engagement of consultants and research expenditure.

Financial Position

During the financial year, net assets of the company and its controlled entities increased by $4.5 million from $15 million as at 30 June 2016 to $19.5 million as at 30 June 2017 primarily reflecting the net effect of the capital raised during the year less the loss for the year.

Dividends and Other Returns to Shareholders

No dividends are proposed and no dividends were declared or paid during the current or prior period. There were no share buy backs or proposed share buy backs during the financial year.

Net tangible assets per share

	30 June 2017	30 June 2016
Net tangible*assets per share	$0.0126	$0.0103

* - This does not include any value for Eden’s investment in its pyrolysis, EdenCrete® or Optiblend® technology as these are intangible assets.

Audit

This preliminary financial report is based on accounts which are in the process of being audited. No disputes or qualifications are likely to occur.

Eden Innovations Ltd | Telephone +61 8 9282 5889 Level 15, 197 St George’s Terrace, Perth, Western Australia 6000, Australia | edeninnovations.com

Eden Innovations Ltd Unaudited Preliminary Financial Report For the year Ended 30 June 2017

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2017

Note Revenue Other income Changes in inventories Raw materials and consumables used Advertising and marketing expense Consultants expense Depreciation and amortisation expense Employee benefits expense Finance costs Management fees Other financial items Research expense Travel and accommodation expense Other expenses Loss before income tax Income tax (expense)/benefit Loss from continuing operations Loss after tax from discontinued operations Loss for the year Other Comprehensive Income / Loss) Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve Income tax relating to comprehensive income Items reclassified to profit or loss Foreign currency translation reserve Total Other Comprehensive Income / (Loss), net of tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic/Diluted loss per share (cents per share) 2	Consolidated Group 2017 $ 2016 $ 949,467 1,206,849 7,093 6,821 121,859 (64,464) (419,782) (491,284) (399,540) (321,443) (1,010,435) (332,127) (479,997) (196,830) (6,770,049) (2,328,056) (19,941) (64,586) (300,000) (194,670) (390,483) 197,061 (370,065) (32,000) (664,580) (193,587) (1,560,656) (645,446)
	(11,307,109) (3,453,781) 43,339 139,842
	(11,263,770) (3,313,939) - (26,594)
	(11,263,770) (3,340,533) (31,083) (125,048) - - - (519,189)
	(31,083) (644,237) (11,294,853) (3,984,770)
	(0.9138) (0.3226)

The accompanying notes form part of these financial statements.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year Ended 30 June 2017

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Intangible assets Deposits TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest bearing liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated Group 2017 $ 2016 $ 7,984,726 11,249,445 103,421 189,024 613,192 491,333 104,844 75,392
	8,806,183 12,005,194
	10,463,280 690,659 3,711,401 3,009,306 - 106,945
	14,174,681 3,806,910
	22,980,864 15,812,104
	1,939,047 622,130 217,452 - 104,783 148,553
	2,261,282 770,683
	1,154,260 -
	1,154,260 770,683
	3,415,542 770,683
	19,565,322 15,041,421
	83,385,716 68,890,525 6,689,278 5,396,798 (70,509,672) (59,245,902)
	19,565,322 15,041,421

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year Ended 30 June 2017

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2017

Balance at 30 June 2015 Shares issued during the year, net of issue costs Options issued during the year Loss for year Other comprehensive loss Total comprehensive loss Balance at 30 June 2016 Shares issued during the year, net of issue costs Options issued during the year Loss for year Other comprehensive loss Total comprehensive loss Balance at 30 June 2017	Share Capital Ordinary Option Reserve Foreign Currency Translation Reserve Accumulated Losses Total $ $ $ $ $ 55,567,452 2,046,258 452,966 (55,905,369) 2,161,307 13,323,073 - - - 13,323,073 - 3,541,811 - - 3,541,811 - - - (3,340,533) (3,340,533) - - (644,237) - (644,237)
	- - (644,237) (3,340,533) (3,984,770)
	68,890,525 5,588,069 (191,271) (59,245,902) 15,041,421
	14,495,191 - - - 14,495,191 - 1,323,563 - - 1,323,563 - - - (11,263,770) (11,263,770) - - (31,083) - (31,083)
	- - (31,083) (11,263,770) (11,294,853)
	83,385,716 6,911,632 (222,354) (70,509,672) 19,565,322

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year Ended 30 June 2017

CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2017

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Income taxes paid / (received) Interest paid Interest received Net cash used in continuing operations Net cash used in discontinued operations Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Payment for research and development Proceeds on sale of subsidiary, net of cash Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares, net of issue costs Proceeds from borrowings Repayment of borrowings Net cash provided by financing activities Net increase (decrease) in cash held Net increase (decrease) due to foreign exchange movements Cash at beginning of financial year Cash at end of financial year	Consolidated Group 2017 $ 2016 $ 1,164,991 1,183,680 (9,646,694) (4,323,411) 43,338 139,842 (19,941) (71,431) 7,093 6,783
	(8,451,213) (3,064,537) - (30,297)
	(8,451,213) (3,094,834)
	(7,943,781) (510,588) (949,884) (1,329,650) - (34,189)
	(8,893,665) (1,874,427)
	14,513,859 16,278,186 - 1,745,968 - (1,931,074)
	14,513,859 16,093,080
	(2,831,019) 11,123,819 (433,700) (381,878) 11,249,445 507,504
	7,984,726 11,249,445

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Unaudited Preliminary Financial Report For the year Ended 30 June 2017

NOTE 1: BASIS OF PREPERATION

The financial information included in this document for the year ended 30 June 2017 is unaudited. The financial information does not constitute the Eden Group’s (the Group) full financial statements for the year ended 30 June 2017, which will be approved by the board, reported on by the auditors and filed with the Australian Securities and Investment Commission. The Group’s full financial statement will be prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

The financial information in this document for the year ended 30 June 2017 has been prepared on the basis of accounting policies and methods of computation consistent with those applied in the 30 June 2016 financial statements contained within the 2016 Annual Report of the Group. As required and unless stated otherwise, comparative statutory financial information for the Group has been presented for the 2016 financial year. Comparative figures have been prepared on the same basis as the current year figures.

NOTE 2: EARNINGS PER SHARE

a. Reconciliation of earnings to profit or loss Profit/(loss) Earnings used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS The options on issue are not potentially dilutive shares.	2017 $ 2016 $ (11,263,770) (3,340,533)
	(11,263,770) (3,340,533) 1,232,634,131 1,035,442,691

NOTE 3: SEGMENT REPORTING

The Group has identified its operating segments based on internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining allocation of resources. Activities of the Group are managed on Group structure basis and operating segments are therefore determined on the same basis. In this regard the following list of reportable segments has been identified.

Eden Innovations LLC – US EdenCrete® sales and development and US Optiblend® sales, service and manufacturing.
Eden Innovations (India) Pvt Ltd – Optiblend® sales, service and manufacturing in India.

2017 External sales Internal sales Total segment revenue Segment Result Unallocated expenses Result from operating activities Finance costs Loss before income tax Income tax benefit Loss after income tax Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation and amortisation Impairment expense	Eden Innovations LLC Eden Innovations India Pvt Ltd Eliminations Economic Entity (continuing operations) Discontinued Operations $ $ $ $ $ 813,961 135,505 - 949,466 - 874,071 - (874,071) - -
	1,688,032 135,505 (874,071) 949,466 -
	(8,972,224) (78,273) (901,881) (8,148,616) - (3,138,552) - (11,287,168) - (19,941) - (11,307,109) - 43,339 - (11,263,770) - 13,314,940 143,270 - 13,458,210 - 9,522,654 - 22,980,864 - 41,454,988 750,416 (38,997,347) 3,208,057 - 207,485 - 3,415,542 - 10,073,783 - - 10,073,783 232,208 - 247,789 479,997 - - - - - -

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