Announcement PDF A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Appendix 4E Preliminary Final Report to the Australian Securities Exchange Part 1 Name of Entity AdAlta Limited ABN 92 120 332 925 Financial Year Ended 30 June 2016 Previous Corresponding Reporting Period 12 months ended 30 June 2015 Part 2 – Results for Announc ement to th e Market $’000 Percentage increase /(decrease) over previous corresponding period 746 % Loss from ordinary activities after tax attributable to members (1,163) % Net loss attributable to members (1,163) % Revenue from ordinary activities Dividends (distributions) Amount per security Franked amount per security Final Dividend Nil Nil Interim Dividend Nil Nil Record date for determining entitlements to the dividends (if any) Not Applicable Brief explanation of any of the figures reported above necessary to enable the figures to be understood: AdAlta Limit ed 1 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 3 – Contents of ASX Append ix 4E SECTION CONTENTS Part 1 Details of entity, reporting period Part 2 Results for announcement to the market Part 3 Contents of ASX Appendix 4E Part 4 Consolidated statement of comprehensive income Part 5 Consolidated accumulated losses Part 6 Consolidated statement of financial position Part 7 Consolidated statement of cash flows Part 8 Basis of preparation Part 9 Loss from ordinary activities Part 10 Commentary on results Part 11 Notes to the consolidated statement of cash flows Part 12 Details relating to dividends Part 13 Loss per share Part 14 Net tangible assets per security Part 15 Details of entities over which control has been gained or lost Part 16 Details of associates and joint venture entities Part 17 Issued securities Part 18 Segment information Part 19 Subsequent events Part 20 Information on audit or review AdAlta Limit ed 2 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 4 – Consolidated Statement of Prof it or Loss and Compr ehensiv e Income Year Ended 30 June 2016 $ Year Ended 30 June 2015 $ 9(a) 8,902 738,046 12,828 887,553 9(b) (1,413,975) (684) (224,620) (57,127) (50,000) (44,556) (119,042) (1,712,080) (723) (203,007) (47,728) (52,032) (83,837) (108,842) (1,910,004) (2,208,249) (1,163,056) (1,307,868) - - (1,163,056) (1,307,868) - - - - (1,163,056) (1,307,868) Part Revenue Interest received Other revenue Expenses Cost of services Depreciation and amortization Employee benefits expense Travel expense Board fees Patent and legal costs Other expenses from ordinary activities Loss before income tax expense Income tax expense Loss after income tax for the year Other comprehensive income Other comprehensive income for the year, net of tax Total comprehensive loss attributable to members of AdAlta Limited AdAlta Limit ed 3 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 5 – Consolidated Accumu lated losses Year Ended 30 June 2016 $ Year Ended 30 June 2015 $ Loss for the year (5,823,295) (1,163,056) (4,515,427) (1,307,868) Accumulated losses at the end of the year (6,986,351) (5,823,295) Accumulated losses at the beginning of the year Part 6 – Consolidated Statement of Finan cial Position 30 June 2016 $ 30 June 2015 $ 485,558 897,247 34,864 931,241 Total Current Assets 1,382,805 966,105 Non-Current Assets Plant and equipment 282 966 Total Non-Current Assets 282 966 1,383,087 967,071 Current Liabilities Trade and other payables Provisions 178,797 36,402 232,649 28,532 Total Current Liabilities 215,199 261,181 Total Liabilities 215,199 261,181 1,167,888 705,890 Issued capital Reserves Accumulated losses 8,150,331 3,908 (6,986,351) 6,525,277 3,908 (5,823,295) TOTAL EQUITY 1,167,888 705,890 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Assets LIABILITIES NET ASSETS/(LIABILITIES) EQUITY AdAlta Limit ed 4 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 7 – Consolidated Statement of Cash Flows Year Ended 30 June 2016 $ Year Ended 30 June 2015 $ Receipts from customers Payments to suppliers and employees R&D tax offset refund received Interest received (2,061,656) 878,394 8,902 23,158 (2,224,366) 805,942 12,828 Net cash (used in) operating activities (1,174,360) (1,382,438) Cash flows from financing activities Proceeds from convertible notes Proceeds from issue of shares 1,625,000 54 1,035,000 - Net cash provided by financing activities 1,625,054 1,035,000 Net (decrease)/increase in cash held 450,694 (347,438) Cash at the beginning of the financial year 34,864 382,302 Cash at the end of the financial year 485,558 34,864 Cash flows from operating activities AdAlta Limit ed 5 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 8 – Basis of Preparation This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E. Part 9 – Loss from Ord inary Ac tiv ities The loss from ordinary activities before income tax includes the following items of revenue and expense: REVENUES AND EXPENSES (a) Other revenue Contract expense Research and development tax incentive Grant income (b) Other expenses Audit Accounting Travel Marketing Subscriptions Other Year Ended 30 June 2016 $ Year Ended 30 June 2015 $ 738,046 738,046 (374) 878,395 9,532 887,553 16,434 19,150 16,214 34,437 16,434 16,373 (119,042) 5,400 17,100 34,839 37,086 1,080 13,337 (108,842) Part 10 – Commen tary on Results The loss of the Company for the year ended 30 June 2016, after accounting for income tax benefit, amounted to ($1,163,056) (30 June 2015: ($1,307,868)). The year ended 30 June 2016 operating results are attributed to the following material items:  Research and Development rebate: $738,046 (30 June 2015: $887,553);  Cost of services $1,413,975 (30 June 2015: $1,712,080); and  Employment benefit expense ($224,620) (30 June 2015: ($203,007)). AdAlta Limit ed 6 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 11 – Notes to the Conso lidated Sta tement of Cash Flows Year Ended 30 June 2016 $ Year Ended 30 June 2015 $ Cash and cash equivalents 485,558 34,864 Cash on hand and at bank 485,558 34,864 (1,163,056) (1,307,868) 684 723 33,994 (53,852) 7,870 (49,528) (31,690) 5,925 (1,174,360) (1,382,438) (a) Reconciliation of cash: For the purposes of the Statement of Cashflows, cash includes cash on hand, and in banks, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the Balance Sheet as follows: (b) Reconciliation of loss for the year to net cash flows from operating activities: Loss for the year Non-cash flows in loss: Depreciation Changes in assets and liabilities: Increase in trade and other receivables Increase/(Decrease) in trade and other payables Increase in provisions Net cash outflows from operating activities Part 12 – Details Rela ting to Dividends Date the dividend is payable N/A Record date to determine entitlement to the dividend N/A Amount per security N/A Total dividend N/A Amount per security of foreign sourced dividend or distribution N/A Details of any dividend reinvestment plans in operation N/A The last date for receipt of an election notice for participation in any dividend reinvestment plans N/A AdAlta Limit ed 7 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 13 – Loss per Share Consolidated Year Ended 30 June 2016 Year Ended 30 June 2015 Basic (loss) per share (32.5 cents) (63 cents) Weighted average number of ordinary shares used in the calculation of basic (loss) per share 3,574,174 2,065,000 As the Company is in a loss position there is no diluted earnings per share calculated. Part 14 – Net Tangible Assets p er Secur ity Net tangible asset backing per ordinary security (cents) 30 June 2016 30 June 2015 9.4 34.2 Part 15 – Details of En tities Over Wh ich Contro l has b een Gained or Lost Name of entity Nil Date deregistered Nil Contribution of the controlled entity (or group of entities) to the profit/(loss) from ordinary activities during the period, from the date of gaining or losing control Nil Profit (loss) from ordinary activities of the controlled entity (or group of entities) for the whole of the previous corresponding period Nil Contribution to consolidated profit/(loss) from ordinary activities from sale of interest leading to loss of control Nil Part 16 – Details of Associates and Joint Venture Entities Ownership Interest 30/06/16 30/06/15 % % Name of entity Associate Joint Venture Entities Aggregate Share of Losses AdAlta Limit ed Contribution to net profit/(loss) Year ended Year ended 30/06/16 30/06/15 $A’000 $A’000 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 8 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 17 – Issu ed Secur ities 30 June 2016 $ 30 June 2015 $ 2,490,333 2,490,279 2,999,998 2,660,000 2,999,998 1,035,000 Share capital 12,418,223 (30 June 2015: 2,065,000) fully paid ordinary shares 2,999,998 (30 June 2015: 2,999,998) series A preference shares 2,660,000 (30 June 2015: 1,035,000) convertible notes The following movements in issued capital occurred during the period: Year Ended 30 June 2016 Year Ended 30 June 2015 Number of Shares Number of Shares Fully paid ordinary shares: At beginning of the reporting period Issue of shares 2,065,000 10,353,223 2,065,000 - At end of the reporting period 12,418,223 2,065,000 Series A preference shares: At beginning of the reporting period At end of the reporting period 2,999,998 2,999,998 2,999,998 2,999,998 Convertible notes: At beginning of the reporting period Mezzanine Finance At end of the reporting period 1,035,000 1,625,000 2,660,000 1,035,000 1,035,000 Options The following options to subscribe for ordinary fully paid shares are outstanding at balance date: Expiry date of options 27 September 2016 1 July 2018 21 September 2018 1 November 2018 1 July 2019 1 November 2019 1 November 2020 *50% of 1,909,951 Options have an exercise price of $0.0002 if exercised within 3 months of vesting, and with the exercise price of the remaining 50% of those options being $0.09 if exercised within 12 months of vesting. Otherwise the exercise price is $0.17. Number of shares under option 252,057 145,976 20,569 381,018 291,953 818,378 234,472 AdAlta Limit ed Class of shares Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Exercise price of option $0.17* $0.17* $0.17* $0.17* $0.17* $0.17* $0.17 9 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 18 – Segme nt Information The Company has identified its operating segments based on the internal reports that are used by the Board (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The Board as a whole will regularly review the identified segments in order to allocate resources to the segment and to assess its performance. The Board considers that the Company has only operated in one segment. Part 19 – Subsequen t Events On 8 July 2016, the Company lodged a prospectus with ASIC for the offer of 32,000,000 and up to 40,000,000 ordinary fully paid shares at a price of $0.25 per share to raise a minimum of $8,000,000 and a maximum of $10,000,000. On 17 August 2016, the Prospectus closed over-subscribed. The Company was admitted to the official list of the ASX on 22 August 2016. On 11 August 2016, the Company’s convertible notes and preference shares converted to ordinary shares. Apart from the above, there were no other significant events subsequent to year ended 30 June 2016 and prior to the date of this report that have not been dealt with elsewhere in this report. AdAlta Limit ed 10 A p p e n d i x 4E P re l i mi n ary Fi n al R e p o rt Part 20 – Audit/Review Status This report is based on accounts to which one of the following applies: (Tick one) The accounts have been audited The accounts are in the process of being audited or subject to review The accounts have been subject to review  The accounts have not yet been audited or reviewed If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification: Not applicable If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification: Not applicable AdAlta Limit ed 11