GENETIC TECHNOLOGIES LIMITED — Interim / Quarterly Report 2003

Mar 4, 2003

Rules 4.1, 4.3

Appendix 4B

Half yearly report

Introduced 30/6/2002.

Name of entity
GENETIC TECHNOLOGIES LIMITED
ABN or equivalent company Half yearly Preliminary reference final (tick) (tick)	Half year ended ('current period')
17 009 212 329	31 DECEMBER 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1).		\$A'000
Revenues from ordinary activities (item $1.1$ )	down 52%	4,858 to
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	down 66%	(1,679) to
Profit (loss) from extraordinary items after tax attributable to members (item $2.5(d)$ )	gain (loss) of	Nil
Net profit (loss) for the period attributable to members (item I. II)	66% down	(1,679) to
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)	NIL é	NIL é
Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7)	NIL é	NIL €
+ Record date for determining entitlements to the dividend. (in the case of a trust, distribution) (see item $15.2$ )
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:
The significant reduction in the net loss for the 6 month period was due to the receipt of licensing and royalty revenues during the period of \$3.2m compared to Nil in the previous corresponding reporting period.

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

⁺ See chapter 19 for defined terms.

Condensed consolidated statement of financial performance

		Current period - \$A'000	Previous corresponding period - \$A'000
1.1	Revenues from ordinary activities (see items 1.23 $-1.25)$	4,858	10,054
1.2	Expenses from ordinary activities (see items 1.26 & 1.27)	(6, 599)	(15,037)
1.3	Borrowing costs		(9)
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	(1,741)	(4,992)
1.6	Income tax on ordinary activities (see note 4)
	No tax payable as all group companies are in a loss position. Future income tax benefits relating to timing differences and tax losses have not been recognised.
1.7	Profit (loss) from ordinary activities after tax	(1,741)	(4,992)
1.8	Profit (loss) from extraordinary items after tax (see item $2.5$ )
1.9	Net profit (loss)	(1,741)	(4,992)
1.10	Net profit (loss) attributable to outside $+$ equity interests	62	30
1.11	Net profit (loss) for the period attributable to members	(1,679)	(4,962)
	Non-owner transaction changes in equity
	1.12 Increase (decrease) in revaluation reserves
1.13 1.14	Net exchange differences recognised in equity Other revenue, expense and initial adjustments	524	287
	recognised directly in equity (See Annexure 3)		17,907
1.15	adjustments from UIG Initial transitional provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)	524	18,194
1.17	Total changes in equity not resulting from transactions with owners as owners	(1, 155)	13,232
		Current period	Previous corresponding Period
	Earnings per security (EPS)	S	К
1.18	Basic EPS	(0.006)	(0.019)
1.19	Diluted EPS	(0.006)	(0.019)

⁺ See chapter 19 for defined terms.

$\overline{a}$

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current \$A'000	period ۰	Previous corresponding period - \$A'000
1.20	Profit (loss) from ordinary activities after tax (item I.7)		(1,741)	(4,992)
1.21	Less (plus) outside $+$ equity interests		62	30
1.22	Profit (loss) from ordinary activities after tax, attributable to members		(1,679)	(4,962)

Revenue and expenses from ordinary activities - See Annexure 1 (see note $15$ )

		Current \$A'000	period	Previous corresponding period - \$A'000
1.23	Revenue from sales or services
1.24	Interest revenue
1.25	Other relevant revenue
1.26	Details of relevant expenses
1.27	Depreciation and amortisation excluding amortisation of intangibles (see item 2.3)
	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unless arising from an $+$ acquisition of a business)

Consolidated retained profits

		Current period - \$A'000	Previous corresponding period - \$A'000
1.30	Retained profits (accumulated losses) at the beginning of the financial period	(8, 825)	(17,907)
1.31	Net profit (loss) attributable to members ( item LID)	(1,679)	(4,962)
1.32	Net transfers from (to) reserves (See Annexure 3)		17,907
1.33	Net effect of changes in accounting policies	-
1.34	Dividends and other equity distributions paid or payable

⁺ See chapter 19 for defined terms.

1.35 Retained profits (accumulated losses) at end	(10,504)	(4,962)
of financial period

Intangible and extraordinary items

		Consolidated - current period
		Before tax \$A'000 (a)	Related tax \$A'000 (b)	Related outside $+$ equity interests \$A'000 (c)	Amount (after $\max$ ) attributable to members \$A'000 (d)
2.1	Amortisation of goodwill	8	-		8
$2.2^{\circ}$	Amortisation of other intangibles	1,697			1,697
2.3	Total amortisation of intangibles	1,705			1,705
2.4	Extraordinary items (details)	n/a	n/a	n/a	n/a
2.5	Total extraordinary items	n/a	n/a	n/a	n/a

Comparison of half year profits

COMPATISON OF HAIL
(Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in th half yearly report)
• Consolidated profit (loss) from ordinary $3.2$ activities after tax attributable to members the 2nd half year

	Current year - \$A'000	Previous year - \$A'000
he	n/a	n/a
for	n/a	n/a

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	At end οf current period \$A'000	As shown in last annual report \$A'000	As in last half yearly report \$A'000
	Current assets
4.1	Cash	7,034	7,160	8,401
4.2	Receivables	577	233	210
4.3	Investments
4.4	Inventories	441	782	1,135
4.5	Tax assets
4.6	Other (provide details if material)	50	70	12
4.7	Total current assets	8,102	8,245	9,758
	Non-current assets
4.8	Receivables
4.9	Investments (equity accounted)
4.10	Other investments	630	279	279
4.11	Inventories
4.12	Exploration and evaluation expenditure capitalised (see para .71 of AASB 1022)
4.13	Development properties $\int$ mining entities)
4.14	Other property, plant and equipment (net)	415	492	740
4.15	Intangibles (net)	22,388	23,985	25,818
4.16	Tax assets
4.17	Other (provide details if material)
4.18	Total non-current assets	23,433	24,756	26,837
4.19	Total assets	31,535	33,001	36,595
	Current liabilities
4.20	Payables	1,358	1,690	1,380
4.21	Interest bearing liabilities			25
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities	208	175	371
4.24	Other (provide details if material)
4.25	Total current liabilities	1,566	1,865	1,776
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities
4.28	Tax liabilities
4.29	Provisions exc. tax liabilities
4.30	Other (provide details if material)
4.31	Total non-current liabilities

⁺ See chapter 19 for defined terms.

		1,566	1,865	1,776
4.32	Total liabilities
4.33	Net assets	29,969	31,136	34,819
	Equity
4.34	Capital/contributed equity	39,401	39,351	39,073
4.35	Reserves	1,106	582	646
4.36	Retained profits (accumulated losses)	(10, 504)	(8, 825)	(4,962)
4.37	Equity attributable to members of the	30,003	31,108	34,757
	parent entity
4.38	Outside $+$ equity interests in controlled	(34)	28	62
	entities
4.39	Total equity	29,969	31,136	34,819
4.40	Preference capital included as part of 4.37	Nil	Nil	Nil

Condensed consolidated statement of financial position continued

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised
(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period \$A'000	Previous corresponding period - \$A'000
5.1	Opening balance
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period	n/a	n/a
5.4	Acquisitions, disposals, revaluation increments, etc.
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet ( item 4.12 )

Development properties
(To be completed only by entities with mining interests if amounts are material)

		Current period \$A'000	Previous
			corresponding
			period - \$A'000
-6.1	Opening balance
-6.2	Expenditure incurred during current period	n/a	n/a
6.3	Expenditure transferred from exploration and
	evaluation

• See chapter 19 for defined terms.

6.4 6.5	Expenditure written off during current period Acquisitions, disposals, revaluation increments, etc.
6.6	Expenditure transferred to mine properties
6.7	Closing balance as shown in the consolidated balance sheet (item 4.13)

Condensed consolidated statement of cash flows

		Current period \$A'000	Previous
			corresponding period
			$-$ \$A'000
	Cash flows related to operating activities
7.1	Receipts from customers	3,814	616
7.2	Payments to suppliers and employees	(3, 873)	(2,599)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature
	received	57	41
7.6	Interest and other costs of finance paid
7.7	Income taxes paid
7.8	Other (provide details if material)	53	178
7.9	Net operating cash flows	51	(1,764)
7.10	Cash flows related to investing activities Payment for purchases of property, plant
	and equipment	(55)	(38)
7.11	Proceeds from sale of property, plant and
7.12	equipment purchases Payment for оf equity
7.13	investments Proceeds from sale of equity investments
7.14	Loans to other entities		9,200
7.15	Loans repaid by other entities
7.16	Other (provide details if material)	(100)	(98)
7.17	Net investing cash flows	(155)	9,064
	Cash flows related to financing activities
7.18	Proceeds from issues of $+$ securities (shares,		528
	options, etc.)
7.19	Proceeds from borrowings
7.20	Repayment of borrowings		(122)
7.21	Dividends paid
7.22	Other (provide details if material)
7.23	Net financing cash flows		406
7.24	Net increase (decrease) in cash held	(104)	7,706

$+$ See chapter 19 for defined terms.

7.25	Cash at beginning of period (see Reconciliation of cash)	7,160	646
7.26	Exchange rate adjustments to item 7.25.		49
7.27	Cash at end of period (see Reconciliation of cash)	7,034	8,401

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

During the period, the company received 127,000 Series B shares in Perlegen Sciences Inc as part of its

license arrangements. These shares were booked to license revenue in an amount of A\$350,903.

On 1 August 2002, the Company issued 121,951 shares at 41 cents (\$50,000) to complete the acquisition of DNA-ID Labs.

Reconciliation of cash

Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current period \$A'000	Previous corresponding period - \$A'000
8.1	Cash on hand and at bank	297	1,002
8.2	Deposits at call	6,737	7,399
8.3	Bank overdraft
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	7,034	8,401

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary
	activities before tax ( item 1.5 ) as a percentage of revenue ( item 1.1 )	(35.84)	149.6.
9.2	Profit after tax $\pi$ equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members ( item 1.11 ) as a percentage of equity (similarly
	attributable) at the end of the period (item 4.37	(5.60)

⁺ See chapter 19 for defined terms.

Earnings per security (EPS)

Basic earnings (loss) per share $($ \$0.006)

Diluted earnings (loss) per share $($0.006)$

The loss for the period used in the calculation of loss per share is \$1,679,000.

The weighted number of ordinary shares used in the calculation of basic and diluted earnings (loss) per share is 261,429,879.

There are 80,226,250 potential new ordinary shares if all the options outstanding are exercised prior to expiry. If all the potential ordinary shares were issued there would be 341,676,675 shares on issue.

All 80,226,250 potential ordinary shares are not dilutive as the group incurred a loss for the period.

900,000 options to purchase ordinary shares lapsed during the period. These lapsed potential ordinary shares are not dilutive as the group incurred a loss for the period.

NTA backing (see note $7)$	Current period	Previous corresponding period
11.1 Net tangible asset backing per *ordinary security	2.90 Cents	$3.46$ Cents

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

Discontinuing Operations $12.1$ Not applicable

$10.$ Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

⁺ See chapter 19 for defined terms.

Control gained over entities having material effect

$n/a$

13.1 Name of entity (or group of entities)

13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was $+$ acquired

13.3 Date from which such profit has been calculated

13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

Loss of control of entities having material effect

14.1 Name of entity (or group of entities) $n/a$ $\mathbf S$

$\mathbb{S}$

\$

$n/a$

• 14.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
• 14.3 Date to which the profit (loss) in item 14.2 has been calculated
• Consolidated profit (loss) from ordinary activities and $14.4$ extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• 14.5 Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

Dividends (in the case of a trust, distributions)

• $15.1 -$ Date the dividend (distribution) is payable
• $15.2 -$ ⁺Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $+$ securities are not $+$ CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if $+$ securities are ⁺CHESS approved)
• If it is a final dividend, has it been declared? $15.3$ (Preliminary final report only)
• • See chapter 19 for defined terms.

Appendix 4B Page 10

é

Nil ¢

Amount per security

		Amount per security	Franked amount per security at % tax (see note	Amount per security of foreign source dividend
15.4 15.5	(Preliminary final report only) Final dividend: Current year Previous year	¢ n/a C	C n/a c	n/a
15.6 15.7	(Half yearly and preliminary final reports) Interim dividend: Current year Previous year	¢ Nil Ć	Nil	Nil

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

15.8	+ Ordinary securities
------	----------------------------------	--

$15.9$ Preference + securities

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

Current year

Previous year

é

Nil

é

		Current period \$A'000	Previous corresponding period - \$A'000
15.10	+ Ordinary securities (each class separately)
15.11	Preference $+$ securities (each class separately)
15.12	Other equity instruments (each class separately)
15.13	Total	Nil	Nil

The $⁺dividend$ or distribution plans shown below are in operation. $n/a$

The last date(s) for receipt of election notices for the ⁺dividend or distribution plans

$N/a$

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

⁺ See chapter 19 for defined terms.

$n/a$

Details of aggregate share of profits (losses) of associates and joint venture entities

Group's share of associates' and joint venture entities':		Current period \$A'000	Previous corresponding period - \$A'000
16.1	Profit (loss) from ordinary activities before tax
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities after tax	n/a	n/a
16.4	Extraordinary items net of tax
16.5	Net profit (loss)
16.6	Adjustments
16.7	Share of net profit (loss) of associates and joint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

Name of entity		Percentage of ownership interest held at end of period or date of disposal		Contribution to net profit (loss) (item 1.9)
17.1	Equity accounted associates and joint venture entities	Current period	Previous corresponding period	Current period \$A'000	Previous corresponding period- \$A'000
		n/a	n/a	n/a	n/a
17.2	Total
17.3	Other material interests

⁺ See chapter 19 for defined terms.

	n/a	n/a	n/a	n/a
17.4 Total

Issued and quoted securities at end of current period
(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

	Category of + securities	Total number	Number quoted	Issue price per security (see note (4) (cents)	Amount paid up per security (see note $14$ ) (cents)
18.1	Preference + securities (description)
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions
18.3	+ Ordinary securities	261,450,425	261,450,425
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks	121,951	121,951	41 cents	41 cents
18.5	+ Convertible debt securities (description and conversion factor)
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)			Exercise price	Expiry date $(f\,$ any $)$
	Vendor options	69,256,250		$20$ cents	14/4/05
	Director options	3,000,000		45 cents	14/4/05
	Employee options	4,250,000		61 cents	30/11/07
	Employee options	2,350,000		56 cents	30/11/07
	Employee options	1,370,000		49 cents	30/11/07
18.8	Issued during current period	200,000		56 cents	30/11/07
		200,000		49 cents	30/11/07

⁺ See chapter 19 for defined terms.

18.9	Exercised during current period
18.10	Expired during current period	500,000 400,000	61 cents 49 cents	30/11/07 30/11/07
18.11	Debentures (description)
18.12	Changes during current period (a) Increases through issues
	(b) Decreases through securities matured, converted
18.13	Unsecured notes (description)
18.14	Changes during current period
	(a) Increases through issues
	(b) Decreases through securities matured, converted

Segment reporting – see Annexure 2

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports, AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in the layout employed in the entity's $\pm$ accounts should be reported separately and attached to this report.)

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

• $19.1$ If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last ⁺annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• $19.2$ Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

⁺ See chapter 19 for defined terms.

The significant reduction in the net loss for the 6 month period was due to the receipt of licensing and royalty revenues during the period of \$3.2m compared to Nil in the previous corresponding reporting period.

During the six month period, the company announced significant licensing deals with Perlegen Sciences Inc and Myriad Genetics Inc.

The company generated net operating cash flow for the six month period ended 31 December 2002 (Item $7.9$ ) for the first time in the history of the company which is a significant milestone.

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

Since the end of the financial period, the company has sold all its shares in listed Australian companies for cash consideration of \$492,932. These shares are included in inventory in the attached Statement of Financial Position at 31 December 2002 at the market value on that date, being \$233,441. The profit on sale of these shares was \$259.491.

Franking credits available and prospects for paying fully or partly franked dividends for at least the next year. 19.4

Nil

Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are 19.5 the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half vearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

Nil

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

Nil

Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent 19.7 assets since the last⁺ annual report.

⁺ See chapter 19 for defined terms.

Ni1

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties.
• 20.2 A statement of the fees and commissions $N/a$ payable to the management company or responsible entity.

Identify:

• initial service charges
• management fees
• other fees

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the 'annual report will be available

Compliance statement

$\mathbf{I}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

This report, and the "accounts upon which the report is based (if separate), use the same accounting $\overline{2}$ policies.

⁺ See chapter 19 for defined terms.

• $\overline{\mathcal{L}}$ This report does give a true and fair view of the matters disclosed (see note 2).
• $\overline{4}$ This report is based on ⁺accounts to which one of the following applies. (Tick one)

The a accounts have been $\mathbf{v}$ audited.	The "accounts have been subject to review.
The $\bar{a}$ accounts are in the $\Box$ process of being audited or subject to review.	The "accounts have not yet been audited or reviewed.

• $\overline{\mathbf{S}}$ If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half yearly report only - the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• 6 The entity does not have a formally constituted audit committee.

Sign here:	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	Date: .5 March 2003.
	(Director)

Print name: Ian Alistair Dennis

Notes

• $\mathbf{I}$ . For announcement to the market The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $\overline{2}$ . True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$\overline{3}$ . Condensed consolidated statement of financial performance

Item $1.1$ The definition of "revenue" and an explanation of "ordinary activities" are set out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.

⁺ See chapter 19 for defined terms.

• Item $1.6$ This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg. fringe benefits tax).
• If the amount provided for income tax in this report differs (or would differ but for $\overline{4}$ . Income tax compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at $\%$ tax" for items 15.4 to 15.7.

5. Condensed consolidated statement of financial position

Format. The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029; Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last ⁺annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

• Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in 6. this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of AASB 1026. ⁺Mining exploration entities may use the form of cash flow statement in Appendix 5B.
• $7.$ Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the ⁺ordinary securities (ie, all liabilities, preference shares, outside ⁺equity interests etc). ⁺Mining entities are not required to state a net tangible asset backing per $+$ ordinary security.
• 1. Gain and loss of control over entities. The gain or loss must be disclosed if it has a material effect on the "accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.
• 1. Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. If an entity reports exact figures, the \$A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000, and the \$A'000 headings must be amended.
• $10.$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period.

⁺ See chapter 19 for defined terms.

Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4B Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.

• $11.$ Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the $+A$ SIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the $^{+}$ ASIC, must be given to ASX.
• $12.$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• 1. Corporations Act financial statements This report may be able to be used by an entity required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
• 1. Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to 15 either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. AASB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their $+$ accounts.

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4B.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in AASB 1018. There is an equivalent requirement in AASB 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

Dollars If reporting is not in A\$, all references to \$A must be changed to the reporting currency. If 16 reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

17. Discontinuing operations

Half yearly report

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

⁺ See chapter 19 for defined terms.

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their "accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4B.

18. Format

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

⁺ See chapter 19 for defined terms.

Annexure 1

Genetic Technologies Limited - Revenue and expenses from ordinary activities

	Current period -	Previous
	\$A'000	corresponding period -
		\$A'000
Income
Rendering of services	1,614	573
Licensing and royalty revenue	3,161
Proceeds of sale of equity investments		9,200
Interest received	57	41
Other revenue	26	240
Total revenue	4,858	10,054
Expenses
Administrative expenses	(422)	(155)
Amortisation	(1,705)	(1,932)
Borrowing costs		(9)
Cost of equity investments sold		(8,679)
Depreciation	(60)	(123)
Employee benefits expenses	(1,121)	(717)
Foreign exchange losses	(481)	(62)
Legal and patent fees	(237)	(348)
Loss on sale of fixed assets	(71)	(2)
Operating lease rentals	(217)	(290)
Research and development	(302)	(201)
Testing supplies and services	(1,049)	(125)
Write down of inventories	(336)	(1,366)
Other	(598)	(1,037)
Total expenses	(6, 599)	(15,046)
Net Loss before income tax	(1,741)	(4,992)

⁺ See chapter 19 for defined terms.

Annexure 2

Segment Reporting

Segment revenues
	31 December 2002 \$A'000	31 December 2001 \$A'000
Biotechnology - Service testing Biotechnology - Licensing and royalty Biotechnology - Research and development Investment Other	1,614 3,161 26	573. 9,200 240
Total of all segments	4,801	10,013
Eliminations Unallocated Consolidated Revenue	57 4,858	41 10.054
Segment results
Biotechnology - Service testing Biotechnology - Licensing and royalty Biotechnology - Research and development Investment Other	(1,142) 1,231 (301) (336)	(1,075) (2,217) (202) (845)
Total of all segments	(548)	(4.339)
Eliminations Unallocated	(1,193)	(653)
Loss from ordinary activities before income tax expense	(1,741)	(4,992)
Income tax expense relating to ordinary activities
Net loss	(1,741)	(4,992)

Annexure 3

Items 1.32 and 1.14

During the 6 month period ended 31 December 2001 the company transferred an amount of \$16,342,867 from contributed equity to accumulated losses as a result of a prorata capital reduction approved by shareholders at the annual general meeting held on 30 November 2001.

During the 6 month period ended 31 December 2001 the company transferred an amount of \$1,564,356 from the share option reserve to accumulated losses as approved by shareholders at the annual general meeting held on 30 November 2001.

⁺ See chapter 19 for defined terms.

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We have seviewed the stacked financial resear of Chrails' Technologics Limited in the firm of Amaguita 40 of the Andrahm Stock Exchange (ASX) Linnig Rules, Including the directors' declaration, for the half-year ended 31 December NOS ha sechaing the following sections:

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The fameini come includes the constituted fameini sutements of the constituted entity computeng the dischquing make and the entities it controlled at the end of the half-year or from time to time during the half-year. The disclosing entity's dinctors are responsible for the financial report. We have performed ar independent molen of the financial report in order as saar whater, on the basis of the procedures described, anything has corte to our sheating that would indicate that the thancial mass is not presented finty in accordunce with According Standard AASH 1029 "Interim Financial Reporting" and other manilitery professional terroring requirements in Ammatia, summary requirement and ASX Listing Ruize as they rducio Agistolis 40, so as m present a view which is considerat over contraminaling of the consolidated entry's Imanial resident and performance as represented by the manks of its operators dad its code flows, and in maker for the disclosing entity to meet its obligations to Indge the financial report with the Audrabia Securities and investments. Commission and the ASK.

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• 绿钱 complying with Adenaning Simboll AAKR 1029 "Interbri Financial Repurting" and the Compressions Kumlatans IMT; and
• other manifory perfusionid reporting regulareds in Ameralia and ASX Lishig Ruket as they might to Appendix 40. 顯

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Chartered Accountinc

5 Marsh Sydney.

Genetic Technologies Limited Directors' Declaration

The directors declare that:

• a) The attached financial statements and notes thereto comply with Accounting Standards;
• The attached financial statements and notes thereto give a true and fair view of the financial $b)$ position and performance of the consolidated entity;
• In the directors' opinion, the attached financial statements and notes thereto are in accordance $c)$ with the Corporations Act 2001; and
• In the directors' opinion, there are reasonable grounds to believe that the company will be able to $\overline{d}$ pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to $s$ . 303(5) of the Corporations Act 2001.

On behalf of the Directors

(Signature) Ian Dennis] Director Sydney, 5 March 2003

⁺ See chapter 19 for defined terms.