ANNUAL REPORT
AERIS ENVIRONMENTAL LTD
ACN 093977336
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CONTENTS
Chairman and CEO Report
Review of Operations
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 (ASX) Additional Information
Corporate Directory
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CHAIRMAN AND CEO REPORT
Aeris’ resources during the 2017-18 financial year have been directed at transformation
milestones. Specifically, the Company reaffirmed its commitment to the North American
market and the internationalisation of its product portfolio, including regulatory and
technical studies. Critically, Aeris has focussed on strategic partnerships with global
companies that can deliver market penetration and customers in their own right.
The Company is successfully scaling its ‘accelerated
growth’ strategy. Our material investments to-
date in product development, regulatory approvals,
customer validation and global branding have
reached an inflection point, with increasing interest
and commitment from high-profile customers and
distributors in each of the core business units, being
AerisGuard consumables, AerisCoat Anti-Corrosion,
and SmartHUB SmartENERGY and control.
The Company is now expanding its support capability
to provide its key distributors and commercial
partners with comprehensive training, in-field
technical services, and applicable regulatory
registrations, supply chain management and improved
efficiency in international markets. Aeris is winning
project and annuity business by actively working with
companies that have reach and depth in our priority
global markets, both geographically and in each of our
business units – hygiene and consumables, corrosion,
visualisation, control and optimisation (SMART IOT
enabled systems).
During the 2017-18 financial year, the Company
announced that it had successfully executed new
and expanded business with marquee clients and
projects. These include the establishment of an
e-commerce platform jointly with The Rexel Group,
the signing of a Master Service Agreement with
Sodexo, and commencing projects with ENGIE at the
Visy Tumut production facility and with St Benedict’s
College, Townsville, a leading independent school in
Queensland. Additionally, the Company’s platinum
partnership programme now has over 25 partners
confirmed in Australia, Asia, Europe, the Middle East
and now the USA, and we have commenced doing
business with five major global air-conditioning
manufacturers.
The drivers for increased adoption are Aeris’ proven
capability to remove toxic and dangerous chemicals
and pollutants from the ‘built environment’, to
demonstrate energy savings of 20-30%, to ‘demand
improvements’ of over 50%, and materially extend
asset life and extend coil life by up to 500%. Aeris
continues to gain commercial interest on its SMART
ecosystem by not only providing increased energy
efficiency and indoor environment quality, but also by
offering baseline monitoring and real-time reporting.
The positive impact of our ‘clean, green’ technologies
has enabled the live monitoring of the key assets using
the Aeris suite of environmental solutions.
The Company wishes to recognise the outstanding
effort of its team, who has worked tirelessly to see
Aeris’ disruptive technologies achieve success on the
world stage. Importantly, the ‘domain knowledge’
brought to us by each of our strategic and platinum
1
ANNUAL REPORT 2018 year the Company’s target is to continue to develop
contracted recurring revenue streams, improve
operating cash flows, and is highly focussed on
delivering sales growth leveraging our current
commercial pipeline and through a number of
potentially transformative discussions that are
currently underway.
The 2018 R&D ATO cash-back of approximately
$450,000 is expected to be received in the December
2018 quarter. The Company recognises that its
significant investments to-date, in these technologies,
have an absolute commercial priority in generating
sustainable growth in profitable annuity business and
maximising shareholder value.
MAURIE STANG
Non-Executive Chairman
PETER BUSH
Chief Executive Officer
partners has greatly expanded the Company’s
capability to deliver and implement its products across
multiple applications and industries. These insights
are brought to us by companies that are existing
market leaders in the very fields that we are pursuing
and each of these partners has recognised the infield
performance of the Aeris portfolio.
We are assessing several options regarding capital
to underpin Aeris’ growth objectives, whilst putting in
place ongoing trade agreements targeting substantial
revenue growth. As outlined in previous ASX
announcements, the Company has received additional
loan funding from its Directors, at an interest rate
that is tied to the Australian Taxation Office (ATO)
benchmark interest rate, and in July 2018 the Company
received a cash-back of $667,000 from the ATO for
its research and development (R&D) activities for the
financial year ended 30 June 2017. The 2018 R&D ATO
cash-back of approximately $450,000 is expected in
the December 2018 quarter.
Aeris continues to generate attractive margins,
has a firm control on costs and a relatively-low
fixed overhead. Aeris has a strong pipeline of sales
opportunities with leading customers, platinum
partners and ‘specifying consultants’, particularly
in the USA, Asia and Europe. In the 2018-19 financial
2
AERIS ENVIRONMENTAL LTD REVIEW OF OPERATIONS
The financial year ended 30 June 2018 has seen Aeris scale-up its commercial production
capabilities, with a multi-region focus. This has been achieved by a combination of optimising
the Company’s supply chain, preparing Aeris’ key product portfolios for international rollout and
working on developing relationships with international leaders that have existing paths to market.
Aeris has a growing base of ongoing contracted business,
which, together with the increasing adoption of the Aeris
technologies in its key business units of Corrosion,
Hygiene, Control and Service, and its international
distributors and customers, underpins accelerating and
sustained momentum into 2019 and beyond.
Highlights included:
• Core products for each business unit – AerisCoat
Anti-Corrosion, AerisGuard Hygiene consumables, and
Smart HUB SmartENERGY and Control – are all now
commercially launched and gaining acceptance in the
Company’s key global markets.
• Several global strategic partnerships are moving
towards final agreements and commercial rollout
following increased investment on core strategic
markets in the USA, Europe and the Asia Pacific region.
• Focus on a clear path to market with partners who
determine product usage and specification.
• Solid growth of hygiene, mould and remediation,
delivered through agreements with distributors, each
having minimum annual purchase commitments.
• A growing forward pipeline for Aeris SmartHUB,
AerisView and Building Management Systems projects,
following successful completion of further work in this
area.
• Large-volume sales of corrosion coatings continue for
key global accounts, with rapidly-increasing adoption
of the AerisCoat OEM corrosion prevention and
protection system.
• 2017-18 financial year cash receipts from customers
of $2.72 million, a 50% increase on the prior
corresponding year (FY2017 $1.81 million). Cash
receipts of $1.26 million for July and August 2018,
including $667,000 ATO R&D cash-back.
• A strong pipeline of sales opportunities with leading
customers, platinum partners and ‘specifying
consultants’ internationally.
COMMENTARY
During the 2017-18 financial year, the Company’s
attention was on scaling production, building the Aeris
sales channels and successfully accelerating its key
business segments, being corrosion prevention, asset
management monitoring/control, mould and hygiene.
The Company has been developing relationships with
international leaders that have existing sales channels
and can exert substantial influence on customers to
adopt Aeris’ ‘clean, green’ technologies. In this year the
Company has signed additional platinum partnership
agreements, received orders and trained applicators in
each of the following territories, being Australia, India,
the USA, Malaysia, the United Arab Emirates, Vietnam,
the Philippines, Hong Kong and New Zealand.
The Company continues to receive positive feedback
from large-scale potential partners with the aim of
replacing legacy products with the more modern Aeris
products. These developments deliver broad efficiency
improvements resulting in assets that are demonstrably
more efficient, last longer and are safer for both the
operator and the environment.
Consumables and corrosion protection products are
successfully being marketed by the Company as an
integrated solution to Aeris’ asset efficiency offerings. In
the USA, the Company has targeted channels to market
that will provide access for Aeris’ products at all the
points of need across North America.
The Company’s one-step, water-based, long-life
AerisCoat corrosion prevention solutions are attracting
high levels of interest globally from highly-respected
Original Equipment Manufacturers (OEM) in Heating,
Ventilation and Air-Conditioning (HVAC) and heat
exchangers, and on-site in large industrial, transport and
manufacturing plants.
There have been important commercial developments
with Aeris’ anti-corrosion coatings, which are water
based with single step easy application and which are
often the only available option in high-profile challenging
environments. The products have applications from
mining operations, in oil rigs and in pipelines, and
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ANNUAL REPORT 2018 continue being adopted by leading technical service
groups and HVAC manufactures internationally.
The Company is concentrating on agreements to drive
its proprietary technologies into vertical applications
covering oil and gas, air-conditioning, refrigeration,
transport, manufacturing and facilities management.
Aeris signed a supply agreement with Impreglon
Australia Pty Ltd (Impreglon), an international company
with 35 years’ experience in the metal finishing industry.
Impreglon will exclusively purchase and apply the
AerisCoat Corrosion protection and prevention products
to all HVAC, and refrigeration units and coils that are
processed at its Australian operations. A Master Service
Agreement had previously been executed with Sodexo
(one of the world's leading facilities management
companies), and the AerisGuard room remediation and
deep cycle hygiene have been successfully implemented
for Sodexo. Further material orders from Sodexo are
expected so as to meet a pipeline of opportunities for
Aeris’ products, which have been identified for utilisation
in the ‘built environment’ for on-site camps, mining,
temporary housing, facilities management, and offshore
oil and gas industries.
Aeris has expanded the technical capability of its
SmartHUB ecosystem, which has seen validation within
key customer groups, and is currently being scaled into
a commercial rollout directly through key customers,
wholesale and platinum distribution partners. The
Company has the ability to drive efficiency and improve
asset performance with integrated and scalable, yet
simple-to-implement, solutions. The Aeris SmartHUB
ecosystem delivers benefits that other building
information and management systems, concentrating
on data only, do not achieve. Each unit can provide full
control of air-conditioning systems, including remote
graphics interface, visualisation of space temperatures,
unit status and alarms. Building conditions information,
such as ambient temperature and relative humidity
data, can be displayed on the interface via application
programming interface (API) feed from the internet.
This data, in conjunction with energy data and unit
information, can be used as necessary for peak demand
management and control through implementations of the
Company’s SmartENERGY strategy.
The Company is now focusing its resources on
supporting its key partners and platinum distributors
with in-field technical services and product support,
together with applicable regulatory registrations in key
markets. Aeris’ scalable model continues to provide
attractive margins by minimising the downstream cost of
end customer acquisition, retention and servicing.
The Company is targeting the completion of
several material agreements in North America
and internationally in the near-term. Each of these
potential agreements on which Aeris is focused is with
counterparties who are leaders in their respective
markets and have already provided good insight as to
their sales potential with the Company’s range.
Aeris has put in substantial resources into its
manufacturing and supply chain capability in anticipation
of material growth in its product sales through its newly-
established distribution network. As part of this strategy,
the Company is increasing its inventory of long lead
time components and raw materials so as to minimise
constraints on sales that would result from the lead
times on manufacturing.
Aeris is now expanding its capability in terms of investor
relations and shareholders’ communications. The
Company has put in place a clear strategy of activities
targeted at both retail and institutional investors, including
updating Aeris’ branding of products and product
information on its website, and regular roadshows with
brokers and investors. Aeris has conducted highly-
successful trade shows in Australia and overseas, which
have substantially increased the Company’s profile and
presence with end customers, trade wholesalers and key
facility management companies.
ABOUT AERIS ENVIRONMENTAL LTD
Aeris develops, manufactures and markets patented, environmentally-friendly technology solutions that address the
global megatrends of energy efficiency, healthier air, food safety, water quality and long-term materials protection,
with core guiding principles of ‘clean, green, protect’. Smart Enzymes and Coatings provide long-term remediation,
and prevention of mould, bacteria growth, corrosion and improved hygiene, with OEM, consumer and technical
applications. SmartENERGY provides dramatic and proven energy savings in the range of 19% to 33%, alongside
documented improvement in system efficiency (54% to 289% improvement in airflow and up to 40% in coil efficiency),
and independently-validated indoor air quality across all air-conditioning and refrigeration systems, with proven
immediate cash flow savings.
4
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
The Directors of Aeris Environmental Ltd submit herewith the Annual Financial Report
for the financial year ended 30 June 2018. In order to comply with the provisions of the
Corporations Act 2001, the Directors' Report is 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 M Stang is a director of the Regional Health Care
Group of companies and of Novapharm Research.
He has over 30 years of 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 M 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:
• Non-Executive Chairman of Nanosonics Limited
(ASX:NAN) since November 2000.
• Non-Executive Deputy Chairman of Vectus
Biosystems Limited (ASX:VBS) since December 2005.
STEVEN KRITZLER
Non-Executive Director
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 B Stang (B.Arch) is a Co-Founder and Director
of the Regional Health Care Group of companies.
He serves as the Chief Executive Officer of Stangcorp
Pty Ltd, Stoneville Ltd and Brunswick Property Pty Ltd,
which are key property entities in the Stang Group.
Mr B Stang manages a broad portfolio of investments in
the private and listed sectors, and has enjoyed over 40
years of operational leadership in successful healthcare
businesses. He serves as a Director of Novapharm
Research. Mr B Stang is a Director of Weizmann
Australia, which represents the Weizmann Institute
of Science in Australia, and the Institute has recently
established the Garvan-Weizmann Centre of Cellular
Genomics in Sydney, in joint venture with the Garvan
Institute. He served as a Non-Executive Director of
Nanosonics Limited (ASX:NAN) until 2007.
Director since 2002.
Directorship of other listed companies held in the last
three years:
• Non-Executive Director of Vectus Biosystems Limited
(ASX:VBS) from December 2005 until October 2016.
Mr Kritzler (M.Sc from the UNSW in the field of
Polymer Chemistry) holds a number of international
patents. He is the Technical Director of Novapharm
Research. Mr Kritzler has over 40 years of experience
in commercial R&D in the areas of pharmaceutical,
medical, cosmetic and specialty industrial products.
Under his technical direction, Novapharm Research
ALEX SAVA
Non-Executive Director
Dr Sava (M.Sc in Chemical Engineering, PhD in
Physical Chemistry) spent seven years earlier in
his career with the Institute of Semiconductors in
Ukraine and four years as a Vice President of New
5
ANNUAL REPORT 2018 ROBERT WARING
Company Secretary
Mr Waring (B.Ec, CA, FCIS, FFin, FAICD) was appointed
to the position of Company Secretary of the Company
in 2002. He has over 40 years of experience in financial
and corporate roles, including over 25 years in
company secretarial roles for ASX-listed companies
and over 19 years as a Director of ASX-listed
companies. Mr Waring has over 30 years of 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
company 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 Cobalt Blue Holdings Limited (ASX:COB),
Vectus Biosystems Limited (ASX:VBS) and Xref Limited
(ASX:XF1).
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
Website: www.computershare.com
York-based MicroMax Computer Intelligence Inc. He
holds over 100 international patents and has authored
over 50 scientific articles. Dr Sava 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 (ASX:NAN). He also
made a substantial contribution to the later success
of Nanosonics Limited and has undertaken business
development activity across many international
markets. Dr Sava has scientific, regulatory and
commercial experience.
Director since 2016.
Directorship of other listed companies held in the
last three years:
• None
PETER BUSH
Chief Executive Officer, Alternate Director
for M and B Stang, and Chief Financial Officer
Mr Bush (B.Com, CA) is the Chief Financial Officer of
the Regional Health Care Group of companies (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) and of
GryphonCapital (an independent merchant bank that
facilitates the financing and development of emerging
healthcare-related entities). He began his career
working for five 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 (ASX:VBS) since July 2015.
6
AERIS ENVIRONMENTAL LTD
DIRECTORS' REPORT
DIRECTORS’ MEETINGS
The following table sets 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 member).
BOARD OF
AUDIT COMMITTEE
CORPORATE
REMUNERATION AND
DIRECTORS MEETINGS
MEETINGS
GOVERNANCE
NOMINATION
COMMITTEE MEETINGS
COMMITTEE MEETINGS
Number of meetings held
NUMBER OF MEETINGS ATTENDED
Maurie Stang
Steven Kritzler*
Bernard Stang
Alex Sava
8
8
7
8
8
4
4
-
4
-
1
1
-
1
-
2
2
1
2
-
In addition to the above meetings the Board and senior executives conduct formal management meetings.
* Mr Kritzler was appointed a member of the Remuneration and Nomination Committee on 19 October 2017 and
attended the meeting that was held after this time.
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 financial year were:
AUDIT COMMITTEE
Bernard Stang (Chairman)
Maurie Stang
CORPORATE GOVERNANCE
COMMITTEE
Maurie Stang (Chairman)
Bernard Stang
REMUNERATION AND
NOMINATION COMMITTEE
Maurie Stang (Chairman)
Bernard Stang
Steven Kritzler (Appointed
19 October 2017)
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 solutions.
There is no significant change in the nature of activities performed by the Company during the financial year.
7
ANNUAL REPORT 2018 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
2018
($)
2,770,897
(6,001,782)
(3,230,885)
2017
($)
2,882,259
(6,634,524)
(3,752,265)
For a comprehensive review of the Company’s operational performance please refer to the Chairman’s and Chief
Executive Officer’s Report.
DIVIDENDS
The Directors do not recommend the payment of a dividend in respect of the year ended 30 June 2018 (2017: Nil). No
dividends have been paid or declared since the start of the financial year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
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.
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 a Deed of Access and Indemnity with each of its Directors, by which the Company indemnifies each
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.
8
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
Insurance premiums
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 to 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 financial year.
DIRECTORS’ INTERESTS
Equity holdings
OPTIONS OR RIGHTS
GRANTED TO DIRECTORS AND
OFFICERS OF THE COMPANY
During or since the end of the 2018 financial year,
the Company granted options or rights for no
consideration over unissued ordinary shares in Aeris
Environmental Ltd to the following Directors and
Officers.
2018
2017
Performance Rights issued to Peter Bush
1,323,537
-
Options granted to Alex Sava
Options granted to Robert Waring
-
-
100,000
50,000
PARTICULARS OF OPTIONS
OR RIGHTS GRANTED OVER
UNISSUED SHARES
2018
2017
Number of options or rights on issue over
unissued ordinary shares
1,695,000 1,845,000
Shares issued in the period as the result of
the exercise of options or rights
50,000
900,000
ORDINARY
SHARES
RIGHTS OVER
ORDINARY SHARES
Options or rights expired during the period
200,000
20,000
Maurie Stang
20,398,290
Bernard Stang
17,227,196
Steven Kritzler
8,331,609
-
-
-
Alex Sava
Peter Bush
68,025
750,000
100,000
1,323,537
Options or rights granted during the period
100,000 1,495,000
Full details of options or rights on issue are
shown in Note 18.
9
ANNUAL REPORT 2018 NON-AUDIT SERVICES
During the financial 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 financial 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 financial
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.
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.
AUDITOR’S INDEPENDENCE
DECLARATION
The Auditor’s Declaration of Independence for the
year ended 30 June 2018 is attached to this Directors’
Report on page 20.
CORPORATE GOVERNANCE
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:
https://www.aeris.com.au/investor
10
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
REMUNERATION REPORT (AUDITED)
KEY MANAGEMENT
PERSONNEL (KMP)
The KMP of the Company comprise the Directors,
Chief Executive Officer and Company Secretary only,
as follows:
Non-Executive Directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
Executive
Peter Bush
(Chief Executive Officer
and Alternate Director)
Company Secretary
Robert Waring
REMUNERATION POLICIES
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 that 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
During the 2017 financial year, 100,000 share options
were issued to Alex Sava, Non-Executive Director, with
an exercise price of $0.42 and having a vesting period
of three years. Payments to Non-Executive Directors
are 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.
During the 2018 financial year, Peter Bush has been
issued with a total of 1,323,537 performance rights
in respect of his short and long-term incentivisation
programme for services for the years ended 30
June 2015, 2016 and 2017. All of the abovementioned
performance rights will vest as to 33% on 11 April 2019
(being one third), 33% on 11 April 2020 (being one third)
and the final 33% (being the balance) on 11 April 2021,
and will expire if not converted on 11 April 2022.
(d) Short-term incentives (STI)
During the financial year ended 30 June 2017, STIs
were paid to Peter Bush, Chief Executive Officer, in
cash for the achievements against annual performance
targets set by the Board at the beginning of the
performance period. The performance objectives of
Aeris are currently directed to achieving financial
targets (sales) complemented by achievement of
individual performance goals. All targets are set
having regard to prior year performance, market
conditions and the Board-approved budgets.
Specific targets are not provided in detail due to
their commercial sensitivity. The STI arrangement is
reviewed annually by the Board.
(e) Long-term incentives (LTI)
The LTI provide an annual opportunity for selected
executives to receive awards in cash and equity. The
equity portion, being performance rights, vest over
three years and is intended to align a significant
portion of an executive’s overall remuneration to
shareholder value over a longer term. Equity grants
are subject to performance conditions (revenue and
/ or earnings per share) and are tested against the
performance hurdles set at the end of three financial
years. If performance hurdles are not met at the
vesting date, the rights and options lapse. In addition,
performance rights and options will only vest if
the executive KMP member remains in continuous
employment with Aeris in their current or equivalent
position from the date of grant to the respective
vesting date of each grant.
11
ANNUAL REPORT 2018 (f) Share option based compensation
In February 2005, Aeris established an Employee
Share Option Plan (ESOP). The ESOP was approved by
shareholders at the Annual General Meeting held on 25
November 2004 and was re-approved by shareholders
at the Annual General Meeting held on 27 November
2014. The terms of the ESOP provide 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
the Rules of the ESOP 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.
(ii) The contractual life of the options issued ranges
(vii) The options issued are on an equity-settled basis.
from three to five years.
There are no cash settlement alternatives.
(iii) The exercise price determined in accordance with
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 Executive, including their personally-related entities, are
as follows:
2018 Shares
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
Specified executives
Peter Bush
Robert Waring
Options and rights
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
Specified executives
Peter Bush
Robert Waring
Number held
30 June 2017
Acquired
during year
Sold
during year
Issued on exercise
of options
Number held
30 June 2018
20,621,822
17,003,664
8,331,609
68,025
750,000
173,000
46,948,120
-
(223,532)
223,532
-
-
-
67,857
291,389
-
-
-
-
-
(223,532)
-
-
-
-
-
-
-
20,398,290
17,227,196
8,331,609
68,025
750,000
240,857
47,015,977
Number held
30 June 2017
Granted
during year
Lapsed
during year
Exercised
during year
Number held
30 June 2018
-
-
-
100,000
-
-
-
-
-
1,323,537
50,000
150,000
-
1,323,537
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
1,323,537
50,000
1,473,537
12
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
2017 Shares
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
(appointed on 3 October 2016)
Specified executives
Peter Bush
Robert Waring
Options and rights
Specified directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
(appointed on 3 October 2016)
Specified executives
Peter Bush
Robert Waring
Number held
30 June 2016
Acquired
during year
Sold
during year
Issued on
exercise of options
Number held
30 June 2017
19,816,267
15,928,109
8,331,609
805,555
1,075,555
-
58,025
10,000
-
103,000
44,237,010
-
70,000
1,961,110
-
-
-
-
-
-
-
-
20,621,822
-
-
17,003,664
8,331,609
-
68,025
750,000
750,000
-
173,000
750,000
46,948,120
Number held
30 June 2016
Granted
during year
Lapsed
during year
Exercised
during year
Number held
30 June 2017
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
-
-
100,000
750,000
-
750,000
-
50,000
150,000
-
-
-
(750,000)
-
-
50,000
(750,000)
150,000
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 incur expenses for services provided by Regional Healthcare Group Pty Ltd.
Office and administration expenses
Rent
Distribution expenses
Corporate services
Mr M Stang and Mr B Stang are Directors and shareholders of Regional Healthcare Group Pty Ltd.
2018 ($)
2017 ($)
168,378
246,489
53,645
56,758
56,650
83,500
43,570
81,033
13
ANNUAL REPORT 2018 Novapharm Research (Australia) Pty Ltd
The Company and its controlled entities incur expenses 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 incur expenses for rent and utility outgoings to Ramlist Pty Ltd.
Mr M Stang and Mr B Stang are Directors and shareholders of Ramlist Pty Ltd.
Ensol Systems Pty Ltd
109,021
304,666
68,476
224,478
50,556
39,853
The Company and its controlled entities incur expenses for marketing and other operational services to
5,633
86,500
Ensol Systems Pty Ltd.
Mr M Stang is a shareholder of Ensol Systems Pty Ltd.
Bright Accountants
The Company and its controlled entities incur expenses for accounting services to Bright Accountants.
Mr P Bush is a related party to Bright Accountants.
Loan from Directors (Messrs M Stang, B Stang and S Kritzler)
Interest on loans
Loan borrowings
Loan repayments
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
Bright Accountants
Ensol Systems
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 ATO benchmark rates
56,884
52,770
15,748
27,630
1,200,000
-
-
1,015,000
171,352
26,487
179,439
119,538
26,067
10,305
84,136
2,989
4,500
84,165
1,200,000
-
14
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
REMUNERATION REPORT (AUDITED)
DETAILS OF DIRECTORS’ AND EXECUTIVE OFFICERS’
REMUNERATION FOR THE YEAR ENDED 30 JUNE 2018
Short term benefits
Post employment
benefits
Equity based
benefits
Salary and
Director's Fees
STI Cash
bonus
Non-monetary
benefits
Superannuation
Other long-
term benefits
Shares
Options
and rights
(Note (ii))
Total
Performance
Related
$
$
$
$
$
$
$
$
%
Non-Executive
Directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
Total Non-Executive
Directors
Executive Directors
Total Directors
Executives (Note (i))
Peter Bush
Robert Waring
Total
-
-
-
69,589
69,589
-
69,589
240,175
71,781
381,545
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,817
-
22,817
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
0.0%
0.0%
0.0%
-
-
-
-
-
-
9,410
78,999
9,410
78,999
-
-
0.0%
9,410
78,999
12,729 275,721
4,713
76,494
26,852 431,214
0.0%
0.0%
15
ANNUAL REPORT 2018 DETAILS OF DIRECTORS’ AND EXECUTIVE OFFICERS’
REMUNERATION FOR THE YEAR ENDED 30 JUNE 2017
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
and rights
(Note (ii))
Total
Performance
Related
$
$
$
$
$
$
$
$
%
Non-Executive
Directors
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
(appointed on
3 October 2016)
Total Non-Executive
Directors
Executive Directors
Total Directors
Executives (Note (i))
Peter Bush
Robert Waring
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
211,711
65,043
71,994
-
283,705
65,043
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26,292
-
26,292
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
0.0%
0.0%
4,705
4,705
0.0%
4,705
4,705
-
-
0.0%
4,705
4,705
- 303,046
2,357
74,351
7,062 382,102
21.5%
0.0%
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
08-Jan-15
31-Jul-16
23-Dec-16
14-Oct-21
23-Dec-16
23-Oct-21
$0.0031
$0.2823
$0.2828
$0.31
$0.42
$0.42
$0.28
$0.37
$0.37
5.7%
108.3%
108.3%
3.00%
2.34%
2.34%
The following factors and assumptions were used in determining the fair value of performance shares on issue date.
Grant Date
30-May-18
30-May-18
30-May-18
Vesting date
Price of shares on grant date
Exercise price
11-Apr-19
11-Apr-20
11-Apr-21
$0.1650
$0.1650
$0.1650
Not applicable
Not applicable
Not applicable
16
AERIS ENVIRONMENTAL LTD DIRECTORS' REPORT
REMUNERATION REPORT (AUDITED)
EMPLOYMENT CONTRACTS
Chief Executive Officer (CEO) :
The following information sets out the key terms of the employment agreement for the Company’s CEO, Peter Bush.
Contract term:
Continuous employment until notice is given by either party
Fixed remuneration:
$262,992. This is reviewed annually.
Notice period:
To terminate the employment, Mr Bush is required to provide Aeris with 3 months written
notice. Aeris must provide 3 months written notice.
Resignation or termination:
On resignation, unless the Board determines otherwise:
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
Mr Bush’s 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.
17
ANNUAL REPORT 2018 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 KMP. 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 (%)
2018
2017
2016
2015
2014
(3,230,023)
(3,747,555)
(2,062,727)
(2,016,912)
(1,067,893)
(2.05)
-
(50.00%)
(13.35%)
(2.40)
-
(33.33%)
(10.20%)
(1.35)
-
(6.67%)
(13.00%)
(1.55)
-
309.09%
(5.01%)
(0.91)
-
(31.25%)
(3.63%)
The Group’s sales revenue in the 2018 financial year recorded an increase by 0.2% and marginal reduction in gross
profit by 3%.
The Company is also in discussions with management and remuneration consultants to structure and align KMP
remuneration with strategic business objectives, with the aim of creating shareholder wealth.
SHARE OPTIONS
1,473,537 options and rights to take up ordinary shares in Aeris Environmental Ltd that were issued to KMP remain
unexercised at 30 June 2018 (2017: 150,000 options).
The following options were issued to KMP during the financial year:
NUMBER OF OPTIONS AND RIGHTS
Peter Bush
Alex Sava
Robert Waring
2018
1,323,537
-
-
2017
-
100,000
50,000
There were no options issued to KMP that expired or were forfeited during the years 2018 and 2017.
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.
Following the first strike at the 2017 Annual General Meeting, when a Company's remuneration report received
a 'no' vote of more than 25% of the votes cast, the Company met with the two shareholders who voted against
the resolution. Whilst it was agreed that the 'no' vote was not specially targeted at Aeris' Directors or other KMP
Remuneration, the shareholder concerns were noted.
Signed in accordance with a resolution of the Directors made pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the Directors
M STANG
Director
Sydney, 28 September 2018
18
AERIS ENVIRONMENTAL LTD 8
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
19
AUDITOR’S INDEPENDENCE DECLARATION
20
AERIS ENVIRONMENTAL LTD CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Continuing Operations
Revenue
Cost of sales
Gross profit
Other revenue
Administration expenses
Depreciation and amortisation expense
Distribution expense
Employee benefits expense
Financial expenses
Impairment of receivables
Research and development and patent expense
Occupancy expenses
Sales, Marketing and Travel expenses
Loss before income tax from continuing operations
Income tax benefit
Net loss for the year
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences
Total comprehensive loss for the year, net of tax
Loss for the year attributable to:
Owners of Aeris Environmental Ltd
Non-controlling interest
Total comprehensive loss for the year 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
4
4
5
5
5
5
5
5
2018
$
2017
$
2,751,960
2,746,816
(1,091,758)
(1,038,362)
1,660,202
1,708,454
18,937
135,443
(1,050,558)
(1,070,426)
(67,190)
(58,294)
(241,565)
(184,451)
(2,272,698)
(2,238,206)
(46,902)
(37,848)
(108,284)
(674,624)
(503,876)
(508,725)
(276,027)
(248,173)
(1,010,502)
(1,000,416)
(3,898,463)
(4,177,265)
6a
667,578
425,000
(3,230,885)
(3,752,265)
2,331
30,688
(3,228,554)
(3,721,577)
(3,230,023)
(3,747,555)
21
(862)
(4,710)
(3,230,885)
(3,752,265)
(3,227,692)
(3,716,867)
(862)
(4,710)
(3,228,554)
(3,721,577)
21
7
(2.05)
(2.40)
(2.05)
(2.40)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
21
ANNUAL REPORT 2018 CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2018
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Property, plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
Non-controlling interest
TOTAL EQUITY
Note
9
10A
11
12
10B
13
14A
14B
15
16
2018
$
2017
$
157,643
1,519,941
1,819,524
1,363,571
318,196
256,724
139,933
116,059
2,435,296
3,256,295
311,513
434,663
115,324
156,190
426,837
590,853
2,862,133
3,847,148
1,281,441
496,795
273,701
219,383
1,555,142
716,178
1,200,000
-
25,770
19,159
1,225,770
19,159
2,780,912
735,337
81,221
3,111,811
17
19
20
21
41,313,362
41,312,862
1,554,309
1,354,514
(42,790,135)
(39,560,112)
3,685
4,547
81,221
3,111,811
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
22
AERIS ENVIRONMENTAL LTD CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Balance at 1 July 2016
40,100,112
1,180,709
(35,812,557)
9,257
5,477,521
Equity
Reserves
Accumulated
losses
Non-controlling
interest
Total attributable to
equity holders of the entity
$
$
$
$
$
Loss for the year
Other comprehensive income /(loss)
-
-
-
(3,747,555)
(4,710)
30,688
-
-
Total comprehensive loss for the year
-
30,688
(3,747,555)
(4,710)
Transactions with owners in their capacity as owners:
.
Shares issued during year
1,212,750
-
-
-
Value of employee services under ESOP
-
143,117
-
-
(3,752,265)
30,688
(3,721,577)
1,212,750
143,117
Balance at 30 June 2017
41,312,862
1,354,514
(39,560,112)
4,547
3,111,811
Balance at 1 July 2017
41,312,862
1,354,514
(39,560,112)
4,547
3,111,811
Loss for the year
-
-
(3,230,023)
(862)
(3,230,885)
Other comprehensive income /(loss)
-
2,331
-
-
2,331
Total comprehensive loss for the year
-
2,331
(3,230,023)
(862)
(3,228,554)
Transactions with owners in their capacity as owners:
Shares issued during year
500
-
Value of employee services under ESOP
-
197,464
-
-
-
-
500
197,464
Balance at 30 June 2018
41,313,362
1,554,309
(42,790,135)
3,685
81,221
The above statement of changes in equity should be read in conjunction with the accompanying notes.
23
ANNUAL REPORT 2018 CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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
2018
$
2017
$
2,723,493
1,810,167
(5,644,375)
(6,317,344)
425,298
351,960
18,937
135,443
(61,656)
(38,307)
Net cash used in operating activities
33 (b)
(2,538,303)
(4,058,081)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shares issue
Loan borrowings
(26,326)
(65,080)
(26,326)
(65,080)
-
196,750
1,200,000
-
Net cash provided by financing activities
1,200,000
196,750
NET DECREASE IN CASH AND CASH EQUIVALENTS
(1,364,629)
(3,926,411)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR
1,519,941
5,415,664
Effects of exchange rate changes on cash and cash equivalents
2,331
30,688
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
9
157,643
1,519,941
* During the 2017 financial year Directors’ loans amounting to $1,015,000 were repaid by issuing them with 2,416,665 of the Company’s
ordinary shares.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
24
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
NOTE
1
2
3
4
5
6
7
8
9
10
11
12
Summary of significant accounting policies
Financial risk management
Critical accounting estimates and judgments
Revenue
Expenses
Income tax
Loss per share attributable to the ordinary equity-holders of the Company
Auditors’ remuneration
Cash and Cash Equivalents
Current trade and other receivables
Inventories
Other current assets
13 Non-current assets
14
Current trade and other payables and provisions
1 5 Non-current borrowings
16 Non-current provisions
17
18
Contributed equity
Options
19 Reserves
20
Accumulated losses
21 Non-controlling interests
22
23
Particulars relating to controlled entities
Commitments for expenditure
24 Key management personnel disclosures
25
26
27
28
29
30
31
32
Cash and Cash Equivalents
Related party disclosures
Financial instruments disclosures
Contingent liabilities
Additional company information
Subsequent events
Operating Segments
Information relating to Aeris Environmental Ltd (“The Parent Entity”)
33 Notes to cash flow statements
25
ANNUAL REPORT 2018 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Corporate information
The financial report of Aeris Environmental Ltd
(the Company) for the year ended 30 June 2018 was
authorised for issue in accordance with a resolution
of the Directors on 27 September 2018.
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 $3,230,885
for the year ended 30 June 2018 (2017: $3,752,265)
and has net assets of $81,221 as at 30 June 2018
(2017: $3,111,811). The operating cash burn rate for the
financial year ended 30 June 2018 was $2,538,303 (2017:
$4,058,081). The cash balance as at 30 June 2018 was
$157,643 (2017: $1,519,941). If the cash burn rate for the
financial year ended 30 June 2018 continues during the
year ending 30 June 2019, which it is not budgeted to do,
there may be an uncertainty in relation to the Group's
ability to continue as a going concern.
Certain of the Group's Non-Executive Directors have
pledged to provide financial support to the Group for an
amount of up to $1,500,000. The amount drawn down
from this facility as at 30 June 2018 was $1,200,000 and
$300,000 remains available to the Group.
In July 2018, Aeris received a cash-back of $667,000
from the Australian Taxation Office (ATO) for its research
and development (R&D) activities for the financial year
ended 30 June 2017 and the 2018 R&D ATO cash-back of
approximately $450,000 is expected to be received in the
December 2018 quarter.
Implementation of product marketing measures are
expected to improve the cash burn rate significantly.
The Directors have an expectation that the sum of its
activities will result in a positive cash position during
the next 12 months ending 30 June 2019. The Group is
currently assessing several options available for further
capital resources to underpin its growth requirements.
The Group has been able to demonstrate in previous
years that they have been successful in raising capital
when needed. In June 2015 $5 million was raised, before
the costs of raising. The Directors remain confident that
this can again be done when and if required to support
the Group's continuing activities.
Directors are of the opinion that the Group will be
successful in implementing these initiatives and,
accordingly, have prepared the financial report on a going
concern basis. Notwithstanding this belief, there is a risk
that the Group may not be successful in implementing
these initiatives or the implementation of alternative
options which may be available to the Group. As a result
of these matters, there is a material uncertainty that may
cast significant doubt on the Group’s ability to continue
as a going concern and therefore, that it may be unable
to realise its assets and discharge its liabilities in the
normal course of business.
Statement of Compliance
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.
26
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Any significant impact on the accounting policies of the
consolidated entity from the adoption of these Accounting
Standards and Interpretations are disclosed below.
AASB 9 Financial Instruments
Simplifies the model for classifying and recognising
financial instruments and aligns hedge accounting
more closely with common risk management practises.
Changes in own credit risk in respect of liabilities
designated at fair value through profit or loss shall now
be presented within OCI; this change can be adopted
early without adopting AASB 9.
AASB 9's new impairment model is a move away from
AASB 139's incurred credit loss approach to an expected
credit loss model. Earlier recongnition of impairment is
likely to result and for entities with significant lending
activities, an overhaul of relkated syatems and processes
will be needed.
AASB 15 Revenue from contracts with customers
The AASB has issued a new standard for revenue
recognition. This will replace AASB 118, which covers
contracts for goods and services, and AASB 111, which
covers construction contracts.
The new standard is based on the principle that revenue
is recognised when control of a good or service transfers
to a customer - so the notion of control replaces the
existing notion of risk and rewards.
AASB 16 Leases
AASB 16 will primarily affect the accounting by lessees
and will result in the recognition of almost all leases on
the balance sheet. The standard removes the current
distinction between operating and financing leases and
requires recognition of an asset (the right to use the
leased item) and the financial liability to pay rentals for
almost all lease contracts. The accounting by lessors,
however, will not significantly change.
AASB 2016-5 Classification and measurement of
share-based payment transactions
Amendments were made to AASB 2 Share-based
payment, which clarify how to account for cash-settled
share-based payments with performance conditions,
modifications that change a cash-settled arrangement
to an equity-settled arrangement, and equity-settled
awards that include a 'net settlement' feature which
requires employers to withhold amounts to settle the
employee's tax obligations.
The adoption of the above standards did not have any
material impact on the group.
Significant accounting policies
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.
(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.
(iii) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash
27
ANNUAL REPORT 2018 in banks, investments in money market instruments and
short-term deposits with a maturity of three months or
less, net of outstanding bank overdrafts.
number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary
shares.
(iv) Comparative amounts
Where necessary, comparative amounts have been
changed to reflect changes in disclosures in the
current year.
(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
2-3 years
3 years
2-3 years
5 years
2-3 years
6 years
- Field equipment under finance lease
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
(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.
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
28
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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.
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.
(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.
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
(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
29
ANNUAL REPORT 2018 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.
(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.
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 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.
30
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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.
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).
(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.
(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 2017 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 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.
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.
31
ANNUAL REPORT 2018 (xix) Provisions
Sale of goods and disposal of assets
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.
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:
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,
32
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
the loans or borrowings are classified as non-current.
(xxviii) Fair value measurement
Convertible notes are separated into liability and equity
components based on the terms of the contract.
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 60 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.
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.
33
ANNUAL REPORT 2018
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
(c) Cash flow and fair value interest rate 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.
As the Group has no significant interest-bearing
assets or liabilities, 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 $1,200,000 as at 30 June 2018, which is the loan
from Directors. Interest is charged on this loan at 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.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
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.
34
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
The following critical estimates and judgments have been made in respect of the following items:
(a) Recovery of deferred tax assets
(c) Fair value of financial instruments
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.
(b) 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.
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.
2018
$
2017
$
2,007,944
1,564,323
744,016
1,182,493
2,751,960
2,746,816
13,348
92,790
5,589
42,653
18,937
135,443
4. REVENUE
Revenue
Revenue from sales
Revenue from services
Other Revenue
Interest - other entities
Miscellaneous
35
ANNUAL REPORT 2018 5. EXPENSES
Loss before income tax includes the following items of expense:
Depreciation and amortisation expense
Depreciation of leasehold assets
Depreciation of plant and equipment
Total depreciation and amortisation expense
Employee benefit expenses
Base salary and fees
Superannuation & statutory oncosts
Share based payment expense (Note 25(a) )
Other employee expenses
Total employment expense
Financial expenses
Interest and bank fees
Other Expenses
Impairment of receivables
Rental & occupancy expenses
Research and development and patent expenses
2018
$
2017
$
6,332
6,332
60,858
51,961
67,190
58,294
1,862,284
1,728,921
201,028
349,709
197,464
143,117
11,921
16,459
2,272,698
2,238,206
46,902
37,848
46,902
37,848
108,284
674,624
276,027
248,173
503,876
508,725
36
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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
2018
$
2017
$
(3,898,463)
(4,177,265)
Income tax benefit calculated at 30%
(1,169,539)
(1,253,180)
Temporary differences and tax losses not recognised
442,721
785,245
Non deductible expenses
Share based payments
Income tax benefit attributable to loss
(b) Deferred tax balances not recognised
Calculated at 30% not brought to account as assets:
Deferred tax assets
Tax losses
59,239
42,935
(667,578)
(425,000)
2018
$
2017
$
Revenue tax losses available for offset against future tax income
7,305,778
6,951,832
Temporary differences
Provision for doubtful debts
Provision for employee entitlements
Difference between book and tax values at fixed assets
Accruals
Total deferred tax assets
Net deferred tax asset not recognised
122,594
84,000
89,841
71,563
60,356
48,096
7,200
7,950
279,991
211,609
7,585,769
7,163,441
7,585,769
7,163,441
37
ANNUAL REPORT 2018
(c) Tax consolidation
(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.
(ii) Method of measurement of tax amounts
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 COMPANY
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
2018
$
(2.05)
2017
$
(2.40)
(2.05)
(2.40)
(3,230,023)
(3,747,555)
(3,230,023)
(3,747,555)
157,750,866
156,329,954
-
-
157,750,866
156,329,954
Options and rights eligible for conversion into ordinary shares in future have an anti-dilutive effect, hence diluted EPS is reported same as basic EPS.
8. AUDITORS' REMUNERATION
Remuneration of UHY Haines Norton for:
Audit of the annual financial report
Review of the half yearly financial report
Other services
2018
$
26,000
17,000
4,550
2017
$
25,000
12,500
4,330
Total auditors remuneration
47,550
41,830
38
AERIS ENVIRONMENTAL LTD
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
9. CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents
Cash at bank and on hand
Term Deposits
Deposits on call
The carrying amounts of the Group’s cash are a reasonable approximation of their fair values.
10. CURRENT TRADE AND OTHER RECEIVABLES
A. Current trade and other receivables
Trade receivables
Less provision for doubtful debts
R&D tax offset rebate receivable
2018
$
2017
$
152,070
514,514
-
1,000,000
5,573
5,427
157,643
1,519,941
2018
$
2017
$
1,560,891
1,247,126
(408,647)
(308,555)
667,280
425,000
1,819,524
1,363,571
The carrying amounts of the Group’s current trade and other receivables are a reasonable approximation of
their fair values.
Impairment of receivables
Less than 6 months overdue
More than 6 months overdue
Movements in provision for impairment of receivables
Opening balance
Additional provisions recognised
Foreign exchange difference
Closing balance
Amounts recognised in profit or loss
During the year, the following losses were recognised in profit or loss in relation to impaired receivables.
Impairment losses
)Individually impaired receivables
Movement in provision for impairment
Closing balance
-
-
408,647
308,555
308,555
280,358
100,092
30,000
-
(1,803)
408,647
308,555
(8,192)
(644,624)
(100,092)
(30,000)
(108,284)
(674,624)
39
ANNUAL REPORT 2018 B. Non-current trade and other receivables
Trade receivables
2018
$
2017
$
311,513
434,663
The carrying amounts of non-current trade and other receivables represent amount due from customers for
SmartENERGY® projects completed during 2017 financial year which are receivable over 60 months and accounted
at fair values.
The fair values were calculated based on cash flows discounted using rate appropriate to credit rating of customers.
11. INVENTORIES
Inventories - at cost
2018
$
318,196
318,196
2017
$
256,724
256,724
The carrying amounts of the Group’s inventories are a reasonable approximation of their fair values.
12. OTHER CURRENT ASSETS
Prepayments
Advance payment to suppliers
Accrued income
Deposits and bonds
2018
$
83,933
39,578
4,606
11,817
2017
$
71,144
-
3,829
41,086
139,933
116,059
The carrying amounts of the Group’s other current assets are a reasonable approximation of their fair values.
13. NON-CURRENT ASSETS
Carrying Values
2018
Property, plant and equipment
R & D equipment
Computer equipment
Field equipment
Leasehold improvements
Office furniture
Plant and equipment
Cost
Accumulated depreciation / impairment Net carrying value
$
25,011
208,784
58,747
130,228
175,566
111,585
709,921
$
(25,011)
(179,247)
(58,747)
(110,251)
(123,411)
(97,930)
$
-
29,537
-
19,977
52,155
13,655
(594,597)
115,324
40
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
13. NON-CURRENT ASSETS (CONTINUED)
2017
Property, plant and equipment
R & D equipment
Computer equipment
Field equipment
Leasehold improvements
Office furniture
Plant and equipment
Reconciliations
2018
R & D equipment
Computer equipment
Leasehold improvements
Office furniture
Plant and equipment
2017
R & D equipment
Computer equipment
Cost
Accumulated depreciation / impairment Net carrying value
$
25,011
187,964
58,747
130,228
175,566
106,079
683,595
$
$
(24,824)
187
(151,340)
36,624
(58,747)
-
(103,919)
26,309
(101,237)
74,329
(87,338)
18,741
(527,405)
156,190
Additions
Disposals
Depreciation /
Closing net
Impairment
carrying value
$
-
-
-
-
-
-
-
-
$
(187)
(27,907)
(6,332)
(22,174)
(10,590)
$
-
29,537
19,977
52,155
13,655
(67,190)
115,324
(1,060)
(23,784)
187
36,624
26,309
74,329
18,741
Opening net
carrying value
$
187
$
-
36,624
20,820
26,309
74,329
18,741
-
-
5,504
156,190
26,324
1,247
-
31,680
28,728
Leasehold improvements
32,641
-
-
(6,332)
Office furniture
Plant and equipment
84,961
10,475
752
24,000
-
-
(21,108)
(6,010)
151,281
63,203
-
(58,294)
156,190
41
ANNUAL REPORT 2018 14. CURRENT TRADE AND OTHER PAYABLES AND PROVISIONS
A. Unsecured trade and other payables
Trade creditors
Other payables and accruals
GST and PAYG payable
B. Provisions
Annual leave
Long service leave
2018
$
2017
$
964,562
379,506
281,065
103,816
35,814
13,473
1,281,441
496,795
250,930
199,103
22,771
20,280
273,701
219,383
The carrying amounts of the Group's current trade and other payables and provisions are a reasonable
approximation of their fair values.
15. NON-CURRENT BORROWINGS
Unsecured loans from Directors
2018
$
1,200,000
1,200,000
2017
$
-
-
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 ATO benchmark rates (2018: 5.3% and 2017: 5.4%)
16. NON-CURRENT PROVISIONS
Long service leave
2018
$
25,770
25,770
2017
$
19,159
19,159
The carrying amounts of the Group's non-current provisions are a reasonable approximation of their fair values.
42
AERIS ENVIRONMENTAL LTD
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
17. CONTRIBUTED EQUITY
Share Capital
157,745,387 fully paid ordinary shares - no par value (2017: 157,745,387)
41,208,486
41,207,986
2018
$
2017
$
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Other contributed equity
Consideration for issue of share options
Movement in ordinary share capital of Aeris Environmental Ltd
Balance at beginning of year
Shares issued during year
104,876
104,876
41,313,362
41,312,862
2018
Number of
shares
2018
$
2017
Number of
shares
2017
$
157,745,387
41,207,986
154,428,722
39,995,236
Shares issued to Directors towards repayment of their loan
Shares issued to KMP on exercise of options
-
-
-
2,416,665
1,015,000
-
750,000
196,250
Shares issued to consultants on exercise of options
50,000
500
150,000
1,500
Balance at end of year
157,795,387
41,208,486
157,745,387
41,207,986
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.
43
ANNUAL REPORT 2018
18. OPTIONS
2018
Unlisted
**
*
*
*
*
Grant Date
Expiry Date
Exercise Price
Number on issue
30 June 2017
Granted
during year
Expired or
forfeited
Exercised
during year
Number on issue
30 June 2018
31-Jul-14
31-Jul-19
23-Dec-16
14-Oct-21
23-Dec-16
23-Oct-21
23-Dec-16
01-Aug-20
30-May-18
01-Mar-21
0.20
0.42
0.42
0.01
0.01
500,000
100,000
945,000
300,000
-
-
-
-
-
100,000
-
-
(200,000)
-
-
-
-
-
(50,000)
-
500,000
100,000
745,000
250,000
100,000
Total options on issue
1,845,000
100,000
(200,000)
(50,000)
1,695,000
2017
Unlisted
Grant Date
Expiry Date
Exercise Price
Number on issue
30 June 2016
Granted
during year
Expired or
forfeited
Exercised
during year
Number on issue 30
June 2017
*
*
**
*
*
*
*
17-Nov-11
17-Nov-16
26-Jul-12
23-Feb-17
31-Jul-14
31-Jul-19
08-Jan-15
31-Jul-16
23-Dec-16
14-Oct-21
23-Dec-16
23-Oct-21
23-Dec-16
01-Aug-20
0.17
0.22
0.20
0.31
0.42
0.42
0.42
250,000
20,000
500,000
500,000
-
-
-
-
-
-
-
100,000
945,000
450,000
-
(250,000)
(20,000)
-
-
-
-
-
-
-
(500,000)
-
-
(150,000)
-
-
500,000
-
100,000
945,000
300,000
Total options on issue
1,270,000
1,495,000
(20,000)
(900,000)
1,845,000
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.
44
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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
Nature and purpose of reserve
2018
$
2017
$
(49,547)
(51,878)
1,603,856
1,406,392
1,554,309
1,354,514
(51,878)
(82,566)
2,331
30,688
(49,547)
(51,878)
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.
2018
$
2017
$
Share based payments reserve
Balance at beginning of financial year
1,406,392
1,263,275
Share based payments during the year allocated to:
Employees and consultant
Key Management Personnel
170,612
136,055
26,852
7,062
Balance at end of financial year
1,603,856
1,406,392
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.
45
ANNUAL REPORT 2018
20. ACCUMULATED LOSSES
Balance at beginning of financial year
Net loss for year
2018
$
2017
$
(39,560,112)
(35,812,557)
(3,230,023)
(3,747,555)
Balance at end of financial year
(42,790,135)
(39,560,112)
21. NON-CONTROLLING INTERESTS
Balance at beginning of financial year
Net loss for year
Balance at end of financial year
2018
$
4,547
(862)
2017
$
9,257
(4,710)
3,685
4,547
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
Country of
Ownership
Ownership
incorporation
interest
2018
Australia
Australia
Australia
USA
Singapore
Malta
%
100
100
100
100
75
100
interest
2017
%
100
100
100
100
75
100
46
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
23. COMMITMENTS FOR EXPENDITURE
Lease commitments
Operating leases
Commitments on operating leases that relate to below office facilities:
Thailand operations branch - up to 1 year
Registered office in Sydney - up to 1 year
Branch office in Brisbane - up to 1 year
- 1 to 3 years
- 3 to 5 years
2018
$
2017
$
4,284
3,768
-
53,645
107,076
106,240
214,152
212,480
71,384
172,312
396,896
548,445
24. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) The Directors of Aeris Environmental Ltd during the year were:
Maurie Stang
Bernard Stang
Steven Kritzler
Alex Sava
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
2018
$
2017
$
381,545
348,748
22,817
26,292
26,852
7,062
431,214
382,102
Further, disclosures relating to key management personnel are set out in remuneration report in the
Directors' Report.
47
ANNUAL REPORT 2018
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
Key Management Personnel
Total amount arising from share-based payment transactions
(b) Details of share-based payment plan
2018
$
2017
$
170,612
136,055
26,852
7,062
197,464
143,117
The share-based payment plan is described in the remuneration report in Directors' Report. There have been no
cancellations or modifications to the plan during 2017 and 2018.
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 fair value of performance
rights granted is based on the market price of shares at the date of issue.
Options
Rights
2018
2017
2018
2017
Weighted average remaining contractual life
2.44 years
3.51 years
1.78 years
Range of exercise prices
$0.01 to $0.42
$0.20 to $0.42
-
Following options were issued during the year.
To employees and consultants
To Key Management Personnel
100,000
1,345,000
515,500
-
150,000
1,323,537
100,000
1,495,000
1,839,037
The following table shows the inputs to the valuation of options and rights granted during 2018 financial year.
Value of Underlying Stock
Exercise Price
Dividend Yield
Volatility (per Year)
Risk free rate
Maturity
Pricing Date
Value of Option
Options
0.170
0.010
0.00%
12.90%
2.50%
1/3/2021
30/5/2018
0.1607
-
-
-
-
-
Rights
0.165
0.000
N/A
N/A
N/A
11/4/2021
30/5/2018
0.1650
48
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
26. RELATED PARTY DISCLOSURES
(a) Parent Entity
Aeris Environmental Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 22.
(b) Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report in the
Directors’ Report.
(c) 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.
27. FINANCIAL INSTRUMENTS DISCLOSURES
(a) Capital
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.
(c) Principal financial instruments
The principal financial instruments used by the Group,
from which financial instrument risks arise, are as
follows:
cash at bank;
trade and other receivables;
deposits and bonds; and
trade and other payables.
Borrowings
(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.
49
ANNUAL REPORT 2018 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)
2018
$
2017
$
1,463,758
1,373,235
667,280
425,000
19,709
48,518
1,070
1,000,812
20,973
103,560
3,440
493,888
2,276,350
3,344,893
(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.
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.
50
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
27. FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(ii) Liquidity risk (continued)
Maturity analysis of financial assets and liability based on management's expectations
Cash Flows
< 6 mths
6-12 mths
1-3 years
> 3 years
$
$
$
$
$
157,643
157,643
-
-
-
2,204,739
1,796,823
61,721
246,882
99,313
11,817
-
-
-
11,817
2,374,199
1,954,466
61,721
246,882
111,130
964,562
964,562
-
316,879
316,879
-
-
-
1,295,400
31,800
63,600
1,200,000
2,576,841
1,313,242
63,600
1,200,000
-
-
-
(202,642)
641,224
(1,879)
(953,118)
111,130
1,523,770
1,523,770
-
-
-
1,877,762
1,346,405
61,720
246,882
222,755
41,086
29,300
-
-
11,786
3,442,618
2,899,476
61,720
246,882
234,541
379,506
117,289
-
379,506
117,289
-
-
-
-
496,795
496,795
-
-
-
-
-
-
-
-
-
2,945,823
2,402,679
61,720
246,882
234,541
Maturity analysis – 2018
Financial assets
Cash and cash equivalents
Receivables
Security deposits
TOTAL
Financial liabilities
Trade Creditors
Other payables and accruals
Loans
TOTAL
NET MATURITY
Maturity analysis – 2017
Financial assets
Cash and cash equivalents
Receivables
Security deposits
TOTAL
Financial liabilities
Trade Creditors
Other payables and accruals
Loans
TOTAL
NET MATURITY
51
ANNUAL REPORT 2018
(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
2018
Financial assets
Cash and cash equivalents
Deposits
Receivables
Total Assets
Financial liabilities
Trade and other payables
Borrowings
Total Liabilities
Net financial assets (liabilities)
2017
Financial assets
Cash and cash equivalents
Deposits
Receivables
Total Assets
Financial liabilities
Trade and other payables
Total Liabilities
Net financial assets
9
9
10
14
15
9
9
10
14
1.00%
2.20%
5.50%
0.00%
5.30%
1.00%
2.20%
5.50%
5,573
-
152,070
157,643
-
-
11,817
11,817
-
395,935
1,735,102
2,131,037
5,573
395,935
1,898,989
2,300,497
-
-
1,281,441
1,281,441
-
1,200,000
-
1,200,000
-
1,200,000
1,281,441
2,481,441
5,573
(804,065)
617,548
(180,944)
5,427
-
514,514
519,941
-
1,000,000
41,086
1,041,086
-
612,945
1,185,289
1,798,234
5,427
1,612,945
1,740,889
3,359,261
0.00%
-
-
496,795
496,795
-
-
496,795
496,795
5,427
1,612,945
1,244,094
2,862,466
52
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
27. FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
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.
Sensitivity analysis
2018
Deposits on call
Tax charge of 30%
Post tax profit increase / (decrease)
Sensitivity analysis
2017
Deposits on call
Tax charge of 30%
Post tax profit increase / (decrease)
(b) Currency risk
Carrying amount
+3% interest rate
-3% interest rate
Profit & Loss
Profit & Loss
5,573
5,573
167
167
(50)
117
(167)
(167)
50
(117)
Carrying amount
+3% interest rate
-3% interest rate
Profit & Loss
Profit & Loss
5,427
5,427
163
163
(49)
115
(163)
(163)
49
(115)
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
2018
US$
15,527
18,056
(2,912)
30,671
2017
US$
2,644
11,672
(2,162)
12,154
2018
SGD
2017
SGD
2018
Euro
2017
Euro
9,334
9,684
5,000
5,000
12,500
12,500
-
-
-
-
-
-
21,834
22,184
5,000
5,000
Sensitivity analysis on the foreign currency exposure risk is not disclosed as the foreign currency balances are not
material and the impact of any change in exchange rates would be immaterial.
53
ANNUAL REPORT 2018 (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 (2017:
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 2018 that have significantly affected
or may significantly affect:
(a) the operations, in financial years subsequent to 30 June 2018, of the consolidated entity;
(b) the results of those operations; or
(c) the state of affairs, in the financial years subsequent to 30 June 2018, of the consolidated entity.
31. OPERATING SEGMENTS
Identification of reportable segments
From the 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 and service on account of international operations
54
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
31. OPERATING SEGMENTS (CONTINUED)
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 total revenue) that combined account for 33% of external revenue (2017: Three major customers
combined account for 51%).
During the year ended 30 June 2018 the most significant client accounts for approximately 17% (2017: 21%) of the
consolidated entity's external revenue through Australian Sales operating segment.
Operating segment information of the consolidated entity
Australia
International
Intersegment
eliminations
Consolidated
$
$
$
$
2,719,850
18,937
2,738,787
47,943
-
47,943
(15,833)
2,751,960
-
18,937
(15,833)
2,770,897
1,089,663
5,550,390
6,640,053
17,930
27,406
(15,833)
1,091,760
(196)
5,577,600
45,336
(16,029)
6,669,360
(3,901,266)
2,607
196
(3,898,463)
Australia
International
Intersegment
eliminations
Consolidated
$
$
$
$
2,722,037
135,443
2,857,480
1,038,388
5,993,227
7,031,615
35,827
(11,048)
2,746,816
-
-
135,443
35,827
(11,048)
2,882,259
11,021
50,878
61,899
(11,047)
1,038,362
(22,943)
(33,990)
6,021,162
7,059,524
(4,174,135)
(26,072)
22,942
(4,177,265)
2018
Revenue
Sales
Other Income
Total Revenue
Expenses
Cost of goods sold
Operating expenses
Total Expenses
Loss before tax
2017
Revenue
Sales
Other Income
Total Revenue
Expenses
Cost of goods sold
Operating expenses
Total Expenses
Loss before tax
55
ANNUAL REPORT 2018
Segment assets and liabilities
Australia
International
Total
Intersegment elimination
Consolidated
Assets
2018
$
2017
$
Liabilities
2018
$
2,901,416
3,935,420
4,552,804
84,219
59,002
2,019,977
2017
$
2,551,084
1,926,205
2,985,635
3,994,422
6,572,781
4,477,289
(163,080)
2,822,555
(147,274)
(3,831,447)
(3,741,952)
3,847,148
2,741,334
735,337
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 after tax for the period
Total comprehensive loss for the period
2018
$
2017
$
2,425,961
3,295,751
2,897,838
3,931,642
1,507,476
712,367
2,733,246
731,526
41,313,361
41,312,861
(42,752,624)
(39,519,136)
1,603,855
1,406,391
164,592
3,200,116
(3,233,488)
(3,748,943)
(3,231,157)
(3,718,255)
Contractual Obligations / Commitments (Refer Note 23)
-
-
56
AERIS ENVIRONMENTAL LTD NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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
2018
$
2017
$
152,070
514,514
-
1,000,000
5,573
5,427
157,643
1,519,941
(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 and amortisation
Impairment of trade receivables
Share based payments
Changes in assets and liabilities
(Increase) in receivables
(Increase) in inventory
Decrease in other assets
Increase in trade creditors
Increase/(Decrease) in other creditors and accruals
Increase in employee entitlement expense
2018
$
2017
$
(3,230,885)
(3,752,265)
67,190
58,294
108,284
674,624
197,964
143,117
(441,087)
(1,280,813)
(61,472)
(85,790)
15,704
20,915
545,478
175,055
199,592
(124,721)
60,929
113,503
Net cash used in operating activities
(2,538,303)
(4,058,081)
57
ANNUAL REPORT 2018 A
E
R
I
S
E
N
V
I
R
O
N
M
E
N
T
A
L
L
T
D
58
8
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
59
DIRECTORS' DECLARATION
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 57, are in accordance with the
Corporations Act 2001 and
(i) give a true and fair view of the consolidated entity's financial position as at 30 June 2018 and
its performance for the year ended on that date; and
(ii) comply 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 2018.
On behalf of the Directors
M STANG
Director
Sydney, 28 September 2018
60
AERIS ENVIRONMENTAL LTD
INDEPENDENT AUDITOR'S REPORT
61
ANNUAL REPORT 2018 62
AERIS ENVIRONMENTAL LTD INDEPENDENT AUDITOR'S REPORT
63
ANNUAL REPORT 2018 64
AERIS ENVIRONMENTAL LTD INDEPENDENT AUDITOR'S REPORT
65
ANNUAL REPORT 2018 66
AERIS ENVIRONMENTAL LTD INDEPENDENT AUDITOR'S REPORT
11 to 18
67
ANNUAL REPORT 2018 A
E
R
I
S
E
N
V
I
R
O
N
M
E
N
T
A
L
L
T
D
68
AUSTRALIAN SECURITIES EXCHANGE (ASX)
ADDITIONAL INFORMATION
Additional information required by 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 21 September 2018:
Spread of Holdings
Number of Holders
Ordinary Shares
% of Total Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – 500,000
500,001 – 1,000,000
1,000,001 and over
Total
45
127
110
283
92
21
28
706
23,338
373,068
942,367
10,984,884
21,179,853
14,583,973
109,857,904
157,945,387
0.01
0.24
0.60
6.95
13.41
9.23
69.56
100.00
Based on the market price at 21 September 2018 there were 111 shareholders with less than a marketable parcel of
$500 worth of shares at a share price of $0.17. There are no restricted securities on issue.
69
ANNUAL REPORT 2018 Statement of Shareholdings as at 21 September 2018
The names of the 20 largest holders of fully paid ordinary shares are listed below:
Rank
Shareholder
Number of Shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Maurie Stang
Bernard Stang
Link Traders (Aust) Pty Ltd
J P Morgan Nominees Australia Limited
Steven Kritzler
Pulitano Family Superannuation Pty Ltd
HSBC Custody Nominees (Australia) Limited – A/C 2
Meditsuper Pty Ltd
HSBC Custody Nominees (Australia) Limited
Henderson International Pty Ltd
Australian Shareholder Nominees Pty Ltd
Wakil Family Group Pty Ltd
Radley Investment Co Pty Ltd
Hillridge Pty Ltd
Jamber Investments Pty Ltd
Helensleigh Pty Ltd
Joshua Aaron Ehrlich
Citicorp Nominees Pty Limited
Paul Ehrlich + Lauren Ehrlich
Bennelong Resources Pty Limited
Total of Top 20 Holdings
Other Holdings
Total Ordinary Shares
17,779,749
14,863,673
14,635,539
9,283,103
8,331,609
5,564,447
5,243,500
4,184,046
2,989,879
2,822,714
2,426,993
2,319,400
2,225,210
2,063,650
1,782,988
1,747,917
1,700,000
1,614,478
1,525,000
1,463,636
104,567,531
53,377,856
157,945,387
% Holding
11.26
9.41
9.27
5.88
5.27
3.52
3.32
2.65
1.89
1.79
1.54
1.47
1.41
1.31
1.13
1.11
1.08
1.02
0.97
0.93
66.23
33.77
100.00
70
AERIS ENVIRONMENTAL LTD AUSTRALIAN SECURITIES EXCHANGE (ASX)
ADDITIONAL INFORMATION (CONTINUED)
UNQUOTED EQUITY SECURITIES
For details of the unissued ordinary shares the Company has under option, refer below and to the “Share Options”
section at the end of the Directors’ Report.
Number
Class – Options
Number of Holders
500,000
100,000
725,000
220,000
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
Options held by Director Alex Sava, which expire on 14 October 2021 and have an exercise price of 42 cents, issued
under the Company’s Employee Incentive Plan (EIP)
Options held by ten staff members, which expire on 23 October 2021 and have an exercise price of 42 cents, issued
under the EIP
Options held by five key consultants, which expire on 23 October 2021 and have an exercise price of 42 cents, which
includes 100,000 options held by Ian Braby, and 50,000 options held by each of Robert Waring and Ian Ernst.
100,000
Options held by consultant Carl Henin, which expire on 1 August 2020 and have an exercise price of 1 cent.
100,000
Options held by consultant Carl Henin, which expire on 1 March 2021 and have an exercise price of 1 cent.
1,745,000
Total Options on Issue
2
1
10
5
1
1
20
Number
Class – Performance Rights
Number of Holders
1,839,037
Performance Rights held by Aeris’ CEO Peter Bush (1,323,537 or 72%), 12 staff members and four consultants,
which expire on 11 April 2022 with no exercise price, with one third vesting each year for three years commencing
on 11 April 2019.
1,839,037
Total Performance Rights on Issue
17
17
VOTING RIGHTS
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 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
Maurie Stang
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›
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.
71
ANNUAL REPORT 2018 CORPORATE DIRECTORY
AERIS ENVIRONMENTAL LTD
ACN:
ABN:
093 977 336
19 093 977 336
DIRECTORS
Maurie Stang Non-Executive Chairman
Steven Kritzler Non-Executive Director
Bernard Stang Non-Executive Director
Alex Sava
Non-Executive Director
CHIEF EXECUTIVE OFFICER
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:
+61 3 9415 4000
1300 850 505 (within Australia)
+61 3 9473 2500
www.computershare.com
www.investorcentre.com
AUDITOR
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
A
E
R
I
S
E
N
V
I
R
O
N
M
E
N
T
A
L
L
T
D
72
AERIS ENVIRONMENTAL LTD
ACN 093977336