1st Floor,
216 Stirling Highway
CLAREMONT WA 6010
Telephone: 61 8 9286 5300
Facsimile: 61 8 9286 1179
Postal address
PO Box 1135
NEDLANDS WA 6909
Australia
Website and e-mail address
www.resonancehealth.com
Email: info@ferriscan.com
ANNUAL REPORT 2010
Resonance Health Limited
C O R P O R A T E I N F O R M A T I O N
ABN 96 006 762 492
Directors
Dr Stewart Washer
Non-executive Chairman
Dr Martin Blake
Non-executive Director
Ms Liza Dunne
Managing Director
Mr Simon Panton
Non-executive Director
Dr Timothy St Pierre
Executive Director
Company secretary
Ms Eva O’Malley
Stock exchange listing
Resonance Health Limited shares
are listed on the Australian
Securities Exchange.
ASX Code: RHT
Registered office and
Auditors
Principal place of business
HLB Mann Judd
1st Floor,
216 Stirling Highway
Claremont WA 6010
Australia
Telephone: 61 8 9286 5300
Facsimile: 61 8 9286 1179
Postal address
PO Box 1135
Nedlands WA 6909
Australia
Website and e-mail address
Level 4,
130 Stirling Street
Perth WA 6000
Australia
Share registry
Advanced Share Registry Ltd
150 Stirling Highway
Nedlands WA 6009
Australia
Tel: +61 8 9389 8033
Fax: +61 8 9389 7871
www.resonancehealth.com
Bankers
Email: info@ferriscan.com
National Australia Bank Limited
Solicitors
Cole Legal
Unit 9
569 Wellington Street
Perth WA 6000
Australia
Resonance Health Limited Annual Report 2010
Our Business
Resonance Health Ltd is a publicly listed Australian healthcare company providing medical image analysis
services specialising in liver diagnostics with magnetic resonance imaging (MRI).
FerriScan® is a medical device with regulatory approval providing the most accurate assessment of iron
overload on the market. FerriScan® is delivered through the Company’s central image analysis facility which
also provides a range of value added services for clinical trials using imaging end points.
New products are in development at Resonance Health for the quantitative imaging assessment of liver fat
and liver fibrosis, which represent large addressable growth markets for routine clinical testing. These imaging
tests will also be used by pharmaceutical companies wishing to assess the effectiveness of new therapies
being developed for the treatment of liver disease.
C o n t e n t s
Chairman and Managing Director’s Report
Year In Review
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional ASX Information
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14
19
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46
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C H A I R M A n A n D M A n A G I n G D I R e C t o R ’ s R e P o R t
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Y e A R I n R e V I e W
The financial year ended 30 June 2010 was a year of continued growth in the number of FerriScans delivered and expansion
in the research and development of imaging based diagnostic tests aimed at the liver disease market.
FerriScan® sales volumes increased 29% in the year due to reimbursement for FerriScan® in some markets and an investment
in sales and marketing expenditure in the US and Europe. This investment is required to gain widespread knowledge and use
of FerriScan® and to achieve reimbursement.
FerriScan® revenue for the year was $1.9m which was underpinned by a revenue growth of 18% in the routine clinical use
of FerriScan® for the management of patients with iron overload conditions, as the Company reduces its reliance on income
gained from the use of FerriScan® in clinical trials. Resonance Health sees the future growth market for FerriScan® in the
routine clinical use market.
A FerriScan® distributor was appointed in Turkey and the Company hopes to gain funding approval the service there in
the near term, providing access to FerriScan® for the 5000+ patients with transfusional iron overload. Distributors are being
sought in South East Asia where thalassaemia and the complications of iron overload are a significant health burden.
Improvements to the FerriScan® offering during the year have been well accepted. These include a 60% reduction in MRI
scan time and an expanded new service that provides a FerriScan® and a cardiac iron assessment.
Whilst the FerriScan® business unit was profitable in the 2009/2010 financial year, the Company reported a net loss for the
year of $102,335. Research and Development expenditure of $564,084 was focused on the development of imaging based
diagnostics for the liver fibrosis and liver fat markets and further improvements to the FerriScan® product. Non-invasive
imaging solutions that assist with the diagnosis and management of liver disease can provide a significant benefit to
patients, the healthcare community and in the assessment of new therapies.
There is a substantial economic and human burden from liver disease in many countries.
• Liver disease is the only major cause of death still increasing year-on-year in the UK.
• Liver cirrhosis is the 7th most common cause of death in the world – caused primarily by viral hepatitis, non-alcoholic fatty
liver disease (NAFLD) and alcohol use.
• NAFLD is the most common liver disease in the western world with 20-30% of the population affected.
• Liver fibrosis, primarily caused by fatty liver and viral hepatitis, is a significant predictor of liver cancer.
• Hepatocellular carcinoma is the 4th leading cause of cancer-related death in the world.
The early diagnosis and effective management of these patients can significantly improve patient outcomes. Resonance
Health’s strategic association with the medical industry focused on liver disease and its expertise in bringing imaging based
diagnostic medical devices to the research and clinical communities provides a strong outlook for shareholders.
The results of a clinical study conducted during the year for the liver fibrosis and fat measurements are promising and
discussions are in progress with potential partners for further development of these diagnostic tests. The Board and
management of Resonance Health are confident that our significant focus and investment in these areas will deliver success
to the Company.
Liza Dunne
Managing Director
Stewart Washer
Chairman
2
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Y e A R I n R e V I e W
Ferriscan®
FerriScan® uptake in key markets during the 2009/2010 financial year has positioned it as market leader in the
field of non-invasive assessment of iron overload. Over 3,000 FerriScan® reports were delivered during the year,
a growth of 29% on the previous year, and Resonance Health is poised to celebrate its 10,000th FerriScan® in
late 2010.
an accurate quantification of liver iron without the need
to purchase additional hardware or software or to obtain
training in its use. Fees are charged on each analysis
performed. FerriScan® is now a short 10 minute imaging
procedure, following the launch of FerriScan® Rapide during
the year.
FerriScan® continues to have a significant competitive
advantage, providing highly sensitive and specific
measurements at both very high and very low liver iron
concentrations, even in the presence of other complicating
factors such as inflammation, infection or fibrosis. Blood
markers can be unreliable and clinicians are turning to MRI-
based methods to non-invasively quantify iron overload.
Resonance Health continues to work closely with the
clinical community and government agencies to gain
reimbursement for FerriScan®.
europe
The investment in locally based marketing resources in Europe
demonstrated a strong return with volume growth in the
UK of 136% on the prior year. The availability of funding by a
number of National Health Service Trusts has been critical to
the development of the UK business. Five additional hospitals
commenced using FerriScan® in the UK during the year.
Kings College Hospital was the first international hospital
to use the FerriScan® and cardiac T2* dual analysis service.
The myelodysplastic syndrome (MDS) market in Ireland is a
significant target for Resonance Health and the Company hopes
to establish the first FerriScan® facility in Ireland in early 2011.
A submission for reimbursement has been made in Germany
which represents a large opportunity for FerriScan® in
haemochromatosis and tranfusion-dependant iron overload.
FerriScan® is now recognised in many international markets
as the new ‘gold standard’ in liver iron quantification, largely
replacing the need for a liver biopsy, which can be a painful
procedure associated with risks and is subject to sampling
inaccuracies. Worldwide, there are over 130 Magnetic
Resonance Imaging (MRI) facilities providing the FerriScan®
service, in over 20 countries.
FerriScan® is provided to the market as an image analysis
service, ensuring the FerriScan® intellectual property is well
protected and the accuracy of the results is maintained.
Image analysis is performed at an ISO: 9001 certified facility
by highly trained technicians. A secure web portal enables
the electronic transmittal of image data and secure access to
the results by MRI facilities around the world.
FerriScan® offers the international medical community
Monitoring and Management of Iron Overload Conditions Regional Conference, London, June 2010.
3
Y e A R I n R e V I e W
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
north America
Resonance Health appointed a Vice President, US Business
Development in 2010, to drive growth in the US market and
manage a program for reimbursement of FerriScan® by US
private and public payers.
FerriScan® achieved endorsement by key patient groups
during the year and inclusion in patient management
guidelines; important steps towards achieving greater
use and funding for FerriScan®. Reimbursement is key to
FerriScan® achieving significant growth in this market and
we are optimistic of progress in this regard during the 2010 /
2011 financial year.
Reimbursement for FerriScan® from the Ontario Ministry
of Health contributed to the volume growth of 77% in the
Canadian market.
Rest of the World
In Australia, FerriScan® volumes increased by 18%. FerriScan®
became available in six new MRI facilities during the year
providing greater access to the service in anticipation of a
positive decision from the Medical Services Advisory Committee
(MSAC) for public funding. A decision on the application,
submitted in mid 2008, has encountered a series of unfortunate
delays beyond the control of Resonance Health. Progress has,
however, been made and it is likely that a final determination will
be made by the Minister for Health in Q4 2010.
Cooley’s Anemia Foundation
(Us thalassaemia patient society)
Position statement on MRI-based
Hepatic Iron Assessment Methods,
including FerriScan®
“There is significant clinical and scientific
evidence available to support this technique as
a means to monitor liver iron concentrations
in patients with thalassemia. MRI-based
iron assessment represents the type of medical
breakthrough our members depend on.
FerriScan® itself is a high quality (clinical
grade, FDA approved) method of accomplishing
this assessment. Based on our review of the
peer-reviewed literature, Cooley’s Anemia
Foundation recommends that third party
insurance companies develop positive coverage
policies so that consumers can access this test,
providing more accurate and cost-effective results
than liver biopsy.”
FerriScan® locations worldwide.
Resonance Health appointed its first overseas distributor
for FerriScan® in Turkey and an application for government
funding for FerriScan® has been submitted in that country.
A positive response is anticipated in the 2010/2011 financial
year. Turkey has over 5,000 thalassaemia and sickle cell
disease patients and a high prevalence of hereditary
haemochromatosis.
4
Efforts are being made to identify suitable organisations
in other markets where a distributor is a requirement for
product registration and to provide a cost effective marketing
channel.
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Cardiac t2*
Clinical Activities
At the 3rd Pan European Conference on Haemoglobinopathies
in Berlin Resonance Health launched a new service to assess
the risk of cardiac iron overload. Cardiac T2* is the most
widely accepted MRI based method for assessing cardiac
iron loading and when combined with a FerriScan® provides
clinicians with a comprehensive assessment of a patient’s iron
overload status.
Thalassaemia patients with elevated liver iron concentration are
at greatest risk of future cardiac complications and premature
death. While liver iron concentration has been shown to be a
good predictor of this risk, a cardiac T2* analysis provides clinicians
with information to assess the shorter term risk of cardiac failure or
arrhythmia.
Resonance Health’s cardiac T2* image analysis service has
approval by regulatory authorities in Australia and the
European Union and is being delivered to these markets as a
dual service, combining the FerriScan® test with a cardiac T2*
assessment.
The company plans to submit a 510K application to the FDA
in Q4 2010 for regulatory approval of the cardiac T2* service
in the United States.
FerriScan® & Cardiac T2*
Professor Swee Lay Thein,
FRCPath, FRCP, DSc, FMedSci
Swee Lay Thein is Professor of
Molecular Haematology and
Consultant Haematologist at King’s
College Hospital and King’s College
London (KCL) School of Medicine,
London, UK. She is head of the
Division of Gene and Cell Based
Therapy within KCL School of
Medicine
“FerriScan® is our preferred tool for determining Liver
Iron Concentration as it has greater sensitivity and
specificity to other MRI methods, providing a quantitative
value which gives better guidance in monitoring.
FerriScan® has regulatory approval and offers a quality
assured service. We use FerriScan® to screen patients for
iron overload and to optimise any chelation treatment
required through accurate monitoring.
We are also now using the dual analysis service
(FerriScan® + Cardiac T2* ) provided by Resonance
Health which provides a complete picture of iron loading
in the liver and heart where required. Demand for
FerriScan® and the dual analysis service is increasing as
this has a valuable role in both primary and secondary
iron overload conditions.”
FerriScan® continues to provide important liver iron
concentration (LIC) information for patients involved in clinical
trials of iron chelating agents. FerriScan® LIC results are being
used as the primary endpoint in studies to evaluate the efficacy
of chelators in patients with transfusion-dependent and
transfusion-independent iron overload disorders. FerriScan®
often replaces the need to perform a liver biopsy and reduces
reliance on less accurate serum ferritin measurements.
A large study has been completed to independently validate
the FerriScan® technology, involving 233 subjects and 5 MRI
scanners. The same calibration curve was found to apply in
the new validation study and confirmed that the FerriScan®
technology was very robust for all subject types, regardless of
age, disease, transfusion history and degree of liver fibrosis.
There is now peer-reviewed published FerriScan® data for over
2600 subjects, including patients with thalassaemia major,
myelodysplastic syndrome, thalassaemia intermedia, sickle
cell disease and hereditary haemochromatosis. This volume of
published data enhances FerriScan®’s credibility in the clinical
community and strengthens Resonance Health’s argument for
reimbursement of its service.
The Company also concluded a multi-centre study of 60 patients
to validate a 60% reduction in scan time. FerriScan® Rapide is
now on the market, significantly improving the cost effectiveness
of the service.
FerriScan® analysis in progress.
5
Y e A R I n R e V I e W
Articles and Presentations
Resonance Health gained increased exposure through the
publication of positive articles in the media, participation in
exhibitions and invitations to present at a number of events.
These included:
• 37th Annual Sickle Cell Disease Association America
Conference, Florida 30 Sept - 3 Oct 2009. Participation in
the associated trade exhibition marked FerriScan®’s launch
into the sickle cell market in the US.
• American Association for the Study of Liver Disease
(AASLD) 59th Meeting, Boston 30 Oct - 3 Nov 2009.
Meeting attended by +9,000 delegates and Professor Tim
St Pierre was invited to speak on non-invasive tissue iron
measurement.
• 9th Cooley’s Anemia Symposium, New York 21-24 Oct 2009.
Professor Tim St Pierre was invited to speak on interpreting
liver iron concentration measurements and imaging.
• 2nd Pan-European Conference on Thalassaemia and other
Haemoglobinopathies, Berlin 13-14 March 2010. A trade
exhibition at this event provided a platform to launch
the cardiac iron assessment service to an audience of key
opinion leaders in Europe and patient advocacy groups.
• Global Iron Summit, Prague 10-11 April 2010. Professor Tim
St Pierre was invited to speak on “MRI technique in clinical
practice: when, why and how?”
• Monitoring and Management of Iron Overload Conditions
Regional Conference, London 3 June 2010. This event
provided medical education on various aspects of iron
overload to attending clinicians from South East England.
Research and Development
Resonance Health has completed a clinical study into
the development of an MRI-based technology for the
quantification of liver fibrosis and liver fat. This study tested 49
subjects with hepatitis and non-alcoholic fatty liver disease
with a range of fibrosis severities.
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
D I R e C t o R s ’ R e P o R t
The study provided positive results and the Company is
now planning the next phase of development. The clinical
community is strongly in favour of a non-invasive imaging
test that can reliably assess the presence of liver fibrosis and
liver fat. Resonance Health is working to develop such a test,
which would involve only a 15 minute MRI examination and
would provide significant competitive advantage over other
tests on the market.
Liver fibrosis and cirrhosis are major and growing health
problems worldwide. Primary causes are viral hepatitis, non-
alcoholic fatty liver disease (NAFLD), iron overload and excess
alcohol consumption. Liver fibrosis is a significant predictor
of hepatocellular carcinoma, the most common form of liver
cancer. Liver fibrosis may also lead to cirrhosis and end-stage
liver disease requiring liver transplant.
Pharmaceutical companies developing therapies for liver
disease require accurate non-invasive diagnostic tools to
quantify liver fibrosis and liver fat to assess the efficacy of new
therapeutics under development. Resonance Health sees
these needs as a significant opportunity for the company.
Patented technology
The patented technology upon which FerriScan® is based
enables MRI scanners to be used to measure and map the
concentration of magnetic material within tissues. The special
features of the technology enable the measurements to
be made over a very wide range of concentrations with a
high degree of sensitivity. FerriScan® is used primarily in the
diagnosis, management, and monitoring of patients with iron
overload diseases because the iron deposits in the liver are
in the form of weakly magnetic particles. The technology has
also been used in the research setting to measure and map
concentrations of synthetic magnetic materials introduced into
tissues for the purpose of labeling or magnetically transduced
therapies.
Movements in mortality 1971 - 2008
Deaths per million of population
300
250
200
150
100
50
0
-50
-100
L
Liver
Diabetes
Diabetes
Cancer
Cancer
Respiratory
Respiratory
Road
Road
Heart
Heart
Str
Stroke
1971 1981 1991 2001 2008
YEARS
© British Liver Trust, www.britishlivertrust.org.uk
Relative Growth of Mortality from Liver Disease in the UK.
6
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
D I R e C t o R s ’ R e P o R t
The Board of Directors has pleasure in presenting the annual financial report of the consolidated entity consisting of
Resonance Health Limited and the entities it controlled during the period for the financial year ended 30 June 2010. In
order to comply with the provisions of the Corporations Act, the directors report as follows:
Directors
The names, qualifications and experience of directors in office during the financial year and until the date of this report are as
follows. Directors were in office for this entire period unless otherwise stated.
Ms Liza Dunne
B.Bus, GDipAppFin, GAICD
Position: Managing Director
—Executive (appointed 23 October
2008)
experience: Ms Dunne joined
Resonance Health in October 2003
and has been actively involved in
all aspects of the business including
business development and
commercialisation of FerriScan®,
developing alliances with pharmaceutical industry partners
and obtaining regulatory approval in various countries.
Ms Dunne has extensive experience in senior positions across
industry. She worked for IBM for eleven years in financial,
marketing and management positions and spent five years
with KPMG Consulting working across a broad spectrum of
industry and project areas that focused on improved business
processes and implementation of new technology.
Ms Dunne holds a Business Degree, a Graduate Diploma in
Applied Finance and is a Graduate of the Australian Institute
of Company Directors.
other current directorships:
None
Former directorships in last 3 years:
None
special responsibilities:
Member of the Remuneration Committee (resigned 24 March
2010)
Dr stewart Washer
B.Sc(Hons), PhD
Position: Chairman —
Independent and Non-Executive
(appointed 16 February 2009)
experience: Dr Washer has over
20 years of senior executive and
Board experience in commercial
technology companies in the
medical, food, agricultural and
industrial sectors. He was a founder
of Biopacific Ventures, a $120m New Zealand based fund. He
is currently a Venture Partner with the Swiss Inventages Fund,
a €1.5 billion life science fund, funded by Nestle.
Dr Washer was the founding CEO of Phylogica Ltd (ASX:
PYC) a company with a peptide drug discovery technology.
Before this, he was CEO of Celentis and managed the
commercialisation of intellectual property from AgResearch
in New Zealand with 650 Scientists and $130m revenues.
Dr Washer is an Investment Director with IB Managers who
have Australian and European life-science funds. He is a
Director of Healthlinx (ASX:HTX) who have developed the first
successful diagnostic for Ovarian Cancer and Genesis R&D
(ASX:GEN) who have developed new ways to deliver siRNA
drugs. Dr Washer sits on the Senate at Murdoch University,
and the Board of AusBiotech Ltd, the industry body for
biotechnology.
other current directorships:
Ausbiotech Ltd
Genesis Research and Development Ltd
HealthLinx Ltd
Former directorships in last 3 years:
Biosignal Ltd
Phylogica Ltd
Xceed Capital Ltd
special responsibilities:
Chairman of the Remuneration Committee
Member of the Audit Committee
© British Liver Trust, www.britishlivertrust.org.uk
7
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
D I R e C t o R s ’ R e P o R t
Dr Martin Blake
MBBS, FRANZCR, MBA, GAICD
Position: Director — Independent
and Non-Executive (appointed 4
October 2007)
experience: Dr Blake is a
Radiologist and Nuclear Physician
and brings a wealth of technical
and industry experience to
Resonance Health. He has been a
Partner of Perth Radiological Clinic
since 1997 and is currently the Chairman of the Company.
Dr Blake additionally held the position of Head of Department
of Nuclear Medicine at Royal Perth Hospital for a number of
years. He has published more than a dozen peer reviewed
research papers and has been a contributing author to the
Royal Australian and New Zealand College of Radiologists
(RANZCR) Imaging Guidelines. Dr Blake has additionally held
positions as Secretary and Treasurer of the WA Branch of the
RANZCR.
Dr Blake has an MBA from Melbourne University, is a Graduate
of the Australian Institute of Company Directors and holds
directorships on a number of private company boards.
other current directorships: None
Former directorships in last 3 years: None
special responsibilities:
Chairman of the Audit Committee
Member of the Remuneration Committee
Dr timothy st Pierre
B.Sc(Hons), PhD
Position: Director — Executive
(appointed 21 August 2006)
experience: Dr St Pierre is widely
published in the field of iron in
medicine and biology and has built
a reputation as a physicist with an
outstanding understanding of the
fundamental properties of the iron
deposits that occur in iron overload diseases. Dr St Pierre, a
Professor at The University of Western Australia, led the team
which developed the FerriScan® technology. Dr St Pierre
has strong links with international key opinion leaders in the
field of iron overload diseases and regularly participates in
international research collaborations. Dr St Pierre recently
won a Clunies Ross Award from the Australian Academy of
Technological Sciences and Engineering for his work on non-
invasive measurement of tissue iron deposits.
other current directorships:
None
Former directorships in last 3 years:
None
special responsibilities:
None
Mr simon Panton
Position: Director —
Non-Executive
(appointed 5 October 2009)
experience: Mr Panton has been
a strong supporter of the Company
and the FerriScan® technology over
a number of years and is a major
shareholder of Resonance Health.
Mr Panton brings skills in business
and marketing having run his own
successful business.
Company secretary
Ms eva o’Malley
B.Com, CA
Position: Company Secretary
(appointed 31 August 2007)
experience: Ms O’Malley has over
ten years experience in managing
the financial obligations of ASX
listed corporations across a diverse
range of industries.
other current directorships:
None
Former directorships in last 3 years:
None
special responsibilities:
Member of the Audit Committee (appointed 5 October 2009)
Member of the Remuneration Committee (appointed 5 October
2009)
8
Interests in the shares of the Company
The following relevant interests in shares and options of
the company were held by the directors during the period.
There has been no change in directors’ and executives
shareholdings to the date of this report.
Balance
1.7.09
Received as
Remuneration
Net Change
Other
Balance
30.6.10
Directors
Dr M Blake
6,224,677
-
Ms L Dunne
2,227,025
366,770
-
-
6,224,677
2,593,795
Mr S Panton1
-
- 65,960,972
65,960,972
Dr T St Pierre
9,078,750
-
-
9,078,750
451,422
Dr S Washer
451,422
________________________________________________________________________________________
Total
84,309,616
__________________________________________________________________
366,770 65,960,972
17,981,874
-
-
Executives
-
Ms E O’Malley
-
________________________________________________________________________________________
-
Total
__________________________
-
-
-
-
-
1 Mr Panton was appointed as director on 5 October 2009. Net change
other represents his shareholding on appointment as disclosed in his
initial director’s interest notice.
Incentive shares and options
The Class G incentive shares expired on 31 May 2010. There were
no incentive shares or unissued ordinary shares of Resonance
Health Limited under option at the date of this report.
The company does not have an option plan. Accordingly, no
options were issued as part of remuneration to directors or
specified executives during the current or previous financial year.
Dividends Paid or Recommended
No dividend was paid or declared for the financial year.
Principal Activities
The company’s business involves the development and
commercialisation of technologies and services for the
quantitative analysis of radiological images in a regulated and
quality controlled environment.
The company’s core product is FerriScan®, a non-invasive liver
diagnostic technology used for the measurement of iron in the liver.
Review of operations
Resonance Health Limited is an Australian healthcare listed
company located in Perth, Western Australia, specialising in
the provision of image analysis services and the development
of quantitative MRI diagnostic technology, with a sub-
specialty in the liver. All services are provided under a
ISO:9001 certified quality management system.
Resonance Health’s FerriScan® technology for accurately
measuring liver iron concentration has FDA, CE Mark and TGA
certification and is being used in over 20 countries. FerriScan®
is provided to the market through the Company’s central
image analysis facility which also offers a range of Imaging
CRO services for clinical trials in the pharmaceutical and
biotechnology industries.
The Company is also developing imaging tools for the non-
invasive assessment of liver fat and liver fibrosis to address a
9
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
large clinical need for patients with fatty liver disease and viral
hepatitis.
Financial Summary:
The Company delivered a financial result reflecting
increased marketing activities for the FerriScan® product and
investment into the development of pipeline products to
provide further opportunities for growth.
• FerriScan® revenue from routine clinical use of the
FerriScan® service continued to increase during the year
while revenues from clinical trials decreased due to a
number of clinical trials involving FerriScan® coming to a
conclusion. Overall, FerriScan® business segment revenue
decreased 15% to $1,914,227 from $2,259,191 in the
previous financial year. Revenue associated with the routine
clinical use of FerriScan® for the management of patients
with iron overload grew 18% in the year. The Company sees
this as the primary growth area for the FerriScan® business.
• The FerriScan® business segment delivered a profitable
• Research and development expenditure during the year
result in the financial year.
totalled $564,084, an increase of 64% on the prior year.
Included in this is an amount of $452,724 which has been
capitalised as an intangible asset. This comprised clinical
trials for the development of the liver fibrosis and liver fat
test and improvements to the FerriScan® technology to
gain greater efficiencies in delivery of the FerriScan® service.
• Overall expenditure increased 22% to $2,222,081 from
$1,822,828 in the previous financial year primarily due
to expansion into international markets and activities to
secure reimbursement for FerriScan®.
• Net loss for the year was $102,335 compared to a net profit
of $617,051 in the previous financial year due to the above
activities.
• Resonance Health continues to have no debt and has
cash at bank of $2,133,884 at the end of the financial year,
compared to $2,644,938 in the previous financial year.
Major milestones during the year:
Activities during the year were focused on marketing of the
FerriScan® service and research and development activities to
provide pipeline products for future revenue growth.
The FerriScan® business achieved a number of milestones
during the year:
• FerriScan® ‘Rapide’ was launched providing a 60%
reduction in the FerriScan® MRI scan time, improving the
competitiveness of the FerriScan® test.
• 136% increase in sales volume in the UK market as a result
of strong key opinion leader support and funding from
some of the National Health Service Trusts.
• 77% increase in sales volume in Canada compared to the
prior year as a result of gaining funding approval from the
Canadian Ministry of Health.
• Launch of a cardiac iron assessment test called Cardiac
T2* in the UK and Australia to complement the FerriScan®
service and provide additional revenue opportunities in
established markets.
• Engagement of the first FerriScan® distributor in Turkey,
providing cost effective access to a large number of
D I R e C t o R s ’ R e P o R t
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
patients with iron overload in Turkey and a model for
FerriScan® sales growth throughout the Middle East and Asia.
• Over 9,000 FerriScan®s have been performed to date.
• Senior US based VP, Business Development appointed in
January 2010 to drive growth in the large US market and
gain reimbursement for FerriScan® in the US.
• Submission for reimbursement in Germany lodged to drive
growth in a market with large numbers of patients with iron
overload conditions.
• 27 peer reviewed publications report the use of FerriScan®
to diagnose, monitor or measure iron overload. 7 treatment
guidelines support the use of FerriScan® including:
o Guidelines for the Clinical Management of Thalassaemia
(updated 2nd edition)
o The Italian Society of Haematology Practice Guidelines (Thal)
o Standards for the clinical care of children and adults
with Thalassaemia in the UK
o Standards for the clinical care of adults with sickle cell
disease in the UK
• Increased presence at international conferences in the
Company’s target markets including:
o 37th Annual Sickle Cell Disease Conference, USA
o American Association for the Study of Liver Disease
(AASLD), USA
o 2nd Pan-European Conference on Thalassaemia and
other Haemoglobinopathies, Germany
o Monitoring and Management of Iron Conditions
Conference, UK
• The Australian Medical Services Advisory Committee
(MSAC) met to review Resonance Health’s submission
for funding for FerriScan®. The Company is awaiting the
outcome of their assessment.
Research and Development Activities:
• The Company completed a 59 subject clinical study to
develop an MRI test for the assessment of liver fat and
liver fibrosis, two areas of significant unmet clinical need.
Non-alcoholic fatty liver disease (NAFLD) is considered the
most common liver disease in the western world affecting
20-30% of the population. Liver fibrosis, primarily caused by
fatty liver and viral hepatitis, is a significant predictor of liver
cancer. Results from this study are positive and discussions
have commenced to scope the next phase of development
with interested parties. The gold standard for assessing
liver fibrosis and liver fat is a liver biopsy. An accurate non-
invasive imaging procedure would provide an attractive
alternative to patients and pharmaceutical companies
developing therapies to address these conditions.
operating Results
The net loss of the consolidated entity for the financial year
after tax was $102,335 (2009: profit of $617,051).
significant Changes in state of Affairs
There were no significant changes in the state of affairs of the
company during the financial year.
significant events After Balance Date
No other matters or circumstances have arisen since the
end of the financial year which significantly affected or may
10
significantly affect the operations of the company and the
consolidated entity, the results of those operations, or the
state of affairs in future financial years.
Likely Developments and expected Results of
operations
Comments on expected results of the operations of the
consolidated entity are included in this report under the
review of operations.
Disclosure of information regarding likely developments in
the operations of the consolidated entity in future financial
years and the expected results of those operations is likely to
result in unreasonable prejudice to the company. Accordingly,
this information has not been disclosed in this report.
environmental Legislation
The consolidated entity’s operations are not subject to any
significant environmental legislation.
Indemnification and Insurance of Directors and officers
The company has agreed to indemnify all the directors and
secretaries of the company for any liabilities to another
person (other than the Company or related body corporate)
that may arise from their position as directors of the Company
and its controlled entities, except where the liability arises out
of conduct involving a lack of good faith.
During the financial year the company paid a premium of
$14,443 (2009: $14,469) to insure the directors and secretaries
of the company and its controlled entities against any liability
incurred in the course of their duties to the extent permitted
by the Corporations Act 2001. It is not possible to apportion
the premium between amounts relating to the insurance
against legal costs and those relating to other liabilities.
ReMUneRAtIon RePoRt
This report outlines the remuneration arrangements in place for
the key management personnel of Resonance Health Limited for
the financial year ended 30 June 2010. The information provided
in this remuneration report has been audited as required by
Section 308 (3C) of the Corporations Act 2001.
The remuneration report details the remuneration
arrangements for key management personnel who are
defined as those persons having authority and responsibility
for planning, directing and controlling the major activities of
the Company and the Group, directly or indirectly, including
any director (whether executive or otherwise) of the parent
company and the Company Secretary.
Key Management Personnel
(i) Directors
Dr Stewart Washer – Chairman
Ms Liza Dunne – Managing Director
Dr Martin Blake
Mr Simon Panton (appointed 5 October 2009)
Dr Timothy St Pierre
(ii) executives
Ms Eva O’Malley – Company Secretary
Remuneration Policy
The Board’s policy for determining the nature and amount of
remuneration for Board members and senior executives of
the consolidated entity is as follows:
• set competitive remuneration packages to attract
the highest calibre of employees in the context of
prevailing market conditions, particular experience of
the individual concerned and the overall performance
of the company;
• reward employees for performance that results in long-
term growth in shareholder wealth with the objective
of ensuring maximum stakeholder benefit from the
retention of a high quality board and executive team.
The Board of Resonance Health Limited believes the
remuneration policy to be appropriate and effective in its
ability to attract and retain the best executives and directors
to run and manage the consolidated entity, as well as
create goal congruence between directors, executives and
shareholders.
Remuneration Committee
The Remuneration Committee of the Board of Directors of
the company is responsible for determining and reviewing
compensation arrangements for directors and the executive
team.
The remuneration policy, setting the terms and conditions
for the executive directors and other senior executives, was
developed by the remuneration committee and approved by
the Board.
The remuneration committee reviews executive packages
annually by reference to the consolidated entity’s
performance, executive performance and comparable
information from industry sectors and other listed companies
in similar industries. The assistance of an external consultant
or remuneration surveys are used where necessary.
Remuneration structure
In accordance with best practice Corporate Governance,
the structure of non-executive director and executive
remuneration is separate and distinct.
non-executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that
provides the company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is
acceptable to shareholders.
Non-executive directors’ fees not exceeding an aggregate of
$250,000 per annum have been approved by the Company in
a general meeting.
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 considers fees paid to non-executive directors of
comparable companies when undertaking the annual review
process.
Each of the non-executive directors receives a fixed fee for
their services as directors. There is no direct link between
remuneration paid to any of the directors and corporate
performance.
executive Remuneration
Remuneration consists of fixed remuneration and variable
remuneration.
11
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
(i) Fixed Remuneration
Fixed remuneration is reviewed annually. The process
consists of a review of relevant comparative remuneration in
the market and internally and, where appropriate, external
advice on policies and practices. The Committee has access
to external, independent advice where necessary.
All executives (except Dr St Pierre) receive a base salary
(which is based on factors such as length of service and
experience), superannuation and fringe benefits. The
performance of executives is measured against criteria agreed
annually with each executive.
Executives receive a superannuation guarantee contribution
required by the government, which is currently 9%, and do
not receive any other retirement benefits.
(ii) Variable Remuneration
All bonuses and incentives are linked to predetermined
performance criteria. The Board may, however, exercise
its discretion in relation to approving incentives and
bonuses, and can recommend changes to the committee’s
recommendations. Any changes must be justified by
reference to measurable performance criteria.
During the year, the Directors used their discretion to approve
a bonus to Ms Dunne for her services to the company.
All remuneration paid to directors and executives is valued at
the cost to the company and expensed. Securities given to
directors and executives are valued as the difference between
the market price of those shares and the amount paid by the
director or executive.
executive officer’s employment Agreements
Ms Dunne was appointed to the role of Managing Director of
Resonance Health Ltd on 23 October 2008. Her employment
agreement provides for a salary of $220,000 pa inclusive of
superannuation and the provision of one months notice for
termination or resignation without cause.
Ms O’Malley was appointed to the role of Company
Secretary of Resonance Health Ltd on 31 August 2007. Her
employment agreement provides for a salary of $75,210 pa
inclusive of superannuation for 22.5 hours per week and the
provision of one months notice for termination or resignation
without cause.
Consultancy services Agreement for executive Director
Dr tim st Pierre
The company has an agreement with The University of
Western Australia (UWA) for consulting services provided
by Dr St Pierre. Under this agreement consulting services
provided for duties of Chief Scientific Officer totalling
$112,767 (2009: $114,872) and a fixed fee for his services as a
director of $40,000 (2009: $40,000) were incurred during the
financial year. These amounts are included in Dr Tim St Pierre’s
remuneration disclosed in the following table.
Details of Remuneration for Year ended 30 June 2010
(this information has been audited)
The remuneration for each director and for the executive
officers of the consolidated entity receiving the highest
remuneration during the year was as follows:
D I R e C t o R s ’ R e P o R t
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Remuneration of directors and executives
Short-term employee benefits
Salary & Fees
Bonus
Non-Executive Directors’ remuneration
$
Dr S Washer
Mr I Anderson1
Dr M Blake
Dr A Walker1
Mr S Panton2
2010
2009
2010
2009
2010
2009
2010
2009
2010
64,220
24,082
-
25,000
36,697
40,520
-
16,667
27,029
$
-
-
-
-
-
-
-
-
-
Post employment benefits
Superannuation
Contributions
$
Termination
Benefits
$
5,780
2,167
-
-
3,303
3,647
-
-
2,432
-
-
-
-
-
-
-
-
-
Equity
Shares
$
-
-
-
-
-
-
-
-
-
Total
Performance
Related
%
$
70,000
26,249
-
25,000
40,000
44,167
-
16,667
29,461
-
-
-
-
-
-
-
-
-
________________________________________________________________________________________________________________________________________________________________________
-
-
-
-
-
-
-
2009
Total
________________________________________________________________________________________________________________________________________________________________________
127,946
139,461
11,515
2010
N/A
-
-
-
Total
________________________________________________________________________________________________________________________________________________________________________
106,269
112,083
5,814
2009
N/A
-
-
-
1 Mr Anderson and Dr Walker resigned as Directors on 26 November 2008. Dr Walker had 300,000 options that were granted
on 13 May 2004. These options had a value per option at grant date of $0.016 and an exercise price of $0.30. These options
expired upon Dr Walker’s resignation.
2 Mr Panton was appointed as a Director on 5 October 2009.
Short-term employee benefits
Salary & Fees
Bonus
Executive Directors’ remuneration
Ms L Dunne3
Dr T St Pierre4
2010
2009
2010
2009
$
201,834
193,005
152,767
154,872
$
-
10,000
-
-
Post employment benefits
Superannuation
Contributions
$
Termination
Benefits
$
Equity
Shares
$
Total
Performance
Related
$ %
18,165
18,270
-
-
-
-
-
-
10,000
10,000
-
-
229,999
231,275
152,767
154,872
4.3
8.6
-
-
________________________________________________________________________________________________________________________________________________________________________
Other Executives’ remuneration
Ms E O’Malley
2010
76,458
-
6,881
-
-
83,339
-
________________________________________________________________________________________________________________________________________________________________________
2009
59,400
-
5,346
-
-
64,746
-
Total
________________________________________________________________________________________________________________________________________________________________________
431,059
466,105
10,000
25,046
2010
N/A
-
-
Total
________________________________________________________________________________________________________________________________________________________________________
407,277
450,893
10,000
23,616
10,000
2009
N/A
-
3 Ms Dunne was given fully vested shares to the value of $10,000 in recognition of her performance to the Company.
4 Dr St Pierre’s remuneration represents directors’ fees earned during the financial year and consulting fees for duties as Chief
Scientific Officer.
12
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Resonance Health Limited Annual Report 2010
Meetings of Directors
The number of meetings of the company’s Board of directors and each Board committee held during the year ended 30 June
2010, and the numbers of meetings attended by each director were:
Director Meetings
Audit Committee Meetings
Remuneration Committee Meetings
Number eligible
To attend
Number
attended
Number eligible
To attend
Number
attended
Number eligible
To attend
Number
attended
Dr M Blake
Ms L Dunne
Mr S Panton
Dr T St Pierre
Dr S Washer
8
8
7
8
8
Corporate Governance
8
8
7
8
8
4
-
2
-
4
4
-
2
-
4
3
2
3
-
3
3
2
3
-
3
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Resonance Health
Limited support and adhere to the principles of corporate governance. The company’s corporate governance statement is
contained in the following section of this annual report.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to
which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those
proceedings. The company was not a party to any such proceedings during the year.
Auditor Independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company with
an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 19
and forms part of this directors’ report for the year ended 30 June 2010.
non-audit services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are outlined in
Note 22 to the financial statements. The directors are satisfied that the provision of non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services
have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of the services
undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110 Code of Ethics for
Professional Accountants issued by the Accounting Professional & Ethical Standards Board.
This report is made in accordance with a resolution of the Board of Directors.
Dr Stewart Washer
Chairman
Perth, Western Australia
Dated this 29 September 2010
13
CORPORATE GOVERNANCE STATEMENT
Resonance Health Limited is committed to protecting and enhancing shareholder value and adopting best practice governance
policies and practices. This Corporate Governance Statement outlines the main Corporate Governance practices that were in place
throughout the financial year, which comply with the Australian Securities Exchange (‘ASX’) Corporate Governance Council published
guidelines as well as its corporate governance principles and recommendations unless otherwise stated. Where a recommendation
has not been followed, this is clearly stated along with an explanation for the departure.
Principle 1
Lay solid foundations for management and oversight
The Board is the governing body of the Company. The Board and the Company act within a statutory framework – principally the
Corporations Act and also the Constitution of the Company. Subject to this statutory framework, the Board has the authority and the
responsibility to perform the functions, determine the policies and control the affairs of Resonance Health Limited.
The Board must ensure that Resonance Health Limited acts in accordance with prudent commercial principles, and satisfies
shareholders – consistent with maximising the Company’s long term value.
The Company has established the functions reserved to the Board. The Board Charter summarises the role, responsibilities, policies
and processes of the Board of Resonance Health Limited and comments on the Board’s approach to corporate governance.
The primary responsibilities of the Board include:
• Charting the direction, strategies and financial objectives of the company and ensuring appropriate resources are
available
Ensuring the preparation of accurate financial reports and statements
• Monitoring the implementation of those policies and strategies and the achievement of those financial objectives
• Monitoring compliance with control and accountability systems, regulatory requirements and ethical standards
•
•
• Appoint and monitor the performance of senior executives
•
Reporting to shareholders and the investment community on the performance and state of the company
Establish proper succession plans for management of the company
The Company has established the functions delegated to senior executives. The Board Charter summarises the role and responsibilities
of the Managing Director and the Company Secretary.
The Board delegates responsibility for day to day management of the Company to the Managing Director. However, the Managing
Director must consult the Board on matters that are sensitive, extraordinary or of a strategic nature. The Company Secretary supports
the effectiveness of the Board.
Separate functions of the Board and management existed and were practised throughout the year.
ASX Corporate Governance Council Principle 1 recommendation 1.2 requires companies to disclose the process for evaluating the
performance of senior executives.
The performance of executives is measured against criteria agreed annually with each executive and is based predominantly on
the achievement of agreed milestones. Performance evaluations were not completed for senior executives prior to the end of the
financial year and the Company has implemented procedures to rectify this for future periods.
Details of matters reserved to the Board and delegated to senior executives are outlined in the Board Charter. A copy of the Board
Charter is publically available on the Company’s website.
The Board complied with the ASX Corporate Governance Council Principle 1 at all times during the year except as noted above.
Principle 2
Structure the Board to add value
The composition of the Board has been determined on the basis of providing the Company with the benefit of a broad range of
technical, commercial and financial skills, combined with an appropriate level of experience at a senior corporate level. Details of
each Director’s skills and experience are set out in the Directors’ report.
The ASX guidelines recommend that a listed company should have a majority of Directors who are independent. The Board did not
comply with the ASX Corporate Governance Council Principle 2 Recommendation 2.1 throughout the year. As a result of director
resignations the Board did not have a majority of independent Directors at all times during the financial year.
A Director is considered independent when the Director does not have any relationship with the Company that would be considered
to affect the independent status as outlined in the ASX Corporate Governance Council Principle 2 Recommendation 2.1.
In the context of director independence, ‘materiality’ is considered from both the company and individual director perspective. The
determination of materiality requires consideration of both quantitative and qualitative elements. An item is presumed to be
14
Resonance Health Limited Annual Report 2010
quantitatively immaterial if it is equal or less than 5% of the appropriate base amount. It is presumed to be material (unless there is
evidence to the contrary) if it is equal or greater than 10% of the appropriate base amount. Qualitative factors considered include
whether a relationship is strategically important, the competitive landscape, the nature of the relationship and the contractual
or other arrangements governing it and other factors which point at the actual ability in question to shape the direction of the
company’s loyalty.
Directors during the financial year were:
• Dr Stewart Washer – Independent – Chairman
• Dr Martin Blake – Independent
• Ms Liza Dunne – Executive – Not independent – Managing Director
• Mr Simon Panton – Not independent – substantial shareholder (appointed 5 October 2009)
• Dr Tim St Pierre – Executive – Not independent – Chief Scientific Officer
A description of the skills and experience of each director and their period of office is disclosed in the Directors’ Report. The ASX
Corporate Governance Council Principle 2 Recommendation 2.2 recommends that the Chairman should be an independent director.
The role of Chairman was performed by an independent director at all times during the financial year. The ASX Corporate Governance
Council Principle 2 Recommendation 2.3 recommends that the roles of Chairman and Managing Director be exercised by different
individuals. The company complied with this recommendation at all times during the financial year.
The roles of Chairman and Managing Director are exercised by different individuals, providing for clear division of responsibility at the
head of the company. Their roles and responsibilities, and the division of responsibilities between them, are clearly understood and
there is regular communication between them.
Directors are subject to re-election by rotation at annual general meetings as stipulated in the Corporations Act and the Company’s
Constitution. There is no maximum term for non-executive director appointments. Newly elected Directors must seek re-election at
the first general meeting of shareholders following their appointment.
The remuneration of the Directors is determined by the Nomination and Remuneration Committee. Further information and the
components of remuneration for Directors are set out in the Directors’ Report.
ASX Corporate Governance Council Principle 2.4 recommends that the Nomination Committee should consist of a majority of
independent Directors, be chaired by an independent Director and have at least three members.
The members of the Nomination and Remuneration Committee during the financial year were:
• Dr Stewart Washer (Chairman) - Independent
• Dr Martin Blake - Independent
• Ms Liza Dunne – Not Independent (resigned 24 March 2010)
• Mr Simon Panton – Not Independent (appointed 5 October 2009)
Ms Dunne resigned from the Nomination and Remuneration Committee during the financial year as best practice recommends the
Nomination and Remuneration Committee be comprised entirely of non-executive directors. The number of meetings attended by
each member of the Nomination and Remuneration Committee are detailed in the Directors’ Report.
ASX Corporate Governance Council Principle 2.5 recommends that the performance of the Board should be reviewed regularly against
appropriate measures. The Company does not have a formal process for evaluating the performance of the Board, its Committees
or individual Directors. Accordingly, there was no formal evaluation of the Board, its Committees or individuals Directors during the
reporting period.
The Company has a procedure in place for Directors to take independent professional advice at the expense of the Company.
Prior to the appointment of a new director the Nomination and Remuneration Committee assesses the skills represented on the
Board by the non-executive Directors and determines whether those skills meet the skills identified as required. The Committee
will then implement a process to identify suitable candidates for appointment. The Committee makes recommendations to the
Board on candidates it considers appropriate for appointment. Induction procedures are in place to ensure new Directors are able
to participate fully and actively in Board decision-making at the earliest opportunity. Directors have access to continuing education
and are encouraged to update and enhance their skills and knowledge. Directors meet regularly to discuss the performance of the
company and to attend to regulatory requirements. The company secretary distributes information before each Board meeting to
enable Directors to discharge their duties effectively.
The Company’s Constitution requires a director of the Company to not hold office without re-election past the third annual general
meeting following the director’s appointment or three years, whichever is longer.
The Company discloses its Nomination and Remuneration Committee Charter on the Company’s website.
The Board complied with the ASX Corporate Governance Council Principle 2 at all times during the year except as noted above.
15
CORPORATE GOVERNANCE STATEMENT
Principle 3
Promote ethical and responsible decision-making
The Board places great emphasis on ethics and integrity in all its business dealings.
In regards to Principle 3.1 the Board considers the business practices and ethics exercised by individual Board members and key
executives to be of the highest standards.
The Company has a code of conduct as to the:
• practices necessary to maintain confidence in the company’s integrity;
• practices necessary to take into account their legal obligations and the expectations of shareholders; and
•
responsibility and accountability of individuals for reporting and investigating reports of unethical practices.
These practices are outlined in the Company’s Board Charter, Communication Policy, Continuous Disclosure Charter, Share Trading
Policy, Audit and Risk Charter and Nomination and Remuneration Charter. These documents are disclosed on the Company’s
website.
Trading in the company’s shares
The company’s policy restricts Directors and employees from acting on material information until it has been released to the market
and adequate time has been given for this to be reflected in the securities’ prices. Statutory provisions of the Corporations Act dealing
with insider trading have been strictly complied with.
The Board complied with the ASX Corporate Governance Council Principle 3 Recommendations at all times during the year.
The Company’s Share Trading Policy is disclosed on the Company’s website.
Principle 4
Safeguard integrity in financial reporting
The Board has established an Audit and Risk Committee that operates in accordance with the Company’s Audit and Risk Charter.
It is the Board’s responsibility to ensure that an effective internal control framework exists within the entity. This includes internal
controls to deal with both the effectiveness and efficiency of significant business processes, including the safeguarding of assets, the
maintenance of proper accounting records, and the reliability of financial information. The Board has delegated responsibility for the
establishment and framework of internal controls and ethical standards for the management of the consolidated entity to the Audit
Committee.
The Committee also provides the Board with additional assurance regarding the reliability of financial information for inclusion in the
financial reports. All members of the Audit Committee are independent non-executive Directors.
ASX Corporate Governance Council Principle 4.2 recommends that the Audit Committee should consist only of non-executive with
a majority of independent Directors, be chaired by an independent director who is not chair of the Board and have at least three
members.
The members of the Audit and Risk Committee during the financial year were:
• Dr Martin Blake (Chairman) – Independent
• Mr Simon Panton – Not Independent (appointed 5 October 2009)
• Dr Stewart Washer - Independent
The qualifications of each member of the Audit and Risk Committee and the number of meetings attended are detailed in the
Directors’ Report.
The Audit and Risk Committee generally invites the Managing Director, Company Secretary, and external auditors to attend
meetings.
The Company discloses its Audit and Risk Committee Charter on the Company’s website.
The Company’s external auditors have a policy for the rotation of audit engagement partners. A new Audit Partner was assigned to
the Company with effect for the previous financial year in line with this policy.
The Board complied with the ASX Corporate Governance Council Principle 4 Recommendations at all times during the year.
16
Resonance Health Limited Annual Report 2010
Principle 5
Make timely and balanced disclosure
The Company complies with all disclosure requirements to ensure that Resonance Health manages the disclosure of price sensitive
information effectively and in accordance with the requirements as set out by regulatory bodies. All market disclosures are approved
by the Board. The Managing Director and Company Secretary are authorised to communicate with shareholders and the market in
relation to Board approved disclosures.
The Company has a written policy designed to ensure compliance with ASX Listing Rule disclosures and accountability at a senior
executive level for that compliance. The details of this policy are outlined in the Company’s Continuous Disclosure Charter which is
displayed on the Company’s website.
All announcements made to the ASX are placed on the Company’s web site immediately after public release.
The Board complied with the ASX Corporate Governance Council Principle 5 Recommendations at all times during the year.
Principle 6
Respect the rights of shareholders
The Company has a Communications Policy that details the Company’s strategy to communicate with shareholders and actively
promote shareholder involvement in the Company. It aims to continue to increase and improve the information available to
shareholders on its website. All company announcements, presentations to analysts and other significant briefings are posted on the
company’s website after release to the Australian Securities Exchange.
The Board complied with the ASX Corporate Governance Council Principle 6 Recommendations at all times during the year.
Principle 7
Recognise and manage risk
The Board oversees the establishment, implementation and ongoing review of the Company’s risk management and internal control
system. Recommendation 7.1 requires that the company has a formal risk management policy and internal compliance and control
system. Resonance Health Limited, through its operating subsidiary Resonance Health Analysis Services Pty Ltd, maintained a Quality
Management System (QMS) to international standards ISO9001:2008 and ISO13485:2003 which encompass formal risk analysis
processes.
Recommendation 7.2 requires implementation and review of the company’s risk management and internal control system. The
Company did not have a separately established risk committee. However, the duties and responsibilities typically delegated to such
a committee are expressly included in the role of the Audit and Risk Committee and the main Board. The Board does not believe that
any marked efficiencies or enhancements would be achieved by the creation of a separate risk committee.
In addition, the QMS requires the appointment of a Management Representative that reports directly to the Board of Directors. The
company also has in place classes of insurance at levels which, in the reasonable opinion of the Directors, are appropriate for it size
and operations. Management has reported the effectiveness of the Company’s management of its material business risks to the
Board during the reporting period.
In accordance with Recommendation 7.3 the Managing Director and the Chief Financial Officer provide written statements at each
reporting period regarding the integrity of the financial statements and the company’s risk management and internal compliance
and control systems.
The Company’s Audit and Risk Charter is displayed on the Company’s website.
The Board complied with the ASX Corporate Governance Council Principle 7 Recommendations at all times during the year.
The Company’s external auditor is invited to attend the annual general meeting and questions from shareholders regarding the
conduct of the audit and the preparation and content of the auditor’s report are welcomed.
The Company’s Communication Policy is displayed on the Company’s website.
The Board complied with the ASX Corporate Governance Council Principle 7 Recommendations at all times during the year.
17
CORPORATE GOVERNANCE STATEMENT
Principle 8
Remunerate fairly and responsibly
The Board has a Nomination and Remuneration Committee. Members of the Committee are outlined under Principle 2 above.
ASX Corporate Governance Council Principles recommend that the Remuneration Committee should consist of a majority of
independent Directors, be chaired by an independent director and have at least three members. Ms Dunne, an executive director,
resigned from the Nomination and Remuneration Committee on 24 March 2010. From this date the Company complied with this
recommendation.
The Nomination and Remuneration Committee regularly review the level and composition of remuneration of non-executive Directors,
executive Directors and senior management with regards to industry best practice, company and individual performance.
Each of the non-executive Directors receives a fixed fee for their services as Directors. Non-executive Directors’ fees not exceeding
an aggregate of $250,000 per annum have been approved by the Company in a general meeting. There is no direct link between
remuneration paid to any of the non-executive Directors and corporate performance. There are no schemes for retirement benefits
other than superannuation for non-executive Directors.
The Company pays fees to the University of Western Australia for services provided by Dr St Pierre who is an executive director of the
Company. This comprises a fixed fee for his services as a director and a daily fee for his services as Chief Scientific Officer.
All executive employees receive a base salary, superannuation and fringe benefits. The Company does not have a share or option
incentive plan. Accordingly, executive employees do not receive any equity based remuneration unless specifically approved on a
case by case basis at a general meeting.
The members of the Nomination and Remuneration Committee are outlined in Principle 2. Their attendance at Nomination and
Remuneration Committee meetings is detailed in the Directors’ Report. Director disclosure requirements are detailed in the notes to
the financial statements.
The Nomination and Remuneration Committee Charter is displayed on the Company’s website.
The Board complied with the ASX Corporate Governance Council Principle 8 Recommendations at all times during the year except
as detailed above.
18
Resonance Health Limited Annual Report 2010
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Resonance Health Limited for the year ended 30 June 2010,
I declare that to the best of my knowledge and belief, there have been no contraventions of:
a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Resonance Health Limited.
Perth, Western Australia
29 September 2010
N G NEILL
Partner, HLB Mann Judd
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers.
19
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2010
Revenue
Other income
Employee benefits expense
Consulting and professional services
Research and development
Depreciation
Marketing and travel
Statutory and compliance
Foreign exchange loss
Other expenses
(Loss) / profit before income tax benefit
Income tax benefit
Consolidated
2010
$
2009
$
2,006,272
2,384,451
-
(1,265,675)
(72,857)
(111,360)
(24,582)
(334,073)
(130,572)
(16,380)
(282,962)
(232,189)
129,854
6,510
(979,928)
(132,855)
(152,894)
(26,033)
(159,764)
(129,340)
-
(242,014)
568,133
48,918
Notes
2(a)
2(b)
2(c)
3
Net (loss) / profit for the year attributable to owners of the parent
(102,335)
617,051
Other comprehensive income
Exchange differences on translation of foreign operations
Other comprehensive (loss) / income for the year, net of tax
Total comprehensive (loss) / income for the year attributable to owners
of the parent
(1,419)
(1,419)
79
79
(103,754)
617,130
Basic earnings / (loss) per share (cents per share)
5
(0.0)
0.2
The accompanying notes form part of these financial statements.
20
Resonance Health Limited Annual Report 2010
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
Notes
Consolidated
2010
$
2009
$
7
8
9
10
11
12
13
14
2,133,884
2,644,938
789,947
3,004
97,011
712,317
2,651
77,901
3,023,846
3,437,807
62,387
642,766
705,153
61,103
190,042
251,145
3,728,999
3,688,952
494,269
26,225
520,494
361,181
25,512
386,693
520,494
386,693
3,208,505
3,302,259
15(a)
67,524,039
67,514,039
81,989
83,408
16
(64,397,523)
(64,295,188)
3,208,505
3,302,259
Current Assets
Cash and cash equivalents
Trade and other receivables
Available for sale investments
Other
Total Current Assets
Non-Current Assets
Property, plant and equipment
Intangible assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Other
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
The accompanying notes form part of these financial statements.
21
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010
Consolidated
Note
2010
$
2009
$
Inflows/(Outflows)
1,887,772
2,027,127
(1,951,285)
(1,623,103)
76,432
66,888
79,807
(46,478)
(544,383)
(590,861)
(511,054)
2,644,938
2,133,884
-
130,710
534,734
(32,290)
(239,376)
(271,666)
263,068
2,381,870
2,644,938
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Grants received
Interest received
Net cash provided by / (used in) operating activities
7(i)
Cash flows from investing activities
Payments for plant and equipment
Payments for research and development
Net cash provided by / (used in) investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of the period
7
The accompanying notes form part of these financial statements.
22
Resonance Health Limited Annual Report 2010
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2010
Consolidated
Issued
Capital
$
Accumulated
Losses
$
Foreign
Currency
Translation
Reserve
$
Option Reserve
$
Total Equity
$
Balance at 1 July 2008
67,504,039
(64,912,239)
17,045
66,284
2,675,129
Profit for the year
Exchange differences arising on translation of
foreign operations
Total comprehensive income for the year
-
-
-
617,051
-
617,051
Shares issued during the year
10,000
-
-
79
79
-
-
-
-
-
617,051
79
617,130
10,000
Balance at 30 June 2009
67,514,039 (64,295,188)
17,124
66,284
3,302,259
(Loss) for the year
Exchange differences arising on translation of
foreign operations
Total comprehensive (loss) for the year
-
-
-
(102,335)
-
-
(1,419)
(102,335)
(1,419)
Shares issued during the year
10,000
-
-
-
-
-
-
(102,335)
(1,419)
(103,754)
10,000
Balance at 30 June 2010
67,524,039 (64,397,523)
15,705
66,284
3,208,505
The accompanying notes form part of these financial statements.
23
notes to the financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: Statement of significant accounting policies
(a) Basis of preparation
The financial report is a general purpose financial report which has been prepared in accordance with the requirements of the
Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law.
The financial report has been prepared on a historical cost basis, except for available-for-sale investments, which have been
measured at fair value. Cost is based on the fair values of the consideration given in exchange for assets.
The financial report is presented in Australian dollars. The company is a listed public company, incorporated and operating in
Australia and the United States of America. The entity’s principal activities are the development of magnetic resonance imaging
related technology, specifically the provision of non-invasive imaging tests for use by health care professions.
The Group has applied the revised AASB 101 Presentation of Financial Statements which became effective on 1 January 2009. The
revised standard requires the separate presentation of a statement of comprehensive income and a statement of changes in
equity. All non-owner changes in equity must now be presented in the statement of comprehensive income. As a consequence
the Group had to change the presentation of its financial statements. Comparative information has been re-presented so that it
is also in conformity with the revised standard.
(b) Adoption of new and revised standards
In the year ended 30 June 2010, the Group has reviewed all of the new and revised Standards and Interpretations issued by the
AASB that are relevant to its operations and effective for the current annual reporting period. During the year, certain accounting
policies have changed as a result of new or revised accounting standards which became operative for the annual reporting
period commencing on 1 July 2009.
The affected policies and standards are:
• Segment reporting – new AASB 8 Operating Segments
• Business combinations – revised AASB 3 Business Combinations
• Financial instruments – revised AASB 7 Financial Instruments: Disclosures
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year
ended 30 June 2010. As a result of this review the Directors have determined that there is no impact, material or otherwise, of
the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting
policies.
(c) Statement of compliance
The financial report was authorised for issue on 29 September 2010.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial
Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and
notes thereto, complies with International Financial Reporting Standards (IFRS).
(d) Basis of consolidation
The consolidated financial statements comprise the separate financial statements of Resonance Health Limited (“company” or
“parent entity”) and its subsidiaries as at 30 June each year (“the Group”). Control is achieved where the company has the power
to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit
and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of
the Group. Control exists where the company has the power to govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
Business combinations have been accounted for using the acquisition method of accounting (refer Note 1(ab)).
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are
presented separately in the statement of comprehensive income and within equity in the consolidated statement of financial
position. Losses are attributed to the non-controlling interest even if that results in a deficit balance.
24
Resonance Health Limited Annual Report 2010
NOTE 1: Statement of significant accounting policies (cont.)
(e) Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which
the estimate is revised if it affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods.
Impairment of intangibles with indefinite useful lives
The Group determines whether intangibles with indefinite useful lives are impaired at least on an annual basis. This requires
an estimation of the recoverable amount of the cash generating units to which the intangibles with indefinite useful lives are
allocated. The assumptions used in this estimation of recoverable amount and the carrying amount of intangibles with indefinite
useful lives are discussed in Note 12.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments
at the date at which they are granted.
The Group measures the cost of cash-settled share-based payments at fair value at the grant date.
(f) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors of Resonance Health Limited.
Change in accounting policy
The Group has adopted AASB 8 Operating Segments from 1 July 2009. AASB 9 replaces AASB 114 Segment Reporting. The new
standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for
internal reporting purposes. This has resulted in a change in the number of reportable segments presented by the Group as
operating segments are reported in a manner that is consistent with internal reporting provided to the chief operating decision
maker.
(g) Foreign currency translation
Both the functional and presentation currency of Resonance Health Limited and its Australian subsidiaries is Australian dollars.
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange
ruling at the statement of financial position date.
All exchange differences in the consolidated financial report are taken to profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as
at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date the fair value
was determined.
The functional currency of the foreign operation Resonance USA Inc. is United States dollars (US$). As at the reporting date the
assets and liabilities of this subsidiary are translated into the presentation currency of Resonance Health Limited at the rate of
exchange ruling at the statement of financial position date and the statement of comprehensive income is translated at the
average exchange rate for the year. The exchange differences arising on the translation are taken directly to a separate component
recognised in the foreign currency translation reserve in equity. On disposal of a foreign entity, the deferred cumulative amount
recognised in equity relating to that particular foreign operation is recognised in profit or loss.
(h) Revenue recognition
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
(i) Sale of Goods
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the costs
incurred or to be incurred in respect of the transaction can be measured reliably. Risks and rewards of ownership are considered
passed to the buyer at the time of delivery of the goods to the customer.
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: Statement of significant accounting policies (cont.)
(h) Revenue recognition (cont.)
(ii) Rendering of services
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
(iii) Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
(i) Borrowing costs
Borrowing costs are recognised as an expense when incurred.
(j) Lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards if ownership
to the lessee. All other leases are classified as operating leases.
Assets held under finance lease are initially recognised at their fair value or, if lower, the present value of the minimum lease
payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the statement of
financial position as a finance lease obligation.
Lease payments are apportioned between finance charges and the reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are charged directly against income unless they are
directly attributable to qualifying assets, in which case they are capitalised in accordance with the general policy on borrowing
costs.
Finance lease assets are depreciated on a straight line basis over the estimated useful life of the asset.
Operating lease payments, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased
items, are recognised as an expense on a straight line basis over the lease term, except where another systematic basis is more
representative of the time pattern in which economic benefits from the lease asset are consumed.
(k) Income tax
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary difference
and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantially enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures,
and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit, nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will
reverse in the foreseeable future and taxable profit will be available against with the temporary difference can be utilised.
26
Resonance Health Limited Annual Report 2010
NOTE 1: Statement of significant accounting policies (cont.)
(k) Income tax (cont.)
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it is has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance
date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
(l) Other taxes
Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST) except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the
GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
statement of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash
flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(m) Impairment of assets
The Group assesses at each balance date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets
and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as
part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to
continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the
asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each balance date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognised impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’srecoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset
is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After
such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any
residual value, on a systematic basis over its remaining useful life.
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: Statement of significant accounting policies (cont.)
(n) Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within
borrowings in current liabilities in the statement of financial position.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
(o) Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised cost using the
effective interest rate method, less any allowance for impairment. Trade receivables are generally due for settlement within
periods ranging from 14 days to 90 days.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off by
reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Group will
not be able to collect all amounts due according to the original contractual terms. Factors considered by the Group in making
this determination include known significant financial difficulties of the debtor, review of financial information and significant
delinquency in making contractual payments to the Group. The impairment allowance is set equal to the difference between
the carrying amount of the receivable and the present value of estimated future cash flows, discounted at the original effective
interest rate. Where receivables are short-term discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When a
trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is
written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other
expenses in the statement of comprehensive income.
(p) Financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial
assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale investments,
as appropriate. Where financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not
at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial
assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.
All regular way purchases and sales of financial assets are recognised on the trade date, i.e. the date that the Group commits to
purchase the asset. Regular way purchases or sales of financial assets under contracts that require delivery of the assets within
the period established generally by regulation or convention in the marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit or loss’.
Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Gains or losses on
investments held for trading are recognised in profit or loss.
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when
the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period
are not included in this classification.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets that are not quoted in an active market. Gains and losses are recognised
in the profit or loss when the loans and receivables are derecognised or impaired.
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-sale or are not
classified as any of the three preceding categories. After initial recognition available-for-sale investments are measured at fair
value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the
investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised
in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market
bid prices at the close of business on the balance date. For investments with no active market, fair value is determined using
valuation techniques. Such techniques include using recent arm’s length market transactions; reference to the current market
value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models.
28
Resonance Health Limited Annual Report 2010
NOTE 1: Statement of significant accounting policies (cont.)
(q)
Derecognition of financial assets and liabilities
(i) Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised
when:
• the rights to receive cash flows from the asset have expired;
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without
material delay to a third party under a ‘pass-through’ arrangement; or
• the Group has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially
all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s
continuing involvement in the asset.
(ii) Financial liabilities
A financial liability is recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
(r) Impairment of financial assets
The Group assess at each balance date whether a financial asset or group of financial assets is impaired.
(i) Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the
amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future
cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest
rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or
through use of an allowance account. The amount of the loss is recognised in profit or loss.
The group first assesses whether objective evidence of impairment exists individually for financial assets that are individually
significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no
objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is
included in a group of financial assets with similar credit risk characteristics and that group of financial asset is collectively
assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues
to be recognised are not included in a collective assessment of impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent
reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying value of the asset does not exceed its
amortised cost at the reversal date.
(ii) Financial assets carried at cost
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at
fair value (because its fair value cannot be reliably measured), the amount of the loss is measured as the difference between the
asset’s carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for
a similar financial asset.
(iii) Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the difference between its
cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in
profit or loss, is transferred from equity to the income statement. Reversals of impairment losses for equity instruments classified
as available-for-sale are not recognised in profit. Reversals of impairment losses for debt instruments are reversed through profit
or loss if the increase in an instrument’s fair value can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss.
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: Statement of significant accounting policies (cont.)
(s) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment
3 – 5 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year
end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with recoverable amount being
estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the cash-generating
unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable amount.
The asset or cash-generating unit is then written down to its recoverable amount. Impairment losses for plant and equipment
are recognised in the income statement.
(ii) Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from
its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(t) Intangible assets
Internally generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred. Where no internally-generated
intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred.
An intangible asset arising from development expenditure on an internal project is recognised if, and only if, all of the following
has been demonstrated:
• The technical feasibility of completing the intangible asset so that it will be available for use or sale;
• The intention to complete the intangible asset and use or sell it;
• How the intangible asset will generate probable future economic benefits;
• The availability of adequate technical, financial and other resources to complete development and to use or sell the intangible
asset; and
• The ability to measure reliably the expenditure attributable to the intangible asset during its development.
30
Resonance Health Limited Annual Report 2010
NOTE 1: Statement of significant accounting policies (cont.)
(t) Intangible assets (cont.)
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date
when the intangible asset first meets the recognition criteria listed above.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and
accumulated impairment losses. The amortisation period is the period of expected benefits from the related project.
(u) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments
in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of
recognition.
(v) Interest-bearing loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using the effective interest method.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at
least 12 months after the reporting period.
(w) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. Provisions are not recognised for future operating losses.
Provisions are measured at the present value or management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
(x) Employee benefits
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be
settled within 12 months of the balance date are recognised in sundry creditors in respect of employees’ services up to the balance
date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick
leave are recognised when the leave is taken and are measured at the rates paid or payable.
(y) Share-based payment transactions
Equity-settled transactions
The Group has previously had agreements where payment for services rendered are settled by the issuance of fully paid shares
or options in the company.
The cost of these equity-settled transactions is measured by reference to the fair value of the equity instruments at the date
they are granted and is recognised, together with a corresponding increase in equity, over the period in which the service is
provided.
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: Statement of significant accounting policies (cont.)
(z) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
(aa)Earnings per share (“EPS”)
Basic EPS is calculated as net profit/loss attributable to members of the parent, adjusted to exclude any costs of servicing equity
(other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for
any bonus element.
Diluted EPS is calculated as net profit/loss attributable to members of the parent, adjusted for:
• costs of servicing equity (other than dividends) and preference share dividends;
• the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
(ab) Business combinations
The acquisition method of accounting is used to account for all business combinations, including business combinations
involving entities or business under common control, regardless of whether equity instruments or other assets are acquired.
The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities
incurred and the equity interests issued by the group. The consideration transferred also includes the fair value of any contingent
consideration arrangements and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are
expenses as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the
group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate
share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition–date
fair value of any previous equity interest in the acquiree over the fair value of the group’s share of the net identifiable assets
acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary
acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a
bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present
value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a
similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified as either equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
Change in accounting policy
A revised AASB 3 Business Combinations became operative on 1 July 2009. While the revised standard continues to apply the
acquisition method to business combinations, there have been some significant changes.
All purchase consideration is now recorded at fair value at the acquisition date. Contingent payments classified as debt are
subsequently remeasured through profit or loss. Under the group’s previous policy, contingent payments were only recognised
when the payments were probable and could be measured reliably and were accounted for as an adjustment to the cost of
acquisition.
Acquisition-related costs are expensed as incurred. Previously, there were recognised as part of the cost of acquisition and
therefore included in goodwill.
Non-controlling interests in an acquiree are now recognised either at fair value or at the non-controlling interest’s proportionate
share of the aquiree’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis. Under the previous
policy, the non-controlling interest was always recognised at its share of the acquiree’s net identifiable assets.
If the group recognised previous acquired deferred tax assets after the initial acquisition accounting is completed there will no
longer be any adjustment to goodwill. As a consequence, the recognition of the deferred tax asset will increase the group’s net
profit after tax.
32
Note 2: Revenues and expenses
(a)
Revenue
Liver Scan income
Grants received
Interest received
(b)
Other income
Foreign exchange gain
(c)
Expenses
Depreciation of non-current assets
Impairment of trade receivables
Impairment of property, plant and equipment
Impairment of available-for-sale investments
Rental expense on operating leases
Resonance Health Limited Annual Report 2010
Consolidated
2010
$
2009
$
1,837,795
2,259,191
76,432
92,045
2,006,272
-
125,260
2,384,451
-
6,510
24,582
33,556
328
(353)
59,534
26,033
-
351
(884)
56,699
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Note 3: Income tax benefit
Income tax recognised in profit or loss
The major components of tax benefit are:
Adjustments recognised in the current year in relation to the current tax of prior
years – R&D tax offset
The prima facie income tax benefit on pre-tax accounting profit/(loss) from
operations reconciles to the income tax benefit in the financial statements as
follows:
Accounting profit/(loss) before income tax
Income tax calculated at 30%
Non deductible expenses
Unused tax losses not recognised as deferred tax assets
Benefit of tax losses recognised for the first time
Non assessable income
Benefit of temporary differences recognised for the first time
Other deferred tax assets and tax liabilities not recognised
R & D tax concessions
Over/(under) provision for income tax in prior year
Tax refund receivable (R&D tax offset)
Income tax benefit reported in the income statement
Unrecognised deferred tax balances
The following deferred tax assets and liabilities have not been brought to account:
Deferred tax assets:
Losses available for offset against future taxable income - revenue
Temporary differences – impairment of investments in subsidiaries
Other temporary differences
Deferred tax liabilities:
Capitalised research and development costs
Temporary differences
Consolidated
2010
$
2009
$
129,854
48,918
(232,189)
(69,656)
1,343
381,872
-
(11,178)
1,295
(489,500)
185,824
-
129,854
129,854
2,240,430
1,624
339,694
2,581,748
190,251
9,437
199,688
568,133
170,440
1,238
825,475
(974,129)
-
-
261,174
74,078
(358,276)
48,918
48,918
1,858,558
1,518
733,381
2,593,457
55,717
1,890
57,607
Income tax expense not recognised directly in equity
Share issue costs
152,765
152,765
Note 4: Segment reporting
Segment information
The chief operating decision maker is considered to be the Company’s Board of Directors. The Group’s operating segments are
determined by differences in the type of service provided. The financial results of the Group’s operating segments are reviewed by
the Board of Directors on a quarterly basis.
34
Resonance Health Limited Annual Report 2010
Note 4: Segment reporting (cont.)
Business segments
The following table presents revenue and profit/loss information and certain asset and liability information regarding business
segments for the year ended 30 June 2010.
Segment revenue
Sales to external customers
Grant revenue
Interest revenue
Total segment revenue
FerriScan®
Research and
Development
Corporate
Total
$
$
$
$
1,837,795
76,432
-
1,914,227
-
-
-
-
-
-
92,045
92,045
1,837,795
76,432
92,045
2,006,272
Segment profit/(loss)
266,800
18,494
(387,629)
(102,335)
Other segment information included in profit/(loss)
Depreciation
Income tax benefit
Segment assets
Segment liabilities
Other segment cash flow information:
24,582
-
-
129,854
-
-
24,582
129,854
896,697
277,617
642,766
172,827
2,189,536
3,728,999
70,050
520,494
Net cash inflow / (outflow) from operating activities
Net cash (outflow) from investing activities
495,849
(46,478)
-
(416,042)
79,807
(544,383)
-
(590,861)
The following table presents revenue and profit/loss information and certain asset and liability information regarding business
segments for the year ended 30 June 2009.
Segment revenue
Sales to external customers
Interest revenue
Total segment revenue
2,259,191
-
2,259,191
-
-
-
-
2,259,191
125,260
125,260
125,260
2,384,451
Segment profit/(loss)
1,348,588
(103,976)
(627,561)
617,051
Other segment information included in profit/(loss)
Depreciation
Income tax benefit
Segment assets
Segment liabilities
26,033
-
-
48,918
-
-
26,033
48,918
852,482
164,443
190,042
153,126
2,646,428
3,688,952
69,124
386,693
Other segment cash flow information:
Net cash inflow / (outflow) from operating activities
1,045,894
-
(511,160)
534,734
Net cash (outflow) from investing activities
(32,290)
(239,376)
-
(271,666)
The consolidated entity derived 71% (2009: 78%) of its external customer sales revenue from one major customer.
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Note 5: Earnings per share
Consolidated
2010
$
2009
$
Basic profit / (loss) per share (cents)
(0.0)
0.2
(a) Earnings / (loss) used in the calculation of basic and dilutive earnings per share
(102,335)
617,051
(b) Weighted average number of ordinary shares for the purposes of basic loss per share
360,246,883
359,575,239
2010
Number
2009
Number
There are no potential ordinary shares on issue.
Note 6: Dividends
No dividend was paid or declared for the current or previous financial year.
Note 7: Cash and cash equivalents
Deposits at call
Term deposits
Consolidated
2010
$
2009
$
633,884
494,938
1,500,000 2,150,000
2,133,884
2,644,938
Deposits at call earn interest at floating rates based on daily bank deposit rates.
Term deposits are made for varying periods depending on the immediate cash requirements of the Group and earn interest at the
respective term deposit rates.
36
Resonance Health Limited Annual Report 2010
Consolidated
2010
$
2009
$
(102,335)
617,051
24,582
10,000
33,556
328
(353)
26,033
10,000
-
351
(884)
544,383
239,376
(106,960)
(19,110)
(452,724)
149,146
713
(1,419)
79,807
(2,178)
-
(2,178)
1,864
18,136
20,000
20,000
38,120
58,120
(301,403)
18,820
(190,042)
89,841
25,512
79
534,734
(8,444)
-
(8,444)
4,719
15,281
20,000
20,000
38,120
58,120
Note 7: Cash and cash equivalents (cont.)
(i) Reconciliation of profit / (loss) for the year to net cash flows from
operating activities
Profit/(loss) for the year
Non-cash flows in profit / (loss):
Depreciation
Share issue
Impairment of trade receivables
Impairment of property, plant and equipment
Impairment of investments
Reclassification to investing activities:
Research and development
Changes in net assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in other assets
(Increase)/decrease in capitalised development costs
Increase/(decrease) in trade creditors and borrowings
Increase/(decrease) in other liabilities
Increase/(decrease) in translation reserve
Net cash provided by operating activities
(ii) Financing facilities
Unsecured credit card:
Amount used
Amount unused
Secured credit card:
Amount used
Amount unused
(iii) Cash balances not available for use
Security deposits:
Credit card
Lease premises
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Consolidated
Note 8: Trade and other receivables
Current
Trade receivables
Allowance for impairment
Other receivables
The average credit period on sales of goods and rendering of services is 14 to 90 days.
Aging of past due but not impaired
Up to 30 days
60-90 days
90-120 days
120+ days
Movement in the allowance for impairment
Balance at the beginning of the year
Impairment losses recognised on receivables
Balance at the end of the year
2010
$
526,315
(33,556)
492,759
297,188
789,947
6,602
11,768
539
8,096
27,005
-
33,556
33,556
2009
$
593,379
-
593,379
118,938
712,317
194,831
35,264
1,748
14,565
246,408
-
-
-
In determining the recoverability of a trade receivable, the Group considers any changes in the credit quality of the trade receivable
from the date credit was granted up to the reporting date. An allowance has been made for estimated irrecoverable trade receivable
amounts arising from the past rendering of services in relation to a specific debtor amount. The concentration of credit risk is
significant with 72% (2009: 81%) of trade receivables relating to one major customer. The remaining trade receivables relate to
a large and unrelated customer base. The directors believe no further credit provision is required in excess of the allowance for
impairment.
Note 9: Available for sale investments
Current – Carried at fair value
Shares in listed corporations
Less: Impairment
Note 10: Other assets
Current
Prepayments
Security deposits
14,337
(11,333)
3,004
38,891
58,120
97,011
14,337
(11,686)
2,651
19,781
58,120
77,901
38
Resonance Health Limited Annual Report 2010
Consolidated
Note 11: Property, plant and equipment
Fixtures and equipment
At cost
Less: Accumulated depreciation
Total property, plant and equipment
Reconciliation
2010
$
227,575
(165,188)
62,387
Reconciliation of the carrying amount of each class of property, plant and equipment is set out below:
Fixtures and equipment
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Carrying amount at the end of the year
NOTE 12: Intangible assets
61,103
26,194
(328)
(24,582)
62,387
2009
$
242,355
(181,252)
61,103
40,108
47,379
(351)
(26,033)
61,103
Development expenditure
642,766
190,042
Development expenditure relates to costs incurred in developing MRI image analysis tools for the diagnosis and clinical management
of human disease.
During the current financial year this development has related to a faster version of FerriScan®, a cardiac iron assessment MRI tool and
the next stage of development of an MRI-based liver fibrosis and liver fat assessment tool.
The recoupment of development expenditure is dependent on the successful development and commercialisation or sale of the
technology developed. The directors are required to assess at each reporting date whether there is an indication that an asset may
be impaired. If any such indication exists an estimate is made of the asset’s recoverable amount. Where the asset’s carrying value
exceeds the estimated recoverable amount a provision for impairment is recognised.
In making this assessment the directors had regard to the size of the liver fibrosis and liver fat markets, competing products, experience
gained with the FerriScan® technology, the likely period over which these revenues are expected to be generated and the likelihood
of any technological obsolescence.
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Note 13: Trade and other payables
Current
Trade payables (i)
Related party payables (ii)
Sundry creditors and accruals
Consolidated
2010
$
126,966
132,183
235,120
494,269
2009
$
70,167
153,476
137,538
361,181
(i) Trade payables are non-interest bearing and are normally settled on 30 day terms.
(ii) For terms and conditions relating to related party payables refer to Note 19.
Information regarding the effective interest rate and credit risk of current payables is set out in Note 17.
Note 14: Other liabilities
Current
Unearned income
26,225
25,512
Note 15: Issued Capital
2010
2009
Number
$
Number
$
(a) Issued and paid up capital
360,431,775
67,524,039
363,065,005
67,514,039
Movements during the period
Ordinary shares
Number of shares
Issue Price
Balance at the beginning of the financial year
360,065,005
Shares issued to Managing Director
Balance at the end of the financial year
Incentive shares
Balance at the beginning of the financial year
Expiration of Class G incentive shares
Balance at the end of the financial year
Total
(b) Shares issued to Managing Director
366,770
360,431,775
3,000,000
(3,000,000)
-
360,431,775
$0.02726
$0.000001
$
67,514,023
10,000
67,524,023
16
-
16
67,524,039
The issue price of shares issued to the Managing Director was equal to the volume weighted average price of the Company’s shares
as traded on ASX over the 20 trading days prior to the date of issue of the shares.
(c) Terms and conditions of incentive shares
3,000,000 unquoted class G incentive shares - Expired 31 May 2010
Each Incentive Share entitles the Holder to convert the Incentive Share into an ordinary Share in accordance with the following
Milestones.
Class G Incentive Shares: Convert to 3,000,000 Ordinary Shares upon the Company achieving a minimum volume weighted average share
price for a period of 60 trading days of not less than $0.60 per share; or in the event that the Company’s shares are listed on a recognised
international stock exchange other than the ASX and where or when Resonance shareholders have received a minimum value of $0.60
per share for their Resonance shareholding; or on receipt of an offer by a third party to acquire not less than 20% of the Company’s
issued shares at a placement or offer price of not less than $0.60 per share. These Class G Incentive Shares expired on 31 May 2010.
There are no incentive shares or unissued ordinary shares of Resonance Health Ltd under option remaining at 30 June 2010.
40
Resonance Health Limited Annual Report 2010
Consolidated
2010
$
(64,295,188)
(102,335)
(64,397,523)
2009
$
(64,912,239)
617,051
(64,295,188)
Note 16: Accumulated losses
Balance 1 July
Net profit/(loss) for year
Balance 30 June
NOTE 17: Financial instruments
(a) Capital risk management
The Group controls the capital of the Company in order to maintain an appropriate debt to equity ratio and to ensure that the
Company can fund its operations and continue as a going concern. The Group’s overall strategy remains unchanged from the previous
financial year. The capital structure of the group consists of cash and cash equivalents and equity attributable to equity holders of
the parent, comprising issued capital, reserves and retained earnings. None of the Group’s entities are subject to externally imposed
capital requirements. Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures.
(b) Categories of financial instruments
Financial assets
Cash and cash equivalents
Loans and receivables
Available for sale financial assets
Financial liabilities
Payables
2,192,004
789,947
3,004
2,703,058
712,317
2,651
418,080
319,874
The net fair values of all financial assets and liabilities approximate their carrying value.
(c) Financial risk management objectives
The Group is exposed to market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and
cash flow interest rate risk. The Group seeks to minimise the effects of these risks. The Group does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes.
(d) Market risk
The Group’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. There has been no
change in the Group’s exposure to market risks or the manner in which it manages and measures the risk from the previous period.
(e) Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations
arise. Exchange rate exposures are managed within approved policy parameters. The Group does not engage in forward exchange
contracts.
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date is
as follows:
Liabilities
Assets
United States Dollars
Great British Pounds
European Euros
2010
$
30,259
995
23,410
2010
$
545,346
69,111
11,799
2009
$
552,051
17,668
15,161
2009
$
-
-
-
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Note 17: Financial instruments (cont.)
Foreign currency sensitivity analysis
The Group is exposed to United States Dollar (USD), Great British Pound (GBP) and European Euro (EUR) currency fluctuations.
The following table illustrates the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against the relevant
foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates. A negative number indicates a decrease in profit and other
equity where the Australian dollar strengthens against the respective currency. For a weakening of the Australian dollar against the
respective currency there would be an equal and opposite impact on the profit and other equity and the balances below would be
positive.
Profit or loss impact:
- USD
- GBP
- EUR
(f ) Interest rate risk management
2010
$
(46,826)
(6,192)
1,056
2009
$
(50,186)
(1,606)
(1,378)
All financial assets and financial liabilities are non-interest bearing except for cash and cash equivalent balances. The following table
details the Group’s expected maturities for cash and cash equivalent financial assets.
Cash and cash equivalent financial assets
Less than one month
One to three months
Total
2010
Weighted average effective interest rate
2009
Weighted average effective interest rate
Interest rate sensitivity analysis
$2,133,884
4.22%
$2,494,938
2.99%
$58,120
3.65%
$208,120
3.78%
$2,192,004
$2,703,058
The Group is exposed to fluctuations in interest rates as it has deposited monies at floating and fixed interest rates.
The following table illustrates the Group’s sensitivity to a 10% increase and decrease in the interest rate. The sensitivity analysis
includes only cash and cash equivalent financial assets as at 30 June and assumes a 10% change in interest rates. Where the interest
rate decreases a reduction in profit would be experienced.
Profit or loss impact:
(g) Credit risk management
2010
$
917
2009
$
1,353
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. The Group is exposed to credit risk from its operating activities (primarily from customer receivables) and from its
financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Outstanding customer receivables are regularly monitored and any credit concerns highlighted to senior management. At 30 June
2010, the Group had one customer that accounted for 72% of all trade receivables (2009: 81%).
The maximum exposure to credit risk, excluding the value of any collateral or other security at balance date in relation to each class
of recognised financial assets is the carrying amount, net of any allowance for impairment recorded in the financial statements. The
Group does not hold any collateral as security for any trade receivable.
(h) Equity price risk
The Group is exposed to equity price risks arising from available-for-sale financial assets. The Group’s investments are publicly traded.
Equity price risk sensitivity analysis
The following table illustrates the Group’s sensitivity to a 10% increase and decrease in the equity price.
Profit or loss impact:
42
2010
$
300
2009
$
265
Resonance Health Limited Annual Report 2010
Note 17: Financial instruments (cont.)
(i) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity risk
management framework for the management of the Group’s short, medium and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves by continually monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and liabilities. Included in Note 7 is a listing of additional undrawn
facilities that the Group has at its disposal to further reduce liquidity risk.
The following table details the Group’s expected maturity for its financial liabilities.
Less than one month
One month to three
months
Three months to
one year
2010
Non-interest bearing
2009
Non-interest bearing
(j) Fair value of financial instruments
$
358,580
278,874
$
45,000
26,000
$
Total
$
14,500
418,080
15,000
319,874
The net fair value of all financial assets and liabilities approximate their carrying values. No financial assets or financial liabilities,
except for listed shares are readily traded on organised markets in standardised form.
The aggregate net fair values and carrying amounts of all financial assets and liabilities are disclosed in the financial statements.
Note 18: Commitments for expenditure
Operating lease commitments
Commitments for minimum lease payments in relation to non-cancellable
operating leases for office premises are payable as follows:
Within one year
Later than 1 year but no later than 5 years
Total commitments not recognised in the financial statements
Note 19: Related party disclosure
Consolidated
2010
$
22,108
-
22,108
2009
$
63,374
21,125
84,499
The consolidated financial statements include the financial statements of Resonance Health Limited and the subsidiaries listed in the
following table.
Name of entity
Country of
incorporation
Class of
shares
Equity
holding
Investment ($)
2010
2009
Resonance Health Analysis Services Pty Ltd
(formerly Inner Vision Biometrics Pty Ltd)
WA Private Health Care Services Pty Ltd
IVB Holdings Pty Ltd
ResonanceUSA Inc
Less: Impairment
Australia
Ordinary
100%
9,415,300
9,415,300
Australia
Australia
USA
Ordinary
Ordinary
Ordinary
100%
100%
100%
224,366
1,300,000
-
224,366
1,300,000
-
(10,072,984)
(10,261,176)
866,682
678,490
Resonance Health Limited is the ultimate Australian entity and parent of the Group.
Transactions with related parties
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless otherwise stated.
Transactions with related parties in the wholly owned group
During the year the company provided interest free loans to Resonance Health Analysis Services Pty Ltd totalling $621,555 with no
fixed repayment date. During the previous year the company received interest free loans from Resonance Health Analysis Services
Pty Ltd totalling $468,948.
During the year the company provided interest free loans to Resonance USA Inc totalling $109,820 with no fixed repayment date
(2009: $nil).
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Note 19: Related party disclosure (cont.)
A cumulative impairment of these loans amounting to $4,401,373 was recorded up to balance date (2009: $3,308,220).
During the year expenses were paid by Resonance Health Analysis Services Pty Ltd totalling $140,800 (2009: $64,555) on behalf of
the company.
During the year expenses were paid by ResonanceUSA Inc totalling $111,846 (2009: $nil) on behalf of the company.
During the year expenses were paid by the company on behalf of Resonance Health Analysis Services Pty Ltd totalling $41,930
(2009: $10,377).
Note 20: Parent entity disclosures
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Option reserve
Accumulated losses
Total equity
Financial Performance
Profit / (loss) for the year
Total comprehensive income / (loss)
2010
$
2009
$
1,741,324
856,682
2,598,006
2,643,776
678,490
3,322,266
70,050
70,050
69,124
69,124
67,524,039
67,514,039
66,284
66,284
(65,062,367)
(64,327,181)
2,527,956
3,253,142
Year ended
30 June 2010
Year ended
30 June 2009
$
(735,186)
(735,186)
$
568,013
568,013
Note 21: Events subsequent to reporting date
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the company and the consolidated entity, the results of those operations, or the state of affairs in future
financial years.
Note 22: Auditors’ remuneration
During the year the following fees were paid or payable to the auditor:
Remuneration of the auditor of the company for:
- auditing or reviewing the financial report
- taxation compliance services
44
Consolidated
2010
$
37,450
28,698
66,148
2009
$
30,000
39,354
69,354
Resonance Health Limited Annual Report 2010
Note 23: Directors and executive disclosures
(a) Details of key management personnel
(i) Directors
Dr Stewart Washer
Chairman (non-executive)
Ms Liza Dunne
Dr Martin Blake
Managing Director (executive)
Director (non-executive)
Mr Simon Panton
Director (non-executive)
Appointed 5 October 2009
Dr Tim St Pierre
Director (executive)
(ii) Executives
Ms Eva O’Malley
Chief Financial Officer and Company Secretary
Key management personnel remuneration has been included in the Remuneration Report section of the Directors’ Report.
(b) Shareholdings of key management personnel
The numbers of ordinary shares in the company held during the financial year by key management personnel of the consolidated
Group including their personally related entities are set out below.
Balance 1.7.09
Received as
Remuneration
Net Change
Other*
Received during
the year on
exercise of options
Balance 30.6.10
Directors
Dr S Washer
Dr M Blake
Ms L Dunne
Dr T St Pierre
Mr S Panton
Total
Executives
Ms E O’Malley
Total
451,422
6,224,677
2,227,025
9,078,750
-
-
-
366,770
-
-
17,981,874
366,770
-
-
-
-
-
-
-
-
65,960,972
65,960,972
-
-
-
-
-
-
-
-
-
451,422
6,224,677
2,593,795
9,078,750
65,960,972
84,309,616
-
-
* Includes shares held as disclosed in the initial directors interest notice on being appointed director on 5 October 2009.
(c) Transactions and balances with directors and other key management personnel
Non-Executive Director – Dr Martin Blake
Dr Blake is a Director of Perth Radiological Clinic.
During the previous financial year the Group provided FerriScan® services totalling $1,617 to Perth Radiological Clinic. Amounts
receivable at 30 June 2009 totalled $269.
During the previous financial year the Group purchased MRI patient scans for a clinical trial study totalling $1,980 from Perth
Radiological Clinic. Amounts payable at 30 June 2009 totalled $660.
Executive Director – Dr Tim St Pierre
Dr St Pierre is an employee of The University of Western Australia. The Group has an agreement with the University of Western
Australia for the provision of consulting services by Dr St Pierre and others.
Amounts relating to services provided by Dr St Pierre during the year can be found in the Remuneration Report forming part of the
Directors’ Report.
Amounts relating to consulting services provided by others under the agreement with the University of Western Australia during the
financial year totalled $39,859 (2009: $31,489). The amount payable at 30 June 2010 totalled $71,348 (2009: $31,489).
During the year the Group provided FerriScan® services totalling $10,311 (2009: nil) to the University of Western Australia. Amounts
receivable at 30 June 2010 totalled $1,817 (2009: $nil).
Non-Executive Director – Dr Stewart Washer
Dr Washer is a Director of Ausbiotech Limited.
During the year the Group purchased an Ausbiotech subscription totalling $1,809. Amounts payable at 30 June 2010 were nil.
45
DIRECTORS’ DECLARATION
1.
In the opinion of the directors:
a. the accompanying financial statements, notes and the additional disclosures are 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 2010 and of its performance for the
year then ended; and
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001; and
b. there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and
payable; and
c. the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the
International Accounting Standards Board.
2.
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 30 June 2010.
This declaration is signed in accordance with a resolution of the Board of Directors.
Dr Stewart Washer
Chairman
Place: Perth, Western Australia
Dated: 29 September 2010
46
INDEPENDENT AUDITOR’S REPORT
To the members of
RESONANCE HEALTH LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Resonance Health Limited (“the company”), which comprises the statement
of financial position as at 30 June 2010, and the statement of comprehensive income, statement of changes in equity and statement
of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’
declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time
during the financial year as set out on pages 20 to 46.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance
with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This
responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial
report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the circumstances.
In Note 1(c), the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements that the
consolidated financial statements comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with
Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
company’s preparation and fair presentation of the financial report 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 company’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers.
47
The following additional information is disclosed in accordance with Section 4.10 of the Australian Securities Exchange Ltd
Listing rules in respect of listed public companies only.
The following information is supplied as at 30 September 2010.
Auditor’s Opinion
In our opinion:
(a) the financial report of Resonance Health Limited 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 2010 and of its performance for the
year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001; and
(b) the consolidated financial statements also comply with International Financial Reporting Standards as disclosed in Note 1(c).
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 10 to 12 of the directors’ report for the year ended 30 June 2010. The
directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with
section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our
audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion the Remuneration Report of Resonance Health Limited for the year ended 30 June 2010 complies with section 300A
of the Corporations Act 2001.
Perth, Western Australia
29 September 2010
HLB MANN JUDD
Chartered Accountants
N G NEILL
Partner
48
Additional Information For Listed Public Companies
Resonance Health Limited Annual Report 2010
The following additional information is disclosed in accordance with Section 4.10 of the Australian Securities Exchange Ltd
Listing rules in respect of listed public companies only.
The following information is supplied as at 30 September 2010.
1. Analysis of Shareholdings
Distribution of Shareholders (ASX Code: RHT)
Ordinary Shares
Number of Ordinary Shares Held
Number of holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
534
191
249
765
322
2,061
121,559
596,599
1,863,003
29,310,220
328,540,394
360,431,775
The number of shareholdings holding less than a marketable parcel of shares are 1,393.
2. Voting Rights
Ordinary shares
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by
proxy has one vote on a show of hands.
3. Twenty Largest Shareholders of quoted Ordinary Shares
Name
Number of Ordinary Shares
Percentage of Total
Southam Investments 2003 Pty Ltd
65,414,622
18.15
BNM Holdings Pty Ltd
10,500,000
1.
2.
3.
4.
The University Of Western Australia
Timothy Guy St Pierre
5. Wanida Chau-Anusorn
6. Mr Robert Francis Panton
7.
Paul Roderick Clark
8. Dr Franklyn Jay Ives
9.
Sean Watkins-Saxon
10. Mr Helmut Rocker
11. Dr Simon Bell
12. Mr William Grove
13. Five Tigers Investment Corporation Ltd
14. Untold Pty Ltd
15. Mr Kevin Edward Deeves & Mrs Pauline Mary Deeves
16. Dr Martin Peter Blake
17. Bellamena Pty Ltd
18. Mr Ian Bruce Anderson
19. Mr Harry Basle
20. Anahein Pty Ltd
9,078,750
9,078,750
8,070,000
7,840,824
6,817,388
6,272,934
6,250,000
6,000,000
5,087,483
4,838,401
4,494,844
4,166,667
4,000,000
3,798,590
3,333,333
2,522,138
2,418,735
2,408,478
2.91
2.52
2.52
2.24
2.17
1.89
1.74
1.73
1.66
1.41
1.34
1.25
1.16
1.11
1.05
0.93
0.70
0.67
0.67
172,391,937
47.82
49
Additional Information For Listed Public Companies
4. Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with sections 709 and 710 of the
Corporations Act 2001 are:
Southam Investments 2003 Pty Ltd
65,414,622 ordinary shares
50
Resonance Health Limited Annual Report 2010
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51
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52
1st Floor,
216 Stirling Highway
CLAREMONT WA 6010
Telephone: 61 8 9286 5300
Facsimile: 61 8 9286 1179
Postal address
PO Box 1135
NEDLANDS WA 6909
Australia
Website and e-mail address
www.resonancehealth.com
Email: info@ferriscan.com
ANNUAL REPORT 2010
Resonance Health Limited