SCIDEV LTD — Interim / Quarterly Report 2014

Jan 30, 2014

Appendix 4C Quarterly report for entities admitted on the basis of commitments

ABN 25 001 150 849

Level 3 100 Mount Street North Sydney NSW 2060 Australia PO Box 1507 North Sydney NSW 2059 Australia

Phone: 02-9954 7888 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office Australian Securities Exchange

31 January 2014

Quarterly Activities Report: Appendix 4C December 2013

Attached is the December 2013 Quarterly Report for Entities Admitted on the Basis of Commitments (Appendix 4C) for Intec Ltd (ASX Code: INL, Intec or the Company).

Acquisition of 50% Interest in Science Developments Pty Ltd

On 26 November 2013, the Company completed the acquisition of a 50% interest in Science Developments Pty Ltd (SciDev) for a cash consideration of $1.3 million, which was wholly funded from the Company ’ s cash resources. The Company also holds an option to increase its ownership to 100% based on an agreed formula related to the future profitability of SciDev.

SciDev has operated profitably since establishment in 2001 and has continued to research, develop, manufacture and import a range of coagulants and flocculants for use in wastewater treatment and sludge dewatering principally in the mining and agribusiness industries. Intec believes that there is opportunity for business growth through expansion into other target sectors and geographical areas where SciDev does not currently have a presence.

To assist in the expansion into targeted sectors and new geographical areas, SciDev has employed Mr. Brett Salisbury as Business Development Director. Mr. Salisbury has over twenty five years experience in marketing, sales, business development and planning across a range of products and services for the consumer, industrial and government sectors. This includes nine years in business development and consulting roles in the water and wastewater industry sectors in Australia.

The SciDev executive team is currently progressing business development initiatives in the food manufacturing industry, sewage treatment industry and the coal industry.

IRC Project

The status of the IRC Project remains unchanged. The completed engineering design package will be delivered to the client upon receipt of an overdue payment due to Intec International Projects Pty Ltd (IIP), an incorporated 50:50 joint venture between the Company and Mr Reza Maghzian.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Corporate

The Company ’ s Annual General Meeting was held on 27 November 2013. Resolutions 1 and 2, being the consideration of the Financial Report and the adoption of the Remuneration Report, were passed unanimously on a show of hands. Resolution 3, being the re-election of Mr. James Bell as a Director, was not passed.

Concurrently with the SciDev acquisition announcement on 26 November 2013, Mr. Daniel (Don) Cronin was appointed a Non-Executive Director of Intec. Mr. Cronin has had an extensive international career in the chemicals industry. He has held senior roles in divisional group management, operations and marketing at BASF, Degussa and Sandoz. Mr. Cronin and the Company ’ s Managing Director have been appointed as the Company ’ s nominee Directors on the Board of SciDev.

During the Quarter the Company received an R & D Tax Offset amount of $129,000 relating to research and development activities conducted during the 2012/13 financial year.

The Appendix 4C, including the consolidated statement of cash flows, represents a consolidation of the cash flows of the Company, its wholly owned subsidiaries, and SciDev from the acquisition date. Administration costs and corporate overheads include one-off costs associated with the SciDev acquisition amounting to approximately $70,000. The cash balance of the Company at 31 December 2013 was $2.002 million.

Intec Ltd

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Kieran Rodgers Managing Director

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity

Intec Ltd

Intec Ltd
ABN		Quarter ended
		("current quarter")
25 001 150 849		31 December 2013

Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity	Appendix 4C Quarterly report for entities admitted on the basis of commitments Name of entity
Intec Ltd
	ABN						Quarter ended ("current quarter")
	25 001 150 849						31 December 2013
Consolidated statement of cash flows
						Current quarter		Year to date (6 months)
						$A'000		$A'000
Cash flows related to operating activities
1.1 Receipts from product sales and related debtors						236		375
1.2 Payments for
		(a) advertising and marketing				-		-
		(b) zinc bearing concentrate cost of sales				-		-
		(c) production facility costs				(178)		(197)
		(d) administration costs and corporate overheads				(377)		(664)
1.3 Dividends received						-		-
1.4 Interest and other items of a similar nature received						23		58
1.5 Interest and other costs of finance paid						(1)		(1)
1.6 Income tax paid						-		-
1.7 Royalty income						-		-
1.8 Other Income
- R&D tax offset						129		129
- Other						2		66
Net Operating Cash Flows						(166)		(234)
Cash flows related to investing activities
1.9 Payment for acquisition of:
		(a) businesses (50% of Science Developments Pty Ltd)				(1,300)		(1,300)
		(b) equity investments				-		-
		(c) intellectual property				-		-
		(d) physical non-current assets				-		-
		(e) other non-current assets				-		-
1.10 Proceeds from disposal of:						-		-
		(a) businesses				-		-
		(b) equity investments				-		-
		(c) intellectual property				-		-
		(d) physical non-current assets				90		90
		(e) other non-current assets				-		-
1.11 Loans to other entities						-		-
1.12 Loans repaid by other entities						-		-
1.13 Other: Refund of Security Bonds Cashacquired						- 3		80 3
Net investing cash flows						(1,207)		(1,128)
1.14 Total operating and investing cash flows						(1,373)		(1,362)

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C (Continued) Quarterly report for entities admitted on the basis of commitments

			Current	Year to date
			quarter	(6 months)
			$A'000	$A'000
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc.			-	-
1.16 Proceeds from sale of forfeited shares			-	-
1.17 Proceeds from borrowings			71	71
1.18 Repayment of borrowings			-	-
1.19 Dividends paid			-	-
1.20 Other(provide details if material)			-	-
Net financing cash flows			71	71
Net increase (decrease) in cash held			(1,302)	(1,291)
1.21 Cash at beginning of quarter/year			3,414	3,403
1.22 Exchange rate adjustments to item 1.20			-	-
1.23 Cash at end of quarter/year			2,112	2,112
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
1.24 Aggregate amount of payments to the parties included in item 1.2			97
1.25 Aggregate amount of loans to the parties included in item 1.10			-
1.26 Explanation necessary for an understanding of the transactions
	Directors’ fees at normal commercial rates.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but Nil
did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C (Continued)

Quarterly report for entities admitted on the basis of commitments

Financing facilities available

Add notes as necessary for an understanding of the position.

			Amount		Amount
			available		used
			$A'000		$A'000
3.1 Loan facilities			250		219
3.2 Credit standby arrangements			Nil		Nil

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the		Current		Previous
consolidated statement of cash flows) to the related items in the		quarter		quarter
accounts is as follows.		$A'000		$A'000
4.1 Cash on hand and at bank		116		42
4.2 Deposits at call		96		722
4.3 Bank overdraft		-		-
4.4 Term Deposits		1,900		2,650
Total: cash at end ofquarter(item 1.23)		2,112		3,414

Acquisitions and disposals	Acquisitions	Disposals
of business entities	(Item 1.9(a))	(Item 1.10(a))
5.1 Name of entity	Science Developments PtyLtd
5.2 Place of incorporation or registration	Sydney
5.3 Consideration for acquisition or disposal	$1,300,000
5.4 Total net assets	$243,842
5.5 Nature of business	Chemicals

Acquisitions and disposals

of business entities

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does/ ~~does not~~ give a true and fair view of the matters disclosed.

Sign here:

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Date: 31 January 2014

(Directo ~~r/Company secretary~~ )

[Print name: ] [Kieran Rodgers]

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity ’ s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

·	6.2	- reconciliation of cash flows arising from operating
		activities to operating profit or loss
·	9.2	- itemised disclosure relating to acquisitions
·	9.4	- itemised disclosure relating to disposals
·	12.1(a)	- policy for classification of cash items
·	12.3	- disclosure of restrictions on use of cash
·	13.1	- comparative information

1. 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 any) must be complied with.

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31 January 2014