Pointerra Limited
ABN 39 078 388 155
Annual Report
For the year ended 30 June 2019
Corporate Information
Pointerra Limited
ABN 39 078 388 155
Directors
Neville Bassett, Non-Executive Chairman
Paul Farrell, Non-Executive Director
Ian Olson, Managing Director
Company Secretary
Neville Bassett
Registered Office
Level 4, 216 St Georges Terrace
Perth, WA 6000
Telephone:
Facsimile:
+61 8 6268 2622
+61 8 6268 2699
Principal Office
Level 2, 27 Railway Road
Subiaco, WA 6008
Internet
Website:
Email:
www.pointerra.com
info@pointerra.com
Auditor
Bentleys Audit & Corporate (WA) Pty Ltd
Level 3, 216 St Georges Terrace
Perth, WA 6000
Share Registry
Advanced Share Registry Services Ltd
110 Stirling Highway
Nedlands, WA 6009
Email:
Telephone:
Facsimile:
admin@advancedshare.com.au
+61 8 9389 8033
+61 8 9262 3723
Solicitors
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth, WA 6000
Telephone:
Facsimile:
+61 8 9321 4000
+61 8 9262 3723
Stock Exchange Listing
Pointerra Limited shares are listed on the Australian Securities Exchange (ASX Code: 3DP)
Pointerra Limited
ABN 39 078 388 155
Annual Report 2019
Table of Contents
Corporate Information ......................................................................................................................... 1
Pointerra Limited ................................................................................................................................. 1
Auditor’s Independence Declaration ................................................................................................. 10
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................. 11
Consolidated Statement of Financial Position .................................................................................. 12
Consolidated Statement of Changes in Equity ................................................................................. 13
Consolidated Statement of Cash Flows ............................................................................................ 14
Independent Auditor’s Report ........................................................................................................... 34
Corporate Governance Statement .................................................................................................... 39
Additional Information for Shareholders ............................................................................................ 40
Directors’ Report
The directors of Pointerra Limited (“the Company”) present their report, together with the financial statements of the Company, for
the financial year ended 30 June 2019.
The names of the directors in office at any time during or since the end of the year are:
NAME OF PERSON
POSITION
DATE APPOINTED
DATE RESIGNED
Graham Griffiths
Non-executive Chairman
30 June 2016
7 February 2019*
Ian Olson
Paul Farrell
Managing Director
30 June 2016
Non-executive Director
9 November 2018
Neville Bassett
Non-executive Director
30 June 2016
Rob Newman
Non-executive Director
30 June 2016
9 November 2018
*The Directors note with immense sadness the sudden passing of Graham Griffiths and extend our deepest sympathy to Graham’s
family, friends and business associates.
Information on directors
Mr Paul Farrell – Non-Executive Chairman
B.Sc, GDip Mgt, MBA
Paul is the Managing Director of NGIS Australia, which was established in 1993 and has grown from being a boutique map maker
and digitising house to an integrated provider of mapping and location-based technology solutions to large enterprise nationally
and internationally, working with globally recognised technology companies such as Google.
Paul has tertiary qualifications in both Science and Management, completing an MBA in 2005. Outside of NGIS, Paul is involved
in many boards including the WA Regional Development Trust and Frontier SI. He is a past National Chairman of SIBA (Spatial
Industry Business Association) and Vice-Chair of the AIIA (Australian Information Industry Association) in WA.
Mr Ian Olson – Managing Director
CA, B.Com, MAICD
Mr Olson is a Chartered Accountant and professional public company director with a 25-year career in finance and the capital
markets and has helped numerous high-growth companies move from private to public status via the ASX. Mr Olson started his
career with Ernst & Young and has worked in London and New York with global investment banks. He is also the Non-Executive
Chairman of Gage Roads Brewing Co Ltd.
In addition to being one of the co-founders of Pointerra in 2015, Mr Olson has more than 10 years’ experience in the geospatial
sector, having previously owned and operated a surveying business that specialised in the generation of 3D data for customers
in the mining, oil & gas and AEC sectors.
Mr Neville Bassett – Non-Executive Chairman
AM, FCA
Mr Bassett is a Chartered Accountant operating his own corporate consulting business, specialising in the area of corporate,
financial and management advisory services. He consults to a number of publicly listed companies and private company groups
in a diversity of industry sectors, and is a director or company secretary of a number of public and private companies. Mr Bassett
has been involved with numerous public company listings and capital raisings. His involvement in the corporate arena has also
included mergers and acquisitions, and includes significant knowledge and exposure to the Australian financial markets. He has
a wealth of experience in matters pertaining to the Corporations Act, ASX listing requirements, corporate taxation and finance.
Pointerra Limited ABN 39 078 388 155
1
Directors’ Report
Mr Bassett is the principal director of Westar Capital Limited, the holder of an Australian Financial Services License and is a Fellow
of Chartered Accountants Australia and New Zealand. He was previously State Chairman and a former National Director of a
major not-for-profit organisation.
Directorships of other listed companies
Directorships of other listed companies held by directors during the 3 years immediately before the end of the financial year are
as follows:
Name
Company
Period of directorship
Mr Graham Griffiths
Botanix Pharmaceuticals Ltd
Mr Ian Olson
(Non-executive Chairman)
Gage Roads Brewing Co Limited
(Non-executive Chairman)
1 July 2016 – 7 February 2019
12 November 2007 – current
Threat Protect Australia Limited
23 October 2015 – 29 November 2016
Dr Robert Newman
Nearmap Ltd
17 February 2011 – current
Mr Neville Bassett
Longford Resources Ltd
(Non-executive Chairman)
22 March 2004 – 31 October 2017
Meteoric Resources NL
29 November 2012 – 4 December 2017
Vector Resources Ltd
Metalsearch Ltd (Formerly
Laconia Resources Ltd)
Quantify Technology
Holdings Ltd
The Gruden Group Ltd
Auris Minerals Ltd
PharmAust Ltd
Yowie Group Ltd
22 April 2010 – 4 January 2018
8 May 2015 – current
5 February 2016 – 1 March 2017
20 August 2014 – 13 May 2016
20 April 2018 - current
2 October 2018 - current
5 August 2019 - current
Directors’ interests in shares and options
At the date of this report, the direct and indirect interests of the Directors in the ordinary shares and options of the Company were:
Paul Farrell
Ian Olson
Neville Bassett
Directors’ meetings
Ordinary shares
Options
-
37,514,889
1,732,266
-
-
-
Attendances by each Director at directors’ meetings during the year were as follows:
Directors Meetings
Number Eligible to
Attend
Number Attended
Robert Newman
Paul Farrell
Ian Olson
Graham Griffiths
Neville Bassett
4
6
11
9
11
3
6
11
9
11
Directors’ meetings held during the year include meetings held via circular resolution.
Company Secretary
Mr Neville Bassett – appointed 30 June 2016
For further information about Mr Bassett, please refer to the information on directors in this Directors’ Report.
Pointerra Limited ABN 39 078 388 155
2
Directors’ Report
Principal Activities
Pointerra is a Perth, Western Australia-based company with operations in the US, focused on commercialisation of its proprietary
3D data technology solution to support digital asset management activities across a range of sectors, including civil infrastructure;
mining, oil & gas; architecture, engineering & construction; and government agencies at all levels. Pointerra’s cloud-based solution
is based on compression, visualisation and analytics algorithms, which index massive 3D datasets, for which Pointerra has
Provisional Patent Applications. The processed and hosted 3D data can be dynamically searched, accessed, visualised, analysed
and shared by anyone, anywhere, on any device and at any time.
Review of Operations
Sales & Platform
During the year the Company generated growth in sales and cash receipts across all key customer sectors, increasing the number
of paying customers and commencing reporting cumulative Annual Contract Value (ACV) of Pointerra’s DaaS and AaaS
customers. The launch of Pointerra’s AaaS solution during calendar 2019 has broadened the appeal of the Company’s platform,
attracting new customers and prospects as well as growing sales from existing DaaS customers in Australia and the US.
Corporate
In November 2018 the Company accepted the resignation of founding Chairman and Non-Executive Director, Dr Rob Newman,
who due to external commitments was unable to devote appropriate time to Pointerra. The Board resolved to appoint Mr Paul
Farrell to the role of Non-Executive Director. Paul is the Managing Director of NGIS Australia, which was established in 1993 and
has grown from being a boutique map maker and digitising house to an integrated provider of mapping and location-based
technology solutions to large enterprise nationally and internationally, working with globally recognised technology companies
such as Google.
In November 2018 The Company undertook a placement of 27,380,953 shares in the Company at a price of $0.042, raising $1.15
million before costs. The shares were placed to institutional and sophisticated investors that qualify under section 708 of the
Corporations Act. The capital raising, which was managed by Pointerra’s corporate advisor (Canary Capital), was over- subscribed
and attracted interest from both existing shareholders and new investors. The placement represented less than 5% of the
Company’s fully diluted capital structure.
In February 2019 the Company reported with immense sadness the untimely passing of Non-Executive Chairman, mentor and
friend Graham Griffiths. Graham’s contribution to Pointerra was significant and he leveraged a lifetime of experience in technology
sales to help shape his innate understanding of how to build a successful SaaS business on a global scale. His legacy to Pointerra
is baked into our business model, our growth strategy and the “Pointerra way”, which we will continue to execute in his honour.
Graham’s contribution to the Australian early-stage technology sector was enormous and many successful businesses owe their
start to Graham’s understated, calm and experienced hand. The Board, management team and shareholders of Pointerra
extended their deepest sympathy to Graham’s family, friends and business associates.
Financial review
During the year the Company grew cash receipts from customers to $0.85 million from $0.19 million in FY18 and reported ACV
subscription growth from a starting point of $0.94 million in January to $1.85 million by July. Operating cash outlfows were in line
with management expectations during the year. During July and August the Company completed and lodged an R&D refund
claim of $0.47 million in respect of the FY19 year and the refund was received in August 2019. The Company continues to operate
a lean, agile, low-cost operating model as it scales customer sales and will continue to add sales resources in line with growth in
the sales pipeline while maintaining a strong focus on achieving cashflow positive operations in the near-term.
Operating Results
The loss for the financial year after providing for income tax was $1,907,036 (2018: $1,660,843).
Financial Position
As at 30 June 2019, the Company had cash of $947,336 (2018: $1,385,834) and net assets of $735,971 (2018: $1,545,552).
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
Future Developments
The Company will continue to commercialise its technology via its DaaS and AaaS recurring subscription-based revenue model.
Pointerra’s ultimate vision is to create an online marketplace for the massive amounts of 3D data captured by the private and
public sectors globally.
Dividends Paid or Recommended
No dividends were paid or declared since the start of the financial year.
Environmental Issues
The Company has a policy of at least complying, but in most cases exceeding, its environmental performance obligations. No
environmental breaches have been notified by any government agency during the year ended 30 June 2019. The Board believes
that the Company has adequate systems in place for the management of its environmental regulations.
Shares under Option
At the date of this report, the unissued ordinary shares of Pointerra Limited under option are as follows:
Number under option
4,000,000 unlisted options
4,000,000 unlisted options
4,000,000 unlisted options
5,000,000 unlisted options
Average
Exercise price
Date of expiry
$0.05
$0.06
$0.09
$0.05
25 Sep 20
19 Mar 21
19 Mar 21
2 Aug 20
Refer to Note 18 for further information on terms of options.
Indemnifying officers or auditor
During or since the end of the financial year the Company has given an indemnity or entered into an agreement to indemnify, or
paid or agreed to pay insurance premiums as follows:
•
The Company has entered into agreements to indemnify all Directors and provide access to documents, against any liability
arising from a claim brought by a third party against the Company. The agreement provides for the company to pay all
damages and costs which may be awarded against the Directors.
•
No indemnity has been paid to auditors.
Remuneration Report (audited)
This report details the nature and amount of the remuneration for each member of key management personnel of Pointerra Limited
for the year ended 30 June 2019.
For the purposes of this report, Key Management Personnel of the company are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly. The Company did
not have any other key management personnel other than its Directors.
For the purposes of this Remuneration Report, the term ‘Executive’ encompasses all Directors and the Company Secretary of the
company.
Remuneration Philosophy
The performance of the company depends upon the quality of its Directors and Executives. To prosper, the company must attract,
motivate and retain highly skilled Directors and Executives.
To this end, the company embodies the following principles in its remuneration framework:
‘The Board as a whole is responsible for considering remuneration policies and packages applicable both to board members and
senior executives of the company. The Board remuneration policy is to ensure the remuneration package, which is not linked to
the performance of the company, properly reflects the person’s duties and responsibilities and that remuneration is competitive in
attracting, retaining and motivating people of the highest quality.’
Remuneration Structure
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
In accordance with best practice corporate governance, the structure of non-executive director and senior manager remuneration
is separate and distinct. The company does not engage remuneration consultants.
Non-executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the company with the ability to attract and retain directors
of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined
from time to time by a general meeting. An amount not exceeding the amount determined is then divided between the Directors
as agreed. The current aggregate remuneration pool is $500,000 per year.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst
Directors is reviewed annually. The Board may consider advice from external consultants as well as the fees paid to non-executive
Directors of comparable companies when undertaking the annual review process. Each director receives a fee for being a Director
of the company.
Non-executive Directors are encouraged by the Board to hold shares in the company. It is considered good governance for
directors to have a stake in the Company on whose board he or she sits.
Voting on the Remuneration Report
At the Company’s 2018 Annual General Meeting a resolution to adopt the 2018 Remuneration Report was put to vote and passed
unanimously on a show of hands, with the proxy received also indicating majority (99%) support in favour of adopting the
Remuneration Report.
Managing Director and Executive Remuneration Structure
Based on the current stage in the company’s development, its size, structure and strategies, the Board considers that the key
performance indicator in assessing the performance of Executives and their contribution towards increasing shareholder value is
commercially based, inclusive of share price performance over the review period.
Individual and company operating targets associated with traditional financial and non-financial measures are difficult to set given
the small number of Executives and their need to be flexible and multi-tasked, as the company responds to a continually changing
business environment. Consequently, a formal process of defining Key Performance Indicators (KPI’s) and setting targets against
the KPI’s has not been adopted at the present time.
The proportion of fixed remuneration and variable remuneration is established for each Executive by the Board.
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration, which is both appropriate to the position and
is competitive in the market. Fixed remuneration is reviewed annually by the Board; having regard to the Company and individual
performance, relevant comparable remuneration in the industry sector and, where appropriate, external advice. Executives receive
their fixed remuneration in cash.
Variable Remuneration – Short-Term Incentive (STI)
The objective of the STI is to link the achievement of corporate and operational objectives over the year with the remuneration
received by the Executives charged with achieving that increase. The total potential STI available is set at a level so as to provide
sufficient incentive to the Executives to achieve the performance goals and such that the cost to the company is reasonable in the
circumstances.
Annual STI payments granted to each Executive depend on their performance over the preceding year and are based on
recommendations from the Managing Director and/or the Chairman following collaboration with the Board. Typically included are
measures such as contribution to strategic initiatives, risk management and leadership/team contribution.
The aggregate of annual STI payments available for Executives across the company is subject to the approval of the Board.
Payments are usually delivered as a cash bonus. There were no STI payments made during the financial year.
Variable Remuneration – Long-Term Incentive (LTI)
The objective of the LTI plan is to reward Executives in a manner, which aligns the element of remuneration with the creation of
shareholder wealth. As such LTI’s are made to Executives who are able to influence the generation of shareholder wealth and
thus have an impact on the company’s performance.
The level of LTI granted is, in turn, dependent on a number of factors including, the seniority of the Executive and the
responsibilities the Executive assumes in the company.
LTI grants to Executives are delivered in the form of options. These options are issued at an exercise price determined by the
Board at the time of issue.
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the individual receives a promotion
and, as such, is not subsequently affected by the individual’s performance over time.
However, under certain circumstances, including breach of employment conditions, the Directors may cause the options to expire
prior to their vesting date. In addition, individual performance is more commonly rewarded over time by STIs.
No LTI options were issued during the financial year.
Company performance, shareholder wealth and Director and executive remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and executives. Options
issued to Directors have an exercise price higher than the current share price of the Company.
The table below shows the performance of the Company since inception.
2019
2018
Net profit / (loss)
($1,907,036)
($1,660,843)
Revenue
Earnings per share
Share price at year end
443,504
312,068
(0.37)
$0.046
(0.41)
$0.043
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
Employment Details of Members of Key Management Personnel
The following table provides employment details of persons who were, during the financial year, members of key management
personnel of the Company. The table also illustrates the proportion of remuneration that was performance and non-performance
based and the proportion of remuneration received in the form of options.
Position
Contract details (duration
Proportions of elements of remuneration
Proportions of elements of
and termination)
related to performance
remuneration not related to
performance
Non-salary
cash-based
Shares/
Options/
Fixed Salary/
incentives
Units
Rights
Fees
%
%
%
%
Total
%
Key Management
Personnel
Ian Olson
Managing Director Ongoing commencing 30 June
-
2016. 6 months’ notice to
terminate.
Robert Newman
Director
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
Graham Griffiths
Director
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
Neville Bassett
Director
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
Paul Farrell
Director
Service agreement in place
-
with termination upon
resignation, non-election at
shareholders meeting or
prohibited by law.
-
-
-
-
-
-
-
-
-
-
100
100
100
100
100
100
100
100
100
100
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
Details of remuneration for the year ended 30 June 2019
Name
Short-term benefits
Robert Newman
Paul Farrell
Ian Olson
Graham Griffiths
Neville Bassett
Cash
salary & fees
$
12,000
24,000
240,000
30,000
36,000
342,000
Non-cash
benefit
$
-
-
-
-
-
-
Post-
employment
benefits
Superannuation
$
-
-
22,800
-
-
22,800
Details of remuneration for the year ended 30 June 2018
Name
Short-term benefits
Robert Newman
Ian Olson
Graham Griffiths
Neville Bassett
Cash
salary & fees
$
36,000
240,000
45,000
36,000
357,000
Non-cash
benefit
$
-
-
-
-
-
Post-
employment
benefits
Superannuation
$
-
22,800
-
-
22,800
Share-based
payments
Total
Performance
related
Options
$
-
-
-
-
-
-
$
12,000
24,000
262,800
30,000
36,000
364,800
%
-
-
-
-
-
-
Share-based
payments
Total
Performance
related
Options
$
-
-
-
-
-
$
36,000
262,800
45,000
36,000
379,800
%
-
-
-
-
-
Ordinary Shares Held by Key Management Personnel – 30 June 2019
Key Management
Person
Robert Newman
Paul Farrell
Ian Olson
Graham Griffiths
Neville Bassett
Balance
at beginning of
year
13,160,632
Granted as
remuneration
during year
-
Issued on
exercise of
options
during year
-
-
37,514,889
3,816,666
1,732,266
56,224,453
-
-
-
-
-
-
-
-
-
-
Ordinary Shares Held by Key Management Personnel – 30 June 2018
Key Management
Person
Robert Newman
Ian Olson
Graham Griffiths
Neville Bassett
Balance
at beginning of
year
6,839,724
Granted as
remuneration
during year
-
18,561,006
3,816,666
1,732,266
30,949,662
-
-
-
-
Issued on
exercise of
options
during year
-
-
-
-
-
Other changes
during the year
-
-
-
-
-
-
Balance
at end of year
13,160,632
-
37,514,889
3,816,666
1,732,266
56,224,453
Other changes
during the year
6,320,908(1)
18,953,883(2)
-
-
Balance
at end of year
13,160,632
37,514,889
3,816,666
1,732,266
25,274,791
56,224,453
(1)
On 21 March 2018, 6,320,908 Class B and Class C Performance shares were converted into Ordinary Shares, refer to Note 16
for further information.
(2)
On 21 March 2018, 18,953,883 Class B and Class C Performance shares were converted into Ordinary Shares, refer to Note 16
for further information.
Pointerra Limited ABN 39 078 388 155
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Directors’ Report
Options Held by Key Management Personnel – 30 June 2019
Key Management
Person
Robert Newman
Paul Farrell
Ian Olson
Graham Griffiths
Neville Bassett
Balance
at beginning of
year
5,000,000
Granted as
remuneration
during year
-
-
30,000,000
20,000,000
5,000,000
60,000,000
-
-
-
-
-
Issued on
exercise of
options during
year
-
-
-
-
-
-
Other changes
during the year
(5,000,000)
Balance
at end of year
-
Vested and
exercisable
at end of year
-
-
(30,000,000)
(20,000,000)
(5,000,000)
(60,000,000)
-
-
-
-
-
-
-
-
-
-
Options Held by Key Management Personnel – 30 June 2018
Key Management
Person
Robert Newman
Ian Olson
Graham Griffiths
Neville Bassett
Balance
at beginning of
year
5,000,000
Granted as
remuneration
during year
-
30,000,000
20,000,000
5,000,000
60,000,000
-
-
-
-
Issued on
exercise of
options during
year
-
-
-
-
-
Other changes
during the year
-
Balance
at end of year
5,000,000
Vested and
exercisable
at end of year
5,000,000
-
-
-
-
30,000,000
30,000,000
20,000,000
20,000,000
5,000,000
5,000,000
60,000,000
60,000,000
Related party transactions
No related party transactions were entered into during the year.
Subsequent events
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect
the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
Non-audit services
No non-audit services were provided by the auditor during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 has been received and
can be found directly following the directors’ report.
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors made pursuant to s.298(2) of the Corporations Act of 2001.
Ian Olson
Director
27 September 2019
Pointerra Limited ABN 39 078 388 155
9
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit Partner for the audit of the financial statements of Pointerra Limited for the
financial year ended 30 June 2019, I declare that to the best of my knowledge and belief,
there have been no contraventions of:
−
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
− any applicable code of professional conduct in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Partner
Dated at Perth this 27th day of September 2019
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2019
Revenue
Other income
Cost of Services
Administrative expenses
Advertising and marketing expenses
Compliance and regulatory expenses
Research and development expenses
Share based payment expenses
Other expenses
Loss before income tax
Income tax expense
Note
6
7
8
18
9
2019
$
2018
$
443,504
312,068
492,018
(29,000)
527,980
-
(1,055,704)
(826,850)
(22,143)
(23,002)
(183,732)
(159,784)
(1,087,207)
(1,098,903)
(13,601)
(141,649)
(451,171)
(250,703)
(1,907,036)
(1,660,843)
-
-
Loss after income tax for the year
(1,907,036)
(1,660,843)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations
(9,371)
(1,942)
Total comprehensive loss for the year attributable to members of the
Company
(1,916,407)
(1,662,785)
Earnings per share
Cents
Cents
Basic and diluted loss per share
15
(0.37)
(0.41)
The accompanying notes form part of these consolidated financial statements.
Pointerra Limited ABN 39 078 388 155
11
Consolidated Statement of Financial Position
as at 30 June 2019
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Deferred revenue
Provisions
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2019
$
2018
$
10
11
12
13
14
947,336
1,385,834
535,560
614,255
80,649
23,818
1,563,545
2,023,907
58,735
60,431
60,706
53,689
119,166
114,395
1,682,711
2,138,302
500,112
282,359
478,055
164,269
114,695
946,740
592,750
946,740
592,750
735,971
1,545,552
16
17
6,821,694
5,728,469
1,552,839
1,548,609
(7,638,562)
(5,731,526)
735,971
1,545,552
The accompanying notes form part of these condensed financial statements
Pointerra Limited ABN 39 078 388 155
12
Consolidated Statement of Changes in Equity
for the year ended 30 June 2019
Note
Issued
Capital
$
Option
Reserves
Foreign exchange
reserve
Accumulated
Losses
$
$
$
Total
$
BALANCE AT 1 JULY 2017
5,728,469
1,408,902
Loss for the year
Other comprehensive income
Total comprehensive loss for
the year
Transactions with owners
recorded directly in equity
-
-
-
-
-
-
-
-
(4,070,683)
3,066,688
(1,660,843)
(1,660,843)
(1,942)
-
(1,942)
(1,942)
(1,660,843)
(1,662,785)
Share-based payments
18
-
141,649
-
-
141,649
BALANCE AT 30 June 2018
5,728,469
1,550,551
(1,942)
(5,731,526)
1,545,552
BALANCE AT 1 JULY 2018
5,728,469
1,550,551
(1,942)
(5,731,526)
1,545,552
Loss for the year
Other comprehensive income
Total comprehensive loss for
the year
Transactions with owners
recorded directly in equity
-
-
-
-
-
-
(1,907,036)
(1,907,036)
(9,371)
-
(9,371)
(9,371)
(1,907,036)
(1,916,407)
Share issued
1,150,000
Share issue transaction costs
(56,775)
Share-based payments
18
-
13,601
-
1,150,000
(56,775)
13,601
BALANCE AT 30 June 2019
6,821,694
1,564,152
(11,313)
(7,638,562)
735,971
The accompanying notes form part of these condensed financial statements
Pointerra Limited ABN 39 078 388 155
13
Consolidated Statement of Cash Flows
for the year ended 30 June 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest and other costs of finance paid
Interest received
Government grants and tax incentives
Note
2019
$
2018
$
851,860
188,043
(2,803,353)
(2,102,413)
(2,713)
(924)
19,083
41,077
486,903
496,376
Net Cash Used In Operating Activities
22(b)
(1,448,220)
(1,377,841)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire property, plant and equipment
Payments to acquire intangible and other assets
Net Cash Used In Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of shares
Payment of share issue and recapitalisation related costs
Net Cash Provided By Financing Activities
Net increase/(decrease) in cash held
Effect of movement in exchange rates on cash held
Cash and Cash Equivalents at beginning of the period
(29,300)
(23,129)
(30,812)
(31,201)
(60,112)
(54,330)
1,150,000
(62,454)
1,087,546
-
-
-
(420,786)
(1,432,171)
(17,712)
-
1,385,834
2,818,005
Cash and Cash Equivalents at end of the period
22(a)
947,336
1,385,834
The accompanying notes form part of these condensed financial statements
Pointerra Limited ABN 39 078 388 155
14
Notes to the Financial Statements
for the year ended 30 June 2019
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Pointerra Limited is a for-profit company limited by shares incorporated in Australia whose shares are publicly traded on the ASX.
The registered office is:
C/- Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000
The principal place of business is:
Level 2, 27 Railway Road, Subiaco WA 6008
The financial report for the year ended 30 June 2019 was authorised for issue in accordance with a resolution of the Directors on
27 September 2019.
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. The consolidated financial statements also comply with International Financial Reporting Standards
(IFRS) adopted by the International Accounting Standards Board (IASB).
The consolidated financial statements comprise the financial statements of Pointerra Limited and its subsidiaries at the reporting
date (the “Group”).
The consolidated financial statements have been prepared on an accruals basis and are measured at historical cost, except for
assets and liabilities acquired in business combinations, which are initially measured at fair value. All amounts are presented in
Australian dollars.
Accounting policies have been consistently applied, unless otherwise stated.
Going Concern
The consolidated financial statements have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and settlements of liabilities in the ordinary course of business.
As at 30 June 2019, the Group had cash and cash equivalents of $947,336 (2018: $1,385,834) and had a working capital
surplus of $616,805 (2018: $1,431,157). The Group incurred an operating loss of $1,907,036 for the year ended 30 June 2019
(2018: $1,660,843) and net cash outflows from operating activities amounting to $1,448,220 (2018: $1,377,841). Subsequent to
year end, the Group received its R&D refund of $472,935.
The Directors have prepared a cash flow forecast which indicates that the Group will have sufficient cash flows to meet all
commitments and working capital requirements for the 12 months period from the date of signing this financial report. The
Directors believe it is appropriate to prepare these accounts on a going concern basis because of the following factors:
•
•
the Directors have an appropriate plan to grow its revenue and generate positive cash flows from operations; and
the Group has the ability to curtail discretionary expenditure as and when it is required in order to manage its cash
flows.
Based on the cashflow forecast and other factors referred to above, the Directors are satisfied that the going concern basis of
preparation is appropriate.
Acquisition of Pointerra Pty Ltd
On 30 June 2016, Pointerra Limited (formerly Soil Sub Technologies Limited) acquired 100% of the ordinary share capital of
Pointerra Pty Ltd. In accordance with reverse asset acquisition accounting principles under AASB 3 Business Combinations,
Pointerra Pty Ltd is the deemed acquirer of Soil Sub Technologies Limited.
Basis of consolidation
Subsidiaries are fully consolidated from the date the Group obtains control until such time as control ceases. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent
accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses arising from intra-group transactions are eliminated in full.
Pointerra Limited ABN 39 078 388 155
15
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method involves
recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-
controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition
date fair values. The difference between the above items and the fair value of the consideration (including the fair value of any
pre-existing investment in the acquiree) is goodwill or a discount on acquisition.
Investments in subsidiaries are accounted for at cost in the separate financial statements of Pointerra Limited.
Income tax
The income tax expense / (benefit) for the year comprises current income tax expense / (income) and deferred tax expense /
(income).
Current income tax expense charged to profit or loss is the tax payable on taxable income calculated using applicable income
tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities / (assets) are therefore 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 and
unused tax losses.
Current and deferred income tax expense / (benefit) is charged or credited directly to equity instead of profit or loss when the tax
relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully
expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an
asset or liability, excluding a business combination, 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, based on tax rates enacted or substantively enacted at reporting date. Their measurement also
reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred
tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it
is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are
offset where a legally enforceable right of set-off exists, 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.
Tax consolidation legislation
Pointerra Limited and its wholly-owned Australian subsidiary have not implemented tax consolidation legislation.
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 the profit and 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.
The carrying amount of plant and equipment is reviewed annually by the 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. The expected net cash flows have been discounted to
their present values in determining recoverable amounts.
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 Company and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are
incurred.
Pointerra Limited ABN 39 078 388 155
16
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Intangibles
Other intangible assets, including customer relationships, patents and trademarks, that are acquired by the Group and have
finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit
or loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line
method over their estimated useful lives, and is generally recognised in profit or loss. Goodwill is not amortised.
The estimated useful lives for current and comparative periods are as follows:
– patents and trademarks:
5–20 years
Financial Instruments
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to
the contractual provisions of the instrument.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair
value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are
expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.
Classification and subsequent measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants. The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the assets or liability, assuming the market participants acts in their economic best interests.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial instruments.
(i)
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to mature within 12
months after the end of the reporting period. (All other loans and receivables are classified as non-current assets.)
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains
or losses are recognised in profit and loss through the amortisation process and when the financial liability is
derecognised.
Derivative instruments
The Group does not trade or hold derivatives.
Financial guarantees
The Group has no material financial guarantees.
Impairment of assets
At the end of each reporting period, the Company 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 including dividends received from
subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. 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 value. Any excess of the asset’s carrying value over its
recoverable amount is expensed to the statement of comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within twelve
months after the end of the period in which the employees render the related service are recognised in respect of employees’
services up to the end of the reporting date and are measured at the amounts expected to be paid when the liabilities are
settled. The liability for annual leave is recognised in the provision for employee benefits. No liabilities are recognised for non-
accumulating sick leave.
Pointerra Limited ABN 39 078 388 155
17
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The liability for long service leave and other employee entitlements expected to be settled more than 12 months from the
reporting date is recognised and measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures, and years of service. Expected future payments are discounted
using market yields at the reporting date on corporate bonds with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows.
Contributions to defined contribution superannuation funds are recognised as an expense as they become payable.
Foreign currency translation
Functional and presentation currency
The financial report is presented in Australian dollars, which is the Company’s functional currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at
historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair
value are reported at the exchange rate at the date when fair values were determined.
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.
Share-based payment transactions
The Company measures the cost of equity-settled transactions with Directors and employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-
Scholes and Monte Carlo option pricing model.
For equity transactions with consultants and other employees, the fair value reflects the value attributable to services where
applicable. Where there is no quantifiable value of services, the value of options is calculated using the Black-Scholes and
Monte Carlo option pricing model, or the quoted bid price where applicable.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in
current liabilities on the balance sheet.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within thirty days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within twelve months from the reporting date. They are
recognised at their fair value and subsequently measured at amortised cost using the effective interest method.
Issued capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction net of tax of the share proceeds received.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for any bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
•
•
the after-tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and
the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of
all dilutive potential ordinary shares.
Pointerra Limited ABN 39 078 388 155
18
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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. Any consideration deferred is treated as the provision of finance and is discounted at a rate of
interest that is generally accepted in the market for similar arrangements. The difference between the amount initially
recognised and the amount ultimately received is interest revenue.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
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. In these circumstances, the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown
inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Comparatives
When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
Critical accounting estimates and judgments
The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Company.
Key Estimate – Share-based payments
The Company measures the cost of equity-settled transactions with Directors and employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined using the Black-Scholes and Monte
Carlo model using the assumptions disclosed in Note 18. The accounting estimates and assumptions relating to equity settled
share-based payments used would have no impact on assets and liabilities within the next reporting period but may impact
expenses and equity.
Accounting Standards that are mandatorily effective for the current reporting year
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards
Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 January
2018.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to the
Group include:
• AASB 9 Financial Instruments and related amending Standards
• AASB 15 Revenue from Contracts with Customers and related amending Standards
• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based
Payment Transactions
AASB 9 Financial Instruments and related amending Standards
In the current year, the Group has applied AASB 9 Financial Instruments (as amended) and the related consequential
amendments to other Accounting Standards that are effective for an annual period that begins on or after 1 January 2018. The
transition provisions of AASB 9 allow an entity not to restate comparatives however there was no material impact on adoption of
the standard.
Additionally, the Group adopted consequential amendments to AASB 7 Financial Instruments: Disclosures.
In summary AASB 9 introduced new requirements for:
The classification and measurement of financial assets and financial liabilities,
Impairment of financial assets, and
•
•
• General hedge accounting.
Pointerra Limited ABN 39 078 388 155
19
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
AASB 15 Revenue from Contracts with Customers and related amending Standards
In the current year, the Group has applied AASB 15 Revenue from Contracts with Customers (as amended) which is effective
for an annual period that begins on or after 1 January 2018.
This standard provides a single standard for revenue recognition. The core principle of the standard is that an entity must
recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. The standard requires: contracts (either
written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the
transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate
performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach
if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will
be presented separately as an expense rather than adjusted to revenue. For goods, the performance obligation would be
satisfied when the customer obtains control of the goods. For services, the performance obligation is satisfied when the service
has been provided, typically for promises to transfer services to customers. For performance obligations satisfied over time, an
entity must select an appropriate measure of progress to determine how much revenue should be recognised as the
performance obligation is satisfied. Contracts with customers will be presented in an entity's statement of financial position as a
contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the
customer's payment.
The entity has assessed the requirements of AASB 15, and analysed the effect this has on revenue recognition however there
was no material impact on adoption of the standard.
New accounting standards for application in future periods
Accounting standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of
the potential impact of such pronouncements on the Group when adopted in future periods, are discussed below:
AASB 16 Leases
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. Subject to exceptions, a ‘right-
of-use’ asset will be capitalised in the statement of financial position, measured as the present value of the unavoidable future
lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of
low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby
either a ‘right-of-use’ asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding
to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs
incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense
recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest
expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated
with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However EBITDA (Earnings
Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest
expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease
payments will be separated into both a principal (financing activities) and interest (either operating or financing activities)
component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. The Group
does not have any non-cancellable operating lease commitments. Based on a preliminary analysis, the directors anticipate that
the adoption of AASB 16 is unlikely to have a material impact on the consolidated entity’s financial statements.
Pointerra Limited ABN 39 078 388 155
20
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 3. INCOME TAX
–
(a) The components of tax expense comprise:
Current
Deferred
2019
2018
$
-
-
$
-
-
(b) Reconciliation of income tax expense to prima facie tax payable
The prima facie tax on profit from ordinary activities before income tax is
reconciled to income tax expense as follows:
Prima facie tax on operating loss at 27.5% (2018: 27.5%)
(527,012)
(456,732)
Add / (Less):
Tax effect of:
Non-assessable income
Research & Development refundable offset
Other permanent differences
Deferred tax assets not brought to account
Income tax expense/(benefit)
(c) Deferred tax assets
Accrued expenses
Capital raising costs
Tax losses
Total deferred tax assets
Set-off deferred tax liabilities pursuant to set-off provisions
Less deferred tax assets not recognised
Net deferred tax assets
(d) Deferred tax liabilities
Other
Set-off deferred tax liabilities
Net deferred tax liabilities
(e) Tax losses
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
The benefit for tax losses will only be obtained if:
(130,057)
(173,953)
5,265
825,758
-
84,843
364,377
1,929,355
2,378,575
(45,155)
2,333,419
-
(133,898)
(179,091)
42,473
727,248
-
48,855
348,764
548,582
946,201
(27,811)
(918,390)
-
45,155
(45,155)
27,811
(27,811)
-
-
-
-
-
-
i.
ii.
iii.
The company and consolidated entity derive future assessable income of a nature and an amount sufficient to enable the
benefit from the deductions for the losses to be realised;
The company and consolidated entity continue to comply with the conditions for deductibility imposed by law; and
No changes to the tax legislation adversely affect the ability of the company and consolidated entity to realise these benefits.
Pointerra Limited ABN 39 078 388 155
21
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 4. AUDITOR’S REMUNERATION
–
Remuneration of the auditor for:
- Auditing or reviewing the financial report
2019
$
31,658
31,658
2018
$
25,727
25,727
NOTE 5. KEY MANAGEMENT PERSONNEL COMPENSATION AND RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
NOTE 6. OTHER INCOME
Research and development refundable tax offset
Interest Income
NOTE 7. ADMINISTRATIVE EXPENSES
Accounting and audit fees
Consulting and contracting expenses
Director fees
Employee benefits expense
NOTE 8. RESEARCH AND DEVELOPMENT EXPENSES
Employee benefits expense
Other research and development expenses
NOTE 9. OTHER EXPENSES
Depreciation and amortisation expense
Legal fees
Sundry expenses
342,000
22,800
-
357,000
22,800
-
364,800
379,800
472,935
19,083
492,018
486,903
41,077
527,980
(117,164)
(55,000)
(102,000)
(781,540)
(1,055,704)
(93,762)
(109,848)
(117,000)
(506,240)
(826,850)
(890,310)
(196,897)
(785,064)
(313,839)
(1,087,207)
(1,098,903)
(50,613)
(1,622)
(398,936)
(451,171)
(40,934)
(14,380)
(195,389)
(250,703)
Pointerra Limited ABN 39 078 388 155
22
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 10. CASH AND CASH EQUIVALENTS
Cash at bank
Deposits on call
NOTE 11. TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
R&D tax offset receivable
GST receivable
2019
$
897,336
50,000
947,336
2018
$
329,129
1,056,705
1,385,834
43,410
472,935
19,215
535,560
111,570
486,903
15,782
614,255
The average credit period on provision of services is 29 days (2018: 38 days) and no interest is charged on trade receivables.
Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting
period for which the Group has not recognised an allowance for doubtful debts because there has not been a significant
change in credit quality and the amounts are still considered recoverable.
Age of receivables that are past due but not impaired
60-90 days
91-120 days
121+ days
Total
Average age (days)
1,760
880
-
2,640
103
5,845
-
101,200
107,045
100
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is
limited due to the fact that the customer base is unrelated.
NOTE 12. PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Movement in the carrying amounts or plant and equipment during the year:
Balance at beginning of year
Additions
Depreciation expense
Balance at end of year
124,503
(65,768)
58,735
60,706
25,621
(27,592)
58,735
98,882
(38,176)
60,706
60,768
22,057
(22,119)
60,706
Pointerra Limited ABN 39 078 388 155
23
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 13. INTANGIBLE ASSETS
At cost
Accumulated amortisation
Movement in the carrying amounts or intangible assets during the year:
Balance at beginning of year
Additions
Amortisation expense
Balance at end of year
Intangible assets consist of patents and website development costs.
NOTE 14. TRADE AND OTHER PAYABLES
CURRENT
Unsecured Liabilities:
Trade Payables
Sundry creditors and accrued expense
All amounts are expected to be settled on 30-day terms.
NOTE 15. EARNINGS PER SHARE
–
2019
$
109,961
(49,529)
60,431
53,689
29,781
(23,039)
60,431
2018
$
80,179
(26,490)
53,689
46,011
26,493
(18,815)
53,689
193,577
306,535
500,112
228,886
249,169
478,055
Earnings used in calculating basic loss per share
(1,907,036)
(1,660,843)
Movements:
No.
No.
Weighted average number of ordinary shares used as the denominator in calculating
basic loss per share
508,920,437
407,376,404
This calculation does not include instruments that could potentially dilute basic earnings per share in the future, as these
instruments are anti-dilutive, since their inclusion would reduce the loss per share.
Pointerra Limited ABN 39 078 388 155
24
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 16. ISSUED CAPITAL
–
521,223,112 (2018: 493,842,159) fully paid ordinary shares
Less: capital raising fees
Net issued capital
Movements:
As at 1 July 2017
Share issue costs conversion of Class B performance shares
Share issue costs conversion of Class C performance shares
As at 30 June 2018
Capital raising
Share issue costs
As at 30 June 2019
2019
$
2018
$
8,146,700
6,996,700
(1,325,006)
(1,268,231)
6,821,694
5,728,469
$
No.
5,728,469
373,842,157
-
-
60,000,001
60,000,001
5,728,469
493,842,159
1,150,000
27,380,953
(56,775)
-
6,821,694
521,223,112
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of
shares held.
At the shareholders’ meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
Performance shares
The performance shares were issued on 30 June 2016 as part consideration for the acquisition of Pointerra Pty Ltd.
On 28 June 2017 45,000,000 Class A performance shares were converted as a result of achieving the performance milestone
of releasing a commercially saleable product based on a 3D dynamic points database containing at least 100 billion points.
On 21 March 2018 60,000,001 Class B performance shares were converted as a result of achieving the performance
milestone of execution of a commercial technology evaluation agreement with an independent third party for potential use of
Pointerra’s DaaS solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days is
not less than $0.06.
On 21 March 2018 60,000,001 Class C performance shares were converted as a result of achieving the performance
milestone of execution of a commercial license agreement with an independent third party for potential use of Pointerra’s DaaS
solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days is not less than $0.09.
On 11 December 2018 27,380,853 shares were placed to institutional and sophisticated investors at a price of $0.042, raising
$1.15 million before costs.
Pointerra Limited ABN 39 078 388 155
25
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 16. ISSUED CAPITAL (continued)
Options
At the end of the year, the following options over unissued ordinary shares were outstanding:
-
-
-
-
-
4,000,000 options expiring 25 September 2020 at an exercise price of $0.05
4,000,000 options expiring 19 March 2021 at an exercise price of $0.06
4,000,000 options expiring 19 March 2021 at an exercise price of $0.09
2,500,000 options expiring 2 August 2020 at an exercise price of $0.05
2,500,000 options expiring 2 August 2020 at an exercise price of $0.05
Capital Management
The Directors' objectives when managing capital are to ensure that the Company can fund its operations and continue as a
going concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company's activities, the Company does not have ready access to credit facilities, with the primary
source of funding being equity raisings. Therefore, the focus of the Company's capital risk management is the current working
capital position against the requirements of the Company to meet business development and corporate overheads. The
Company's strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to
initiating appropriate capital raisings as required.
NOTE 17. RESERVES
Option Reserves
Balance at beginning of year
Issuance of options
Forfeiture of options
Balance at end of year
Foreign Exchange Reserves
Balance at beginning of year
Foreign currency translation difference
Balance at end of year
2019
$
1,550,551
63,520
(49,919)
2018
$
1,408,902
141,649
-
1,564,152
1,550,551
(1,942)
(9,371)
(11,313)
-
(1,942)
(1,942)
Pointerra Limited ABN 39 078 388 155
26
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 18. SHARE-BASED PAYMENTS
(a) Options issued for corporate advisory services
4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. The options were valued
at $0.0178 and were expensed as share-based payments.
4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. These options met the
performance condition that Pointerra’s share price achieve a 15-day VWAP of $0.06 within 12 months from date of issue, and
were valued at $0.0037 and were expensed as share-based payments.
4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. These options met the
performance condition that Pointerra’s share price achieve a 15-day VWAP of $0.09 within 24 months from date of issue, and
were valued at $0.0014 and were expensed as share-based payments.
(b) Options issued to employees
3,000,000 incentive options with an expiry date of 20 May 2020 and an exercise price of $0.07 were issued on 21 March 2018
pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0358 and during the year end 30 June
2018, $29,937 was expensed as share-based payments. These options were subject to a vesting service condition of
continuous employment. These conditions have since not been satisfied, therefore during the period the previously expensed
share-based payments amount has been reversed.
3,000,000 incentive options with an expiry date of 20 May 2020 and an exercise price of $0.07 were issued on 21 March 2018
pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0358 and during the year end 30 June
2018, $19,982 was expensed as share-based payments. These options were subject to a vesting service condition of
continuous employment. These conditions have since not been satisfied, therefore during the period the previously expensed
share-based payments amount has been reversed.
2,500,000 incentive options with an expiry date of 2 August 2020 and an exercise price of $0.05 were issued on 23 November
2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0189 and were expensed as share-
based payments.
2,500,000 incentive options with an expiry date of 2 August 2020 and an exercise price of $0.05 were issued on 23 November
2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0189 and were expensed as share-
based payments.
(c) Option valuation assumptions
The fair value of the options granted was estimated as at the date of grant using a Black-Scholes option valuation model and a
Monte Carlo simulation valuation model. The following table lists the inputs to the models:
Dividend yield
Expected
Risk-free interest
Expected life
Share price at
(%)
volatility (%)
rate (%)
(years)
grant date
2018
Advisor Options - issued 25 Sep 17
Advisor Options - issued 25 Sep 17
Advisor Options - issued 25 Sep 17
Employee Incentive Scheme
Options - issued 21 Mar 18
Employee Incentive Scheme
Options - issued 21 Mar 18
2019
Employee Incentive Scheme
Options - issued 23 Nov 18
Employee Incentive Scheme
Options - issued 23 Nov 18
Nil
Nil
Nil
Nil
Nil
Nil
Nil
70
69
69
69
69
79
79
1.76
2.18
2.18
2.02
2.05
2.03
2.03
3.0
4.0
4.0
2.2
2.2
1.7
1.7
0.042
0.042
0.042
0.080
0.080
0.048
0.048
Pointerra Limited ABN 39 078 388 155
27
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 18. SHARE-BASED PAYMENTS (continued)
(d) Options outstanding at end of year
The following table illustrates the number and weighted average exercise prices (WAEP) of share options granted as share-
based payments on issue during the year.
Outstanding at 1 July
Granted during the year
Forfeited during the year
Expired during the year
Outstanding at 30 June
2019
Number
125,000,000
5,000,000
(6,000,000)
(107,000,000)
17,000,000
2019 WAEP
$
0.05
0.05
0.07
0.05
0.07
2018
Number
107,000,000
18,000,000
-
-
125,000,000
2018 WAEP
$
0.05
0.07
-
-
0.05
The weighted average remaining contractual life for options outstanding as at 30 June 2019 was 1.5 years (2018: 1.5 years).
(e) Share-based Payments summary
Value
Class
Quantity
Grant date
recognised
Expiry date
during year
Exercise
price
Value
Vesting date
recognised in
future years
2018
Options
Options
Options
Options
Options
2019
Options
Options
Options
Options
4,000,000
4,000,000
4,000,000
3,000,000
3,000,000
25/09/2017
25/09/2017
25/09/2017
21/03/2018
21/03/2018
71,330
14,800
5,600
29,937
19,982
25/09/2020
19/03/2021
19/03/2021
20/05/2020
20/05/2020
(3,000,000)
21/03/2018
(29,937)
(3,000,000)
21/03/2018
(19,982)
-
-
2,500,000
2,500,000
23/11/2018
23/11/2018
41,195
22,325
23/11/2018
23/11/2018
0.05
0.06
0.09
0.07
0.07
-
-
0.05
0.05
NOTE 19. COMMITMENTS
Commitments
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
-
-
-
19/03/2019
19/09/2019
-
-
-
-
2019
$
45,000
136,045
-
-
-
-
-
-
-
-
5,992
24,862
2018
$
43,128
181,045
-
The Group has entered into a rental contract for the lease of office space from a third party.
NOTE 20. CONTINGENT LIABILITIES AND ASSETS
There are no contingent assets or liabilities.
NOTE 21. OPERATING SEGMENTS
The Group has only one reportable segment, being the development and commercialisation of its unique 3D geospatial data
technology.
Pointerra Limited ABN 39 078 388 155
28
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 22. CASH FLOW INFORMATION
(a) Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of Cash
Flows is reconciled to the related items in the balance sheet as follows:
Cash and cash equivalents
(b) Reconciliation of cash flow from operations with operating profit
after income tax
Operating loss after income tax
Non-cash flows in loss from ordinary activities
Depreciation and amortisation
Share-based payments
Foreign exchange
Changes in assets and liabilities
(Increase)/Decrease in trade and other receivables
Increase in trade and other payables
Increase in Deferred revenue
Increase in Provisions
2019
$
2018
$
947,336
947,336
1,385,834
1,385,834
(1,907,036)
(1,660,843)
50,631
13,601
(38,101)
78,695
22,057
282,359
49,574
40,934
141,649
(13,505)
(77,919)
109,045
-
82,798
Net Cash Used In Operating Activities
(1,448,220)
(1,377,841)
(c) Non-cash financing and investing transactions
i.
45,000,000 and 120,000,002 performance shares were converted on 28 June 2017 and 21 March 2018 respectively as a
result of achieving performance milestones. These performance shares were initially issued on 30 June 2016 as
consideration for the acquisition of Pointerra Technologies Pty Ltd. Refer to Note 16 for further information.
NOTE 23. EVENTS AFTER THE BALANCE SHEET DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect
the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
Pointerra Limited ABN 39 078 388 155
29
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 24. FINANCIAL INSTRUMENTS
(a) Financial Risk Management
The Company's financial instruments consist mainly of deposits with banks and accounts payable. The main purpose of
non-derivative financial instruments are to raise finance for company operations. The Company does not have any
derivative instruments at 30 June 2019.
i.
Liquidity Risk
Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient
cash and marketable securities are available to meet the current and future commitments of the Company. Due to the
nature of the Company's activities, the Company does not have ready access to credit facilities, with the primary source of
funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction with the
Company's current and future funding requirements, with a view to initiating appropriate capital raisings as required. Any
surplus funds are invested with major financial institutions.
The financial liabilities of the Company are confined to trade and other payables and current borrowings, as disclosed in
the statement of financial position. All trade and other payables are non-interest bearing and due within 12 months of the
reporting date. Current borrowings are non-interest bearing and have no fixed terms of repayment.
ii. Market Risk
The Board meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury management
strategies in the context of the most recent economic conditions and forecasts.
iii.
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 Company is also exposed to earnings volatility on floating rate instruments. Interest rate risk is not material to the
Company as no debt arrangements have been entered into.
iv. Foreign exchange risk
The company is not exposed to fluctuations in foreign currencies.
v. Credit Risk
Credit risk related to balances with banks and other financial institutions is managed by the Directors in accordance with
approved Board policy. Such policy 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 money
market securities based on Standard & Poor's counterparty credit ratings.
Cash and cash equivalents
- AA- Rated
2019
$
2018
$
947,336
1,385,834
Pointerra Limited ABN 39 078 388 155
30
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 24. FINANCIAL INSTRUMENTS (continued)
(b) Interest Rate Risk
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rate for each class of financial assets and
financial liabilities comprises:
2019
Floating
interest rate
Fixed interest
Fixed interest
maturing in
maturing over
1 year or less
1 to 5 years
Non-interest
bearing
$
$
$
$
Total
$
Financial assets
Cash and cash equivalents
947,336
Trade and other receivables
-
947,336
Weighted average interest rate
0.09%
Financial liabilities
Trade and other payables
Provisions
-
-
-
-
-
-
0%
-
-
-
2018
-
-
-
-
947,336
535,560
535,560
535,560
1,482,896
0%
0%
-
-
-
500,112
164,269
670,381
Floating
interest rate
Fixed interest
Fixed interest
maturing in
maturing over
1 year or less
1 to 5 years
Non-interest
bearing
$
$
$
$
Financial assets
Cash and cash equivalents
329,129
1,056,705
Trade and other receivables
-
-
329,129
1,056,705
Weighted average interest rate
0.09%
2.31%
Financial liabilities
Trade and other payables
Provisions
Sensitivity Analysis
-
-
-
-
-
-
-
-
-
0%
-
-
-
-
638,073
638,073
0%
478,055
114,695
592,750
The sensitivity analysis below has been determined on the exposure to interest rates at the reporting date and on the
basis of the stipulated change taking place at the beginning of the year and held constant throughout the reporting
period. A sensitivity of 0.5% has been selected, as this is considered reasonable considering the current market
conditions (2018: 0.5%).
At 30 June 2019, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
profit/(loss) would have been affected as follows:
Profit/(loss) and equity
+ 0.5% (50 basis points) (2018: +0.5% (50 basis points))
- 0.5% (50 basis points) (2018: -0.5% (50 basis points))
Fair value estimation
2019
$
4,737
(4,737)
2018
$
6,929
(6,929)
The carrying amounts of financial assets and financial liabilities are equal to their fair value based on their short-term
nature. No financial assets or liabilities are required to be measured at their fair value on a recurring basis.
Pointerra Limited ABN 39 078 388 155
31
-
500,112
164,269
670,381
Total
$
1,385,834
638,073
2,023,907
478,055
114,695
592,750
Notes to the Financial Statements
for the year ended 30 June 2019 (continued)
NOTE 25. PARENT ENTITY INFORMATION
Pointerra Limited is the legal parent entity.
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Total comprehensive loss
Legal subsidiaries
2019
$
2018
$
1,416,297
2,019,010
75,761
69,025
1,492,059
2,088,035
(779,260)
(779,260)
712,798
(582,483)
(582,483)
1,505,552
12,385,548
11,292,324
1,583,066
1,569,466
(13,255,816)
(11,356,238)
712,798
1,505,552
(3,089,519)
(2,761,718)
Name
Country of
Incorporation
Class of share
Pointerra
Australia
Ordinary
% Equity interest
% Equity interest
2019
100%
2018
100%
Technologies Pty
Ltd(i)
Principal activities
Provision of 3D
digital asset
management
solutions
Pointerra US, Inc(ii) United States of
Ordinary
100%
100%
Provision of 3D
America
i.
ii.
Acquired 30 June 2016
Incorporated 18 January 2018
digital asset
management
solutions
Pointerra Limited ABN 39 078 388 155
32
Directors’ Declaration
The directors of the Group, declare that:
(1) the financial statements, notes and additional disclosures included in the directors’ report designated as audited,
of the Group are in accordance with the Corporations Act 2001, including;
(a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(b) giving a true and fair view of the Company’s and Group’s financial position as at 30 June 2019 and of their
performance for the year ended on that date.
(2) The financial report also complies with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in Note 1 to the financial report.
(3) In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
(4) This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended to 30 June 2019.
This declaration is made in accordance with a resolution of the Board of Directors of Pointerra Limited.
Ian Olson
Director
27 September 2019
Pointerra Limited ABN 39 078 388 155
33
Independent Auditor's Report
To the Members of Pointerra Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Pointerra Limited (“the Company”) and its
subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of
financial position as at 30 June 2019, the consolidated statement of profit or loss and
other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with
the Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as
at 30 June 2019 and of its financial performance for the year then ended;
and
(ii)
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards
as disclosed in Note 2.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those
standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance about
whether the financial report is free from material misstatement. 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 Consolidated Entity in
accordance with the auditor 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.
Independent Auditor’s Report
To the Members of Pointerra Limited (Continued)
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
Recognition of Research & Development Tax
Incentive
Our procedures included, amongst others:
obtaining an understanding of the objectives and
(Refer to note 6)
activities in the R&D program;
Under the Research and Development (“R&D”) tax
reviewing the lodgment documents and related
incentive scheme, the Consolidated Entity receives
a 43.5% refundable tax offset of eligible expenditure.
An R&D submission has been filed with AusIndustry,
and a receivable has been recorded at year end
representing the expected claim to be received for
the year ended 30 June 2019.
This area is a key audit matter due to the inherent
subjectivity that is involved in the Consolidated
Entity making judgements in relation to estimation
working papers utilised by the expert engaged by
the Consolidated Entity;
assessing the scope of services and capabilities
of the expert engaged by the Consolidated
Entity;
comparing the eligible expenditure used in the
receivable calculation to the expenditure
recorded in the general ledger;
and recognition of the R&D tax incentive income and
receivable.
agreeing the receipt of the refund to the bank
statement subsequent to year end; and
assessing the adequacy of the disclosures in the
financial report.
Revenue recognition
Our procedures included, amongst others:
During the year, the sales revenue amounted to
$443,504. Revenue is the key driver of the
Consolidated Entity.
Documenting the processes and assessing the
internal controls relating to revenue processing
and recognition;
The recognition of revenue and associated
unearned revenue was considered a key audit
matter due to the judgement and estimates involved
in determining when performance obligations are
met and revenue is recognised.
Reviewing the revenue recognition policy for
revenue stream for compliance with AASB 15;
Reviewing a sample of income to supporting
contracts to ensure revenue was recognised in
line with the revenue recognition policy;
Assessing cut-off of revenue at year end and
ensuring revenue has been recorded in the
correct reporting period; and
Assessing the adequacy of the Consolidated
Entity’s revenue disclosure within the financial
statements
Independent Auditor’s Report
To the Members of Pointerra Limited (Continued)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2019, 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 accordingly 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 Note 2, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’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 Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to
obtain reasonable assurance about whether the financial report as a whole is free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Independent Auditor’s Report
To the Members of Pointerra Limited (Continued)
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Consolidated Entity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain
solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2019.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 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.
Independent Auditor’s Report
To the Members of Pointerra Limited (Continued)
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2019, complies with
section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Partner
Dated at Perth this 27th day of September 2019
Corporate Governance Statement
The Board of Directors of the Company is responsible for the Corporate Governance of the Company. The Board is
committed to achieving and demonstrating the highest standard of corporate governance applied in a manner that is
appropriate to the Company’s circumstances.
The Company has taken note of the Corporate Governance Principles and Recommendations 3rd edition, which was
released by the ASX Corporate Governance Council on 27 March 2014 and became effective for the financial year
beginning on or after 1 July 2014.
The Company’s Corporate Governance Statement is current as of the date of this report and it has been approved by the
Board. The Corporate Governance Statement is available on the Company’s website at: www.pointerra.com
Pointerra Limited ABN 39 078 388 155
39
Additional Information for Shareholders
The shareholder information set out below was applicable as at 26 September 2019.
Distribution of equity securities:
Analysis of numbers of equity security holders by size of holding:
Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 999,999,999,999
Total
Total
holders
Number of
Shares
% of issued
capital
818
136
131
700
491
51,750
360,242
997,020
30,549,589
489,264,511
2,276
521,223,112
0.01
0.07
0.19
5.86
93.87
100
Less than marketable parcel
Number of shares in
minimum parcel size
11,111
Holders
1,100
Units
1,572,049
The names of the 20 largest holders of fully paid ordinary shares as at 26 September 2019:
Name
1.
2.
3.
Cartovista Pty Ltd
Cartovista Pty Ltd
Jennifer Olson
4. Michael Freeth
5.
Citicorp Nominees Pty Limited
6. Mark Morrison & Alison Morrison
7.
8.
9.
HSBC Custody Nominees (Australia) Limited
Blaze Jasper
Lively Enterprises Pty Ltd
10. Mr Keiran James Slee
11.
Jennifer Olson
12.
Ian Olson
13. Robert Wittenoo
14. Mark Morrison & Alison Morrison
15. Michael Freeth
16.
Mr Duncan Gerard Gowans & Mrs Jodie Louise Gowans
17.
Saltini Pty Ltd
18.
Altor Capital Management Pty Ltd
19. Mr Shayne Raymond Douglas
20.
BNP Paribas Nominees Pty Ltd
Total
Total all ordinary shares
Number of
shares
Percentage
60,777,958
11.66
24,261,426
19,983,793
17,016,407
15,916,518
14,586,710
11,162,372
9,723,052
8,691,248
8,046,301
7,977,157
6,077,796
6,000,000
5,822,742
5,822,742
5,050,000
4,900,000
4,000,000
3,872,158
3,674,152
4.66
3.83
3.26
3.05
2.80
2.14
1.86
1.67
1.54
1.53
1.17
1.15
1.12
1.12
0.97
0.94
0.78
0.74
0.70
243,362,532
46.66
521,223,112
Pointerra Limited ABN 39 078 388 155
40
Additional Information for Shareholders
Substantial holders:
Substantial holders in the Company are set out below:
Name
Cartovista Pty ltd
Jennifer Olson
Restricted Securities
The Company has no restricted securities on issue.
On-market Buy-back
There is no current on-market buy-back.
Consistency with business objectives
Number of shares
86,206,051
27,960,950
Class of
shares
Ordinary
Ordinary
The Company has used its cash and assets in a form readily convertible to cash that it had at the time re-compliance in a way
consistent with its stated business objectives.
Pointerra Limited ABN 39 078 388 155
41