More annual reports from Complii FinTech Solutions Ltd:
2023 ReportANNUAL REPORT
30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Corporate directory
Non-executive Chairman
Non-executive Director
Non-executive Director
Current Directors
Patrick Canion
Mark Fisher
Greg Gaunt
Company Secretary
Stephen Buckley
Registered Office
Street:
Level 1, 247 Oxford Street
LEEDERVILLE WA 6007
Postal:
PO Box 52
ANNUAL REPORT
30 June 2020
Share Registry
Automic
Street:
Level 2, 267 St Georges Terrace
PERTH WA 6000
WEST PERTH WA 6872
Postal:
PO Box 2226
Telephone:
+61 (0)8 6141 3500
Facsimile:
+61 (0)8 6141 3599
STRAWBERRY HILLS NSW 2012
Telephone:
1300 288 664 or +61 2 9698 5414
Email:
info@wolfstargroup.com.au
Website:
www.automic.com.au
Website:
www.intigergrouplimited.com.au
Auditors
Solicitors to the Company
Bentleys Audit & Corporate (WA) Pty Ltd
Squire Patton Boggs
Level 3, 216 St Georges Terrace
Level 21, 300 Murray Street
PERTH WA 6000
Perth WA 6000
Telephone:
+61 (0)8 9226 4500
Securities Exchange
Australian Securities Exchange
Level 40, Central Park, 152-158 St Georges Terrace
Perth WA 6000
Telephone:
Telephone:
131 ASX (131 279) (within Australia)
+61 (0)2 9338 0000
Facsimile:
Website:
ASX Code
+61 (0)2 9227 0885
www.asx.com.au
IAM
P a g e | i
ANNUAL REPORT
30 June 2020
Contents
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Operations review ..................................................................................................................................................................... 1
Directors' report ........................................................................................................................................................................ 2
Auditor's independence declaration ....................................................................................................................................... 12
Consolidated statement of profit or loss and other comprehensive income .......................................................................... 13
Consolidated statement of financial position ......................................................................................................................... 14
Consolidated statement of changes in equity ......................................................................................................................... 15
Consolidated statement of cash flows .................................................................................................................................... 16
Notes to the consolidated financial statements ...................................................................................................................... 17
Directors' declaration .............................................................................................................................................................. 50
Independent auditor's report .................................................................................................................................................. 51
Corporate governance statement ........................................................................................................................................... 55
Additional Information for Listed Public Companies ............................................................................................................... 63
P a g e | ii
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Operations review
ANNUAL REPORT
30 June 2020
Intiger Group Limited (ASX: IAM) (Intiger or the Company), is pleased to present its full year results for the year ended 30 June
2020 (FY20).
The 2020 year was a challenging one for the company. Despite good progress in product design and pricing, diminished financial
reserves meant that the focus was on reducing structural costs and exploring opportunities for growth through acquisition.
As part of these cost control measures, the number of executive and other staff were significantly reduced in the early part of
the year. Since December 2019 your directors have accrued their fees to assist with the Company’s cashflow. The Company also
reduced costs in non-core areas and set all other operational costs at the appropriate level for its business. These were difficult
but necessary measures.
On 16 December 2019 the Company announced that it had executed a binding terms sheet for funding by a convertible notes
program to raise up to a maximum $500,000. The Company subsequently confirmed that it had raised $200,000 by the issue of
200,000 convertible notes. Details of the convertible notes can be found in note 5.6 Borrowings. Further, on 10 June 2020 the
Company raised a gross $125,000 from a placement of 250 million shares.
In addition to its operational activities, the Company continues to devote a significant amount of time to evaluating potential
acquisition opportunities. Whilst we remain confident, we note that there is no assurance that the Company will enter into a
binding agreement with respect to any acquisition opportunity.
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ANNUAL REPORT
30 June 2020
Directors' report
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Your directors present their report on the Group, consisting of Intiger Group Limited (Intiger or the Company) and its controlled
entities (collectively the Group), for the financial year ended 30 June 2020.
Intiger is listed on the Australian Securities Exchange.
1. Directors
The names of Directors in office at any time during or since the end of the year are:
Mr Patrick Canion
Mr Mark Fisher
Mr Greg Gaunt
Non-executive Chairman
Non-executive Director
Non-executive Director
(collectively the Directors or the Board)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. For additional
information of Directors including details of the qualifications of Directors please refer to paragraph 6 Information relating to the
directors of this Directors Report.
Company Secretary
2.
The following person held the position of Company Secretary at the end of the financial year:
Mr Stephen Buckley
Appointed 4 April 2018
Qualifications
Experience
GAICD
Stephen has more than 35 years’ experience in financial markets having worked in both
Australia and New Zealand. He is a Graduate of the Australian Institute of Company Directors
and is the Managing Director of a company which specialises in providing company
secretarial, corporate governance and corporate advisory
3. Dividends paid or recommended
There were no dividends paid or recommended during the financial year ended 30 June 2020.
Significant Changes in the state of affairs
4.
During the year, the following changes in equity occurred, as detailed in the financial statements note 7.1 Issued capital:
the Company issued 8,241,096 fully paid ordinary shares at $0.00075 per share in lieu of cash payment for Convertible note
interest; and
the Company raised $125,000 by issuing 250,000,000 fully paid ordinary shares at $0.0005 per share. These shares currently
remain under a voluntary restriction.
There were no other significant changes to the state of affairs of the Group.
5. Operating and financial review
5.1. Nature of Operations Principal Activities
Intiger operates an Australian software development house dedicated to supporting professional Financial Planners to
meet the needs of their clients. This is done through reducing back office and operational costs. Intiger has developed and
launched proprietary software platform BOOM2, which has been designed to digitalise and automate core components of
the financial planning process including the production of automated statements of advice. BOOM2 also tracks key
performance indicators of a financial planning practice and delivers oversight and control to both licensees and financial
planning practices nationally.
5.2. Operations Review (refer Operations review of page 1)
5.3. Financial Review
Operating results
a.
For the 2020 financial year the Group delivered a loss before tax of $1,051,612 (2019: $4,894,020 loss).
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. Details of
the Company's assessment in this regard can be found in note 22.1.3 Statement of significant accounting policies: Going
Concern on page 46.
P a g e | 2
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Directors' report
b.
Financial position
ANNUAL REPORT
30 June 2020
The net assets of the Group have decreased from 30 June 2019 by $917,752 to $(455,408) at 30 June 2020 (2019: $462,344).
As at 30 June 2020, the Group's cash and cash equivalents decreased from 30 June 2019 by $588,795 to $85,747 at 30 June
2019 (2019: $674,542) and had a working capital deficit of $395,030 (2019: $409,601 working capital), as noted in note 9.
5.4. Events Subsequent to Reporting Date
As noted in note 12 Events subsequent to reporting date of the financial statements, the Company has:
a. Entered into Bid Implementation Agreement to acquire Complii which includes a Public Offer of up to $7,000,000 (refer
note 12.1);
b. Secured short-term funding from a director, Gregory Gaunt, and an independent third-party, of $40,000 (refer note 12.2);
and
c. Obtained an extension to the repayment terms of the convertible notes repayments terms to 31 December 2020 (refer
note 12.3).
There are no other significant after balance date events that are not covered in this Directors' Report or within the financial
statements at note 12 Events subsequent to reporting date.
5.5. Future Developments, Prospects and Business Strategies
Likely developments, future prospects and business strategies of the operations of the Group and the expected results of
those operations have not been included in this report as the Directors believe that the inclusion of such information would
be likely to result in unreasonable prejudice to the Group.
5.6. Environmental Regulations
The Group's operations are not subject to significant environmental regulations in the jurisdictions it operates in, namely
Australia.
The Directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which
introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse
gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of
development, the Directors have determined that the NGER Act has no effect on the Company for the current, nor
subsequent, financial year. The Directors will reassess this position as and when the need arises.
6.
Information relating to the directors
Mr Patrick Canion
Non-executive Chairman
Qualifications
Experience
MAppFin, GAICD, FFinsia
Patrick has over 30 years’ experience in financial services and is nationally recognised in the
media and financial services for his leadership and innovation in financial planning. He has a
Masters of Applied Finance and Investment. He is also a Fellow of the Financial Services
Institute of Australia and a Graduate member of the Australian Institute of Company Directors.
Patrick is a Fellow of the Financial Planning Association and was recently presented with their
Distinguished Service Award. Patrick is also a former director of the Financial Planning
Association Ltd and past-President of the Western Australian Club Inc.
Interest in Shares and
Options
Directorships held in
other listed entities
1,455,215 Ordinary Shares
None
Mr Mark Fisher
Non-Executive Director
Experience and
qualifications
For the last 20 years Mark has worked globally in senior executive roles for the world’s most
respected Tier 1 investment, retail and commercial banking and management consulting firms,
including Barclays International Retail and Commercial Bank, Lloyds of London, HSBC Merchant
and Capital Markets, GE Capital Bank Europe, Barclays Capital Investment Bank, Nationwide
Bank UK, Navigant Consulting Europe, Cembra Money Bank Switzerland and Budapest Bank
Hungary.
P a g e | 3
ANNUAL REPORT
30 June 2020
Directors' report
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Specialising in large scale global change programs, offshore processing, cost reduction
strategies and institutional restructuring, Mark has lived and worked in a variety of global
locations including the US, UK, Switzerland, Nigeria, Spain, France, Portugal, Italy, France,
Ecuador, Colombia, India, Philippines, Latvia, Romania, Poland, and Hungary.
In 1999 Mark was Program Lead under Jack Welch at GE Capital Bank USA. At the time, Mr
Welch made one of the first attempts by any Western commercial institution to transfer white
good/administrative processes offshore.
Interest in Shares and
Options
Directorships held in
other listed entities
Nil
None
Mr Greg Gaunt
Non-Executive Director (appointed 1 March 2020)
Qualifications
Experience and
qualifications
B.Juris and LL.B
Greg is a former Executive Chairman of the law firms Lavan and HHG Legal Group and possesses
longstanding experience in the management of law firms where he attained broad business
experience across many different sectors.
Greg graduated from the University of Western Australia and currently sits on the Curtin
Business School Asia Business Advisory Board and the Advisory Board of the Catholic
Development Fund.
Interest in Shares and
Options
Directorships held in
other listed entities
Nil
None
7. Meetings of directors and committees
During the financial year ten meetings of Directors (including committees of Directors) were held. Attendances by each Director
during the year are stated in the following table.
DIRECTORS'
MEETINGS
REMUNERATION AND
NOMINATION COMMITTEE
FINANCE AND OPERATIONS
COMMITTEE
AUDIT
COMMITTEE
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Patrick Canion
Mark Fisher
Greg Gaunt
13
13
13
13
11
13
At the date of this report, the Remuneration, Audit, Nomination, and Finance and
Operations Committees comprise the full Board of Directors. The Directors believe the
Company is not currently of a size nor are its affairs of such complexity as to warrant the
establishment of these separate committees. Accordingly, all matters capable of
delegation to such committees are considered by the full Board of Directors.
8.
Indemnifying officers or auditor
8.1.
Indemnification
The Company has entered an Indemnity, Insurance and Access Deed with each Director. Pursuant to the Deed:
The Director is indemnified by the Company against any liability incurred in that capacity as an officer of the
Company to the maximum extent permitted by law subject to certain exclusions.
The Company must keep a complete set of company documents until the later of:
a. The date which is seven years after the Director ceases to be an officer of the Company; and
b. The date after a final judgment or order has been made in relation to any hearing, conference, dispute, enquiry or
investigation in which the Director is involved as a party, witness or otherwise because the Director is or was an officer
of the Company (Relevant Proceedings).
The Director has the right to inspect and copy a Company document in connection with any relevant proceedings during
the period referred to above.
P a g e | 4
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Directors' report
ANNUAL REPORT
30 June 2020
Subject to the next sentence, the Company must maintain an insurance policy insuring the Director against liability as a
director and officer of the Company while the Director is an officer of the Company and until the later of:
a. The date which is seven years after the Director ceases to be an officer of the Company; and
b. The date any Relevant Proceedings commenced before the date referred to above have been finally resolved.
The Company may cease to maintain the insurance policy if the Company reasonably determines that the type of coverage
is no longer available.
The Company has not entered into any agreement with its current auditors indemnifying them against any claims by third
parties arising from their report on the financial report.
8.2.
Insurance premiums
During the year the Company paid insurance premiums to insure Directors and officers against certain liabilities arising out
of their conduct while acting as an officer of the Group. In accordance with the policy, the amount of premium cannot be
disclosed.
9. Options
9.1. Unissued shares under option
At the date of this report, the un-issued ordinary shares of the Compnay under option (listed and unlisted) are as follows:
Grant Date
Date of Expiry
Exercise Price
29 August 2018
31 October 2020
11 October 2018
31 October 2020
$0.015
$0.015
Number under
Option
105,000,000
210,000,000
315,000,000
No person entitled to exercise the option has or has any right by virtue of the option to participate in any share issue of any
other body corporate.
9.2. Shares issued on exercise of options
There were no exercises of options either during the financial year or since the end of the financial year.
10. Non-audit services
During the year, Bentleys, the Company’s auditor, did not perform any services other than their statutory audits (2019: $nil).
Details of remuneration paid to the auditor can be found within the financial statements at note 17 Auditor's Remuneration.
In the event that non-audit services are provided by Bentleys, the Board has established certain procedures to ensure that the
provision of non-audit services are compatible with, and do not compromise, the auditor independence requirements of the
Corporations Act 2001. These procedures include:
non-audit services will be subject to the corporate governance procedures adopted by the Company and will be reviewed
by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
ensuring non-audit services do not involve reviewing or auditing the auditor's own work, acting in a management or
decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards.
11. 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.
12. Auditor's independence declaration
The lead auditor's independence declaration under section 307C of the Corporations Act 2001 (Cth) for the year ended
30 June 2020 has been received and can be found on page 12 of the annual report.
P a g e | 5
ANNUAL REPORT
30 June 2020
Directors' Report
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
13. Remuneration report (audited)
The information in this remuneration report has been audited as required by s308(3C) of the Corporations Act 2001.
13.1. Key management personnel (KMP)
KMP have authority and responsibility for planning, directing and controlling the activities of the Group. KMP comprise the
directors of the Company and key executive personnel:
Mr Patrick Canion
Mr Mark Fisher
Mr Greg Gaunt
Mr George Jaja
Non-executive Chairman
Non-executive Director
Non-executive Director
Chief Executive Officer (resigned 1 November 2019)
13.2. Principles used to determine the nature and amount of remuneration
The remuneration policy of the Company has been designed to ensure reward for performance is competitive and
appropriate to the result delivered. The framework aligns executive reward with the creation of value for shareholders,
and conforms to market best practice. The Board ensures that Director and executive reward satisfies the following key
criteria for good reward government practices:
Competitiveness and reasonableness;
Acceptability to the shareholder;
Performance;
Transparency; and
Capital management.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders' investment
objectives and Directors' and Executives' performance. Currently, this is facilitated through the issues of options to the
majority of Directors and Executives to encourage the alignment of personal and shareholder interests. The Company
believes this policy will be effective in increasing shareholder wealth. The Board's policy for determining the nature and
amount of remuneration for Board members and Senior Executive of the Company is as follows:
a. Executive Directors and other Senior Executives
The Company’s remuneration policy for executive directors and senior management is designed to promote superior
performance and long-term commitment to the Company. Executives receive a base remuneration which is market
related and may receive performance-based remuneration. The Board reviews Executive packages annually by
reference to the Company's performance, executive performance, and comparable information from industry sectors
and other listed companies in similar industries. Executives are also entitled to participate in employee share and option
schemes.
b. Non-Executive Directors
The Company's Constitution provides that Directors are entitled to be remunerated for their services as follows:
The total aggregate fixed sum per annum to be paid to the Directors (excluding salaries of executive Directors) from
time to time will not exceed the sum determined by the Shareholders in general meeting and the total aggregate
fixed sum will be divided between the Directors as the Directors shall determine and, in default of agreement
between them, then in equal shares.
The Directors' remuneration accrues from day to day.
The total aggregate fixed sum per annum which may be paid to non-executive Directors is $300,000. This amount
cannot be increased without the approval of the Company's Shareholders.
The Directors are entitled to be paid reasonable travelling, accommodation and other expenses incurred by them
respectively in or about the performance of their duties as Directors.
c. Fixed Remuneration
Other than statutory superannuation contribution, no retirement benefits are provided for Executive and Non-
Executive Directors of the Company. To align Directors' interests with shareholder interests, the Directors are
encouraged to hold shares in the company.
d. Performance Based Remuneration – Short-term and long-term incentive structure
The Board will review short-term and long-term incentive structures from time to time. Any incentive structure will be
aligned with shareholders' interests
P a g e | 6
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Directors' Report
13. Remuneration report (audited)
Short-term incentives
ANNUAL REPORT
30 June 2020
No short-term incentives in the form of cash bonuses were granted during the year.
Long-term incentives
The Board has a policy of granting incentive options to executives with exercise prices above market share price.
As such, incentive options granted to executives will generally only be of benefit if the executives perform to the
level whereby the value of the Group increases sufficiently to warrant exercising the incentive options granted.
The executive Directors will be eligible to participate in any short term and long-term incentive arrangements operated
or introduced by the Company (or any subsidiary) from time to time.
e. Service Contracts
Remuneration and other terms of employment for the directors, KMP and the company secretary are formalised in
contracts of employment.
f. Engagement of Remuneration Consultants
During the financial year, the Company did not engage any remuneration consultants.
g. Relationship between Remuneration of KMP and Earnings
In considering the Group’s performance and benefits for shareholders wealth, the Board has regard to the following
indices in respect of the current financial year and the previous four financial years:
As at 30 June
Profit/(Loss) per share (cents)
Share price ($)
2020
(0.06)
0.016
2019
(0.30)
0.016
2018
(0.29)
0.016
2017
(0.40)
0.042
2016
(0.22)
0.026
13.3. Directors and KMP remuneration
Details of the remuneration of the Directors and KMP of the Group (as defined in AASB 124 Related Party Disclosures) are
set out in the following table.
2020 – Group
Group KMP
Mark Fisher(1)
Patrick Canion(1)
Greg Gaunt(1)
Tim Thornton(2)
George Jaja(3)
Short-term benefits
Salary, fees
and leave
$
27,397
54,795
27,397
132,040
102,228
343,857
Profit share
and bonuses
$
-
-
-
-
-
-
Non-
monetary
$
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
2,603
5,205
2,603
12,544
7,320
30,275
Other
$
-
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
Other
Equity
Options
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
30,000
60,000
30,000
144,584
109,548
374,132
(1)
Included in the director’s remuneration are amounts payable in respect of accrued salary package as noted in 13.8 to the Remuneration
report.
(2) Appointed Interim Chief Executive Officer on 1 November 2019
(3) Resigned 1 November 2019
P a g e | 7
ANNUAL REPORT
30 June 2020
Directors' report
13. Remuneration report (audited)
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
2019 – Group
Group KMP
Mark Fisher
Patrick Canion
Greg Gaunt(1)
Tony Chong(2)
George Jaja(3)
Short-term benefits
Salary, fees
and leave
$
4,566
79,794
9,132
30,000
216,743
340,235
Profit share
and bonuses
$
-
-
-
-
-
-
Non-
monetary
$
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
434
7,580
868
2,850
20,590
32,322
Other
$
-
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
Other
Equity
Options
$
-
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
$
5,000
87,374
10,000
32,850
237,333
-
372,557
(1)
(2)
(3)
Appointed 1 March 2019
Resigned 1 March 2019
Appointed 14 November 2018
13.4. Service Agreements
a. Non-Executive Chairman appointment letter with Mr Patrick Canion
The Company has entered into a Non-Executive Director letter agreement with Mr Patrick Canion. The Company has agreed
to pay Mr Canion a director fee of $60,000 including superannuation per year for services provided to the Company as Non-
Executive Chairman.
b. Non-executive Director appointment letter with Mr Greg Gaunt
The Company has entered into a Non-Executive Director letter agreement with Mr Greg Gaunt on 1 March 2019. The
Company has agreed to pay Mr Gaunt a director fee of $30,000 including superannuation per year for services provided to
the Company as Non-Executive Director.
c. Non-executive Director appointment letter with Mr Mark Fisher
The Company has entered into a Non-Executive Director letter agreement with Mr Mark Fisher on 14 November 2018. The
Company has agreed to pay Mr Fisher a director fee of $30,000 including superannuation per year for services provided to
the Company as Non-Executive Director.
d. Executive Services Agreement (ESA) with Mr Tim Thornton
The Company entered into an executive services agreement with Tim Thornton, pursuant to which Mr Thornton will be
engaged as Chief Technology Officer of the Company on and from the date of Settlement occurred under the ESA. Mr
Thornton is presently acting CEO of the Company.
The principal terms of the ESA are as follows:
Initial term of 3 years commencing on the date of settlement.
Salary of $144,584 per annum which includes the statutory required employee contribution for superannuation
which will be reviewed annually by the Company in accordance with the policy of the Company for the annual
review of salaries.
The Company will reimburse Mr Thornton for all reasonable travelling, accommodation and general expenses
incurred in the performance of his duties.
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Directors' report
ANNUAL REPORT
30 June 2020
13. Remuneration report (audited)
e. Executive Services Agreement (ESA) with Mr George Jaja
The Company entered into an executive services agreement with George Jaja, pursuant to which Mr Jaja was engaged as
Chief Executive Officer of the Company on and from the date of Settlement occurred under the ESA.
The principal terms of the ESA are as follows:
Initial term of 3 years commencing on the date of settlement.
Salary of $250,000 per annum which includes the statutory required employee contribution for superannuation
which will be reviewed annually by the Company in accordance with the policy of the Company for the annual review
of salaries.
The Company will reimburse Mr Jaja for all reasonable travelling, accommodation and general expenses incurred in
the performance of his duties.
10,000,000 unlisted options with an exercise price of $0.02 and an expiry date of 31 December 2022 with 50% vesting
on 31 December 2020 and 50% on 31 December 2021 subject to Mr Jaja being employed by Intiger Group Limited at
the time, subject to shareholders’ approval.
This ESA terminated upon Mr Jaja’s resignation on 1 November 2019.
13.5. Share-based compensation
No options were granted to the Directors during the year ended 30 June 2020 as part of their remuneration.
There were no equity instruments issued during the year to Directors as a result of options exercised that had previously
been granted as compensation.
a. Securities Received that are not performance-related
No members of KMP are entitled to receive securities that are not performance-based as part of their remuneration package.
b. Options and Rights Granted as Remuneration
No options or rights were granted as remuneration during 2020 (2019: nil).
13.6. KMP equity holdings
a. Fully paid ordinary shares of Intiger Group Limited held by each KMP
2020 – Group
Group KMP
Patrick Canion
Mark Fisher
Greg Gaunt
Tim Thornton(1)
George Jaja(2)
Balance at
start of year /
date of
appointment
No.
1,455,215
-
-
145,854
-
1,601,069
Received during
the year as
compensation
No.
Received during
the year on
the exercise of
options
No.
Received during
the year on
conversion of
performance
shares
No.
Other changes /
resignation
during the year
No.(3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
end of year
No.
1,455,215
-
-
145,854
-
1,601,069
(1) Appointed Interim Chief Executive Officer on 1 November 2019
(2) Resigned 1 November 2019
(3) Other changes during the year relate to acquisitions and disposals for KMP and their related parties.
P a g e | 9
ANNUAL REPORT
30 June 2020
Directors' report
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
13. Remuneration report (audited)
b. Performance shares in Intiger Group Limited held by each KMP
2020– Group
Group KMP
Patrick Canion
Mark Fisher
Greg Gaunt
Tim Thornton(1)
George Jaja(2)
Balance at
start of year
No.
Granted as
Remuneration
during the year
No.
Converted
during the year
No.
Other changes
during the year(3)
No.
Balance at
end of year
No.
Vested and
convertible
No.
Not Vested
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) Appointed Interim Chief Executive Officer on 1 November 2019
(2) Resigned 1 November 2019
(3) Other changes relate to the buy-back of performance shares as disclosed in note 7.2.1
c. Options in Intiger Group Limited held by each KMP
2020 – Group
Group KMP
Patrick Canion
Mark Fisher
Greg Gaunt
Tim Thornton(1)
George Jaja(2)
Balance at
start of year
No.
17,500,000
15,000,000
-
20,000,000
15,000,000
67,500,000
Granted as
Remuneration
during the year
No.
Exercised
during the year
No.
Other changes/
expired
during the year
No.
Balance at
end of year
No.
Vested and
Exercisable
No.
Not Vested
No.
-
-
-
-
-
-
-
-
-
-
-
-
(17,500,000)
(15,000,000)
-
(20,000,000)
(15,000,000)
(67,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) Appointed Interim Chief Executive Officer on 1 November 2019
(2) Resigned 1 November 2019
13.7. Other Equity-related KMP Transactions
There have been no other transactions involving equity instruments other than those described in the tables above relating
to options, rights and shareholdings.
P a g e | 10
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Directors' report
13. Remuneration report (audited)
13.8. Other transactions with KMP and or their Related Parties
During the 2020 financial year, the Group incurred the following amounts to related parties:
Included in Employment related payables in note 5.4 are amounts payable to
Directors in respect to accrued salary package. 30 June 2020 accrued salary is
included in the Remuneration Report contained in the Directors' Report on page
7. Accrued salary for each of the director as follows:
Mark Fisher
Patrick Canion
Greg Gaunt
Squire Patton Boggs, a law firm where Mr Chong (former director) is a partner,
provided general legal services to the Group. These services were not provided by
Mr Chong and were therefore not included in the Remuneration Report contained
in the Directors' Report on page 7.
Refer also note 16 Related party transactions.
END OF REMUNERATION REPORT
ANNUAL REPORT
30 June 2020
2020
$
2019
$
28,357
35,000
17,500
51,275
-
-
-
34,828
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of directors made
pursuant to s.298(2) of the Corporations Act 2001 (Cth).
PATRICK CANION
Chairman
Dated this Wednesday, 30 September 2020
P a g e | 11
ANNUAL REPORT
30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Auditor's independence declaration
Under Section 307c Of The Corporations Act 2001 (Cth)
To The Directors Of Intiger Group Limited
TO BE RECEIVED FROM
AUDITORS
P a g e | 12
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
ANNUAL REPORT
30 June 2020
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2020
Continuing operations
Revenue
Other income
Compliance costs
Consulting fees
Depreciation and amortisation
Employment costs
Finance costs
Impairment
Legal expenses
Occupancy costs
Professional fees
Public relations, marketing and advertising
Share-based payments expense
Other expenses
Loss before tax
Income tax expense
Net loss for the year
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss:
Foreign currency movement
Other comprehensive income for the period, net of tax
Note
1.1
1.2
2.2
2.1
19
2020
$
160,125
129,714
289,839
(64,207)
(31,343)
(636)
(565,155)
(142,103)
(13,832)
(44,728)
(58,056)
(231,185)
(5,000)
-
2019
$
505,469
72,722
578,191
(81,725)
(90,134)
(939)
(2,083,668)
(4,558)
(2,042,887)
(37,300)
(363,703)
(247,288)
(37,800)
-
(185,206)
(482,209)
(1,051,612)
(4,894,020)
4.1
( 706)
( 486)
(1,052,318)
(4,894,506)
3,385
3,385
(41,993)
(41,993)
Total comprehensive income attributable to members of the parent entity
(1,048,933)
(4,936,499)
(Loss) / profit for the period attributable to:
Non-controlling interest
Owners of the parent
Total comprehensive income attributable to:
Non-controlling interest
Owners of the parent
Earnings per share:
Basic and diluted loss per share (cents per share)
Diluted loss per share (cents per share)
-
-
(1,052,318)
(4,894,506)
-
-
(1,048,933)
(4,936,499)
₵
(0.06)
N/A
18
18
₵
(0.30)
N/A
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
P a g e | 13
ANNUAL REPORT
30 June 2020
Consolidated statement of financial position
as at 30 June 2020
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Trade and other receivables
Property, plant, and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Financial liabilities
Borrowings
Short-term provisions
Total current liabilities
Total liabilities
Net (liabilities) / assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note
5.1
5.2.1
5.3.1
5.2.2
6.1
5.4
5.5
5.6
6.2
2020
$
85,747
16,216
4,626
106,589
6,289
-
6,289
2019
$
674,542
105,362
9,100
789,004
52,139
604
52,743
112,878
841,747
276,813
66,667
200,000
24,806
568,286
325,472
-
-
53,931
379,403
568,286
379,403
(455,408)
462,344
7.1.1
7.4
46,201,072
46,069,891
42,894
3,030,316
(46,699,374)
(48,637,863)
(455,408)
(466,323)
(455,408)
462,344
400,501
462,344
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
P a g e | 14
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Consolidated statement of changes in equity
for the year ended 30 June 2020
ANNUAL REPORT
30 June 2020
Note
Share-based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Accumulated
Losses
$
$
$
Issued
Capital
$
Total
$
Balance at 1 July 2018
43,322,215
2,990,809
(9,868)
(43,738,957)
2,564,199
Loss for the year attributable owners of the
parent
Other comprehensive income for the year
attributable owners of the parent
Total comprehensive income for the year
attributable owners of the parent
Transaction with owners, directly in equity
-
-
-
Shares issued during the year
7.1.1
2,747,676
-
-
-
-
Options granted during the year
7.3
Options exercised or expired during the year
7.3
-
-
91,368
-
-
(4,894,506)
(4,894,506)
(41,993)
-
(41,993)
(41,993)
(4,894,506)
(4,936,499)
-
-
-
-
-
(4,400)
2,747,676
91,368
(4,400)
Balance at 30 June 2019
46,069,891
3,082,177
(51,861)
(48,637,863)
462,344
Balance at 1 July 2019
46,069,891
3,082,177
(51,861)
(48,637,863)
462,344
Loss for the year attributable owners of the
parent
Other comprehensive income for the year
attributable owners of the parent
Total comprehensive income for the year
attributable owners of the parent
Transaction with owners, directly in equity
-
-
-
Shares issued during the year
7.1.1
131,181
-
-
-
-
Options expired during the year
7.3
-
(2,990,807)
-
(1,052,318)
(1,052,318)
3,385
-
3,385
3,385
(1,052,318)
(1,048,933)
-
-
-
131,181
2,990,807
-
Balance at 30 June 2020
46,201,072
91,370
(48,476)
(46,699,374)
(455,408)
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
P a g e | 15
ANNUAL REPORT
30 June 2020
Consolidated statement of cash flows
for the year ended 30 June 2020
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
ATO cash boost and JobKeeper subsidy
Research and Development rebate
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note
2020
$
2019
$
198,960
594,424
(1,228,535)
(3,843,236)
993
16,000
68,754
5,747
-
-
Net cash used in operating activities
5.1.3a
(943,828)
(3,243,065)
Cash flows from investing activities
Proceeds from disposal of investments
Net cash provided by investing activities
Cash flows from financing activities
Proceeds from issue of shares
Capital raising costs
Proceeds from issue of convertible notes
Net cash provided by financing activities
28,446
28,446
-
-
125,000
3,000,000
-
(160,956)
200,000
-
325,000
2,839,044
Net decrease in cash and cash equivalents held
(590,382)
(404,021)
Cash and cash equivalents at the beginning of the year
Change in foreign currency held
Cash and cash equivalents at the end of the year
- 5.1
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
674,542
1,078,563
1,587
85,747
-
674,542
P a g e | 16
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
ANNUAL REPORT
30 June 2020
In preparing the 2020 financial statements, Intiger Group Limited has grouped notes into sections under five key categories:
Section A: How the numbers are calculated ............................................................................................................................ 18
Section B: Risk.......................................................................................................................................................................... 32
Section C: Group structure ...................................................................................................................................................... 36
Section D: Unrecognised items ................................................................................................................................................ 38
Section E: Other Information ................................................................................................................................................... 40
Significant accounting policies specific to each note are included within that note. Accounting policies that are determined to be
non-significant are not included in the financial statements.
The presentation of the notes to the financial statements has changed from the prior year and is supported by the IASB’s
Disclosure Initiative. As part of this project, the AASB made amendments to AASB 101 Presentation of Financial Statements which
have provided preparers with more flexibility in presenting the information in their financial reports.
The financial report is presented in Australian dollars, except where otherwise stated.
P a g e | 17
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
SECTION A. HOW THE NUMBERS ARE CALCULATED
This section provides additional information about those individual line items in the financial statements that the directors
consider most relevant in the context of the operations of the entity, including:
(a) accounting policies that are relevant for an understanding of the items recognised in the financial statements. These cover
situations where the accounting standards either allow a choice or do not deal with a particular type of transaction.
(b) analysis and sub-totals.
(c)
information about estimates and judgements made in relation to particular items.
Note 1
Revenue and other income
1.1
Revenue
Service income
1.2
Other Income
Interest income
Research and development grant income
Other income
Gain on disposal of investment
1.3
Accounting policy
1.3.1 Revenue from contracts with customers
2020
$
2019
$
160,125
505,469
160,125
505,469
993
68,754
30,828
29,139
129,714
5,747
51,772
15,203
-
72,722
Revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that
reflects the consideration the Company expects to receive in exchange for those goods or services.
Revenue is recognised by applying a five-step process outlined in AASB 15 which is as follows:
Step 1: Identify the contract with a customer;
Step 2: Identify the performance obligations in the contract and determine at what point they are satisfied;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance obligations; and
Step 5: Recognise the revenue as the performance obligations are satisfied.
Revenue is recognised when or as a performance obligation in the contract with customer is satisfied, i.e. when the control
of the goods or services underlying the particular performance obligation is transferred to the customer. A performance
obligation is a promise to transfer a distinct goods or service (or a series of distinct goods or services that are substantially
the same and that have the same pattern of transfer) to the customer that is explicitly stated in the contract and implied in
the Group's customary business practices.
The Company provides software to support the professional Financial Planners under fixed-price contracts. Revenue is
recognised based on the actual service provided to the end of the reporting period. Revenue is recognised in the amount to
which services have been rendered at a point in time. Customers are invoiced monthly and consideration is payable when
invoiced.
Revenue is measured at the amount of consideration to which the Group expects to be entitled in exchange for transferring
the promised goods or services to the customers, excluding amounts collected on behalf of third parties such as sales taxes
or services taxes. If the amount of consideration varies due to discounts, rebates, refunds, credits, incentives, penalties or
other similar items, the Group estimates the amount of consideration to which it will be entitled based on the expected
value or the most likely outcome.
P a g e | 18
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 1
Revenue and other income (cont.)
ANNUAL REPORT
30 June 2020
If the contract with customer contains more than one performance obligation, the amount of consideration is allocated to
each performance obligation based on the relative stand-alone selling prices of the goods or services promised in the
contract. Revenue is recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
The control of the promised goods or services may be transferred over time or at a point in time. The control over the goods
or services is transferred over time and revenue is recognised over time if:
i.
the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group
performs;
ii. the Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced;
or
iii. the Group's performance does not create an asset with an alternative use and the Group has an enforceable right to
payment for performance completed to date.
Revenue for performance obligation that is not satisfied over time is recognised at the point in time at which the customer
obtains control of the promised goods or services.
1.3.2
Interest income
Interest revenue is recognised in accordance with note 3.1 Finance income and expenses.
1.3.3 Change in Accounting Policy
The effect of adopting AASB 15 did not have a significant impact to the Group.
Note 2
Loss before income tax
The following significant revenue and expense items are relevant in explaining the
financial performance:
2.1
Impairment:
◼ Impairment of intangibles
◼ Impairment of other input taxes receivable
2.1.1 Accounting policy
Impairment of financial assets
a.
Refer to note 5.7.1d
Impairment of non-financial assets
b.
Refer to note 6.3.1
2.2
Employment costs
◼ Directors’ fees
◼ (Decrease) / increase in employee benefits provisions
◼ Superannuation expenses
◼ Wages and salaries
◼ Payroll tax (refund) / expense
◼ Other employment related costs
2020
$
2019
$
-
1,935,650
13,832
13,832
107,237
2,042,887
2020
$
109,589
(29,124)
37,343
446,518
(7,925)
8,754
2019
$
123,493
39,876
102,347
1,679,855
31,627
106,470
565,155
2,083,668
P a g e | 19
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 2
Loss before income tax (cont.)
2.2.1 Accounting policy
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Short-term benefits
a.
Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of
the reporting date represent present obligations resulting from employees' services provided to the reporting date and are
calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay at the
reporting date including related on-costs, such as workers compensation insurance and payroll tax.
Non-accumulating non-monetary benefits, such as medical care, housing, cars and free or subsidised goods and services,
are expensed based on the net marginal cost to the Group as the benefits are taken by the employees.
b. Other long-term benefits
The Group's obligation in respect of long-term employee benefits other than defined benefit plans is the amount of future
benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that
benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate
is the Reserve Bank of Australia's cash rate at the report date that have maturity dates approximating the terms of the
Company's obligations. Any actuarial gains or losses are recognised in profit or loss in the period in which they arise.
c. Retirement benefit obligations: Defined contribution superannuation funds
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions onto a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to
defined contribution superannuation funds are recognised as an expense in the income statement as incurred.
d. Termination benefits
When applicable, the Group recognises a liability and expense for termination benefits at the earlier of: (a) the date when
the Group can no longer withdraw the offer for termination benefits; and (b) when the Group recognises costs for
restructuring pursuant to AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the costs include
termination benefits. In either case, unless the number of employees affected is known, the obligation for termination
benefits is measured on the basis of the number of employees expected to be affected. Termination benefits that are
expected to be settled wholly before 12 months after the annual reporting period in which the benefits are recognised are
measured at the (undiscounted) amounts expected to be paid. All other termination benefits are accounted for on the same
basis as other long-term employee benefits.
e. Equity-settled compensation
The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair
value is measured at grant date and spread over the period during which the employees become unconditionally entitled
to the options. The fair value of the options granted is measured using the Black-Scholes pricing model, taking into
account the terms and conditions upon which the options were granted. The amount recognised is adjusted to reflect
the actual number of share options that vest except where forfeiture is only due to market conditions not being met.
Note 3
Other Significant Accounting Policies related to items of profit and loss
3.1
Finance income and expenses
Finance income comprises interest income on funds invested (including available-for-sale financial assets), gains on the
disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit
or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method.
Financial expenses comprise interest expense on borrowings calculated using the effective interest method, unwinding
of discounts on provisions, changes in the fair value of financial assets at fair value through profit or loss and impairment
losses recognised on financial assets. All borrowing costs are recognised in profit or loss using the effective interest
method.
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 income in
the period in which they are incurred.
Foreign currency gains and losses are reported on a net basis.
P a g e | 20
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 4
Income tax
Note
4.1
Income tax (benefit) / expense
Current tax
Deferred tax
Deferred income tax expense included in income tax expense comprises:
Increase / (decrease) in deferred tax assets
4.5
(Increase) / decrease in deferred tax liabilities
4.2
Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable/(benefit) on loss from ordinary activities
before income tax is reconciled to the income tax expense as follows:
Accounting loss before tax
Prima facie tax on operating loss at 27.5% (2019: 27.5%)
Add / (Less) tax effect of:
Non-deductible expenses
Non-assessable income
Temporary differences not recognised
Adjustments in the current year in relation to the deferred tax of
previous years
Effect of temporary differences that would be recognised directly in
equity
Effect of change in corporate tax rate
Other assessable income
Income tax expense attributable to operating loss
ANNUAL REPORT
30 June 2020
2020
$
706
-
706
-
-
-
2019
$
486
-
486
-
-
-
(1,051,612)
(4,894,020)
(289,193)
(1,345,856)
62,523
(25,735)
(86,449)
353,832
(18,281)
1,046,965
(4,814)
32,729
-
(69,389)
343,668
706
706
%
-
486
486
%
4.3
The applicable weighted average effective tax rates attributable to
operating profit are as follows:
(0.07)
(0.01)
a. The tax rates used in the above reconciliations is the corporate tax rate
of 27.5% payable by the Australian corporate entity on taxable profits
under Australian tax law. There has been no change in this tax rate
since the previous reporting year.
b. The foreign tax payable relates to the Philippines entities, where the
current corporate tax rate is 25%. The Philippines entities tax losses
have unrecognised deferred tax assets in relation to unutilised tax
losses carried forward for which no deferred tax asset has been
recorded as it is not probable that taxable profit will be available in the
foreseeable future.
4.4
4.5
Balance of franking account at year end of the parent
nil
nil
Deferred tax assets / (liabilities) not brought to accounts
Tax losses
Temporary differences
Net deferred tax assets
5,346,718
5,372,194
610,195
671,168
5,956,913
6,043,362
P a g e | 21
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 4
Income tax (cont.)
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note
2020
$
2019
$
4.6
Tax losses and deductible temporary differences
Unused tax losses and deductible temporary differences for which no
deferred tax asset has been recognised, that may be utilised to offset tax
liabilities:
Tax losses Australia
19,552,757
18,165,293
19,552,757
18,165,293
Potential deferred tax assets attributable to tax losses have not been brought to account at 30 June 2020 because the
directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time.
These benefits will only be obtained if:
i.
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
deductions for the loss to be realised;
ii. the company continues to comply with conditions for deductibility imposed by law; and
iii. no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the loss.
4.7
Accounting policy
The income tax expense or benefit for the period is the tax payable on the current year’s taxable income (loss) based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary difference and to unused tax losses.
The current income tax charge (benefit) is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be
paid to the tax authorities. (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted by the end of the reporting period.
Deferred income tax is provided on all temporary differences at the end of the reporting period between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
The carrying amount of deferred income tax assets is reviewed at the end of the reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised.
Unrecognised deferred income tax assets are reassessed at the end of the reporting period and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income
tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the
reporting period.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of profit and
loss and other comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation
authority.
Intiger Group Limited and its wholly owned Australian controlled entities have formed an income tax consolidated group
under tax consolidation legislation. Intiger Group Limited is the head entity of the tax consolidated group. Members of the
group are taxed as a single entity and the deferred tax assets and liabilities of the entities are set-off in the consolidated
financial statements.
P a g e | 22
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 4
Income tax (cont.)
ANNUAL REPORT
30 June 2020
n
2020
$
2019
$
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of
directors. These estimates consider both the financial performance and position of the company as they pertain to current
income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future
taxation legislation. The current income tax position represents that directors' best estimate, pending an assessment by tax
authorities in relevant jurisdictions.
Note 5
Financial assets and financial liabilities
5.1
Cash and cash equivalents
Cash at bank
5.1.1 Reconciliation of cash
Cash at the end of the financial 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
2020
$
85,747
85,747
2019
$
674,542
674,542
85,747
85,747
674,542
674,542
5.1.2 The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note
8 Financial risk management.
5.1.3 Cash Flow Information
2020
$
2019
$
a. Reconciliation of cash flow from operations to loss after income tax
Loss after income tax
(1,052,318)
(4,894,506)
Non-cash flows in (loss)/profit from ordinary activities:
Depreciation and amortisation
Impairment
Foreign exchange gain or loss
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries:
Decrease/(increase) in receivables
Decrease/(increase) in prepayments and other assets
Increase/(decrease) in trade and other payables
Decrease in provisions
Cash flow (used in)/generated from operations
636
13,832
1,766
90,247
6,944
24,189
(29,124)
939
2,042,887
(42,089)
(99,111)
42,906
(285,179)
(8,912)
-
(943,828)
-
(3,243,065)
-
P a g e | 23
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 5
Financial assets and financial liabilities (cont.)
5.1
Cash and cash equivalents (cont.)
b. Credit and loan standby arrangement with banks
The Group has no credit standby facilities.
c. Non-cash investing and financing activities
None
5.1.4 Accounting policy
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 that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within short-borrowings in
current liabilities on the Statement of financial position.
5.2
Trade and other receivables
5.2.1 Current
Trade receivable
Other receivables
5.2.2 Non-current
Deposits
Note
5.2.3
5.2.4
2020
$
4,076
12,140
16,216
6,289
6,289
2019
$
22,559
82,803
105,362
52,139
52,139
5.2.3 The Group's exposure to credit rate risk is disclosed in note 8 Financial risk management.
5.2.4 The average credit period on sales of goods and rendering of services is 30 days. Interest is not charged. No allowance has
been made for estimated irrecoverable trade receivable amounts arising from past sale of goods and rendering of services,
determined by reference to past default experience. Amounts are considered as ‘past due’ when the debt has not been
settled, within the terms and conditions agreed between the Group and the customer or counter party to the transaction.
5.2.5 Other receivables are non-interest bearing and expected to be received within 30 days.
5.2.6 Accounting policy
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised cost
using the effective interest rate method, less provision for impairment. Trade receivables are generally due for
settlement within periods ranging from 15 days to 30 days.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off
by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Group
will not be able to collect all amounts due according to the original contractual terms. Factors considered by the Group
in making this determination include known significant financial difficulties of the debtor, review of financial information
and significant delinquency in making contractual payments to the Group. The impairment allowance is set equal to the
difference between the carrying amount of the receivable and the present value of estimated future cash flows,
discounted at the original effective interest rate. Where receivables are short-term discounting is not applied in
determining the allowance.
The amount of the impairment loss is recognised in profit or loss within other expenses. When a trade receivable for
which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off
against the allowance account. Subsequent recoveries of amounts previously written off are credited against other
expenses in the consolidated statement of profit or loss and other comprehensive income. Collectability of trade and
other receivables are reviewed on an ongoing basis. An impairment loss is recognised for debts which are known to be
uncollectible. An impairment provision is raised for any doubtful amounts (see also note 5.7.1d).
P a g e | 24
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 5
Financial assets and financial liabilities (cont.)
5.2 Trade and other receivables (cont.)
ANNUAL REPORT
30 June 2020
The amount of the impairment loss is recognised in the statement of profit or loss and other comprehensive income within
other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in
a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written
off are credited against other expenses in the statement of profit or loss and other comprehensive income.
5.3 Other assets
5.3.1 Current
Prepayments
Other current assets
GST and other input taxes receivable.
Impairment of other input taxes receivable
5.4
Trade and other payables
5.4.1 Current
Unsecured
Trade payables
Accruals
Options issuable on conversion of notes
Employment related payables
Staff separation payments payable
Related party payables
Accrued interest on convertible notes
2020
$
-
-
2019
$
6,524
420
125,695
(121,069)
109,393
(107,237)
4,626
2020
$
67,226
113,746
66,667
27,245
-
-
1,929
9,100
2019
$
45,596
111,159
-
59,225
108,929
563
-
276,813
325,472
Note
5.4.2
5.4.3
5.6.2
5.4.2 Trade payables are non-interest bearing and usually settled within the lower of terms of trade or 30 days.
5.4.3
Included within the balance is an amount of $80,857 (2019: $51,275) payable to current directors.
5.4.4 The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note
8 Financial risk management.
5.4.5 Accounting policy
a.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged
to make future payments in respect of the purchase of these goods and services.
P a g e | 25
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 5
Financial assets and financial liabilities (cont.)
5.5
Financial liabilities
5.5.1 Current
Unsecured
Conversion rights
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note
5.5.2
2020
$
66,667
66,667
2019
$
-
-
5.5.2 On 16 December 2019, the Group entered into a Binding Terms Sheet with Adam Davey. On application of AASB 9 Financial
Instruments the Group accounts for convertible security financing on a present value basis and recognised the implicit value of
the conversion rights granted. The conversion rights will be recognised as equity on the extinguishment of the convertible note
for shares.
5.6
Borrowings
5.6.1 Current
Unsecured
Convertible notes
Note
2020
$
2019
$
5.6.2
200,000
200,000
-
-
5.6.2 On 27 December 2019, the Company issued 200,000 Convertible Notes with a face value of $1.00 and being converted or
otherwise redeemed on or before 13 June 2020. Each convertible note will, subject to the Company obtaining prior shareholders’
approval to the conversion of the notes, be convertible into Shares at a conversion price equal to:
a. A 25% discount to the lowest issue price of a capital raising of the Company exceeding $500,000, completed by the Company
during the term of the Convertible Notes; or
b. Otherwise, at the price which equals a 25% discount to the volume weighted average price of the Company’s shares in the
previous 5 trading days. (Conversion Price)
In addition, for every one share issued upon conversion of the Convertible Note, the Company will issue one free attaching
option at an exercise price equal to the Conversion Price, with an expiry date three years from the date of conversion. The
options to be issued are subject to the approval of the shareholders of the Company. The options have been recognised at the
implicit value of the exercise price.
Subject to shareholder approval interest is accrued daily at a rate of 8% per annum, payable by issue of interest shares upon the
redemption or conversion of the Note. In the event shareholders do not approve the payment of the Interest, the Company will
pay the Interest in cash together with a penalty fee of 10% of the Face Value of the Convertible Notes to the Subscriber (or its
nominee) on the date on which the Interest is payable.
The Company was also able to secure an extension of the redemption date of the Convertible Notes until 31 December
2020, as detailed in note 12.3.
Opening balance
Face value of notes issued
Conversion rights
Options issuable over ordinary shares
Finance costs
Closing balance
Present value
Finance costs
P a g e | 26
2020
$
-
200,000
(66,667)
(66,667)
66,666
133,334
200,000
200,000
-
200,000
2019
$
-
-
-
-
-
-
-
-
-
-
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 5
Financial assets and financial liabilities (cont.)
5.6
Borrowings (cont.)
5.6.3 Accounting policy
a. Convertible note liability
ANNUAL REPORT
30 June 2020
The liability component of a convertible note is recognised initially at the fair value of a similar liability that does not have an
equity conversion option. The embedded derivative component is recognised initially at fair value and the liability
component is calculated as the difference between the financial instrument as a whole and the value of the derivative at
inception. Any directly attributable transaction costs are allocated to the convertible note liability in proportion to their initial
carrying amounts. Subsequent to initial recognition, the liability component of the convertible note is measured at amortised
cost using the effective interest method.
5.7 Other Significant Accounting Policies related to Financial Assets and Liabilities
5.7.1
Investments and other financial assets
a. Classification
The group classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through OCI or through profit or loss), and
those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual terms of
the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in
equity instruments that are not held for trading, this will depend on whether the group has made an irrevocable election
at the time of initial recognition to account for the equity investment at fair value through other comprehensive income
(FVOCI).
The group reclassifies debt investments when and only when its business model for managing those assets changes.
b. Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the group commits
to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial
assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of
ownership.
c. Measurement
At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows
are solely payment of principal and interest.
P a g e | 27
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 5
Financial assets and financial liabilities (cont.)
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
5.7 Other Significant Accounting Policies related to Financial Assets and Liabilities (cont.)
i. Debt instruments
Subsequent measurement of debt instruments depends on the group’s business model for managing the asset and
the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its
debt instruments:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate method. Any gain or loss arising on
derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign
exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or
loss.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income
and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is
derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other gains/(losses). Interest income from these financial assets is included in finance income
using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses)
and impairment expenses are presented as separate line item in the statement of profit or loss.
FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a
debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises.
ii. Equity instruments
The group subsequently measures all equity investments at fair value. Where the group’s management has elected
to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to profit or loss following the derecognition of the investment. Dividends from such
investments continue to be recognised in profit or loss as other income when the group’s right to receive payments
is established.
Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit
or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI
are not reported separately from other changes in fair value.
d. Impairment
The group assesses on a forward-looking basis, the expected credit losses associated with its debt instruments carried at
amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables.
Note 6
Non-financial assets and financial liabilities
6.1
Property, plant, and equipment
Computer and Communication Equipment at cost
Less: Accumulated Depreciation
Total plant and equipment
P a g e | 28
2020
$
2,125
(2,125)
-
-
2019
$
2,125
(1,521)
604
604
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 6
Non-financial assets and financial liabilities (cont.)
6.2
Provisions
6.2.1 Current
Provision for employee entitlements
6.2.2 Description of provisions
ANNUAL REPORT
30 June 2020
Note
6.2.2
2020
$
24,806
24,806
2019
$
53,931
53,931
Provision for employee benefits represents amounts accrued for annual leave (AL) and long service leave (LSL). The
current portion for this provision includes the total amount accrued for AL entitlements and the amounts accrued for LSL
entitlements that have vested due to employees having completed the required period of service. The Group does not
expect the full amount of AL or LSL balances classified as current liabilities to be settled within the next 12 months.
However, these amounts must be classified as current liabilities since the Group does not have an unconditional right to
defer the settlement of these amounts in the event employees wish to use their leave entitlement.
6.2.3 Accounting policy
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the statement of comprehensive income net of any reimbursement.
Provisions are measured at the present value or management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised
as an interest expense.
6.3 Other Significant Accounting Policies related to Non-Financial Assets and Liabilities
6.3.1
Impairment of non-financial assets
The carrying amounts of the Group's non-financial assets, other than deferred tax assets (see accounting policy at note
4.7) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists then the asset's recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are
independent from other assets and groups. Impairment losses are recognised in the income statement, unless the asset
has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous
revaluation with any excess recognised through the income statement. Impairment losses recognised in respect of cash-
generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit on a pro rata basis.
The recoverable amount of an asset or cash-generating unit is the greater of its fair value less costs to sell and value in
use. In 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. For
an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no
impairment loss had been recognised.
P a g e | 29
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note 7
Equity
7.1
Issued capital
2020
No.
2019
No.
2020
$
2019
$
Fully paid ordinary shares at no par value
1,936,136,913
1,677,895,817
46,201,072
46,069,891
7.1.1 Ordinary shares
At the beginning of the year
Shares issued during the year:
Tranche 1 Placement at $0.01
Tranche 2 Placement at $0.01
Shares issued in lieu of cash
payment for convertible note
interest at $0.00075
Placement at $0.0005
Transaction costs relating to share
issues
2020
No.
2019
No.
2020
$
2019
$
1,677,895,817
1,377,895,817
46,069,891
43,322,215
-
-
100,000,000
200,000,000
-
-
1,000,000
2,000,000
8,241,096
250,000,000
-
-
-
-
6,181
125,000
-
-
-
(252,324)
At reporting date
1,936,136,913
1,677,895,817
46,201,072
46,069,891
7.1.2 Accounting policy
Ordinary issued capital is recorded at the consideration received. Incremental costs directly attributable to the issue of
ordinary shares and share options are recognised as a deduction from equity, net of any related income tax benefit. Ordinary
issued capital bears no special terms or conditions affecting income or capital entitlements of the shareholders.
7.2
Performance Shares
Note
Performance shares
At the beginning of the period
Performance shares
issued/(lapsed) during the year:
Selective Buy Back
Lapsed
At reporting date
7.2.1
7.2.2
2020
No.
-
-
-
-
-
2019
No.
-
500,000,000
(440,000,000)
(60,000,000)
-
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
7.2.1 During the 2019 year the company undertook a selective buy back of 440,000,000 performance shares at $0.00001 per
share.
7.2.2 During the 2019 year, the 60,000,000 performance shares on issue, being 30,000,000 Class A Performance Shares and
30,000,000 Class B Performance Shares were lapsed due to the milestones have not been met.
P a g e | 30
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 7
Equity (cont.)
ANNUAL REPORT
30 June 2020
7.3 Options
Note
2020
No.
2019
No.
2020
$
2019
$
Options
315,000,000
510,000,000
91,370
3,082,177
At the beginning of the period
Options issued/(lapsed) during the
year:
Options lapsed
1.50₵ free attaching options
options, expiry 31.10.2020
1.50₵ options, expiry 31.10.2020
1.50₵ free attaching options
options, expiry 31.10.2020
1.50₵ options, expiry 31.10.2020
19.1
19.1
510,000,000
195,000,000
3,082,177
2,990,809
(195,000,000)
-
(2,990,807)
-
-
-
-
100,000,000
5,000,000
200,000,000
10,000,000
-
-
-
-
-
-
30,916
-
60,452
At reporting date
315,000,000
510,000,000
91,370
3,082,177
7.4
Reserves
Foreign currency translation reserve
Share-based payment reserve
7.4.1 Foreign currency translation reserve
Note
7.4.1
7.4.2
2020
$
(48,476)
91,370
2019
$
(51,861)
3,082,177
42,894
3,030,316
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
7.4.2 Share-based payment reserve
The share-based payment reserve records the value of options and performance rights issued the Company to its
employees or consultants.
P a g e | 31
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
SECTION B. RISK
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s financial
position and performance.
Note 8
Financial risk management
8.1
Financial Risk Management Policies
This note presents information about the Group's exposure to each of the above risks, its objectives, policies and
procedures for measuring and managing risk, and the management of capital.
The Group's financial instruments consist mainly of deposits with banks, short-term investments, and accounts payable
and receivable. The Group does not speculate in the trading of derivative instruments.
A summary of the Group's Financial Assets and Liabilities is shown below:
Floating
Interest
Rate
$
85,747
-
85,747
-
-
-
$
-
-
-
-
-
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Financial liabilities at amortised
cost
Trade and other payables
Conversion rights
Borrowings
Total Financial Liabilities
Net Financial Assets /
(Liabilities)
Fixed
Interest
Rate
Non-
interest
Bearing
2020
Total
$
Floating
Interest
Rate
$
85,747
674,542
$
-
22,505
22,505
-
22,505
108,252
674,542
276,813
276,813
66,667
66,667
200,000
-
200,000
200,000
343,480
543,480
-
-
-
-
85,747
(200,000)
(320,975)
(435,228)
674,542
Fixed
Interest
Rate
Non-
interest
Bearing
2019
Total
$
674,542
$
-
157,501
157,501
157,501
832,043
325,472
325,472
-
-
-
-
325,472
325,472
(167,971)
506,571
$
-
-
-
-
-
-
-
-
8.2
Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk
consisting of interest rate, foreign currency risk and equity price risk.
The Board of directors has overall responsibility for the establishment and oversight of the risk management framework.
The Board adopts practices designed to identify significant areas of business risk and to effectively manage those risks in
accordance with the Group's risk profile. This includes assessing, monitoring and managing risks for the Group and setting
appropriate risk limits and controls. The Group is not of a size nor is its affairs of such complexity to justify the
establishment of a formal system for risk management and associated controls. Instead, the Board approves all
expenditure, is intimately acquainted with all operations and discuss all relevant issues at the Board meetings. The
operational and other compliance risk management have also been assessed and found to be operating efficiently and
effectively.
8.2.1 Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the Group.
The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the Group.
The objective of the Group is to minimise the risk of loss from credit risk. Although revenue from operations is minimal,
the Group trades only with creditworthy third parties.
P a g e | 32
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 8
Financial risk management (cont.)
ANNUAL REPORT
30 June 2020
In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts
is insignificant. The Group's maximum credit risk exposure is limited to the carrying value of its financial assets as
indicated on the statement of financial position.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and
other receivables.
Credit risk exposures
The maximum exposure to credit risk is to its alliance partners and is limited to the carrying amount, net of any
provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial
statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance with
approved Board’s policy. Such policy requires that surplus funds are only invested with financial institutions residing
in Australia, where ever possible.
Impairment losses
The ageing of the Group's trade and other receivables at reporting date was as follows:
Trade receivables
Not past due
Past due up to 60 days
Past due 60 days to 90 months
Past due over 90 months
Other receivables
Not past due
Total
8.2.2 Liquidity risk
Gross
2020
$
14,889
1,327
-
-
16,216
-
16,216
Impaired
2020
$
Past due but not
impaired
2020
$
Net
2020
$
-
-
-
-
-
-
14,889
1,327
-
-
16,216
-
16,216
-
1,327
-
-
1,327
-
1,327
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash
and marketable securities are available to meet the current and future commitments of the Group.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group's reputation.
Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a period of 60 days,
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters.
The financial liabilities of the Group include trade and other payables as disclosed in the statement of financial position.
All trade and other payables are non-interest bearing and due within 30 days of the reporting date.
P a g e | 33
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 8
Financial risk management (cont.)
Contractual Maturities
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
The following are the contractual maturities of financial assets and liabilities of the Group:
Within 1 Year
Greater Than 1 Year
Financial liabilities due for payment
Trade and other payables
Conversion rights (become equity)
Borrowings
2020
$
276,813
-
200,000
2019
$
325,472
-
-
Total contractual outflows
476,813
325,472
Financial assets
Cash and cash equivalents
Trade and other receivables
85,747
22,505
674,542
157,501
Total anticipated inflows
108,252
832,043
Net inflow/(outflow) on financial
instruments
(368,561)
506,571
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
2020
$
276,813
-
200,000
2019
$
325,472
-
-
476,813
325,472
85,747
22,505
674,542
157,501
108,252
832,043
(368,561)
506,571
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at
significantly different amounts.
8.2.3 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
The Board meets on a regular basis and considers the Group's interest rate risk.
a.
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. The Group is also exposed to earnings volatility on floating rate instruments.
Due to the low amount of debt exposed to floating interest rates, interest rate risk is not considered a high risk to the
Group. Movement in interest rates on the Group's financial liabilities and assets is not material.
b. Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating
due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are
other than the AUD functional currency of the Group.
The Group has no material exposure to foreign exchange risk.
c. Price risk
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Group does not presently hold material amounts subject to price risk. As such the Board
considers price risk as a low risk to the Group.
8.2.4 Sensitivity Analyses
The following table illustrates sensitivities to the Group's exposures to changes in interest rates. The table indicates the
impact on how profit and equity values reported at balance sheet date would have been affected by changes in the
relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the
movement in a particular variable is independent of other variables. Foreign exchange risk relates solely to the translation
of the Group’s foreign subsidiary, and as such has no effect on profit.
P a g e | 34
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 8
Financial risk management (cont.)
a. Interest rates
Year ended 30 June 2020
±100 basis points change in interest rates
Year ended 30 June 2019
±100 basis points change in interest rates
b. Foreign exchange
Year ended 30 June 2020
±10% of Australian dollar strengthening/weakening against the PHP
Year ended 30 June 2019
ANNUAL REPORT
30 June 2020
Profit
$
Equity
$
± 857
± 857
± 6,745
± 6,745
Profit
$
Equity
$
± nil
± 992
±10% of Australian dollar strengthening/weakening against the PHP
± nil
± 2,137
8.2.5 Net Fair Values
a. Fair value estimation
The fair values of financial assets and financial liabilities are presented in the table in note 8.1 and can be compared
to their carrying values as presented in the statement of financial position. Fair values are those amounts at which
an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length
transaction.
Financial instruments whose carrying value is equivalent to fair value due to their nature include:
Cash and cash equivalents;
Trade and other receivables; and
Trade and other payables.
The methods and assumptions used in determining the fair values of financial instruments are disclosed in the
accounting policy notes specific to the asset or liability.
Note 9
Capital Management
The Directors' objectives when managing capital are to ensure that the Group can maintain a capital base so as to
maintain investor, creditor and market confidence and to sustain future development of the business. The Board of
Directors monitors the availability of liquid funds in order to meet its short-term commitments.
The focus of the Group's capital risk management is the current working capital position against the requirements of the
Group in respect to its operations, software developments programmes, and corporate overheads. The Group's strategy
is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required. The working capital position of the Group were as follows:
Cash and cash equivalents
Trade and other receivables
Other current assets
Trade and other payables
Borrowings
Current provisions
Working capital position
Note
5.1
5.2
5.3
5.4
5.6
6.2
2020
$
85,747
16,216
4,626
(276,813)
(200,000)
(24,806)
2019
$
674,542
105,362
9,100
(325,472)
-
(53,931)
(395,030)
409,601
P a g e | 35
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
SECTION C. GROUP STRUCTURE
This section provides information which will help users understand how the group structure affects the financial position and
performance of the group as a whole. In particular, there is information about:
(a) changes to the structure that occurred during the year as a result of business combinations and the disposal of a discontinued
operation
(b) transactions with non-controlling interests, and
(c)
interests in joint operations.
A list of significant subsidiaries is provided in note 10.
Note 10
Interest in subsidiaries
10.1
Information about principal subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group
and the proportion of ownership interest held equals the voting rights held by the Group. Investments in subsidiaries are
accounted for at cost. Each subsidiaries country of incorporation is also its principal place of business:
Intiger Asset Management Pty Ltd
Intiger Asset Management Limited
Lion 2 Business Process, Inc
Country of
Incorporation
Australia
Hong Kong
Philippines
Class of
Shares
Ordinary
Ordinary
Ordinary
Percentage Owned
2020
100.0
100.0
100.0
2019
100.0
100.0
100.0
Note 11 Other Significant Accounting Policies related to Group Structure
11.1 Basis of consolidation
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended. Where controlled entities have entered (left) the Consolidated
Group during the year, their operating results have been included (excluded) from the date control was obtained (ceased).
11.1.1 Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which
control is transferred to the Group. Control exists when the Group is exposed to variable returns from another entity and
has the ability to affect those returns through its power over the entity.
The Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred; plus
the recognised amount of any non-controlling interests in the acquire; plus
if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree;
less
the net recognised amount of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to settlement of pre-existing relationships. Such amounts
are generally recognised in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs
in connection with a business combination are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is
classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to
the fair value of the contingent consideration are recognised in profit or loss.
P a g e | 36
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
ANNUAL REPORT
30 June 2020
Note 11 Other Significant Accounting Policies related to Group Structure (cont.)
11.1.2 Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the
Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even
if doing so causes the non-controlling interests to have a deficit balance.
A list of controlled entities is contained in note 10 Interest In Subsidiaries of the financial statements.
11.1.3 Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests
and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised
in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at
the date control is lost. Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.
11.1.4 Transactions eliminated on consolidation
All intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements.
P a g e | 37
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
SECTION D. UNRECOGNISED ITEMS
This section of the notes includes other information that must be disclosed to comply with the accounting standards and other
pronouncements, but that is not immediately related to individual line items in the financial statements.
Note 12 Events subsequent to reporting date
12.1 Bid Implementation Agreement to acquire Complii and Public Offer
On 30 September 2020, the Company signed a Bid Implementation Agreement (BIA) to acquire Complii FinTech Solutions
Limited (Complii) (the Proposed Acquisition).
The Proposed Acquisition will be completed by way of scrip for scrip off market takeover offer by the Company to acquire
all issued capital in Complii. As set out in the BIA, Intiger will offer to acquire all the Issued capital in Complii for a total
consideration of $6,200,000 comprising 124,000,000 shares in Intiger at an issue price of $0.05 per share (post-
consolidation). Intiger will undertake a consolidation of its share capital on an 80:1 basis (Consolidation). The BIA is
subject to the satisfaction of certain bid conditions which must be including re-compliance with Chapters 1 and 2 of the
ASX Listing Rules (Re-Compliance) and completion of a proposed capital raising to raised (Public Offer).
Under the terms of the BIA:
The Company will make the takeover bid for 100% of the issued capital of Complii. The consideration offered by
Intiger under the Takeover Bid will be:
◼ 1.24357915 Intiger Shares (on a post-consolidation basis);
◼ 0.31089478 Intiger Tranche 1 Options (on a post-consolidation basis); and
◼ 0.41452637 Intiger Tranche 2 Options (on a post-consolidation basis),
for every Complii share held as at the register date.
Total consideration for all Complii issued capital is 124,000,000 Intiger shares (post-consolidation), 41,333,333
unlisted options each with an exercise price of $0.05 and expiration date of 31 December 2022 and 31,000,000
unlisted options each with an exercise price of $0.10 and expiration date of 31 December 2023.
Completion of the Proposed Acquisition will be subject to the satisfaction of certain bid conditions which must be satisfied
or waived by Intiger, including:
Intiger having a relevant interest in at least 90% Complii shares at the end of the offer period;
Intiger obtaining all necessary regulatory and shareholder approvals required to complete the Proposed Acquisition
and the Public Offer, including, without limitation, shareholder approval to:
◼ Change in the nature and/or scale of Intiger’s activities in accordance with ASX Listing Rule 11.1.2, as required by
ASX;
◼ Undertake the Consolidation;
◼ Intiger receiving in-principle approval from ASX for the re-admission of its securities to the official list of ASX on
conditions acceptable to Intiger;
◼ Successful completion of the Public Offer at $0.05 per share (on a post-consolidation basis) (detailed below);
◼ the issue of the 5,000,000 Intiger shares (post-consolidation) for introduction and facilitation services provided
to Intiger, comprising 4,000,000 Intiger Shares which will be issued to Euroz (or its nominees) and 1,000,000
Intiger Shares which will be issued to Mr Michael Carter (or his nominees);
◼ the appointment of Ms Alison Sarich and Mr Craig Mason as directors of Intiger on and from completion of the
Takeover Offer;
◼ the issue of the 25,250,000 performance rights (post-consolidation) to Ms Alison Sarich and Mr Craig Mason;
◼ the adoption of an incentive performance rights plan; and
◼ the issue of the 5,213,698 shares and 10,000,000 options in respect to the convertible notes and related interest,
as detailed in in note 5.6.2.
To assist the Company to re-comply with Chapters 1 and 2 of the ASX Listing Rules the Company plans, subject to
Shareholder approval, to conduct a capital raising through the issue of a minimum of 100,000,000 Shares (on a post-
consolidation basis) at an issue price of $0.05 per Share to raise a minimum of $5,000,000 before costs (Minimum
Subscription) and a maximum of 140,000,000 Shares (on a post-consolidation basis) at an issue price of $0.05 per Share
to raise a maximum of $7,000,000 before costs (Maximum Subscription). The Public Offer will be conducted under a full
form prospectus
P a g e | 38
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 12 Events subsequent to reporting date (cont.)
12.2 Short-term funding
ANNUAL REPORT
30 June 2020
On 7 September 2020, the Company secured $40,000 in short-term unsecured funding from a director, Gregory Gaunt,
and an independent third-party, in connection with note 12.1 above. The terms of this funding are:
Term
The loan, which is interest-free, shall be repaid by the Borrower to the Lender on the earlier to occur
of (a) 31 December 2020; and (b) the date that is three months after the date of termination of the
BIA, or such other date agreed by the Company and lenders (Repayment Date)
Repayment
Unless otherwise agreed, the Company must repay the lender the $40,000 in cash on or before the
Repayment Date.
Default
While the loan remains outstanding, where the Company is or becomes insolvent, has a receiver or
administrator appointed to it, enters into any arrangement with its creditors or is wound up or has
proceedings commenced against it for its winding up, the loan shall immediately become due and
payable to the lenders at their option.
12.3 Extension to convertible notes repayment terms
In September 2020, the Company negotiated an extension to the conversion or repayment of the convertible notes, as
detailed in note 5.6.2, to 31 December 2020 for an additional cash fee of $16,000 and the issue on conversion of 5,213,698
shares and 10,000,000 options in respect to the convertible notes and related interest. All other terms on the notes
remain in effect.
Other than as noted in note 12.1 to 12.3, there has not been any other matter or circumstance that has arisen after balance date
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial periods.
Note 13 Commitments
13.1 Operating lease commitments - Group as lessee
Within one year
After one year but not more than five years
After five years
Total
13.2 Capital commitments
None.
Note 14 Contingent liabilities
There are no other contingent liabilities as at 30 June 2020 (2019: Nil).
2020
$
-
-
-
-
2019
$
6,787
-
-
6,787
P a g e | 39
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
SECTION E. OTHER INFORMATION
This section of the notes includes other information that must be disclosed to comply with the accounting standards and other
pronouncements, but that is not immediately related to individual line items in the financial statements.
Note 15 Key Management Personnel compensation (KMP)
The names and positions of KMP are as follows:
Mr Patrick Canion
Mr Mark Fisher
Mr Greg Gaunt
Mt Tim Thornton
Mr George Jaja
Non-executive Chairman
Non-executive Director
Non-executive Director
Interim Chief Executive Officer (appointed 1 November 2019)
Chief Executive Officer (resigned 1 November 2019)
Information regarding individual directors and executives’ compensation and some equity instruments disclosures as required
by the Corporations Regulations 2M.3.03 is provided in the Remuneration report table on page 7.
Short-term employee benefits
Post-employment benefits
Share-based payments
Total
Note 16 Related party transactions
2020
$
343,857
30,275
-
2019
$
340,235
32,322
-
374,132
372,557
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available
to other parties unless otherwise stated.
Note
2020
$
2019
$
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Included in Employment related payables in note 5.4 are amounts payable to
Directors in respect to accrued salary package. Accrued salary is included in the
Remuneration Report contained in the Directors' Report on page 7. Accrued
salary for each of the director as follows:
Mark Fisher
Patrick Canion
Greg Gaunt
Squire Patton Boggs, a law firm where Mr Chong is a partner, provided general
legal services to the Group. These services were not provided by Mr Chong and
were therefore not included in the Remuneration Report contained in the
Directors' Report on page 7.
28,357
35,000
17,500
51,275
-
-
-
34,828
P a g e | 40
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 17 Auditor's remuneration
Remuneration of the auditor for:
Auditing or reviewing the financial reports:
Bentleys
Note 18 Earnings per share (EPS)
Note
ANNUAL REPORT
30 June 2020
2020
$
32,500
32,500
2020
$
2019
$
42,000
42,000
2019
$
18.1 Reconciliation of earnings to profit or loss
Loss for the year
(1,052,318)
(4,894,506)
Loss used in the calculation of basic and diluted EPS
(1,052,318)
(4,894,506)
2020
No.
2019
No.
18.2 Weighted average number of ordinary shares outstanding
during the year used in calculation of basic EPS
1,619,627,638
1,605,643,070
Weighted average number of dilutive equity instruments outstanding
18.5
N/A
N/A
18.3 Weighted average number of ordinary shares outstanding
during the year used in calculation of basic EPS
1,619,627,638
1,605,643,070
18.4 Earnings per share
Basic EPS (cents per share)
Diluted EPS (cents per share)
2020
₵
(0.06)
N/A
18.5
18.5
2019
₵
(0.30)
N/A
18.5 As at 30 June 2020 the Group has 315,000,000 unissued shares under options (2019: 510,000,000) and nil performance shares
on issue (2019: nil). The Group does not report diluted earnings per share on losses generated by the Group. During the 2020
year the Group's unissued shares under option and partly-paid shares were anti-dilutive.
P a g e | 41
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 19 Share-based payments
19.1 Share-based payments:
Share-based payment expense
Net share-based payment recognised in Profit or Loss
Share-based payment expense recognised in issued capital
Gross share-based transactions
19.2 Share-based payment arrangements in effect during the period
19.2.1 Share-based payments recognised in issued capital
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Note
19.2
2020
$
-
-
-
-
2019
$
-
-
91,367
91,367
Number under Option
Date of Expiry
Exercise Price
Vesting Terms
5,000,000 (1)
10,000,000 (2)
31 October 2020
31 October 2020
$0.015
$0.015
Immediately upon issue
Immediately upon issue
1 Unquoted options issued to the lead manager of the Tranche 1 raise of $1m. Unquoted exercisable at $0.015 on or before 31 October
2020. These options were valued as $30,916 on grant date.
2 Unquoted options issued to the lead manager of the Tranche 2 raise of $2m. Unquoted exercisable at $0.015 on or before 31 October
2020. These options were valued as $60,451 on grant date.
19.2.2 Share-based payments recognised in profit or loss in prior periods
Number under Option
Date of Expiry
Exercise Price
Vesting Terms
55,000,000 (1)
50,000,000 (1)
50,000,000 (2)
40,000,000 (3)
30 June 2020
30 June 2020
30 June 2020
30 June 2020
$0.025
$0.02
$0.02
$0.02
Immediately upon issue
Immediately upon issue
Immediately upon issue
Immediately upon issue
1 Unquoted options issued pursuant to the Incentive Option Plan in consideration for services to be provided by certain employees of the
Company. Unquoted exercisable at $0.025 on or before 30 June 2020. These options were valued as $561,983 on grant date.
2 Unquoted options issued for the introduction of the Intiger Group to the Company. Unquoted exercisable at $0.02 on or before 30
June 2020. These options were valued as $1,176,333 on grant date.
3 Unquoted options were issued as consideration for the purchase of Intiger Asset Management Pty Ltd and associated entities. These
options were valued as $1,176,333 on grant date.
4 Options were issued on 21 April 2017 pursuant to the Company’s Employee Incentive Scheme in consideration for services to be
provided by certain employees of the Company subject to the following vesting conditions:
(i) 12,500,000 vest and become exercisable upon the aggregate audited consolidated net profit after tax of the Intiger Group being
not less than A$1 million between the date of issue of the Options and 30 June 2020;
(ii) 12,500,000 vest and become exercisable upon the aggregate audited consolidated net profit after tax of the Intiger Group being
not less than A$4 million between the date of issue of the Options and 30 June 2020;
(iii) 7,500,000 vest and become exercisable upon the aggregate audited consolidated net profit after tax of the Intiger Group being
not less than A$11 million between the date of issue of the Options and 30 June 2020; and
(iv) 7,500,000 vest and become exercisable upon the aggregate audited consolidated net profit after tax of the Intiger Group being
not less than A$40 million between the date of issue of the Options and 30 June 2020.
These options were valued as $76,158 on grant date.
P a g e | 42
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 19 Share-based payments (cont.)
ANNUAL REPORT
30 June 2020
19.3 Movement in share-based payment arrangements during the period
A summary of the movements of all Company options issued as share-based payments is as follows:
2020
2019
Number of Options
Number of Options
Weighted Average
Exercise Price
Weighted Average
Exercise Price
Outstanding at the beginning of the year
510,000,000
$0.0214
Granted
Exercised
Expired
-
-
-
-
(195,000,000)
$0.0214
195,000,000
315,000,000
$0.0214
$0.0150
-
-
-
-
Outstanding at year-end
315,000,000
$0.015
510,000,000
$0.0175
Exercisable at year-end
315,000,000
$0.015
510,000,000
$0.0175
a. No options were exercised during the year.
b. The weighted average remaining contractual life of options outstanding at year end was 0.34 years (2019: 1.21 years).
The weighted average exercise price of outstanding shares at the end of the reporting period was $0.015 (2019:
$0.0175).
c. The fair value of the options granted to employees is deemed to represent the value of the employee services received
over the vesting period.
19.4 Fair value of options grants during the period
No options issued during the year. The fair value of the options granted to employees is deemed to represent the value
of the employee services received over the vesting period.
The weighted average fair value of options granted during the year was $nil (2019: $0.0060). These values were calculated
using the Black-Scholes option pricing model, applying the following inputs to options issued in prior year:
Grant date:
29 August 2018
11 October 2018
Grant date share price:
Option exercise price:
$0.013
$0.015
$0.013
$0.015
Number of options issued:
5,000,000
10,000,000
Expiry Date
31 October 2020
31 October 2020
Expected share price volatility:
Risk-free interest rate:
Value per option
91%
1.96%
91%
2.02%
$0.0062
$0.0060
Historical volatility has been the basis for determining expected share price volatility as it is assumed that this is
indicative of future movements.
The life of the options is based on the historical exercise patterns, which may not eventuate in the future.
19.4.1 Accounting policy
The grant-date fair value of equity-settled share-based payment arrangements granted to holders of equity-based
instruments (including employees) are generally recognised as an expense, with a corresponding increase in equity, over the
vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which
the related service and non-market performance conditions are expected to be met, such that the amount ultimately
recognised is based on the number of awards that meet the related service and non-market performance conditions at the
vesting date.
P a g e | 43
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 19 Share-based payments (cont.)
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
For share-based payment awards with non-market conditions, the grant-date fair value of the share-based payment is
measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. In
determining the fair value of share-based payments granted, a key estimate and judgement is the volatility input assumed
within the pricing model.
The Company uses historical volatility of the Company to determine an appropriate level of volatility expected,
commensurate with the expected instrument’s life
19.4.2 Key estimate
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes
option pricing model, using the assumptions detailed above.
Note 20 Operating segments
20.1
Identification of reportable segments
The Group has identified its operating segment based on the internal reports that are reviewed and used by the Board
of Directors in assessing performance and determining the allocation of resources. Operating segments are presented in
a manner consistent with the internal reporting provided to the chief operating decision makers (CODM). The CODM is
responsible for the allocation of resources to operating segments and assessing their performance, and has been
identified as the Board Directors of the Company. For the current reporting period, the Group operated in one segment,
being the financial technology platform sector.
The financial information presented in the consolidated statement of comprehensive income and the consolidated
statement of financial position is the same as that presented to the chief operating decision maker.
20.2 Basis of accounting for purposes of reporting by operating segments
20.2.1 Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of directors as the chief operating decision maker is in
accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.
During the current period, the Group is considered to operate in one segment, being the digital and offshore processing
financial planning sector.
20.3 Revenue by geographical region
Revenue attributable to external customers is disclosed below, based on
the location of the external customer:
Australia
Total revenue
20.4 Assets by geographical region
The location of segment assets by geographical location of the assets is
disclosed below:
Australia
Philippines
Total assets
20.5 Major customers
2020
$
2019
$
160,125
160,125
511,716
511,716
98,544
14,334
112,878
646,076
195,669
841,745
The Group has a number of customers to whom it provides services. The Group supplies a single external customer who
accounts for 22% of the external revenue (2019: 22%). The next most significant client accounts of 20% (2019: 19%) of
external revenue.
P a g e | 44
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 21 Parent entity disclosures
Intiger Group Limited is the ultimate Australian parent entity and ultimate parent of the Group.
Intiger Group Limited did not enter into any trading transactions with any related party during the year.
ANNUAL REPORT
30 June 2020
21.1 Financial Position of Intiger Group Limited
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net (liabilities)/assets
Equity
Issued capital
Share-based payment reserve
Accumulated losses
Total equity
21.2 Financial performance of Intiger Group Limited
Loss for the year
Other comprehensive income
Total comprehensive income
21.3 Guarantees
2020
$
2019
$
83,599
679,211
-
-
83,599
679,211
561,375
561,375
216,867
216,867
(477,776)
462,344
46,201,072
46,069,891
91,368
3,082,175
(46,770,216)
(48,689,722)
(477,776)
462,344
2020
$
2019
$
(1,071,301)
(6,730,011)
-
-
(1,071,301)
(6,730,011)
There are no guarantees entered into by Intiger Group Limited for the debts of its subsidiaries as at 2020 (2019: none).
21.4 Contractual commitments
The parent company has no capital commitments at 2020 (2019: $nil). The parent company other commitments are
disclosed in note 13 Commitments.
21.5 Contingent liabilities
There are no guarantees entered into by Intiger Group Limited for the debts of its subsidiaries as at 2020 (2019: none).
P a g e | 45
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 22 Statement of significant accounting policies
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements
to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the
years presented, unless otherwise stated.
22.1 Basis of preparation
22.1.1 Reporting Entity
Intiger Group Limited (Intiger or the Company) is a listed public company limited by shares, domiciled and incorporated in
Australia. These are the consolidated financial statements and notes of Intiger and controlled entities (collectively the
Group). The financial statements comprise the consolidated financial statements of the Group. For the purposes of preparing
the consolidated financial statements, the Company is a for-profit entity. The Group is a for-profit entity and is primarily
involved in the financial services industry.
The separate financial statements of Intiger, as the parent entity, have not been presented with this financial report as
permitted by the Corporations Act 2001 (Cth).
22.1.2 Basis of accounting
These financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board (AAS Board) and
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and the
Corporations Act 2001 (Cth).
Australian Accounting Standards (AASBs) set out accounting policies that the AAS Board has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions to which they apply.
Compliance with AASBs ensures that the financial statements and notes also comply with IFRS as issued by the IASB.
The financial statements were authorised for issue on 30 September 2020 by the Directors of the Company.
22.1.3 Going Concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Group incurred a loss for the year of $1,052,318 (2019: $4,894,506 loss) and a net cash out-flow from operating activities
of $943,828 (2019: $3,243,065 out-flow). As at 30 June 2020, the Company a working capital deficit of $395,030 (2019:
$409,601 working capital), as disclosed in note 9 of the Issued capital note.
This financial report is prepared on the going concern basis, which contemplates continuity of normal business activities and
realisation of assets and settlement of liabilities in the ordinary course of business. The ability of the Group to continue to
pay its debts as and when they fall due is dependent upon the Group's ability to generate positive cash flows through its
existing business and/or raising of further equity.
The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all
commitments and working capital requirements for the 12-month period from the date of signing this financial report.
As noted in note 12 Events subsequent to reporting date, the Company has:
a.
Entered into Bid Implementation Agreement to acquire Complii which includes a Public Offer of up to $7,000,000 (refer
note 12.1);
b.
Secured short-term funding from a director, Gregory Gaunt, and an independent third-party, of $40,000 (refer note
12.2); and
c. Obtained an extension to the repayment terms of the convertible notes repayments terms to 31 December 2020 (refer
note 12.3).
Based on the cash flow forecast and other factors referred to above, the directors are satisfied that the going concern basis
of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the directors are confident
of the Company’s ability to raise additional funds as and when they are required.
Should the Group’s cash flows deviate from the cash flow forecast, a material uncertainty will exist that cast significant doubt
on the Group’s ability to continue as a going concern and it may be required to realise its assets and extinguish its liabilities
other than in the normal course of business and at amounts different to those stated in the financial statements. The
financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going
concern and meet its debts as and when they fall due.
P a g e | 46
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 22 Statement of significant accounting policies
22.1.4 Comparative figures
ANNUAL REPORT
30 June 2020
Where required by AASBs comparative figures have been adjusted to conform to changes in presentation for the current
financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its
financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in
addition to the minimum comparative financial statements is presented.
22.1.5 Accounting Standards and Interpretations that are mandatorily effective for the current reporting period
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or after
1 January 2019.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to
the Group include:
a. AASB 16: Leases
AASB 16 removes the classification of leases as either operating leases or finance leases for the lessee effectively treating
all leases as finance leases. Short term leases (less than 12 months) and leases of a low value are exempt from the lease
accounting requirements. Lessor accounting remains similar to current practice. The adoption of this standard has no
material financial impact on the financial statement of the Group.
22.2 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 taxation authority. 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.
The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as a current asset or
liability in the statement of financial position.
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.
22.3 Foreign currency transactions and balances
22.3.1 Functional and presentation currency
The functional currency of each of the Group's entities is measured using the currency of the primary economic environment
in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent
entity's functional and presentation currency.
22.3.2 Transaction and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying 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.
All exchange differences in the consolidated financial report are taken to profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value was determined.
22.3.3 Group companies and foreign operations
The financial results and position of foreign operations whose functional currency is different from the Group's presentation
currency are translated as follows:
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign currency
translation reserve in the statement of financial position. These differences are recognised in the profit or loss in the period
in which the operation is disposed.
P a g e | 47
ANNUAL REPORT
30 June 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 22 Statement of significant accounting policies
22.4 Use of estimates and judgments
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
The preparation of consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
These estimates and associated assumptions are based on historical experience and various factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
Judgements made by management in the application of AASBs that have significant effect on the consolidated financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in note 22.4.1.
22.4.1 Critical Accounting Estimates and Judgments
Management discusses with the Board the development, selection and disclosure of the Group's critical accounting policies
and estimates and the application of these policies and estimates. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below.
a. Key estimate – Taxation
Refer note 4 Income Tax.
b. Key estimate – Impairment of Share-based payments
Refer note 19 Share-based payments.
22.5 Fair Value
22.5.1 Fair Value of Assets and Liabilities
The Group 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 AASB.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly
unforced transaction between independent, knowledgeable and willing market participants at the measurement date.
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).
For non-financial assets, the fair value measurement also considers 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
instruments, 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.
22.5.2 Fair value hierarchy
AASB 13 Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements based on quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date.
Measurements based on inputs other than
quoted prices included in Level 1 that are
observable for the asset or liability, either
directly or indirectly.
Measurements based on unobservable
inputs for the asset or liability.
P a g e | 48
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 22 Statement of significant accounting policies
ANNUAL REPORT
30 June 2020
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. If all significant
inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant
inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e.
transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.
22.5.3 Valuation techniques
The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the
asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of the
following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated by market transactions
for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the
asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to those
techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are
developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that
buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for
which market data is not available and therefore are developed using the best information available about such assumptions
are considered unobservable.
22.6 Non-current assets held for disposal and discontinued operations
Non-current assets and disposal groups are classified as held for sale and measured at the lower of carrying amount and fair
value less costs to sell, where the carrying amount will be recovered principally through sale as opposed to continued use.
No depreciation or amortisation is charged against assets classified as held for sale.
Classification as "held for sale" occurs when: management has committed to a plan for immediate sale; the sale is expected
to occur within one year from the date of classification; and active marketing of the asset has commenced. Such assets are
classified as current assets.
A discontinued operation is a component of an entity, being a cash-generating unit (or a group of cash generating units),
that either has been disposed of, or is classified as held for sale, and: represents a separate major line of business or
geographical area of operations; is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations; or is a subsidiary acquired exclusively with the view to resale.
Impairment losses are recognised for any initial or subsequent write-down of an asset (or disposal group) classified as held
for sale to fair value less costs to sell. Any reversals of impairment recognised on classification as held for sale or prior to
such classification are recognised as a gain in profit or loss in the period in which it occurs.
22.7 New Accounting Standards and Interpretations not yet mandatory or early adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2020
reporting periods and have not been early adopted by the Group. These standards are not expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
Note 23 Company details
The registered office of the Company is:
Address:
Street:
Level 1, 247 Oxford Street
LEEDERVILLE WA 6007
+61 (0)8 6141 3500
+61 (0)8 6141 3599
Telephone:
Facsimile:
Postal:
PO Box 52
WEST PERTH WA 6872
P a g e | 49
ANNUAL REPORT
30 June 2020
Directors' declaration
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 13 to 49, are in accordance with the Corporations Act 2001 (Cth) and:
(a) comply with Accounting Standards;
(b) are in accordance with International Financial Reporting Standards issued by the International Accounting Standards
Board, as stated in Note 1 to the financial statements; and
(c) give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended on that
date of the Group.
(d) the Directors have been given the declarations required by s.295A of the Corporations Act 2001 (Cth);
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 and is signed for and on behalf of the directors
by:
PATRICK CANION
Chairman
Dated this Wednesday, 30 September 2020
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Independent auditor's report
ANNUAL REPORT
30 June 2020
P a g e | 51
ANNUAL REPORT
30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
ANNUAL REPORT
30 June 2020
P a g e | 53
ANNUAL REPORT
30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Corporate governance statement
ANNUAL REPORT
30 June 2020
This Corporate Governance Statement is current as at 30 September 2020 and has been approved by the Board of the Company.
This Corporate Governance Statement discloses the extent to which the Company will follow the recommendations set by the
ASX Corporate Governance Council in its publication Corporate Governance Principles and Recommendations 3rd Edition
(Recommendations). The Recommendations are not mandatory, however the Recommendations that will not be followed have
been identified and reasons for not following them, along with what (if any) alternative governance practices have been adopted
in lieu of the Recommendation.
On 2 July 2020, the Board approved a new Corporate Governance Plan in line with the ASX Corporate Governance Principles and
Recommendations 4th Edition (Recommendations). The Company will be reporting against these recommendations for the
financial year ending 30 June 2021.
The Company has adopted Corporate Governance Policies which provide written terms of reference for the Company’s corporate
governance practices. The Board of the Company has not yet formed an audit committee, nomination committee, risk
management committee or remuneration committee.
The Company’s Corporate Governance Policies are contained within the Corporate Governance Plan and available on the
Company’s website at www.intigergrouplimited.com.au
Principle 1: Lay solid foundations for management and oversight
Roles of the Board & Management
The role of the Board is to provide overall strategic guidance and effective oversight of management. The Board derives its
authority to act from the Company’s Constitution.
The Board is responsible for and has the authority to determine all matters relating to the strategic direction, policies, practices,
establishing goals for management and the operation of the Company. The Board shall delegate responsibility for the day-to-
day operations and administration of the Company to the Chief Executive Officer.
The role of management is to support the Chief Executive Officer and implement the running of the general operations and
financial business of the Company, in accordance with the delegated authority of the Board.
In addition to matters it is expressly required by law to approve, the Board has reserved the following matters to itself:
Driving the strategic direction of the Company, ensuring appropriate resources are available to meet objectives and
monitoring management’s performance;
Appointment, and where necessary, the replacement, of the Chief Executive Officer and other senior executives and the
determination of their terms and conditions including remuneration and termination;
Approving the Company’s remuneration framework;
Monitoring the timeliness and effectiveness of reporting to Shareholders;
Reviewing and ratifying systems of audit, risk management and internal compliance and control, codes of conduct and legal
compliance to minimise the possibility of the Company operating beyond acceptable risk parameters;
Approving and monitoring the progress of major capital expenditure, capital management and significant acquisitions and
divestitures;
Approving and monitoring the budget and the adequacy and integrity of financial and other reporting such that the financial
performance of the company has sufficient clarity to be actively monitored;
Approving the annual, half yearly and quarterly accounts;
Approving significant changes to the organisational structure;
Approving decisions affecting the Company’s capital, including determining the Company’s dividend policy and declaring
dividends;
Ensuring a high standard of corporate governance practice and regulatory compliance and promoting ethical and responsible
decision making;
P a g e | 55
ANNUAL REPORT
30 June 2020
Corporate governance statement
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Procuring appropriate professional development opportunities for Directors to develop and maintain the skills and
knowledge needed to perform their role as Directors effectively;
Ensuring that the Company acts legally and responsibly on all matters and assuring itself that the Company has adopted, and
that its practice is consistent with, a number of guidelines including:
− Corporate Code of Conduct;
− Continuous Disclosure Policy;
− Diversity Policy;
− Performance Evaluation;
− Procedures for Selection and Appointment of Directors;
− Risk Management Review Procedure and Internal Compliance and Control Policy;
− Trading Policy; and
− Shareholder Communication Strategy.
Subject to the specific authorities reserved to the Board under the Board Charter, the Board delegates to the Chief Executive
Officer responsibility for the management and operation of Intiger. The Chief Executive Officer is responsible for the day-to-day
operations, financial performance and administration of Intiger within the powers authorised to him from time-to-time by the
Board. The Chief Executive Officer may make further delegation within the delegations specified by the Board and will be
accountable to the Board for the exercise of those delegated powers.
Further details of Board responsibilities, objectives and structure are set out in the Board Charter which is contained within the
Corporate Governance Place available on the Intiger website.
Board Committees
The Board considers that the Company is not currently of a size, nor are its affairs of such complexity to justify the formation of
separate committees at this time including audit and risk, remuneration or nomination committees, preferring at this stage of
the Company’s development, to manage the Company through the full Board of Directors. The Board assumes the responsibilities
normally delegated to the audit and risk, remuneration and nomination Committees.
If the Company’s activities increase, in size, scope and nature, the appointment of separate committees will be reviewed by the
Board and implemented if appropriate.
Board Appointments
The Company undertakes comprehensive reference checks prior to appointing a director, or putting that person forward as a
candidate to ensure that person is competent, experienced, and would not be impaired in any way from undertaking the duties
of director. The Company provides relevant information to shareholders for their consideration about the attributes of candidates
together with whether the Board supports the appointment or re-election.
The terms of the appointment of a non-executive director, executive directors and senior executives are agreed upon and set out
in writing at the time of appointment.
The Company Secretary
The Company Secretary is accountable directly to the Board, through the Chairman, on all matters to do with the proper
functioning of the Board, including agendas, Board papers and minutes, advising the Board and its Committees (as applicable) on
governance matters, monitoring that the Board and Committee policies and procedures are followed, communication with
regulatory bodies and the ASX and statutory and other filings.
Diversity
The Board has adopted a Diversity Policy which provides a framework for the Company to establish and achieve measurable
diversity objectives, including in respect to gender, age, ethnicity and cultural diversity. The Diversity Policy allows the Board to
set measurable gender diversity objectives (if considered appropriate) and to assess annually both the objectives (if any have
been set) and the Company’s progress towards achieving them.
P a g e | 56
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Corporate governance statement
ANNUAL REPORT
30 June 2020
The Board considers that, due to the size, nature and stage of development of the Company, setting measurable objectives for
the Diversity Policy at this time is not appropriate. The Board will consider setting measurable objectives as the Company
increases in size and complexity.
The participation of women in the Company at the date of this report is as follows:
Women employees in the Company
Women in senior management positions
Women on the Board
75%
0%
0%
The Company’s Diversity Policy is contained within the Corporate Governance Plan and is available on its website.
Board & Management Performance Review
On an annual basis, the Board conducts a review of its structure, composition and performance.
The annual review includes consideration of the following measures:
comparing the performance of the Board against the requirements of its Charter;
assessing the performance of the Board over the previous 12 months having regard to the corporate strategies, operating
plans and the annual budget;
reviewing the Board’s interaction with management;
reviewing the type and timing of information provided to the Board by management;
reviewing management’s performance in assisting the Board to meet its objectives; and
identifying any necessary or desirable improvements to the Board Charter.
The method and scope of the performance evaluation will be set by the Board and may include a Board self-assessment checklist
to be completed by each Director. The Board may also use an independent adviser to assist in the review.
The Chairman has primary responsibility for conducting performance appraisals of Non-Executive Directors, in conjunction with
them, having particular regard to:
contribution to Board discussion and function;
degree of independence including relevance of any conflicts of interest;
availability for and attendance at Board meetings and other relevant events;
contribution to Company strategy;
membership of and contribution to any Board committees; and
suitability to Board structure and composition.
The Board conducts an annual performance assessment of the Chief Executive Officer against agreed key performance indicators.
Management performance reviews were conducted during the year in accordance with the above processes. The Board has not
been subjected to a formal review in the past year.
Independent Advice
Directors have a right of access to all Company information and executives. Directors are entitled, in fulfilling their duties and
responsibilities, may seek independent external professional advice as considered necessary at the expense of the Company,
subject to prior consultation with the Chairman. A copy of any such advice received is made available to all members of the Board.
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ANNUAL REPORT
30 June 2020
Corporate governance statement
Principle 2: Structure the board to add value
Board Composition
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
During the financial year and as at the date of this report the Board was comprised of the following members:
Mr Patrick Canion
Non-Executive Chairman (appointed 17 August 2016);
Mr Mark Fisher
Mr Greg Gaunt
Non-Executive Director (appointed 17 August 2016); and
Non-Executive Director (appointed 1 March 2019.
The Board consists of a majority of Non-Executive Directors.
Intiger has adopted a definition of 'independence' for Directors that is consistent with the Recommendations.
Mr Fisher is not considered to be independent as he has been an executive of the Company during the past three years.
Board Selection Process
The Board considers that a diverse range of skills, backgrounds, knowledge and experience is required in order to effectively
govern Intiger. The Board believes that orderly succession and renewal contributes to strong corporate governance and is
achieved by careful planning and continual review.
The Board is responsible for the nomination and selection of directors. The Board reviews the size and composition of the Board
regularly and at least once a year as part of the Board evaluation process.
The Board will establish a Board Skills Matrix. The Board Skills Matrix will include the following areas of knowledge and expertise:
Strategic expertise;
Specific industry knowledge;
Accounting and finance;
Risk management;
Experience with financial markets; and
Investor relations.
Induction of New Directors and Ongoing Development
New Directors are issued with a formal Letter of Appointment that sets out the key terms and conditions of their appointment,
including Director's duties, rights and responsibilities, the time commitment envisaged, and the Board's expectations regarding
involvement with any Committee work.
An induction program is in place and new Directors are encouraged to engage in professional development activities to develop
and maintain the skills and knowledge needed to perform their role as Directors effectively.
Principle 3: Act ethically and responsibly
The Company has implemented a Code of Conduct, which provides a framework for decisions and actions in relation to ethical
conduct in employment. It underpins the Company’s commitment to integrity and fair dealing in its business affairs and to a duty
of care to all employees, clients and stakeholders.
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Corporate governance statement
All employees and Directors are expected to:
respect the law and act in accordance with it;
maintain high levels of professional conduct;
ANNUAL REPORT
30 June 2020
respect confidentiality and not misuse Company information, assets or facilities;
avoid real or perceived conflicts of interest;
act in the best interests of shareholders;
by their actions contribute to the Company’s reputation as a good corporate citizen which seeks the respect of the community
and environment in which it operates;
perform their duties in ways that minimise environmental impacts and maximise workplace safety;
exercise fairness, courtesy, respect, consideration and sensitivity in all dealings within their workplace and with customers,
suppliers and the public generally; and
act with honesty, integrity, decency and responsibility at all times.
An employee that breaches the Code of Conduct may face disciplinary action including, in the cases of serious breaches, dismissal.
If an employee suspects that a breach of the Code of Conduct has occurred or will occur, he or she must report that breach to
the Company Secretary. No employee will be disadvantaged or prejudiced if he or she reports in good faith a suspected breach.
All reports will be acted upon and kept confidential.
Principle 4: Safeguard integrity in corporate reporting
The Board as a whole fulfils to the functions normally delegated to the Audit Committee as detailed in the Audit and Risk
Committee Charter.
The Board is responsible for the initial appointment of the external auditor and the appointment of a new external auditor when
any vacancy arises. Candidates for the position of external auditor must demonstrate complete independence from the Company
through the engagement period. The Board may otherwise select an external auditor based on criteria relevant to the Company’s
business and circumstances. The performance of the external auditor is reviewed on an annual basis by the Board.
The Board receives regular reports from management and from external auditors. It also meets with the external auditors as and
when required.
The external auditors attend Intiger's AGM and are available to answer questions from security holders relevant to the audit.
Prior approval of the Board must be gained for non-audit work to be performed by the external auditor. There are qualitative
limits on this non-audit work to ensure that the independence of the auditor is maintained.
There is also a requirement that the lead engagement partner responsible for the audit not perform in that role for more than
five years.
CEO and CFO Certifications
The Board, before it approves the entity’s financial statements for a financial period, receives from its CEO and CFO (or, if none,
the persons fulfilling those functions) a declaration provided in accordance with Section 295A of the Corporations Act that, in
their opinion, the financial records of the entity have been properly maintained and that the financial statements comply with
the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and
that the opinion has been formed on the basis of a sound system of risk management and internal control which is operating
effectively.
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ANNUAL REPORT
30 June 2020
Corporate governance statement
Principle 5: Make timely and balanced disclosure
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
The Company has a Continuous Disclosure Policy which outlines the disclosure obligations of the Company as required under the
ASX Listing Rules and Corporations Act. The policy is designed to ensure that procedures are in place so that the market is
properly informed of matters which may have a material impact on the price at which Company securities are traded.
The Board considers whether there are any matters requiring disclosure in respect of each and every item of business that it
considers in its meetings. Individual Directors are required to make such a consideration when they become aware of any
information in the course of their duties as a Director of the Company.
The Company is committed to ensuring all investors have equal and timely access to material information concerning the
Company.
The Board has designated the Company Secretary as the person responsible for communicating with the ASX. All key
announcements at the discretion of the Chief Executive Officer are to be circulated to and reviewed by all members of the Board.
The Chairman, the Board, Chief Executive Officer and the Company Secretary are responsible for ensuring that:
a)
b)
Company announcements are made in a timely manner, that announcements are factual and do not omit any material
information required to be disclosed under the ASX Listing Rules and Corporations Act; and
Company announcements are expressed in a clear and objective manner that allows investors to assess the impact of the
information when making investment decisions.
Principle 6: Respect the rights of security holders
The Company recognises the value of providing current and relevant information to its shareholders. The Board of the Company
aims to ensure that the shareholders are informed of all major developments affecting the Company’s state of affairs.
The Company respects the rights of its shareholders and to facilitate the effective exercise of those rights the Company is
committed to:
communicating effectively with shareholders through releases to the market via ASX, the company website, information
posted or emailed to shareholders and the general meetings of the Company;
giving shareholders ready access to clear and understandable information about the Company; and
making it easy for shareholders to participate in general meetings of the Company.
The Company also makes available a telephone number and email address for shareholders to make enquiries of the
Company. These contact details are available on the “Contact” page of the Company’s website.
Shareholders may elect to, and are encouraged to, receive communications from Intiger and Intiger's securities registry
electronically. The contact details for the registry are available on the “Contact Us” page of the Company’s website.
The Company maintains information in relation to its Constitution, governance documents, Directors and senior executives,
Board and committee charters, annual reports and ASX announcements on the Company’s website.
Principle 7: Recognise and manage risk
The Board is committed to the identification, assessment and management of risk throughout Intiger's business activities.
The Board is responsible for the oversight of the Company’s risk management and internal compliance and control framework.
The Company does not have an internal audit function. Responsibility for control and risk management is delegated to the
appropriate level of management within the Company with the Chief Executive Officer having ultimate responsibility to the
Board for the risk management and internal compliance and control framework. Intiger has established policies for the oversight
and management of material business risks.
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Corporate governance statement
ANNUAL REPORT
30 June 2020
Intiger's Risk Management and Internal Compliance and Control Policy recognises that risk management is an essential element
of good corporate governance and fundamental in achieving its strategic and operational objectives. Risk management improves
decision making, defines opportunities and mitigates material events that may impact security holder value.
Intiger believes that explicit and effective risk management is a source of insight and competitive advantage. To this end, Intiger
is committed to the ongoing development of a strategic and consistent enterprise wide risk management program, underpinned
by a risk conscious culture.
Intiger accepts that risk is a part of doing business. Therefore, the Company’s Risk Management and Internal Compliance and
Control Policy is not designed to promote risk avoidance. Rather Intiger's approach is to create a risk conscious culture that
encourages the systematic identification, management and control of risks whilst ensuring we do not enter into unnecessary risks
or enter into risks unknowingly.
Intiger assesses its risks on a residual basis; that is it evaluates the level of risk remaining and considering all the mitigation
practices and controls. Depending on the materiality of the risks, Intiger applies varying levels of management plans.
The Board has required management to design and implement a risk management and internal compliance and control system
to manage Intiger’s material business risks. It receives regular reports on specific business areas where there may exist significant
business risk or exposure. The Company faces risks inherent to its business, including economic risks, which may materially
impact the Company’s ability to create or preserve value for security holders over the short, medium or long term. The Company
has in place policies and procedures, including a risk management framework (as described in the Company’s Risk Management
and Internal Compliance and Control Policy), which is developed and updated to help manage these risks. The Board does not
consider that the Company currently has any material exposure to environmental or social sustainability risks.
The Company’s process of risk management and internal compliance and control includes:
identifying and measuring risks that might impact upon the achievement of the Company’s goals and objectives, and
monitoring the environment for emerging factors and trends that affect those risks;
formulating risk management strategies to manage identified risks, and designing and implementing appropriate risk
management policies and internal controls; and
monitoring the performance of, and improving the effectiveness of, risk management systems and internal compliance and
controls, including regular assessment of the effectiveness of risk management and internal compliance and control.
The Board review’s the Company’s risk management framework at least annually to ensure that it continues to effectively manage
risk.
Management reports to the Board as to the effectiveness of Intiger’s management of its material business risks on at each Board
meeting.
Principle 8: Remunerate fairly and responsibly
The Board as a whole fulfils to the functions normally delegated to the Remuneration Committee as detailed in the Remuneration
Committee Charter.
Intiger has implemented a Remuneration Policy which was designed to recognise the competitive environment within which
Intiger operates and also emphasise the requirement to attract and retain high calibre talent in order to achieve sustained
improvement in Intiger’s performance. The overriding objective of the Remuneration Policy is to ensure that an individual’s
remuneration package accurately reflects their experience, level of responsibility, individual performance and the performance
of Intiger.
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ANNUAL REPORT
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Corporate governance statement
The key principles are to:
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
review and approve the executive remuneration policy to enable the Company to attract and retain executives and
Directors who will create value for shareholders;
ensure that the executive remuneration policy demonstrates a clear relationship between key executive performance and
remuneration;
fairly and responsibly reward executives having regard to the performance of the Group, the performance of the executive
and the prevailing remuneration expectations in the market;
remunerate fairly and competitively in order to attract and retain top talent;
recognise capabilities and promote opportunities for career and professional development; and
review and approve equity-based plans and other incentive schemes to foster a partnership between employees and other
security holders.
The Board determines the Company’s remuneration policies and practices and assesses the necessary and desirable
competencies of Board members. The Board is responsible for evaluating Board performance, reviewing Board and management
succession plans and determines remuneration packages for the Chief Executive Officer, Non-Executive Directors and senior
management based on an annual review.
Intiger’s executive remuneration policies and structures along with the details of remuneration paid to directors and key
management personnel (where applicable) are set out in the Remuneration Report.
Non-Executive Directors receive fees (including statutory superannuation where applicable) for their services, the reimbursement
of reasonable expenses and, in certain circumstances options.
The maximum aggregate remuneration approved by shareholders for Non-Executive Directors is $300,000 per annum. The
Directors set the individual Non-Executive Directors fees within the limit approved by shareholders.
The total fees paid to Non-Executive Directors during the reporting period were $120,000. The Directors set the individual Non-
Executive Directors fees within the limit approved by shareholders.
Executive directors and other senior executives (where appointed) may be remunerated using combinations of fixed and
performance-based remuneration. Fees and salaries are set at levels reflecting market rates and performance-based
remuneration is linked directly to specific performance targets that are aligned to both short- and long-term objectives.
In accordance with the Company’s Securities Trading policy, participants in an equity-based incentive scheme are prohibited from
entering into any transaction that would have the effect of hedging or otherwise transferring the risk of any fluctuation in the
value of any unvested entitlement in the Company’s securities to any other person.
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INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
ANNUAL REPORT
30 June 2020
Additional Information for Listed Public Companies
The following additional information is required by the Australian Securities Exchange in respect of listed public companies and
is applicable as 29 September 2020.
1
Capital
a. Ordinary share capital
1,936,136,913 ordinary fully paid shares held by 2,218 shareholders.
b. Options over Unissued Shares
◼ The Company has an additional 315,000,000 options on issue in accordance with section 9.1 of the Directors' Report
c. Voting Rights
The voting rights attached to each class of equity security are as follows:
◼ Ordinary shares: Each ordinary share is entitled to one vote when a poll is called, otherwise each member present
at a meeting or by proxy has one vote on a show of hands.
◼ Unlisted Options: Options do not entitle the holders to vote in respect of that equity instrument, nor participate
in dividends, when declared, until such time as the options are exercised or performance shares convert and
subsequently registered as ordinary shares.
d. Substantial Shareholders as at 29 September 2020.
Nil
e. Distribution of Shareholders as at 29 September 2020.
Category (size of holding)
Total Holders
Number
Ordinary
% Held of Issued
Ordinary Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
151
27
82
765
1,193
2,218
17,797
72,804
655,926
37,852,490
0.00
0.00
0.03
1.96
1,897,537,896
98.01
1,936,136,913
100.00
f. Unmarketable Parcels as at 29 September 2020
As at 29 September 2020 there were 1,641 fully paid ordinary shareholders holding less than a marketable parcel of
shares, comprising 184,828,100 shares.
g. On-Market Buy-Back
There is no current on-market buy-back.
h. Restricted Securities
The Company has 250,000,000 Ordinary fully paid shares which are the subject of a voluntary escrow.
P a g e | 63
ANNUAL REPORT
30 June 2020
INTIGER GROUP LIMITED
AND CONTROLLED ENTITIES
ABN 71 098 238 585
Additional Information for Listed Public Companies
i.
Rank Name
20 Largest Shareholders — Ordinary Shares as at as at 29 September 2020
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
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