INDOOR SKYDIVE AUSTRALIA GROUP LIMITED
ABN: 39 154 103 607
2017
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT CONTENTS
CHAIRMAN’S REPORT
DIRECTORS’ REPORT
04
07
REMUNERATION REPORT (AUDITED) 13
AUDITOR’S INDEPENDENCE
DECLARATION
FINANCIAL REPORT
ADDITIONAL INFORMATION
CORPORATE DIRECTORY
25
26
70
73
Cover: “Be A Superhero” campaign
captured the imagination of Australia in
2017. One of our amazing Junior iFLYERS,
Carissa, shows us her own Superhero pose
This page: AirRider is bringing the dream
of flight to Asia later this year, and the
Choi-Lee family and friends can’t wait!
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REPORTLogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT 3
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT Chairman’s Report
In 2017 ISA Group took its first steps towards
becoming an international owner and
operator of indoor skydiving facilities.
Development commenced on our first
international facility, AirRider 1 Utama in
Malaysia, and the Group launched its
distinctive AirRider brand for the international
market. We also continued the roll out of
our Australian iFLY facilities with iFLY Perth
commencing operations in December
2016. These key events are detailed in this
Annual Report.
FIRST INTERNATIONAL FACILITY
ISA Group has partnered with Bandar Utama
City Sdn Bhd (1 Utama) to establish its first
international indoor skydiving facility in Kuala
Lumpur, Malaysia. 1 Utama operates one
of the largest shopping centres in the world
and is currently implementing an extension
to connect the centre to Kuala Lumpur’s
MTR rail network. AirRider 1 Utama will be an
integral part of the new building enjoying
easy access from the existing centre, local
transport hubs and the new purpose built
rail station. AirRider 1 Utama is located a
convenient 15 minutes from the centre of
Kuala Lumpur.
AirRider 1 Utama is the result of a long
and detailed due diligence, planning and
development process. An MOU was signed
in December 2016. The MOU established
the commercial terms of the joint venture
and paved the way for a final agreement
and the commencement of construction.
By partnering with 1 Utama, ISA Group
leveraged strong local knowledge and
expertise, reduced capital exposure for
the Group’s first international facility and,
importantly, secured a purpose built site in
a key high thoroughfare location.
AirRider 1 Utama is scheduled to open at the
end of 2017.
AIRRIDER
In preparation for the Group’s international
facilities launch a new brand, AirRider, was
developed. AirRider is a contemporary and
engaging brand designed to reflect the
stimulating nature of indoor skydiving and
the skills and expertise that can be learned
through participation in the sport.
The brand colours have been chosen to
reflect the Group’s Australian heritage
while appealing to the target audience.
Market testing was undertaken as part of the
development to ensure the brand resonated
with key segments of the Asian market.
AirRider is wholly owned by ISA Group and
will be used in Group facilities operated
throughout South East Asia, China and Hong
Kong. As the Group develops its international
offering, the AirRider brand will be used
to signal to customers the quality of the
experience they will receive, regardless of
location, and the brand will offer assurance
of the highest safety standards.
INVESTMENTS IN SYSTEMS AND
GROWTH
ISA Group has continued to grow throughout
the year. There has been a strong focus
redeveloping and implementing improved
systems and processes. A key initiative has
been the development of international
systems to enable a seamless offering to
multiple locations in a variety of currencies
and languages. The customer experience
interface with the booking and sales system
has also been reviewed and refined to
improve the effectiveness on our “mobile
first” digital initiatives.
KEN GILLESPIE
CHAIRMAN
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT An international booking system
will be rolled out over the coming
months with AirRider 1 Utama being
the first ISA Group facility to employ
indoor skydiving specific systems. On
completion of the AirRider 1 Utama
deployment the systems will be able to
be implemented across our other indoor
skydiving facilities.
STABLE AUSTRALIAN OPERATIONS
2017 has also been an exciting year for
our Australian operations.
Building on the lessons learnt from earlier
construction and operations experience,
ISA Group opened its first indoor
skydiving facility in Perth. iFLY Perth was
delivered ahead of schedule despite
a challenging Australian construction
environment.
iFLY Perth opened to the public on 14
December 2016. Experiences gained
from the Group’s east coast facilities
ensured that iFLY Perth had few teething
problems and was immediately able to
operate as a polished, high standard
concern. Opening just as the school
holiday period commenced, iFLY Perth
experienced high levels of occupancy
and has continued to be very well
received by the Perth community.
iFLY Downunder, located in Penrith
NSW, continues to be our flagship
operation. With its large flying chamber,
talented coaches and its hosting
of the Australian Indoor Skydiving
Championships each year, it appeals to
the professional and enthusiast market.
The chamber allows these groups to
develop their outdoor expertise and
skills by utilising the exacting simulation
provided by our indoor facility.
Through our strong partnership with
the Australian Parachute Federation
(APF) a new world first indoor/outdoor
skydiving training program has been
implemented.
Our iFLY Gold Coast facility caters to
the tourist market. It is located in the
iconic Surfer’s Paradise and is central
to tourist accommodation and public
transport. A number of efficiencies
were implemented across the Group
in 2017 and these have resulted in iFLY
Gold Coast’s performance improving
throughout the course of the year.
NEXT STEPS
The Group remains focussed on our
stated strategic intent of growth and
expansion into South East Asia, China
and Hong Kong. The Group will continue
to seek opportunities to grow the
AirRider brand across the region and
build a reputation for the delivery of a
superior customer experience with an
ongoing commitment to safety.
ISA Group is exploring a number of
potential opportunities across the
region. As with each of the Group
facilities any expansion will be subject
to detailed due diligence including
site feasibility and assessment, market
analysis and the implementation of risk
mitigation strategies.
A second Sydney indoor skydiving
facility at EQ, Moore Park in the
Eastern Suburbs is being considered.
Further work aimed at understanding
construction and lease costs and their
impact of the delivery of an acceptable
rate of return is a current focus.
The Group has not declared a dividend
for the 2017 financial year. We do not
anticipate there being a dividend
declared while the Company’s focus is
on growth.
Thank you for your ongoing support of
our Company. I encourage you to read
the remainder of this Annual Report,
including the financial performance,
and invite you to attend our Annual
General Meeting in October 2017.
KEN GILLESPIE
CHAIRMAN
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT CHAIRMAN’S REPORT
KEN GILLESPIE AC, DSC, CSM
Chairman
WAYNE JONES
Director & Chief Executive Officer
DANNY HOGAN MG
Director & Chief Operations Officer
STEPHEN BAXTER
Non-Executive Director
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT School kids playing in
the wind at iFLY Gold
Coast as part of their
STEM educational visit
DIRECTORS’
REPORT
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT Directors’ Report
Your Directors are pleased to present
their report on the consolidated entity
(referred to hereafter as ISA Group)
consisting of Indoor Skydive Australia
Group Limited (the Company) and the
entities it controlled at the end of, or
during, the year ended 30 June 2017.
DIRECTORS
The individuals listed below were Directors of the Company
at all times during the year and at the date of this Directors’
Report, unless otherwise stated:
Ken Gillespie AC, DSC, CSM
Chairman – Non-Executive
Appointed 18 October 2012
One of Australia’s most distinguished career soldiers,
Lieutenant General (retired) Ken Gillespie, AC, DSC, CSM, is
the Chairman of ISA Group. Ken is on the Board of Directors
of leading local defence manufacturer, Airbus Asia Pacific
Group, and ASX listed, Senetas Limited. He is also Chair of
the Council of the Australian Strategic Policy Institute, an
internationally recognised Canberra based think tank, on the
advisory board of Veolia Waste and a board member of the
not-for-profit, ANZAC Research Institute. Ken also provides
advice to the NSW Government in his role as Co-ordinator of
Rural & Regional Infrastructure of NSW.
Ken, served with the Australian Defence Force for over 43
years, and was Chief of Army for three years before his
retirement in June 2011. Previously he had served as Land
Commander Australia and Vice Chief of the Australian
Defence Force.
During the year Ken was a member of the Remuneration &
Nomination Committee (Chairman until 23 August 2016) and
the Audit & Risk Committee until the Committee structure was
revised in May 2017.
Wayne Jones
Director & Chief Executive Officer
Appointed 4 November 2011
Wayne served for 21 years in the Australian Defence Force
and was part of the highly acclaimed Special Air Service
Regiment for the last 14 years of his career. Wayne holds
various senior instructor qualifications and has been at the
forefront of Australian Military Freefall development and
training over the past 10 years. He is still involved in the training
of special forces troops and he continues to participate in the
sport of skydiving at the highest levels. Wayne is a member of
the Australian Institute of Company Directors.
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT Danny Hogan MG
Director & Chief Operations Officer
Appointed 4 November 2011
David Murray AO
Former Non-Executive Director
Appointed 3 February 2014 Resigned 25 April 2017
Danny enlisted in the Australian Regular Army in 1991, and
in 1997 was selected for further service within the Special Air
Service Regiment. He has been recognised and awarded for
his actions and leadership during his 21 year military career
including receiving the Medal for Gallantry. He was selected
and completed a two year military exchange in the USA
with two of the USA’s elite Special Forces Commands. While
in the USA he gained his freefall parachuting qualifications
and developed a very strong background in the use of
vertical wind tunnel simulation training. Danny was a highly
qualified senior dive instructor within the Special Air Service
Regiment. Danny is a member of the Australian Institute of
Company Directors.
Steve Baxter
Non-Executive Director
Appointed 13 August 2012
Former Australian Regular Army electronics technician turned
successful entrepreneur, Steve is the founder of early Internet
Provider SE Net and co-founder of telecommunications
infrastructure company, Pipe Networks Ltd. In 2008 he
moved to the USA and joined Google Inc deploying high
speed telecommunication infrastructure, before returning
to Australia.
Steve is known for his entrepreneurial skills and appears on the
popular TV show “Shark Tank”. He is the founder of Brisbane
based not-for-profit River City Labs - an early stage and
start-up co-working space for tech and creative companies.
Steve is a former director of Other Levels Limited (resigned
31 December 2016) and Vocus Communications Limited
(resigned 22 February 2016).
Prior to the restructure of our Committees, Steve was
Chairman of the Remuneration & Nomination Committee
(from 23 August 2016) and a member of the Audit & Risk
Committee (from 23 August 2016 when he stepped down
from the role as Chairman)
Former Chief Executive Officer of Commonwealth Bank of
Australia and Chairman of the Australian Government Future
Fund, David has over 40 years’ experience in banking and
financial services. He was appointed an Officer of the Order
of Australia in 2007 for services to the finance sector nationally
and internationally through strategic leadership and policy
development, to education through fostering relations
between educational institutions, business and industry, and
to the community as a supporter and fundraiser. David is
Chairman of the Butterfly Foundation.
Kirsten Thomson
Non-Executive Director
Appointed 21 June 2016 Resigned 25 April 2017
Kirsten Thomson has over 20 years’ experience in the fields
of funds management and equities research. She has
demonstrated strong success in a broad range of strategic
challenges including competing business models, challenging
economic cycles and differing and emerging commercial
approaches to doing business in Australia and abroad.
Prior to her resignation Kirsten was Chairman of the Audit
& Risk Committee and a member of the Remuneration &
Nomination Committee.
COMPANY SECRETARY
Fiona Yiend
General Counsel & Company Secretary
Appointed 16 October 2013
Fiona Yiend is an experienced company secretary with
has over 8 years’ experience in the listed environment. She
holds a Bachelor of Arts, Bachelor of Laws (Hons), Graduate
Diploma in Applied Finance and Investments, Graduate
Diploma in International Law and a Graduate Diploma in
Applied Corporate Governance. She is also a member of the
Australian Corporate Lawyers Association (ACLA).
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT DIRECTOR’S REPORT
DIRECTORS’ MEETINGS
The number of meetings of the Directors’ and Audit & Risk Committee that Directors were
eligible to attend and the number of meetings attended by each Director during the year
are listed below. There were no Remuneration & Nomination Committee meetings held in
the period.
In May/June 2017 ISA Group restructured its Committees so that Committee matters will, for
the present, be dealt with by the full Board in accordance with the appropriate Committee
Charter and governance processes.
BOARD
AUDIT AND RISK
COMMITTEE
Eligible to Attend
Attended
Eligible to Attend
Attended
Ken Gillespie
Wayne Jones
Danny Hogan
Stephen Baxter
David Murray
Kirsten Thomson
12
12
12
12
10
10
11
12
12
11
10
10
2
2
1
2
2
1
DIRECTORS’ SHAREHOLDINGS
The following table sets out each Director’s relevant interest in shares and options in shares of
ISA Group as at the date of this report. No Director has any relevant interest in shares or options
in shares of a related body corporate of ISA Group as at the date of this report.
DIRECTOR
Ken Gillespie
Wayne Jones
Danny Hogan
Stephen Baxter
NUMBER OF SHARES AND NATURE OF INTEREST
Indirect interest in 436,142 shares held by Sector West Pty
Ltd ATF Gillespie Family Trust
Indirect interest in 16,060,000 shares held by Excalib-air Pty
Ltd, indirect interest in 350,000 shares held by Project Flight
Pty Ltd ATF Wayne Jones Superannuation Fund, indirect
interest in 14,000 shares held by Project Gravity Pty Ltd,
indirect interest in 2,627,307 shares held by Project Gravity
Pty Ltd ATF Jones Family Trust
Indirect interest in 16,060,000 shares held by Excalib-air
Pty Ltd, indirect interest in 200,000 shares held by Hogan
Superannuation Fund, indirect interest in 2,187,833 shares
held by Australian Indoor Skydiving Pty Ltd ATF Hogan
Family Trust
Indirect interest in 17,039,475 shares held by Birkdale
Holdings (QLD) Pty Ltd
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT DIVIDENDS
No dividends were declared during the period.
PRINCIPAL ACTIVITIES
ISA Group owns and/or operates Indoor Skydiving Facilities
across Australia and South East Asia.
It operates three Indoor Skydiving Facilities in Australia; iFLY
Downunder (Penrith NSW), iFLY Gold Coast and iFLY Perth.
ISA Group has an agreement for lease for its fourth Australian
Indoor Skydiving Facility at Entertainment Quarter, Moore Park
Sydney.
ISA Group is currently developing its first Indoor Skydiving
Facility in South East Asia. Located at 1 Utama, Kuala Lumpur
Malaysia, AirRider 1 Utama is due to open by the end of
2017 and will be operated under our unique international
“AirRider” brand.
Negotiations with a number of potential partners continue in
relation to other opportunities in South East Asia, China and
Hong Kong.
REVIEW OF OPERATIONS
With the opening of iFLY Perth, ISA Group’s operations
have focussed on group stability and consolidation.
With 3 operating facilities in Australia, ISA Group is now
well positioned to increase performance and promote
organic growth.
In the last 6 months of the financial year the operational
focus has been on implementing efficiencies and driving
EBITDA margin performance. Tailored offerings have been
developed at each of our facilities to capitalise on local
opportunities and market trends.
In the second half of the year iFLY Gold Coast operations
have started to see an increase in EBITDA margin. Work in this
area is continuing and performance is expected to improve
into financial year 2018. iFLY Downunder continues to perform
well with a strong base of professional flyers. iFLY Perth has
performed strongly since its opening ahead of schedule
on 14 December 2016. Its overall performance is similar to
iFLY Downunder.
For the year ended 30 June 2017, ISA Group reported
earnings before interest, tax, depreciation and amortisation of
$1,233,517 excluding share based payments and lease straight
lining expense (2016: loss of $140,409).
ISA Group reported a net loss after tax of $891,290 (2016: loss of
$1,506,760). To fully understand our results, please refer to the
full financial statements and explanatory notes included in this
Annual Report.
CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the affairs of the
Company during the financial year which have not been
disclosed to the market.
SUBSEQUENT EVENTS
Since the reporting date the Board of Directors has resolved
to issue 4,150,000 unlisted options as a long term incentive to
eligible employees (incentive options). 1,950,000 incentive
options were issued to eligible employees on 24 August
2017 and 2,200,000 incentive options will be issued to the
Company’s executive directors subject to shareholder
approval. The incentive options have an exercise price of
$0.35 and expire on 23 August 2021. 50% of the incentive
options will vest after 2 years of continuous service and 50%
after 3 years of continuous service from 24 August 2017.
On 4 September 2017 the Company entered into a binding
Memorandum of Understanding with Avest Capital Company
Limited to enable the Company to conduct further due
diligence and to establish a commercial framework for the
development and operation of indoor skydiving facilities in
China including Hong Kong under ISA Group’s AirRider brand.
See ASX Announcement made on 4 September 2017 for
further details.
No other matters or circumstances have arisen since the
end of the financial year which significantly affected or may
significantly affect the operations of the consolidated group,
the results of those operations or the state of affairs of the
consolidated group in future financial years.
FUTURE DEVELOPMENTS
Our focus on the growth and development of indoor skydiving
facilities across Australia, South East Asia, China and Hong
Kong continues. In the opinion of the Directors, disclosure
of any further information regarding business strategies and
future development of ISA Group would be unreasonably
prejudicial to the Company.
REMUNERATION REPORT (AUDITED)
The Remuneration Report set out from page 13 forms part of
this Directors’ Report.
INTERESTS IN ISA GROUP SECURITIES
Details of the ISA Group securities issued during the year, and
the number of ISA Group securities on issue as at 30 June 2017
are detailed in Note 15 of the Financial Statements and form
part of this Directors’ Report.
With the exception of performance rights which are discussed
in the Remuneration Report, ISA Group did not have any
options on issue as at 30 June 2017.
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ENVIRONMENTAL REGULATION
ISA Group is not subject to any significant environment
regulation under any law of the Commonwealth or of a State
or Territory.
DIRECTORS’ AND OFFICERS’ INSURANCE
During the financial year, ISA Group has paid premiums to
insure all Directors and Officers against liabilities for costs
and expenses incurred by them in defending any legal
proceedings arising out of their conduct while acting in
the capacity of a director or officer of the Company, other
than conduct involving a wilful breach of duty in relation to
the Company. In accordance with common commercial
practice, the insurance policy prohibits disclosure of the nature
of the liability insured against and the amount of the premium.
NON-AUDIT SERVICES
The Directors have considered and are satisfied that the
provision of non-audit services during the year is compatible
with the general standard of independence for auditors
imposed by the Corporations Act 2001. The Directors are
satisfied that the services disclosed below did not compromise
the external auditor’s independence for the following reasons:
• all non-audit services are reviewed and approved by the
Board prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor;
and
Directors’ Report
Directors’ Report
NON-AUDIT SERVICES
NON-AUDIT SERVICES
The Directors have considered and are satisfied that
The Directors have considered and are satisfied that
The Directors and Company Secretary of ISA Group are also
the provision of non-audit services during the year
the provision of non-audit services during the year
party to a deed of access and indemnity.
is compatible with the general standard of
is compatible with the general standard of
The Company has not otherwise, during or since the financial
independence
the
imposed by
for auditors
independence
the
Corporations Act 2001. The Directors are satisfied
Corporations Act 2001. The Directors are satisfied
year, indemnified or agreed to indemnify an officer or auditor
of the Company or any related body corporate against a
the services disclosed below did not
that
the services disclosed below did not
liability incurred by such an officer or auditor.
compromise the external auditor’s independence
compromise the external auditor’s independence
for the following reasons:
for the following reasons:
imposed by
for auditors
The fees paid or payable to Grant Thornton Audit
Pty Ltd for non-audit services provided during the
year ended 30 June 2017 were $7,800.
• the nature of the services provided does not compromise
the general principles relating to auditor independence in
The fees paid or payable to Grant Thornton Audit
accordance with APES 110: Code of Ethics for Professional
Pty Ltd for non-audit services provided during the
Accountants set by the Accounting Professional and Ethical
year ended 30 June 2017 were $7,800.
Standards Board.
AUDITOR’S INDEPENDENCE DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
The Auditor’s independence declaration at page x
forms part of this Directors’ Report.
The fees paid or payable to Grant Thornton Audit Pty Ltd for
non-audit services provided during the year ended 30 June
The Auditor’s independence declaration at page x
2017 were $7,800.
forms part of this Directors’ Report.
ROUNDING OF AMOUNTS
ROUNDING OF AMOUNTS
the
the Board prior
the Board prior
AUDITOR’S INDEPENDENCE DECLARATION
ISA Group is not an entity to which ASIC Legislative
ISA Group is not an entity to which ASIC Legislative
The Auditor’s independence declaration at page x forms part
Instrument 2016/199 applies. Accordingly,
Instrument 2016/199 applies. Accordingly,
of this Directors’ Report.
amounts in the financial statements and annual
amounts in the financial statements and annual
reports have been rounded to the nearest dollar
reports have been rounded to the nearest dollar
ROUNDING OF AMOUNTS
not the nearest thousand dollars.
not the nearest thousand dollars.
ISA Group is not an entity to which ASIC Legislative Instrument
2016/199 applies. Accordingly, amounts in the financial
statements and annual reports have been rounded to the
nearest dollar not the nearest thousand dollars.
PROCEEDINGS ON BEHALF OF THE COMPANY
-
all non-audit services are reviewed and
all non-audit services are reviewed and
No person has applied to the court under section 237 of the
approved by
to
approved by
to
Corporations Act 2001 for leave to bring, or intervene in,
commencement to ensure they do not
commencement to ensure they do not
proceedings on behalf of any entity within ISA Group.
integrity and
adversely affect
integrity and
the
adversely affect
objectivity of the auditor; and
objectivity of the auditor; and
AUDITOR
-
the nature of the services provided does
Grant Thornton Audit Pty Ltd was appointed as ISA Group’s
ISA Group does not currently have any on-market
ISA Group does not currently have any on-market
not compromise the general principles
auditor on 24 January 2017 and continues in office until the
buy-back of shares.
buy-back of shares.
relating to auditor independence in
2017 Annual General Meeting. Shareholders will be asked to
accordance with APES 110: Code of Ethics
approve the appointment of Grant Thornton Audit Pty Ltd as
for Professional Accountants set by the
auditor at the 2017 Annual General Meeting in accordance
Accounting Professional and Ethical
with section s327C of the Corporations Act 2001.
Standards Board.
the nature of the services provided does
not compromise the general principles
relating to auditor independence in
accordance with APES 110: Code of Ethics
for Professional Accountants set by the
Accounting Professional and Ethical
Standards Board.
BUY BACK
ISA Group does not currently have any on-market buy-back
of shares.
BUY BACK
BUY BACK
that
-
-
This Directors’ Report is made in accordance with a resolution of the directors made pursuant to section 298(2)
of the Corporations Act.
This Directors’ Report is made in accordance with a resolution of the directors made pursuant to section 298(2)
of the Corporations Act.
This Directors’ Report is made in accordance with a resolution of the directors
made pursuant to section 298(2) of the Corporations Act.
On behalf of the Board
On behalf of the Board
On behalf of the Board
Ken Gillespie
Chairman
26 September 2017
KEN GILLESPIE
CHAIRMAN
Ken Gillespie
26 September 2017
Chairman
Sydney
26 September 2017
Sydney
Sydney
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WAYNE JONES
DIRECTOR & CHIEF EXECUTIVE OFFICER
Wayne Jones
Director & Chief Executive Officer
Wayne Jones
Director & Chief Executive Officer
Indoor Skydive Australia Group Limited
Indoor Skydive Australia Group Limited
2017 Annual Report
2017 Annual Report
12
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION
REPORT
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT Remuneration Report
REMUNERATION REPORT
Dear Shareholder
I am pleased to present to you the ISA Group 2017 Remuneration Report. This report sets out the
remuneration strategy and outcomes for the financial year ended 30 June 2017.
Towards the end of each financial year the Directors of ISA Group review our remuneration strategy for the
prior year against operational performance and formulate our remuneration strategy for the coming year. We
take into account a number of factors including the delivery of strategic outcomes and the performance of the
business, as well as market factors that influence remuneration and impact retention strategies.
In June 2016, ISA Group determined that due to the impact of the delay of the opening of our Gold Coast
facility and the need to focus on delivering the Perth facility the Key Management Personnel (KMP) would not
receive a remuneration increase for the 2017 financial year. We also took the opportunity to consider the
focus of each of our KMP and restructured roles as appropriate.
We have a strong and talented management team which is committed to delivering our strategic and
operational goals. Our remuneration strategy is designed to drive performance and provide reasonable and
fair market remuneration. I believe we are achieving this and our KMP continues to strive to increase
shareholder value and grow the company’s operations and performance.
As always, we welcome your feedback on our remuneration strategy and seek your ongoing support to drive
performance.
Yours sincerely
Ken Gillespie
Chairman of the Board
1.
Introduction
This Remuneration Report for the year ended 30 June 2017 forms part of the ISA Group Directors’ Report and
has been audited in accordance with the Corporations Act 2001.
The Remuneration Report details remuneration information for the KMP of ISA Group comprising the Non-
Executive Directors, Executive Directors and the senior executives responsible for planning, directing and
controlling the activities of ISA Group.
2. Remuneration Governance
ISA Group implements strong corporate governance practices to ensure that it’s remuneration strategy,
policies and practices promote shareholder growth through the achievement of strategic and operational goals
while fairly rewarding employees.
Consideration of Remuneration & Nomination Matters
ISA Group implements a corporate governance system whereby all remuneration matters are considered by a
‘one up’ manager for approval. This system is implemented across the Company and ensures that no
individual determines their own remuneration or the remuneration of their direct reports. In the case of the
Chief Executive Officer and his direct reports all remuneration matters are submitted to the Board for
consideration and, if appropriate, approval.
Where appropriate external advice is obtained for the benefit of the Board in considering remuneration
matters. This advice can take the form of remuneration benchmarking, remuneration consultancy, tax or
financial consultancy services.
The approval of remuneration matters is restricted to non-executive directors only.
14
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Remuneration Report
Dear Shareholder
I am pleased to present to you the ISA Group 2017 Remuneration Report. This report sets out the
remuneration strategy and outcomes for the financial year ended 30 June 2017.
Towards the end of each financial year the Directors of ISA Group review our remuneration strategy for the
prior year against operational performance and formulate our remuneration strategy for the coming year. We
take into account a number of factors including the delivery of strategic outcomes and the performance of the
business, as well as market factors that influence remuneration and impact retention strategies.
In June 2016, ISA Group determined that due to the impact of the delay of the opening of our Gold Coast
facility and the need to focus on delivering the Perth facility the Key Management Personnel (KMP) would not
receive a remuneration increase for the 2017 financial year. We also took the opportunity to consider the
focus of each of our KMP and restructured roles as appropriate.
We have a strong and talented management team which is committed to delivering our strategic and
operational goals. Our remuneration strategy is designed to drive performance and provide reasonable and
fair market remuneration. I believe we are achieving this and our KMP continues to strive to increase
shareholder value and grow the company’s operations and performance.
As always, we welcome your feedback on our remuneration strategy and seek your ongoing support to drive
performance.
Yours sincerely
Ken Gillespie
Chairman of the Board
1.
Introduction
This Remuneration Report for the year ended 30 June 2017 forms part of the ISA Group Directors’ Report and
has been audited in accordance with the Corporations Act 2001.
The Remuneration Report details remuneration information for the KMP of ISA Group comprising the Non-
Executive Directors, Executive Directors and the senior executives responsible for planning, directing and
controlling the activities of ISA Group.
2. Remuneration Governance
ISA Group implements strong corporate governance practices to ensure that it’s remuneration strategy,
policies and practices promote shareholder growth through the achievement of strategic and operational goals
while fairly rewarding employees.
Consideration of Remuneration & Nomination Matters
ISA Group implements a corporate governance system whereby all remuneration matters are considered by a
‘one up’ manager for approval. This system is implemented across the Company and ensures that no
individual determines their own remuneration or the remuneration of their direct reports. In the case of the
Chief Executive Officer and his direct reports all remuneration matters are submitted to the Board for
consideration and, if appropriate, approval.
Where appropriate external advice is obtained for the benefit of the Board in considering remuneration
matters. This advice can take the form of remuneration benchmarking, remuneration consultancy, tax or
financial consultancy services.
The approval of remuneration matters is restricted to non-executive directors only.
Remuneration Report
REMUNERATION REPORT
Prior to May 2017, the corporate governance processes were conducted through the Remuneration &
Nomination Committee. Since that time remuneration matters are considered by the Board of Directors
(Executive Directors excluded) under the auspices of the Remuneration & Nomination Committee Charter
which is available at www.indoorskydive.com.au.
Remuneration Recommendations
ISA Group engages independent external consultants to provide advice and assistance in relation to
remuneration from time to time as required. During the period, we received preliminary advice on long term
incentives to drive performance in 2018 and the following years. This advice is continuing and relates to future
remuneration.
No remuneration recommendations from independent remuneration advisors were received in relation to the
2017 financial year.
Hedging of Remuneration
ISA Group KMP and their closely related parties are prohibited from hedging or otherwise reducing or
eliminating the risk associated with equity based incentives.
3. Key Management Personnel
The KMP for ISA Group for 2017 comprise the Non-Executive Directors, Executive Directors and the senior
executives responsible for planning, directing and controlling the activities of ISA Group.
Executive KMP
Wayne Jones
Executive Director & Chief
Executive Office
Non-Executive Directors:
Ken Gillespie
Chair
Stephen Baxter
Director
Danny Hogan
Executive Director & Chief
Operations Officer
Former KMP:
Salesh Nischal
Chief Financial Officer
(appointed 10 May 2017)
Brett Sheridan
Chief Commercial Officer
Fiona Yiend
General Counsel & Company
Secretary
A short profile of the Executive KMP follows:
David Murray
Director until 25 April 2017
Kirsten Thomson
Director until 25 April 2017
Stephen Burns
Chief Financial Officer until 17
May 2017
Wayne Jones
Director & Chief
Executive Officer
Wayne Jones is the Chief Executive Officer of ISA Group and was appointed to the role on
the foundation of the company in November 2011. He has been one of the key forces
behind the successful establishment of ISA Group.
Wayne holds formal qualifications in Project Management, Business, Security and Risk
Management and Management (Financial Management) and is a Member of the
Australian Institute of Company Directors. He has over 21 years’ experience in leading
teams and delivering results. Prior to establishing ISA Group Wayne was a Commander
within the Special Air Service Regiment and responsible for the development and
performance of teams in changing environments.
Indoor Skydive Australia Group Limited
14
2017 Annual Report
Indoor Skydive Australia Group Limited
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15
15
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
Danny Hogan
Director & Chief
Operations
Officer
Salesh Nischal
Chief Financial
Officer
Brett Sheridan
Chief Commercial
Officer
Fiona Yiend
General Counsel
& Company
Secretary
Danny Hogan is the Chief Operations Officer of ISA Group and a founder of the
company. His primary responsibilities are the Company’s operations including the
designing, development and construction of our indoor skydiving facilities.
Danny is a Member of the Australian Institute of Company Directors and is qualified in
Military Freefall Parachuting Operations and was a highly qualified senior dive instructor
within the Special Air Service Regiment. Prior to establishing ISA Group Danny was a
highly decorated member of the Special Air Service Regiment and received the
distinguished Medal of Gallantry. Danny has proven expertise in VWT operations and the
ability to lead teams and manage complex environments.
Joining the company in May 2017, Salesh Nischal has 20 years of extensive financial and
operational experience in the ASX reporting environment within large diverse
organisations. He also has a proven ability to improve operations, impact business growth
and accomplish sustainable profit growth through achievements in strategic outcomes,
financial management, cost control management, internal controls and productivity/
efficiency improvements.
With experiences in building, and leading business transformation, Salesh has delivered
significant achievements in strategy execution, risk management, treasury management,
tax planning, acquisitions and divestments, and IT systems developments. Salesh is
committed to maximising long-term shareholder value, ensuring a balanced portfolio of
growth initiatives and maintaining the highest level of integrity and transparency.
Salesh holds a Bachelor of Arts degree in accounting and has CPA qualifications.
Brett Sheridan joined ISA Group in May 2013 in the role of Chief Marketing Officer and
became the Chief Commercial Officer in July 2016. Prior to that time, Brett provided ISA
Group with contracting services and has been involved with the Company since its
inception. Brett is responsible for driving customer demand, increasing brand recognition
and analysing market opportunities as well as driving future growth and the strategic
direction of the Company.
Brett is an experienced marketer with over 15 years association with the tourism and
leisure industry and over 10 years of entrepreneurial experience. Brett’s key expertise is
to deliver business growth which he has proven repeatedly in the past.
Fiona Yiend joined ISA Group in September 2013 as General Counsel and Company
Secretary. She is responsible for managing ISA Group’s legal matters, corporate
governance and board administration.
Fiona holds a Graduate Diploma of Applied Corporate Governance from the Governance
Institute of Australia (formerly Chartered Secretaries Australia), Graduate Diplomas in
International Law and in Applied Finance and Investment and a Bachelor of Laws (second
class honours) and Bachelor of Arts. Fiona’s formal qualifications are complemented by
over 8 years’ experience as General Counsel and Company Secretary of ASX listed
entities.
Profiles of Non-Executive Directors can be found on pages 8 and 9.
4. Remuneration Principles, Strategy and Outcomes
Remuneration principles
ISA Group’s remuneration strategy is based on the following principles:
•
•
Retain Top Talent – As ISA Group operates in a unique environment with a limited pool of talent ISA
Group seeks to retain the high calibre people it has identified.
Align rewards with business performance – ISA Group seeks to align remuneration rewards with
business performance through the use of “at risk” remuneration and the assessment of performance.
16
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Remuneration Report
REMUNERATION REPORT
Remuneration Report
•
•
Support the execution of business strategy – ISA Group seeks to motivate employees to execute our
aggressive growth strategy by setting performance objectives in line with strategic outcomes.
Fairness, equity and consistency – ISA Group implements a consistent, transparent process for
remuneration review and structures remuneration to achieve equity for like positions taking into
account performance and tenure.
These principles are applied as we assess remuneration in the context of the operational demands of the
business, the labour market we operate in, and the returns to shareholders.
Remuneration Strategy
ISA Group’s remuneration strategy for 2017 focused on driving performance to achieve three operating indoor
skydiving facilities. Short term incentives were used to focus on achieving financial results with long term
incentives designed to encourage the retention of key employees over the high growth period.
The following table sets out the mix of remuneration types and their alignment to our remuneration strategy:
Fixed Remuneration
Short-Term Incentive (STI)
Long Term Incentive (LTI)
Consists of
Base salary
Annual cash payment
subject to the
achievement of financial
targets
Participation in the ISA
Group Performance Rights
Plan
Rewards for
Experience, skills,
capability and
performance.
Achieving set financial
outcomes for the financial
year.
Tenure over a long term
period
Is
Fixed
At Risk
At Risk
Reviewed annually
Wholly dependent on
achieving the set financial
targets
Wholly dependent on
achieving the set tenure
requirements
Brett is an experienced marketer with over 15 years association with the tourism and
leisure industry and over 10 years of entrepreneurial experience. Brett’s key expertise is
to deliver business growth which he has proven repeatedly in the past.
Determined by
Retention of individual over
a course of time.
Review of individual
performance,
experience and
capability within the
context of the overall
business
performance.
Performance against
predetermined financial
targets. STI is only
payable if the financial
targets are achieved. It
includes an initial target
and a stretch target to
encourage continued
performance.
Danny Hogan
Danny Hogan is the Chief Operations Officer of ISA Group and a founder of the
Director & Chief
company. His primary responsibilities are the Company’s operations including the
designing, development and construction of our indoor skydiving facilities.
Operations
Officer
Danny is a Member of the Australian Institute of Company Directors and is qualified in
Military Freefall Parachuting Operations and was a highly qualified senior dive instructor
within the Special Air Service Regiment. Prior to establishing ISA Group Danny was a
highly decorated member of the Special Air Service Regiment and received the
distinguished Medal of Gallantry. Danny has proven expertise in VWT operations and the
ability to lead teams and manage complex environments.
Salesh Nischal
Chief Financial
Officer
Joining the company in May 2017, Salesh Nischal has 20 years of extensive financial and
operational experience in the ASX reporting environment within large diverse
organisations. He also has a proven ability to improve operations, impact business growth
and accomplish sustainable profit growth through achievements in strategic outcomes,
financial management, cost control management, internal controls and productivity/
efficiency improvements.
With experiences in building, and leading business transformation, Salesh has delivered
significant achievements in strategy execution, risk management, treasury management,
tax planning, acquisitions and divestments, and IT systems developments. Salesh is
committed to maximising long-term shareholder value, ensuring a balanced portfolio of
growth initiatives and maintaining the highest level of integrity and transparency.
Salesh holds a Bachelor of Arts degree in accounting and has CPA qualifications.
Brett Sheridan
Brett Sheridan joined ISA Group in May 2013 in the role of Chief Marketing Officer and
Chief Commercial
became the Chief Commercial Officer in July 2016. Prior to that time, Brett provided ISA
Officer
Group with contracting services and has been involved with the Company since its
inception. Brett is responsible for driving customer demand, increasing brand recognition
and analysing market opportunities as well as driving future growth and the strategic
direction of the Company.
Fiona Yiend
Fiona Yiend joined ISA Group in September 2013 as General Counsel and Company
General Counsel
Secretary. She is responsible for managing ISA Group’s legal matters, corporate
& Company
Secretary
governance and board administration.
Fiona holds a Graduate Diploma of Applied Corporate Governance from the Governance
Institute of Australia (formerly Chartered Secretaries Australia), Graduate Diplomas in
International Law and in Applied Finance and Investment and a Bachelor of Laws (second
class honours) and Bachelor of Arts. Fiona’s formal qualifications are complemented by
over 8 years’ experience as General Counsel and Company Secretary of ASX listed
entities.
Profiles of Non-Executive Directors can be found on pages 8 and 9.
4. Remuneration Principles, Strategy and Outcomes
Remuneration principles
ISA Group’s remuneration strategy is based on the following principles:
•
•
Retain Top Talent – As ISA Group operates in a unique environment with a limited pool of talent ISA
Group seeks to retain the high calibre people it has identified.
Align rewards with business performance – ISA Group seeks to align remuneration rewards with
business performance through the use of “at risk” remuneration and the assessment of performance.
Indoor Skydive Australia Group Limited
2017 Annual Report
16
Indoor Skydive Australia Group Limited
2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
Remuneration Outcomes for Executive KMP
The remuneration received by Executive KMP in 2017 and 2016 is set out below.
Short Term Benefits
Post
Employment
Benefits
Long
Term
Benefits
KMP
Year
Salary
STI
Non
Mone-
tary
Super-
annuation
Long
Service
Leave
Share
Based
Payments
Rights
Total
Other
Term-
ination
$
$
$
$
$
$
$
$
Wayne Jones
CEO
2017
208,725
20163
207,995
Danny Hogan
COO
2017
208,725
20163
207,995
Brett Sheridan
CCO
2017
178,200
20163
177,692
Fiona Yiend
GC/CS
2017
146,578
Salesh Nischal
CFO1
Stephen Burns
Former CFO2
20163
130,477
2017
16,975
2017
179,675
20163
176,105
-
-
-
-
-
-
-
-
-
-
-
8,943
19,829
12,674
19,760
16,020
19,829
18,276
19,760
7,372
16,929
8,097
16,880
4,019
13,925
6,338
12,395
-
-
-
1,613
17,692
16,730
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51,212
288,709
199,036
439,465
51,212
295,786
199,036
445,067
30,537
233,038
36,956
239,625
30,537
195,059
34,207
183,417
-
18,588
(29,788)
167,579
69,738
262,573
1 Appointed CFO on 10 May 2017
2 Resigned effective 17 May 2017
3 2016 comparative amounts have been updated to reflect the straight lining of performance rights on issue to
KMP.
Executive Remuneration Structure
Remuneration Mix
Fixed annual remuneration provides a “base” level of remuneration. Short and long-term variable incentives
(“at risk”) reward executives for meeting and exceeding pre-determined targets. The targets for at-risk
rewards is linked to clear measurable targets which the Company considers are significant to achieving our
strategic plan and delivering shareholder returns.
The percentage of at risk remuneration varies between executives based on the extent to which they are in a
position to directly influence company performance. The executive directors at risk remuneration comprises
short term incentives of 40% of base salary plus long term incentives which are assessed over a two year
period. Other executives have short term incentives of up to 30% of their base at risk in each financial year in
addition to long term incentives assessed over a two year period.
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Remuneration Report
Remuneration Outcomes for Executive KMP
The remuneration received by Executive KMP in 2017 and 2016 is set out below.
Short Term Benefits
Benefits
Benefits
Other
Payments
Post
Employment
Long
Term
Share
Based
KMP
Year
Salary
STI
Non
Mone-
tary
Super-
annuation
Long
Term-
Service
ination
Rights
Total
Leave
REMUNERATION REPORT
Remuneration Report
Fixed Remuneration
Fixed remuneration consists of cash salary, superannuation and other limited non-monetary benefits. The
levels are set to attract and retain qualified, skilled and experienced executives and are determined based on
comparable market data, the skills and experience of the individual executive and the accountability and
responsibility of the role.
Following an independent external remuneration review in 2013 which identified that ISA Group Executive
KMP remuneration was within the bottom quartile compared to its comparator group, ISA Group has been
moving fixed remuneration closer to the median level. However due to impact of the late opening of the Gold
Coast facility ISA Group determined not to increased fixed remuneration for the KMP for the 2017 financial
year.
$
$
$
$
$
$
$
$
Short Term Incentive Structure
The key features of ISA Group’s STI Plan are outlined below:
2017
208,725
8,943
19,829
51,212
288,709
What is the purpose of the STI?
20163
207,995
12,674
19,760
199,036
439,465
STI performance targets drive executives to focus on
achieving ISA Group’s performance goals and
rewards executives for achieving or exceeding those
goals.
2017
208,725
16,020
19,829
51,212
295,786
Who participates?
All Executive KMP and selected senior executives.
20163
207,995
18,276
19,760
199,036
445,067
How much can be earned under the STI Plan?
2017
178,200
7,372
16,929
30,537
233,038
20163
177,692
8,097
16,880
36,956
239,625
What are the performance conditions?
2017
146,578
4,019
13,925
30,537
195,059
20163
130,477
6,338
12,395
-
-
-
1,613
17,692
16,730
34,207
183,417
-
18,588
(29,788)
167,579
69,738
262,573
Over what period is it measured?
How is it paid?
When and how is it reviewed?
Who assesses performance against targets?
The target STI opportunity for KMP is between 14%
to 18% of base salary depending on the role. For
stretch/over performance, KMP have the ability to
earn an additional 11% to 18% of base salary.
No STI is payable unless minimum financial targets
relating to Group EBITDA are achieved. The Stretch
target is also measured against EBITDA.
Performance is measured over the 12 month period
from 1 July to 30 June.
STI payments are made on the achievement of
reaching targets (ie payments are not made
progressively). If targets are reached the full STI is
paid. If the target is achieved but the stretch target
is not, no payment or partial payment is made for
exceeding the target.
The Executive must be an employee and not serving
out a notice period when the payment of an STI is
made.
Payment occurs after conclusion of the end of year
audit (usually September).
The STI is reviewed annually in line with the review
of remuneration and the setting of the upcoming
financial budget.
The targets are objective financial measures which
are assessed against the Company’s audited
financial accounts. The Board approves all STI
assessments and payments.
What are the clawback provisions?
None
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19
19
-
-
-
-
-
-
-
-
-
-
-
Wayne Jones
CEO
Danny Hogan
COO
Brett Sheridan
CCO
Fiona Yiend
GC/CS
Salesh Nischal
2017
16,975
CFO1
Stephen Burns
Former CFO2
2017
179,675
20163
176,105
1 Appointed CFO on 10 May 2017
2 Resigned effective 17 May 2017
KMP.
Executive Remuneration Structure
Remuneration Mix
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3 2016 comparative amounts have been updated to reflect the straight lining of performance rights on issue to
Fixed annual remuneration provides a “base” level of remuneration. Short and long-term variable incentives
(“at risk”) reward executives for meeting and exceeding pre-determined targets. The targets for at-risk
rewards is linked to clear measurable targets which the Company considers are significant to achieving our
strategic plan and delivering shareholder returns.
The percentage of at risk remuneration varies between executives based on the extent to which they are in a
position to directly influence company performance. The executive directors at risk remuneration comprises
short term incentives of 40% of base salary plus long term incentives which are assessed over a two year
period. Other executives have short term incentives of up to 30% of their base at risk in each financial year in
addition to long term incentives assessed over a two year period.
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
Short term Incentive Outcomes
For 2017, the STI performance targets were not met. All Executive KMP forfeited 100% of their STI award.
Long Term Incentive Structure
The key features of the ISA Group Long Term Incentive (LTI) are outlined below:
What is the purpose of the LTI?
Who participates?
What is the vehicle?
What are the performance conditions and
what is the performance period?
What are the service conditions?
How is it paid?
How are performance conditions set?
What happens if a change of control occurs?
The LTI drives executives to achieve certain outcomes
that are considered important to the growth of the ISA
Group.
Participants are the Executive KMP and select senior
executives who drive the growth strategy of ISA Group.
Awards are in the form of performance rights under the
ISA Group Performance Rights Plan.
If performance hurdles are met performance rights vest
and the employee will be allocated the relevant number
of shares. An employee granted performance rights is
not legally entitled to shares in ISA Group before the
rights vest. Once vested, each right entitles the
employee to receive one share in ISA Group.
Performance Rights issued to Executive KMP in FY2016
were not subject to performance conditions. They were
subject to a service condition only as the Board
considered at the time of issue that the retention of KMP
during the early stages of the Company’s growth was an
important outcome.
No Performance Rights were issued to Executive KMP in
FY2017.
In 2012 as part of the employment of the CEO and COO
(Founding Directors), the Company committed to issue
certain rights to the Founding Directors on completion
certain milestones. The final tranche of incentives for the
Founding Directors was based on the performance of our
first indoor skydiving in the 2016 financial year. This
milestone was assessed and vested in September 2017
following the completion of the 2016 audit process.
Performance Rights issued to Executive KMP in FY2016
were subject to a service condition of continued services
with ISA Group from Grant Date until 1 July 2017.
Subject to meeting the performance hurdles the
performance rights vest. Once vested the performance
rights can be exercised on the basis of one fully paid
ordinary ISA Group share for each performance right.
The performance conditions are set by the Board after
considering the appropriate conditions to drive a
particular outcome aligned.
If a change in control event occurs unvested performance
rights will vest where, in the Board’s absolute discretion,
pro rata performance is in line with the performance
criteria applicable to those performance rights over the
20
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
For 2017, the STI performance targets were not met. All Executive KMP forfeited 100% of their STI award.
The key features of the ISA Group Long Term Incentive (LTI) are outlined below:
What are the clawback provisions?
REMUNERATION REPORT
Remuneration Report
Remuneration Report
Short term Incentive Outcomes
Long Term Incentive Structure
What is the purpose of the LTI?
Who participates?
What is the vehicle?
period from date of grant to the date of the change in
control event.
If in the reasonable opinion of the Board a participant in
the LTI has acted fraudulently or dishonestly or is in
material breach of his or her obligations to ISA Group
then the Board in its absolute discretion may determine
that any unvested rights lapse, that any shares issued
pursuant to performance rights in these circumstances
are forfeited, or where the shares issued to the
performance rights have been sold require the
participant to pay to ISA Group all or part of the net
proceeds of sale.
Long Term Incentive Awards and Outcomes
During 2017 the Founding Directors were each entitled to 391,856 performance rights which vested for
exceeding pre-determined targets in relation to the financial performance of the Penrith Indoor Skydiving
Facility.
The following table sets out the performance rights issued to KMP in July 2015 which vested in July 2017
following the satisfaction of performance hurdles.
Name
Vested Performance Rights
Wayne Jones
Danny Hogan
Brett Sheridan
Fiona Yiend
228,554
228,554
129,054
129,054
Summary of Executive Contracts
Executive contracts set out remuneration details and other terms of employment for each individual executive.
The key provisions of the KMP contracts relating to terms of employment and notice periods are set out below.
Contractual terms vary due to the timing of contracts, individual negotiations and different market conditions.
Date of
contract
Term of
contract
Termination Payments
Notice required
to be given to the
Company for
termination by
Employee
Wayne Jones
Director and CEO
October 2012 Ongoing
6 months
Danny Hogan
Director and COO
October 2012 Ongoing
6 months
6 months’ notice for
termination by Employer
and legislative entitlements
on redundancy.
6 months’ notice for
termination by Employer
and legislative entitlements
on redundancy.
Indoor Skydive Australia Group Limited
2017 Annual Report
20
Indoor Skydive Australia Group Limited
2017 Annual Report
21
21
What are the performance conditions and
Performance Rights issued to Executive KMP in FY2016
what is the performance period?
were not subject to performance conditions. They were
The LTI drives executives to achieve certain outcomes
that are considered important to the growth of the ISA
Group.
Participants are the Executive KMP and select senior
executives who drive the growth strategy of ISA Group.
Awards are in the form of performance rights under the
ISA Group Performance Rights Plan.
If performance hurdles are met performance rights vest
and the employee will be allocated the relevant number
of shares. An employee granted performance rights is
not legally entitled to shares in ISA Group before the
rights vest. Once vested, each right entitles the
employee to receive one share in ISA Group.
subject to a service condition only as the Board
considered at the time of issue that the retention of KMP
during the early stages of the Company’s growth was an
important outcome.
No Performance Rights were issued to Executive KMP in
FY2017.
In 2012 as part of the employment of the CEO and COO
(Founding Directors), the Company committed to issue
certain rights to the Founding Directors on completion
certain milestones. The final tranche of incentives for the
Founding Directors was based on the performance of our
first indoor skydiving in the 2016 financial year. This
milestone was assessed and vested in September 2017
following the completion of the 2016 audit process.
Performance Rights issued to Executive KMP in FY2016
were subject to a service condition of continued services
with ISA Group from Grant Date until 1 July 2017.
Subject to meeting the performance hurdles the
performance rights vest. Once vested the performance
rights can be exercised on the basis of one fully paid
ordinary ISA Group share for each performance right.
What are the service conditions?
How is it paid?
How are performance conditions set?
The performance conditions are set by the Board after
considering the appropriate conditions to drive a
particular outcome aligned.
What happens if a change of control occurs?
If a change in control event occurs unvested performance
rights will vest where, in the Board’s absolute discretion,
pro rata performance is in line with the performance
criteria applicable to those performance rights over the
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
Salesh Nischal
CFO
Brett Sheridan
CCO
May 2017
Ongoing
6 Weeks
May 2013
Ongoing
6 Weeks
Fiona Yiend
General Counsel &
Company Secretary
September
2013
Ongoing
6 Weeks
6 weeks’ notice for
termination by Employer
and legislative entitlements
on redundancy.
6 weeks’ notice for
termination by Employer
and 6 months on
redundancy.
6 weeks’ notice for
termination by Employer
and 6 months on
redundancy.
5. Non-Executive Director Remuneration
Approved Fee Pool
Non-Executive Director fees are determined within a maximum directors’ fee pool limit. The directors’ fee
pool was set in 2012 as $500,000. No director’s fees are paid to Executive Directors, Wayne Jones and Danny
Hogan. Total non-executive remuneration paid during 2017 was $210,192.
Approach to setting Non-Executive Director Remuneration
Non-Executive Directors receive fixed remuneration in the form of a base fee plus fees for membership or
chairing Board Committees. The Chairman’s base fee has been calculated such that no additional fees are paid
for committee membership.
Non-Executive Directors do not receive variable remuneration or other performance-related incentives.
The Non-Executive Director fees were not increased in 2017. The Non-Executive Directors fees for the last two
financial years are set out below.
Financial
Year
Salary and
Fees
Bonus
Share based
payments
Total
Ken Gillespie
Stephen Baxter
David Murray *
Kirsten Thomson*
* Resigned 25 April 2017
2017
2016
2017
2016
2017
2016
2017
2016
85,000
84,530
55,000
55,000
29,727
40,000
40,465
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85,000
84,530
55,000
55,000
29,727
40,000
40,465
-
22
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2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
6. Other Statutory Disclosures
ISA Group’s Financial Performance
The table below sets out ISA Group’s earnings and movements in shareholder wealth over the last 5 years.
20131
2014
2015
2016
2017
Revenue
-
1,212,643
6,431,444
8,155,888
12,271,081
Net Profit/(Loss) after
Tax
(914,571)
(2,714,016)
(1,903,921)
(1,506,760)2
(891,290)
Share price at 30 June
0.43
0.68
0.45
0.40
0.20
1 ISA Group listed on the ASX on 18 January 2013.
2 The 30 June 2016 Net Profit/Loss after Tax has been restated. Refer to Note 1(t).
Performance rights holdings of KMP
Non-executive Directors do not hold performance rights. Details of the performance rights holdings of other
KMP are set out below:
Balance at 1
July 2016
Granted as
remuneration
Rights
exercised
Rights
lapsed
Rights
Forfeited
Balance at 30
June 2017
Wayne Jones
548,409
Danny Hogan
548,409
Brett Sheridan
129,054
Salesh Nischal
-
Fiona Yiend
129,054
Stephen Burns
129,054
-
-
-
-
-
-
319,855
319,855
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
228,554
228,554
129,054
-
129,054
129,054
-
Salesh Nischal
May 2017
Ongoing
6 Weeks
6 weeks’ notice for
Remuneration Report
CFO
CCO
Brett Sheridan
May 2013
Ongoing
6 Weeks
Fiona Yiend
General Counsel &
Company Secretary
2013
September
Ongoing
6 Weeks
termination by Employer
and legislative entitlements
on redundancy.
6 weeks’ notice for
termination by Employer
and 6 months on
redundancy.
6 weeks’ notice for
termination by Employer
and 6 months on
redundancy.
5. Non-Executive Director Remuneration
Approved Fee Pool
Non-Executive Director fees are determined within a maximum directors’ fee pool limit. The directors’ fee
pool was set in 2012 as $500,000. No director’s fees are paid to Executive Directors, Wayne Jones and Danny
Hogan. Total non-executive remuneration paid during 2017 was $210,192.
Approach to setting Non-Executive Director Remuneration
Non-Executive Directors receive fixed remuneration in the form of a base fee plus fees for membership or
chairing Board Committees. The Chairman’s base fee has been calculated such that no additional fees are paid
for committee membership.
Non-Executive Directors do not receive variable remuneration or other performance-related incentives.
The Non-Executive Director fees were not increased in 2017. The Non-Executive Directors fees for the last two
financial years are set out below.
Financial
Salary and
Bonus
Share based
Total
payments
Year
2017
2016
2017
2016
2017
2016
2017
2016
Ken Gillespie
Stephen Baxter
David Murray *
Kirsten Thomson*
* Resigned 25 April 2017
Fees
85,000
84,530
55,000
55,000
29,727
40,000
40,465
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85,000
84,530
55,000
55,000
29,727
40,000
40,465
-
Indoor Skydive Australia Group Limited
2017 Annual Report
22
Indoor Skydive Australia Group Limited
2017 Annual Report
23
23
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
REMUNERATION REPORT
Remuneration Report
Shareholdings of KMP
The shareholding of the KMP including their associates is as follows:
KMP
Role
Interest in
shares held
at 1 July
2017
Interest in
shares
acquired
/(disposed)
during the
period
Interest in shares
issued on
exercise of
vested
performance
rights during the
period
Balance at 30
June 2017
Ken Gillespie
Chairman
396,668
39,474
Steve Baxter
Non-Executive Director
17,000,001
39,474
-
-
436,142
17,039,475
Wayne Jones
Chief Executive Officer
& Director
18,241,423
164,474
391,856
18,797,753
Danny Hogan
Chief Operations
Officer & Director
17,827,423
Salesh Nischal
Chief Financial Officer
-
Brett Sheridan Chief Commercial
550,000
Officer
-
-
-
Fiona Yiend
General Counsel &
Company Secretary
177,555
(37,555)
Stephen Burns
Former Chief Financial
Officer
334,474
86,316
391,856
18,219,279
-
-
-
-
-
550,000
140,000
420,790
2016 Annual General Meeting (AGM)
At the Company’s AGM in October 2016, 98.28% of votes received were in favour of adopting the
remuneration report.
Related party Transaction
No related party transactions were entered into with KMP during 2017.
24
Indoor Skydive Australia Group Limited
2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Remuneration Report
Shareholdings of KMP
The shareholding of the KMP including their associates is as follows:
KMP
Role
Interest in
Interest in
Interest in shares
Balance at 30
shares held
shares
acquired
at 1 July
2017
issued on
exercise of
June 2017
/(disposed)
vested
during the
performance
period
rights during the
period
Ken Gillespie
Chairman
396,668
39,474
Steve Baxter
Non-Executive Director
17,000,001
39,474
436,142
17,039,475
Wayne Jones
Chief Executive Officer
18,241,423
164,474
391,856
18,797,753
Danny Hogan
Chief Operations
17,827,423
391,856
18,219,279
& Director
Officer & Director
Officer
Officer
Salesh Nischal
Chief Financial Officer
-
Brett Sheridan Chief Commercial
550,000
Fiona Yiend
General Counsel &
177,555
(37,555)
Company Secretary
Stephen Burns
Former Chief Financial
334,474
86,316
-
-
-
-
-
-
-
-
-
-
550,000
140,000
420,790
AUDITOR’S INDEPENDENT DECLARATION
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Indoor Skydive Australia Group Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor
for the audit of Indoor Skydive Australia Group Limited for the year ended 30 June 2017, I declare
that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
2016 Annual General Meeting (AGM)
At the Company’s AGM in October 2016, 98.28% of votes received were in favour of adopting the
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
remuneration report.
Related party Transaction
No related party transactions were entered into with KMP during 2017.
P J Woodley
Partner - Audit & Assurance
Sydney, 26 September 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Indoor Skydive Australia Group Limited
2017 Annual Report
24
25
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Erica shows why our
High Fly product is
super-popular.
FINANCIAL
REPORT
26
26
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Consolidated Statement of Profit or Loss and other Comprehensive Income
For the year ended 30 June 2017
Revenue
Cost of sales
Gross Profit
Other Income
Selling and marketing expenses
Administration expenses
Other expenses
Note
3
3
3 (a)
3 (b)
Consolidated Group
2017
$
2016
Restated *
$
12,271,081
(2,464,687)
9,806,394
8,155,888
(1,703,943)
6,451,945
45,478
188,389
(4,731,189)
(4,354,932)
(1,432,046)
(3,115,827)
(4,317,659)
(867,632)
Earnings Before Interest and Tax
(666,295)
(1,660,784)
Finance Income
Finance expense
Loss Before Tax
7,373
(383,317)
(1,042,239)
26,255
(124,614)
(1,759,143)
Income tax benefit
4
150,949
252,383
Loss After Tax
(891,290)
(1,506,760)
Other comprehensive income for the year,
net of tax
-
-
Total comprehensive loss for the year
(891,290)
(1,506,760)
Earnings per share
From continuing operations:
Basic earnings per share (cents)
Diluted earnings per share (cents)
23
23
(0.68)
(0.68)
(1.26)
(1.26)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the Notes to the financial Statements.
*
Certain amounts shown here do not correspond to the 2016 financial statements and reflect adjustments
made. Refer to Note 1 (t).
Indoor Skydive Australia Group Limited
2017 Annual Report
27
27
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Financial Position
As at 30 June 2017
Consolidated Group
2017
2016
Restated *
Notes
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial asset
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible asset
Deferred tax asset
Other financial asset
TOTAL NON-CURRENT ASSETS
5
6
7
8
10
4, 1(s).ii
7
1,706,457
917,777
74,105
42,489
2,740,828
43,965,692
773,304
2,167,638
209,245
47,115,879
Restated
as at 1 July
2015*
$
5,647,175
561,334
44,927
-
6,253,436
2,550,601
688,525
59,794
-
3,298,920
38,070,213
426,378
2,016,689
-
40,513,280
23,881,098
710,630
1,764,304
-
26,356,032
TOTAL ASSETS
49,856,707
43,812,200
32,609,468
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Deferred revenue
Borrowings
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserve
Accumulated losses
TOTAL EQUITY
11
12
13
14
13
14
15
3,655,064
1,907,300
472,312
276,558
6,311,234
3,445,188
1,016,439
711,584
575,378
5,748,589
2,042,848
1,280,530
-
383,852
3,707,230
10,267,198
818,289
11,085,487
8,436,342
1,776,739
10,213,081
-
26,836
26,836
17,396,721
15,961,670
3,734,066
32,459,986
27,850,530
28,875,402
40,466,917
340,448
(8,347,379)
32,459,986
34,648,455
658,164
(7,456,089)
27,850,530
33,639,681
1,185,050
(5,949,329)
28,875,402
The Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Financial
Statements.
* Certain amounts shown here do not correspond to the 2016 financial statements and reflect adjustments
made. Refer to Note 1 (t).
28
Indoor Skydive Australia Group Limited
2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Consolidated Statement of Financial Position
As at 30 June 2017
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Changes in Equity
For the year ended 30 June 2017
TOTAL ASSETS
49,856,707
43,812,200
32,609,468
Consolidated Group
2017
2016
Restated *
Notes
$
$
Restated
as at 1 July
2015*
$
1,706,457
917,777
74,105
42,489
2,550,601
688,525
59,794
5,647,175
561,334
44,927
2,740,828
3,298,920
6,253,436
8
10
7
4, 1(s).ii
43,965,692
773,304
2,167,638
209,245
47,115,879
38,070,213
23,881,098
426,378
2,016,689
710,630
1,764,304
40,513,280
26,356,032
-
-
-
-
-
-
3,655,064
1,907,300
472,312
276,558
6,311,234
3,445,188
1,016,439
711,584
575,378
5,748,589
2,042,848
1,280,530
383,852
3,707,230
10,267,198
818,289
11,085,487
8,436,342
1,776,739
10,213,081
26,836
26,836
32,459,986
27,850,530
28,875,402
40,466,917
340,448
(8,347,379)
32,459,986
34,648,455
33,639,681
658,164
(7,456,089)
1,185,050
(5,949,329)
27,850,530
28,875,402
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial asset
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible asset
Deferred tax asset
Other financial asset
TOTAL NON-CURRENT ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Deferred revenue
Borrowings
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Provisions
TOTAL NON-CURRENT LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserve
Accumulated losses
TOTAL EQUITY
5
6
7
11
12
13
14
13
14
15
TOTAL LIABILITIES
17,396,721
15,961,670
3,734,066
The Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Financial
* Certain amounts shown here do not correspond to the 2016 financial statements and reflect adjustments
Statements.
made. Refer to Note 1 (t).
Balance at 1 July 2016
Shares issued during the year
Share issue costs
Share issue on exercise of performance
rights
Employee share based payment
performance rights
Comprehensive income
Loss for the period
Total comprehensive loss for the year
Issued
Capital
$
34,648,455
Share based
payments reserve
$
658,164
Accumulated
losses
$
(7,456,089)
5,665,005
(342,131)
-
-
495,588
(495,588)
177,872
Total
$
27,850,530
5,665,005
(342,131)
-
177,872
-
-
-
-
-
-
(891,290)
(891,290)
(891,290)
(891,290)
Balance at 30 June 2017
40,466,917
340,448
(8,347,379)
32,459,986
Balance at 1 July 2015
Adjustment
Balance at 1 July 2015 – Restated*
33,639,681
-
33,639,681
1,185,050
-
1,185,050
(5,738,626)
(210,703)
(5,949,329)
29,086,105
(210,703)
28,875,402
Shares issued on exercise of
performance rights
Employee share based payment
performance rights
Comprehensive income
Loss for the year
Prior period adjustment
Total comprehensive loss for the year
1,008,774
(1,008,774)
481,888
-
-
-
481,888
-
(1,314,903)
(191,857)
(1,314,903)
(191,857)
-
(1,506,760)
(1,506,760)
-
-
-
-
-
-
Balance at 30 June 2016 – Restated*
34,648,455
658,164
(7,456,089)
27,850,530
The Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Financial
Statements.
*
Certain amounts shown here do not correspond to the 2016 financial statements and reflect adjustments
made. Refer to Note 1 (t).
Indoor Skydive Australia Group Limited
2017 Annual Report
28
Indoor Skydive Australia Group Limited
2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Cash Flows
As at 30 June 2017
Cash Flows From Operating Activities
Receipts from customers
Payments to suppliers and employees
Grant income received
Interest received
Finance costs
Consolidated Group
Note
2017
$
14,523,197
(12,023,796)
24,875
7,373
(383,317)
2016
$
8,133,131
(7,861,681)
51,750
26,255
(76,335)
Net cash inflows from operating activities
17
2,148,332
273,120
Cash Flows From Investing Activities
Purchase of property, plant and equipment
Realisation of term deposits
Payment for intangible assets
(9,389,457)
-
(517,477)
(12,370,007)
1,325,556
(284,252)
Net cash outflows from investing activities
(9,906,934)
(11,328,703)
Cash Flows From Financing Activities
Proceeds from issue of securities
Proceeds from borrowings
Repayment of borrowings
Share issue costs
5,665,005
2,493,302
(901,718)
(342,131)
-
9,147,926
-
-
Net cash inflows from financing activities
6,914,458
9,147,926
Net decrease in cash held
(844,144)
(1,907,657)
Cash and cash equivalents at beginning of period
Effects of exchange rate changes
2,550,601
-
4,321,619
136,639
Cash and cash equivalents at end of period
5
1,706,457
2,550,601
The Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial
Statements.
30
Indoor Skydive Australia Group Limited
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30
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
These consolidated financial statements and notes represent those of Indoor Skydive Australia Group Limited and
Controlled Entities (the Consolidated Group or Group).
The separate financial statements of the parent entity, Indoor Skydive Australia Group Limited have not been
presented within this financial report as permitted by the Corporations Act 2001.
The financial statements were authorised for issue on 26 September 2017 by the Directors of the Company.
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board and the Corporations Act 2001. Indoor Skydive Australia Group Ltd is
the Group’s ultimate parent company. Indoor Skydive Australia Group Ltd is a public company listed on the
Australian Stock Exchange and domiciled in Australia. The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has
concluded would result in financial statements containing relevant and reliable information about transactions,
events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements
and notes also comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board. Material accounting policies adopted in the preparation of these financial statements are
presented below and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements 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.
Net cash inflows from financing activities
6,914,458
9,147,926
Basis of Accounting
The Group incurred a loss for the year after tax of $891,290 (2016: loss of $1,506,760) and has a net current
deficiency in assets of $3,570,406. Included within current liabilities are deferred revenue of $1,907,300 that will
be realised as revenue once the service has been delivered to the customer. Included within trade and other
payables as outlined in Note 11 is an investment amount of $2,000,000 by iFly Australia Pty Ltd which is expected
to be settled through the issue of equity in the relevant subsidiaries of ISA group. Therefore, excluding these two
balances, the Group has an adjusted net positive current asset position of $336,894 at 30 June 2017. The Group
has generated positive cash flows from operations during the year of $2,148,332 (2016: $273,120).
As a result, the financial report has been prepared on a going concern basis.
Consolidated Statement of Cash Flows
As at 30 June 2017
Cash Flows From Operating Activities
Receipts from customers
Payments to suppliers and employees
Grant income received
Interest received
Finance costs
Consolidated Group
Note
2017
$
2016
$
8,133,131
(7,861,681)
51,750
26,255
(76,335)
14,523,197
(12,023,796)
24,875
7,373
(383,317)
Net cash inflows from operating activities
17
2,148,332
273,120
Cash Flows From Investing Activities
Purchase of property, plant and equipment
Realisation of term deposits
Payment for intangible assets
(9,389,457)
(12,370,007)
-
(517,477)
1,325,556
(284,252)
Net cash outflows from investing activities
(9,906,934)
(11,328,703)
Cash Flows From Financing Activities
Proceeds from issue of securities
Proceeds from borrowings
Repayment of borrowings
Share issue costs
5,665,005
2,493,302
(901,718)
(342,131)
9,147,926
-
-
-
Net decrease in cash held
(844,144)
(1,907,657)
Cash and cash equivalents at beginning of period
Effects of exchange rate changes
2,550,601
-
4,321,619
136,639
Cash and cash equivalents at end of period
5
1,706,457
2,550,601
The Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial
Statements.
Indoor Skydive Australia Group Limited
2017 Annual Report
30
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2017 Annual Report
31
31
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
a.
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled
by Indoor Skydive Australia Group Limited at the end of the reporting period. A controlled entity is any
entity over which Indoor Skydive Australia Group Limited has the ability and right to govern the financial
and operating policies so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance of
those entities is included only for the period of the year that they were controlled. A list of controlled
entities is contained in Note 9 to the financial statements.
In preparing the consolidated financial statements, all intragroup balances and transactions between
entities in the consolidated group have been eliminated in full on consolidation. Non-controlling interests,
being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately
within the equity section of the consolidated statement of financial position and statements showing
profit or loss and other comprehensive income. The non-controlling interests in the net assets comprise
their interests at the date of the original business combination and their share of changes in equity since
that date.
b.
Income Tax
The income tax expense/(benefit) for the year comprises current income tax expense/(benefit) and
deferred tax expense/(benefit).
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax
liabilities/(assets) are measured at the amounts expected to be paid to/(recovered from) the relevant
taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well as unused tax losses.
Current and deferred income tax expense/(benefit) is charged or credited outside profit or loss when the
tax relates to items that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an
asset or liability, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled and their measurement also reflects the manner in
which management expects to recover or settle the carrying amount of the related asset or liability. With
respect to non-depreciable items of property, plant and equipment measured at fair value and items of
investment property measured at fair value, the related deferred tax liability or deferred tax asset is
measured on the basis that the carrying amount of the asset will be recovered entirely through sale.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of
set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities where it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
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32
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
Tax Consolidation - Australia
The Company and its wholly-owned Australian resident entities have formed a tax consolidated group
with effect from 1 November 2011 and will therefore be taxed as a single entity from that date. The
Company is the head entity within the tax-consolidated group.
Current tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary
differences of the members of the tax-consolidated group are recognised in the separate financial
statements of the members of the tax-consolidated group using a modified stand-alone tax allocation
methodology.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the
controlled entities are assumed by the head entity in the tax-consolidated group and are recognised as
amounts payable (receivable) to (from) other entities in the tax-consolidated group in conjunction with
any tax funding arrangements.
The Company recognises deferred tax assets arising from unused tax losses of the tax-consolidated group
to the extent that it is probable that future taxable profits of the tax-consolidated group will be available
against which the asset can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of
revised assessments of the probability of recoverability is recognised by the head company only.
The income tax expense/(benefit) for the year comprises current income tax expense/(benefit) and
c.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where
applicable, any accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment
is greater than the estimated recoverable amount, the carrying amount is written down immediately to
the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a
revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of
recoverable amount is made when impairment indicators are present (refer to Note 1(j) for details of
impairment).
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess
of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the asset’s employment and subsequent disposal.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
recognised as expenses in profit or loss during the financial period in which they are incurred.
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
a.
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled
by Indoor Skydive Australia Group Limited at the end of the reporting period. A controlled entity is any
entity over which Indoor Skydive Australia Group Limited has the ability and right to govern the financial
and operating policies so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance of
those entities is included only for the period of the year that they were controlled. A list of controlled
entities is contained in Note 9 to the financial statements.
In preparing the consolidated financial statements, all intragroup balances and transactions between
entities in the consolidated group have been eliminated in full on consolidation. Non-controlling interests,
being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately
within the equity section of the consolidated statement of financial position and statements showing
profit or loss and other comprehensive income. The non-controlling interests in the net assets comprise
their interests at the date of the original business combination and their share of changes in equity since
that date.
b.
Income Tax
deferred tax expense/(benefit).
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax
liabilities/(assets) are measured at the amounts expected to be paid to/(recovered from) the relevant
taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well as unused tax losses.
Current and deferred income tax expense/(benefit) is charged or credited outside profit or loss when the
tax relates to items that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an
asset or liability, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled and their measurement also reflects the manner in
which management expects to recover or settle the carrying amount of the related asset or liability. With
respect to non-depreciable items of property, plant and equipment measured at fair value and items of
investment property measured at fair value, the related deferred tax liability or deferred tax asset is
measured on the basis that the carrying amount of the asset will be recovered entirely through sale.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of
set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities where it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
Indoor Skydive Australia Group Limited
2017 Annual Report
32
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2017 Annual Report
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33
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line basis over the asset’s useful life to the consolidated group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over
the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Office equipment
Furniture and fittings
IT equipment
Useful Life
3 years
5 years
5 years
Vertical wind tunnel building infrastructure
40 years
Vertical wind tunnel equipment
20 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are recognised in profit or loss in the period in which they arise. When revalued assets
are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained
earnings.
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Indoor Skydive Australia Group Limited
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line basis over the asset’s useful life to the consolidated group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over
the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Office equipment
Furniture and fittings
IT equipment
Useful Life
3 years
5 years
5 years
Vertical wind tunnel building infrastructure
40 years
Vertical wind tunnel equipment
20 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are recognised in profit or loss in the period in which they arise. When revalued assets
are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained
earnings.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
d.
Intangibles
Exclusive Territory Development Agreement
Acquired intangibles are capitalised on the basis of the costs incurred to acquire and install the specific
licence. Refer to Note 10 for further information.
Development Costs
Internally generated intangibles including capitalised development costs on individual projects that are
recognised as an intangible asset when the Group can demonstrate that the asset will generate future
economic benefits and can be measured reliably. Costs that are directly attributable to a project’s
development phase are recognised as intangible assets, provided they meet the following recognition
requirements:
•
•
•
•
•
the development costs can be measured reliably
the project is technically and commercially feasible
the Group intends to and has sufficient resources to complete the project
the Group has the ability to use or sell the asset; and
the asset will generate probable future economic benefits.
Development costs not meeting these criteria for capitalisation are expensed as incurred. Costs that are
directly attributable include employees’ (other than Directors’) costs incurred on development.
Expenditure on the research phase of projects is recognised as an expense as incurred.
Subsequent measurement
Intangible assets are not amortised but tested for impairment annually either individually or at cash
generating unit level.
When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference
between the proceeds and the carrying amount of the asset, and is recognised in profit or loss within
other income or other expenses.
e.
Leases
Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the
asset – but not the legal ownership – are transferred to entities in the consolidated group, are classified
as finance leases.
Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to
the fair value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and
the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or
the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are recognised as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis
over the lease term.
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
f.
Foreign Currency Transactions and Balances
Functional and Presentation Currency
The functional currency of each of the Group’s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian dollars, which is the parent entity’s functional currency.
Transactions and Balances
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except
where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain or loss is recognised in other
comprehensive income; otherwise the exchange difference is recognised in profit or loss.
g.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits available on demand with banks and bank
overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the
statement of financial position.
h.
Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the entity that
remain unpaid at the end of the reporting period. Payables expected to be settled within 12 months of
the end of the reporting period are classified as current liabilities. All other liabilities are classified as non-
current liabilities.
i.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash
flows included in receipts from customers or payments to suppliers.
j.
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may
be impaired. The assessment will include the consideration of external and internal sources of
information. If such an indication exists, an impairment test is carried out on the asset by comparing the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in
use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable
amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in
accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property,
Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in
accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for intangible assets with indefinite lives and intangible assets
not yet available for use.
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
f.
Foreign Currency Transactions and Balances
Functional and Presentation Currency
The functional currency of each of the Group’s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian dollars, which is the parent entity’s functional currency.
Transactions and Balances
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except
where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain or loss is recognised in other
comprehensive income; otherwise the exchange difference is recognised in profit or loss.
Cash and cash equivalents include cash on hand, deposits available on demand with banks and bank
overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the
Trade and other payables represent the liabilities for goods and services received by the entity that
remain unpaid at the end of the reporting period. Payables expected to be settled within 12 months of
the end of the reporting period are classified as current liabilities. All other liabilities are classified as non-
g.
Cash and Cash Equivalents
statement of financial position.
h.
Trade and Other Payables
current liabilities.
i.
Goods and Services Tax (GST)
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash
flows included in receipts from customers or payments to suppliers.
j.
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may
be impaired. The assessment will include the consideration of external and internal sources of
information. If such an indication exists, an impairment test is carried out on the asset by comparing the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in
use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable
amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in
accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property,
Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in
accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for intangible assets with indefinite lives and intangible assets
not yet available for use.
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
k.
Employee Benefits
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
Provision is made for the Group’s liability for employee benefits arising from services rendered by
employees to the end of the reporting period. Employee benefits that are expected to be settled within
a year have been measured at the amounts expected to be paid when the liability is settled. Expenses for
non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid
or payable. Liabilities for long service leave are recognised when employees reach a qualifying period of
continuous service. Liabilities and expenses for bonuses are recognised where contractually obliged or
where there is a past practice that has created a constructive obligation.
Share-based Payments
Share-based compensation benefits are provided to certain employees (including key management
personnel) via the Indoor Skydive Australia Group Limited Performance Rights Plan. The fair value is
measured at grant date and is recognised over the period the services are received, which is the expected
vesting period during which the employees would become entitled to exercise the performance rights.
Non-market vesting conditions are included in assumptions about the number of performance rights that
are expected to become exercisable. Estimates are subsequently revised if there is any indication that the
number of performance rights expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense
recognised in prior periods if performance rights ultimately exercised are different to that estimated on
vesting.
The fair value of performance rights granted for rights with non-market based performance criteria are
measured using the binomial option pricing methodology which is the approach typically used for valuing
rights which may be exercised, once vested, at any time up until expiry.
Upon exercise of performance rights, the proceeds received net of any directly attributable transaction
costs are allocated to contributed equity.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
l.
Provisions
GST incurred is not recoverable from the Australian Taxation Office (ATO).
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 using the best estimate of the amounts required to settle the obligation at the
end of the reporting period.
Make good provisions are recognised on a systematic basis over the life of the lease, based on the most
reliable evidence available at reporting date, including the risks and uncertainties associated with the
present obligation. Where there are a number of similar obligations, the likelihood that an outflow will
be requited in settlement is determined by considering the class of obligations as a whole. The provision
is discounted to its present value, where the time value of money is material.
m.
Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable after taking into account
any trade discounts and volume rebates allowed. When the inflow of consideration is deferred, it is
included in the Statement of Financial Position as a current liability.
Revenue from the sale of goods and services is recognised at the point of delivery as this corresponds to
the transfer of significant risks and rewards of ownership and the cessation of all involvement in those
goods and services. For gift card revenue, refer to Note 1(s)(iv).
Interest revenue is recognised on an accruals basis using the effective interest method.
Indoor Skydive Australia Group Limited
2017 Annual Report
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37
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
n.
Deferred Revenue
Income relating to future periods is initially recorded as deferred revenue, and is then recognised as
revenue over the relevant periods of admission or rendering of other services.
o.
Trade and Other Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed
in the ordinary course of business. Receivables expected to be collected within 12 months of the end of
the reporting period are classified as current assets. All other receivables are classified as non-current
assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised
cost using the effective interest method, less any provision for impairment. Refer to Note 1(j) for further
discussion on the determination of impairment losses.
p.
Inventories
nventories are valued at the lower of cost and net realisable value. Cost is determined using the weighted
average cost method, after deducting any purchase settlement discount and including logistics expenses
I
incurred in bringing the inventories to their present location and condition.
q.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
r.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
Where the Group has retrospectively applied an accounting policy, made a retrospective restatement or
reclassified items in its financial statements, an additional statement of financial position as at the
beginning of the earliest comparative period will be disclosed. Refer to Note 1(t).
s.
Critical Accounting Estimates and Judgements
i.
Useful lives, Residual Values and Classification of Property, Plant and Equipment
There is a degree of judgement required in estimating the residual values and useful lives of the Property,
Plant and Equipment. There is also a degree of judgement required in terms of the classification of such
Property, Plant and Equipment. The Group’s main assets at present comprise the Vertical Wind Tunnel
(VWT) Equipment and its related Building Infrastructure. The construction of these assets are typically
foreseen in the lease agreements, however the Board has exercised their judgement in determining that
the nature of these assets are that of buildings and equipment, rather than leasehold improvements. To
this extend, the Board has confirmed the useful life of the Buildings to be 40 years and VWT equipment
to be 20 years and the residual values of both these classes of assets to be nil.
ii.
Deferred Tax Asset
In the current year, the Group is expected to generate a taxable income that will utilise the deferred tax
balance. It is probable that the balance of unused tax losses will be recouped in future years, the directors
have recognised a deferred tax asset to the extent of the tax losses and deductible temporary differences.
38
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
assets.
p.
Inventories
q.
Borrowing Costs
Income relating to future periods is initially recorded as deferred revenue, and is then recognised as
revenue over the relevant periods of admission or rendering of other services.
o.
Trade and Other Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed
in the ordinary course of business. Receivables expected to be collected within 12 months of the end of
the reporting period are classified as current assets. All other receivables are classified as non-current
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised
cost using the effective interest method, less any provision for impairment. Refer to Note 1(j) for further
discussion on the determination of impairment losses.
nventories are valued at the lower of cost and net realisable value. Cost is determined using the weighted
average cost method, after deducting any purchase settlement discount and including logistics expenses
I
incurred in bringing the inventories to their present location and condition.
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
r.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
Where the Group has retrospectively applied an accounting policy, made a retrospective restatement or
reclassified items in its financial statements, an additional statement of financial position as at the
beginning of the earliest comparative period will be disclosed. Refer to Note 1(t).
s.
Critical Accounting Estimates and Judgements
i.
Useful lives, Residual Values and Classification of Property, Plant and Equipment
There is a degree of judgement required in estimating the residual values and useful lives of the Property,
Plant and Equipment. There is also a degree of judgement required in terms of the classification of such
Property, Plant and Equipment. The Group’s main assets at present comprise the Vertical Wind Tunnel
(VWT) Equipment and its related Building Infrastructure. The construction of these assets are typically
foreseen in the lease agreements, however the Board has exercised their judgement in determining that
the nature of these assets are that of buildings and equipment, rather than leasehold improvements. To
this extend, the Board has confirmed the useful life of the Buildings to be 40 years and VWT equipment
to be 20 years and the residual values of both these classes of assets to be nil.
ii.
Deferred Tax Asset
In the current year, the Group is expected to generate a taxable income that will utilise the deferred tax
balance. It is probable that the balance of unused tax losses will be recouped in future years, the directors
have recognised a deferred tax asset to the extent of the tax losses and deductible temporary differences.
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
n.
Deferred Revenue
iii.
Exclusive Territory Development Agreement Recognition and Amortisation
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
On 20 December 2013 an Exclusive Territory Development Agreement was entered into between the
Company and iFly Australia Pty Ltd (iFly) to exclusively develop projects in Australia and New Zealand for
which iFly would receive 2,500,000 shares in the company (IDZ.ASX). iFly is the Australian subsidiary of
SkyVenture International, our vertical wind tunnel supplier. The agreement has created an intangible
asset which is expected to create a future economic benefit. This intangible asset must be initially valued
at cost, in accordance with AASB 138. The cost is calculated as $1,500,000, being the fair value of the
shares granted to iFly, at the IDZ close price of $0.60 at 20 December 2013.
The term of the agreement is limited, and the asset is therefore classified as a finite life intangible asset.
An intangible asset with a finite life is to be amortised over its useful life. The amortisation method
selected should reflect the pattern over which the asset’s future economic benefit is expected to be
consumed. If that pattern cannot be determined reliably, the straight-line method is to be used. The
amortisation period and method for an intangible asset with a finite useful life are to be reviewed at least
at the end of each annual reporting period. If the expected useful life or expected pattern of consumption
of the future economic benefit is different from previous estimates, the period or method is to be revised.
As at the reporting date, there is no change to the previous estimates.
An accelerated amortisation rate of 40% diminishing value has been used against this intangible asset.
This reflects the expected consumption of benefits under the agreement. Although it is conceivable that
the agreement could run to the full term of 20 years, management expect that the majority of the benefit
will be achieved over an initial period of four years through the delivery of the four tunnels for which
deposits have been paid to SkyVenture International.
iv.
Gift Card Revenue
Gift card revenue from the sale of gift cards is recognised when the card is redeemed for the purchase of
flight time (Flight Revenue), or when the gift card is no longer expected to be redeemed (Gift Card
Revenue). At 30 June 2017, $494,388 of Gift Card Revenue is recognised (2016: $704,947). The key
assumption in measuring the liability for gift cards and vouchers is the expected redemption rates by
customers with a portion recognised upfront, which are reviewed based on historical information. Any
reassessment of expected redemption rates in a particular period impacts the revenue recognised from
expiry of gift cards and vouchers (either increasing or decreasing). Any foreseeable change in the estimate
is unlikely to have a material impact on the financial statements.
v.
Site Restoration
Provisions for site restoration obligations are recognised when the Group has a present legal or
constructive obligation as a result of past events; it is probable that an outflow of resources will be
required to settle the obligation and the amount has been reliably estimated.
In the current year, the Group has recognised a provision for site restoration for its three tunnels. To this
extent, an estimate of the costs to remove the VWT’s and its related Building Infrastructure has been
determined based on current costs using existing technology at current prices. Management used the
services of an expert and determined the cost to restore the sites. These costs were projected forward
at a 2.5% inflationary escalation and then discounted back at 8.73% (2016: 2.5%), which is a change in
estimate from the prior year, after consideration of the associated risks. The discount rate has been
amended to reflect the time value of money and risks specific to the operation of the tunnels. The site
restoration asset is depreciated over the remainder of each extended lease period being 40 years in the
case of each of iFLY Downunder (Penrith), iFLY Gold Coast and iFLY Perth. The unwinding of the effect of
discounting on the site restoration provision is included within finance costs in the statement of
comprehensive income.
Indoor Skydive Australia Group Limited
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Indoor Skydive Australia Group Limited
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39
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
vi.
Capitalisation of Internally Developed Intangible Assets
Distinguishing the research and development phases of a new 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.
t.
Prior Period Adjustment
Lease Straight lining
In prior years, the Group has entered into lease agreements with associated rent incentives for each of
its tunnels. These lease agreements have an initial term of 20 years with renewal at the option of the
Group, giving an extended lease period of 40 years.
In the current year, the Group conducted a detailed review of the terms and conditions of its lease
agreements and discovered an error in the accounting treatment of the rent incentives. The treatment
has been corrected by restating each of the affected financial statement line items for the prior period,
as follows:
Statement of Profit or Loss and other
Comprehensive Income
Previously
Reported
2016
$
Adjusted
Restated
2016
$
$
Administration expenses
4,043,577
274,082
4,317,659
Income tax benefit
Loss after tax
170,158
82,225
252,383
(1,314,903)
(191,857)
(1,506,760)
Basic Earnings Per Share
Diluted Earnings Per Share
(1.10)
(1.10)
(0.16)
(0.16)
(1.26)
(1.26)
Statement of Financial Position
Deferred tax asset
Provision – current
1,844,162
172,527
2,016,689
195,260
380,118
575,378
Provision – non current
1,581,770
194,969
1,776,739
Net Assets
28,253,090
(402,560)
27,850,530
Retained Earnings
(7,053,529)
(402,560)
(7,456,089)
The change did not have an impact on Other Comprehensive Income for the period or the Group’s
operating, investing and financing cash flows.
40
Indoor Skydive Australia Group Limited
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40
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
vi.
Capitalisation of Internally Developed Intangible Assets
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
u.
New and amended standards and interpretations
Distinguishing the research and development phases of a new 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.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is
not yet effective. At the date of this financial report the following standards and interpretations, which may
impact the entity in the period of initial application, have been issued but are not yet effective:
t.
Prior Period Adjustment
Lease Straight lining
Reference
Title
Summary
In prior years, the Group has entered into lease agreements with associated rent incentives for each of
its tunnels. These lease agreements have an initial term of 20 years with renewal at the option of the
Group, giving an extended lease period of 40 years.
In the current year, the Group conducted a detailed review of the terms and conditions of its lease
agreements and discovered an error in the accounting treatment of the rent incentives. The treatment
has been corrected by restating each of the affected financial statement line items for the prior period,
as follows:
Statement of Profit or Loss and other
Comprehensive Income
Previously
Reported
2016
$
Adjusted
Restated
2016
$
$
AASB 15
Revenue from
Contracts with
Customers
AASB 9
Financial
Instruments
Administration expenses
4,043,577
274,082
4,317,659
170,158
82,225
252,383
Income tax benefit
Loss after tax
(1,314,903)
(191,857)
(1,506,760)
AASB 16
Leases
This Standard establishes principles
(including disclosure requirements)
for reporting useful information
about the nature, amount, timing
and uncertainty of revenue and cash
flows arising from an entity’s
contracts with customers.
This Standard supersedes both AASB
9 (December 2010) and AASB 9
(December 2009) when applied. It
introduces a “fair value through
other comprehensive income”
category for debt instruments,
contains requirements for
impairment of financial assets, etc.
This standard is applicable to annual
reporting periods beginning on or
after 1 January 2019. The standard
replaces AASB 117 'Leases' and for
lessees will eliminate the
classifications of operating leases
and finance leases.
Application
date
Expected
Impact
1 July 2018
Not expected to
have a material
impact.
1 July 2018
Expected to
change
disclosures in
the year of
adoption.
1 July 2019
The Group is yet
to assess the
effect.
Basic Earnings Per Share
Diluted Earnings Per Share
(1.10)
(1.10)
(0.16)
(0.16)
(1.26)
(1.26)
Statement of Financial Position
Deferred tax asset
Provision – current
1,844,162
172,527
2,016,689
195,260
380,118
575,378
Provision – non current
1,581,770
194,969
1,776,739
Net Assets
28,253,090
(402,560)
27,850,530
Retained Earnings
(7,053,529)
(402,560)
(7,456,089)
The change did not have an impact on Other Comprehensive Income for the period or the Group’s
operating, investing and financing cash flows.
Indoor Skydive Australia Group Limited
2017 Annual Report
40
Indoor Skydive Australia Group Limited
2017 Annual Report
41
41
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 2: PARENT INFORMATION
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
2017
$
2016
$
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Share based payments reserve
Retained earnings
Total Equity
Statement of Profit or Loss and Other Comprehensive Income
Total loss before tax
Total comprehensive loss
Contingent liabilities
1,301,227
2,344,392
39,486,508
32,362,426
40,787,734
34,706,818
385,842
10,780,173
1,042,041
8,436,342
11,166,015
9,478,383
40,466,917
34,648,255
340,448
658,164
(11,185,646)
(10,077,984)
29,621,719
25,228,435
(1,258,610)
(1,677,969)
(1,258,610)
(1,677,969)
The parent entity does not have any contingent liabilities as at 30 June 2017.
Contractual commitments
Other than amounts disclosed in the financial statements, the parent entity has no additional contractual
commitments as at 30 June 2017.
42
Indoor Skydive Australia Group Limited
2017 Annual Report
42
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 2: PARENT INFORMATION
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
2017
$
2016
$
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Retained earnings
Total Equity
Share based payments reserve
Total loss before tax
Total comprehensive loss
Contingent liabilities
Statement of Profit or Loss and Other Comprehensive Income
The parent entity does not have any contingent liabilities as at 30 June 2017.
Contractual commitments
commitments as at 30 June 2017.
Other than amounts disclosed in the financial statements, the parent entity has no additional contractual
1,301,227
2,344,392
39,486,508
32,362,426
40,787,734
34,706,818
385,842
10,780,173
1,042,041
8,436,342
11,166,015
9,478,383
40,466,917
34,648,255
340,448
658,164
(11,185,646)
(10,077,984)
29,621,719
25,228,435
(1,258,610)
(1,677,969)
(1,258,610)
(1,677,969)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 3: REVENUE AND EXPENSES
Revenue
VWT revenue – rendering of services
Other sales
Other sales revenue relates to cafeteria income and merchandise income.
Other Income
Grant Income
Other
Included in the expenses are the following:
a)
Selling and Marketing Expenses
Marketing expenses
Employment expenses
b) Administrative Expenses
Depreciation and amortisation expenses
Occupancy expenses
Employment expenses
Share based payments
Directors’ fees
2017
$
11,047,575
1,223,506
12,271,081
24,875
20,603
45,478
2017
$
770,305
3,960,884
2016
$
6,812,248
1,343,640
8,155,888
51,750
136,639
188,389
2016
$
674,293
2,441,534
4,731,189
3,115,827
2017
$
1,648,805
1,313,899
994,066
177,872
220,290
2016
$
1,038,487
1,039,428
1,577,608
481,888
180,248
4,354,932
4,317,659
Indoor Skydive Australia Group Limited
2017 Annual Report
42
Indoor Skydive Australia Group Limited
2017 Annual Report
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43
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 4: INCOME TAX BENEFIT
Income tax benefit
Current income tax:
Current income tax charge
Deferred tax:
Relating to origination and reversal of temporary differences
Income tax benefit reported in the Statement of Profit and Loss
2017
$
2016
$
25,259
125,690
150,949
152,352
100,031
252,383
A reconciliation of income tax expense applicable to accounting loss before income tax at the statutory
income tax rate to income tax expense at the company’s effective income tax rate for the year ended 30
June 2017 is as follows:
Accounting loss before income tax
At the statutory income tax rate of 30% (2016: 30%)
Non-deductible expenses for tax purposes:
Entertainment expenses
Share based payments
Amortisation expenses
Other non-deductible expenses
Income Tax Benefit
Deferred tax assets (timing difference) comprises of:
Share issue costs
Accruals and provisions
Deferred tax asset (timing difference) brought to account
Deferred tax asset (tax losses) brought to account
Total deferred tax brought to account
NOTE 5: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
2017
$
(1,042,239)
(312,672)
3,525
53,362
51,164
53,672
(150,949)
185,278
408,299
593,577
1,574,061
2,167,638
2016
$
(1,759,143)
(527,743)
2,128
144,566
85,276
43,390
(252,383)
208,330
181,751
390,081
1,626,608
2,016,689
2017
$
2016
$
1,706,457
2,550,601
1,706,457
2,550,601
44
Indoor Skydive Australia Group Limited
2017 Annual Report
44
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 4: INCOME TAX BENEFIT
Income tax benefit
Current income tax:
Current income tax charge
Deferred tax:
Relating to origination and reversal of temporary differences
Income tax benefit reported in the Statement of Profit and Loss
A reconciliation of income tax expense applicable to accounting loss before income tax at the statutory
income tax rate to income tax expense at the company’s effective income tax rate for the year ended 30
June 2017 is as follows:
Accounting loss before income tax
At the statutory income tax rate of 30% (2016: 30%)
Non-deductible expenses for tax purposes:
Entertainment expenses
Share based payments
Amortisation expenses
Other non-deductible expenses
Income Tax Benefit
Deferred tax assets (timing difference) comprises of:
Share issue costs
Accruals and provisions
Deferred tax asset (timing difference) brought to account
Deferred tax asset (tax losses) brought to account
Total deferred tax brought to account
NOTE 5: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
2017
$
2016
$
25,259
125,690
150,949
152,352
100,031
252,383
2017
$
(1,042,239)
(312,672)
3,525
53,362
51,164
53,672
(150,949)
185,278
408,299
593,577
1,574,061
2,167,638
2016
$
(1,759,143)
(527,743)
2,128
144,566
85,276
43,390
(252,383)
208,330
181,751
390,081
1,626,608
2,016,689
2017
$
2016
$
1,706,457
2,550,601
1,706,457
2,550,601
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 6: TRADE RECEIVABLES AND OTHER ASSETS
Trade receivables
Other receivables
Prepaid expenses
2017
$
27,959
808,514
81,304
917,777
2016
$
48,320
184,705
455,500
688,525
All amounts are short- term. The carrying value is considered a reasonable approximation of fair value. The
Group’s trade and other receivables have been reviewed for indicators of impairment. No impairment has been
recognised and no receivables are past due.
NOTE 7: OTHER FINANCIAL ASSETS
Current
Non- current
2017
$
42,489
209,245
251,734
2016
$
-
-
-
Other financial assets relates to costs associated with the bank loan facility. This financial asset is amortised over
the period of the loan facility.
NOTE 8: PROPERTY PLANT AND EQUIPMENT
2017
2016
2017
2016
2017
2016
Cost
Vertical wind tunnel building Infrastructure
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
1,444,776
22,631,045 10,265,176
8,262,704 12,365,870
Depreciation
Carrying Value
(767,506)
(507,100)
21,863,539
9,758,076
(586,782)
(260,406)
7,675,922
12,105,464
32,338,525 22,631,046
(1,354,288)
(767,506)
30,984,237
21,863,540
-
-
-
1,444,776
-
Vertical wind tunnel equipment
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
7,401,038
193,085
5,169,612
12,763,735
3,601,031
(464,051)
(165,835)
6,936,987
3,435,196
3,800,006
(594,428)
(298,216)
(401,343)
3,501,790
-
-
-
5,169,612
-
7,401,037
(1,058,479)
(464,051)
11,705,256
6,936,986
Indoor Skydive Australia Group Limited
2017 Annual Report
44
Indoor Skydive Australia Group Limited
2017 Annual Report
45
45
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 8: PROPERTY PLANT AND EQUIPMENT (CONT)
2016
2017
Cost
2017
Depreciation
2016
2017
Carrying Value
2016
IT Equipment
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
Furniture and fittings
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
Office Equipment
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
491,266
239,029
(94,139)
(11,008)
397,127
228,021
173,611
252,237
(128,555)
(83,131)
45,056
169,106
1,625
-
1,625
-
666,502
491,266
(222,694)
(94,139)
443,808
397,127
461,202
224,401
(118,687)
(10,334)
342,515
214,067
294,490
236,801
(165,806)
(108,353)
128,684
128,448
(157,411)
-
56,770
(100,641)
-
598,281
461,202
(227,723)
(118,687)
370,558
342,515
300
20,968
-
21,268
-
300
-
300
(27)
-
273
(4,007)
(26)
16,961
-
-
(4,034)
(26)
17,234
-
274
-
274
Capital Work in Progress
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
8,529,771
802,644
444,599
8,697,909
(8,529,771)
(970,782)
444,599
8,529,771
-
-
-
-
-
-
-
-
8,529,771
802,644
444,599
8,697,909
(8,529,771)
(970,782)
444,599
8,529,771
Total
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
39,514,622 15,132,281
(1,444,410)
(694,277)
38,070,212
14,438,004
9,389457 25,353,123
(1,479,578)
(750,132)
7,909,879
24,602,991
(2,071,169)
(970,782)
56,770
-
(2,014,399)
(970,782)
46,832,910 39,514,622
(2,867,218)
(1,444,409)
43,965,692
38,070,213
46
Indoor Skydive Australia Group Limited
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46
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 9: INTEREST IN SUBSIDIARIES
Set out below are the Group’s subsidiaries at 30 June 2017. The subsidiaries listed below have share capital
consisting solely of ordinary shares, which are held directly by the Group and the proportion of ownership
interests held equals the voting rights held by the Group. Each subsidiary’s country of incorporation or
registration is also its principal country of business.
Subsidiaries
Country of
2017
2016
Indoor Skydiving Penrith Holdings Pty Ltd
Indoor Skydiving Penrith Pty Ltd
Indoor Skydiving Gold Coast Pty Ltd
Indoor Skydiving Adelaide Pty Ltd
Indoor Skydiving Perth Pty Ltd
ISAG Holdings D Pty Ltd
ISAG Café Pty Ltd
ISA Asia Holdings Pty Ltd*
ISA Asia Operations Pty Ltd*
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
%
100
100
100
100
100
100
100
100
100
%
100
100
100
100
100
100
100
-
-
* There were no material transactions in these entities during the current year.
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 8: PROPERTY PLANT AND EQUIPMENT (CONT)
2017
2016
2017
2016
2017
2016
Cost
Depreciation
Carrying Value
491,266
239,029
(94,139)
(11,008)
397,127
228,021
173,611
252,237
(128,555)
(83,131)
45,056
169,106
1,625
-
1,625
-
666,502
491,266
(222,694)
(94,139)
443,808
397,127
IT Equipment
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
Furniture and fittings
Balance at
Beginning of year
Acquisitions /
depreciation
Balance at end of
year
Office Equipment
Balance at
Beginning of year
Acquisitions /
depreciation
Disposals / transfers
Balance at end of
year
Balance at
Beginning of year
Acquisitions /
depreciation
Balance at end of
year
Total
Balance at
Beginning of year
Acquisitions /
depreciation
Balance at end of
year
Capital Work in Progress
-
-
-
461,202
224,401
(118,687)
(10,334)
342,515
214,067
294,490
236,801
(165,806)
(108,353)
128,684
128,448
Disposals / transfers
(157,411)
-
56,770
(100,641)
598,281
461,202
(227,723)
(118,687)
370,558
342,515
300
-
-
-
(27)
-
273
-
20,968
300
(4,007)
(26)
16,961
274
21,268
300
(4,034)
(26)
17,234
274
Disposals / transfers
(8,529,771)
(970,782)
444,599
8,697,909
444,599
8,529,771
8,529,771
802,644
8,529,771
802,644
-
-
-
-
444,599
8,697,909
(8,529,771)
(970,782)
444,599
8,529,771
39,514,622 15,132,281
(1,444,410)
(694,277)
38,070,212
14,438,004
9,389457 25,353,123
(1,479,578)
(750,132)
7,909,879
24,602,991
Disposals / transfers
(2,071,169)
(970,782)
56,770
-
(2,014,399)
(970,782)
46,832,910 39,514,622
(2,867,218)
(1,444,409)
43,965,692
38,070,213
-
-
-
-
-
Indoor Skydive Australia Group Limited
2017 Annual Report
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Indoor Skydive Australia Group Limited
2017 Annual Report
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47
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 10: INTANGIBLE ASSET
Cost
At 1 July 2015
Additions
At 30 Jun 2016
Additions
At 30 June 2017
Amortisation
At 1 July 2015
Amortisation
At 30 Jun 2016
Amortisation
At 30 June 2017
Net Book Value
At 30 June 2017
At 30 June 2016
Development
Costs
Exclusive
Territory
Development
Agreement
Total
-
-
-
1,500,000
1,500,000
-
0
1,500,000
1,500,000
517,477
-
517,477
517,477
1,500,000
2,017,477
-
-
-
-
-
789,370
284,252
789,370
284,252
1,073,622
1,073,622
170,551
170,551
1,244,173
1,244,173
517,477
-
255,827
426,378
773,304
426,378
The Exclusive Territory Development Agreement was entered into during the 2014 year and was valued at cost.
The fair value of $1,500,000 at acquisition represents the value of the shares granted to iFly Australia Pty Limited
under the Exclusive Joint Territory Agreement, being 2,500,000 shares at a close price of $0.60 on grant date (20
December 2013).
An accelerated amortisation rate of 40% has been used against the Exclusive Territory Development Agreement
intangible asset, amortised from 20 December 2013. An accelerated method has been used to reflect the
expected consumption of benefits under the agreement.
Development expenditure on individual projects are recognised as an intangible asset when the Group can
demonstrate that the asset will generate future economic benefits and can be reliably measured. Refer to Note
1(d).
48
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 10: INTANGIBLE ASSET
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 11: TRADE AND OTHER PAYABLES
Development
Costs
Exclusive
Territory
Development
Agreement
Total
Trade payables
Other accruals
Other payables
2017
$
407,894
1,247,170
2,000,000
3,655,064
2016
$
561,130
884,058
2,000,000
3,445,188
In 2016, iFly Australia Pty Ltd exercised their rights under the Exclusive Territory Development Agreement to
invest up to $1,000,000 in a subsidiary of the Company, Indoor Skydiving Perth Pty Ltd. The investment has
been agreed to be set off against amounts owed to iFly Australia Pty Ltd for the purchase of equipment. As
shares in the subsidiary have not yet been issued a non-controlling interest in the Group has not been
recognised in the Group balance sheet as at the reporting date and is included in trade payables above. This
is a separate transaction to the $1,000,000 investment made on similar basis by iFly Australia Pty Ltd in
relation to Indoor Skydiving Gold Coast Pty Ltd in 2015 financial year. The shares of which are yet to be
issued. Other payables above is therefore $2,000,000 which is expected to be settled through the issue of
equity in subsidiaries.
NOTE 12: DEFERRED REVENUE
Deferred revenue
2017
$
2016
$
1,907,300
1,016,439
1,907,300
1,016,439
Deferred revenue primarily represents prepaid sales in respect of flight time purchased in advance. The
sales are released to revenue at the time the services are rendered except the gift card revenue in relation
to expected redemption rates.
Cost
At 1 July 2015
Additions
At 30 Jun 2016
Additions
At 30 June 2017
Amortisation
At 1 July 2015
Amortisation
At 30 Jun 2016
Amortisation
At 30 June 2017
Net Book Value
At 30 June 2017
At 30 June 2016
1,500,000
1,500,000
0
1,500,000
1,500,000
-
-
517,477
517,477
517,477
1,500,000
2,017,477
789,370
284,252
789,370
284,252
1,073,622
1,073,622
170,551
170,551
1,244,173
1,244,173
517,477
255,827
426,378
773,304
426,378
-
-
-
-
-
-
-
-
-
The Exclusive Territory Development Agreement was entered into during the 2014 year and was valued at cost.
The fair value of $1,500,000 at acquisition represents the value of the shares granted to iFly Australia Pty Limited
under the Exclusive Joint Territory Agreement, being 2,500,000 shares at a close price of $0.60 on grant date (20
December 2013).
An accelerated amortisation rate of 40% has been used against the Exclusive Territory Development Agreement
intangible asset, amortised from 20 December 2013. An accelerated method has been used to reflect the
expected consumption of benefits under the agreement.
Development expenditure on individual projects are recognised as an intangible asset when the Group can
demonstrate that the asset will generate future economic benefits and can be reliably measured. Refer to Note
1(d).
Indoor Skydive Australia Group Limited
2017 Annual Report
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Indoor Skydive Australia Group Limited
2017 Annual Report
49
49
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 13: BORROWINGS
Current Liabilities
Westpac debt facility
Non - Current Liabilities
Westpac debt facility
2017
$
2016
$
472,312
472,312
711,584
711,584
10,267,198
10,267,198
8,436,342
8,436,342
The Company has in place a secured debt facility of $11,980,000 with Westpac Banking Corporation with an
undrawn amount of $1,240,490. Interest payable on each component is based on current market rates, over
a maximum 5 year term. Security provided is:
Fully Interlocking Guarantee and Indemnity by:
Indoor Skydive Australia Group
Limited
Indoor Skydiving Penrith Holdings
Pty Ltd
Indoor Skydiving Penrith Pty Ltd
Indoor Skydiving Gold Coast Pty
Ltd
Indoor Skydiving
Adelaide Pty Ltd
Indoor Skydiving
Perth Pty Ltd
ISAG Holdings D
Pty Ltd
ISAG Café Pty Ltd
Supported by General Security Agreement over all existing and future assets and undertaking by:
Indoor Skydive Australia Group Limited
Indoor Skydiving Penrith Holdings Pty Ltd
Indoor Skydiving Penrith Pty Ltd
Indoor Skydiving Gold Coast Pty Ltd
Indoor Skydiving Adelaide Pty Ltd
Indoor Skydiving Perth Pty Ltd
ISAG Holdings D Pty Ltd
ISAG Café Pty Ltd
Mortgage over lease by Indoor Skydiving Penrith Holdings Pty Ltd.
Flawed Asset Arrangement – deposits by Indoor Skydiving Penrith Holdings Pty Ltd over a deposits account held
with Westpac Banking Corporation.
50
Indoor Skydive Australia Group Limited
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 13: BORROWINGS
Current Liabilities
Westpac debt facility
Non - Current Liabilities
Westpac debt facility
2017
$
2016
$
472,312
472,312
711,584
711,584
10,267,198
10,267,198
8,436,342
8,436,342
The Company has in place a secured debt facility of $11,980,000 with Westpac Banking Corporation with an
undrawn amount of $1,240,490. Interest payable on each component is based on current market rates, over
a maximum 5 year term. Security provided is:
Fully Interlocking Guarantee and Indemnity by:
Indoor Skydive Australia Group
Limited
Pty Ltd
Indoor Skydiving Penrith Holdings
Indoor Skydiving Penrith Pty Ltd
Indoor Skydiving Gold Coast Pty
Ltd
Indoor Skydiving
Adelaide Pty Ltd
Indoor Skydiving
Perth Pty Ltd
ISAG Holdings D
Pty Ltd
ISAG Café Pty Ltd
Indoor Skydive Australia Group Limited
Indoor Skydiving Penrith Holdings Pty Ltd
Indoor Skydiving Penrith Pty Ltd
Indoor Skydiving Gold Coast Pty Ltd
Indoor Skydiving Adelaide Pty Ltd
Indoor Skydiving Perth Pty Ltd
ISAG Holdings D Pty Ltd
ISAG Café Pty Ltd
Supported by General Security Agreement over all existing and future assets and undertaking by:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 14: PROVISIONS
Current Provisions
Non Current Provisions
Total
Carrying amount 1 July 2016
Additional Provisions
Change in Estimates
Amount Utilised
Carrying amount 30 June 2017
Current
Non-current
Carrying amount 1 July 2015
Additional Provisions
Amount Utilised
Carrying amount 30 June 2016
Current
Non-current
2017
276,558
818,289
1,094,847
2016
575,378
1,776,739
2,352,117
Provision for
Employee
Benefits
$
Provision for
Lease Straight
Lining
$
Provision
for Site
Restoration
$
Total
Provisions
$
195,260
345,819
-
575,087
1,581,770
2,352,117
101,641
62,693
510,153
-
(1,421,808)
(1,421,808)
(317,109)
(28,506)
-
(345,615)
223,970
223,970
648,222
222,655
1,094,847
33,151
19,437
276,558
-
615,072
203,218
818,289
109,683
269,294
(183,717)
195,260
195,260
301,005
-
410,688
276,738
1,581,770
2,127,802
(2,656)
-
(186,373)
575,087
1,581,770
2,352,117
380,118
-
575,378
-
194,969
1,581,770
1,776,739
a) Provisions for employee benefits
The current portion for this provision includes the total amount accrued for annual leave entitlements that have
vested due to employees having completed the required period of service.
b) Provision for Lease Straight Lining
Rental lease payments for operating the wind tunnels are expensed on a straight lining basis. All unamortised
lease incentives in the form of rent free periods are recognised as provision. This provision is reduced by
allocating lease payments between rental expenses and reduction of the provision over the remaining term of
the lease.
Mortgage over lease by Indoor Skydiving Penrith Holdings Pty Ltd.
c)
Provision for Site Restoration
Flawed Asset Arrangement – deposits by Indoor Skydiving Penrith Holdings Pty Ltd over a deposits account held
with Westpac Banking Corporation.
This provision relates to present value of expected site restoration costs for three tunnels. These costs are
projected forward to an extended lease period of 40 years using 2.5% inflationary escalation and discounted to
present value at 8.73% after consideration of the associated risks.
Indoor Skydive Australia Group Limited
2017 Annual Report
50
Indoor Skydive Australia Group Limited
2017 Annual Report
51
51
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 15: ISSUED CAPITAL
135,884,625 (2016: 120,193,004) fully paid ordinary shares
Share issue costs
Ordinary Shares
At the beginning of the reporting period
· Shares issued during the period
· Performance rights exercised
b.
Performance Rights
At the beginning of the reporting period:
Performance rights issued during the year
Performance rights lapsed during the year
Performance rights exercised during the year
2017
$
42,459,363
(1,992,446)
40,466,917
2016
$
36,298,770
(1,650,315)
34,648,455
2017
No.
2016
No.
120,193,004
118,974,294
14,907,909
-
783,712
1,218,710
135,884,625
120,193,004
2017
1,845,496
-
(249,895)
(783,712)
811,889
2016 *
1,133,712
2,027,167
(96,673)
(1,218,710)
1,845,496
* 2016 values include 85,000 Conditional Rights issued and exercised during the year.
Performance rights are provided to certain employees (including key management personnel) via the Indoor
Skydive Australia Group Limited Performance Rights Plan. The fair value is measured at grant date and is
recognised over the period the services are received, which is the vesting period upon which the employees would
become entitled to exercise the performance rights. The opening balance of 1,133,712 has also been updated to
include remaining performance rights on issue from 2013 to KMP.
c.
Capital Management
The Board controls the capital of the Group in order to generate long-term shareholder value and to ensure that
the Group can fund its operations and continue as a going concern. The Board assesses the Group’s capital
requirements based on the Company’s stage of operations, having regard to available debt funding and equity
funding and seek to maintain a capital structure based on the lowest cost of capital available to the Group. The
Board achieves this through the internal generation of capital and the management of debt levels and, if necessary,
share issues.
52
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 16: CAPITAL AND LEASING COMMITMENTS
a)
Operating Lease Commitments
Non-cancellable operating
recognised in the financial statements
Payable – minimum lease payments:
leases contracted for but not
-
-
-
Not later than 12 months
Between 12 months and five years
Later than five years
2017
$
2016
$
857,821
3,170,156
24,856,067
28,884,044
715,442
3,056,308
25,624,310
29,396,060
The Group has entered into operating leases for occupancy of the vertical wind tunnels with extended lease
terms of 40 years.
b) Capital Commitments
Subsidiary capital commitments contracted
recognised in the financial statements
for but not
-
-
6,857,855
6,857,855
Capital commitments for financial year 2016 related to the construction of the Perth tunnel.
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 15: ISSUED CAPITAL
135,884,625 (2016: 120,193,004) fully paid ordinary shares
Share issue costs
Ordinary Shares
At the beginning of the reporting period
· Shares issued during the period
· Performance rights exercised
b.
Performance Rights
At the beginning of the reporting period:
Performance rights issued during the year
Performance rights lapsed during the year
Performance rights exercised during the year
2017
$
42,459,363
(1,992,446)
40,466,917
2016
$
36,298,770
(1,650,315)
34,648,455
2017
No.
2016
No.
120,193,004
118,974,294
14,907,909
-
783,712
1,218,710
135,884,625
120,193,004
2017
1,845,496
-
(249,895)
(783,712)
811,889
2016 *
1,133,712
2,027,167
(96,673)
(1,218,710)
1,845,496
* 2016 values include 85,000 Conditional Rights issued and exercised during the year.
Performance rights are provided to certain employees (including key management personnel) via the Indoor
Skydive Australia Group Limited Performance Rights Plan. The fair value is measured at grant date and is
recognised over the period the services are received, which is the vesting period upon which the employees would
become entitled to exercise the performance rights. The opening balance of 1,133,712 has also been updated to
include remaining performance rights on issue from 2013 to KMP.
c.
Capital Management
The Board controls the capital of the Group in order to generate long-term shareholder value and to ensure that
the Group can fund its operations and continue as a going concern. The Board assesses the Group’s capital
requirements based on the Company’s stage of operations, having regard to available debt funding and equity
funding and seek to maintain a capital structure based on the lowest cost of capital available to the Group. The
Board achieves this through the internal generation of capital and the management of debt levels and, if necessary,
share issues.
Indoor Skydive Australia Group Limited
2017 Annual Report
52
Indoor Skydive Australia Group Limited
2017 Annual Report
53
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 17: CASH FLOW INFORMATION
2017
$
2016
$
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss:
- Share based payments
- Gain/loss on FX revaluation
(891,290)
(1,506,760)
177,872
481,888
-
(136,639)
- Unwind of make good discount
(20,968)
-
- Depreciation expense
- Amortisation expense
Changes in assets and liabilities:
- (increase)/decrease in trade and term receivables
- (increase)/decrease in prepaid expenses
1,434,796
214,009
20,361
374,196
740,924
345,842
241,335
-
- (increase)/decrease in other financial assets
(229,830)
72,107
- (increase)/decrease in deferred tax asset
(150,948)
(170,158)
- increase/(decrease) in trade payables and accruals
- increase/(decrease) in unearned revenue
- increase/(decrease) in provisions
Cash flow provided by operations
227,428
890,861
101,845
2,148,332
191,239
(264,091)
277,433
273,120
Other Non-Cash Transactions
Capital expenditure
9,906,934
12,654,259
Depreciation & Amortisation
1,648,805
1,086,766
Other non-cash expense
177,872
481,888
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
- Unwind of make good discount
(20,968)
-
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 17: CASH FLOW INFORMATION
Loss after income tax
Non-cash flows in loss:
- Share based payments
- Gain/loss on FX revaluation
- Depreciation expense
- Amortisation expense
Changes in assets and liabilities:
- (increase)/decrease in trade and term receivables
- (increase)/decrease in prepaid expenses
- increase/(decrease) in trade payables and accruals
- increase/(decrease) in unearned revenue
- increase/(decrease) in provisions
Cash flow provided by operations
2017
$
2016
$
(891,290)
(1,506,760)
177,872
481,888
-
(136,639)
1,434,796
214,009
20,361
374,196
227,428
890,861
101,845
2,148,332
740,924
345,842
241,335
-
191,239
(264,091)
277,433
273,120
- (increase)/decrease in deferred tax asset
(150,948)
(170,158)
Other Non-Cash Transactions
Capital expenditure
Depreciation & Amortisation
1,648,805
1,086,766
Other non-cash expense
177,872
481,888
9,906,934
12,654,259
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 18: RELATED PARTY TRANSACTIONS
a. The Group’s main related parties are as follows:
(i)
(ii)
(iii)
Entities exercising control over the Group:
The ultimate parent entity is Indoor Skydive Australia Group Ltd.
Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of
the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity, are
considered key management personnel.
For details of disclosures relating to key management personnel, refer to the Remuneration Report.
Entities subject to significant influence by the Group:
An entity that has the power to participate in the financial and operating policy decisions of an entity, but
does not have control over those policies, is an entity which holds significant influence. Significant
influence may be gained by share ownership, statute or agreement. There are no such entities in the
Group.
Other related parties:
(iv)
Other related parties include entities controlled by the ultimate parent entity and entities over which key
management personnel have joint control.
-
The entities disclosed in Note 9 are 100% owned subsidiary companies of the parent entity. Refer to
Note 9 for further details.
- (increase)/decrease in other financial assets
(229,830)
72,107
b. Transactions with related parties:
Balances and transactions between the Company and its subsidiaries, which are related parties of the
Company, have been eliminated on consolidation and are not disclosed in this Note. There were no related
party transactions during the year (2016: Nil)
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated.
c.
Key Management Personnel Compensation
The Key Management Personnel compensation included in employment expenses is as follows:
Consolidated Entity
Company
2017
$
2016
$
2017
$
2016
$
Short term employee benefits
1,185,424
1,125,179
1,185,424
1,125,17
Post employment benefits
89,817
85,525
89,817
85,525
Share based payments
133,710
538,973
133,710
538,973
1,408,951
1,749,677
1,408,951
1,749,677
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 19: SHARE BASED PAYMENTS
On 27 November 2013 shareholders approved the Indoor Skydive Australia Group Limited Performance
Rights Plan (Plan) at the 2013 Annual General Meeting. The Plan allows for the grant of performance rights
to Directors and employees as part of the Company’s remuneration strategy. The performance rights carry
neither rights to dividends, nor voting rights and may be exercised at any time from the date of vesting to the
date of their expiry.
Measurement of fair values
(i)
Equity-Settled Share-Based Payment Arrangements
The fair value of equity instruments granted under the Plan has been, where appropriate, calculated
using a binominal approximation option pricing model. Service and non-market performance
conditions attached to the approvals or grants were not taken into account in determining the fair
value.
The inputs used in the calculation of the fair value at grant (or approval) date of the Equity-settled
share-based payments were as follows:
27 November 2013
7 July 2014
7 July 2015
27 Oct 2015
Fair Value at grant/approval
date (weighted average)
Share Price at grant/approval
date
$0.59
$0.59
Exercise Price
$0.00
Expected Volatility
50%
Expected life (weighted
average number of days)
Expected dividends
Risk-free rate (weighted
average)
956
0%
$0.68
$0.47
$0.38
$0.68
$0.00
50%
358
0%
$0.47
$0.47
$0.00
50%
730
0%
$0.00
50%
619
0%
2.95%
2.58%
2.20%
2.83%
5 day VWAP
n/a
$0.68
$0.47
n/a
Reconciliation of outstanding share options
The number and weighted-average exercise prices of equity instruments granted under the Plan were as
follows:
Outstanding at 30 June 2016
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at 30 June 2017
Number of
rights
1,845,496
-
(249,895)
(783,712)
811,889
Weighted-average exercise price
-
-
-
-
-
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 19: SHARE BASED PAYMENTS
On 27 November 2013 shareholders approved the Indoor Skydive Australia Group Limited Performance
Rights Plan (Plan) at the 2013 Annual General Meeting. The Plan allows for the grant of performance rights
to Directors and employees as part of the Company’s remuneration strategy. The performance rights carry
neither rights to dividends, nor voting rights and may be exercised at any time from the date of vesting to the
date of their expiry.
Measurement of fair values
(i)
Equity-Settled Share-Based Payment Arrangements
The fair value of equity instruments granted under the Plan has been, where appropriate, calculated
using a binominal approximation option pricing model. Service and non-market performance
conditions attached to the approvals or grants were not taken into account in determining the fair
value.
The inputs used in the calculation of the fair value at grant (or approval) date of the Equity-settled
share-based payments were as follows:
27 November 2013
7 July 2014
7 July 2015
27 Oct 2015
Fair Value at grant/approval
date (weighted average)
Share Price at grant/approval
date
Exercise Price
$0.00
Expected Volatility
50%
$0.59
$0.59
956
0%
Expected life (weighted
average number of days)
Expected dividends
Risk-free rate (weighted
average)
$0.68
$0.47
$0.38
$0.68
$0.00
50%
358
0%
$0.47
$0.47
$0.00
50%
730
0%
$0.00
50%
619
0%
2.95%
2.58%
2.20%
2.83%
5 day VWAP
n/a
$0.68
$0.47
n/a
Reconciliation of outstanding share options
The number and weighted-average exercise prices of equity instruments granted under the Plan were as
follows:
Number of
Weighted-average exercise price
Outstanding at 30 June 2016
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding as at 30 June 2017
rights
1,845,496
-
(249,895)
(783,712)
811,889
-
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 20: SEGMENT INFORMATION
General Information
Identification of reportable segments
The Group’s operations are in one segment being the construction and operation of indoor skydiving facilities.
The Group operates in one segment being Australia. All subsidiaries in the Group operate within the same
segment. All three tunnels have been aggregated to one operating segment.
Types of Products and Services by Segment
The products and services will include a number of indoor skydiving facilities allowing human flight within a safe
environment used by tourists, enthusiasts and military.
NOTE 21: FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
The Board of Directors for, among other issues, manages financial risk exposures of the Group. The Board
monitors the Group’s financial risk management policies and exposures and approves financial transactions
within the scope of its authority. It also reviews the effectiveness of internal controls relating to commodity price
risk, counterparty credit risk, currency risk, liquidity risk and interest rate risk. The Board meets on a regular
basis.
The Board’s overall risk management strategy seeks to assist the Group in meeting its financial targets, while
minimising potential adverse effects on financial performance. Its functions include the review of the use of
hedging derivative instruments, credit risk policies and future cash flow requirements.
Specific Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market
risk consisting of interest rate risk, foreign currency risk and other price risk (commodity and equity price risk).
There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or
the Board’s objectives, policies and processes for managing or measuring the risks from the previous period.
a.
Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter
parties of contract obligations that could lead to a financial loss to the Group.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit
rating, or in entities that the Board has otherwise assessed as being financially sound.
Credit risk exposures
The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting
period excluding the value of any collateral or other security held, is equivalent to the carrying amount
and classification of those financial assets (net of any provisions) as presented in the statement of financial
position.
No collateral is held by the Group securing receivables.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
The Group only has significant concentrations of credit risk with any single counterparty in the form of its
bankers, and therefore significant credit risk exposures to Australia.
There are no trade and other receivables that are past due nor impaired.
Credit risk related to balances with banks and other financial institutions is managed by the Board. which
requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at
least AA–.
The following table provides information regarding the credit risk relating to cash and term deposits based
on Standard & Poor’s counterparty credit ratings.
Cash and Term Deposits:
Cash at bank and on hand
b.
Liquidity risk
2017
$
1,706,457
1,706,457
2016
$
2,550,601
2,550,601
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the
following mechanisms:
–
–
–
–
–
–
–
–
preparing forward-looking cash flow forecasts in relation to its operating, investing and financing
activities;
using derivatives that are only traded in highly liquid markets;
monitoring undrawn credit facilities;
obtaining funding from a variety of sources;
maintaining a reputable credit profile;
managing credit risk related to financial assets;
only investing surplus cash with major financial institutions; and
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet it liabilities when
they become due.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities.
Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation.
Actual timing may therefore differ from that disclosed. 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.
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Notes to the Financial Statements
For the year ended 30 June 2017
The Group only has significant concentrations of credit risk with any single counterparty in the form of its
bankers, and therefore significant credit risk exposures to Australia.
There are no trade and other receivables that are past due nor impaired.
Credit risk related to balances with banks and other financial institutions is managed by the Board. which
requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at
least AA–.
The following table provides information regarding the credit risk relating to cash and term deposits based
on Standard & Poor’s counterparty credit ratings.
2017
$
1,706,457
1,706,457
2016
$
2,550,601
2,550,601
Cash and Term Deposits:
Cash at bank and on hand
b.
Liquidity risk
following mechanisms:
activities;
–
–
–
–
–
–
–
–
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the
preparing forward-looking cash flow forecasts in relation to its operating, investing and financing
using derivatives that are only traded in highly liquid markets;
monitoring undrawn credit facilities;
obtaining funding from a variety of sources;
maintaining a reputable credit profile;
managing credit risk related to financial assets;
only investing surplus cash with major financial institutions; and
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet it liabilities when
they become due.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities.
Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation.
Actual timing may therefore differ from that disclosed. 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.
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
Financial liability and financial asset maturity analysis for the Consolidated Group.
Within 1 Year
2017
2016
1 to 5 Years
2017
2016
Over 5 Years
2017
2016
Total
2017
2016
$
$
$
$
$
$
$
$
Financial
liabilities due for
payment
Borrowings
Trade and other
payables
Total contractual
outflows
Total expected
outflows
Financial assets
– cash flows
realisable
Cash and cash
equivalents
Trade and other
receivables
Total anticipated
inflows
Net inflow on
financial
instruments
472,312
711,584 10,267,198 8,436,342
1,655,064 1,445,188
-
-
2,127,376 2,156,772 10,267,198 8,436,342
1,127,376 2,156,772 10,267,198 8,436,342
1,706,457 2,550,601
917,777
688,525
2,624,234 3,239,126
-
-
-
-
-
-
496,858 1,082,354 (10,267,198) (8,436,342)
-
-
-
-
-
-
-
- 10,739,510
9,147,926
-
1,655,064
1,445,188
- 12,394,574 10,593,114
- 12,394,574 10,593,114
-
-
-
1,706,457
2,550,601
917,777
688,525
2,624,234
3,239,126
-
(9,770,340)
(7,353,988)
* Trade and other payables excludes Skyventure investment balance of $2,000,000 that is expected to be
settled through equity.
Market risk
c.
(i)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end
of the reporting period whereby a future change in interest rates will affect future cash flows or the
fair value of fixed rate financial instruments. The Group is not exposed to earnings volatility on
floating rate instruments.
The financial instruments that primarily expose the Group to interest rate risk are borrowings, cash
and cash equivalents and term deposits.
Interest rate risk is managed using a mix of fixed and floating rate debt where possible.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
(ii)
Foreign exchange risk
Most of the Group’s transactions are carried out in AUD. Exposures to currency exchange rates
primarily arise from the purchase of vertical wind tunnel equipment from SkyVenture
International, which is denominated in US dollars.
To mitigate the Group’s exposure to foreign currency risk, non-AUD cash flows are monitored and
forward exchange contracts are entered into in accordance with the Group’s risk management
policies. Forward exchange contracts are mainly entered into for significant long-term foreign
currency exposures that are not expected to be offset by other currency transactions. Exposure
to foreign exchange risk may result in the fair value or future cash flows of a financial instrument
fluctuating due to movement in foreign exchange rates of currencies in which the Group holds
financial instruments which are other than the AUD functional currency of the Group.
(iii)
Other price risk
Other price risk relates to the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices largely due to demand and supply factors (other
than those arising from interest rate risk or currency risk) for commodities.
The Group is not exposed to commodity price risk. The Group is not exposed to securities price
risk on investments held for trading over the medium to longer terms.
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates,
and exchange rates. In respect of the exchange rates, the table summarises the sensitivity of the
balance of financial instruments held at the reporting date to movement in the exchange rate of
the US dollar to the Australian dollar, with all other variables held constant. The table indicates
the impact on how profit and equity values reported at the end of the reporting period would
have been affected by changes in the relevant risk variable that management considers to be
reasonably possible.
These sensitivities assume that the movement in a particular variable is independent of other
variables.
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Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
(ii)
Foreign exchange risk
Most of the Group’s transactions are carried out in AUD. Exposures to currency exchange rates
primarily arise from the purchase of vertical wind tunnel equipment from SkyVenture
International, which is denominated in US dollars.
To mitigate the Group’s exposure to foreign currency risk, non-AUD cash flows are monitored and
forward exchange contracts are entered into in accordance with the Group’s risk management
policies. Forward exchange contracts are mainly entered into for significant long-term foreign
currency exposures that are not expected to be offset by other currency transactions. Exposure
to foreign exchange risk may result in the fair value or future cash flows of a financial instrument
fluctuating due to movement in foreign exchange rates of currencies in which the Group holds
financial instruments which are other than the AUD functional currency of the Group.
(iii)
Other price risk
Other price risk relates to the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices largely due to demand and supply factors (other
than those arising from interest rate risk or currency risk) for commodities.
The Group is not exposed to commodity price risk. The Group is not exposed to securities price
risk on investments held for trading over the medium to longer terms.
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates,
and exchange rates. In respect of the exchange rates, the table summarises the sensitivity of the
balance of financial instruments held at the reporting date to movement in the exchange rate of
the US dollar to the Australian dollar, with all other variables held constant. The table indicates
the impact on how profit and equity values reported at the end of the reporting period would
have been affected by changes in the relevant risk variable that management considers to be
These sensitivities assume that the movement in a particular variable is independent of other
reasonably possible.
variables.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
Year ended 30 June 2017
+/–1% in interest rates
+/–10% in devaluation of the AUD
Year ended 30 June 2016
+/–1% in interest rates
+/–10% in devaluation of the AUD
Profit
$
107,395
26,847
7,364
87
Equity
$
107,395
26,847
7,364
87
There have been no changes in any of the methods or assumptions used to prepare the above sensitivity analysis
from the prior year. These movements are considered to be reasonably possible based on observation of current
market conditions.
Fair Values
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared
to their carrying amounts as presented in the statement of financial position. Fair value is the amount at which an
asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length
transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where changes in
assumptions may have a material impact on the amounts estimated. Areas of judgement and the assumptions have
been detailed below. Where possible, valuation information used to calculate fair value is extracted from the
market, with more reliable information available from markets that are actively traded. In this regard, fair values
for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes
are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly
used by market participants.
Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to
the change in discount rates being applied by the market since their initial recognition by the Group.
Most of these instruments, which are carried at amortised cost (i.e. term receivables, held-to-maturity assets, loan
liabilities), are to be held until maturity and therefore the fair value figures calculated bear little relevance to the
Group.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
Consolidated Group
Note
Carrying Amount
$
Fair Value
$
Carrying Amount
$
Fair Value
$
2017
2016
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Borrowings
Total financial liabilities
(i)
(i)
(i)
(ii)
1,706,457
917,777
2,624,234
1,706,457
917,777
2,624,234
2,550,601
688,525
3,239,126
2,550,601
688,525
3,239,126
3,655,064
3,655,064
10,739,510 10,739,510
14,394,574 14,394,574
3,445,188
9,147,926
3,445,188
9,147,926
12,593,114 12,593,114
The fair values disclosed in the above table have been determined based on the following methodologies:
(i)
Cash and cash equivalents, term deposits, trade and other receivables, and trade and other
payables are short-term instruments in nature whose carrying amount is equivalent to fair
value. Trade and other payables exclude amounts provided for annual leave, which is outside
the scope of AASB 139.
(ii)
Debt is recorded at the current carrying value which is considered equivalent to fair value.
NOTE 22: AUDITOR’S REMUNERATION
Remuneration of the auditor for:
Grant Thornton Audit Pty Limited
Audit fees
Half year review
Taxation compliance
Other advisory services
–
–
–
–
2017
$
2016
$
62,500
25,500
5,300
2,500
95,800
60,000
23,000
3,000
450
86,450
The Group had a change in auditors. The auditor for financial year 2016 was RSM Australia
Partners.
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Notes to the Financial Statements
For the year ended 30 June 2017
Consolidated Group
Note
Carrying Amount
Fair Value
Carrying Amount
Fair Value
$
$
$
$
2017
2016
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Borrowings
Total financial liabilities
(i)
(i)
(i)
(ii)
1,706,457
1,706,457
2,550,601
2,550,601
917,777
917,777
688,525
688,525
2,624,234
2,624,234
3,239,126
3,239,126
3,655,064
3,655,064
3,445,188
3,445,188
10,739,510 10,739,510
9,147,926
9,147,926
14,394,574 14,394,574
12,593,114 12,593,114
The fair values disclosed in the above table have been determined based on the following methodologies:
(i)
Cash and cash equivalents, term deposits, trade and other receivables, and trade and other
payables are short-term instruments in nature whose carrying amount is equivalent to fair
value. Trade and other payables exclude amounts provided for annual leave, which is outside
the scope of AASB 139.
(ii)
Debt is recorded at the current carrying value which is considered equivalent to fair value.
NOTE 22: AUDITOR’S REMUNERATION
Remuneration of the auditor for:
Grant Thornton Audit Pty Limited
Audit fees
Half year review
Taxation compliance
Other advisory services
–
–
–
–
2017
$
2016
$
62,500
25,500
5,300
2,500
95,800
60,000
23,000
3,000
450
86,450
The Group had a change in auditors. The auditor for financial year 2016 was RSM Australia
Partners.
NOTE 21: FINANCIAL RISK MANAGEMENT (CONT)
NOTE 23: EARNINGS PER SHARE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Notes to the Financial Statements
For the year ended 30 June 2017
Earnings per share (cents per share)
From continuing operations:
-
basic earnings per share
-
diluted earnings per share
a.
Reconciliation of earnings to profit or loss:
Loss
Earnings used to calculate basic EPS
Earnings used in the calculation of dilutive EPS
Weighted average number of ordinary shares for basic EPS
b.
Weighted average number of ordinary shares for diluted EPS
All performance rights on issue at 30 June 2017 are anti-dilutive.
2017
Cents
2016
Cents
(0.68)
(0.68)
(1.26)
(1.26)
2017
$
2016
$
(891,290)
(1,506,760)
(891,290)
(1,506,760)
(891,290)
(1,506,760)
No.
No.
131,633,571
119,673,163
136,633,571
119,673,163
NOTE 24: EVENTS AFTER REPORTING DATE
Since the reporting date the Board of Directors has resolved to issue 4,150,000 unlisted options as a long term
incentive to eligible employees (incentive options). 1,950,000 incentive options were issued to eligible
employees on 24 August 2017 and 2,200,000 incentive options will be issued to the Company’s executive
directors subject to shareholder approval. The incentive options have an exercise price of $0.35 and expire on 23
August 2021. 50% of the incentive options will vest after 2 years of continuous service and 50% after 3 years of
continuous service from 24 August 2017.
On 4 September 2017 the Company entered into a binding Memorandum of Understanding with Avest Capital
Company Limited to enable the Company to conduct further due diligence and to establish a commercial
framework for the development and operation of indoor skydiving facilities in China including Hong Kong under
ISA Group’s AirRider brand. See ASX Announcement made on 4 September 2017 for further details.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or
may significantly affect the operations of the consolidated group, the results of those operations, or the state of
affairs of the consolidated group in future financial years.
NOTE 25: CONTINGENT LIABILITIES
The Group does not have any contingent liabilities at the reporting date.
Indoor Skydive Australia Group Limited
2017 Annual Report
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2017 Annual Report
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
DIRECTOR’S DECLARATIONS
FOR THE YEAR ENDED 30 JUNE 2017
Directors’ Declarations
For the year ended 30 June 2017
In the opinion of the Directors of Indoor Skydive Australia Group Limited:
a. the financial statements and notes, as set out on pages 26 to 63, are in accordance with the Corporations
Act 2001, including:
i.
ii.
giving a true and fair view of the financial position as at 30 June 2017 and of its performance
for the financial year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
b. There are reasonable grounds to believe that Indoor Skydive Australia Group Limited will be able to pay
its debts as and when they become due and payable.
Note 1 includes a statement that the financial statements also comply with International Financial Reporting
Standards.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2017.
This declaration is made in accordance with a resolution of the Directors.
For and on behalf of the Board
Ken Gillespie
Chairman
26 September 2017
Sydney
Wayne Jones
Director & Chief Executive Officer
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Directors’ Declarations
For the year ended 30 June 2017
In the opinion of the Directors of Indoor Skydive Australia Group Limited:
a. the financial statements and notes, as set out on pages 26 to 63, are in accordance with the Corporations
Act 2001, including:
giving a true and fair view of the financial position as at 30 June 2017 and of its performance
for the financial year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
i.
ii.
Standards.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2017.
This declaration is made in accordance with a resolution of the Directors.
For and on behalf of the Board
Ken Gillespie
Chairman
26 September 2017
Sydney
Wayne Jones
Director & Chief Executive Officer
INDEPENDENT AUDITOR’S REPORT
b. There are reasonable grounds to believe that Indoor Skydive Australia Group Limited will be able to pay
its debts as and when they become due and payable.
Independent Auditor’s Report
To the Members of Indoor Skydive Australia Group Limited
Note 1 includes a statement that the financial statements also comply with International Financial Reporting
Report on the audit of the financial report
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Opinion
We have audited the financial report of Indoor Skydive Australia Group Limited (the Company) and
its subsidiaries (the Group), which comprises the consolidated statement of financial position as at
30 June 2017, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
b Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Indoor Skydive Australia Group Limited
2017 Annual Report
64
65
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INDEPENDENT AUDITOR’S REPORT
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Deferred revenue – Note 1(s)(iv), 12
The Group recognises revenues derived from the
sale of goods and services as well as the sale of
prepaid gift cards. A portion of revenue relating to gift
card sales is recognised upfront based on
management’s estimate of historical redemption
rates.
The Group recognised gift card revenue of $494,000
for the year ended 30 June 2017 and, at year end, a
deferred revenue balance of $1,907,000 is recorded
as a current liability.
This is a key audit matter given the management
judgement involved in developing and applying
appropriate accounting policies that comply with
accounting standards and in determining the timing of
revenue to be recognised.
Recovery of deferred tax assets – Note 1(s)(ii), 4
Australian Accounting Standards require deferred tax
assets to be recognised only to the extent that it is
probable that sufficient future taxable profits will be
generated in order for the benefits of the deferred tax
assets to be realised. These benefits are realised by
reducing tax payable on future taxable profits.
The Group recognised gross deferred tax assets of
$2,167,638 at 30 June 2017, of which $1,574,061
arises from tax losses carried forward.
This is a key audit matter due to the magnitude of the
deferred tax assets recognised and the judgment
involved in determining the recoverability of the tax
assets
Our audit procedures included, among others:
reviewing the mathematical accuracy of
•
management’s calculation of the gift card revenue
recognised;
• evaluating the reasonableness of management’s
estimates relating to gift card breakage rates
including corroborating management’s assertions
to historical redemption rates disaggregated based
on locations; and
• performing testing on a sample of sales at year
end to determine the revenues recorded relate to
the appropriate period.
Our audit procedures included, among others:
•
reviewing the tax calculations prepared by the
Group;
• evaluating the key assumptions used by the
Group to determine its tax provisions;
involving our taxation specialists to assist in this
assessment of the determination of the tax bases.
evaluating the assessment of the recoverability of
its deferred tax assets; and
assessing the Group’s taxation disclosures.
•
•
•
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INDEPENDENT AUDITOR’S REPORT
Provision for site restoration – Note 1(s)(v), 14
The Group entered into long term tenant lease
agreements at each of their tunnel facilities – Penrith,
Gold Coast and Perth. There is a contractual
obligation that the Group is responsible for restoring
the site to its original condition at the conclusion of
the lease.
The Group has recognised a provision of $223,000
for site restoration as at 30 June 2017 in accordance
with AASB 137 Provisions, Contingent Liabilities and
Contingent Assets. There has been a change in
accounting estimate for the calculation of the
provision which has been applied prospectively in
accordance with AASB 108 Accounting Policies,
Changes in Accounting Estimated and Errors.
This is a key audit matter due to the inherent
complexity in estimating future restoration costs,
particularly those that are forecast to be incurred
several years in the future.
Provision for lease incentives – Note 1(t), 14
The Group entered into four lease agreements at
each of their tunnel locations and head office. The
varying rent incentive offered within each agreement
is required to be recognised on a straight line basis in
accordance with AASB 117 Leases.
The accounting for the straight-lining of lease
incentives was incorrect in the prior period. This error
has been disclosed in the 30 June 2017 financial
statements and prior year comparatives have been
restated.
This is a key audit matter due to the material nature
of the prior period error and the significant amount of
time and senior resources dedicated to this matter
during the current year audit.
Our audit procedures included, amongst others:
•
reviewing the mathematical accuracy of the
Group’s calculation;
•
• evaluating the key assumptions used by the Group
in calculating the provision including the inputs to
calculate the discount factor;
reading the terms of the lease agreements to verify
the Group’s rights and obligations;
reviewing qualifications and experience of
Management’s expert in relation to the valuation of
the restoration costs at their present value to use
as the basis of the estimate; and
•
• assessing the adequacy of financial statement
disclosures.
Our audit procedures included, amongst others:
•
reviewing prior auditor working papers as part of
opening balance assessment; assessing the
impact of the prior period accounting error
identified;
reviewing the mathematical accuracy of the
Group’s calculation;
reading the terms of the lease agreements to
understand the Group’s rights and obligations; and
•
•
• assessing the adequacy of financial statement
disclosures.
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INDEPENDENT AUDITOR’S REPORT
Basis of Accounting - Note 1
In accordance with the Australian Accounting
Standards, when assessing whether the going
concern assumption is appropriate, management is
required to take into account all available information
about the future, which is at least, but is not limited to,
twelve months from the end of the reporting period.
This assessment is largely based on the assumptions
made by the directors in their cash flow forecast.
These forecasts include the directors’ assumptions
regarding the timing of future cash flows, operating
results, capital raising activities and any potential sale
of assets.
This assessment is largely based on the assumptions
made by the directors in their cash flow forecast.
These forecasts include the directors’ assumptions
regarding the timing of future cash flows, operating
results, capital raising activities and any capital
commitments.
Our audit procedures included, amongst others:
• evaluating the underlying data used by
(management/the directors) to generate the cash
flow projections;
• analysing the impact of reasonably possible
changes in projected cash flows and their timing,
to the projected periodic cash positions.
• assessing the resulting impact on the ability of the
Group to pay debts as and when they fall due and
to continue as a going concern. The specific areas
we focused on were informed from the results of
our tests of the accuracy of previous Group cash
flow projections and sensitivity analysis on key
cash flow projection assumptions;
• obtaining and reading correspondence with
existing financiers to understand and assess the
options available to the Group including available
debt facilities, and assessing likelihood of
compliance with terms of these facilities based on
budgets and forecasts prepared by management;
and
• evaluating the Group’s basis of accounting
disclosures in the financial report by comparing
them to our understanding of the matter, the
events or conditions incorporated into the cash
flow projection assessment, the Group’s plans,
and accounting standard requirements.
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2017, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or
to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
68
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INDEPENDENT AUDITOR’S REPORT
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 13 to 24 of the directors’ report for
the year ended 30 June 2017.
In our opinion, the Remuneration Report of Indoor Skydive Australia Group Limited, for the year
ended 30 June 2017, complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
P J Woodley
Partner - Audit & Assurance
Sydney, 26 September 2017
69
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ADDITIONAL INFORMATION
Additional Information
Additional Information
The following information is current as at 11 September 2017:
Shareholder Information
1.
Distribution of Shareholders
Category (size of holding):
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Number
Ordinary Shares
36
105
72
256
63
532
18,626
266,820
613,064
8,836,290
126,961,714
136,696,514
The number of shareholdings held in less than marketable parcels is 87.
The names of the substantial shareholders listed in the holding company’s register are:
Shareholder:
Number of Shares
% of Issued Capital
Birkdale Holdings (QLD) Pty Ltd
Excalib-Air Pty Ltd
Challenger Limited
LHC Capital Partners Pty Ltd
Commonwealth Bank of Australia
Paradice Investment Management Pty Ltd
Voting Rights
17,039,475
16,060,000
15,213,222
10,792,523
10,182,782
8,826,251
12.47
11.97
11.13
7.94
7.49
6.58
ISA Group has ordinary shares on issue. The voting rights attached to each ordinary share is one vote
per share when a poll is called, otherwise each member present at a meeting or by proxy has one vote
on a show of hands.
ISA Group has premium priced options which are not listed on the ASX. See Note 24 for further
details. Premium priced options do not give a holder the right to vote at any meeting of ISA Group.
20 Largest Shareholders – Ordinary Shares
Name
Number of
% Held of Issued
Ordinary Fully
Ordinary Capital
NATIONAL NOMINEES LIMITED
BIRKDALE HOLDINGS (QLD) PTY LTD
EXCALIB-AIR PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
CITICORP NOMINEES PTY LIMITED
UBS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
QUAD INVESTMENTS PTY LTD
PROJECT GRAVITY PTY LTD
LYNDCOTE SUPER PTY LTD
CITICORP NOMINEES PTY LIMITED
IFLY AUSTRALIA PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
AUSTRALIAN INDOOR SKYDIVING PTY LTD
SABRE ONE INVESTMENTS PTY LTD
DRILL INVESTMENTS PTY LTD
JACK SUPER PTY LTD
NULIS NOMINEES (AUSTRALIA) LIMITED
MR ALISTAIR DAVID STRONG
Paid Shares
Held
17,544,994
17,039,475
16,060,000
14,719,148
12,751,718
8,646,414
5,927,540
3,200,376
2,916,667
2,627,307
2,521,667
2,521,601
2,500,000
2,300,711
2,187,833
1,001,277
1,000,000
889,474
757,000
600,000
117,713,202
12.835
12.465
11.749
10.768
9.328
6.325
4.336
2.341
2.134
1.922
1.845
1.845
1.829
1.683
1.601
0.732
0.732
0.651
0.554
0.439
86.113
70
Indoor Skydive Australia Group Limited
2017 Annual Report
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Indoor Skydive Australia Group Limited
2017 Annual Report
71
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
ADDITIONAL INFORMATION
Additional Information
20 Largest Shareholders – Ordinary Shares
Name
NATIONAL NOMINEES LIMITED
BIRKDALE HOLDINGS (QLD) PTY LTD
EXCALIB-AIR PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
CITICORP NOMINEES PTY LIMITED
UBS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
QUAD INVESTMENTS PTY LTD
PROJECT GRAVITY PTY LTD
LYNDCOTE SUPER PTY LTD
CITICORP NOMINEES PTY LIMITED
IFLY AUSTRALIA PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
AUSTRALIAN INDOOR SKYDIVING PTY LTD
SABRE ONE INVESTMENTS PTY LTD
DRILL INVESTMENTS PTY LTD
JACK SUPER PTY LTD
NULIS NOMINEES (AUSTRALIA) LIMITED
MR ALISTAIR DAVID STRONG
Number of
Ordinary Fully
Paid Shares
Held
17,544,994
17,039,475
16,060,000
14,719,148
12,751,718
8,646,414
5,927,540
3,200,376
2,916,667
2,627,307
2,521,667
2,521,601
2,500,000
2,300,711
2,187,833
1,001,277
1,000,000
889,474
757,000
600,000
117,713,202
% Held of Issued
Ordinary Capital
12.835
12.465
11.749
10.768
9.328
6.325
4.336
2.341
2.134
1.922
1.845
1.845
1.829
1.683
1.601
0.732
0.732
0.651
0.554
0.439
86.113
71
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Indoor Skydive Australia Group Limited
2017 Annual Report
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
ADDITIONAL INFORMATION
Additional Information
2.
3.
4.
5.
6.
The name of the company secretary is Fiona Yiend.
The address of the principal registered office in Australia is Level 2, 201 Miller Street North Sydney
NSW 2060 Telephone 02 9325 5900.
The Register of Securities is held at Grosvenor Place, Level 12, 225 George Street, Sydney NSW
2000.
Stock Exchange Listing
Quotation has been granted for all 136,696,514 ordinary shares of ISA Group on all Member
Exchanges of the Australian Securities Exchange Limited.
Unquoted Securities
ISA Group has 1,950,000 incentive options on issue to eligible employees and has resolved to issue
2,200,000 incentive options to the Company’s executive directors subject to shareholder approval.
The incentive options are subject to vesting conditions, have an exercise price of $0.35 and
expire on 23 August 2021.
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Indoor Skydive Australia Group Limited
2017 Annual Report
72
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
Additional Information
2.
3.
4.
5.
6.
2000.
Stock Exchange Listing
Unquoted Securities
The name of the company secretary is Fiona Yiend.
The address of the principal registered office in Australia is Level 2, 201 Miller Street North Sydney
NSW 2060 Telephone 02 9325 5900.
The Register of Securities is held at Grosvenor Place, Level 12, 225 George Street, Sydney NSW
Quotation has been granted for all 136,696,514 ordinary shares of ISA Group on all Member
Exchanges of the Australian Securities Exchange Limited.
ISA Group has 1,950,000 incentive options on issue to eligible employees and has resolved to issue
2,200,000 incentive options to the Company’s executive directors subject to shareholder approval.
The incentive options are subject to vesting conditions, have an exercise price of $0.35 and
expire on 23 August 2021.
CORPORATE DIRECTORY
Corporate Directory
Directors
Ken GILLESPIE
Wayne JONES
Danny HOGAN
Steve BAXTER
Company Secretary
Fiona YIEND
Registered Office
Principle Place of Business
Share Register
Auditor
Indoor Skydive Australia Group Ltd
Level 2
201 Miller Street
North Sydney NSW 2060
Indoor Skydive Australia Group Ltd
Level 2
201 Miller Street
North Sydney NSW 2060
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Bankers
Westpac Banking Corporation
Stock exchange listing code:
IDZ
Website
www.indoorskydive.com.au
Indoor Skydive Australia Group Limited
2017 Annual Report
72
73
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Indoor Skydive Australia Group Limited
2017 Annual Report
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT
NOTES
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT 75
LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT INDOOR SKYDIVE AUSTRALIA GROUP LIMITED
ABN: 39 154 103 607
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LogosBRAND IDENTITY | IDENTITY GUIDELINESJob No: ISA01Date: 3 / 07 / 2012Page: 2 ISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPISAGROUPINDOOR SKYDIVE AUSTRALIA GROUPINDOOR SKYDIVE AUSTRALIA GROUP LIMITED2017 ANNUAL REPORT