BCAL DIAGNOSTICS LIMITED
ABN 51 142 051 223
Annual Report
for the Year Ended 30 June 2019
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
2019 Financial Report
Table of Contents
Directors' Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report to the Members
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page
2
7
8
9
10
11
12
28
29
1
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Directors' Report
Your directors present their report together with the financial statements on BCAL Diagnostics Limited (“the
Company” or “BCAL Diagnostics”) for the year ended 30 June 2019.
Directors
The following persons were directors of BCAL Diagnostics Limited during the financial year or at the date of this
report:
Jayne Shaw
Ronald Phillips
Jonathan Trollip
Executive Chair
Non-executive Director
Non-executive Director (Appointed 23 December 2020)
Information on Directors as at Report Date
Jayne Shaw (Executive Chair)
Ms Jayne Shaw was appointed on 15 February 2010.
Trained as a Registered Nurse in the UK, on arrival in Australia Jayne became a Director of Nursing and Chief
Executive Officer of two private hospitals. Following this, she established an Australian and international
consulting business which was sold to Healthsouth a large US Healthcare company.
Ms Shaw then became the Co-founder of Vision Group, an Opthalmic Doctor equity consolidation model that
was successfully listed on the ASX. Ms Shaw has been a member of a number of private healthcare boards
involved with specialist consolidation including cardiology, orthopaedics, and women’s health, and continued to
work with private equity firms on local and International Healthcare transactions.
Ms Shaw, together with Mr Ronald Phillips, was a co-owner of Sydney Breast Clinic and a co-founder of BCAL
Diagnostics. Current Board positions are The Woolcock Research Institute, The Citadel Group, Corum
Group (ASX: COO) and Mabel Technologies.
Shares held as at date of this report 1,055,084.
Unlisted options held as at date of report, 77,406 exercisable at $1.50 per shares with expiry 23 November 2023.
Ronald Phillips AO (Non-executive Director)
Mr Phillips was appointed on 15 February 2010.
Following 15 years in the NSW Parliament which included serving as Minister for Health and Deputy Leader of
the Opposition, Mr Phillips developed a successful consulting business in the Health and Aged Care Industry.
His business interests included co-owner and Managing Director of Sydney Breast Clinic which he sold to
Healthscope. He recently retired as Chair of the Sydney Local Health District and as Director of Westmead IVF.
Shares held as at date of this report 988,417.
Unlisted options held as at date of report, 77,406 exercisable at $1.50 per shares with expiry 23 November 2023.
Jonathan Trollip (Non-executive Director)
Mr Trollip was appointed on 23 December 2020.
Professional non-executive director. Mr Trollip is a globally experienced Director with over 30 years of
commercial, corporate, governance and legal and transactional expertise.
2
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Directors' Report (Continued)
He is currently non-executive Chairman of ASX listed Global Value Fund Limited, Future Generation Investment
Company Limited, Antipodes Global Investment Company Limited, Plato Income Maximiser Limited, Spicers
Limited and Spheria Emerging Companies Limited and a non-executive director of ASX listed Propel Funeral
Partner Limited and LSE listed Kore Potash.
Mr Trollip has postgraduate degrees in economics and law and is a Fellow of the Australian Institute of Company
Directors. He has a keen interest in not-for-profit sector and is involved at Board level and a contributor with
various not for profit organisations in Australia and Southern Africa in the education sector and in wildlife
conservation.
Shares held as at date of this report 120,460.
Unlisted options held as at date of report, 44,232 exercisable at $1.50 per shares with expiry 23 November 2023.
Company Secretary
Guy Robertson, B. Com (Hons), CA
Mr Robertson was appointed as Company Secretary and Chief Financial Officer on 17 March 2021.
Mr Robertson has held a number of senior roles within the Jardine Matheson group of companies in Australia
and Hong Kong including General Manager of Finance for Franklins Supermarkets in Australia, Chief Operating
Officer and Chief Financial Officer for Colliers Jardine Asia Pacific based in Hong Kong and Chief Financial Officer
and Managing Director (NSW) for Jardine Lloyd Thompson.
Mr Robertson has significant experience as a Company Secretary and Director of ASX listed companies. He is
currently a director of Hastings Technology Metals Ltd (ASX:HAS) and Metal Bank Limited (ASX:MBK).
Principal Activities and Strategy
The Company’s core activity is the development of a novel blood screening test to improve the early diagnosis
and monitoring of breast cancer that is safe, cost effective, accurate and available to all women regardless of
age, race and geographic location.
Dividends
No dividends were paid to members during the financial year (2018: $Nil).
Review of Operations
Ongoing Activities
The Company is continuing the research and development of a novel blood screening test to improve the early
diagnosis and monitoring of breast cancer that is safe, cost effective, accurate and available to all women
regardless of age, race and geographic location.
The Company is developing an in vitro diagnostic test (IVD) that confirms a fingerprint of lipid biomarkers
extracted from extracellular vesicles (EVs) from a patient's plasma or blood sample to diagnose the presence of
cancer cells in a patient’s body.
3438-5134-5428, v. 1
3
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Directors' Report (Continued)
The Company’s lead product has completed two major clinical studies to validate a series of lipid biomarkers
showing results that exceed both sensitivity and selectivity of current incumbent diagnostic tools for breast
cancer on market and in development.
The Company is seeking Priority Evaluation Status for an expedited review of its pivotal trial under the regulation
of the Australian Therapeutic Goods Administration (TGA).
Operating Results
The net loss after tax for the year was $429,957 (2018: loss $467,632).
Shareholder equity increased to $488,196 (2018: ($81,847)) reflecting the result for the year, partially offset by
a capital raise of $1,000,000.
Significant Changes in the State of Affairs
There were no significant changes in the state of affairs of the Company other than as outlined in this report.
Matters Subsequent to Balance Date
Subsequent to balance date the Company has successfully raised funds. In the 2020 financial year the company
issued 336,692 shares at $1.50 per share, raising $505,037 in August 2019 and a further $300,003 by issuance
of 200,002 convertible notes in June 2020. Subsequent to 30 June 2020, the company raised $300,003 and
issued 200,002 shares at $1.50 per share on the conversion of convertible notes and issued a further 1,494,914
shares at $2.95 per share, in a placement raising $4,409,996, in January 2021.
In addition on 20 November 2019 the Company issued 221,158 options with an exercise price $1.50 and an
expiry date of 20 November 2029, and on 23 November 2020 issued 221,160 options with an exercise price of
$1.50 and an expiry date of 23 November 2023.
The company converted from a private company to an unlisted public company on 5 February 2021.
Other than as outlined above, no matter or circumstance has arisen since 30 June 2019 that has significantly
affected, or may significantly affect:
a) The Company’s operations in future financial years; or
b) The results of those operations in future financial years; or
c) The Company’s state of affairs in future financial years.
Likely Developments and Expected Results of Operations
Information on likely developments in the operations of the Company and the expected results on operations
have not been included in the financial statements because the directors believe it could potentially result in
unreasonable prejudice to the Company.
Environmental regulation
The Company’s operations are not subject to any significant environmental regulation under either
Commonwealth or State legislation. The Board considers that adequate systems are in place to manage the
Company's obligations and is not aware of any breach of environmental requirements as they relate to the
Company.
4
3438-5134-5428, v. 1
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Directors' Report (Continued)
Options on issue
At the date of this report the Company had the following unlisted options on issue:
Date of grant
20 November 2019
30 January 2020
23 November 2020
Number
132,695
88,463
221,160
Exercise price
$1.50
$1.50
$1.50
Expiry date
20 November 2029
20 November 2029
23 November 2023
There were no options on issue as at 30 June 2019.
Indemnification and Insurance of Officers
During the financial year the Company paid premiums in respect of a contract insuring Directors, Chief Financial
Officers and Company Secretary of BCAL Diagnostics and Executive Officers against a liability incurred to the
extent permitted by the Corporations Act, 2001. Further disclosure required under section 300(9) of the
Corporations Act 2001 is prohibited under the terms of the insurance contract.
Indemnification and Insurance of Auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of
the Company or any related entity.
Shares Issued on the Exercise of Options
No shares were issued during the year on the exercise of options.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose
of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
3438-5134-5428, v. 1
5
Directors' Report (Continued)
Meetings of directors
The numbers of meetings of the Company’s board of directors held during the year ended 30 June 2019, and
the numbers of meetings attended by each director were:
Full Meetings of Directors
Ms Jayne Shaw
Mr Ronald Phillips
Mr Jonathan Trollip
Auditor's independence declaration
Eligible to
attend
Attended
12
12
-
12
12
-
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001
is set out on page 7.
Auditor
Pitcher Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is approved in accordance with a resolution of directors.
Jayne Shaw
Executive Chair
25 March 2021
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
3438-5134-5428, v. 1
6
Level 16, Tower 2 Darling Park
201 Sussex Street
Sydney NSW 2000
Postal Address
GPO Box 1615
Sydney NSW 2001
p. +612 9221 2099
e. sydneypartners@pitcher.com.au
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF BCAL DIAGNOSTICS LIMITED
ABN 51 142 051 223
In relation to the independent audit for the year ended 30 June 2019, to the best of my
knowledge and belief there have been:
(i)
(ii)
no contraventions of the auditor independence requirements of the Corporations
Act 2001; and
no contraventions of APES 110 Code of Ethics for Professional Accountants
(including Independence Standards).
S M Whiddett
Partner
Pitcher Partners
Sydney
30 March 2021
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Adelaide Brisbane Melbourne Newcastle Perth Sydney
7
Pitcher Partners is an association of independent firms.
An independent New South Wales Partnership. ABN 35 415 759 892. Liability limited by a scheme approved under Professional Standards Legislation.
Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities
pitcher.com.au
BCAL Diagnostics Limited
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2019
Revenue from continuing operations
Income
Expenses
Research and development
Personnel costs
Superannuation
Marketing
Consulting fees
Legal fees
General and administration
Depreciation
Borrowing costs
Loss before income tax
Income tax
Other comprehensive income for the year
Total comprehensive loss for the year
Loss is attributable to:
Members of BCAL Diagnostics Limited
Earnings per share
From continuing operations
- Basic loss per share
- Diluted loss per share
Notes
3
2019
$
2018
$
258,244
242,288
4
(205,385)
(303,832)
(33,423)
-
(74,736)
(3,987)
(58,190)
(3,552)
(5,096)
(429,957)
-
-
(429,957)
(251,901)
(268,459)
(23,990)
(1,620)
(67,920)
(11,823)
(64,535)
(14,040)
(5,632)
(467,632)
-
-
(467,632)
(429,957)
(467,632)
Cents
10.9
10.9
Cents
17.8
17.8
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
8
BCAL Diagnostics Limited
Statement of Financial Position
As at 30 June 2019
ASSETS
Current Assets
Cash and cash equivalents
Tax receivables
Total Current Assets
Non-Current Assets
Plant and equipment
Other financial assets
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Convertible notes
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Contributed equity
Accumulated losses
Capital and reserves attributable to owners of BCAL Diagnostics
Limited
Equity
Notes
2019
$
2018
$
5
6
7
8
9
10
11
12
13
276,644
259,312
535,956
3,920
463
4,383
540,339
33,440
18,703
52,143
-
-
-
488,196
309,127
250,359
559,486
-
530
530
560,016
112,802
29,061
141,863
500,000
500,000
641,863
(81,847)
4,434,543
(3,946,347)
3,434,543
(3,516,390)
488,196
488,196
(81,847)
(81,847)
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
9
BCAL Diagnostics Limited
Statement of Changes in Equity
For the year ended 30 June 2019
Contributed
equity
$
Accumulated
losses
$
Total
$
3,434,543
(3,516,390)
(81,847)
-
1,000,000
4,434,543
(429,957)
-
(3,946,347)
(429,957)
1,000,000
488,196
Contributed
equity
$
Accumulated
losses
$
Total
$
3,434,543
(3,048,758)
385,785
-
3,434,543
(467,632)
(3,516,390)
(467,632)
(81,847)
2019
At 30 June 2018
Total comprehensive
Loss for the year
Share issue
At 30 June 2019
2018
At 30 June 2017
Total comprehensive
loss for the year
At 30 June 2018
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
10
BCAL Diagnostics Limited
Statement of Cash Flows
For the year ended 30 June 2019
Cash flows from operating activities
Payments to suppliers and employees
Government grants received
Research and development tax offset
Interest received
Interest paid
Net cash outflow from operating activities
Cash flow from investing activities
Purchase of plant and equipment
Security deposit
Net cash outflow from investing activities
Cash flows from financing activities
Loans received
Proceeds from share issue
Net cash inflow from financing activities
Notes
2019
$
2018
$
(757,146)
(709,919)
15
241,154
1,709
(10,728)
(525,011)
(7,472)
(7,472)
-
500,000
500,000
237,972
1,133
-
(470,814)
(14,030)
(86)
(14,116)
500,000
-
500,000
Net (decrease)/ increase in cash and cash equivalents
(32,483)
15,070
Cash and cash equivalents at the beginning of the financial
year
Cash and cash equivalents at end of the year
5
309,127
276,644
294,057
309,127
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
3438-5134-5428, v. 1
11
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2020
1
Summary of significant accounting policies
These financial statements and notes represent those of BCAL Diagnostics Limited (the “Company”). The financial
statements were authorised for issue, in accordance with a resolution of directors, on 22 March 2021. The directors
have the power to amend and reissue the financial statements.
(a)
Basis of preparation
Reporting Entity
BCAL Diagnostics Limited (formerly BCAL Diagnostics Pty Limited) is a company limited by shares, incorporated and
domiciled in Australia. The Company became an unlisted public company on 5 February 2021.
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standard Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial
report containing relevant and reliable information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International
Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are
presented below. They have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, except for selected
financial assets for which the fair value basis of accounting has been applied.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company’s accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to
the financial statements are disclosed in Note 2.
(b)
Going concern
The financial statements have been prepared on a going concern basis which contemplates the realisation of assets
and the settlement of liabilities in the normal course of business.
As disclosed in the financial statements, the Company incurred losses of $429,957, had net cash outflows from
operating activities of $525,011, net cash outflows from investing activities of $7,472, and net cash inflows from
financing activities of $500,000 for the year ended 30 June 2019.
Based on the Company’s cash flow forecast the Company will require additional funding in the next 12 months to
enable the Company to continue its normal business activities and to ensure the realisation of assets in the ordinary
course of business and extinguishment of liabilities as and when they fall due.
3438-5134-5428, v. 1
12
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1
Summary of significant accounting policies (continued)
(b) Going concern (continued)
The Company had net working capital as at 30 June 2019 of approximately $0.5 million, and based on the factors
outlined below the Directors believe that it is reasonably foreseeable that the Company will continue as a going
concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report:
•
The Company has been successful in raising approximately $0.5 million in equity (before costs) during the
year and a further $4.8 million (before costs) in equity subsequent to year end;
The Company is planning an Initial Public Offering to further fund its research, development and
commercialisation programme, which the Directors believe will be successful;
The Company has the ability to fund the research and development tax offset if required; and
The Company can tailor the timing of the research and development spend to match the cash availability.
•
•
•
As a result the Directors believe that the Company will be able to continue as a going concern and that it is
appropriate to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classifications of recorded assets
and liabilities that might be necessary if the Company do not continue as a going concern.
(c) Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the
same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is
responsible for the allocation of resources to operating segments and assessing their performance.
(d) Foreign currency translation
(i)
Functional and presentation currency
The functional and presentation currency of the Company is Australian dollars.
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange ruling at the end of the reporting period. Foreign exchange gains and losses resulting from settling foreign
currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities, are
recognised in profit or loss, except when they are deferred in other comprehensive income as qualifying cash flow
hedges or where they relate to differences on foreign currency borrowings that provide a hedge against a net
investment in a foreign entity.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the
date when fair value was determined.
3438-5134-5428, v. 1
13
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1.
Summary of significant accounting policies (continued)
(d) Foreign currency translation (continued)
Items included in the financial statements of the Company’s operations are measured using the currency of the
primary economic environment in which it operates (‘the functional currency’). The financial statements are
presented in Australian dollars, which is the Company’s functional and presentation currency.
(ii)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date
of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
(e)
Revenue recognition
Revenue from contracts with customers
The Company currently has no revenue from the sale of goods or services.
Interest income
Interest income is recognised as interest accrues using the effective interest method. The effective interest method
uses the effective interest rates which is the rate that exactly discounts the estimated future cash receipts over the
expected future life of the financial asset.
When a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the
estimated future cash flow discounted at the original effective interest rate of the instrument, and continues
unwinding the discount as interest income. Interest income on impaired loans is recognised using the original
effective interest rate.
Research and Development Tax Offset
Research and Development Tax Offset claims are recognised as other income in the period to which the incentive
claims relate.
(f)
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Company will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the profit and loss over the period necessary to
match them with the costs that they are intended to compensate.
3438-5134-5428, v. 1
14
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1.
Summary of significant accounting policies (continued)
(g)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based
on the income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences between the tax base of assets and liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets
and liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when
the assets are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted
for each jurisdiction. Exceptions are made for certain temporary differences arising on initial recognition of an asset
or a liability if they arose in a transaction, other than a business combination, that at the time of the transaction did
not affect either accounting profit or taxable profit.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and
tax bases of investments in subsidiaries, associated and interests in joint ventures where the parent entity is able
to control the timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
(h)
Fair value of assets and liabilities
The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to
determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific
asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e.
the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a
market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market
that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability,
after taking into account transaction costs and transport costs).
3438-5134-5428, v. 1
15
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1.
Summary of significant accounting policies (continued)
(h)
Fair value of assets and liabilities (continued)
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the
asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and
best use.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instrument, by reference to observable market information where such instruments are held as assets. Where this
information is not available, other valuation techniques are adopted and, where significant, are detailed in the
respective note to the financial statements.
(i)
Impairment of non-financial assets
At the end of each reporting period the Company assesses whether there is any indication that individual assets are
impaired. Where impairment indicators exist, recoverable amount is determined and impairment losses are
recognised in profit or loss where the asset's carrying value exceeds its recoverable amount. Recoverable amount
is the higher of an asset's fair value less costs to sell and value in use. For the purpose of assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
Where it is not possible to estimate the recoverable amount for an individual asset, the recoverable amount is
determined for the cash generating unit to which the asset belongs.
(j)
Cash and cash equivalent
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and at bank,
deposits held at call with financial institutions, other short-term, highly liquid investments with maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts.
(k)
Other receivables
Other receivables are recognised at amortised cost, less any allowance for credit losses.
(l)
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Company prior to the year end
and which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition.
(m)
Provisions
Provisions for legal claims, service warranties and make good obligations are recognised when the Company has a
present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic
resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not
recognised for future operating losses.
3438-5134-5428, v. 1
16
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1.
Summary of significant accounting policies (continued)
(n)
Employee benefits
(i) Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within
12 months of the end of the reporting period are recognised in other payables in respect of employees' services
rendered up to the end of the reporting period and are measured at amounts expected to be paid when the
liabilities are settled.
(ii)
Retirement benefit obligations
The Company does not maintain a company superannuation plan. The Company makes fixed percentage
contributions for all Australian resident employees to complying third party superannuation funds. The Company's
legal or constructive obligation is limited to these contributions.
Contributions to complying third party superannuation funds are recognised as an expense as they become payable.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future
payments is available.
(iii)
Share - based payments
The fair value of options granted under the Employee Share Option Plan (“ESOP”) is recognised as an employee
benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised
over the period during which the employees become unconditionally entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected
price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of
the option.
The fair value of the options granted is adjusted to reflect market vesting conditions, but excludes the impact of any
non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions
are included in assumptions about the number of options that are expected to become exercisable. At each
reporting date, the entity revises its estimate of the number of options that are expected to become exercisable.
The employee benefit expense recognised each period takes into account the most recent estimate. The impact of
the revision to original estimates, if any, is recognised in the Statement of Profit or Loss and Other Comprehensive
Income with a corresponding adjustment to equity.
Where the terms of options are modified, the expense continues to be recognised from grant date to vesting date
as if the terms had never been changed. In addition, at the date of the modification, a further expense is recognised
for any increase in fair value of the transaction as a result of the change.
3438-5134-5428, v. 1
17
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1. Summary of significant accounting policies (continued)
(o) Contributed equity
Upon the exercise of options, the balance of the share based payments reserve relating to those options is
transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are
credited to share capital.
Costs directly attributable to the issue of new shares are shown as a deduction from the equity as a deduction
proceeds net of any income tax benefit. Costs directly attributable to the issue of new shares or options associated
with the acquisition of a business are included as part of the purchase consideration.
(p) Goods and services tax (GST)
Revenues, expenses and assets are recognised net GST, except where the GST incurred on the purchase of goods
and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost
of acquisition of the asset or as part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial
Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising
from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified
as operating cash flows.
(q)
Plant and equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated
depreciation and impairment losses. Plant and equipment are measured on the cost basis.
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 company and the cost
of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during
the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset’s useful life to the
company commencing from the time the asset is held ready for use.
Depreciation is calculated on a diminishing-value basis over the estimated useful life of the assets as follows:
Plant and equipment – ranging from 1 to 5 years
Office furniture – 1 to 5 years
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.
3438-5134-5428, v. 1
18
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
1.
Summary of significant accounting policies (continued)
(r)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of BCAL Diagnostics Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial
year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of ordinary shares assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
(s)
Adoption of New and Revised Accounting Standards
Changes in accounting policies on initial application of Accounting Standards.
There are no new accounting standards or interpretations applicable that would have a material impact on the
accounts of the Company.
2
Critical accounting estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements
and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including
expectations of future events, management believes to be reasonable under the circumstances. The resulting
accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities (refer to the respective notes) within the next financial year are discussed below.
(i)
Research and development expenditure
The entity has expensed research and development expenditure incurred during the year, where applicable, as the
costs relate to the initial expenditure for research and development of biopharmaceutical products where
generation of future economic benefits are not considered certain. It was considered appropriate to expense these
research and development costs as they did not meet the criteria to be capitalised under AASB 138 Intangible assets.
(ii)
Share based payment transactions
The entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes
model taking into account the terms and conditions upon which the instruments are granted. The accounting
estimates and assumptions relating to equity-settled shares-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Judgment is required in relation to the non-market vesting conditions.
3438-5134-5428, v. 1
19
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
3 Other Income
Research and development tax offset
Interest received
Government subsidy – cash boost
4
Income tax
(a)
Deferred tax
Income tax
2019
$
2018
$
256,534
1,710
-
258,244
241,154
1,134
-
242,288
-
-
-
-
(b)
Numerical reconciliation of income tax benefit to prima facie tax payable
Loss from continuing operations before income tax expense
Tax benefit at the Australian tax rate of 27.5% (2019 : 27.5%)
Tax effect of amounts which are deductible/not taxable in calculating
taxable income
Tax effect of accounting R&D tax incentive not deductible
Carried forward tax benefit not recognised
Total income tax expense
Tax losses
(c)
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5% (2019:27.5%)
5 Cash at bank and in hand
6
Current assets – current tax receivables
Research and development tax offset receivable
GST receivable
(429,957)
(118,238)
(467,632)
(128,599)
(77,262)
162,177
33,323
-
(31,980)
152,454
8,125
-
1,662,970
457,317
1,541,796
423,994
2019
$
276,644
276,644
2018
$
309,127
309,127
2019
$
256,534
2,778
259,312
2018
$
241,154
9,205
250,359
3438-5134-5428, v. 1
20
Plant and
equipment
Office Furniture
Total
29,776
-
29,776
28,166
1,610
29,776
(29,776)
-
(29,776)
(28,166)
(1,610)
(29,776)
-
-
14,475
7,472
21,947
2,045
12,430
14,475
(14,475)
(3,552)
(18,027)
(2,045)
(12,430)
(14,475)
-
3,920
44,251
7,472
51,723
30,211
14,040
44,251
(44,251)
(3,552)
(47,803)
(30,211)
(14,040)
(44,251)
-
3,920
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
7 Plant and equipment
Cost
Opening balance, 1 July 2018
Additions
Closing balance, 30 June 2019
Opening balance, 1 July 2017
Additions
Closing balance, 30 June 2018
Depreciation
Opening balance, 1 July 2018
Depreciation
Closing balance, 30 June 2019
Opening balance, 1 July 2017
Depreciation
Closing balance, 30 June 2018
Written down value 30 June 2018
Written down value 30 June 2019
8
Other financial assets
Non-current
Security deposit
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
9
Current liabilities - Trade and other payables
Trade creditors
PAYG withholding tax
Superannuation payable
Other
3438-5134-5428, v. 1
2019
$
463
463
2019
$
2,058
28,765
2,617
-
33,440
2018
$
530
530
2018
$
77,597
20,298
8,531
6,377
112,803
21
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
10
Current liabilities - Provisions
Provision for annual leave, opening balance
Provided during the year
Provision for annual leave, closing balance
Provision for long service leave, opening balance
Provided/(used) during the year
Provision for long service leave, closing balance
11
Convertible notes
Opening balance
Convertible notes raised during the year
Converted to equity
Closing balance
2019
$
16,011
2,692
18,703
13,050
(13,050)
-
2019
$
500,000
-
(500,000)
-
2018
$
13,125
2,886
16,011
-
13,050
13,050
2018
$
-
500,000
-
500,000
Each convertible note was convertible into one fully paid ordinary share at the option of the noteholder, at a
price being the lower of $1.00 and the price of the next equity capital raise. Convertible notes had an interest
rate of 12% and were secured by a general charge over the asset of the Company. The convertible notes were
converted to equity during the year at $0.75 per share, representing the price per share of capital raised in August
2018 (see Note 20).
12
Contributed equity
(a)
Share capital
Ordinary Shares Fully Paid
(b) Movements in ordinary share capital
Opening balance 1 July 2017
Share issue
Opening balance 1 July 2018
Share issue
Share issue on conversion of loan
Closing balance 30 June 2019
3438-5134-5428, v. 1
2019
Shares
4,086,483
2019
$
4,434,543
2018
Shares
2,753,149
2018
$
3,434,543
Number of
Shares
2,616,824
136,325
2,753,149
666,667
666,667
4,086,483
Issue price
$
-
0.75
0.75
3,434,543
-
3,434,543
500,000
500,000
4,434,543
22
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
12 Contributed equity (continued)
(c) Ordinary shares
Each ordinary shareholder maintains, when present in person or by proxy or by attorney at any general meeting
of the Company, the right to cast one vote for each ordinary share held.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held.
(d)
Options
As at the date of the financial statements there were no options over unissued ordinary shares on issue.
(e)
Capital risk management
The Company's objectives when managing capital are to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders or issue new shares.
The Company would look to raise capital when an opportunity to invest in a business or company was seen as value
adding relative to the current Company’s share price at the time of the investment.
The capital management policy remains unchanged from the 30 June 2018 Annual Report.
13
Accumulated losses
Accumulated losses
Movements in accumulated losses were as follows:
Opening accumulated losses
Loss for the year
Balance 30 June
14
Commitments
Capital commitments
As at 30 June 2019, the Company has no capital commitments (2018: $nil).
2019
$
2018
$
(3,516,390)
(429,957)
(3,946,347)
(3,048,758)
(467,632)
(3,516,390)
3438-5134-5428, v. 1
23
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
15
Reconciliation of profit after income tax to net cash outflow from operating activities
Loss for the year
Depreciation
Employee benefit provisions
Other non cash items
Change in operating assets and liabilities
Decrease in trade and other receivables
Decrease in trade and other payables
Net cash outflow from operating activities
16
Segment information
2019
$
(429,957)
3,552
2,692
(2,625)
(8,953)
(89,720)
(525,011)
2018
$
(467,632)
14,040
15,936
77,524
(5,416)
(105,266)
(470,814)
BCAL Diagnostics Limited is an Australian company developing a novel blood screening test to improve the early
diagnosis and monitoring of breast cancer that is safe, cost effective, accurate and available to all women regardless
of age, race and geographic location.
17 Financial risk management
(a) Financial risk management
The Company’s financial instruments consist mainly of deposits with banks, other receivables and payables.
The directors’ overall risk management strategy seeks to assist the Company in meeting its financial targets, whilst
minimising potential adverse effects on financial performance.
The Company does not speculate in financial assets.
Credit risk
The Company is currently not selling product or services and has no customer risk at present.
With respect to credit risk arising from other financial assets of the Company, which comprise cash and cash
equivalents, the Company’s exposure to credit risk arises form default of the counter party, with a maximum
exposure equal to the carrying amount of these instruments.
Since the Company trades only with recognised third parties, there is no requirement for collateral security.
The maximum exposure to credit risk at balance date is as follows:
Cash and cash equivalents (Note 5)
Other receivables (Note 6)
Research and development tax incentive receivable (Note 6)
3438-5134-5428, v. 1
2019
$
276,644
2,778
256,534
535,956
2018
$
309,127
9,205
241,154
559,486
24
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
17 Financial risk management (continued)
To deal with credit risk the Company deposits funds with tier 1 banks. Receivables risk is low as all receivables are
due from government.
Liquidity risk
The Company’s policy is to maintain a comfortable level of liquidity through the continual monitoring of cash
reserves and the raising of additional capital as required.
(b) Financial instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed period
of maturity as well as management’s expectations of the settlement period of all other financial instruments. As
such, the amounts may not reconcile to the Statement of Financial Position.
Within 1 year
2019
$
2018
$
1 to 5 years
2018
$
2019
$
Over 5 years
2019
$
2018
$
Total
2019
$
2018
$
Financial liabilities -
due for payment:
Trade and other
payables
Total contractual
outflows
Cash and cash
equivalents
Other receivables
Total anticipated
inflows
Net inflow on
financial
instruments
(c)
Net fair values
(33,440)
(112,803)
(33,440)
(112,803)
276,644
259,312
309,127
250,359
535,956
559,486
502,516
446,683
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(33,440)
(112,803)
(33,440)
(112,803)
276,644
259,312
309,127
250,359
535,956
559,486
502,516
446,683
The net fair value of assets and liabilities approximates their carrying value. No financial assets and liabilities are
readily traded on organised markets in standardised form.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the
Statement of Financial Position and notes to the financial statements.
(d) Market risk
Foreign currency risk
The Company undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange fluctuations.
3438-5134-5428, v. 1
25
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
17 Financial risk management (continued)
(d) Market risk (continued)
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the entity’s functional currency. Foreign exchange risk is currently
minimal.
18
Earnings per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)*
Weighted average number of shares
Basic earnings per share calculation
Diluted earnings per share calculation*
2019
Cents
10.9
10.9
2018
Cents
17.8
17.8
3,916,616
3,916,616
2,631,190
2,631,190
Loss for the period used in earnings per share
From continuing operations
(467,632)
*2019 – weighted average number of options outstanding not included in diluted EPS calculation as the options are anti-dilutive in nature
(429,957)
19 Related party transactions
(a)
Key management personnel
The total remuneration paid to key management personnel of the Company during the year is as follows:
Short-term employee benefits
Post- employment benefits
(b)
Transactions with other related parties
2019
$
214,006
20,331
234,337
2018
$
152,523
14,490
167,013
During the year parties associated with the directors of the Company Ms Jayne Shaw and Mr Ron Phillips, converted
convertible notes of $250,000 each into 333,333 shares at $0.75 each.
3438-5134-5428, v. 1
26
BCAL Diagnostics Limited
Notes to the Financial Statements
For the year ended 30 June 2019
20 Events subsequent to balance date
Subsequent to balance date the Company has successfully raised funds. In the 2020 financial year the company
issued 336,692 shares at $1.50 per share, raising $505,037 in August 2019 and a further $300,003 by issuance of
200,002 convertible notes in June 2020. Subsequent to 30 June 2020, the company raised $300,003 and issued
200,002 shares at $1.50 per share on the conversion of convertible notes and issued a further 1,494,914 shares at
$2.95 per share, in a placement raising $4,406,996, in January 2021.
In addition on 20 November 2019 the Company issued 221,158 options with an exercise price $1.50 and an expiry
date of 20 November 2029, and on 23 November 2020 issued 221,160 options with an exercise price of $1.50 and
an expiry date of 23 November 2023.
The company converted from a private company to an unlisted public company on 5 February 2021.
Other than as outline above no matter or circumstance has arisen since 30 June 2019 that has significantly affected,
or may significantly affect:
a) The Company’s operations in future financial years; or
b) The results of those operations in future financial years; or
c) The Company’s state of affairs in future financial years.
21
Company details
Corporate Head Office and Principal Place of Business
Unit 2404, 187-189 Liverpool Street Sydney NSW 2000
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
3438-5134-5428, v. 1
27
The directors of the Company declare that:
DIRECTORS’ DECLARATION
1. In the directors’ opinion, the financial statements and notes thereto, as set out on pages 8 to 27, are in accordance
with the Corporations Act 2001, including:
(a) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) giving a true and fair view of the financial position as at 30 June 2019 and performance for the year ended on
that date of the Company.
2. In the directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Jayne Shaw
Executive Chair
25 March 2021
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
3438-5134-5428, v. 1
28
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Level 16, Tower 2 Darling Park
201 Sussex Street
Sydney NSW 2000
Postal Address
GPO Box 1615
Sydney NSW 2001
p. +612 9221 2099
e. sydneypartners@pitcher.com.au
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BCAL DIAGNOSTICS LIMITED
ABN 51 142 051 223
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of BCAL Diagnostics Limited, ("the Company"), which
comprises the statement of financial position as at 30 June 2019, the statement of profit or
loss and other comprehensive income, statement of changes in equity and statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company, is in accordance with the
Corporations Act 2001, including:
(a) giving a true and fair view of the Company’s financial position as at 30 June 2019
and of its financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the
Company in accordance with the auditor independence requirements of the Corporations Act
2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) "the Code" that are relevant to our audit of the financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Company, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Adelaide Brisbane Melbourne Newcastle Perth Sydney
29
Pitcher Partners is an association of independent firms.
An independent New South Wales Partnership. ABN 35 415 759 892. Liability limited by a scheme approved under Professional Standards Legislation.
Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities
pitcher.com.au
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BCAL DIAGNOSTICS LIMITED
ABN 51 142 051 223
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Company’s annual report for the year ended 30 June 2019, but
does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we
do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards - Reduced
Disclosure Requirements and the Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the financial report that gives a
true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Pitcher Partners is an association of independent firms.
30
ABN 35 415 759 892.
An independent New South Wales Partnership.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BCAL DIAGNOSTICS LIMITED
ABN 51 142 051 223
Auditor's Responsibilities for the Audit of the Financial Report (Continued)
• Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including
the disclosures, and whether the financial report represents the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
S M Whiddett
Partner
30 March 2021
Pitcher Partners
Sydney
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Pitcher Partners is an association of independent firms.
ABN 35 415 759 892.
An independent New South Wales Partnership.
31