Contango Asset Management Limited
Annual Report 2017

Plain-text annual report

ANNUAL REPORT FOR THE PERIOD ENDED 30 JUNE 2017 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) ACN: 080 277 998 2 | ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONTENTS Letter from Chairman MD Report Financial Report Corporate Governance Statement Directors’ Report Remuneration Report Auditor’s Independence Declaration ConsolidatedStatementofProfitorLossand Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report Additional Information for Listed Companies Page 4 5 7 8 9 19 23 24 25 26 27 28 65 66 71 CONTENTS FOR THE YEAR ENDED 30 JUNE 2017 | 3 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 LETTER FROM THE CHAIRMAN Roger Amos Non-executive Chairman Contango Asset Management Limited Dear Shareholder Welcome to the 2017 Contango Asset Management Annual Report. It goes without saying that FY17 was a momentous year for the Company, and it is with great pleasure we deliver our results to you. We underwent a name change from Tyrian Diagnostics to Contango Asset Management, and a fundamental change in direction into a pre-eminent funds management business. Such changes are never without their challenges and some inevitable teething problems; however, it is testament to the Management Team and my fellow Directors that the business has transitioned seamlessly, and strengthened in the nine months since the change. Wesetambitiousgrowthgoals,andformuchoftheyear,wehavetrackednicely.Attheendofthefinancialyear,the Company was responsible for more than $750 million in Funds Under Management (FUM), an annual increase from $676m. However,recentoutflowsofinstitutionalmanagedmandateshaverequiredarecalibrationofthebusiness.Withastable platformbeneathus,andarobustcostmanagementstrategy,IamconfidentwecanlookforwardtopositivegrowthinFY18. During the year, we have continued to roll-out a diverse product suite. These included our appointment as the Investment Adviser to an innovative new exchange traded product, the Switzer Dividend Growth Fund, in February. This was a great achievement in itself, which foreshadowed a much larger milestone. ContangoGlobalGrowthLimited(CQG),thethirdContango-brandedLIC,wasfirstannouncedtomarketinFebruary and successfully listed on the ASX in June. CQG represented the culmination of months of meticulous planning by management, crowned with the major achievement of a partnership with California based WCM Investment Management as Investment Adviser. Internally, the team continued to grow in a very positive fashion, with a number of highly experienced - and not to mention talented - individuals coming on board, all with instrumental roles to play in the Company’s growth strategy. Focus will remain on growth, incorporating an integrated distribution and marketing program to be rolled out toward to end of 2017 and into early 2018. These developments have been made possible by the unwavering dedication of Mr George Boubouras and his management team, and while there are always going to be those growing pains, to have accomplished all of this in such a short period of time is a great achievement. I’m very much looking forward to what can be realised now that the foundations have been laid. I would like to thank my fellow Directors on the diligent oversight during this major period of transition. Thank you to our shareholders for supporting our vision. Here’s to another successful year for CGA, and many more milestones along the way in FY18. Yours faithfully Roger Amos Chairman Contango Asset Management 4 | LETTER FROM THE CHAIRMAN FOR THE YEAR ENDED 30 JUNE 2017 MANAGING DIRECTOR’S REPORT George Boubouras Managing Director and Chief Investment Officer Contango Asset Management Limited “Eventful” is a term that readily gets thrown around in AnnualReports,whenwereflectupontheyearthatwas and consider all that we have achieved. However, in the case of FY17 for Contango Asset Management, eventful iswithoutdoubtthemostfittingwordIcoulduseto describe our year. And I mean eventful in the most positive way. We embarked on an ambitious growth journey way back at the beginning of 2015, and by the middle of 2016, having carefully laid the platform, we were ready to really take off. It pleases me no end to be able to report that our bold transition to become one of Australia’s leading investment houses is well on track, punctuated by all that we achieved in the past 12 months, and our operating platform is now set. Firstly, there was the successful Management Buyout (MBO) and internal restructure, which saw an investment in our team that was designed to carefully align with the interests of our clients and shareholders. By doing away with bonuses and incentives as part of the MBO, and encouraging an equity partnership model, every team member has “skin in the game”, so to speak. We are all committed to the same cause, for the same reason, 365 days a year – as our clients, shareholders and stakeholders expect and deserve us to be. WewerealsothrilledtoopenourSydneyofficein2017, givingusgreaterscalabilityandflexibilityinoperating across the two biggest Australian markets. Yet again, this was another fantastic indicator of how far we have come in a short period of time, and indeed the limitless potential we see ahead of us. From an operational point of view, we grew our Funds UnderManagementtomorethan$750millionbyfiscal year end 17, which was a solid achievement in the context of such a busy transitional period. With the platform now set, we look forward to taking further big steps in the year to come. We placed a high importance on diversifying our product offering, underscored by two major launches during the secondhalfofthefinancialyear.Firstly,wewereexcited to be a part of the Switzer Dividend Growth fund, a new active exchange-traded fund that added yet another high calibre fund to the Contango offering. That was followed by the launch and successful listing of Contango Global Growth Limited, in partnership with our Investment Adviser from Laguna Beach California, WCM Investment Management, a very well regarded and proven global growth manager. The new LIC successfully raised $100million, with more than 2,700 shareholders, and with a mandate to invest in the vast global equities market. We are excited by this product’s potential. All this was achieved against the backdrop of a remarkably volatile year for equities markets. Geopolitical instability and uncertainty in a multitude of sectors led to a series of ups and downs that gave many an investor headaches. For some sectors navigating this instability proved difficultandContangowasnotcompletelyimmune. Such is the nature of equities. Yet for the most part, we managed to continue to perform well against our various benchmarks while at the same time successfully establish our operating platform. WithsuchaneventfulyearbehindusI’mconfidentthat we will continue to deliver exceptional results. I think I can safely say that the stage is now set thanks to all we have achieved in FY17. I look forward to what this team can achieve in FY18 and beyond. Yours faithfully George Boubouras Managing Director and Chief Investment Officer Contango Asset Management Limited MANAGING DIRECTOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 5 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 9986 | MANAGING DIRECTOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 FINANCIAL REPORT FOR THE PERIOD ENDED 30 JUNE 2017 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) ACN: 080 277 998 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 7 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998CORPORATE GOVERNANCE STATEMENT The Board and management of Contango Asset Management Limited are committed to conducting the Group’s business in an ethical manner and in accordance with the highest standards of corporate governance. The Company has adopted and has substantially complied with the ASX Corporate Governance Principles and Recommendations (Third Edition) (Recommendations) to the extent appropriate to the size and nature of the Group’s operations. The Company has prepared a statement which sets out the corporate governance practices that were in operationthroughoutthefinancialyearfortheCompany, identifiesanyRecommendationsthathavenotbeen followed and provides reasons for not following such Recommendations (Corporate Governance Statement). The Corporate Governance Statement is accurate and up to date as at 28 September 2017 and has been approved by the Board. In accordance with ASX Listing Rules 4.10.3 and 4.7.4, the Corporate Governance Statement is available for review on the Company’s website (www.contango.com.au) and will be lodged together with an Appendix 4G at the same time that this Annual Report is lodged with ASX. The Appendix 4G will identify each Recommendation that needs to be reported against by the Company and will provide shareholders with information as to where relevant governance disclosures can be found. The Company’s corporate governance policies and charters are all available on the Company’s website (www.contango.com.au). 8 | CORPORATE GOVERNANCE STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 DIRECTORS' REPORT Your Directors present their report, together with the financialstatements,oftheconsolidatedentity(referred to hereafter as the Group) consisting of Contango Asset Management Limited (the 'Company' or 'Parent Entity') and the entities it controlled at the end of, or during, the financialyearended30June2017. 1. GENERAL INFORMATION DIRECTORS ThenamesoftheDirectorsinofficeatanytimeduring, or since the end of, the year are: Roger Amos – Non-executive Chairman George Boubouras – Executive Director (Appointed 25 August 2016) Charles Aitken – Non-executive Director (Appointed 25 August 2016) Martin Switzer – Non-executive Director (Appointed 25 August 2016) Patricia Toh – Non-executive Director (Appointed 11 October 2016) Merilyn Sleigh – Non-executive Director (Resigned 25 August 2016) Simon O'Loughlin – Non-executive Director (Resigned 25 August 2016) Directorshavebeeninofficesincethestartof thefinancialyeartothedateofthisreportunless otherwise stated. DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 9 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998DIRECTORS' REPORT INFORMATION ON DIRECTORS Theskills,experienceandexpertiseofeachpersonwhoisaDirectoroftheCompanyattheendofthefinancialyearis provided below, together with details of the Company Secretary as at year end. Name Position Roger Amos Non-Executive Chairman Name Position George Boubouras Executive Director Qualifications FCA, FAICD Qualifications B.Ec (Hons) Roger was appointed to the Board in June 2007 and became Chairman six months later. Roger is an independent director of REA Group Limited, Enero Group Limited and 3P Learning Limited. He was a director until May 2012 of Austar United Communications Limited. He was Chairman of Opera Foundation Australia from 2009 to 2014. Roger previously had a long and distinguished careerwiththeinternationalaccountingfirmKPMG, retiring in June 2006 after 25 years as a partner. Special responsibilities: Chairman Other current directorships: Roger is a Governor of the Cerebral Palsy Alliance Research Foundation Georgehasover25yearsexperienceinfinancialservices and has held senior leadership positions, as the chief investmentofficer,atvariousglobalanddomesticfirms. George holds a Bachelor of Economics (Honours) and has undertaken further study at Harvard, MIT Sloan School of Management, the University of New South Wales and holds the Stockbrokers Association of Australia RG 146 accreditation. George has experience managing investments across various asset classes and investment teams and has workedatvariousfirmsincluding:EquityTrusteesLtd, asChiefInvestmentOfficer;UBSWealthManagement, asChiefInvestmentOfficer;MacquarieGroup,asan Investment Strategist; and HSBC Asset Management, as Head of Asset Allocation, Fixed Income and Equity Research. Special responsibilities: Managing Director and Chief InvestmentOfficer Other current directorships: Contango Income Generator Limited 10 | DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 Name Position Charles Aitken Non-Executive Director Name Position Martin Switzer Non-Executive Director Qualifications B Bus MrAitkenisChiefExecutiveOfficerandChiefInvestment OfficerofAitkenInvestmentManagementPtyLtd.He has more than 23 years of equity and futures market experience. He is an expert contributor to the Switzer SuperReport,andpreviouslytoAlanKohler’sEureka Report. He appears frequently on Australian and global financialmediaasanexpertonAustralianequitiesand global macroeconomic strategy. MrSwitzeristheChiefOperatingOfficerofSwitzer FinancialGroup,acontentandfinancialservices business. He is currently a host on the Sky News Business Channel from time to time. Martin is also a consultant with the Australian Defence Force Financial Services Consumer Centre and travels around Australia providing financialinformationandeducationtoADFmembersand their families. Mr Aitken has previously been a Director and head of Sydney Sales Trading for Citigroup, Executive Director and Partner of Southern Cross Equities and Executive Director and Board member of ASX listed Bell Financial Group. Special Responsibilities: Chair of Remuneration and Nominations Committee Other current directorships: None Special responsibilities: Chair of Audit Committee (from 25 August 2016) Other current directorships: Martin is currently a director of Contango Global Growth Ltd, Switzer Asset Management, Switzer Home Loans, is on the board of fashion media business RUSSH and has been a director of the Entrepreneurs Organisation and an ambassador for the Fight Duchenne Foundation. DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 11 Name Position Patricia Toh Non-Executive Director Name Position Merilyn Sleigh Non-Executive Director (resigned 25 August 2016) Qualifications B.Com, LLB Qualifications FAICD PhD Dip Corp Man Ms Toh has had 15 years of investment banking and private equity experience. Ms Toh has previously held positions with Goldman Sachs, Macquarie Capital and GEMS Private Equity. Most recently Ms Toh was the Group Head of Strategy at Consolidated Press Holdings. Through this role, she was involved in CPH’s portfolio company Boards, general oversight of assets under management, assessing investment opportunities, and establishingtheHongKongoffice. Special responsibilities: None Other current directorships: None Merilyn Sleigh was appointed to the Board in November 2008, and was chair of the Audit Committee and a member of the Remuneration Committee. Merilyn initially hadasuccessfulcareerasascientificresearcherand research manager with CSIRO. Since that time, she has gained extensive experience in all aspects of the development of a successful biotechnology company. She was previously Research Director for Peptech Ltd and from 2001 to 2007 was CEO and managing director of EvoGenix Ltd. EvoGenix, initially a venture capital-backed start up company, listed on the ASX in 2005 and in 2007 was sold to a larger company to form Arana Therapeutics. Merilyn acts as an adviser on science commercialisation with the Garvan Institute for Medical Research in Sydney is also a member of the governing Council of the University of Technology Sydney. Special responsibilities: Chair of the Audit Committee (until 25 August 2016) Other current directorships: Current non-executive directorships are held with Clover Corporation Ltd, the Rural Industries Research and Development Council, Intersect Australia Limited and Relationships Australia (NSW). 12 | DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 Name Position Simon O'Loughlin Non-Executive Director (resigned 25 August 2016) Mr O'Loughlin is the founder of O'Loughlins Lawyers, an Adelaidebased,specialistcommerciallawfirm.Hehas extensive experience in the corporate and commercial lawfieldswhilepractisinginSydneyandAdelaide,and alsoholdsaccountingqualifications.Hehasextensive experience and involvement with companies in the small industrial and resource sectors. He has also been involved in the listing and back-door listing of numerous companies on the ASX. He is a former Chairman of the Taxation Institute of Australia (SA Division) and Save the Children Fund (SA Division). Special responsibilities: None Other current directorships: Current non-executive directorships are held with Lawson Gold Ltd, WCP Resources Limited, Xref Limited, Chesser Resources Limited, Petratherm Limited and Oklo Resources Limited. DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 13 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998COMPANY SECRETARY ThefollowingpeopleheldthepositionofCompanySecretaryduringthefinancialyear: Name HariMorfis(appointed24 November 2016) Name Andrew Blunden (resigned 24 November 2016) Hari is a legal, risk and governance professional with over 15years’experiencepredominantlyinfinancialservices. She has extensive corporate and commercial experience having commenced her career as a corporate lawyer at Herbert Smith Freehills. She spent 11 years at UBS in senior legal, risk and compliance roles most recently as Head of Compliance for the UBS Wealth Management Australia business. She is director of Melbourne Women in Film Festival Limited and Company Secretary of ASX Listed entities Contango Global Growth Limited, Contango Income Generator Limited and Contango MicroCap Limited. Andrew is a Fellow of the Institute of Chartered Accountants in Australia. He has over 25 years' experienceasChiefFinancialOfficer,CompanySecretary and Director with both publicly listed and privately owned organisations. He has held executive positions with such companies as Sonic Healthcare Ltd, Computershare Ltd, LAN Systems Pty Ltd, Serco Australia Ltd and iasset.com PtyLtd.Heisthefoundingdirectorofthenot-for-profit business association, Pittwater Business Limited and, through his company, Part Time Professionals Pty Ltd, assists companies source contracted company secretarial and CFO services throughout Australia. 14 | DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 1.1 PRINCIPAL ACTIVITIES During the year the principal activities of the Company consisted of: (a) (b) in respect of the period from 1 July 2016 to 28 September 2016: development and licensing of diagnostic intellectual property assets; and in respect of the period on and from 29 September 2016: the funds management business conducted by a wholly owned subsidiary of the Company, Contango Funds Management Limited (ACN 085 487 421). Contango Funds Management Limited is holder of Australian Financial Services Licence 237119 for the provision of funds management services to wholesale clients and is the responsible entity for the registered wholesale clients and is the responsible entity for the registered wholesale Contango Managed Investment Scheme ARSN 099 665 264. Therewerenoothersignificantchangesinthenatureof theGroup'sprincipalactivitiesduringthefinancialyear. towards the development of new funds, marketing, and compliance costs. The Group has established medium to long-term share incentive schemes for eligible employees in order to motivate and reward a high performing team of professionals. 2. OPERATIONAL AND FINANCIAL REVIEW OPERATING RESULTS The consolidated loss of the Group amounted to $ (14,148,000) after providing for income tax (2016: loss of $300,000). Basic earnings per share was a loss of 43.0 cents (2016: 9.0 cents). The major reason for the loss was due to the non- cash impairment of goodwill and intangible assets ($10.3m) after application of accounting standards in light of a reduced level of funds under management post balance date and, after taking intoaccountneartermnegativecashflowmovements necessarily incurred when entering a business development growth phase. Operational highlights in the year ended 30 June 2017 included: 1.2 BUSINESS MODEL, STRATEGY AND OUTLOOK • During the year, the company acquired the Contango Business model The Group is a wholesale and listed investment company (LIC) fund manager and manages large cap, mid cap, small cap, micro-cap and income focused mandates. It also manages three LIC mandates for Contango MicroCap Limited (CTN), Contango Income Generator Limited (CIE) and Contango Global Growth Limited (CQG). Strategy The Contango Group's strategy post completion of the funds management business acquisition is to grow its funds under management through new wholesale mandates and new LICs growing existing LIC strategies, operating exchange traded products using existing strategies and wholesale client schemes and focusing on delivering consistent returns for the Contango Group client base and shareholders. The growth strategy will also include development of a suite of products through its associate entity Switzer Asset Management Limited, leveraging off the self- directed, SMSF, super and ageing sectors. An important component of the Group's ability to implement its future strategies with success relates to marketing for LIC mandates and retaining and attracting keypersonnel.Overthecurrentfinancialyear,theBoard intends to allocate a portion of available working capital funds management business and commenced operations as a fund manager from 29th September, 2016 • Changed its name from Tyrian Diagnostics Limited to Contango Asset Management Limited and consolidated every 300 shares existing at 1st July, 2016 into 1 share • Raised $17.2m in share capital net of transaction costs pursuant to the Prospectus dated 18th August 2016 and replacement prospectus dated 31 August 2016 • re-listed on the ASX as a result of the change in the nature of the company’s activities • • In February 2017, the Group’s associate entity Switzer Asset Management Ltd (SAM) successfully launched an exchange traded managed fund, the Switzer Dividend Growth Fund, with strong growth in funds under management to 30 June 2017 of $64m In June 2017, a subsidiary of the Company was appointed fund manager to the listed investment company Contango Global Growth Limited which raised $100m in an initial public offering • The Group built and strengthened its portfolio management capability and obtained long term employee contracts for key members of its investment team DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 15 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 9983. FINANCIAL REVIEW 4.3 DIVIDENDS PAID OR RECOMMENDED The net assets of the Group have increased by $3,270,000 from $259,000 at 30 June 2016 to $3,529,000 at 30 June 2017. This increase is largely due to the following factors: No dividends were paid or provided for during the financialyearandnodividendisrecommendedinrespect of the year (2016 - $nil). 4.4 FUTURE DEVELOPMENTS AND RESULTS The Group intends to continue to consolidate and grow its position in the funds management sector and expected resultsofoperationsinfuturefinancialyearsarelikely,in theshortterm,toreflecttheGroup’slifecyclestatusas it funds the growth phase of its operations. There are no other likely developments which have not been included in this report. 4.5 ENVIRONMENTAL ISSUES The Group's operations are not regulated by any significantenvironmentalregulationsunderalawofthe Commonwealth or of a state or territory of Australia. • Issue of share capital raising $17.2m used for the purchase of the Contango funds management business • RenovationandremodellingtheMelbourneofficeof theacquiredbusinessandopeningofaSydneyoffice • Costs incurred in re-listing and building investment team capacity • Incurring a goodwill impairment based on up front business development expenditure 4. OTHER ITEMS 4.1 SIGNIFICANT CHANGES IN STATE OF AFFAIRS Other than stated above in Operating Results there were noothersignificantchangesinstateofaffairsofthe Groupduringthefinancialyear. 4.2 EVENTS AFTER THE REPORTING DATE On 21 August 2017, the Group announced a share placement of 5,555,556 shares at $0.90 each to cornerstone, institutional and other sophisticated investors, raising $5 million gross in additional capital. The funds will be used to develop further the Group’s suite of products, build internal business development capability and repay debt. Subsequent to balance date, the Group experienced netoutflowsoffundsundermanagementrelatingtoits institutional business as detailed in the Company’s ASX announcement dated 25th September, 2017. No other matters or circumstances have arisen since the endofthefinancialyearwhichsignificantlyaffectedor couldsignificantlyaffecttheoperationsoftheGroup,the results of those operations or the state of affairs of the Groupinfuturefinancialyears. 16 | DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 5. MEETINGS OF DIRECTORS The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2017, and the number of meetings attended by each director are: DIRECTORS' MEETINGS AUDIT AND RISK COMMITEE REMUNERATION AND NOMINATIONS COMMITTEE Attended Held Attended Held Attended Held Roger Amos George Boubouras Charles Aitken Martin Switzer Patricia Toh Merilyn Sleigh Simon O'Loughlin 11 10 10 10 7 3 2 13 10 10 10 7 3 3 4 - 3 3 - 1 - 4 - 3 3 - 1 - 1 1 1 1 - - - 1 1 1 1 - - - Held:representsthenumberofmeetingsheldduringthetimetheDirectorheldofficeandwhichtheDirectorwas eligible to attend. 6. INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS Duringthefinancialyear,thecompanypaidapremiuminrespectofacontractinsuringthedirectorsofthecompany, thecompanysecretariesandallexecutiveofficersofthecompanyandofanyrelatedbodycorporateagainstaliability incurredassuchadirector,secretaryorexecutiveofficertotheextentpermittedbytheCorporationsAct2001. The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respectofthedirectors’andofficers’liabilityandlegalexpensesinsurancecontractsassuchdisclosureisprohibited under the terms of the contract. Thecompanyhasnototherwise,duringorsincetheendofthefinancialyear,excepttotheextentpermittedbylaw, indemnifiedoragreedtoindemnifyanofficerorauditorofthecompanyorofanyrelatedbodycorporateagainsta liabilityincurredassuchanofficerorauditor. 7. PROCEEDINGS ON BEHALF OF COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all of those proceedings. DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 17 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 9988. NON-AUDIT SERVICES Details of the amounts paid or payable to the auditor for non-assuranceservicesprovidedduringthefinancial yearbytheauditorareoutlinedinNote31tothefinancial statements. The Board of Directors, in accordance with advice from theauditcommittee,issatisfiedthattheprovisionof non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfiedthattheservicesdisclosedinNote31didnot compromise the external auditor's independence for the following reasons: • all non-audit services are reviewed and approved to ensure they do not adversely affect the integrity and objectivity of the auditor; and • the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards. 9. AUDITOR'S INDEPENDENCE DECLARATION The auditor's independence declaration in accordance with section 307C the Corporations Act 2001 for the year ended 30 June 2017 has been received and can be found onpage23ofthefinancialreport. 10. ROUNDING OF AMOUNTS The Company has applied the relief available to it under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. Accordingly, amounts in thefinancialstatementshavebeenroundedofftothe nearest thousand dollars (unless otherwise stated). 18 | DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2017 SERVICE AGREEMENTS On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration, relevanttotheofficeofdirector. The remuneration and other terms of employment for the Managing Director are set out in an employment contract as summarised below. The employment contract includes an annual salary package of $395,000 inclusive of superannuation and subject to annual reviews, and is for an unlimited duration. The agreement for the Managing Director may be terminated by giving six months’ notice (except in cases of termination for cause where termination is immediate). In cases of resignation, no separation payment is made to the Managing Director except for amounts due and payable up to the date of ceasing employment, including accrued leave entitlements. REMUNERATION REPORT (AUDITED) The Remuneration Report for the year ended 30 June 2017 outlines the Director and Executive remuneration arrangements of Contango Asset Management Limited and Controlled Entities in accordance with the requirements of the Corporations Act 2001 and its regulations. For the purposes of this Report, key managementpersonnel(KMP)oftheGrouparedefined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any Director of the parent company. REMUNERATION POLICY The Remuneration and Nomination Committee of the Board of Directors is established to assist the Board to ensure that the Company: • has a board of directors with the appropriate skills and experience to undertaken it’s duties and responsibilities; and • adopts appropriate remuneration policies and procedures which are designed to meet the needs of the Company and to enhance individual and corporate performance. The Board’s policy for determining the nature and amount ofremunerationforKMPoftheGroupisbasedon the following: • The remuneration policy has been developed by the Remuneration Committee and approved by the Board, after having sought advice from external advisors in relation to market trends for non-executive director remuneration. • All key management personnel receive a base salary (which is based on factors such as length of service andexperience),superannuation,fringebenefits,and performance incentives. • Incentives paid in the form of options or rights are intended to align the interests of Directors and company with those of the shareholders. • The Remuneration Committee reviews key management personnel packages annually by reference to the Group’s performance, executive performance and comparable information from industry sectors. REMUNERATION REPORT (AUDITED) FOR THE YEAR ENDED 30 JUNE 2017 | 19 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED) Thefollowingtableofbenefitsandpaymentdetails,inrespecttothefinancialyear,thecomponentsofremuneration for each member of the key management personnel of the Group. TABLE OF BENEFITS AND PAYMENTS LONG-TERM POST EMPLOYMENT EMPLOYEE BENEFITS 2017 DIRECTORS CASH SALARY & FEES $ BONUS $ NON MONETARY $ SUPERANNUATION $ LONG SERVICE LEAVE SHARE BASED PAYMENTS $ TOTAL $ Roger Amos 82,500 George Boubouras 375,384 Charles Aitken Martin Switzer Patricia Toh Merilyn Sleigh Simon O'Loughlin 37,500 37,500 5,265 5,000 5,000 Total 548,149 - - - - - - - - - - - - - - - - 7,125 - - 89,625 19,616 3,498 758,478 1,156,976 3,563 3,563 500 - - - - - - - 126,791 126,791 - - - 167,854 167,854 5,765 5,000 5,000 34,367 3,498 1,012,060 1,598,074 LONG-TERM POST EMPLOYMENT EMPLOYEE BENEFITS 2016 DIRECTORS Roger Amos Simon O'Loughlin Merilyn Sleigh Caroline Popper Total CASH SALARY & FEES $ 45,000 10,000 30,000 20,000 105,000 BONUS $ NON MONETARY $ SUPERANNUATION $ LONG SERVICE LEAVE SHARE BASED PAYMENTS $ - - - - - - - - - - - - - - - - - - - - TOTAL $ 45,000 10,000 30,000 20,000 105,000 - - - - - 20 | REMUNERATION REPORT (AUDITED) FOR THE YEAR ENDED 30 JUNE 2017 SECURITIES RECEIVED THAT ARE NOT PERFORMANCE RELATED No members of key management personnel are entitled to receive securities which are not performance-based as part of their remuneration package. DESCRIPTION OF SHARES ISSUED AS REMUNERATION Details of the shares issued as remuneration to those key management personnel and executives during the year: SHARE-BASED PAYMENTS DIRECTORS Roger Amos George Boubouras Charles Aitken Martin Switzer Patricia Toh Merilyn Sleigh Simon O'Loughlin $ NUMBER OF SHARES - 758,478 126,791 126,791 - - - - 2,425,938 211,319 211,319 - - - Shares issued to George Boubouras under the Employee Share Incentive Plan and Employee Share Loan Plan are detailed at page 22 and valued using the methodology set out at Note 21. All options were issued by Contango Asset Management Limited and Controlled Entities and entitle the holder to ordinary shares in Contango Asset Management Limited and Controlled Entities for each option exercised. There have not been any alterations to the terms or conditions of any share based payment arrangements since grant date. KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS 30 JUNE 2017 DIRECTORS BALANCE AT BEGINNING OF YEAR GRANTED AS REMUNERATION EXERCISED OTHER CHANGES BALANCE AT THE END OF YEAR VESTED DURING THE YEAR VESTED AND EXERCISABLE Roger Amos George Boubouras Charles Aitken Martin Switzer Patricia Toh Merilyn Sleigh Simon O'Loughlin - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - REMUNERATION REPORT (AUDITED) FOR THE YEAR ENDED 30 JUNE 2017 | 21 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 99830 JUNE 2016 DIRECTORS Roger Amos Simon O'Loughlin Merilyn Sleigh BALANCE AT BEGINNING OF YEAR - - - GRANTED AS REMUNERATION EXERCISED OTHER CHANGES BALANCE AT THE END OF YEAR VESTED DURING THE YEAR VESTED AND EXERCISABLE - - - - - - - - - - - - - - - - - - KEY MANAGEMENT PERSONNEL SHAREHOLDINGS The number of ordinary shares in Contango Asset Management Limited and Controlled Entities held by each key managementpersonoftheGroupduringthefinancialyearisasfollows: BALANCE AT BEGINNING OF YEAR GRANTED AS REMUNERATION EXERCISED OTHER CHANGES BALANCE AT THE END OF YEAR 30 JUNE 2017 DIRECTORS Roger Amos George Boubouras1 Charles Aitken2 Martin Switzer2 Patricia Toh Merilyn Sleigh3 Simon O'Loughlin3 27,227 - - - - - 2,000 - 3,592,417 211,319 211,319 - - - - - - - - - - - 80,000 333,333 - 607,150 100,000 - - 107,227 3,925,750 211,319 818,469 100,000 2,000 - 1,120,483 5,164,765 Total 29,227 4,015,055 1 2,425,938 shares were issued during the year under the ESIP and ESLP share plan to Mr. George Boubouras with an additional 1,166,479 shares issued by the company to Mr George Boubouras for nil consideration. 2 211,319 shares were issued to Mr Charles Aitken and Mr Martin Switzer during the year for nil consideration by the company 3 Balance at the end of the year is at date of resignation End of Audited Remuneration Report OPTIONS The number of options on issue at year end are 345,000. Details of the options are set out at Note 21. This director's report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of Directors. Director: Roger Amos Chairman Dated this 29th day of September 2017 22 | REMUNERATION REPORT (AUDITED) FOR THE YEAR ENDED 30 JUNE 2017 AUDITOR’S INDEPENDENCE DECLARATION CONTANGO ASSET MANAGEMENT LIMITED ACN 080 277 998 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Contango Asset Management Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. This declaration is in relation to Contango Asset Management Limited and the entities it controlled during the period. Sydney, NSW 29September 2017 A G Smith Director AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2017 | 23 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 NOTES 2017 000'S $ 2016 000'S $ Revenue Other revenue Total revenue Employeebenefitsexpense Operations expense Professional services expense Corporate and administrative expenses Share of loss of Associate Earnings before depreciation and amortisation, impairment loss, finance costs and income tax Depreciation and amortisation Impairment loss Profit / (loss) before finance costs and income tax Finance costs Profit / (loss) before income tax Income tax credit Net profit / (loss) for the year Other comprehensive income / (loss), net of income tax Other comprehensive income Total comprehensive income / (loss) for the year Net profit / (loss) attributable to: Members of the parent entity Total comprehensive income / (loss) attributable to: Members of the parent entity 2 2 3(A) 8 3(B) 11 4 3,759 389 4,148 (3,096) (590) (514) (3,570) (25) (3,647) (431) (10,311) (14,389) (48) (14,437) 289 (14,148) - (14,148) (14,148) (14,148) Earnings per share attributable to the ordinary equity holders of the Company: Basic earnings per share (cents) Diluted earnings per share (cents) 20 20 (43.0) (43.0) - 21 21 - - (4) (317) - (300) - - (300) - (300) - (300) - (300) (300) (300) (9.0) (9.0) 24 | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 NOTES 2017 000'S $ 2016 000'S $ ASSETS Current assets Cash and cash equivalents Trade and other receivables Other assets Total current assets Non-current assets Investment accounted for using the equity method Otherfinancialassets Property, plant and equipment Intangible assets Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade and other payables Borrowings Provisions Total current liabilities Non-current liabilities Deferred tax liability Total non-current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY 5 6 7 8 9 10 11 12 13 14 15 16 17 18 819 1,348 187 2,354 347 504 220 2,882 3,953 6,307 823 750 341 1,914 864 864 2,778 3,529 297 7 10 314 - - - - - 314 55 - - 55 - - 55 259 140,777 123,626 267 - (137,515) (123,367) 3,529 259 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 25 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 2016 ISSUED CAPITAL 000'S $ SHARE OPTION RESERVE 000'S $ ACCUMULATED LOSSES 000'S $ TOTAL 000'S $ Balance at 1 July 2015 123,626 3,799 (126,866) Loss attributable to members of the parent entity Total comprehensive income for the period Transactions with owners in their capacity as owners Transfers to retained earnings from reserves - - - - - (300) (300) (3,799) 3,799 Balance at 30 June 2016 123,626 - (123,367) 559 (300) (300) - 259 2017 ISSUED CAPITAL 000'S $ SHARE OPTION RESERVE 000'S $ ACCUMULATED LOSSES 000'S $ TOTAL 000'S $ Balance at 1 July 2016 123,626 Loss attributable to members of the parent entity Total comprehensive income for the period Transactions with owners in their capacity as owners Share based payment transactions Issue of options Issue of shares, net of transaction costs Balance at 30 June 2017 - - - - 17,151 140,777 - - - 214 53 - 267 (123,367) (14,148) (14,148) - - - (137,515) 259 (14,148) (14,148) 214 53 17,151 3,529 26 | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers Payments to suppliers and employees Interestandcostsoffinancepaid Interest received Income tax refund NOTES 2017 000'S $ 2016 000'S $ 3,870 (5,986) (43) 18 35 11 (308) - 10 - Net cash provided by/(used in) operating activities 32 (2,106) (287) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment Acquisitions of subsidiary, net of cash acquired Purchase of investments Payment for transaction costs to acquire businesses Net cash used by investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings Proceeds from issue of new shares Transaction costs relating to issue of new shares Loans from related parties Netcashprovidedbyfinancingactivities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of year Cash and cash equivalents at end of financial year 5 (233) (10,273) (75) (366) (10,947) 750 14,244 (1,260) (159) 13,575 522 297 819 - - - - - - - - - - (287) 584 297 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 27 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 TABLE OF CONTENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2: REVENUE NOTE 3A: CORPORATE & ADMINISTRATIVE EXPENSES NOTE 3B: DEPRECIATION AND AMORTISATION NOTE 4: INCOME TAX EXPENSE NOTE 5: CASH AND CASH EQUIVALENTS NOTE 6: TRADE AND OTHER RECEIVABLES NOTE 7: NOTE 8: NOTE 9: OTHER ASSETS INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD OTHER FINANCIAL ASSETS NOTE 10: PROPERTY, PLANT AND EQUIPMENT NOTE 11: INTANGIBLE ASSETS NOTE 12: TRADE AND OTHER PAYABLES NOTE 13: BORROWINGS NOTE 14: PROVISIONS NOTE 15: DEFERRED TAX LIABILITY NOTE 16: ISSUED CAPITAL NOTE 17: RESERVES NOTE 18: ACCUMULATED LOSSES NOTE 19: DIVIDENDS NOTE 20: EARNINGS PER SHARE NOTE 21: SHARE-BASED PAYMENTS NOTE 22: FINANCIALRISKMANAGEMENT NOTE 23: PARENT ENTITY NOTE 24: INTERESTS IN SUBSIDIARIES NOTE 25: BUSINESS COMBINATION NOTE 26: RELATED PARTIES NOTE 27: KEYMANAGEMENTPERSONNELDISCLOSURES NOTE 28: CONTINGENT LIABILITIES NOTE 29: CAPITAL AND LEASING COMMITMENTS NOTE 30: SEGMENT INFORMATION NOTE 31: AUDITORS' REMUNERATION NOTE 32: CASH FLOW INFORMATION NOTE 33: EVENTS OCCURRING AFTER THE REPORTING DATE NOTE 34: COMPANY DETAILS Theaccompanyingnotesformpartofthesefinancialstatements. 28 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 29 38 38 38 39 40 40 41 41 43 43 44 46 47 47 48 48 49 49 49 49 50 53 57 58 58 60 61 61 61 62 62 63 64 64 GENERAL INFORMATION A. GOING CONCERN Theconsolidatedfinancialstatementsandnotes represent those of Contango Asset Management Limited as a Group consisting of Contango Asset Management Limited and the entities it controlled at the end of, or during,theyear.Thefinancialstatementsarepresentedin Australian dollars, which is Contango Asset Management Limited's functional and presentation currency. Contango Asset Management is a listed public company limited by shares, incorporated and domiciled in Australia. The company changed its name from Tyrian Diagnostics Limited to Contango Asset Management Limited (formerly Tyrian Diagnostics Limited) on 29 August 2016. Thefinancialstatementswereauthorisedforissue, in accordance with a resolution of Directors, on 29 September 2017. BASIS OF PREPARATION Thesegeneralpurposefinancialstatementshavebeen prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and International Financial Reporting Standards as issued by the International Accounting Standards Board. The Group isafor-profitentityforfinancialreportingpurposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financialstatementsarepresentedbelowandhavebeen consistently applied unless stated otherwise. Exceptforcashflowinformation,thefinancialstatements have been prepared on an accruals basis and are based onhistoricalcosts,modified,whereapplicable,bythe measurement at fair value of selected non-current assets, financialassetsandfinancialliabilities. NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Thefollowingisasummaryofsignificantaccounting policies adopted by the Group in the preparation of thefinancialreport.Theaccountingpolicieshavebeen consistently applied, unless otherwise stated. During the year ended 30 June 2017 the Group incurred a loss of $14,148,000 (2016: 300,000). Included in the year ended 30 June 2017 was one-off costs of $986,000 associated with the business combination and a charge toProfitandLossof$10,311,000forimpairmentof intangible assets. The Group also expensed $1,196,000 in share and option based payments. The revenue for the year ended 30 June 2017 included only revenue from the entities acquired as part of the business combination from 29 September 2016 to 30 June 2017. On 21st August 2017, the Company announced and finalisedtheplacementof5,555,556sharesat$0.90 each to cornerstone institutional and other sophisticated investors, raising $5,000,000 in additional capital, of which $750,000 was used to repay the borrowings at 30 June 2017 (Note 13). Having regard to the capital raised in the share placementandcombinedwithforecastedcash-flow from operations, the directors believe that the Group has sufficientcashreservestocontinuethegrowthstrategy commenced in September 2016 for the foreseeable future, and for at least twelve months from the date of thisreport.Thefinancialstatementshavethereforebeen prepared on a going concern basis. B. PRINCIPLES OF CONSOLIDATION Theconsolidatedfinancialstatementsincorporateallof the assets, liabilities and results of the parent Contango Asset Management Limited and all of the subsidiaries (including any structured entities). Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in Note 24. The assets, liabilities and results of all subsidiaries are fully consolidatedintothefinancialstatementsoftheGroup from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 29 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998C. BUSINESS COMBINATIONS Business combinations occur where an acquirer obtains control over one or more businesses. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is obtained, whereby the fair value of theidentifiableassetsacquiredandliabilities(including contingent liabilities) assumed is recognised (subject to certain limited exemptions). When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent considerationclassifiedasequityisnotremeasured and its subsequent settlement is accounted for within equity.Contingentconsiderationclassifiedasanasset or liability is remeasured in each reporting period to fairvalue,recognisinganychangetofairvalueinprofit orloss,unlessthechangeinvaluecanbeidentifiedas existing at acquisition date. All transaction costs incurred in relation to business combinations, other than those associated with the issue ofafinancialinstrument,arerecognisedasexpensesin profitorlosswhenincurred. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase. Goodwill Goodwill is carried at cost less accumulated impairment losses. Goodwill is calculated as the excess of the sum of: i. the consideration transferred; ii. any non-controlling interest (determined under either the full goodwill or proportionate interest method); and iii. the acquisition date fair value of any previously held equity interest; over the acquisition date fair value of netidentifiableassetsacquired. The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity interest shall form the cost of the investment in the separatefinancialstatements. Fair value measurements in any pre-existing equity holdingsarerecognisedinprofitorlossintheperiod in which they arise. Where changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profitorloss. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is tested for impairment annually and is allocated to the Group's cash-generating units or groups of cash-generating units, representing the lowest level at which goodwill is monitored and not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the entity disposed of. Changes in the ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions and do not affect the carrying amounts of goodwill. D. TAX CONSOLIDATION Contango Asset Management Limited and its wholly owned subsidiaries are consolidated for tax purposes. E. INCOME TAX The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income). Currentincometaxexpensechargedtoprofitorloss is the tax payable on taxable income for the current period. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferredincometaxexpensereflectsmovementsin deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is chargedorcreditedoutsideprofitorlosswhenthetax relatestoitemsthatarerecognisedoutsideprofitor loss or arising from a business combination. Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profitorloss. 30 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and theirmeasurementalsoreflectsthemannerinwhich management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that itisprobablethatfuturetaxableprofitwillbeavailable againstwhichthebenefitsofthedeferredtaxassetcan be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: i. a legally enforceable right of set-off exists; and ii. the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periodsinwhichsignificantamountsofdeferred tax assets or liabilities are expected to be recovered or settled. F. PROPERTY, PLANT AND EQUIPMENT All classes of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amountandimpairmentlossesarerecognisedinprofitor loss. A formal assessment of recoverable amount is made when impairment indicators are present. G. DEPRECIATION Thedepreciableamountsallfixedassetsarecalculated using the diminishing balance method over their estimated useful lives commencing from the time the asset is held ready for use. The estimated useful life for plant and equipment for the period is 3 years (2016: 3 years). H. FINANCIAL INSTRUMENTS Initial recognition and measurement: Financialassetsandfinancialliabilitiesarerecognised when the entity becomes a party to the contractual provisionstotheinstrument.Forfinancialassets,thisis equivalent to the date that the entity commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified“atfairvaluethroughprofitorloss”,inwhich casetransactioncostsareexpensedtoprofitorloss immediately. Classification and subsequent measurement: Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Amortised cost is calculated as the amount at which the financialassetorfinancialliabilityismeasuredatinitial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of thefinancialinstrumenttothenetcarryingamountofthe financialassetorfinancialliability.Revisionstoexpected futurenetcashflowswillnecessitateanadjustmenttothe carrying amount with a consequential recognition of an incomeorexpenseiteminprofitorloss. Non-derivativefinancialliabilitiesotherthanfinancial guarantees are subsequently measured at amortised cost.Gainsorlossesarerecognisedinprofitorloss throughtheamortisationprocessandwhenthefinancial liability is derecognised. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 31 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998Afinancialasset(oragroupoffinancialassets)is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on theestimatedfuturecashflowsofthefinancialasset(s). Inthecaseoffinancialassetscarriedatamortisedcost, loss events may include: indications that the debtors or agroupofdebtorsareexperiencingsignificantfinancial difficulty,defaultordelinquencyininterestorprincipal payments; indications that they will enter bankruptcy or otherfinancialreorganisation;andchangesinarrearsor economic conditions that correlate with defaults. Forfinancialassetscarriedatamortisedcost(including loans and receivables), a separate allowance account is usedtoreducethecarryingamountoffinancialassets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amountofimpairedfinancialassetsisreduceddirectly if no impairment amount was previously recognised in the allowance account. Whenthetermsoffinancialassetsthatwouldotherwise have been past due or impaired have been renegotiated, theGrouprecognisestheimpairmentforsuchfinancial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Derecognition: Financial assets are derecognised when the contractual rightstoreceiptofcashflowsexpireortheassetis transferred to another party whereby the entity no longerhasanysignificantcontinuinginvolvementinthe risksandbenefitsassociatedwiththeasset.Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference betweenthecarryingamountofthefinancialliability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non- cashassetsorliabilitiesassumed,isrecognisedinprofit or loss. I. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and at banks, and short term deposits with an original maturity of threemonthsorlessheldatcallwithfinancialinstitutions. J. TRADE AND OTHER RECEIVABLES Trade receivables, which generally have 30 day terms, are recognised initially at fair value, less an allowance for impairment. Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible arewrittenoffwhenidentified.Anallowancefordoubtful debts is raised when there is objective evidence that the Group will not be able to collect the debt. Objectiveevidenceofimpairmentincludesfinancial difficultiesofthedebtor,defaultpaymentsordebtsmore than90daysoverdue.Onconfirmationthatthetrade receivable will not be collectable an estimated loss of the gross carrying value of the asset is written off against the associated provision. K. INVESTMENT IN JOINT VENTURES An associate is an entity over which the Group has significantinfluence.Significantinfluenceisthepowerto participateinthefinancialandoperatingpolicydecisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Theconsiderationsmadeindeterminingsignificant influenceorjointcontrolaresimilartothosenecessary to determine control over subsidiaries. The Group’s investments in its joint venture are accounted for using the equity method. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment separately. ThestatementofprofitorlossreflectstheGroup’s share of the results of operations of the joint venture. Any change in other comprehensive income (“OCI”) of those investees is presented as part of the Group’s other comprehensive income. Unrealised gains and losses resulting from transactions between the Group and joint venture are eliminated to the extent of the interest in the joint venture. 32 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Thefinancialstatementsoftheassociateorjointventure are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of joint venture and its carrying value, andthenrecognisesthelossinprofitorloss. L. IMPAIRMENT OF ASSETS Goodwillandotherassetsthathaveanindefinite useful life are not amortised but are tested annually for impairment in accordance with AASB 136 'Impairment of Assets'. The depreciable amount of intangible assets with afinitelifeisamortisedoveritsusefullife.Assetssubject to annual depreciation or amortisation are reviewed for impairment whenever events or circumstances arise that indicate that the carrying amount of the asset may be impaired. An impairment loss is recognised where the carrying amount of the asset exceeds its recoverable amount. The recoverableamountofanassetisdefinedasthehigher of its fair value less costs to sell and value in use. For the purposes of impairment, assets are grouped at the lowest level for which there are separately identifiablecashflows(cashgeneratingunits). M. REVENUE RECOGNITION Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it isprobablethattheeconomicbenefitswillflowtothe Group and the revenue can be reliably measured. Thefollowingspecificrecognitioncriteriamustalsobe met before revenue is recognised: i. Rendering of services Management fee revenue is recognised upon delivery of the service to the customer. ii. Interest revenue Interest revenue is recognised when it becomes receivable on a proportional basis taking into account theinterestratesapplicabletothefinancialassets. All revenue is stated net of the amount of goods and services tax (GST). N. GOODS AND SERVICES TAX (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the AustralianTaxationOffice(ATO).Inthesecircumstances the GST is recognised as part of the acquisition of the asset or as part of an item of expense. Receivablesandpayablesinthestatementoffinancial position are shown inclusive of GST. Cashflowsarepresentedintheconsolidatedstatement ofcashflowsonagrossbasis,exceptfortheGST componentofinvestingandfinancingactivities,which aredisclosedasoperatingcashflows. O. EMPLOYEE BENEFITS Employeebenefitobligationsarepresentedascurrent liabilitiesinthestatementoffinancialpositionifthe entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur. i. Short-term employee benefit obligations Liabilities arising in respect of wages and salaries, annualleave,andanyotheremployeebenefits expected to be settled within twelve months of the reporting date are measured at the amounts based on remuneration rates which are expected to be paid when the liability is settled. The expected costofshort-termemployeebenefitsintheform of compensated absences such as annual leave is recognisedintheprovisionforemployeebenefits.All othershort-termemployeebenefitobligationsare presented as provisions. ii. Long-term employee benefit obligations Theprovisionforemployeebenefitsinrespectof long service leave and annual leave which, are not expected to be settled within twelve months of the reporting date, are measured at the present value oftheestimatedfuturecashoutflowtobemadein respect of services provided by employees up to the reporting date. iii. Bonus plan The consolidated entity recognises a provision when a bonus is payable in accordance with the employee’s contract of employment, and the amount can be reliably measured. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 33 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998P. TRADE AND OTHER PAYABLES T. SHARE BASED PAYMENTS Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the end of the period that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 7– 60 days of recognition. Q. PROVISIONS Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of pastevents,forwhichitisprobablethatanoutflowof economicbenefitswillresultandthatoutflowcanbe reliably measured. R. BORROWINGS All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using effective interest method.Borrowingsareclassifiedascurrentliabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the statementoffinancialpositiondate. S. LEASES The determination of whether an arrangement is or contains a lease is based on the substance of an arrangement and requires an assessment of whether the fulfilmentofthearrangementisdependentontheuseof aspecificassetorassetsandthearrangementconveysa right to use the asset. Finance leases, which transfer to the Group substantially alltherisksandbenefitsincidentaltoownershipofthe leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease paymentsareapportionedbetweenfinancechargesand reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Financechargesarerecognisedasanexpenseinprofitor loss.Therewerenofinanceleasesduringtheyear. Operating lease payments are recognised as an expense inprofitandlossonastraight-linebasisoverthelease term.Leaseincentivesarerecognisedinprofitorlossas an integral part of the total lease expense. Theconsolidatedentityprovidesbenefitstoits employees in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instrument at the date at which they are granted. The fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is measured at the market bid price at grant date. The fair value of shares issued where the shares are treated as an option is determined using the Black Scholes valuation model. In respect of share-based payments that are dependent on the satisfaction of performance conditions, the number of shares expected to vest is reviewed and adjusted at each reporting date The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditionsarefulfilled(thevestingperiod),endingon the date on which the relevant employees become fully entitled to the award (the vesting date). The amount recognised for services received as consideration for theseequityinstrumentsgrantedisadjustedtoreflect the best estimate of the number of equity instruments that eventually vest. U. SHARE CAPITAL Ordinarysharesareclassifiedasequity.Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. V. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The directors evaluate estimates and judgements incorporatedintothefinancialstatementsbased on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group: 34 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 i. Income tax Incometaxbenefitsarebasedontheassumptionthatno adverse change will occur in the income tax legislation andtheanticipationthatthegroupwillderivesufficient futureassessableincometoenablethebenefittobe realised and comply with the conditions of deductibility imposed by the law. ii. Impairment of goodwill Goodwill is allocated to cash generating units (CGU's) according to applicable business operations. The recoverable amount of a CGU is based on value in use calculations. iii. Customer relationships The key changes that may affect the Group on initial applicationincludecertainsimplificationstothe classificationoffinancialassets,simplificationsto the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. AASB 9 also introduces a new model for hedge accounting that will allow greaterflexibilityintheabilitytohedgerisk,particularly withrespecttohedgesofnon-financialitems.Should the entity elect to change its hedge policies in line with the new hedge accounting requirements of the Standard, the application of such accounting would be largely prospective. The useful life of customer relationships is estimated by management to be the expected period from which the Groupisexpectedtoderivebenefitsfromthisasset. The directors anticipate that the adoption of AASB 9willnothaveasignificantimpactontheGroup’s financialinstruments. W. COMPARATIVE FIGURES When necessary, comparative information has been reclassifiedandrepositionedforconsistencywithcurrent year disclosures. X. ROUNDING OF AMOUNTS Theamountsintheconsolidatedfinancialstatements and directors’ report have been rounded to the nearest $1,000 (where rounding is applicable) where noted ($’000) under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The Company is an entity to which this legislative instrument applies. Y. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE AT 30 JUNE 2017 Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the potential impact of such pronouncements on the Group when adopted in future periods, are discussed below: AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 2018). The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includesrevisedrequirementsfortheclassificationand measurementoffinancialinstruments,revisedrecognition andderecognitionrequirementsforfinancialinstruments andsimplifiedrequirementsforhedgeaccounting. AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods beginning on or after 1 January 2018, as deferred by AASB 2015-8: Amendments to Australian Accounting Standards – Effective Date of AASB 15). When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers. The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods orservicestocustomersinanamountthatreflectsthe consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB15providesthefollowingfive-stepprocess: • • identify the contract(s) with a customer; identify the performance obligations in the contract(s); • determine the transaction price; • allocate the transaction price to the performance obligations in the contract(s); and • recognise revenue when (or as) the performance obligationsaresatisfied.Thetransitionalprovisionsof this Standard permit an entity to either: NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 35 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998The transitional provisions of this Standard permit an entity to either: • restate the contracts that existed in each prior period presented per AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors (subject to certain practical expedients in AASB 15); • or recognise the cumulative effect of retrospective application to incomplete contracts on the date of initial application. There are also enhanced disclosure requirements regarding revenue. There are also enhanced disclosure requirements. Although the directors anticipate that the adoption of AASB15mayhaveanimpactontheGroup’sfinancial statements, it is impracticable at this stage to provide a reasonable estimate of such impact. AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019). When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminatestherequirementforleasestobeclassifiedas operatingorfinanceleases. The main changes introduced by the new Standard include: • recognition of a right-to-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating to low-value assets); • depreciation of right-to-use assets in line with AASB 116: Property, Plant and Equipmentinprofit or loss and unwinding of the liability in principal and interest components; • variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability using the index or rate at the commencement date; • by applying a practical expedient, a lessee is permitted to elect not to separate non-lease components and instead account for all components as a lease; and • additional disclosure requirements. The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application. Although the directors anticipate that the adoption of AASB16willimpacttheGroup'sfinancialstatements, it is impracticable at this stage to provide a reasonable estimate of such impact. AASB 2014-10: Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (applicable to annual reporting periods beginning on or after 1 January 2018). This Standard amends AASB 10: Consolidated Financial Statements with regards to a parent losing control over a subsidiarythatisnota“business”asdefinedinAASB3to an associate or joint venture, and requires that: • a gain or loss (including any amounts in other comprehensive income (OCI)) be recognised only to the extent of the unrelated investor’s interest in that associate or joint venture; • the remaining gain or loss be eliminated against the carrying amount of the investment in that associate or joint venture; and • any gain or loss from remeasuring the remaining investment in the former subsidiary at fair value also be recognised only to the extent of the unrelated investor’s interest in the associate or joint venture. The remaining gain or loss should be eliminated against the carrying amount of the remaining investment. The application of AASB 2014-10 will result in a change in accounting policies for transactions of loss of control over subsidiaries (involving an associate or joint venture) that are businesses per AASB 3 for which gains or losses were previously recognised only to the extent of the unrelated investor’s interest. The transitional provisions require that the Standard should be applied prospectively to sales or contributions of subsidiaries to associates or joint ventures occurring on or after 1 January 2018. Although the directors anticipate that the adoption of AASB 2014-10 may haveanimpactontheGroup’sfinancialstatements,it is impracticable at this stage to provide a reasonable estimate of such impact. AASB 2014-1: Amendments to Australian Accounting Standards (Part E) (applicable to annual reporting periods beginning on or after 1 January 2018). Part E of this Standard defers the application date of AASB 9: Financial Instruments (December 2010) to annual reporting periods beginning on or after 1 January 2018. This part also makes consequential amendments to 36 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 This standard amends AASB 140: Investment Property to clarify that a change in use of a property is evidenced only by acts indicating actual change in use and not merely due to change in management intentions. This standard also amends AASB 128: Investments in Associates and Joint Ventures to provide that the election to measure investment in an associate or joint venture that is held through venture capital organisations or a mutual fund, unit trust and similar entities including investment linked insurance funds at fair value through profitorloss,shouldbemadeatthetimeofinitial recognition of the investment in associate or joint venture. Similarly, the election by an entity that is not an investment entity to retain fair value measurements used by its investment entity associate or joint venture for its subsidiaries, has to be made at the later of: • the date of initial recognition of the associate or joint venture; • date when the investment entity associate or joint venture becomes a parent; and • date when the associate or joint venture becomes an investment entity. The above amendments are required to be retrospectively applied in accordance with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors. This standard isnotexpectedtoimpacttheGroup’sfinancialstatements. hedge accounting disclosures set out in AASB 7: Financial Instruments: Disclosures, and to AASB 132: Financial Instruments: Presentation to permit irrevocable designation of “own use contracts” as measured at fair value through profitorlossifthedesignationeliminatesorsignificantly reduces an accounting mismatch. This standard is not expectedtoimpacttheGroup'sfinancialstatements. AASB 2016-1: Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses (applicable for reporting periods beginning on or after 1 January 2017). Thisstandardclarifiesthatdeferredtaxassetrecognition on unrealised losses arising from assets measured at fair valueinthefinancialstatementsshouldcarriedoutafter taking into account any restrictions imposed under tax lawsonthesourceoftaxableprofitsagainstwhichthe deductible temporary differences can be offset. Further thefuturetaxableprofitsshouldnotincludeanyamounts that are reversal of the deductible temporary differences. AASB 2016-1 is not expected to impact the Group’s financialstatementssincethedirectorsbelievethat the Group’s accounting policy for deferred tax asset in relation to assets measured at fair value is already in compliance with the standard. AASB 2016-5: Amendments to Australian Accounting Standards – Classification and Measurement of Share- based Payment Transactions (applicable from 1st January 2018). This standard provides guidance on treatment of vesting conditions in a cash-settled share based payment arrangement that are similar to what has been prescribed for equity settled share based payment arrangements. Italsoclarifiesthat,subjecttocertainexceptions,share based payment transactions with net-settlement feature on accountofwithholdingtaxobligationsshouldbeclassified in entirety as equity settled share based payment. Since the Group does not have a policy of cash-settled share based awards or net-settlement features in equity settled plans, this standard is not expected to impact the Group’sfinancialstatements. AASB 2017-1: Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-2016 Cycle and Other Amendments (applicable to annual reporting periods beginning on or after 1 January 2018) For NFPs the date of applicability of this standard is 1 January 2019. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 37 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998NOTE 2: REVENUE Revenue Management Fees Other income Interest received Services Charges Royalty income Gain on investments Total Other Income 2017 000'S $ 2016 000'S $ 3,759 18 358 12 1 389 NOTES 2017 000'S $ 2016 000'S $ NOTE 3: A. CORPORATE & ADMINISTRATIVE EXPENSES Advertising Accounting, audit, acquisition and relisting costs Other Insurance IT expenses Office&communicationcosts Travel & accommodation Share based payments Total corporate & administrative expenses B. DEPRECIATION AND AMORTISATION Depreciation – property, plant and equipment Amortisation – customer relationships Total corporate & administrative expenses 214 1,353 191 97 80 54 385 1,196 3,570 20 411 431 10 11 38 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 - 10 - 11 - 21 317 - - - - - - - 317 - - - NOTE 4: INCOME TAX EXPENSE A. THE MAJOR COMPONENTS OF TAX EXPENSE COMPRISE: Current Tax Derecognition of Deferred Tax liabilities B. NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE: Loss before income tax expense Primafacieincometaxbenefitatthestatutoryrateof27.5% Effect of amounts which are non-deductible/assessable in calculating taxable income Impairment of Goodwill Impairment of Customer Lists Share based Payments Employee equity based incentive plans Capital raising costs Derecognition of Deferred Tax Loss on Customer Relationships Tax losses not recognised as Deferred Tax assets Income(expense)/benefitreportedintheConsolidatedStatementofOther Comprehensive Income 2017 000'S $ 2016 000'S $ - 289 (14,437) 3,970 (2,684) (151) (314) (59) 85 289 (847) 289 - - (300) 90 - - - - - - (90) - C. DEFERRED TAX LIABILITY The amount of Deferred Tax Liability recognised in the Consolidated Statement of Financial Position relates to the recognition of Customer Relationships acquired of $2,882,000 net of amortisation and write downs. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 39 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 D. TAX LOSSES Unused tax losses for which no deferred tax asset has been recognised: Potentialtaxbenefit27.5% 469 33,207 2017 000'S $ 2016 000'S $ All unused tax losses disclosed above were incurred by Australian entities. A tax asset will not be recognised until it becomes probable that the tax consolidated groupwillobtainthebenefitoftheselosses,because: i. itderivesfutureassessableincomeofanatureandofanamountsufficient toenablethebenefitfromthedeductionforthelossestoberealised,or ii. the losses are transferred to an eligible entity, and iii. the tax consolidated group continues to comply with the conditions for deductibility imposed by tax legislation, and there are no tax legislation changes that adversely affect the ability of the consolidated tax entity to realisethebenefitfromthedeductionsforthelosses. NOTE 5: CASH AND CASH EQUIVALENTS Bank balances Short-term deposits NOTE 6: TRADE AND OTHER RECEIVABLES CURRENT Trade receivables Sundry debtors GST receivable Total current trade and other receivables The ageing of trade receivables as at 30 June 2017 is less than 30 days. There are no trade receivables which are past due and impaired as at 30 June 2017. 2017 000'S $ 2016 000'S $ 819 - 819 2017 000'S $ 2016 000'S $ 1,257 45 46 1,348 77 220 297 - - 7 7 40 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 7: OTHER ASSETS CURRENT Prepayments Accrued income 2017 000'S $ 2016 000'S $ 110 77 187 10 - 10 PRINCIPAL PLACE OF BUSINESS / COUNTRY OF INCORPORATION PERCENTAGE INTEREST (%) 2017 PERCENTAGE INTEREST (%) 2016 NOTE 8: INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD Joint Venture: Switzer Asset Management Limited Australia 46.25 TheGrouphasa46.25%interestinSwitzerAsset Management Limited (ACN: 123 611 978). The Group’s interest in Switzer Asset Management Limited is accounted for using theequitymethodintheconsolidatedfinancialstatements. SUMMARISED STATEMENT OF FINANCIAL POSITION OF SWITZER ASSET MANAGEMENT LIMITED: Current assets Non-current assets Current liabilities Non-current liabilities Equity Group's share of equity 2017 000'S $ 2016 000'S $ 623 30 (79) (319) 255 118 - - - - - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 41 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 SUMMARISED STATEMENT OF COMPREHENSIVE INCOME OF SWITZER ASSET MANAGEMENT LIMITED: Revenue Administration expenses Profit/(loss) before tax Income tax expense Profit/(loss) for the period (continuing operations) Total comprehensive income for the period (continuing operations) Group's share of profit/(loss) for the period 2017 000'S $ 2016 000'S $ 446 (522) (76) 22 (54) (54) (25) - - - - - - - The associate entity had no contingent liabilities or capital commitments as at 30 June 2017. TheGroupiscommittedtomakeafinalinstalmenttocompletetheacquisitionofSwitzerAssetManagementLimited. Duringtheyearaninstalmentfor$53,000wasmadeinFebruary2017withthefinalinstalmentdueinJanuary2018for $53,000. The loss of $(54,000) in Switzer Asset Management Limited contained one off costs of $118,000 (2016: $nil) associated with the development of the exchange traded product (“ETP”). At 30 June 2017, the Group reduced the value of its investment in Switzer Asset Management Limited by its share of the joint venture’s loss of $25,787. This reduced the value of the investment to $347,000. Opening balance at 1st July 2016 Amounts acquired as part of business combination Amounts invested during the year Share of losses during the year Closing balance at 30th June 2017 000'S $ - 372 - (25) 347 The Group performs its annual impairment test at year end of its interest in Switzer Asset Management Limited and when circumstances indicate the carrying value may be impaired. The Group’s impairment test for its interest inthejointventureassumesthatsaleswillincreaseby85%inthe2018yearasaresultofanincreaseinfunds undermanagementandcostswillreduceby25%asaresultoftheone-offcostsbeingincurredinthe2017forthe development of the ETP. 42 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 9: OTHER FINANCIAL ASSETS NON-CURRENT Otherfinancialasset1 Loan to Switzer Asset Management Limited (Note 26) 2017 000'S $ 2016 000'S $ 345 159 504 1Otherfinancialassetsareinterestbearingdepositssupportingbankguaranteesforoperatingleasesandarerefundedupon termination of the lease contract NOTE 10: PROPERTY, PLANT AND EQUIPMENT Furniture, fixtures and fittings At cost Accumulated depreciation Totalfurniture,fixturesandfittings Computer equipment At cost Accumulated depreciation Total computer equipment Total property, plant and equipment 2017 000'S $ 2016 000'S $ 187 (9) 178 46 (4) 42 220 - - - - - - - - - - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 43 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998MOVEMENTS IN CARRYING AMOUNTS OF PROPERTY, PLANT AND EQUIPMENT Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end ofthecurrentfinancialyear: 2016 Opening balance at 1 July 2015 Additions Disposals – written down value Depreciation expense Closing balance at 30 June 2016 2017 Opening balance at 1 July 2016 Additions Disposals – written down value Depreciation expense Closing balance at 30 June 2017 NOTE 11: INTANGIBLE ASSETS Goodwill Accumulated impairment loss Customer Relationships Accumulated amortisation Accumulated impairment loss Total Intangibles FURNITURE, FIXTURES AND FITTINGS 000'S $ COMPUTER EQUIPMENT 000'S $ TOTAL 000'S $ - - - - - - 208 (19) (11) 178 25 25 NOTES - - - - - - 66 (15) (9) 42 2017 000'S $ 2016 000'S $ 9,760 (9,760) - 3,844 (411) (551) 2,882 2,882 - - - - - - 274 (34) (20) 220 - - - - - - - - 44 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 A. MOVEMENTS IN CARRYING AMOUNTS OF INTANGIBLE ASSETS GOODWILL 000’S $ CUSTOMER RELATIONSHIPS 000’S $ TOTAL 000’S $ - 9,760 - (9,760) - - 3,844 (411) (551) 2,882 - 13,604 (411) (10,311) 2,882 Opening value at 1 July 2016 Additions through business combinations Amortisation charge Impairment loss Closing value at 30 June 2017 B. IMPAIRMENT TESTING The Group performs its annual impairment test at 30 June 2017 and when circumstances indicate the carrying value may be impaired. The Group’s impairment test for goodwill and customer relationships is based on value-in-use calculations. Keyassumptionsusedin“valueinuse”calculationsandsensitivitytochangesinassumptionsaresetoutbelow.The calculation of value in use for the Group is most sensitive to the following assumptions: • Value of funds under management • Management fee rates • Employment costs • Growthrateestimatesareusedtoextrapolatecashflowsbeyondtheforecastperiod Value of funds under management – The value of funds under management is the key determinant in the level of revenue received as management fees for the management of those funds. The value of funds under management is forecast to increase over the forecast period. Management fee rates – The level of management fee rates for the forecast period has been estimated to be consistent with historical and industry norms. Employmentcosts–AsignificantcosttotheGroupisemploymentcosts.Overtheforecastperiodemploymentcosts are estimated to increase as stated below. Discountrates-DiscountratesrepresentthecurrentmarketassessmentoftherisksspecifictotheGroupandthe time value of money. TheGroupusedthecash-generatingunit’svalue-in-usetodeterminetherecoverableamount.Theprojectedcashflow has been done using the following key assumptions: Revenue increase Employment cost increase Other costs increase YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 10% 0% 5% 20% 0% 5% 11% 5% 5% 9% 5% 5% 9% 5% 5% NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 45 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998Apre-taxdiscountrateof15%wasappliedinthevalueinusecalculation.Cashflowsbeyondthefive-yearperiodhave beenextrapolatedusinga2.5%growthrate.Asaresultoftheanalysis,theGroupidentifiedanimpairmentforthe Group’s goodwill of $9,760,000. Customer relationships represents the value of relationships with customers existing at the date of acquisition of the Contango business – refer note 25. The value at acquisition date was determined using the net present value of the expectedEBITDAmargin(20%)fromestimatedfuturerevenuesadjustedforanappropriateattritionrate.Thediscount factorsusedrangedfrom8.5%to11.5%aftertax. The intangible asset is amortised over its expected useful life ranging from 7 to 12 years. Since acquisition date there have been some customers move their funds away from the Group, and as a result an impairment adjustment of $551,000hasbeenrecordedinprofitandloss. The sensitivity within the valuation depends primarily on the expected revenues achieved over time. In the event that revenue varies the following impairments to the carrying value of customer relationships would need to be considered. Change in Revenues 2% 5% 10% Impairment expense that would be recognised $57,600 $144,100 $288,200 NOTE 12: TRADE AND OTHER PAYABLES CURRENT GST payable Accrued expenses Trade payables Interest payable on short term loan Other payable Total Trade and Other Payables RefertoNote22forfurtherinformationonfinancialriskmanagement. 2017 000'S $ 2016 000'S $ 49 360 355 10 49 823 - 13 42 - - 55 46 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 13: BORROWINGS CURRENT Other unsecured loans Total current borrowings Summary of borrowing arrangements 2017 000'S $ 2016 000'S $ 750 750 BorrowingsconsistofanunsecuredloanrepayableinJuly2017ataninterestrateof5.25%.Subsequenttoyearend,theloan repayable date was extended to December 2017 and the loan was repaid on 5 September 2017. NOTE 14: PROVISIONS CURRENT Annual Leave Long Service Leave MOVEMENT IN CARRYING AMOUNTS Opening balance at 1 July 2015 Additional provisions Provisions used Closing balance at 30 June 2016 Additional provisions Provisions used Closing balance at 30 June 2017 2017 000'S $ 2016 000'S $ 204 137 341 EMPLOYEE BENEFITS 000'S $ - - - - - - - - - 341 - 341 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 47 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 NOTE 15: DEFERRED TAX LIABILITY Deferred tax liability on customer relationships consists of: Acquired during the year (Note 25) Reduction through impairment and amortisation (Note 11) Closing balance at the end of the reporting period NOTE 16: ISSUED CAPITAL 42,265,500 (2016: 1,022,027,092) Ordinary Shares Total MOVEMENTS IN ORDINARY SHARES CAPITAL Opening Balance - 1 July 2016 Details 2017 000'S $ 2016 000'S $ 1,153 (289) 864 - - - 2017 000'S $ 2016 000'S $ 140,777 140,777 123,626 123,626 NUMBER OF SHARES 000'S $ 000'S $ 1,022,027,092 123,626 Effect of Share consolidation 300 for 1, (25 August 2016) (1,018,619,891) Capital raising net of transaction costs (26 September 2016) Issue of shares Employee share incentive plan Employee loan share plan At the end of the reporting period EMPLOYEE SHARE PLANS: 28,643,300 2,506,094 2,003,301 5,705,604 - 15,648 1,503 - - 42,265,500 140,777 The shares issued under the Employee Share Incentive Plan and Employee Loan Share Plan have been treated as options under Australian Accounting Standards. The fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting period, with a corresponding increase to the reserve account, refer to the Consolidated Statement of Changes in Equity. The fair value of any shares issued are measured at the market bid price at grant date. In respect of share-based payments that are dependent on the satisfaction of performance conditions, the number of shares expected to vest is reviewed and adjusted at each reporting date. The amount recognised for services received as consideration for these equity instruments granted is adjustedtoreflectthebestestimateofthenumberofequityinstrumentsthateventuallyvest. 48 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 17: RESERVES Share option reserve Opening Balance Recognition of share-based payments Issue of share options Total reserves 2017 000'S $ 2016 000'S $ - 214 53 267 267 - - - - Theshareoptionreserveisusedtorecognisethevalueofequitybenefitsprovidedtoemployeesanddirectorsaspart of their remuneration, and other parties as part of their compensation for services. NOTE 18: ACCUMULATED LOSSES Opening balance Net loss attributable to the shareholders Accumulated losses at end of the year NOTE 19: DIVIDENDS 2017 000'S $ 2016 000'S $ (123,367) (14,148) (137,515) (123,067) (300) (123,367) Nodividendhasbeendeclaredorpaidinrespecttothefinancialyearended30June2017(2016:$nil). NOTE 20: EARNINGS PER SHARE BasicEPSiscalculatedbydividingtheprofitorlossfortheperiodattributabletoordinaryequityholdersofthe Company by the weighted average number of ordinary shares outstanding during the period. DilutedEPSiscalculatedbydividingtheprofitorlossattributabletoordinaryequityholdersoftheCompanybythe weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. Basic earnings (loss) per share Total loss per share attributable to the ordinary equity holders of the company Dilutive earnings (loss) per share Total loss per share attributable to the ordinary equity holders of the company (43.0) (43.0) (9.0) (9.0) 2017 CENTS 2016 CENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 49 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998ThefollowingtablereflectstheincomeandsharedatausedinthebasicanddilutedEPScomputations: 2017 000'S $ 2016 000'S $ (A) RECONCILIATION OF EARNINGS TO PROFIT OR LOSS FROM CONTINUING OPERATIONS Basic earnings per share Loss attributable to the ordinary equity holders of the company used in calculating basic loss per share (14,148) (300) Diluted earnings per share Loss attributable to the ordinary equity holders of the company used in calculating diluted loss per share (14,148) (300) (B) EARNINGS USED TO CALCULATE OVERALL EARNINGS PER SHARE Earnings used to calculate overall earnings per share (14,148) (300) 2017 NO. 2016 NO. (C) WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR IN CALCULATION OF EARNINGS PER SHARE Weighted average number of ordinary shares used in calculating basic earnings per share 32,896,924 1,022,027,092 Options have not been included in the calculation of diluted earnings per share because they are considered to be antidilutive for the year ended 30 June 2017. These options could potentially dilute basic earnings per share in future periods. Shares issued under the ESIP and ELSP have been included in the calculation of ordinary and diluted earnings per share. NOTE 21: SHARE-BASED PAYMENTS In September 2016, 1,906,094 shares were issued to Directors (George Boubouras, Charles Aitken, Martin Switzer), Paul Rickard and associates (but not related parties) of Martin Switzer. The shares were valued at $0.60 per share, being the offer price under the prospectus issued during the year, resulting in an expense of $1,144,000 being recorded during the period. 4,396,107shareswerealsoissuedtoPacificPointPartnersLimitedinsatisfactionofapre-acquisitionloan of$2,600,000 and interest of $37,664. The shares were valued at $0.60 per share, being the offer price under the prospectus issued during the year. These shares were included in the total shares issued under the prospectus of 28,643,300 shares. InSeptember2016,345,000shareoptionsweregrantedtoPacificPointPartnersLimitedinpartialconsideration of providing a loan to assist in the acquisition of Contango. The Options have an exercise price of $0.60 each and are exercisableatanytimeaftertheoneyearanniversaryofthedateofgrantuntilthefifthyearanniversaryofthedateofgrant. 50 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 The fair value at grant date is estimated using a Black-Scholes pricing model, taking into account the terms and conditions upon which the options were granted. The fair value of options was estimated on the date of grant using the following assumptions: Exercise price Dividendyield(%) ExpectedVolatility(%) Riskfreeinterestrate(%) Fair value per option $0.60 0.00 25.00 1.70 $0.1527 For the year ended 30 June 2017, the Group has recognised $52,681 of share-based payment expense in regards to the optionsgrantedtoPacificPointPartnersLimitedintheprofitorloss. GRANT DATE EXPIRY DATE EXERCISE PRICE START OF THE YEAR GRANTED DURING THE YEAR FORFEITED DURING THE YEAR BALANCE AT THE END OF THE YEAR VESTED AND EXERCISABLE AT THE END OF THE YEAR 26/09/2016 26/09/2021 $0.60 - 345,000 - 345,000 - Also in September 2016, 2,003,301 shares were issued under the Employee Share Incentive Plan (ESIP) and 5,705,604 Shares were issued under the Employee Loan Share Plan (ELSP) (Collectively known as the Share Plans) to certain employees of the Group. As the ELSP and ESIP have similar features to an option, the appropriate approach is to value the plans using an option pricing model. The key details of the Share Plans are as follows: • Only certain employees of the Group are eligible to participant in the Share Plans, which is for fully paid ordinary shares in the capital of the Company. The Company loans the employee an amount equal to the acquisition price of the shares at zero interest. • The loan amount for shares acquired under the ESIP and is repayable in instalments during the three years after the acquisition of shares. • The loan amount for shares acquired under the Share Plans is repayable within 30 days after the 7th anniversary of the date of acquisition of shares. • 1/3ofthesharesarelockeduntilthefifthanniversaryofthedateofacquisitionoftheshares.Afurther1/3ofthe sharesarelockeduntilthesixthanniversaryofthedateofacquisitionoftheshares.Thefinal1/3oftheSharesare locked until the seventh anniversary of the date of acquisition of the shares. • If an employee who is a participant ceases to be an employee during the relevant loan period or prior to the fifthanniversaryofthedateofacquisitionduetodismissaltheshareswillbecome'LeaverShares'andmaybe purchased by the Company or employee pursuant to the put/call option arrangements. Further details on the ESIP and ELSP can be found in the announcements made to the Australian Securities Exchange on 28 September 2016. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 51 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998The fair value at grant date is estimated using a Black-Scholes pricing model, taking into account the terms and conditions upon which the options were granted: The fair value of shares issued under the ELSP are as follows: Exercise Price Dividendyield(%) Expectedvolatility(%) Risk-freeinterestrate(%) Life Calculated fair value per share: between The fair value of shares issued under the ESIP was estimated using the following assumptions: Exercise price Dividendyield(%) Expectedvolatility(%) Risk-freeinterestrate(%) Life Calculated fair value per share $0.60 0.00 25.00 1.70 6.0, 6.5 and 7.0 years $0.17 and $0.18 nil 0.00 25.00 1.70 6.0, 6.5 and 7.0 years $0.60 EstimatedlikelihoodofemployeesremaininganemployeeoverthetermoftheSharePlansis75%.Thelikelihoodof employees remaining an employee is assessed annually. GRANT DATE EXPIRY DATE EXERCISE PRICE START OF THE YEAR GRANTED DURING THE YEAR FORFEITED DURING THE YEAR BALANCE AT THE END OF THE YEAR VESTED AND EXERCISABLE AT THE END OF THE YEAR 25/09/2016 25/09/2023 $0.60 - 5,705,604 25/09/2016 25/09/2023 $nil - 2,003,301 - - 5,705,604 2,003,301 - - EMPLOYEE SHARE PLAN Employee Loan Share Plan Employee Share Incentive Plan For the year ended 30 June 2017, the Group has recognised $214,168 of share-based payment expense in regards to sharesissuedundertheSharePlansinprofitorloss. 52 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 A summary of the movements of all Group options issued is as follows: Options outstanding as at 1 July 2015 Granted Forfeited Exercised Expired Options outstanding as at 30 June 2016 Granted Forfeited Exercised Expired Options outstanding as at 30 June 2017 Options exercisable as at 30 June 2017 Options exercisable as at 30 June 2016 NOTE 22: FINANCIAL RISK MANAGEMENT NUMBER WEIGHTED AVERAGE EXERCISE PRICE - - - - - - - - - - 8,053,905 $0.45 - - - - - - 8,053,905 $0.45 - - - - TheGroup'sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includinginterestrateriskandpricerisk), credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of foreign exchange risk and aging analysis for credit risk. Risk management is carried out by the Board of Directors. MARKET RISK Foreign currency risk TheGroupwasnotsubjecttoanymaterialforeignexchangeriskinthe2017and2016financialyears. Price risk TheGroupwasnotsubjecttoanymaterialpriceriskinthe2017and2016financialyears,includingequitiessecurities price risk and commodities price risk. Interest rate risk The Group's main interest rate risk arises from cash and cash equivalents, the majority of which is held in various at- calldepositsatvariableratesandvariousshort-termdepositswithinterestratesfixedforthetermsofthedeposits. During 2016 and 2017, the Group's cash on hand at variable rate was denominated in Australian dollars. As at the reporting date, the Group had the following variable rate cash on hand: NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 53 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 9982017 2016 WEIGHTED AVERAGE INTEREST RATE % 1.31 WEIGHTED AVERAGE INTEREST RATE % 1.85 BALANCE 000'S $ 819 819 BALANCE 000'S $ 297 297 Cash at bank Net exposure to cash flow interest rate risk Sensitivity The following table illustrates sensitivities to the Group’s exposures to changes in interest rates, exchange rates and commodityandequityprices.Thetableindicatestheimpactofhowprofitandequityvaluesreportedattheendofthe reporting period 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. Year ended 30 June 2017 +/-1.00%ininterestrates Year ended 30 June 2016 +/-1.00%ininterestrates CREDIT RISK PROFIT 000'S $ EQUITY 000'S $ 8 4 8 4 TheGroupwasnotsubjecttoanymaterialcreditriskinthe2017and2016financialyears. LIQUIDITY RISK Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandtheavailabilityoffundingthroughan adequate amount of committed credit facilities. The Group manages liquidity risk by continuously monitoring forecast andactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.Duetothesimplenatureof theunderlyingbusinesses,andconsistentlynegativecashflowsfromoperations,theGroupaimstosimplifyfundingby minimising credit lines and investing surplus funds in very liquid deposits at call or short term deposits. Financial liability and financial asset maturity analysis ThetablesbelowanalysetheGroup'sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremaining periodbetweenthereportingdateandthecontractualmaturitydate.Cashflowsrealisedfromfinancialassetsreflect management's expectations as to the timing of realisation. Actual timing may therefore differ from that disclosed. The amountsdisclosedinthetablearethecontractualundiscountedcashflows. 54 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 WITHIN 1 YEAR 000'S $ 1 TO 5 YEARS 000'S $ OVER 5 YEARS 000'S $ TOTAL 000'S $ Group- 2016 Financial liabilities due for payment Trade & other payables (Note 12) Total expected outflows Financial assets- cash flows realisable Cash and cash equivalents Total anticipated inflow on financial instruments Net inflow on financial instruments Group- 2017 Financial liabilities due for payment Trade payables (Note 12) Borrowings Total expected outflows Financialassets-cashflowsrealisable Cash and cash equivalents Trade & other receivables Otherfinancialassets Other Total anticipated inflow on financial instruments Net inflow on financial instruments (55) (55) 297 297 242 (823) (750) (1,573) 819 1,348 - - 2,167 594 - - - - - - - - - - - - - - - - - - - - - - - - 345 159 504 504 (55) (55) 297 297 242 (823) (750) (1,573) 819 1,348 345 159 2,671 1,098 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 55 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 FAIR VALUE Fair value estimation Thefairvaluesoffinancialassetsandfinancialliabilitiesarepresentedinthefollowingtableandcanbecomparedto theircarryingvaluesaspresentedintheconsolidatedstatementoffinancialposition.Fairvaluesarethoseamounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available,fairvalueisobtainedusingdiscountedcashflowanalysisandothervaluationtechniquescommonlyusedby market participants. Thenetfairvalueofcashandcashequivalentsandnon-interestbearingmonetaryfinancialassetsandfinancial liabilities of the Group approximates their carrying amounts. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short-term nature. 2017 2016 NET CARRYING VALUE 000'S $ NET FAIR VALUE 000'S $ NET CARRYING VALUE 000'S $ NET FAIR VALUE 000'S $ 819 1,348 504 2,671 823 750 1,573 819 1,348 504 2,671 823 750 1,573 297 7 - 304 55 - 55 297 - - 297 55 - 55 Finanacial assets Cash and cash equivalents Trade and other receivables Otherfinancialassets Totalfinancialassets Financial liabilities Trade and other payables Borrowings Totalfinancialliabilities CAPITAL RISK MANAGEMENT The Group's objectives when managing capital are to safeguard the ability to continue as a going concern, so that it can providereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructureto reducethecostofcapital.AstheGroupincursnetcashoutflowsfromoperationsandhaslargeaccumulatedlosses, the primary method used to adjust its capital structure is the issue of new shares. The Group has determined that where possible it will issue ordinary shares, rather than issue hybrid forms of securities, so as to avoid any restrictions on its use of capital or commit to interest repayments. 56 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 23: PARENT ENTITY Set out below is the supplementary information about the parent entity. Statement of Financial Position Current assets Non-current assets Total Assets Current liabilities Non-current liabilities Total Liabilities Issued capital Accumulated losses Share option reserve Total Equity Statement of Profit or Loss and Other Comprehensive Income Totalprofitorlossfortheyear Total other comprehensive income Total comprehensive income CONTINGENT LIABILITIES The parent entity has no contingent liabilities as at 30 June 2017. CONTRACTUAL COMMITMENTS The parent entity did not have any commitments as at 30 June 2017. 2017 000'S $ 2016 000'S $ 66 2,882 2,948 774 864 1,638 140,777 (139,734) 267 1,310 (16,367) - (16,367) 314 - 314 55 - 55 123,626 (123,367) - 259 (300) - (300) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 57 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998NOTE 24: INTERESTS IN SUBSIDIARIES COMPOSITION OF THE GROUP The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary’s principal place of business is also its country of incorporation. Subsidiaries: CAM SPV Pty Ltd 2735 CSM Holdings Pty Ltd Contango Funds Management Limited Contango International Limited Contango Group Services Pty Ltd PRINCIPAL PLACE OF BUSINESS / COUNTRY OF INCORPORATION PERCENTAGE OWNED (%) 2017 PERCENTAGE OWNED (%) 2016 Australia Australia Australia Australia Australia 100 100 100 100 100 - - - - - Subsidiaryfinancialstatementsusedinthepreparationoftheseconsolidatedfinancialstatementshavealsobeen preparedasatthesamereportingdateastheGroup’sfinancialstatements. NOTE 25: BUSINESS COMBINATION ACQUISITION OF CAM SPV PTY LTD AND ITS SUBSIDIARIES: On29September2016,theGroupacquired100%ofthesharecapitalofCAMSPVPtyLtd(ACN:612978800)andits subsidiary,2375CSMHoldingsPtyLtd(ACN:085657147)(CSM).CSMowns100%ofthesharecapitalofContango Funds Management Limited (ACN: 085 487 421) (CFML) and Contango Group Services Pty Ltd (ACN: 085 586 590) (CGS). CSM, CFML and CGS are collectively referred to as 'Contango'. CSMalsoholdsa46.25%non-controllingshareholdinginvestmentinSwitzerAssetManagementLimited(ACN:123 611 978) (SAM). SAM is an Australian fund manager specialising in managed funds for retail investors. The business of SAM (previously Halidon Asset Management Ltd) was established in 2007. SAM is jointly owned by Switzer Financial GroupPtyLtd(ACN:112294649)(46.25%)andCSM(46.25%)and7.5%isownedbyanotherparty. Contango is a boutique wholesale and listed investment company (LIC) fund manager with mandates across the entire market capitalisation spectrum. CFML is the holder of Australian Financial Services Licence 237119 which licences CFML to provide funds management services for wholesale and institutional clients. CFML is the responsible entity of the registered wholesale Contango Managed Investment Scheme (ARSN: 099 665 264). CFML manages large cap, mid cap, small cap, micro cap and income focused mandates for its institutional clients. It also manages three LIC mandates. 58 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 ThefairvalueoftheidentifiableassetsandliabilitiesofContangoasatthedateofacquisitionwere: Assets Cash and cash equivalents Trade and other receivables Plant and equipment Investment in associate Other assets Customer relationships (intangible asset) Total assets Liabilities Trade and other payables Provisions and deferred revenue Deferred tax liability on customer relationships (intangible assets) Total liabilities Totalidentifiablenetassetsatfairvalue Goodwill arising on acquisition Purchase consideration transferred Analysis of cash flows on acquisition: Netcashacquiredwiththesubsidiary(includedincashflowsfrominvestingactivities) Cash paid Payments to acquire businesses, net of cash acquired FAIR VALUE RECOGNISED ON ACQUISITION 000'S $ 2,675 872 22 372 628 3,844 8,413 753 719 1,153 2,625 5,788 9,760 15,548 2,675 (12,948) (10,273) From the date of acquisition, Contango has contributed $4,142,000 of revenue and $11,718,000 to the net loss before tax from the continuing operations of the Group. If the acquisition had taken place at the beginning of the year, revenue from continuing operations would have been $5,559,000 and the loss from continuing operations for the period would have been $11,861,000. Transaction costs of $986,000 have been expensed and are included in administrative expenses in the statement of profitorlossandarepartofoperatingcashflowsinthestatementofcashflows. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 59 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 NOTE 26: RELATED PARTIES i. Entities exercising control over the Group: The ultimate parent entity, which exercises control over the Group, is Contango Asset Management Limited which is incorporatedinAustraliaandowns100%ofallControlledEntities. ii. Key management personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel. Fordetailsofremunerationdisclosuresrelatingtokeymanagementpersonnel,refertoNote27:KeyManagement Personnel Disclosures and the remuneration report in the Directors' Report. iii. Subsidiaries Interests in subsidiaries are set out in Note 24. A. TRANSACTIONS WITH RELATED PARTIES Other than the loan to associates outlined below and remuneration to key management personnel, the Group had no related party transactions during the year. B. LOANS TO/FROM RELATED PARTIES During the year, the Group provided a zero-interest subordinated loan of $159,469 to its associate Switzer Asset ManagementLimited(SAM)withnofixedterm.TheloanissubordinatedtoallothercreditorsofSAMandnotrepayable until 30 June 2027. Balance of loan at beginning of the year Loans advanced Balance at the end of the year $’000 - 159 159 60 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 27: KEY MANAGEMENT PERSONNEL DISCLOSURES Keymanagementpersonnelremunerationincludedwithinemployeeexpensesfortheyearisshownbelow: Short-termemployeebenefits Post-employmentbenefits Otherlongtermbenefits Share based payments 2017 000'S $ 2016 000'S $ 548 34 4 1,012 1,598 NOTE 28: CONTINGENT LIABILITIES In the opinion of the Directors, the Company did not have any contingencies at 30 June 2017 (30 June 2016:None). NOTE 29: CAPITAL AND LEASING COMMITMENTS A. FINANCE LEASES Therewerenofinanceleasecommitmentsfortheyear(2016:nil). B. OPERATING LEASES Non-cancellableoperatingleasescontractedforbutnotrecognisedinthefinancialstatements: Minimum lease payments under non-cancellable operating leases: - not later than one year -betweenoneyearandfiveyears -laterthanfiveyears 2017 000'S $ 2016 000'S $ 412 653 - 1,065 105 - - - 105 - - - - Operating leases have been taken out for the rental of premises. Lease payments are increased on an annual basis to reflectmarketrentals. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 61 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998NOTE 30: SEGMENT INFORMATION TheGroupoperatessolelyinthebusinessofprovidingfundsmanagementservices.Revenue,profit,netassetsand otherfinancialinformationreportedtoandmonitoredbytheChiefOperatingDecisionMaker(CODM)forthesingle identifiedoperatingsegmentaretheamountsreflectedintheStatementofProfit&LossandOtherComprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows. The CODM has beenidentifiedastheBoardofdirectors. NOTE 31: AUDITORS' REMUNERATION Auditors of the parent entity Remuneration of the auditor for: -auditingorreviewingthefinancialstatements - taxation services - preparation of Investigating Accountant’s Report and member of Due Diligence Committee Auditors of subsidiary entities Remuneration of the auditor for: -auditingorreviewingthefinancialstatements - taxation services - due diligence services The auditor of the Company is HLB Mann Judd Assurance (NSW) Pty Ltd. 2017 000'S $ 2016 000'S $ 67,500 5,600 27,500 100,600 147,441 10,300 - 157,741 20,000 3,100 25,000 48,100 - - - - 62 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 2017 000'S $ 2016 000'S $ NOTE 32: CASH FLOW INFORMATION A. RECONCILIATION OF RESULT FOR THE YEAR TO CASH FLOWS FROM OPERATING ACTIVITIES Reconciliation of net income to net cash provided by operating activities: Loss for the year (14,148) (300) Cashflowsexcludedfromprofitattributabletooperatingactivities Non-cashflowsinprofit: - impairment loss - depreciation and amortisation - employee share option expense - net gain on disposal of property, plant and equipment - (gain)/loss on revaluation of investment in associate - unrealised gain on investment Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries: - (increase)/decrease in trade and other receivables - (increase)/decrease in other assets - increase/(decrease) in trade and other payables - increase/(decrease) in income taxes payable - increase/(decrease) in deferred tax liability - increase/(decrease) in provisions Cashflowfromoperations B. LOAN FACILITIES Amount unutilised Amount utilised 10,311 431 267 33 22 (45) (500) 527 1,578 35 (289) (328) - - - - - (4) - 17 - - - (2,106) (287) - 750 750 - - - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 | 63 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 NOTE 33: EVENTS OCCURRING AFTER THE REPORTING DATE On 21 August 2017, the Group announced a share placement of 5,555,556 shares at $0.90 each to cornerstone, institutional and other sophisticated investors, raising $5 million gross in additional capital. The funds will be used to develop further the Group’s suite of products, build internal business development capability and repay debt. Subsequenttobalancedate,theGroupexperiencednetoutflowsoffundsundermanagementrelatingtoits institutional business as detailed in the Company’s ASX announcement dated 25th September, 2017. Noothermattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectedorcould significantlyaffecttheoperationsoftheGroup,theresultsofthoseoperations,orthestateofaffairsoftheGroupin futurefinancialyears. NOTE 34: COMPANY DETAILS Theregisteredofficeofthecompanyandprincipalplaceofbusinessis: Contango Asset Management Limited Level 27 35 Collins Street Melbourne VIC 3000 64 | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 DIRECTOR’S DECLARATION The directors of the Company declare that in their opinion: 1. thefinancialstatementsandnotesfortheyearended30June2017areinaccordancewiththeCorporations Act 2001 and: a. complywithAccountingStandards,which,asstatedinbasisofpreparationNote1tothefinancial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and b. giveatrueandfairviewofthefinancialpositionandperformanceoftheconsolidatedgroup; 2. theChiefExecutiveOfficerandChiefFinanceOfficerhavegiventhedeclarationsrequiredbySection295Aofthe Corporations Act 2001 that: a. thefinancialrecordsoftheCompanyforthefinancialyearhavebeenproperlymaintainedinaccordance with section 286 of the Corporations Act 2001; b. thefinancialstatementsandnotesforthefinancialyearcomplywiththeAccountingStandards;and c. thefinancialstatementsandnotesforthefinancialyeargiveatrueandfairview. 3. 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. Director: Roger Amos Chairman Dated this 29th day of September 2017 DIRECTOR’S DECLARATION FOR THE YEAR ENDED 30 JUNE 2017 | 65 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998INDEPENDENT AUDITOR'S REPORT 66 | INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2017 INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 67 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 99868 | INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2017 INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2017 | 69 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 99870 | INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2017 ADDITIONAL INFORMATION FOR LISTED COMPANIES ASX ADDITIONAL INFORMATION Additional information required by the ASX Listing Rules and not disclosed elsewhere in this report is set out below. This information is effective as at 31st August 2017. SUBSTANTIAL SHAREHOLDERS The number of substantial shareholders and their associates are set out below: VOTING RIGHTS Ordinary Shares On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Options No voting rights. DISTRIBUTION OF EQUITY SECURITY HOLDERS Analysis of the number of shareholders by size of holding at 31 August 2017 is presented below: HOLDING 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total Number of holders with less than a marketable parcel of ordinary shares NUMBER OF HOLDERS NUMBER OF ORDINARY SHARES PERCENTAGE OF SHARES ON ISSUE % 680 152 97 250 64 131,345 413,367 783,071 8,852,002 37,641,271 1,243 47,821,056 571 53,705 54.71 12.23 7.80 20.11 5.15 100 ADDITIONAL INFORMATION FOR LISTED COMPANIES FOR THE YEAR ENDED 30 JUNE 2017 | 71 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998TWENTY LARGEST SHAREHOLDERS The names of the twenty largest shareholders of the Company as at 31 August 2017 are listed below HOLDER NAME AET SFS PTY LTD PACIFIC POINT PARTNERS LIMITED HENLEY HOLDINGS AUST PTY LTD WILLIAM LAISTER CITICORP NOMINEES PTY LIMITED PACIFIC POINT PARTNERS LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED MR ROBERT DARIUS FRASER AET SFS PTY LTD SHAWN REX BURNS MR VICTOR JOHN PLUMMER UBS NOMINEES PTY LTD TC CORPORATE P/L MRS TRACY FRASER MR VICTOR JOHN PLUMMER BISCUIT TIN PTY LTD WARRIOR 1995 PTY LTD ALISTAIRMCKINLEYDRUMMOND MR PETER WILLIAM SWITZER & MRS MAUREEN ELIZABETH SWITZER & MR MARTIN FRANCIS SWITZER ROBERT NAIRN PTY LTD BACKWARDATIONINVESTMENTSPTYLTD MRS JOANNA IVERS & MR RICHARD IVERS CAMIPA PTY LTD Total shares held by the twenty largest shareholders Total ordinary shares on issue NUMBER OF ORDINARY SHARES PERCENTAGE OF SHARES ON ISSUE % 5,786,851 4,224,393 3,592,417 1,690,550 1,424,844 1,388,889 1,388,889 1,250,000 833,334 739,616 694,444 600,000 600,000 579,444 555,556 528,298 528,296 528,296 523,817 500,000 489,304 464,304 422,637 29,334,179 47,821,056 12.10 8.83 7.51 3.54 2.98 2.90 2.90 2.61 1.74 1.55 1.45 1.25 1.25 1.21 1.16 1.10 1.10 1.10 1.10 1.05 1.02 0.97 0.88 61.30 72 | ADDITIONAL INFORMATION FOR LISTED COMPANIES FOR THE YEAR ENDED 30 JUNE 2017 TWENTY LARGEST OPTION HOLDERS UNISSUED EQUITY SECURITIES Options issued -. SECURITIES EXCHANGE The Company is listed on the Australian Securities Exchange. ADDITIONAL INFORMATION FOR LISTED COMPANIES FOR THE YEAR ENDED 30 JUNE 2017 | 73 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 CONTANGO ASSET MANAGEMENT LIMITED AND CONTROLLED ENTITIES (FORMERLY TYRIAN DIAGNOSTICS LIMITED) | ACN: 080 277 998 Level 27, 35 Collins Street Melbourne VIC 3000 Australia P +61 3 9222 2333 F +61 3 9222 2345 info@contango.com.au E W contango.com.au 

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