Annual
REPORT
20
CONTENTS
1. Corporate Directory ......................................................................................................................... 1
2. CEO Operations Report .................................................................................................................... 2
3. Corporate Governance Statement ................................................................................................. 10
4. Directors Report ............................................................................................................................. 11
5. Auditor’s Independence Declaration ............................................................................................. 26
6.
7.
8.
9.
Statement Of Profit Or Loss And Other Comprehensive Income .................................................. 27
Statement Of Financial Position .................................................................................................... 28
Statement Of Changes In Equity .................................................................................................... 30
Statement Of Cash Flow ................................................................................................................ 31
10. Notes To The Financial Statement ................................................................................................ 32
11. Directors’ Declaration .................................................................................................................... 79
12. Independent Auditor's Report To The Members Of Global Health Limited ................................. 80
13. Additional Information for Listed Public Companies .................................................................... 85
0 | P a g e
A n n u a l R e p o r t
1. CORPORATE DIRECTORY
DIRECTORS
Steven Leigh Pynt - Non-Executive Chairman
Mathew Cherian - Chief Executive Officer and Managing Director
Grant Smith - Non-Executive Director
Robert Knowles AO - Non-Executive Director
COMPANY SECRETARY
Sam Butcher
REGISTERED OFFICE
Level 2, 607 Bourke Street
Melbourne, Victoria 3000
Australia
Ph: +61 3 9675 0600
PRINCIPAL PLACE OF BUSINESS
Level 2, 607 Bourke Street
Melbourne, Victoria 3000
Australia
Ph: +61 3 9675 0600
SHARE REGISTER
Link Market Services Limited
Tower 4, 727 Collins Street
Melbourne Victoria 3008
Australia
Ph: 1300 554 474
AUDITOR
HLB Mann Judd
Level 9/575 Bourke Street
Melbourne Victoria 3008
STOCK EXCHANGE LISTING
Global Health Limited shares are listed on the Australian Securities Exchange (ASX code: GLH)
WEBSITE
http://www.global-health.com
1 | P a g e
A n n u a l R e p o r t
2. CEO OPERATIONS REPORT
Key Highlights
✓ Total Customer Revenue and Other Income up 13% to $6,255,668
✓ Total Customer Revenue up 9% to $5,969,377
✓ Operating Expenses down 6% to $5,766,181
✓ EBITDA up 180% from ($610,227) to $489,487
✓ Net Loss reduced by 95% from ($1,296,793) to ($60,128)
✓ Customer Recurring Revenue up 14% to $4,179,408
✓ Total Debt reduced by $534,432 from $1,165,641 to $631,209
COVID-19 Impact - Embracing the Digital Age for Healthcare
The financial year to 30-June 2020 was dominated by the COVID 19 pandemic which has impacted
everyone.
Global Health has been able to adjust well to these challenges.
Our staff have adapted to working from home very effectively, maintaining a high level of
responsiveness and service levels to our customers.
In many ways the COVID 19 pandemic has accelerated the adoption of remote and virtual care
engagement models by healthcare providers.
For shareholders Global Health has continued to build its platforms and increase its customer-based
revenue.
Over the 12 months to 30-Jun 2020, I am pleased to announce a strong financial result and
significant momentum in demand for the Company’s software platforms. These are further
described in the sections below.
2 | P a g e
A n n u a l R e p o r t
2.1
FINANCIAL PERFORMANCE
The Company has continued a positive trend across key financial indicators.
Total customer revenue increased by $494,393 (+9%) to $5,969,377 with operating expenses
reducing by $368,824 (down 6%) to $5,766,181.
Key Financial Indicators
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
(1,000,000)
(2,000,000)
FY19
FY20
Customer
Revenue
5,475,024
5,969,377
Operating
Expenses
6,135,005
5,766,181
EBITDA
(610,227)
489,487
EBIT
Net Loss
(833,406)
(131,784)
(1,296,793)
(60,128)
This resulted in significant margin improvements with a $1,099,713 (+180%) improvement in EBITDA
resulting in an EBITDA margin of $489,486 (8%) for the reporting period.
The bottom line was a $1,236,665 (+96%) reduction in the Company’s Net Loss to ($60,128).
Earnings Per Share (EPS) was reduced to a loss of 0.15 cents per share which was a 96% reduction
from a loss of 3.86 cents per share in the prior year.
Steady Growth in Recurring Revenue
Pleasingly, recurring revenue from customers increased by 14% (+$523,151) to $4,179,408.
However, revenue from professional services was reduced by 44% (-$747K) to $965,317 due to the
postponement of a number of contracted implementations of our software resulting from the
COVID-19 restrictions imposed from March 2020.
3 | P a g e
A n n u a l R e p o r t
Revenue and Income
FY 2019
FY 2020
$ Delta
% Delta
Software Subscriptions
3,273,347
3,612,263
338,916 10%
Expansion & additional usage fees
382,910
567,145
184,235 48%
Total Recurring Revenue
3,656,257
4,179,408
523,151 14%
Professional services
1,712,194
965,317
- 746,877
-44%
Other Product Revenue
106,573
824,652
718,079 674%
Other Customer Revenue
1,818,767
1,789,969 -28, 798
-2%
Total Customer Revenue
5,475,024
5,969,377
494,353 9%
Other income
37,587
280,000
242,413 645%
Finance income
12,167
6,291
-5,876
-48%
Other Income
49,754
286,291
236,537 475%
Total revenue and income
5,524,778
6,255,668
730,890 13%
Other Product Revenue included $600K from SA Health’s extension of the licence to the
Company’s CHIRON PAS software on an “as-is-where-is” basis across country SA public hospitals
for a further 12 months.
Other Income included the government’s Job Keeper and Cashflow Boost stimulus measures.
4 | P a g e
A n n u a l R e p o r t
2.2
FINANCIAL POSITION
Prior to 1 July 2018, the Company’s practice was to charge new (non-SaaS) customers an Initial
Licence Fee (ILF) which was recognised in full in the period when the customer commenced usage.
This better matched the period in which Customer Acquisition Costs and initial provisioning costs
were incurred.
Annual Licence Fees (ALF) renewals were issued twelve months from go-live and proportionately
recognised each month.
A new accounting standard (AASB-15) came into effect on 1 July 2018 whereby ILFs were required to
be recognised over the typical useful life of the software. The useful life the Company’s software is
deemed to be 60 months.
By way of example, if a new customer pays an ILF of $12,000 and commences usage in May-20, then
1/60 or $200 is recognised in each of May-20 and June-20 with the remaining $11,600 recorded as a
Contract Liability on the Balance Sheet.
The accounting adjustments to the new standard was first applied to the Company’s accounts from 1
July 2018 which included ILFs prior to 1-Jul 2018 where appropriate.
The effect was a significant increase in Contracted Liabilities which resulted in the Company
reporting a negative Net Asset position as at 30-June 2019.
Successful Rights Issue raises $1,010,368
A Rights issue was completed in November 2019 raising just over $1M to improve the Company’s
Net Assets position. Total Debt was reduced by $534,432 from $1,165,641 in Jun-19 to $631,209 as
at Jun-20.
The combination of these has resulted in Net Assets improving from a deficit of ($725,217) as at 30
June 2019 to a positive Net Assets position of $269,192 as at 30 June 2020.
The Company is progressively transitioning customers from subscriptions annually or quarterly in
advance to monthly subscriptions, which will further improve the Net Assets position.
The Company’s Net Liquidity improved by $1,380,076 over the 12 months from ($1,106,129) to
$273,947.
5 | P a g e
A n n u a l R e p o r t
2019
2020
Cash & cash equivalents
$803,990
$666,276
Trade and Other Receivables
$436,125
$1,208,968
Quick Assets
$1,240,115
$1,875,244
Trade and Other Payables
$1,786,261
$1,059,512
S/T Borrowings & Lease liabilities
$559,983
$541,785
Short Term Obligations
$2,346,244
$1,601,297
Net Liquidity
($1,106,129)
$273,947
On-going Innovation
Continuous investment in Research & Development is crucial in the technology business.
The Company’s R&D roadmap for “Streamlining the Patient Journey” comprises four SaaS platforms
that are collectively referred to as “Connected Health Records” (CHR).
The goal of CHR is to deliver improved productivity and efficiency for healthcare organisations,
streamlining the patient’s journey through the healthcare system, and improving patient outcomes
through more collaboration and connectivity between patients and their care teams.
Over the reporting period, capitalised R&D reduced from approximately $960K to $698K which was
27% less than the prior year.
Purchase of Intangibles
$1,848,829
$959,880
$698,068
Amortisation
$132,778
$190,329
$402,124
FY18
FY19
FY20
6 | P a g e
A n n u a l R e p o r t
2.3 OUR OPERATIONS
The Company is progressively transitioning our software assets from a client/server deployment
model to “mobile-first” Software as a Service (SaaS) platforms supporting our vision of a patient-
centric, and connected healthcare eco-system accessible anywhere, anytime and on any device.
The Company’s SaaS platforms are in early commercialisation with early adopters helping shape the
solutions for maximum market adoption. Our Connected Health Records SaaS portfolio comprises:
- MasterCarePlus (https://www.mastercare.net.au/mastercare-plus/) provider platform for
healthcare delivery organisations and clinicians;
- ReferralNet (www.referralnet.com.au) Secure Messaging platform for secure, reliable and
trusted connectivity across the healthcare sector;
-
Lifecard Personal Health Record (www.lifecard.com) for healthcare consumers to better
manage their health and wellness, and,
- HotHealth Patient Relationship platform (www.hothealth.com) for healthcare delivery
organisations to engage online with their patients.
In the second half of the year, the operating structure was streamlined around functional groups
with staff re-organised into a single Customer Success Group and a single Product Portfolio Group.
The re-structure enhances the ability to provide our customers with a more integrated support
capability across the patient journey and our CHR SaaS portfolio.
The single product portfolio group will encourage greater integration across our existing software
assets and our CHR SaaS portfolio. This will deliver a more seamless patient journey and improved
business efficiencies to support the needs of healthcare delivery organisations, clinicians,
connectivity and consumers.
Provider Platforms
Our mission to provide better outcomes for patients living with long-term or chronic disease requires
platforms that support healthcare delivery anywhere, anytime and on any device – in hospitals,
community health settings, primary care practices and at home.
MasterCare and PrimaryClinic are our brands that provide solutions for healthcare delivery
organisations and clinicians.
MasterCare is designed for enterprise customers with between 10 and 1000 clinicians while
PrimaryClinic is typically used by smaller GP, Specialist and Allied Health practices.
New contracts in the reporting period include the following:
7 | P a g e
A n n u a l R e p o r t
• MasterCare PAS was selected for the private campus at the Royal Rehab Private hospital
which is the preeminent provider of rehabilitation and disability support services in Sydney.
The application is hosted and managed by Global Health’s Altitude Managed Cloud Service.
The implementation includes Global Health’s e-Switch Integration broker used to integrate
with NSW Health’s Cerner EMR deployed at the public campus at Royal Rehab.
• MasterCare Client Management and Electronic Medical Record (EMR) was deployed for an
estimated 250 clinicians at the Sunraysia Community Health Services in Mildura. The
deployment included additional applications and services from the Company such as e-
Switch for integration to other applications used at Sunraysia, ReferralNet for connectivity
across the wider clinician community, PrimaryClinic for General Practice and the MasterCare
Data Warehouse for meaningful insights into the efficacy of the business and treatment
protocols.
• MasterCare EMR was deployed at Orygen Youth Health in Parkville, Melbourne hosted at the
Company’s Altitude Managed Cloud Service.
• MasterCare EMR was deployed at Monash Health in Melbourne with the Company’s e-
Switch Integration broker used to integrate with the Cerner clinical system used in the acute
facilities.
MasterCare for delivery organisations providing Mental Health services now represents over 45% of
the Company’s revenue with demand continuing to increase as Mental Health fast becomes the
major area of focus of healthcare systems in Australia and globally.
The projects above were secured and deployed before the COVID restrictions.
Since March 2020, the Company has also been contracted for additional deployments worth more
than $1 million in the initial 12 months however the go-live date, associated recurring subscriptions
and deployment services have been delayed beyond the current restriction period with go-live now
forecast between Dec-20 and June-21.
Connectivity Platforms
The Company’s Connectivity platforms comprise the ReferralNet Secure Messaging platform for
sharing information across healthcare enterprises and e-Switch for integration of disparate
applications within an enterprise.
These connectivity platforms are embedded in almost all the deployments of our MasterCare and
PrimaryClinic platforms.
ReferralNet is also integrated to over twenty 3rd party clinical systems and deployed in these 3rd
Party customer sites to support the broader goal of a connected healthcare eco-system.
8 | P a g e
A n n u a l R e p o r t
In practical terms, the Company’s ReferralNet and Telstra Health’s Argus Connect are the only two
interoperable Secure Messaging platforms in Australia. This extends the effective ReferralNet reach
for our customers to the majority of healthcare delivery organisations across Australia.
In February 2020, the Company executed a partnership agreement with Best Practice to promote
ReferralNet to the Best Practice customer base. Best Practice is Australia’s leading primary care
clinical application with over 50% market share.
The Company is optimistic that the partnership will further drive the volume of documents digitally
exchanged between provider organisations.
Consumer Platforms
COVID-19 has generated increased demand for virtual care and contactless engagement.
This has resulted in increased demand for the Company’s Lifecard Patient Portal which is based on
the Company’s Lifecard Personal electronic Health Record (eHR) platform.
Lifecard Patient Portal was deployed in three early adopter hospital sites and multiple mental health
service organisations.
Since COVID-19, a further nine other MasterCare sites are in the process of deploying our Lifecard
Patient Portal for engagement with their patients.
The Company renewed our partnership with Diabetes Victoria for the promotion of our Lifecard
Personal eHR which combined with Lifecard Patient Portal has resulted in Lifecard users increasing
by approximately 5K per month.
Lifecard Personal eHR is central to the Company’s goal of patient empowerment. Tighter integration
to our MasterCare and PrimaryClinic platforms is underway to increase our Lifecard user base over
the next few years.
The other key platform for consumer engagement is the Company’s HotHealth Patient Relationship
platform pitched as a “digital doorway” for provider organisations to engage with their patients
online.
HotHealth is rich with virtual care and engagement features including online forms, embedded
secure messaging, online appointments, discussion forums, chat groups, event management,
communities of common interest, video-conferencing, Lifecard access and a web-store.
HotHealth is priced to be affordable with the bulk of features “metered” in a pay-as-you-use
business model. With COVID-19 restrictions such as social distancing in place, the Company is
experiencing much increased interest in HotHealth.
9 | P a g e
A n n u a l R e p o r t
Sales and Marketing
In early March, the Company established a dedicated Sales team based in Sydney to meet the
growing demand for our enterprise systems particularly from organisations involved in managing
Mental illness and other long-term conditions such as diabetes, asthma and cardiovascular disease.
Much of the Company’s existing customers are located outside New South Wales and Queensland.
The establishment of a sales team in Sydney is to increase our customer base in these states.
2.4
FORWARD OUTLOOK
Demand for disruption in healthcare remains strong in all markets with a big focus on digital
transition in the marketplace. It has been the Company’s strategy to support a patient-centric
healthcare eco-system that enables healthcare providers and their patients to actively engage with
each other irrespective of the prevailing operating conditions.
Covid-19 has sharpened and focussed our commitment and attention to see the healthcare system
operate as efficiently and seamlessly as possible.
The cost of healthcare services has created enormous pressure on healthcare providers and
consumers. Global Health’s consumer platforms enable individuals to become actively involved with
their own healthcare management in the digital age. We see this as an area of significant growth as
the “age of chronic disease” impacts on the delivery of healthcare services. The Company’s
involvement with Diabetes Victoria is a very good example of this. During the next few years, we
expect consumer involvement in the management of individual healthcare and chronic conditions to
increase significantly.
The impact of Covid-19 has seen substantial funds become available for mental health, chronic
diseases, telehealth and general practice. The Company is very well established and well positioned
in these areas. Healthcare providers are seeking solutions that improve the productivity and
efficiencies of their operations.
Our website: https://www.global-health.com/ sets out the comprehensive range of innovative
healthcare platforms we provide across the various segments of the healthcare sector.
3. CORPORATE GOVERNANCE STATEMENT
The 2020 corporate governance statement is dated as at 30 June 2020 and reflects the corporate
governance practices in place throughout the 2020 financial year. The 2020 corporate governance
statement was approved by the Board on 25 August 2020. A description of the Group's current
corporate governance practices is set out in the Group's corporate governance statement which can
be viewed at https://www.global-health.com/our-approach/governance/ and should be read in
conjunction with the recent Company announcements on the ASX website.
10 | P a g e
A n n u a l R e p o r t
4. DIRECTORS REPORT
The directors present their report, together with the consolidated financial statements of the Group,
being Global Health Limited (the Company) and its controlled entities, for the financial year ended 30
June 2020.
INFORMATION ON DIRECTORS
Steven Leigh Pynt
Qualifications
Experience
Interest in shares and
options
Special responsibilities
Other current directorships
in listed entities
Other directorships in listed
entities held in the previous
three years
Mathew Cherian
Qualifications
Experience
Interest in shares and
options
LLB, BBus, MBA, MTax
He is a Director of the Perth legal firm, MP Commercial Lawyers, and his
main area of practice is in commercial law including corporations' law,
franchising and contracts. He was formerly a member of the Racing
Penalties Appeals Tribunal and Chairman of the Commercial Tribunal of
WA.
375,408 ordinary shares; 59,001 options
Independent Non-Executive Chairman; Member of Audit Committee
Gondwana Resources Limited
Ephraim Resources Limited
BBus (IS/IT), MACS, MAICD
Mr Cherian has been in the information technology industry since 1981. In
1985, he established Working Systems Pty Ltd in Perth, Western Australia.
Mr Cherian was appointed CEO of Working Systems Solutions Limited in
January 2002 to re-focus the Group as a software product developer for
the Healthcare sector. The initial phase culminated with the re-branding of
the Company as Global Health Limited in December 2007. Mr Cherian
plays an active role in product strategy and the development of overseas
markets for the Company.
23,376,619 ordinary shares; 2,378,625 options
Special responsibilities
Chief Executive Officer and Managing Director
Other current directorships
in listed entities
Other directorships in listed
entities held in the previous
three years
None
None
11 | P a g e
A n n u a l R e p o r t
Grant Smith
Qualifications
Experience
Interest in shares and
options
Special responsibilities
Other current directorships
in listed entities
Other directorships in listed
entities held in the previous
three years
Robert Knowles AO
Qualifications
Experience
Interest in shares and
options
Special responsibilities
Other current directorships
in listed entities
Other directorships in listed
entities held in the previous
three years
BComm, AAIM, ASIA
Mr Smith has worked in insurance, superannuation, investment and funds
management for over 40 years. He started with National Mutual (now AMP) in the
investments division and was responsible for the establishment of the funds
management business for National Mutual.
In 1984, he established an independent funds management group and floated
Hospitals of Australia the first healthcare investment fund in Australia. Hospitals of
Australia owned and operated a number of hospitals throughout Australia.
Mr Smith was intimately involved in the building of a number of hospitals including
Strathfield Private, Southern Highlands Private Hospital, Port Macquarie Hospital and
the refurbishment of a number of other healthcare facilities. Hospitals of Australia was
ultimately acquired by Mayne Nickless Limited. In the past 15 years, Mr Smith
developed and built the Medica Centre and opened the first digital (paperless) private
surgical hospital in Australia. He is currently involved in developing new hospitals in
Melbourne. Mr Smith is also involved in utilising digital technology to generate
increased productivity and efficiencies for the Healthcare sector.
424,481 ordinary shares; 62,241 options
Independent Non-Executive Director; Chairman of the Audit Committee
None
None
MAICD
Mr Knowles is a farmer and company director. He is a director of the Silver Chain
Group of Companies, IPG Pty Ltd, Drinkwise Australia Ltd and Beyond Blue Ltd.
He is Chair of the Royal Children's Hospital. Mr Knowles was Victorian Minister for
Health from 1996 until 1999 and as a member of the Victorian Legislative Council from
1976 to 1999. He has also served as Chairman of Food Standards Australia and New
Zealand, as a Commissioner with the National Mental Health Commission, and as an
Aged Care Complaints Commissioner.
66,234 ordinary shares; 23,117 options
Independent Non-Executive Director
None
None
Directors have been in office since the start of the financial year to the date of this report unless
otherwise stated.
12 | P a g e
A n n u a l R e p o r t
PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES
The principal activities of the Group during the financial year were:
• the development, sales and support of application software for the healthcare sector;
and
• the development of systems integration software that enables data to be securely
exchanged between multiple, disparate applications within an enterprise and across
the healthcare value chain.
There were no significant changes in the nature of the Group's principal activities during the financial
year.
OPERATING RESULT
The consolidated loss of the Group for the financial year after providing for income tax amounted to
$60,128 (2019: consolidated loss of $1,296,793).
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared since the start of the financial year. No recommendation for
payment of dividends has been made.
REVIEW OF OPERATIONS
A review of the operations of the Group during the financial year and the results of those operations
found that, during the year, the Group continued to engage in its principal activities, the result of
which are disclosed in the attached financial statements.
Commentary regarding the Group's operations for the financial year is contained in the "Financial
and Operations Review" preceding this Directors' Report.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have been no significant changes in the state of affairs of entities in the Group during the year.
EVENTS AFTER THE REPORTING DATE
The COVID-19 pandemic has created unprecented economic uncertainty. Actual economic events
and conditions in the future may be materially different from those estimated by the Group at the
reporting date. As responses by the government continue to evolve, management recognises that it
is difficult to reliably estimate with any degree of certainty the potential impact of the pandemic
after the reporting date on the Group's operations, its future results and financial position. The state
of emergency in Victoria was extended on 16 August 2020 until 13 September 2020 and the state of
disaster is still in place. Refer to Note 37 to the financial report for further information regarding the
impact of COVID-19 on the Group.
13 | P a g e
A n n u a l R e p o r t
Except for the above, no other matters or circumstances have arisen since the end of the financial
year which significantly affected or could significantly affect the operations of the Group, the results
of those operations, or the state of affairs of the Group in future financial years.
FUTURE DEVELOPMENTS AND RESULTS
The Group will continue to pursue its objective of increasing the profitability and market share of its
major business sectors during the next financial year.
ENVIRONMENTAL ISSUES
The Group's operations are not regulated by any significant environmental regulations under a law
of the Commonwealth or of a state or territory of Australia.
COMPANY SECRETARY
Mr Sam Butcher (LLB(Hons), BEc) was appointed as company secretary with effect from 21 June
2018. Prior to this role, Mr Butcher was previously company secretary of BHP Billiton Limited, Zinifex
Limited and Bonlac Foods Limited.
MEETINGS OF DIRECTORS
During the financial year, 13 meetings of directors and 7 audit and risk committee meetings were
held. Attendances by each director during the year were as follows:
Full Board
Audit and Risk Committee
Attended
Held
Attended
Held
Steven L. Pynt
Mathew Cherian
Grant Smith
Robert Knowles
13
13
13
13
13
13
13
13
7
-
7
-
7
-
7
-
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During or since the end of the financial year, the Company has not, in any aspect, or for any person
who is or has been an officer or director of the Company or a related body corporate, indemnified or
made any relevant agreement for indemnifying against a liability, including costs and expenses in
successfully defending legal proceedings.
During the financial year, the Company paid a premium in respect of a contract to insure the
directors and executives of the Company against a liability to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability
and the amount of the premium.
14 | P a g e
A n n u a l R e p o r t
The Company has not, during or since the end of the financial year, indemnified or agreed to
indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the
auditor of the Company or any related entity.
OPTIONS
At the date of this report, the unissued ordinary shares of Global Health Limited under option are as
follows:
Grant Date
19 December 2016
11 November 2019
12 December 2019
Date of Expiry
30 November 2021
11 November 2022
11 December 2024
Exercise Price
$0.75
$0.25
$0.25
Number under Option
600,000
4,209,873
1,095,000
5,904,873
Option holders do not have any rights to participate in any issues of shares or other interests in the
Company or any other entity.
For details of options issued to directors and other key management personnel as remuneration,
refer to the remuneration report.
There were no ordinary shares of Global Health Limited issued on the exercise of options during the
year ended 30 June 2020 and up to the date of this report.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court under Section 237 of the Corporations Act 2001 to bring
proceedings on behalf of the Company or intervene in any proceedings to which the Company is a
party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
AUDITOR'S INDEPENDENCE DECLARATION
The auditor's independence declaration in accordance with section 307C of the Corporations Act
2001 for the year ended 30 June 2020 has been received and can be found on page 22 of the
consolidated financial report.
REMUNERATION REPORT (AUDITED)
The remuneration report details the key management personnel remuneration arrangements for the
Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including all directors.
15 | P a g e
A n n u a l R e p o r t
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 key management personnel
PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
Remuneration of Directors and key management personnel of the Group is established by the Board.
Remuneration is determined as part of an annual performance review, having regard to market
factors and a performance evaluation process. The remuneration framework is designed to align
executive reward with achievement of strategic objectives and the creation of value for
shareholders, and conforms to market best practice for delivery of reward. For Directors and
executives, remuneration packages generally comprise salary and superannuation. Executives are
also provided with longer-term incentives through the employee share and share option schemes,
which act to align the executive's actions with the interests of the shareholders. Non-Executive
Directors are not entitled to performance-based bonuses.
The Board meets annually to review its own performance. The Chairman also holds individual
discussions with each Director to discuss their performance. The Non-Executive Directors are
responsible for evaluating the performance of the Chief Executive Officer, who in turn evaluates the
performance of all other senior executives.
In accordance with best practice corporate governance, the structure of Non-Executive Director and
Executive Director remuneration is separate.
PERFORMANCE BASED REMUNERATION
Performance based remuneration is evaluated based on specific criteria, including the Group's
business performance and achievement of turnover and Net Profit After Tax (NPAT) targets, whether
long-term strategic objectives are being achieved and the achievement of individual performance
objectives.
NON-EXECUTIVE DIRECTORS' REMUNERATION
Fees and payments to Non-Executive Directors reflect the demands which are made on, and the
responsibilities of, the Directors. Non-Executive Directors' fees and payments are reviewed annually
by the Board to ensure all payments are appropriate and in line with the market.
The Chairman's fees are determined independently to the fees of Non-Executive Directors based on
comparative roles in similar sized companies and sectors in the external market. The Chairman is not
present at any discussions relating to determination of his own remuneration.
16 | P a g e
A n n u a l R e p o r t
There were no remuneration consultants used during the current and prior financial year.
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 24 November 2009, where the shareholders approved a maximum annual
aggregate remuneration of $350,000. This amount may be divided among Non-Executive Directors in
the manner determined by the Board from time to time.
EXECUTIVE DIRECTORS' REMUNERATION
The Executive Directors' salary and conditions are determined by the Board of Directors and
reviewed at the expiry of each contract period.
EXECUTIVE REMUNERATION
Executives are offered a competitive base pay that comprises the fixed component of pay and
rewards. Base pay for senior executives is reviewed annually to ensure the executive's pay is
competitive with the market. There are no guaranteed based pay increases included in any senior
executive's contract.
VOTING AND COMMENTS MADE AT THE COMPANY'S 2019 ANNUAL GENERAL MEETING ("AGM")
At the 21 November 2019 AGM, 93.66% of proxies received were in support of adopting 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.
RELATIONSHIP BETWEEN REMUNERATION POLICY AND GROUP PERFORMANCE
The remuneration policy has been tailored to increase goal congruence between shareholders,
directors and executives. Two methods have been applied to achieve this aim, the first being a
performance-based bonus based on key performance indicators, and the second being the issue of
options to directors and executives to encourage the alignment of personal and shareholder
interests. There is no formal remuneration policy linking remuneration and the Group's
performance.
The following table shows the gross revenue, profits and dividends for the last five years for the
Company, as well as the share prices at the end of the respective financial years.
Revenue
Net Profit/(Loss)
Share Price at Year-end
Dividends Paid (cents)
2020 * $
2019 ** $
2018 $
2017 $
2016$
5,969,377 5,475,024 5,157,539 4,607,570 4,493,297
(60,128) (1,296,793) (1,860,399) 1,728,045
107,945
0.20
-
0.14
-
0.20
-
0.32
-
0.42
-
The Company adopted AASB 16 Leases for the first time on 1 July 2019, and accordingly, the results include the
*
impacts of applying this standard. Refer to Note 2 to the financial statements for further details.
**
the first time on 1 July 2018, and accordingly, the results include the impact of applying these standards.
The Company adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers for
17 | P a g e
A n n u a l R e p o r t
REMUNERATION DETAILS FOR THE YEAR 30 JUNE 2020
AMOUNTS OF REMUNERATION
The key management personnel of the Group consist of the following directors of Global Health
Limited:
• Mr S Pynt- Non-Executive Chairman
• Mr M Cherian - Chief Executive Officer and Managing Director
• Mr G Smith - Non-Executive Director
• Mr R Knowles - Non-Executive Director
And the following personnel:
• Mr D Groenveld
• Mr K Jayesuria
• Mr K Cherian
• Ms D Hudson
The following table of benefits and payment details, in respect to the financial year, the components
of remuneration for each member of the key management personnel of the Group.
Short-term benefits
Post-employm
ent benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees $
Annual
leave
accrued $
Allowances
* $
Superannuatio
n *** $
$
Share
options **
$
Total
$
47,477
28,833
36,842
-
-
-
-
-
-
-
-
-
-
-
-
748
374
374
48,225
29,207
37,216
212,405
18,287
26,000
25,277
3,959
-
285,928
164,383
144,407
171,655
159,326
12,645
12,645
11,240
9,435
-
-
15,000
-
15,616
24,710
15,929
14,594
2,738
2,738
2,433
2,043
7,646
7,646
3,008
203,028
192,146
219,265
-
185,398
2020
Directors
Non-Executive
Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Executive Director:
Mr M Cherian
Other KMP
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Ms D Hudson
Total remuneration
965,328
64,252
41,000
96,126
13,911
19,796 1,200,413
These amounts relate to car allowances paid.
Share based payments included above are in relation to the recognition of the expense relating to share options
*
**
issued in the current year to directors and KMP, including those for which vesting conditions have been met during the
current financial year.
***
paid to the respective non-executive directors according to the nature of the payment (i.e. cash salary and fees) instead
of splitting the payment as per the terms of the service agreements as was done in previous years.
During the financial year ended 30 June 2020, management has decided to disclose the total of the amounts
18 | P a g e
A n n u a l R e p o r t
Short-term benefits
Post-employm
ent benefits
Long-term
benefits
Share based
payments
Cash salary
and fees
$
Annual
leave
accrued
$
Allowances
$
Superannuatio
n ****
$
Share
options ***
$
Total
$
$
41,284
35,340
35,140
10,775
-
-
-
-
-
-
-
-
3,922
3,357
3,357
1,024
-
-
-
-
2,630
1,315
1,315
-
47,836
40,012
39,812
11,799
221,776
19,337
24,000
22,044
4,190
-
291,347
164,383
153,671
12,645
12,645
-
-
15,616
15,550
2,740
2,740
8,249
8,249
203,633
192,855
2019
Directors
Non-Executive
Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens *
Executive Director:
Mr M Cherian **
Other KMP
Mr D Groenveld
Mr K Jayesuria
Total remuneration
662,369
44,627
24,000
64,870
9,670
21,758
827,294
*
**
***
****
Resigned 22 November 2018
Allowance comprises $24,000 car allowance
Share based payments included above are in relation to the recognition of the expense relating to share options
issued in previous years to directors and KMP plus the vesting of those options issued in the current year.
Amounts included in this column in relation to non-executive directors for the financial year ended 30 June 2019
were disclosed in accordance with the terms included in the respective service agreements (i.e. cash salary and
fees inclusive of superannuation). This is despite the fact that only cash payments were made to the non-
executive directors (including amounts allocated as superannuation) instead of a portion of the monies being
paid to their respective superannuation accounts.as indicated in the disclosure in the table above.
19 | P a g e
A n n u a l R e p o r t
The proportion of remuneration linked to performance and the fixed portion are as follows:
Fixed remuneration
2020
%
2019
%
At risk - Short Term
Incentive
At risk - Long Term
Incentive
2020
%
2019
%
2020
%
2019
%
98
99
99
-
95
97
97
100
100
100
96
96
99
100
96
96
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
1
1
-
-
4
4
1
-
5
3
3
-
-
4
4
-
-
Name
Non-Executive Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens
Executive Director:
Mr M Cherian
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Ms D Hudson
SERVICE AGREEMENTS
Remuneration and other terms of employment for key management personnel are formalised in
service agreements. It is the Company's policy that employment contracts contain provisions for
termination with notice or payment in lieu of notice, and for termination by the Company without
notice for serious misconduct or breach of contract. The Managing Director is entitled to receive a
termination payment in addition to notice where the Company terminates employment on grounds
of illness or incapacity. The notice period required to be given by the employee or the Company
along with any termination payments are set out below.
Mr M Cherian
Managing Director
No fixed term
Notice period to be provided by Company: 6 months; Notice period to be provided by
employee: 6 months; Termination payment: 6 months (if termination is by reason of
the employee's illness or incapacity).
Name:
Title:
Term of
agreement:
Details:
20 | P a g e
A n n u a l R e p o r t
Name:
Title:
Term of
agreement:
Details:
Name:
Title:
Term of
agreement:
Details:
Name:
Title:
Term of
agreement:
Details:
Name:
Title:
Term of
agreement:
Details:
Mr D Groenveld
Principal Architect
No fixed term
Notice period to be provided by Company: 1 month; Notice period to be provided
by employee: 1 month; Termination payment: None.
Mr K Jayesuria
Chief Operating Officer
No fixed term
Notice period to be provided by Company: 1 month; Notice period to be provided
by employee: 1 month; Termination payment: None.
Mr K Cherian
Manager, Product Portfolio
No fixed term
Notice period to be provided by Company: 1 month; Notice period to be provided
by employee: 1 month; Termination payment: None.
Ms D Hudson
Manager, Customer Success Group
No fixed term
Notice period to be provided by Company: 1 month; Notice period to be
provided by employee: 1 month; Termination payment: None.
CHANGES IN KMP
During the year ended 30 June 2020, due to the increase in their respective responsibilities, it was
determined that the roles that Mr Kye Cherian and Ms Deborah Hudson play in the Company meet
the definition of key management personnel, and therefore, they will be included as such in the
current financial year.
There are no further changes to key management personnel during the year.
21 | P a g e
A n n u a l R e p o r t
SHARE-BASED COMPENSATION
ISSUE OF SHARES
There were no shares issued to directors and other key management personnel as part of
compensation during the years ended 30 June 2020 and 30 June 2019.
Options and rights granted
For the
financial
year
ended
30 June
2020
For the
financial
year
ended 30
June
2020
For the
financial
year
ended 30
June
2020
Overall
Grant details
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Date
12 December
2019
12 December
2019
12 December
2019
Value $
Lapsed
No.
No.
Lapsed
$
Vested
No.
Veste
d
%
Unveste
d
%
Lapsed
%
150,000 8,893
150,000 8,893
150,000 8,893
-
-
-
-
-
-
-
-
100.00
-
-
100.00
-
-
100.00
-
-
-
There were no options or rights granted to directors and other key management personnel as part of
compensation during the year ended 30 June 2019.
Description of options/rights granted as remuneration
Details of the options granted as remuneration to those key management personnel and executives
during the year:
Share-based payments
Year Ended 30 June 2020
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Included as
Remuneration
$
Number of
options
No.
Grant date
Vested in
period
%
Forfeited/
lapsed in
period
%
Vesting
date
3,008
3,008
3,008
150,000 12/12/2019
150,000 12/12/2019
150,000 12/12/2019
-
-
-
- 11/12/2022
- 11/12/2022
- 11/12/2022
Option values at grant date were determined using the Black Scholes method.
All options were issued by Global Health Limited and entitle the holder to ordinary shares in Global
Health Limited for each option exercised.
22 | P a g e
A n n u a l R e p o r t
There have not been any alterations to the terms or conditions of any share-based payment
arrangements since grant date.
Key management personnel options and rights holdings
30 June 2020
Non-Executive Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Executive Director:
Mr M Cherian
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Ms D Hudson
Total
Balance at
beginning of
year
No.
Granted as
remuneration
No.
Expired/
Forfeited
No.
Other
changes *
No.
Balance at
the end of
year
No.
Vested
during the
year
No.
Vested and
exercisable
No.
200,000
-
(200,000)
59,001
59,001
100,000
-
(100,000)
62,241
62,241
100,000
-
(100,000)
23,117
23,117
-
-
-
59,001
62,241
23,117
-
-
300,000
150,000
300,000
150,000
-
-
150,000
-
-
-
-
-
-
2,378,625
2,378,625
- 2,378,625
-
450,000
60,000
240,000
2,000
452,000
60,000
242,000
-
150,000
-
-
-
-
-
-
1,000,000
450,000
(400,000)
2,524,98
3,574,984 120,000 3,004,984
* These options relate to the free options which were attached to the shares issued pursuant to the 1 for 2 rights issue
which was completed in November 2019.
30 June 2019
Non-Executive Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Executive Director:
Mr M Cherian
Other KMP:
Mr D Groenveld
Balance at
beginning
of year
No.
Granted as
remuneratio
n
No.
Expired/
Forfeited
No.
Other
changes
No.
Balance at
the end of
year
No.
Vested
during the
year
No.
Total
vested and
exercisable
No.
200,000
100,000
100,000
-
300,000
-
-
-
-
-
-
-
-
-
-
- 200,000
- 100,000
- 100,000
66,667
33,333
33,333
200,000
100,000
100,000
-
-
-
-
- 300,000
60,000
180,000
23 | P a g e
A n n u a l R e p o r t
Mr K Jayesuria
600,000
- (300,000)
- 300,000
60,000
180,000
Total
1,300,000
- (300,000)
- 1,000,000 253,333
760,000
Key management personnel shareholdings
The number of ordinary shares in Global Health Limited held by each key management person of the
Group, including their personally related parties, during the financial year is as follows:
30 June 2020
Non-Executive Directors:
Mr S L Pynt *
Mr G Smith *
Mr R Knowles *
Executive Director:
Mr M Cherian *
Other KMP:
Mr D Groenveld *
Mr K Jayesuria *
Mr K Cherian **
Total
Balance at
beginning
of year
No.
On exercise
of options
No.
Other
changes
during the
year
No.
Balance at
end of year
No.
257,408
300,000
20,000
-
-
-
118,000
124,481
46,234
375,408
424,481
66,234
18,619,370
- 4,757,249 23,376,619
304,000
4,000
-
-
-
-
-
4,000
99,999
304,000
8,000
99,999
19,504,778
- 5,149,963 24,654,741
Other changes during the year relates to shares issued pursuant to the 1 for 2 rights issue which was completed
Mr Kye Cherian's holdings relate to those shareholdings as at date of commencement as a member of key
*
in November 2019.
**
management personnel.
Balance at
beginning
of year
No.
On exercise
of options
No.
Other
changes
during the
year *
No.
Balance at
end of year
No.
257,408
300,000
20,000
22,000
18,619,370
304,000
4,000
19,526,778
-
-
-
-
-
-
-
-
-
-
-
(22,000)
257,408
300,000
20,000
-
- 18,619,370
-
-
304,000
4,000
(22,000) 19,504,778
30 June 2019
Non-Executive Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens
Executive Director:
Mr M Cherian
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Total
24 | P a g e
A n n u a l R e p o r t
*
Holdings as at date of cessation as a member of key management personnel.
KMP related party transactions
The Group undertook the following transactions with:
• Key management personnel (KMP)
• A close member of the family of that person, or
• An entity over which the key management person or family member has, directly or
indirectly, control, joint control or significant influence, during the reporting period.
Information regarding share-based payment transactions with these persons or entities are included
elsewhere in the remuneration report.
Amount payable to key management personnel and their related parties
At the end of the reporting period, accrued wages totalling $75,390 (2019: $75,390) were payable to
the Managing Director, Mathew Cherian. This amount payable is interest free and unsecured.
Loans to key management personnel and their related parties
At the end of the reporting period, a loan of $NIL (2019: $8,323) was outstanding from D Groenveld
on which interest of $NIL (2019: $974) had been charged during the year. There were no other loans
advanced to key management personnel during the year.
Other transactions with key management personnel and their related parties
There were no other transactions conducted between the Group and KMP or their related parties,
apart from those disclosed above relating to equity, compensation and loans, that were conducted
other than in accordance with normal employee, customer or supplier relationships on terms no
more favourable than those reasonably expected under arm's length dealings with unrelated
persons.
End of Audited Remuneration Report
This director's report, incorporating the remuneration report, is signed in accordance with a
resolution of the Board of Directors.
Non-Executive Chairman:
Steven Leigh Pynt
Dated this 31st day of August 2020
25 | P a g e
A n n u a l R e p o r t
5. AUDITOR’S INDEPENDENCE DECLARATION
26 | P a g e
A n n u a l R e p o r t
6. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2020
Revenue
Revenue from contracts with customers
Other income
Finance income
Total income and revenue
Employee benefits expense
Third party product and service costs
General and administration costs
Bad debts and loss allowance for financial assets
Marketing expenses
Professional fees
Rent and occupancy expenses
IT and telecommunications expense
Travel expenses
Finance expenses
Depreciation
Amortisation
Total expenses
Loss before income tax
Income tax expense
Note
6
7(a)
7(b)
2020
$
2019
$
5,969,377
280,000
6,291
5,475,024
37,587
12,167
6,255,668
(3,465,373)
(1,255,832)
(209,347)
(111,900)
(134,639)
(340,543)
(66,623)
(116,329)
(65,595)
(110,315)
(219,147)
(402,124)
5,524,778
(3,623,652)
(1,367,087)
(272,593)
(77,338)
(87,607)
(183,558)
(158,645)
(195,256)
(169,269)
(138,324)
(32,850)
(190,329)
(6,497,767)
(6,496,508)
(242,099)
181,971
(971,730)
(325,063)
9
Net loss for the year attributable to members of the parent entity
(60,128)
(1,296,793)
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss
Items that will be reclassified to profit or loss when specific conditions are
met
-
-
-
-
Total comprehensive loss for the year attributable to members of the parent
entity
(60,128)
(1,296,793)
Earnings per share:
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
27
27
(0.15)
(0.15)
(3.86)
(3.86)
The accompanying notes form part of these financial statements.
27 | P a g e
A n n u a l R e p o r t
7. STATEMENT OF FINANCIAL POSITION
As at 30 June 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Tax receivable
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
Deferred tax assets
Right-of-use assets
Other assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Provisions
Employee benefits
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Contract liabilities
Borrowings
Deferred tax liabilities
Lease liabilities
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS/ (NET LIABILITIES)
2020
$
Note
2019
$
10
11
14(a)
16
666,276
1,208,968
97,930
114,009
803,990
436,125
-
61,716
2,087,183 1,301,831
12
13
14(b)
15
16
34,956
54,844
3,939,689 4,089,825
334,665
-
113,490
391,799
201,802
116,350
4,684,596 4,592,824
6,771,779 5,894,655
17
18
19
15
20
21
1,059,512 1,786,261
2,622,080 1,621,494
559,983
-
-
591,322
360,111
181,674
50,000
582,053
4,855,430 4,559,060
18
19
218,604
271,098
280,406
605,658
14(c) 1,114,254 1,141,160
-
3,532
33,588
39,669
15
21
1,647,157 2,060,812
6,502,587 6,619,872
269,192
(725,217)
The accompanying notes form part of these financial statements.
28 | P a g e
A n n u a l R e p o r t
EQUITY/ (NET DEFICIENCY)
Issued capital
Reserves
Accumulated losses
22
23
24
21,745,526 20,961,242
174,211
(21,768,550) (21,860,746)
292,140
Total equity/ (net deficiency) attributable to equity holders of the Company
Non-controlling interest
269,116
76
(725,293)
76
25
TOTAL EQUITY/ (NET DEFICIENCY)
269,192
(725,217)
29 | P a g e
A n n u a l R e p o r t
8. STATEMENT OF CHANGES IN EQUITY
2020
Balance at 1 July 2019
Adjustment due to adoption of AASB 16
Balance at 1 July 2019 (adjusted)
Net loss attributable to members of the parent entity
Transactions with owners in their capacity as owners
Contribution of equity, net of transaction costs
Options issued as part of rights issue
Share based payment transactions
Lapsed employee share options
Previously exercised options
Balance at 30 June 2020
2019
Balance at 1 July 2018
Net loss attributable to members of the parent entity
Transactions with owners in their capacity as owners
Contribution of equity, net of transaction costs
Share based payment transactions
Issued
Capital
$
Accumulated
Losses
$
Note
20,961,242 (21,860,746)
86,903
-
24
20,961,242 (21,773,843)
(60,128)
-
Foreign
Currency
Translation
Reserve
$
24,234
-
24,234
-
758,934
-
-
-
25,350
-
-
-
65,421
-
-
-
-
-
-
Option
Reserve
$
Non-controlli
ng Interests
$
149,977
-
149,977
-
-
175,973
32,727
(65,421)
(25,350)
76
-
76
-
-
-
-
-
-
Total
$
(725,217)
86,903
(638,314)
(60,128)
758,934
175,973
32,727
-
-
21,745,526 (21,768,550)
24,234
267,906
76
269,192
20,898,742 (20,563,953)
- (1,296,793)
24,234
-
128,220
-
76
487,319
- (1,296,793)
62,500
-
-
-
-
-
-
21,757
-
-
62,500
21,757
23
23
23,24
23
24
23
Balance at 30 June 2019
20,961,242 (21,860,746)
24,234
149,977
76
(725,217)
The accompanying notes form part of these financial statements.
30 | P a g e
A n n u a l R e p o r t
9. STATEMENT OF CASH FLOW
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Finance costs
Income taxes received
Net cash provided by/ (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for intangible assets
Purchase of property, plant and equipment
Receipts from Research and Development Grants
Net cash provided by/ (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Repayment of borrowings
Payment of transaction costs
Repayment of lease liabilities
Net cash provided by/ (used in) financing activities
Note
2020
$
2019
$
6,396,287
(6,712,943)
6,291
(103,061)
272,387
6,486,437
(6,654,916)
7,142
(131,418)
635,987
26
(141,039)
343,232
(698,068)
(789)
446,080
(959,880)
-
789,905
(252,777)
(169,975)
1,010,368
(534,432)
(75,461)
(144,373)
-
(526,803)
-
-
256,102
(526,803)
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
(137,714)
803,990
(353,546)
1,157,536
10(a)
666,276
803,990
The accompanying notes form part of these financial statements.
31 | P a g e
A n n u a l R e p o r t
10. NOTES TO THE FINANCIAL STATEMENT
The consolidated financial report covers Global Health Limited and its controlled entities ('the
Group'). Global Health Limited is a for profit listed public company limited by shares, incorporated
and domiciled in Australia.
Global Health Limited shares are listed on the Australian Securities Exchange (ASX code: GLH).
Each of the entities within the Group prepare their financial statements based on the currency of the
primary economic environment in which the entity operates (functional currency). The consolidated
financial statements are presented in Australian dollars which is the parent entity’s functional and
presentation currency.
The financial report was authorised for issue by the Directors on 31 August 2020.
When required by Accounting Standards, or when deemed appropriate by management for financial
reporting clarity, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
NOTE 1. BASIS OF PREPARATION
The financial statements are general purpose financial statements that have been prepared in
accordance with the Australian Accounting Standards and the Corporations Act 2001.
These financial statements comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The financial statements, except for the cash flow information, have been prepared on an accruals
basis and are based on historical costs modified, where applicable, by the measurement at fair value
of selected non-current assets, financial assets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are
presented below and are consistent with prior reporting periods unless otherwise stated.
NOTE 2. CHANGE IN ACCOUNTING POLICY
Leases - Adoption of AASB 16
The Group has adopted AASB 16 Leases using the modified retrospective (cumulative catch up)
method from 1 July 2019 and therefore the comparative information for the year ended 30 June
2019 has not been restated and has been prepared in accordance with AASB 117 Leases and
associated Accounting Interpretations.
Impact of adoption of AASB 16
The impact of adopting AASB 16 is described below:
32 | P a g e
A n n u a l R e p o r t
The Group as a lessee
Under AASB 117, the Group assessed whether leases were operating or finance leases based on its
assessment of whether the significant risks and rewards of ownership had been transferred to the
Group or remained with the lessor. Under AASB 16, there is no differentiation between finance and
operating leases for the lessee and therefore all leases which meet the definition of a lease are
recognised on the consolidated statement of financial position (except for short term leases and
leases of low value assets).
The Group has elected to use the exception to lease accounting for short term leases and leases of
low value assets, and the lease expense relating to these leases are recognised in the consolidated
statement of profit or loss on a straight-line basis.
Practical expedients used on transition
AASB 16 includes a number of practical expedients which can be used on transition, the Group has
used the following expedients:
• contracts which had previously been assessed as not containing leases under AASB 117 were
not re assessed on transition to AASB 16;
• a single discount rate was applied to all leases with similar characteristics;
• the right of use asset was adjusted by the existing onerous lease provision (where relevant) at
30 June 2019 rather than perform impairment testing of the right of use asset;
• excluded leases with an expiry date prior to 30 June 2020 from the consolidated statement of
financial position and lease expenses for these leases have been recorded on a straight-line
basis over the remaining term;
• used hindsight when determining the lease term if the contract contains options to extend or
terminate the lease;
• for leases which were classified as finance leases under AASB 117, the carrying amount of the
right of use asset and the lease liability at 1 July 2019 are the same value as the leased asset
and liability on 30 June 2019.
Financial statement impact of adoption of AASB 16
The Group has recognised right of use assets of $350,272 and lease liabilities of $350,272 at 1 July
2019, for leases previously classified as operating leases. An existing straight-line lease liability
related to AASB 117 at 30 June 2019 of $86,903 was taken to opening accumulated loses at 1 July
2019 on transition to AASB 16.
The weighted average lessee's incremental borrowing rate applied to lease liabilities at 1 July 2019
was 6.00%.
33 | P a g e
A n n u a l R e p o r t
Operating lease commitments at 30 June 2019 financial statements
Discounted using the incremental borrowing rate at 1 July 2019
Less:
Short-term leases included in commitments note
Other adjustments relating to commitment disclosures
Lease liabilities recognised at 1 July 2019
$
465,421
(11,202)
(32,593)
(71,354)
350,272
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis for consolidation
The consolidated financial statements include the financial position and performance of
controlled entities from the date on which control is obtained until the date that control is lost.
Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions
between entities in the consolidated entity have been eliminated in full for the purpose of these
financial statements.
Appropriate adjustments have been made to a controlled entity’s financial position, performance
and cash flows where the accounting policies used by that entity were different from those
adopted by the consolidated entity. All controlled entities have a June financial year end.
A list of controlled entities is contained in Note 35 to the financial statements.
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the parent has control.
Control is established when the parent is exposed to, or has rights to variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct
the relevant activities of the entity.
(b) Revenue and other income
Revenue from contracts with customers
The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of
promised goods or services to customers at an amount that reflects the consideration the Group
expects to receive in exchange for those goods or services. Revenue is recognised by applying a
five-step model as follows:
1. Identify the contract with the customer
2. Identify the performance obligations
34 | P a g e
A n n u a l R e p o r t
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations
5. Recognise revenue as and when control of the performance obligations is transferred
Generally, the timing of the payment for sale of goods and rendering of services corresponds
closely to the timing of satisfaction of the performance obligations, however where there is a
difference, it will result in the recognition of a receivable, contract asset or contract liability.
None of the revenue streams of the Group have any significant financing terms as there is less
than 12 months between receipt of funds and satisfaction of performance obligations.
Specific revenue streams
The revenue recognition policies for the principal revenue streams of the Group are:
Subscription fees
Subscription fees refer to software provided as a service and is only accessible whilst the
customer maintains an active subscription. Subscription fees are a non-refundable revenue
stream. Clients subscribe to software services in advance ranging from monthly, quarterly, half
yearly to annual payments. They are proportionally accrued in arrears, at the end of each month
and recognised as revenue over the subscription period. An active subscription entitles the
customer to a usage of software services (and cloud-based services if available), help desk
telephone support, online support and product enhancements as made available.
The performance obligation for subscription fees is the provision of the agreed software, and
associated services as noted above, during the contracted subscription period.
For each active subscription contract, subscription fees revenue is recognised over time, on the
provision of the service to the customer, which takes place on a constant and continuing basis
over the fixed period of time set out in the customer contract.
Where a subscription fee includes an amount in excess of what normally would be charged for an
annual subscription, this excess will be recognised over the expected lifespan of the client being
five years.
In situations where a subscription is issued to a customer which does not include ongoing
support/maintenance, this is classified as a "passive subscription" and the Group recognises all
revenue associated with the subscription when access is provided to the customer. Such
subscriptions require no further input from the Group to remain functional. Customers are made
aware of these terms before the subscription is issued.
35 | P a g e
A n n u a l R e p o r t
Other subscription revenue
Other subscription revenue can include, but is not limited to, excess usage fees, additional user
accounts, SMS packages and upgrade fees.
Such revenue is recognised over time, on the provision of the service to the customer, which
takes place over the fixed period of time set out in the customer contract.
Professional services
Treatment of our professional services revenue is dependent on the timing of services provided,
the nature of services performed and when benefits are transferred to our customers.
Professional services are split into three distinct categories to allow for identification and
recognition:
Implementation: These services are associated with bringing the software into use. Such services
are not considered to be complex or overly time consuming and where applicable can be
performed by a third party. Recognition of the revenue occurs at a point in time, being the
delivery of the service to the customer. These services can include (but are not limited to):
Software installation, usage training, system testing, deployment (local or cloud server) and
configuration.
Development: Software provided to clients is done so in a ready to use capacity. Where further
development and enhancement is required by the customer, it is done in addition to normal
initiation and deployment services. The standard software is available for use during this process
and enhancements are provided to the customer as they finish development. Recognition of
revenue for these services occurs at a point in time which is the provision of performance
obligation(s) which provide a benefit to the customer over and above what they would have
received should they have used the unmodified software.
Other services: Other services are performed for customers on an "as needed" basis. The scope
of such services is usually significantly smaller than other services performed. Recognition of
revenue for such services is recognised at a point in time, being the time of completion of the
services required by the customer.
Statement of financial position balances relating to revenue recognition
Contract assets and liabilities
Where the amounts billed to customers are based on the achievement of various milestones
established in the contract, the amounts recognised as revenue in a given period do not
necessarily coincide with the amounts billed to or certified by the customer.
When a performance obligation is satisfied by transferring a promised good or service to the
customer before the customer pays consideration or the before payment is due, the Group
36 | P a g e
A n n u a l R e p o r t
presents the contract as a contract asset, unless the Group's rights to that amount of
consideration are unconditional, in which case the Group recognises a receivable.
When an amount of consideration is received from a customer prior to the entity transferring a
good or service to the customer, the Group presents the contract as a contract liability.
Interest income
Interest income 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 income
Other income is recognised on an accruals basis when the Group is entitled to it.
(c) Government grants
Government grants are recognised at fair value where there is reasonable assurance that the
grant will be received and all grant conditions will be met. Grants relating to expense items are
recognised as income over the periods necessary to match the grant to the costs they are
compensating. Grants relating to assets are credited to deferred income at fair value and are
credited to income over the expected useful life of the asset on a straight-line basis.
(d) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of that asset.
All other borrowing costs are recognised as an expense in the period in which they are incurred.
(e) Income Tax
The tax expense recognised in the consolidated statement of profit or loss and other
comprehensive income comprises current income tax expense plus deferred tax expense.
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit
(loss) for the year and is measured at the amount expected to be paid to (recovered from) the
taxation authorities, using the tax rates and laws that have been enacted or substantively
enacted by the end of the reporting period. Current tax liabilities (assets) are measured at the
amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred tax is provided on temporary differences which are determined by comparing the
carrying amounts of tax bases of assets and liabilities to the carrying amounts in the consolidated
financial statements.
37 | P a g e
A n n u a l R e p o r t
Deferred tax is not provided for the following:
• The initial recognition of an asset or liability in a transaction that is not a business
combination and at the time of the transaction, affects neither accounting profit nor taxable
profit (tax loss).
• Taxable temporary differences arising on the initial recognition of goodwill.
• Temporary differences related to investment in subsidiaries, associates and jointly controlled
entities to the extent that the Group is able to control the timing of the reversal of the
temporary differences and it is probable that they will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences and unused tax
losses to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and losses can be utilised.
Current and deferred tax is recognised as income or an expense and included in profit or loss for
the period except where the tax arises from a transaction which is recognised in other
comprehensive income or equity, in which case the tax is recognised in other comprehensive
income or equity respectively.
(f) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short-term investments
which are readily convertible to known amounts of cash and which are subject to an insignificant
risk of change in value.
Bank overdrafts also form part of cash equivalents for the purpose of the consolidated statement
of cash flows and are presented within current liabilities on the consolidated statement of
financial position.
(g) Financial instruments
Financial instruments are recognised initially on the date that the Group becomes party to the
contractual provisions of the instrument.
On initial recognition, all financial instruments are measured at fair value plus transaction costs
(except for instruments measured at fair value through profit or loss where transaction costs are
expensed as incurred).
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised
cost or fair value, depending on the classification of the financial assets.
38 | P a g e
A n n u a l R e p o r t
Classification
On initial recognition, the Group classifies its financial assets into the following category, those
measured at:
• amortised cost.
Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets.
Amortised cost
Assets measured at amortised cost are financial assets where:
• the business model is to hold assets to collect contractual cash flows; and
• the contractual terms give rise on specified dates to cash flows are solely payments of
principal and interest on the principal amount outstanding.
The Group's financial assets measured at amortised cost comprise trade and other
receivables and cash and cash equivalents in the consolidated statement of financial position.
Subsequent to initial recognition, these assets are carried at amortised cost using the
effective interest rate method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or
loss. Gain or loss on derecognition is recognised in profit or loss.
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for the
following assets:
• financial assets measured at amortised cost.
When determining whether the credit risk of a financial assets has increased significantly
since initial recognition and when estimating ECL, the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis based on the Group's
historical experience and informed credit assessment and including forward looking
information.
The Group uses the presumption that an asset which is more than 30 days past due has seen a
significant increase in credit risk.
The Group uses the presumption that a financial asset is in default when:
39 | P a g e
A n n u a l R e p o r t
• the other party is unlikely to pay its credit obligations to the Group in full, without
recourse to the Group to actions such as realising security (if any is held); or
• the financial assets are more than 90 days past due.
Credit losses are measured as the present value of the difference between the cash flows due to
the Group in accordance with the contract and the cash flows expected to be received. This is
applied using a probability weighted approach.
Trade receivables and contract assets
Impairment of trade receivables and contract assets have been determined using the simplified
approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Group has
determined the probability of non-payment of the receivable and contract asset and multiplied
this by the amount of the expected loss arising from default.
The amount of the impairment is recorded in a separate allowance account with the loss being
recognised in profit or loss. Once the receivable is determined to be uncollectable then the gross
carrying amount is written off against the associated allowance.
Where the Group renegotiates the terms of trade receivables due from certain customers, the
new expected cash flows are discounted at the original effective interest rate and any resulting
difference to the carrying value is recognised in profit or loss.
Other financial assets measured at amortised cost
Impairment of other financial assets measured at amortised cost are determined using the
expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the
expected credit losses for the next 12 months is recognised. Where the asset has experienced
significant increase in credit risk then the lifetime losses are estimated and recognised.
Financial liabilities
The Group measures all financial liabilities initially at fair value less transaction costs,
subsequently financial liabilities are measured at amortised cost using the effective interest rate
method.
The financial liabilities of the Group comprise trade payables, bank and other loans and lease
liabilities.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group 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.
40 | P a g e
A n n u a l R e p o r t
(h) Leases
For comparative year
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of
the asset, but not the legal ownership that are transferred to entities in the Group, are classified
as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts
equal to the fair value of the leased property or the present value of the minimum lease
payments, including any guaranteed residual values. Lease payments are allocated between the
reduction of the lease liability and the lease interest expense for the period.
Lease payments for operating leases, where substantially all of the risks and benefits remain with
the lessor, are charged as expenses on a straight-line basis over the life of the lease term.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-
line basis over the life of the lease term.
For current year
At inception of a contract, the Group assesses whether a lease exists i.e. does the contract
convey the right to control the use of an identified asset for a period of time in exchange for
consideration.
This involves an assessment of whether:
• The contract involves the use of an identified asset this may be explicitly or implicitly
identified within the agreement. If the supplier has a substantive substitution right then
there is no identified asset.
• The Group has the right to obtain substantially all of the economic benefits from the use
of the asset throughout the period of use.
• The Group has the right to direct the use of the asset i.e. decision-making rights in
relation to changing how and for what purpose the asset is used.
Lessee accounting
Non lease components included in a lease agreement may be separated and recognised as an
expense as incurred.
At the lease commencement, the Group recognises a right of use asset and associated lease
liability for the lease term. The lease term includes extension periods where the Group believes it
is reasonably certain that the option will be exercised.
41 | P a g e
A n n u a l R e p o r t
The right of use asset is measured using the cost model where cost on initial recognition
comprises of the lease liability, initial direct costs, prepaid lease payments, estimated cost of
removal and restoration less any lease incentives received.
The right of use asset is depreciated over the lease term on a straight-line basis and assessed for
impairment in accordance with the impairment of assets accounting policy.
The lease liability is initially measured at the present value of the remaining lease payments at the
commencement of the lease. The discount rate is the rate implicit in the lease, however where
this cannot be readily determined then the Group's incremental borrowing rate is used.
Subsequent to initial recognition, the lease liability is measured at amortised cost using the
effective interest rate method. The lease liability is remeasured if there is a lease modification,
change in estimate of the lease term or index upon which the lease payments are based (e.g. CPI)
or a change in the Group's assessment of lease term.
Where the lease liability is remeasured, the right of use asset is adjusted to reflect the
remeasurement or is recorded in profit or loss if the carrying amount of the right of use asset has
been reduced to zero.
Exceptions to lease accounting
The Group has elected to apply the exceptions to lease accounting for both short term leases (i.e.
leases with a term of less than or equal to 12 months) and leases of low value assets. The Group
recognises the payments associated with these leases as an expense on a straight-line basis over
the lease term.
(i) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any
accumulated depreciation and impairment.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a reducing balance
basis over the assets useful life to the Group, commencing when the asset is ready for use.
Leased assets and leasehold improvements are amortised over the shorter of either the
unexpired period of the lease or their estimated useful life.
The depreciation rates used for each class of depreciable asset are shown below:
Fixed asset class
Plant and Equipment
Leasehold improvements
Depreciation rate
13% - 67%
29% - 37%
42 | P a g e
A n n u a l R e p o r t
At the end of each annual reporting period, the depreciation method, useful life and residual
value of each asset is reviewed. Any revisions are accounted for prospectively as a change in
estimate.
(j) Intangibles
Developed products
Developed products are initially recognised at cost and are subsequently measured at cost less
accumulated amortisation and accumulated impairment losses. Developed products have a finite
life and are amortised on a systematic basis matched to the future economic benefits over the
useful life of the project which is at least 10 years.
Products under development
Expenditure during the research phase of a project is recognised as an expense when incurred.
Development costs are capitalised only when technical feasibility studies identify that the project
will deliver future economic benefits and these benefits can be measured reliably.
The expenditure capitalised includes the cost of materials, direct labour and overhead costs that
are directly attributable to preparing the asset for its intended use. Other development
expenditure is recognised in profit or loss as incurred. The carrying value of products under
development are reviewed annually when the asset is not yet available for use, or when events
or circumstances indicate that the carrying value may be impaired. On commercialisation of
these products which is represented by when the asset is available for use, the capitalised costs
relating to the project is transferred to Developed products.
Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives
of intangible assets, other than goodwill, from the date that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(k) Impairment of non-financial assets
At the end of each reporting period the Group determines whether there is any evidence of
impairment for its non-financial assets.
Where an indicator exists and regardless for goodwill, indefinite life intangible assets and
intangible assets not yet available for use, the recoverable amount of the asset is estimated.
Where assets do not operate independently of other assets, the recoverable amount of the
relevant cash generating unit (CGU) is estimated.
43 | P a g e
A n n u a l R e p o r t
The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal
and the value in use. Value in use is the present value of the future cash flows expected to be
derived from an asset or cash generating unit.
Where the recoverable amount is less than the carrying amount, an impairment loss is
recognised in profit or loss.
Reversal indicators are considered in subsequent periods for all assets which have suffered an
impairment loss, except for goodwill.
(l) 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.
Where there is an unconditional right to defer settlement of the liability for at least 12 months
after the reporting date, the loans or borrowings are classified as non-current.
(m) Employee benefits
Short term employee benefits
Provision is made for the Group's obligation for short term employee benefits. Short term
employee benefits are benefits (other than termination benefits) that are expected to be settled
wholly before 12 months after the end of the annual reporting period in which the employees
render the related service, including wages and salaries. Short term employee benefits are
measured at the undiscounted amounts expected to be paid when the obligation is settled,
inclusive of on costs.
The Group's obligations for short term employee benefits such as wages and salaries are
recognised as a part of current employee benefits in the consolidated statement of financial
position.
Other long-term employee benefits
Provision is made for employees' long service leave and annual leave entitlements not expected
to be settled wholly within 12 months after the end of the annual reporting period in which the
employees render the related service. Other long-term employee benefits are measured at the
present value of the expected future payments to be made to employees. Expected future
payments incorporate anticipated future wage and salary levels, durations of service and
employee departures and are discounted at rates determined by reference to market yield at the
end of the reporting period on government bonds that have maturity dates that approximate the
terms of the obligations. Upon the remeasurement of obligations for other long-term employee
benefits, the net change in the obligation is recognised in profit or loss as part of employee
benefits expense.
44 | P a g e
A n n u a l R e p o r t
The Group's obligations for long term employee benefits are presented as non-current employee
benefits in its consolidated statement of financial position, except where the Group does not
have an unconditional right to defer settlement for at least 12 months after the end of the
reporting period, in which case the obligations are presented as current employee benefits.
Defined contribution schemes
Obligations for contributions to defined contribution superannuation plans are recognised as an
employee benefit expense in profit or loss in the periods in which services are provided by
employees.
(n) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result and that
outflow can be reliably measured.
Provisions are measured at the present value of management's best estimate of the outflow
required to settle the obligation at the end of the reporting period. The discount rate used is a
pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to the unwinding of the discount is
taken to finance costs in the consolidated statement of profit or loss and other comprehensive
income.
(o) Equity settled compensation
The Group operates equity settled share-based payment employee share and option schemes.
The fair value of the equity to which employees become entitled is measured at grant date and
recognised as an expense over the vesting period, with a corresponding increase to an equity
account. The fair value of shares is ascertained as the market bid price. The fair value of options
is ascertained using a Black Scholes pricing model which incorporates all market vesting
conditions. The amount to be expensed is determined by reference to the fair value of the
options or shares granted, this expense takes in account any market performance conditions and
the impact of any non-vesting conditions but ignores the effect of any service and non-market
performance vesting conditions.
Non market vesting conditions are taken into account when considering the number of options
expected to vest. At the end of each reporting period, the Group revises its estimate of the
number of options which are expected to vest based on the non-market vesting conditions.
Revisions to the prior period estimate are recognised in profit or loss and equity.
45 | P a g e
A n n u a l R e p o r t
(p) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares and share options which vest immediately are recognised as a deduction from
equity, net of any tax effects.
(q) Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the
company by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after-
income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.
(r) Foreign currency transactions and balances
Transaction and balances
Foreign currency transactions are recorded at the spot rate on the date of the transaction.
At the end of the reporting period:
• Foreign currency monetary items are translated using the closing rate;
• Non-monetary items that are measured at historical cost are translated using the
exchange rate at the date of the transaction; and
• Non-monetary items that are measured at fair value are translated using the rate at the
date when fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were translated on initial recognition or in prior
reporting periods are recognised through profit or loss, except where they relate to an item of
other comprehensive income or whether they are deferred in equity as qualifying hedges.
Group companies
The financial results and position of foreign operations whose functional currency is different
from the Group's presentation currency are translated as follows:
• assets and liabilities are translated at year end exchange rates prevailing at that reporting
date;
• income and expenses are translated at average exchange rates for the period where the
average rate approximates the rate at the date of the transaction; and
• retained earnings are translated at the exchange rates prevailing at the date of the
transaction.
46 | P a g e
A n n u a l R e p o r t
Exchange differences arising on translation of foreign operations are transferred directly to
the Group's foreign currency translation reserve in the consolidated statement of financial
position. These differences are recognised in the consolidated statement of profit or loss and
other comprehensive income in the period in which the operation is disposed.
(s) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the result of
the Group only. Supplementary information about the parent entity is disclosed in Note 36.
(t) Going concern
As at 30 June 2020, the Group has cash reserves of $666,276 (2019: $803,990) and an excess of
current liabilities over current assets of $2,768,247 (2019: $3,257,229). However, the current
liabilities as at 30 June 2020 contain a contract liability account, which represents the result of
accounting adjustments and do not represent amounts currently payable, or expected to
become payable, to third parties. If these liability accounts are removed from the calculation of
the excess of current liabilities over current assets at 30 June 2020, the excess of current
liabilities over current assets at that date is reduced to $146,167 (2019: $1,635,735). As disclosed
in Note 38, it is difficult to reliably estimate with any degree of certainty the potential impact of
the COVID 19 pandemic on the Group's future operations, results of financial position.
The current year loss before tax was $242,099 (2019: loss before tax of $971,730).
The consolidated annual financial report has been prepared on a going concern basis which
assumes that the Group will be able to meet their debts as and when they fall due. The following
matters have been considered by the directors in determining the appropriateness of the going
concern basis of preparation in the financial statements:
a) Success in continued operations
In the current financial year, the Group was successful in obtaining contracts with
Government agencies and large community health organisations. This is expected to increase
cashflows related to the operations of the Group. Management also have the ability to
reduce operating costs in relation to development should the need arise. Increases in
expected collections with the ability to reduce operating costs in relation to development will
allow the Group to increase its operating cash flows.
b) Expansion into new markets
The Group continues its activities in the domestic and international markets (Malaysia,
Singapore, Indonesia, Thailand, and Vietnam). Management anticipates it will leverage this
position to increase operating cashflows through the sale of software and services targeted
towards international markets. This includes sales of new software developed by the Group.
c) Availability of finance
The Group, through its financial institutions, is able to acquire additional financial support if
47 | P a g e
A n n u a l R e p o r t
so required. The directors believe that the Group will be able to continue as a going concern
and, accordingly, the financial statements have been prepared on that basis. As at 30 June
2020, it was determined that additional finance facilities were not necessary.
d) Ability to raise capital
As the Group is an ASX listed entity, the Group has the ability to raise additional funds by way
of capital raising(s), if required, and has a past history of raising capital successfully when
required.
e) Deferral of creditor payments
The Group has reviewed current outstanding accounts payable balances and has determined
that large balances can be gradually paid through payment plans with negotiations with our
suppliers.
There is a material uncertainty related to these events that may cast significant doubt on the
Group's ability to continue as a going concern. If the Group is not successful in these matters, the
going concern basis may not be appropriate, with the result that the Group may have to realise its
assets and extinguish its liabilities, other than in the ordinary course of business and at amounts
different from those stated in the financial report. No allowance for such circumstances has been
made in the financial report.
The financial report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts or to the amounts and classification of liabilities that
might be necessarily incurred should the Group not continue as a going concern.
The financial statements have been prepared on a going concern basis as the directors believe
that the Group will be able to pay its debts as and when they fall due and payable.
(u) Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST),
except where the amount of GST incurred is not recoverable from the Australian Taxation Office
(ATO).
Receivables and payables are stated inclusive of GST.
Cash flows in the consolidated statement of cash flows are included on a gross basis and the GST
component of cash flows arising from investing and financing activities which is recoverable
from, or payable to, the taxation authority is classified as operating cash flows.
(v) Adoption of new and revised accounting standards
The Group has adopted all standards which became effective for the first time in the current
financial year, for details on the impact of the standards adopted on the reported financial
position, performance or cash flow of the Group, refer to Note 2 "Change in Accounting Policy".
48 | P a g e
A n n u a l R e p o r t
49 | P a g e
A n n u a l R e p o r t
(w) New Accounting Standards and Interpretations
The AASB has issued new and amended Accounting Standards and Interpretations that have
mandatory application dates for future reporting periods. The directors have decided against
early adoption of these Standards, but does not expect the adoption of these standards to have
any material impact on the reported position or performance of the Group.
NOTE 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The directors make estimates and judgements during the preparation of these consolidated financial
statements regarding assumptions about current and future events affecting transactions and
balances.
These estimates and judgements are based on the best information available at the time of
preparing the financial statements, however as additional information is known then the actual
results may differ from the estimates.
The significant estimates and judgements made have been described below.
Key estimates - impairment of intangible assets
The Group assesses impairment at the end of each reporting period by evaluating conditions and
events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of
intangible assets are reassessed using value in use calculations which incorporate various key
assumptions, including estimated discount rates and growth rates of estimated future cash flows.
With respect to cash flow projections in Australia and overseas, modest growth rates have been
factored into valuation models for developed products over the next five years on the basis of
management's expectations around the Group's continued ability to capture market share from
competitors. Higher growth rates and longer periods of cash flow (up to 10 years) are forecast for
under development and newly developed products.
Refer to Note 13(b) for further details.
Key estimates - share based payments
Equity settled share awards are recognised as an expense based on their fair value at date of grant.
The fair value of equity settled share options is estimated through the use of option valuation
models – which require inputs such as the risk-free interest rate, expected dividends, expected
volatility and the expected option life – and is expensed over the vesting period.
Some of the inputs used, such as the expected option life, are not market observable and are based
on estimates derived from available data, such as employee exercise behaviour. The models utilised,
such as the black scholes option pricing model, are intended to value options traded in active
markets. The share options issued by the Group, however, have a number of features that make
them incomparable to such traded options. Using different input estimates or models could produce
50 | P a g e
A n n u a l R e p o r t
different option values, which would result in the recognition of a higher or lower expense.
Refer to Note 28 for further details.
Key estimates -provisions for expected credit losses
The Group uses a provision matrix to calculate the expected credit loss (ECL) for trade receivables.
The provision rates are based on days past due for groupings of various customer segments that
have similar loss patterns.
The provision matrix is initially based on the Group's historical observed default rates. Additionally,
the Group adjusts the historical credit loss experience with forward looking information.
The amount of the ECL recognised is sensitive to changes in circumstances and of forecast economic
conditions. The Group's historical credit loss experience and forecast of economic conditions may
also not be representative of customer's actual default in the future.
Key estimates - useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation charges
for its property, plant and equipment and finite life intangible assets. The useful lives could change
significantly as a result of technical innovations or some other event. The depreciation and
amortisation charge will increase where the useful lives are less than previously estimated lives, or
technically obsolete or non-strategic assets that have been abandoned or sold will be written off or
written down.
Key judgements - deferred tax assets
Determining income tax provisions involves judgement on the tax treatment of certain transactions.
Deferred tax is recognised on tax losses not yet used and on temporary differences where it is
probable that there will be taxable revenue against which these can be offset. Management has
made judgements as to the probability of future taxable revenues being generated against which tax
losses will be available for offset based on budgets, current and future expected economic
conditions.
Key judgements - capitalisation of development costs
Distinguishing the research and development phases of a new customised software project and
determining whether the recognition requirements for the capitalisation of development costs are
met requires judgement. After capitalisation, management monitors whether the recognition
requirements continue to be met and whether there are any indicators that capitalised costs may be
impaired.
51 | P a g e
A n n u a l R e p o r t
NOTE 5. OPERATING SEGMENTS
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision maker) in assessing performance and
determining the allocation of resources.
The Group operates in a single segment, being the computer technology, software and services
industry with particular emphasis on healthcare and associated professional services. In respect of
geographical segments, the Group does not conduct material activities outside the Australia
geographic area.
NOTE 6. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
2020
$
2019
$
3,612,263
3,273,347
567,145
965,317
824,652
382,910
1,712,194
106,573
5,969,377
5,475,024
5,969,377
5,467,437
-
7,587
5,969,377
5,475,024
2,069,498
1,924,838
3,899,879
3,550,186
5,969,377
5,475,024
Major product lines:
- Recurring software subscriptions
- Expansion revenue and additional usage fees
- Professional services rendered
- Other product revenue
Total revenue
Geographical regions:
- Australia
- Other
Total revenue
Timing of revenue recognition:
- Point in time
- Over time
Total revenue
52 | P a g e
A n n u a l R e p o r t
NOTE 7. FINANCE INCOME AND EXPENSES
(a)
Finance income
Interest income
- Assets measured at amortised cost
Net foreign currency gain on financial assets and liabilities
Total finance income
(b)
Finance expenses
Interest expense on lease liability
Net foreign currency loss on financial assets and liabilities
Other finance expenses
Total finance expenses
2020
$
2019
$
6,290
1
6,291
12,167
-
12,167
16,526
-
93,789
-
632
137,692
110,315
138,324
53 | P a g e
A n n u a l R e p o r t
NOTE 8. EXPENSES
The result for the year includes the following specific expenses:
Employee benefits expense excluding superannuation:
Employee benefits expense excluding superannuation net of capitalised
development costs
Superannuation expense:
Defined contribution superannuation expense
Rental expense on operating leases:
- Minimum lease payments
Share-based payments expense:
- Share-based payments expense
NOTE 9. INCOME TAX EXPENSE
(a)
The major components of tax expense (income) comprise:
2020
$
2019
$
3,177,830
3,334,344
287,543
289,308
-
139,805
32,727
21,757
Current tax
Deferred tax - origination and reversal of temporary differences:
- Decrease/(increase) in deferred tax assets
- Increase/(decrease) in deferred tax liabilities
Total income tax expense
(b)
Reconciliation of income tax to accounting result:
Loss before income tax
Statutory tax rate
Prima facie tax at the statutory rate
Tax effect of amounts which are not deductible/(taxable) in calculating
taxable income:
- Other expenses (non-deductible)
- Entertainment (non-deductible)
- Capital raising costs
- Other deductible expenses
- Tax losses not recognised as a deferred tax asset
- Derecognition of previously recognised tax losses
- Prior period differences (R&D claim)
Income tax expense
2020
$
2019
$
(97,930)
52,814
(57,135)
(26,906)
388,874
(116,625)
(181,971)
325,063
(242,099)
27.50%
(971,730)
27.50%
(66,577)
(267,226)
1,101
3,023
(4,150)
(27,500)
195,220
-
(97,930)
52,340
9,278
-
(90,551)
321,632
299,590
-
3,187
325,063
54 | P a g e
A n n u a l R e p o r t
(c)
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
3,336,075
2,626,184
Potential tax benefit @ 27.5%
917,421
722,201
2020
$
2019
$
The above potential tax benefit for tax losses has not been recognised in the consolidated statement
of financial position. These tax losses can only be utilised in the future if the continuity of ownership
test is passed, or failing that, the same business test is passed.
NOTE 10. CASH AND CASH EQUIVALENTS
Cash on hand
Cash at bank
Short-term deposits
Total cash and cash equivalents
(a)
Reconciliation of cash
Note
2020
$
2019
$
601
665,579
96
601
399,213
404,176
10(a)
666,276
803,990
Cash and cash equivalents reported in the consolidated statement of cash flows are reconciled to the equivalent
items in the consolidated statement of financial position as follows:
Cash and cash equivalents
666,276
10
803,990
Balance as per consolidated statement of cash flows
666,276
803,990
NOTE 11. TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Less: Loss allowance
Other receivables
Total current trade and other receivables
Note
11(a)
2020
$
2019
$
1,333,057
(125,930)
1,207,127
1,841
534,701
(106,899)
427,802
8,323
1,208,968
436,125
55 | P a g e
A n n u a l R e p o r t
The carrying value of trade receivables is considered a reasonable approximation of fair value due to
the short-term nature of the balances.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable
in the financial statements.
(a)
Impairment of receivables
The Group has recognised a loss of $19,031 (2019: $77,339) in profit or loss in respect of loss allowance for the year
ended 30 June 2020. Further $92.868 has been written off as bad debts during the year (2019: $Nil).
The ageing of the receivables and loss allowance provided for above are as follows:
30 June 2020
Within
Maturity
(0-30 days)
31-60 days
61-90 days 90-120 days >120 days
Total
Expected loss rate (%)
4.22
12.76
18.15
25.83
36.08
Gross carrying amount
($)
1,045,323
45,170
43,774
35,508
163,282
1,333,057
ECL provision ($)
44,138
5,765
7,944
9,173
58,910
125,930
30 June 2019
Within
Maturity
(0-30 days)
31-60 days
61-90 days 90-120 days >120 days
Total
Expected loss rate (%)
5.03
66.89
0.21
2.64
38.28
Gross carrying amount
($)
ECL provision ($)
209,052
10,515
15,776
10,553
23,920
66,444
219,509
50
1,754
84,027
534,701
106,899
Reconciliation of changes in the loss allowance of receivables is as follows:
Balance at beginning of the year
Additional loss allowances recognised
Balance at end of the year
2020
$
2019
$
106,899
19,031
29,560
77,339
125,930
106,899
56 | P a g e
A n n u a l R e p o r t
NOTE 12. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Total plant and equipment
Leasehold Improvements
At cost
Accumulated amortisation
Total leasehold improvements
Total property, plant and equipment
2020 $
2019 $
233,633
232,844
(220,324)
(208,642)
13,309
24,202
178,787
178,787
(157,140)
(148,145)
21,647
34,956
30,642
54,844
(a) Movements in carrying amounts of property, plant and equipment
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end
of the current and previous financial year:
Year ended 30 June 2020
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Balance at the end of the year
Year ended 30 June 2019
Balance at the beginning of year
Depreciation expense
Balance at the end of the year
NOTE 13. INTANGIBLE ASSETS
Developed products
Cost *
Accumulated amortisation
Accumulated impairment
Net carrying value
Products under development
Cost
Net carrying value
Total Intangibles
Plant and
Equipment
$
Leasehold
Improvements
$
Total
$
24,202
30,642
54,844
789
-
-
-
789
-
(11,682)
(8,995)
(20,677)
13,309
21,647
34,956
44,672
(20,470)
43,022
(12,380)
87,694
(32,850)
24,202
30,642
54,844
2020 $
2019 $
6,025,285
3,998,111
(1,780,277)
(1,378,153)
(917,381)
(917,381)
3,327,627
1,702,577
612,062
2,387,248
612,062
2,387,248
3,939,689
4,089,825
57 | P a g e
A n n u a l R e p o r t
This represents costs arising from the development phase of internal projects. Development costs
*
incorporate directly attributable employee benefit expenses, fees to register a legal right and other direct
material and services costs to develop the project.
Developed products have finite useful lives of 10 years which are amortised on a straight-line basis
over their effective life. The current amortisation charges for intangible assets have been separately
presented as amortisation expense in the consolidated statement of profit or loss and other
comprehensive income.
Movement in the carrying amounts for each class of intangible assets between the beginning and the
end of the current and previous financial year:
Year ended 30 June 2020
Balance at the beginning of the year
Additions
Transfers in/(out)
Amortisation expense
R&D tax offset allocated
Closing value at 30 June 2020
Year ended 30 June 2019
Balance at the beginning of the year
Additions
Transfers in/(out)
Amortisation expense
R&D tax offset allocated
Products under
development
$
Developed
products
$
Total
$
2,387,248
1,702,577
4,089,825
612,062
(2,387,248)
-
-
86,006
2,387,248
(402,124)
(446,080)
698,068
-
(402,124)
(446,080)
612,062
3,327,627
3,939,689
3,371,179
959,880
(1,153,907)
-
(789,904)
738,999
4,110,178
-
959,880
1,153,907
(190,329)
-
-
(190,329)
(789,904)
Closing value at 30 June 2019
2,387,248
1,702,577
4,089,825
(b)
Impairment testing of products under development
Irrespective of whether there is any indication of impairment, the Group will test an intangible asset
with an indefinite useful life or an intangible asset not yet available for use for impairment annually
by comparing its carrying amount with its recoverable amount. This impairment test is performed as
at the end of the financial period. The impairment testing had been performed based on the cash
generating units identified by software product lines.
The recoverable amount of each cash generating unit above is determined based on value in use
calculations. Value in use is calculated based on the present value of cash flow projections over a 5-
year period, except for products which are in the early stages of its lifecycle, where an extended cash
flow projection over a maximum 10-year period is applied instead. The cash flows are discounted
using a pre-tax discount rate of 14.75% (2019: 20%). Further, the estimation of terminal values for
58 | P a g e
A n n u a l R e p o r t
each product has been excluded from the value in use calculations on the basis that cash flows are
not expected to continue into perpetuity and the useful life of intangible assets is estimated to be 10
years. The following key assumptions were used in the value in use calculations:
• Growth rates (sales) - existing products - 5% to 30% growth (2019: 5%)
• Growth rates (sales) - new products - 50% to 250% growth (2019: 10% 487%)
Management has based the value-in-use calculations on budgets for each type of product. Costs are
calculated taking into account historical gross margins as well as estimated weighted average
inflation rates over the period, which are consistent with inflation rates applicable to the locations in
which the Group operates.
NOTE 14. TAX ASSETS AND LIABILITIES
(a)
Current Tax Asset
CURRENT
Tax receivable
Total current tax asset
(b)
Deferred Tax Assets
Deferred tax assets
Provisions - employee benefits
Loss allowance
Deferred tax assets attributable to tax losses
Accruals
Contract liabilities
Balance at 30 June 2019
Provisions - make good
Provisions - employee benefits
Loss allowance
Lease calculations
Accruals
Contract liabilities
Balance at 30 June 2020
2020
$
2019
$
97,930
97,930
-
-
Opening
Balance
$
Charged to
Income
$
Closing
Balance
$
177,396
(5,546)
171,850
8,868
20,529
29,397
299,590
(299,590)
-
31,965
(1,363)
30,602
205,720
(102,904)
102,816
723,539
(388,874)
334,665
-
13,750
13,750
171,850
(11,786)
160,064
29,397
-
30,602
5,234
19,421
52,198
102,816
(21,683)
34,631
19,421
82,800
81,133
334,665
57,134
391,799
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future
taxable income, based on the Group's forecast of future operating results which is adjusted for significant non-taxable
income and expenses and specific limits to the use of any unused tax loss or credit.
59 | P a g e
A n n u a l R e p o r t
(c)
Deferred Tax Liabilities
Deferred tax liabilities
Prepayments
Intangible assets
Balance at 30 June 2019
Prepayments
Intangible assets
Balance at 30 June 2020
Opening
Balance
$
Charged to
Income
$
Closing
Balance
$
19,557
(2,584)
16,973
1,238,228
(114,041) 1,124,187
1,257,785
(116,625) 1,141,160
16,973
14,381
31,354
1,124,187
(41,287) 1,082,900
1,141,160
(26,906) 1,114,254
NOTE 15. LEASES
The Group has applied AASB 16 using the modified retrospective (cumulative catch-up) method and
therefore the comparative information has not been restated and continues to be reported under
AASB 117 and related Interpretations.
The Group as a lessee
The Group has leases over a range of assets including buildings and carpark (office premises), and
office equipment.
Information relating to the leases in place and associated balances and transactions are provided
below.
Terms and conditions of leases
Building and carpark (office premises)
The Group leases an office space plus 2 carpark lots for their corporate office. The lease is for a term
of 7 years commencing 14 July 2014 and includes a renewal option to allow the Group to renew for
an additional term of 5 years to 13 July 2026.
The corporate office and carpark leases contain an annual pricing mechanism based on fixed rate
movements of 3.5% per annum at each anniversary of the lease inception.
Office equipment
The Group has an agreement for the lease of a photocopier for a term of 5 years commencing 27
September 2017.
60 | P a g e
A n n u a l R e p o r t
Right-of-use assets
Year ended 30 June 2020
Adjustments on adoption of AASB 16 on
1 July 2019
Add: Provision for make good
Depreciation charge
Buildings &
Carpark $
Office
Equipment $
Make Good
on Office
Premises $
Total $
341,611
8,661
-
350,272
-
-
50,000
50,000
(170,805)
(2,665)
(25,000)
(198,470)
Balance at end of year
170,806
5,996
25,000
201,802
Lease liabilities
The maturity analysis of lease liabilities based on contractual undiscounted cash flows is shown in the table below:
< 1 year
$
1 - 5 years
$
> 5 years
$
Total
undiscounted
lease liabilities
$
Lease liabilities
included in this
Consolidated
Statement Of
Financial Position
$
2020
Lease liabilities
187,845
3,675
-
191,520
185,206
Extension options
The building and carpark lease contains an extension option which allows the Group to extend the
lease term by another 5 years to 13 July 2026.
The Group includes options in the leases to provide flexibility and certainty to the Group operations
and reduce costs of moving premises and the extension options are at the Group's discretion.
At commencement date and each subsequent reporting date, the Group assesses where it is
reasonably certain that the extension options will be exercised.
There are $1,029,242 in potential future lease payments which are not included in lease liabilities as
the Group has assessed that the exercise of the option is not reasonably certain.
61 | P a g e
A n n u a l R e p o r t
Consolidated Statement of Profit or Loss and Other Comprehensive Income
The amounts recognised in the consolidated statement of profit or loss and other comprehensive income relating to
leases where the Group is a lessee are shown below:
Interest expense on lease liabilities
Depreciation of right-of-use assets
Consolidated Statement of Cash Flows
Total cash outflow for leases
NOTE 16. OTHER ASSETS
CURRENT
Prepayments
Total current other assets
NON-CURRENT
Security bond - office lease
Total non-current other assets
NOTE 17. TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Sundry payables and accrued expenses
Total current trade and other payables
2020 $
(16,526)
(198,470)
(214,996)
2020 $
(144,373)
2020
$
2019
$
114,009
61,716
114,009
61,716
116,350
113,490
116,350
113,490
2020
$
2019
$
673,882
385,630
657,461
1,128,800
1,059,512
1,786,261
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30
days. The carrying value of trade and other payables is considered a reasonable approximation of fair
value due to the short-term nature of the balances.
62 | P a g e
A n n u a l R e p o r t
NOTE 18. CONTRACT LIABILITIES
CURRENT
Contract liabilities
Total current contract liabilities
NON-CURRENT
Contract liabilities
Total non-current contract liabilities
2020
$
2019
$
2,622,080
1,621,494
2,622,080
1,621,494
218,604
280,406
218,604
280,406
Contract liabilities comprises annual licence and maintenance in advance fees for the right to use our
software, minor fixes, rights to updated versions and limited held line support. These are invoiced up
to 12 months in advance. The revenue is recognised monthly as the services are provided to clients.
Also included in non-current contract liabilities are amounts related to initial once off licence fees
which are recognised monthly over the life of the respective contracts.
Reconciliation of contract liabilities
The following table shows the value of revenue recognised in 2020 that relates to contract liabilities
recognised at 2019 and the value of revenue recognised that relates to performance obligations that
were also satisfied in the prior year.
Revenue recognised that was included in the contract liability balance at
the beginning of the year
Annual licence and maintenance in advance fees
Less: Balance of initial licence fees not yet recognised
Revenue recognised from performance obligations satisfied in previous
years
Annual licence and maintenance in advance fees
2020
$
2019
$
1,901,900
1,604,023
(295,029)
(371,455)
1,606,871
1,232,568
-
-
-
-
63 | P a g e
A n n u a l R e p o r t
NOTE 19. BORROWINGS
CURRENT
Unsecured liabilities:
Supplier funding loan
Secured liabilities:
Other loans and borrowings
Total current borrowings
NON-CURRENT
Secured liabilities:
Other loans and borrowings
Total non-current borrowings
Total borrowings
(a)
Other loans and borrowings
Note
2020
$
2019
$
26,090
26,090
-
-
19(a)
334,021
559,983
334,021
559,983
360,111
559,983
19(a)
271,098
605,658
271,098
605,658
271,098
605,658
631,209
1,165,641
Interest bearing liabilities are provided to the Group on terms of 5 years and an average effective interest rate of 8.59%.
In relation to the above loans, the lenders have liens over approximately $70,000 of office equipment which can be
claimed in the event of default.
Refer to Note 29 for further information on financial instruments.
NOTE 20. PROVISIONS
CURRENT
Lease make good provision
Total current provisions
2020 $
2019 $
50,000
50,000
-
-
This relates to a provision for the estimated costs that may be incurred to make good the office premises upon completion or
termination of the lease.
NOTE 21. EMPLOYEE BENEFITS
CURRENT
Long service leave
Provision for employee benefits
Total current employee benefits
NON-CURRENT
Long service leave
Total non-current employee benefits
64 | P a g e
A n n u a l R e p o r t
2020
$
2019
$
318,611
263,442
297,722
293,600
582,053
591,322
39,669
33,588
39,669
33,588
NOTE 22. ISSUED CAPITAL
42,098,320 (2019: 33,678,592) fully paid Ordinary shares
Share issue costs
Total issued capital
(a)
Ordinary shares
At the beginning of the reporting period
Shares issued during the year
- Shares issued for the purchase of the medical software assets of Abaki Pty
Ltd at 30 cents per share (22 January 2019)
- Shares issued pursuant to completion of rights issue at 12 cents per share
(11 November 2019)
At the end of the reporting period
2020 $
2019 $
21,820,987
20,961,242
(75,461)
-
21,745,526
20,961,242
2020
No.
2019
No.
33,678,592
33,470,259
-
208,333
8,419,728
-
42,098,320
33,678,592
The holders of ordinary shares are entitled to participate in dividends and the proceeds on winding up of the
Company. On a show of hands at meetings of the Company, each holder of ordinary shares has one vote in
person or by proxy, and upon a poll each share is entitled to one vote.
The Company does not have authorised capital or par value in respect of its shares.
(b)
Capital Management
The key objectives of the Group when managing capital is to safeguard its ability to continue as a going
concern, provide returns for shareholders and benefits to stakeholders, and to maintain an optimal capital
structure to reduce the cost of capital.
The Group defines capital as its equity and net debt. Net debt is calculated as total borrowings less cash and
cash equivalents.
The Group manages its capital structure and makes funding decisions based on the prevailing economic environment and
has a number of tools available to manage capital risk. These include maintaining a diversified debt portfolio, the ability
to adjust the size and timing of dividends paid to shareholders and the issue of new shares.
The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current company's share price at the time of the investment. The Group is not actively pursuing additional
investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
There has been no change to capital risk management policies during the year.
65 | P a g e
A n n u a l R e p o r t
NOTE 23. RESERVES
Foreign currency translation reserve
Opening balance
Closing balance
Option reserve
Opening balance
Share based payment expense
Options issued as part of rights issue
Lapsed employee share options
Previously lapsed employee share options
Previously exercised options
Closing balance
Total reserves
(a)
Foreign currency translation reserve
2020
$
2019
$
24,234
24,234
24,234
24,234
149,977
32,727
175,973
(60,792)
(4,629)
(25,350)
128,220
21,757
-
-
-
-
267,906
149,977
292,140
174,211
Exchange differences arising on translation of the foreign controlled entity are recognised in other
comprehensive income - foreign currency translation reserve. The cumulative amount is reclassified to profit
or loss when the net investment is disposed of.
(b)
Share option reserve
This reserve records the cumulative value of employee or other services received for the issue of share
options. When the option is exercised the amount in the share option reserve is transferred to share capital.
NOTE 24. ACCUMULATED LOSSES
Accumulated losses at the beginning of the financial year
Adjustment due to adoption of AASB 16
Adjusted accumulated losses at the beginning of the financial year
Net profit/(loss) for the year
Lapsed employee share options
Accumulated losses at end of the financial year
2020 $
2019 $
(21,860,746)
(20,563,953)
86,903
-
(21,773,843)
(60,128)
(20,563,953)
(1,296,793)
65,421
-
(21,768,550)
(21,860,746)
NOTE 25. NON-CONTROLLING INTEREST
The Company has a 93.8% (2019: 93.8%) interest in the subsidiary, Working Systems Solutions (Malaysia) Sdn Bhd.
Retained earnings attributable to the non-controlling interest are as follows:
Retained profits
Total non-controlling interest
66 | P a g e
A n n u a l R e p o r t
2020 $
2019 $
76
76
76
76
NOTE 26. CASH FLOW INFORMATION
Reconciliation of result for the year to cashflows from operating activities
Net loss for the year
Cash flows excluded from profit attributable to operating activities
- interest on lease liability
Non-cash flows in profit:
- amortisation
- depreciation
- impairment of receivables
- share based payment expense
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in other assets
- (increase)/decrease in tax receivable
- (increase)/decrease in deferred tax asset
- increase/(decrease) in contract liabilities
- increase/(decrease) in trade and other payables
- increase/(decrease) in deferred tax liability
- increase/(decrease) in employee benefits
Net cash provided by/ (used in) operating activities
NOTE 27. EARNINGS PER SHARE
(a) Reconciliation of earnings to profit or loss from continuing operations
2020
$
2019
$
(60,128)
(1,296,793)
7,254
-
402,124
219,147
19,031
32,727
(791,874)
(55,153)
(97,930)
(57,134)
938,784
(667,793)
190,329
32,850
77,338
21,757
183,012
12,545
-
388,873
297,877
518,481
(26,906)
(116,625)
(3,188)
33,588
(141,039)
343,232
2020
$
2019
$
Net profit/(loss) for the year attributable to the owners of the parent entity
(60,128)
(1,296,793)
Earnings used to calculate basic EPS from continuing operations
(60,128)
(1,296,793)
Earnings used in the calculation of dilutive EPS from continuing operations
(60,128)
(1,296,793)
(b) Earnings used to calculate overall earnings per share
Earnings used to calculate overall earnings per share
2020
$
2019
$
(60,128)
(1,296,793)
(c) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
2020
No.
2019
No.
Weighted average number of ordinary shares outstanding during the year used in
calculating basic EPS
39,038,692
33,560,442
Weighted average number of ordinary shares outstanding during the year used in
calculating dilutive EPS
39,038,692
33,560,442
67 | P a g e
A n n u a l R e p o r t
As the Group generated losses in the financial years ended 30 June 2020 and 30 June 2019, options on issue would
decrease loss per share and are therefore anti-dilutive. Accordingly, issued options are excluded from the
calculations of diluted earnings per share.
NOTE 28. SHARE BASED PAYMENTS
The Company has adopted two incentive plans to enable employees and directors to participate in
ownership of Global Health Limited. The directors have determined that the total number of
securities which may be issued pursuant to these plans in any five-year period must not exceed 5%
of the total number of securities on offer from time to time. This limitation only applies to new offers
of securities by the Company and not to existing securities purchased on market under the Exempt
Employee Share Plan. Details of the plans are outlined below.
Employee Share Option Plan (ESOP)
The Company operates the Employee Share Option Plan (ESOP). This plan allows the Company to
grant options over shares to key executives, directors and other employees as selected by the
Directors to enable them to participate in the future growth and profitability of the Company, to
provide an incentive and reward for their contributions and to attract and maintain personnel. The
options are issued at no consideration. The exercise price of options is based on the weighted
average market price of the Company's shares during the five trading days up to and including the
date of grant of the option or such other date or period as the Directors consider appropriate.
Options vest one third each year over three years from the grant date and have an expiry date of five
years from the grant date.
The options issued under the ESOP are not quoted on the Australian Securities Exchange ("ASX").
Employee share options are issued under the terms and conditions of the Plan as disclosed on the
Company's website. Should an employee cease employment before the completion of two years
after the issue of any employee option, the option issued automatically lapses, except where
cessation is due to death or total permanent disability, retirement, redundancy or any other reason,
based on which the directors believe is fair and reasonable to warrant the employee maintaining
their right to exercise the option, in which case they will have six (6) months to exercise the options.
Exempt Employee Share Plan (EESP)
A plan under which shares may be issued by the Company to employees for no cash consideration
was adopted when the Company was listed. All directors, officers or employees who are from time
to time engaged in full or part time work for the Company are eligible to participate in the Exempt
Employee Share Plan (EESP).
Under the plan, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares
in the Company for no cash consideration. The market value of the shares will be measured as the
market price quoted for buyers of the Company shares at the close of trading on the day
immediately preceding the date of the offer by the Directors as published by the ASX.
68 | P a g e
A n n u a l R e p o r t
Offers under the plan are at the discretion of the Company and the shares cannot be transferred or
assigned by the holder within the period of three years from the date of issue or transfer to the
holder unless the holder ceases employment with the Company earlier than that date except that
the holder may at any time transfer all or any of his shares to his spouse or to a Company in which
the majority of the issued shares are beneficially owned by him or to any trust that the holder is a
beneficiary of.
A summary of the Company options granted under the ESOP is as follows:
2020
Grant Date
Expiry Date
Exercise
price
Start of
the year
Granted
during the
year
Exercised
during the
year
Expired/
Forfeited
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
10 June 2015 10 June 2020
0.65 150,000
19 December 2016
30 November
2019
19 December 2016
30 November
2021
12 December 2019
11 December
2024
0.75 400,000
0.75 600,000
-
-
-
0.25
- 1,095,000
- (150,000)
- (400,000)
-
-
-
-
-
-
- 600,000
480,000
- 1,095,000
-
1,150,000 1,095,000
- (550,000) 1,695,000
480,000
Exercise
price
Start of
the year
Granted
during the
year
Exercised
during the
year
Expired/
Forfeited
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
2019
Grant Date
19 December 2013
Expiry Date
19 December
2018
25 May 2014 26 May 2019
0.75 300,000
10 June 2015 10 June 2020
0.65 150,000
0.65 610,000
19 December 2016
30 November
2019
19 December 2016
30 November
2021
0.75 400,000
0.75 600,000
2,060,000
-
-
-
-
-
-
- (610,000)
- (300,000)
-
-
-
-
-
-
-
- 150,000
150,000
- 400,000
400,000
- 600,000
360,000
- (910,000) 1,150,000
910,000
The weighted average remaining contractual life of options outstanding at year end was 3.38 years
(2019: 1.2 years). The weighted average exercise price of outstanding shares at the end of the
reporting period was $0.43 (2019: $0.73).
During the year, NIL shares were issued under the EESP (2019: NIL).
69 | P a g e
A n n u a l R e p o r t
NOTE 29. FINANCIAL RISK MANAGEMENT
The Group's financial instruments consist primarily of cash and cash equivalents, trade receivables,
trade payables and borrowings. The Group does not have significant risk exposure to financial
instruments and as such risk exposures are generally managed as part of the Group's overall
strategic and operational risk management strategies. Consequently, there is currently no specific
risk mitigating techniques employed. However, as the Group expands both domestically and
internationally, management continues to monitor its exposure and will implement suitable policies
when deemed necessary.
The financial instruments held by the Group are as follows:
Financial assets
Held at amortised cost
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Financial liabilities measured at amortised cost
Trade and other payables
Borrowings
Total financial liabilities
Credit risk
Note
2020 $
2019 $
10
11
666,276
803,990
1,208,968
436,125
1,875,244
1,240,115
17
19
1,059,512
1,786,261
631,209
1,165,641
1,690,721
2,951,902
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
a financial loss to the Group.
Credit risk arises from cash and deposits, trade receivables and loans receivable as well as from the
parent's potential obligations under the indemnity guarantee provided to banks. The risk is largely
managed through a policy of only dealing with creditworthy counterparties. Periodic assessments of
debtor balances are undertaken and provisions for impairment are recognised where appropriate.
Maximum exposure to credit risk without taking account of any collateral held or other credit
enhancements arising from the Group's recognised financial assets is considered to be equivalent to
their carrying values at reporting date. Maximum exposures arising from the indemnity guarantee
are as disclosed at Note 33 Contingencies and Guarantees. The Group has no significant
concentration of credit risk with respect to any single counterparty or group of counterparties.
The majority of customers have long standing business relationships with the Group and their credit
quality with respect to trade receivables is assessed as high.
All cash and cash equivalents are held with large reputable financial institutions within Australia,
Malaysia and Singapore and therefore credit risk is considered very low.
70 | P a g e
A n n u a l R e p o r t
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and
principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due.
Liquidity risk is managed through monitoring current funds available, undrawn facilities and
anticipated recovery of receivables and comparing with future funding requirements contained in
management budgets and forecasts. In this regard, the timing of expected settlement of liabilities is
also analysed so as to minimise risk with respect to obligations becoming past due. This is consistent
with the prior year.
The timing of cash flows presented in the table to settle financial liabilities reflects the earliest
contractual settlement dates and does not reflect management's expectations that banking facilities
will be rolled forward. The amounts disclosed in the table are the undiscounted contracted cash
flows and therefore the balances in the table may not equal the balances in the consolidated
statement of financial position due to the effect of discounting.
The table below reflects the undiscounted contractual maturity analysis for financial liabilities
(excluding lease liabilities for the current year refer to Note 15).
71 | P a g e
A n n u a l R e p o r t
Financial liability maturity analysis Non derivative
Weighted average
Interest rate
2020
%
2019
%
Within 1 Year
1 to 5 Years
Over 5 Years
Total
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
Financial liabilities due for payment
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Borrowings
Total contractual outflows
-
- 1,059,512 1,914,679
-
-
8.59
8.60
360,111
632,241
271,098
684,458
1,419,623 2,546,920
271,098
684,458
-
-
-
- 1,059,512 1,914,679
-
631,209 1,316,699
- 1,690,721 3,231,378
The timing of expected outflows is not expected to be materially different from contractual cashflows.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
(i) Foreign exchange risk
The Group controls subsidiaries in Malaysia and Singapore and participates in a joint venture in Malaysia. The Group is therefore exposed to
foreign exchange risk arising from exposure to currencies of these respective countries. Such risk arises from future transactions and assets
and liabilities that are denominated in functional currencies other than the Australian dollar. Management does not engage in an active
program of hedging exposure to foreign currencies.
At present, the Group's foreign currency exposure is not considered to be material.
Foreign currency denominated financial assets and liabilities, translated into Australian Dollars at the closing rate, are as follows:
72 | P a g e
A n n u a l R e p o r t
2020
Financial assets
Financial liabilities
Short-term exposure
2019
Financial assets
Financial liabilities
Short-term exposure
MYR $
-
-
-
48,510
-
48,510
(ii) Interest rate risk
The Group's main interest rate risk arises from long-term borrowings. Borrowings obtained at variable rates expose
the Group to interest rate risk. Borrowings obtained at fixed rates expose the Group to fair value interest rate risk.
(iii) Price risk
The Group is not exposed to any significant price risk.
NOTE 30. KEY MANAGEMENT PERSONNEL REMUNERATION
Any person(s) having authority and responsibility for planning, directing and controlling the activities
of the entity, directly or indirectly, including any director (whether executive or otherwise) of that
entity are considered key management personnel.
The names of directors who have held office during the financial year are outlined in the Directors'
Report.
Other key management personnel
The following persons are included as other key management personnel:
• Mr D Groenveld (Principal Architect)
• Mr K Jayesuria (Chief Operating Officer)
• Mr K Cherian (Manager, Product Portfolio)
• Ms D Hudson (Manager, Customer Success Group)
Refer to the remuneration report contained in the Directors' Report for details of the remuneration
paid or payable to each member of the KMP for the year ended 30 June 2020.
Key management personnel remuneration included within employee expenses for the year is shown below:
Short-term employee benefits
Long-term benefits
Post-employment benefits
Share-based payments
Total key management personnel remuneration
2020 $
2019 $
1,070,580
730,996
13,911
96,126
19,796
9,670
64,870
21,758
1,200,413
827,294
73 | P a g e
A n n u a l R e p o r t
NOTE 31. RELATED PARTIES
(a)
The Group's main related parties are as follows:
Global Health Limited is the parent entity.
Interests in subsidiaries are set out in Note 35.
Disclosures relating to key management personnel are set out in Note 30 and the remuneration report
included in the directors' report.
Other related parties include close family members of key management personnel and entities that are
controlled or significantly influenced by those key management personnel or their close family members.
(b)
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
There were also no trade receivables from or trade payables to related parties as at the current and previous
reporting date.
(c)
Loans to/from related parties
The following balance is outstanding at the reporting date in relation to loans with related parties:
Loans from KMP *
2020
2019
Opening
balance
$
Closing
balance
$
75,390
61,794
75,390
75,390
* This relates to wages in arrears payable to the Managing Director, Mathew Cherian. This amount is
interest-free and unsecured.
All transactions were made on normal commercial terms and conditions and at market rates, except where
otherwise stated.
NOTE 32. AUDITORS' REMUNERATION
Remuneration of the auditor for:
- auditing the financial statements (HLB Mann Judd)
- auditing the financial statements (Grant Thornton Audit Pty Ltd)
- reviewing the financial statements (Grant Thornton Audit Pty Ltd)
Remuneration of other auditors of subsidiaries for:
- additional audit fees for audit of June 2018 annual financial statements
- Shine Wing Australia
Total auditors' remuneration
2020 $
2019 $
43,000
-
42,500
-
61,000
28,000
-
9,000
85,500
98,000
74 | P a g e
A n n u a l R e p o r t
NOTE 33. CONTINGENCIES AND GUARANTEES
Guarantees
The parent has provided a cash security bond in favour of the property owner
of the parent entity's leased office premises
Total guarantees
Contingencies
2020
$
2019
$
102,187
102,187
102,187
102,187
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2020 (30 June 2019: None).
NOTE 34. COMMITMENTS
Operating Leases
Minimum lease payments under non-cancellable operating leases:
- not later than one year
- between one year and five years
Total minimum lease payments
2020
$
2019
$
-
-
-
228,708
236,713
465,421
Operating lease commitments in the prior year comprised contracted amounts for office rental under non-cancellable
operating leases expiring within 5 years.
NOTE 35. INTERESTS IN SUBSIDIARIES
Composition of the Group
Principal place of
business / Country of
Incorporation
Percentage
Owned (%) *
2020
Percentage
Owned (%) *
2019
Subsidiaries:
Global Health (Australia) Sdn Bhd
Working Systems Solutions (Malaysia) Sdn Bhd
Working Systems Solutions Pty Ltd
Uni U International Pty Ltd
Working Systems Solutions (Singapore) Pte Ltd
Bourke Johnston Systems Pty Ltd
Working Systems Software Pty Ltd
Statewide Unit Trust
Malaysia
Malaysia
Australia
Australia
Singapore
Australia
Australia
Australia
100
94
100
100
100
100
100
100
100
94
100
100
100
100
100
100
*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.
75 | P a g e
A n n u a l R e p o r t
NOTE 36. PARENT ENTITY
The following information has been extracted from the books and records of the parent, Global
Health Limited and has been prepared in accordance with Accounting Standards.
The financial information for the parent entity, Global Health Limited has been prepared on the
same basis as the consolidated financial statements except as disclosed below.
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the
consolidated financial statements of the parent entity. Dividends received from associates are
recognised in the parent entity profit or loss, rather than being deducted from the carrying amount
of these investments.
Tax consolidation legislation
Global Health Limited and its wholly owned Australian subsidiaries have formed an income tax
consolidated group.
Each entity in the tax consolidated group accounts for their own current and deferred tax amounts.
These tax amounts are measured using the ‘stand alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in
the subsidiaries are immediately transferred to the parent entity.
The tax consolidated group has entered into a tax funding agreement whereby each entity within the
group contributes to the income tax payable by the Group in proportion to their contribution to the
Group’s taxable income. Differences between the amounts of net tax assets and liabilities
derecognised and the net amounts recognised pursuant to the funding agreement are recognised as
either a contribution by, or distribution to the head entity.
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
76 | P a g e
A n n u a l R e p o r t
2020
$
2019
$
2,087,182
1,253,321
4,684,596
4,592,824
6,771,778
5,846,145
4,845,689
4,559,060
1,647,155
2,060,812
6,492,844
6,619,872
21,745,526
20,961,242
Accumulated losses
Reserves
Total Equity
Statement of Profit or Loss and Other Comprehensive Income
Net profit/(loss) for the year
Other comprehensive income
Total comprehensive loss
(21,758,810) (21,909,181)
292,216
174,212
278,932
(773,727)
(1,877)
(1,254,058)
-
-
(1,877)
(1,254,058)
Guarantees
The parent entity has not entered into a Deed of Cross Guarantee with the effect that the Company
guarantees debts in respect of its subsidiaries as at 30 June 2020 or 30 June 2019.
Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 June 2020 or 30 June 2019, except as
stated elsewhere in these financial statements.
Contractual commitments
The parent entity did not have any commitments as at 30 June 2020 or 30 June 2019.
NOTE 37. IMPACT OF COVID-19
In the week commencing 16 March 2020, the Australian Government, together with the State and
Territory Premiers, announced a series of measures aimed at preventing the spread of COVID-19
which had the effect of impacting the Australian economy (i.e. impact on supply chain, customers,
availability of finance, consumer confidence, etc).
In addressing and implementing the necessary changes to ensure that the Group complies with the
measures, the Executive and Directors have implemented, amongst others, the following:
• All staff were encouraged to work from home with effect from 17 March 2020 until further
notice and were guided by a preparedness plan that was circulated to all staff.
• Members of staff were provided with relevant training on relevant applications to facilitate a
smooth transition to working from home.
• Board meetings were conducted on demand and at least fortnightly to review and monitor
the impact of COVID-19 on the business.
Management is continually identifying and quantifying the possible impacts associated with the
implementation of COVID-19 measures and have estimated, with some degree of certainty, the
resulting impact (financial and operational) which this might have on the Group's future results and
financial position. The main impacts include:
77 | P a g e
A n n u a l R e p o r t
• As a result of majority of the staff working from home, the training plan designed for new
staff and resellers was impacted due to the reduced accessibility to more experienced staff
members. This had on short-term negative impact on the quality of customer support that is
now rectified with the assignment of product experts to act as mentors in order to fast track
the dissemination of knowledge required to provide appropriate support to customers.
• Several projects scheduled for contract finalisation and implementation have been delayed
due to the inability to conduct workshops, joint planning, training, etc. This has had some
impact on the revenue to budget comparison, which was subsequently minimised by the
reduction of planned research and development and 3 staff redundancies (implemented
before the JobKeeper scheme was provided by the Government).
There are currently no known additional impacts on the Group from the recent Stage 3 (July 2020)
and currently, Stage 4 (August 2020) lockdowns in metropolitan Melbourne other then there being
some continued delays in the finalisation and implementation of projects.
NOTE 38. EVENTS OCCURRING AFTER THE REPORTING DATE
The consolidated financial report was authorised for issue on 31 August 2020 by the board of
directors.
The COVID-19 pandemic has created unprecented economic uncertainty. Actual economic events
and conditions in the future may be materially different from those estimated by the Group at the
reporting date. As responses by the government continue to evolve, management recognises that it
is difficult to reliably estimate with any degree of certainty the potential impact of the pandemic
after the reporting date on the Group's operations, its future results and financial position. The state
of emergency in Victoria was extended on 16 August 2020 until 13 September 2020 and the state of
disaster is still in place. Refer to Note 37 for further information regarding the impact of COVID-19 on
the Group.
No matters or circumstances have arisen since the end of the financial year which significantly
affected or could significantly affect the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
NOTE 39. STATUTORY INFORMATION
The registered office and principal place of business of the Company is:
Global Health Limited
Level 2, 607 Bourke Street
Melbourne Victoria 3000
78 | P a g e
A n n u a l R e p o r t
11. DIRECTORS’ DECLARATION
The directors of the Company declare that:
1.
2.
3.
the consolidated financial statements and notes for the year ended 30 June 2020 are in
accordance with the Corporations Act 2001 and:
a. comply with Accounting Standards, which, as stated in basis of preparation Note 1 to
the consolidated financial statements, constitutes explicit and unreserved compliance
with International Financial Reporting Standards (IFRS); and
b. give a true and fair view of the financial position and performance of the consolidated
group;
the Chief Executive Officer and Chief Finance Officer have given the declarations required
by Section 295A that:
a. the financial records of the Company for the financial year have been properly
maintained in accordance with section 286 of the Corporations Act 2001;
b. the consolidated financial statements and notes for the financial year comply with the
Accounting Standards; and
c. the consolidated financial statements and notes for the financial year give a true and
fair view.
in the directors' opinion, there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they become due and payable, based on the factors
outlined in Note 3(t) of the financial statements.
This declaration is made in accordance with a resolution of the Board of Directors.
Steven Leigh Pynt
Non-Executive Chairman
Dated this 31st day of August 2020
79 | P a g e
A n n u a l R e p o r t
12. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL HEALTH
LIMITED
80 | P a g e
A n n u a l R e p o r t
81 | P a g e
A n n u a l R e p o r t
82 | P a g e
A n n u a l R e p o r t
83 | P a g e
A n n u a l R e p o r t
84 | P a g e
A n n u a l R e p o r t
13. ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
For the Year Ended 30 June 2020
ASX Additional Information
Additional information required by the ASX Listing Rules and not disclosed elsewhere in this report is
set out below. This information is effective as at 11 August 2020.
Substantial shareholders
The number of substantial shareholders and their associates are set out below:
Shareholders
Mathew Cherian
Number of shares
23,376,619
Voting rights
Ordinary Shares
On a show of hands, every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
Options
No voting rights.
Distribution of equity security holders
Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,000 and over
There were 52 holders of less than a marketable parcel of ordinary shares.
Ordinary shares
Shares
Options
39
140
75
98
33
385
25
24
7
29
11
96
85 | P a g e
A n n u a l R e p o r t
Twenty largest shareholders
Micron Holdings Pty Ltd (Cherian Family A/C)
Micron Holdings Pty Ltd (Micron Holdings P/L S/F A/C)
Mr Paul McLaren
Mrs Elizabeth May Priscilla Thomas
Connaught Consultants (Finance) Pty Ltd (Super Fund A/C)
Alumootil Mathew Cherian
Mr Andrew Charles Gracey
Ms Serene Lim & Mr Nicholas Russell Ward (Serene Lim Superfund A/C)
Triglobal Management Limited
B&R James Investments Pty Limited (James Superannuation A/C)
Dr Russell Kay Hancock
Dr Serene Lim (Serene Lim Family A/C)
Dr David Leroy Boyles
Annex Partners Pty Ltd
Roxanne Investments Pty Ltd
Emerald Shares Pty Limited (Emerald Unit A/C)
Mr Michael Murray
Asket Pty Ltd (S L Pynt Super Fund A/C)
Damon Groenveld
Mr Rajiv Paramanathan
Mr Brendan Thomas Birthistle
Ordinary shares
Number held
% of issued
shares
17,050,324
5,388,795
1,927,745
1,913,378
1,000,500
937,500
900,000
770,000
700,000
670,000
600,000
525,000
500,000
500,000
424,481
346,541
330,076
316,240
304,000
280,000
268,718
40.50
12.80
4.58
4.55
2.38
2.23
2.14
1.83
1.66
1.59
1.43
1.25
1.19
1.19
1.01
0.82
0.78
0.75
0.72
0.67
0.64
35,653,298
84.71
Unissued equity securities
Options issued: 5,904,873 unlisted options issued to 96 holders).
Securities exchange
The Company is listed on the Australian Securities Exchange.
86 | P a g e
A n n u a l R e p o r t
www.global-health.com