Analytica Limited
Financial Statements
For the Year Ended 30 June 2012
Analytica Limited
Contents
30 June 2012
Financial Statements
Corporate Governance Statement
Directors' Report
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Audit Report
Additional Information for Listed Public Companies
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Analytica Limited
Corporate Governance Statement
30 June 2012
The Board is committed to achieving and demonstrating the highest standards of corporate governance. The Board
continues to refine and improve the governance framework and practices in place to ensure they meet the interests of
shareholders. The Company complies with the Australian Securities Exchange Corporate Governance Council’s Corporate
Governance Principles and Recommendations 2nd Edition (the Principles).
Copies of Analytica Limited's board and board committee charters and key corporate governance policies or summaries are
available in the Corporate Governance section of the website at www.analyticamedical.com.
Principle 1: Lay solid foundations for management and oversight
Role of the Board and Management
The Board of Directors is responsible for the corporate governance of the Company. The Board provides strategic
guidance for the Company, and effective oversight of management. The Board guides and monitors the business and
affairs of Analytica Limited on behalf of the shareholders by whom they are elected and to whom they are accountable.
Your Board has adopted a Charter that details its roles and responsibilities, which is available on our website.
Your Board has delegated responsibility for day-to-day management of the Company to the CEO and there is a formal
delegations structure in place which sets out the powers delegated to the CEO and those specifically retained by the Board,
these delegations are reviewed on a regular basis.
Responsibilities of the Board
The Board is responsible for:
Overseeing the company, including its control and accountability systems;
Appointing and removing the CEO;
Where appropriate, ratifying the appointment and removal of senior executives;
Providing input into and final approval of management’s development of corporate strategy and performance
objectives;
Reviewing, ratifying and monitoring systems of risk management and internal controls, codes of conduct and
legal compliance;
Monitoring senior executives performance and implementation of strategy;
Ensuring appropriate resources are available to senior executives;
Approving and monitoring the progress of major capital expenditure, capital management and acquisitions and
divestures; and
Approving and monitoring financial and other reporting.
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Analytica Limited
Corporate Governance Statement
30 June 2012
Principle 2: Structure the Board to add Value
The Board’s policy is that the Board needs to have an appropriate mix of skills, experience, expertise and diversity to be well
equipped to help the Company navigate the range of challenges faced by the company.
The names of the members of the Board as at the date of this report are set out below:
Dr M. Monsour
Mr R. Mangelsdorf
Mr W. Brooks
Details of the Board member’s experience, expertise, qualifications, term of office and independence status, are set out in
the directors' report.
Composition of the Board
The Board’s composition is determined based on criteria set out in the Company’s constitution and the Board Charter.
The Board seeks to ensure that:
At any point in time, its membership represents an appropriate balance between directors with experience and
knowledge of the Group and directors with an external or fresh perspective;
There is a sufficient number of directors to serve on Board committees without overburdening the directors or
making it difficult for them to fully discharge their responsibilities; and
The size of the Board is appropriate to facilitate effective discussion and efficient decision making.
In accordance with the ASX Listing Rules, the Company must hold an election of Directors each year.
Board committees
To ensure that the responsibilities of the Board are upheld and executed to the highest level, the Board has established the
following Board committees:
Audit Committee
Remuneration Committee
Each of these committees has established charters and operating procedures in place, which are reviewed on a regular
basis. The Board may establish other committees from time to time to deal with matters of special
importance. The
Committees have access to the Company’s executives and senior management as well as independent advice. Copies of
the minutes of each Committee meeting are made available to the full Board, and the Chairman of each Committee provides
an update on the outcomes at the Board meeting that immediately follows the Committee meeting.
Independent decision making
The Board recognises the important contribution independent Directors make to good corporate governance. All Directors,
whether independent or not, are required to act in the best interests of the Company and to exercise unfettered and
independent judgment.
The Board has adopted specific principles in relation to directors’
annually, when determining if a Director is independent:
independence and considers the following, at least
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Analytica Limited
Corporate Governance Statement
30 June 2012
Whether the Director:
Is a substantial shareholder of the company or an officer of, or otherwise associated directly with, a substantial
shareholder of the company.
Is employed, or has previously been employed in an executive capacity by the company or another group
member, and there has not been a period of at least three years between ceasing such employment and serving
on the Board.
Has within the last three years been a principal of a material professional adviser or a material consultant to the
company or another group member, or an employee materially associated with the service provided.
Is a material supplier or customer of the company or other group member, or an officer of or otherwise
associated directly or indirectly with a material supplier or customer.
Has a material contractual relationship with the company or another group member other than as a director.
Role of the Chair
The Chair of the Board is responsible for leadership of the Board and for the efficient organisation and conduct of the
Board’s functioning.
The Chair facilitates the effective contribution of all directors and promote constructive and respectful relations between
directors and between Board and management.
Access to information
The Board is provided with the information it needs to discharge its responsibilities effectively and all Directors have
complete access to senior management through the Chairman, CEO or Company Secretary at any time.
In certain circumstances, each Director has the right to seek independent professional advice at the Company’s expense,
within specified limits, or with the prior approval of the Chairman.
Principle 3: Promote ethical and responsible decision-making
Code of conduct
The Board acknowledges and emphasises the importance of all directors and employees maintaining the highest standards
of corporate governance practice and ethical conduct.
A code of conduct has been established requiring directors and employees to:
Act honestly and in good faith;
Exercise due care and diligence in fulfilling the functions of office;
Avoid conflicts and make full disclosure of any possible conflicts of interest;
Comply with the law;
Encourage the reporting and investigating of unlawful and unethical behaviour; and
Comply with the share trading policy outlined in the Code of Conduct.
A copy of the Code of Conduct is available from the company’s website.
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Analytica Limited
Corporate Governance Statement
30 June 2012
Diversity policy
In respect of diversity, the Board considers that diversity includes differences that relate to gender, age, ethnicity and cultural
background.
It also includes differences in background and life experience, communication styles, interpersonal skills,
education and problem solving skills.
The Company seeks to develop a culture of diversity within the Company whereby a mix of skills and diverse backgrounds
are employed by the Company at all levels.
The Company strives to:
1.
2.
3.
4.
develop and maintain a diverse and skilled workforce through transparent recruitment processes.
promote an inclusive workplace culture that values and utilises the contributions of all employees
backgrounds, experiences and perspective though improved awareness of the benefits of workforce diversity.
facilitate diversity in the workplace by developing programs that promote growth for all employees, so each
employee may reach their full potential, and providing maximum benefit for the Company.
set measurable objectives to encourage diversity within the Company.
Analytica Limited considers the key management personnel, excluding Directors,
company.
to be the senior executives of
the
Principle 4: Safeguard integrity in financial reporting
Audit Committee
The audit committee assists the Board in fulfilling its corporate governance responsibilities in regard to:
the integrity of the financial reporting
compliance with legal and regulatory obligations
the effectiveness of the company’s risk management and internal control framework
oversight of the independence of the external auditors
The names and qualifications of those appointed to the audit committee and their attendance at meetings of the committee
are included in the directors' report.
The audit committee reports to the full Board after every meeting on all matters relevant to the committee’s roles and
responsibilities.
External auditor
The Audit Committee oversees the relationship with the external auditor.
lead Audit Partner on the audit is required to rotate at the completion of a 5 year term.
In accordance with the Corporations Act 2001, the
The external auditor attends the AGM and is available to answer your shareholder questions about the conduct of the audit
and the preparation and content of the auditor’s report.
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Analytica Limited
Corporate Governance Statement
30 June 2012
Principle 5: Make timely and balanced disclosure
Analytica Limited has established policies and procedures to ensure timely and balanced disclosures of all material matters
concerning the Company, and to ensure that all
investors have access to information on the Company’s financial
performance.
These policies and procedures include a comprehensive disclosure policy that includes identification of matters that may
have a material effect on the price on the Company’s securities, notifying them to the ASX, posting relevant information on
the Company’s website and issuing media releases.
The Annual Report including relevant information about the operations of the company the year, key financial information,
changes in the state of affairs and indications of future developments. The Annual Reports for the current year and for
previous years are available under the Investor Relations section of the company website.
The half year and full year financial results are announced to the ASX and are available to shareholders via the company
and ASX websites.
All announcements made to the market, and related information (including presentations to investors and information
provided to analysts or the media during briefings) are made available to all shareholders under the investor relations section
of the company website after they are released to the ASX.
All ASX announcements, media releases and financial
public release.
information are available on Company website within one day of
Principle 6: Respect the rights of shareholders
The Company Secretary has been nominated as the person responsible for communications with the Australian Securities
Exchange (ASX).
All Executive Management have an ongoing obligation to advise the Company Secretary of any material non-public
information which may need to be communicated to the market.
The Company has a Shareholder Communications Policy which promotes effective communication with shareholders and
encourages participation at general meetings.
The company makes all ASX announcements available via its website.
email notification of announcements.
In addition, shareholders who are registered receive
The Notice of Annual General Meeting (AGM) will be provided to all shareholders and posted on the company’s website.
Notices for general meetings and other communications with shareholders are drafted to ensure that they are honest,
accurate and not misleading and that the nature of the business of the meeting is clearly stated and explained where
necessary.
The Board encourages full participation by shareholders at the Annual General Meeting to ensure a high level of Director
accountability to shareholders and shareholder identification with the Company’s strategy and goals.
For shareholders unable to attend, an AGM question form will accompany the Notice of Meeting, giving shareholders the
opportunity to forward questions and comments to the company or the external auditor prior to the AGM.
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Analytica Limited
Corporate Governance Statement
30 June 2012
Principle 7: Recognise and manage risk
The Board considers identification and management of key risks associated with the business as vital
to maximise
shareholder wealth. A yearly assessment of the business's risk profile is undertaken and reviewed by the Board, covering all
aspects of the business from the operational level through to strategic level risks.
The CEO has been delegated the task of implementing internal controls to identify and manage risks for which the Board
provides oversight. The effectiveness of
these controls is monitored and reviewed regularly. The recent economic
environment has emphasised the importance of managing and reassessing its key business risks.
The Board is responsible for reviewing the company’s policies on risk oversight and management and satisfying itself that
management has developed and implemented a sound system of risk management and internal control.
The Board requires management to design and implement the risk management and internal control system to manage the
company's material business risks and report to it on whether those risks are being managed effectively.
The Board has received a report from management as to the effectiveness of the company's management of its material
business risks.
A summary of the Company’s risk related policies can be found with other corporate governance policies under the
Corporate Governance section of the company’s website.
Internal control
The Board is responsible for reviewing the company’s policies on risk oversight and management and satisfying itself that
management has developed and implemented a sound system of risk management and internal control.
The Board has received assurance from the Chief Executive Officer and the Chief Financial Officer that the declaration
provided in accordance with section 295A of the Corporations Act is founded on a system of risk management and internal
control and that the system is operating effectively in all material respects in relation to financial reporting risks.
Principle 8: Remunerate fairly and responsibly
The company’s remuneration policy is designed in such as way that it:
motivates senior executives to pursue the long-term growth and success of the company
demonstrates a clear relationship between senior executives’ performance and remuneration.
The remuneration policy, which sets the terms and conditions for the key management personnel (KMP) was developed by
the remuneration committee after seeking professional advice from independent consultants and was approved by the
Board.
All executives receive a base salary, superannuation, fringe benefits, performance incentives and retirement benefits. The
remuneration committee reviews executive packages annually by reference to company performance, executive
performance, comparable information from industry sectors and other listed corporations and independent advice. The
performance of executives is measured against criteria agreed half yearly which are based on the forecast growth of the
company’s profits and shareholder value. The policy is designed to attract the highest calibre executives and reward them
for performance which results in long-term growth in shareholder value.
The Board expects that the remuneration structure implemented will result in the company being able to attract and retain
It will also provide executives with the necessary incentives to work to grow long-term growth in
the best executives.
shareholder value.
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Analytica Limited
Corporate Governance Statement
30 June 2012
The payment of bonuses, options and other incentive payments are reviewed by the remuneration committee annually as
part of the review of executive remuneration and a recommendation is put to the Board for approval. All bonuses, options
and incentives must be linked to predetermined performance criteria. The Board can exercise its discretion in relation to
approving incentives, bonuses and options and can recommend changes to the committee’s recommendations. Any
changes must be justified by reference to measurable performance criteria.
Further information about the company’s remuneration strategy and policies and their relationship to company performance
can be found in the Remuneration Report which forms part of the directors' report, together with details of the remuneration
paid to key management personnel.
Remuneration committee
The responsibilities of the remuneration committee include a review of and recommendation to the Board on:
the company’s remuneration,
executives
recruitment,
retention and termination policies and procedures for senior
senior executives’ remuneration and incentives
superannuation arrangements
the remuneration framework for directors
remuneration by gender.
Each member of the remuneration committee:
is familiar with the legal and regulatory disclosure requirements in relation to remuneration
has adequate knowledge of executive remuneration issues, including executive remuneration issues, including
executive retention and termination policies and short term and long term incentive arrangements.
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
Your directors present their report on Analytica Limited for the year ended 30 June 2012.
1. General information
Information on directors
The names,qualifications, experience and special responsibilities of each person who has been a director during the
year and to the date of this report are:
Dr Michael Monsour
Qualifications
Chairman (appointed 28 June 2004)
MBBS-HONS, FACRRM, FAICD
Experience
Dr Michael Monsour is a Medical Practitioner with extensive interests
in Queensland medical and dental centres. Michael Monsour
graduated from the University of Queensland in 1977 in medicine with
honours. He operates a medical management company, which
provides management support to medical and dental practitioners. He
is the principal of Godbar Software (established 1988) which is one of
the leading software developers of Occupational Health, Safety and
Medical Accounting software packages in Australia.
Interest in shares and options Direct:
Directors’ interest in ordinary shares: 740,088
Directors’ interest in share options - ALTO: 185,022
Directors’ interest in share options - ALTOA: 185,022
Indirect:
MPAMM Pty Ltd:
31,144,799 Ordinary Shares
25,743,827 ALTO Options
25,743,827 ALTOA Options
MP Monsour Medical Practice Pty Ltd
10,255,720 Ordinary Shares
2,563,930 ALTO Options
2,563,930 ALTOA Options
Special responsibilities
Other directorships in listed
entities held in the previous
three years
Dr Michael Monsour is a member of the Audit and Risk Management
Committee and the Remuneration Committee.
Dr Monsour was formerly a director of the listed entity CBio Limited
(January 2007 to November 2011).
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
1. General information continued
Information on directors continued
Mr. Ross Mangelsdorf
Qualifications
Experience
Executive Director (appointed 7 October 2008)
B.Bus, FCA, FTIA, MAICD
Mr Mangelsdorf
is a Director of a Queensland based land
development Company and has been a Director/partner of a
chartered accounting firm for 30 years.
He works with SME
production, manufacturing and retail firms assisting with business,
taxation and management services.
Interest in shares and options Direct: Ross Mangelsdorf
Director's interest in ordinary shares: 13,333
Director's interest in share options - ALTO: 3,333
Director's interest in share options - ALTOA: 3,333
Indirect:
RM & JM Mangelsdorf:
13,333 ordinary shares
3,333 ALTO options
3,333 ALTOA options
Tambien Pty Ltd:
11,168,994 ordinary shares
6,570,627 ALTO options
6,570,627 ALTOA options
Manowe Pty Ltd:
4,180,585 ordinary shares
4,180,585 ALTO options
4,180,585 ALTOA options
Special responsibilities
Mr Mangelsdorf performs the function of Chief Financial Officer of the
Company and is a member of the Audit and Risk Committee, and
Remuneration Committee.
Mr. Warren Brooks
Qualifications
Experience
Non Executive Director (appointed 25 July 2011)
Securities Institute Certificate, Diploma in Financial Planning
Warren previously had 28 years experience working in Investment
Banking and Stockbroking.
Interest in shares and options Director's interest in ordinary shares: 39,206,989
Director's interest in options - ALTO:
16,983,505
Director's interest in options - ALTOA: 16,983,505
Special responsibilities
Mr Brooks is a member of
Remuneration Committee.
the Audit and Risk Committee and
Other directorships in listed
entities held in the previous
three years
Mr Brooks was the Managing Director and Founder of boutique
Financial Advisory firm Clime AFM Pty Ltd which was a wholly owned
subsidiary of Clime Investment Management Ltd, an ASX listed
Company.
Warren founded Australian Financial Management (Investment) Pty
Ltd in 1998 and sold the business to Clime Investment Management
Ltd in 2006.
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
1. General information continued
Information on directors continued
Mr. David Gooch
Qualifications
Experience
Non-Executive Director
(resigned 25 July 2011)
FAICD
Mr Gooch is a well known Sydney businessman who has developed
and been instrumental in the steering to success of several small an
medium sized businesses's. Mr Gooch was a corporate advisor and
financial management specialist who has had experience in industries
including construction, hospitality, retail and finance.
Interest in shares and options Director's interest in ordinary shares: Nil
Director's interest in share options: Nil
Principal activities and significant changes in nature of activities
The principal activities of Analytica Limited during the year were:
The development of intellectual property in the medical device field in relation to patents in the burette field;
The development of strategies for commercial sales of burette product;
The development of intellectual property of medical device in relation to patents and systems in the pelvic floor
exercise field;
Development of intellectual property of manufacture and delivery of Naltrexone implants.
There were no significant changes in the nature of Analytica Limited's principal activities during the year.
2. Operating results and review of operations for the year
Operating results
The loss of the company amounted to $ (2,222,009), after providing for income tax. This represented a 90% decrease
on the results reported for the year ended 30 June 2011 of $(203,176). The significant loss was largely due to the fair
value adjustment in CBio Limited of $595,485 and the increase in fair value adjustment in CBio Limited in 2011 of
$381,320 a net movement of $976,806. The increase in depreciation was due to the write off of intellectual property of
$90,000. Administration costs increase was largely due to the costs of the share, rights and option issues. Research
and development
the Perineometer device branded
"PeriCoach".
increase was largely due to the product development of
Review of operations
A review of the operations of the company during the financial year and the results of those operations are discussed as
follows.
ELF2
Analytica has signed a licensing agreement with Melbourne-based medical device developer Gorman ProMed Ltd for
the company's Electrical Low Frequency (ELF-001) stimulator product IP. The ELF device delivers a low-frequency
voltage used by neurologists to locate nerve endings during Botulinum neurotoxin A injection treatment for muscular
spasticity. Gorman ProMed has successfully sold units to neurologists in Australia, New Zealand and Thailand.
These units have been received favourably by clinicians, featuring in a number of published clinical papers.
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
2. Operating results and review of operations for the year continued
Review of operations continued
Analytica's ELF2 device builds on this foundation with additional electromyographic (EMG) functionality, and a number
of
the clinician during treatment. Analytica is currently investigating patent
protection of these innovations.
innovative enhancements to assist
A pre-project market assessment has recently been completed and Analytica is currently finalising the product
specification pending the results of patent investigations.
PeriCoach®
Our engineering team are making substantial progress with the development of the perineometer product. The
PeriCoach® device assists women with their pelvic floor exercises which have been shown to mitigate female stress
urinary incontinence in later life. Development has progressed with working prototypes and the recent completion of
representative samples for clinician assessment. Electronic hardware and firmware for the device is very well
progressed, and work continues based on clinician feedback on the physical usability of the design and the graphical
user interface. Early feedback from professionals in the industry has already demonstrated that this new device will
offer a never before seen advantage in diagnosing and treating patients, and there is great anticipation for further
development of the project. Market research has confirmed there is a substantial market which is currently unsatisfied.
AutoStart® Burette
The Analytica AutoStart® Burette is a sterile, single use infusion device that provides automatic flow control functionality
not found in any other burette. The patented AutoStart® system automatically restarts the flow from the infusion
reservoir once a medication bolus is delivered, allowing the clinician to attend to other issues. The method of operation
of the device reduces nurse time, improves patient treatment, as well as permitting advanced features of infusion
pumps to be fully utilised.
Analytica Limited and licensee Medical Australia Limited announced in July 2011 that Concord Repatriation Hospital in
Sydney has placed an order with forecast sales revenue upward of $500,000 per annum. Concord is a teaching
hospital of Sydney Medical School at the University of Sydney, and offers a comprehensive range of specialty and sub
specialty services, many recognized nationally and internationally as centres of excellence. This order, a result of an
extensive 6 month clinical evaluation of the safety and time saving features of the AutoStart® Burette, has resulted in
their most substantial change in IV practices in 16 years. Supply problems have hampered the roll out of this contract.
These supply problems were overcome late in the 2011/2012 FY.
It is estimated that the AutoStart® Burette frees 20 up to minutes of nurse time per medication event, which means the
device more than pays for itself in nurse time savings. In today's under staffed hospitals, time savings are critical to
nurses, patients, and administrators alike.
Medical Australia has incorporated Analytica's AutoFlush feature into their range of TUTA® burettes, under the
trademark MediFlush. Standard burettes with this functionality were released to the market in the fourth quarter
2011/2012 FY. The flushing system allows the needle less injection port and the medication delivery syringe to be
flushed with saline from the IV bag, without the need for additional flushing syringes or ampoules, delivering substantial
cost savings and safety. This feature addresses infection control issues associated with conventional burettes. These
issues have previously required hospitals to use a higher cost, alternative solution.
Medical Australia continues to pursue opportunities in Queensland and New South Wales with trials and evaluations
underway. Medical Australia are also active in Europe.
Analytica is currently developing market opportunities in the US. Analytica commissioned a production line at an OEM
Manufacturer outside Shenzhen, for the purpose of supplying the US market. The commissioned design contains both
the AutoStart® and the AutoFlush features, and includes production cost advantages over prior design iterations.
Analytica is also currently investigating sales in PNG and South America.
Analytica recently filed for a provisional Australian patent for the AutoStart burette, and intends to publish in multiple
jurisdictions in coming years under the Patent Cooperation Treaty (PCT). The innovation sets the correct vent and
clamp controls for the AutoStart, AutoFlush, and standard burette functions in a single, simple controller. The invention
dramatically simplifies use of the device, which has been one of the main customer concerns. The invention also
reduces part count and can be implemented on standard burettes as well.
Because of the potentially game-changing nature of this invention Analytica's priority is to implement this innovation as
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
2. Operating results and review of operations for the year continued
Review of operations continued
soon as possible. Development of the invention concept into a fully-engineered, validated production feature may take
9-12 months.
3.
Financial review
Financial position
The net assets of Analytica Limited have increased by $ 838,529 from 30 June 2011 to $ 1,378,539 at 30 June 2012.
This increase is largely due to the following factors:
proceeds from share issues raising $2,979,905
reduction of borrowings
accelerating research and development expenditure.
Analytica Limited held several successful rights issues for the year, resulting in an additional 148,781,612 ordinary
shares issued at a value of $2,979,905, to the 30 June 2012.
The capital raising has enabled the company to reduce its 2011 borrowings to nil.
The directors believe the company is in a strong and stable financial position to expand and grow its current operations.
4. Other items
Significant changes in state of affairs
The following significant changes in the state of affairs of the company occurred during the year:
i) On 6 July 2011, the company announced that a major clinical trial using Analytica's AutoStart Burette has been
successfully completed in Sydney, Australia with Concord Repatriation and General Hospital.
ii) Analytica Limited announced on 1 November 2011 that Analytica Limited has been granted an exclusive option to
receive the assignment of intellectual property relating to the pelvic floor exercise system. The option will expire on
25 October 2014.
The option was exercised by the Company, and the Company will pay part of
assignment of the Patent by issuing two tranches of ordinary fully paid shares as follows:
the consideration for the
o
o
The first tranche of shares was issued valued at $40,000. The number of shares issued calculated by
reference to a 5 day volume weighted average price of the Company’s ordinary shares up to and including
the date of exercise of the option (5 Day VWAP).
The second tranche of shares is subject to a revenue target of $1 million (net of direct cost of sales) being
achieved within three years and six months of the date of exercise of the option. If the revenue target is
reached, the Company will issue shares to the value of $80,000 and the number of shares issued will be
calculated by reference to the 5 Day VWAP.
iii) On 18 October 2011, the company issued 3,000,000 ordinary shares at $0.02 per share.
This issue was for payment of corporate advisery to the share issue of $60,000.
iv) On 1 December 2011 the company issued 1,250,000 ordinary shares at $0.02 per share.
This issue was for payment of market research services of $25,000.
v) On 6 December 2011 the company issued 1,786,352 ordinary shares at $0.022392 per share.
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
4. Other items continued
Significant changes in state of affairs continued
This issue was for payment of the exercise of the option for intellectual property relating to the pelvic floor exercise
system.
vi) On 16 December 2011 the company rights issue, resulted in the issue of 94,905,143 ordinary shares at $0.02 per
share on the basis of 1 share for every 3 shares held. With 94,905,143 options expired 6 September 2012
exercisable at $0.04 (lapsed); and 94,905,143 options expiring 6 June 2013 exercisable at $0.08.
vii) On 22 December 2011 the company issued 4,745,260 ordinary shares at $0.02 per share.
This issue was for payment of corporate advisory to the share issue of $94,905.40.
viii) On 9 March 2012 the company issued 43,094,857 ordinary shares at $0.02 per share. With 43,094,857 options
expiring 6 September 2012 exercisable at $0.04; 43,094,857 options expiring 6 June 2013 exercisable at $0.08.
This issue is for capital subscribed by the underwriters to the rights share issue.
ix) 33,000,000 $0.05 Options granted to directors in 2008 expired on the 30 June 2012 were not exercised.
Dividends paid or recommended
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends
has been made.
Events after the end of the reporting period
On 3 July 2012 Analytica Limited (ASX:ALT) and Medical Australia Limited (ASX:MLA) announced that sales of
Tuta-branded burettes equipped with Analytica's patented flush system have commenced in the Australian market.
The system is being marketed by Medical Australia under the trademark MediFlush.
On 18 July 2012 Analytica (ASX:ALT) announced a successful pilot production run of the Version 2 AutoStart Burette
in China. The production was performed by our OEM manufacturing partner near Shenzhen, and is intended for the
US market.
The pilot production run produced a small number of units intended for validation testing and marketing purposes. This
production also provided an opportunity for our manufacturing partner to be audited as a burette manufacturer.
Analytica is currently directing sterilisation validation, accelerated aging and product shelf life validation, and ISO 10993
biocompatibility testing. The testing and auditing are being performed by independent third parties and the first full
production run will be done in parallel with these tests. Analytica will release the product for trials in the US Market
once all validation activities are completed.
Analytica is currently in discussions with major distributors and licensees in the US.
The 138,000,000 ALTO $0.04 share options expired on 6 September 2012.
Except for the above, no other matters or circumstances have arisen since the end of the year which significantly
affected or could significantly affect the operations of the company, the results of those operations or the state of affairs
of the company in future financial years.
Future developments and results
The Directors and management are focused on building the current business through the development and
commercialisation of similar businesses and technologies in the medical technology area that can take advantage of
our expertise and resources to optimise returns to shareholders.
The likely developments in the operations of the consolidated group and the expected results of those operations in
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Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
4. Other items continued
Future developments and results continued
future financial years are as follows:
•
•
•
•
•
•
•
•
•
Introduction to the market by Medical Australia of their range of Burettes fitted with our Autoflush device;
Appointment of specialist medical device distributors to distribute Analytica’s range of products in the USA;
Development of pelvic floor exercise device, interface and reporting and monitoring systems.
Development of marketing and sales support systems for the pelvic floor exercise system.
Development and implementation of the business plan supporting Naltrexone implants and delivery;
Successful manufacture of Naltrexone implants suitable for clinical trials;
Clinical trials using Naltrexone implants to treat alcohol and drug addicted patients;
Application for North American (FDA) and European (CE Mark) regulatory approval;
Continued development of ‘next generation’ products.
Environmental issues
The company's operations are not regulated by any significant environmental regulations under a law of
Commonwealth or of a state or territory of Australia.
the
Company secretary
The following person held the position of company secretary at the end of the year:
Tom Rowe (BA LLB (Hons)) has been the company secretary since 23 December 2011.
Tom Rowe is a Corporate and Commercial Lawyer with a specialty in listed company secretarial practice. Mr Rowe
holds a BA LLB (Hons) from the University of Adelaide and is an Associate of the Chartered Institute of Secretaries. He
is the current Principal of Company Matters, a specialist provider of legal, governance and company secretarial
services. Previously, he held the position of Legal Counsel and Company Secretary at CSR Ltd.
Meetings of directors
During the year, 9 meetings of directors (including committees of directors) were held. Attendances by each director
during the year were as follows:
Directors'
Meetings
Audit Committee
Remuneration
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Dr Michael Monsour
Mr. Ross Mangelsdorf
Mr. Warren Brooks
Mr. David Gooch
9
9
7
2
8
9
7
2
2
2
-
-
2
2
-
-
2
2
2
-
2
2
2
-
14
Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
Non-audit services continued
Indemnification and insurance of officers and auditors
No indemnities have been given or insurance premiums paid, during or since the end of the year, for any person who is
or has been an officer or auditor of Analytica Limited.
Options
At the date of this report, the unissued ordinary shares of Analytica Limited under option are as follows:
Grant Date
16 December 2011
9 March 2012
Date of Expiry
Exercise Price
Number under Option
6 June 2013
6 June 2013
$0.08
$0.08
94,905,143
43,094,857
138,000,000
Option holders do not have any rights to participate in any issues of shares or other interests in the company.
For details of options issued to directors and other key management personnel as remuneration, refer to the
remuneration report.
Options exercised during the year
During the year ended 30 June 2012, the following ordinary shares of Analytica Limited were issued on the exercise of
options granted.
Proceedings on behalf of company
No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings
to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of
those proceedings.
The company was not a party to any such proceedings during the year.
Non-audit services
The Board of Directors, in accordance with advice from the audit committee, is satisfied that the provision of non-audit
independence for auditors imposed by the
services during the year is compatible with the general standard of
Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external
auditor's independence for the following reasons:
all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they
do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and
Ethical Standards Board.
15
Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
4. Other items continued
Nonaudit services continued
The following fees were paid or payable to the external auditors for non-audit services provided during the year ended
30 June 2012:
Audit of royalty paid to company
Auditor's independence declaration
30 June
2012
$
-
30 June
2011
$
2,100
The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year
ended 30 June 2012 has been received and can be found on page 21 of the financial report.
5. Remuneration report (audited)
Remuneration policy
The remuneration policy of Analytica Limited has been designed to align key management personnel (KMP) objectives
with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term
incentives based on key performance areas affecting Analytica Limited's financial results. The Board of Analytica
Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best key
management personnel to run and manage Analytica Limited, as well as create goal congruence between directors,
executives and shareholders.
The Board's policy for determining the nature and amount of remuneration for key management personnel of Analytica
Limited is as follows:
The remuneration policy has been developed by the Remuneration Committee and approved by the Board
following professional advice from independent external consultants.
All key management personnel receive a base salary (which is based on factors such as length of service and
experience), superannuation, fringe benefits, and performance incentives.
Performance incentives are based on predetermined key performance indicators.
Incentives paid in the form of options or rights are intended to align the interests of the KMP and company with
those of the shareholders. In this regard, key management personnel are prohibited from limiting risk attached to
those instruments by use of derivatives or other means.
The Remuneration Committee reviews key management personnel packages annually by reference to Analytica
Limited’s performance, executive performance and comparable information from industry sectors.
The performance of key management personnel is measured against criteria agreed bi-annually with each executive
and is based predominantly on the forecast growth of Analytica Limited’s profits and shareholders’ value. All bonuses
and incentives must be linked to predetermined performance criteria. The Board may, however, exercise its discretion
in relation to approving incentives, bonuses and options, and can recommend changes to the Committee’s
recommendations. Any changes must be justified by reference to measurable performance criteria. The policy is
designed to attract the highest calibre of executives and reward them for performance that results in long-term growth in
shareholder wealth.
16
Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
5. Remuneration report (audited) continued
Remuneration policy continued
Key management personnel receive a superannuation guarantee contribution required by the law, which is currently
9%, and do not receive any other retirement benefits. Some individuals, however, have chosen to sacrifice part of their
salary to increase payments towards superannuation.
Upon retirement, key management personnel are paid employee benefit entitlements accrued to the date of retirement.
Key management personnel are paid a percentage of between 5-10% of their salary in the event of redundancy. Any
options not exercised before or on the date of termination will lapse.
All remuneration paid to key management personnel is valued at the cost to the company and expensed.
The Board’s policy is to remunerate executive Directors at a level which provides the Company with the ability to attract
and retain executives with the experience and qualifications appropriate to the development strategy of the Company’s
Intellectual Property.
The Board's policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities.
The Remuneration Committee determines payments to the non-executive directors and reviews their remuneration
annually, based on market practice, duties and accountability. Independent external advice is sought when required.
The maximum aggregate amount of
to approval by
shareholders at the Annual General Meeting,the current maximum is $550,000 - which was approved at the 2011 AGM.
Previous to this approval the maximum pool was set at $300,000 per annum by shareholders in November 2004.
Subsequent to this meeting in November 2004 the Board set individual Directors fees at $50,000 per annum plus
statutory superannuation and the chairman’s fee at $75,000 plus statutory superannuation. Based on the current board
structure total fees paid on a yearly basis will be $175,000 plus statutory superannuation.
fees that can be paid to non-executive directors is subject
Entities associated with Mr Ross Mangelsdorf were paid consulting, accounting and taxation services fees during the
year of $46,000 (2011: $49,000)
There was one additional key management person employed by the Company during the year in addition to the
Company’s Directors. Mr Geoff Daly is the Company’s Operations Manager was appointed on the 7 November 2005.
Mr Daly has extensive experience in the design of medical devices, prototyping and manufacturing.
Mr Daly is employed by the Company under the terms and conditions set out in an employment contract. Due to the
size of the company and the nature of its operations, the contract is open- ended and not for a specific time frame. Mr
Daly’s contract can be terminated by either party giving notice commensurate with the period of employment, which
varies from 1 to 4 weeks. There is no provision in the employment contract for the payment of any termination
payments other than accrued statutory entitlements.
Key management personnel are also entitled and encouraged to participate in the employee share and option
arrangements to align their interests with shareholders' interests.
Options granted under these arrangements do not carry dividend or voting rights. Each option is entitled to be
converted into one ordinary share and is valued using the Black-Scholes methodology.
Key management personnel who are subject to these arrangements are subject to a policy governing the use of
external hedging arrangements. Such personnel are prohibited from entering into hedge arrangements, i.e. put options,
on unvested shares and options which form part of their remuneration package. Terms of employment signed by such
personnel contain details of such restrictions.
Relationship between remuneration policy and company performance
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. Two methods have been applied to achieve this aim, the first being a performance-based bonus based on
17
Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
5. Remuneration report (audited) continued
Relationship between remuneration policy and company performance continued
key performance indicators, and the second being the issue of options to directors and executives to encourage the
The company believes this policy has been effective in increasing
alignment of personal and shareholder interests.
shareholder wealth over the past 5 years.
The following table shows the gross revenue, profits and dividends for the last five years for the company, as well as
the share prices at the end of the respective financial years.
2008
$
2009
$
2010
$
2011
$
2012
$
Revenue
Net Profit
Share Price at Year-end
Dividends Paid
Performance conditions linked to remuneration
164,894
290,548
247,617
(828,153) (1,900,560) (1,287,837)
0.026
-
0.022
-
0.023
-
272,878
194,705
(203,176) (2,222,009)
0.017
-
0.030
-
The key performance indicators (KPIs) are set annually, with a certain level of consultation with key management
personnel to ensure buy-in. The measures are specifically tailored to the area each individual is involved in and has a
level of control over. The KPIs target areas the Board believes hold greater potential for Group expansion and profit,
covering financial and non-financial as well as short and long-term goals. The level set for each KPI is based on
budgeted figures for Analytica Limited and respective industry standards.
Performance in relation to the KPIs is assessed annually, with bonuses being awarded depending on the number and
deemed difficulty of the KPIs achieved. Following the assessment, the KPIs are reviewed by the Remuneration
Committee in light of the desired and actual outcomes, and their efficiency is assessed in relation to Analytica Limited's
goals and shareholder wealth, before the KPIs are set for the following year.
The satisfaction of the performance conditions are based on a review of the audited financial statements of Analytica
Limited, as such figures reduce any risk of contention relating to payment eligibility. The Board does not believe that
performance conditions should include a comparison with factors external of Analytica Limited at this time.
Employment details of members of key management personnel and other executives
There was one additional key management person employed by the Company during the year in addition to the
Company’s Directors. Mr Geoff Daly is the Company’s Operations Manager and was appointed on 7 November 2005.
Mr Daly has extensive experience in the design of medical devices, prototyping and manufacturing.
Mr Daly is employed by the Company under the terms and conditions set out in an employment contract. Due to the
size of the Company and the nature of its operations, the contract is open-ended and not for a specified time frame. Mr
Daly’s contract may be terminated by either party giving notice commensurate with his period of employment, which
varies from 1 to 4 weeks. There is no provision in the employment contract for the payment of any termination
payments other than accrued statutory entitlements.
Company executive fees are not linked to the performance of the Company. However, to align executives’ interests
with shareholder interests, the executives are encouraged to hold shares in the Company.
18
Analytica Limited
Directors' Report
For the Year Ended 30 June 2012
5. Remuneration report (audited) continued
Remuneration details for the year ended 30 June 2012
The following table of benefits and payment details, in respect to the year, the components of remuneration for each member of the key management personnel of Analytica Limited:
Table of benefits and payments
2012
Directors
Dr Michael Monsour
Mr. Ross Mangelsdorf
Mr. Warren Brooks
Mr. David Gooch
KMP
Geoff Daly
2011
Directors
Dr Michael Monsour
Mr. Ross Mangelsdorf
Mr. David Gooch
KMP
Mr. Geoff Daly
short term
cash salary fees
superannuation
non monetary
other short-term
post employment
pension and
superannuation
other post
employment
long term
employee
benefits
termination
share based payments
options and
rights
shares and units
cash-settled
$
$
$
$
$
$
$
$
$
$
$
75,000
50,000
46,795
4,167
210,000
385,962
6,750
4,500
4,212
375
18,900
34,737
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
short term
cash salary fees
superannuation
non monetary
other short-term
post employment
pension and
superannuation
other post
employment
$
$
$
$
$
$
75,000
50,000
50,000
160,000
335,000
6,750
4,500
4,500
14,400
30,150
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81,750
54,500
51,007
4,542
228,900
420,699
long term
employee
benefits
termination
share based payments
options and
rights
shares and units
cash-settled
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81,750
54,500
54,500
174,400
365,150
19
Bentleys
THINKING AHEAD
AUDITOR'S INDEPENDENCE DECLARATION
UNDER SECTION 3O7C OF THE CORPORATIONS ACT 2OO1
TO THE DIRECTORS OF ANALYTICA LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2012there
have been:
i. no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
ç.-{kr5
Bentleys Brisbane PartnershiP
Chartered Accountants
Douglas
Partner
Brisbane
28 September 2012
Kreston lnternational
ts-_ ÀrbffidHFûtddltu
Íhememberfirmsof
AmemberofBentleys,anassocrationofindependentaccountingfirmslnAustlal¡a
the Bentleys assocratron are affliated only and not rn partnership Lrabìlity limited by a scheme approved
under Professronal Standards Leglslation
Accountants
Auclitors
Advisors
Analytica Limited
Statement of Comprehensive Income
For the Year Ended 30 June 2012
Sales & grant revenue
Other income
Administrative expenses
Capital raising costs
Depreciation, amortisation and impairments
Fair value adjustment
Finance costs
Marketing expenses
Occupancy costs
Sundry expenses
Research and development
Loss before income taxes
Income tax expense
Loss for the year
Other comprehensive income:
Net gain on revaluation of land and buildings
Changes in fair value of available-for-sale financial assets
Share of other comprehensive income of associates and joint ventures
Other comprehensive income for the year, net of tax
Note
2
2
3
30 June
2012
$
162,452
32,254
(492,040)
(289,130)
(97,931)
(595,486)
(18,755)
-
(2,600)
(10,844)
(909,929)
(2,222,009)
-
30 June
2011
$
267,549
5,330
(424,190)
-
(12,844)
381,320
(5,333)
(26,047)
(600)
(13,776)
(374,584)
(203,175)
-
(2,222,009)
(203,175)
-
-
-
-
-
-
-
-
Total comprehensive income for the year
(2,222,009)
(203,176)
Earnings per share
Basic/diluted earnings per share (cents)
(0.0040)
(0.0005)
The accompanying notes form part of these financial statements.
22
4 16 Analytica Limited
Statement of Financial Position
As At 30 June 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other financial assets
Property, plant and equipment
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Borrowings
Short-term provisions
Employee benefits
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
30 June
30 June
Note
2012
$
2011
$
5
6
7
8
9
10
11
12
13
14
14
1,213,820
182,029
-
1,395,849
62,683
8,937
18,943
90,563
1,486,412
98,588
(65)
26,098
48,116
172,737
15,766
15,766
188,503
1,297,909
1,342
293,428
16,238
311,008
658,169
20,169
-
678,338
989,346
113,306
268,700
24,044
35,099
441,149
8,185
8,185
449,334
540,012
15
17
83,939,012
2,630,508
(85,271,611)
80,959,107
2,630,508
(83,049,603)
1,297,909
1,297,909
540,012
540,012
The accompanying notes form part of these financial statements.
23
Analytica Limited
Statement of Changes in Equity
For the Year Ended 30 June 2012
30 June 2012
Ordinary
Shares
Retained
Earnings
Note
$
$
Option
Reserve
$
Balance at 1 July 2011
80,959,107
(83,049,603)
2,630,508
Profit or loss attributable to members of the
parent entity
-
(2,222,009)
Transactions with owners in their
capacity as owners
Shares issued during the year
Rights issue
Sub-total
219,905
2,760,000
-
-
2,979,905
(2,222,009)
-
-
-
-
Balance at 30 June 2012
83,939,012
(85,271,612)
2,630,508
30 June 2011
Balance at 1 July 2010
80,959,107
(82,846,396)
2,630,508
Ordinary
Shares
Retained
Earnings
Note
$
$
Option
Reserve
$
Profit or loss attributable to members of the
parent entity
Elimination of outside equity interest
following deregistration of subsidiaries
Transactions with owners in their
capacity as owners
Sub-total
-
-
-
(203,176)
(31)
(203,176)
-
-
-
Balance at 30 June 2011
80,959,107
(83,049,603)
2,630,508
Non-controlling
Interests
$
-
-
-
-
-
-
Non-controlling
Interests
$
5
-
(5)
-
-
Total
$
540,012
(2,222,009)
219,905
2,760,000
757,896
1,297,908
Total
$
743,224
(203,176)
(36)
(203,212)
540,012
The accompanying notes form part of these financial statements.
24
Analytica Limited
Statement of Cash Flows
For the Year Ended 30 June 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers
Receipt from grants
Interest received
Payments to suppliers and employees
Finance costs
Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Net cash used by investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Repayment of directors' loan accounts
Proceeds from directors' loan accounts
Net cash used by financing activities
Net increase (decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
5
30 June
30 June
Note
2012
$
2011
$
5,121
261,449
32,013
(1,763,089)
(18,755)
33,284
-
5,330
(717,090)
(5,993)
26
(1,483,261)
(684,469)
(15,401)
(15,401)
(2,272)
(2,272)
2,979,905
(268,790)
-
2,711,115
1,212,453
1,342
1,213,795
-
-
268,700
268,700
(418,041)
419,383
1,342
The accompanying notes form part of these financial statements.
25
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
This annual financial report includes the financial statements and notes of Analytica Limited. The annual financial statements
were authorised for issue by the Board of Directors on the date of the director’s report.
Analytica Limited is a for profit company domiciled in Australia.
1
Summary of Significant Accounting Policies
(a)
Basis of preparation
The financial statements are general purpose financial statements that have 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.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards.
Material accounting policies adopted in the preparation of these financial statements are presented below and
have been consistently applied unless otherwise stated.
The financial statements have been prepared on an accruals basis and are based on historical costs, modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
(b)
Going concern
The financial report has been prepared on a going concern basis.
This basis has been adopted as the company has sufficient cash at 30 June 2012 to conduct its affairs due to
the capital raised from shares issued in 2012, and received a guarantee of continuing financial support from Dr
Monsour to allow the company to meet its liabilities and it is the belief that such financial support will continue to
be made available.
The company’s forward cash flow projections currently indicate that the company will be required to raise
additional funds to meet forecast needs. The Directors have considered this position and have assessed
available funding options and believe should funding be required that sufficient funds could be sourced to satisfy
creditors as and when they fall due.
The company also expects to generate royalty income during the 2013 year from the sales of its AutoStart®
Burette and/or AutoFlush enabled Burette. Whilst not expected to generate positive cash flows for 30 June 2013,
royalty revenues generated will assist the company in meeting its ongoing working capital requirements.
However, if adequate capital raising is not achieved the company may be unable to continue as a going concern.
No adjustments have been made relating to the recoverability and classification of recorded assets amounts and
classification of liabilities that might be necessary should the company not continue as a going concern.
(c)
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products
includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads
are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average
costs. Costs of purchased inventory are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
The accompanying notes form part of these financial statements.
26
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(d)
Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable,
any accumulated depreciation and impairment losses.
Property
Freehold land and buildings are shown at their fair value (being the amount for which an asset could be
exchanged between knowledgeable willing parties in an arm's length transaction), based on periodic, but at least
triennial, valuations by external independent valuers, less subsequent depreciation for buildings.
In the periods when the freehold land and buildings are not subject to an independent valuation, the Directors
conduct Directors valuations to ensure the land and buildings carrying amount is not materially different to the
fair value.
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation
surplus in shareholders' equity. Decreases that offset previous increases of the same asset are charged against
fair value reserves directly in equity; all other decreases are charged to the consolidated income statement.
Each year the difference between depreciation based on the revalued carrying amount of the asset charged to
the consolidated income statement and depreciation based on the asset's original cost is transferred from the
revaluation surplus to retained earnings.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. Land and buildings are measured at
cost less accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the consolidated group
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the
consolidated income statement during the financial period in which they are incurred. Plant and equipment are
measured on the cost basis. Cost includes expenditure that is directly attributable to the asset.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding
freehold land,
life to the company
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Land is not
depreciated.
is depreciated on a reducing balance basis over the asset's useful
The accompanying notes form part of these financial statements.
27
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(d)
Property, plant and equipment continued
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and Equipment
Office Equipment
Computer Equipment
Depreciation Rate
20%
33.3% to 40%
33.3%
The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at
the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the income statement.
(e)
Financial instruments
Initial recognition and measurement
Financial assets and financial
liabilities are recognised when the entity becomes a party to the contractual
provisions to the instrument. For financial assets, this is the equivalent to the date that the company commits
itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is
classified 'at fair value through profit or loss'
in which case transaction costs are expensed to profit or loss
immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest
rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability
settled, between knowledgeable, willing parties in arm's length transaction. Where available, quoted prices in an
active market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Amortised cost is calculated as:
(a)
(b)
(c)
(d)
the amount at which the financial asset or financial liability is measured at initial recognition;
less principal repayments;
plus or minus the cumulative amortisation of
recognised and the maturity amount calculated using the effective interest method; and
the difference,
if any, between the amount
initially
less any reduction for impairment.
The effective interest method is used to allocate interest income or interest expense over the relevant period and
is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees,
transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably
The accompanying notes form part of these financial statements.
28
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(e)
Financial instruments continued
predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or
financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value
with a consequential recognition of an income or expense in profit or loss.
The classification of financial instruments depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial recognition and at the end of each
reporting period for held-to-maturity assets.
i)
Financial assets at fair value through profit or loss
Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose
of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to
financial assets is
avoid an accounting mismatch or to enable performance evaluation where a group of
managed by key management personnel on a fair value basis in accordance with a documented risk
management or investment strategy. Such assets are subsequently measured at fair value with changes in
carrying value being included in profit or loss.
ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost .
Loans and receivables are included in current assets, except for those which are not expected to mature within
12 months after the end of the reporting period.
iii)
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the company's intention to hold these investments to maturity. They are
subsequently measured at amortised cost.
Held-to-maturity investments are included in non-current assets, except for those which are expected to be
realised within 12 months after the end of the reporting period, which will be classified as current assets.
If during the period the company sold or reclassified more than an insignificant amount of the held-to-maturity
investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified
as available-for-sale.
The company did not hold any held-to-maturity investments in the current or comparative financial year.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified
into other categories of financial assets due to their nature, or they are designated as such by management.
They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or
determinable payments.
Available-for-sale financial assets are included in non-current assets, except for those which are expected to be
realised within 12 months after the end of the reporting period.
(v)
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
The accompanying notes form part of these financial statements.
29
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(e)
Financial instruments continued
Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting date.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied
to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to
similar instruments and option pricing models.
Impairment
Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is
likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reporting
period, the company assesses whether there is objective evidence that a financial asset has been impaired
through the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant or
prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen.
Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the
reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss.
However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive
income rather than profit and loss.
Impairment losses are recognised through an allowance account for loans and receivables in the income
statement.
Financial guarantees
Where material, financial guarantees issued which require the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payment when due, are recognised as
financial liabilities at fair value on initial recognition.
The guarantee is subsequently measured at the higher of the best estimate of the obligation and the amount
initially recognised less, when appropriate, cumulative amortisation. Where the entity gives guarantees in
exchange for a fee, revenue is recognised under AASB 118 'Revenue'.'
The fair value of financial guarantee contracts has been assessed using a probability weighted discounted cash
flow approach. The probability has been based on:
the likelihood of the guaranteed party defaulting in a period;
the proportion of
defaulting; and
the exposure that
is not expected to be recovered due to the guaranteed party
the maximum loss exposed if the guaranteed party were to default.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options for immediate are recognised as a deduction from equity, net of any tax effects.
Preference share capital is classified as equity if it is non-redeemable or redeemable only at the company’s
option, and any dividends are discretionary.
The accompanying notes form part of these financial statements.
30
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
Preference share capital is classified as financial liability if it is redeemable on a specific date or at the option of
the shareholders, or if dividend payments are not discretionary.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks
and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are
either discharged, cancelled or expired. The difference between the carrying value of the financial
liability
extinguished or transferred to another party and the fair value of consideration paid, including the transfer of
non-cash assets or liabilities assumed, is recognised in profit or loss.
When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other
comprehensive income are reclassified to profit or loss.
(f)
Impairment of non-financial assets
At the end of each reporting period, the company assesses whether there is any indication that an asset may be
impaired. The assessment will
include the consideration of external and internal sources of information and
dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition
profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable
amount of the asset, being the higher of the asset's fair value less costs to sell and value in use to the asset's
carrying value. Value in use is calculated by discounting the estimated future cash flows of the asset or
cash-generating unit (CGU) at a pre-tax discount rate reflecting the specific risks in the asset / CGU. Any excess
of the asset's carrying value over its recoverable amount is expensed to the income statement.
Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Impairment losses recognised in respect of CGU's are allocated first to reduce the carrying amount of goodwill to
nil and then to the other assets in the unit in proportion to their carrying amount.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Assets, other than goodwill that have an allocated impairment loss are reviewed for reversal indicators at the
end of each reporting period. After recognition of an impairment loss, the amortisation charge for the asset is
adjusted in future periods to allocate the asset's revised carrying amount on a systematic basis over its
remaining useful life.
Impairment losses are recognised as an expense immediately, unless the relevant asset is property, plant and
equipment held at fair value (other than investment property carried at a revalued amount) in which case the
impairment loss is treated as a revaluation decrease as described in the accounting policy for property, plant and
equipment.
(g)
Intangibles
Goodwill
Goodwill is carried at cost less accumulated impairment losses. Goodwill is calculated as the excess of the sum
of:
i)
ii)
the consideration transferred;
any non-controlling interest; and
The accompanying notes form part of these financial statements.
31
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
iii)
the acquisition date fair value of any previously held equity interest;
over the acquisition date fair value of net identifiable assets acquired.
The value of goodwill recognised on acquisition of each subsidiary in which the company holds less than a 100%
interest will depend on the method adopted in measuring the aforementioned non-controlling interest. The
company can elect to measure the non-controlling interest in the acquiree either at fair value ('full goodwill
the subsidiary's identifiable net assets
method') or at
('proportionate interest method'). The company determines which method to adopt for each acquisition.
the non-controlling interest's proportionate share of
Under the 'full goodwill method', the fair values of the non-controlling interests are determined using valuation
techniques which make the maximum use of market information where available.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive
income. Where they investment has been equity accounted, any credit reserve balances are recycled to the
statement of comprehensive income.
In determining the net identifiable assets acquired, contingent liabilities of the acquiree are included to the extent
to which they represent a present obligation and can be measured reliably.
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is
included in investments in associates.
is not amortised but
is tested for impairment annually and is allocated to the company's cash
Goodwill
generating units or groups of cash generating units, which represent the lowest level at which goodwill
is
monitored but where such level is not larger than an operating segment. Gains and losses on the disposal of an
entity include the carrying amount of goodwill related to the entity sold.
Patents,
trademarks and licences
Patents, trademarks and licences are recognised at cost of acquisition. Patents and trademarks have a finite life
and are carried at cost less any accumulated amortisation and any impairment losses. Patents and trademarks
are amortised over their useful life ranging from 3 to 12 years.
Research and development
Expenditure during the research phase of a project is recognised as an expense when incurred. Development
costs are capitalised only when technical feasibility studies identify that the project will deliver future economic
benefits and these benefits can be measured reliably.
The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use, and capitalised borrowing costs. Other development
expenditure is recognised in profit or loss as incurred.
Capitalised development costs are measured at cost
impairment losses.
less accumulated amortisation and accumulated
Development costs have a finite life and are amortised on a systematic basis matched to the future economic
benefits over the useful life of the project which is 12 years.
Amortisation
Amortisation is based on the cost of an asset less its residual value.
The accompanying notes form part of these financial statements.
32
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible
assets, other than goodwill, from the date that they are available for use.
Amortisation methods, useful
appropriate.
(h)
Cash and cash equivalents
lives and residual values are reviewed at each reporting date and adjusted if
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less which are convertible to a known amount of cash and
subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
(i)
Employee benefits
Provision is made for the company's liability for employee benefits arising from services rendered by employees
to the end of the reporting period. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled.
Employee benefits payable later than one year have been measured at the present value of the estimated future
cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage
increases and the probability that
the employee may satisfy vesting requirements. Those cashflows are
discounted using market yields on national government bonds with terms to maturity that match the expected
timing of cashflows.
Equity-settled compensation
The company operates equity-settled share-based payment employee share and option schemes. The fair value
of the equity to which employees become entitled is measured at grant date and recognised as an expense over
the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as
the market bid price. The fair value of options is ascertained using a Black-Scholes pricing model which
incorporates all market vesting conditions. The amount to be expensed is determined by reference to the fair
value of the options or shares granted, this expense takes in account any market performance conditions and
the impact of any non-vesting conditions but ignores the effect of any service and non-market performance
vesting conditions.
Non-market vesting conditions are taken into account when considering the number of options expected to vest.
At the end of each reporting period, the company revises its estimate of the number of options which are
expected to vest based on the non-market vesting conditions. Revisions to the prior period estimate are
recognised in profit or loss and equity.
(j)
Provisions
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provisions are measured at the present value of management's best estimate of the outflow required to settle
the obligation at the end of the reporting period. The discount rate used is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the unwinding of the discount is taken to finance costs in the income statement.
(k)
Trade and other payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
The accompanying notes form part of these financial statements.
33
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
services received by the company during the reporting period which remain unpaid. The balance is recognised
as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(l)
Earnings per share
Analytica Limited presents basic and diluted earnings per share information for its ordinary shares.
Basic earnings per share is calculated by dividing the profit attributable to owners of the company by the
weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after income tax effect
of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average
number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive
potential ordinary shares.
(m)
Income tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred
tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant
taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during
the year as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit
or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is
no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of
the reporting year. Their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred
tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and
liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the
respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or
The accompanying notes form part of these financial statements.
34
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
liabilities are expected to be recovered or settled.
(n)
Revenue and other income
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that
future economic benefits will flow to the entity and specific criteria have been met for each of Analytica Limited's
activities as discussed below.
Revenue is measured at the fair value of the consideration received or receivable after taking into account any
trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance
and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The
difference between the amount initially recognised and the amount ultimately received is interest revenue.
Sale of goods
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of
significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.
Interest revenue
Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is
the rate inherent in the instrument.
Government Grants
Government grants are recognised at fair value where there is a reasonable assurance that the grant will be
received and all grant conditions will be met. Grants relating to expense items are recognised as income over
the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are
credited to deferred income at fair value and are credited to income over the expected useful life of the asset on
a straight line basis.
All revenue is stated net of the amount of goods and services tax (GST).
(o)
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take
a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(p)
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part
of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
The accompanying notes form part of these financial statements.
35
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(q)
Foreign currency transactions and balances
Functional and presentation currency
The functional currency of each of Analytica Limited's entities is measured using the currency of the primary
economic environment in which that entity operates. The financial statements are presented in Australian dollars
which is the parent entity's functional and presentation currency.
Transaction and balances
the transaction. Foreign currency monetary items are translated at
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the
date of
the year-end exchange rate.
Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the
transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair
values were determined.
Exchange differences arising on the translation of monetary items are recognised in the income statement,
except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the
extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in
the income statement.
(r)
Critical accounting estimates and judgments
The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the company.
Key judgments - provision for impairment of receivables
The value of the provision for impairment of receivables is estimated by considering the ageing of receivables,
communication with the debtors and prior history.
(s)
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current year.
When the company applies an accounting policy retrospectively, makes a retrospective restatement or
reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest
comparative period will be presented.
The accompanying notes form part of these financial statements.
36
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(u) New accounting standards for application in future periods
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
application dates for future reporting periods. The company has decided against early adoption of
these
Standards . The following table summarises those future requirements, and their impact on the company:
Standard name
Effective date
for entity
Requirements
AASB 9 Financial Instruments and
amending standards AASB
2009-11 / AASB 2010-7
AASB 2010-8 Amendment to
Australian Accounting Standards –
Deferred tax: Recovery of
underlying assets
AASB 2011-2 Amendments to
Australian Accounting Standards
arising from Trans-Tasman
convergence – Reduced
Disclosure Requirements
30 June 2016
- Changes to the classification and
measurement requirements for
financial assets and financial
liabilities.
- New rules relating to
derecognition of financial
instruments.
30 June 2013 Adds a presumption to AASB 112
that the recovery of the carrying
amount of an investment property
at fair value will be through sale.
30 June 2014 Highlights the disclosures not
FOR RDR ENTITIES
required in AASB 1054 for entities
applying the RDR.
AASB 2011-3 Amendments to
Australian Accounting Standards –
Orderly Adoption of Changes to
ABS GFS Manual and Related
Amendments
30 June 2013 Standard is applicable for whole of
government and general
government financial statements
only. AASB 2011 provides details
of changes in accounting treatment
due to the Government Finance
Statistics manual.
AASB 13 Fair Value Measurement.
30 June 2014 AASB 13 provides a precise
AASB 2011-8 - Amendments to
Australian Accounting Standards
arising from AASB 13
[AASB 1, 2, 3, 4, 5, 7, 9, 2009-11,
2010-7, 101, 102, 108, 110, 116,
117, 118, 119, 120, 121, 128, 131,
132, 133, 134, 136, 138, 139, 140,
141, 1004, 1023 & 1038 and
Interpretations 2, 4, 12, 13, 14, 17,
19, 131 & 132]
definition of fair value and a single
source of fair value measurement
and disclosure requirements for
use across Accounting Standards
but does not change when fair
value is required or permitted.
There are a number of additional
disclosure requirements.
Impact
The impact of AASB 9
has not yet been
determined as the
entire standard has
not been released
No impact expected.
Little impact since the
disclosures are not
included in the RDR
financials.
FOR NON RDR
ENTITIES
The entity is not
adopting the RDR and
therefore this standard
is not relevant.
Standard is not
applicable and
therefore there will be
no impact on
adoption.
Fair value estimates
currently made by the
entity will be revised
and potential changes
to reported values
may be required.
The entity has not yet
determined the
magnitude of any
changes which may
be needed.
Some additional
disclosures will be
needed.
37
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(u)
New accounting standards for application in future periods continued
AASB 2011 – 4 - Amendments to
Australian Accounting Standards to
Remove Individual Key
Management Personnel Disclosure
Requirements
[AASB 124]
30 June 2014 Remove individual key
management personnel disclosure
requirements (i.e. components of
remuneration) for disclosing
entities.
The entity is not a
disclosing entity and
therefore this will have
no impact.
OR
Since the entity is a
disclosing entity, the
KMP remuneration
note in the financial
statements will not
include individual
components of
remuneration.
Since the entity does
not comply with the
Reduced Disclosure
Regime there is no
impact on the
adoption of this
standard.
OR
The entity will cease
preparation of
consolidated financial
statements under this
standard.
The impact of this
standard is expected
to be minimal.
30 June 2014 This Standard extends the relief
from consolidation, the equity
method and proportionate
consolidation by removing the
requirement for the consolidated
financial statements prepared by
the ultimate or any intermediate
parent entity to be IFRS compliant,
provided that the parent entity,
investor or venturer and the
ultimate or intermediate parent
entity comply with Australian
Accounting Standards or Australian
Accounting Standards – Reduced
Disclosure Requirements.
30 June 2014 This standard provides many
consequential changes due to the
release of the new consolidation
and joint venture standards.
AASB 2011 – 6 –
Amendments to Australian
Accounting Standards – Extending
Relief from Consolidation, the
Equity Method and Proportionate
Consolidation – Reduced
Disclosure Requirements
[AASB 127, AASB 128 & AASB
131]
AASB 2011-7 –
Amendments to Australian
Accounting Standards arising from
the Consolidation and Joint
Arrangements Standards
[AASB 1, 2, 3, 5, 7, 9, 2009-11,
101, 107, 112, 118, 121, 124, 132,
133, 136, 138, 139, 1023 & 1038
and Interpretations 5, 9, 16 & 17]
AASB 2011-9 - Amendments to
Australian Accounting
Standards - Presentation of Items
of Other Comprehensive Income.
30 June 2013 Entities will be required to group
items presented in other
comprehensive income on the
basis of whether they are
potentially reclassifiable to profit or
loss subsequently (reclassification
adjustments).
The items shown in
other comprehensive
income will be
separated into two
categories.
38
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
1
Summary of Significant Accounting Policies continued
(u)
New accounting standards for application in future periods continued
AASB 119 Employee Benefits
(September 2011)
30 June 2014 The main changes in this standard
relate to the accounting for defined
benefit plans and are as follows:
AASB 2011-10 Amendments to
Australian Accounting Standards
arising from AASB 119 (September
2011) and AASB 2011-11
Amendments to AASB 119
(September 2011) arising from
Reduced Disclosure Requirements
- elimination of the option to defer
the recognition of gains and losses
(the 'corridor method');
- requiring remeasurements to be
presented in other comprehensive
income; and
- enhancing the disclosure
requirements.
AASB 1053
30 June 2014 This standard allows certain
entities to reduce disclosures.
AASB 2010-10
30 June 2014 Makes amendments to AASB 1
Since the entity does
not have a defined
benefit plan, the
adoption of these
standards will not
have any impact.
OR
Where the entity has a
defined benefit plan,
the impact of this
standard should be
calculated and
disclosed.
Analytica Limited is
not able to apply this
standard or the impact
of this standard has
not yet been
determined as the
entity has a choice on
whether to apply
No impact since the
entity is not a first-time
adopter of IFRS.
2
Revenue and Other Income
Revenue from continuing operations
Sales revenue
- sale of goods
Other revenue
- interest received
- operating grants
- profit on sale of equipment
Total Revenue
30 June
30 June
Note
2012
$
2011
$
4,880
6,100
32,013
157,572
241
189,826
194,706
5,330
261,449
-
266,779
272,879
39
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
30 June
30 June
Note
2012
$
2011
$
3
Result for the Year
The result for the year includes the following specific expenses
Costs of sale
16,238
5,306
Interest expense on financial liabilities at amortised cost
- external
- related entities
Total finance costs
Administrative expenses consists of the following significant expenses:
Administration - general
Compliance costs
Employee costs
Depreciation of property plant and equipment
Amortisation
Amortisation of purchased intellectual property
Total depreciation and amortisation
Remuneration of auditor
auditing or reviewing the financial report
other services
241
18,514
18,755
76,486
220,310
195,244
492,040
6,873
1,058
90,000
97,931
5,333
-
5,333
50,363
175,066
198,761
424,190
12,844
-
-
12,844
35,004
-
35,004
35,004
9,100
44,104
40
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
4
Income Tax Expense
(a) The prima facie tax on profit from ordinary activities before income tax is reconciled to the income tax expense as
follows:
30 June
30 June
2012
$
2011
$
Prima facie tax payable on profit from ordinary activities before income tax at 30%
(2011: 30%)
(666,602)
(60,953)
Add:
Tax effect of:
- other non-allowable items
- future benefits not recognised
Less:
Tax effect of:
- movement in provisions
- other non-assessable items
- other deductible items
Income tax expense
5
Cash and Cash Equivalents
Cash at bank and in hand
Short-term bank deposits
Reconciliation of cash
82,829
747,148
163,375
6,796
100,354
56,225
51,206
172,226
162,479
3,363
78,435
80,681
163,375
162,479
-
-
86
1,213,734
1,213,820
1,342
-
1,342
Cash at the end of the year as shown in the statement of cash flows is reconciled to items in the statement of financial
position as follows:
Cash and cash equivalents
Bank overdrafts
Balance as per statement of cash flows
11
1,213,820
(25)
1,213,795
1,342
-
1,342
41
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
6
Trade and Other Receivables
CURRENT
Prepayments
GST receivable
R & D tax concession
Total current trade and other receivables
Credit risk
30 June
30 June
Note
2012
$
2011
$
19,666
4,791
157,572
182,029
22,733
9,245
261,449
293,427
The company has no significant concentration of credit risk with respect to any single counterparty or group of
counterparties. The class of assets described as 'trade and other receivables' is considered to be the main source of
credit risk related to the company.
7
Inventories
CURRENT
At cost:
Finished goods
-
-
16,238
16,238
Write downs of inventories to net realisable value during the year were $ NIL (2011: $ NIL).
8
Other Financial Assets
Associated companies - CBio Limited
62,683
658,169
Held for trading financial assets
Listed shares at cost
Fair value adjustment
Total other financial assets
522,356
(459,673)
62,683
522,356
135,812
658,168
CBio Limited (CBZ) listed on the Australian Securities Exchange in 2010. Analytica Limited holds 1,044,712 ordinary
shares with a market value at 30 June 2012 of $62,683 (2011: $658,169).
42
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
9
Property, Plant and Equipment
Plant and equipment
At cost
Accumulated depreciation
Total plant and equipment
Office equipment
At cost
Accumulated depreciation
Total office equipment
Computer equipment
At cost
Accumulated depreciation
Total computer equipment
Total property, plant and equipment
(a)
Movements in Carrying Amounts
30 June
30 June
2012
$
2011
$
17,036
(10,849)
31,493
(13,224)
6,187
18,269
6,485
(5,978)
507
44,681
(42,438)
2,243
8,937
6,485
(5,233)
1,252
40,604
(39,957)
647
20,168
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current year:
Plant and
Equipment
Office
Equipment
Computer
Equipment
$
$
$
Total
$
Balance at 30 June 2012
Balance at the beginning of
year
Additions
Disposals - written down
value
Depreciation expense
Balance at 30 June 2012
Balance at 30 June 2011
Balance at the beginning of
year
Additions
Depreciation expense
Balance at 30 June 2011
18,269
-
(8,434)
(3,648)
6,187
1,252
-
-
(745)
507
647
4,077
-
(2,481)
2,243
20,168
4,077
(8,434)
(6,874)
8,937
Plant and
Equipment
Office
Equipment
Computer
Equipment
$
$
$
Total
$
24,568
-
(6,299)
18,269
639
1,207
(594)
1,252
5,533
1,065
(5,951)
647
30,740
2,272
(12,844)
20,168
43
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
10 Intangible Assets
Patents, trademarks and other rights
Cost
Accumulated amortisation and impairment
Licenses
Cost
Accumulated amortisation and impairment
Net carrying value
Total Intangibles
11 Trade and Other Payables
CURRENT
Unsecured liabilities
Trade payables
Sundry payables and accrued expenses
Other payables
12 Borrowings
CURRENT
Bank overdraft
Related party payables
Total current borrowings
30 June
30 June
2012
$
2011
$
235,000
(235,000)
-
20,000
(1,057)
18,943
18,943
145,000
(145,000)
-
-
-
-
-
53,130
9,432
36,027
98,589
91,837
7,752
13,717
113,306
25
(90)
(65)
-
268,700
268,700
(a)
Bank loan facility
Balance used at reporting date
Borrowings balance at 30 June 2012 was $(90) (2011: $268,700).
Balance unused at reporting date
Director loan from Dr Michael Monsour represents an unsecured loan from MPAMM Pty Ltd, a related entity
associated with Dr Monsour. The loan is repayable on demand and bears interest at 11.04% per annum
(annual variable rate per Westpac Banking Corporation for business loans, plus 2%). The interest charged for
the year ended 30 June 2012 amounted to $18,514 (2011:$5,333). The maximum amount available under the
loan agreement is $400,000 therefore 100% of the facility was undrawn at 30 June 2012.
44
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
13 Provisions
CURRENT
Provision - audit
Provisions - accounting and taxation services
Current
Opening balance 1 July 2011
Additional provisions
Provisions used
Balance at 30 June 2012
14 Employee Benefits
CURRENT
Provision for annual leave
NON-CURRENT
Provision for long service leave
Current
Opening balance 1 July 2011
Additional provisions
Provisions used
Balance at 30 June 2012
Non-Current
Opening balance 1 July 2011
Additional provisions
Balance at 30 June 2012
30 June
30 June
2012
$
2011
$
18,108
7,990
26,098
23,054
990
24,044
Provision for
audit fees
Provision for
taxation
$
$
Total
$
23,054
35,004
(39,950)
18,108
990
7,000
-
7,990
24,044
42,004
(39,950)
26,098
30 June
30 June
2012
$
2011
$
48,116
35,099
15,766
63,882
8,185
43,284
Provision for
annual leave
Provision for
long service
leave
$
$
35,099
20,087
(7,070)
48,116
-
-
-
-
-
-
-
8,150
7,581
15,766
45
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
15 Issued Capital
559,885,794 (2011: 411,104,182) Fully paid ordinary shares
138,000,000 (2011: 0) ALTO Options
138,000,000 (2011: 0) ALTOA Options
0 (2011: 33,000,000) Unlisted Options
Total
(a)
Ordinary shares
At the beginning of the reporting period
Shares issued during the year
Share issue 18 October 2011
Share issue 1 December 2011
Share issue 6 December 2011
Rights issue 16 December 2011
Share issue 22 December 2011
Rights issue 9 March 2012
At the end of the reporting period
30 June
30 June
2012
$
83,939,012
-
-
-
2011
$
80,959,107
-
-
-
83,939,012
80,959,107
30 June
30 June
2012
No.
2011
No.
411,104,182
411,104,182
3,000,000
1,250,000
1,786,352
94,905,143
4,745,260
43,094,857
-
-
-
-
-
-
559,885,794
411,104,182
The holders of ordinary shares are entitled to participate in dividends and the proceeds on winding up of the
company. On a show of hands at meetings of the company, each holder of ordinary shares has one vote in
person or by proxy, and upon a poll each share is entitled to one vote.
The company's authorised capital is 559,885,794. The company does not have par value in respect of its shares.
On 16 December 2011 the company issued 94,905,143 ordinary shares at $0.02 for every 3 shares held.
On 9 March 2012 the company issued 43,094,857 ordinary shares at $0.02. This issue was for capital
subscribed by the underwriters to the right share issue.
(b)
Capital Management
Management controls the capital of Analytica Limited in order to ensure the entity continues as a going concern
as well as to maintain optimal returns to shareholders and benefits for other stakeholders. Capital consists of
share capital, non-redeemable preference shares, retained profit and non-controlling interests of Analytica
Limited.
There are no externally imposed capital requirements.
Analytica Limited monitors capital through the gearing ratio, which is calculated as net debt divided by total
capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is defined as
equity per the statement of financial position plus net debt.
The target for Analytica Limited’s gearing ratio is between 0% and 50% . The gearing ratios at the current and
prior years are shown below:
There have been no changes in the strategy adopted by management during the year.
46
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
15
Issued Capital continued
(b)
Capital Management continued
The gearing ratios for the year ended 30 June 2012 and 30 June 2011 are as follows:
Borrowings
Trade and other payables
Retirement benefit obligations
Short-term provisions
Less Cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
(c)
Share Options
30 June
30 June
Note
2012
$
2011
$
5
(65)
98,589
48,116
26,098
(1,213,820)
(1,041,082)
1,378,540
337,458
(309)%
268,700
113,306
35,099
24,044
(1,342)
439,807
540,012
979,819
45%
i)
For information relating to the Analytical Limited employee option plan, including details of options
issued, exercised and laspsed during the financial year; and the options outstanding at year end, refer
to Note 27 Share Based Payments.
ii) For information relating to share options issued to key management personnel during the financial
year, refer to Note 20 Interests of Key Management Personnel.
16
Earnings per Share
Basic/Diluted loss per share (cents per share)
(a) Reconciliation of earnings to profit or loss from continuing operations
Net loss
Earnings used to calculate basic EPS from continuing operations
(b) Earnings used to calculate overall earnings per share
Earnings used to calculate overall earnings per share
30 June
30 June
2012
$
(0.0040)
2011
$
(0.0005)
(2,222,009)
(203,176)
(2,222,009)
(203,176)
(2,222,009)
(203,176)
(c) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
30 June
30 June
2012
No.
2011
No.
Weighted average number of ordinary shares outstanding during the year used in
calculating basic EPS
559,885,794
411,104,182
47
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
17 Reserves
Option reserve
Opening balance
Total reserves
(a)
Share option reserve
30 June
30 June
2012
$
2011
$
2,630,508
2,630,508
2,630,508
2,630,508
This reserve records the cumulative value of employee service received for the issue of share options. When the
option is exercised the amount in the share option reserve is transferred to share capital.
18 Financial Risk Management
The group's financial instruments consist mainly of cash deposits with banks, accounts receivable and investments in
convertible notes. Financial liabilities consist of accounts payable and convertible notes issued by the group. The
main purpose of financial instruments is to raise finance and manage capital requirements for group operations. The
Board of Directors meets on a regular basis to analyse financial risk exposure and to evaluate financial management
strategies in the context of the most recent economic conditions and forecasts. The board's overall risk strategy seeks
targets, whilst minimising potential adverse effects on financial
to assist
performance.
the Company in meeting its financial
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit
risk. An outline of these risks and related risk management policies are summarised below.
The totals for each category of financial
accounting policies to these financial statements, are as follows:
instruments, measured in accordance with AASB 139 as detailed in the
Financial Assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
- Listed shares in related entities: CBio Limited
Trade and other receivables
Total financial assets
Financial Liabilities
Financial liabilities at amortised cost
Trade and other payables
Borrowings
Total financial liabilities
Financial risk management policies
1,213,820
1,342
62,683
162,364
1,438,867
98,589
(65)
98,524
658,169
270,695
930,206
113,305
268,700
382,005
The Board of Directors has overall responsibility for the establishment of Analytica Limited’s financial risk management
framework. This includes the development of policies covering specific areas such as foreign exchange risk, interest
rate risk, credit risk and the use of derivatives.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Analytica
Limited’s activities.
48
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
18 Financial Risk Management continued
Financial risk management policies continued
The day-to-day risk management is carried out by Analytica Limited’s finance function under policies and objectives
which have been approved by the Board of Directors. The Chief Financial Officer has been delegated the authority for
designing and implementing processes which follow the objectives and policies. This includes monitoring the levels of
exposure to interest rate and foreign exchange rate risk and assessment of market forecasts for interest rate and
foreign exchange movements.
The Board of Directors receives regular reports which provide details of the effectiveness of the processes and policies
in place.
Analytica Limited does not actively engage in the trading of financial assets for speculative purposes nor does it write
options.
Mitigation strategies for specific risks faced are described below:
(a)
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for doubtful debts, as disclosed in the
Statement of Financial Position and notes to the financial report. There are no trading terms in relation to
sundry receivables. No collateral is held as security over any financial assets.
There are no past due financial assets at 30 June 2012.
There were no impaired assets at 30 June 2012.
(b)
Liquidity risk
Liquidity risk arises from the possibility that Analytica Limited might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial
liabilities. The company manages this risk through the
following mechanisms:
preparing forward-looking cash flow analysis in relation to its operational, investing and financial activities
which are monitored on a monthly basis;
using derivatives that are only traded in highly liquid markets;
monitoring undrawn credit facilities;
obtaining funding from a variety of sources;
maintaining a reputable credit profile;
managing credit risk related to financial assets;
only investing surplus cash with major financial institutions; and
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
Typically, Analytica Limited ensures that
expenses for a period of 60 days.
it has sufficient cash on demand to meet expected operational
49
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
18 Financial Risk Management continued
The table below reflect an undiscounted contractual maturity analysis for financial liabilities.
Financial guarantee liabilities are treated as payable on demand since Analytica Limited has no control over the
timing of any potential settlement of the liabilities.
The timing of cash flows presented in the table to settle financial
liabilities reflects the earliest contractual
settlement dates and does not reflect management's expectations that banking facilities will be rolled forward.
The amounts disclosed in the table are the undiscounted contracted cash flows and therefore the balances in
the table may not equal the balances in the statement of financial position due to the effect of discounting.
Financial liability maturity analysis - Non-derivative
Within 1 Year
1 to 5 Years
Over 5 Years
Total
30 June
30 June
30 June
30 June
30 June
30 June
30 June
30 June
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
Financial liabilities due for payment
Bank overdrafts and loans
25
-
Trade and other payables
(excluding estimated annual
leave)
Borrowings (related parties)
Total contractual outflows
98,589
(90)
113,306
268,700
98,524
382,006
Financial assets – cash flows realisable
Cash and cash equivalents
1,213,820
1,342
Trade and other receivables
Held for trading
Total anticipated inflows
Net (outflow) infow on
financial instruments
162,363
270,695
62,683
658,169
1,438,866
930,206
1,340,342
548,199
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25
-
98,589
(90)
113,306
268,700
98,524
382,006
- 1,213,820
1,342
-
-
162,363
270,695
62,683
658,169
- 1,438,866
930,206
- 1,340,342
548,199
The timing of expected outflows is not expected to be materially different from contracted cashflows.
(c)
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices.
i)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial
liabilities recognised at the end of the
reporting period, whereby a future change in interest rates will affect future cash flows or the fair value of fixed
rate financial instruments.
50
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
18 Financial Risk Management continued
Interest rate risk sensitivity analysis
The following table illustrates sensitivities to the entity’s exposures to changes in interest rates. The table
indicates the impact on how profit and equity values reported at balance date would have been affected by
changes in the relevant risk variable that management considers to be reasonable possible.
These sensitivities assume that the movement in a particular variable is independent of other variables.
At 30 June 2012, the effect on profit and equity as a result of changes in the interest rate, with all other variables
remaining constant would be as follows:
Change in profit
- Increase in interest rate by 2%
- Decrease in interest rate by 2%
Change in equity
- Increase in interest rate by 2%
- Decrease in interest rate by 2%
Net fair values
30 June
30 June
2012
$
24,276
(24,276)
24,276
(24,276)
2011
$
(5,347)
5,347
(5,347)
5,347
The net fair values of financial assets and financial liabilities approximate their carrying value. Except for the
company’s investment in CBio shares, no financial assets and financial liabilities of the group are readily traded
on organised markets.
Embedded derivatives relating to convertible notes are valued using discounted cash flow models based on
interest rates existing at reporting date for similar types of convertible instruments. Loans and receivables due
and receivable beyond twelve months are carried at their present value which approximates net fair value. The
aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the
Statement of Financial Position and in the notes to and forming part of the financial report.
Financial instruments measured at fair value
The financial instruments recognised at fair value in the statement of financial position have been analysed and
classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements
between those whose fair value is based on. The fair value hierarchy consists of the following levels:
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
51
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
18 Financial Risk Management continued
2012
Financial assets:
Financial assets at fair value:
- listed investments
2011
Financial assets:
Financial assets at fair value:
- listed investments
Level 1
Level 2
Level 3
Total
$
$
$
$
62,683
658,169
-
-
-
-
62,683
658,169
Included within Level 1 of the hierarchy are listed investments which are valued based on quoted price.
This is the basis of Fair Value adjustment for CBio shares the only investment of the Company (note 8).
There were no transfers between levels during the current or prior periods.
19 Operating Segments
Segment information
Identification of reportable segments
The company has identified its operating segments based on the internal reports that are reviewed and used by the
Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of
resources.
The company is managed primarily on the basis of product category and service offerings as the diversification of
Analytica Limited's operations inherently have notably different risk profiles and performance assessment criteria.
Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to
have similar economic characteristics and are also similar with respect to the following:
the products sold and/or services provided by the segment;
the manufacturing process;
the type or class of customer for the products or services;
the distribution method; and
any external regulatory requirements.
Performance is measured based on segment profit before income tax as included in the internal financial reports.
52
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
19 Operating Segments continued
Types of products and services by reportable segment
i) Medical Devices
- AutoStart Burette
- Perineometer
Analytica's major released product is the AutoStart Burette. The AutoStart Burette infusion set automatically restarts
the delivery of
liquid or drug.
intravenous fluid once the burette has dispensed its predetermined amount of
Automatic restart of the IV fluid, once the drug is dispensed can provide enormous savings in nursing time during
and following a medication event, and reduces the risk of blood clots forming that may obstruct the intravenous
canula.
Analytica has licensed the AutoStart Burette and other burette intellectual property to Medical Australia (Formerly
BMDI Tuta) who are presently working to take these products into a number of markets worldwide and negotiate
supply for some major multinationals companies. The AutoStart Burette has a TGA ARTG entry, CE-marking, and
USFDA 510(k) 'approval'.
Analytica is also developing an innovative Perineometer device branded PeriCoach to assist women and their
clinicians in treatment of Stress Urinary Incontinence.
ii) Pharmaceuticals
In 2007, Analytica acquired a Naltrexone implant development company, Recovery Clinics Pty Ltd. The purchase
represents a significant milestone and one that will play a major role in shaping Analytica's future.
Naltrexone binds to the dopamine receptors and blocks the effects of alcohol and opiates (e.g. heroin) in the brain.
Naltrexone is used as a method to treat drug and alcohol addicted patients and in the case of drug addiction, is an
alternative to the use of the highly addictive methadone.
Naltrexone, in orally-administered tablet form, is currently used in Australia and is listed on the Pharmaceutical
Benefits Scheme for the treatment of alcoholism. However, orally-administered Naltrexone is not well accepted by
the patients and compliance is low compared with other treatments1.
Relapse is one of the biggest problems with conventional drug and alcohol treatments. The Analytica Naltrexone
implant seeks to greatly reduce the likelihood of relapse as the implant reduces the reliance on the patient to seek
and/or administer regular treatment. Doctors are requesting longer-acting treatments, to remove the daily routine
requirement of an oral Naltrexone pill.
Analytica's Naltrexone implant guarantees that the patient will receive their Naltrexone dose for the life of the
implant, and will not need to remember their treatment.
Naltrexone Implants are currently only available to patients in Australia under restricted conditions and none are
listed on the Australian Register of Therapeutic Goods. Analytica will develop its Naltrexone implant in accordance
with TGA requirements in order to have the implant listed on the ARTG and available to the wider population.
The development of Analytica's Naltrexone implant is in its infancy. The implants are currently being manufactured
by a specialist cGMP manufacturer in Melbourne, and have been used in initial animal trials. Further implant
development precedes planned pre-clinical and clinical studies. At the completion of the clinical study program, the
Company plans to apply for the Naltrexone implant's inclusion into the ARTG.
With obvious public health benefits, Analytica is investigating all possible forms of Government assistance at the
State and Federal levels, to further the Naltrexone research program.
53
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
19 Operating Segments continued
Types of products and services by reportable segment continued
iii) Corporate
The corporate segment includes all other operations including the administration, and associated listed public
company expenditure.
Basis of accounting for purposes of reporting by operating segments
(a)
Accounting policies adopted
Unless stated below, all amounts reported to the Board of Directors, being the chief operating decision maker
with respect to operating segments, are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of Analytica Limited.
Income tax expense
Income tax expense is calculated based on the segment operating net profit using a notional charge of 30%. The
effect of taxable or deductible temporary difference is not included for internal reporting purposes.
(b)
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable on
the basis of their nature and physical location.
(c)
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the
operations of the segment. Borrowings and tax liabilities are generally considered to relate to Analytica Limited
as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct
borrowings.
(d)
Geographical information
In presenting information on the basis of geographical segments, segment revenue is based on the geographical
location of customers whereas segment assets are based on the location of the assets.
Australia
2012
2011
Revenue
Non-current
assets
Revenue
Non-current
assets
194,705
90,563
272,878
678,337
54
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
19 Operating Segments continued
(e)
Segment performance
REVENUE
Sales
Grant revenue
Interest revenue
Total segment revenue
EXPENSE
Depreciation and amortisation
Interest expense
Other expense
Research and development
Total segment expense
Segment results
(f)
Segment assets
Segment assets
(g)
Segment liabilities
Segment liabilities
Medical Devices
Pharmaceuticals
Corporate and Other
Total
30 June
30 June
30 June
30 June
30 June
30 June
30 June
30 June
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
5,121
-
-
5,121
6,100
-
-
6,100
-
-
-
(909,929)
-
-
-
(367,084)
(909,929)
(367,084)
(904,808)
(360,984)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
157,572
32,013
189,585
-
261,449
5,330
266,779
5,121
157,572
32,013
194,706
6,100
261,449
5,330
272,879
-
-
-
(7,500)
(97,931)
(18,755)
(1,390,100)
-
(12,844)
(5,333)
(83,293)
-
(97,931)
(18,755)
(1,390,100)
(909,929)
(12,844)
(5,333)
(83,293)
(374,584)
(7,500)
(1,506,786)
(101,470)
(2,416,715)
(476,054)
(7,500)
(1,317,200)
165,309
(2,222,009)
(203,175)
-
-
1,486,412
989,346
1,486,412
989,346
(172,737)
(441,148)
(172,737)
(441,148)
55
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
20 Interests of Key Management Personnel
The totals of remuneration paid to the key management personnel of Analytica Limited during the year are as follows:
Short-term employee benefits
Termination benefits
30 June
30 June
2012
2011
$
420,699
-
420,699
$
360,823
4,327
365,150
The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to
each member of Analytica Limited's key management personnel for the year ended 30 June 2012.
Key management personnel options and rights holdings
No options were provided as remuneration to key management personnel for the years ended 30 June 2012 and 30
June 2011.
Key management personnel shareholdings
The number of ordinary shares in Analytica Limited held by each key management person of Analytica Limited during
the year is as follows:
Directors
30 June 2012
Dr Michael Monsour
MPAMM Pty Ltd
MP Monsour Medical Practice Pty Ltd
Mrs Anne Monsour
Total
Mr. Ross Mangelsdorf
RM & JM Mangelsdorf
Tambien Pty Ltd
Manowe Pty Ltd
Other related parties
Total
Mr. Warren Brooks
W Brooks Investments Pty Ltd
Total
Balance at
beginning of
year
On exercise
of options
Other
changes
during the
year
Balance at
end of year
555,066
5,400,972
7,691,790
11,669,277
25,317,105
10,000
10,000
4,598,367
-
31,000
4,649,367
5,516,665
16,706,819
22,223,484
52,189,956
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
185,022
25,743,827
2,563,930
3,889,759
740,088
31,144,799
10,255,720
15,559,036
32,382,538
57,699,643
3,333
3,333
6,570,627
4,180,585
1,060,332
13,333
13,333
11,168,994
4,180,585
1,091,332
11,818,190
16,467,577
(5,516,665)
22,500,170
-
39,206,989
16,983,505
39,206,989
61,184,253 113,374,209
Other changes during the year:
Increases are due to issued capital in the non-renounceable issue allotment on 16 December 2011 and/or 12 March
2012. With the exception of the securities transfer for Mr. Warren Brooks of 5,516,665 shares to W Brooks
Investments Pty Ltd.
56
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
20
Interests of Key Management Personnel continued
Directors
30 June 2011
Dr Michael Monsour
MPAMM Pty Ltd
MP Monsour Medical Practice Pty Ltd
Mrs Anne Monsour
Total
Mr. Ross Mangelsdorf
RM & JM Mangelsdorf
Tambien Pty Ltd
Other related parties
Total
Mr. Warren Brooks
W Brooks Investments Pty Ltd
Total
Balance at
beginning of
year
On exercise
of options
Other
changes
during the
year
Balance at
end of year
555,066
5,400,972
7,691,790
11,669,277
25,317,105
10,000
10,000
4,598,367
31,000
4,649,367
5,516,665
16,706,819
22,223,484
52,189,956
i
i
i
i
i
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
555,066
5,400,972
7,691,790
11,669,277
25,317,105
10,000
10,000
4,598,367
31,000
4,649,367
5,516,665
16,706,819
22,223,484
52,189,956
i) Note correction to comparative information of key management personnel shareholdings to 52,189,956 as at 30
June 2011, increased from 18,256,195 as disclosed in the 2011 annual financial statements. This is due to the
inclusion of Mr W Brooks as director and other related parties of Dr M Monsour and Mr R Mangelsdorf, previously
omitted.
Key management personnel share options
The number of options in Analytica Limited held by each key management person of Analytica Limited during the year
is as follows:
Unlisted Options
30 June 2012
Directors
Options Expiring 30/06/12 at $0.05
Dr Michael Monsour
Mr Ross Mangelsdorf
Balance at
beginning of
year
On exercise
of options
Other
changes
during the
year
Balance at
end of year
10,000,000
3,000,000
13,000,000
-
-
-
(10,000,000)
(3,000,000)
(13,000,000)
-
-
-
57
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
20
Interests of Key Management Personnel continued
Listed Options
ALTO Options Expiring 06/09/12 at $0.04
30 June 2012
Dr Michael Monsour
MPAMM Pty Ltd
MP Monsour Medical Practice Pty Ltd
Mrs Anne Monsour
Total
Mr. Ross Mangelsdorf
RM & JM Mangelsdorf
Tambien Pty Ltd
Manowe Pty Ltd
Other related parties
Total
Mr. Warren Brooks
W Brooks Investments Pty Ltd
Total
Total ALTO Options Expiring 06/09/12 at $0.04
Listed Options
ALTOA options Expiring 06/06/13 at $0.08
30 June 2012
Dr Michael Monsour
MPAMM Pty Ltd
MP Monsour Medical Practice Pty Ltd
Mrs Anne Monsour
Total
Mr. Ross Mangelsdorf
RM & JM Mangelsdorf
Tambien Pty Ltd
Manowe Pty Ltd
Other related parties
Total
Mr. Warren Brooks
W Brooks Investments Pty Ltd
Total
Total ALTOA Options Expiring 06/06/13 at $0.08
Balance at
beginning of
year
On exercise
of options
Other
changes
during the
year
Balance at
end of year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
185,022
25,743,827
2,563,930
3,889,759
185,022
25,743,827
2,563,930
3,889,759
32,382,538
32,382,538
3,333
3,333
6,570,627
4,180,585
1,060,332
3,333
3,333
6,570,627
4,180,585
1,060,332
11,818,210
11,818,210
16,983,505
16,983,505
16,983,505
16,983,505
61,184,253
61,184,253
185,022
25,743,827
2,563,930
3,889,759
185,022
25,743,827
2,563,930
3,889,759
32,382,538
32,382,538
3,333
3,333
6,570,627
4,180,585
1,060,332
3,333
3,333
6,570,627
4,180,585
1,060,332
11,818,210
11,818,210
16,983,505
16,983,505
16,983,505
16,983,505
61,184,253
61,184,253
58
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
20
Interests of Key Management Personnel continued
Unlisted Options
30 June 2011
Directors
Options Expiring 30/06/12 at $0.05
Dr Michael Monsour
Mr Ross Mangelsdorf
Balance at
beginning of
year
On exercise
of options
Other
changes
during the
year
Balance at
end of year
10,000,000
3,000,000
13,000,000
-
-
-
-
-
-
10,000,000
3,000,000
13,000,000
Other key management personnel transactions
For details of other transactions with key management personnel, refer to Note 25: Related Party Transactions.
21 Auditors' Remuneration
Remuneration of the auditor of the company, Bentleys Brisbane Partnership
Chartered Accountants, for:
- auditing or reviewing the financial statements
- other services
30 June
30 June
2012
$
2011
$
35,004
-
35,004
35,004
9,100
44,104
Other services includes the provision for assistance with financial statement note disclosures and taxation assistance
where (if) required.
22 Controlled Entities
(a)
Controlled entities
Percentage
Owned (%)*
Percentage
Owned (%)*
2012
2011
Subsidiaries:
Graesser Pty Ltd
Golden Top Trading Limited
Voluntarily deregistered as
at 30 June 2011
Voluntarily deregistered as
at 30 June 2011
0
0
100
45
* Percentage of voting power is in proportion to ownership
59
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
23 Associated Companies
Interests are held in the following associated companies:
Unlisted:
Graesser Pty Ltd
Golden Top Trading Limited
Foot-
note
i
i
Total assets
Total liabilities
Profit
Ownership interest
Carrying amount of
investment
30 June
30 June
30 June
30 June
30 June
30 June
30 June
30 June
30 June
30 June
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
$
$
$
$
$
$
%
%
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
45.00
-
-
-
-
(i) Voluntarily deregistered as at 30 June 2011
24 Contingent Liabilities and Contingent Assets
In the opinion of the Directors, the company did not have any contingencies at 30 June 2012 (2011:Nil).
25 Related Party Transactions
Related Parties
(a)
The company's main related parties are as follows:
i)
Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity,
directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key
management personnel.
For details of remuneration disclosures relating to key management personnel, refer to Note 20: Interests of Key
Management Personnel (KMP) and the remuneration report in the Directors' Report.
Other transactions with KMP and their related entities are shown below.
Loan facility to the company up to $400,000 provided by Dr Monsour. Refer note 12(a) for further information.
ii) Entities subject to significant influence by the company:
An entity which has the power to participate in the financial and operating policy decisions of an entity, but does
not have control over those policies, is an entity which holds significant influence. Significant influence may be
gained by share ownership, statute or agreement.
For details of interests held in associated companies, refer to Note 23: Associated Companies.
60
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
25 Related Party Transactions continued
(b)
Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
The following transactions occurred with related parties:
During the year accounting services were provided to the company by Avance Chartered Accountants, a firm
which director Mr. Ross Mangelsdorf is a partner. Fees of $42,000 (2011: $49,500) were charged for these
services to 30 June 2012.
(c)
Balances to related parties
CURRENT
Amount payable to:
- key management personnel related entities
26 Cash Flow Information
(a)
Reconciliation of result for the year to cashflows from operating activities
Reconciliation of net income to net cash provided by operating activities:
Profit for the year
Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit:
- amortisation
- depreciation
- fair value adjustment CBio Limited
- net gain on disposal of property, plant and equipment
Changes in assets and liabilities, net of the effects of purchase and disposal of
subsidiaries:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in prepayments
- (increase)/decrease in inventories
- increase/(decrease) in trade and other payables
- increase/(decrease) in provisions
- increase/(decrease) in employee benefits
Cashflow from operations
30 June
30 June
2012
$
2011
$
(90)
268,700
30 June
30 June
2012
$
2011
$
(2,222,009)
(203,176)
1,057
6,873
595,486
(241)
108,331
3,067
16,238
(14,715)
2,054
20,598
-
12,844
(381,320)
-
(208,999)
1,538
5,306
87,936
(2,057)
3,459
(1,483,261)
(684,469)
61
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
27 Share-based Payments
At 30 June 2012 Analytica Limited has no share-based payment schemes.
i)
The following share-based payment remuneration arrangements existed at 30 June 2011:
On 26 November 2008, 33,000,000 options were granted under the Analytica Limited Employee Share Option Plan
to take up ordinary shares at an exercise price of $0.05 each. The options vest immediately and must be exercised
before 30 June 2012. All options granted under the Analytica Limited Employee Share Option Plan are for ordinary
shares in Analytica Limited, which confer a right of one ordinary share for every option held. The options hold no
voting or dividends rights and are not transferable. All options exercised are required to be settled for cash.
The total expense relating to share based payment transactions was $nil (2011: nil).
For details of options issued to key management personnel, refer to Note 20 - Interests of Key Management
Personnel.
A summary of the company options issued is as follows:
Grant Date
Expiry Date
26 November 2008 30 June 2012
22 December 2011 6 September 2012
22 December 2011 6 June 2013
9 March 2012
6 September 2012
9 March 2012
6 June 2013
Exercise
price
Start of the
year
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
Balance at
the end of
the year
Vested
and
exercisable
at the end
of the year
0.05 33,000,000
0.04
0.08
0.04
0.08
-
-
-
-
-
94,905,143
94,905,143
43,094,857
43,094,857
-
-
-
-
-
(33,000,000)
-
-
-
-
-
94,905,143
94,905,143
43,094,857
43,094,857
-
-
-
-
-
(b)
Options outstanding
Listed options outstanding at 30 June 2012 consisted:
- 138,000,000 ALTO options with a remaining contractual life of 2 months and 1 week, exercisable at $0.04;
- 138,000,000 ALTOA options with a remaining contractual life of 1 year, exercisable at $0.08.
listed options are exercised in accordance with their terms of issue, 276,000 ordinary shares would be
If all
issued (2011: 33,000,000) and contributed equity would increase by $16.56m (2011:$1.65m).
The unlisted options (33,000,000) expired on 30 June 2012. There were no options exercised during the year
ended, with the 33,000,000 options expiring on 30 June 2012 forfeited.
28 Events after the end of the Reporting Period
No matters or circumstances have arisen since the end of the year which significantly affected or may significantly
affect the operations of the company, the results of those operations, or the state of affairs of the company in future
financial years.
62
Analytica Limited
Notes to the Financial Statements
For the Year Ended 30 June 2012
29 Company Details
The registered office of the company is:
Analytica Limited
320 Adelaide Street
Brisbane QLD 4000
The postal address for the registered office of the company is:
Analytica Limited
GPO Box 670
Brisbane QLD 4001
The principal place of business is:
320 Adelaide Street
Brisbane QLD 4000
Telephone (07) 3278 1950
63
Bentleys
THINKING AHEAD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Analytica Limited which comprises the
statement of financial position as at 30 June 2012, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year ended on that date, a
summary of significant accounting policies, other explanatory notes and the directors' declaration
Di recto rs' Responsiöi lity for the F inancia I Repo rt
The directors of the company are responsible for the preparation and fair presentation of the financial
report in accordance with Australian Accounting Standards (including the Australian Accounting
lnterpretations) and the Corporations Act 2001. This responsibility includes establishing and
maintaining internal control relevant to the preparation and fair presentation of the financial report that
is free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances. ln
Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements, that compliance with the Australian equivalents to lnternational Financial
Reporting Standards ensures that the financial report, comprising the financial statements and notes,
complies with lnternational Financial Reporting Standards.
Auditor's Responsibil ity
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the
audit to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
ln making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial report in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
lndependence
ln conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Kreston lnternational
ts-_ a#¡.ddhd@h..dütu
A member of Bentleys, an assoqation of tndependenl accountlng firms rn Australia fhe member f.ms of
the Bentleys associatton âre affil¡ated only and not rn part¡ership Llability limited by â scheme approved
under Professional Slandards Legtslatlon
Accountants
Auditors
Advisors
Bentleys
THINKING AHEAD
Opinion
ln our opinion
a)
the financial report of Analytica Limited is in accordance with lhe Coryorations Act 2001,
including:
(i)
giving a true and fair view of the company's financial position as at 30 June 2012 and of
its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting
lnterpretations) and lhe Corporations Regulations 2001 ; and
b)
the financial report also complies with the lnternational Financial Reporting Standards as
disclosed in Note 1.
Emphasis of Matter
Without modifying our opinion, we draw attention to Note I in the financial report, which indicates that
the company will be required to raise additional funds to meet forecast cash needs. These conditions,
along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that
may cast significant doubt about the ability to continue as a going concern and therefore, the
company may be unable to realise its assets and discharge its liabilities in the normal course of
business.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 16 to 20 of the directors'report for the
year ended 30 June 2012. fhe directors of the company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act
2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Opinion
ln our opinion the Remuneration Report of Analytica Limited for the year ended 30 June 2012
complies with section 3004 of the Coryorations Act 2001.
ó-,f(ey5
Bentleys Brisbane Partnership
Chartered Accountants
+
-\
Stewa
Partner
glas
Brisbane
28 September 2012
ts-__
Kreston lnternational
^tHffidhdFer.@tu
A member of Bentleys, an assocrahon ol rndependent accountrng firms rn Australia The member firms of
the Bentleys assocratron are aifilated only and not ln partnershrp Lrabi]dy lmûed by a scheme approved
under Professro^al Standards Legrslation
Accountants
Auditors
Advisors
Analytica Limited
Additional Information for Listed Public Companies
30 June 2012
ASX Additional Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.
This information is effective as at 24 August 2012.
Substantial shareholders
The number of substantial shareholders and their associates are set out below:
Shareholders
W Brooks Investments Pty Ltd
MPAMM Pty Ltd
Voting rights
Ordinary Shares
Number of shares
39,206,989
31,144,799
On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Options
No voting rights.
Distribution of equity security holders
Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,000 and over
Total
Ordinary shares
Shares
Options
382,943
679,982
1,161,663
40,059,751
517,601,545276,000,000
559,885,884276,000,000
The number of security investors holding less than a marketable parcel of 21,740 securities ($0.23 on 23 August 2012) is
1,398 and they hold 5,834,315 securities.
Twenty largest shareholders
W BROOKS INVESTMENTS PTY LTD
M P A M M PTY LTD
IGNATIUS LIP PTY LTD
MRS ANNE MONSOUR
TAMBIEN PTY LTD
M P MONSOUR MEDICAL PRACTICE PTY LTD
BASILDENE PTY LTD
Ordinary shares
Number held
% of issued
shares
39,206,989
31,144,799
25,113,690
15,559,036
11,168,994
7.00
5.56
4.49
2.78
1.99
10,255,720
1.83
8,517,933
1.52
The accompanying notes form part of these financial statements.
67
Analytica Limited
Additional Information for Listed Public Companies
30 June 2012
MRS SALLY DIANA YEATES
BUSHY LANE PROJECTS PTY LTD
DALROSE PTY LTD
JAYEM PTY LTD
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
MRS SABINA LIP
BH HAAGSMA
MR VICTOR PEREIRA
MR MATTHEW CRITCHLEY
MANOWE PTY LTD
MRS MARGUERITE MARY GALLAGHER
MR SCOTT JAMES BURNS
MRS NATALIE LORIMER
TOTAL FOR TOP 20:
Twenty largest option holders
Security: ALTO - OPT EXP 6/09/12 @$0.04
M P A M M PTY LTD
W BROOKS INVESTMENTS PTY LTD
IGNATIUS LIP PTY LTD
FORTUNE 20 PTY LTD
BUSHY LANE PROJECTS PTY LTD
MRS ANNE MONSOUR
TAMBIEN PTY LTD
MR MATTHEW CRITCHLEY
MR DAVID WILSON
TAMBIEN PTY LTD
MANOWE PTY LTD
DALROSE PTY LTD
M P MONSOUR MEDICAL PRACTICE PTY LTD
BASILDENE PTY LTD
FITZWILL SUPERANNUATION PTY LTD
MR JOHN THOMAS GAHAN
MRS SALLY DIANA YEATES
MR TIMOTHY WILLIAM FITZPATRICK
MR GORAN KARAMESINOSKI
JAYEM PTY LTD
5,814,465
5,642,814
5,627,918
5,575,758
5,221,471
5,200,000
5,100,794
4,909,097
4,500,000
1.04
1.01
1.01
1.00
0.93
0.93
0.91
0.88
0.80
4,180,585
0.75
4,000,000
3,608,120
3,505,000
0.71
0.64
0.63
203,853,183
36.41
Options
Number held
% of issued
options
25,743,827
18.65
16,983,505
7,500,000
6,300,000
5,059,361
3,889,759
3,635,624
3,000,000
2,990,000
2,888,920
2,840,585
2,727,252
2,563,930
2,408,333
2,105,944
2,000,000
1,453,616
1,423,591
1,400,000
1,393,939
12.31
5.43
4.57
3.67
2.82
2.63
2.17
2.17
2.09
2.06
1.98
1.86
1.75
1.53
1.45
1.05
1.03
1.01
1.01
98,308,186
71.24
The accompanying notes form part of these financial statements.
68
Analytica Limited
Additional Information for Listed Public Companies
30 June 2012
Twenty largest option holders continued
Security: ALTOA - OPT EXP 6/6/2013 @$0.08
M P A M M PTY LTD
W BROOKS INVESTMENTS PTY LTD
BUSHY LANE PROJECTS PTY LTD
IGNATIUS LIP PTY LTD
MRS ANNE MONSOUR
TAMBIEN PTY LTD
TAMBIEN PTY LTD
MANOWE PTY LTD
DALROSE PTY LTD
M P MONSOUR MEDICAL PRACTICE PTY LTD
BASILDENE PTY LTD
MITCHELL'S INDEPENDENT TRADERS PTY LTD
MRS SIGRID ARUNDEL
MR ADAM ROGERS + MRS CATHERINE ROGERS
FITZWILL SUPERANNUATION PTY LTD
MRS SALLY DIANA YEATES
MR TIMOTHY WILLIAM FITZPATRICK
JAYEM PTY LTD
MR RONALD CRISTIAAN MONNIER + MS KRISTA ANNE CAVALLARO
MR VICTOR PEREIRA
Options
Number held
% of issued
options
25,743,827
18.65
16,983,505
9,692,694
7,500,000
3,889,759
12.31
7.02
5.43
2.82
3,635,624
2.63
2,888,920
2.09
2,840,585
2.06
2,727,252
1.98
2,563,930
1.86
2,408,333
1.75
2,316,580
1.68
2,300,000
1.67
2,250,000
1.63
2,105,944
1,453,616
1,423,591
1,393,939
1,250,000
1,227,274
1.53
1.05
1.03
1.01
0.91
0.89
ALTOA - OPTIONS TOTAL TOP 20
96,595,373
70.00
Securities exchange
All the ordinary shares of the Company are listed on the Australian Securities Exchange (ASX) under the share code "ALT".
The accompanying notes form part of these financial statements.
69
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