Global Health Limited: ABN 75 091 377 892
CORPORATE DIRECTORY
Directors
Steven Leigh Pynt – Independent Non-Executive Chairman
Mathew Cherian – Executive Director
Robert Knowles – Independent Non-Executive Director
Grant Smith - Independent Non-Executive Director
Karen Corry - Independent Non-Executive Director
Company Secretary
Sam Butcher
Registered Office
Level 2, 696 Bourke Street
Melbourne, Victoria, 3000, Australia
Ph: +61 3 9675 0600
Share Registry
Link Market Services Limited
Tower 4, 727 Collins Street
Melbourne, Victoria, 3008
Stock Exchange Listing
Global Health Limited shares are listed on the Australian Securities Exchange (ASX code: GLH)
Website
www.global-health.com
Page 6
Annual Report
Global Health Limited: ABN 75 091 377 892
CORPORATE GOVERNANCE STATEMENT
For the Year ended 30 June 2021
The 2021 corporate governance statement is dated as at 30 June 2021 and reflects the corporate governance practices in
place throughout the 2021 financial year. The 2021 corporate governance statement was approved by the Board on 29
September 2021. 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.
Page 7
Annual Report
FINANCIAL AND OPERATIONS REVIEW
Executive Summary
Total Group revenue and income for FY21 closed $1.22M up on prior year at $7.48M, a 20% increase on FY20 ($6.26m).
Client revenues have materially increased in FY21- $7.03M, up 18%/$1.06M on FY20 ($5.97M).
The Group reported a net loss after income tax of $488K in FY21, an increase of $288K from FY20 ($200K).
Global Health posted an adjusted EBITDA of $1.05M, $565K favourable from prior year (FY20 $489K).
Operating expenses $6.42M, increased $654K from prior year, a 11% increase.
Impairment charge of $998,546 was applied against all capitalised products other than the flagship MasterCare platform
due to write downs resulting from reduced sales outputs in FY21 and forecasted future sales impacts, which has materially
impacted FY21 EBIT and NPAT results.
Global Health has shown resilience in FY21, producing strong revenue growth in a challenging, pandemic dominated,
operating environment. The recurring revenue base of the business increased 13% from prior year, and professional services
administered for onboarding new and recurring clients increased 70% from prior year. MasterCare EMR continues to be the
flagship product for Global Health with year-on-year revenue growth of 36% in its subscription revenue and 32% growth in its
expansion revenues. On-boarding of large clients including Peninsula Health has contributed to the strong gains.
Operating expenses increased $654K in FY21, primarily due to resource requirements for new customer on boarding and
investments in product development.
New key hires in FY21 align with the Group's focus on growth via recruitment for, customer support and on boarding. Although
staffing costs were 14% higher to prior year, salaries, and wages as a percentage of revenue and income was favourable
(53% in FY21 vs 55% in FY20). Scaling resources for additional growth will continue in FY22, as the Group acquires more market
share.
The impact of COVID-19 has been significant in the development and revenue growth of ancillary products resulting in the
impairment of PrimaryClinic, Lifecard, ReferralNet and HotHealth. The diminished capacity to engage and secure new
customers for these products in the year past and potential for similar challenges in the coming year required a review and
resulting impairment of these products.
Page 8
Annual Report
Finance
The Group has continued a positive trend across underlying financial indicators.
Total customer revenue $7.03M increased 18% on prior year, while operating expenses increased $654k on prior year, a 11%
increase, these increases were primarily related to on boarding new customers and product development.
Client revenue performance has been positive year on year, with 18%/$1.06m growth from prior year. This represents a positive
uplift in growth rate from FY19 (9%/494K). This resulted in a positive operating cash flow of $1.37M generated in FY21.
Adjusted EBITDA is used by the Group to define the underlying results, which has been adjusted for and excludes impairment
expense.
Non-IFRS measures, including adjusted EBITDA, are financial measures used by management and the Directors as the primary
measures of assessing the financial performance of the Group. The Directors also believe that these non-IFRS measures assist in
providing additional meaningful information for stakeholders and provide them with the ability to compare against prior
periods in a consistent manner.
Page 9
Annual Report
The table below provides a reconciliation to adjusted EBITDA for the Group and is unaudited, non-IFRS financial information.
Reconciliation to Adjusted EBITDA
(Unaudited, Non-IFRS Financial Information)
Net loss after income tax
Adjustments:
Finance expenses
Income tax expense/(benefit)
EBIT
Adjustments:
Depreciation
Amortisation
Impairment of intangible assets
Adjusted EBITDA (unaudited, non-IFRS term)
FY19
FY20
FY21
(1,296,793)
(200,090)
(488,029)
138,324
325,063
(833,406)
32,850
190,329
-
610,227
110,315
(42,009)
(131,784)
219,147
402,124
-
61,682
(137,536)
(563,883)
210,869
410,060
998,546
489,487
1,055,592
Adjusted EBITDA margins have substantially grown from FY20, $565K ahead from prior year ($1.055M FY21 vs $489K FY20). The
result is encouraging, demonstrating the Group’s ability to translate revenues into operational efficiency.
Page 10
Annual Report
Revenue Detail
Recurring revenues continue to grow year on year, with the FY21 recurring group growing by an additional 13%/$545K. The
Group’s MasterCare EMR product has been a key driver in this space.
Professional services increased by 70%/676K due to additional projects revenue, and the on-boarding of large clients.
Revenue and Income
Subscription Revenue
Expansion Revenue
Total Recurring Revenue
Professional Services
Other Product Revenue
Other Customer Revenue
Total Customer Revenue
Other Income
Finance Income
FY20
FY21
Var
Var %
3,612,263
4,021,255
408,992
567,145
703,069
135,924
4,179,408
4,724,324
544,916
965,317
1,641,029
675,712
11%
24%
13%
70%
824,652
664,062
(160,590)
(19%)
1,789,969
2,305,091
515,122
5,969,377
7,029,415
1,060,038
280,000
6,291
443,000
163,000
3,183
(3,108)
29%
18%
58%
(49%)
20%
Total Revenue and Income
6,255,668
7,475,598
1,219,930
Financial position
Trade receivables owing has declined by 54%, enhancing the timeliness and cash cycle of the business. Short term borrowings
and obligations have reduced significantly, providing for a more favourable net liquidity ratio.
From a cash perspective, Global Health delivered $1.37M positive cashflow from operating activities in FY21. This outcome is a
significant improvement from prior year, where cashflow was in decline from operating activities (FY20 ($141K)).
Cash and Cash Equivalents
Trade and Other Receivables
Quick Assets
Trade and Other Payables
S/T Borrowings and Lease Liabilities
Short Term Obligations
Net Liquidity
FY20
666,276
1,208,968
1,875,244
1,059,512
541,785
1,601,297
273,947
FY21
4,840,318
550,536
5,390,854
1,362,270
162,280
1,524,550
3,866,304
Page 11
Annual Report
Capital Raising
In June – July 2021, the Group raised $7.8M via a placement to sophisticated investors and leading institutional investors,
conducted in two tranches.
Proceeds from the placement will provide the Group with:
a stronger Balance Sheet
support for an expanded sales force to accelerate revenue growth rates and
support for an expanded R & D team to accelerate the progression of customers to the Group’s SaaS platforms
comprising:
MasterCare Plus (www.mastercare-plus.net.au)
ReferralNet Secure Connectivity platform (www.referralnet.com.au)
HotHealth Patient Engagement platform (www.hothealth.com) and
Lifecard consumer-empowerment platform (www.lifecard.com).
The Group is holding cash and cash equivalents of $4.84M at the close of FY21, which will enable Global Health the ability to
undertake its strong growth plans from FY22 onwards.
Operations
Global Health’s portfolio of solutions commenced several key national infrastructure integration projects in FY21 signalling our
continued commitment to the Australian healthcare billing, statutory reporting, prescribing and e-health landscape. Working
together with an engaged community health client-base we continued to improve on our feature-set and build on a
competitive advantage in that segment.
To meet current and anticipated growth we have invested in our people and culture filling key roles in product ownership,
customer service, project execution, sales, and marketing. The team is primed to deliver a better experience to our growing
client base and execute on several active projects scheduled to take place in FY22 and beyond.
Differences Between the Preliminary and Final Report
Subsequent to the announcement of its preliminary results on 31 August 2021, management undertook an overall review of its
tax calculations, specifically in relation to the historical treatment of certain key items for tax purposes. One of the main
findings of the review was that the treatment of the research and development tax offset had been incorrect, resulting in a
net reduction of historical deferred tax liabilities. Further information regarding this can be found in Notes 4 and 30 to the
financial statements.
Page 12
Annual Report
Global Health Limited: ABN 75 091 377 892
DIRECTORS’ REPORT
For the Year Ended 30 June 2021
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 2021.
Information on directors
The names, qualifications, experience and special responsibilities of each person who has been a director during the year
and to the date of this report are:
Steven Leigh Pynt
Independent Non-Executive Chairman
Qualifications
Experience
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
Interest in shares and options
375,408 ordinary shares; 59,001 options
Commercial Tribunal of WA.
Special responsibilities
Independent Non-Executive Chairman; Member of Audit Committee
Other current directorships in listed entities
None
Other directorships in listed entities held in
Ephraim Resources Limited
the previous three years
Mathew Cherian
Executive Director
Qualifications
Experience
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.
Interest in shares and options
23,376,619 ordinary shares; 2,378,625 options
Special responsibilities
Executive Director (from 1 July 2021); previously Chief Executive Officer and Managing
Other current directorships in listed entities
None
Other directorships in listed entities held in
None
the previous three years
Director
Page 13
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Grant Smith
Independent Non-Executive Director
Qualifications
Experience
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.
Interest in shares and options
424,481 ordinary shares; 62,241 options
Special responsibilities
Independent Non-Executive Director; Chairman of the Audit Committee
Other current directorships in listed entities
None
Other directorships in listed entities held in
None
the previous three years
Robert Knowles AO
Independent Non-Executive Director
Qualifications
Experience
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
Interest in shares and options
66,234 ordinary shares; 23,117 options
Special responsibilities
Independent Non-Executive Director
Complaints Commissioner.
Other current directorships in listed entities
None
Other directorships in listed entities held in
None
the previous three years
Page 14
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Karen Corry
Independent Non-Executive Director
(Appointed 10 August 2021)
Qualifications
Experience
BCom, ACA, GAICD
Karen is an experienced board director and business leader with a background in digital
health and technology, consulting and finance. Previously a partner at KPMG Consulting,
she is a qualified chartered accountant and has worked globally, including KPMG London.
In her consulting career she has led strategic planning and transformational programs and
has been responsible for business development and growth. She established a consulting
company, Delta Management Consulting, achieving success during the health sector’s
transitional period of embracing digital technology and electronic medical records. Karen is
a non-executive director at Peninsula Health, Holmesglen Institute, ACMI (Australian Centre
for the Moving Image) and Chair of the Australian Community Support Organisation (ACSO).
Interest in shares and options
40,000 ordinary shares
Special responsibilities
Independent Non-Executive Director
Other current directorships in listed entities
None
Other directorships in listed entities held in
None
the previous three years
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
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 $488,029 (2020:
consolidated loss of $200,090).
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.
Page 15
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
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
There were a number key appointments subsequent to the financial year end, namely:
Mr Michael Davies was appointed as Chief Executive Officer (CEO) of the Group on 1 July 2021. The current
Managing Director and CEO, Mr Mathew Cherian, will remain with the Group in the new role of Executive Director;
Ms Karen Corry was appointed as a non-executive director to the Group's Board of Directors on 10 August 2021; and
Mr Ershad Ali was appointed as Chief Financial Officer (CFO) of the Group on 16 August 2021.
750,000 rights under the Long Term Incentive (LTI) Plan were offered to Mr Michael Davies with the performance period taking
effect from 1 July 2021.
An Extraordinary General Meeting ("EGM") of the members of the Company was held on 27 July 2021 and all resolutions
requiring shareholders approval were carried.
On 2 August 2021, the Company issued 7,039,640 ordinary shares at $0.555 per share to various sophisticated and professional
investors under the second tranche of a two-tranche institutional share placement announced to the ASX on 15 June 2021,
raising $3,907,000 before costs.
On 3 August 2021, the Company issued the following options exercisable at $0.8325 and expiring on 3 August 2023:
7,039,663 options attached to new shares issued under two tranche institutional share placement with 1 free option
for every 2 shares; and
A total of 1,131,354 options to the Joint Lead Managers for services provided in respect of the two-tranche
institutional share placement in June - July 2021.
On 6 September 2021, 41,667 ordinary shares were issued upon exercise of options.
The COVID-19 pandemic has created unprecedented 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.
Subsequent to year end, the state of emergency in Victoria was extended until 21 October 2021. Refer to Note 37 for further
information regarding the impact of COVID-19 on the Group.
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.
Page 16
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
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 in June 2018. 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 6 audit and risk committee meetings were held. Attendances by each
director during the year were as follows:
Directors' Meetings
Audit and Risk Committee
Number eligible to
Number attended
Number eligible to
Number attended
attend
attend
Steven Leigh Pynt
Mathew Cherian
Grant Smith
Robert Knowles AO
Karen Corry (Appointed 10/08/21)
13
13
13
13
-
13
13
12
12
-
6
-
6
-
-
6
-
6
-
-
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.
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.
Page 17
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Options and rights
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
22 June 2021
03 August 2021
Date of Expiry
Exercise Price
30 November 2021
11 November 2022
11 December 2024
03 August 2023
03 August 2023
$0.75
$0.25
$0.25
$0.83
$0.83
Number under
Option
600,000
3,778,081
870,000
3,519,822
4,651,195
13,419,098
900,000 performance rights with expiry date of 30 June 2026 were granted during the year ended 30 June 2021 for which will
convert into shares, subject to the achievement of vesting hurdles and agreed performance criteria over the period from 1
July 2020 to 30 June 2023. If the vesting hurdles and performance criteria are met over the period, some or all of the rights will
vest on 30 June 2023. If the eligible employee remains employed by the Group, the vested rights will be exercisable until their
expiry on 30 June 2026. Each vested right will entitle the eligible employee to receive one share in the Company at no cost.
The values of the performance rights at grant date were determined using the Black-Scholes and Monte Carlo Simulation
method. Refer to Note 28 to the financial statements for further information.
During the year ended 30 June 2021, the following ordinary shares of Global Health Limited were issued on the exercise of
options granted. On 6 September 2021, a further 41,667 ordinary shares were issued upon exercise of options. No amounts are
unpaid on any of these shares.
Grant Date
11 November 2019
Number of
Exercise Price
Shares Issued
$
0.25
390,125
390,125
No person entitled to exercise an option had or has any right by virtue of the option to participate in any share issue of any
other body corporate.
There were no ordinary shares of Global Health Limited issued on the exercise of options during the year ended 30 June 2021
and up to the date of this report.
There have been no options granted over unissued shares or interests of any controlled entity within the Group since the end
of the financial year other than detailed above.
Option and performance rights holders do not have any rights to participate in any issues of shares or other interests in the
Company or any other entity.
The options and performance rights granted during the year ended 30 June 2021 have been brought to account in these
financial statements in the options reserve.
For details of options and performance rights issued to directors and other key management personnel as remuneration, refer
to the remuneration report.
Page 18
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
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 2021 has been received and can be found on page 30 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.
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 of
executives 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 aligns with good practice in remuneration. For Directors,
remuneration packages generally comprise salary and superannuation. Remuneration packages for executives include
salary, superannuation and incentives. Many executives are offered short-term cash incentives and some key executives are
also offered longer term incentives under the Equity Incentive Plan, which seeks to align the interests of executives with the
interests of shareholders. Directors, including the Executive Director do not receive incentives or performance-based
payments.
The Board reviews its own performance annually and the Chairman holds individual discussions with each Director to discuss
their performance. The Non-Executive Directors are responsible for evaluating the performance of the Executive Director, and
the Chief Executive Officer, who in turn evaluates the performance of all other senior executives.
In accordance with good practice, the structures of Non-Executive Director and Executive Director remuneration are quite
different.
Page 19
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Performance based remuneration
Performance based remuneration of executives is evaluated based on specific criteria, including the Group's business
performance and achievement of revenue and Net Profit After Tax (NPAT) targets, whether short and long-term objectives
are achieved and 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 periodically by the Board to ensure all payments are
appropriate and in line with the market. In August 2021, the board received advice from an independent remuneration
consultant and on the basis of that advice resolved to increase the Chairman’s remuneration to $65,000 per annum plus
superannuation and the remuneration of other Non-Executive Directors to $45,000 per annum plus superannuation. The
remuneration of Non-Executive Directors had not been reviewed since 2009.
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 base
pay increases included in any senior executive's contract.
As part of executive remuneration, during the year ended 30 June 2021, the Company initiated a new Short Term Incentive
Plan (STI) and a new Long Term Incentive Plan (LTI Plan) as set out below:
Short Term Incentive Plan (STI)
The STI is designed to motivate and incentivise executives towards the Group achieving strong performance in the areas that
matter most. Participation in the STI entitled the participating executives to receive a bonus cash payment if the weighted
Key Performance Indicators (KPIs) stipulated for the financial year ended 30 June 2021 were met, subject to the Group
achieving a specified Earnings Before Interest, Tax, Depreciation, Amortisation and Research & Development costs (EBITDAR)
target for the year ended 30 June 2021.
The Group's EBITDAR for the year ended 30 June 2021 was not met and as a result the participating executives were not
entitled to receive bonus cash payments under the STI for the year, and no payments were made.
Participation in the STI for any year does not guarantee participation in future years.
Long Term Incentive Plan (LTI Plan)
During the year, the board implemented a new Long Term Incentive Plan following the approval by shareholders of the new
Equity Incentive Plan at the Annual General Meeting in 2020.
Page 20
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
During the year ended 30 June 2021, offers were made to three Key Management Personnel to participate in the Long Term
Incentive Plan: Keith Jayesuria, Damon Groenveld and Kye Cherian. These offers entitled each participant to 300,000 rights to
acquire fully paid ordinary shares in the Company, subject to the achievement of vesting hurdles and agreed performance
criteria over the period from 1 July 2020 to 30 June 2023. If the vesting hurdles and performance criteria are met over the
period, some or all of the rights will vest on 30 June 2023. If the eligible employee remains employed by the Group, the vested
rights will be exercisable until their expiry on 30 June 2026. Each vested right will entitle the eligible employee to receive one
share in the Company at no cost.
These rights constitute the long term incentive component of each eligible employee's remuneration for the period 1 July 2020
to 30 June 2023.
Participation in the LTI Plan for the year ended 30 June 2021 does not guarantee participation in future years.
The Board has offered participation in the LTI Plan to the Chief Executive Officer, Michael Davies, as announced to the market
on 31 May 2021, and may also offer participation to other executives.
Voting and comments made at the Company's 2020 Annual General Meeting ("AGM")
At the AGM held on 30 November 2020, 99.40% of votes cast by shareholders were in support of adopting the remuneration
report for the year ended 30 June 2020. The Company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Relationship between remuneration policy and Group performance
The Group’s remuneration policy has been designed to align the interests of shareholders, directors and executives. Two
methods have been applied to achieve this aim: the STI Plan and the LTI Plan. Historically, options have also been issued 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)
2021
$
7,029,415
(488,029)
0.48
-
2020 *
2019 **
$
$
2018
$
5,969,377
(200,090)
0.20
-
5,475,024
(1,296,793)
0.14
-
5,157,539
(1,860,399)
0.20
-
2017
$
4,607,570
1,728,045
0.32
-
* 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. The net loss for the year ended 30 June 2020 have been restated as a result of the correction of a prior
period error. Refer to Note 30 to the financial statements for further details.
** The Company adopted AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers for the first time
on 1 July 2018, and accordingly, the results include the impact of applying these standards.
Page 21
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Remuneration details for the year ended 30 June 2021
Amounts of remuneration
The Key Management Personnel of the Group consists of the following directors of Global Health Limited:
•
•
•
•
Mr S Pynt - Non-Executive Chairman
Mr M Cherian - Executive Director (from 1 July 2021), previously 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 - Principal Architect
Mr K Jayesuria - Chief Operating Officer
Mr K Cherian - Manager, Product Portfolio
Ms D Hudson - Manager, Customer Success Group (Resigned 4 March 2021)
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.
Table of benefits and payments
Post-employment
Long-term
Share-based
Short-term benefits
benefits
benefits
payments
Cash salary
Annual leave
Long service
Share options
and fees
accrued
Allowances **
STI
Superannuation
leave accrued
and rights ***
Total
$
$
$
$
$
$
$
$
2021
Directors
Non-Executive
Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Executive Director:
41,284
32,037
32,037
-
-
-
-
-
-
N/A
N/A
N/A
3,974
3,084
3,084
-
-
-
-
-
-
-
45,258
35,121
35,121
485,680
Mr M Cherian
253,455
34,066
26,000
N/A
21,694
150,465
Other KMP
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Ms D Hudson *
166,418
156,407
164,714
95,826
20,974
7,470
14,617
-
-
-
15,000
-
-
-
-
N/A
Total remuneration
942,178
77,127
41,000
-
15,616
15,616
15,455
8,409
86,932
29,485
20,882
28,202
-
8,192
240,685
8,192
208,567
5,756
243,744
-
104,235
229,034
22,140
1,398,411
* Resigned on 4 March 2021.
** 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 and
performance rights issued in the current year to Directors and KMP, including those for which vesting conditions have been
met during the current financial year.
Page 22
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Post-employment
Long-term
Share-
based
Short-term benefits
benefits
benefits
payments
Cash salary
Annual leave
Long service
Share
and fees
accrued
Allowances *
STI
Superannuation
leave accrued
options **
Total
$
$
$
$
$
$
$
$
47,477
28,833
36,842
-
-
-
-
-
-
N/A
N/A
N/A
-
-
-
-
-
-
748
374
374
48,225
29,207
37,216
2020
Directors
Non-Executive
Directors:
Mr S L Pynt
Mr G Smith
Mr R Knowles
Executive Director:
Mr M Cherian
212,405
18,287
26,000
N/A
25,277
3,959
-
285,928
Other KMP
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
Ms D Hudson
164,383
144,407
171,655
159,326
Total remuneration
965,328
12,645
12,645
11,240
9,435
64,252
-
-
15,000
N/A
N/A
N/A
-
N/A
41,000
-
15,616
24,710
15,929
14,594
96,126
2,738
2,738
2,433
2,043
7,646
7,646
3,008
-
203,028
192,146
219,265
185,398
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 financial year.
The proportion of remuneration linked to performance and the fixed portion are as follows:
Name
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
Fixed remuneration
At risk - Short Term Incentive
At risk - Long Term Incentive
2021
%
2020
%
2021
%
2020
%
2021
%
2020
%
100
100
100
100
97
96
98
100
98
99
99
100
96
96
99
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
4
2
-
2
1
1
-
4
4
1
-
Page 23
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Cash bonuses are dependent on meeting defined performance measures. The amount of the bonus is determined having
regard to the satisfaction of performance measures and weightings as described above in the section 'Principles used to
determine the nature and amount of remuneration'. The maximum bonus values are established at the start of each financial
year and amounts payable are determined in the final month of the financial year by the Board.
The proportion of the cash bonus paid/payable or forfeited is as follows:
Cash bonus paid/payable
Cash bonus forfeited
2021
%
-
-
-
2020
%
N/A
N/A
N/A
2021
%
100
100
100
2020
%
N/A
N/A
N/A
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
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 Executive 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.
Name:
Title:
Mr M Cherian
Executive Director
Term of agreement:
No fixed term
Details:
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:
Mr D Groenveld
Principal Architect
Term of agreement:
No fixed term
Details:
Name:
Title:
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
Term of agreement:
No fixed term
Details:
Name:
Title:
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
Term of agreement:
No fixed term
Details:
Name:
Title:
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
Term of agreement:
No fixed term
Details:
Notice period to be provided by Company: 1 month; Notice period to be provided by employee:
1 month; Termination payment: None.
Page 24
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Changes in KMP
There are no changes to Key Management Personnel during the year, except for the resignation of Ms Deborah Hudson on 4
March 2021. Subsequent to the end of the year, there have been changes to the Key Management Personnel, including the
appointments of Mr Michael Davies as Chief Executive Officer and Mr Ershad Ali as Chief Financial Officer in July and August
2021.
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 2021 and 30 June 2020.
Options and rights granted
Grant details
For the financial year ended 30 June 2021
Overall
Value
Lapsed
Lapsed
Vested
Vested
Unvested
Lapsed
Date
No.
$
No.
$
No.
%
%
%
Performance rights
Other KMP:
Mr D Groenveld
26 April 2021
300,000
1,963
Mr K Jayesuria
26 April 2021
300,000
1,963
Mr K Cherian
26 April 2021
300,000
1,963
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
-
-
-
There were no options granted to Directors and other key management personnel as part of compensation during the years
ended 30 June 2021 and 30 June 2020.
There were no rights granted to Directors and other key management personnel as part of compensation during the year
ended 30 June 2020.
Description of Options/Rights Granted as Remuneration
Details of the options/rights granted as remuneration to those key management personnel and executives during the year:
Included as
Vested in
Forfeited/lapsed in
Share-based payments
Remuneration
Number of rights
Year Ended 30 June 2021
$
No.
Grant date
period
%
period
%
Vesting date
Other KMP:
Mr D Groenveld
Mr K Jayesuria
Mr K Cherian
1,963
1,963
1,963
300,000
300,000
300,000
26/04/2021
26/04/2021
26/04/2021
-
-
-
-
-
-
30/06/2023
30/06/2023
30/06/2023
Values of the performance rights at grant date were determined using the Black-Scholes and Monte Carlo Simulation
method. Refer to Note 28 of the financial statements for further information.
There were no options granted as remuneration to key management personnel and executives during the year ended 30
June 2021.
Options and performance rights granted carry no dividend or voting rights.
Page 25
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
All options/rights were issued by Global Health Limited and entitle the holder to ordinary shares in Global Health Limited for
each option/right exercised.
There have not been any alterations to the terms or conditions of any share-based payment arrangements since grant date.
Key management personnel options and rights holdings
Options
The number of options in the Company held by each KMP and their related parties up to and including the financial year end
is as follows:
Balance at beginning
Granted as
Other
Balance at the
Vested during
Vested and
of year
remuneration
Exercised
changes*
end of year
the year
exercisable
30 June 2021
No.
No.
No.
No.
No.
No.
No.
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
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
59,001
62,241
23,117
2,378,625
450,000
452,000
150,000
-
3,574,984
200,000
100,000
100,000
-
300,000
300,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
150,000
150,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
59,001
62,241
23,117
2,378,625
450,000
452,000
150,000
-
-
-
-
-
59,001
62,241
23,117
2,378,625
60,000
60,000
300,000
302,000
-
-
-
-
3,574,984
120,000
3,124,984
(200,000)
(100,000)
(100,000)
59,001
62,241
23,117
59,001
62,241
23,117
2,378,625
2,378,625
-
-
-
-
59,001
62,241
23,117
2,378,625
-
-
-
-
-
-
2,000
-
-
450,000
452,000
150,000
-
60,000
60,000
240,000
242,000
-
-
-
-
1,000,000
450,000
(400,000)
2,524,984
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.
Page 26
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Performance Rights
During the year ended 30 June 2021, offers were made to three Key Management Personnel to participate in the Long-Term
Incentive Plan: Keith Jayesuria, Damon Groenveld and Kye Cherian. These offers entitled each participant to 300,000 rights to
acquire fully paid ordinary shares in the Company, subject to the achievement of vesting hurdles and agreed performance
criteria over the period from 1 July 2020 to 30 June 2023. If the vesting hurdles and performance criteria are met over the
period, some or all of the rights will vest on 30 June 2023. If the eligible employee remains employed by the Group, the vested
rights will be exercisable until their expiry on 30 June 2026. Each vested right will entitle the eligible employee to receive one
share in the Company at no cost.
There have been no transactions involving equity instruments apart from those described in the tables above relating to
options, rights, and shareholdings.
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 2021
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
On exercise of options
Other changes during the
year
No.
and rights
No.
year
No.
Balance at end of year
No.
375,408
424,481
66,234
23,376,619
304,000
8,000
99,999
-
24,654,741
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(30,000)
-
(30,000)
375,408
424,481
66,234
23,376,619
304,000
8,000
69,999
-
24,624,741
* Other changes during the year relates to shares sold on the market.
Page 27
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
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
On exercise of
Other changes
Balance at end of
beginning of year
options and rights
during the year
No.
No.
No.
year
No.
257,408
300,000
20,000
18,619,370
304,000
4,000
-
-
19,504,778
-
-
-
-
-
-
-
-
-
118,000
124,481
46,234
375,408
424,481
66,234
4,757,249
23,376,619
-
4,000
99,999
-
304,000
8,000
99,999
-
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 in November
2019.
** Mr Kye Cherian's holdings relate to those shareholdings as at date of commencement 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 (2020: $75,390) were payable to the Managing Director,
Mathew Cherian. This amount payable is interest free and unsecured.
Page 28
Annual Report
Global Health Limited: ABN 75 091 377 892
Directors’ Report: For the Year Ended 30 June 2021
Remuneration report (audited) (continued)
Loans to Key Management Personnel and their Related Parties
There were no loans made to KMP during the period.
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 30th day of September 2021
Page 29
Annual Report
AUDITOR’S INDEPENDENCE DECLARATION
Page 30
Annual Report
Global Health Limited: ABN 75 091 377 892
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2021
Revenue
Revenue from contracts with customers
6
7,029,415
5,969,377
Note
2021
$
Restated
2020
$
Other income
Finance income
Total income and revenue
Employee benefits expense
Third party product and service costs
General and administration costs
Bad debts and movements in loss allowance for financial assets
Marketing expenses
Professional fees
Occupancy expenses
IT and telecommunications expense
Travel expenses
Finance expenses
Depreciation
Amortisation
Impairment of intangible assets
Total expenses
Loss before income tax
Income tax benefit
7(a)
7(b)
13(a)
13(a)
443,000
3,183
280,000
6,291
7,475,598
6,255,668
(3,940,814)
(3,465,373)
(1,654,965)
(1,255,832)
(301,664)
100,983
(153,599)
(347,895)
(57,827)
(55,722)
(8,503)
(61,682)
(210,869)
(410,060)
(998,546)
(209,347)
(111,900)
(134,639)
(340,543)
(66,623)
(116,329)
(65,595)
(110,315)
(219,147)
(402,124)
-
(8,101,163)
(6,497,767)
(625,565)
(242,099)
9,30
137,536
42,009
Net loss for the year attributable to members of the parent entity
(488,029)
(200,090)
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
(488,029)
(200,090)
Earnings per share:
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
26
26
(1.15)
(1.15)
(0.51)
(0.51)
The accompanying notes form part of these financial statements.
Page 31
Annual Report
Global Health Limited: ABN 75 091 377 892
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As At 30 June 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
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
EQUITY
Issued capital
Reserves
Accumulated losses
Note
2021
$
Restated
2020
$
10
11
16
12
13
14(a),30
15
16
17
18
19
15
20
21
18
19
14(b),30
15
21
4,840,318
550,536
140,496
5,531,350
5,281
2,959,823
422,488
3,332
118,392
3,509,316
9,040,666
1,362,270
2,418,336
159,476
2,804
1,044
716,502
4,660,432
142,936
141,106
28,065
728
27,078
339,913
5,000,345
4,040,321
666,276
1,208,968
114,009
1,989,253
34,956
3,939,689
338,998
201,802
116,350
4,631,795
6,621,048
1,059,512
2,622,080
360,111
181,674
50,000
582,053
4,855,430
218,604
271,098
82,111
3,532
39,669
615,014
5,470,444
1,150,604
22
23
24,354,141
1,058,264
21,745,526
292,140
24,30
(21,372,160)
(20,887,138)
Total equity attributable to equity holders of the Company
4,040,245
1,150,528
Non-controlling interest
TOTAL EQUITY
25
76
76
4,040,321
1,150,604
The accompanying notes form part of these financial statements.
Page 32
Annual Report
Global Health Limited: ABN 75 091 377 892
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2021
2021
Balance at 1 July 2020 (restated)
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
Lapsed employee share options
Exercised options
Balance at 30 June 2021
2020 (Restated)
Balance at 1 July 2019
Adjustment due to adoption of AASB 16
Correction of prior period error
Balance at 1 July 2019 (restated)
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 (restated)
Foreign
Currency
Issued
Accumulated
Translation
Option
Non-controlling
Capital
Losses
Reserve
Reserve
Interests
Note
$
$
$
$
$
Total
$
21,745,526
(20,887,138)
24,234
267,906
76
1,150,604
-
(488,029)
2,592,308
-
-
23
23,24
23
16,307
-
-
3,007
-
-
-
-
-
-
-
750,778
34,660
(3,007)
(16,307)
-
-
-
-
-
(488,029)
3,343,086
34,660
-
-
24,354,141
(21,372,160)
24,234
1,034,030
76
4,040,321
20,961,242
(21,860,745)
24,234
149,977
24
24,30
-
-
86,903
1,021,373
-
-
-
-
20,961,242
(20,752,469)
24,234
149,977
-
(200,090)
23
23
23,24
23
758,934
-
-
-
25,350
-
-
-
65,421
-
-
-
-
-
-
-
21,745,526
(20,887,138)
24,234
-
-
175,973
32,727
(65,421)
(25,350)
267,906
The accompanying notes form part of these financial statements.
76
-
-
76
-
-
-
-
-
-
(725,216)
86,903
1,021,373
383,060
(200,090)
758,934
175,973
32,727
-
-
76
1,150,604
Page 33
Annual Report
Global Health Limited: ABN 75 091 377 892
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers (inclusive of GST)
Payments to suppliers (inclusive of GST) and employees
Interest received
Finance costs
Income taxes received
Note
2021
$
2020
$
8,497,704
7,016,268
(7,076,592)
(7,342,196)
3,183
(53,774)
-
6,291
(93,789)
272,387
Net cash provided by/(used in) operating activities
27
1,370,521
(141,039)
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
(695,343)
(698,068)
-
266,603
(789)
446,080
(428,740)
(252,777)
4,004,532
(330,627)
(256,405)
(185,239)
3,232,261
1,010,368
(534,432)
(75,461)
(144,373)
256,102
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
4,174,042
(137,714)
666,276
10(a)
4,840,318
803,990
666,276
The accompanying notes form part of these financial statements.
Page 34
Annual Report
Global Health Limited: ABN 75 091 377 892
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
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 30 September 2021.
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.
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.
2. 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.
Page 35
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(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.
2.
Identify the contract with the customer
Identify the performance obligations
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 fee 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.
Page 36
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
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.
Page 37
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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 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.
Page 38
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
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.
Page 39
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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 asset 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.
Page 40
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
The Group uses the presumption that a financial asset is in default when:
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 is 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.
Page 41
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(h) Leases
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.
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.
Page 42
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(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 asset’s 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%
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.
Page 43
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
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 CGU.
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.
Page 44
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
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
Equity settled compensation benefits are provided to employees via the Employee Share Option Plan, Exempt Employee
Share Plan, Equity Incentive Plan and Long-Term Incentive Plan. Information relating to these schemes is set out in Note 28.
Employee options
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.
Page 45
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
Exempt Employee Share Plan
Under the exempt employee share plan, shares issued by the Group to employees for no cash consideration vest immediately
on grant date. On this date, the market value of the shares issued is recognised as an employee benefits expense with a
corresponding increase in equity.
Performance Rights
The fair value of performance rights granted to employees for nil consideration under the Long-Term Incentive Plan is
recognised as an expense over the relevant service period, being the year to which the bonus relates and the vesting period
of the rights.
The fair value is measured at the grant date of the rights and is recognised in equity in the options reserve. The fair value of
rights with market vesting conditions is ascertained using a Monte Carlo 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. The number of rights expected to vest is estimated
based on the non-market vesting conditions. The fair value of rights with only non-market vesting conditions is ascertained
using a Black-Scholes pricing model. The estimates are revised at the end of each reporting period and adjustments are
recognised in profit or loss and the options reserve.
Where rights are forfeited due to a failure by the employee to satisfy the service conditions, any expenses previously
recognised in relation to such shares are reversed effective from the date of the forfeiture.
(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.
Page 46
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(r) Foreign currency transactions and balances
Transactions 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.
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.
Page 47
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(t) Going concern
As at 30 June 2021, the Group has cash reserves of $4,840,318 (2020: $666,276) and an excess of current assets over current
liabilities of $870,918 (2020: excess of current liabilities over current assets of $2,866,177). The current liabilities as at 30 June 2021
and 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 assets over current liabilities at 30 June 2021, the excess of current assets over current
liabilities at that date is increased to $3,289,254 (2020: excess of current liabilities over current assets at that date is reduced to
$244,097). As disclosed in Note 38, it is currently difficult to reliably estimate with any degree of certainty the potential impact
of the COVID 19 pandemic on the Group's future operations, results, or financial position.
The current year loss before tax was $625,565 (2020: loss before tax of $242,099).
As at 30 June 2021, the Group had a cash and cash equivalents of $4,840,318, which included monies received from the first
tranche of a successful two tranche institutional share placement of $3.907 million before costs. In August 2021, subsequent to
obtaining shareholders approval at an EGM, a further $3.907 million before costs was received as part of the second tranche.
Further, the cash flow forecast prepared by management for the 18-month period to December 2022, indicates that the
Group has sufficient funds to fund its operations and to meet their debts as and when they fall due.
Based on the above, 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.
(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 at 1 July 2020, the adoption of these standards
has not caused any material adjustments to the reported financial position, performance or cash flow of the Group.
(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.
Page 48
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
3. 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 Notes 13(b) and 13(c) 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 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.
Page 49
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
4. Differences Between Preliminary and Final Report
Subsequent to the announcement of its preliminary results on 31 August 2021, the Group performed an overall review of its tax
calculations, specifically in relation to the treatment of certain key items for tax purposes. The material changes between the
results disclosed in the preliminary report and this annual report relate to a correction of prior period error as a result of this
review. Refer to Note 30 Correction of Prior Period Error for further details.
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.
Page 50
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
6. Revenue from Contracts with Customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
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
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
2021
$
2020
$
4,021,255
3,612,263
703,069
1,641,029
664,062
567,145
965,317
824,652
7,029,415
5,969,377
7,029,415
5,969,377
-
-
7,029,415
5,969,377
2,678,538
4,350,877
7,029,415
2,069,498
3,899,879
5,969,377
2021
$
3,183
-
3,183
6,170
1,738
53,774
61,682
2020
$
6,290
1
6,291
16,526
-
93,789
110,315
Page 51
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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
3,566,601
3,177,830
2021
$
2020
$
Superannuation expense:
Defined contribution superannuation expense
Share-based payments expense:
- Share-based payments expense
9. Income Tax Expense
(a)
The major components of tax expense (income) comprise:
Deferred tax - origination and reversal of temporary differences:
- Decrease/(increase) in deferred tax assets
- Increase/(decrease) in deferred tax liabilities
Total income tax expense/(benefit)
(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 non-assessable income
- Change in tax rates
Total income tax expense/(benefit)
(c)
Tax losses not recognised
374,213
287,543
34,661
32,727
2021
$
(83,490)
(54,046)
(137,536)
Restated
2020
$
(107,148)
65,139
(42,009)
(625,565)
(242,099)
26.00%
(162,647)
50,656
164
(36,845)
(5,000)
16,136
(137,536)
27.50%
(66,577)
35,692
3,448
(3,924)
(26,000)
15,352
(42,009)
Unused tax losses for which no deferred tax asset has been recognised
2,242,083
2,540,536
Potential tax benefit @ 25% (2020: 26%)
560,521
660,539
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.
Page 52
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
10. Cash and Cash Equivalents
Cash on hand
Cash at bank
Total cash and cash equivalents
(a) Reconciliation of cash
Note
10(a)
2021
$
601
4,839,717
4,840,318
2020
$
601
665,675
666,276
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
Balance as per consolidated statement of cash flows
10
4,840,318
4,840,318
666,276
666,276
11. Trade and Other Receivables
CURRENT
Trade receivables
Less: Loss allowance
Employee loans
Other receivables
Note
11(a)
2021
$
531,999
(24,947)
507,052
33,024
10,460
2020
$
1,333,057
(125,930)
1,207,127
-
1,841
Total current trade and other receivables
550,536
1,208,968
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 gain of $100,983 (2020: loss of $19,031) in profit or loss in respect of movements in loss allowance
for the year ended 30 June 2021. Further $NIL has been written off as bad debts during the year (2020: $92,868).
The ageing of the receivables and loss allowance provided for above are as follows:
Within Maturity
30 June 2021
(0-30 days)
31-60 days
61-90 days
90-120 days
>120 days
Total
Expected loss rate (%)
Gross carrying amount ($)
ECL provision ($)
4.05
481,656
(19,520)
8.32
24,368
(2,027)
12.82
1,943
(249)
20.60
2,160
(445)
12.37
21,872
531,999
(2,706)
(24,947)
Page 53
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
Within Maturity
30 June 2020
(0-30 days)
31-60 days
61-90 days
90-120 days
>120 days
Total
Expected loss rate (%)
Gross carrying amount ($)
ECL provision ($)
4.22
1,045,323
(44,138)
12.76
45,170
(5,765)
18.15
43,774
(7,944)
25.83
35,508
(9,173)
36.08
163,282
1,333,057
(58,910)
(125,930)
(b) Reconciliation of changes in the provision for impairment of receivables is as follows:
Balance at beginning of the year
Additional loss allowances recognised
Unused amounts reversed
Balance at end of the year
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
2021
$
125,930
-
(100,983)
2020
$
106,899
19,031
-
24,947
125,930
2021
$
205,481
(200,200)
5,281
-
-
-
5,281
2020
$
233,633
(220,324)
13,309
178,787
(157,140)
21,647
34,956
Page 54
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(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:
Leasehold
Plant and Equipment
Improvements
$
$
13,309
(1,979)
(6,049)
5,281
24,202
789
-
(11,682)
13,309
Year ended 30 June 2021
Balance at the beginning of year
Disposals
Depreciation expense
Balance at the end of the year
Year ended 30 June 2020
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Balance at the end of the year
13. Intangible Assets
Developed products
Cost *
Accumulated amortisation
Accumulated impairment
Net carrying value
Products under development
Cost
Net carrying value
Total Intangibles
Total
$
34,956
(17,276)
(12,399)
5,281
21,647
(15,297)
(6,350)
-
30,642
54,844
-
-
(8,995)
21,647
789
-
(20,677)
34,956
2021
$
2020
$
5,900,104
6,025,285
(2,217,662)
(1,780,277)
(1,888,602)
1,793,840
1,165,983
1,165,983
2,959,823
(917,381)
3,327,627
612,062
612,062
3,939,689
* 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.
Page 55
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(a) Movements in carrying amounts of intangible assets
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 2021
Balance at the beginning of the year
Additions
Amortisation expense
Impairment loss (Note 13(c))
Adjustment
R&D tax offset allocated
Closing value at 30 June 2021
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
Products under
Developed
development
products
$
$
612,062
721,550
-
-
-
(167,629)
1,165,983
2,387,248
612,062
(2,387,248)
-
-
612,062
3,327,627
12,412
(410,060)
(998,546)
(38,619)
(98,974)
1,793,840
1,702,577
86,006
2,387,248
(402,124)
(446,080)
3,327,627
Total
$
3,939,689
733,962
(410,060)
(998,546)
(38,619)
(266,603)
2,959,823
4,089,825
698,068
-
(402,124)
(446,080)
3,939,689
(b) Impairment testing of products under development
Irrespective of whether there is any indication of impairment, the Group will test 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 is performed based on the CGUs identified by software product
lines.
As at 30 June 2021, impairment indicators were identified for specific CGUs which triggered the performance of a detailed
impairment assessment on the following basis:
The recoverable amount of each CGU 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
their 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 16.75% (2020: 14.75%). Further, the estimation of terminal values for 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 36% growth (2020: 5% to 30%)
Growth rates (sales) - new products 25% to 168% growth (2020: 50% to 250%)
Page 56
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
(c) Impairment of developed products
Management completed an impairment assessment at 30 June 2021 and concluded that, an impairment charge totalling
$998,546 (2020: $NIL) was required to be recognised for the year ended 30 June 2021 in respect of certain developed
products.
The recoverable amounts of the impacted product CGUs were less than their carrying values resulting from COVID-19 impacts
on sales velocity and related allowances required to be made in respect of revenue projections. In particular, the challenges
in conducting the rollout of implementation plans with customers due to various unprecedented lockdowns and restrictions
imposed by the Government to prevent the spread of COVID-19, has and potentially will continue to impact the Group's
ability to achieve expected revenue growths in the next 12 months.
14. Tax assets and liabilities
(a) Deferred Tax Assets
Deferred tax assets
Leases
Provisions - employee benefits
Loss allowance
Capital raising costs
Accruals
Opening
Balance
Charged to
Changes in
Closing
(Restated)
P&L
Tax Rate
Balance
$
-
$
61,154
$
-
$
61,154
202,453
(7,564)
(11,044)
183,845
29,397
4,948
(1,603)
-
-
15,696
45,561
-
-
32,742
15,696
45,561
Balance at 30 June 2020 (Restated)
231,850
119,795
(12,647)
338,998
Leases
Provisions - employee benefits
Loss allowance
Capital raising costs
Accruals
Balance at 30 June 2021
61,154
(57,658)
(2,352)
1,144
183,845
34,995
(7,071)
211,769
32,742
(25,246)
(1,259)
6,237
15,696
45,561
128,516
(604)
143,608
15,921
(1,752)
59,730
338,998
96,528
(13,038)
422,488
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.
Page 57
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(b) Deferred Tax Liabilities
Deferred tax liabilities
Prepayments
Right-of-use assets
Balance at 30 June 2020 (Restated)
Prepayments
Right-of-use assets
Balance at 30 June 2021
15. Leases
The Group as a lessee
Opening Balance
Changes in Tax
Closing
(Restated)
Charged to P&L
Rate
Balance
$
$
$
$
16,972
-
16,972
29,642
52,469
82,111
11,745
52,469
64,214
(3,551)
(53,654)
(57,205)
925
-
925
1,141
2,018
3,159
29,642
52,469
82,111
27,232
833
28,065
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)
During the financial year ended 30 June 2021, the Group moved its offices into a flexible coworking space. There is no fixed
term to the agreement and the private office fees are charged on a month-on-month basis commencing 1 June 2021. A
minimum notice period of 3 months is required from either party to terminate the agreement.
The Group has elected to apply the exception to lease accounting for short term leases (i.e. leases with a term of less than or
equal to 12 months) to this new agreement and has recognised the payments associated with these leases as an expense on
a straight line basis over the lease term. Therefore, no right of use asset or lease liability is recognised in respect of this new
agreement.
During the period until May 2021 (including the year ended 30 June 2020), the Group leased an office space plus 2 carpark
lots for their corporate office. The lease was 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 contained 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.
Page 58
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
Right-of-use assets
Buildings &
Make Good on
Carpark
Office Equipment
Office Premises
$
$
$
Year ended 30 June 2021
Balance at beginning of the year
Depreciation expense
Balance at end of year
Year ended 30 June 2020
Balance at beginning of the year
Adjustments on adoption of AASB 16 on
1 July 2019
Add: Provision for make good
Depreciation expense
Balance at end of year
Lease liabilities
CURRENT
Lease liabilities
Total current lease liabilities
NON-CURRENT
Lease liabilities
Total non-current lease liabilities
170,806
(170,806)
-
-
341,611
-
(170,805)
170,806
5,996
(2,664)
3,332
-
8,661
-
(2,665)
5,996
25,000
(25,000)
-
-
-
50,000
(25,000)
25,000
2021
$
2,804
2,804
728
728
Total
$
201,802
(198,470)
3,332
-
350,272
50,000
(198,470)
201,802
2020
$
181,674
181,674
3,532
3,532
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
(6,170)
(198,470)
(204,640)
(16,526)
(198,470)
(214,996)
Total cash outflow for leases
(185,239)
(144,373)
Page 59
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
16. Other Assets
CURRENT
Prepayments
Security deposit
Total current other assets
NON-CURRENT
Security bond - office lease
Total non-current other assets
17. Trade and Other Payables
CURRENT
Trade payables
Sundry payables and accrued expenses
Total current trade and other payables
2021
$
108,926
31,570
140,496
118,392
118,392
2021
$
619,096
743,174
2020
$
114,009
-
114,009
116,350
116,350
2020
$
673,882
385,630
1,362,270
1,059,512
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.
18. Contract Liabilities
CURRENT
Contract liabilities
Total current contract liabilities
NON-CURRENT
Contract liabilities
Total non-current contract liabilities
2021
$
2020
$
2,418,336
2,418,336
2,622,080
2,622,080
142,936
142,936
218,604
218,604
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.
Page 60
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
Reconciliation of contract liabilities
The following table shows the value of revenue recognised during the year ended 30 June 2021 that relates to contract
liabilities recognised at 30 June 2020:
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
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
2021
$
2020
$
2,840,684
(218,604)
2,622,080
1,901,900
(280,406)
1,621,494
Note
2021
$
2020
$
29,484
26,090
29,484
26,090
19(a)
129,992
334,021
129,992
334,021
159,476
360,111
19(a)
141,106
271,098
141,106
271,098
141,106
271,098
300,582
631,209
(a) Other loans and borrowings
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.
Page 61
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
20. Provisions
CURRENT
Lease make good provision
Total current provisions
2021
$
1,044
1,044
2020
$
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.
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
22. Issued Capital
49,528,085 (2020: 42,098,320) 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
2021
$
386,239
330,263
716,502
27,078
27,078
2020
$
318,611
263,442
582,053
39,669
39,669
2021
$
2020
$
25,091,048
21,820,987
(736,907)
(75,461)
24,354,141
21,745,526
2021
No.
2020
No.
42,098,320
33,678,592
- Shares issued pursuant to completion of rights issue at 12 cents per share (11 November 2019)
-
8,419,728
- Shares issued via placement at 55.5 cents per share (22 June 2021)
- Shares issued on exercise of options at 25 cents per share
At the end of the reporting period
7,039,640
390,125
-
-
49,528,085
42,098,320
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.
Page 62
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(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.
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
Options issued as part of a placement
Lapsed/forfeited employee share options
Exercised options
Previously lapsed employee share options
Previously exercised options
Closing balance
Total reserves
(a) Foreign currency translation reserve
2021
$
24,234
24,234
267,906
34,660
-
750,778
(3,007)
(16,307)
-
-
1,034,030
1,058,264
2020
$
24,234
24,234
149,977
32,727
175,973
-
(60,792)
-
(4,629)
(25,350)
267,906
292,140
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.
Page 63
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
24. Accumulated Losses
Accumulated losses at the beginning of the financial year
Adjustment due to adoption of AASB 16
Correction of prior period error
Restated 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
25. Non-Controlling Interest
Note
30
2021
$
Restated
2020
$
(20,887,138)
(21,860,745)
-
-
86,903
1,021,373
(20,887,138)
(20,752,469)
(488,029)
(200,090)
3,007
65,421
(21,372,160)
(20,887,138)
The Company has a 93.8% (2020: 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
26. Earnings Per Share
(a) Reconciliation of earnings to profit or loss from continuing operations
Net profit/(loss) for the year attributable to the owners of the parent entity
Earnings used to calculate basic EPS from continuing operations
Earnings used in the calculation of dilutive EPS from continuing operations
2021
2020
$
76
76
$
76
76
2021
$
Restated
2020
$
(488,029)
(200,090)
(488,029)
(200,090)
(488,029)
(200,090)
(b) Earnings used to calculate overall earnings per share
Earnings used to calculate overall earnings per share
(488,029)
(200,090)
Page 64
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
(c) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
Weighted average number of ordinary shares
outstanding during the year used in calculating basic EPS
Weighted average number of ordinary shares outstanding
during the year used in calculating dilutive EPS
2021
No.
2020
No.
42,358,478
39,038,692
42,358,478
39,038,692
As the Group generated losses in the financial years ended 30 June 2021 and 30 June 2020, options and performance rights
on issue would decrease the loss per share and are therefore anti-dilutive. Accordingly, issued options and performance rights
are excluded from the calculations of diluted earnings per share.
27. 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 property, plant and equipment
- net loss on disposal of property, plant and equipment
- 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 deferred tax asset
- increase/(decrease) in contract liabilities
- increase/(decrease) in trade and other payables
- increase/(decrease) in deferred tax liability
- increase/(decrease) in provisions
- increase/(decrease) in employee benefits
Net cash provided by/(used in) operating activities
2021
$
2020
$
(488,029)
(200,090)
6,170
16,526
410,060
210,869
998,546
17,275
-
34,661
658,432
(28,529)
(83,490)
(279,412)
(104,888)
(54,046)
(48,956)
121,858
1,370,521
402,124
219,147
-
-
19,031
32,727
(791,874)
(55,153)
(107,148)
938,784
(677,065)
65,140
-
(3,188)
(141,039)
Page 65
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
28. Share-Based Payments
During the year the board implemented a new Short Term Incentive Plan (STI Plan) and Long-Term Incentive Plan (LTI Plan)
following advice received from an independent remuneration expert. The STI Plan entitles participating employees to cash
payments if agreed key performance indicators are met. Under the LTI Plan, participating employees receive rights to
receive shares in the future if certain vesting hurdles and performance criteria are met over periods of three to five years.
The LTI Plan was implemented following approval by shareholders of the new Equity Incentive Plan at the Annual General
Meeting in 2020. The Group also has two legacy plans: the Employee Share Option Plan (ESOP) and the Exempt Employee
Share Plan (EESP), which are described below and under which options have been issued to employees.
Details of the plans are outlined below.
Employee Share Option Plan
Under the Employee Share Option Plan (ESOP), the Company may grant options over shares to key executives, directors and
other employees determined by the Directors to enable them to participate in the future growth and profitability of the
Company. The intent is to provide an incentive for performance, and reward for their contributions and to attract and retain
personnel. The options are issued at no consideration. The exercise price of options is determined by the Directors, having
regard to the weighted average market price of the Company's shares prior to the date of grant of the option. Options vest in
accordance with the Directors' determination, and generally one third vest each year over three years from the grant date,
and options have an expiry date of five years from the grant date.
Options issued under the ESOP are not quoted on the Australian Securities Exchange ("ASX"). They are issued under the terms
and conditions of the Plan approved by shareholders, which are available 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
Under the Exempt Employee Share Plan (EESP), shares may be issued to employees for no cash consideration. 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 EESP. The terms of the EESP are available on the Company's website.
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.
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 their shares to their spouse or to
a Company in which the majority of the issued shares are beneficially owned by them or to any trust that the holder is a
beneficiary of.
Page 66
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
Equity Incentive Plan
During the year ended 30 June 2021, the Company adopted the new Global Health Limited Equity Incentive Plan (EIP) which
was approved by shareholders at the Annual General Meeting held on 30 November 2020. The EIP is designed to attract,
motivate, and retain key employees, to provide outstanding and ongoing commitment and effort to the Group.
This plan allows the Board, at its absolute discretion, to make offers to eligible employees to acquire securities in the Company
and to otherwise incentivise employees. The offers may comprise any one or more of: rights; options; and restricted shares. At
the time of making an offer, the Board must have reasonable grounds to believe that the total number of shares (or in respect
of rights or options, the total number of shares which would be issued if those rights or options were exercised) will not exceed
5% of the total number of shares on issue when aggregated with the number of shares issued as a result of offers made at any
time during the previous 3 year period under the Plan or an ASIC exempt arrangement of a similar kind to an employee
incentive scheme.
The options and rights issued under the EIP are not quoted on the ASX. Application will be made to ASX for official quotation
of any shares issued under the plan to the extent required by the ASX Listing Rules.
The Board may determine that the vesting of a right or exercise of an option will be satisfied by the Company making a cash
payment in lieu of an allocation of shares. The Board may determine that some or all of the participant's rights or options will
be settled in this way.
In respect of restricted shares, unless the Board determines otherwise, no payment is required for the grant of a restricted
share, and it only ceases to be a restricted share (i.e. vests) where the vesting period and each other relevant condition
(including all vesting conditions) advised to the participant by the Board have been satisfied or otherwise waived by the
Board and the Company notifies the participant that the restrictions in respect of the restricted share have ceased or no
longer apply.
Long Term Incentive Plan
During the year ended 30 June 2021, the Company initiated a new LTI as set out below:
For the year ended 30 June 2021, participation in the LTI entitled the eligible employees to 300,000 rights to acquire fully paid
ordinary shares in the Company, subject to the achievement of vesting hurdles and agreed performance criteria over the
period from 1 July 2020 to 30 June 2023. If the vesting hurdles and performance criteria are met over the period, some or all of
the rights will vest on 30 June 2023. If the eligible employee remains employed by the Group, the vested rights will be
exercisable until their expiry on 30 June 2026. Each vested right will entitle the eligible employee to receive one share in the
Company at no cost.
The rights will constitute the long-term incentive component of the eligible employee's remuneration for the period 1 July 2020
to 30 June 2023.
Participation in the LTI award for the year ended 30 June 2021 does not guarantee participation in future years.
Page 67
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
A summary of the Company options and rights granted under the ESOP and EIP are as follows:
Exercise
Start of the
during the
during the
during the
the end of
at the end of
Expiry Date
price
year
year
year
year
the year
the year
Granted
Exercised
Forfeited
Balance at
exercisable
Expired/
Vested and
2021
Grant Date
Options
19 December 2016
30 November 2021
0.75
600,000
12 December 2019
0.25
1,095,000
11 December 2024
-
-
Performance Rights
30 June 2026
15 March 2021
-
-
900,000
1,695,000
900,000
-
-
-
-
-
600,000
600,000
(150,000)
945,000
315,000
-
900,000
-
(150,000)
2,445,000
915,000
Exercise
Start of the
during the
during the
during the
the end of
at the end of
Expiry Date
price
year
year
year
year
the year
the year
Granted
Exercised
Forfeited
Balance at
exercisable
Expired/
Vested and
2020
Grant Date
Options
10 June 2015
10 June 2020
19 December 2016
30 November 2019
19 December 2016
30 November 2021
12 December 2019
11 December 2024
0.65
0.75
0.75
0.25
150,000
400,000
600,000
-
-
-
-
1,095,000
1,150,000
1,095,000
-
-
-
-
-
(150,000)
(400,000)
-
-
-
-
-
-
600,000
480,000
1,095,000
-
(550,000)
1,695,000
480,000
The weighted average remaining contractual life of options outstanding at year end was 2.27 years (2020: 3.38).The weighted
average exercise price of outstanding shares at the end of the reporting period was $0.44 (2020: $0.43).
The weighted average remaining contractual life of performance rights outstanding at year end was 5.00 years (2020: NIL).
During the year, NIL shares were issued under the EESP (2020: NIL).
Page 68
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
The weighted average fair value of the performance granted during the year was $0.38. These values were calculated by
using a Black-Scholes option pricing model and Monte-Carlo Simulation applying the following inputs:
Grant date:
Expiry date:
Methodology
Share price at grant date ($):
Exercise price ($):
Weighted average life of the option (years):
Expected share price volatility:
Dividend yield:
Risk-free interest rate:
Fair value at grant date ($):
15 March 2021
30 June 2026
15 March 2021
30 June 2026
Black-Scholes
Monte-Carlo Simulation
0.41
-
2.30
90.00%
%
0.08%
0.410
0.41
-
2.30
90.00%
%
0.08%
0.257
There were no options granted in the years ended 30 June 2021 and 30 June 2020 under the ESOP.
There were no performance rights granted in the year ended 30 June 2020 under the ESOP or EIP.
Historical volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of
future movements.
The share price at 30 June 2021 was $0.475.
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.
Page 69
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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
Lease liabilities
Total financial liabilities
Credit risk
Note
2021
$
2020
$
10
11
17
19
15
4,840,318
550,536
5,390,854
666,276
1,208,968
1,875,244
1,362,270
1,059,512
300,582
3,532
631,209
185,206
1,666,384
1,875,927
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 34 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 low.
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.
Page 70
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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.
Financial liability maturity analysis – Non-derivative
Weighted average
Financial liabilities due for payment
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Borrowings
Lease liabilities
Total contractual outflows
Interest rate
Within 1 Year
1 to 5 Years
Over 5 Years
Total
2021
%
2020
%
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
-
8.59
6.00
-
1,362,270
1,059,512
-
-
8.59
6.00
159,476
2,940
360,111
187,845
141,106
735
1,524,686
1,607,468
141,841
271,098
3,675
274,773
-
-
-
-
-
-
-
-
1,362,270
1,059,512
300,582
3,675
631,209
191,520
1,666,527
1,882,241
The timing of expected outflows is not expected to be materially different from contractual cashflows.
Page 71
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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. 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.
(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. Based on the current
portfolio of borrowings, the Group is not exposed to any significant interest rate risk.
(iii) Price risk
The Group is not exposed to any significant price risk.
30. Correction of Prior Period Error
Correction of treatment of refundable capitalised research and development expenditure for tax purposes
During the year ended 30 June 2021, management performed an overall review of the tax calculations and respective
treatments. As part of this exercise, amongst other minor matters, it was found that the historical treatment of a deferred tax
liability on refundable capitalised research and development was incorrectly applied, which necessitated reworking the tax
calculations. This resulted in adjustments to the previously reported deferred tax calculations. As the matter identified related
to periods preceding 1 July 2019, the majority of the impact was recognised as an adjustment to the opening balances as at
1 July 2019 in accordance with the requirements of AASB 108 Accounting Policies, Changes in Accounting Estimates and
Errors.
Page 72
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
The aggregate effect of the error on the annual financial statements for the year ended 30 June 2021 is as follows:
Previously
30 June 2020
Previously
as at 1 July 2019
stated
Adjustments
Restated
stated
Adjustments
Restated
$
$
$
$
$
$
Opening balance
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Income tax expense/(benefit)
(181,971)
139,962
(42,009)
Net loss for the year attributable to members of
the parent entity
60,128
139,962
200,090
Consolidated Statement of Financial Position
-
-
-
-
-
-
-
-
-
Tax receivable
Deferred tax assets
Deferred tax liabilities
Net assets/(net liabilities)
Accumulated losses
97,930
391,799
(97,930)
-
(52,801)
338,998
334,665
(102,815)
231,850
(1,114,254)
1,032,143
(82,111)
(1,141,160)
1,124,188
(16,972)
269,192
881,412
1,150,604
(725,217)
1,021,373
296,156
21,768,550
(881,412)
20,887,138
21,860,746
(1,021,373)
20,839,373
As a result of the above adjustments, the basic and diluted loss per share (cents) increased by $0.36 cents per share from
$0.15 cents per share to $0.51 cents per share for the year ended 30 June 2020.
31. 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) - resigned 4 March 2021
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 years ended 30 June 2021 and 30 June 2020.
Page 73
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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
2021
$
1,060,305
229,034
86,932
22,140
2020
$
1,070,580
13,911
96,126
19,796
Total key management personnel remuneration
1,398,411
1,200,413
32. 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 31 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) Amounts payable to related parties
The following balance is outstanding at the reporting date in relation amounts payable to related parties:
Amounts payable to KMP *
2021
2020
Opening balance
Closing balance
$
$
75,390
75,390
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.
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Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
33. Auditor’s Remuneration
Remuneration of the auditor for:
- auditing and reviewing the financial statements (HLB Mann Judd)
- reviewing the financial statements (Grant Thornton Audit Pty Ltd)
Total auditor’s remuneration
34. 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
2021
$
66,450
-
66,450
2021
$
102,187
102,187
2020
$
43,000
42,500
85,500
2020
$
102,187
102,187
In the opinion of the Directors, the Group did not have any contingencies at 30 June 2021 (30 June 2020: None).
35. Interests in Subsidiaries
Composition of the Group
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 **
Principal place of business /
Percentage Owned (%)*
Percentage Owned (%)*
Country of Incorporation
2021
2020
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.
**These entities are currently dormant.
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Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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
Investments in subsidiaries 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
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
Restated
2020
$
2021
$
5,531,349
1,989,252
3,509,316
4,631,795
9,040,665
6,621,047
4,650,690
4,845,689
339,914
615,013
4,990,604
5,460,702
24,354,141
21,745,526
(21,362,420)
(20,877,397)
1,058,340
292,216
4,050,061
1,160,345
(488,029)
(141,839)
-
-
(488,029)
(141,839)
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Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
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 2021 or 30 June 2020.
Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020, except as stated elsewhere in
these financial statements.
Contractual commitments
The parent entity did not have any commitments as at 30 June 2021 or 30 June 2020.
37. Impact of COVID-19
The Victorian Government imposed progressive restrictions throughout the financial ended June 2021. Through this period, the
Group continued to operate in the “Work from Home” model which had been implemented in March 2020.
The Executive and Board monitored the status with a focus on ensuring staff well-being and meeting customer expectations.
The main adverse impact was the inability to implement “new-logo” customer projects that had been contracted since
March 2020. Following the easing of restrictions in Victoria, the Group successfully implemented the first of these backlog
projects in December 2020 at the Bellarine Community Health Centre before new sporadic restrictions were imposed through
the six months to June 2021.
These unpredictable and sudden closures stalled the go-live of 2 major projects in Victoria which are now scheduled to
go-live in FY22.
The Group has received financial assistance from the Government in the form of JobKeeper subsidies ($423,000) and other
grants ($20,000), although from October 2020, the Group no longer qualified for any further JobKeeper subsidies.
COVID-19 is completely reshaping healthcare delivery in Australia, and indeed around the world. It has exposed the
inadequacies of healthcare systems. There is an unprecedented shift to online digital technology for the traditional customer
facing healthcare businesses. Everything from patient management and engagement to service delivery and provisioning is
being transformed by telehealth and digital technology providing accurate patient records and timely reporting. The major
benefit of the COVID-19 pandemic will be a better healthcare system that provides accurate information on a timely basis for
the patient and provider. The Group and its platforms are well placed to take advantage of this drive for better productivity
and efficiency to the benefit of all participants in the Australian healthcare system.
There are currently no known additional impacts on the Group.
Page 77
Annual Report
Global Health Limited: ABN 75 091 377 892
Notes to the Financial Statements: For the Year Ended 30 June 2021
38. Events Occurring After the Reporting Date
The consolidated financial report was authorised for issue on 30 September 2021 by the board of directors.
There were a number key appointments subsequent to the financial year end, namely:
Mr Michael Davies was appointed as Chief Executive Officer (CEO) of the Group on 1 July 2021. The current
Managing Director and CEO, Mr Mathew Cherian, will remain with the Group in the new role of Executive Director;
Ms Karen Corry was appointed as a Non-Executive Director to the Group's Board of Directors on 10 August 2021; and
Mr Ershad Ali was appointed as Chief Financial Officer (CFO) of the Group on 16 August 2021.
750,000 rights under the Long-Term Incentive (LTI) Plan were offered to Mr Michael Davies with the performance period taking
effect from 1 July 2021.
An Extraordinary General Meeting ("EGM") of the members of the Company was held on 27 July 2021 and all resolutions
requiring shareholders approval were carried.
On 2 August 2021, the Company issued 7,039,640 ordinary shares at $0.555 per share to various sophisticated and professional
investors under the second tranche of a two-tranche institutional share placement announced to the ASX on 15 June 2021,
raising $3,907,000 before costs.
On 3 August 2021, the Company issued the following options exercisable at $0.8325 and expiring on 3 August 2023:
7,039,663 options attached to new shares issued under the two-tranche institutional share placement with 1 free
option for every 2 shares; and
A total of 1,131,354 options to the Joint Lead Managers for services provided in respect of the two-tranche
institutional share placement in June - July 2021.
On 6 September 2021, 41,667 ordinary shares were issued upon exercise of options.
The COVID-19 pandemic has created unprecedented 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.
Subsequent to year end, the state of emergency in Victoria was extended until 21 October 2021. 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.
39. Statutory Information
The registered office and principal place of business of the Company is:
Global Health Limited
Level 2, 696 Bourke Street
Melbourne Victoria 3000
Page 78
Annual Report
Global Health Limited: ABN 75 091 377 892
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
the consolidated financial statements and notes for the year ended 30 June 2021 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;
2.
the Chief Executive Officer and Chief Financial 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.
3.
in the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable, based on the factors outlined in Note 2(t) of the financial statements.
This declaration is made in accordance with a resolution of the Board of Directors.
Non-Executive Chairman: ................................................................................................................................................
Steven Leigh Pynt
Dated this 30th day of September 2021
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INDEPENDENT AUDIT REPORT
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Annual Report
Global Health Limited
ADDITONAL INFORMATION FOR LISTED PUBLIC COMPANIES
For the Year Ended 30 June 2021
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 24 September 2021.
Substantial shareholders
The number of substantial shareholders and their associates are set out below:
Shareholders
Mathew Cherian
Voting rights
Ordinary Shares
Number of shares
23,376,619
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 38 holders of less than a marketable parcel of ordinary shares.
Ordinary shares
Shares
Options
61
197
110
190
50
608
25
62
47
84
30
248
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Annual Report
Global Health Limited
Additional Information for Listed Public Companies: For the Year Ended 30 June 2021
Twenty largest shareholders
Micron Holdings Pty Ltd (Cherian Family A/C)
Micron Holdings Pty Ltd (Micron Holdings P/L S/F A/C)
CS Third Nominees Pty Limited (HSBC Cust Nom Au Ltd 13 A/C)
Mr Paul McLaren
J P Morgan Nominees Australia Pty Limited
Sandhurst Trustees Ltd (Collins St Value Fund A/C)
Mrs Elizabeth May Priscilla Thomas
Mr Andrew Charles Gracey
B&R James Investments Pty Limited (James Superannuation A/C)
Connaught Consultants (Finance) Pty Ltd (Super Fund A/C)
Alumootil Mathew Cherian
Dr Russell Kay Hancock
Ms Serene Lim & Mr Nicholas Russell Ward (Serene Lim Superfund A/C)
Triglobal Management Limited
DMX Capital Partners Limited
Certane CT Pty Ltd (Hayborough Opp Fund)
Celebrity Nominees Pty Limited (Celerity Super Fund A/C)
Dr Serene Lim (Serene Lim Family A/C)
Dr David Leroy Boyles
Annex Partners Pty Ltd
National Nominees Limited
Unissued equity securities
Options issued: 13,419,098 unlisted options issued to 248 holders.
Securities exchange
The Company is listed on the Australian Securities Exchange.
Ordinary shares
Number held
% of issued shares
17,050,324
30.12
5,388,795
2,416,223
1,927,745
1,845,348
1,801,802
1,728,378
1,065,000
1,050,000
1,000,500
937,500
800,000
770,000
700,000
630,631
612,612
566,942
525,000
500,000
500,000
489,035
9.52
4.27
3.41
3.26
3.18
3.05
1.88
1.85
1.77
1.66
1.41
1.36
1.24
1.11
1.08
1.00
0.93
0.88
0.88
0.86
42,305,835
74.72
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Annual Report