23 October 2020
ASX Market Announcements Office
Australian Securities Exchange Limited
BY ELECTRONIC LODGEMENT
2020 Annual Report
Please see attached the 2020 Annual Report for Farmaforce Limited.
-Ends-
Authorised for lodgement by Gerado Incollingo, Company Secretary.
For personal use only
Annual
report
2020
ACN 167 748 843
Annual Report for the year
ended - 30 June 2020
Your force in healthcare
For personal use only Farmaforce Limited
Contents
30 June 2020
Corporate directory
Chair's report
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Farmaforce Limited
Shareholder information
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3
4
16
17
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19
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21
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46
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For personal use only Corporate
directory
For personal use only Farmaforce Limited
Corporate directory
30 June 2020
Directors
George Elias, Chair
Dr George Syrmalis, CEO
Con Tsigounis
Harry Simeonidis
Company secretary
Gerardo Incollingo
Registered office
Contact address
Share register
Auditor
Level 9, 85 Castlereagh Street
Sydney NSW 2000
Level 3, 333 George Street
Sydney NSW 2000
Boardroom Pty Limited
Level 12, 225 George Street
Sydney NSW 2000
BDO Audit Pty Ltd
Level 11, 1 Margaret Street
Sydney NSW 2000
Stock exchange listing
Farmaforce Limited shares are listed on the Australian Securities Exchange (ASX
code: FFC)
Website
www.farmaforce.com.au
Corporate Governance Statement
The Directors and management are committed to conducting the business of
Farmaforce Limited in an ethical manner and in accordance with the highest
standards of corporate governance. Farmaforce Limited has adopted and has
substantially complied with the ASX Corporate Governance Council's Governance
Principles and Recommendations (3rd edition) ('Recommendations') to the extent
appropriate to the size and nature of its operations.
The Corporate Governance Statement, which sets out the corporate governance
practices that were in operation during the financial year and identifies and explains
any Recommendations that have not been followed, which has been approved at the
same time as the Annual Report can be found at:
www.farmaforce.com.au/corporategovernance/
2
For personal use only Chair's
report
For personal use only Farmaforce Limited
Chair's report
30 June 2020
On behalf of the Board of Directors, we are pleased to present the operational and financial review for Farmaforce
Limited for the year ended 30 June 2020.
This year has seen the Company further expand and consolidate its position in the market and the results for this
financial year have delighted the Board. Revenue growth over the last 12 months has been exceptional, with an
increase of 19% to $13,983,903 compared to FY19. This represents a cumulative revenue increase of 252% over a
three-year period.
At the underlying EBITDA level, our operations improved by $1,117,217 for the year. This represents an increase of
67% when compared to last year. This was despite significant investment that continued from 2HY FY19 into 1HY
FY20 in building additional teams with the objective of increasing the revenue of the Company when these teams are
being utilised at full capacity. This allowed the Company to be in a position to enter into more contracts with new and
existing customers in 2HY FY20. The impact of this investment started to flow through in 2HY FY20, allowing the
Company to achieve a gross margin of 25.6% for 2HY FY20. This exceeded the forecasted gross margin announced
to the market for 2HY FY20 of 21.6%. This represents a significant milestone for the Company, particularly during a
time of negative sentiment associated with the global COVID-19 pandemic. We expect continued revenue growth as
the full impact of this investment is realised in FY21.
In closing, when we look deeper into the numbers, we can see in the underlying results that our business is performing
well and growing. I congratulate my fellow Directors and management, on achieving these firm results despite the
challenges of the COVID-19 pandemic. I would like to reiterate that our leadership team is committed to continuing to
build the Farmaforce business and to strive to add value to our clients, shareholders and employees. I also extend a
sincere thank you to our shareholders for their patience and support as we continue to execute our strategies to grow
the company and move towards profitability.
George Elias
Chair
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For personal use only Directors'
report
For personal use only Farmaforce Limited
Directors' report
30 June 2020
The Directors present their report, together with the financial statements, on Farmaforce Limited ('Farmaforce' or the
'Company') for the year ended 30 June 2020.
Directors
The following persons were Directors of the Company during the whole of the financial year and up to the date of this
report, unless otherwise stated:
George Elias
Dr George Syrmalis
Con Tsigounis
Harry Simeonidis
Principal activities
During the year the principal activity of Farmaforce was the provision of services as a contract sales organisation in the
Australian pharmaceutical industry.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
During the year, Farmaforce continued to grow revenues by securing new contracts and clients, as well as by executing
sales contracts.
The growth in market share has resulted in a 19% increase in revenue in the past year and a cumulative revenue increase
of 252% over a three-year period.
With the accelerated growth of the Australian population and the continuous growth of the ageing population, we anticipate
that the healthcare market will continue to expand over the next five years. The COVID-19 pandemic has further
highlighted the importance of healthcare and will further contribute to the expansion of the industry into the future.
Key highlights this financial year include:
● Winner of the ‘Best Health and Pharma Contract Sales Organisation - Australia’ in the Global Health and Pharma
●
●
(ghp) Awards;
Secured new client contracts for existing Farmaforce teams, which resulted in margin leverage for the 2HY of FY20,
successfully meeting its margin forecast announced to the market for 2HY FY20; and
Secured new contract the pharmaceutical sales industry, expanding the Farmaforce services beyond exclusively GP
sales.
Revenue
Gross profit
Loss after tax
2020
$
2019
$
Change
$
Change
%
13,983,903
2,191,840
(1,680,056)
11,711,534
2,619,984
(690,174)
2,272,369
(428,144)
(989,882)
19%
(16%)
143%
The Directors consider EBITDA to reflect the core earnings of the Company. Underlying EBITDA is a financial measure
which is calculated on the EBITDA adjusted for significant items, representing the normalised operations of the Company.
A reconciliation of the Company’s loss and the significant items impacting the Company’s results are set out below. These
significant items pertain to revenue and costs that do not reflect the core earnings of the Company.
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For personal use only Farmaforce Limited
Directors' report
30 June 2020
Loss before income tax expense for the year
Finance cost
Depreciation and amortisation
EBITDA
Significant items:
Share-based payments*
Related party revenue**
Underlying EBITDA
2020
$
2019
$
Change
$
Change
%
(1,680,056)
255,605
625,841
(798,610)
(690,174)
57,511
54,836
(577,827)
(989,882)
198,094
571,005
(220,783)
143%
344%
1041%
38%
258,000
-
-
(1,080,000)
258,000
1,080,000
-
(100%)
(540,610)
(1,657,827)
1,117,217
(67%)
*
The share-based payment expense is an allocation of GBS Inc. shares awarded to staff from GBS Inc. (a related
party of the Company) for an amount of $258,000 (refer to note 31).
** The related party revenue in FY19 relates to consulting services provided to the parent entity, The IQ Group Global
Ltd (refer to note 29).
After adjustments for significant items, the underlying EBITDA from continuing operations for the year ended 30 June 2020
was a negative underlying EBITDA of $540,610, a significant improvement of 67% on the prior period (2019: negative
underlying EBITDA of $1,657,827).
The significant improvement on the underlying EBITDA of 67% is directly attributable to the stronger margin delivered in
2HY FY20, achieved through new customer contracts wins and existing customer contracts generating consistent
revenues. The negative underlying EBITDA was a result of significant investment in 1HY FY20 made as part of building
additional sales teams with the objective of increasing the revenue of the Company when the teams are utilised at full
capacity. The impact of this investment started to flow through in 2HY FY20 and will continue into FY21. This was
demonstrated by a significantly improved financial performance in the 2HY despite the challenging condition presented by
the COVID-19 pandemic. Following a strong performance in the last quarter of FY20, the Company successfully met its
forecast as detailed in its investor update to the exchange (ASX), achieving a gross margin of 25.6% for 2HY FY20. This
exceeded the forecasted gross margin for 2HY FY20 of 21.6%, representing a significant achievement for the Company as
it continues to expand its operations into the future.
Mobilisation of salesforce
During 2HY FY20, Farmaforce successfully mobilised a virtual salesforce to continue optimum business operations during
the COVID-19 period, which encompassed much of 2HY FY20. As a response to the guidance given by the Australian
Government on 29 March 2020 to contain the COVID-19 pandemic, the Company’s sales representatives connected
with medical professionals via a globally accredited and secure virtual sales platform replacing their face-to-face
interactions. This facilitated business as usual and allowed the Company to deliver quality results to clients and
continue to support medical practitioners Australia-wide, resulting in a strong 2HY FY20 performance when compared to
1HY FY20.
Demand of outsourced sales solutions continues to increase
With the increase of global healthcare expenditures, the pharmaceutical industry has grown significantly and has become
more dynamic. The continued demand for new medications to address unmet clinical needs has given the industry a
consequential boost. The COVID-19 pandemic has further contributed to this increase in global healthcare expenditures as
people place a greater focus on all healthcare related priorities in their lives.
In parallel, pharmaceutical company profits are declining due to the expiration of patents and the high costs associated
with both research and development, and drug approval processes. These factors have forced leading pharmaceutical
players to consider outsourcing in-house processes with high overhead costs, such as sales, to focus on core business
operations, such as research and development, patent filing and more.
Because of this, companies globally are investing in the expertise of pharmaceutical contract sales organisations (CSOs)
as an effective way to boost sales without impacting their bottom line, and this trend is anticipated to increase in the
coming years. To keep up with the rapid growth of the healthcare industry, businesses operating in the pharmaceutical
sector are realising the need to expand their geographical outreach, which will further augment the expansion of the global
pharmaceutical CSO market.
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For personal use only Farmaforce Limited
Directors' report
30 June 2020
Additionally, there are a multitude of regional regulatory issues that add pressure to pharmaceutical manufacturers to
reduce costs for customers, and this presents even more opportunities for pharmaceutical CSOs to add value.
Pharmaceutical companies are now outsourcing some of these processes to cut unwanted expenses, engaging
pharmaceutical CSOs to alleviate this pressure with additional regulatory and medical affairs services. Further to this,
digital solutions such as cloud computing, tele-detailing and e-commerce are already bringing in positive changes to the
healthcare industry, which we are seeing trickle into a heightened demand for an expanded service offering from
pharmaceutical CSOs.
More than ever, pharmaceutical companies of all sizes are banking on CSOs such as Farmaforce to improve and innovate
their businesses, boost product sales across the board, and increase their market share. This global trend presents
tremendous growth opportunities for Farmaforce.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Company during the financial year.
Matters subsequent to the end of the financial year
The Company successfully applied for the Australian Government’s JobKeeper program and was eligible on 4 August 2020
with payments effective 1 July 2020. The JobKeeper payment applied to a proportion of the Company’s employees for total
payments of approximately $750,000 over the first three months in FY21.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect
the Company's operations, the results of those operations, or the Company's state of affairs in future financial years.
Likely developments and expected results of operations
Refer to 'Review of operations' section above.
Environmental regulation
The Directors recognise the importance of environmental and workplace health and safety issues. The Directors are
committed to compliance with all relevant laws and regulations to ensure the protection of the environment, the community
and the health and safety of employees.
The operations of the Company are not subject to any significant environmental regulation under the laws of the
Commonwealth of Australia or any of its states or territories.
Based on results of enquiries made, the Board is not aware of any significant breaches of environmental regulations during
the period covered by this report.
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
George Elias
Independent Non-Executive Director, Chair
Bachelor of Commerce (University of New South Wales), Diploma of Financial
Planning (Dip. FP), Member CPA Australia, Graduate member of the Australian
Institute of Company Directors.
George has over 30 years' experience in providing accounting and business advisory
services. During this period, he has been involved in providing taxation and business
advice to small and medium sized enterprises, including business structuring, cash
flow forecasting, taxation and superannuation structure support and advice.
His business and financial acumen, coupled with his experience in dealing with
necessary skills to chair the Board, provides strategic leadership to face any
challenges that may arise.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in rights:
Chair of each Audit and Risk Committee and the Remuneration and Nomination
Committee
1,365,000 ordinary shares held
None
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For personal use only Farmaforce Limited
Directors' report
30 June 2020
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Dr George Syrmalis
Executive Director and Group CEO
M.D., PhD / Trained in Nuclear Medicine-Radiation Immunology
Dr Syrmalis founded and led as CEO and Chair (1995-2005), the Bionuclear Group
SA incorporating Antisoma SA, Bionuclear Institute of Diagnosis and Therapy SA,
Bionuclear Research and Development SA, and Vitalcheck SA.
Chair and Executive Director of The iQ Group Global Ltd (formerly iQnovate Ltd),
Chair and Executive Director of iQX Limited, and Chair and Executive Director of
iQ3Corp Ltd.
Former directorships (last 3 years): None
None
Special responsibilities:
260,000 ordinary shares held
Interests in shares:
None
Interests in rights:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in rights:
Con Tsigounis
Non-Executive Director
Member of the Australian Institute of Company Directors
Con has over 23 years' experience in business and investor relations, specifically in
the wholesale and retail sectors. As a member of the Board of The iQ Group Global
Ltd (formerly iQnovate Ltd) since its inception, Con has been responsible for
executing the company's investor relations and capital raising strategy. His
experience in shareholder relationship management gives him the necessary skillset
to assist the Company attain its corporate objectives.
Executive Director of The iQ Group Global Ltd (formerly iQnovate Ltd)
Member of the Audit and Risk Committee and the Remuneration and Nomination
Committee
294,414 ordinary shares held
None
Name:
Title:
Qualifications:
Experience and expertise:
Harry Simeonidis
Non-Executive Director (Executive Director up to 31 December 2019)
Member of the Australian Institute of Company Directors
Harry has more than 28 years' experience in the healthcare industry in Australia and
Asia. Prior to joining Farmaforce, he was the Chief Executive Officer of GE
Healthcare Australia for over nine years and Director of various GE Healthcare
subsidiaries.
Harry has demonstrated success in driving strategy and transformation to deliver
value for stakeholders.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Member of the Audit and Risk Committee and the Remuneration and Nomination
Committee
None
150,000 performance rights over ordinary shares
Interests in shares:
Interests in rights:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Gerardo Incollingo - Bachelor of Commerce (University of Wollongong), Member CPA Australia
Gerardo has more than 20 years of experience in managing the financial affairs of a diverse client base. Gerardo has a key
focus on day to day contact management and supporting business in enhancing their profitability. He is Managing Director
at LCI Partners, an established multinational accounting, finance and legal firm.
Gerardo is also company secretary of iQ3 Corp Limited, iQX Limited and The iQ Group Global Ltd (formerly iQnovate Ltd).
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Farmaforce Limited
Directors' report
30 June 2020
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the
year ended 30 June 2020, and the number of meetings attended by each Director were:
Full Board
Attended
Held
Remuneration and
Nomination Committee
Attended
Held
Audit and Risk Committee
Attended
Held
George Elias*
Dr George Syrmalis
Con Tsigounis*
Harry Simeonidis*
7
7
7
7
7
7
7
7
1
-
1
1
1
-
1
1
1
-
1
1
1
-
1
1
Held: represents the number of meetings held during the time the Director held office or was a member of the relevant
committee.
*
Member of Audit and Risk Committee and Remuneration and Nomination Committee
Remuneration report (audited)
The remuneration report details the key management personnel ('KMP') remuneration arrangements for the Company, in
accordance with the requirements of the Corporations Act 2001 and the Corporations Regulations 2001.
KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the entity,
directly or indirectly, including all directors.
The following persons were the KMP during the whole of the financial year and up to the date of this report, unless
otherwise stated:
Name
Position
Non-Executive Directors:
George Elias
Con Tsigounis
Harry Simeonidis*
Executive Directors:
Dr George Syrmalis
Non-Executive Director and Chair
Non-Executive Director
Non-Executive Director
Executive Director and Group CEO
*
Executive Director up to 31 December 2019
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to KMP
Principles used to determine the nature and amount of remuneration
The Board of Directors (the 'Board') has established a Remuneration and Nomination Committee ('RNC') which is currently
comprised of the following members:
Name
George Elias
Con Tsigounis
Harry Simeonidis
Position
Chair of RNC
Member
Member
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Farmaforce Limited
Directors' report
30 June 2020
The key responsibility of the RNC is to assist the Board in its oversight of:
●
●
●
●
●
the remuneration framework and policy for executive and employee reward;
the determination of appropriate executive reward, including advice on structure, quantum and mix;
the determination of achievement of performance measures included in any variable remuneration plan;
compliance with applicable legal and regulatory requirements; and
board size, composition and succession planning.
A full charter outlining the RNC’s responsibilities is available at: www.farmaforce.com.au/corporategovernance/.
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors' remuneration
The Board seeks to set non-executive directors fees' at a level that enables the Company with the ability to attract and
retain non-executive directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Constitution of the Company provides that non-executive directors, other than a Managing Director or an Executive
Director, are entitled to director’s fees as determined by the Directors.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 25 November 2019, where the
shareholders approved a maximum annual aggregate remuneration of $300,000 (including superannuation).
Non-executive directors' fees consist of base fees and committee fees. The payment of committee fees recognises the
additional time commitment required by non-executive directors who serve on board committees. Directors who also Chair
the Audit and Risk Committee ('ARC') is entitled to an additional fee of $5,000 (including superannuation) per annum. The
Chair of the Board attends all committee meetings but does not receive any additional fees in connection with such role.
Non-executive directors may be reimbursed for expenses reasonably incurred in attending to the Company’s affairs. Non-
executive directors do not receive retirement benefits.
The table below sets out the non-executive directors' fees.
Board
ARC
RNC
Chair
$45,000
$5,000
Nil
Non-executive directors
$50,000
Nil
Nil
The amounts included in the above table are inclusive of superannuation.
Executive remuneration
The Company aims to reward executives based on their position and responsibility, with a level and mix of remuneration
which has both fixed and variable components.
A. Remuneration principles and strategy
In FY20 the executive remuneration framework consisted of fixed remuneration and short and long-term incentives as
outlined below. The Company aims to reward executives with a level and mix of remuneration appropriate to their position,
responsibilities and performance within the Company and aligned with market practice. Remuneration levels are
considered annually through a remuneration review, which considers market data and the performance of the Company
and the relevant individual.
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Farmaforce Limited
Directors' report
30 June 2020
B. Detail of incentive plans
Short-term incentive ('STI')
The Company operates an annual STI program available to executives and awards a cash incentive subject to the
attainment of clearly defined key performance measures.
Summary of the executive STI plan:
Who participates?
How is STI delivered?
What is the STI opportunity?
What are the performance conditions for FY20?
How is performance assessed?
Long-term incentives ('LTI')
Harry Simeonidis
Cash
Up to 20% of base salary.
Individual performance goals against annual plans (50%)
company’s year-on-year revenue growth and operating profit
(50%).
On an annual basis, after consideration of performance
against key performance indicators ('KPI').
The Company operates an LTI program via the Employee Benefits Plan ('EBP') under which Directors (and employees)
may be awarded options and performance rights to acquire shares of the Company. EBP awards are made annually in
order to align remuneration with the creation of shareholder value over the long-term.
Summary of EBP awards:
Who participates?
How is EBP delivered?
What are the performance conditions?
How is performance assessed?
When does the award vest?
How are awards treated on termination?
How are awards treated if a change of control occurs?
Do participants receive distributions or dividends on
unvested EBP awards?
All employees of the Company.
Entitlement to shares and performance rights.
Individual performance goals against annual plans.
At the end of the relevant performance period, the Company
will determine whether and to what extent the participant has
satisfied the applicable performance criteria.
Awards vest after a total of three years' continual service
following achievement of the applicable performance criteria.
The participant must be a current employee at vesting date
in order to be entitled to shares.
If a takeover bid or other offer is made to acquire some or all
of the issued shares of the Company, participants will
generally be entitled to request that all performance rights
vest immediately, regardless of whether the relevant
performance conditions have been satisfied.
Participants do not receive distributions or dividends on
unvested EBP awards.
Company performance and link to remuneration
KPIs are set annually, with a certain level of consultation with KMP. The measures are specifically tailored to the area in
which each individual is involved in and has a level of control over. The KPI’s target areas the Company believes hold
greater potential for Company expansion and profit, covering financial and non-financial as well as short-term and long-
term goals. The level set for each KPI is based on budgeted figures for the Company and respective industry standards.
Refer to the section 'Additional information' below for details of the earnings and total shareholders return for the last four
years. This information is taken into account by the Board when setting the STI and LTI for KMP.
Use of remuneration consultants
During the financial year ended 30 June 2020, the Company did not engage remuneration consultants, to review its
existing remuneration policies and provide recommendations on how to improve both the STI and LTI programs.
Voting and comments made at the Company's 2019 Annual General Meeting ('AGM')
At the 2019 AGM, 99.31% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
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Farmaforce Limited
Directors' report
30 June 2020
Details of remuneration
Amounts of remuneration
Details of the remuneration of KMP of the Company are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Others*
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
-
-
3,904
4,338
17,454
11,290
-
17,454
4,338
23,870
-
-
-
-
-
30,800
30,800
75,800
80,800
4,500
152,092
35,000
101,100
85,000
393,692
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Others*
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
-
-
-
-
-
-
-
-
-
3,904
4,338
-
-
-
-
-
-
-
45,000
50,000
-
5,000
5,000
50,000
438,341
583,341
45,662
314,007
446,427
-
48,790
48,790
-
3,000
3,000
-
41,224
41,224
4,338
26,320
38,900
2020
Non-Executive
Directors:
George Elias
Con Tsigounis
Harry
Simeonidis**
Executive
Directors:
Dr George
Syrmalis
41,096
45,662
118,848
45,662
251,268
-
-
-
-
-
*
**
This includes car allowance and FBT
Executive Director up to 31 December 2019
Short-term benefits
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
41,096
45,662
-
-
2019
Non-Executive
Directors:
George Elias
Con Tsigounis
Executive
Directors:
Dr George
Syrmalis
Harry Simeonidis
*
This includes car allowance and FBT
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Farmaforce Limited
Directors' report
30 June 2020
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
George Elias
Con Tsigounis
Harry Simeonidis
Executive Directors:
Dr George Syrmalis
Harry Simeonidis*
Fixed remuneration
2019
2020
At risk - STI
At risk - LTI
2020
2019
2020
2019
100%
100%
99%
100%
-
100%
100%
-
100%
88%
-
-
-
-
-
-
-
-
-
11%
-
-
1%
-
-
-
-
-
-
1%
*
Executive Director up to 31 December 2019
Dr George Syrmalis is employed by the parent entity of Farmaforce, The iQ Group Global Ltd (formerly iQnovate Ltd), in
the capacity of Group CEO. Dr George Syrmalis does not receive remuneration of any kind from Farmaforce Limited in his
capacity as the The iQ Group Global Ltd (formerly iQnovate Ltd) Group CEO.
Con Tsigounis is employed by the parent entity of Farmaforce, The iQ Group Global Ltd (formerly iQnovate Ltd).
The proportion of the cash bonus paid/payable or forfeited is as follows:
Name
Executive Directors:
Harry Simeonidis*
*
Executive Director up to 31 December 2019
Cash bonus paid/payable
2020
2019
Cash bonus forfeited
2019
2020
-
100%
-
-
The Company did not pay bonus during the year ended 30 June 2020. No bonus was payable at the year end.
Service agreements
Remuneration arrangements for executive KMP are formalised in employment agreements. The key terms and conditions
of executive employment agreements for the year ended 30 June 2020 are outlined below.
Dr George Syrmalis is the Company’s Chief Executive Officer and is employed by the Company’s parent entity The iQ
Group Global Ltd (formerly iQnovate Ltd). Dr George Syrmalis does not have an employment agreement with Farmaforce
Limited in his capacity as Group CEO.
Executive name:
Position:
Effective date:
Fixed annual remuneration:*
Term:
Executive notice period:
Company notice period:**
Termination payment:
Harry Simeonidis
Non-Executive Director (Executive Director up to 31 December 2019)
1 July 2019
$160,275
Ongoing
3 months
3 months
Subject to the termination benefits cap under the Corporations Act
*
**
includes base salary plus superannuation contributions
in accordance with
Fixed Annual Remuneration
Superannuation Guarantee legislation was $160,275 gross salary, plus $24,000 car allowance up until 31 December
2019.
The Company may terminate employment immediately and without notice in certain circumstances, including where
the executive has committed a serious or persistent breach of their employment agreement or where the executive
has been dishonest or fraudulent in the course of performing their duties.
12
For personal use only
Farmaforce Limited
Directors' report
30 June 2020
Share-based compensation
Issue of shares
Details of shares issued to Directors as part of compensation during the year ended 30 June 2020 are set out below:
Name
George Elias
Dr George Syrmalis
Con Tsigounis
Date
12/09/2019
12/09/2019
12/09/2019
Shares
Issue price
$
220,000
250,000
220,000
$0.14
$0.14
$0.14
30,800
30,800
35,000
The value of the shares issued during the year ended 30 June 2020 as part of the remuneration is $96,600 (2019: $nil).
Options
There were no options over ordinary shares issued to Directors as part of compensation that were outstanding as at 30
June 2020.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors in
this financial year or future reporting years are as follows:
Name
Harry Simeonidis
Harry Simeonidis
Harry Simeonidis
Grant date
27/03/2018
27/03/2019
27/03/2020
Expiry date
26/03/2021
26/03/2022
26/03/2022
Number of
rights granted
50,000
50,000
50,000
Each performance right confers the entitlement to a fully paid ordinary share after three years of employment after the first
anniversary.
The value of the performance rights granted during the year ended 30 June 2020 as part of the remuneration is $4,500
(2019: $5,000).
Additional information
The earnings of the Company for the four years to 30 June 2020 are summarised below:
Revenue
Loss after income tax
2020
$
2019
$
2018
$
2017
$
13,983,903
(1,680,056)
11,711,534
(690,174)
7,098,309
(482,828)
3,967,513
(2,307,433)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($)
Basic earnings per share (cents per share)
0.06
(1.31)
0.15
(0.54)
0.10
(0.38)
0.10
(1.81)
2020
2019
2018
2017
13
For personal use only
Farmaforce Limited
Directors' report
30 June 2020
Additional disclosures relating to KMP
Shareholding
The number of shares in the Company held during the financial year by each Director of the Company, including their
personally related parties, is set out below:
Ordinary shares
George Elias
Dr George Syrmalis
Con Tsigounis
Harry Simeonidis*
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
1,025,000
10,000
74,414
-
1,109,414
220,000
250,000
220,000
-
690,000
120,000
-
-
-
120,000
-
-
-
-
-
Balance at
the end of
the year
1,365,000
260,000
294,414
-
1,919,414
*
Harry Simeonidis, 250,000 ordinary shares are subject to shareholder approval.
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each Director of
the Company, including their personally related parties, is set out below:
Performance rights over ordinary shares
Harry Simeonidis
Balance at
the start of
the year
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year
100,000
100,000
50,000
50,000
-
-
-
-
150,000
150,000
This concludes the remuneration report, which has been audited.
Shares under option
There were no unissued ordinary shares of Farmaforce Limited under option outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Farmaforce Limited issued on the exercise of options during the year ended 30 June
2020 and up to the date of this report.
Shares under performance rights
As at 28 August 2020, 810,000 performance rights have been granted to participants as part of the Farmaforce Limited's
Employee Benefits Plan. These performance rights will vest and be issued to eligible employees contingent on satisfying a
service condition.
Shares issued on the exercise of performance rights
There were no ordinary shares of Farmaforce Limited issued on the exercise of performance rights during the year ended
30 June 2020 and up to the date of this report.
Indemnity and insurance of directors and officers
The Company has, during the financial year, paid an insurance premium in respect of an insurance policy for the benefit of
the Company and those named and referred to above including the directors, company secretaries, officers and certain
employees of the Company and related bodies corporate as defined in the insurance policy. The insurance is appropriate
pursuant to section 199B of the Corporations Act 2001.
In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy, including the
nature of the liability insured against and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
14
For personal use only
Farmaforce Limited
Directors' report
30 June 2020
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 28 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in note 28 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company,
acting as advocate for the Company or jointly sharing economic risks and rewards.
●
Officers of the Company who are former partners of BDO Audit Pty Ltd
There are no officers of the Company who are former partners of BDO Audit Pty Ltd.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
BDO Audit Pty Ltd was appointed as auditor during the year and continues in office in accordance with section 327 of the
Corporations Act 2001.
The appointment follows the resignation of BDO East Coast Partnership in accordance with section 329(5) of the
Corporation Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the Directors
___________________________
George Elias
Chair
28 August 2020
15
For personal use only
Auditor's
independence
declaration
For personal use only Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY TIM AMAN TO THE DIRECTORS OF FARMAFORCE LIMITED
As lead auditor of FarmaForce Limited for the year ended 30 June 2020, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
Tim Aman
Director
BDO Audit Pty Ltd
Sydney
28 August 2020
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
For personal use only Statement of profit
or loss and other
comprehensive income
For personal use only Farmaforce Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Revenue
Cost of sales
Gross profit
Share of losses of associates accounted for using the equity method
Other income
Interest revenue calculated using the effective interest method
Employee benefits expense
Overhead sharing cost
Depreciation and amortisation expense
Other expenses
Finance costs
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Farmaforce Limited
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
Farmaforce Limited
Note
2020
$
2019
$
5
6
7
7
7
7
8
13,983,903
(11,792,063)
11,711,534
(9,091,550)
2,191,840
2,619,984
(62,680)
663,221
26
(49,111)
-
18
(2,047,318)
(640,592)
(625,841)
(903,107)
(255,605)
(2,022,892)
(603,481)
(54,836)
(522,345)
(57,511)
(1,680,056)
(690,174)
-
-
(1,680,056)
(690,174)
-
-
(1,680,056)
(690,174)
Cents
Cents
Basic earnings per share
Diluted earnings per share
24
24
(1.31)
(1.31)
(0.54)
(0.54)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
17
For personal use only
Statement of
financial position
For personal use only Farmaforce Limited
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Term deposit
Other assets
Total current assets
Non-current assets
Trade and other receivables
Investments accounted for using the equity method
Property, plant and equipment
Right-of-use assets
Intangibles
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Employee benefits
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net liabilities
Equity
Issued capital
Reserve
Accumulated losses
Total deficiency in equity
Note
2020
$
2019
$
9
10
11
12
10
13
14
15
16
17
18
19
20
21
20
593,832
1,403,984
406,328
193,610
2,597,754
172,370
950,923
-
88,206
1,211,499
-
195,140
115,050
2,481,213
-
2,791,403
101,582
220,349
146,249
-
16,936
485,116
5,389,157
1,696,615
4,256,814
78,297
620,229
593,560
728,601
6,277,501
2,017,009
2,017,009
1,486,862
229,980
838,517
-
500,565
3,055,924
-
-
8,294,510
3,055,924
(2,905,353)
(1,359,309)
22
23
8,225,459
37,412
(11,168,224)
8,128,859
-
(9,488,168)
(2,905,353)
(1,359,309)
The above statement of financial position should be read in conjunction with the accompanying notes
18
For personal use only
Statement of
changes in
equity
For personal use only Farmaforce Limited
Statement of changes in equity
For the year ended 30 June 2020
Balance at 1 July 2018
Adoption of AASB 15 (1 July 2018)
Balance at 1 July 2018 - restated
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Balance at 30 June 2019
Balance at 1 July 2019
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Share-based payments (note 31)
Issue of shares under employee benefits plan (note 22)
Issued
capital
$
8,128,859
-
8,128,859
-
-
-
8,128,859
Issued
capital
$
8,128,859
-
-
-
Accumulated
losses
$
Total
deficiency in
equity
$
Reserve
$
-
-
-
-
-
-
-
-
-
-
-
(9,018,994)
(890,135)
221,000
221,000
(8,797,994)
(669,135)
(690,174)
-
(690,174)
-
(690,174)
(690,174)
(9,488,168)
(1,359,309)
Accumulated
losses
$
Total
deficiency in
equity
$
(9,488,168)
(1,359,309)
(1,680,056)
-
(1,680,056)
-
(1,680,056)
(1,680,056)
Reserve
$
-
96,600
37,412
-
-
-
37,412
96,600
Balance at 30 June 2020
8,225,459
37,412
(11,168,224)
(2,905,353)
The above statement of changes in equity should be read in conjunction with the accompanying notes
19
For personal use only
Statement of
cash flows
For personal use only Farmaforce Limited
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Proceeds from government grants
Net cash from/(used in) operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Investment in associates
Payment for term deposit
Net cash used in investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Net (used in)/from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Note
2020
$
2019
$
30
14
13
14,301,744
(11,818,111)
(183,132)
26
50,000
12,253,238
(13,358,539)
(10,795)
18
-
2,350,527
(1,116,078)
(46,908)
(37,471)
(406,328)
(85,552)
(41,400)
-
(490,707)
(126,952)
4,141,400
(5,283,803)
(295,955)
838,517
-
-
(1,438,358)
838,517
421,462
172,370
(404,513)
576,883
Cash and cash equivalents at the end of the financial year
9
593,832
172,370
The above statement of cash flows should be read in conjunction with the accompanying notes
20
For personal use only
Notes to the
financial
statements
For personal use only Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 1. General information
The financial statements cover Farmaforce Limited ('Farmaforce' or the 'Company') as an individual entity. The financial
statements are presented in Australian dollars, which is Farmaforce Limited's functional and presentation currency.
Farmaforce Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 9, 85 Castlereagh Street
Sydney, NSW 2000
A description of the nature of the Company's operations and its principal activities are included in the Directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 28 August 2020. The
Directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Company:
AASB 16 Leases
The Company has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier
periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease
expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results
improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For classification
within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the
lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially
change how a lessor accounts for leases.
Impact of adoption
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated. A
new lease for office space was entered into in September 2019 for which a right-of-use asset and lease liability was
recognised of $3,045,125 on 1 September 2019. In November 2019, a new lease was entered into for laptops and mobile
phones for which the low value exemption has been applied, which allows for the expense to be recognised on a straight
line basis. Since no leases existed as at 30 June 2019, there was no impact on opening accumulated losses at 1 July
2019.
21
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Interpretation 23 Uncertainty over Income Tax
The Company has adopted Interpretation 23 from 1 July 2019. The interpretation clarifies how to apply the recognition and
measurement requirements of AASB 112 'Income Taxes' in circumstances where uncertain tax treatments exists. The
interpretation requires: the Company to determine whether each uncertain tax treatment should be treated separately or
together, based on which approach better predicts the resolution of the uncertainty; the Company to consider whether it is
probable that a taxation authority will accept an uncertain tax treatment; and if the Company concludes that it is not
probable that the taxation authority will accept an uncertain tax treatment, it shall reflect the effect of uncertainty in
determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates, measuring
the tax uncertainty based on either the most likely amount or the expected value. In making the assessment it is assumed
that a taxation authority will examine amounts it has a right to examine and have full knowledge of all related information
when making those examinations. Interpretation 23 was adopted using the modified retrospective approach and as such
comparatives have not been restated. There was no impact of adoption on opening retained profits as at 1 July 2019.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
Going concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
As disclosed in the financial statements, the Company incurred a loss of $1,680,056 for the year ended 30 June 2020. As
at that date the Company had net current liabilities of $3,679,747, net liabilities of $2,905,353 and net operating cash
inflows of $2,350,527. The net loss for the period and the net current liability position do prima facie give rise to a material
uncertainty that may cast significant doubt of the Company`s ability to continue as a going concern.
However, the Directors believe that there are reasonable grounds to believe that the Company will be able to continue as a
going concern, after consideration of the following factors:
●
●
●
As reflected in the financial statements, there has been a continued trend of increasing gross margins as teams are
efficiently utilised. These higher margins are expected to be sustained;
The current liabilities include an amount payable to the parent company of $620,229. The parent company will allow
these funds to continue to be utilised by the Company as required, hence reducing the current payable component of
net liabilities to $3,059,518. The funding of this amount will be addressed by funding from increased margins,
finalising payment agreements with the Australian Taxation Office, and if required funding from external credit
facilities; and
The Company has an interest free, $4 million working capital loan facility in place with its parent entity The IQ Group
Global Ltd (formerly iQNovate Ltd). The unused balance of this facility as at 30 June 2020 was $3,379,771. The
parent company will allow these funds to continue to be utilised by the company as required.
Accordingly, the Directors believe that the Company will be able to continue as a going concern and that it is appropriate to
adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets or
liabilities that might be necessary if the company were not to operate as a going concern.
22
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Company's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Company's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Comparatives
Comparatives have been realigned where necessary, to agree with current year presentation. There was no change in the
profit or net assets.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June 2020. The
Company's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant
to the Company, are set out below.
23
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and
early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new
guidance on measurement that affects several Accounting Standards. Where the Company has relied on the existing
framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with
under the Australian Accounting Standards, the Company may need to review such policies under the revised framework.
At this time, the application of the Conceptual Framework is not expected to have a material impact on the Company's
financial statements.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events, that
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
COVID-19 pandemic
Judgement has been exercised in considering the impacts that the COVID-19 pandemic has had, or may have, on the
Company based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain, staffing and geographic regions in which the Company operates. Other than as addressed in
specific notes, there does not currently appear to be either any significant impact upon the financial statements or any
significant uncertainties with respect to events or conditions which may impact the Company unfavourably as at the
reporting date or subsequently as a result of the COVID-19 pandemic.
Income tax
The Company is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in
determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated
tax audit issues based on the Company's current understanding of the tax law. Where the final tax outcome of these
matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the
period in which such determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Company considers it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Investment in associates
The Directors have assessed whether their equity investments between 20% and 50% represent a significant influence
over those companies. In assessing significant influence, the Directors have considered the percentage ownership interest,
representation on the Board of Directors, the interchange of management personnel, and material transactions between
the entities. Primarily on ownership interest the Directors have concluded that all investments in which the Company owns
20% interest are regarded as having significant influence and have therefore been equity accounted and disclosures made
in note 13.
Note 4. Operating segments
Identification of reportable operating segments
The Company is organised into two operating segments: 1) contract sales and marketing services to external customers:
and 2) services to related parties. These operating segments are based on the internal reports that are reviewed and used
by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance
and in determining the allocation of resources. There is no aggregation of operating segments.
The information reported to the CODM is on a monthly basis.
24
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 4. Operating segments (continued)
Major customers
During the year ended 30 June 2020 approximately 74% ($10,285,071) (2019: 74% ($7,797,959)) of the Company's total
revenue was derived from sales to four (2019: four) major customers.
Operating segment information
The following segment information is provided to the CODM.
30 June 2020
Revenue
Gross profit
30 June 2019
Revenue
Gross profit
Contract
sales and
marketing
services to
external
customers
$
Services to
related parties
$
Total
13,705,552
2,191,840
278,351
-
13,983,903
2,191,840
Contract
sales and
marketing
services to
external
customers
$
Services to
related parties
$
Total
10,536,241
1,444,691
1,175,293
1,175,293
11,711,534
2,619,984
Information on segment net assets is not provided to the CODM.
Geographical information
The Company operates only in Australia.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
Note 5. Revenue
Contract sales and marketing services
Related party services
Timing of revenue recognition
All revenue is recognised over a period of time.
25
2020
$
2019
$
13,705,552
278,351
10,536,241
1,175,293
13,983,903
11,711,534
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 5. Revenue (continued)
Accounting policy for revenue
Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, the Company: identifies the
contract with a customer; identifies the performance obligations in the contract; determines the transaction price which
takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable
consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in the
form of a separate refund liability.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed
price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Note 6. Other income
Government grants
Rental recharges
Other income
2020
$
2019
$
50,000
613,221
663,221
-
-
-
Government grants
During the year the Company received payments from the Australian Government amounting to $50,000 as part of its
‘Boosting Cash Flow for Employers’ scheme in response to the COVID-19 pandemic. These non-tax amounts have been
recognised as government grants and recognised as income once there is reasonable assurance that the Company will
comply with any conditions attached.
Rental recharges
During the year the Company incurred costs relating to rent and utilities at its office location. The recharge represents cost
recoveries for the provision of the above services to related parties of the Company.
26
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 7. Expenses
Loss before income tax includes the following specific expenses:
Employee benefits expense
Wages and salaries
Compulsory superannuation contributions
Bonus
Increase in liability for annual leave (excluding increase in liability for annual leave allocated
to cost of sales)
Share-based payment expense (note 31)
Total employee benefits expense
Depreciation and amortisation
Depreciation:
Leasehold improvements
Plant and equipment
Furniture, fixtures and fittings
Right-of-use assets
Amortisation:
Website and software
Total depreciation and amortisation
Other expenses
Accounting fees
Advertising and marketing
Insurance
Legal and consultancy fees
Occupancy costs (including outgoings)
Recruitment fees
Travel and accommodation
Telephone and internet
Payroll tax
Other
Total other expenses
Finance costs
Interest and finance charges paid/payable on lease liabilities
Bank fees
Interest - other
Total finance costs
27
2020
$
2019
$
1,400,567
124,146
-
1,721,559
132,427
123,883
131,193
391,412
40,023
5,000
2,047,318
2,022,892
2,842
39,670
2,481
563,912
1,887
33,423
2,589
-
16,936
16,937
625,841
54,836
85,892
47,342
96,740
16,000
219,862
44,750
8,562
64,052
79,599
240,308
62,675
33,370
53,838
7,391
22,491
130
45,623
49,723
95,798
151,306
903,107
522,345
178,459
21,791
55,355
-
10,795
46,716
255,605
57,511
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 8. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Expenditure not allowable for income tax purposes
Fixed asset timing differences
Other timing differences
Adjustments to deferred tax liability
Deferred tax assets not brought to account
Income tax expense
2020
$
2019
$
(1,680,056)
(690,174)
(462,015)
(189,798)
194,769
(8,250)
68,965
(101,957)
308,488
111,511
(12,907)
91,299
(51,683)
51,578
-
-
Unrecognised deferred tax assets
Deferred tax assets were not recognised since utilisation of the tax losses against future taxable profits are not deemed
probable in the foreseeable future (2020: $3,624,605, 2019: $2,932,127).
Accounting policy for income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to
temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for
the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
28
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 9. Cash and cash equivalents
Current assets
Cash at bank
2020
$
2019
$
593,832
172,370
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 10. Trade and other receivables
Current assets
Trade receivables
Less: Allowance for expected credit losses
Other receivables
Non-current assets
Other receivables
2020
$
2019
$
1,403,984
-
1,403,984
731,221
(13,520)
717,701
-
233,222
1,403,984
950,923
-
101,582
1,403,984
1,052,505
Allowance for expected credit losses
The Company has recognised a loss of $nil (30 June 2019: $13,520) in profit or loss in respect of the expected credit
losses for the year ended 30 June 2020.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
2020
%
2019
%
Carrying amount
2019
$
2020
$
Allowance for expected
credit losses
2020
$
2019
$
Not overdue
30 to 60 days overdue
60 to 90 days overdue
-
-
-
-
-
-
1,376,484
27,500
-
934,878
79,841
51,306
1,403,984
1,066,025
Movements in the allowance for expected credit losses are as follows:
Opening balance
Provision recognised under AASB 9
Unused amounts reversed
Closing balance
29
-
-
-
-
13,520
-
-
13,520
2020
$
2019
$
13,520
-
(13,520)
-
13,520
-
-
13,520
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 10. Trade and other receivables (continued)
The Company has assessed that the impact of COVID-19 pandemic on its debt recovery and expected credit losses is
immaterial.
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
To measure the expected credit losses, trade receivables have been grouped by past due date. The expected loss rates
are based on the payment profiles of sales over a period of 36 months before 30 June 2020 and the corresponding
historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-
looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade
receivables are written-off when there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company,
and a failure to make contractual payments for a period of greater than 90 days past due.
Note 11. Term deposit
Current assets
Term deposit
2020
$
2019
$
406,328
-
The term deposit represents a guarantee for the lease at Level 3, 333 George Street, Sydney, NSW 2000 and matures in
November 2020.
Note 12. Other assets
Current assets
Contract assets
Prepayments
2020
$
2019
$
169,619
23,991
-
88,206
193,610
88,206
Accounting policy for contract assets
Contract assets are recognised when the Company has transferred services to the customer but where the Company is yet
to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment
purposes.
Note 13. Investments accounted for using the equity method
Non-current assets
Investment in associates
30
2020
$
2019
$
195,140
220,349
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 13. Investments accounted for using the equity method (continued)
Interests in associates
Interests in associates are accounted for using the equity method of accounting. Information relating to associates that are
material to the Company are set out below:
Name
New Frontier Holdings LLC
Nereid Enterprises Pty Ltd*
Nereid Enterprises LLC*
Principal place of business /
Country of incorporation
United States of America
Australia
United States of America
Ownership interest
2019
2020
%
%
20%
20%
20%
20%
20%
20%
*
Subsidiaries of New Frontier Holdings LLC
Percentages disclosed above are net of non-controlling interest.
Nereid Enterprises Pty Ltd provides corporate events and promotional services to the healthcare industry and related
parties of the Company.
Summarised financial information
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Loss before income tax
Other comprehensive income
Total comprehensive income
Reconciliation of the Company's carrying amount
Opening carrying amount
Share of loss after income tax
Share of other comprehensive income
Share of additional investment
Closing carrying amount
31
2020
$
2019
$
51,175
836,247
13,026
1,092,651
887,422
1,105,677
48,483
48,483
3,932
3,932
838,939
1,101,745
72,709
(374,998)
36,809
(427,848)
(302,289)
(391,039)
(11,113)
145,487
(313,402)
(245,552)
220,349
(60,458)
(2,222)
37,471
228,060
(78,208)
29,097
41,400
195,140
220,349
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 13. Investments accounted for using the equity method (continued)
Accounting policy for associates
Associates are entities over which the Company has significant influence but not control or joint control. Investments in
associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the
associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive
income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in
the Company's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of
the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from
associates reduce the carrying amount of the investment.
When the Company's share of losses in an associate equals or exceeds its interest in the associate, including any
unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate.
The Company discontinues the use of the equity method upon the loss of significant influence over the associate and
recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of
the retained investment and proceeds from disposal is recognised in profit or loss.
Note 14. Property, plant and equipment
Non-current assets
Leasehold improvements - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Furniture, fixtures and fittings - at cost
Less: Accumulated depreciation
2020
$
2019
$
60,610
(6,822)
53,788
195,284
(146,748)
48,536
24,471
(11,745)
12,726
23,595
(7,432)
16,163
231,939
(118,120)
113,819
25,969
(9,702)
16,267
115,050
146,249
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Balance at 1 July 2018
Additions
Depreciation expense
Balance at 30 June 2019
Additions
Disposals
Depreciation expense
Balance at 30 June 2020
Leasehold
improvements
$
Plant and
equipment
$
Furniture,
fixtures and
fittings
$
12,350
5,700
(1,887)
16,163
43,500
(3,033)
(2,842)
52,694
94,548
(33,423)
113,819
3,408
(29,021)
(39,670)
18,856
-
(2,589)
16,267
-
(1,060)
(2,481)
Total
$
83,900
100,248
(37,899)
146,249
46,908
(33,114)
(44,993)
53,788
48,536
12,726
115,050
32
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 14. Property, plant and equipment (continued)
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
over their expected useful lives as follows:
Leasehold improvements
Plant and equipment
Furniture, fittings and equipment
5-10 years
5-10 years
3-20 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
Company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 15. Right-of-use assets
Non-current assets
Land and buildings - right-of-use
Less: Accumulated depreciation
2020
$
2019
$
3,045,125
(563,912)
2,481,213
-
-
-
Additions to the right-of-use assets during the year were $3,045,125. Refer to note 2 - AASB 16 Leases for further details.
The Company leases office equipment under agreements of less than 4 years. These leases are either short-term or low-
value, so have been expensed as incurred and not capitalised as right-of-use assets.
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in
the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset,
and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the Company expects to obtain ownership of the leased asset at the end
of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
33
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 16. Intangibles
Non-current assets
Website and software - at cost
Less: Accumulated amortisation
2020
$
2019
$
151,995
(151,995)
151,995
(135,059)
-
16,936
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Balance at 1 July 2018
Amortisation expense
Balance at 30 June 2019
Amortisation expense
Balance at 30 June 2020
Website and
software
$
33,873
(16,937)
16,936
(16,936)
-
Accounting policy for intangible assets
Intangible assets acquired are initially recognised at cost. Indefinite life intangible assets are not amortised and are
subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less
amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of
intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible
asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of
consumption or useful life are accounted for prospectively by changing the amortisation method or period.
Website and software
Significant costs associated with the development of the revenue generating aspects of the website, including the capacity
of placing orders, are deferred and amortised on a straight-line basis over the period of their expected benefit, being their
finite life of 3 years.
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their
expected benefit, being their finite life of 3 years.
Note 17. Trade and other payables
Current liabilities
Trade payables
Related party payables
Sundry payables and accrued expenses
2020
$
2019
$
379,522
-
3,877,292
255,274
454,210
777,378
4,256,814
1,486,862
Refer to note 26 for further information on financial instruments.
At 30 June 2020, sundry payables and accrued expenses included accruals and payables amounting to $3,649,606 (2019:
$564,768) due to the Australian Tax Office.
34
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 17. Trade and other payables (continued)
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Note 18. Contract liabilities
Current liabilities
Contract liabilities
2020
$
2019
$
78,297
229,980
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of
the reporting period was $78,297 as at 30 June 2020 ($229,980 as at 30 June 2019) and is expected to be recognised as
revenue in future periods.
Accounting policy for contract liabilities
Contract liabilities represent the Company's obligation to transfer goods or services to a customer and are recognised
when a customer pays consideration, or when the Company recognises a receivable to reflect its unconditional right to
consideration (whichever is earlier) before the Company has transferred the goods or services to the customer.
Note 19. Borrowings
Current liabilities
Borrowings
2020
$
2019
$
620,229
838,517
Refer to note 26 for further information on financial instruments.
The borrowings relate to an interest free working capital loan facility in place with its parent entity, The iQ Group Global Ltd
(formerly iQnovate Ltd). The borrowings will be repaid when the Company has cash in excess of $3,000,000, subject to the
Company not being made insolvent by the repayment. The Line of Credit expires on 1 December 2024, five years from the
date of commencement.
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Total facilities
Borrowings
Used at the reporting date
Borrowings
Unused at the reporting date
Borrowings
The facility was increased to $4,000,000 on 1 December 2019.
35
2020
$
2019
$
4,000,000
2,000,000
620,229
838,517
3,379,771
1,161,483
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 19. Borrowings (continued)
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
Note 20. Lease liabilities
Current liabilities
Lease liability
Non-current liabilities
Lease liability
2020
$
2019
$
593,560
2,017,009
2,610,569
-
-
-
Refer to note 26 for further information on financial instruments.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option
is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend
on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
Note 21. Employee benefits
Current liabilities
Leave provisions
Superannuation
Payroll refund due from employees
Accounting policy for employee benefits
2020
$
2019
$
511,739
216,862
-
288,190
214,233
(1,858)
728,601
500,565
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
36
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 22. Issued capital
Ordinary shares - fully paid
128,490,980
127,800,980
8,225,459
8,128,859
2020
Shares
2019
Shares
2020
$
2019
$
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2018
127,800,980
Balance
Issue of shares under employee benefits plan
30 June 2019
12 September 2019
127,800,980
690,000
$0.14
Balance
30 June 2020
128,490,980
8,128,859
8,128,859
96,600
8,225,459
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders
should the Company be wound up, in proportions that consider both the number of shares held and the extent to which
those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited
amount of authorised capital.
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.
Share buy-back
There is no current on-market share buy-back.
Loyalty options
The Company had no loyalty options on issue exercisable at 30 June 2020 and 30 June 2019, as the loyalty options
outstanding at 20 cents each between 24 to 36 months after the date of admission of the Company’s shares to the Official
List of the ASX, being 23 October 2015 had expired on 23 October 2018.
Capital risk management
Management control the capital of the Company in order to maintain a good debt to equity ratio, provide the shareholders
with adequate returns and to ensure that the Company can fund its operations and continue as a going concern.
The Company’s debt and capital include ordinary share capital and financial liabilities, supported by financial assets. There
are no externally imposed capital requirements.
The capital risk management policy remains unchanged from the 2019 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity.
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.
Note 23. Reserve
Share-based payments reserve
2020
$
2019
$
37,412
-
37
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 23. Reserve (continued)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration.
Movements in reserve
Movements in reserve during the current and previous financial year is set out below:
Balance at 1 July 2018
Balance at 30 June 2019
Share-based payments
Balance at 30 June 2020
Note 24. Earnings per share
Share-based
payments
$
-
-
37,412
37,412
The calculation of basic earnings per share has been based on the following loss attributable to ordinary shareholders and
weighted average number of ordinary shares outstanding.
2020
$
2019
$
Loss after income tax attributable to the owners of Farmaforce Limited
(1,680,056)
(690,174)
Weighted average number of ordinary shares used in calculating basic earnings per share
128,353,267
127,800,980
Weighted average number of ordinary shares used in calculating diluted earnings per share
128,353,267
127,800,980
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(1.31)
(1.31)
(0.54)
(0.54)
Basic earnings per share is calculated as earnings for the period attributable to the Company over the weighted average
number of shares.
As at 30 June 2020 and 2019, there were no performance rights over ordinary shares excluded from the calculation of the
weighted average number of ordinary shares used in calculating diluted earnings per share due to being anti-dilutive in
nature.
Note 25. Dividends
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Accounting policy for dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.
38
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 26. Financial instruments
Financial risk management objectives
The Company's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and
interest rate risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
Company.
The Company's policy is not to trade in or use derivatives to hedge its risks.
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Board of Directors has established the Audit and Risk Committee, which is responsible for
developing and monitoring the Company’s risk management policies. The committee reports to the Board of Directors on
its activities.
The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment
in which all workplace participants understand their roles and obligations.
The Company’s Board of Directors has also established a Finance Committee, consisting of senior executives of the
Company, which meets on a regular basis to analyse financial risk exposure and to evaluate treasury management
strategies in the context of the most recent economic conditions and forecasts. The Finance Committee’s overall risk
management strategy seeks to assist the Company in meeting its financial targets, whilst minimising potential adverse
effects on financial performance. The Finance Committee operates under policies approved by the Board of Directors.
Market risk
Foreign currency risk
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency.
The Company does not have any foreign currency risk as it does not have any future commercial transactions and
recognised financial assets and financial liabilities denominated in a currency other than its functional currency.
Price risk
The Company is not exposed to any significant price risk.
Interest rate risk
At the reporting date, the Company had no interest bearing financial liabilities other than the amount payable to Australian
Tax Office ('ATO').
Cash at banks earns interest at floating rates based on daily bank deposit rates.
No sensitivity analysis has been performed for the exposure to interest rate risk on the Company's bank balance as the
exposure is not significant.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount,
net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements. The Company does not hold any collateral.
The Company has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables
through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the Company based on recent sales experience, historical collection rates and
forward-looking information that is available.
39
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 26. Financial instruments (continued)
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Trade and other receivables
Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality. Refer to note
10 for commentary on trade and other receivables.
Cash and cash equivalents
The Company held cash and cash equivalents of $593,832 at 30 June 2020 (2019: $172,370). The cash and cash
equivalents are held with bank and financial institution counterparties, which are rated AA- to AA+, based on rating agency
Standard and Poor’s ratings.
Liquidity risk
Vigilant liquidity risk management requires the Company to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Company manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Refer to note 19 for unused financing arrangements.
Remaining contractual maturities
The following tables detail the Company's remaining contractual maturity for its financial instrument liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid.
2020
Non-derivatives
Non-interest bearing
Trade and other payables
Borrowings
Interest-bearing - fixed
Payable to ATO
Lease liability
Total non-derivatives
2019
Non-derivatives
Non-interest bearing
Trade and other payables
Borrowings
Total non-derivatives
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
-
-
607,208
620,229
-
-
-
-
8.08%
7.50%
3,649,606
593,560
5,470,603
-
678,716
678,716
-
1,338,293
1,338,293
-
-
-
-
-
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
607,208
620,229
3,649,606
2,610,569
7,487,612
Remaining
contractual
maturities
$
-
-
1,486,862
838,517
2,325,379
-
-
-
-
-
-
-
-
-
1,486,862
838,517
2,325,379
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
40
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 27. Key management personnel disclosures
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Company is set
out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Note 28. Remuneration of auditors
2020
$
2019
$
268,722
23,870
101,100
539,441
38,900
5,000
393,692
583,341
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of
the Company, and unrelated firms:
Audit services - BDO* and related network firms
Audit or review of the financial statements
Other services - BDO* and related network firms
Taxation services
Audit services - unrelated firms
Audit or review of the financial statements
2020
$
2019
$
80,000
34,000
27,700
-
107,700
34,000
-
8,000
*
The BDO entity performing the audit of the Company transitioned from BDO East Coast Partnership to BDO Audit Pty
Ltd on 1 August 2020. The disclosures include amounts received or due and receivable by BDO East Coast
Partnership, BDO Audit Pty Ltd and their respective related entities.
Note 29. Related party transactions
Parent entity
The parent entity is The iQ Group Global Ltd (formerly iQnovate Ltd) (the 'parent entity') which is incorporated in Australia
and owns 69.892% of the Company.
Key Management Personnel ('KMP')
Dr George Syrmalis is the Group CEO and a substantial shareholder of the parent entity. Mr Con Tsigounis is a Non-
Executive Director and substantial shareholder of the parent entity.
Associates
Interests in associates are set out in note 13.
Other related parties
Other related parties include the following:
41
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 29. Related party transactions (continued)
Related party
iQX Limited
iQ3Corp Ltd
Life Science Biosensor Diagnostics Pty Ltd
Clinical Research Corporation Pty Ltd
GBS Inc
Relationship
Jointly controlled by KMP
Jointly controlled by KMP
Subsidiary of parent
Subsidiary of parent
Subsidiary of parent
Key management personnel
Disclosures relating to key management personnel are set out in note 27 and the remuneration report included in the
Directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Revenue:
Consulting fees charged to parent entity
Consulting fees charged to other related parties
Other income:
Rental recharges
Expenses
Office and shared services costs paid to parent entity
Office and shared services costs paid to other related parties
2020
$
2019
$
-
278,351
1,080,000
95,292
613,221
-
230,891
409,701
195,210
408,271
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Current payables:
Trade payable amounts owing to parent entity
Trade payable amounts owing to other related parties
2020
$
2019
$
-
-
251,365
202,845
At 30 June 2020, trade payable amounts owing to related parties have been grouped with the working capital facility.
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Current borrowings:
Loan facility amount owing to parent entity*
2020
$
2019
$
620,229
838,517
*
At 30 June 2020, the Company has an interest free, $4,000,000 (2019: $2,000,000) working capital loan in place with
the parent entity.
The facility was increased to $4,000,000 on 1 December 2019.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates except where stated
otherwise.
42
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 30. Cash flow information
Reconciliation of loss after income tax to net cash from/(used in) operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share of loss - associates
Impact of AASB15 'Revenue from contracts with customers'
Interest non-cash
Share-based payments
Write-off of non-current assets
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
Decrease/(increase) in other operating assets
Increase in trade and other payables
Increase in employee benefits
Decrease in other provisions
Increase in other operating liabilities
Net cash from/(used in) operating activities
Note 31. Share-based payments
2020
$
2019
$
(1,680,056)
(690,174)
625,841
62,680
-
178,461
391,412
25,025
54,835
49,111
221,000
-
5,000
-
(686,283)
127,818
3,222,589
228,035
(151,683)
6,688
298,689
(196,438)
34,748
221,126
(1,143,073)
29,098
2,350,527
(1,116,078)
Shares issued
The Company issued 690,000 shares at $0.14 per share under the Employee Benefits Plan. The share-based payment
expense recognised during the year ended 30 June 2020 was $96,600 (2019: $nil).
Performance rights
The share-based payment expense recognised during the year ended 30 June 2020 was $391,412 (2019: $5,000). The
share-based payment expense recognised includes GBS Inc. shares awarded to staff from GBS Inc. (a related party of the
Company) for an amount of $258,000.
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, options or performance rights over shares, that are provided to
employees in exchange for the rendering of services.
These compensation benefits are provided to employees via the Employee Benefits Plan ('EBP'), unless otherwise stated.
Under the EBP directors and employees may be awarded options and performance rights to acquire shares of the
Company. The object of the EBP is to help the Company recruit, reward, retain and motivate its directors and employees.
Further under the EBP, after 12 months of service an employee will annually receive a lot of shares based on an agreed
quantity per their individual employment contract. The shares granted under the EBP will vest after an employee has
served a further 3 years after receiving rights to the shares.
The fair value of equity-settled share-based payments is recognised as an expense proportionally over the vesting period
with a corresponding increase in equity. The fair value of instruments is calculated under the grant date model where the
Company measures the fair value of a share-based payment award issued to an employee on the grant date and
recognised over the period during which the employees become unconditionally entitled to shares.
The fair value is calculated at grant date as the fair value of each share granted multiplied by the number of shares
expected to eventually vest. There is a service condition (non-market vesting condition) which is taken into account by
adjusting the number of shares which will eventually vest and are not taken into account in the determination of the grant
date fair value.
43
For personal use only
Farmaforce Limited
Notes to the financial statements
30 June 2020
Note 32. Events after the reporting period
The Company successfully applied for the Australian Government’s JobKeeper program and was eligible on 4 August 2020
with payments effective 1 July 2020. The JobKeeper payment applied to a proportion of the Company’s employees for total
payments of approximately $750,000 over the first three months in FY21.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect
the Company's operations, the results of those operations, or the Company's state of affairs in future financial years.
44
For personal use only
Directors'
declaration
For personal use only Farmaforce Limited
Directors' declaration
30 June 2020
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the Company's financial position as at 30 June
2020 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
George Elias
Chair
28 August 2020
45
For personal use only
Independent
auditor's report to
the members of
Farmaforce Limited
For personal use only Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of FarmaForce Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of FarmaForce Limited (the Company), which comprises the
statement of financial position as at 30 June 2020, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the
year then ended, and notes to the financial report, including a summary of significant accounting
policies, and the directors’ declaration.
In our opinion the accompanying financial report of FarmaForce Limited, is in accordance with the
Corporations Act 2001, including:
(i)
Giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Company in accordance with the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the
Company’s ability to continue as a going concern and therefore the Company may be unable to realise
its assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
46
For personal use only Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Revenue recognition
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 5, the Company recognised revenue
We have evaluated revenue recognition in accordance
of $13,983,903 for the year ended 30 June 2020.
with AASB 15: Revenue from Contracts with
The recognition of revenue was considered as a key
Customers.
audit matter as it is a key performance indicator to the
Our procedures, included, amongst others:
users of the financials; and there is a key judgement
(cid:127)
Evaluating the revenue recognition policies
surrounding the determination of performance
for all material sources of revenue and from
obligations in accordance with AASB 15: Revenue from
our detailed testing performed below,
Contracts with Customers.
ensured that revenue was being recognised
appropriately, in line with Australian
Accounting Standards and policies disclosed
within Note 5;
(cid:127)
Performing cut-off procedures in relation to
revenue transactions immediately prior to
and subsequent to the year-end, to ensure
items have been recorded in the correct
period;
(cid:127)
Performing detailed analytical procedures to
establish expectations for revenue and gross
margins on an annual basis, and comparing
those expectations to actual results;
(cid:127)
Recalculating discounts provided to
customers during the period and ensuring
these were recognised appropriately
throughout the contract;
(cid:127)
Substantively testing a sample of revenue
transactions throughout the financial year;
and
(cid:127)
Reviewing the monthly shared labour charge-
through and verifying completeness and
accuracy by testing the underlying inputs.
47
For personal use only Other information
The directors are responsible for the other information. The other information comprises the
information in the Company’s annual report for the year ended 30 June 2020, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
48
For personal use only Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2020.
In our opinion, the Remuneration Report of FarmaForce Limited, for the year ended 30 June 2020,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Tim Aman
Director
Sydney, 28 August 2020
49
For personal use only Shareholder
information
For personal use only Farmaforce Limited
Shareholder information
30 June 2020
The shareholder information set out below was applicable as at 12 August 2020.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Number
of holders
of ordinary
shares
8
11
130
157
90
396
129
The number of shareholders holding less than a marketable parcel of ordinary shares is based on Farmaforce Limited's
closing share price of $0.052 on 12 August 2020.
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Number held
% of total
shares
issued
90,000,000
2,775,000
1,333,333
1,275,009
1,040,000
1,000,000
930,000
815,000
812,290
750,000
675,000
667,000
603,920
600,000
552,146
520,414
500,000
500,000
500,000
462,674
106,311,786
69.89
2.15
1.04
0.99
0.81
0.78
0.72
0.63
0.63
0.58
0.52
0.52
0.47
0.47
0.43
0.40
0.39
0.39
0.39
0.36
82.56
The iQ Group Global Ltd (formerly iQnovate Ltd)
Priority One Group Pty Ltd (The Utopia Investment A/C)
Basim Finance Pty Ltd
iQ3 Corp Ltd
Elinvest Pty Limited (The Elias Family A/C)
Colin J. Odams Pty Ltd (The Rangoon A/C)
Achelles Nominees Pty Ltd (Achelles Super Fund A/C)
Sherwood Pastoral Limited
Mr James Simos & Mrs Christina Simos (Simos Super Fund A/C)
Jennifer Ellen Stapleton
Bartelm Pty Ltd (Precision Auto Ser Pl Sf Ac)
HSBC Custody Nominees (Australia) Limited
Pharmlou Pty Ltd (Super Fund A/C)
Lien Pty Ltd (Neil Pension Fund A/C)
Mr John Franze & Mrs Soula Franze
Bladlajn Pty Ltd (Savor Family A/C)
SI JIA Corp Pty Ltd
Wade Peter Burns & Rebecca Louise Burns
Daniel Morato & Sally Morato (Morato Family A/C)
Mr Ian Macewen Stevenson & Ms Katherine Jane Hynes
50
For personal use only
Farmaforce Limited
Shareholder information
30 June 2020
Unquoted equity securities
Performance rights over ordinary shares issued
Substantial holders
Substantial holders in the Company are set out below:
The iQ Group Global Ltd (formerly iQnovate Ltd)
Voting rights
The voting rights attached to ordinary shares are set out below:
Number
on issue
Number
of holders
810,000
9
Ordinary shares
Number held
% of total
shares
issued
90,000,000
69.89
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.
On-market buy-back
There is no current on market buy-back.
There are no other classes of equity securities.
Restricted securities and securities subject to voluntary escrow.
There are no restricted securities and securities subject to voluntary escrow on 12 August 2020.
51
For personal use only
Contact
farmaforce.com.au
Level 3, 333 George Street,
Sydney, NSW 2000, Australia
+61 2 8239 5400
info@farmaforce.com.au
For personal use only