AERIS ENVIRONMENTAL LTD
ACN 093977336
ANNUAL REPORT 2016
C O N T E N T S
Chairman and CEO Report
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Australian Securities Exchange Additional Information
Corporate Directory
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C H A I R M A N A N D C H I E F E X E C U T I V E
O F F I C E R R E P O R T
Aeris Environmental Ltd (Aeris or the Company) is pleased to present its Annual Report for the financial year ended 30
June 2016. During the period, the Company has assembled and integrated a range of outstanding assets and capabilities,
positioning Aeris as an emerging leader in energy efficiency and green building technologies.
The Company had a cash balance of $5.4 million as at 30 June 2016. Income has more than doubled in the last year, from
a modest base. However, purchase orders and the forward pipeline of revenues have increased much more significantly
in the period. During the early part of the ramp-up period there can be an industry standard lag between the securing
of business and purchase orders, and the delivery / installation that leads to final sales revenue recognition. This is
driven by manufacturing lead times and export transit times, and is characteristic of project work where installation and
commissioning are often determined by the customer’s timelines.
The Company now has an ‘end-to-end’ capability, delivering HVAC and refrigeration hygiene, OEM coating solutions and
a unique capability in building optimisation, measurement and verification, and control via scalable Internet of Things /
building management system solutions.
During the 2015-16 period, two strategic technology acquisitions / integrations were successfully completed. The IMECH
building management business of Tim Richardson, and Arnold Kloer’s JIA Corporation, delivering in-house expertise in
control systems, which have already contributed to the extension and capabilities of the Aeris Smart HUB Ecosystem.
Whilst there have been some additional time and resources applied to both the scope and specification of Aeris’ Smart HUB
programme, the Company believes that the targeted outcome could put Aeris at the forefront of building energy efficiency,
with a focus on control of measurable deliverables, rather than the current practice of delivering big data that has little
impact on the customers’ operations.
The past financial year has seen Aeris form early relationships with leading Australian and international wholesalers, with
a progressive rollout of the AerisGuard ‘clean tech’ consumable range. In tandem, the Company has secured a broad range
of high profile ‘end-user’ customers including AccorHotels Group, BlueScope Steel, Fresh Freight, Auslec / Lawrence
& Hanson, Cushman & Wakefield, Marriott Hotels, Kempinski Hotels, Broadspectrum (formerly Transfield Services),
Queensland Health and many others.
A core undertaking has been the establishment of Aeris’ international distribution capability, with the formation in Singapore
of Aeris Cleantech Asia Pte Ltd with Benjamin Kwek and the expansion of the Company’s operations in Thailand, and key
markets across Asia and Europe. Aeris is now completing an extensive review of the USA market opportunity, covering
potential customers, dealers, wholesales and value-added partners. Initial indications support a targeted near-term market
entry, building on the Company’s ‘clean tech’ consumables and leveraging Aeris’ complete Ecosystem of SmartENERGY
efficiency solutions.
A substantial investigation has been undertaken into a range of off balance sheet finance solutions, allowing the Company’s
customers to have the potential to be both cash flow and P&L positive from the implementation of our shared agreements.
The first of these agreements has been installed, and now commissioned, with Fresh Freight, a leading cold chain logistics
provider to the Australian salmon industry. Aeris is in advanced discussions with two leading Australian banks and a
number of international financial groups with a view to providing pre-approved asset upgrade funding to rated corporate
clients that utilise the Smart HUB Ecosystem.
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ANNUAL REPORT 2016 During the 2015-16 year, Aeris has undertaken the development and release of a next generation OEM technology, with a
number of pivotal local and international launch customers. These proprietary technologies have already generated both
sales and purchase orders to high-profile customers, and the Company is undertaking a final field validation of the new
process, which, if successful, will target a broad cross section of the global OEM coil market.
In parallel, the new Maintenance Corrosion Protection Plus service product is gaining traction and early acceptance of its
technical and application advantages provided by this ‘clean green’ product. An important focus has been applied to the
dual applications of Aeris’ technology to mould remediation and odour control. Early momentum has been such that it has
attracted customer interest from the waste management industry, commercial food production, facilities managers and,
specifically, the hotel industry.
The Company would like to acknowledge the outstanding contribution of its entire team, including the R&D group, its local
and international distribution partners, and the many institutions and collaborators who have helped Aeris develop and
produce the AerisGuard SMART Ecosystem.
Maurie Stang
Non-Executive Chairman
Peter Bush
Chief Executive Officer
AerisGuard consumables for HVAC hygiene, and specialty products
for remediation and bacterial control.
SmartENERGY Ecosystem.
OEM advanced coatings for the prevention of corrosion, mould
and biofilm
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AERIS ENVIRONMENTAL LTD C H A I R M A N A N D C H I E F E X E C U T I V E
O F F I C E R R E P O R T
Financial
•
Scaling customer and distributor purchases in each business unit – AerisGuard consumables
for HVAC hygiene, and specialty products for remediation and bacterial control, SmartENERGY
Ecosystem, OEM advanced coatings for the prevention of corrosion, mould and biofilm.
•
Strong forward pipeline of revenue opportunity in Australia, New Zealand, Thailand, Singapore,
Vietnam, the Philippines, Malaysia and Hong Kong through Aeris’ subsidiaries and partners.
•
•
•
Successful, initial launch of pivotal Aeris wholesale strategy with Heatcraft in Australia
and New Zealand.
Execution of a platinum partnership with HydroKleen, a leading Australian air-
conditioning cleaning and sanitising company, on the exclusive application of the
AerisGuard range across its international customer base, with minimum purchases
for Australian HydroKleen network of A$400,000 per annum and additional volume
requirements for international territories.
Specification by a national retail chain and large-scale health authority for ongoing
use in its facilities across a large Australian state. Continuing to build key accounts in
the high-end facilities management sector with a number of Government and private
sector tender specifications prepared and submitted.
• Ongoing AccorHotels Group, BlueScope Steel, Fresh Freight, Auslec / Lawrence &
Hanson, Cushman & Wakefield, Marriott Hotels, Kempinski Hotels, Broadspectrum
(formerly Transfield Services), Queensland Health and many others.
• Acquisition and successful integration of IMECH building management and automation
business, with Principal, Tim Richardson, joining Aeris. First material end user sale to
high-profile, Australian REIT.
• Aeris Smart HUB design and pre-production activity on fast-track, with successful
integration with Tridium / Niagara.
•
•
•
•
•
First installed Power Share Heads of Agreement executed and installed at Fresh
Freight, a leading food processor. Launch of SmartENERGY platform into single-site,
paid, commercial installations.
Strategic partnership concluded with leading vendor of cloud-based energy and
resource analytic platform, VRT Systems.
Landmark industrial group, BlueScope Steel, adopts AerisGuard and SmartENERGY
product range at its key Port Kembla site, to be supplied through Auslec.
Establishment of strategic relationships with key industry and channel partners,
including assets and facilities management, electrical contractors, energy retailers,
air-conditioning and refrigeration suppliers, and the property sector.
Successfully building a portfolio of near-team opportunities for SmartENERGY across
Australia and Asia, including high-profile shopping centre groups, retail, property,
healthcare and Government opportunities.
• Aeris joins the Large Format Retail Association as the only HVAC energy efficiency
company.
Consumables
Smartenergy
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ANNUAL REPORT 2016 OEM Coatings
•
A growing HVAC OEM coating manufacturing engagement and awareness, with early orders, in
key segments and countries. Active business development in each market and across the Asia
Pacific region.
•
Purchase orders received from leading Asian manufacturers for fourth generation OEM coatings
and SMART optimisation devices. Announcement of Coils International Group agreement for the
supply of novel OEM coatings.
•
Scaling OEM coatings adoption, with orders received, and projected product requirements for
these customers in excess of A$2 million annually.
Surfaces with residual
protection - coatings
•
•
•
Enzymes and water treatment
•
Two key product launches in Australia, with active business development in each key
market and country.
Commencement of shipping of commercial quantities of unique anti-microbial duct
sealing coating with its launch customer in Australia who has projected annual
requirements in excess of A$500,000. Aeris will utilise its expanded sales capability to
drive its Myco Guard Duct Sealant to customers and applicators across the region.
Launch of Aeris’ novel rangehood cleaning solution. Early indications are that the
Aeris rangehood coatings will solve ‘real world’ problems, and deliver lower costs,
time savings, greater compliance and safety for customers and consumers alike. The
focus market for the Company will be global fast food chains and restaurants together
with leveraging its strong contacts in the retail and hospitality sectors. Recognised by
way of a HACCP Australia food safety certification.
Successful pre-commercial R&D user field trials of novel and next generation mould
and odor remediation, ice-cream and food machine sanitation, and cooling tower water
treatment and Surface Cleaner / Sanitiser spray pack with outstanding customer
response.
Biostatic Polymers
•
•
Initial agreement for exclusive distribution of proprietary biofilm / legionella sensor for
incorporation into the Aeris Smart HUB universe.
The potential market opportunity for Aeris’ biostatic polymer systems is expanding.
The Company’s resources continue to focus on the SmartENERGY and coatings
platforms, and near-term product launches.
International
• Pre-market investment in human resources, market and business development
•
Early market entry to be focused on high value-added applications.
activity undertaken for key US and southern European markets. Engagement of North
American Business Development Manager, Peter Redden, with early validation of
large-scale opportunity in the US market for the Aeris portfolio.
•
Launch of Singaporean majority-owned distributor, Aeris Cleantech Asia Pte Ltd
with Benjamin Kwek of ETHA Engineering. Incorporation of European wholly-owned
distributor, Aeris Cleantech Europe, with highly-regarded HVAC company.
• BEX Asia 2016, and highly-successful industry presentation and participation at the
Air-Conditioning, Refrigeration and Building Services show in May 2016.
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AERIS ENVIRONMENTAL LTD D I R E C T O R S ’ R E P O R T
The Directors of Aeris Environmental Ltd submit herewith
the annual financial report for the financial year ended 30
June 2016. In order to comply with the provisions of the
Corporations Act 2001, the Directors report as follows:
DIRECTORS
The names and details of the Directors and Company
Secretary of the Company during or since the end of the
financial year are:
MAURIE STANG
Non-Executive Chairman
Mr Stang is the Director of the Regional Health Care
group of companies and of Novapharm Research. He
has over 32 years’ experience building and managing
successful companies in the Australian healthcare
market, and extensive networks within the life-sciences
and pharmaceutical sectors, both in Australia and
internationally.
Since co-founding the Regional Health Care group, Mr
Stang has been instrumental in building it into one of the
region’s leading healthcare product suppliers, with a
key joint venture in the Australasian dental market, and
successful operating businesses across a range of medical,
pharmaceutical and consumer healthcare sectors.
Director since 2002 – appointed Chairman in 2002.
Directorship of other listed companies held in the last three
years:
•
Chairman of Nanosonics Limited since November 2000
• Non-Executive Deputy Chairman of Vectus Biosystems
Limited since December 2005.
STEVEN KRITZLER
Non-Executive Director
Mr Kritzler is the Technical Director of Novapharm
Research. He has over 41 years of experience in
commercial R&D in the areas of pharmaceutical, medical,
cosmetic and specialty industrial products. Under Mr
Kritzler’s technical direction, Novapharm Research has
become a world-leader in infection control science.
Director since 2002
Directorship of other listed companies held in the last three
years: None.
BERNARD STANG
Non-Executive Director
Mr Bernard Stang (BArch) has a 40-year track record
of building highly-successful companies in the medical,
dental and pharmaceutical industries across Australia
and New Zealand. In addition he is the Chairman and Chief
Executive Officer of property companies Stangcorp Pty
Ltd in Australia and Stoneville Ltd in New Zealand, which
are involved in both the development and investment of
commercial, industrial and residential properties. Mr B
Stang is a Co-Founder and Director of Regional Health Care
Group and Novapharm Research Pty Ltd, which led to the
formation of Aeris Environmental Ltd and Nanosonics Pty
Ltd. He was a Founder and Board member of Nanosonics
Pty Ltd from 14 November 2000 until prior to its listing on
ASX on 15 May 2007 as Nanosonics Limited. He is also a
Founder and Director of Henry Schein Halas, a joint venture
with the NASDAQ-listed Henry Schein, Inc., the leading
wholesale supplier of dental products in Australasia. Mr
B Stang manages a broad portfolio of investments in the
private and listed sectors, and has 40 years of operational
leadership in successful healthcare businesses.
Director since 2002.
Directorship of other listed companies held in the last three
years:
• Non-Executive Director of Vectus Biosystems Limited
Mr Kritzler has an M.Sc from UNSW in the field of Polymer
Chemistry and holds a number of international patents.
since December 2005
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ANNUAL REPORT 2016
PETER BUSH
Chief Executive Officer, Alternate Director
for M and B Stang and Chief Financial
Officer
Mr Bush has a B.Com and CA.
Mr Bush is the Chief Financial Officer of The Regional
Health Care Group (RHCG) and GryphonCapital. RHCG is
one of the region’s leading diversified healthcare product
suppliers, with successful businesses across a range
of medical, pharmaceutical, consumer healthcare and
research and development sectors. GryphonCapital is an
independent merchant bank that facilitates the financing
and development of emerging health-care related entities.
Mr Bush began his career working for 5 years at BDO, a
global accounting and consulting firm, and has since spent
a number of years working in industry. Mr Bush holds a
number of private directorships and board positions.
Alternate Director since 2011.
Directorship of other listed companies held in the last three
years:
• Non-Executive Director of Vectus Biosystems Limited
since July 2015.
COMPANY SECRETARY
Mr Robert J Waring BEc, CA, FCIS, FFin, FAICD was
appointed to the position of Company Secretary in 2002.
Mr Waring has over 41 years experience in financial and
corporate roles, including over 26 years in company
secretarial roles for ASX listed companies and over 20 years
as a Director of ASX listed companies. Mr Waring has over
31 years experience in industry and prior to that, spent nine
years with an international firm of chartered accountants.
He is a Director of Oakhill Hamilton Pty Ltd, which provides
secretarial and corporate advisory services to a range of
listed and unlisted companies. Mr Waring is also presently
the Company Secretary of ASX-listed companies Nanosonics
Limited, Vectus Biosystems Limited, Brain Resource
Limited, Intec Ltd and Xref Limited.
Share Registry
Computershare Investor Services Pty Ltd
Yarra Falls, 452 Johnston Street
Abbotsford VIC 3067
GPO Box 2975, Melbourne
VIC 3001
Telephone: +61 3 9415 4000
Web: www.computershare.com
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AERIS ENVIRONMENTAL LTD
D I R E C T O R S ’ R E P O R T
DIRECTORS’ MEETINGS
The following tables set out the number of Directors’ meetings and Committee meetings held during the financial year and
the number of meetings attended by each Director (while they were a Director).
Board of Directors
Audit Committee
Corporate Governance
Remuneration and Nomination
Meetings
Meetings
Committee Meetings
Committee Meetings
Number of meetings held
Number of meetings attended
Maurie Stang
Steven Kritzler
Bernard Stang
7
7
6
6
2
2
-
1
1
1
1
-
1
1
-
1
In addition to the above meetings the Board and senior executives conduct formal management meetings.
COMMITTEE MEMBERSHIP
As at the date of this report, the Company had an Audit Committee, a Corporate Governance Committee and a Remuneration
and Nomination Committee of the Board of Directors. Members acting on the Committees of the Board during the year were:
Audit Committee
Bernard Stang (Chairman)
Maurie Stang
Corporate Governance Committee
Maurie Stang (Chairman)
Bernard Stang
Remuneration & Nomination Committee
Maurie Stang (Chairman)
Bernard Stang
PRINCIPAL ACTIVITIES
The principal activities of the consolidated entity during the course of the financial year were:
• Research, development, commercialisation of proprietary technologies and global distribution of the AerisGuard range
of products;
• Provision of HVAC/R Hygiene and Remediation Technology; and
• Provision of Energy Efficiency services.
There is no significant change in the nature of activities performed by the Company during the year.
REVIEW OF OPERATIONS
The results of the operations of the consolidated entity during the financial year were as follows:
Income
Expenses
Loss after income tax
2016 ($)
1,961,488
(4,027,419)
(2,065,931)
2015 ($)
874,389
(2,891,301)
(2,016,912)
For a comprehensive review of the Company’s operational performance please refer to the attached Chairman’s and Chief
Executive Officer’s Report.
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ANNUAL REPORT 2016
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AERIS ENVIRONMENTAL LTD
D I R E C T O R S ’ R E P O R T
DIVIDENDS
The Directors do not recommend the payment of a dividend
in respect of the year ended 30 June 2016 (2015: Nil). No
dividends have been paid or declared since the start of the
financial year.
Director in relation to any liability incurred as a result of
being a Director of the Company except where there is lack
of good faith.
During or since the financial year, the Company has not
indemnified or agreed to indemnify the auditor of the Company
or any related entity against a liability incurred by the auditor.
SIGNIFICANT CHANGES IN STATE OF
AFFAIRS
Insurance premiums
There have been no significant changes in the state of
affairs of the consolidated entity.
SIGNIFICANT EVENTS AFTER THE
BALANCE DATE
In the opinion of the Directors, no matters or circumstances
have arisen since the end of the financial year that have
significantly affected, or may significantly affect, the
operations of the consolidated entity, the results of those
operations or the state of affairs of the consolidated entity
in future financial years.
LIKELY DEVELOPMENTS AND
EXPECTED RESULTS
Disclosure of information other than that disclosed
elsewhere in this report regarding likely developments in
the operations of the consolidated entity in future financial
years and the expected results of those operations is likely
to result in unreasonable prejudice to the consolidated
entity. Accordingly, this information has not been disclosed
in this report.
During the financial year, the Company paid a premium in
respect of a contract to insure its Directors and executives
against a liability to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits disclosure of
the nature of liability and the amount of the premium.
During the financial year, the Company has not paid a premium
in respect of a contract to insure the auditor of the Company.
PROCEEDINGS ON BEHALF OF THE
COMPANY
No person has applied for leave of Court to bring
proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Company
for all or part of those proceedings.
The Company was not a party to any such proceedings
during the year.
DIRECTORS’ INTERESTS
Equity Holdings
ENVIRONMENTAL REGULATIONS
The economic entity is not subject to any significant
environmental Commonwealth or State regulation in
respect of its operating activities.
INDEMNIFICATION OF OFFICERS AND
AUDITORS
Indemnification
The Company has Deeds of Access and Indemnity with each
of the Directors, by which the Company indemnifies each
Maurie Stang
Bernard Stang
Steven Kritzler
Peter Bush
Ordinary shares
Options over
ordinary shares
19,816,267
15,928,109
8,331,609
-
-
-
-
750,000
Options granted to directors and
officers of the company
During or since the end of the 2016 financial year, the
Company has not granted any options for no consideration
over unissued ordinary shares in Aeris Environmental Ltd.
9
ANNUAL REPORT 2016 During the 2015 financial year, Company granted the
following options:
• Peter Bush (Chief Executive Officer and Alternate
Director) - 500,000 options
PARTICULARS OF OPTIONS GRANTED
OVER UNISSUED SHARES:
2016
2015
Options granted by the Company
1,270,000
1,470,000
over unissued ordinary shares.
Shares issued in the period as the
-
125,000
result of the exercise of options.
OFFICERS OF THE COMPANY WHO
ARE FORMER AUDIT PARTNERS OF
UHY HAINES NORTON
There are no officers of the company who are former audit
partners of UHY Haines Norton
AUDITORS
UHY Haines Norton continues in office in accordance with
section 327 of the Corporations Act 2001.
AUDITORS’ INDEPENDENCE
DECLARATION
Options expired during the period.
200,000
-
Options granted during the period.
-
1,000,000
The Auditors’ Declaration of Independence for the year ended
30 June 2016 is attached to this Directors’ Report on page 19.
Full details of options on issue are shown in Note 18.
CORPORATE GOVERNANCE
NON-AUDIT SERVICES
During the year UHY Haines Norton, the Company’s auditor,
performed certain other services in addition to their
statutory duties.
The Board has considered the non-audit services provided
during the year by the auditor and in accordance with written
advice provided by resolution of the audit committee, is
satisfied that the provision of those non-audit services
during the year by the auditor is compatible with, and did not
compromise, the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
• All non-audit services were subject to the corporate
governance procedures adopted by the Company and have
been reviewed by the audit committee to ensure they do
not impact the integrity and objectivity of the auditor.
• None of the services undermine the general principles
relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants issued
by the Accounting Professional and Ethical Standards
Board, including reviewing or auditing the auditor’s
own work, acting in a management or decision-making
capacity for the company, acting as advocate for the
company or jointly sharing economic risks and rewards.
Aeris Environmental Ltd’s Corporate Governance Statement
and ASX Appendix 4G are released to ASX on the same day
the Annual Report is released.
The Company’s Corporate Governance Statement, and its
Corporate Governance Compliance Manual, can be all found
on the Company’s website at: http://www.aeris.com.au/
investor-center/
KEY MANAGEMENT PERSONNEL
The key management personnel of the Company comprise
the Directors, Chief Executive Officer and Company
Secretary only as follows:
Non-Executive Directors
Maurie Stang
Bernard Stang
Steven Kritzler
Executive
Peter Bush (Chief Executive Officer and Alternate Director)
Company Secretary
Robert Waring
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AERIS ENVIRONMENTAL LTD D I R E C T O R S ’ R E P O R T
R E M U N E R A T I O N R E P O R T ( A U D I T E D )
REMUNERATION POLICIES
e. Share option based compensation
Details of Aeris’ remuneration policies and practices,
together with details of Directors’ and Executives’
Remuneration, are as follows:
a. Overview of remuneration structure
The objective of the Company’s executive reward
framework is to ensure reward for performance is
competitive and appropriate for the results delivered.
Processes have been established to ensure that the
levels of compensation and remuneration are sufficient
and reasonable, and explicitly linked to the achievement
of personal and corporate objectives. The short and
long-term incentive plans are specifically aligned to
shareholder interests.
Aeris’ Remuneration and Nomination Committee advises
the Board on remuneration policies and practices
generally, and makes specific recommendations on
remuneration packages and other terms of employment
for staff, including Directors, the Company Secretary and
Senior Managers of the Company.
The Committee has access to the advice of independent
remuneration consultants to ensure the remuneration
and incentive schemes are consistent with its philosophy
as well as current market practices
b. Non-executive directors
No payments were made during the year to any Non-
Executive Director for their services. This is reviewed
annually.
c. Executives
The objective of Aeris’ executive reward system is to
ensure that remuneration for performance is competitive
and appropriate for the results delivered.
Executive pay structures include a base salary and
superannuation. In addition, executives and senior managers
can participate in the Employee Share Option Plan.
d. Short-term incentive (STI) scheme
Aeris has not established any STI scheme for its Key
Management Personnel. During the financial year ended
30 June 2016 no amounts were paid as STIs.
In February 2005, Aeris established an Employee Share
Option Plan (ESOP). The plan was approved by shareholders
at the Annual General Meeting held on 25 November 2004.
The plan was re-approved by shareholders at the Annual
General Meeting held on 27 November 2014.
The terms of the Employee Share Option Plan provides
for the following conditions :
i. Vesting
33.33% vest on the first anniversary of grant of options
33.33% vest on the second anniversary of grant of options
33.34% vest on the third anniversary of grant of options
ii. The contractual life of the options issued ranges 3-5
years.
iii. The exercise price determined in accordance with the
Rules of the plan is based on the weighted average price
of the Company’s shares for the 20 trading days prior to
the offer.
iv. Each option is convertible to one ordinary share.
v. All options expire on the earlier of their expiry date or
90 days after voluntary termination of the participant’s
employment.
vi. There are no voting or dividend rights attached to
the options. There are no voting rights attached to the
unissued ordinary shares. Voting rights will be attached
to the ordinary shares which will be issued when the
options have been exercised.
vii. The options issued are on an equity settled basis.
There are no cash settlement alternatives.
EQUITY HOLDINGS TRANSACTIONS
The movement during the reporting period in the number
of ordinary shares in Aeris Environmental Ltd held directly,
indirectly, or beneficially by each specified Director and
specified executive including their personally-related
entities, are as follows:
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ANNUAL REPORT 2016
2016
Shares
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Peter Bush
Specified executives
Robert Waring
Number held
Acquired during year
Sold during year
Issued on exercise
Number held
30 June 2015
of options
30 June 2016
18,816,267
14,928,109
7,331,609
-
103,000
41,178,985
1,000,000
1,000,000
1,000,000
-
-
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
19,816,267
15,928,109
8,331,609
-
103,000
44,178,985
Options
Number held
Granted during year
Lapsed
Exercised
Number held
30 June 2015
during year
during year
30 June 2016
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Peter Bush
Specified executives
Robert Waring
2015
Shares
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
-
-
-
750,000
-
750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
-
750,000
Number held
Acquired during year
Sold during year
Issued on exercise
Number held
30 June 2014
18,816,267
14,928,109
7,331,609
-
-
-
David Fisher (Resigned 31 July 2014)
25,000
140,000
Peter Bush
Specified executives
Robert Waring
-
103,000
41,203,985
-
-
140,000
of options
30 June 2015
-
-
-
-
-
-
-
18,816,267
14,928,109
7,331,609
165,000
-
103,000
41,343,985
-
-
-
-
-
-
-
Options
Number held
Granted during year
Lapsed
Exercised
Number held
30 June 2014
during year
during year
30 June 2015
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
David Fisher (Resigned 31 July 2014)
Peter Bush
Specified executives
Robert Waring
-
-
-
-
-
-
-
-
250,000
500,000
-
250,000
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
-
750,000
12
AERIS ENVIRONMENTAL LTD D I R E C T O R S ’ R E P O R T
R E M U N E R A T I O N R E P O R T ( A U D I T E D )
TRANSACTIONS WITH DIRECTORS AND DIRECTOR RELATED ENTITIES
A number of specified directors, or their personally-related entities, hold positions in other entities that result in them
having control or significant influence over the financial or operating policies of those entities.
A number of these entities transacted with the Company in the reporting period. The terms and conditions of those
transactions were no more favourable than those available, or which might reasonably be expected to be available, on
similar transactions to unrelated entities on an arms length basis.
Details of these transactions are shown below:
Regional Healthcare Group Pty Ltd
The company and its controlled entities paid for services provided by Regional Healthcare Group Pty Ltd.
Office and Administration expenses
Rent
Distribution expenses
Corporate services
2016 ($)
2015 ($)
140,016
110,757
36,775
29,295
69,602
46,656
22,225
108,250
Mr M Stang and Mr B Stang are Directors and shareholders of Regional Healthcare Group Pty Ltd.
Stangcorp Pty Ltd
The Company and its controlled entities paid for services provided by Stangcorp Pty Ltd.
Electricity
-
375
Mr M Stang and Mr B Stang are Directors and shareholders of Stangcorp Pty Ltd.
Novapharm Research (Australia) Pty Ltd
The company and its controlled entities paid for services provided by Novapharm Research (Australia) Pty Ltd.
Research and Development
Patent and other expenses
Mr M Stang, S Kritzler and B Stang are Directors and shareholders of Novapharm Research (Australia) Pty Ltd.
Ramlist Pty Ltd
The Company and its controlled entities paid rent and utility outgoings to Ramlist Pty Ltd.
Mr M Stang and Mr B Stang are Directors and shareholders of Ramlist Pty Ltd.
Loan from Directors (contributed equally by M Stang, B Stang and S Kritzler)
Interest on loans
Loan borrowings
Loan repaid
Mr M Stang, S Kritzler and B Stang are Non-Executive Directors and shareholders of the Company.
Outstanding balances payable from purchases of services
Regional Healthcare Group Pty Ltd
Novapharm Research (Australia) Pty Ltd
Ramlist Pty Ltd
Outstanding balances at year end are unsecured, interest free and settlement occurs in cash
Outstanding loan balances
Directors’ loan
Interest is charged on these loans at 5.45% per annum (ATO benchmark rates)
140,231
155,379
116,166
130,584
13,625
5,622
94,961
153,578
-
715,000
1,500,000
250,000
746
(6,010)
289
21,444
3,319
-
1,015,000
2,515,000
13
ANNUAL REPORT 2016
DETAILS OF DIRECTORS’ AND EXECUTIVE OFFICERS’ REMUNERATION FOR THE
YEAR ENDED 30 JUNE 2016
Short term benefits
Post employment
benefits
Salary and
Director's Fees
STI Cash
bonus
Non-monetary
benefits
Superannuation
Other long-
term benefits
Equity based benefits
Shares
Options
(Note (ii))
Total
Performance
Related
$
$
$
$
$
$
$
$
%
Non-Executive
Directors
Maurie Stang
Bernard Stang
Steven Kritzler
Total Non-Executive
Directors
Executive Directors
Total Directors
Executives (Note (i))
Peter Bush
Robert Waring
Total
-
-
-
-
-
-
195,506
53,164
248,670
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,573
-
18,573
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
925
215,004
-
53,164
925
268,168
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
14
AERIS ENVIRONMENTAL LTD D I R E C T O R S ’ R E P O R T
R E M U N E R A T I O N R E P O R T ( A U D I T E D )
DETAILS OF DIRECTORS’ AND EXECUTIVE OFFICERS’ REMUNERATION FOR THE
YEAR ENDED 30 JUNE 2015
Short term benefits
Post employment
benefits
Salary and
Director's Fees
STI Cash
bonus
Non-monetary
benefits
Superannuation
Other long-
term benefits
Equity based benefits
Shares
Options
(Note (ii))
Total
Performance
Related
$
$
$
$
$
$
$
$
%
Non-Executive
Directors
Maurie Stang
Bernard Stang
Steven Kritzler
David Fisher
(Resigned 31 July 2014)
Total Non-Executive
Directors
Executive Directors
Total Directors
Executives (Note (i))
Peter Bush
Robert Waring
Total
-
-
-
-
-
-
-
-
75,382
75,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,060
-
-
-
-
-
-
-
25,060
0.0%
0.0%
0.0%
0.0%
-
25,060
-
25,060
-
-
-
-
-
-
25,060
-
-
-
0.0%
25,060
-
-
617
617
-
75,382
0.0%
0.0%
25,060
617
101,059
Notes to the tables of details of directors' and executive officers' remuneration.
(i)
“Executive Officers” are officers who are or were involved in, concerned in, or who take part in, the management of the
affairs of Aeris and/or related bodies corporate.
(ii) The fair value of the options is calculated at the date of grant using a Black-Scholes model and allocated to each
reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair
value of the options allocated to this reporting period. In valuing the options, market conditions have been taken into
account in both the current and prior periods. Comparative information was not restated as market conditions were
already included in the valuation.
The following factors and assumptions were used in determining the fair value of options on grant date.
Grant Date
Expiry Date
Fair value at grant
date
Exercise price
Price of shares on
grant date
Estimated volatility
Risk free interest
rate
17-Nov-11
17-Nov-16
17-Nov-11
17-Nov-16
08-Jan-15
31-Jul-16
$0.0745
$0.0869
$0.0031
$0.19
$0.17
$0.31
$0.21
$0.21
$0.28
20.5%
20.5%
5.7%
5.00%
5.00%
3.00%
15
ANNUAL REPORT 2016 EMPLOYMENT CONTRACTS
Chief Executive Officer (CEO) :
The following sets out the key terms of employment agreement for the CEO, Peter Bush.
Contract term:
Continuous employment until notice is given by either party
Fixed remuneration:
$219,000
This is reviewed annually.
Notice period:
To terminate the employment, Mr Bush is required to provide Aeris with 3 months written
Resignation or termination:
On resignation, unless the Board determines otherwise:
notice. Aeris must provide 3 months written notice.
All unvested short term or long term benefits are forfeited.
All vested but unexercised benefits are forfeited after 90 days following cessation of
employment.
Statutory entitlements:
Annual leave applies in all cases of separation. Long Service applies unless service is under 10
years and he is dismissed for misconduct.
Termination for serious misconduct:
Aeris may immediately terminate employment at any time in case of serious misconduct, and
Mr Bush will only be entitled to payment of fixed remuneration until termination date. Such
termination will result in all unvested benefits being forfeited. Treatment of any vested but
unexercised benefits will be at the discretion of the Board.
Post-Termination Restraint of Trade:
For a period of 6 months or, if that period is unenforceable, 3 months after termination of
employment, Mr Bush must not in the area of Australia or, if that area is unenforceable, New
South Wales:
i. solicit, canvass, approach or accept any approach from any person who was at any time during
his last 12 months with the Company a client of the Company in that part or parts of the business
carried on by the Company in which he was employed with a view to obtaining the custom of that
person in a business that is the same or similar to the business conducted by the Company; or
ii. interfere with the relationship between the Company and its customers, employees or
suppliers; or
iii. induce or assist in the inducement of any employee of the Company to leave their employment.
There are no other contracts to which a Director is a party or under which a Director is entitled to a benefit other than as
disclosed above and in note 26 to the financial statements.
16
AERIS ENVIRONMENTAL LTD D I R E C T O R S ’ R E P O R T
R E M U N E R A T I O N R E P O R T ( A U D I T E D )
LINK BETWEEN REMUNERATION AND PERFORMANCE AND STATUTORY
PERFORMANCE INDICATORS
The table below shows measures of the group’s financial performance over the last five years as required by the
Corporations Act 2001. However, these are not necessarily consistent with the measures used in determining the variable
amounts of remuneration to be awarded to KMPs. As a consequence, there may not always be a direct correlation between
the statutory key performance measures and the variable remuneration awarded.
Loss for the year attributable to owners of Aeris
Environmental Ltd
Basic loss per share (cents per share)
Dividend payments
Increase/(decrease) in share price (%)
Total KMP remuneration as percentage of loss for the year (%)
2016
2015
2014
2013
2012
(2,062,726)
(2,016,912)
(1,067,893)
(1,132,159)
(1,297,924)
(1.35)
-
(6.67%)
(13.00%)
(1.55)
-
309.09%
(5.01%)
(0.91)
-
(31.25%)
(3.63%)
(0.99)
-
(5.88%)
(9.65%)
(1.23)
-
(10.53%)
(13.07%)
The Group's revenue from ordinary activities in 2016 recorded an increase by 72% and gross profit by 83%.
Company is also in discussions with management and remuneration consultants to structure and align KMP remuneration
to strategic business objectives with an aim of creation of shareholder wealth.
17
ANNUAL REPORT 2016 SHARE OPTIONS
750,000 options to take up ordinary shares in Aeris Environmental Ltd issued to key management personnel remain
unexercised at 30 June 2016 (2015: 750,000 options).
No options were granted to key management personnel during the year ended 30 June 2016.
Following options were issued to key management personnel during the year ended 30 June 2015:
• Peter Bush (Alternate Director and Chief Executive Officer) 500,000 Options
There were no options issued to key management personnel which expired or were forfeited during the years 2015 and 2016.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the company or any related
body corporate or in the interest of any other registered scheme.
Signed in accordance with a resolution of the directors made pursuant to s. 298(2) of the Corporations Act 2001.
On behalf of the Directors
M STANG
Director
Sydney, 30 September 2016
18
AERIS ENVIRONMENTAL LTD A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N
Auditor's Independence Declaration
To the Directors of Aeris Environmental Ltd
Level 11 | 1 York Street | Sydney | NSW | 2000
GPO Box 4137 | Sydney | NSW | 2001
t: +61 2 9256 6600 | f: +61 2 9256 6611
sydney@uhyhn.com.au
www.uhyhnsydney.com.au
In accordance with the requirements of Section 307C of the Corporations Act 2001, as lead auditor for the
audit of Aeris Environmental Ltd for the year ended 30 June 2016, I declare that, to the best of my
knowledge and belief, there have been:
(i) No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
(ii) No contraventions of any applicable code of professional conduct in relation to the audit.
M. D. Nicholaeff
Partner
Sydney
30 September 2016
UHY Haines Norton
Chartered Accountants
An association of independent fi rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting fi rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
19
ANNUAL REPORT 2016
20
AERIS ENVIRONMENTAL LTD C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S
A N D O T H E R C O M P R E H E N S I V E I N C O M E
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
Continuing Operations
Revenue
Cost of sales
Gross profit
Other revenue
Administration expenses
Depreciation and amortisation expense
Distribution expense
Employee benefits expense
Financial expenses
Impairment expense
Research and development expense
Occupancy expenses
Provision for doubtful debt expense
Sales, Marketing and Travel expenses
Loss before income tax from continuing operations
Income tax benefit
Net loss for the period
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences
Total comprehensive loss for the period, net of tax
Loss for the period attributable to:
Owners of Aeris Environmental Ltd
Non-controlling interest
Total comprehensive loss for the period attributable to:
Owners of Aeris Environmental Ltd
Non-controlling interest
Earnings per share
Basic loss per share (cents per share)
Loss from continuing operations
Diluted loss per share (cents per share)
Loss from continuing operations
Note
2016
$
2015
$
4
4
5
5
5
5
5
5
5
1,378,086
800,886
(350,272)
(239,884)
1,027,814
561,002
583,402
73,503
(820,233)
(557,601)
(33,788)
(85,282)
(7,809)
(58,716)
(1,669,153)
(883,937)
(97,788)
(164,866)
(30,957)
(13,621)
(449,688)
(380,001)
(225,982)
(153,016)
-
(12,382)
(687,469)
(440,697)
(2,489,126)
(2,038,141)
6a
423,195
21,229
(2,065,931)
(2,016,912)
(6,810)
(20,298)
(2,072,741)
(2,037,210)
(2,062,727)
(2,016,912)
21
(3,204)
-
(2,065,931)
(2,016,912)
(2,069,537)
(2,037,210)
(3,204)
-
(2,072,741)
(2,037,210)
21
7
(1.35)
(1.55)
(1.35)
(1.55)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
21
ANNUAL REPORT 2016 C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L
P O S I T I O N
AS AT 30 JUNE 2016
CURRENT ASSETS
Cash and cash equivalents
Financial assets
Trade and other receivables
Inventories
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Intangible assets
Property, plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Interest bearing liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
Non-controlling interest
TOTAL EQUITY
Note
2016
$
2015
$
9A
9B
10
11
12
13
13
14
14
15
16
17
19
20
21
5,415,664
3,855,574
-
4,800,000
1,192,045
143,467
170,933
135,634
46,763
64,751
6,914,276
8,910,555
-
151,281
151,281
30,957
26,314
57,271
7,065,557
8,967,826
447,997
343,546
114,275
49,541
1,015,000
2,515,000
1,577,272
2,908,087
10,764
10,764
22,876
22,876
1,588,036
2,930,963
5,477,521
6,036,863
40,100,112
38,600,112
1,180,709
1,186,581
(35,812,557)
(33,749,830)
9,257
-
5,477,521
6,036,863
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
22
AERIS ENVIRONMENTAL LTD
(2,103,878)
(2,016,912)
(20,298)
(2,037,211)
10,213,004
(80,400)
770
44,578
6,036,863
(2,065,931)
(6,810)
(2,072,741)
C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S
I N E Q U I T Y
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
Equity
Reserves
$
$
Accumulated
Non-controlling
Total attributable to equity
losses
$
interest
holders of the entity
$
$
Balance at 1 July 2014
28,467,508
1,161,531
(31,732,918)
Loss for the year
Other comprehensive income / (loss)
Total comprehensive loss for the year
-
-
-
-
(2,016,912)
(20,298)
(20,298)
-
(2,016,912)
Transactions with owners in their capacity as owners:
Shares issued during year
Share issue cost
Value of employee services under ESOP
Shares issued as consideration for business combinations
10,213,004
(80,400)
-
-
-
-
770
44,578
.
-
-
-
-
Balance at 30 June 2015
38,600,112
1,186,581
(33,749,830)
-
-
-
-
-
-
-
-
-
Loss for the year
Other comprehensive income / (loss)
Total comprehensive loss for the year
Non-controlling interest
-
-
-
-
-
(2,062,727)
(3,204)
(6,810)
(6,810)
-
-
(2,062,727)
(3,204)
-
-
12,461
12,461
Transactions with owners in their capacity as owners:
Shares issued during year
Value of employee services under ESOP
1,500,000
-
-
938
-
-
-
-
1,500,000
938
Balance at 30 June 2016
40,100,112
1,180,709
(35,812,557)
9,257
5,477,521
The above statement of changes in equity should be read in conjunction with the accompanying notes.
23
ANNUAL REPORT 2016
C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
R&D tax offset rebate received
Interest and other income received
Interest paid
Note
2016
$
2015
$
819,277
819,796
(4,450,469)
(2,673,680)
71,235
583,402
21,229
73,503
(97,788)
(171,022)
Net cash provided by/(used in) operating activities
33 (b)
(3,074,345)
(1,930,174)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in Term Deposits
Purchase of property, plant and equipment
4,800,000
(4,800,000)
(158,755)
(28,435)
Net cash provided by/(used in) investing activities
4,641,245
(4,828,435)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Shares Issue
Share Issue Cost
Loans repaid*
Loans borrowed
Net cash provided by financing activities
-
-
-
-
10,087,944
(80,400)
(250,000)
715,000
-
10,472,544
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,566,900
3,713,934
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR
3,855,574
161,938
Effects of exchange rate changes on cash and cash equivalents
(6,810)
(20,298)
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
5,415,664
3,855,574
*During the 2016 financial year, Directors' loan amounting to $1,500,000 was repaid by issuing 3,000,000 company's ordinary
shares. This did not have any effect on the group's cash flow.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
24
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
NOTE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Summary of significant accounting policies
Financial risk management
Critical accounting estimates and judgments
Revenue
Expenses
Income tax
Loss per share
Auditors’ remuneration
Cash and other financial assets
Current trade and other receivables
Inventories
Other current assets
Non-current assets
Current trade and other payables and provisions
Current interest bearing payables
Non current provisions
Contributed equity
Options
Reserves
Accumulated losses
Non-controlling interests
Particulars relating to controlled entities
Commitments for expenditure
Key management personnel disclosures
Share based payments
Related party disclosures
Financial instruments disclosures
Contingent liabilities
Additional company information
Subsequent events
Operating Segments
Information relating to Parent Entity
Notes to cash flow statements
Business combinations
ANNUAL REPORT 2016
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Corporate information
Statement of Compliance
The financial report of Aeris Environmental Ltd (the
Company) for the year ended 30 June 2016 was authorised
for issue in accordance with a resolution of the Directors on
28 September 2016.
Aeris Environmental Ltd (the parent) is a company limited
by shares incorporated in Australia whose shares are
publicly listed on the Australian Stock Exchange (ASX code:
AEI).
The nature of the operations and principal activities of the
Group are described in the Directors’ Report.
Basis of preparation
This financial report is a general purpose financial
report that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board and the
Corporations Act 2001.
The financial report has been prepared on an accruals basis
and is based on historical costs, modified where applicable,
by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities.
Going Concern
The Group has incurred an operating loss of $2,065,931 for
the year ended 30 June 2016 and has a net asset balance
of $5,477,521 as at 30 June 2016. A liability for loans from
related parties of $1,015,000 is reflected in the overall net
asset balance of $5,477,521. The cash balance as at 30 June
2016 aggregated to $5,415,664.
The Financial Report has been prepared on a going concern
basis. The Directors consider the Group has adequate
funding and significant value of sales pipeline and therefore,
no adjustments have been made to the financial report that
might be necessary should the Group not continue as a
going concern.
Australian Accounting Standards set out accounting policies
that the AASB has concluded would result in a financial
report containing relevant and reliable information about
transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial
statements and notes also comply with International
Financial Reporting Standards.
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.
Any significant impact on the accounting policies of the
consolidated entity from the adoption of these Accounting
Standards and Interpretations are disclosed below. The
adoption of these Accounting Standards and Interpretations
did not have any significant impact on the financial
performance or position of the consolidated entity.
• AASB 2015-9 - Amendments to Australian Accounting
Standards – Conceptual Framework, Materiality and
Financial Instruments.
The Standard contains three main parts and makes
amendments to a number of Standards and Interpretations.
Part A of AASB 2013-9 makes consequential amendments
arising from the issuance of AASB CF 2013-1.
Part B makes amendments to particular Australian
Accounting Standards to delete references to AASB 1031
and also makes minor editorial amendments to various
other standards.
Part C makes amendments to a number of Australian
Accounting Standards, including incorporating Chapter 6
Hedge Accounting into AASB 9 Financial Instruments.
26
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
• AASB 2013-9 - Amendments to Australian Accounting
Standards arising from the Withdrawal of AASB 1031
Materiality.
The Standard completes the AASB’s project to remove
Australian guidance on materiality from Australian
Accounting Standards.
The adoption of the above standards did not have a material
impact on the group.
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and
interpretations are effective for financial years beginning
after 1 July 2016 and have not been applied in preparing
these consolidated financial statements. Of the new
standards, only the following are expected to have an effect
on the consolidated financial statements of the Group:
• AASB 9 Financial instruments, which becomes mandatory
for Aeris Environmental Ltd’s 2019 consolidated financial
statements.
• AASB 15 Revenue from contracts with customers, which
becomes mandatory for Aeris Environmental Ltd’s 2019
consolidated financial statements.
• AASB 16 Leases, which becomes mandatory for Aeris
Environmental Ltd 2020 consolidated financial statements.
The Group has yet to undertake a detailed assessment of
these new standards. At this stage, the Group is not able
to estimate the impact of the new rules on the Group’s
financial statements. The Group will make more detailed
assessments of the impact over the next financial years.
i. Business Combinations
The acquisition method of accounting is used to account
for business combinations regardless of whether equity
instruments or other assets are acquired. The consideration
transferred is the sum of the acquisition-date fair values
of the assets transferred, equity instruments issued or
liabilities incurred by the acquirer to former owners of the
acquiree and the amount of any non-controlling interest
in the acquiree. For each business combination, the non-
controlling interest in the acquiree is measured at either
fair value or at the proportionate share of the acquiree’s
identifiable net assets. All acquisition costs are expensed as
incurred to profit or loss.
The difference between the acquisition-date fair value
of assets acquired, liabilities assumed and any non-
controlling interest in the acquiree and the fair value of
the consideration transferred and the fair value of any
pre-existing investment in the acquiree is recognised
as goodwill. If the consideration transferred and the
pre-existing fair value is less than the fair value of the
identifiable net assets acquired, being a bargain purchase
to the acquirer, the difference is recognised as a gain
directly in profit or loss by the acquirer on the acquisition-
date, but only after a reassessment of the identification
and measurement of the net assets acquired, the non-
controlling interest in the acquiree, if any, the consideration
transferred and the acquirer’s previously held equity
interest in the acquirer.
ii. Borrowing costs
Borrowing costs include interest or finance charges in
respect of finance leases. Interest payments in respect of
financial instruments classified as liabilities are included in
borrowing costs. Borrowing costs are expensed as incurred.
Significant accounting policies
iii. Cash and cash equivalents
Accounting policies are selected and applied in a manner
which ensures that the resultant financial information
satisfies the concepts of relevance and reliability, thereby
ensuring that the substance of the underlying transactions
and other events are reported.
The following significant accounting policies have been adopted
in the preparation and presentation of the financial report and
have been consistently applied unless otherwise stated.
Cash and cash equivalents comprise cash on hand, cash
in banks, investments in money market instruments and
short-term deposits with a maturity of three months or less,
net of outstanding bank overdrafts.
iv. Comparative amounts
Where necessary, comparative amounts have been changed
to reflect changes in disclosures in the current year.
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ANNUAL REPORT 2016
v. Depreciation
All assets have limited useful lives and are depreciated/
amortised using the straight line method over their estimated
useful lives, taking into account residual values. Depreciation
and amortisation rates and methods are reviewed annually for
appropriateness. Depreciation and amortisation are expensed.
Depreciation and amortisation are calculated on a straight
line basis so as to write off the net cost or other revalued
amount of each asset over its expected useful life.
The following estimated useful lives are used in the
calculation of depreciation.
- Computer equipment
- Computer software
- Field equipment
- Office furniture
- Plant and equipment
- Leasehold improvements
- Field equipment under finance lease
2-3 years
3 years
2-3 years
5 years
2-3 years
6 years
2-3 years
vi. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the company, excluding any
costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding
during the year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take into
account the after income tax effect of interest and other
financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares
assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
Other long-term employee benefits
The liability for annual leave and long service leave not
expected to be settled within 12 months of the reporting date
are recognised in non-current liabilities, provided there is
an unconditional right to defer settlement of the liability.
The liability is measured as the present value of expected
future payments to be made in respect of services provided
by employees up to the reporting date using the projected
unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures
and periods of service. Expected future payments are
discounted using market yields at the reporting date on
national government bonds with terms to maturity and
currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans
are expensed in the period in which they are incurred.
Share-based payment
Share-based compensation benefits are provided to employees
via the Aeris Environmental Ltd Employee Option Plan.
Information relating to these schemes is set out in Note 25.
The fair value of options granted under the Employee Option
Plan is recognised as an employee benefit expenses with a
corresponding increase in equity. The fair value is measured
at grant date and recognised over the period during which the
employees become unconditionally entitled to the options.
The fair value at grant date is independently determined
using a Black-Scholes option pricing model. At each balance
sheet date, the entity revises its estimate of the number
of options that are expected to become exercisable. The
employee benefit expense recognised each period takes into
account the most recent estimate. The impact of the revision
to original estimates, if any, is recognised in the income
statement with a corresponding adjustment to equity.
vii. Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary
benefits, annual leave and long service leave expected to be
settled within 12 months of the reporting date are recognised
in current liabilities in respect of employees’ services up
to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
viii. Financial Assets
Financial assets are initially measured at fair value.
Transaction costs are included as part of the initial
measurement, except for financial assets at fair value
through profit or loss. They are subsequently measured
at either amortised cost or fair value depending on their
classification. Classification is determined based on the
purpose of the acquisition and subsequent reclassification
to other categories is restricted.
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AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have
been transferred and the consolidated entity has transferred
substantially all the risks and rewards of ownership.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are
either: i) held for trading, where they are acquired for
the purpose of selling in the short-term with an intention
of making a profit; or ii) designated as such upon initial
recognition, where they are managed on a fair value basis or
to eliminate or significantly reduce an accounting mismatch.
Except for effective hedging instruments, derivatives are
also categorised as fair value through profit or loss. Fair
value movements are recognised in profit or loss.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative
financial assets, principally equity securities, that are
either designated as available-for-sale or not classified
as any other category. After initial recognition, fair value
movements are recognised in other comprehensive income
through the available-for-sale reserve in equity. Cumulative
gain or loss previously reported in the available-for-sale
reserve is recognised in profit or loss when the asset is
derecognised or impaired.
ix. Financial Instruments issued by the company
Debt and Equity Instruments
Debt and equity instruments are classified as either
liabilities or as equity in accordance with the substance of
the contractual agreement.
Interest
Interest is classified as an expense consistent with the
balance sheet classification of the related debt or equity
instruments.
x. Financial liabilities
The Group classifies its financial liabilities as measured
at amortised cost. The Group does not use derivative
financial instruments in economic hedges of currency or
interest rate risk.
These financial liabilities include the following items:
Trade payables and other short-term monetary
liabilities, which are initially recognised at fair value and
subsequently carried at amortised cost using the effective
interest method.
Lease liabilities are initially recognised at fair value net of
any transaction costs directly attributable to the issue of
the instrument and subsequently carried at amortised cost
using the effective interest method.
xi. Foreign currency
Foreign currency transactions
All foreign currency transactions during the financial year
are brought to account using the exchange rate in effect
at the date of the transaction. Foreign currency monetary
items at reporting date are translated at the exchange
rate existing at reporting date. Non-monetary assets and
liabilities carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at
the date when the fair value was determined.
Exchange differences are recognised in statement of profit
or loss and other comprehensive income in the period in
which they arise.
Group companies
The results and financial positions of all the Group
entities that have a functional currency different from the
presentation currency are translated into the presentation
currency as follows:
• Assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet;
Income and expenses for each income statement are
translated at average exchange rates; and
•
• All resulting exchange differences are recognised as a
separate component of equity.
On consolidation, exchange difference arising from the
translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as
hedges of such investments, are recognised in the foreign
currency translation reserve. When a foreign operation is
sold or any borrowings forming part of the net investment
are repaid, a proportionate share of such exchange
differences are recognised in the statement of profit or loss
and other comprehensive income as part of the gain or loss
on sale where applicable.
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ANNUAL REPORT 2016
xii. Functional and presentation currency
The functional and presentation currency of Aeris
Environmental Ltd and its Australian subsidiaries is
Australian dollars (A$). Overseas subsidiaries use the
currency of the primary economic environment in which
the entity operates, which is translated to the presentation
currency upon consolidation.
xiii. Goods and services tax
Revenues, expenses and assets are recognised net of the
amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the taxation
authority. In these circumstances, it is recognised as part of the
cost of acquisition of an asset or as part of an item of expense.
Receivables and payables are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a
gross basis. The GST component of cash flows arising from
investing and financing activities which is recoverable from,
or payable to, the taxation authority is classified as operating
cash flows.
xiv. Impairment of assets
At each reporting date, the company reviews the carrying
amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where the
asset does not generate cash flows that are independent from
other assets, the company estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash-generating unit) is
reduced to its recoverable amount. An impairment loss is
recognised in profit or loss immediately, unless the relevant
asset is carried at fair value, in which case the impairment
loss is treated as a revaluation decrease.
determined had no impairment loss been recognised for the
asset (cash-generating unit) in prior years. A reversal of an
impairment loss is recognised in profit or loss immediately,
unless the relevant asset is carried at fair value, in which
case the reversal of the impairment loss is treated as a
revaluation increase.
xv. Income tax
Income tax on the profit or loss for the year comprises
current and deferred tax. Income tax is recognised in
the income statement except to the extent that it relates
to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted or substantially enacted
at the balance sheet date, and any adjustment to tax payable in
respect of previous years.
Deferred tax is accounted for using the balance sheet liability
method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation
purposes. The following temporary differences are not
provided for: goodwill not deductible for tax purposes, the
initial recognition of assets or liabilities that affect neither
accounting nor taxable profit, and differences relating to
investments in subsidiaries to the extent that they will probably
not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Tax consolidation
The company and all its wholly-owned Australian resident
entities have entered into a tax consolidated group under
Australian taxation law.
Where an impairment loss subsequently reverses, the
carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount,
but only to the extent that the increased carrying amount
does not exceed the carrying amount that would have been
The company is the head entity in the tax-consolidated group
comprising all the Australian wholly-owned subsidiaries set
out in Note 22. The head entity recognises all of the current and
deferred tax assets and liabilities of the tax consolidated group
(after elimination of intragroup transactions).
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AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
xvi. Inventories
Inventories and raw materials are carried at the lower of
cost and net realisable value. Costs are assigned on first in
first out basis.
with the entity and has the ability to affect those returns
through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which
control is transferred to the consolidated entity. They are de-
consolidated from the date that control ceases.
xvii. Leases
The determination of whether an arrangement is or contains
a lease is based on the substance of the arrangement and
requires an assessment of whether the fulfilment of the
arrangement is dependent on the use of a specific asset or
assets and the arrangement conveys a right to use the asset.
A distinction is made between finance leases, which
effectively transfer from the lessor to the lessee substantially
all the risks and benefits incidental to ownership of leased
assets, and operating leases, under which the lessor
effectively retains substantially all such risks and benefits.
Finance leases are capitalised. A lease asset and liability
are established at the fair value of the leased assets, or
if lower, the present value of minimum lease payments.
Lease payments are allocated between the principal
component of the lease liability and the finance costs, so
as to achieve a constant rate of interest on the remaining
balance of the liability.
Leased assets acquired under a finance lease are
depreciated over the asset’s useful life or over the shorter
of the asset’s useful life and the lease term if there is no
reasonable certainty that the consolidated entity will obtain
ownership at the end of the lease term.
Operating lease payments, net of any incentives received
from the lessor, are charged to profit or loss on a straight-
line basis over the term of the lease.
xviii. Principles of consolidation
The consolidated financial statements incorporate the assets
and liabilities of all subsidiaries of Aeris Environmental
Limited (‘company’ or ‘parent entity’) as at 30 June 2016 and
the results of all subsidiaries for the year then ended. Aeris
Environmental Limited and its subsidiaries together are
referred to in these financial statements as the ‘consolidated
entity’. Subsidiaries are all those entities over which the
consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed
to, or has rights to, variable returns from its involvement
Intercompany transactions, balances and unrealised gains on
transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the
policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the
acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as
an equity transaction, where the difference between the
consideration transferred and the book value of the share of
the non-controlling interest acquired is recognised directly
in equity attributable to the parent. Non-controlling interest
in the results and equity of subsidiaries are shown separately
in the statement of profit or loss and other comprehensive
income, statement of financial position and statement of
changes in equity of the consolidated entity. Losses incurred
by the consolidated entity are attributed to the non-controlling
interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary,
it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any
cumulative translation differences recognised in equity.
The consolidated entity recognises the fair value of the
consideration received and the fair value of any investment
retained together with any gain or loss in profit or loss.
Subsidiaries are accounted for at cost in the separate
financial statements of Aeris Environmental Ltd less any
impairment charges.
xix. Provisions
Provisions are recognised when the consolidated entity has a
present obligation, the future sacrifice of economic benefits
is probable, and the amount of the provision can be measured
reliably.
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ANNUAL REPORT 2016
When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party,
the receivable is recognised as an asset if it is probable that
recovery will be received and the amount of the receivable can
be measured reliably.
The amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured
using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows.
xx. Research and development
Research and development expenditure is expensed as
incurred except to the extent that development expenditure
recoverability is assured beyond reasonable doubt, in which
case it is capitalised. Deferred development expenditure
is amortised on a straight line basis over the period during
which the related benefits are expected to be realised once
commercial production has commenced.
xxi. Recoverable amount of non-current assets
The carrying amounts of non-current assets valued on
the cost basis are reviewed to determine whether they are
in excess of their recoverable amount at reporting date.
If the carrying amount of a non-current asset exceeds its
recoverable amount, the asset is written down to the lower
amount. The write-down is expensed in the reporting period
in which it occurs.
Where a group of assets working together supports the
generation of cash inflows, recoverable amount is assessed
in relation to that group of assets. In assessing recoverable
amounts of non-current assets, the relevant cash flows
have been discounted to their present value.
xxii. Revenue recognition
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Group and the revenue
can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised:
Sale of goods and disposal of assets
Revenue from the sale of goods and disposal of assets is
recognised when the consolidated entity has passed the
risks and rewards of the goods or assets to the buyer.
Revenue from services
Revenue from consultancy and engineering services is
recognised by reference to the stage of completion. Stage
of completion is measured by reference to labour hours
incurred to date as a percentage of total estimated labour
hours for each contract. When the contract outcome cannot
be measured reliably, revenue is recognised only to the extent
that the expenses incurred are eligible to be recovered.
Government grants
Grants from the government are recognised at their fair
value where there is a reasonable assurance that the
grant will be received and the Group will comply with all
attached conditions.
Government grants related to costs are deferred and
recognised in the income statement over the period
necessary to match them with the costs that they are
intended to compensate.
Interest income
Interest income is recognised as it is accrued using the
effective interest rate method.
Other income
Other income is recognised as it is earned.
xxiii. Share capital
Financial instruments issued by the Group are treated as
equity only to the extent that they do not meet the definition of a
financial liability. The Group’s ordinary shares are classified as
equity instruments. Any transaction costs associated with the
issuing of shares are deducted from share capital.
The Group is not subject to any externally imposed capital
requirements.
xxiv. Borrowings and Convertible notes
Loans and borrowings are initially recognised at the fair
value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using
the effective interest method if the impact is material to the
financial report.
Where there is an unconditional right to defer settlement of
the liability for at least 12 months after the reporting date,
the loans or borrowings are classified as non-current.
Convertible notes are separated into liability and equity
components based on the terms of the contract.
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AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
On issuance of the convertible notes, the fair value of the
liability component is determined using a market rate
for an equivalent non-convertible bond. This amount is
classified as a financial liability measured at amortised
cost (net of transaction costs) until it is extinguished on
conversion or redemption.
The remainder of the proceeds is allocated to the conversion
option that is recognised and included in equity. Transaction
costs are deducted from equity, net of associated income
tax. The carrying amount of the conversion option is not
remeasured in subsequent years.
Transaction costs are apportioned between the liability and
equity components of the convertible notes based on the
allocation of proceeds to the liability and equity components
when the instruments are initially recognised.
xxv. Trade and other payables
Trade payables and other accounts payable are recognised
when the consolidated entity becomes obliged to make future
payments resulting from the purchase of goods and services.
Trade accounts payable are normally settled within 30 days.
xxvi. Trade and other receivables
Trade and other receivables are recognised initially at fair
value and generally due for settlement within 30 days.
The collectability of debts is reviewed on an ongoing basis.
Debts which are known to be uncollectible are written off. A
provision for impairment of receivables is established when
there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of
the receivables. The amount of the provision is recognised in
the income statement as financial expenses.
xxvii. Parent entity information
In accordance with the Corporations Act 2001, these
financial statements present the results of the consolidated
entity only. Supplementary information about the parent
entity is disclosed in note 32.
xxviii. Fair value measurement
When an asset or liability, financial or non-financial,
is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would
be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the
measurement date; and assumes that the transaction will
take place either: in the principle market; or in the absence
of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming they act in their economic best interest. For
non-financial assets, the fair value measurement is
based on its highest and best use. Valuation techniques
that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, are
used, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified,
into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the
measurements. Classifications are reviewed each reporting
date and transfers between levels are determined based on
a reassessment of the lowest level input that is significant to
the fair value measurement.
For recurring and non-recurring fair value measurements,
external valuers may be used when internal expertise is
either not available or when the valuation is deemed to be
significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant
change in fair value of an asset or liability from one period
to another, an analysis is undertaken, which includes a
verification of the major inputs applied in the latest valuation
and a comparison, where applicable, with external sources
of data.
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ANNUAL REPORT 2016
c. Cash flow and fair value interest rate risk
As the Group has no significant interest-bearing assets, the
Group’s income and operating cash flows are not materially
exposed to changes in market interest rates.
The Group has a significant interest-bearing liability of
$1,015,000, which is the loan from Directors. Interest is
charged on this loan @ 5.45% (ATO benchmark rates).
d. Liquidity risk
Prudent liquidity risk management implies maintaining
sufficient cash and the availability of funding to enable
the company to operate as a going concern. The Board
monitors liquidity on a monthly basis and management
monitors liquidity on a daily basis.
2. FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks;
market risk (including currency risk, credit risk, fair value
interest rate risk and price risk), credit risk, liquidity risk
and cash flow interest rate risk. The Group’s overall risk
management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse
effects on the financial performance of the Group.
a. Foreign exchange risk
Foreign exchange risk arises when future commercial
transactions and recognised assets and liabilities are
denominated in a currency that is not the entity’s functional
currency. The Group is exposed to foreign exchange risk
predominantly arising from currency exposures to the US
dollar on its loans to its overseas subsidiaries. Currency
protection measures may be deemed appropriate in specific
commercial circumstances and are subject to strict limits
laid down by the Board. The Group has not entered into any
foreign currency hedging contracts during the year.
b. Credit risk
Credit risk arises from the potential failure of counterparties
to meet their obligations under the respective contracts at
maturity. There is negligible credit risk on financial assets
of the Group since there is limited exposure to individual
customers and the economic entity’s exposure is limited to
the amount of cash, short term deposits and receivables
which have been recognised in the balance sheet.
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AERIS ENVIRONMENTAL LTD N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
b. Recovery of deferred tax assets
Deferred tax assets are not recognised for deductible
temporary differences until management considers that it
is probable that future taxable profits will be available to
utilise those temporary differences.
c. Share-based payment transactions
The Group measures the cost of equity-settled transactions
with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The
fair value is determined using the Black & Scholes model,
with the assumptions detailed in Note 25. The accounting
estimates and assumptions relating to equity-settled share-
based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual
reporting period but may impact expenses and equity.
d. Fair value of financial instruments
When the fair value of financial assets and financial
liabilities recorded in the statement of financial position
cannot be derived from active markets, their fair value
is determined using valuation techniques including the
discounted cash flow model. The inputs to these models
are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required
in establishing fair values. The judgements include
considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.
The preparation of the financial statements requires
management to make judgments, estimates and
assumptions that affect the reported amounts in the
financial statements. Management continually evaluates its
judgments and estimates in relation to assets, liabilities,
contingent liabilities, revenue and expenses. Management
bases its judgments and estimates on historical experience
and on other various factors it believes to be reasonable
under the circumstances, the result of which form the basis
of the carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may
differ from these estimates under different assumptions
and conditions.
Management has identified the following critical accounting
policies for which significant judgments, estimates and
assumptions are made. Actual results may differ from
these estimates under different assumptions and conditions
and may materially affect financial results or the financial
position reported in future periods.
Further details of the nature of these assumptions and
conditions may be found in the relevant notes to the financial
statements.
The following critical estimates and judgments have been
made in respect of the following items:
a. Impairment of non-financial assets other than goodwill
The Group assesses impairment of all assets at each
reporting date by evaluating conditions specific to the Group
and to the particular asset that may lead to impairment.
These include product and manufacturing performance,
technology, economic and political environments and future
product expectations. If an impairment trigger exists the
recoverable amount of the asset is determined. Given the
current uncertain economic environment management
considered that the indicators of impairment were
significant enough and as such these assets have been
tested for impairment in this financial period.
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ANNUAL REPORT 2016
4. REVENUE
Revenue
Revenue from sales
Revenue from services
Other Revenue
Interest - other entities
Miscellaneous
5. EXPENSES
Loss before income tax includes the following items of expense:
Depreciation and amortisation expense
Amortisation of leasehold plant and equipment
Depreciation of plant and equipment
Total depreciation and amortisation expense
Employment expenses
Base salary and fees
Superannuation & statutory oncosts
Share based payment expense (Note 25(a) )
Other employee expenses
Total employment expense
Financial expenses
Interest paid
Other Expenses
Doubtful debts expense
Impairment expense
Rental & occupancy expenses
Research and development expenses
2016
$
2015
$
635,714
742,372
684,080
116,806
1,378,086
800,886
205,130
378,272
583,402
68,253
5,250
73,503
2016
$
5,277
28,511
33,788
2015
$
-
7,809
7,809
1,396,024
744,525
252,555
130,294
938
19,636
770
8,348
1,669,153
883,937
97,788
97,788
-
30,957
164,866
164,866
12,382
13,621
225,982
153,016
449,688
380,001
36
AERIS ENVIRONMENTAL LTD N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
6. INCOME TAX
a. Income tax benefit
The prima facie income tax benefit on pre-tax accounting loss reconciles to the income tax benefit in the financial
statements as follows:
Loss for year
Income tax benefit calculated at 30%
2016
$
2015
$
(2,489,126)
(2,038,141)
(746,738)
(611,442)
Temporary differences and tax losses not recognised
746,456
611,211
Non deductible expenses
Share based payments
R&D tax offset rebate received
R&D tax offset rebate recevable
Income tax benefit attributable to loss
b. Deferred tax balances not recognised
Calculated at 30% not brought to account as assets:
Deferred tax liabilities
Interest receivable
Deferred tax assets
Tax losses
281
231
(71,235)
(21,229)
(351,960)
-
(423,195)
(21,229)
2016
$
2015
$
10,744
7,529
Revenue tax losses available for offset against future tax income
6,302,941
5,684,334
Temporary differences
Provision for doubtful debts
Provision for employee entitlements
Plant and equipment
Accruals
Total deferred tax assets
Net deferred tax asset not recognised
37
84,107
32,050
49,569
7,200
75,122
21,725
46,319
6,840
172,926
150,006
6,475,866
5,834,340
6,465,122
5,826,810
ANNUAL REPORT 2016
c. Tax consolidation
ii. Method of measurement of tax amounts
i. Relevance of tax consolidation to the consolidated entity
Legislation to allow groups comprising a parent entity and
its Australian resident wholly-owned entities, to elect to
consolidate and be treated as a single entity for income tax
purposes (‘the tax consolidation system’) was substantively
enacted on 21 October 2002. The Company, its wholly-
owned Australian resident entities and its sister entities
within Australia are eligible to consolidate for tax purposes
under this legislation and have elected to implement the tax
consolidation system from 1 July 2005.
The tax consolidated group has adopted the “stand-alone”
method of measuring current and deferred tax amounts
applicable to each company.
iii. Tax sharing agreements
There are no tax sharing or funding agreements in place.
iv. Tax consolidation contributions
There were no amounts recognised for the period as tax
consolidations contributions by (or distributions to) equity
participants of the tax consolidated group.
7. LOSS PER SHARE ATTRIBUTABLE TO THE ORDINARY EQUITY-HOLDERS
OF THE COMPNAY
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net loss - used to calculate basic EPS
Net loss - used to calculate diluted EPS
Weighted average number of ordinary shares used to calculate basic EPS
Convertible share options
Weighted average number of ordinary shares used to calculate diluted EPS
2016
$
(1.35)
2015
$
(1.55)
(1.35)
(1.55)
(2,062,726)
(2,016,912)
(2,062,726)
(2,016,912)
152,977,902
130,365,853
-
32,973
152,977,902
130,398,826
38
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
8. AUDITORS’ REMUNERATION
Remuneration of UHY Haines Norton for :
Audit of the annual financial report
Review of the half yearly financial report
Other services
2016
$
22,000
11,000
4,200
2015
$
20,100
9,000
4,650
Total auditors remuneration
37,200
33,750
9. CASH AND OTHER FINANCIAL ASSETS
a. Cash and Cash Equivalents
Cash at bank and on hand
Term Deposits
Deposits on call
b. Financial Assets - held to maturity
Term Deposits (with maturity of more than 3 months from the acquisition date)
The carrying amounts of the Group’s cash are a reasonable approximation of their fair values.
2016
$
2015
$
59,508
199,409
5,350,000
3,650,000
6,156
6,165
5,415,664
3,855,574
2016
$
-
2015
$
4,800,000
39
ANNUAL REPORT 2016
10. CURRENT TRADE AND OTHER RECEIVABLES
Trade receivables
Less provision for doubtful debts
Less provision for unrealised foreign exchange gain or loss
R&D tax offset rebate receivable
The carrying amounts of the Group’s current trade and other receivables are a reasonable approximation of their fair values.
Ageing of impaired receivables are as follows:
Less than 6 months overdue
More than 6 months overdue
Movements in provision for impairment of receivables
Opening balance
Foreign exchange difference
Closing balance
2016
$
2015
$
1,120,848
422,540
(280,358)
(278,668)
(405)
351,960
(405)
-
1,192,045
143,467
-
-
280,358
278,668
278,668
273,299
1,689
5,369
280,358
278,668
There are no past due receivable balances for which provision for impairment has not been recognised.
11. INVENTORIES
Inventories - at cost
12. OTHER CURRENT ASSETS
Prepayments
Accrued income
Deposits and bonds
2016
$
170,933
170,933
2015
$
46,763
46,763
2016
$
92,086
35,813
7,735
135,634
2015
$
31,967
25,098
7,686
64,751
The carrying amounts of the Group’s other current assets are a reasonable approximation of their fair values.
40
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
13. NON-CURRENT ASSETS
Carrying Values
2016
Property, plant and equipment
R & D equipment
Computer equipment
Field equipment
Leasehold improvements
Office furniture
Plant and equipment
Intangible Assets
Goodwill
Cost
$
25,011
159,236
58,747
130,228
165,091
82,079
620,392
Accumulated depreciation /
impairment
Net carrying value
$
$
(23,764)
(127,556)
(58,747)
(97,587)
(80,130)
(81,328)
1,247
31,680
-
32,641
84,961
752
(469,112)
151,281
44,578
(44,578)
-
Total non-current assets
664,971
(513,690)
151,281
2015
Property, plant and equipment
R & D equipment
Computer equipment
Field equipment
Leasehold improvements
Office furniture
Plant and equipment
Intangible Assets
Goodwill
25,011
127,935
58,747
92,310
76,581
81,054
461,638
(22,004)
(114,317)
(58,747)
(92,310)
(66,891)
(81,054)
(435,323)
3,007
13,617
-
-
9,690
-
26,314
44,578
(13,621)
30,957
Total non-current assets
506,216
(448,945)
57,271
41
ANNUAL REPORT 2016
Opening net
carrying value
Additions
Disposals
Depreciation /
Exchange
Closing net
Impairment
movements
carrying value
Reconciliations
2016
R & D equipment
Computer equipment
Leasehold improvements
Office furniture
Plant and equipment
Goodwill
2015
R & D equipment
Computer equipment
Office furniture
Goodwill
$
3,007
13,617
-
9,690
-
30,957
57,271
3,433
1,216
1,038
-
5,687
$
-
31,301
37,918
88,510
1,025
-
158,755
1,400
16,094
10,941
44,578
73,014
$
-
-
-
-
-
-
-
-
-
-
-
-
$
(1,760)
(13,239)
(5,277)
(13,239)
(273)
(30,957)
(64,745)
(1,827)
(3,693)
(2,289)
(13,621)
(21,430)
14. CURRENT TRADE AND OTHER PAYABLES AND PROVISIONS
A. Unsecured trade and other payables
Trade creditors
Other payables and accruals
GST payable
B. Provisions
Annual leave
Long service leave
The carrying amounts of the Group’s current trade and other payables and provisions are a reasonable approximation of
their fair values.
42
$
-
-
-
-
-
-
-
-
-
-
-
-
$
1,247
31,680
32,641
84,961
752
-
151,281
3,007
13,617
9,690
30,957
57,271
2016
$
2015
$
217,111
161,522
215,028
168,252
15,858
13,772
447,997
343,546
96,068
18,207
49,541
-
114,275
49,541
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
15. CURRENT INTEREST BEARING PAYABLES
Unsecured loans from Directors and related entities
2016
$
2015
$
1,015,000
2,515,000
1,015,000
2,515,000
The carrying amounts of the Group’s current interest bearing payables are a reasonable approximation of their fair values.
Interest on loans from Directors and related entities is charged at 5.45% per annum (ATO benchmark rates).
16. NON-CURRENT PROVISIONS
Long service leave
2016
$
10,764
10,764
2015
$
22,876
22,876
The carrying amounts of the Group’s non-current provisions are a reasonable approximation of their fair values.
43
ANNUAL REPORT 2016
17. CONTRIBUTED EQUITY
Share Capital
154,428,722 fully paid ordinary shares - no par value (2015: 151,428,722)
39,995,236
38,495,236
2016
$
2015
$
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Other contributed equity
Consideration for issue of share options
104,876
104,876
40,100,112
38,600,112
Movement in ordinary share capital of Aeris Environmental Ltd
Balance at beginning of year
Shares issued during year
2016
Number of
shares
2016
$
2015
Number of
shares
2015
$
151,428,722
38,495,236
117,746,704
28,362,632
Shares issued to Directors towards repayment of their loan
3,000,000
1,500,000
-
-
Share placement
Other share issues
-
-
-
-
32,792,018
10,025,444
890,000
187,560
154,428,722
39,995,236
151,428,722
38,575,636
Transaction costs relating to share issues
-
-
-
(80,400)
Balance at end of year
154,428,722
39,995,236
151,428,722
38,495,236
For the purposes of these disclosures, the Group considers its capital to comprise its ordinary share capital and accumulated
losses. Neither the share based payments reserve nor the translation reserve is considered as capital.
44
AERIS ENVIRONMENTAL LTD
2016
Unlisted
*
*
**
*
2015
Unlisted
*
*
**
*
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
18. OPTIONS
Grant Date
Expiry Date Exercise Price
Number on issue
Granted during
Lapsed during
Exercised
Number on issue
30 June 2015
year
year
during year
30 June 2016
07-Mar-11
09-Jan-16
31-Mar-11
17-Mar-16
17-Nov-11
17-Nov-16
26-Jul-12
23-Feb-17
31-Jul-14
31-Jul-19
08-Jan-15
31-Jul-16
0.25
0.15
0.17
0.22
0.20
0.31
150,000
50,000
250,000
20,000
500,000
500,000
1,470,000
-
-
-
-
-
-
-
(150,000)
(50,000)
-
-
-
-
(200,000)
-
-
-
-
-
-
-
-
-
250,000
20,000
500,000
500,000
1,270,000
Total options on issue
Grant Date
Expiry Date Exercise Price
Number on issue
Granted during
Lapsed during
Exercised
Number on issue
30 June 2014
year
year
during year
30 June 2015
07-Mar-11
09-Jan-16
31-Mar-11
17-Mar-16
17-Nov-11
17-Nov-16
26-Jul-12
23-Feb-17
31-Jul-14
31-Jul-19
08-Jan-15
31-Jul-16
0.25
0.15
0.17
0.22
0.20
0.31
275,000
50,000
250,000
20,000
-
-
-
-
-
-
500,000
500,000
-
-
-
-
-
-
-
(125,000)
-
-
-
-
-
150,000
50,000
250,000
20,000
500,000
500,000
(125,000)
1,470,000
Total options on issue
595,000
1,000,000
These options do not entitle the holder to participate in any share issue of the Company or any other body corporate unless
the options are exercised prior to the new share issue entitlement date.
** Share options issued as consideration for business combinations.
*
These options expire on the earlier of their expiry date or the date of termination of the employee’s employment, or, in
the case of voluntary termination, 90 days after voluntary termination of the employee’s employment.
45
ANNUAL REPORT 2016
19. RESERVES
Foreign currency translation reserve
Share based payments reserve
Foreign currency translation reserve
Balance at beginning of financial year
Foreign currency translation difference
Balance at end of financial year
2016
$
2015
$
(82,565)
(75,755)
1,263,274
1,262,336
1,180,709
1,186,581
(75,755)
(55,458)
(6,810)
(20,298)
(82,565)
(75,755)
Nature and purpose of reserve
The foreign currency translation reserve records the impact of the movement of the exchange rate as it relates to the
company’s investment in overseas subsidiaries.
2016
$
2015
$
Share based payments reserve
Balance at beginning of financial year
1,262,336
1,216,988
Share based payments during the year allocated to:
Employees and consultant
Business Combinations
938
-
770
44,578
Balance at end of financial year
1,263,274
1,262,336
Nature and purpose of reserve
The share based payments reserve records the value of options issued to employees, consultants and Directors, as part of
the remuneration for their services and issued in consideration for business combinations.
46
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
20. ACCUMULATED LOSSES
Balance at beginning of financial year
Net loss for year
2016
$
2015
$
(33,749,830)
(31,732,918)
(2,062,727)
(2,016,912)
Balance at end of financial year
(35,812,557)
(33,749,830)
21. NON-CONTROLLING INTERESTS
Balance at beginning of financial year
12500 shares held by non-controlling interest in Aeris Cleantech Pte Ltd, Singapore
Net loss for year
Balance at end of financial year
22. PARTICULARS RELATING TO CONTROLLED ENTITIES
Name of entity
Controlled entities
Aeris Pty Ltd
Aeris Biological Systems Pty Ltd
Aeris Hygiene Services Pty Ltd
Aeris Environmental LLC
Aeris Cleantech Pte Ltd
Aeris Cleantech Europe Ltd
47
2016
2015
$
-
12,461
(3,204)
9,257
$
-
-
-
-
Country of
Ownership
Ownership
incorporation
interest
interest
2016
%
100
100
100
100
70
100
2015
%
100
100
100
100
N/A
N/A
Australia
Australia
Australia
USA
Singapore
Malta
ANNUAL REPORT 2016
2016
$
57,631
57,631
33,945
149,207
2015
$
-
-
-
-
23. COMMITMENTS FOR EXPENDITURE
Lease commitments
Operating leases
Commitments on operating leases that relate to below office facilities:
Registered office in Sydney - up to 1 year
Registered office in Sydney - 1 to 5 years
Branch office in Brisbane - up to 1 year
24. KEY MANAGEMENT PERSONNEL DISCLOSURES
a. The Directors of Aeris Environmental Ltd during the year were:
Maurie Stang
Bernard Stang
Steven Kritzler
Peter Bush (Alternate Director and Chief Executive Officer)
b. Other key management personnel
Robert Waring (Company Secretary)
c. Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
2016
$
248,670
18,573
925
2015
$
75,382
-
617
268,168
75,999
Further, disclosures relating to key management personnel are set out in remuneration report in the Directors’ Report.
48
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
25. SHARE BASED PAYMENTS
a. Recognised share-based payment expenses
The expense recognised for employee services received during the year is shown in the table below:
Employee Share Option Plan
Employees and consultant
Business Combinations
Total amount arising from share-based payment transactions
2016
$
938
-
938
2015
$
770
44,578
45,348
b. Details of share-based payment plan
The share-based payment plan is described in the remuneration report in Director's Report. There have been no
cancellations or modifications to the plan during 2015 and 2016.
49
ANNUAL REPORT 2016
Fair value of options issued
The fair value of the options granted under the plan is estimated using the Black & Scholes valuation methodology taking
into account the terms and conditions under which the options are granted.
The weighted average remaining contractual life for the share options outstanding as at 30 June 2016 is 1.33 years (2015: 2.10
years).
The range of exercise prices for options outstanding at the end of the year was $0.17 to $0.31 (2015: $0.15 to $0.31)
No options were issued during 2016 financial year.
The following table shows the inputs to the Black & Scholes model in respect of options granted during 2015 financial year.
Options issued
For Business
To Key Management
Combinations
Personnel
0.105
0.200
0.00%
139.46%
3.00%
31/07/2019
31/07/2014
0.0892
0.282
0.310
0.00%
5.70%
3.00%
31/07/2016
8/01/2015
0.0031
Value of Underlying Stock
Exercise Price
Dividend Yield
Volatility (per Year)
Risk free rate
Maturity
Pricing Date
Value of Option
26. RELATED PARTY DISCLOSURES
a. Parent Entity
Aeris Environmental Ltd is the parent entity.
b. Subsidiaries
Interests in subsidiaries are set out in note 22.
c. Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report in the Directors’
Report.
d. Transactions with Directors and Director related entities
Disclosures relating to transactions with Directors and Director related entities are set out in the remuneration report in the
Directors’ Report.
50
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
27. FINANCIAL INSTRUMENTS DISCLOSURES
a. Capital
c. Principal financial instruments
The Group considers its capital to comprise its ordinary
share capital and accumulated retained earnings.
In managing its capital, the Group’s primary objective is to
ensure its continued ability to provide a consistent return
for its equity shareholders through a combination of capital
growth and distributions. In order to achieve this objective,
the Group seeks to maintain a sufficient funding base to
enable the Group to meet its working capital and strategic
investment needs. In making decisions to adjust its capital
structure to achieve these aims, either through new share
issues or debt, the Group considers not only its short-term
position but also its long-term operational and strategic
objectives.
b. Financial instrument risk exposure and management
In common with all other businesses, the Group is exposed
to risks that arise from its use of financial instruments.
This note describes the Group’s objectives, policies and
processes for managing those risks and the methods used
to measure them.
Further quantitative information in respect of these risks is
presented throughout these financial statements.
There have been no substantive changes in the Group’s
exposure to financial instrument risks, its objectives,
policies and processes for managing those risks or the
methods used to measure them from previous periods
unless otherwise stated in this note.
The principal financial instruments used by the Group, from
which financial instrument risks arise, are as follows:
cash at bank;
other receivables;
deposits and bonds; and
trade and other payables.
d. General objectives, policies and processes
The Board has overall responsibility for the determination
of the Group’s risk management objectives and policies
and has the responsibility for designing and operating
processes that ensure the effective implementation of the
objectives and policies to the Group’s finance function. The
Board receives monthly reports through which it reviews
the effectiveness of the processes put in place and the
appropriateness of the objectives and policies it sets.
The overall objective of the board is to set policies that seek
to reduce risk as far as possible without unduly affecting
the Group’s competitiveness and flexibility. Further details
regarding these policies are set out below:
i. Credit risk
Credit risk arises principally from the Group’s trade
receivables, cash and term deposits. It is the risk that the
counterparty fails to discharge its obligation in respect of
the instrument.
The maximum exposure to credit risk at balance sheet date
is as follows:
Without external credit rating
Trade receivables
R&D tax offset rebate receivable
Deposits and bonds
With external credit rating (Moody's)
Deposits with Bankwest (credit rating Aa2)
Deposits with Wells Fargo, USA (credit rating Aa1)
Deposits with ANZ Bank (credit rating Aa2)
51
2016
$
2015
$
1,120,848
422,540
351,960
7,735
-
7,686
5,356,156
8,451,471
2,851
7,139
56,657
196,964
6,896,207
9,085,800
ANNUAL REPORT 2016
ii. Liquidity risk
Liquidity risk arises from the Group’s management of
working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the
Group will encounter difficulty in meeting its financial
obligations as they fall due.
The Group’s policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to maintain
cash balances (or agreed facilities) to meet expected
requirements for a period of at least 45 days.
The Board receives cash flow projections on a monthly
basis as well as information regarding cash balances. At
the balance sheet date, these projections indicated that the
Group expected to have sufficient liquid resources
to meet its obligations under all reasonably expected
circumstances.
The Group has a financing facility in place and does not have
a bank overdraft.
Maturity analysis of financial assets and liability based on
management’s expectations
The risk implied from the values shown in the table below,
reflects a balanced view of cash inflows and outflows. Trade
payables and other financial liabilities mainly originate from
the financing of assets used in our ongoing operations such
as property, plant, equipment and investments in working
capital (e.g., trade receivables and inventories). These
assets are considered in the Group’s overall liquidity risk.
Cash Flows
< 6 mths
6-12 mths
1-3 years
> 3 years
Maturity analysis - 2016
Financial assets
Cash and cash equivalents
Other receivables
Security deposits
TOTAL
Financial liabilities
Trade Creditors
Other payables and accruals
Loans
TOTAL
NET MATURITY
Maturity analysis - 2015
Financial assets
Cash and cash equivalents
Term deposits
Other receivables
Security deposits
TOTAL
Financial liabilities
Trade Creditors
Other payables and accruals
Loans
TOTAL
NET MATURITY
$
$
$
5,463,779
5,463,123
1,192,045
1,192,045
7,735
-
6,663,559
6,655,168
217,111
345,161
217,111
345,161
657
-
-
657
-
-
1,070,318
27,659
1,042,659
1,632,589
589,931
1,042,659
5,030,970
6,065,237
(1,042,002)
3,886,543
3,883,658
2,885
4,848,132
4,848,132
143,467
143,467
7,686
-
-
-
8,885,828
8,875,257
2,885
161,522
182,025
161,522
182,025
2,589,821
1,089,821
2,933,367
1,433,367
-
-
-
-
5,952,460
7,441,889
2,885
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
7,735
7,735
-
-
-
-
7,735
-
-
7,686
7,686
-
-
1,500,000
1,500,000
(1,492,314)
52
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
27. FINANCIAL INSTRUMENTS DISCLOSURES
iii. Market risk
a. Interest rate risk
The Group’s exposure to fluctuations in interest rates that are inherent in financial markets arise predominantly from assets
and liabilities bearing variable interest rates.
The company’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets
and financial liabilities is set out below :
Note
Weighted Average
Floating Interest
Fixed Interest
Non-Interest
Interest Rates
Rates
Rates
Bearing
Total
2016
Financial assets
Cash and cash equivalents
Term deposits
Receivables
Total Assets
Financial liabilities
Payables
Loans
Total Liabilities
Net financial assets (liabilities)
2015
Financial assets
Cash and cash equivalents
Term deposits
Receivables
Total Assets
Financial liabilities
Payables
Loans
Total Liabilities
9
9
10
14
15
9
9
10
14
15
2.00%
2.70%
0.00%
0.00%
5.45%
2.50%
2.90%
0.00%
0.00%
5.95%
6,156
-
59,508
65,664
-
-
5,350,000
-
5,350,000
-
1,192,045
1,192,045
6,156
5,350,000
1,251,554
6,607,710
-
-
-
-
447,997
447,997
1,015,000
-
1,015,000
1,015,000
447,997
1,462,997
6,156
4,335,000
803,557
5,144,713
6,165
-
199,409
205,574
-
-
8,450,000
-
8,450,000
-
143,467
143,467
6,165
8,450,000
342,876
8,799,040
-
-
-
-
343,546
343,546
2,515,000
-
2,515,000
2,515,000
343,546
2,858,546
Net financial assets (liabilities)
6,165
5,935,000
(671)
5,940,494
The following sensitivity analysis is based on the interest rate risk exposure in existence at the balance sheet date. The
analysis assumes all other variables remain constant.
53
ANNUAL REPORT 2016
Sensitivity analysis
2016
Deposits on call
Tax charge of 30%
Post tax profit increase / (decrease)
Sensitivity analysis
2015
Deposits on call
Tax charge of 30%
Post tax profit increase / (decrease)
b. Currency risk
Carrying
+3% interest rate
-3% interest rate
amount
Profit & Loss
Profit & Loss
6,156
6,156
185
185
(55)
129
(185)
(185)
55
(129)
Carrying
+3% interest rate
-3% interest rate
amount
Profit & Loss
Profit & Loss
6,165
6,165
185
185
(55)
129
(185)
(185)
55
(129)
The Group’s policy is, where possible, to allow group entities to settle liabilities denominated in their functional currency
with the cash generated from their own operations in that currency. Where group entities have liabilities denominated in a
currency other than their functional currency (and have insufficient reserves of that currency to settle them) cash already
denominated in that currency will, where possible, be transferred from elsewhere within the Group.
The Group’s exposure to foreign currency risk is as follows:
Cash at bank
Trade and other receivables
Trade and other payables
Net Exposure
2016
US$
2,061
800
(1,336)
1,525
2015
US$
5,465
800
(3,336)
2,929
2016
SGD
-
-
10,700
10,700
2015
SGD
-
-
-
-
2016
Euro
5,000
-
-
5,000
2015
Euro
-
-
-
-
The following sensitivity analysis is based on the foreign currency risk exposures in existence at the balance sheet date.
The below analysis assumes all other variables remain constant.
54
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
27. FINANCIAL INSTRUMENTS DISCLOSURES
Sensitivity analysis - US$
2016
Cash at bank
Trade and other receivables
Trade and other payables
Tax charge of 30%
Post tax profit increase / (decrease)
Sensitivity analysis - US$
2015
Cash at bank
Trade and other receivables
Trade and other payables
Tax charge of 30%
Post tax profit increase / (decrease)
Sensitivity analysis - SGD
2016
Cash at bank
Trade and other receivables
Trade and other payables
Tax charge of 30%
Post tax profit increase / (decrease)
Sensitivity analysis - Euro
2016
Cash at bank
Trade and other receivables
Trade and other payables
Tax charge of 30%
Post tax profit increase / (decrease)
55
Carrying
+10% USD/AUD
-10% USD/AUD
amount
Profit & Loss
Profit & Loss
US$
2,061
800
(1,336)
1,525
AUD$
(285)
(111)
185
(211)
63
(148)
AUD$
285
111
(185)
211
(63)
148
Carrying
+10% USD/AUD
-10% USD/AUD
amount
Profit & Loss
Profit & Loss
US$
5,465
800
(3,336)
2,929
AUD$
(714)
(105)
436
(383)
115
(268)
AUD$
714
105
(436)
383
(115)
268
Carrying
+10% SGD/AUD
-10% SGD/AUD
amount
Profit & Loss
Profit & Loss
SGD
-
-
10,700
10,700
AUD$
AUD$
-
-
(1,480)
(1,480)
444
(1,036)
-
-
1,480
1,480
(444)
1,036
Carrying
+10% Euro/AUD
-10% Euro/AUD
amount
Profit & Loss
Profit & Loss
Euro
5,000
-
-
5,000
AUD$
(692)
-
-
(692)
207
(484)
AUD$
692
-
-
692
(207)
484
ANNUAL REPORT 2016
e. Fair value measurement
The carrying amounts of trade and other receivables and trade and other payables are assumed 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 liabilities.
Therefore, table detailing the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement is not required.
28. CONTINGENT LIABILITIES
There are no contingent liabilities of the company or the Group other than commitments disclosed in note 23 (2015: NIL).
29. ADDITIONAL COMPANY INFORMATION
Aeris Environmental Ltd is a listed public company, incorporated in Australia.
Principal registered office and principal place of business
5/26-34 Dunning Avenue
ROSEBERY
NSW 2018
30. SUBSEQUENT EVENTS
There have been no matters or circumstances, which have arisen since 30 June 2016 that have significantly affected or may
significantly affect:
a. the operations, in financial years subsequent to 30 June 2016, of the consolidated entity; or
b. the results of those operations;
c. the state of affairs, in the financial years subsequent to 30 June 2016, of the consolidated entity.
56
AERIS ENVIRONMENTAL LTD N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
31. OPERATING SEGMENTS
Identification of reportable segments
From Board of Directors’ (Chief Operating Decision Makers’
- CODM) perspective, the Group is organised into business
units based on its geographical area of operation. The
Group has identified two reportable segments as mentioned
below.
The reportable segments are based on aggregated
operating segments determined by the similarity of the
revenue stream and products sold and/or the services
provided in Australia and internationally, as these are the
sources of the Group’s major risks and have the most effect
on the rates of return.
The CODM reviews revenue, COGS, operating expenses,
profit before tax, assets & liabilities for the following
segments:
a. Australia - Sales and service on account of Australian
operations
b. International - Sales & service on account of international
operations
Operating segment information of the consolidated entity
Intersegment transactions
Intersegment transactions are made at arm’s length and are
eliminated on consolidation.
Intersegment receivables, payables and loans
Intersegment loans are initially recognised at the
consideration received & are eliminated on consolidation.
Major Customer
The Group supplies to two of its major customers, through
Australian sales segment, (who individually amount to 10%
or more of its revenue) that combined account for 56% of
external revenue (2015: Two major customers combined
account for 64%).
During the year ended 30 June 2016 the most significant
client accounts for approximately 45% (2015: 26%) of the
consolidated entity’s external revenue through Australian
Sales operating segment.
2016
Revenue
Sales
Other Income
Total Revenue
Expenses
Cost of goods sold
Operating expenses
Total Expenses
Australia
International
Intersegment
eliminations
$
1,378,086
583,402
1,961,488
350,272
4,088,856
4,439,128
$
-
-
-
-
$
-
-
-
-
46,398
46,398
(34,912)
(34,912)
Consolidated
$
1,378,086
583,402
1,961,488
350,272
4,100,342
4,450,614
Loss before tax
(2,477,640)
(46,398)
34,912
(2,489,126)
57
ANNUAL REPORT 2016
2015
Revenue
Sales
Other Income
Total Revenue
Expenses
Cost of goods sold
Operating expenses
Total Expenses
Australia
International
Intersegment
eliminations
$
800,886
73,503
874,389
239,884
2,671,463
2,911,347
$
-
-
-
-
$
-
-
-
-
31,756
31,756
(30,573)
(30,573)
Consolidated
$
800,886
73,503
874,389
239,884
2,672,646
2,912,530
Loss before tax
(2,036,958)
(31,756)
30,573
(2,038,141)
Segment assets and liabilities
Australia
International
Total
Intersegment elimination
Consolidated
Assets
Liabilities
2016
$
7,177,670
62,834
7,240,504
(174,946)
7,065,558
2015
$
2016
$
9,051,451
3,400,066
9,010
9,060,461
2,021,036
5,421,102
2015
$
4,720,339
1,868,446
6,588,785
(92,635)
(3,833,067)
(3,657,824)
8,967,826
1,588,035
2,930,961
32. INFORMATION RELATING TO AERIS ENVIRONMENTAL LTD (“THE PARENT ENTITY”)
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Issued Capital (net of costs)
Accumulated losses
Share-based payment reserve
Net loss for the period
Total comprehensive loss for the period
2016
$
2015
$
6,977,382
8,990,097
7,173,701
9,047,379
565,508
2,877,905
1,580,508
2,900,781
40,100,111
38,600,111
(35,770,192)
(33,715,849)
1,263,274
1,262,336
5,593,193
6,146,598
(2,054,344)
(2,015,576)
(2,061,155)
(2,035,874)
Contractual Obligations / Commitments (Refer Note 23)
-
-
58
AERIS ENVIRONMENTAL LTD
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S
33. NOTES TO CASH FLOW STATEMENTS
a. Reconciliation of cash
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market
instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash
flows is reconciled in the related items in the statement of financial position as follows:
Cash at bank and on hand
Term Deposits
Deposits on call
b. Reconciliation of operating loss after income tax to net cash flows from operating activities
Operating loss after income tax
Non cash/non-operating items included in profit and loss
Depreciation, amortisation and impairment
Provision for doubtful debts
Share based payments
Changes in assets and liabilities
(Increase) / decrease in receivables
(Increase) / decrease in inventory
(Increase) / decrease in other assets
Increase / (decrease) in trade creditors
Increase / (decrease) in other creditors and accruals
Increase / (decrease) in employee entitlement expense
2016
$
2015
$
59,508
199,409
5,350,000
3,650,000
6,156
6,165
5,415,664
3,855,574
2016
$
2015
$
(2,065,931)
(2,016,912)
64,745
-
938
21,430
12,382
32,496
(1,048,579)
6,529
(124,172)
(24,869)
(58,223)
(24,646)
55,393
48,861
52,622
9,897
51,669
1,851
Net cash used in operating activities
(3,074,345)
(1,930,174)
59
ANNUAL REPORT 2016
34. BUSINESS COMBINATION
On 1 July 2014, Company signed a Memorandum of Understanding for acquisition of the business of Smartcool Systems
Australia Pty Ltd (Smartcool). Specifically, the Company acquired the staff, trading business, know-how and related
distribution rights from Smartcool. As a consideration for the transaction, on 31 July 2014, the Company issued Chris
Rogerson (CEO of Smartcool) and Scott Gregson (National Operations Manager) with 250,000 share options each, at an
exercise price of 20 cents and 3-year vesting period. The issue of share options is subject to significant performance
hurdles.
The Company acquired Smartcool because it significantly enlarges the range and scope of products and services, in the
Australian Sales segment, that can be offered to its clients.
Assets acquired
Property, plant and equipment
Goodwill
Purchase consideration
Share Options
Cash paid
Cost
$
10,941
44,578
55,519
44,578
10,941
55,519
The goodwill of $44,578 comprised the value of expected synergies and distribution rights arising from the acquisition,
which is not separately recognised. Goodwill is allocated entirely to the Australian Sales segment.
Goodwill is tested for impairment annually as at 30 June and when circumstances indicate that the carrying value may be
impaired. Accordingly goodwill was written off as impaired during the 2016 financial year.
60
AERIS ENVIRONMENTAL LTD
D I R E C T O R S ’ D E C L A R A T I O N
In accordance with a resolution of directors, I state that:
1. In the opinion of the Directors:
a. the financial statements and notes, as set out on pages 21 to 60, are in accordance with the Corporations Act 2001 and
i. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and its performance
for the year ended on that date; and
ii. complying with Accounting Standards and the Corporations Regulations 2001;
b. the financial statements and notes also comply with International Financial Reporting Standards as disclosed in
note 1; and
c. There are reasonable grounds to believe that the company and the consolidated entity will be able to pay its debts as
and when they become due and payable;
2. This declaration has been made after receiving the declarations required to be made to the directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2016.
On behalf of the Board of Directors
M STANG
Director
Sydney, 30 September 2016
61
ANNUAL REPORT 2016 62
AERIS ENVIRONMENTAL LTD I N D E P E N D E N T A U D I T O R ’ S R E P O R T
INDEPENDENT AUDITOR’S REPORT
To the members of Aeris Environmental Ltd
Report on the Financial Report
Level 11 | 1 York Street | Sydney | NSW | 2000
GPO Box 4137 | Sydney | NSW | 2001
t: +61 2 9256 6600 | f: +61 2 9256 6611
sydney@uhyhn.com.au
www.uhyhnsydney.com.au
We have audited the accompanying financial report of Aeris Environmental Ltd (the Company), which
comprises the consolidated statement of financial position as at 30 June 2016, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, notes comprising a
summary of significant accounting policies and other explanatory information, and the directors’
declaration for the consolidated entity comprising the Company and the entities it controlled at the
year's end or from time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal controls as the directors determine are necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements that the financial statements comply with International Financial Reporting
Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation of the financial report that gives a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
An association of independent fi rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting fi rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
63
ANNUAL REPORT 2016
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Opinion
In our opinion:
(a) the financial report of Aeris Environmental Ltd is in accordance with the Corporations Act
2001, including:
i.
ii.
giving a true and fair view of the consolidated entity’s financial positions as at
30 June 2016 and its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
(b) the financial report also complies with International Financial Reporting Standards as
disclosed in Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included on pages 11 to 18 of the directors’ report for
the year ended 30 June 2016. The directors of the Company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act
2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Aeris Environmental Ltd for the year ended 30 June
2016, complies with section 300A of the Corporations Act 2001.
M. D. Nicholaeff
Partner
Sydney
30 September 2016
UHY Haines Norton
Chartered Accountants
An association of independent fi rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting fi rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
64
AERIS ENVIRONMENTAL LTD
A U S T R A L I A N S E C U R I T I E S E X C H A N G E
A D D I T I O N A L I N F O R M A T I O N
Additional information required by the Australian Securities Exchange (ASX) Listing Rule 4.10, and not disclosed elsewhere
in this Annual Report, is detailed below. This information was prepared based on the Company’s Share Registry information,
its option register, ASX releases and the Company’s Constitution.
SHAREHOLDING INFORMATION
Distribution of Shareholders
Analysis of the quoted fully paid ordinary shares by holding as at 31 August 2016:
Spread of Holdings
Number of Holders
Ordinary shares
% of Total Issue Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 50,000
50,001 – 100,000
100,001 – 500,000
500,001 – 1,000,000
1,000,001 and over
Total
40
140
128
232
71
92
14
30
747
23,891
401,836
1,103,787
6,065,027
5,772,284
22,330,964
9,326,247
109,904,686
154,928,722
0.02
0.26
0.71
3.91
3.73
14.41
6.02
70.94
100.00
Based on the market price at 31 August 2016 there were 43 shareholders with less than a marketable parcel of $500 worth of
shares at a share price of $0.445. There are no restricted securities on issue.
65
ANNUAL REPORT 2016
Statement of Shareholdings as at 14 September 2016
The names of the 20 largest holders of fully paid ordinary shares are listed below:
Rank
Shareholder
Number of Shares
% Holding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Mr Maurie Stang
Mr Bernard Stang
Link Traders (Aust) Pty Ltd
Mr Steven Kritzler ‹S Kritzler Family A/C›
Pulitano Family Superannuation Pty Ltd ‹Pulitano Family SF A/C›
HSBC Custody Nominees (Australia) Limited – A/C 2
J P Morgan Nominees Australia Limited
Australian Shareholder Nominees Pty Ltd
National Nominees Limited
HSBC Custody Nominees (Australia) Limited
Henderson International Pty Ltd ‹Henderson Super Fund A/C›
Helensleigh Pty Ltd ‹Helensleigh Staff S/F A/C›
BNP Paribas Noms Pty Ltd ‹DRP›
Citicorp Nominees Pty Limited
Wakil Family Group Pty Ltd ‹Ron Ton Fashion P/L R/F A/C›
Mr Joshua Aaron Ehrlich
Towns Corporation Pty Ltd ‹PAE Family A/C›
Benlee Company Pty Ltd ‹The Benlee A/C›
Hillridge Pty Ltd
Jamber Investments Pty Ltd ‹Amber Schwartz Family A/C›
Total of Top 20 Holdings
Other Holdings
Total Ordinary Shares
18,779,749
15,331,609
14,605,400
8,331,609
5,564,447
5,243,500
5,015,251
4,543,144
4,365,532
2,713,828
2,474,714
2,226,827
1,938,762
1,900,981
1,793,300
1,700,000
1,686,216
1,525,210
1,508,300
1,500,000
102,748,379
52,180,343
154,928,722
12.12
9.89
9.43
5.38
3.59
3.38
3.24
2.93
2.82
1.75
1.59
1.44
1.25
1.23
1.16
1.10
1.09
0.98
0.98
0.97
66.32
33.68
100.00
66
AERIS ENVIRONMENTAL LTD A U S T R A L I A N S E C U R I T I E S E X C H A N G E
A D D I T I O N A L I N F O R M A T I O N
UNQUOTED EQUITY SECURITIES
For details of the unissued ordinary shares the Company has under option, refer below and to the “Share Options” section of
the Directors’ Report.
Number
Class of Options
Number of Holders
250,000
20,000
500,000
Options held by Peter Bush, which expire on 17 November 2016 and have an exercise price of 16.5 cents.
Options that expire on 23 February 2017 and have an exercise price of 22 cents.
250,000 Options held by each of Chris Rogerson and Scott Gregson, which expire on 31 July 2019 and have an
exercise price of 20 cents
770,000
Total Options on Issue
VOTING RIGHTS
1
1
2
4
At general meetings of the Company, all fully paid ordinary shares carry one vote per share without restriction. On a show of
hands, every member present at a general such meetings, or by proxy, shall have one vote and, upon a poll, each share shall
have one vote. Option holders have no voting rights until the options are exercised.
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders in Aeris Environmental Ltd, based on Substantial Shareholder Notices received by the ASX and the
Company, are as follows:
Name
Mr Maurie Stang
Mr Bernard Stang
Link Traders (Aust) Pty Ltd
Number
Class
Voting Power
19,816,267
Ordinary fully paid shares
15,928,109
Ordinary fully paid shares
12.80%
10.30%
Link Enterprises International Pty Ltd ‹Link Superannuation Fund A/C›
13,659,371
Ordinary fully paid shares
9.02%
Link Enterprises International Pty Ltd ‹Luca Lavigne A/C›
Mr Steven Kritzler
8,331,609
Ordinary fully paid shares
5.40%
ON-MARKET BUY-BACK
There is no current on-market buy-back of shares in the Company.
67
ANNUAL REPORT 2016 C O R P O R A T E D I R E C T O R Y
Aeris Environmental Ltd
ACN:
ABN:
093 977 336
19 093 977 336
Directors
Non-Executive Chairman
Maurie Stang
Steven Kritzler Non-Executive Director
Bernard Stang Non-Executive Director
Peter Bush
Chief Executive Officer, Chief Financial Officer and Alternate Director
Company Secretary
Robert Waring
Registered and Principal Office
Unit 5, 26-34 Dunning Avenue
Rosebery NSW 2018 Australia
Telephone:
Facsimile:
Email:
Website:
+61 2 8344 1315
+61 2 9697 0944
info@aeris.com.au
www.aeris.com.au
Share Registry
Computershare Investor Services Pty Ltd
Yarra Falls, 452 Johnston Street, Abbotsford VIC 3067
GPO Box 2975, Melbourne VIC 3001 Australia
Telephone:
Telephone:
Facsimile:
Website:
Investor Link:
Auditor
+61 3 9415 4000
1300 850 505 (within Australia)
+61 3 9473 2500
www.computershare.com
www.investorcentre.com/contact
UHY Haines Norton Sydney
Level 11, 1 York Street, Sydney NSW 2000
GPO Box 4137, Sydney NSW 2001
Telephone:
Website:
+ 61 2 9256 6600
www.uhyhnsydney.com.au
Stock Exchange
The Company’s fully paid ordinary shares are quoted on the official list of the Australian Securities Exchange (ASX Limited).
ASX Code
AEI
68
AERIS ENVIRONMENTAL LTD
AERIS ENVIRONMENTAL LTD
ACN 093977336