Intec Ltd
ANNUAL REPORT 2016
Intec Ltd 2016 Annual Report
Contents
Letter from the Chairman and the Managing Director
Review of Operations
Director’s Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Director’s Declaration
Independent Auditor’s Report
Schedule of Tenements
Shareholder Information
Corporate Directory
Page
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44
1
Intec Ltd 2016 Annual Report
Letter from the Chairman and Managing Director
Dear Intec Shareholder
28 October 2016
This is Intec Ltd’s (Intec) or the Company(’s), fifteenth Annual Report since listing on the Australian Securities
Exchange (ASX) and includes the audited financial statements for the financial year ending 30 June 2016.
For the 2015/16 financial year, the Company recorded a loss after tax of $0.458 million compared to a loss after
tax of $0.856 million for the previous financial year. Net cash outflows from operating activities decreased to
$0.541 million compared with $1.081 million for the prior year.
The Company’s principal activity is its 50% ownership in Science Developments Pty Ltd (SciDev). SciDev is a
Sydney-based company that develops, manufactures and supplies coagulants and flocculants for wastewater
treatment and sludge dewatering. Key achievements of SciDev during the year included:
• Maintenance of its existing customer base in dairy manufacturing, quarrying, metalliferous mining, water
treatment associated with coal-seam gas extraction and industrial waste treatment;
• A successful trial of the OptiFlox® System, on which a patent is pending, at Peabody Energy’s Wilpinjong
thermal coal mine in NSW; and
• Based on experience gained during the Wilpinjong trial, a Mark 2 version of the OptiFlox® System has
been designed.
Subsequent to 30 June 2016, Intec agreed a six-month extension to the term i.e. to 28 February 2017, of its
option to acquire the remaining 50% of SciDev.
In addition, SciDev agreed an exclusive manufacturing and customer arrangement with Burkert Fluid Control
Systems, a German multinational, in relation to the OptiFlox® System. The first order for the Mark 2 OptiFlox®
System has been placed with Burkert and this system will be installed at Wilpinjong in mid-December with the
existing system proposed to be re-located to another site. Furthermore, SciDev is currently finalising with
Peabody Energy a contract for the long-term supply of the OptiFlox® System and associated chemicals at
Wilpinjong.
The trial at Wilpinjong of the OptiFlox® System was challenging and took longer than originally expected.
However, management is now confident that the OptiFlox® System will provide productivity benefits to clients
and future revenue and profit growth for Intec shareholders.
The objectives for the current year are as follows:
•
Installation of OptiFlox® Systems in other Peabody Energy sites where trials of SciDev chemicals have
already taken place;
• Rollout of the OptiFlox® System to other participants in the Australian coal industry;
•
• Undertaking necessary development work to demonstrate the application of the OptiFlox® System to
The identification of international licensing opportunities for the OptiFlox® System; and
other industries such as sewage and dairy processing.
Yours sincerely
Trevor A Jones
Chairman
Kieran G Rodgers
Managing Director
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Intec Ltd 2016 Annual Report
Review of Operations
For the 2015/16 financial year, the Company recorded a loss after tax of $0.458 million compared to a loss
after tax of $0.856 million for the previous financial year. Net cash outflows from operating activities
decreased to $0.541 million compared with $1.081 million for the prior year. Revenue from operations
increased to $1.774 million compared with $1.537 million for the 2014/15 financial year.
Science Developments Pty Ltd (SciDev)
The Company’s principal activity is its 50% ownership in Science Developments Pty Ltd (SciDev). The Company
holds an option to acquire the remaining 50% of SciDev prior to 28 February 2017, based on an agreed formula
related to future profitability.
SciDev develops, manufactures and supplies coagulants and flocculants for wastewater treatment and sludge
dewatering. During the 2015/16 financial year, SciDev recorded a profit after tax of $0.066 million compared
with a loss for the previous year. Key achievements of SciDev during the year included:
• Maintenance of its existing customer base in dairy manufacturing, quarrying, metalliferous mining and
water treatment associated with coal-seam gas extraction:
• Continued sales to New Zealand via the exclusive distribution agreement with Apex Environmental Ltd;
and
• A successful trial of the OptiFlox® System at Peabody Energy’s Wilpinjong thermal coal mine in NSW.
SciDev’s products can be categorised into the following three broad groups:
1. Aqueous cationic coagulants;
2. Aqueous flocculent concentrates; and
3. Polyacrylamide powders and emulsions.
These products are supplied to the market through a combination of both local manufacture and imports.
SciDev is best known within specific industry sectors by its registered brand names; DairyFlox®, MaxiFlox and
OptiFlox®.
DairyFlox®
For dairy processing businesses, the DairyFlox® coagulant/flocculent range delivers optimum performance in
the treatment of wastewater streams at a treatment cost unmatched in the market. DairyFlox® provides cost
savings through its unique efficacy across a broad pH range and dewatering capabilities to minimise sludge
volumes.
MaxiFlox®
For industry participants in the quarrying and metalliferous mining sectors the MaxiFlox® coagulant/flocculent
range delivers optimum performance in the treatment of wastewater streams at a market leading treatment
cost.
OptiFlox®
The OptiFlox® system, and associated coagulants, was specifically designed to address the issue of very turbid
water flowing from a thickener in a Coal Handling and Preparation Plant (CHPP). CHPP plants continually
experience slurry flows that do not remain homogeneous. The types and concentrations of the particles in such
slurries vary significantly as coal extraction moves from one pit to another within the mine site. This variation in
the loading and composition of the material can cause ineffective chemical usage and inadequate
control/clarification which cannot be solved by today’s conventional optical sensing devices commonly installed
in thickeners.
Highly turbid or ‘blackwater’ events can therefore occur resulting in the CHPP shutting down and production
slowing or ceasing. Substantial losses in productivity and revenue can therefore result. The value of lost
revenue due to productivity losses from inadequate wastewater clarification is estimated to range from $1.6M
to $10M per annum depending on the size of the operation.
Developed by SciDev, the OptiFlox® system addresses this issue by continuously measuring in real time the
appropriate particle characteristics of the slurry entering the thickener. As a result, the OptiFlox® system
automatically determines and maintains the optimal coagulant dose rate required even when the characteristics
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Intec Ltd 2016 Annual Report
of the slurry feed to the thickener continually change. Optimal flocculation conditions are thereby maintained to
enable consistent and reliable clarified water to be produced for re-use in the CHPP.
The OptiFlox® System enables coal productivity to be maximised through minimising the number of shutdowns
caused by the return of excessively turbid water to the CHPP. Further benefits in the form of increased yields,
reduced magnetite consumption, improved underflow dewatering and chemical cost savings may also be
realised through optimal thickener performance.
During the year, a six-month commercial trial of the Optiflox® system was undertaken at Peabody Energy’s
Wilpinjong thermal coal mine in the Western Coalfields of NSW. The terms of the commercial trial included the
receipt of licensing fees and revenue from associated Optiflox® coagulant product sales.
The Mark 1 version of the OptiFlox® System employed in the Wilpinjong trial is shown below. The Mark 1
OptiFlox® system consists of two skids, referred to as the OptiFlox® skid and the Pump skid.
OptiFlox® skid
Pump skid
The OptiFlox® skid houses all necessary instrumentation to provide for continuous measurement of key particle
characteristics of the coal slurry in order to enable optimised real-time dosing of SciDev coagulant and real-
time data capture. The role of the pump skid is to draw a continuous sample from the thickeners’ centre well
and pump to the OptiFlox® skid, which is located at the side of the thickener.
Like all R & D projects, the move from laboratory and bench scale testwork to installation and full-time
operation at an industry site resulted in many challenges and adjustments to the original design. However, the
Wilpinjong trial of the OptiFlox® System demonstrated its ability to continuously measure in real time the
appropriate particle characteristics of coal tailings in order to:
• Determine when to dose coagulant;
• What quantity of coagulant to dose; and
• When to stop dosing coagulant.
The figure below illustrates the real time data capture and consequent dosing of OptiFlox® coagulant at
Wilpinjong in order to maintain water quality in the thickener at a pre-determined level.
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Intec Ltd 2016 Annual Report
Based on the experience gained from the Wilpinjong trial, a Mark 2 OptiFlox® system was designed and the
first order for the Mark 2 OptiFlox® system has now been placed. The improvements of the Mark 2
OptiFlox® system are described below.
Zeehan Slag Dump
The Company maintains ownership of a Mining Lease (ML) and a Retention Licence (RL) over the Zeehan Slag
Dump, located 3 kilometres south of Zeehan on the Tasmanian West Coast. The slag dump comprises zinc-bearing
residues from an historic lead smelter previously operated at the site. The slag dump, based on historical records,
contains approximately 430,000 tonnes at a grade of approximately 14% zinc. Note that this estimate of tonnage
and grade is not compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the JORC Code). The annual holding costs of the ML and RL are less than $15,000 and the
financial assurance lodged with the Tasmanian Government amounts to $10,800.
The Company is currently in the process of converting its Retention Licence into a Mining Lease and thus holding
one Mining Lease over the entire Zeehan Slag Dump. This conversion will not result in either any additional
holding costs or increase in the financial assurance amount and will reduce reporting requirements.
As the zinc-bearing slag material cannot be upgraded via flotation etc., the options to derive value from the
Zeehan Slag Dump comprise:
1. Direct shipping parcels of the slag to processing facilities, principally overseas, capable of treating the
slag. For this option to be economic, a US$ zinc price higher than current levels (approximately US$2,300
per tonne) is required; and
2. The sale of the Mining Leases to another party.
During the year and subsequently, the Company has received several approaches along the lines described
above and continues to evaluate opportunities to realise value from its ownership of the Zeehan Slag Dump.
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Intec Ltd 2016 Annual Report
Other
During the year, the Company sold all its shareholding in Bass Metals Ltd but retains its ownership of a 2.5%
net smelter royalty in relation to base metals extracted from several tenements in the Hellyer-Que River region
of Tasmania.
Corporate Governance
The Company’s Corporate Governance Statement and ASX Appendix 4G will be released to ASX on the same
day as the Annual Report is released. The Company’s Corporate Governance Statement and the Company’s
Corporate Governance Manual can both be found on the Company’s website at www.intec.com.au.
Directors’ Report
The Directors present their report, together with the financial statements, on the Intec Group of Companies
(referred to hereafter as the ‘Group’) consisting of Intec Ltd (‘Intec’ or the ‘Company’) and the entities it
controlled at the end of, or during, the year ended 30 June 2016.
Directors
The following persons were Directors of the Company during the whole of the financial year and up to the date
of this report. No Intec Director is either currently a Director of another ASX listed Company or has been a
Director of any other ASX-listed Company in the last 3 years.
•
Trevor A Jones
• Kieran G Rodgers
• Daniel (Don) Joseph Cronin
Principal Activities
The principal activity of the Group is its 50% interest in Science Developments Pty Ltd, a manufacturer and
supplier of organic chemicals for industrial wastewater treatment.
Dividends Paid or Recommended
No dividends have been paid to members during the financial year and no recommendation is made as to the
payment of dividends.
Significant Changes in the State of Affairs
There has been no significant change in the state of affairs of the Company either during the financial year or
since year end.
Events Subsequent to the End of the Reporting Period
On 22 August 2016, the Company announced that it had agreed a six-month extension to the term i.e. to 28
February 2017, of its option to acquire the remaining 50% of Science Developments Pty Ltd.
There are no other matters or circumstances that have arisen since 30 June 2016 that have significantly
affected or may significantly affect the consolidated entities operations, the results of these operations, or the
consolidated entities state of affairs in future financial years.
Likely Developments and Expected Results of Operations
Information on likely developments in the operations of the consolidated entity and the expected results of
operations have not been included in this report because the Directors believe it would be likely to result in
unreasonable prejudice to the consolidated entity.
Environmental Regulation
The Group’s operations are presently subject to environmental regulation under the laws of the Commonwealth
of Australia and the State of Tasmania. The Group is at all times in full environmental compliance with the
conditions of its licences.
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Intec Ltd 2016 Annual Report
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Special responsibilities:
Name:
Title:
Qualifications:
Experience and expertise:
Special responsibilities:
Name:
Title:
Qualifications:
Experience and expertise:
Special responsibilities:
Company Secretary
Name:
Qualifications:
Experience and expertise:
Trevor A Jones
Chairman
B.Comm. (Melb)
Mr. Jones has spent over 30 years working in the finance industry in Australia,
United Kingdom and the USA. During this time, he has held senior executive
positions in investment funds management, stockbroking and corporate
finance, and gained a broad experience of capital structuring and capital
raising, particularly in the mining sector. Mr. Jones was manager of equity
portfolios for Shell Australia and National Employers Mutual in the United
Kingdom. He was a Director of County NatWest Securities Australia Limited in
London and then Director of Corporate Finance with Westpac Institutional Bank
in Sydney. More recently Mr. Jones was the Sydney Chief Executive for
Melbourne-based Austock Group and was Chairman of both its Corporate
Finance and Investment Management divisions. He was appointed as a Non-
executive Director of Intec on 28 February 2007.
Chairman of the Corporate Governance Committee and a member of the Audit
Committee and the Nomination and Remuneration Committee
Kieran G Rodgers
Managing Director
B.E. (Hons.) Min. (UNSW), M.B.A. (IMD)
Mr. Rodgers joined Intec in March 2001 after 13 years of experience in
merchant banking and financial consulting, principally at Resource Finance
Corporation Ltd, which specifically focused on the Australian and international
resources industry. He was appointed as an Executive Director of Intec on 28
February 2007. Mr. Rodgers was appointed Managing Director on 6 February
2012.
Member of the Corporate Governance Committee
Daniel (Don) Joseph Cronin
Non-executive Director
B.E. (Uni. College, Cork) M.Sc. (Southampton), MBA (LBS)
Mr. Cronin was appointed to the Board of Intec on 26 November 2013. Mr.
Cronin began his career as an Engineer with the British consulting firm
Halcrow, working for 6 years in the UK and South America. This was followed
by 5 years working in project management with the construction Company
Gammon in Hong Kong and Singapore. Following completion of an MBA
degree, he was employed in the chemical industry for 23 years, initially with
Sandoz and later with Degussa and BASF. He has worked in senior general
management roles in Zurich, Sydney and Singapore. His most recent position
was Senior Vice President – Construction Chemicals for BASF with
responsibility for Europe, Middle East and Africa.
Chairman of the Audit Committee and a member of the Corporate Governance
Committee and the Nomination and Remuneration Committee
Robert J Waring
B.Ec. (Syd), C.A., F.C.I.S., F.Fin., F.A.I.C.D, MAusIMM
Mr Waring was appointed to the position of Company Secretary of Intec in
December 1998 and has over 40 years’ experience in financial and corporate
roles including over 20 years in Company secretarial roles for ASX-listed
companies and 18 years as a Director of ASX-listed companies. He is a
Director of Oakhill Hamilton Pty Ltd, which provides secretarial and corporate
advisory services to a range of listed and unlisted companies.
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Intec Ltd 2016 Annual Report
Meetings of Directors
The number of meetings of the Company’s Board of Directors and of each Board Committee held during the
year ended 30 June 2016, and the number of meetings attended by each Director were:
T A Jones
K G Rodgers
D J Cronin
Full
meetings of
Directors
Audit
A
7
7
7
B
7
7
7
A
2
*
2
B
2
*
2
Meetings of committees
Corporate
Governance
Nomination
and
Remuneration
A
1
1
1
B
1
1
1
A
1
*
1
B
1
*
1
A = Number of meetings attended.
B = Number of meetings held during the time the Director held office or was a member of the committee during
the year.
* Not a member of the relevant committee during the period.
Remuneration Report
The remuneration report is set out under the following main headings:
A
B
C
D
E
F
Principles used to determine the nature and amount of remuneration;
Details of remuneration;
Service agreements and letters of employment;
Share based compensation;
Shareholdings of Directors and key management personnel; and
Additional information.
The information provided in this remuneration report has been audited as required by Section 308 (3C) of the
Corporations Act 2001.
Principles Used to Determine the Nature and Amount of Remuneration
A
The objective of the Group’s executive reward framework is to ensure that the reward for performance is
competitive and appropriate for the results delivered. The framework aligns executive reward with the
achievement of financial objectives and the creation of value for shareholders, and conforms to market best
practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for
good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation;
•
transparency; and
• capital management.
The Group has structured an executive remuneration framework that is market competitive. The framework provides
for a mix of fixed pay and also variable pay and includes long term incentives, when appropriate. There is no
defined relationship between Company performance and remuneration at this point in time. However, the
matter is under continual review. The fixed proportion of remuneration is currently 100%. The Board has
established a nomination and remuneration committee which provides advice on remuneration and incentive
policies and practices and makes specific recommendations on remuneration packages and other terms of
employment for the Managing Director, other senior executives and Non-Executive Directors. The Corporate
Governance Statement provides further information on the role of this Committee.
Non-Executive Directors
Fees and payments to the Non-Executive Directors reflect the demands which are made on, and the
responsibilities of, the Non–Executive Directors. The Board undertakes a review of Non-Executive Directors’
fees and payments annually.
Non-Executive Directors’ fees are determined within an aggregate Non-Executive Directors’ cash remuneration limit,
which is periodically recommended for approval by shareholders. The current limit of $400,000 was approved by
shareholders at the 2007 Annual General Meeting held on 14 November 2007. In addition, Non-Executive Directors
are able to participate in issues of options pursuant to the Intec Employee Share Scheme. The value of any options
granted to Non-Executive Directors are not included in the aggregate cash remuneration limit as they are not cash
based payments.
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Intec Ltd 2016 Annual Report
Executive pay
The executive pay and reward framework has two components, which together comprise the executive’s total
remuneration
• base pay, superannuation and non-monetary benefits; and
•
long term incentives through participation in the Intec Employee Share Scheme.
Base pay
Base pay is structured as a total employment cost package, which may be delivered as a combination of cash
and prescribed non-financial benefits at the executive’s discretion. Executives are offered a competitive base
pay that comprises a fixed component of cash salary and superannuation. Base pay for each senior executive is
reviewed annually to ensure the executive’s pay is competitive with the market. There is no guaranteed base
pay increase included in any executive’s contract.
Intec Employee Share Scheme
Information on the Intec Employee Share Scheme is set out in note 21. Participation in the Intec Employee Share
Scheme is at the discretion of the Board and there is no guarantee of annual participation by any executive.
Details of Remuneration
B
Amounts of remuneration
Details of the remuneration of the Directors and the key management personnel (as defined in AASB 124
Related Party Disclosures) of Intec and the Group are set out in the tables below.
2016
Short-term benefits
Termination
benefits
Post-
employment
benefits
Share-
based
payment
Name
Non-executive
Directors
T A Jones Chairman
D J Cronin
Sub-total
Executive Director
K G Rodgers
Sub-total
Total
Salary &
fees
$
Consulting
Fees
$
Non-
monetary
benefits
$
69,444
45,000
114,444
215,000
215,000
329,444
-
7,000
7,000
-
-
7,000
-
-
-
16,329
16,329
16,329
2015
Short-term benefits
Name
Non-executive
Directors
T A Jones Chairman
D J Cronin
Sub-total
Executive Director
K G Rodgers
Sub-total
KMP
A J Randall*
Sub-total
Total
Salary &
fees
$
Consulting
Fees
$
Non-
monetary
benefits
$
69,444
45,000
114,444
-
27,032
27,032
-
-
-
215,000
215,000
29,474
29,474
358,918
-
-
-
-
27,032
16,329
16,329
-
-
16,329
*Ceased employment during year ended 30 June 2015.
Super-
annuation
$
Options
$
Total
$
-
-
-
-
-
-
6,597
4,275
10,872
20,425
20,425
31,297
-
-
-
-
-
-
76,041
56,275
132,316
251,754
251,754
384,070
Termination
benefits
Post-
employment
benefits
Share-
based
payment
Super-
annuation
$
Options
$
Total
$
-
-
-
-
-
6,597
4,275
10,872
5,374
10,748
16,122
81,415
87,055
168,470
20,425
20,425
10,748
10,748
262,502
262,502
110,292
110,292
110,292
3,254
3,254
34,551
-
-
26,870
143,020
143,020
573,992
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Intec Ltd 2016 Annual Report
Service Agreements and Letters of Employment
C
Remuneration and other terms of employment for the Managing Director and other specified executives are
formalised in service agreements. Each of these service agreements and letters of employment provides for
the provision of long service leave to accrue at a rate of 0.87 weeks per year up to 10 years’ service and 2
weeks per year for each additional year of service, and participation in the Intec Employee Share Scheme. Each
service agreement provides the remuneration rate to be paid to the employee. All salaries are paid monthly by
direct bank deposit. Full details of remuneration paid are included in the table in part B of this note. Other
major provisions relating to executive remuneration are set out below.
Start Date
Term of
Agreement
Base Salary at 1
July 2016
$
Notice
period for
employee
(months)
Termination
compensation
Executive Director
K G Rodgers
1 March 2015
3 years
215,000
6
6 months’ salary
Share Based Compensation
D
At the 2014 Annual General Meeting, shareholders approved the Intec Employee Share Scheme (the Scheme).
The Scheme replaced the previous Intec Option Plan, which had been approved at the 2001 Annual General
Meeting. All Directors, employees and consultants are eligible to participate in the Scheme. Options granted
under the Scheme to eligible participants are for no additional consideration. Options are granted for a five-year
period, and vest and are exercisable immediately, unless otherwise stated. Options granted under the Scheme
carry no dividend or voting rights. The granting of options is at the Board’s discretion and no individual has a
contractual right to receive options.
The terms and conditions of each grant of options affecting remuneration in the previous, this or future
reporting periods are as follows:
Issue
Date
Expiry
Date
Exercise
Price
Balance
at
1 July 2015
Granted
during
year
Lapsed
during
year
Exercised
during
year
09-12-20111
21-11-2016
10-12-2014 28-11-2019
Total Options on issue
$0.0300
$0.0250
3,300,000
5,500,000
8,800,000
1. Granted under previous Intec Option Plan.
-
-
-
-
-
-
-
-
-
Vested &
exercisable as
at
30 June 2016
3,300,000
5,500,000
8,800,000
Details of options over ordinary shares in the Company provided as remuneration to each Director of Intec and
each of the key management personnel of the Group are set out below. When exercisable, each option is
convertible into one ordinary share of Intec. Further information on the options is set out in note 21.
2016
Balance at
the start of
the year
Granted
during the
year as
compensation
Exercised
during
the year
Lapsed
during
the year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Name
Directors of Intec Ltd
T A Jones
K G Rodgers
D J Cronin
Other key management personnel of the Group
A J Randall1
1,400,000
3,200,000
2,000,000
400,000
-
-
-
-
-
-
-
-
- 1,400,000
3,200,000
-
2,000,000
-
1,400,000
3,200,000
2,000,000
-
400,000
400,000
1. Ceased employment during year ended 30 June 2015.
2015
Balance at
the start of
the year
Granted
during the
year as
compensation
Name
Directors of Intec Ltd
T A Jones
K G Rodgers
D J Cronin
Other key management personnel of the Group
A J Randall1
400,000
1,200,000
-
400,000
1,000,000
2,000,000
2,000,000
-
1. Ceased employment during year ended 30 June 2015.
Exercised
during
the year
Lapsed
during
the year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
-
-
-
-
- 1,400,000
3,200,000
-
2,000,000
-
1,400,000
3,200,000
2,000,000
-
400,000
400,000
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Intec Ltd 2016 Annual Report
The assessed fair value at grant date of options granted to individuals is included in the remuneration tables
above, if a grant of options has taken place during the period. Fair values at grant date are determined using
share option valuation models that take into account the exercise price, the term of the option, the share price
at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free
interest rate for the term of the option. There were no options granted in the twelve (12) months to 30 June
2016 (2015: 5,500,000).
Shares provided on exercise of remuneration options
No ordinary shares in the Company were provided as a result of the exercise of remuneration options by a Director
of Intec (2015: Nil). No options were exercised by any key management personnel of the Group (2015: Nil).
Shares under option
Unissued ordinary shares of Intec under option at the date of this report are shown in note 21.
Shares issued on the exercise of options
No ordinary shares of Intec were issued during the year ended 30 June 2016 on the exercise of options granted
under the Intec Employee Share Scheme. No further shares have been issued on the exercise of options since
that date.
E
Shareholdings of Directors and Key Management Personnel
The number of shares in the Company held at the end of the financial year by each Director of the Company
and other key management personnel of the Group, including personally related parties, are set out below.
2016
Name
Ordinary shares
Directors of Intec Ltd
T A Jones
K G Rodgers
D J Cronin
2015
Name
Ordinary shares
Directors of Intec Ltd
Balance at the
start of the year
Received during
the year on the
exercise of options
Other
changes
during
the Year
Balance at
the end of
the
Year
2,832,777
20,004,623
3,000,000
-
-
-
-
-
-
2,832,777
20,004,623
3,000,000
Balance at the
start of the year
Received during
the year on the
exercise of options
Other
changes
during
the Year
Balance at
the end of
the
Year
T A Jones
K G Rodgers
D J Cronin
Other key management personnel of the Group
A J Randall1
-
268,954
18,904,624
2,000,000
-
-
-
-
2,563,823
1,099,999
1,000,000
2,832,777
20,004,623
3,000,000
-
-
1. Ceased employment during year ended 30 June 2015.
F
Additional Information
In the five years since 1 July 2011, Directors’ and key management personnel total remuneration has
decreased by an average of 9.52% per annum principally due to a reduction in the number of executive and
non-executive Directors. The relationship between Remuneration Policy and Company Performance is shown
below.
Revenue - million
Net Profit - million
Share price at Year-End
Dividends Paid per share
2012
$2.825
($1.855)
$0.007
$0.0
2013
$1.066
($2.626)
$0.006
$0.0
2014
$1.281
($1.261)
$0.008
$0.0
2015
$1.536
($0.856)
$0.007
$0.0
2016
$1.774
($0.458)
$0.004
$0.0
This concludes the Remuneration Report, which has been audited.
11
Intec Ltd 2016 Annual Report
Indemnity and insurance of officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity
as a Director or executive, for which they may be held personally liable, except where there is a lack of good
faith.
During the financial year, the Company paid a premium in respect of a contact to insure the Directors and
executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contact
of insurance prohibits disclosure of the nature of the liability and amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contact to insure the auditor of
the Company or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to 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 part of those proceedings. The Company
was not a party to any such proceedings during the year.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
is set out on page 13.
Auditor
Rothsay Chartered Accountants (Rothsay) continues in office in accordance with section 327 of the Corporations
Act 2001. Rothsay only provided audit and audit review services during the financial year for total fees of
$29,500.
Authorisation
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the Directors
Kieran Rodgers
Managing Director
Sydney
30 September 2016
12
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of Intec Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge
and belief, there have been:
• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
• no contraventions of any applicable code of professional conduct in relation to theaudit.
This declaration is in respect of Intec Limited and the entities it controlled during the year.
Frank Vrachas
Partner
Rothsay Chartered Accountants
Sydney, 30 September 2016
13
Intec Ltd 2016 Annual Report
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 30 June 2016
Revenue from continuing operations
5
1,774,210
1,536,962
Note
30 June 2016
30 June 2015
$
$
Administration expense
Burnie Research Facility expenses
Depreciation and amortisation expense
Engineering and other consultants expenses
Employment costs
Finance costs - others
Impairment expense
Occupancy expense
Treatment expense
Other expenses
Profit/(loss) before income tax from continuing
operations
Income tax benefit/(expense)
Profit/(loss) after tax for the year from
continuing operations
Profit/(loss) after tax for the year from
discontinuing operations
Profit/(loss) after tax for the year
6
6
7
3
Other comprehensive income/(loss)
Items that will be reclassified subsequently to profit
or loss:
Gain on revaluation of other financial assets
Reclassification on disposal of available-for-sale
financial assets
Income tax relating to components of other
comprehensive income
Other comprehensive income/(loss) for the
year, net of income tax
Total comprehensive income/(loss) for the year
Profit/(loss) for the year is attributable to:
Owners of Intec Ltd
Non-controlling interests
(307,529)
-
(85,763)
(147,660)
(701,317)
(26,427)
-
(105,137)
(758,431)
(15,115)
(373,169)
(84,961)
(458,130)
-
(458,130)
22,465
(40,565)
-
(18,100)
(476,230)
(435,765)
(100,592)
(64,071)
(166,032)
(848,614)
(23,616)
(13,100)
(117,981)
(669,031)
(11,680)
(913,520)
8,883
(904,637)
48,191
(856,446)
18,100
-
-
18,100
(838,346)
(480,588)
22,458
(458,130)
(816,121)
(40,325)
(856,446)
14
Intec Ltd 2016 Annual Report
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 30 June 2016
Total comprehensive income/(loss) is attributable to:
Continuing operations
Discontinuing operation
Owners of Intec Ltd
Continuing operations
Discontinuing operation
Non-controlling interest
Earnings per shares for loss from continuing
operations attributable to the owners
Basic Earnings and Diluted Earnings per share (cents per
share)
Earnings per shares for loss from discontinuing
operations attributable to the owners
Basic Earnings and Diluted Earnings per share (cents per
share)
Note
30 June 2016
$
30 June 2015
$
(498,688)
-
(498,688)
22,458
-
22,458
(476,230)
(847,112)
49,091
(798,021)
(39,425)
(900)
(40,325)
(838,346)
20
(0.15)
(0.30)
-
0.02
Earnings per shares for loss attributable to the owners
Basic Earnings and Diluted Earnings per share (cents per
share)
(0.15)
(0.27)
The consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
15
Intec Ltd 2016 Annual Report
Consolidated Statement of Financial Position
As at 30 June 2016
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Other financial assets
Plant and equipment
Intangible assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Borrowings
Provisions
Total current liabilities
Non-current liabilities
Loans and borrowings
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity attributable to equity holders of the Company
Outside equity interest
Total equity
Note
30 June 2016
$
30 June 2015
$
22(b)
8
9
478,089
228,533
278,040
926,394
326,531
255,777
10
11
12
13
14
15
14
7
16
17
18
984,662
1,508,702
2,900
228,545
1,269,090
57,200
221,323
1,288,905
1,500,535
1,567,428
2,485,197
3,076,130
205,136
236,491
139,466
277,754
255,466
111,298
581,093
644,518
71,323
65,882
113,718
74,765
137,205
188,483
718,298
833,001
1,766,899
2,243,129
71,641,977
2,653,594
(72,698,662)
1,596,909
169,990
71,641,977
2,671,694
(72,218,074)
2,095,597
147,532
1,766,899
2,243,129
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
16
Intec Ltd 2016 Annual Report
Consolidated Statement of Changes in Equity
For the year ended 30 June 2016
Consolidated
Balance at 1 July 2014
Comprehensive income
Loss after income tax expense for the year
Other comprehensive income for the year
Asset revaluation reserve – increase in
value
Total comprehensive income for the
year
Transactions with owners in their
capacity as owners
Share based payments – options reserve
Share
Capital
Reserves Accumulated
Losses
Non
Controlling
Interest
Total
$
$
$
$
$
71,641,977
2,624,037
(71,401,953)
187,857
3,051,918
-
-
-
-
-
(816,121)
(40,325)
(856,446)
18,100
-
-
18,100
18,100
(816,121)
(40, 325)
(838,346)
29,557
-
-
29,557
Balance at 30 June 2015
71,641,977
2,671,694
(72,218,074)
147,532
2,243,129
Balance at 1 July 2015
Comprehensive income
Loss after income tax expense for the year
Other comprehensive income for the year
- Asset revaluation reserve – increase in
value
- Asset revaluation reserve – assets sold
Total comprehensive income for the
year
Transactions with owners in their
capacity as owners
Share based payments – options reserve
71,641,977
2,671,694
(72,218,074)
147,532
2,243,129
-
-
-
-
-
(480,588)
22,458
(458,130)
22,465
(40,565)
-
-
-
-
22,465
(40,565)
(18,100)
(480,588)
22,458
(476,230)
-
-
-
-
Balance at 30 June 2016
71,641,977
2,653,594
(72,698,662)
169,990
1,766,899
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
17
Intec Ltd 2016 Annual Report
Consolidated Statement of Cash Flows
For the year ended 30 June 2016
Notes
2016
$
2015
$
Consolidated
Cash flows from operating activities
Receipts from customers (Inclusive of GST)
Payments to suppliers and employees (Inclusive of GST)
Interest paid
Interest received
R&D tax offset received
Income tax (paid) refund
Net cash (outflows)/inflows from operating activities
22
Cash flows from investing activities
Payments for plant and equipment
Proceeds from sale or disposal of property, plant & equipment
Proceeds from disposal of other financial assets
Payment for intangibles
Net cash (outflows)/inflows from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowing
Net cash (outflows)/inflows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at end of year
1,671,695
(2,268,673)
(26,427)
18,990
162,690
(99,672)
(541,397)
(58,414)
-
207,531
(14,756)
134,361
-
(41,269)
(41,269)
(448,305)
926,394
478,089
1,208,566
(2,330,079)
(23,616)
43,900
-
20,144
(1,081,085)
(115,343)
207,586
50,000
(11,834)
130,409
164,438
(35,229)
129,209
(821,467)
1,747,861
926,394
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
18
Intec Ltd 2016 Annual Report
Notes to the Financial Statements 30 June 2016
1
Summary of significant accounting policies
These consolidated financial statements and notes represent those of Intec Ltd and controlled entities
(‘Consolidated Group’ or ‘Group’). The separate financial statements of the parent entity, Intec Ltd, have not
been presented within this financial report as permitted by amendments made to the Corporations Act 2001
effective from 28 June 2010.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards
Board ('IASB').
Historical cost convention
The financial statements have been prepared on an accruals basis and are prepared under the historical cost
convention, modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies. The
areas involving higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed within the relevant note.
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured in Australian dollars and
the consolidated financial statements are presented in Australian dollars, which is the Group’s functional and
presentation currency.
Going concern
The Company and controlled entities (the Group) generated an operating loss after income tax of $458,130
(2015: $856,446) and net cash outflows from operations of $541,397 (2015: $1,081,085) in the year ended 30
June 2016. At 30 June 2016, the Group had net assets of $1,766,899 (2015: $2,243,129) and cash balances of
$479,089 (2015: $926,394).
These matters give rise to a material uncertainty that may cast doubt whether the Group can continue as a going
concern and realise its assets and extinguish its liabilities in the ordinary course of business and at amounts stated
in the Financial Statements. The continuing viability of the Group and its ability to continue as a going concern and
meet its debts and commitments as and when they fall due are dependent upon the Group being successful in the
following:
• Commercialisation of the Optiflox® System with resultant increased product sales and technology leasing
fees;
The raising sufficient capital by way of either additional debt and/or equity capital; and
The receipt of proceeds from the sale of non-core assets.
•
•
The Directors are of the opinion that sufficient additional funding will be secured and are themselves likely to
participate in any future equity capital raising. The Financial Report has therefore been prepared on the basis of a
going concern. This basis presumes that funds from the above sources will be available to finance future
operations, and to repay liabilities and that the realisation of assets and settlement of liabilities will occur in the
normal course of business.
However, the Directors note that if sufficient funds are not raised through the abovementioned sources, the going
concern basis may not be appropriate with the result that the group may have to realise its assets and extinguish
its liabilities other than in the ordinary course of business and in amounts different from those stated in the
Financial Report.
19
Intec Ltd 2016 Annual Report
1
Summary of significant accounting policies - continued
Accounting policies
Accounting policies are selected and applied in a manner which ensures that the resultant financial information
satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying
transactions and other events is reported. The Group has adopted relevant new and revised accounting
standards and pronouncements with no material impact to the financial statements.
Fair value measurement
(b)
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement
and for disclosure purposes.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is available to the Group for similar financial
instruments.
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principle market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement
is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, are used, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise
is either not available or when the valuation is deemed to be significant. External valuers are selected based on
market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from
one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the
latest valuation and a comparison, where applicable, with external sources of data.
(c)
Financial instruments
Recognition and initial measurement
(i)
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions
to the instrument. For financial assets, this is equivalent to the date that the Company commits itself to either the
purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured
at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss immediately.
Classification and subsequent measurement
(ii)
Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate
method, or cost.
Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition
less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of
the difference between that initial amount and the maturity amount calculated using the effective interest
method.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm’s length transactions,
reference to similar instruments and option pricing models.
20
Intec Ltd 2016 Annual Report
1
Summary of significant accounting policies - continued
The effective interest method is used to allocate interest income or interest expense over the relevant period
and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees,
transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably
predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or
financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying
value with a consequential recognition of an income or expense item in profit or loss.
Loans and receivables
(iii)
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active
market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, where they are expected to mature within 12 months
after the end of the reporting period.
(iv)
Financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
Financial liabilities
Available-for-sale financial assets
(v)
Available-for-sale financial assets are non-derivative financial assets, principally equity securities that are either
designated as available-for-sale or not classified as any other category. After initial recognition, fair value
movements are recognised in other comprehensive income through the available-for-sale reserve in equity.
Cumulative gain or loss previously reported in the available-for-sale reserve is recognised in profit or loss when
the asset is derecognised or impaired.
Impairment
(vi)
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the
value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are
recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other
comprehensive income is reclassified to profit or loss at this point.
Financial guarantees
(vii)
Where material, financial guarantees issued that require the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payment when due are recognised as a
financial liability at fair value on initial recognition.
The guarantee is subsequently measured at the higher of the best estimate of the obligation and the amount
initially recognised less, when appropriate, cumulative amortisation in accordance with AASB 118: Revenue.
Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118.
The fair value of financial guarantee contracts has been assessed using a probability-weighted discounted cash
flow approach. The probability has been based on:
–
–
the likelihood of the guaranteed party defaulting in a year period;
the proportion of the exposure that is not expected to be recovered due to the guaranteed party
defaulting; and
the maximum loss exposed if the guaranteed party were to default.
–
De-recognition
(viii)
Financial assets are de-recognised where the contractual rights to receipt of cash flows expire or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations
are discharged, cancelled or expired. The difference between the carrying value of the financial liability
extinguished or transferred to another party and the fair value of consideration paid, including the transfer of
non-cash assets or liabilities assumed, is recognised in profit or loss.
Provisions
(d)
Provisions are recognised when the consolidated entity has a present obligation as a result of a past event, it is
probably the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting date, taking into account the risks and uncertainties
surrounding the obligation. If the time value of money is material, provisions are discounted using a current
pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is
recognised as a finance cost.
21
Intec Ltd 2016 Annual Report
1
Summary of significant accounting policies - continued
(ii)
Provisions for legal claims are recognised when:
Provisions for legal claims
•
•
•
the Group has a present legal or constructive obligation as a result of past events;
it is more likely than not that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
Provisions for close down and restoration and for environmental clean-up costs
(iii)
Close down and restoration costs include the dismantling and demolition of infrastructure and the removal of
residual materials and remediation of disturbed areas. Estimated close down and restoration costs are provided
for in the accounting period when the obligation arising from the related disturbances occurs. Provisions for
close down and restoration costs do not include any additional obligations which are expected to arise on the
basis of a closure plan.
As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary in
response to many factors including changes to the relevant legal requirements, the emergence of new
restoration techniques or experience. As a result, there could be significant adjustments to the provision for
close down and restoration and environmental clean-up, which would affect future financial results.
Goods and Services Tax (GST)
(e)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the taxation authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
tax authority.
Leases
(f)
The determination of whether an arrangement is or contains a lease is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use
of a specific asset or assets and the arrangement conveys a right to use the asset.
A distinction is made between finance leases (Note 14), which effectively transfer from the lessor to the lessee
substantially all the risks and benefits incidental to the ownership of leased assets, and operating leases, under
which the lessor effectively retains substantially all such risks and benefits.
Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or
if lower, the present value of minimum lease payments. Lease payments are allocated between the principal
component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining
balance of the liability.
Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter of
the asset's useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain
ownership at the end of the lease term.
New Accounting Standards and interpretations
(g)
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30
June 2016. The consolidated entity's assessment of the impact of these new or amended Accounting Standards
and Interpretations, most relevant to the consolidated entity, are set out below.
AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard
provides a single standard for revenue recognition. The core principle of the standard is that an entity will
22
Intec Ltd 2016 Annual Report
1
(g) New Accounting Standards and interpretations - continued
Summary of significant accounting policies – continued
recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. The
standard will require: contracts (either written, verbal or implied) to be identified, together with the separate
performance obligations within the contract; determine the transaction price, adjusted for the time value of
money excluding credit risk; allocation of the transaction price to the separate performance obligations on a
basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct
observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk
will be presented separately as an expense rather than adjusted to revenue. For goods, the performance
obligation would be satisfied when the customer obtains control of the goods. For services, the performance
obligation is satisfied when the service has been provided, typically for promises to transfer services to
customers. For performance obligations satisfied over time, an entity would select an appropriate measure of
progress to determine how much revenue should be recognised as the performance obligation is satisfied.
Contracts with customers will be presented in an entity's statement of financial position as a contract liability, a
contract asset, or a receivable, depending on the relationship between the entity's performance and the
customer's payment. Sufficient quantitative and qualitative disclosure is required to enable users to understand
the contracts with customers; the significant judgments made in applying the guidance to those contracts; and
any assets recognised from the costs to obtain or fulfil a contract with a customer. The consolidated entity will
adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the consolidated
entity.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard
replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance
leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position,
measured as the present value of the unavoidable future lease payments to be made over the lease term. The
exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal
computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use'
asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the
capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct
costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating
lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating
costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease
expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation)
results will be improved as the operating expense is replaced by interest expense and depreciation in profit or
loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated
into both a principal (financing activities) and interest (either operating or financing activities) component. For
lessor accounting, the standard does not substantially change how a lessor accounts for leases. The
consolidated entity will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed
by the consolidated entity.
2
Financial instruments and financial risk management
The Group's activities expose it to a variety of financial instruments with financial risks. The Group’s financial
instruments are:
Consolidated
Carrying amount
Financial assets
Cash and cash equivalents
Receivables (Note 8)
Other financial assets (Note 10)
Financial liabilities
Trade and Other Payables (Note 13)
Loans and borrowings (Note 14)
2016
$
478,089
214,987
2,900
695,976
205,136
307,814
512,950
2015
$
926,394
320,569
57,200
1,304,163
277,754
369,184
646,938
23
Intec Ltd 2016 Annual Report
2
Financial instruments and financial risk management – continued
The financial risks associated with the financial instruments and the business are market risk (including
currency, cash flow, interest rate and price risk), credit risk and liquidity risk. The Group's overall risk
management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. Risk management is carried out by Company
management and the Board of Directors. Financial risks are identified and evaluated and, where considered
necessary, strategies are put in place to investigate and/or minimise such risks.
Foreign exchange risk
(a)
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are
denominated in a currency that is not the entity’s functional currency. The Group has a trade finance facility
utilised for the purchase of US$ denominated invoices. Purchases through the facility are transacted at the
prevailing spot A$/US$ exchange rate and the outstanding amount under the facility is always denominated in
A$. The Group has not entered into any foreign currency hedging contracts during the year.
Credit risk
(b)
Credit risk arises from the potential failure of counterparties to meet their obligations under the respective
contracts at maturity. The Group has policies in place to ensure that sales of product are made to customers
with an appropriate credit history. There is limited credit risk on financial assets of the Group since there is
limited exposure to individual customers and the Group’s exposure is limited to the amount of cash, short term
deposits and receivables which have been recognised in the statement of financial position. Deposits and
financial arrangements are held in high rated financial institutions.
Liquidity risk
(c)
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed finance facilities.
The Group's financing activities are managed centrally by maintaining an adequate level of cash and cash
equivalents to finance the Group's operations. The Group’s surplus funds are also managed centrally by placing
them with reputable financial institutions.
The risk implied from the values shown in the following table, reflects a balanced view of cash inflows and
outflows. Trade payables and other financial liabilities originate from the financing of assets used in the Group’s
ongoing operations such as property, plant and equipment and investments in working capital, inventories and
trade receivables.
Cash flow and fair value interest rate risk
(d)
The Group's interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Group to cash
flow interest rate risk.
Interest rate exposure and maturity analysis of financial assets
Consolidated
Interest rate exposure
Credit Risk
Weighted
average
effective
interest
rate
%
Carrying
amount
Fixed
interest
rate
Variable
interest
rate
Non-
interest
bearing
Nominal
amount
Less than 12
months
1-5 years
2.38
478,089
214,987
-
-
478,089
-
-
214,987
2,900
695,976
-
-
- 478,089
2,900
217,887
205,136
-
-
205,136
6.00
307,814
512,950
-
307,814
- 307,814
-
205,136
-
-
-
-
-
-
-
478,089
189,797
-
25,190
2,900
670,786
-
25,190
205,136
-
236,491
441,627
71,323
71,323
2016
Cash and cash
equivalents
Receivables
Available for sale
financial assets at cost,
unlisted investments
Payables:
Trade creditors &
accruals
Loans and
borrowings
24
Intec Ltd 2016 Annual Report
2
Financial instruments and financial risk management – continued
Consolidated
Interest rate exposure
Credit Risk
Weighted
average
effective
interest
rate
%
Carrying
amount
Fixed
interest
rate
Variable
interest
rate
Non-
interest
bearing
Nominal
amount
Less than 12
months
1-5 years
2.69
-
926,394
320,569
-
-
6.00
57,200
1,304,163
277,754
369,184
646,938
-
-
-
-
-
-
-
926,394
-
-
320,569
-
926,394
57,200
377,769
-
277,754
369,184
369,184
-
277,754
-
-
-
-
-
-
-
926,394
304,036
-
16,533
57,200
1,287,630
-
16,533
277,754
255,466
533,220
-
113,718
113,718
2015
Cash and cash
equivalents
Receivables
Available for sale
financial assets at cost,
unlisted investments
Payables:
Trade creditors &
accruals
Loans and
borrowings
Fair value
(e)
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an
orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the
measurement date.
The fair values of financial assets and financial liabilities are determined as follows:
•
•
the fair value of financial assets and financial liabilities with standard terms and conditions and traded in
active liquid markets are determined with reference to quoted market prices; and
the fair value of other financial assets and financial liabilities are determined in accordance with generally
accepted pricing models based on discounted cash flow analysis.
The Group considers that the carrying amount of financial assets and financial liabilities recorded in the financial
statements to be a fair approximation of their fair values, because of the short-term nature of the financial
instruments and the expectation that they will be paid in full.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and
classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.
The fair value hierarchy consists of the following levels:
• quoted prices in active markets for identical assets or liabilities (Level 1);
•
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
•
2016
Available for sale financial assets
- unlisted investments
2015
Available for sale financial assets
- listed investments
- unlisted investments
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
2,900
2,900
54,300
-
54,300
-
2,900
2,900
-
-
-
-
-
2,900
2,900
54,300
2,900
57,200
Assets available for sale are measured at fair value on a recurring basis. There were no transfers between levels
during the year ended 30 June 2016.
(f)
The impact of changes in interest rate and foreign currency does not have a significant impact on the Group.
Sensitivity Analysis
25
Intec Ltd 2016 Annual Report
3
Discontinued operations
On 30 September 2014, the consolidated entity sold its 50% shareholding in Intec International Projects Pty
Limited (‘IIP’) for consideration of $50,000 resulting in a gain on sale before income tax of $48,221. Previously,
Intec and IIP had agreed to an extensive cross-licensing and technology transfer in relation to Intec’s patent
portfolio, for which Intec also received a payment of $50,000. IIP was not trading up to the date of sale and
future losses were projected.
Financial performance information
Administration expense
Loss before income tax expense
Income tax expense
Loss after income tax expense
Gain on disposal before income tax expense
Income tax expense
Gain on disposal after income tax expense
Profit (loss) after income tax from discontinued operations
Cash flow information
Net cash from (used in) operating activities
Net increase (decrease) in cash from discontinued operations
The proceeds from disposal of $50,000 were deposited into the parent
Company.
Carrying amount of assets and liabilities disposed
Cash and cash equivalents
Trade and other payables
Net assets
Details of the disposal
Total sale consideration
Carrying amount of net assets disposed
Gain on disposal before tax income
Income tax expense
Gain on disposal after income tax
4
Segment information
30 June 2016
$
30 June 2015
$
-
-
-
-
-
-
-
-
-
-
(30)
(30)
-
(30)
48,221
-
48,221
48,191
(30)
(30)
1,785
(6)
1,779
50,000
(1,779)
48,221
-
48,221
The Group operates in primarily one geographical segment, namely Australia. The primary business segment is
the treatment of industrial waste including the manufacture and supply of chemicals for the treatment of waste
water. The Group has one major customer; Lion Diary & Drinks Limited.
Operating and business segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision makers. 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.
5
Revenue from continuing operations
Sales revenue
Treatment fees & product sales
Other revenue
Interest received
Government subsidies
Net gain on disposal of non-current assets
Sundry income
Total revenue
Consolidated
2016
$
2015
$
1,352,346
1,352,346
16,726
162,690
171,331
71,117
421,864
1,774,210
1,316,493
1,316,493
39,705
3,021
114,643
63,100
220,469
1,536,962
26
Intec Ltd 2016 Annual Report
5
Revenue from continuing operations – continued
Revenue is recognised at fair value when it is probable that the economic benefit will flow to the consolidated
entity and the revenue can be reliably measured. The amount of revenue is not considered to be reliably
measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on
historical results, taking into consideration the type of customer, the type of transaction and specifics of each
arrangement.
Sales of goods and disposal of assets is recognised at the point of sale, which is where the customer has taken
delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract.
Amounts disclosed as revenue are net of sales returns and trade discounts.
Consulting services and treatment fees are recognised using the percentage-of-completion method for fixed-fee
arrangements or as the services are provided for time-and-materials arrangements.
Other income, which includes government grants and any other forms of government assistance, is recognised
on receipt or when reasonable assurance that income will be earned is established.
6
Expenses including auditor remuneration
Profit/(Loss) before income tax includes the following specific expenses
Rental expense relating to operating leases
Impairment expense – financial assets
Impairment expense – patents
Consolidated
2016
2015
105,137
117,981
-
-
3,100
10,000
Audit and Review of the financial report – Rothsay Chartered Accountants
No other services have been provided by the auditor.
29,500
28,500
7
Income tax (benefit)/expense
The components of income tax (benefit)/expense comprise
(a)
Current tax
Deferred tax
Deferred tax not recognised
Income tax (benefit)/expense
Consolidated
2016
$
2015
$
(100,670)
(19,785)
205,416
84,961
(242,826)
7,415
226,528
(8,883)
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on
the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
(b)
Reconciliation of income tax (benefit)/expense to prima facie taxpayable
Profit/(Loss) from operations before income tax (benefit)/expense
Tax at the Australian tax rate of 30% (2015: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
- Non-deductible expense
- Tax losses not recognised/(recouped)
- Temporary differences recognised / (previously not recognised)
Income tax (benefit)/expense
(373,169)
(111,951)
(865,329)
(259,599)
(8,504)
194,514
10,902
84,961
24,188
242,826
(16,298)
(8,883)
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 30% (2015: 30%)
All unused tax losses were incurred by Australian entities.
64,794,786
19,438,436
64,080,927
19,224,278
27
Intec Ltd 2016 Annual Report
7
Income tax (benefit)/expense - continued
Tax losses will only be recognised and obtained if it is probable:
(i)
(ii)
(iii)
the Group will derive future assessable income of a nature and an amount sufficient to enable the
benefit from the deductions for the losses and temporary difference to be realised;
the Group complies with the conditions for deductibility imposed by the tax legislation such as
continuity of ownership and same business test; and
no changes in tax legislation adversely affect the Group in realising the benefit from deductions for the
losses and temporary differences.
Deferred Tax Asset/Liability
(c)
The deferred tax liability of $65,882 (2015: $74,765) relates to the brand name acquired on acquisition of
Science Developments Pty Ltd net of amortisation expense. Deferred tax assets and liabilities are recognised for
allowable temporary differences at the tax rates expected to apply when the assets are recovered or liabilities
are settled, based on those tax rates that are enacted or substantively enacted.
Tax Consolidation Legislation
(d)
Intec Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the
tax consolidation regime. This commenced 1 July 2008. The head entity and each subsidiary in the tax
consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated
group has supplied the ‘separate taxpayer within group’ approach in determining the appropriate amount of
taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits
assumed from each subsidiary in the consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognized as
amounts receivable from or payable to other entities in the tax consolidated group. The tax funding
arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax
consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a
distribution by the subsidiaries to the head entity.
8
Current assets - trade and other receivables
Unsecured
Trade debtors
Other receivables
Financial assets classified as trade & other receivables
Prepayments
Income tax receivable
Total trade & other receivables
Consolidated
2016
$
2015
$
189,580
25,407
214,987
2,293
11,253
228,533
301,833
18,736
320,569
537
5,425
326,531
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.
Provision for impairment of receivables
(a)
Current trade and other receivables are generally on 30-day terms. A provision for impairment is recognised
when there is objective evidence that an individual trade or other receivable is not recoverable. Management
look at history of payments and solvency of the debtor. No impairment has been required at year end.
Credit Risk — trade and other receivables
(b)
There is no significant concentration of credit risk to any single entity. No security is held, and no terms have
been renegotiated, which would otherwise be past due or impaired. Amounts are considered as ‘past due’ when
the debt has not been settled, within the terms and conditions agreed between the Group and the customer.
There is no trade debtor or other receivable amount where collateral has been received as security or pledged.
28
-
Intec Ltd 2016 Annual Report
8 Current assets – trade and other receivables - continued
2016
Gross
amount
Past due
and
impaired
Within trade
terms
$
$
Trade debtors 189,580
2015
Gross
amount
-
Past due
and
impaired
$
Trade debtors 301,833
$
-
Within trade
terms
< 30
$
$
151,048
94,255
< 30
$
31 - 60
61 - 90
>90
$
$
$
96,136
63,742
9,900
19,802
31 - 60
61 - 90
>90
9
Current assets - Inventories at cost
Spares and reagents – finished goods
$
-
$
56,530
Consolidated
2016
$
278,040
278,040
2015
$
255,777
255,777
Raw materials and finished goods are stated at the lower of cost and net realisable value on a ‘first in first out’
basis. Cost comprises direct materials and delivery costs, import duties and other taxes. Costs of purchased
inventory are determined after deducing rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business, less the recorded cost.
There is no impairment at year end.
10
Non-current assets - Other financial assets
Financial assets available for sale
Shares in listed companies, at market value
Shares in unlisted companies, at cost
Total available for sale financial assets
Consolidated
2016
$
-
2,900
2,900
2015
$
54,300
2,900
57,200
The Group disposed of its 18,100,000 shares in Bass Metals Ltd (BSM). BSM is traded on the Australian Stock
Exchange. A profit on disposal of $171,331 was recorded in profit and loss.
11
Non-current assets - Plant and equipment
30 June 2015 - Consolidated
Office
equipment
$
Plant and
equipment
$
Total
$
At cost
31,028
319,312
350,340
Accumulated Depreciation
(25,743)
(103,274)
(129,017)
Net book amount at 30 June 2015
5,285
216,038
221,323
Movement in carrying amounts
Opening net book amount
8,129
286,458
294,587
Additions
Disposals
-
-
115,343
115,343
(156,310)
(156,310)
Depreciation charge
(2,844)
(29,453)
(32,297)
Closing net book amount at 30 June 2015
5,285
216,038
221,323
29
Intec Ltd 2016 Annual Report
11
Non-current assets - Plant and equipment - continued
30 June 2016 - Consolidated
At cost
Office
equipment
$
Plant and
equipment
$
Total
$
31,028
377,726
408,754
Accumulated Depreciation
(28,355)
(151,854)
(180,209)
Net book amount at 30 June 2016
2,673
225,872
228,545
Movement in carrying amounts
Opening net book amount
5,285
216,038
221,323
Additions
Disposals
-
-
58,414
58,414
-
-
Depreciation charge
(2,612)
(48,580)
(51,192)
Closing net book amount at 30 June 2016
2,673
225,872
228,545
All plant and equipment is stated at historical cost less accumulated depreciation and impairment. Depreciation
on assets is calculated using the straight line method to allocate their cost, net of their residual values, over
their estimated useful lives, as follows:
• Office equipment
• Plant and equipment
2-8 years
4-7 years
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
12
Non-current assets - Intangible assets
Intellectual property – Patents
Opening net book amount
Disposals
Closing net book amount at 30 June
Identified intangibles – Trademarks and IP
Opening net book amount
Acquired during the year
Amortisation of trademarks
Closing net book amount at 30 June
Goodwill on consolidation
Opening net book amount
Acquired during the year
Closing net book amount at 30 June
Total closing net book amount at 30 June
Consolidated
2016
$
2015
$
-
-
-
258,887
14,756
(34,571)
239,072
1,030,018
-
1,030,018
1,269,090
10,000
(10,000)
-
278,827
11,834
(31,774)
258,887
1,030,018
-
1,030,018
1,288,905
Goodwill arises on the acquisition of a business and is recorded at cost less accumulated amortisation. Goodwill
is calculated as the excess of the sum of:
i.
ii.
iii.
the consideration transferred;
any non-controlling interest; and
the acquisition date fair value of any previously held equity interest; over the acquisition date
fair value of net identifiable assets acquired.
Goodwill is not amortised. Instead goodwill is tested annually for impairment, or more frequently if events or
changes in circumstances indicate that it might be impaired. Impairment losses on goodwill are taken to profit
or loss and are not subsequently reversed.
Judgement and estimate
(a)
No impaired has been incurred to date. When assessing the recoverable amount of goodwill a value-in-use
calculation using a discounted cashflow model based on a 5 year projection, and a terminal value multiple has
been used. The final 4 of those years are based on an extrapolation of the prepared budget for year 1.
30
Intec Ltd 2016 Annual Report
12 Non-current assets - Intangible assets - continued
Key assumptions in the discounted cashflow model include:
a. Post-tax discount rate of 8% per annum;
b. Revenue growth of 93% in 2017, 66% in 2018 reducing to 4% in 2019;
c. Growth in gross margin of 103% in 2016, 76% in 2017 reducing to 5% in 2018; and
d. Average per annum increase in operating expenses of 18%.
Sensitivity to change of assumptions
If the next year’s financial budget used in the value in use calculation had been 10% lower than management’s
estimates at 30 June 2016, the Group would have a recoverable amount in excess of $283,000 against the
carrying amount of the cash generating unit to which the goodwill relates. The cash generating unit is Science
Development Pty Limited. If the post-tax discount rate applied to the cash flow projections of this CGU had
been 2% higher than management’s estimates (10% instead of 8%), the Group would have a recoverable
amount in excess of $614,000 against the carrying amount of intangible assets and property, plant and
equipment.
Intangible assets other than Goodwill
(b)
Trademarks and IP are recognised at cost of acquisition. They have a finite life and are carried at cost less any
accumulated amortisation and any impairment losses. Trademarks are amortised over their useful lives of 10
years. Impairment is assessed annually with reference to ownership and expected use.
13
Current liabilities – Trade and other payables
Unsecured liabilities
Trade payables
Payables – related parties, refer to note 19
Total trade and other payables
14
Borrowings
Current
Secured liabilities
Finance Lease Liability
Trade Finance Facility
Total
Non-current
Secured liabilities
Finance Lease Liability
Consolidated
2016
$
2015
$
105,136
100,000
205,136
177,754
100,000
277,754
Consolidated
2016
$
2015
$
39,956
196,535
236,491
38,830
216,636
255,466
71,323
113,718
The leases relate to a motor vehicle provided to the Managing Director and plant and equipment owned by
Science Developments Pty Ltd. The motor vehicle lease liability is effectively secured over the motor vehicle.
The shareholders of Science Developments Pty Ltd have provided guarantees for the finance lease relating to
plant and equipment.
The trade finance facility limit is $250,000 of which $53,465 was unused at 30 June 2016 (2015: $33,364). The
facility is secured by way of a guarantee by a Director related Company of a Director of Science Developments
Pty Ltd.
(a)
The Group leases a motor vehicle under a five-year non-cancellable finance lease.
Lease commitments
Commitments for minimum lease payments in relation to a non-
cancellable finance lease is payable are as follows:
Within one year
Later than one year but not later than five years
Total commitment
Deduct future finance charges
Lease liability
Consolidated
2016
$
2015
$
49,100
81,281
130,381
(19,102)
111,279
49,100
133,112
182,212
(29,664)
152,548
31
Intec Ltd 2016 Annual Report
14
Borrowings - continued
The motor vehicle related to the finance lease has a written down value of $54,011 (2015: $63,598) and the
lease expires within five years. The terms of the lease provide for the Group to acquire the motor vehicle for an
agreed residual value at the end of the lease period.
Lease commitments include a contracted amount for plant and equipment with a written down value of $68,903
(2015: $89,150) secured under Chattel mortgage expiring within three years and secured by the shareholders of
Science Developments Pty Limited.
15
Current liabilities – Provisions
Annual Leave
Long Service Leave
Total
Consolidated
2016
52,897
86,569
139,466
2015
33,892
77,406
111,298
The provision for annual leave and long service leave represents the present value of expected future payments
to be made in respect of services provided by employees up to the reporting date. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
16
Contributed equity
(a)
Share capital
2016
Shares
2015
Shares
Ordinary shares
299,818,669
299,818,669
(b)
Movements in ordinary share capital
Date
Details
01-07-2014
30-06-2015
Balance
Shares issued during the year
Balance
Shares issued during the year
30-06-2016
Balance
Number of
shares
Issue price
(cents)
$
299,818,669
-
299,818,669
-
299,818,669
71,641,977
-
71,641,977
-
71,641,977
Ordinary shares
(c)
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of shares held. On a show of hands every holder of ordinary shares present at a
meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Contributed equity
(d)
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.
Capital Management
(e)
Management controls the capital of the Group in order to maintain a good debt to equity ratio and ensure that
the Group can fund its operations and continue as a going concern. The Group’s debt and capital includes
ordinary share capital and financial liabilities supported by financial assets. There are no externally imposed
capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial
risks and adjusting its capital structure in response to changes in these risks and in the market. These
responses include the management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since
the prior year. The quantitative data the Group assesses as capital is $1,766,899 which is consistent with the
net assets of the Group (2015: $2,243,129).
32
Intec Ltd 2016 Annual Report
17
Reserves
Balance 1 July 2014
Option expense
Revaluation
Balance 30 June 2015
Option expense
Revaluation
Assets sold during the year
Balance 30 June 2016
Consolidated
Asset revaluation
reserve
Share based
payments reserve
-
-
18,100
18,100
-
22,465
(40,565)
-
2,624,037
29,557
-
2,653,594
-
-
-
2,653,594
Total
2,624,037
29,557
18,100
2,671,694
-
22,465
(40,565)
2,653,594
The asset revaluation reserve is used to recognise increments and decrements in the fair value of financial
assets available for sale. Refer to Note 10.
18
Non-controlling interest
Issued capital
Reserves
Retained earnings
Balance 30 June 2016
Consolidated
2016
$
9,005
101,575
59,410
169,990
2015
$
9,005
101,575
36,952
147,532
The non-controlling interest at 30 June 2016 was a 50% equity holding in Science Developments Pty Ltd.
Refer to Note 19 for further details of the subsidiary with non-controlling interests that are material to the
consolidated entity.
19
Related party transactions
(a)
The parent entity is Intec Ltd. The financial information of the parent is disclosed below.
Parent entity
(i)
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Option expense reserve
Asset revaluation reserve
Total equity
Financial performance
(ii)
Profit/(Loss) for the year
Other comprehensive income
Total comprehensive loss
Consolidated
2016
$
2015
$
479,843
1,458,297
1,938,140
940,055
1,523,751
2,463,806
204,551
44,504
249,055
198,139
55,202
253,341
71,948,494
(72,820,995)
71,948,494
(72,317,715)
2,561,586
-
1,689,085
2,561,586
18,100
2,210,465
(503,280)
(18,100)
(521,380)
(696,360)
18,100
(678,260)
33
Intec Ltd 2016 Annual Report
19
Related party transactions - continued
(iii)
There have been no guarantees entered into by the parent entity in relation to the debts of its
subsidiaries.
There were no contingent liabilities or capital commitments of the parent entity at 30 June 2016.
(b)
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries:
Subsidiaries
Name of entity
Investments held by Intec Ltd
Intec Copper Pty Ltd
Intec Environmetals Pty Ltd
Science Developments Pty Ltd
Country of
incorporation
Class of shares
Australia
Australia
Australia
Ordinary
Ordinary
Various
Equity holding
2015
2016
%
%
100
100
50
100
100
50
Investments held by Intec Envirometals Pty Ltd
Intec Zeehan Residues Pty Ltd (formerly Encore
Metals NL)
Australia
Ordinary
100
100
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the and the book value of the share of the non-controlling interest
acquired is recognised directly in in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income, statement of financial position and statement of changes in equity of
the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest
in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss in profit or loss.
Summarised financial information of the subsidiary with non-controlling interests that are material to the
consolidated entity is set out below:
2016
$
2015
$
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Summarised statement of profit or loss and other comprehensive income
Profit/(Loss) before income tax expense
Income tax (expense)
Profit/(Loss) after income tax expense
Other comprehensive income
Total comprehensive income
495,299
92,716
588,015
374,945
26,820
401,765
186,250
159,485
(92,844)
66,641
-
66,641
559,414
164,550
723,964
544,839
58,516
603,355
120,609
(58,126)
-
(58,126)
-
(58,126)
34
Intec Ltd 2016 Annual Report
19
Related party transactions - continued
Statement of cashflows
Net cash from operating activities
Net cash (used in) investing activities
Net cash (used in) from financing activities
Net increase/(decrease) in cash and cash equivalents
Other financial information
Profit/(Loss) attributable to non-controlling interests
Accumulated non-controlling interests at end of reporting period
(c)
The following transactions occurred with related parties:
Transactions with related parties
Transaction with subsidiary
(i)
The parent Company, Intec Ltd, provided an unsecured loan, on
commercial terms, to its 50% owned subsidiary Science Developments
Pty Ltd.
Mr Paul Pembroke and Mr Mark Wells
(ii)
Mr Paul Pembroke and Mr Mark Wells, Directors and shareholders of
Science Developments Pty Ltd, both provided unsecured loans of
$50,000 on commercial terms to Science Developments Pty Ltd. Interest
is being charged at 6%. The loans are unsecured.
89,036
(73,170)
(31,696)
(15,830)
(51,899)
(100,982)
129,209
(23,672)
32,820
169,990
(29,063)
147,532
2016
$
2015
$
100,000
100,000
(d)
Loans to subsidiaries
Beginning of the year
Loans advanced/(received)
Loans written off - fully provided for
End of year
Less provision for doubtful debts
Carrying value at end of year
100,000
100,000
Consolidated
2016
$
57,164,491
16,642
(529,183)
56,651,950
(56,551,950)
100,000
2015
$
57,226,332
(61,841)
-
57,164,491
(57,064,491)
100,000
Provisions for doubtful debts have been raised in relation to outstanding balances, and an expense has been
recognised in respect of debts due from subsidiaries, which may be considered doubtful based on the net assets
of each subsidiary. The movement in the provision mirrors to the movement in loan balances detailed above.
The loans are interest free and unsecured.
All transactions were made on normal commercial terms and conditions, except that there are no fixed terms
for the repayment of loans between the parties.
Key management personnel
(e)
Disclosures relating to key management personnel are set out in the Remuneration Report on pages 8 to 11.
There were no outstanding loans with key management personnel.
Short-term employee benefits
Termination benefits
Post-employment benefits
Share-based payments
20
Profit/(Loss) per share
2016
$
352,773
-
31,297
-
384,070
2015
$
402,279
110,292
34,551
26,870
573,992
Basic earnings per share
Earnings per share
(i)
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
year.
35
Intec Ltd 2016 Annual Report
20
Profit/(Loss) per share - continued
Diluted earnings per share
(ii)
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Basic and diluted profit/(loss) per share
(a)
Profit/(Loss) per share from continuing operations
attributable to the ordinary equity holders of the Company
Consolidated
2016
Cents
2015
Cents
(0.15)
(0.30)
Reconciliations of profit/(loss) used in calculating earnings pershare
(b)
Basic profit/(loss) per share
Profit/(Loss) attributable to the ordinary equity holders of the Company
used in calculating basic profit/(loss) per share
from continuing operations
Less: Adjustment for diluted
(458,130)
-
(458,130)
(904,637)
-
(904,637)
In the 2016 and 2015 comparative financial year, potential ordinary shares, being the balance of options
granted at balance date, are not considered dilutive as the conversion of these components to equity would
result in a decrease in the net loss per share.
(c) Weighted average number of shares used as the denominator
2016
Number
2015
Number
Weighted average number of ordinary shares used as the denominator in
calculating basic profit/(loss) per share
Weighted average number of dilutive options outstanding
Weighted average number of ordinary shares used as the denominator
in calculating diluted profit/(loss) per share
299,818,669
8,800,000
299,818,669
6,050,000
308,618,669
305,868,669
(d)
Information concerning the classification of securities
Options
Options granted to employees under the Intec Employee Share Scheme and to other entities have been included in
the determination of diluted profit/(loss) per share. No options have been included in the determination of basic
profit/(loss) per share. Details relating to the options are set out in note 21.
21
Share based payments
Employee Share Scheme
Share based compensation benefits are provided to employees via the Intec Employee Share Scheme.
At the 2014 Annual General Meeting, shareholders approved the Intec Employee Share Scheme (the Scheme).
All Directors, employees and consultants are eligible to participate in the Scheme. Options granted under the
Scheme to eligible participants are for no additional consideration. Options are granted for a five-year period,
and vest and are exercisable immediately, unless otherwise stated. Options granted under the Scheme carry no
dividend or voting rights. The granting of options is at the Board’s discretion and no individual has a contractual
right to receive options.
The fair value of options granted under the Intec Employee Share Scheme is recognised as an employee benefit
expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over
the period during which the employees become unconditionally entitled to the options.
The fair value at grant date is determined using share option valuation models that take into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date, the expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the
option.
36
Intec Ltd 2016 Annual Report
21
Share based payments - continued
The fair value of the options granted is adjusted to reflect market vesting conditions, but excludes the impact of
any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting
conditions are included in assumptions about the number of options that are expected to become exercisable.
At each reporting date, the entity revises its estimate of the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into account the most recent estimate.
Upon the exercise of options, the balance of the share based payments reserve relating to those options is
transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are
credited to share capital.
The terms and conditions of each grant of options affecting remuneration in the previous, this or future
reporting periods are as follows:
Issue
Date
Expiry
Date
Exercise
Price
Balance
at
1 July 2015
Granted
during
year
Lapsed
during
year
Exercised
during
year
09-12-20111
10-12-20142
Total Options on issue
21-11-2016
28-11-2019
$0.030
$0.025
3,300,000
5,500,000
8,800,000
1. Granted under previous Intec Option Plan.
2. Granted under Intec Employee Share Scheme
-
-
-
-
-
-
-
-
-
Vested &
exercisable as
at
30 June 2016
3,300,000
5,500,000
8,800,000
There were no employee options granted during the year (2015: 5,500,000). The fair value of the options at
grant date was nil (2015: $29,557).
Shares provided on exercise of remuneration options
No ordinary shares (2015: Nil) in the Company were provided as a result of the exercise of remuneration options
to eligible participants in the Scheme. Accordingly, there were no expenses arising from share based payment
transactions recognised in the statement of comprehensive income.
22
Cash and Cash Equivalents
(a) Reconciliation of profit/(loss) after income tax to net cash flows from operating activities
Operating profit/(loss) after income tax
Non cash items and non operating cash flows
included in statement of comprehensive income
Depreciation and amortisation
Impairment expense
Share based payments
Gain on sale of non-current assets
Changes in assets and liabilities
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventories
Increase/(decrease) in trade creditors
Increase/(decrease) in trade finance facility
Increase/(decrease) in provisions
Increase/(decrease) in deferred tax liability
Net cash (outflows)/inflows from operating activities
Consolidated
2016
$
2015
$
(458,130)
(856,446)
85,763
-
-
(171,331)
97,998
(22,263)
(72,618)
(20,101)
28,168
(8,883)
(541,397)
64,071
13,100
29,557
(164,643)
(137,013)
(61,257)
(23,494)
100,974
(37,052)
(8,882)
(1,081,085)
37
Intec Ltd 2016 Annual Report
22
Cash and Cash Equivalents - continued
(b) Current assets - cash and cash equivalents
Cash at bank and on hand
Total
Consolidated
2016
$
478,089
478,089
2015
$
926,394
926,394
The accounts are interest bearing at interest rates between 1.50% and 1.75% (2015 – 1.90% and 2.90%).
23
Contingencies
Contingent assets
(a)
The Group holds a 2.5% net smelter royalty in relation to future base metals extracted from certain tenements
in the Hellyer/Que River region of Tasmania. The Group also holds a mining lease and retention licence covering
a stockpile of zinc-bearing residue near Zeehan, Tasmania.
As a result of a transaction entered into by Intec International Projects Pty Ltd (“IIP”) with Monument Mining
Limited, a Company listed on the Toronto Stock Exchange, Intec is entitled to receive a 5% royalty on fees
generated by IIP in relation to Intec Process applications. This transaction occurred after Intec divested its 50%
shareholding in IIP. In addition, Intec retains its rights to its portion of unpaid fees relating to the IRC Project.
(b)
The parent entity and Group had no contingent liabilities at 30 June 2016 (2015: nil).
Contingent liabilities
(c)
There are no minimum annual expenditure requirements attached to the tenements held by the Group.
Tenement commitments
24
Events occurring after the reporting date
On 22 August 2016, the Company announced that it had agreed a six-month extension to the term i.e. to 28
February 2017, of its option to acquire the remaining 50% of Science Developments Pty Ltd.
There are no other matters or circumstances that have arisen since 30 June 2016 that have significantly
affected or may significantly affect the consolidated entities operations, the results of these operations, or the
consolidated entities state of affairs in future financial years.
These financial statements were authorised by the Board of Directors on 30 September 2016.
38
Intec Ltd 2016 Annual Report
Directors’ Declaration
In the Directors’ opinion:
(a)
(b)
(c)
(d)
(e)
the financial statements and notes set out on pages 14 to 38 are in accordance with the Corporations Act
2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
giving a true and fair view of the consolidated financial position as at 30 June 2016 and of its
performance for the financial year ended on that date; and
(ii)
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
the remuneration disclosures set out on pages 8 to 11 of the Directors’ Report comply with Accounting
Standard AASB 124 Related Party Disclosures and the Corporations Regulations; and
The financial statements comply with International Financial Reporting Standards as described in Note 1
to the financial statements; and
The Directors have been given the declarations by the chief executive officer and chief financial officer
required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Kieran Rodgers
Managing Director
Sydney
30 September 2016
39
INDEPENDENT AUDITOR’S REPORT
To the members of Intec Limited
Report on the Financial Report
We have audited the accompanying financial report of Intec Limited, which comprises the consolidated
statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, notes comprising a summary of significant accounting policies and other
explanatory information, 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.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the
directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial
Statements, that the 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. Those standards require that we comply with relevant
ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable
assurance about whether the financial report is free from material misstatement.
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 of the financial
report that gives a true and fair view 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of Intec Limited, would be in the same terms if given to the directors as at the time of
this auditor’s report.
40
Opinion
In our opinion:
(a)
the financial report of Intec 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 2016 and of
its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1.
Emphasis of Matter
Without modifying our opinion, we draw attention to Note 1(a) in the financial report, which indicates that the
consolidated entity generated an operating loss after income tax of $458,130 (2015: $856,446) and net cash
outflows from operations of $541,397 (2015: $1,081,085) in the year ended 30 June 2016. At 30 June 2016,
the Group had net assets of $1,766,899 (2015: $2,243,129) and cash balances of $479,089 (2015:
$926,394). These conditions, along with other matters as set forth in Note 1(a) indicate the existence of a
material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a
going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its
liabilities in the normal course of business.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 11 of the directors’ report for the year
ended 30 June 2016. 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.
Opinion
In our opinion, the Remuneration Report of Intec Limited for the year ended 30 June 2016 complies with
section 300A of the Corporations Act 2001.
Rothsay Chartered Accountants
Frank Vrachas
Partner
Sydney, 30 September 2016
41
Intec Ltd 2016 Annual Report
Schedule of Tenements
At 30 June 2016, the Group held the following tenements:
Tenement number Tenement
name
Expiry
date
Area
Km2
Security
deposits
held
Annual
expenditure
commitments
$
$
Tenements held by Intec Zeehan Residues Pty Ltd
Mining Lease
6M/2010
Retention Licence
RL 3/1996
Zeehan
22 January 2021
0.4
Zeehan
26 March 2016*
1.00
5,800
5,000
Nil
Nil
*Renewal application for Retention Licence RL 3/1996 has been lodged.
The Group also holds a 2.5% Net Smelter Return Royalty (NSR Royalty) in relation to base metals extracted from
the following Tasmanian tenements:
RL11/1997: Mt Charter Retention Licence;
EL48/2003: Mt Block Exploration Licence;
CML103M/1987: Hellyer Mine Lease; and
ML68M/1984: Que River Mine Lease.
Shareholder Information
The shareholder information set out below was applicable as at 21 October 2016.
A.
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001 and over
-
-
-
-
1,000
5,000
10,000
100,000
Class of equity security
Ordinary shares
Number of shareholders
126
147
78
353
297
1,001
Number of shares
48,837
425,073
611,641
18,657,906
280,075,212
299,818,669
B.
Substantial holders
Substantial shareholders as at 21 October 2016 are listed below:
Kieran Gregory Rodgers & Patricia Maree Rodgers
Kathleen Frances Watt
Donald Alexander Bell & Lexie Ann Bell
6.67%
6.14%
5.00%
42
Intec Ltd 2016 Annual Report
C.
Equity security holders
The names of the twenty largest holders of quoted equity securities as at 21 October 2016 are listed below:
Name
Kieran Gregory Rodgers & Patricia Maree Rodgers
Kathleen Frances Watt
Donald Alexander Bell & Lexie Ann Bell
Martin Edward Meyer
Longwin Capital Finance Ltd
Stuart Andrew Spiteri
Markham Hanna & Rita Hanna
The Genuine Snake Oil Company Pty Ltd
PW Pembroke Pty Ltd
Pembroke Four Pty Ltd
J P Morgan Nominees Australia Ltd
Warinco Services Pty Limited
Orian Holding Corp
Ianaki Semerdziev
HSBC Custody Nominees (Australia) Limited
Platypus Superannuation Pty Ltd
Wethem Pty Ltd
Ryan Boyd
Ronnoc Developments Pty Ltd
Mark Lee Rodstrom
Total of Top 20 Shareholdings
Other Shareholders
Total Ordinary Shares on Issue
D.
Voting rights
Ordinary shares
Number held
20,004,624
18,416,667
15,000,000
14,666,667
14,666,667
11,534,174
10,030,000
8,000,000
7,717,821
6,600,000
6,423,615
4,122,500
4,117,484
3,500,000
3,158,880
3,100,000
2,930,000
2,656,129
2,443,000
2,410,000
161,498,228
138,320,441
299,818,669
Percentage of
issued shares
6.67
6.14
5.00
4.89
4.89
3.85
3.35
2.67
2.57
2.20
2.14
1.38
1.37
1.17
1.05
1.03
0.98
0.89
0.82
0.80
53.87
46.14
100.000
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
(b) Options
No voting rights.
E.
Summary of options issued
Options expiring 21 November 2016 with an exercise price of $0.03
Option holders with more than 20% of above class
K G Rodgers
D L Sammut
These options are unquoted equity securities.
Options expiring 28 November 2019 with an exercise price of $0.025
Option holders with more than 20% of above class
K G Rodgers
D J Cronin
These options are unquoted equity securities.
No. of
options
No. of
Holders
% Options
Issued
3,300,000
1,200,000
1,000,000
5,500,000
2,000,000
2,000,000
5
4
36.36%
30.30%
36.36%
36.36%
43
Intec Ltd 2016 Annual Report
Corporate Directory
Directors
Chairman
Trevor A Jones
Managing Director
Kieran G Rodgers
Non-executive Director
Daniel J Cronin
Company Secretary
Robert J Waring
Registered Office
Suite 105, 45 Atchison Street
St Leonards NSW 2065 Australia
Telephone: (+61 2) 0438 675 510
Email: mail@intec.com.au
Website: www.intec.com.au
Share Registry
Boardroom Pty Limited
Level 12, 225 George Street
Sydney NSW 2000 Australia
GPO Box 3993
Sydney NSW 2001
Telephone: (+61 2) 9290 9600
Facsimile: (+61 2) 9279 0664
Email: enquiries@boardroomlimited.com.au
Website: www.boardroomlimited.com.au
Rothsay Chartered Accountants Sydney
Auditors
Level 1, 12 O’Connell Street
Sydney NSW 2000 Australia
Patent Attorneys
Griffith Hack
100 Miller Street
North Sydney NSW 2060 Australia
Stock Exchange and Trading Platform Listings
Intec Ltd shares are listed or traded on
the Australian Stock Exchange (Code: INL),
the Deutsche Boerse (Code: INF),
and as American Depository Receipts on:
the OTC Markets (Code: ICLJY)
44
ASX CODE:INL ABN : 25 001 150 849